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Leases | 12 Months Ended
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Oct. 31, 2021
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 21 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 October 31 (in thousands):
| 2021 |  | 2020
Land | $ | 3,516 |  |  | $ | 3,522 |
Buildings, equipment and building improvements | 18,712 |  |  | 18,516 |
Less: accumulated depreciation | (6,331) |  |  | (5,691) |
Property, plant and equipment, net under operating leases | $ | 15,897 |  |  | $ | 16,347 |
Depreciation expense for assets under operating leases was approximately $669,000 and $664,000 for the fiscal years 2021 and 2020, respectively. The Company’s rental operations revenue consists of the following (in thousands):
| Year ended October 31,
| 2021 |  | 2020
Operating lease revenue | $ | 4,329 |  |  | $ | 4,287 |
Variable lease revenue | 317 |  |  | 335 |
Total lease revenue | $ | 4,646 |  |  | $ | 4,622 |
13. Leases (continued) Lessor Arrangements (continued) The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2021 are as follows (in thousands):
2022 | $ | 1,274 |
2023 | 1,100 |
2024 | 822 |
2025 | 823 |
2026 | 167 |
Thereafter | 675 |
Total | $ | 4,861 |
The Company’s rental operations revenue included contingent rental revenue of $355,000 for fiscal year 2019. Lessee Arrangements The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are classified as either operating or finance leases. The Company’s lease contracts are generally for agricultural land and packinghouse equipment with remaining lease terms ranging from one to 16 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. Operating lease costs were $606,000 and $559,000 and variable lease costs were $288,000 and immaterial, for the fiscal years 2021 and 2020, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Finance lease costs and short term lease costs were immaterial for both years. Supplemental balance sheet information related to leases consists of the following as of October 31 (in thousands):
| Classification |  | 2021 |  | 2020
Assets |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,041 |  |  | $ | 2,053 |
Finance lease assets | Other assets |  | 1,142 |  |  | — |
|  |  | $ | 3,183 |  |  | $ | 2,053 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Accrued liabilities and payables to related parties |  | $ | 488 |  |  | $ | 521 |
Current finance lease liabilities | Accrued liabilities |  | 249 |  |  | — |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,648 |  |  | 1,610 |
Non-current finance lease liabilities | Other long-term liabilities |  | 884 |  |  | — |
Total operating lease liabilities |  |  | $ | 3,269 |  |  | $ | 2,131 |
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  |  | 10.9 |  | 11.0
Finance leases |  |  | 4.9 |  | — |
Weighted-average discount rate |  |  |  |  |
Operating leases |  |  | 3.7 | % |  | 3.8 | %
Finance leases |  |  | 3.3 | % |  | — |
13. Leases (continued) Lessee Arrangements (continued) Supplemental cash flow information related to leases consists of the following (in thousands):
|  | Year ended October 31,
|  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash outflows from operating leases |  | $ | 603 |  |  | $ | 559 |
Operating cash outflows from finance leases |  | $ | 3 |  |  | $ | — |
Financing cash outflows from finance leases |  | $ | 18 |  |  | $ | — |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 271 |  |  | $ | 108 |
Leased assets obtained in exchange for new finance lease liabilities |  | $ | 1,151 |  |  | $ | — |
Future minimum lease payments under non-cancellable leases for each of the subsequent five fiscal years and thereafter are as follows (in thousands), which excludes $448,000 of operating lease payments for leases that have been signed but not commenced:
| Operating |  | Finance |  | Total
2022 | $ | 488 |  |  | $ | 249 |  |  | $ | 737 |
2023 | 312 |  |  | 249 |  |  | 561 |
2024 | 281 |  |  | 249 |  |  | 530 |
2025 | 210 |  |  | 249 |  |  | 459 |
2026 | 134 |  |  | 229 |  |  | 363 |
Thereafter | 1,192 |  |  | — |  |  | 1,192 |
Total lease payments | 2,617 |  |  | 1,225 |  |  | 3,842 |
Less: Imputed interest | (481) |  |  | (92) |  |  | (573) |
Present value of lease liabilities | $ | 2,136 |  |  | $ | 1,133 |  |  | $ | 3,269 |
In addition to operating and finance 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 and $51,000 in fiscal years 2022 and 2023, respectively. Total lease expense for fiscal year 2019 was $733,000, which was included in agribusiness costs and expenses in the Company’s consolidated statements of operations.
