Leases

12 Months Ended

Oct. 31, 2020

Leases [Abstract]

Leases

LEASES

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

		Balance at
(in millions)	Classification	October 31, 2020
Lease assets
Operating leases	Right-of-use assets	$	143.1
Finance leases	Property, plant and equipment, net(1)	6.1
Total lease assets		$	149.2
Lease liabilities
Current liabilities
Operating leases	Current portion of lease liabilities	$	35.0
Finance leases	Other accrued liabilities	2.3
Noncurrent liabilities
Operating leases	Long-term lease liabilities	131.4
Finance leases	Other noncurrent liabilities	2.8
Total lease liabilities		$	171.4

(1) Finance lease assets are recorded net of accumulated amortization of $13.6 million as of October 31, 2020.

Total lease costs for the year ended October 31, 2020 were $100.4 million, including operating leases of $96.4 million and finance leases of $4.0 million. The components of lease costs and classification within the Consolidated Statements of Comprehensive (Loss) Income were as follows:

(in millions)	Year Ended October 31, 2020
Operating lease costs:
Operating expenses(1)(2)	$	67.9
Selling, general and administrative expenses(3)	28.5
Finance lease costs:
Operating expenses(4)	3.5
Interest expense(5)	0.5
Total lease costs	$	100.4

(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:

(in millions)	Year Ended October 31, 2020
Short-term lease costs	$	47.0
Variable lease costs	3.5
Total short-term and variable lease costs	$	50.5

Sublease income generated during the year ended October 31, 2020 was immaterial. We continue to monitor the impact of the Pandemic on our subleases; however, we do not expect a significant impact.

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 Consolidated Balance Sheets as of October 31, 2020 are as follows:

(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Fiscal 2021	$	41.3	$	3.3	$	44.6
Fiscal 2022	34.3		1.7		36.0
Fiscal 2023	29.2		0.9		30.1
Fiscal 2024	24.1		—		24.1
Fiscal 2025	18.2		—		18.2
Thereafter	43.3		—		43.3
Total lease payments	190.4		5.9		196.3
Less: imputed interest	24.0		0.8		24.9
Present value of lease liabilities	$	166.4	$	5.1	$	171.4

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

We have entered into operating lease arrangements as of October 31, 2020 that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial.

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
	October 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.0
Weighted-average discount rate
Operating leases	4.14	%
Finance leases	4.55	%

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

(in millions)	Year Ended October 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	44.8
Operating cash flows from finance leases	0.5
Financing cash flows from finance leases	3.4
Lease assets obtained in exchange for new operating lease liabilities(1)	15.7

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

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.

Leases

LEASES

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

		Balance at
(in millions)	Classification	October 31, 2020
Lease assets
Operating leases	Right-of-use assets	$	143.1
Finance leases	Property, plant and equipment, net(1)	6.1
Total lease assets		$	149.2
Lease liabilities
Current liabilities
Operating leases	Current portion of lease liabilities	$	35.0
Finance leases	Other accrued liabilities	2.3
Noncurrent liabilities
Operating leases	Long-term lease liabilities	131.4
Finance leases	Other noncurrent liabilities	2.8
Total lease liabilities		$	171.4

(1) Finance lease assets are recorded net of accumulated amortization of $13.6 million as of October 31, 2020.

Total lease costs for the year ended October 31, 2020 were $100.4 million, including operating leases of $96.4 million and finance leases of $4.0 million. The components of lease costs and classification within the Consolidated Statements of Comprehensive (Loss) Income were as follows:

(in millions)	Year Ended October 31, 2020
Operating lease costs:
Operating expenses(1)(2)	$	67.9
Selling, general and administrative expenses(3)	28.5
Finance lease costs:
Operating expenses(4)	3.5
Interest expense(5)	0.5
Total lease costs	$	100.4

(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:

(in millions)	Year Ended October 31, 2020
Short-term lease costs	$	47.0
Variable lease costs	3.5
Total short-term and variable lease costs	$	50.5

Sublease income generated during the year ended October 31, 2020 was immaterial. We continue to monitor the impact of the Pandemic on our subleases; however, we do not expect a significant impact.

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 Consolidated Balance Sheets as of October 31, 2020 are as follows:

(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Fiscal 2021	$	41.3	$	3.3	$	44.6
Fiscal 2022	34.3		1.7		36.0
Fiscal 2023	29.2		0.9		30.1
Fiscal 2024	24.1		—		24.1
Fiscal 2025	18.2		—		18.2
Thereafter	43.3		—		43.3
Total lease payments	190.4		5.9		196.3
Less: imputed interest	24.0		0.8		24.9
Present value of lease liabilities	$	166.4	$	5.1	$	171.4

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

We have entered into operating lease arrangements as of October 31, 2020 that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial.

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
	October 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.0
Weighted-average discount rate
Operating leases	4.14	%
Finance leases	4.55	%

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

(in millions)	Year Ended October 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	44.8
Operating cash flows from finance leases	0.5
Financing cash flows from finance leases	3.4
Lease assets obtained in exchange for new operating lease liabilities(1)	15.7

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

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.