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Leases
 12 Months Ended
Oct. 31, 2020
Leases [Abstract]  
Leases Leases
We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate (IBR) based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data.
We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant, and equipment – net on the Consolidated Balance Sheet with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2020, we had no material leases that had yet to commence.
Additional lease information is summarized below for the twelve months ended October 31, 2020:
October 31, 2020
Finance LeasesOperating Leases
Amortization of right of use assets$7,087 $— 
Interest350 — 
Lease cost(1)
7,437 21,489 
Short-term and variable lease cost(1)
1,478 3,011 
Total lease cost$8,915 $24,500 

(1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income.
Supplemental cash flow information is summarized below for the twelve months ended October 31, 2020:
Cash outflows for leases$7,605$20,918
Weighted average remaining lease term (years)4.6510.47
Weighted average discount rate2.39%1.70%
The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year:Finance LeasesOperating Leases
2021$6,226 $18,821 
20224,332 17,367 
20232,655 14,805 
2024999 13,163 
2025652 11,265 
Later years2,956 63,986 
Total minimum lease payments17,820 139,407 
Amounts representing interest1,366 13,172 
Present value of minimum lease payments$16,454 $126,235 
Rental expense for operating leases during the fiscal years ended October 31, 2019 and October 31, 2018 was $22,061 and $19,131, respectively.
Assets held under capitalized finance leases and included in property, plant and equipment during the fiscal years ended October 31, 2020 and October 31, 2019 was $15,659 and $14,588, respectively.
Leases Leases
We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate (IBR) based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data.
We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant, and equipment – net on the Consolidated Balance Sheet with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2020, we had no material leases that had yet to commence.
Additional lease information is summarized below for the twelve months ended October 31, 2020:
October 31, 2020
Finance LeasesOperating Leases
Amortization of right of use assets$7,087 $— 
Interest350 — 
Lease cost(1)
7,437 21,489 
Short-term and variable lease cost(1)
1,478 3,011 
Total lease cost$8,915 $24,500 

(1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income.
Supplemental cash flow information is summarized below for the twelve months ended October 31, 2020:
Cash outflows for leases$7,605$20,918
Weighted average remaining lease term (years)4.6510.47
Weighted average discount rate2.39%1.70%
The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2020. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year:Finance LeasesOperating Leases
2021$6,226 $18,821 
20224,332 17,367 
20232,655 14,805 
2024999 13,163 
2025652 11,265 
Later years2,956 63,986 
Total minimum lease payments17,820 139,407 
Amounts representing interest1,366 13,172 
Present value of minimum lease payments$16,454 $126,235 
Rental expense for operating leases during the fiscal years ended October 31, 2019 and October 31, 2018 was $22,061 and $19,131, respectively.
Assets held under capitalized finance leases and included in property, plant and equipment during the fiscal years ended October 31, 2020 and October 31, 2019 was $15,659 and $14,588, respectively.