LEASES

3 Months Ended

Apr. 30, 2019

Disclosure Text Block [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 4. Leases

The Company used the optional transition method in adopting ASC 842 which resulted in applying ASC 842 at the date of adoption (February 1, 2019). Thus, comparative information has not been restated and continues to be reported under accounting standards in effect for those periods.

ASC 842 provides for three practical expedients, which the Company elected as a package. Pursuant to this package, the Company did not reassess: i) whether any expired or existing contracts are or contain leases; ii) the lease classification for any expired or existing leases that were previously classified as operating leases; or iii) initial direct costs for any existing leases.

The Company elected the practical expedient, available pursuant to ASC 842, for lessees to include both lease and non-lease components as a single component and account for them as a lease. In general, certain maintenance costs are the responsibility of the Company related to its railcar leases. This maintenance cost is a non-lease component the Company elected to combine with rental payments and account for the total cost as operating lease expense.

At April 30, 2019, the Company has lease agreements, as lessee, for rail cars. 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 exercise of any lease renewal is at the Company’s sole discretion. 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 selling, general and administrative expenses on the Consolidated Condensed Statement of Operations are as follows:

Three Months Ended April 30, 2019
Operating lease expense	$	1,609
Variable lease expense		193
Total lease expense	$	1,802

The following table is a summary of future minimum rentals on such leases (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2020	$	4,957
2021		5,502
2022		4,793
2023		3,199
2024		2,056
Thereafter		1,250
Total		21,757
Less:  present value discount		2,346
Operating lease liabilities	$	19,411

At April 30, 2019, the weighted average remaining lease term is 4.0 years and the weighted average discount rate is 5.46% for the above leases.

At January 31, 2019, the Company had operating lease agreements (pursuant to ASC 840, “Leases”), as lessee, for rail cars and other equipment. At January 31, 2019, future minimum annual rentals on such leases were as follows leases (amounts in thousands):

Years Ended January 31,	Minimum Rentals
2020	$	6,767
2021		5,487
2022		4,791
2023		3,208
2024		2,041
Thereafter		1,221
Total	$	23,515