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Leases
 12 Months Ended
Oct. 31, 2024
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 18 years with various renewal terms available. All of the residential rentals have month-to-month lease terms.
Leases (continued)
Lessor Arrangements (continued)
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):
20242023
Land and land improvements$12,219 $12,333 
Buildings, equipment and building improvements20,671 20,729 
Orchards8,410 8,410 
Less: accumulated depreciation(9,765)(8,931)
Property, plant and equipment, net under operating leases$31,535 $32,541 
Depreciation expense for assets under operating leases was approximately $962,000 and $1,005,000 for fiscal years 2024 and 2023, respectively.
The Company's rental operations revenue consists of the following for the fiscal years ended October 31 (in thousands):
20242023
Operating lease revenue$5,255 $5,174 
Variable lease revenue325 346 
Total lease revenue$5,580 $5,520 
The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2024 are as follows (in thousands):
2025$1,245 
2026316 
2027160 
2028104 
202949 
Thereafter641 
Total$2,515 
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, packinghouse facilities, equipment and vehicles with remaining lease terms ranging from one to four years, with various term extensions available. 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. Lease costs are primarily included in agribusiness costs and expenses in the Company's consolidated statements of operations.
13. Leases (continued)
Lessee Arrangements (continued)
Lease costs consist of the following for the fiscal years ended October 31 (in thousands):
20242023
Operating lease costs$2,050 $2,000 
Finance lease costs:
Amortization of lease assets223 145 
Interest on lease liabilities43 32 
Variable lease costs319 — 
Short-term lease costs208 600 
Total lease costs$2,843 $2,777 
Supplemental balance sheet information related to leases consists of the following as of October 31 (in thousands):
Classification20242023
Assets
Operating lease ROU assetsOther assets$2,416 $3,484 
Finance lease assetsOther assets772 1,182 
$3,188 $4,666 
Liabilities
Current operating lease liabilitiesAccrued liabilities$2,075 $1,831 
Current finance lease liabilitiesAccrued liabilities220 319 
Non-current operating lease liabilitiesOther long-term liabilities400 1,714 
Non-current finance lease liabilitiesOther long-term liabilities418 602 
$3,113 $4,466 
Weighted-average remaining lease term (in years):
Operating leases1.51.6
Finance leases3.33.1
Weighted-average discount rate:
Operating leases6.8 %4.9 %
Finance leases7.1 %4.2 %
Supplemental cash flow information related to leases consists of the following for the fiscal years ended October 31 (in thousands):
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$2,037 $1,931 
Operating cash outflows from finance leases$43 $32 
Financing cash outflows from finance leases$360 $297 
ROU assets obtained in exchange for new operating lease liabilities$766 $138 
Leased assets obtained in exchange for new finance lease liabilities$677 $235 
Write off of ROU asset and operating lease liability$— $(1,206)
Leases (continued)
Future minimum lease payments under non-cancellable leases are as follows (in thousands), which excludes $1,315,000 of operating and finance lease payments for leases that have been signed but not commenced:
OperatingFinanceTotal
2025$2,075 $220 $2,295 
2026371 220 591 
2027138 196 334 
202811 77 88 
20293 — 3 
Total lease payments2,598 713 3,311 
Less: Imputed interest(123)(75)(198)
Present value of lease liabilities$2,475 $638 $3,113 
In addition to operating and finance lease commitments, the Company also has financing transactions which do not meet the definition of a lease, with minimum future payments of $473,000 for fiscal year 2025, $452,000 for fiscal year 2026 and $37,000 for fiscal year 2027.
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 18 years with various renewal terms available. All of the residential rentals have month-to-month lease terms.
Leases (continued)
Lessor Arrangements (continued)
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):
20242023
Land and land improvements$12,219 $12,333 
Buildings, equipment and building improvements20,671 20,729 
Orchards8,410 8,410 
Less: accumulated depreciation(9,765)(8,931)
Property, plant and equipment, net under operating leases$31,535 $32,541 
Depreciation expense for assets under operating leases was approximately $962,000 and $1,005,000 for fiscal years 2024 and 2023, respectively.
The Company's rental operations revenue consists of the following for the fiscal years ended October 31 (in thousands):
20242023
Operating lease revenue$5,255 $5,174 
Variable lease revenue325 346 
Total lease revenue$5,580 $5,520 
The future minimum lease payments to be received by the Company related to these operating lease agreements as of October 31, 2024 are as follows (in thousands):
2025$1,245 
2026316 
2027160 
2028104 
202949 
Thereafter641 
Total$2,515 
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, packinghouse facilities, equipment and vehicles with remaining lease terms ranging from one to four years, with various term extensions available. 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. Lease costs are primarily included in agribusiness costs and expenses in the Company's consolidated statements of operations.
13. Leases (continued)
Lessee Arrangements (continued)
Lease costs consist of the following for the fiscal years ended October 31 (in thousands):
20242023
Operating lease costs$2,050 $2,000 
Finance lease costs:
Amortization of lease assets223 145 
Interest on lease liabilities43 32 
Variable lease costs319 — 
Short-term lease costs208 600 
Total lease costs$2,843 $2,777 
Supplemental balance sheet information related to leases consists of the following as of October 31 (in thousands):
Classification20242023
Assets
Operating lease ROU assetsOther assets$2,416 $3,484 
Finance lease assetsOther assets772 1,182 
$3,188 $4,666 
Liabilities
Current operating lease liabilitiesAccrued liabilities$2,075 $1,831 
Current finance lease liabilitiesAccrued liabilities220 319 
Non-current operating lease liabilitiesOther long-term liabilities400 1,714 
Non-current finance lease liabilitiesOther long-term liabilities418 602 
$3,113 $4,466 
Weighted-average remaining lease term (in years):
Operating leases1.51.6
Finance leases3.33.1
Weighted-average discount rate:
Operating leases6.8 %4.9 %
Finance leases7.1 %4.2 %
Supplemental cash flow information related to leases consists of the following for the fiscal years ended October 31 (in thousands):
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$2,037 $1,931 
Operating cash outflows from finance leases$43 $32 
Financing cash outflows from finance leases$360 $297 
ROU assets obtained in exchange for new operating lease liabilities$766 $138 
Leased assets obtained in exchange for new finance lease liabilities$677 $235 
Write off of ROU asset and operating lease liability$— $(1,206)
Leases (continued)
Future minimum lease payments under non-cancellable leases are as follows (in thousands), which excludes $1,315,000 of operating and finance lease payments for leases that have been signed but not commenced:
OperatingFinanceTotal
2025$2,075 $220 $2,295 
2026371 220 591 
2027138 196 334 
202811 77 88 
20293 — 3 
Total lease payments2,598 713 3,311 
Less: Imputed interest(123)(75)(198)
Present value of lease liabilities$2,475 $638 $3,113 
In addition to operating and finance lease commitments, the Company also has financing transactions which do not meet the definition of a lease, with minimum future payments of $473,000 for fiscal year 2025, $452,000 for fiscal year 2026 and $37,000 for fiscal year 2027.