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Note 9 - Leases

3 Months Ended

Jan. 31, 2024

9.	Leases

We rent certain office space for use in our operations. Our lease population at January 31, 2024 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.

	Three Months Ended
	January 31,
(In thousands)	2024		2023
Operating lease costs	$	2,633	$	2,859
Cash payments on lease liabilities	$	2,238	$	2,386

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 months ended January 31, 2024, the Company recorded a net increase to both its ROU assets and lease liabilities of $0.3 million as a result of a new lease that commenced during the period. The following table contains additional information about our leases:

(In thousands)	January 31, 2024			October 31, 2023
ROU assets	$	23,833		$	25,745
Lease liabilities	$	25,174		$	26,470
Weighted-average remaining lease term (in years)		5.1			5.1
Weighted-average discount rate		10.0	%		10.0	%

Maturities of our operating lease liabilities as of January 31, 2024 are as follows:

Fiscal Year Ending October 31,	(In thousands)
2024 (excluding the three months ended January 31, 2024)	$	6,341
2025		8,100
2026		6,610
2027		4,389
2028		1,838
2029 and thereafter		4,871
Total operating lease payments (1)		32,149
Less: imputed interest		(6,975	)
Present value of operating lease liabilities	$	25,174

(1) Lease payments include options to extend lease terms that are reasonably certain of being executed and exclude $2.9 million of legally binding minimum lease payments for office leases signed but not yet commenced as of January 31, 2024. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets.