Leases (Tables)

9 Months Ended

Jul. 31, 2020

Leases [Abstract]

Supplemental Balance Sheet Information

The components of lease assets and liabilities and their classification on our unaudited Consolidated Balance Sheets as of July 31, 2020 were as follows:

		Balance at
(in millions)	Classification	July 31, 2020
Lease assets
Operating leases	Right-of-use assets	$	156.6
Finance leases	Property, plant and equipment, net(1)	6.8
Total lease assets		$	163.4
Lease liabilities
Current liabilities
Operating leases	Current portion of lease liabilities	$	37.2
Finance leases	Other accrued liabilities	4.1
Noncurrent liabilities
Operating leases	Long-term lease liabilities	141.1
Finance leases	Other noncurrent liabilities	1.8
Total lease liabilities		$	184.2

(1) Finance lease assets are recorded net of accumulated amortization of $13.9 million as of July 31, 2020.

The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities:

	As of
	July 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.2
Weighted-average discount rate
Operating leases	4.11	%
Finance leases	4.50	%

Lease, Cost

The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows:

	Three Months Ended		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Operating lease costs:
Operating expenses(1)(2)	$	14.8	$	52.9
Selling, general and administrative expenses(3)	6.2		19.3
Finance lease costs:
Operating expenses(4)	1.2		3.3
Interest expense(5)	0.1		0.4
Total lease costs	$	22.3	$	75.9

⁽¹⁾ Related to certain parking arrangements.

⁽²⁾ Includes short-term lease costs and variable lease costs.

⁽³⁾ Includes short-term lease costs.

⁽⁴⁾ Represents amortization of leased assets.

⁽⁵⁾ Interest on lease liabilities.

The following table presents information on short-term and variable lease costs:

	Three Months Ended		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Short-term lease costs	$	9.5	$	35.9
Variable lease costs	—		3.0
Total short-term and variable lease costs	$	9.5	$	38.9

The following table includes supplemental cash and non-cash information related to operating leases:

	Nine Months Ended
(in millions)	July 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	34.5
Operating cash flows from finance leases	0.4
Financing cash flows from finance leases	2.7
Lease assets obtained in exchange for new operating lease liabilities(1)	15.4

(1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842.

Maturities of Operating Lease Liabilities

The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of July 31, 2020 are as follows:

(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

Future sublease rental income was excluded for the periods shown above as the amounts are immaterial.

As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows:

(in millions)	Operating and Other(1)		Capital		Total
Fiscal 2020	$	42.8	$	3.1	$	45.9
Fiscal 2021	35.5		2.5		38.0
Fiscal 2022	30.3		1.3		31.6
Fiscal 2023	25.6		0.6		26.2
Fiscal 2024	20.5		—		20.5
Thereafter	51.8		—		51.8
Total(2)	$	206.5	$	7.5	$	214.0

⁽¹⁾ Includes total estimated sublease rental income of $15.8 million.

(2) Total undiscounted future minimum payments.

Maturities of Finance Lease Liabilities

The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of July 31, 2020 are as follows:

(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

Future sublease rental income was excluded for the periods shown above as the amounts are immaterial.

As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows:

(in millions)	Operating and Other(1)		Capital		Total
Fiscal 2020	$	42.8	$	3.1	$	45.9
Fiscal 2021	35.5		2.5		38.0
Fiscal 2022	30.3		1.3		31.6
Fiscal 2023	25.6		0.6		26.2
Fiscal 2024	20.5		—		20.5
Thereafter	51.8		—		51.8
Total(2)	$	206.5	$	7.5	$	214.0

⁽¹⁾ Includes total estimated sublease rental income of $15.8 million.

(2) Total undiscounted future minimum payments.