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Note 9 - Leases

6 Months Ended

Apr. 30, 2023

9.	Leases

We rent certain office space for use in our operations. Our lease population at April 30, 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				Six Months Ended
	April 30,				April 30,
(In thousands)	2023		2022		2023		2022
Operating lease costs	$	3,005	$	2,677	$	5,864	$	5,265
Cash payments on lease liabilities	$	2,351	$	2,214	$	4,737	$	4,654

Operating right-of-use lease assets ("ROU assets") are included in "Prepaid expenses and other assets" on our Condensed Consolidated Balance Sheets, while lease liabilities are included in "Accounts payable and other liabilities". During the three and six months ended April 30, 2023, the Company recorded a net increase of $1.3 million and $1.7 million, respectively, 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)	April 30, 2023			October 31, 2022
ROU assets	$	16,841		$	17,899
Lease liabilities	$	17,612		$	18,862
Weighted-average remaining lease term (in years)		3.2			3.5
Weighted-average discount rate		9.5	%		9.5	%

Maturities of our operating lease liabilities as of April 30, 2023 are as follows:

Fiscal Year Ended October 31,	(In thousands)
2023 (excluding the six months ended April 30, 2023)	$	4,128
2024		6,339
2025		4,959
2026		3,276
2027		1,863
Total operating lease payments (1)		20,565
Less: imputed interest		(2,953	)
Present value of operating lease liabilities	$	17,612

(1) Lease payments include options to extend lease terms that are reasonably certain of being executed and exclude $13.7 million of legally binding minimum lease payments for office leases signed but not yet commenced as of April 30, 2023. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets as of April 30, 2023.