XML 30 R19.htm IDEA: XBRL DOCUMENT

Leases

3 Months Ended

Jan. 31, 2022

Note 12. Leases

The Company enters into operating and finance lease agreements for the use of real estate, vehicles, information technology equipment, and certain other equipment. We determine if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Operating leases are included in Operating lease right-of-use assets, net, Operating lease liabilities, and Long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. Finance leases are not considered significant to the Company’s Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Loss.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the present value of the Company’s obligation to make lease payments arising from the lease over the lease term at the commencement date of the lease. As most of the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate based on the information available in determining the present value of lease payments and used the implicit rate when readily determinable. The Company determined incremental borrowing rates through market sources for secured borrowings including relevant industry rates. The Company’s operating lease ROU assets also include any lease pre-payments and exclude lease incentives. Certain of the Company’s leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. The Company excludes variable payments from lease ROU assets and lease liabilities, to the extent not considered in-substance fixed, and instead, expenses variable payments as incurred. Variable lease expense and lease expense for short term contracts are not material components of lease expense. The Company’s leases generally have remaining lease terms of 1 to 26 years, some of which include options to extend leases. The exercise of lease renewal options is at the Company’s sole discretion and the Company’s lease ROU assets and liabilities reflect only the options the Company is reasonably certain that it will exercise. The Company does not have leases with residual value guarantees or similar covenants.

Operating lease expense for each of the three months ended January 31, 2022 and 2021 was $0.4 million. As of January 31, 2022, the weighted average remaining lease term (in years) was approximately 20 years and the weighted average discount rate was 8.2%. Lease payments made during the three months ended January 31, 2022 and 2021 were $0.4 million and $0.3 million, respectively.

Undiscounted maturities of operating lease and finance lease liabilities are as follows:


	Operating Leases		Finance Leases
Due Year 1	$	1,515	$	53
Due Year 2		1,002		49
Due Year 3		854		—
Due Year 4		774		—
Due Year 5		779		—
Thereafter		13,998		—
Total undiscounted lease payments		18,922		102
Less imputed interest		(10,088)		(11)
Total discounted lease payments	$	8,834	$	91