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 21 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 October 31 (in thousands):
| 2021 |  | 2020
Land | $ | 3,516 |  |  | $ | 3,522 |
Buildings, equipment and building improvements | 18,712 |  |  | 18,516 |
Less: accumulated depreciation | (6,331) |  |  | (5,691) |
Property, plant and equipment, net under operating leases | $ | 15,897 |  |  | $ | 16,347 |
Depreciation expense for assets under operating leases was approximately $669,000 and $664,000 for the fiscal years 2021 and 2020, respectively. The Company’s rental operations revenue consists of the following (in thousands):
| Year ended October 31,
| 2021 |  | 2020
Operating lease revenue | $ | 4,329 |  |  | $ | 4,287 |
Variable lease revenue | 317 |  |  | 335 |
Total lease revenue | $ | 4,646 |  |  | $ | 4,622 |
13. Leases (continued) Lessor Arrangements (continued) The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2021 are as follows (in thousands):
2022 | $ | 1,274 |
2023 | 1,100 |
2024 | 822 |
2025 | 823 |
2026 | 167 |
Thereafter | 675 |
Total | $ | 4,861 |
The Company’s rental operations revenue included contingent rental revenue of $355,000 for fiscal year 2019. Lessee Arrangements The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are classified as either operating or finance leases. The Company’s lease contracts are generally for agricultural land and packinghouse equipment with remaining lease terms ranging from one to 16 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. Operating lease costs were $606,000 and $559,000 and variable lease costs were $288,000 and immaterial, for the fiscal years 2021 and 2020, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Finance lease costs and short term lease costs were immaterial for both years. Supplemental balance sheet information related to leases consists of the following as of October 31 (in thousands):
| Classification |  | 2021 |  | 2020
Assets |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 2,041 |  |  | $ | 2,053 |
Finance lease assets | Other assets |  | 1,142 |  |  | — |
|  |  | $ | 3,183 |  |  | $ | 2,053 |
Liabilities |  |  |  |  |
Current operating lease liabilities | Accrued liabilities and payables to related parties |  | $ | 488 |  |  | $ | 521 |
Current finance lease liabilities | Accrued liabilities |  | 249 |  |  | — |
Non-current operating lease liabilities | Other long-term liabilities |  | 1,648 |  |  | 1,610 |
Non-current finance lease liabilities | Other long-term liabilities |  | 884 |  |  | — |
Total operating lease liabilities |  |  | $ | 3,269 |  |  | $ | 2,131 |
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  |  | 10.9 |  | 11.0
Finance leases |  |  | 4.9 |  | — |
Weighted-average discount rate |  |  |  |  |
Operating leases |  |  | 3.7 | % |  | 3.8 | %
Finance leases |  |  | 3.3 | % |  | — |
13. Leases (continued) Lessee Arrangements (continued) Supplemental cash flow information related to leases consists of the following (in thousands):
|  | Year ended October 31,
|  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash outflows from operating leases |  | $ | 603 |  |  | $ | 559 |
Operating cash outflows from finance leases |  | $ | 3 |  |  | $ | — |
Financing cash outflows from finance leases |  | $ | 18 |  |  | $ | — |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 271 |  |  | $ | 108 |
Leased assets obtained in exchange for new finance lease liabilities |  | $ | 1,151 |  |  | $ | — |
Future minimum lease payments under non-cancellable leases for each of the subsequent five fiscal years and thereafter are as follows (in thousands), which excludes $448,000 of operating lease payments for leases that have been signed but not commenced:
| Operating |  | Finance |  | Total
2022 | $ | 488 |  |  | $ | 249 |  |  | $ | 737 |
2023 | 312 |  |  | 249 |  |  | 561 |
2024 | 281 |  |  | 249 |  |  | 530 |
2025 | 210 |  |  | 249 |  |  | 459 |
2026 | 134 |  |  | 229 |  |  | 363 |
Thereafter | 1,192 |  |  | — |  |  | 1,192 |
Total lease payments | 2,617 |  |  | 1,225 |  |  | 3,842 |
Less: Imputed interest | (481) |  |  | (92) |  |  | (573) |
Present value of lease liabilities | $ | 2,136 |  |  | $ | 1,133 |  |  | $ | 3,269 |
In addition to operating and finance 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 and $51,000 in fiscal years 2022 and 2023, respectively. Total lease expense for fiscal year 2019 was $733,000, which was included in agribusiness costs and expenses in the Company’s consolidated statements of operations.

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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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