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Leases | 9 Months Ended
--- | ---
Jan. 31, 2020
Leases [Abstract] |
Leases | Leases On May 1, 2019, the Company adopted ASC 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below. Operating Leases - ROU assets related to operating leases are presented as “Operating lease right-of-use assets” on the unaudited condensed consolidated balance sheet. Lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in “Short-term lease liability - operating” and “Long-term lease liability - operating” on the unaudited condensed consolidated balance sheet. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value. Finance Leases - ROU assets related to finance leases are presented in "Property, plant and equipment, net” on the unaudited condensed consolidated balance sheet. Lease liabilities related to finance leases are presented in “Current maturities of long-term debt” and “Long-term debt, less current maturities” on the unaudited condensed consolidated balance sheet. Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The components of lease costs were as follows:
|  | Nine months ended
|  | January 31,
(in thousands) |  | 2020
Finance lease cost: |  |  |
Reduction in the carrying value of right-of-use assets |  | $ | 1,922 |
Interest on lease liabilities |  | 157 |
Operating lease cost |  | 19,462 |
Additional information related to leases was as follows:
|  | Nine months ended
|  | January 31,
(in thousands) |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for finance leases |  | $ | 157 |
Operating cash flows for operating leases |  | 16,731 |
Financing cash flows for financing leases |  | 1,883 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | 1,399 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 29,622 |
Weighted average remaining lease term (years) |  |
Weighted average remaining lease term - finance leases |  | 3.44 |
Weighted average remaining lease term - operating leases |  | 6.38 |
Weighted average discount rate |  |
Weighted average discount rate - finance leases |  | 3.20 | %
Weighted average discount rate - operating leases |  | 4.26 | %
The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the unaudited condensed consolidated balance sheet as of January 31, 2020:
(in thousands) |  | Operating leases |  | Financing leases
Year ending April 30, |  |  |  |  |  |
2020 |  | $ | 6,305 |  |  | $ | 687 |
2021 |  | 23,959 |  |  | 2,316 |
2022 |  | 17,911 |  |  | 1,381 |
2023 |  | 12,762 |  |  | 921 |
2024 |  | 10,735 |  |  | 858 |
Thereafter |  | 36,142 |  |  | 338 |
Total lease payments |  | 107,814 |  |  | 6,501 |
Less imputed interest |  | (13,680 | ) |  | (382 | )
Total lease liability |  | $ | 94,134 |  |  | $ | 6,119 |
Current maturities |  | (20,837 | ) |  | (2,355 | )
Lease liability - long-term |  | $ | 73,297 |  |  | $ | 3,764 |
Lease assets |  | $ | 90,530 |  |  | $ | 10,582 |
As we have not restated prior-year information for our adoption of ASC Topic 842, the following presents our future minimum lease payments for operating leases and capital leases under ASC Topic 840 on April 30, 2019:
Fiscal Year | Operating (in thousands) |  | Capital (in thousands)
2020 | $ | 17,943 |  |  | 2,456 |
2021 | 17,649 |  |  | 1,953 |
2022 | 12,435 |  |  | 1,013 |
2023 | 10,636 |  |  | 705 |
2024 | 9,854 |  |  | 701 |
2025 (and thereafter) | 38,871 |  |  | 166 |
| $ | 107,388 |  |  | $ | 6,994 |
Less amounts representing interest (2% - 6.5%) |  |  | (349 | )
Total obligations under capital leases |  |  | $ | 6,645 |
Leases | Leases On May 1, 2019, the Company adopted ASC 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below. Operating Leases - ROU assets related to operating leases are presented as “Operating lease right-of-use assets” on the unaudited condensed consolidated balance sheet. Lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in “Short-term lease liability - operating” and “Long-term lease liability - operating” on the unaudited condensed consolidated balance sheet. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value. Finance Leases - ROU assets related to finance leases are presented in "Property, plant and equipment, net” on the unaudited condensed consolidated balance sheet. Lease liabilities related to finance leases are presented in “Current maturities of long-term debt” and “Long-term debt, less current maturities” on the unaudited condensed consolidated balance sheet. Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The components of lease costs were as follows:
|  | Nine months ended
|  | January 31,
(in thousands) |  | 2020
Finance lease cost: |  |  |
Reduction in the carrying value of right-of-use assets |  | $ | 1,922 |
Interest on lease liabilities |  | 157 |
Operating lease cost |  | 19,462 |
Additional information related to leases was as follows:
|  | Nine months ended
|  | January 31,
(in thousands) |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows for finance leases |  | $ | 157 |
Operating cash flows for operating leases |  | 16,731 |
Financing cash flows for financing leases |  | 1,883 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | 1,399 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 29,622 |
Weighted average remaining lease term (years) |  |
Weighted average remaining lease term - finance leases |  | 3.44 |
Weighted average remaining lease term - operating leases |  | 6.38 |
Weighted average discount rate |  |
Weighted average discount rate - finance leases |  | 3.20 | %
Weighted average discount rate - operating leases |  | 4.26 | %
The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the unaudited condensed consolidated balance sheet as of January 31, 2020:
(in thousands) |  | Operating leases |  | Financing leases
Year ending April 30, |  |  |  |  |  |
2020 |  | $ | 6,305 |  |  | $ | 687 |
2021 |  | 23,959 |  |  | 2,316 |
2022 |  | 17,911 |  |  | 1,381 |
2023 |  | 12,762 |  |  | 921 |
2024 |  | 10,735 |  |  | 858 |
Thereafter |  | 36,142 |  |  | 338 |
Total lease payments |  | 107,814 |  |  | 6,501 |
Less imputed interest |  | (13,680 | ) |  | (382 | )
Total lease liability |  | $ | 94,134 |  |  | $ | 6,119 |
Current maturities |  | (20,837 | ) |  | (2,355 | )
Lease liability - long-term |  | $ | 73,297 |  |  | $ | 3,764 |
Lease assets |  | $ | 90,530 |  |  | $ | 10,582 |
As we have not restated prior-year information for our adoption of ASC Topic 842, the following presents our future minimum lease payments for operating leases and capital leases under ASC Topic 840 on April 30, 2019:
Fiscal Year | Operating (in thousands) |  | Capital (in thousands)
2020 | $ | 17,943 |  |  | 2,456 |
2021 | 17,649 |  |  | 1,953 |
2022 | 12,435 |  |  | 1,013 |
2023 | 10,636 |  |  | 705 |
2024 | 9,854 |  |  | 701 |
2025 (and thereafter) | 38,871 |  |  | 166 |
| $ | 107,388 |  |  | $ | 6,994 |
Less amounts representing interest (2% - 6.5%) |  |  | (349 | )
Total obligations under capital leases |  |  | $ | 6,645 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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- 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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