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Leases

9 Months Ended

Oct. 31, 2023

Disclosure Text Block [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 4. Leases

At October 31, 2023, 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 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 Statement of Operations are as follows (amounts in thousands):

		Three Months Ended October 31,								Nine Months Ended October 31,
		2023				2022				2023				2022

Operating lease expense		$	1,499			$	2,060			$	4,691			$	5,661
Variable lease expense			(26)				92				277				757
Total lease expense		$	1,473			$	2,152			$	4,968			$	6,418

The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands):

Years Ended January 31,		Minimum Rentals

Remainder of 2024		$	1,582
2025			5,108
2026			2,955
2027			2,907
2028			2,477
Thereafter			1,154
Total			16,183
Less: present value discount			1,944
Operating lease liabilities		$	14,239

At October 31, 2023, the weighted average remaining lease term is 3.5 years, and the weighted average discount rate is 5.87% for the outstanding leases. At January 31, 2023, the weighted average remaining lease term was 3.7 years, and the weighted average discount rate was 5.51% for the outstanding leases.