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Leases | 12 Months Ended
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Oct. 31, 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 22 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):
| October 31, 2020 |  | October 31, 2019
Land | $ | 3,522 |  |  | $ | 1,279 |
Buildings, equipment and building improvements | 18,516 |  |  | 22,841 |
Less: accumulated depreciation | (5,691) |  |  | (7,551) |
Property, plant and equipment, net under operating leases | $ | 16,347 |  |  | $ | 16,569 |
Depreciation expense for assets under operating leases was approximately $664,000 for fiscal year 2020. The Company’s rental operations revenue consists of the following (in thousands):
| October 31, 2020
Operating lease payments | $ | 4,287 |
Variable lease payments | 335 |
Total lease payments | $ | 4,622 |
The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2020 are as follows (in thousands):
2021 | $ | 713 |
2022 | 517 |
2023 | 344 |
2024 | 70 |
2025 | 70 |
Thereafter | 925 |
Total | $ | 2,639 |
The Company’s rental operations revenue included contingent rental revenue of $355,000 and $324,000 for fiscal years 2019 and 2018, respectively. 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 17 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 October 31, 2020, there were no material finance leases for which the Company was a lessee. 13. Leases (continued) Operating lease costs were $559,000 for fiscal year 2020, 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 |  | October 31, 2020
Assets |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,053 |
Liabilities and Stockholders' Equity |  |  |
Current operating lease liabilities | Accrued liabilities |  | 521 |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,610 |
Total operating lease liabilities |  |  | $ | 2,131 |
Weighted-average remaining lease term (in years) |  |  | 11.0
Weighted-average discount rate |  |  | 3.8 | %
Supplemental cash flow information related to leases consists of the following (in thousands):
|  | October 31, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash outflows from operating leases |  | $ | 559 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 108 |
Future minimum lease payments under non-cancellable leases for each of the subsequent five fiscal years and thereafter are as follows (in thousands):
2021 | $ | 509 |
2022 | 358 |
2023 | 182 |
2024 | 151
2025 | 134
Thereafter | 1,315
Total lease payments | 2,649
Less: Imputed interest | (518) |
Total | $ | 2,131 |
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 $307,000 for each of the fiscal years 2021 and 2022 and $51,000 in fiscal year 2023. 13. Leases (continued) 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 |
Total | $ | 3,141 |
Total lease expense for fiscal years 2019 and 2018 was $733,000 and $2,028,000, respectively, which was included in agribusiness costs and expenses in the Company’s consolidated statements of operations. In October 2018, the Company purchased a 1,000 KW photovoltaic generator for $1,125,000 that was previously under a 10-year operating lease agreement with Farm Credit West. In December 2018, the Company purchased another 1,000 KW photovoltaic generator for $1,275,000 that was previously under a 10-year operating lease agreement with Farm Credit West.
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 22 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):
| October 31, 2020 |  | October 31, 2019
Land | $ | 3,522 |  |  | $ | 1,279 |
Buildings, equipment and building improvements | 18,516 |  |  | 22,841 |
Less: accumulated depreciation | (5,691) |  |  | (7,551) |
Property, plant and equipment, net under operating leases | $ | 16,347 |  |  | $ | 16,569 |
Depreciation expense for assets under operating leases was approximately $664,000 for fiscal year 2020. The Company’s rental operations revenue consists of the following (in thousands):
| October 31, 2020
Operating lease payments | $ | 4,287 |
Variable lease payments | 335 |
Total lease payments | $ | 4,622 |
The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2020 are as follows (in thousands):
2021 | $ | 713 |
2022 | 517 |
2023 | 344 |
2024 | 70 |
2025 | 70 |
Thereafter | 925 |
Total | $ | 2,639 |
The Company’s rental operations revenue included contingent rental revenue of $355,000 and $324,000 for fiscal years 2019 and 2018, respectively. 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 17 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 October 31, 2020, there were no material finance leases for which the Company was a lessee. 13. Leases (continued) Operating lease costs were $559,000 for fiscal year 2020, 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 |  | October 31, 2020
Assets |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,053 |
Liabilities and Stockholders' Equity |  |  |
Current operating lease liabilities | Accrued liabilities |  | 521 |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,610 |
Total operating lease liabilities |  |  | $ | 2,131 |
Weighted-average remaining lease term (in years) |  |  | 11.0
Weighted-average discount rate |  |  | 3.8 | %
Supplemental cash flow information related to leases consists of the following (in thousands):
|  | October 31, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash outflows from operating leases |  | $ | 559 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 108 |
Future minimum lease payments under non-cancellable leases for each of the subsequent five fiscal years and thereafter are as follows (in thousands):
2021 | $ | 509 |
2022 | 358 |
2023 | 182 |
2024 | 151
2025 | 134
Thereafter | 1,315
Total lease payments | 2,649
Less: Imputed interest | (518) |
Total | $ | 2,131 |
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 $307,000 for each of the fiscal years 2021 and 2022 and $51,000 in fiscal year 2023. 13. Leases (continued) 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 |
Total | $ | 3,141 |
Total lease expense for fiscal years 2019 and 2018 was $733,000 and $2,028,000, respectively, which was included in agribusiness costs and expenses in the Company’s consolidated statements of operations. In October 2018, the Company purchased a 1,000 KW photovoltaic generator for $1,125,000 that was previously under a 10-year operating lease agreement with Farm Credit West. In December 2018, the Company purchased another 1,000 KW photovoltaic generator for $1,275,000 that was previously under a 10-year operating lease agreement with Farm Credit West.

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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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