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Leases
 12 Months Ended
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, 2020October 31, 2019
Land$3,522 $1,279 
Buildings, equipment and building improvements18,516 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 payments335 
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 
2022517 
2023344 
202470 
202570 
Thereafter925 
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):
ClassificationOctober 31, 2020
Assets
Operating lease ROU assetsOther assets$2,053 
Liabilities and Stockholders' Equity
Current operating lease liabilitiesAccrued liabilities521 
Non-current operating lease liabilitiesOther long-term liabilities1,610 
Total operating lease liabilities$2,131 
Weighted-average remaining lease term (in years)11.0
Weighted-average discount rate3.8 %

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 
2022358 
2023182 
2024151
2025134
Thereafter1,315
Total lease payments2,649
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 
2021492 
2022291 
2023154 
2024134 
Thereafter1,382 
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, 2020October 31, 2019
Land$3,522 $1,279 
Buildings, equipment and building improvements18,516 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 payments335 
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 
2022517 
2023344 
202470 
202570 
Thereafter925 
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):
ClassificationOctober 31, 2020
Assets
Operating lease ROU assetsOther assets$2,053 
Liabilities and Stockholders' Equity
Current operating lease liabilitiesAccrued liabilities521 
Non-current operating lease liabilitiesOther long-term liabilities1,610 
Total operating lease liabilities$2,131 
Weighted-average remaining lease term (in years)11.0
Weighted-average discount rate3.8 %

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 
2022358 
2023182 
2024151
2025134
Thereafter1,315
Total lease payments2,649
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 
2021492 
2022291 
2023154 
2024134 
Thereafter1,382 
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.