Capital Lease Obligations

9 Months Ended

Apr. 30, 2017

We lease certain equipment under capital leases, the majority of which we assumed in connection with our acquisition of TCS. As of April 30, 2017 and July 31, 2016, the net book value of the leased assets which collateralize the capital lease obligations was $6,347,000 and $8,698,000, respectively, and consisted primarily of machinery and equipment. As of April 30, 2017, our capital lease obligations reflect a blended interest rate of approximately 5.5%. Our capital leases generally contain provisions whereby we can purchase the equipment at the end of the lease for a one dollar buyout. Depreciation of leased assets is included in depreciation expense.

Future minimum payments under capital lease obligations consisted of the following at April 30, 2017:



Remainder of fiscal 2017	$	918,000
Fiscal 2018	2,473,000
Fiscal 2019	1,469,000
Fiscal 2020	304,000
Fiscal 2021 and beyond	—
Total minimum lease payments	5,164,000
Less: amounts representing interest	290,000
Present value of net minimum lease payments	4,874,000
Current portion of capital lease obligations	2,689,000
Non-current portion of capital lease obligations	$	2,185,000