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Operating Leases | 9 Months Ended
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Jan. 31, 2021
Operating Leases [Abstract] |
Operating Leases | Note 5 — Operating Leases We have contractual obligations as a lessee with respect to offices, warehouses and distribution centers, automobiles, and office equipment. We determine if an arrangement is a lease at inception of the contract in accordance with guidance detailed in the lease standard and we perform the lease classification test as of the lease commencement date. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate, which is determined based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use an unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate. Under the leasing standard, leases that are more than one year in duration are capitalized and recorded on our Unaudited Condensed Consolidated Statements of Financial Position. Some of our leases offer an option to extend the term of such leases. We utilize the reasonably certain threshold criteria in determining which options we will exercise. Furthermore, some of our lease payments are based on index rates with minimum annual increases. These represent fixed payments and are captured in the future minimum lease payments calculation. For operating leases, the ROU assets and liabilities are presented on our Unaudited Condensed Consolidated Statement of Financial Position as follows:
|  | January 31, 2021 |  |  | April 30, 2020 |
Operating lease right-of-use assets |  | $ | 125,287 |  |  | $ | 142,716 |
Short-term portion of operating lease liabilities |  |  | 20,965 |  |  |  | 21,810 |
Operating lease liabilities, non-current |  | $ | 153,031 |  |  | $ | 159,782 |
During the nine months ended January 31, 2021, we added $6.2 million to the ROU assets and $6.1 million to the operating lease liabilities due to new leases, including due to acquisitions, as well as modifications and remeasurements to our existing operating leases. As a result of expanding the scope of the Business Optimization Program to include the exit of certain leased office space beginning in the third quarter of fiscal 2021, we incurred an initial pre-tax restructuring charge of $18.3 million in the three months ended January 31, 2021. This initial charge included impairment charges and acceleration of expense associated with certain operating lease ROU assets. See Note 9, “Restructuring and Related Charges” for more information on this program and the charges incurred. Our total net lease costs are as follows:
|  | Three Months Ended January 31, |  |  | Nine Months Ended January 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating lease cost |  | $ | 5,652 |  |  | $ | 6,286 |  |  | $ | 18,898 |  |  | $ | 19,346 |
Variable lease cost |  |  | 449 |  |  |  | 1,004 |  |  |  | 1,700 |  |  |  | 3,122 |
Short-term lease cost |  |  | 34 |  |  |  | — |  |  |  | 214 |  |  |  | — |
Sublease income |  |  | (181 | ) |  |  | (180 | ) |  |  | (526 | ) |  |  | (519 | )
Total net lease cost (1) |  | $ | 5,954 |  |  | $ | 7,110 |  |  | $ | 20,286 |  |  | $ | 21,949 |
(1) | Total net lease cost does not include those costs included in Restructuring and Related Charges on our Unaudited Condensed Consolidated Statements of Income. See Note 9, “Restructuring and Related Charges” for more information on these programs.
Other supplemental information includes the following for our operating leases:
|  | Nine Months Ended January 31, |
|  | 2021 |  |  | 2020 |
Weighted-average remaining contractual lease term (years) |  |  | 9 |  |  |  | 10 |
Weighted-average discount rate |  |  | 5.89 | % |  |  | 5.91 | %
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 24,563 |  |  | $ | 22,029 |
The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in our Unaudited Condensed Consolidated Statement of Financial Position as of January 31, 2021:
Fiscal Year |  | Operating Lease Liabilities |
2021 (remaining 3 months) |  | $ | 8,081 |
2022 |  |  | 29,957 |
2023 |  |  | 26,722 |
2024 |  |  | 24,681 |
2025 |  |  | 23,191 |
Thereafter |  |  | 115,451 |
Total future undiscounted minimum lease payments |  |  | 228,083 |
Less: Imputed interest |  |  | 54,087 |
Present Value of Minimum Lease Payments |  |  | 173,996 |
Less: Current portion |  |  | 20,965 |
Noncurrent portion |  | $ | 153,031 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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