Leases

9 Months Ended

Jul. 31, 2021

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.

11. Leases (continued)

Lessor Arrangements (continued)

The Company’s rental operations revenue consists of the following (in thousands):


	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
Operating lease revenue	$	1,086	$	1,078	$	3,215	$	3,235
Variable lease revenue	85		94		237		242
Total lease revenue	$	1,171	$	1,172	$	3,452	$	3,477

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 July 31, 2021, there were no material finance leases for which the Company was a lessee.

Operating lease costs were $128,000 and $143,000 for the three months ended July 31, 2021 and 2020, respectively, and $406,000 and $417,000 for the nine months ended July 31, 2021 and 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	July 31, 2021		October 31, 2020
Assets
Operating lease ROU assets	Other assets	$	1,978	$	2,053

Liabilities and Stockholders' Equity
Current operating lease liabilities	Accrued liabilities and payables to related parties	449		521
Non-current operating lease liabilities	Other long-term liabilities	1,592		1,610
Total operating lease liabilities		$	2,041	$	2,131

Supplemental cash flow information related to leases consists of the following (in thousands):


	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	112	$	126	$	422	$	432

ROU assets obtained in exchange for new operating lease liabilities	$	—	$	108	$	271	$	108

Leases