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Leases
 3 Months Ended
Oct. 31, 2024
Disclosure Text Block [Abstract]  
Leases of Lessee Disclosure [Text Block]

Note 4. Leases

 

At October 31, 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
October 31,		   Nine Months Ended
October 31,		 
   2024   2023   2024   2023 
                 
Operating lease expense  $2,014   $1,499   $5,384   $4,691 
Variable lease expense   134    (26)    129    277 
Total lease expense  $2,148   $1,473   $5,513   $4,968 

 

The following table is a summary of future minimum rentals on such leases at October 31, 2024 (amounts in thousands):

 

Years Ended January 31,  Minimum
Rentals		 
     
Remainder of 2025  $1,876 
2026   6,789 
2027   6,740 
2028   5,497 
2029   3,207 
Thereafter   1,744 
Total   25,853 
Less:  present value discount   3,235 
Operating lease liabilities  $22,618 

 

At October 31, 2024, the weighted average remaining lease term is 3.8 years, and the weighted average discount rate is 6.57% 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.