NOTE 13:

LEASE LIABILITIES

 

The Company primarily has operating leases for corporate offices and processing facilities with a remaining term of 1.0 to 21.9 years as at July 31, 2022.  The lease for the processing facilities has an evergreen option that can continue for so long as they are in operation.  Short-term leases, which have an initial term of 12 months or less, are not recorded on our Consolidated Balance Sheets.

 

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, total lease expenses include the following components:

    
  

Year Ended July 31,

 
  

2022

  

2021

  

2022

 

Operating Leases

 $274  $220  $230 

Short-term Leases

  1,401   607   445 

Total Lease Expenses

 $1,675  $827  $675 

 

As at July 31, 2022 and 2021, the weighted average remaining lease term was 16.5 and 17.0 years, and the weighted average discount rate was 4.52% and 4.74%, respectively.

 

During Fiscal 2022, Fiscal 2021, and Fiscal 2020, cash paid for amounts included in the measurement of operating lease liabilities totaled $472, $252 and $176, respectively.

 

Minimum future lease payments under operating leases with terms longer than one year are as follows:

     

Fiscal 2023

 $291 

Fiscal 2024

  113 

Fiscal 2025

  104 

Fiscal 2026

  104 

Fiscal 2027

  69 

Thereafter

  975 

Total lease payments

  1,656 

Less: imputed interest

  (472)

Present value of lease liabilities

 $1,184 
     

Current portion of lease liabilities

 $244 

Non-current portion of lease liabilities

 $940 

 

Current lease liabilities are included in Other Current Liabilities, and non-current liabilities are included in Other Non-Current Liabilities in our Consolidated Balance Sheets.

Historical Timeline

Fiscal YearFiled
2022Sep 29, 2022Showing above
2021Oct 28, 2021
2020Oct 29, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.