Leases

3 Months Ended

Jan. 31, 2020

The Company leases office space, manufacturing space, computer equipment and other equipment under non-cancellable lease arrangements. Additionally, some of the Company's real estate lease payments vary based on changes in the Consumer Price Index ("CPI"). These specific lease liabilities are not remeasured as a result of changes to the CPI and are recognized in the period in which the obligation for those payments was incurred.

The Company's lease arrangements have lease terms that expire between the years 2020 and 2036. The Company has options to extend the terms of certain leases into future periods and for the options the Company is reasonably certain to exercise, the payments associated with these renewal periods have been included in the measurement of the lease liabilities and ROU assets. The Company's debt covenant requirements do not have any restrictions in terms of leasing arrangements on the Company or place any other restrictions on the Company.

Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statement of Operations. The components of lease expense for the three months ended January 31, 2020 are as follows:



Lease cost	Three months ended January 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	93
Interest on lease liability	11
Total finance lease cost	$	104
Operating lease expense
Operating leases	$	3,332
Short-term leases ⁽¹⁾	192
Total lease expense	$	3,524

^{(1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month.}

The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows:



	Three months ended January 31, 2020
Weighted average remaining lease term of operating leases (in years)	16.7

Weighted average discount rate of operating leases	5.19%

Weighted average remaining lease term of finance leases (in years)	0.58

Weighted average discount rate of finance leases	4.57%

Other supplemental cash flow information related to leases is as follows:



Other Information	Three months ended January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	93
Operating cash outflows from operating leases	2,197
Financing cash outflows from finance leases	11

Maturities of operating and finance lease liabilities as of January 31, 2020 are as follows:



Years Ending October 31,
2020⁽¹⁾	$	9,385
2021	10,240
2022	8,198
2023	6,571
2024	4,750
Thereafter	40,391
Total lease payments	79,535
Less: imputed interest	25,352
Total lease liabilities ⁽²⁾	$	54,183

^{(1) Excluding the three months ended}^{January 31, 2020}^.

^{(2) Operating lease payments include}^$18,778^{related to options to extend lease terms that are reasonably certain of being exercised.}

The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows:



Year Ending October 31,
2020	$	12,040
2021	8,960
2022	5,102
2023	3,816
2024	2,717
Thereafter	10,513
Total	$	43,148

Leases



Lease cost	Three months ended January 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	93
Interest on lease liability	11
Total finance lease cost	$	104
Operating lease expense
Operating leases	$	3,332
Short-term leases ⁽¹⁾	192
Total lease expense	$	3,524

^{(1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month.}

The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows:



	Three months ended January 31, 2020
Weighted average remaining lease term of operating leases (in years)	16.7

Weighted average discount rate of operating leases	5.19%

Weighted average remaining lease term of finance leases (in years)	0.58

Weighted average discount rate of finance leases	4.57%

Other supplemental cash flow information related to leases is as follows:



Other Information	Three months ended January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	93
Operating cash outflows from operating leases	2,197
Financing cash outflows from finance leases	11

Maturities of operating and finance lease liabilities as of January 31, 2020 are as follows:



Years Ending October 31,
2020⁽¹⁾	$	9,385
2021	10,240
2022	8,198
2023	6,571
2024	4,750
Thereafter	40,391
Total lease payments	79,535
Less: imputed interest	25,352
Total lease liabilities ⁽²⁾	$	54,183

^{(1) Excluding the three months ended}^{January 31, 2020}^.

^{(2) Operating lease payments include}^$18,778^{related to options to extend lease terms that are reasonably certain of being exercised.}

The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows:



Year Ending October 31,
2020	$	12,040
2021	8,960
2022	5,102
2023	3,816
2024	2,717
Thereafter	10,513
Total	$	43,148

Leases



Lease cost	Three months ended January 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	93
Interest on lease liability	11
Total finance lease cost	$	104
Operating lease expense
Operating leases	$	3,332
Short-term leases ⁽¹⁾	192
Total lease expense	$	3,524

^{(1) Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond a month.}

The weighted average remaining operating and finance lease terms and weighted average discount rates are as follows:



	Three months ended January 31, 2020
Weighted average remaining lease term of operating leases (in years)	16.7

Weighted average discount rate of operating leases	5.19%

Weighted average remaining lease term of finance leases (in years)	0.58

Weighted average discount rate of finance leases	4.57%

Other supplemental cash flow information related to leases is as follows:



Other Information	Three months ended January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	93
Operating cash outflows from operating leases	2,197
Financing cash outflows from finance leases	11

Maturities of operating and finance lease liabilities as of January 31, 2020 are as follows:



Years Ending October 31,
2020⁽¹⁾	$	9,385
2021	10,240
2022	8,198
2023	6,571
2024	4,750
Thereafter	40,391
Total lease payments	79,535
Less: imputed interest	25,352
Total lease liabilities ⁽²⁾	$	54,183

^{(1) Excluding the three months ended}^{January 31, 2020}^.

^{(2) Operating lease payments include}^$18,778^{related to options to extend lease terms that are reasonably certain of being exercised.}

The aggregate amount of future minimum annual rental payments applicable to non-cancelable leases as of October 31, 2019 were as follows:



Year Ending October 31,
2020	$	12,040
2021	8,960
2022	5,102
2023	3,816
2024	2,717
Thereafter	10,513
Total	$	43,148