Leases

12 Months Ended

Apr. 30, 2020

On May 1, 2019, the Company adopted ASC 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below.

Operating Leases - ROU assets related to operating leases are presented as “Operating lease right-of-use assets” on the consolidated balance sheet. Lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in “Short-term lease liability - operating” and “Long-term lease liability - operating” on the consolidated balance sheet.

Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value.

Finance Leases - ROU assets related to finance leases are presented in "Property, plant and equipment, net” on the consolidated balance sheet. Lease liabilities related to finance leases are presented in “Current maturities of long-term debt” and “Long-term debt, less current maturities” on the consolidated balance sheet.

Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The components of lease costs were as follows:



	FISCAL YEAR ENDED
(in thousands)	APRIL 30, 2020
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	2,582
Interest on lease liabilities	205
Operating lease cost	25,405

Additional information related to leases was as follows:



	FISCAL YEAR ENDED
(in thousands)	APRIL 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	205
Operating cash flows for operating leases	22,595
Financing cash flows for financing leases	2,512
Right-of-use assets obtained in exchange for new finance lease liabilities	1,650
Right-of-use assets obtained in exchange for new operating lease liabilities	72,703

Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	3.36
Weighted average remaining lease term - operating leases	7.41

Weighted average discount rate
Weighted average discount rate - finance leases	3.19		%
Weighted average discount rate - operating leases	4.27		%

The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the consolidated balance sheet as of April 30, 2020:



FISCAL YEAR	OPERATING (in thousands)			FINANCING (in thousands)
2021	$	24,071		$	2,359
2022	20,886			1,423
2023	19,870			1,003
2024	17,977			858
2025	15,859			267
Thereafter	55,609			71
Total lease payments	154,272			5,981
Less imputed interest	(22,922		)	(294		)
Total lease liability	$	131,350		$	5,687
Current maturities	(18,896		)	(2,216		)
Lease liability - long-term	$	112,454		$	3,471
Lease assets	$	127,668		$	10,248

As we have not restated prior year information for our adoption of ASC 842, the following presents our future minimum lease payments for operating and capital leases under ASC 840 on April 30, 2019:



FISCAL YEAR	OPERATING (in thousands)		CAPITAL (in thousands)
2020	$	17,943	$	2,456
2021	17,649		1,953
2022	12,435		1,013
2023	10,636		705
2024	9,854		701
Thereafter	38,871		166
	$	107,388	$	6,994
Less amounts representing interest (2% - 6.5%)			(349		)
			$	6,645

Leases

On May 1, 2019, the Company adopted ASC 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below.

The components of lease costs were as follows:



	FISCAL YEAR ENDED
(in thousands)	APRIL 30, 2020
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	2,582
Interest on lease liabilities	205
Operating lease cost	25,405

Additional information related to leases was as follows:



	FISCAL YEAR ENDED
(in thousands)	APRIL 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	205
Operating cash flows for operating leases	22,595
Financing cash flows for financing leases	2,512
Right-of-use assets obtained in exchange for new finance lease liabilities	1,650
Right-of-use assets obtained in exchange for new operating lease liabilities	72,703

Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	3.36
Weighted average remaining lease term - operating leases	7.41

Weighted average discount rate
Weighted average discount rate - finance leases	3.19		%
Weighted average discount rate - operating leases	4.27		%



FISCAL YEAR	OPERATING (in thousands)			FINANCING (in thousands)
2021	$	24,071		$	2,359
2022	20,886			1,423
2023	19,870			1,003
2024	17,977			858
2025	15,859			267
Thereafter	55,609			71
Total lease payments	154,272			5,981
Less imputed interest	(22,922		)	(294		)
Total lease liability	$	131,350		$	5,687
Current maturities	(18,896		)	(2,216		)
Lease liability - long-term	$	112,454		$	3,471
Lease assets	$	127,668		$	10,248

As we have not restated prior year information for our adoption of ASC 842, the following presents our future minimum lease payments for operating and capital leases under ASC 840 on April 30, 2019:



FISCAL YEAR	OPERATING (in thousands)		CAPITAL (in thousands)
2020	$	17,943	$	2,456
2021	17,649		1,953
2022	12,435		1,013
2023	10,636		705
2024	9,854		701
Thereafter	38,871		166
	$	107,388	$	6,994
Less amounts representing interest (2% - 6.5%)			(349		)
			$	6,645