XML 34 R22.htm IDEA: XBRL DOCUMENT v3.24.0.1
Leases
12 Months Ended
Oct. 31, 2023
Leases  
Leases

15. Leases

We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate.

We also lease certain property, plant and equipment, including office facilities, under operating leases. The lease term consists of the noncancellable period of the lease and the periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements do not contain any residual value guarantees.

Lease Position

The following table presents the lease-related assets and liabilities recorded on the balance sheet as of October 31, 2023 and 2022 (in thousands):

October 31, 

 

October 31, 

2023

 

2022

Assets

  

    

  

  

Non-current assets:

  

 

  

  

Operating lease assets

Operating lease right-of-use assets

$

48,033

$

54,518

Finance lease assets

Property, plant and equipment, net

 

6,777

 

5,721

$

54,810

$

60,239

Liabilities

  

 

  

 

  

Current liabilities:

  

 

  

 

  

Operating

Current portion of operating leases

$

7,062

$

6,925

Finance

Current portion of long-term obligations and finance leases

 

1,604

 

1,574

Long-term obligations

  

 

  

 

  

Operating

Long-term operating leases, less current portion

 

45,393

 

52,140

Finance

Long-term obligations and finance leases, less current portion

 

5,647

 

4,447

$

59,706

$

65,086

Weighted-average remaining lease term:

    

Fiscal 2023

Fiscal 2022

Operating leases

 

8.2 years

9.3 years

Finance leases

 

6.5 years

6.9 years

Weighted-average discount rate:

 

  

  

Operating leases

 

3.10

%

2.87

%

Finance leases

 

4.83

%

3.62

%

Lease Costs

The following table presents certain information related to the lease costs for finance and operating leases for the years ended October 31, 2023 and 2022 (in thousands):

    

Year ended

Year ended

 

October 31, 2023

October 31, 2022

Amortization of financing lease assets (recorded in cost of sales)

 

1,913

1,756

Operating lease cost

8,511

8,733

Short-term lease cost

2,476

2,483

Sublease income

(30)

Variable lease cost

198

133

Interest on financing lease liabilities

273

213

Total lease cost

13,371

13,288

Other Information

The following table presents supplemental cash flow information related to the leases for the years ended October 31, 2023 and 2022 (in thousands):

    

Year ended

Year ended

Cash paid for amounts included in the measurement of lease liabilities

 

October 31, 2023

October 31, 2022

Operating cash flows for operating leases

 

7,043

7,012

Financing cash flows for finance leases

1,793

1,683

Operating cash flows for finance leases

262

213

The total right-of-use assets obtained in exchange for new operating leases for the years ended October 31, 2023 and 2022 were $0.7 million and $1.0 million, respectively.

Undiscounted Cash Flows

The following table reconciles the undiscounted cash flows for each of the first five years and total remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of October 31, 2023 (in thousands):

    

Operating

    

Finance 

 

Leases

 

Leases

2024

 

$

8,556

 

$

1,909

2025

7,539

1,415

2026

7,058

1,137

2027

6,670

997

2028

6,501

748

Thereafter

23,204

2,235

Total lease payments

59,528

8,441

Less: imputed interest

7,073

1,190

Total lease liability

 

$

52,455

 

$

7,251