Leases

12 Months Ended

Jul. 31, 2022

Leases [Abstract]

Lessee, Operating 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 July 31, 2022 and 2021, the Company did not have any finance leases.

Short-term lease expense, variable lease expenses, and sublease income were immaterial to the Consolidated Statements of Income for the year ended July 31, 2022.

The following table summarizes lease expense recognized during the years ended July 31, 2022, 2021 and 2020:

	Consolidated Statements of Income Location	July 31, 2022		July 31, 2021		July 31, 2020
Operating lease cost	Cost of goods sold	$	7,893	$	8,268	$	9,197
Operating lease cost	Selling, general, and administrative expenses	9,822		8,625		8,974

The following table summarizes the maturity of the Company's lease liabilities as of July 31, 2022:

Years ending July 31,	Operating Leases
2023	$	16,002
2024	11,317
2025	5,632
2026	2,234
2027	679
Thereafter	124
Total lease payments	$	35,988
Less: interest	(1,842)
Present value of lease liabilities	$	34,146

The weighted average remaining lease terms and discount rates for the Company's operating leases as of July 31, 2022 and 2021 were as follows:

	July 31, 2022		July 31, 2021
Weighted average remaining lease term (in years)	2.7		3.0
Weighted average discount rate	3.9	%	3.3	%

Supplemental cash flow information related to the Company's operating leases during the years ended July 31, 2022 and 2021, were as follows:

	2022		2021
Operating cash outflows from operating leases	$	19,005	$	18,334
Operating lease assets obtained in exchange for new operating lease liabilities (1)	7,607		16,522

(1) Includes new leases and remeasurements or modifications of existing leases.

The Company evaluates right-of-use assets for impairment in the same manner as long-lived assets. No impairment charges were recorded during the years ended July 31, 2022 or 2021. Refer to Note 3, "Other Intangible and Long-Lived Assets" for information regarding impairment charges recognized during the year ended July 31, 2020.