Note 7 - Property, Plant and Equipment

12 Months Ended

Oct. 31, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

7.

Property, Plant and Equipment

The significant components of property, plant and equipment at

October 31, 2019

for the Successor and at

October 31, 2018

for the Predecessor are comprised of the following:

	Successor			Predecessor
	October 31,			October 31,
(in thousands)	2019			2018
Land, building and improvements	$	26,085		$	22,244
Capital leases—land and buildings		828			909
Machinery and equipment		295,741			237,094
Transportation equipment		2,223			3,297
Furniture and office equipment		1,209			1,486
		326,086			265,030
Less accumulated depreciation		(18,671	)		(63,115	)
Property, plant and equipment, net	$	307,415		$	201,915

Depreciation expense for the Successor period from

December 6, 2018

to

October 31, 2019

was

$20.3

million. Depreciation expense for the Predecessor period from

November 1, 2018

to

December 5, 2018

and for the

twelve

-month period ended

October 31, 2018

was

$2.1

million and

$17.7

million, respectively. Depreciation expense related to revenue producing machinery and equipment is recorded in cost of operations and an immaterial amount of depreciation expense related to our capital leases and furniture and fixtures is included in general and administrative expenses. In conjunction with the Business Combination, the basis of all property, plant and equipment was recognized at fair value in purchase accounting and as such, there is a significant decline in the accumulated depreciation balances as of

October 31, 2019

when compared to

October 31, 2018.