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Leases

6 Months Ended

Apr. 30, 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 2039. 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 and nine months ended July 31, 2020 are as follows:


Lease cost	Three Months Ended July 31, 2020		Nine Months Ended July 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	99	$	427
Interest on lease liability	11		23
Total finance lease cost	$	110	$	450
Operating lease expense
Operating leases	$	3,032	$	9,465
Short-term leases ⁽¹⁾	276		760
Total lease expense	$	3,308	$	10,225

^{(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:


			July 31, 2020
Weighted average remaining lease term of operating leases (in years)			13.9

Weighted average discount rate of operating leases			6.44%

Weighted average remaining lease term of finance leases (in years)			0.25

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 July 31, 2020		Nine Months Ended July 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	11	$	23
Operating cash outflows from operating leases	1,879		6,118
Financing cash outflows from finance leases	294		495

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


Years Ending October 31,
2020⁽¹⁾	$	2,955
2021	10,422
2022	8,444
2023	6,806
2024	4,934
Thereafter	40,562
Total lease payments	74,123
Less: imputed interest	20,866
Total lease liabilities ⁽²⁾	$	53,257

^{(1) Excluding the nine months ended July 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 July 31, 2020		Nine Months Ended July 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	99	$	427
Interest on lease liability	11		23
Total finance lease cost	$	110	$	450
Operating lease expense
Operating leases	$	3,032	$	9,465
Short-term leases ⁽¹⁾	276		760
Total lease expense	$	3,308	$	10,225

^{(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:


			July 31, 2020
Weighted average remaining lease term of operating leases (in years)			13.9

Weighted average discount rate of operating leases			6.44%

Weighted average remaining lease term of finance leases (in years)			0.25

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 July 31, 2020		Nine Months Ended July 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	11	$	23
Operating cash outflows from operating leases	1,879		6,118
Financing cash outflows from finance leases	294		495

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


Years Ending October 31,
2020⁽¹⁾	$	2,955
2021	10,422
2022	8,444
2023	6,806
2024	4,934
Thereafter	40,562
Total lease payments	74,123
Less: imputed interest	20,866
Total lease liabilities ⁽²⁾	$	53,257

^{(1) Excluding the nine months ended July 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 July 31, 2020		Nine Months Ended July 31, 2020
Finance lease expense
Amortization of right-of-use asset	$	99	$	427
Interest on lease liability	11		23
Total finance lease cost	$	110	$	450
Operating lease expense
Operating leases	$	3,032	$	9,465
Short-term leases ⁽¹⁾	276		760
Total lease expense	$	3,308	$	10,225

^{(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:


			July 31, 2020
Weighted average remaining lease term of operating leases (in years)			13.9

Weighted average discount rate of operating leases			6.44%

Weighted average remaining lease term of finance leases (in years)			0.25

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 July 31, 2020		Nine Months Ended July 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	11	$	23
Operating cash outflows from operating leases	1,879		6,118
Financing cash outflows from finance leases	294		495

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


Years Ending October 31,
2020⁽¹⁾	$	2,955
2021	10,422
2022	8,444
2023	6,806
2024	4,934
Thereafter	40,562
Total lease payments	74,123
Less: imputed interest	20,866
Total lease liabilities ⁽²⁾	$	53,257

^{(1) Excluding the nine months ended July 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