On August 1, 2019, the Company adopted new accounting guidance under Accounting Standards Codification Topic 842 ("ASC 842") Leases. ASC 842 established new criteria for recognizing right-of-use assets and lease liabilities for operating lease arrangements. The Company elected to adopt this guidance utilizing the optional transition method that allowed the Company to implement this new guidance prospectively, and to only include the disclosures required under ASC 842 for the periods subsequent to adoption.

The Company has operating leases principally for land, buildings and equipment and has various finance leases for certain land and buildings expiring between calendar 2020 and 2028. Leases with an initial term of twelve months or fewer and which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease.

Certain of the Company's leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.

The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease costs. Lease costs are recorded in Cost of products sold, Selling, general, and administrative expenses and Interest expense in the Condensed Consolidated Statements of Income and Comprehensive Income.

The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are not generally included within our operating leases.


	Three Months Ended		Nine Months Ended
	April 30, 2020		April 30, 2020
Operating lease cost	$	2,920	$	9,063
Finance lease cost
Amortization of right-of-use assets	136		408
Interest on lease liabilities	131		402
Total lease cost	$	3,187	$	9,873


	Nine Months Ended
Supplemental Cash Flows Information	April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,992
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3,777


Supplemental Balance Sheet Information	April 30, 2020
Operating leases:
Operating lease right-of-use assets	$	31,997

Operating lease liabilities
Other current liabilities	$	5,343
Other long-term liabilities	26,820
Total operating lease liabilities	$	32,163

Finance leases:
Finance lease right-of-use assets	$	3,808

Finance lease liabilities
Other current liabilities	$	489
Other long-term liabilities	4,877
Total finance lease liabilities	$	5,366


	April 30, 2020
Weighted-average remaining lease term
Operating leases	13.7 years
Finance leases	7.1 years
Weighted-average discount rate
Operating leases	3.4	%
Finance leases	9.7	%


	Operating Leases		Financing Leases
For the remainder of the fiscal year ending July 31, 2020	$	2,630	$	246
For the fiscal year ending July 31, 2021	8,507		991
For the fiscal year ending July 31, 2022	6,922		1,013
For the fiscal year ending July 31, 2023	4,929		1,036
For the fiscal year ending July 31, 2024	3,997		1,059
For the fiscal year ending July 31, 2025 and thereafter	20,803		3,144
Total future lease payments	$	47,788	$	7,489
Less: amount representing interest	(15,625)		(2,123)
Total reported lease liability	$	32,163	$	5,366


	Operating Leases		Finance Leases
For the fiscal year ending July 31, 2020	$	8,785	$	974
For the fiscal year ending July 31, 2021	6,809		993
For the fiscal year ending July 31, 2022	5,437		1,015
For the fiscal year ending July 31, 2023	3,980		1,037
For the fiscal year ending July 31, 2024	3,424		1,061
For the fiscal year ending July 31, 2025 and thereafter	20,745		3,037
Total future lease payments	$	49,180	8,117
Less: amount representing interest			(2,427)
Total lease liability			5,690
Less: current portion			(444)
Long-term finance lease obligations			$	5,246