The Company leases certain real estate properties, vehicles and equipment in various countries around the world. Leased properties are typically used for retail space, office, warehouse and distribution.

The Company evaluates contractual arrangements at inception to determine if individual agreements are a lease or contain an identifiable lease component. When evaluating contracts to determine appropriate classification and recognition, significant judgment may be necessary to determine, among other criteria, if an embedded leasing arrangement exists, the length of the term, classification as either an operating or financing lease and whether renewal or termination options are reasonably certain to be exercised. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term calculated using the Company’s incremental borrowing rate, adjusted for the lease term and lease country, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and are reduced by lease incentives. The Company’s leases are classified as operating leases with remaining terms of 1 to 10 years, some of which include an option to extend or renew. If the exercise of an option to extend or renew is determined to be reasonably certain, the associated right-of-use asset and liability reflects the extended period of payments.

Lease expense for operating leases consist of both fixed and variable components. Expenses related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components such as maintenance and other services provided by the lessor and other charges included in the lease. The variable portion of lease payments is not included in the Company’s lease liabilities. Short-term leases are leases having a term of 12 months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

As a result of the COVID-19 pandemic, the Company received lease concessions during fiscal 2021 from landlords in the form of rent deferrals and rent forgiveness. The Company chose the policy election provided by the FASB in April 2020 to record rent concessions as if no modifications to lease contracts were made, and thus no changes to the ROU assets and ROU liabilities were recorded for these concessions. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company received rent forgiveness of $1.1 million for fiscal year 2021.

The components of lease expense were as follows (in thousands):


Lease Expense	Consolidated Statements of Operation Location	For the Year Ended January 31, 2022		For the Year Ended January 31, 2021		For the Year Ended January 31, 2020
Operating lease expense	SG&A	$	18,856	$	18,533	$	19,301
Short-term lease cost	SG&A		412		601		736
Variable lease cost	SG&A		10,839		9,051		9,229
Total operating lease expense		$	30,107	$	28,185	$	29,266
Finance lease cost:
Amortization of right-of-use assets	SG&A	$	117	$	117	$	117
Interest on lease liabilities	Interest expense	$	4	$	9	$	13

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):


Leases	Consolidated Balance Sheets Location	January 31, 2022		January 31, 2021
Assets
Operating	Operating lease right-of-use assets	$	68,599	$	76,070
Finance	Other non-current assets	$	49	$	166

Liabilities
Current:
Operating	Current operating lease liabilities	$	13,693	$	15,861
Finance	Accrued liabilities	$	49	$	121
Noncurrent:
Operating	Non-current operating lease liabilities	$	62,730	$	68,412
Finance	Other non-current liabilities	$	-	$	49

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:


Lease Term and Discount Rate	January 31, 2022			January 31, 2021			January 31, 2020
Weighted-average remaining lease term - in years
Operating leases		6.2			6.5			7.4
Finance leases		0.4			1.4			2.4
Weighted-average discount rate:
Operating leases		3.90	%		3.78	%		3.71	%
Finance leases		3.86	%		3.86	%		3.86	%

Future minimum lease payments by year as of January 31, 2022 were as follows (in thousands):


Fiscal Year	Operating Leases			Finance Leases
2023	$	16,374		$	49
2024		15,634			-
2025		13,189			-
2026		10,192			-
2027		9,767			-
Thereafter		21,344			-
Total lease payments	$	86,500		$	49
Less: Interest		(10,077	)		-
Total lease obligations	$	76,423		$	49

Supplemental cash flow information related to leases was as follows (in thousands):


	Year Ended January 31, 2022		Year Ended January 31, 2021		Year Ended January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19,130	$	19,080	$	17,637
Operating cash flows from finance leases		4		9		13
Financing cash flows from finance leases		121		116		112
Leased assets obtained in exchange for new operating lease liabilities		8,519		2,940		9,863
Leased assets obtained in exchange for new financing lease liabilities		—		—		399

As of January 31, 2022, the Company did not have any material operating or finance leases that have been signed but not commenced.