Leases

12 Months Ended

Oct. 31, 2021

Leases [Abstract]

Leases

Leases

The Company has operating leases for manufacturing facilities, office space, warehouses, transportation equipment, and miscellaneous real estate and equipment contracts. Finance leases primarily include turkey growing facilities and an aircraft. The Company's lessor portfolio consists primarily of immaterial operating leases of farmland to third parties.

Lease information included in the Consolidated Statements of Financial Position are:

(in thousands)	Location on Consolidated Statements of Financial Position	October 31, 2021		October 25, 2020
Right-of-Use Assets
Operating	Other Assets	$	72,291	$	53,119
Finance	Net Property, Plant, and Equipment	53,433		61,059
Total Right-of-Use Assets		$	125,724	$	114,179
Liabilities
Current
Operating	Accrued Expenses	$	18,331	$	12,025
Finance	Current Maturities of Long-term Debt	8,362		8,308
Noncurrent
Operating	Other Long-term Liabilities	56,779		43,126
Finance	Long-term Debt Less Current Maturities	44,637		52,722
Total Lease Liabilities		$	128,109	$	116,182

Lease expenses are:

	Fiscal Year Ended
(in thousands)	October 31, 2021		October 25, 2020
Operating Lease Cost (1)	$	21,993	$	19,602
Finance Lease Cost
Amortization of Right-of-Use Assets	8,104		7,985
Interest on Lease Liabilities	2,019		2,304
Variable Lease Cost (2)	544,635		424,955
Net Lease Cost	$	576,751	$	454,846

(1) Includes short-term lease costs, which are immaterial.

(2) ASC 842 - Leases requires disclosure of payments related to agreements with an embedded lease that are not otherwise reflected on the balance sheet. The Company's variable lease costs primarily include inventory related expenses, such as materials, labor, and overhead from manufacturing and service agreements that contain embedded leases. Variability of these costs is determined based on usage or output and may vary for other reasons such as changes in material prices.

The weighted-average remaining lease term and discount rate for lease liabilities included in the Consolidated Statements of Financial Position are:

	October 31, 2021		October 25, 2020
Weighted Average Remaining Lease Term
Operating Leases	5.92 years		7.31 years
Finance Leases	7.18 years		8.14 years
Weighted Average Discount Rate
Operating Leases	1.76	%	2.28	%
Finance Leases	3.48	%	3.54	%

Supplemental cash flow and other information related to leases for the fiscal year-end are:

(in thousands)	October 31, 2021		October 25, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows from Operating Leases	$	20,305	$	15,412
Operating Cash Flows from Finance Leases	2,019		2,304
Financing Cash Flows from Finance Leases	8,598		8,189
Right-of-Use Assets obtained in exchange for new operating lease liabilities	31,962		5,210

The maturity of the Company's lease liabilities as of October 31, 2021, are:

(in thousands)	Operating Leases		Finance Leases (1)		Total
2022	$	20,062	$	10,025	$	30,088
2023	17,334		9,827		27,161
2024	12,548		9,688		22,236
2025	9,557		8,134		17,690
2026	5,856		5,652		11,508
2027 and beyond	16,516		15,540		32,056
Total Lease Payments	$	81,872	$	58,867	$	140,738
Less: Imputed Interest	6,762		5,868		12,630
Present Value of Lease Liabilities	$	75,110	$	52,999	$	128,109

(1) Over the life of the lease contracts, finance lease payments include $8.7 million related to purchase options which are reasonably certain of being exercised.

Prior to the adoption of ASC 842 on October 28, 2019, rent expense under operating leases was $23.1 million in fiscal year 2019.

Leases

Leases

The Company has operating leases for manufacturing facilities, office space, warehouses, transportation equipment, and miscellaneous real estate and equipment contracts. Finance leases primarily include turkey growing facilities and an aircraft. The Company's lessor portfolio consists primarily of immaterial operating leases of farmland to third parties.

Lease information included in the Consolidated Statements of Financial Position are:

(in thousands)	Location on Consolidated Statements of Financial Position	October 31, 2021		October 25, 2020
Right-of-Use Assets
Operating	Other Assets	$	72,291	$	53,119
Finance	Net Property, Plant, and Equipment	53,433		61,059
Total Right-of-Use Assets		$	125,724	$	114,179
Liabilities
Current
Operating	Accrued Expenses	$	18,331	$	12,025
Finance	Current Maturities of Long-term Debt	8,362		8,308
Noncurrent
Operating	Other Long-term Liabilities	56,779		43,126
Finance	Long-term Debt Less Current Maturities	44,637		52,722
Total Lease Liabilities		$	128,109	$	116,182

Lease expenses are:

	Fiscal Year Ended
(in thousands)	October 31, 2021		October 25, 2020
Operating Lease Cost (1)	$	21,993	$	19,602
Finance Lease Cost
Amortization of Right-of-Use Assets	8,104		7,985
Interest on Lease Liabilities	2,019		2,304
Variable Lease Cost (2)	544,635		424,955
Net Lease Cost	$	576,751	$	454,846

(1) Includes short-term lease costs, which are immaterial.

(2) ASC 842 - Leases requires disclosure of payments related to agreements with an embedded lease that are not otherwise reflected on the balance sheet. The Company's variable lease costs primarily include inventory related expenses, such as materials, labor, and overhead from manufacturing and service agreements that contain embedded leases. Variability of these costs is determined based on usage or output and may vary for other reasons such as changes in material prices.

