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LEASES
 12 Months Ended
Jan. 31, 2025
Disclosure Text Block [Abstract]  
Leases of Lessee Disclosure [Text Block]
7.LEASES

 

The Company elected the practical expedient, available pursuant to ASC 842, Leases, 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, 2025, 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 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 2024, 2023, and 2022, the components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

 

   Fiscal Year 
   2024   2023   2022 
                
Operating lease expense  $7,209   $6,386   $7,360 
Variable lease expense   143    301    399 
Total lease expense  $7,352   $6,687   $7,759 

 

Total cash paid for amounts included in the measurement of lease liabilities was $6.9 million for fiscal year 2024.

The following table is a summary of future minimum rentals on such leases at January 31, 2025 (amounts in thousands):

 

Years Ended January 31,Minimum Rentals 
                         
2026  $6,789 
2027   6,740 
2028   5,497 
2029   3,207 
Thereafter   1,744 
Total   23,977 
Less: present value discount   2,864 
Operating lease liabilities  $21,113 

 

At January 31, 2025, the weighted average remaining lease term was 3.5 years, and the weighted average discount rate was 6.60% for the above 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 above leases.