Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Apr. 30, 2022
Leases Disclosure [Abstract]  

Note 8 - Leases


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 6 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   April 30,
    July 31,
Operating   Right-of-use assets   $ 14,962     $ 17,020  
Finance   Property, plant and equipment, net (a)     191       248  
Total lease assets       $ 15,153     $ 17,268  
Operating   Current portion of operating lease liabilities   $ 3,171     $ 3,419  
Finance   Finance leases short term     81       88  
Operating   Operating lease liabilities, non-current     12,779       14,558  
Finance   Finance leases long term and other liabilities     59       110  
Total lease liabilities       $ 16,090     $ 18,175  


(a) Accumulated amortization of finance lease assets was approximately $190 and $1,100 as of April 30, 2022 and July 31, 2021, respectively.


Components of lease cost were as follows:


    Three months ended
April 30,
    Nine months ended
April 30,
    2022     2021     2022     2021  
Operating lease cost   $ 1,085     $ 1,271     $ 3,372     $ 4,265  
Finance lease cost:                                
Amortization of leased assets     19       19       57       118  
Interest on lease liabilities     3       3       8       12  
Total lease cost   $ 1,107     $ 1,293     $ 3,437     $ 4,395  


The maturity of the Company’s lease liabilities as of April 30, 2022 is as follows: 


Maturity of lease liabilities, years ending July 31,   Operating
2022   $ 1,064     $ 22     $ 1,086  
2023     3,735       88       3,823  
2024     3,561       37       3,598  
2025     3,299      
2026     3,150      
Thereafter     3,224      
Total lease payments     18,033       147       18,180  
Less: Interest (a)     (2,083 )     (7 )     (2,090 )
Present value of lease liabilities   $ 15,950     $ 140     $ 16,090  


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


Lease term and discount rate for the nine months ended April 30 were as follows: 


Lease term and discount rate   2022     2021  
Weighted-average remaining lease term (years):            
Operating leases     5.0 years       5.8 years  
Finance leases     1.7 years       2.7 years  
Weighted-average discount rate:                
Operating leases     4.97 %     4.97 %
Finance leases     5.20 %     8.25 %


See Note 4 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the three months ended April 30, 2022 and 2021.