Leases

3 Months Ended

Jul. 31, 2019

Leases [Abstract]

Leases

6. Leases

The Company’s lease portfolio is comprised of operating leases for office space and equipment and finance leases for equipment. Equipment leases are comprised of vehicles and office equipment. The majority of the Company’s leases include both lease and non-lease components. Non-lease components primarily include maintenance, insurance, taxes and other utilities. The Company has decided to combine fixed payments for non-lease components with its lease payments and account for them as a single lease component, which increases its ROU assets and lease liabilities. Some of the leases include one or more options to renew or terminate the lease at the Company’s discretion. Generally, the renewal and termination options are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company has elected not to recognize a ROU asset or lease liability for leases with an initial term of 12 months or less.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of the future minimum lease payments. The Company applies the portfolio approach when determining the incremental borrowing rate since it has a centrally managed treasury function.  The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment.

Operating leases contain both office and equipment leases, have remaining terms that range from less than one year to 11 years, some of which also include options to extend or terminate the lease. Finance leases are comprised of equipment leases and have remaining terms that range from less than one year to 5 years. Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities.

The components of lease expense were as follows:

	Three Months Ended July 31, 2019
	(in thousands)
Finance lease cost
Amortization of ROU assets	$	470
Interest on lease liabilities		40
		510
Operating lease cost		14,227
Short-term lease cost		279
Variable lease cost		2,893
Sublease income		(54	)
Total lease cost	$	17,855

Supplemental cash flow information related to leases was as follows:

	Three Months Ended July 31, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,909
Financing cash flows from finance leases	$	432
ROU assets obtained in exchange for lease obligations:
Operating leases	$	935
Finance leases	$	513

Supplemental balance sheet information related to leases was as follows:

	Three Months Ended July 31, 2019
	(in thousands)
Finance Leases:
Property and equipment, at cost	$	4,519
Accumulated depreciation		(473	)
Property and equipment, net	$	4,046
Other accrued liabilities		1,715
Other liabilities		2,366
Total finance lease liabilities	$	4,081
Weighted average remaining lease terms:
Operating leases	6.2 years
Finance leases	2.8 years
Weighted average discount rate:
Operating leases		4.8	%
Finance leases		4.1	%

Maturities of lease liabilities were as follows:

Year Ending April 30,	Operating		Financing
	(in thousands)
2020 (excluding the three months ended July 31, 2019)	$	44,919	$	1,438
2021		54,799		1,462
2022		47,188		984
2023		40,144		326
2024		34,803		112
Thereafter		74,369		—
Total lease payments		296,222		4,322
Less: imputed interest		41,765		241
Total	$	254,457	$	4,081