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Leases | 6 Months Ended
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Apr. 30, 2020
Leases [Abstract] |
Leases | Leases Lessor Arrangements The Company enters into leasing transactions in which it rents certain of its assets and the Company is the lessor. These lease contracts are typically classified as operating leases with remaining terms ranging from one month to 23 years, with various renewal terms available. All of the residential rentals have month to month lease terms. The following table presents the components of the Company’s operating lease portfolio included in property, plant and equipment, net as of the dates indicated (in thousands):
| April 30, 2020 |  | October 31, 2019
Land | $ | 1,279 |  |  | $ | 1,279 |
Buildings, equipment and building improvements | 22,841 |  |  | 22,841 |
Less accumulated depreciation | (7,877 | ) |  | (7,551 | )
Property, plant and equipment, net under operating leases | $ | 16,243 |  |  | $ | 16,569 |
Depreciation expense for assets under operating leases was approximately $160,000 and $326,000 for the three and six months ended April 30, 2020. The Company’s rental operations revenue consists of the following (in thousands):
| Three Months Ended April 30, 2020 |  | Six Months Ended April 30, 2020
Operating lease revenue | $ | 1,061 |  |  | $ | 2,157 |
Variable lease revenue | 71 |  |  | 148 |
Total lease revenue | $ | 1,132 |  |  | $ | 2,305 |
The future minimum lease payments to be received by the Company related to these operating lease agreements as of April 30, 2020 are as follows (in thousands):
2020 (excluding the six months ended April 30, 2020) | $ | 563 |
2021 | 659 |
2022 | 469 |
2023 | 339 |
2024 | 42 |
Thereafter | 758 |
Total | $ | 2,830 |
13. Leases (continued) Lessee Arrangements The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for agricultural land and packinghouse equipment with remaining lease terms ranging from one to 18 years, with various term extensions available. The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. As of April 30, 2020, there were no material finance leases for which the Company was a lessee. Operating lease costs were $137,000 and $274,000 for the three and six months ended April 30, 2020, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Variable and short term lease costs were immaterial. Supplemental balance sheet information related to leases consists of the following (in thousands):
| Classification |  | April 30, 2020
Assets |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,187 |
Liabilities and Stockholders' Equity |  |  |
Current operating lease liabilities | Accrued liabilities |  | 540 |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,693 |
Total operating lease liabilities |  |  | $ | 2,233 |
Weighted-average remaining lease term (in years) |  |  | 11.0 |
Weighted-average discount rate |  |  | 3.9 | %
Supplemental cash flow information related to leases consists of the following (in thousands):
| Three Months Ended April 30, 2020 |  | Six Months Ended April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows from operating leases | $ | 122 |  |  | $ | 306 |
ROU assets obtained in exchange for new operating lease liabilities | $ | — |  |  | $ | — |
Future minimum lease payments under non-cancellable leases for the remainder of fiscal year 2020, each of the subsequent four fiscal years and thereafter are as follows (in thousands):
2020 (excluding the six months ended April 30, 2020) | $ | 240 |
2021 | 481 |
2022 | 330 |
2023 | 154 |
2024 | 134 |
Thereafter | 1,450 |
Total lease payments | 2,789 |
Less: Imputed interest | (556 | )
Total | $ | 2,233 |
13. Leases (continued) In addition to operating lease commitments, the Company also has a contract for pollination services which does not meet the definition of a lease, with minimum future payments of $153,000 for the remainder of fiscal year 2020, $307,000 for each of the fiscal years 2021 and 2022 and $51,000 in fiscal year 2023. A summary of the Company’s future minimum payments for obligations under non-cancellable operating leases as of October 31, 2019 was as follows (in thousands):
2020 | $ | 688 |
2021 | 492 |
2022 | 291 |
2023 | 154 |
2024 | 134 |
Thereafter | 1,382 |
| $ | 3,141 |
Leases | Leases Lessor Arrangements The Company enters into leasing transactions in which it rents certain of its assets and the Company is the lessor. These lease contracts are typically classified as operating leases with remaining terms ranging from one month to 23 years, with various renewal terms available. All of the residential rentals have month to month lease terms. The following table presents the components of the Company’s operating lease portfolio included in property, plant and equipment, net as of the dates indicated (in thousands):
| April 30, 2020 |  | October 31, 2019
Land | $ | 1,279 |  |  | $ | 1,279 |
Buildings, equipment and building improvements | 22,841 |  |  | 22,841 |
Less accumulated depreciation | (7,877 | ) |  | (7,551 | )
Property, plant and equipment, net under operating leases | $ | 16,243 |  |  | $ | 16,569 |
Depreciation expense for assets under operating leases was approximately $160,000 and $326,000 for the three and six months ended April 30, 2020. The Company’s rental operations revenue consists of the following (in thousands):
| Three Months Ended April 30, 2020 |  | Six Months Ended April 30, 2020
Operating lease revenue | $ | 1,061 |  |  | $ | 2,157 |
Variable lease revenue | 71 |  |  | 148 |
Total lease revenue | $ | 1,132 |  |  | $ | 2,305 |
The future minimum lease payments to be received by the Company related to these operating lease agreements as of April 30, 2020 are as follows (in thousands):
2020 (excluding the six months ended April 30, 2020) | $ | 563 |
2021 | 659 |
2022 | 469 |
2023 | 339 |
2024 | 42 |
Thereafter | 758 |
Total | $ | 2,830 |
13. Leases (continued) Lessee Arrangements The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for agricultural land and packinghouse equipment with remaining lease terms ranging from one to 18 years, with various term extensions available. The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. As of April 30, 2020, there were no material finance leases for which the Company was a lessee. Operating lease costs were $137,000 and $274,000 for the three and six months ended April 30, 2020, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Variable and short term lease costs were immaterial. Supplemental balance sheet information related to leases consists of the following (in thousands):
| Classification |  | April 30, 2020
Assets |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,187 |
Liabilities and Stockholders' Equity |  |  |
Current operating lease liabilities | Accrued liabilities |  | 540 |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,693 |
Total operating lease liabilities |  |  | $ | 2,233 |
Weighted-average remaining lease term (in years) |  |  | 11.0 |
Weighted-average discount rate |  |  | 3.9 | %
Supplemental cash flow information related to leases consists of the following (in thousands):
| Three Months Ended April 30, 2020 |  | Six Months Ended April 30, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows from operating leases | $ | 122 |  |  | $ | 306 |
ROU assets obtained in exchange for new operating lease liabilities | $ | — |  |  | $ | — |
Future minimum lease payments under non-cancellable leases for the remainder of fiscal year 2020, each of the subsequent four fiscal years and thereafter are as follows (in thousands):
2020 (excluding the six months ended April 30, 2020) | $ | 240 |
2021 | 481 |
2022 | 330 |
2023 | 154 |
2024 | 134 |
Thereafter | 1,450 |
Total lease payments | 2,789 |
Less: Imputed interest | (556 | )
Total | $ | 2,233 |
13. Leases (continued) In addition to operating lease commitments, the Company also has a contract for pollination services which does not meet the definition of a lease, with minimum future payments of $153,000 for the remainder of fiscal year 2020, $307,000 for each of the fiscal years 2021 and 2022 and $51,000 in fiscal year 2023. A summary of the Company’s future minimum payments for obligations under non-cancellable operating leases as of October 31, 2019 was as follows (in thousands):
2020 | $ | 688 |
2021 | 492 |
2022 | 291 |
2023 | 154 |
2024 | 134 |
Thereafter | 1,382 |
| $ | 3,141 |

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- 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
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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