Leases

6 Months Ended

Apr. 30, 2020

Leases [Abstract]

Leases

7. Leases

The components of total operating lease expense included in other expenses in the Company’s Consolidated Statements of Income are as follows:

		Three Months Ended		Six Months Ended
		April 30,		April 30,
(in thousands)		2020		2020
Operating lease expense	$	6,207	$	12,504
Variable lease expense		1,475		2,794
Total operating lease expense	$	7,682	$	15,298

Operating lease liabilities primarily relate to office space leases in the U.S. that expire over various terms through 2039. A maturity analysis of undiscounted operating lease payments not yet paid and additional information related to the total amount of operating lease liabilities reported on the Company’s Consolidated Balance Sheet at April 30, 2020 are as follows:

Year Ending October 31,
(in thousands)		Amount
Remainder of 2020	$	13,097
2021		26,729
2022		26,256
2023		25,611
2024		25,584
2025 – thereafter		252,669
Total undiscounted operating lease payments		369,946
Less: Imputed interest to be recognized as operating lease expense		(59,086)
Total operating lease liabilities	$	310,860
Weighted average remaining lease term		14.2 years
Weighted average discount rate		2.4%

On March 16, 2020, the Company exercised an existing option to extend the term of an office space lease for an additional twelve months through October 31, 2021, resulting in an increase in operating lease right-of-use assets and operating lease liabilities of $0.5 million.

The Company utilizes estimated incremental borrowing rates as the discount rate to measure its lease liabilities. Incremental borrowing rates reflect the terms and conditions of each lease arrangement and are estimated at lease inception utilizing readily observable market-based unsecured corporate borrowing

rates (commensurate with the Company’s credit rating on its outstanding senior unsecured public debt) that correspond to the weighted average term of the lease, primarily adjusted for the effects of collateralization.

As of October 31, 2019, the Company’s total future minimum lease commitments by year were as follows:

Year Ending October 31,
(in thousands)		Amount
2020	$	25,239
2021		26,242
2022		26,296
2023		25,642
2024		25,614
2025 – thereafter		252,694
Total	$	381,727