| Operating and Finance Leases [Text Block] |
Note 9. Leases
Lease expense consisted of the following:
| |
Classification on the Consolidated Statements of Operations |
|
Year Ended October 31, |
|
| (in thousands) |
|
|
2022 |
|
| Operating lease expense |
Cost of operations |
|
$ |
5,002 |
|
| Short-term and variable lease expense |
Cost of operations |
|
|
975 |
|
| Finance lease expense: |
|
|
|
|
|
| Amortization of right-of-use assets |
Cost of operations |
|
|
22 |
|
| Interest on lease liability |
Interest expense, net |
|
|
13 |
|
| Total finance lease expense |
|
|
$ |
35 |
|
| Sublease income |
Cost of operations |
|
|
(106 |
) |
| Total lease expense |
|
$ |
5,906 |
|
Supplemental consolidated balance sheet information and other information related to leases:
| (in thousands) |
|
|
October 31, |
|
| Leases |
Classification on the Consolidated Balance Sheet |
|
2022 |
|
| Assets: |
|
|
|
|
|
| Operating lease assets |
Right-of-use operating lease assets |
|
$ |
24,833 |
|
| Finance lease assets |
Property, plant and equipment, net |
|
|
702 |
|
| Total leased assets |
|
|
25,535 |
|
| Current liabilities: |
|
|
|
|
|
| Operating |
Operating lease obligations, current portion |
|
$ |
4,001 |
|
| Finance |
Finance lease obligations, current portion |
|
|
109 |
|
| Noncurrent liabilities: |
|
|
|
|
|
| Operating |
Operating lease obligations, non-current |
|
|
20,984 |
|
| Finance |
Finance lease obligations, non-current |
|
|
169 |
|
| Total leased liabilities |
|
$ |
25,263 |
|
| |
|
|
|
|
| Weighted-average remaining lease term (years) |
|
|
|
|
|
| Operating leases |
|
|
6.9 |
|
| Finance leases |
|
|
2.6 |
|
| Weighted-average discount rate |
|
|
|
|
|
| Operating leases |
|
|
6.0 |
% |
| Finance leases |
|
|
3.7 |
% |
Supplemental consolidated cash flow statement information related to leases:
| |
|
Year Ended October 31, |
|
| (in thousands) |
|
2022 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
4,798 |
|
| Operating cash flows from finance leases |
|
$ |
12 |
|
| Financing cash flows from finance leases |
|
$ |
103 |
|
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease and finance lease liabilities recorded on the Company’s consolidated balance sheet as of October 31, 2022:
| |
|
Future Payments |
|
| (in thousands) |
|
Operating Leases |
|
|
Finance Leases |
|
| 2023 |
|
$ |
5,386 |
|
|
$ |
118 |
|
| 2024 |
|
|
5,094 |
|
|
|
120 |
|
| 2025 |
|
|
4,400 |
|
|
|
54 |
|
| 2026 |
|
|
3,635 |
|
|
|
- |
|
| 2027 |
|
|
3,311 |
|
|
|
- |
|
| Thereafter |
|
|
9,328 |
|
|
|
- |
|
| Total lease payments |
|
$ |
31,154 |
|
|
$ |
292 |
|
| Less: Interest |
|
|
(6,169 |
) |
|
|
(14 |
) |
| Total |
|
$ |
24,985 |
|
|
$ |
278 |
|
| Less: Current portion |
|
|
(4,001 |
) |
|
|
(109 |
) |
| Long-term portion |
|
$ |
20,984 |
|
|
$ |
169 |
|
As of October 31, 2022, we had no material operating or finance leases that had not yet commenced.
Comparative Information from 2021 Form 10-K
The Company adopted ASC 842 using the transition alternative to the modified retrospective approach as of the effective date November 1, 2021, without adjusting the comparative periods and therefore, as required by ASC 842, has included the below comparative information from Note 13 to the consolidated financial statements in its 2021 Form 10-K.
In accordance with ASC 840, the operating lease and capital lease payments included in the table below only include payments for future minimum lease commitments and do not include any renewal periods exercisable at the Company's option. The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease and finance lease liabilities recorded on the Company’s consolidated balance sheet as of October 31, 2021:
| |
|
Future Payments |
|
| (in thousands) |
|
Operating Leases |
|
|
Capital Leases |
|
| 2022 |
|
$ |
3,514 |
|
|
$ |
115 |
|
| 2023 |
|
|
2,202 |
|
|
|
118 |
|
| 2024 |
|
|
1,396 |
|
|
|
120 |
|
| 2025 |
|
|
654 |
|
|
|
61 |
|
| 2026 |
|
|
491 |
|
|
|
- |
|
| Thereafter |
|
|
960 |
|
|
|
- |
|
| Total lease payments |
|
$ |
9,217 |
|
|
$ |
414 |
|
| Less: Interest |
|
|
- |
|
|
|
(33 |
) |
| Total value of minimum lease payments |
|
$ |
9,217 |
|
|
$ |
381 |
|
|