Leases

12 Months Ended

Oct. 31, 2020

Leases [Abstract]

Leases

9.Leases

The components of total operating lease expense included in other expenses in the Company’s Consolidated Statement of Income are as follows:

		Year Ended
		October 31,
(in thousands)		2020
Operating lease expense	$	24,944
Variable lease expense		5,640
Total operating lease expense	$	30,584

Operating lease liabilities primarily relate to office space leases in the U.S. that expire over various terms through 2039. A maturity analysis of undiscounted operating lease payments not yet paid and additional information related to the total amount of operating lease liabilities reported on the Company’s Consolidated Balance Sheet at October 31, 2020 are as follows:

Year Ending October 31,
(in thousands)		Amount
2021	$	27,018
2022		26,562
2023		25,736
2024		25,675
2025		26,046
2026 - thereafter		225,396
Total undiscounted operating lease payments		356,433
Less: Imputed interest to be recognized as operating lease expense		(55,014)
Total operating lease liabilities	$	301,419
Weighted average remaining lease term		13.7 years
Weighted average discount rate		2.4%

During fiscal 2020, the Company amended certain office space leases in the U.S. to extend their term and/or expand the lease premises. Separately, in the fourth quarter of fiscal 2020, the Company assumed the right to lease certain office space as part of the acquisition of WaterOak Advisors, LLC as described further in Note 10. Collectively, these transactions resulted in a net increase in operating lease right-of-use assets and operating lease liabilities of $0.3 million.

The Company utilizes estimated incremental borrowing rates as the discount rate to measure its lease liabilities. Incremental borrowing rates reflect the terms and conditions of each lease arrangement and are estimated at lease inception utilizing readily observable market-based unsecured corporate borrowing rates (commensurate with the Company’s credit rating on its outstanding senior unsecured public debt) that correspond to the weighted average term of the lease, primarily adjusted for the effects of collateralization.

Rent expense totaled $24.5 million and $23.2 million, respectively, for the years ended October 31, 2019 and 2018. As of October 31, 2019, the Company’s total future minimum lease commitments by year were as follows:

Year Ending October 31,
(in thousands)		Amount
2020	$	25,239
2021		26,242
2022		26,296
2023		25,642
2024		25,614
2025 - thereafter		252,694
Total	$	381,727