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Leases
 3 Months Ended
Apr. 30, 2024
Disclosure Text Block [Abstract]  
Leases of Lessee Disclosure [Text Block]

Note 4. Leases

 

At April 30, 2024, 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
April 30,
   2024   2023 
         
Operating lease expense  $1,682   $1,761 
Variable lease expense   54    242 
Total lease expense  $1,736   $2,003 

 

The following table is a summary of future minimum rentals on such leases at April 30, 2024 (amounts in thousands):

 

Years Ended January 31,  Minimum
Rentals		 
      
Remainder of 2025  $3,623 
2026   2,984 
2027   2,935 
2028   2,506 
2029   1,178 
Total   13,226 
Less:  present value discount   1,773 
Operating lease liabilities  $11,453 

 

At April 30, 2024, the weighted average remaining lease term is 3.4 years, and the weighted average discount rate is 6.03% for the outstanding leases. At January 31, 2024, the weighted average remaining lease term was 3.4 years, and the weighted average discount rate was 5.94% for the outstanding leases.