LEASES

12 Months Ended

Oct. 31, 2021

The Company leases certain buildings, warehouses, land, transportation equipment, operating equipment and office equipment with remaining lease terms from less than 1 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, 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 October 31, 2021, the Company had no significant leases that had not commenced.

The following table presents the lease expense components:


	Year Ended
(in millions)	October 31, 2021		October 31, 2020
Operating lease cost	$	70.4	$	67.0
Other lease cost*	24.0		26.8
Total lease cost	$	94.4	$	93.8

*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)	October 31, 2021
2022	$	69.2
2023	64.3
2024	56.3
2025	46.6
2026	40.7
Thereafter	142.3
Total lease payments	419.4
Less: Interest	(125.9)
Lease liabilities	$	293.5

The following table presents the weighted-average lease term and discount rate as of October 31, 2021 and October 31, 2020:


	October 31, 2021		October 31, 2020
Weighted-average remaining lease term (years) for operating lease liabilities	10.3		11.1
Weighted-average discount rate for operating lease liabilities	3.61	%	3.63	%

The following table presents other required lease related information:


(in millions)	October 31, 2021		October 31, 2020
Operating cash flows used for operating leases	$	70.2	$	69.4
Leased assets obtained in exchange for new operating lease liabilities	25.0		67.4