Leases

9 Months Ended

Jan. 31, 2022

Leases [Abstract]

Leases

Leases

Operating Leases - Right-of-Use ("ROU") assets related to operating leases are presented as operating lease right-of-use assets on the unaudited condensed consolidated balance sheets. Lease liabilities related to operating leases with remaining lease terms less than twelve months are presented in short-term lease liability - operating and operating leases with remaining lease terms greater than twelve months are presented in long-term lease liability - operating on the unaudited condensed consolidated balance sheets.

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 unaudited condensed 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 unaudited condensed consolidated balance sheets.

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:

	Nine Months Ended
	January 31,
(in thousands)	2022		2021
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	996	$	403
Interest on lease liabilities	$	79	$	50
Operating lease cost	$	20,823	$	20,252

Additional information related to leases was as follows:

	Nine Months Ended
	January 31,
(in thousands)	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	79		$	50
Operating cash flows for operating leases	$	18,345		$	18,161
Financing cash flows for financing leases	$	975		$	384
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,614		$	1,531
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,608		$	6,886
Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	2.49			3.06
Weighted average remaining lease term - operating leases	5.96			6.89
Weighted average discount rate
Weighted average discount rate - finance leases	2.83		%	3.00		%
Weighted average discount rate - operating leases	3.14		%	3.29		%

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 unaudited condensed consolidated balance sheet as of January 31, 2022:

(in thousands)	Operating leases		Financing leases
Year ending April 30,
2022	$	6,738	$	632
2023	24,898		2,284
2024	22,957		1,904
2025	19,299		559
2026	18,848		120
Thereafter	41,168		7
Total lease payments	133,908		5,506
Less imputed interest	(12,052)		(188)
Total lease liability	121,856		5,318
Current maturities	(22,303)		(2,250)
Lease liability - long-term	$	99,553	$	3,068
Lease assets	$	112,874	$	9,982

Leases

Leases

Operating Leases - Right-of-Use ("ROU") assets related to operating leases are presented as operating lease right-of-use assets on the unaudited condensed consolidated balance sheets. Lease liabilities related to operating leases with remaining lease terms less than twelve months are presented in short-term lease liability - operating and operating leases with remaining lease terms greater than twelve months are presented in long-term lease liability - operating on the unaudited condensed consolidated balance sheets.

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 unaudited condensed 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 unaudited condensed consolidated balance sheets.

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:

	Nine Months Ended
	January 31,
(in thousands)	2022		2021
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	996	$	403
Interest on lease liabilities	$	79	$	50
Operating lease cost	$	20,823	$	20,252

Additional information related to leases was as follows:

	Nine Months Ended
	January 31,
(in thousands)	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	79		$	50
Operating cash flows for operating leases	$	18,345		$	18,161
Financing cash flows for financing leases	$	975		$	384
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,614		$	1,531
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,608		$	6,886
Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	2.49			3.06
Weighted average remaining lease term - operating leases	5.96			6.89
Weighted average discount rate
Weighted average discount rate - finance leases	2.83		%	3.00		%
Weighted average discount rate - operating leases	3.14		%	3.29		%

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 unaudited condensed consolidated balance sheet as of January 31, 2022:

(in thousands)	Operating leases		Financing leases
Year ending April 30,
2022	$	6,738	$	632
2023	24,898		2,284
2024	22,957		1,904
2025	19,299		559
2026	18,848		120
Thereafter	41,168		7
Total lease payments	133,908		5,506
Less imputed interest	(12,052)		(188)
Total lease liability	121,856		5,318
Current maturities	(22,303)		(2,250)
Lease liability - long-term	$	99,553	$	3,068
Lease assets	$	112,874	$	9,982