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Note 9 - Leases

3 Months Ended

Jan. 31, 2023

9.	Leases

We rent certain office space for use in our operations. Our lease population at January 31, 2023 is comprised of operating leases where we are the lessee, primarily for our corporate office and division offices.

Lease costs are included in our Condensed Consolidated Statements of Operations, primarily in "Selling, general and administrative" homebuilding expenses and payments on our lease liabilities are presented in the table below. Our short-term lease costs and sublease income are de minimis.

	Three Months Ended January 31,
(In thousands)	2023		2022
Operating lease costs	$	2,859	$	2,588
Cash payments on lease liabilities	$	2,386	$	2,440

Operating right-of-use lease assets ("ROU assets") are classified within "Prepaid expenses and other assets" on our Condensed Consolidated Balance Sheets, while lease liabilities are classified within "Accounts payable and other liabilities". During the three months ended January 31, 2023, the Company recorded a net increase of $0.4 million to both its ROU assets and lease liabilities as a result of new leases and lease renewals that commenced during the period. The following table contains additional information about our leases:

(In thousands)	January 31, 2023			October 31, 2022
ROU assets	$	17,650		$	17,899
Lease liabilities	$	18,498		$	18,862
Weighted-average remaining lease term (in years)		3.4			3.5
Weighted-average discount rate		9.5	%		9.5	%

Maturities of our operating lease liabilities as of January 31, 2023 are as follows:

Fiscal Year Ended October 31,	(In thousands)
2023 (excluding the three months ended January 31, 2023)	$	6,321
2024		5,779
2025		4,653
2026		3,111
2027		1,863
Total operating lease payments (1)		21,727
Less: imputed interest		(3,229	)
Present value of operating lease liabilities	$	18,498

(1) Lease payments exclude $13.7 million of legally binding minimum lease payments for office leases signed but not yet commenced as of January 31, 2023. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets as of January 31, 2023.