LEASES |
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| LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES |
Operating Leases
At January 31, 2026, 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 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 years 2025, 2024,and 2023, the components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):
Total cash paid for amounts included in the measurement of lease liabilities was $7.8 million and $6.9 million for fiscal years 2025 and 2024, respectively. The following table is a summary of future minimum rentals on such leases at January 31, 2026 (amounts in thousands):
At January 31, 2026, the weighted average remaining lease term was 2.7 years, and the weighted average discount rate was 6.61% for the outstanding leases.
At January 31, 2025, the weighted average remaining lease term was 3.5 years, and the weighted average discount rate was 6.60% for the outstanding leases.
Finance Lease
At January 31, 2026, the Company has one lease agreement that was classified as a finance lease for an electrical substation facility. Prepayments totaling $15.6 million were made prior to fiscal year 2025 and were recorded within “Other assets” on the accompanying Consolidated Balance Sheets as of January 31, 2025. This balance was included in the finance lease right-of-use asset calculation upon lease commencement in fiscal year 2026 as a non-cash investing activity. The lease includes monthly payments of approximately $39,000 to be made over the term of the lease. The lease term for this lease includes the noncancelable period of the lease and any periods for which only the Company has the option to cancel but is reasonably expected to continue the lease. Based on this, the lease term was determined to be 10 years. Control of the facility’s output was transferred to the Company just before the end of the first quarter of 2025, with monthly lease expense commencing in the second quarter of 2025. For the year ended January 31, 2026, expense related to this lease was approximately $1.6 million, which includes approximately $171,000 in interest expense.
The weighted average remaining lease term for the finance lease is 9.3 years as of January 31, 2026. A discount rate of 6.9% was deemed appropriate as an incremental borrowing rate for a 10-year term.
The following table is a summary of future minimum rentals on the lease at January 31, 2026 (amounts in thousands):
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