XML 107 R27.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Oct. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

 

Note 20. Commitments and Contingencies

 

Lease Agreements

 

As of October 31, 2019 and 2018, we had capital lease obligations of $0.1 million and $0.3 million, respectively. Lease payment terms are primarily thirty-six months from the date of lease.

 

We also lease certain computer and office equipment and manufacturing facilities in Torrington and Danbury, Connecticut under operating leases expiring on various dates through 2030.  Rent expense was $1.0 million, $1.2 million and $1.6 million for the years ended October 2019, 2018 and 2017, respectively.

 

Non-cancelable minimum payments applicable to operating and capital leases at October 31, 2019 were as follows (in thousands):

 

 

 

Operating

Leases

 

 

Capital

Leases

 

2019

 

$

922

 

 

$

102

 

2020

 

 

1,240

 

 

 

35

 

2021

 

 

1,221

 

 

 

4

 

2022

 

 

1,022

 

 

 

 

2023

 

 

720

 

 

 

 

Thereafter

 

 

8,707

 

 

 

 

Total

 

$

13,832

 

 

$

141

 

 

Service Agreements

Under the provisions of its service agreements, the Company provides services to maintain, monitor, and repair customer power plants to meet minimum operating levels. Under the terms of such service agreements, the particular power plant must meet a minimum operating output during defined periods of the term. If minimum output falls below the contract requirement, the Company may be subject to performance penalties and/or may be required to repair or replace the customer’s fuel cell module(s).

 

Power Purchase Agreements

 

Under the terms of the Company’s PPAs, customers agree to purchase power from the Company’s fuel cell power plants at negotiated rates. Electricity rates are generally a function of the customers’ current and estimated future electricity pricing available from the grid. As owner or lessee of the power plants, the Company is responsible for all operating costs necessary to maintain, monitor and repair the power plants. Under certain agreements, the Company is also responsible for procuring fuel, generally natural gas or biogas, to run the power plants.  In addition, under the terms of some of the PPA agreements, the Company is subject to a performance penalty.

 

Other

 

At October 31, 2019, the Company has unconditional purchase commitments aggregating $34.6 million, for materials, supplies and services in the normal course of business.

 

The Company is involved in legal proceedings, claims and litigation arising out of the ordinary conduct of its business. Although the Company cannot assure the outcome, management presently believes that the result of such legal proceedings, either individually, or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial statements, and no material amounts have been accrued in the Company’s consolidated financial statements with respect to these matters.