REDEEMABLE NONCONTROLLING INTERESTS

12 Months Ended

Oct. 31, 2020

Temporary Equity Disclosure [Abstract]

Temporary Equity Redeemable Noncontrolling Interests [Text Block]

REDEEMABLE NONCONTROLLING INTERESTS

    The holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that may be exercised on varying dates causing the Company to purchase their equity interests through fiscal 2030.  The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the “Redemption Amount”) be at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. The Redemption Amounts were determined using probability-adjusted internal estimates of future subsidiary earnings while considering the earliest exercise date, the measurement period and any applicable fair value adjustments. Management's estimate of the aggregate Redemption Amount of all Put Rights that the Company could be required to pay is as follows (in thousands):

	As of October 31,
	2020	2019
Redeemable at fair value	$179,415	$136,611
Redeemable based on a multiple of future earnings	41,793	51,653
Redeemable noncontrolling interests	$221,208	$188,264

    A summary of the Put Rights associated with the redeemable noncontrolling interests in certain of the Company’s subsidiaries as of October 31, 2020 is as follows:

Subsidiary Acquisition Year	Operating Segment	Company Ownership Interest	Earliest Put Right Year	Purchase Period (Years)
2005	ETG	95.9%	2021 (1)	4 (2)
2006	FSG	80.1%	2021 (1)	4
2008	FSG	86.2%	2024	4 (3)
2009	ETG	82.5%	2021 (1)	1
2012	FSG	84.0%	2021 (1)	4
2012	FSG	80.1%	2021 (1)	4
2015	FSG	85.0%	2021	3 (4)
2015	FSG	80.1%	2021 (1)	4
2015	FSG	80.1%	2022	4
2015	ETG	80.1%	2021 (1)	2
2017	FSG	80.1%	2022	2 (5)
2018	ETG	85.0%	2021	1
2019	ETG	92.7%	2023	4
2019	ETG	85.0%	2024	4
2019	FSG	80.1%	2026	4
2019	ETG	75.0%	2024	4 (6)
2020	ETG	80.1%	2025	4
2020	FSG	70.0%	2027	4
2020	ETG	75.0%	2024	4 (6)
2020	ETG	90.0%	2025	4

(1)    Currently puttable.

(2)    A portion is to be purchased in a lump sum.

(3)    Based on the Put Right exercised in fiscal 2020, 3.8% of the noncontrolling interest will be acquired by the Company in fiscal 2021 and the Put Right for the remaining 10% interest may be exercised no earlier than fiscal 2024 to cause the Company to purchase the noncontrolling interest over a four-year period.

(4)    The Put Right for the remaining 15% noncontrolling interest may be exercised in 5% increments annually beginning in fiscal 2021.

(5)     Half of the 19.9% noncontrolling interest will be purchased in the year the Put Right is exercised and the other half will be purchased two years later.

(6)     The exercise of the Put Right for either entity will automatically trigger a Put Right exercise for the other entity.

    The estimated aggregate Redemption Amount of the Put Rights that are currently puttable or becoming puttable during fiscal 2021 is approximately $82.0 million, of which approximately

$50.9 million would be payable in fiscal 2021 should all of the eligible associated noncontrolling interest holders elect to exercise their Put Rights during fiscal 2021. Additionally, the Company has call rights to purchase the equity interests of the noncontrolling holders over the same purchase period as the Put Rights.

During fiscal 2020, the holder of a 20% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2015 exercised their option to cause the Company to purchase one-fourth of their interest. The Company acquired the 5% noncontrolling interest in May 2020, which increased its ownership interest in the subsidiary to approximately 85%.

In May 2020, the Company obtained control of the 22% noncontrolling equity interest in a subsidiary of the ETG that was acquired in fiscal 2012, which increased the Company's ownership interest in the subsidiary to 100%.

During fiscal 2020, the holder of a 17.7% noncontrolling equity interest in a subsidiary of the FSG that was acquired in fiscal 2008 exercised their option to cause the Company to purchase a portion of their noncontrolling interest over a two-year period ending in fiscal 2021. In June 2020, the Company acquired half of such interest, which increased the Company's ownership interest in the subsidiary to 86.2%.

The $7.5 million aggregate Redemption Amount for the redeemable noncontrolling interests acquired in fiscal 2020 was paid using cash provided by operating activities.