LEASES

12 Months Ended

Jan. 31, 2020

Disclosure Text Block [Abstract]

Leases of Lessee Disclosure [Text Block]

7. 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) the 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 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, 2020, 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 exercise of any lease renewal is at the Company’s sole discretion. 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 year 2019, the components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

Operating lease expense	$	6,526
Variable lease expense		556
Total lease expense	$	7,082

The following table is a summary of future minimum rentals on such leases at January 31, 2020 (amounts in thousands):

Years Ended January 31,		Minimum Rentals
	2021	$	5,668
	2022		4,958
	2023		3,251
	2024		2,085
	2025		1,228
	Thereafter		29
	Total		17,219
	Less:  present value discount		1,596
	Operating lease liabilities	$	15,623

At January 31, 2020, the weighted average remaining lease term is 3.5 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 railcars and other equipment. At January 31, 2019, future minimum annual rentals on such leases were as follows (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