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LEASES

12 Months Ended

Oct. 31, 2023

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


		As of October 31,
(in millions)	Classification	2023		2022
Lease assets
Operating leases	Right-of-use assets	$	113.4	$	115.2
Finance leases	Property, plant and equipment, net(1)	15.2		10.0
Total lease assets		$	128.6	$	125.2

Lease liabilities
Current liabilities
Operating leases	Current portion of lease liabilities	$	32.5	$	30.3
Finance leases	Other accrued liabilities	3.1		2.8
Noncurrent liabilities
Operating leases	Long-term lease liabilities	98.8		104.5
Finance leases	Other noncurrent liabilities	11.1		6.4
Total lease liabilities		$	145.5	$	144.1

(1) Finance lease assets are recorded net of accumulated amortization of $18.9 million and $16.9 million as of October 31, 2023 and October 31, 2022, respectively.

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


	Years Ended October 31,
(in millions)	2023		2022
Operating lease costs:
Operating expenses(1)(2)	$	70.6	$	60.2
Selling, general and administrative expenses(3)	25.4		25.7
Finance lease costs:
Operating expenses(4)	2.4		1.7

Interest expense(5)	0.5		0.4
Total lease costs	$	99.0	$	88.1

(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:


	Years Ended October 31,
(in millions)	2023		2022
Short-term lease costs	$	53.5	$	43.3
Variable lease costs	6.4		6.0
Total short-term and variable lease costs	$	59.9	$	49.3

Sublease income generated during the year ended October 31, 2023, was immaterial.

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, 2023, are as follows:


(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Fiscal 2024	$	38.5	$	3.8	$	42.2
Fiscal 2025	27.9		3.8		31.7
Fiscal 2026	25.8		3.0		28.8
Fiscal 2027	19.4		1.4		20.8
Fiscal 2028	13.2		1.4		14.6
Thereafter	27.4		2.6		29.9
Total lease payments	152.1		15.9		168.0
Less: imputed interest	20.8		1.7		22.5
Present value of lease liabilities	$	131.3	$	14.2	$	145.5

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, 2023, 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:


	Years Ended October 31,
	2023		2022
Weighted-average remaining lease term (years)
Operating leases	5.5		5.7
Finance leases	5.2		3.5
Weighted-average discount rate
Operating leases	4.60	%	4.09	%
Finance leases	5.28	%	3.82	%

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


	Years Ended October 31,
(in millions)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	37.9	$	35.3
Operating cash flows from finance leases	0.5		0.4
Financing cash flows from finance leases	3.0		1.9
Lease assets obtained in exchange for new operating lease liabilities	28.7		23.1

LEASES