COMMITMENTS

12 Months Ended

Jan. 31, 2025

COMMITMENTS

COMMITMENTS

NOTE 9 – COMMITMENTS

Leases

The Company’s leases are primarily operating leases that cover office space, expiring on various dates through December 2031, and certain equipment used by the Company in the performance of its construction services contracts. Some of these equipment leases may be embedded in broader agreements with subcontractors or construction equipment suppliers. The Company has no material finance leases. None of the operating leases includes significant amounts for incentives, rent holidays or price escalations.

At January 31, 2025 and 2024, right-of-use assets were $5.3 million. Operating lease expense amounts are recorded on a straight-line basis over the expected lease terms. Operating lease expense amounts for Fiscal 2025, Fiscal 2024 and Fiscal 2023 were $3.8 million, $1.9 million and $2.6 million, respectively.

The following is a schedule of future minimum lease payments for the operating leases that were recognized in the consolidated balance sheet as of January 31, 2025:

	Operating Lease
Years ending January 31,	Commitments
2026	$	2,905
2027		963
2028		496
2029		495
2030		399
Thereafter		520
Total lease payments		5,778
Less imputed interest		480
Present value of lease payments		5,298
Less current portion (included in accrued expenses)		2,710
Noncurrent portion (included in noncurrent liabilities)	$	2,588

The following table presents summary information for the Company’s lease terms and discount rates for its operating leases at January 31, 2025 and 2024:

	2025			2024
Weighted average remaining lease term		40 months			41 months
Weighted average discount rate		5.0	%		5.2	%

The Company also uses equipment and occupies other facilities under short-term rental agreements. Rent expense amounts incurred under short-term rentals were $17.0 million, $9.5 million and $11.3 million for Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Most of these amounts relate to the rental of construction equipment and temporary facilities and, as such, are included in cost of revenues in the accompanying consolidated statements of earnings.

Performance Bonds and Guarantees

In the normal course of business and for certain major projects, the Company may be required to obtain surety or performance bonding, to cause the issuance of letters of credit, or to provide parent company guarantees (or some combination thereof) in order to provide performance assurances to clients on behalf of its contractor subsidiaries. As these subsidiaries are wholly owned, any actual liability is ordinarily reflected in the financial statement account balances determined pursuant to the Company’s accounting for contracts with customers. When sufficient information about claims on guaranteed or bonded projects would be available and monetary damages or other costs or losses would be determined to be probable, the Company would record such losses.

As of January 31, 2025, the estimated amount of the Company’s unsatisfied bonded performance obligations, covering all of its subsidiaries, was approximately $0.7 billion. As of January 31, 2025, the outstanding amount of bonds covering other risks, including warranty obligations and contract payment retentions related to completed activities, was $25.2 million. Not all of the Company’s projects require bonding.

Employee Benefit Plans

The Company maintains 401(k) savings plans pursuant to which the Company makes discretionary contributions for the eligible and participating employees. The Company’s expense amounts related to these defined contribution plans were approximately $3.4 million, $2.9 million and $2.7 million for Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The Company also maintains nonqualified plans whereunder the payments of certain amounts of incentive compensation earned by key employees are deferred for periods of four to seven years; payments are conditioned on continuous employment.