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The Company has noncancelable operating leases for facilities, automobiles and equipment expiring at various dates through 2026. As discussed in Note 2, the Company adopted ASC 842 as of February 1, 2019 on a prospective basis using the transition method under ASU 2018-11. In accordance with this method, the Company recognized a right of use asset and an operating lease liability of $1.7 million as of February 1, 2019.
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In the third quarter of fiscal 2020, we terminated lease agreements for certain office space located in the Netherlands and Ireland, which will result in a reduction to our existing lease commitments in the amount of $0.1 million in each of the fiscal years 2021 and 2022.
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The components of lease expense for the fiscal year ended January 31, 2020 are as follows:
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Fiscal Year Ended
January 31, 2020
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(Amounts in thousands)
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Operating lease cost
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$
|
906
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Short term lease cost
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|
|
27
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Total lease cost
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$
|
933
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Supplemental cash flow information related to the Company’s operating leases was as follows:
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Fiscal Year Ended
January 31, 2020
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|
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(Amounts in thousands)
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Cash paid for amounts included in the measurement of lease liabilities
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|
|
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Operating cash flows from operating leases
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$
|
906
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|
|
|
|
|
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Right-of-use assets obtained in exchange for lease obligations
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|
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Operating leases
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$
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5,600
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Supplemental balance sheet information related to the Company’s operating leases was as follows:
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January 31, 2020
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|
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(Amounts in thousands)
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Operating lease right-of-use assets
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$
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4,860
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|
|
|
|
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Current portion, operating lease liabilities
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|
|
722
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Operating lease liabilities, long term
|
|
|
4,348
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Total operating lease liabilities
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$
|
5,070
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|
|
|
|
|
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Weighted average remaining lease term (years)
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|
|
5.0
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Weighted average incremental borrowing rate
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|
|
5.0
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%
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The current portion, operating lease liabilities is included in the balance of accrued expenses at January 31, 2020. Rent payments for continuing operations were approximately $0.9 million for the fiscal year ended January 31, 2020. Future minimum lease payments for operating leases with initial or remaining terms in excess of one year at January 31, 2020 are as follows:
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Payments for
Operating Leases
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For the fiscal years ended January 31,
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(Amounts in thousands)
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2021
|
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$
|
965
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2022
|
|
|
1,052
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2023
|
|
|
1,036
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2024
|
|
|
1,184
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2025
|
|
|
1,201
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Thereafter
|
|
|
59
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Total lease payments
|
|
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5,497
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Less interest
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|
|
427
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Total operating lease liabilities
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$
|
5,070
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The Company’s total lease cost for fiscal 2019 was $1.2 million, and was accounted for under the former guidance of ASC 840, Leases (Topic 840).
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