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Leases
 9 Months Ended
Oct. 31, 2022
ASU 2016-02 Transition [Abstract]  
Lessee, Operating Lease, Disclosure [Table Text Block]

Note 4. Leases

 

At October 31, 2022, the Company had lease agreements, as lessee, for railcars. All of 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 option renewal is at the Company’s sole discretion. The lease term for all of 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. The components of lease expense, classified as SG&A expenses on the Consolidated Condensed Statement of Operations are as follows (amounts in thousands):

 

  

Three Months Ended

October 31,

  

Nine Months Ended

October 31,

 
   2022   2021   2022   2021 
                 
Operating lease expense  $2,060   $1,690   $5,661   $4,805 
Variable lease expense   92    1,090    757    1,654 
Total lease expense  $2,152   $2,780   $6,418   $6,459 

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

 

Years Ended January 31,Minimum Rentals 
     
Remainder of 2023  $1,392 
2024   5,563 
2025   4,114 
2026   1,942 
2027   1,877 
Thereafter   1,474 
Total   16,362 
Less:  present value discount   1,577 
Operating lease liabilities  $14,785 

 

At October 31, 2022, the weighted average remaining lease term is 3.5 years, and the weighted average discount rate is 5.43% for the above leases. At January 31, 2022, the weighted average remaining lease term was 2.5 years, and the weighted average discount rate was 4.85% for the above leases.