The Company leases certain manufacturing facilities, warehouses and office space, computer equipment, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of July 31, 2026 and 2025, the Company did not have any finance leases.

Short-term lease expense, variable lease expenses, and sublease income were immaterial to the consolidated statements of income for the years ended July 31, 2026, 2025 and 2024.

The following table summarizes lease expense recognized during the years ended July 31, 2026, 2025 and 2024:


	Consolidated Statements of Income Location	July 31, 2026		July 31, 2025		July 31, 2024
Operating lease cost	Cost of goods sold	$	8,541	$	7,856	$	6,257
Operating lease cost	Selling, general, and administrative expenses	12,700		11,289		9,220

The following table summarizes the maturity of the Company’s lease liabilities as of July 31, 2026:


Years ending July 31,	Operating Leases
2027	$	20,065
2028	15,909
2029	11,408
2030	7,324
2031	5,779
Thereafter	19,095
Total lease payments	$	79,580
Less: interest	(10,972)
Present value of lease liabilities	$	68,608

The weighted average remaining lease terms and discount rates for the Company’s operating leases as of July 31, 2026 and 2025 were as follows:


	July 31, 2026		July 31, 2025
Weighted average remaining lease term (in years)	5.8		6.2
Weighted average discount rate	5.1	%	5.0	%

Supplemental cash flow information related to the Company’s operating leases during the years ended July 31, 2026 and 2025 were as follows:


	2026		2025
Operating cash outflows from operating leases	$	20,797	$	18,816
Operating lease assets obtained in exchange for new operating lease liabilities (1)	25,360		35,846

(1)Includes new leases, leases from acquired companies, and remeasurements or modifications of existing leases.

The Company evaluates right-of-use assets for impairment in the same manner as long-lived assets. No impairment charges were recorded during the years ended July 31, 2026, 2025 or 2024.