Leases, Codification Topic 842

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Leases of Lessee Disclosure

NOTE 12 LEASES

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 five years, some of which have an option to terminate or extend up to an additional five 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 finance 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 years ended January 31,
	2021		2020
Lease Costs:
Finance Leases
Depreciation of right-of-use assets	$	442	$	413
Interest on lease liabilities	24		21
Total finance lease cost	$	466	$	434
Operating Leases
Operating lease cost	$	2,205	$	1,536
Short-term lease cost	755		446
Total operating lease cost	2,960		1,982
Total finance and operating lease cost	$	3,426	$	2,416

Supplemental balance sheet information related to operating and finance leases include:

	As of January 31,
	2021		2020
Operating Leases
Operating lease right-of-use assets	$	6,850	$	4,275
Current lease liability	$	2,120	$	2,272
Non-current lease liability	5,038		2,370
Total operating lease liabilities	$	7,158	$	4,642
Finance Leases
Property, plant and equipment, at cost	$	1,282	$	881
Accumulated depreciation	(532)		(366)
Property, plant and equipment, net	$	750	$	515
Current lease liability	$	362	$	258
Non-current lease liability	388		257
Total finance lease liabilities	$	750	$	515

Weighted average remaining lease terms and discount rates include:

	As of January 31,
	2021		2020
Weighted Average Remaining Lease Term:
Operating leases	5 years		4 years
Finance leases	2 years		2 years
Weighted Average Discount Rate:
Operating leases	2.7	%	3.5	%
Finance leases	2.9	%	3.5	%

Supplemental unaudited cash flow information related to operating and finance leases include:

	For the years ended January 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,959	$	1,536
Operating cash flows from finance leases	$	24	$	21
Financing cash flows from finance leases	$	441	$	413

Future operating and finance lease obligations that have not yet commenced as of January 31, 2021, were immaterial and excluded from the lease liability schedule below accordingly.

	As of January 31, 2021
	Operating Leases		Finance Leases
Fiscal 2022	$	2,308	$	377
Fiscal 2023	1,592		258
Fiscal 2024	1,252		116
Fiscal 2025	1,050		23
Fiscal 2026	1,065		—
Thereafter	436		—
Total lease payments	7,703		774
Less imputed interest	(545)		(24)
Total lease liabilities	$	7,158	$	750