Leases

12 Months Ended

Apr. 30, 2023

Leases [Abstract]

Leases

Leases

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 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 YEARS ENDED APRIL 30,
(in thousands)	2023		2022		2021
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	1,720	$	1,404	$	635
Interest on lease liabilities	$	105	$	106	$	73
Operating lease cost	$	26,592	$	27,610	$	27,192

Additional information related to leases was as follows:

	FISCAL YEARS ENDED APRIL 30,
(dollars in thousands)	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	105		$	106		$	73
Operating cash flows for operating leases	$	26,906		$	25,100		$	24,371
Financing cash flows for financing leases	$	1,714		$	1,379		$	608
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,138		$	1,862		$	2,222
Right-of-use assets obtained in exchange for new operating lease liabilities	$	11,109		$	7,482		$	8,914
Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	1.99			2.32			2.95
Weighted average remaining lease term - operating leases	4.84			5.77			6.62
Weighted average discount rate
Weighted average discount rate - finance leases	3.69		%	2.91		%	2.95		%
Weighted average discount rate - operating leases	3.35		%	3.2		%	3.23		%

The Company has signed a lease in Monterrey, Mexico and a lease for the expansion in Hamlet, North Carolina. These leases are expected to commence once construction of the facilities is complete, which is anticipated in the third quarter of fiscal 2024.

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, 2023:

FISCAL YEAR	OPERATING (in thousands)		FINANCING (in thousands)
2024	$	27,907	$	2,359
2025	24,014		1,009
2026	21,181		361
2027	16,647		78
2028	14,604		48
Thereafter	10,615		—
Total lease payments	114,968		3,855
Less imputed interest	(8,820)		(153)
Total lease liability	$	106,148	$	3,702
Current maturities	(24,778)		(2,263)
Long-term lease liability	$	81,370	$	1,439
Lease right-of-use assets	$	99,526	$	9,101

Leases

Leases

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 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 YEARS ENDED APRIL 30,
(in thousands)	2023		2022		2021
Finance lease cost:
Reduction in the carrying value of right-of-use assets	$	1,720	$	1,404	$	635
Interest on lease liabilities	$	105	$	106	$	73
Operating lease cost	$	26,592	$	27,610	$	27,192

Additional information related to leases was as follows:

	FISCAL YEARS ENDED APRIL 30,
(dollars in thousands)	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	105		$	106		$	73
Operating cash flows for operating leases	$	26,906		$	25,100		$	24,371
Financing cash flows for financing leases	$	1,714		$	1,379		$	608
Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,138		$	1,862		$	2,222
Right-of-use assets obtained in exchange for new operating lease liabilities	$	11,109		$	7,482		$	8,914
Weighted average remaining lease term (years)
Weighted average remaining lease term - finance leases	1.99			2.32			2.95
Weighted average remaining lease term - operating leases	4.84			5.77			6.62
Weighted average discount rate
Weighted average discount rate - finance leases	3.69		%	2.91		%	2.95		%
Weighted average discount rate - operating leases	3.35		%	3.2		%	3.23		%

The Company has signed a lease in Monterrey, Mexico and a lease for the expansion in Hamlet, North Carolina. These leases are expected to commence once construction of the facilities is complete, which is anticipated in the third quarter of fiscal 2024.

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, 2023:

FISCAL YEAR	OPERATING (in thousands)		FINANCING (in thousands)
2024	$	27,907	$	2,359
2025	24,014		1,009
2026	21,181		361
2027	16,647		78
2028	14,604		48
Thereafter	10,615		—
Total lease payments	114,968		3,855
Less imputed interest	(8,820)		(153)
Total lease liability	$	106,148	$	3,702
Current maturities	(24,778)		(2,263)
Long-term lease liability	$	81,370	$	1,439
Lease right-of-use assets	$	99,526	$	9,101