Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property, Plant and Equipment

v3.19.2
Note 7 - Property, Plant and Equipment
6 Months Ended
Apr. 30, 2019
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]
Note
7.
Property, Plant and Equipment
 
The significant components of property, plant and equipment at
April 30, 2019
for the Successor and at
October 31, 2018
for the Predecessor are comprised of the following:
 
   
Successor
   
Predecessor
 
   
April 30
,
   
October 31,
 
(in thousands)
 
2019
   
2018
 
Land, building and improvements
  $
21,098
    $
22,244
 
Capital leases—land and buildings
   
828
     
909
 
Machinery and equipment
   
229,205
     
237,094
 
Transportation equipment
   
1,162
     
3,297
 
Furniture and office equipment
   
702
     
1,486
 
     
252,995
     
265,030
 
Less accumulated depreciation
   
(8,131
)
   
(63,115
)
Property, plant and equipment, net
  $
244,864
    $
201,915
 
 
Depreciation expense for the Successor for the
three
-month period ended
April 30, 2019
and the period from
December 6, 2018
to
April 30, 2019
was
$5.2
million and
$8.7
million, respectively. Depreciation expense for the Predecessor from
November 1, 2018
to
December 5, 2018
and for the
three
and
six
-month periods ended
April 30, 2018
was
$2.1
million,
$4.3
million,
$8.3
million, respectively. Depreciation expense related to revenue producing machinery and equipment is recorded in cost of operations and an immaterial amount of depreciation expense related to our capital leases and furniture and fixtures is included in general and administrative expenses. In conjunction with the Business Combination, the basis of all property, plant and equipment was recognized at fair value in purchase accounting and as such, there is a significant decline in the accumulated depreciation balances as of
April 30, 2019
when compared to
October 31, 2018.