Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jan. 31, 2020
Leases Disclosure [Abstract]  
Leases​ Disclosure​ [Text ​Block]

Note 8 - Leases

During the first quarter of fiscal 2020, the Company adopted ASU No. 2016-02 “Leases (Topic 842)”, which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date of August 1, 2019. The Company did not apply the new standard to comparative periods and therefore those amounts are not presented below.

The Company determines if an arrangement is or contains a lease at contract inception. The Company leases buildings, office space, patient service centers, and equipment primarily through operating leases, and equipment through a limited number of finance leases. Generally, a right-of-use asset, representing the right to use the underlying asset during the lease term, and a lease liability, representing the payment obligation arising from the lease, are recognized on the balance sheet at lease commencement based on the present value of the payment obligation. For operating leases, expense is recognized on a straight-line basis over the lease term. For finance leases, interest expense on the lease liability is recognized using the effective interest method and amortization of the right-of-use asset is recognized on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The Company primarily uses its incremental borrowing rate in determining the present value of lease payments as the Company’s leases generally do not provide an implicit rate.

The Company has lease agreements with (i) right-of-use asset payments and (ii) non-lease components (i.e. payments related to maintenance fees, utilities, etc.,) which have generally been combined and accounted for as a single lease component.

The Company’s leases have remaining terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 5 years. The Company’s lease terms may include renewal options that are reasonably certain to be exercised and termination options that are reasonably certain not to be exercised.

Certain of the Company’s lease agreements include rental payments adjusted periodically for inflation or a market rate which are included in the lease liabilities.

Leases   Balance Sheet Classification   January 31, 2020  
Operating   Right-of-use assets   $ 22,013  
Finance   Property, plant and equipment, net (a)     527  
Total lease assets       $ 22,540  
Operating   Current portion of operating lease liabilities   $ 4,534  
Finance   Finance leases short term     225  
Operating   Operating lease liabilities, non-current     18,304  
Finance   Other liabilities and finance leases long term     280  
Total lease liabilities       $ 23,343  

(a) Finance lease assets net of accumulated amortization were approximately $0.8 million as of January 31, 2020.

Components of lease cost for the three and six months ended January 31, 2020 were as follows:

Lease cost   Three Months
January 31, 2020
    Six Months
January 31, 2020
Operating lease cost   $ 1,474     $ 2,948  
Finance lease cost:                
Amortization of leased assets     60       115  
Interest on lease liabilities     22       34  
Net lease cost   $ 1,556     $ 3,097  

The maturity of the Company’s lease liabilities as of January 31, 2020 is as follows:

Maturity of lease liabilities   Operating leases   Finance leases   Total
Remainder of fiscal 2020   $ 2,952     $ 241     $ 3,193  
2021     4,997       127       5,124  
2022     3,786       79       3,865  
2023     3,284       74       3,358  
2024     3,274             3,274  
Thereafter     9,556             9,556  
Total lease payments     27,849       521       28,370  
Less: Interest (a)     (5,011 )     (16 )     (5,027 )
Present value of lease liabilities   $ 22,838     $ 505     $ 23,343  

  (a) Primarily calculated using the Company’s incremental borrowing rate.

Lease term and discount rate for the six months ended January 31, 2020 were as follows:

Lease term and discount rate    
Weighted-average remaining lease term (years):    
Operating leases 6.5 years  
Finance leases 2.6 years  
Weighted-average discount rate:    
Operating leases 4.9 %
Finance leases 3.0 %

See Note 4 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the six months ended January 31, 2020.