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Note 1 - Basis of Presentation
12 Months Ended
Oct. 31, 2017
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]
1.
Basis of Presentation
 
Basis of Presentation
- The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and include our accounts and those of all wholly owned subsidiaries, after elimination of all intercompany balances and transactions. Our fiscal year ends
October 31.
 
Reclassifications
-
In
November 2016,
we adopted Accounting Standards Update (“ASU”)
2015
-
03,
“Interest - Imputation of Interest,” which changes the presentation of debt issuance costs in the balance sheet from an asset to a direct reduction of the carrying amount of the related debt. The adoption of this guidance resulted in the reclassification of applicable unamortized debt issuance costs from “Prepaid expenses and other assets” of
$24.5
million to “Nonrecourse mortgages secured by inventory” of
$1.3
million, “Liabilities from inventory
not
owned” of
$3.0
million and “Notes payable and term loan” of
$20.2
million on our Consolidated Balance Sheets as of
October 31, 2016.
We applied the new guidance retrospectively to all prior periods presented in the financial statements to conform to the fiscal
2017
presentation. Additionally, in
November 2016,
we adopted ASU
2015
-
15
“Interest - Imputation of Interest (Subtopic
835
-
30
)” (“ASU
2015
-
15”
), which was issued as a follow-up to ASU
2015
-
03.
ASU
2015
-
15
allows an entity to defer and present debt issuance costs for line-of-credit arrangements as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Therefore, there was
no
change to the presentation of our “Revolving credit facility” on the Consolidated Balance Sheets for any of the periods presented.