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Leases, Codification Topic 842
 12 Months Ended
Jan. 31, 2020
Leases [Abstract]  
Leases
NOTE 12LEASES

The Company enters into operating and finance lease contracts related to facilities, vehicles and equipment. Operating leases are primarily related to facilities to support production, R&D, and sales efforts. Finance leases are primarily related to vehicles and equipment to support general business operations. Lease payments are typically fixed and carry lease terms of one to six years, some of which have an option to terminate or extend up to an additional ten years. For purposes of the quantitative disclosures below related to the calculation of operating and finance leases, lease terms predominantly did not include options to terminate or extend, as the Company is reasonably certain it would not exercise the options. Most of the Company's leases do not contain a purchase option, material residual value guarantee, or material restrictive covenants.

The Company is primarily a lessee in all lease arrangements but may become a lessor and lease or sublease certain assets to other entities if not fully utilized. These lessor activities are not material and are not separately disclosed.
To determine whether a contract is or contains a lease, the Company assessed its right to control the use of the identified asset, whether explicitly or implicitly stated, for a period of time while considering all facts and circumstances for each individual arrangement. The Company also has leases with non-lease components which are separately stated within the agreement and not included in the recognition of the right-of use asset and lease liability balances.
The discount rate used to calculate the present value of the lease liabilities is based upon the implied rate within each contract. If the rate is unknown or cannot be determined, the Company uses an incremental borrowing rate, which is determined by the length of the contract, asset class, and the Company's borrowing rates as of the commencement date of the contract.

Components of Company lease costs, including operating, finance, and short-term leases are included in the table below. Depreciation of right-of-use assets, operating lease costs, and short-term lease costs are reported in net income as "Cost of sales," "Research and development expenses," or "Selling, general, and administrative expenses," depending on what business function the asset primarily supports. Interest on lease liabilities are classified as a non-operating expense in "Other income (expense), net" on the Consolidated Statements of Income and Comprehensive Income.
For the Year
Ended
January 31, 2020
Lease Costs:
Finance Leases
     Depreciation of right-of-use assets$413  
     Interest on lease liabilities21  
          Total finance lease cost$434  
Operating Leases
     Operating lease cost$1,536  
     Short-term lease cost
446  
          Total operating lease cost
1,982  
Total finance and operating lease cost$2,416  

Supplemental balance sheet information related to operating and finance leases include:
As of
January 31, 2020
Operating Leases
     Operating lease right-of-use assets$4,275  
     Current lease liability
$2,272  
     Non-current lease liability
2,370  
          Total operating lease liabilities$4,642  
Finance Leases
     Property, plant and equipment, at cost$881  
     Accumulated depreciation(366) 
          Property, plant and equipment, net$515  
     Current lease liability
$258  
     Non-current lease liability
257  
          Total finance lease liabilities
$515  

Weighted average remaining lease terms and discount rates include:
As of
January 31, 2020
Weighted Average Remaining Lease Term:
     Operating leases
4 years
     Finance leases
2 years
Weighted Average Discount Rate:
     Operating leases3.5 %
     Finance leases3.5 %
Supplemental unaudited cash flow information related to operating and finance leases include:
For The Year
Ended
January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$1,536  
     Operating cash flows from finance leases$21  
     Financing cash flows from finance leases$413  

Future operating and finance lease obligations that have not yet commenced as of January 31, 2020, were immaterial and excluded from the lease liability schedule below accordingly.
As of
January 31, 2020
Operating LeasesFinance Leases
Fiscal 2021$2,406  $271  
Fiscal 20221,178  160  
Fiscal 2023444  84  
Fiscal 2024232  21  
Fiscal 2025
134  —  
Thereafter570  —  
     Total lease payments
4,964  536  
          Less imputed interest
(322) (21) 
     Total lease liabilities
$4,642  $515  

Prior to adoption of ASU 2016-02
Prior to the Company's adoption of ASU 2016-02 in the first quarter of fiscal year 2020, future minimum lease payments reported in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019, were as follows:
As of
January 31, 2020
Operating LeasesCapital Leases
Fiscal 2020$2,213  $182  
Fiscal 20211,939  102  
Fiscal 2022728  44  
Fiscal 2023356  2  
Fiscal 2024140  —  
Thereafter—  —  
     Total lease payments
$5,376  330  
          Less amount representing estimated executory costs such as taxes, license and
               insurance including profit thereon
(14) 
          Less amounts representing interest
(32) 
     Present value of net minimum lease payments
$284  

For capital leases, total amortization expense was $200 and $65 in fiscal 2019 and 2018, respectively, while interest expense for capital leases was $39 and $13, respectively.

Under operating leases in fiscal 2019 and 2018, the Company leased certain vehicles, equipment and facilities. Total rent and lease expense was $2,897 and $2,104, respectively.