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Leases

6 Months Ended

Apr. 30, 2022

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.

11. Leases (continued)

Lessor Arrangements (continued)

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

			Three Months Ended April 30,												Six Months Ended April 30,
			2022						2021						2022						2021
Operating lease revenue			$	1,295					$	1,070					$	2,413					$	2,129
Variable lease revenue			86						73						159						152
Total lease revenue			$	1,381					$	1,143					$	2,572					$	2,281

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 and farming 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 $135,000 and $136,000 for the three months ended April 30, 2022 and 2021, respectively, and $258,000 and $278,000 for the six months ended April 30, 2022 and 2021, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Finance lease costs were $98,000 and zero for the three months ended April 30, 2022 and 2021, respectively, and $156,000 and zero for the six months ended April 30, 2022 and 2021, 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, 2022						October 31, 2021
Assets
Operating lease ROU assets			Other assets						$	2,177					$	2,041
Finance lease assets			Other assets						2,036						1,142
Total lease assets									$	4,213					$	3,183
Liabilities and Stockholders' Equity
Current operating lease liabilities			Accrued liabilities and payables to related parties						$	456					$	488
Current finance lease liabilities			Accrued liabilities						473						249
Non-current operating lease liabilities			Other long-term liabilities						1,757						1,648
Non-current finance lease liabilities			Other long-term liabilities						1,512						884
Total lease liabilities									$	4,198					$	3,269

11. Leases (continued)

Lessee Arrangements (continued)

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

			Three Months Ended April 30,												Six Months Ended April 30,
			2022						2021						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases			$	126					$	121					$	315					$	310
Operating cash outflows from finance leases			$	18					$	—					$	30					$	—
Financing cash outflows from finance leases			$	100					$	—					$	169					$	—
ROU assets obtained in exchange for new operating lease liabilities			$	62					$	—					$	350					$	271
Leased assets obtained in exchange for new finance lease liabilities			$	—					$	—					$	1,020					$	—

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.

11. Leases (continued)

Lessor Arrangements (continued)

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

			Three Months Ended April 30,												Six Months Ended April 30,
			2022						2021						2022						2021
Operating lease revenue			$	1,295					$	1,070					$	2,413					$	2,129
Variable lease revenue			86						73						159						152
Total lease revenue			$	1,381					$	1,143					$	2,572					$	2,281

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 and farming 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 $135,000 and $136,000 for the three months ended April 30, 2022 and 2021, respectively, and $258,000 and $278,000 for the six months ended April 30, 2022 and 2021, respectively, which are primarily included in agribusiness costs and expenses in the Company’s consolidated statements of operations. Finance lease costs were $98,000 and zero for the three months ended April 30, 2022 and 2021, respectively, and $156,000 and zero for the six months ended April 30, 2022 and 2021, 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, 2022						October 31, 2021
Assets
Operating lease ROU assets			Other assets						$	2,177					$	2,041
Finance lease assets			Other assets						2,036						1,142
Total lease assets									$	4,213					$	3,183
Liabilities and Stockholders' Equity
Current operating lease liabilities			Accrued liabilities and payables to related parties						$	456					$	488
Current finance lease liabilities			Accrued liabilities						473						249
Non-current operating lease liabilities			Other long-term liabilities						1,757						1,648
Non-current finance lease liabilities			Other long-term liabilities						1,512						884
Total lease liabilities									$	4,198					$	3,269

11. Leases (continued)

Lessee Arrangements (continued)

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

			Three Months Ended April 30,												Six Months Ended April 30,
			2022						2021						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases			$	126					$	121					$	315					$	310
Operating cash outflows from finance leases			$	18					$	—					$	30					$	—
Financing cash outflows from finance leases			$	100					$	—					$	169					$	—
ROU assets obtained in exchange for new operating lease liabilities			$	62					$	—					$	350					$	271
Leased assets obtained in exchange for new finance lease liabilities			$	—					$	—					$	1,020					$	—

X

- References

No definition available.

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X

- 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

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X

- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: 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

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