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LEASES
 12 Months Ended
Jan. 31, 2022
Disclosure Text Block [Abstract]  
Leases of Lessee Disclosure [Text Block]
7.LEASES

 

The Company used the optional transition method in adopting ASC Topic 842 “Leases” (“ASC 842”), which resulted in applying ASC 842 at the date of adoption (February 1, 2019). Thus, comparative information has not been restated and continues to be reported under accounting standards in effect for those periods.

 

ASC 842 provides for three practical expedients, which the Company elected as a package. Pursuant to this package, the Company did not reassess: i) whether any expired or existing contracts are or contain leases; ii) the lease classification for any expired or existing leases that were previously classified as operating leases; or iii) the initial direct costs for any existing leases.

 

The Company elected the practical expedient, available pursuant to ASC 842, for lessees to include both lease and non-lease components as a single component and account for it as a lease. In general, certain maintenance costs are the responsibility of the Company under its railcar leases. These maintenance costs are a non-lease component which the Company elected to combine with rental payments and account for the total amount as operating lease expense.

At January 31, 2022, the Company has lease agreements, as lessee, for railcars. All the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The exercise of any lease renewal is at the Company’s sole discretion. The lease term for all the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

 

For fiscal years 2021 and 2020, the components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

 

   Fiscal Year 
   2021   2020 
           
Operating lease expense  $6,346   $6,340 
Variable lease expense   1,907    447 
Total lease expense  $8,253   $6,787 

 

The following table is a summary of future minimum rentals on such leases at January 31, 2022 (amounts in thousands):

 

Years Ended January 31,  Minimum Rentals         
             
2023  $5,015         
2024   3,856         
2025   2,408         
2026   235         
2027   171         
Total   11,685         
Less:  present value discount   695         
Operating lease liabilities  $10,990         

At January 31, 2022, the weighted average remaining lease term is 2.5 years and the weighted average discount rate is 4.85% for the above leases.

The following table is a summary of future minimum rentals on such leases at January 31, 2021 (amounts in thousands):

 

Years Ended January 31,  Minimum
Rentals		 
     
2022  $5,397 
2023   3,690 
2024   2,524 
2025   1,648 
2026   49 
Total   13,308 
Less: present value discount   994 
Operating lease liabilities  $12,314 

 

At January 31, 2021, the weighted average remaining lease term is 3.0 years, and the weighted average discount rate is 5.26% for the above leases.