Leases

3 Months Ended

Oct. 31, 2019

The Company leases certain real estate properties, information technology equipment, manufacturing and warehouse equipment, vehicles and other equipment through operating lease arrangements. Upon lease inception, the Company determines whether an arrangement that provides control over the use of an asset to the Company is a lease. The Company recognizes a lease liability and corresponding right-of-use asset based on the present value of future lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet, but rather the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The Company has elected to separate payments for lease components from non-lease components for all asset classes. Lease agreements may include extension, termination, or purchase options, all of which will be included within the lease liability and right-of-use assets when it is reasonably certain the Company will exercise the option. Most lease agreements do not explicitly state the discount rate implicit in the lease, therefore, the Company’s incremental borrowing rate on the commencement date is used to calculate the present value of future payments.

The Company has elected to exercise the package of practical expedients and has not elected to exercise hindsight in determining lease term and in assessing impairment of the Company’s right-of-use assets. The Company’s finance leases are not significant and therefore, are not included in the following disclosures. Information for the Company’s operating lease costs is as follows (in millions):



	October 31, 2019
Operating lease cost	$	7.5
Short-term lease cost	0.6
Total lease costs	$	8.1

Supplemental balance sheet information for the Company is as follows (in millions):



	October 31, 2019		August 1, 2019
Right-of-use lease assets	$	79.3	$	71.5
Current lease liabilities	24.8		26.0
Long-term lease liabilities	$	54.4	$	45.5

Additional information related to operating leases is as follows:

Maturities of operating lease liabilities at October 31, 2019 were as follows (in millions):



Amounts Due in Year Ending	October 31, 2019
2020	$	20.8
2021	20.3
2022	13.1
2023	7.9
2024	5.6
Thereafter	23.6
Total future minimum lease payments	91.3
Less imputed interest	12.1
Present value of future lease payments	$	79.2

Minimum payments for operating leases having initial terms of more than one year at July 31, 2019 were as follows (in millions):



Amounts Due in Year Ending	July 31, 2019
2020	$	24.0
2021	17.5
2022	11.3
2023	6.4
2024	4.6
Thereafter	19.0
Total future minimum lease payments	82.8
Less imputed interest	11.3
Present value of future lease payments	$	71.5

Right-of-use lease assets obtained in exchange for new lease liabilities were $13.0 million for the three months ended October 31, 2019.

October 31,
2019

August 1,
2019

Weighted average remaining lease term (years)

Weighted average discount rates