The weighted-average remaining lease term and discount rate for lease liabilities included in the Consolidated Statements of Financial Position are:

	October 31, 2021		October 25, 2020
Weighted Average Remaining Lease Term
Operating Leases	5.92 years		7.31 years
Finance Leases	7.18 years		8.14 years
Weighted Average Discount Rate
Operating Leases	1.76	%	2.28	%
Finance Leases	3.48	%	3.54	%

Supplemental cash flow and other information related to leases for the fiscal year-end are:

(in thousands)	October 31, 2021		October 25, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows from Operating Leases	$	20,305	$	15,412
Operating Cash Flows from Finance Leases	2,019		2,304
Financing Cash Flows from Finance Leases	8,598		8,189
Right-of-Use Assets obtained in exchange for new operating lease liabilities	31,962		5,210

The maturity of the Company's lease liabilities as of October 31, 2021, are:

(in thousands)	Operating Leases		Finance Leases (1)		Total
2022	$	20,062	$	10,025	$	30,088
2023	17,334		9,827		27,161
2024	12,548		9,688		22,236
2025	9,557		8,134		17,690
2026	5,856		5,652		11,508
2027 and beyond	16,516		15,540		32,056
Total Lease Payments	$	81,872	$	58,867	$	140,738
Less: Imputed Interest	6,762		5,868		12,630
Present Value of Lease Liabilities	$	75,110	$	52,999	$	128,109

(1) Over the life of the lease contracts, finance lease payments include $8.7 million related to purchase options which are reasonably certain of being exercised.

Prior to the adoption of ASC 842 on October 28, 2019, rent expense under operating leases was $23.1 million in fiscal year 2019.

Leases

Leases

The Company has operating leases for manufacturing facilities, office space, warehouses, transportation equipment, and miscellaneous real estate and equipment contracts. Finance leases primarily include turkey growing facilities and an aircraft. The Company's lessor portfolio consists primarily of immaterial operating leases of farmland to third parties.

Lease information included in the Consolidated Statements of Financial Position are:

(in thousands)	Location on Consolidated Statements of Financial Position	October 31, 2021		October 25, 2020
Right-of-Use Assets
Operating	Other Assets	$	72,291	$	53,119
Finance	Net Property, Plant, and Equipment	53,433		61,059
Total Right-of-Use Assets		$	125,724	$	114,179
Liabilities
Current
Operating	Accrued Expenses	$	18,331	$	12,025
Finance	Current Maturities of Long-term Debt	8,362		8,308
Noncurrent
Operating	Other Long-term Liabilities	56,779		43,126
Finance	Long-term Debt Less Current Maturities	44,637		52,722
Total Lease Liabilities		$	128,109	$	116,182

Lease expenses are:

	Fiscal Year Ended
(in thousands)	October 31, 2021		October 25, 2020
Operating Lease Cost (1)	$	21,993	$	19,602
Finance Lease Cost
Amortization of Right-of-Use Assets	8,104		7,985
Interest on Lease Liabilities	2,019		2,304
Variable Lease Cost (2)	544,635		424,955
Net Lease Cost	$	576,751	$	454,846

(1) Includes short-term lease costs, which are immaterial.

(2) ASC 842 - Leases requires disclosure of payments related to agreements with an embedded lease that are not otherwise reflected on the balance sheet. The Company's variable lease costs primarily include inventory related expenses, such as materials, labor, and overhead from manufacturing and service agreements that contain embedded leases. Variability of these costs is determined based on usage or output and may vary for other reasons such as changes in material prices.

The weighted-average remaining lease term and discount rate for lease liabilities included in the Consolidated Statements of Financial Position are:

	October 31, 2021		October 25, 2020
Weighted Average Remaining Lease Term
Operating Leases	5.92 years		7.31 years
Finance Leases	7.18 years		8.14 years
Weighted Average Discount Rate
Operating Leases	1.76	%	2.28	%
Finance Leases	3.48	%	3.54	%

Supplemental cash flow and other information related to leases for the fiscal year-end are:

(in thousands)	October 31, 2021		October 25, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows from Operating Leases	$	20,305	$	15,412
Operating Cash Flows from Finance Leases	2,019		2,304
Financing Cash Flows from Finance Leases	8,598		8,189
Right-of-Use Assets obtained in exchange for new operating lease liabilities	31,962		5,210

The maturity of the Company's lease liabilities as of October 31, 2021, are:

(in thousands)	Operating Leases		Finance Leases (1)		Total
2022	$	20,062	$	10,025	$	30,088
2023	17,334		9,827		27,161
2024	12,548		9,688		22,236
2025	9,557		8,134		17,690
2026	5,856		5,652		11,508
2027 and beyond	16,516		15,540		32,056
Total Lease Payments	$	81,872	$	58,867	$	140,738
Less: Imputed Interest	6,762		5,868		12,630
Present Value of Lease Liabilities	$	75,110	$	52,999	$	128,109

(1) Over the life of the lease contracts, finance lease payments include $8.7 million related to purchase options which are reasonably certain of being exercised.

Prior to the adoption of ASC 842 on October 28, 2019, rent expense under operating leases was $23.1 million in fiscal year 2019.