Capital Lease Obligations

12 Months Ended

Jul. 31, 2018

Capital Lease and Other Obligations

We lease certain equipment under capital leases. As of July 31, 2018 and 2017, the net book value of the leased assets which collateralize the capital lease and other obligations was $2,547,000 and $5,419,000, respectively, and consisted primarily of machinery and equipment. Depreciation of leased assets is included in depreciation expense.

As of July 31, 2018, our capital lease and other obligations reflect a blended interest rate of approximately 6.10%. Our capital leases generally contain provisions whereby we can purchase the equipment at the end of the lease for a one dollar buyout.

Future minimum payments under capital lease and other obligations consisted of the following at July 31, 2018:



Fiscal 2019	$	1,972,000
Fiscal 2020	780,000
Fiscal 2021 and beyond	—
Total minimum lease payments	2,752,000
Less: amounts representing interest	151,000
Present value of net minimum lease payments	2,601,000
Current portion of capital lease and other obligations	1,836,000
Non-current portion of capital lease and other obligations	$	765,000