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 combines fixed payments for non-lease components with its lease payments and accounts 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 the 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 and 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 six years. Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities.

During the nine months ended January 31, 2022, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $7.4 million recorded in the consolidated statements of income. On November 1, 2021 the Company acquired Lucas Group and as a result recognized ROU assets of $3.8 million with a corresponding liability of $9.4 million. The ROU asset was adjusted to reflect unfavorable lease terms when compared with current market rates.

	Three Months Ended January 31,						Nine Months Ended January 31,
	2022			2021			2022			2021
	(in thousands)
Finance lease cost
Amortization of ROU assets	$	248		$	296		$	785		$	951
Interest on lease liabilities		19			29			64			90
		267			325			849			1,041
Operating lease cost		13,013			14,199			40,288			42,209
Short-term lease cost		279			113			761			325
Variable lease cost		2,820			3,157			7,919			8,349
Lease impairment cost		—			—			7,392			—
Sublease income		(283	)		(186	)		(742	)		(461	)
Total lease cost	$	16,096		$	17,608		$	56,467		$	51,463

	Nine Months Ended January 31,
	2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	48,246	$	51,456
Financing cash flows from finance leases	$	860	$	1,024

ROU assets obtained in exchange for lease obligations:
Operating leases	$	22,662	$	11,322
Finance leases	$	916	$	497

	January 31, 2022			April 30, 2021
	(in thousands)
Finance Leases:

Property and equipment, at cost	$	5,051		$	4,801
Accumulated depreciation		(2,738	)		(2,590	)
Property and equipment, net	$	2,313		$	2,211

Other accrued liabilities	$	935		$	1,010
Other liabilities		1,393			1,301
Total finance lease liabilities	$	2,328		$	2,311

Weighted average remaining lease terms:
Operating leases	5.0 years			5.0 years
Finance leases	3.2 years			2.7 years

Weighted average discount rate:
Operating leases		4.5	%		4.8	%
Finance leases		3.4	%		4.2	%

Year Ending April 30,	Operating		Financing
	(in thousands)
2022 (excluding the nine months ended January 31, 2022)	$	14,207	$	267
2023		51,954		920
2024		43,171		596
2025		36,077		367
2026		33,376		194
Thereafter		32,592		100
Total lease payments		211,377		2,444
Less: imputed interest		22,445		116
Total	$	188,932	$	2,328