LEASES

12 Months Ended

Jul. 31, 2022

Leases [Abstract]

LEASES

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to five years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through 2027.

The Company's leases do 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.

Lease Expense

The components of the Company's lease expense are presented below:

	Fiscal Year Ended July 31,
	2022		2021
	(In thousands)
Operating lease cost	$	9,973	$	10,555
Short-term lease expense	1,488		1,627
Sublease income	748		—
Variable lease cost	24		28
Interest on finance lease liabilities	3		6
	$	12,236	$	12,216

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2022 were as follows:

	Operating Leases		Finance Leases
	(In thousands)
2023	$	7,151	$	38
2024	4,254		—
2025	3,687		—
2026	2,718		—
2027	2,101		—
Thereafter	—		—
Total lease payments	19,911		38
Less: imputed interest	538		—
Present value of lease payments	19,373		38
Less: current lease obligations	6,428		38
Long-term lease obligations	$	12,945	$	—

In order to calculate the operating ROU asset and operating lease liability for a lease, a lessee is required to apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements generally do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors and, therefore, the Company determines 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 July 31, 2022 was as follows:

Weighted average remaining lease term:
Operating leases	3.7	years
Finance leases	0.4	years
Weighted average discount rate:
Operating leases		3.9%
Finance leases		3.9%

Supplemental Cash Flow Information

Supplemental cash flow information related to the cash paid for amounts included in measurement of lease liabilities during the fiscal year ended July 31, 2022 and 2021 was as follows:

	Fiscal Year Ended July 31,
	2022		2021
	(In thousands)
Operating cash flows from operating leases	$	9,653	$	10,705
Operating cash flows from finance leases	$	3	$	6
Financing cash flows from finance leases	$	73	$	70

LEASES

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to five years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through 2027.

The Company's leases do 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.

Lease Expense

The components of the Company's lease expense are presented below:

	Fiscal Year Ended July 31,
	2022		2021
	(In thousands)
Operating lease cost	$	9,973	$	10,555
Short-term lease expense	1,488		1,627
Sublease income	748		—
Variable lease cost	24		28
Interest on finance lease liabilities	3		6
	$	12,236	$	12,216

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of July 31, 2022 were as follows:

	Operating Leases		Finance Leases
	(In thousands)
2023	$	7,151	$	38
2024	4,254		—
2025	3,687		—
2026	2,718		—
2027	2,101		—
Thereafter	—		—
Total lease payments	19,911		38
Less: imputed interest	538		—
Present value of lease payments	19,373		38
Less: current lease obligations	6,428		38
Long-term lease obligations	$	12,945	$	—

In order to calculate the operating ROU asset and operating lease liability for a lease, a lessee is required to apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements generally do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors and, therefore, the Company determines 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 July 31, 2022 was as follows:

Weighted average remaining lease term:
Operating leases	3.7	years
Finance leases	0.4	years
Weighted average discount rate:
Operating leases		3.9%
Finance leases		3.9%

Supplemental Cash Flow Information

Supplemental cash flow information related to the cash paid for amounts included in measurement of lease liabilities during the fiscal year ended July 31, 2022 and 2021 was as follows:

	Fiscal Year Ended July 31,
	2022		2021
	(In thousands)
Operating cash flows from operating leases	$	9,653	$	10,705
Operating cash flows from finance leases	$	3	$	6
Financing cash flows from finance leases	$	73	$	70