Leases (Notes)

3 Months Ended

Oct. 31, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain manufacturing facilities, warehouses and office space, computer equipment, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of October 31, 2021, the Company did not have any finance leases.

Operating lease expense was $4,765 and $4,073 for the three months ended October 31, 2021 and 2020, respectively, which was recognized in either "Cost of goods sold" or "Selling, general and administrative" expenses in the condensed consolidated statements of income, based on the nature of the lease. Short-term lease expense, variable lease expenses, and sublease income was immaterial to the condensed consolidated statements of income for the three months ended October 31, 2021 and 2020.

Supplemental cash flow information related to the Company's operating leases for the three months ended October 31, 2021 and 2020, was as follows:

	Three months ended October 31,
	2021		2020
Operating cash flows from operating leases	$	4,999	$	4,297
Operating lease assets obtained in exchange for new operating lease liabilities (1)	(868)		2,936

(1) During the three months ended October 31, 2021, the Company purchased two buildings which were previously leased. This resulted in an overall decrease in operating lease assets obtained in exchange for lease liabilities for the period as the remaining lease assets and liabilities were removed from the condensed consolidated balance sheets.