LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of 1 to 11 years, some of which include options to extend or terminate the leases. However, management has determined that it not reasonably certain that the Company will exercise its options to renew or terminate the leases, and therefore the renewal and termination options are not included in the lease term or the resulting operating ROU asset and operating lease liability balances. The Company's current lease arrangements expire from 2019 through 2030.

The Company's lease population does not include any residual value guarantees, and therefore none were considered in the calculation of the operating ROU and operating lease liability balances. The Company has leases that contain variable payments, most commonly in the form of common area maintenance charges, which are based on actual costs incurred. These variable payments were excluded from the calculation of the operating ROU asset and operating lease liability balances since they are not fixed or in-substance fixed payments.

For leases with terms greater than 12 months, the Company records the related operating ROU assets and operating lease liabilities at the present value of lease payments over the lease terms. For leases with an initial term of 12 months or less (with purchase options or extension options that are not reasonably certain to be exercised), the Company does not record them on the balance sheet, but instead recognizes lease expense on a straight-line basis over the terms of the leases.

As of October 31, 2019, $55.1 million of ROU assets, $12.4 million of current lease obligations and $45.3 million of long-term lease obligations were recorded as a component of other assets, other current liabilities and other long-term liabilities, respectively, on the Company's condensed consolidated balance sheets.

Lease cost

The Company's lease cost was comprised of the following components for the three months ended October 31, 2019:



	Three Months Ended October 31, 2019
	(In thousands)
Operating lease cost	$	4,816
Short-term lease expense	226
Variable lease cost	40
Amortization of finance lease assets	18
Interest on finance lease liabilities	4
	$	5,104

Lease commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of October 31, 2019 were as follows (in thousands):



	Operating Leases		Finance Leases
2020	$	14,235	$	127
2021	14,456		134
2022	11,154		95
2023	6,869		38
2024	5,298		—
Thereafter	22,416		—
Total lease payments	74,428		394
Less: imputed interest	17,007		28
Present value of lease payments	57,421		366
Less: current maturities of lease obligations	12,311		132
Long-term lease obligations	$	45,110	$	234

As of October 31, 2019, the Company had additional operating leases primarily for additional office space, which have not yet commenced, with lease liabilities totaling $3.5 million.

In order to calculate the operating ROU asset and operating lease liability for a lease, Topic 842 requires that a lessee apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors. Therefore, we use an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

Additional lease information

Additional information related to the Company's leases as of October 31, 2019 was as follows:



Weighted average remaining lease term:
Operating leases	6.9	years
Finance leases	2.8	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		4.5%

Supplemental cash flow information

Supplemental cash flow information related to the Company's leases during the three months ended October 31, 2019 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	4,372
Operating cash flows from finance leases	$	4
Financing cash flows from finance leases	$	35