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Leases
 12 Months Ended
Oct. 31, 2025
Leases [Abstract]  
Leases Note 10 — Leases
We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate ("IBR") based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data.
We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant and equipment – net on the Consolidated Balance Sheets with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2025, we had no material leases that had yet to commence.
Additional lease information is summarized below for the twelve months ended October 31:
October 31, 2025October 31, 2024
Finance LeasesOperating LeasesFinance LeasesOperating Leases
Amortization of right of use assets$6,239 $5,978 
Interest541 505 
Lease cost (1)
6,780 $18,858 6,483 $20,133 
Short-term and variable lease cost (1)
2,409 4,268 3,019 2,908 
Total lease cost$9,189 $23,126 $9,502 $23,041 

(1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income.
Supplemental cash flow information is summarized below for the twelve months ended October 31, 2025:
Finance LeasesOperating Leases
Cash outflows for leases$5,868$19,501
New leases entered into during the year7,8532,014
Weighted average remaining lease term (years)2.777.35
Weighted average discount rate3.36%2.28%
The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2025. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year:Finance LeasesOperating Leases
2026$6,260 $18,882 
20274,775 15,318 
20282,753 11,922 
2029965 10,234 
2030164 7,685 
Later years— 24,879 
Total minimum lease payments14,917 88,920 
Amounts representing interest666 7,067 
Present value of minimum lease payments$14,251 $81,853 
Capitalized net finance leases included in property, plant and equipment during the fiscal years ended October 31, 2025 and October 31, 2024 was $13,493 and $16,364, respectively.
Leases Note 10 — Leases
We review new contracts to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, we have recognized those amounts as part of the right-of-use assets and lease liabilities. We combine lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, we use an incremental borrowing rate ("IBR") based on information available at the lease commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. We calculate the IBR based on a bond yield curve which considers secured borrowing rates based on our credit rating and current economic environment, as well as other publicly available data.
We lease certain manufacturing facilities, warehouse space, machinery and equipment, and vehicles. We often have options to renew lease terms for buildings and other assets. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments occur. Variable payments for leases primarily relate to future rates or amounts, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement commences. Finance lease assets are recorded in Property, plant and equipment – net on the Consolidated Balance Sheets with related amortization recorded in depreciation expense on the Consolidated Statement of Cash Flows. As of October 31, 2025, we had no material leases that had yet to commence.
Additional lease information is summarized below for the twelve months ended October 31:
October 31, 2025October 31, 2024
Finance LeasesOperating LeasesFinance LeasesOperating Leases
Amortization of right of use assets$6,239 $5,978 
Interest541 505 
Lease cost (1)
6,780 $18,858 6,483 $20,133 
Short-term and variable lease cost (1)
2,409 4,268 3,019 2,908 
Total lease cost$9,189 $23,126 $9,502 $23,041 

(1) Lease costs are recorded in both Cost of sales and Selling and administrative expenses on the Consolidated Statements of Income.
Supplemental cash flow information is summarized below for the twelve months ended October 31, 2025:
Finance LeasesOperating Leases
Cash outflows for leases$5,868$19,501
New leases entered into during the year7,8532,014
Weighted average remaining lease term (years)2.777.35
Weighted average discount rate3.36%2.28%
The following table reconciles the undiscounted cash flows for five years and thereafter to the operating and finance lease liabilities recognized on the Consolidated Balance Sheet as of October 31, 2025. The reconciliation excludes short-term leases that are not recognized on the Consolidated Balance Sheet.
Year:Finance LeasesOperating Leases
2026$6,260 $18,882 
20274,775 15,318 
20282,753 11,922 
2029965 10,234 
2030164 7,685 
Later years— 24,879 
Total minimum lease payments14,917 88,920 
Amounts representing interest666 7,067 
Present value of minimum lease payments$14,251 $81,853 
Capitalized net finance leases included in property, plant and equipment during the fiscal years ended October 31, 2025 and October 31, 2024 was $13,493 and $16,364, respectively.