Leases

The Company leases seismic equipment to customers under operating leases with non-cancelable terms of one year or less. These leases are generally renewable on a month-to-month basis. All taxes (other than income taxes) and assessments are the contractual responsibility of the lessee. To the extent that foreign taxes are not paid by the lessee, the relevant foreign taxing authorities might seek to collect such taxes from the Company. Under the terms of its lease agreements, any amounts paid by the Company to such foreign taxing authorities may be billed and collected from the lessee. The Company is not aware of any foreign tax obligations as of January 31, 2019 and 2018 that are not reflected in the accompanying consolidated financial statements.

The Company leases seismic equipment, as well as other equipment from others under operating leases. Lease expense incurred by the Company in connection with such leases amounted to approximately $1.9 million, $774,000 and $552,000 for the fiscal years ended January 31, 2019, 2018 and 2017, respectively.

The Company leases its office and warehouse facilities in Canada, Australia, Singapore, United Kingdom, Hungary, Colombia and Malaysia under operating leases. Office rental expense for the fiscal years ended January 31, 2019, 2018 and 2017 was approximately $1.3 million, $1.2 million and $1.2 million, respectively. During August 2018, the Company completed its sale of our Russian entity MSE. Accordingly, there was approximately eight months of office and warehouse facility lease expense during fiscal 2019. Although we have classified our SAP business as held for sale, minimum lease payments pertinent to that entity for subsequent years were included in the table below.

Aggregate minimum lease payments for non-cancelable operating leases are as follows (in thousands):



For fiscal years ending January 31:
2020	$	1,457
2021	844
2022	299
2023	122
2024	10

Effective February 1, 2019 we will adopt the provisions of ASU No. 2016-02, Leases (Topic 842), which will require us to recognize on the balance sheet the assets and liabilities for the rights and obligations created by our leases. See Note 2 - “New Accounting Pronouncements” of this form 10-K for more details.