Leases

6 Months Ended

Jan. 31, 2020

Leases Disclosure [Abstract]

Leases​ Disclosure​ [Text ​Block]

Note 8 - Leases

During the first quarter of fiscal 2020, the Company adopted ASU No. 2016-02 “Leases (Topic 842)”, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date of August 1, 2019. The Company did not apply the new standard to comparative periods and therefore those amounts are not presented below.

The Company determines if an arrangement is or contains a lease at contract inception. The Company leases buildings, office space, patient service centers, and equipment primarily through operating leases, and equipment through a limited number of finance leases. Generally, a right-of-use asset, representing the right to use the underlying asset during the lease term, and a lease liability, representing the payment obligation arising from the lease, are recognized on the balance sheet at lease commencement based on the present value of the payment obligation. For operating leases, expense is recognized on a straight-line basis over the lease term. For finance leases, interest expense on the lease liability is recognized using the effective interest method and amortization of the right-of-use asset is recognized on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The Company primarily uses its incremental borrowing rate in determining the present value of lease payments as the Company’s leases generally do not provide an implicit rate.

The Company has lease agreements with (i) right-of-use asset payments and (ii) non-lease components (i.e. payments related to maintenance fees, utilities, etc.,) which have generally been combined and accounted for as a single lease component.

The Company’s leases have remaining terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 5 years. The Company’s lease terms may include renewal options that are reasonably certain to be exercised and termination options that are reasonably certain not to be exercised.

Certain of the Company’s lease agreements include rental payments adjusted periodically for inflation or a market rate which are included in the lease liabilities.

Leases	Balance Sheet Classification	January 31, 2020
Assets
Operating	Right-of-use assets	$	22,013
Finance	Property, plant and equipment, net (a)		527
Total lease assets		$	22,540
Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	4,534
Finance	Finance leases short term		225
Non-current:
Operating	Operating lease liabilities, non-current		18,304
Finance	Other liabilities and finance leases long term		280
Total lease liabilities		$	23,343

(a) Finance lease assets net of accumulated amortization were approximately $0.8 million as of January 31, 2020.

Components of lease cost for the three and six months ended January 31, 2020 were as follows:

Lease cost	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
Operating lease cost	$	1,474	$	2,948
Finance lease cost:
Amortization of leased assets		60		115
Interest on lease liabilities		22		34
Net lease cost	$	1,556	$	3,097

The maturity of the Company’s lease liabilities as of January 31, 2020 is as follows:

Maturity of lease liabilities	Operating leases			Finance leases			Total
Remainder of fiscal 2020	$	2,952		$	241		$	3,193
2021		4,997			127			5,124
2022		3,786			79			3,865
2023		3,284			74			3,358
2024		3,274			—			3,274
Thereafter		9,556			—			9,556
Total lease payments		27,849			521			28,370
Less: Interest (a)		(5,011	)		(16	)		(5,027	)
Present value of lease liabilities	$	22,838		$	505		$	23,343

(a) Primarily calculated using the Company’s incremental borrowing rate.

Lease term and discount rate for the six months ended January 31, 2020 were as follows:

Lease term and discount rate
Weighted-average remaining lease term (years):
Operating leases	6.5 years
Finance leases	2.6 years
Weighted-average discount rate:
Operating leases	4.9	%
Finance leases	3.0	%

See Note 4 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the six months ended January 31, 2020.