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Leases
 12 Months Ended
Apr. 30, 2023
Leases [Abstract]  
Leases 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 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 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 nine 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 fiscal 2023 and 2022, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $5.5 million and $7.4 million, respectively, in the consolidated statements of income.
In fiscal 2023, the Company acquired ICS and Salo and as a result recognized ROU assets of $0.8 million and $2.1 million, respectively, with corresponding liabilities of $1.0 million and $2.9 million, respectively. In fiscal 2022, the Company acquired Lucas Group and Patina and as a result recognized ROU assets of $3.8 million and $0.2 million, respectively, with corresponding liabilities of $9.4 million and $0.7 million, respectively. In these acquisitions, the ROU assets were adjusted to reflect unfavorable lease terms when compared with current market rates.
The components of lease expense were as follows:
Year Ended April 30,
202320222021
(in thousands)
Finance lease cost
Amortization of ROU assets$1,479 $1,065 $1,221 
Interest on lease liabilities190 84 114 
1,669 1,149 1,335 
Operating lease cost48,901 53,092 56,166 
Short-term lease cost833 966 474 
Variable lease cost11,157 10,986 11,592 
Lease impairment cost5,471 7,392 — 
Sublease income(3,420)(1,119)(657)
Total lease cost$64,611 $72,466 $68,910 
Supplemental cash flow information related to leases was as follows:
Year Ended April 30,
202320222021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$63,496 $62,996 $66,991 
Financing cash flows from finance leases$1,639 $1,157 $1,324 
ROU assets obtained in exchange for lease obligations:
Operating leases$19,015 $49,235 $13,638 
Finance leases$3,123 $1,586 $516 
Supplemental balance sheet information related to leases was as follows:
Year Ended April 30,
20232022
(in thousands)
Finance Leases:
Property and equipment, at cost$7,103 $5,770 
Accumulated depreciation(2,741)(3,085)
Property and equipment, net$4,362 $2,685 
Other accrued liabilities$1,372 $1,049 
Other liabilities3,053 1,657 
Total finance lease liabilities$4,425 $2,706 
Weighted average remaining lease terms:
Operating leases4.5 years5.1 years
Finance leases3.8 years3.3 years
Weighted average discount rate:
Operating leases4.5 %4.3 %
Finance leases4.7 %3.2 %
Maturities of lease liabilities are as follows:
Year Ending April 30,OperatingFinancing
(in thousands)
2024$51,760 $1,545 
202544,050 1,313 
202639,548 935 
202720,888 597 
202810,125 438 
Thereafter16,295 — 
Total lease payments182,666 4,828 
Less: imputed interest17,625 403 
Total$165,041 $4,425 
Leases 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 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 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 nine 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 fiscal 2023 and 2022, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $5.5 million and $7.4 million, respectively, in the consolidated statements of income.
In fiscal 2023, the Company acquired ICS and Salo and as a result recognized ROU assets of $0.8 million and $2.1 million, respectively, with corresponding liabilities of $1.0 million and $2.9 million, respectively. In fiscal 2022, the Company acquired Lucas Group and Patina and as a result recognized ROU assets of $3.8 million and $0.2 million, respectively, with corresponding liabilities of $9.4 million and $0.7 million, respectively. In these acquisitions, the ROU assets were adjusted to reflect unfavorable lease terms when compared with current market rates.
The components of lease expense were as follows:
Year Ended April 30,
202320222021
(in thousands)
Finance lease cost
Amortization of ROU assets$1,479 $1,065 $1,221 
Interest on lease liabilities190 84 114 
1,669 1,149 1,335 
Operating lease cost48,901 53,092 56,166 
Short-term lease cost833 966 474 
Variable lease cost11,157 10,986 11,592 
Lease impairment cost5,471 7,392 — 
Sublease income(3,420)(1,119)(657)
Total lease cost$64,611 $72,466 $68,910 
Supplemental cash flow information related to leases was as follows:
Year Ended April 30,
202320222021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$63,496 $62,996 $66,991 
Financing cash flows from finance leases$1,639 $1,157 $1,324 
ROU assets obtained in exchange for lease obligations:
Operating leases$19,015 $49,235 $13,638 
Finance leases$3,123 $1,586 $516 
Supplemental balance sheet information related to leases was as follows:
Year Ended April 30,
20232022
(in thousands)
Finance Leases:
Property and equipment, at cost$7,103 $5,770 
Accumulated depreciation(2,741)(3,085)
Property and equipment, net$4,362 $2,685 
Other accrued liabilities$1,372 $1,049 
Other liabilities3,053 1,657 
Total finance lease liabilities$4,425 $2,706 
Weighted average remaining lease terms:
Operating leases4.5 years5.1 years
Finance leases3.8 years3.3 years
Weighted average discount rate:
Operating leases4.5 %4.3 %
Finance leases4.7 %3.2 %
Maturities of lease liabilities are as follows:
Year Ending April 30,OperatingFinancing
(in thousands)
2024$51,760 $1,545 
202544,050 1,313 
202639,548 935 
202720,888 597 
202810,125 438 
Thereafter16,295 — 
Total lease payments182,666 4,828 
Less: imputed interest17,625 403 
Total$165,041 $4,425