NOTE 11 - LEASES

The following table provides information on operating and finance leases included in the Company’s consolidated balance sheets.
Classification
 
October 31,
2025
   
October 31,
2024
 
             
ROU Assets – Operating Leases
           
Other assets
 
$
5,976
   
$
5,010
 
                 
ROU Assets – Finance Leases
               
Property, plant and equipment, net
 
$
1
   
$
32,293
 
                 
Lease Liabilities – Operating Leases
               
Accrued liabilities
 
$
1,975
   
$
1,925
 
Other liabilities
   
3,960
     
3,037
 
   
$
5,935
   
$
4,962
 
                 
Lease Liabilities – Finance Leases
               
Current portion of long-term debt
 
$
11
   
$
17,972
 
Long-term debt
   
13
     
25
 
   
$
24
   
$
17,997
 

The following table presents future lease payments under noncancelable operating and finance leases as of October 31, 2025. Imputed interest represents the difference between undiscounted cash flows and discounted cash flows.

Fiscal Year
 
Operating
Leases
   
Finance
Leases
 
             
2026
 
$
2,109
     
12
 
2027
   
1,686
     
12
 
2028
   
532
     
1
 
2029
   
216
     
-
 
2030 and thereafter
   
2,088
     
-
 
Total lease payments
 
$
6,631
     
25
 
Imputed interest
   
(696
)
   
(1
)
Lease liabilities
 
$
5,935
     
24
 
The following table presents lease costs for 2025, 2024, and 2023.

   
Year Ended
 
   
October 31,
   
October 31,
   
October 31,
 
 
2025
   
2024
   
2023
 
Operating lease costs
 
$
2,348
   
$
2,255
   
$
2,278
 
Short-term lease costs
 
$
1,280
   
$
1,273
   
$
462
 
Variable lease costs
 
$
599
   
$
595
   
$
656
 
Interest on finance lease
 
$
2
   
$
330
   
$
426
 
Amortization of ROU assets
 
$
19
   
$
2,950
   
$
2,870
 

The following table presents statistical information related to the Company’s operating and finance leases. The information presented is as of the balance sheet dates.

   
October 31, 2025
   
October 31, 2024
 
Classification
 
Weighted-
average
remaining
lease term (in
years)
   
Weighted-
average discount
rate
   
Weighted-
average
remaining
lease term (in
years)
   
Weighted-
average
discount rate
 
Operating leases
   
8.1
     
3.1
%
   
2.8
     
3.2
%
Finance leases
   
2.1
     
5.9
%
   
0.2
     
1.5
%

The following table presents the effects of leases on the Company’s 2025, 2024, and 2023 consolidated statements of cash flows, and provides leases-related non-cash information for those years.

   
Year Ended
 
   
October 31,
   
October 31,
   
October 31,
 
 
2025
   
2024
   
2023
 
Operating cash flows used for operating leases
 
$
2,341
   
$
2,241
   
$
2,271
 
Operating cash flows used for finance leases
 
$
2
   
$
330
   
$
429
 
Financing cash flows used for finance leases
 
$
11
   
$
6,621
   
$
6,521
 
ROU assets obtained in exchange for operating lease obligations
 
$
2,824
   
$
842
   
$
5,116
 

Historical Timeline

Fiscal YearFiled
2025Dec 17, 2025Showing above
2024Dec 19, 2024
2023Dec 26, 2023
2022Dec 23, 2022
2021Dec 17, 2021
2020Jan 15, 2021
2017Dec 20, 2017
2016Jan 6, 2017
2015Jan 7, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.