LEASES

The Company leases certain office space, office equipment and autos with remaining lease terms from

one

month to

eleven

years under leases classified as operating or finance. The Company has options to terminate some of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that QAD will

not

exercise the early termination option. For certain leases, the Company has options to extend the lease term for additional periods ranging from

one

year to

ten

years.

Supplemental balance sheet information related to leases was as follows (in thousands):

	January 31, 2020

Assets
Operating	$	18,154
Finance		175
Total lease assets, net	$	18,329

Liabilities
Current
Operating	$	4,307
Finance		64
Noncurrent
Operating		14,524
Finance		88
Total lease liabilities	$	18,983

The components of lease costs were as follows (in thousands):

	Twelve Months Ended
	January 31, 2020

Operating lease cost	$	5,963
Finance lease cost		58
Variable lease cost		1,447
Short-term lease cost		229
Net lease cost	$	7,697

Lease term and discount rate were as follows:

	January 31, 2020

Weighted-average remaining lease term (in years)
All leases		5.9
Weighted-average discount rate
All leases		5.79	%

Supplemental disclosures of cash flow information related to leases were as follows (in thousands):

	Twelve Months Ended
	January 31, 2020

Cash flows related to lease liabilities
Operating cash flows related to operating leases	$	(6,077	) )
Financing cash flows related to finance leases		(47	)
Total cash flows related to lease liabilities	$	(6,124	)

Non-cash items
Leased assets obtained in exchange for new operating lease liabilities	$	10,419
Leased assets obtained in exchange for new finance lease liabilities		222
Total non-cash items	$	10,641

Maturities of lease liabilities were as follows as of

January 31, 2020 (

in millions):

Within 1 year	$	5.2
2 years		4.0
3 years		3.2
4 years		2.6
5 years		2.2
Thereafter		5.5
Total lease payments	$	22.7
Less: Imputed interest		(3.7	)
Present value of lease liabilities	$	19.0

As of

January 31, 2019

future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic

840,

under non-cancelable operating leases for the following

five

fiscal years and thereafter were as follows (in millions):

2020	$	5.6
2021		4.6
2022		2.8
2023		1.8
2024		1.5
Thereafter		2.8
Total	$	19.1

The Company is a lessor for certain office space owned by the Company and leased to others under non-cancelable leases with initial terms ranging from

three

months to

one

year. These lease agreements provide for a fixed base rent and automatically renew for periods from

three

months to

one

year unless terminated. All of the Company’s leased office space are considered operating leases. There are

rights to purchase the premises and

residual value guarantees. For the fiscal year

2020,

the Company received

$1.0

million of lease income from company-owned locations.