Leases (Notes)

9 Months Ended

Apr. 30, 2020

Leases [Abstract]

Lessee, Operating Leases

LEASES

We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Certain of our leases for a shared warehouse and office facility, rail track and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. Further information about our accounting policy for leases is included in Note 1 of the Notes to unaudited Condensed Consolidated Financial Statements.

We have no material finance leases, and variable costs for operating leases are immaterial for the third quarter of fiscal year 2020. Operating lease costs are included in Cost of Sales or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands):

	For the Three Months Ended April 30, 2020		For the Nine Months Ended April 30, 2020
Operating Lease Cost
Operating lease cost	$	517	$	1,551
Short-term operating lease cost	190		590

Supplemental cash flow information related to leases was as follows (in thousands):

	For the Three Months Ended April 30, 2020		For the Nine Months Ended April 30, 2020
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	430	$	1,285

Operating lease ROU assets and operating lease liabilities are separately presented on the unaudited Condensed Consolidated Balance Sheet, excluding leases with an initial term of twelve months or less. Other supplemental balance sheet information related to leases was as follows:

	For the Nine Months Ended April 30, 2020
Weighted-average remaining lease term - operating leases	10.6 years
Weighted-average discount rate - operating leases	4.02%

The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of April 30, (in thousands):

2020	$	1,912
2021	1,507
2022	983
2023	781
2024	767
Thereafter	6,320
Total	12,270
Less: imputed interest	(2,424		)
Net lease obligation	$	9,846

The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2019 (in thousands):

2020	$	2,255
2021	1,640
2022	1,513
2023	1,038
2024	899
Thereafter	7,422