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Note 9 - Leases

6 Months Ended

Apr. 30, 2024

9.	Leases

We rent certain office space for use in our operations. Our lease population at April 30, 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				Six Months Ended
	April 30,				April 30,
(In thousands)	2024		2023		2024		2023
Operating lease costs	$	2,755	$	3,005	$	5,388	$	5,864
Cash payments on lease liabilities	$	2,142	$	2,351	$	4,380	$	4,737

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, 2024 the Company recorded a net increase to both its ROU assets and lease liabilities of $2.7 million and $3.0 million, respectively, as a result of new leases that commenced during the period. The following table contains additional information about our leases:

(In thousands)	April 30, 2024			October 31, 2023
ROU assets	$	24,156		$	25,745
Lease liabilities	$	25,874		$	26,470
Weighted-average remaining lease term (in years)		4.9			5.1
Weighted-average discount rate		10.0	%		10.0	%

Maturities of our operating lease liabilities as of April 30, 2024 are as follows:

Fiscal Year Ending October 31,	(In thousands)
2024 (excluding the six months ended April 30, 2024)	$	4,554
2025		8,923
2026		7,450
2027		4,918
2028		1,909
2029 and thereafter		4,889
Total operating lease payments (1)		32,643
Less: imputed interest		(6,769	)
Present value of operating lease liabilities	$	25,874

(1) Lease payments include options to extend lease terms that are reasonably certain of being executed and exclude $3.3 million of legally binding minimum lease payments for office leases signed but not yet commenced as of April 30, 2024. The related ROU assets and operating lease liabilities are not reflected on the Company's Condensed Consolidated Balance Sheets.