XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.22.4

Leases | 12 Months Ended
--- | ---
Oct. 31, 2022
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, 2022, we had no material leases that had yet to commence. Additional lease information is summarized below for the twelve months ended October 31:
| October 31, 2022 |  | October 31, 2021
| Finance Leases |  | Operating Leases |  | Finance Leases |  | Operating Leases
Amortization of right of use assets | $ | 6,388 |  |  |  |  | $ | 6,929 |  |  |
Interest | 374 |  |  |  |  | 373 |  |  |
Lease cost (1) | 6,762 |  |  | $ | 20,354 |  |  | 7,302 |  |  | $ | 20,176 |
Short-term and variable lease cost (1) | 1,876 |  |  | 1,611 |  |  | 1,445 |  |  | 2,938 |
Total lease cost | $ | 8,638 |  |  | $ | 21,965 |  |  | $ | 8,747 |  |  | $ | 23,114 |
(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, 2022:
| Finance Leases |  | Operating Leases
Cash outflows for leases | $ | 5,439 |  | $ | 20,125
Weighted average remaining lease term (years) | 8.03 |  | 9.52
Weighted average discount rate | 2.20% |  | 1.80%
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, 2022. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year: |  | Finance Leases |  | Operating Leases
2023 |  | $ | 4,907 |  |  | $ | 15,738 |
2024 |  | 3,306 |  |  | 14,171 |
2025 |  | 2,133 |  |  | 12,299 |
2026 |  | 929 |  |  | 11,552 |
2027 |  | 438 |  |  | 9,775 |
Later years |  | 6,113 |  |  | 53,876 |
Total minimum lease payments |  | 17,826 |  |  | 117,411 |
Amounts representing interest |  | 1,735 |  |  | 10,905 |
Present value of minimum lease payments |  | $ | 16,091 |  |  | $ | 106,506 |
Rental expense for operating leases during the fiscal years ended October 31, 2022, 2021 and 2020 was $20,479, $20,618 and $22,061, respectively. Capitalized net finance leases included in property, plant and equipment during the fiscal years ended October 31, 2022 and October 31, 2021 was $15,176 and $19,745, 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, 2022, we had no material leases that had yet to commence. Additional lease information is summarized below for the twelve months ended October 31:
| October 31, 2022 |  | October 31, 2021
| Finance Leases |  | Operating Leases |  | Finance Leases |  | Operating Leases
Amortization of right of use assets | $ | 6,388 |  |  |  |  | $ | 6,929 |  |  |
Interest | 374 |  |  |  |  | 373 |  |  |
Lease cost (1) | 6,762 |  |  | $ | 20,354 |  |  | 7,302 |  |  | $ | 20,176 |
Short-term and variable lease cost (1) | 1,876 |  |  | 1,611 |  |  | 1,445 |  |  | 2,938 |
Total lease cost | $ | 8,638 |  |  | $ | 21,965 |  |  | $ | 8,747 |  |  | $ | 23,114 |
(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, 2022:
| Finance Leases |  | Operating Leases
Cash outflows for leases | $ | 5,439 |  | $ | 20,125
Weighted average remaining lease term (years) | 8.03 |  | 9.52
Weighted average discount rate | 2.20% |  | 1.80%
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, 2022. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year: |  | Finance Leases |  | Operating Leases
2023 |  | $ | 4,907 |  |  | $ | 15,738 |
2024 |  | 3,306 |  |  | 14,171 |
2025 |  | 2,133 |  |  | 12,299 |
2026 |  | 929 |  |  | 11,552 |
2027 |  | 438 |  |  | 9,775 |
Later years |  | 6,113 |  |  | 53,876 |
Total minimum lease payments |  | 17,826 |  |  | 117,411 |
Amounts representing interest |  | 1,735 |  |  | 10,905 |
Present value of minimum lease payments |  | $ | 16,091 |  |  | $ | 106,506 |
Rental expense for operating leases during the fiscal years ended October 31, 2022, 2021 and 2020 was $20,479, $20,618 and $22,061, respectively. Capitalized net finance leases included in property, plant and equipment during the fiscal years ended October 31, 2022 and October 31, 2021 was $15,176 and $19,745, respectively.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration