LEASES

3 Months Ended

Jan. 31, 2021

The Company leases certain buildings, warehouses, land, transportation equipment, operating equipment, and office equipment with remaining lease terms from less than one year up to 21 years. The Company reviews all options to extend, terminate, or purchase a right of use asset at the time of lease inception and accounts for options deemed reasonably certain.

The Company combines lease and non-lease components for all leases, except real estate, for which these components are presented separately. Leases with an initial term of twelve months or less are not capitalized and are recognized on a straight-line basis over the lease term. The implicit rate is not readily determinable for substantially all of the Company's leases, and therefore the initial present value of lease payments is calculated utilizing an estimated incremental borrowing rate determined at the portfolio level based on market and Company specific information.

Certain of the Company’s leases include variable costs. As the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, changes in these variable expenses are not capitalized and are expensed as incurred throughout the lease term.

As of January 31, 2021, the Company does not have material exposure to finance leases and has not entered into any significant leases which have not yet commenced.

The following table presents the lease expense components for the three months ended January 31, 2021 and 2020:


	Three Months Ended January 31,
(in millions)	2021		2020
Operating lease cost	$	17.3	$	17.2
Other lease cost*	5.7		6.4
Total lease cost	$	23.0	$	23.6

*Amount includes variable, short-term, and finance lease costs.

Future maturity for the Company's lease liabilities, during the next five years, and in the aggregate for the years thereafter, are as follows:


(in millions)	January 31, 2021
2021	$	66.8
2022	58.2
2023	50.0
2024	41.1
2025	37.0
Thereafter	139.9
Total lease payments	$	393.0
Less: Interest	(90.7)
Lease liabilities	$	302.3

The following table presents other required lease related information for the three months ended January 31, 2021:


	Three Months Ended January 31,
(in millions)	2021			2020
Operating cash flows used for operating liabilities	$	17.4		$	17.1
Leased assets obtained in exchange for new operating lease liabilities	1.9			28.7
Weighted-average remaining lease term (years)	10.9			10.4
Weighted-average discount rate	3.68		%	3.39		%