We have operating leases primarily for real estate properties, including corporate headquarters, customer service and sales offices, manufacturing and packaging facilities, warehouses, and research and development facilities, as well as for rail tracks, railcars and office equipment. Our leases for a shared warehouse, office facility, and railcars have options to extend which we are reasonably certain we will exercise and, accordingly, have been considered in the lease term used to recognize our ROU assets and lease liabilities. To determine the present value of the lease liability, we use an incremental borrowing rate,

which is defined as the rate of interest that the Company would have to pay to borrow (on a collateralized basis over a similar term) an amount equal to the lease payments in similar economic environments. As provided in ASC 842, we have elected not to apply these measurement and recognition requirements to short-term leases (i.e., leases with a term of 12 months or less). Short-term leases will not be recorded as ROU assets or lease liabilities on our Consolidated Balance Sheets, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term.

We have no material finance leases, and variable costs for operating leases are immaterial. Operating lease costs are included in Cost of Goods Sold or SG&A expenses based on the nature of the lease. The following table summarizes total lease costs for our operating leases (in thousands):


	For the Twelve Months Ended July 31,
	2026		2025		2024

Operating lease cost	$	4,856	$	5,320	$	3,791
Short-term operating lease cost	$	1,694	$	1,466	$	1,993


	For the Twelve Months Ended July 31,
	2026		2025		2024
Other Information
Cash paid for amounts included in the measurement of lease liabilities:	$	4,227	$	4,515	$	3,112
Right-of-use assets obtained in exchange for new operating lease liabilities	3,007		1		11,471

Operating lease ROU assets and operating lease liabilities are separately presented on the Consolidated Balance Sheets. Other supplemental balance sheet information related to leases was as follows:


	For the Twelve Months Ended July 31,
	2026	2025	2024









Weighted-average remaining lease term - operating leases	8.4 years	4.8 years	5.4 years


Weighted-average discount rate - operating leases	5.93%	5.12%	5.10%

During fiscal year 2026, we renegotiated our corporate office lease to extend the term by 10 years, resulting in a $0.4 million increase to the right-of-use asset and a $1.1 million increase to the right-of-use liability. The difference is due to lease incentives provided as part of the lease modification.

The following table summarizes scheduled minimum future lease payments due within twelve months for operating leases with terms longer than one year for which cash flows are fixed and determinable as of July 31, 2026 (in thousands):




2027	$	4,398
2028	3,507
2029	2,641
2030	1,371
2031	638
Thereafter	6,510
Total	19,065
Less: imputed interest	(4,350)
Net lease obligation	$	14,715