XML 37 R25.htm IDEA: XBRL DOCUMENT
v3.21.4

Leases | 12 Months Ended
--- | ---
Oct. 31, 2021
Leases |
Leases | 17. Leases ​ The impact of applying ASC 842 effective as of November 1, 2019, to the Company’s consolidated statements of operations and cash flows was not significant. The major impacts to the balance sheet at the effective date were 1) the addition of $65.7 million in operating lease assets and $69.6 million of operating lease liabilities, 2) the removal of approximately $3.7 million and $1.2 million of deferred rent and other long-term obligations, respectively, and 3) a cumulative-effect adjustment for the adoption of ASC 842 of $0.9 million was recorded to retained earnings, which relates to the gain previously recognized in accordance with ASC 840 on its sale and operating leaseback of the Temecula facility. ​ ASC 842 made changes to sale-leaseback accounting to result in the recognition of the gain on the transaction at the time of the sale instead of recognizing over the leaseback period, when the transaction is deemed to be a sale instead of a financing arrangement. ASC 842 further changes the assessment of sale accounting from a transfer of risk and rewards assessment to a transfer of control assessment. ​ We utilized the modified retrospective adoption method. Therefore, the consolidated financial statements for 2020 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. ​ The standard provides a number of optional practical expedients and policy elections in transition. We have elected to apply the package of practical expedients under which we will not reassess under the standard our prior conclusions about lease classification and initial direct costs. We have elected the short-term lease recognition exemption for all leases that qualify (under one year term), meaning we will recognize expense on a straight-line basis and will not include the recognition of a right-of-use asset or lease liability. We will account for lease and non-lease components as a single-lease component for all leases. ​ We lease property and equipment under finance and operating leases. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when appropriate. ​ Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. We estimated our incremental borrowing rate based upon a synthetic credit rating and yield curve analysis. As a result, the incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. ​ We lease certain property, plant and equipment, including office facilities, under operating leases. The lease term consists of the noncancellable period of the lease and the periods covered by options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements do not contain any residual value guarantees. ​ Lease Position ​ The following table presents the lease-related assets and liabilities recorded on the balance sheet as of October 31, 2021 and 2020 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | October 31, |  | October 31,
​ | ​ | ​ | 2021 |  | 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets |  |  | ​ |  | ​ | ​ |
Non-current assets: |  |  | ​ |  | ​ | ​ |
Operating lease assets | Operating lease right-of-use assets | ​ | $ | 59,842 | ​ | $ | 60,262
Finance lease assets | Property, plant and equipment, net | ​ |  | 6,907 | ​ |  | 6,830
​ | ​ | ​ | $ | 66,749 | ​ | $ | 67,092
Liabilities |  | ​ |  |  | ​ |  |
Current liabilities: |  | ​ |  |  | ​ |  |
Operating | Current portion of operating leases | ​ | $ | 6,817 | ​ | $ | 6,443
Finance | Current portion of long-term obligations and finance leases | ​ |  | 1,587 | ​ |  | 1,343
Long-term obligations |  | ​ |  |  | ​ |  |
Operating | Long-term operating leases, less current portion | ​ |  | 57,561 | ​ |  | 58,273
Finance | Long-term obligations and finance leases, less current portion | ​ |  | 5,553 | ​ |  | 5,716
​ | ​ | ​ | $ | 71,518 | ​ | $ | 71,775
​
​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted-average remaining lease term: |  | Fiscal 2021 | ​ | Fiscal 2020
Operating leases |  | 10.1 years | ​ | ​ | 10.0 years | ​
Finance leases |  | 7.1 years | ​ | ​ | 7.9 years | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted-average discount rate: |  |  | ​ | ​ |  | ​
Operating leases |  | 2.80 | % | ​ | 2.83 | %
Finance leases |  | 3.20 | % | ​ | 3.28 | %
​ Lease Costs ​ The following table presents certain information related to the lease costs for finance and operating leases for the year ended October 31, 2021 and 2020 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year ended | ​ | Year ended
​ |  | October 31, 2021 | ​ | October 31, 2020
Amortization of financing lease assets |  | $ | 1,799 | ​ | $ | 1,043
Operating lease cost | ​ | ​ | 9,152 | ​ | ​ | 8,271
Short-term lease cost | ​ | ​ | 2,981 | ​ | ​ | 996
Sublease income | ​ | ​ | (704) | ​ | ​ | —
Variable lease cost | ​ | ​ | 275 | ​ | ​ | 2,865
Interest on financing lease liabilities | ​ | ​ | 235 | ​ | ​ | 235
Total lease cost | ​ | $ | 13,738 | ​ | $ | 13,410
​ Other Information ​ The following table presents supplemental cash flow information related to the leases for the year ended October 31, 2021 and 2020 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year ended | ​ | Year ended
Cash paid for amounts included in the measurement of lease liabilities |  | October 31, 2021 | ​ | October 31, 2020
Operating cash flows for operating leases |  | $ | 7,200 | ​ | $ | 7,689
Financing cash flows for finance leases | ​ | ​ | 1,672 | ​ | ​ | 1,115
Operating cash flows for finance leases | ​ | ​ | 235 | ​ | ​ | 235
​ The total right-of-use assets obtained in exchange for new operating leases for the year ended October 31, 2021 and 2020 was $1.0 million and $1.1 million. ​ Undiscounted Cash Flows ​ The following table reconciles the undiscounted cash flows for each of the first five years and total remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of October 31, 2021 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Operating |  | Finance
​ |  | Leases |  | Leases
2022 |  | $ | 8,514 |  | $ | 1,838
2023 | ​ | ​ | 8,271 | ​ | ​ | 1,684
2024 | ​ | ​ | 7,782 | ​ | ​ | 1,099
2025 | ​ | ​ | 6,878 | ​ | ​ | 623
2026 | ​ | ​ | 6,586 | ​ | ​ | 409
Thereafter | ​ | ​ | 36,319 | ​ | ​ | 2,467
Total lease payments | ​ | ​ | 74,350 | ​ | ​ | 8,120
Less: imputed interest | ​ | ​ | 9,972 | ​ | ​ | 980
Total lease liability |  | $ | 64,378 |  | $ | 7,140
​

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration