Note 11 - Leases

12 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

11. LEASES

The Company leases certain office space, office equipment and autos with remaining lease terms from two months to ten years under leases classified as operating or finance. The Company has options to terminate some of its leases early. The lease term represents the period up to the early termination date unless it is reasonably certain that QAD will not exercise the early termination option. For certain leases, the Company has options to extend the lease term for additional periods ranging from one year to ten years.

Supplemental balance sheet information related to leases was as follows:

	January 31,
	2021		2020
	(in thousands)
Assets
Operating	$	20,689	$	18,154
Finance		327		175
Total lease assets, net	$	21,016	$	18,329
Liabilities
Current
Operating	$	4,784	$	4,307
Finance		120		64
Noncurrent
Operating		17,310		14,524
Finance		200		88
Total lease liabilities	$	22,414	$	18,983

The components of lease costs were as follows:

	January 31,
	2021		2020
	(in thousands)
Operating lease cost	$	5,881	$	5,963
Finance lease cost		145		58
Variable lease cost		1,362		1,447
Short-term lease cost		141		229
Total lease cost	$	7,529	$	7,697

 Lease term and discount rate (all leases) were as follows:  

	January 31,
	2021			2020
Weighted-average remaining lease term (in years)		5.5			5.9
Weighted-average discount rate		4.84	%		5.79	%

Supplemental disclosures of cash flow information related to leases were as follows:

	January 31,
	2021			2020
	(in thousands)
Cash flows related to lease liabilities
Operating cash flows related to operating lease liabilities	$	(5,378	)	$	(6,077	)
Financing cash flows related to finance lease liabilities		(119	)		(47	)
Total cash flows related to lease liabilities	$	(5,497	)	$	(6,124	)
Non-cash items
Leased assets obtained in exchange for new operating lease liabilities	$	6,570		$	10,419
Leased assets obtained in exchange for new finance lease liabilities		290			222
Total non-cash items	$	6,860		$	10,641

Maturities of lease liabilities were as follows as of January 31, 2020 and 2021 (in millions):

Within 1 year	$	5.9		$	5.2
2 years		5.3			4.0
3 years		4.3			3.2
4 years		3.2			2.6
5 years		2.6			2.2
Thereafter		4.5			5.5
Total lease payments	$	25.8		$	22.7
Less: Imputed interest		(3.4	)		(3.7	)
Present value of lease liabilities	$	22.4		$	19.0

The Company is a lessor for certain office space owned by the Company and leased to others under non-cancelable leases with initial terms ranging from one month to six months. These lease agreements provide for a fixed base rent and automatically renew for periods from one month to six months unless terminated. All of the Company’s leased office space are considered operating leases. There are no rights to purchase the premises and no residual value guarantees. For the fiscal year 2021, the Company received $0.3 million of lease income from company-owned locations.