Lakeland Industries (LAKE) 10-Q 9 Dec 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Oct. 31, 2019	Dec. 06, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	LAKELAND INDUSTRIES INC
Entity Central Index Key	0000798081
Current Fiscal Year End Date	--01-31
Entity Filer Category	Accelerated Filer
Is Entity's Reporting Status Current?	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,006,829

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Income Statement [Abstract]
Net sales	$ 27,464	$ 24,009	$ 79,620	$ 73,970
Cost of goods sold	18,166	15,691	52,349	46,995
Gross profit	9,298	8,318	27,271	26,975
Operating expenses	7,464	7,305	23,114	21,898
Operating profit	1,834	1,013	4,157	5,077
Other income (expense), net	(9)	7	(33)	36
Interest expense	(26)	(25)	(98)	(93)
Income before taxes	1,799	995	4,026	5,020
Income tax expense	653	494	1,950	1,634
Net income	$ 1,146	$ 501	$ 2,076	$ 3,386
Net income per common share:
Basic	$ 0.14	$ 0.06	$ 0.26	$ 0.42
Diluted	$ 0.14	$ 0.06	$ 0.26	$ 0.41
Weighted average common shares outstanding:
Basic	8,004,640	8,119,488	8,013,383	8,117,307
Diluted	8,035,929	8,186,130	8,044,159	8,174,560

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,146	$ 501	$ 2,076	$ 3,386
Other comprehensive loss:
Foreign currency translation adjustments	(177)	(235)	(402)	(860)
Comprehensive income	$ 969	$ 266	$ 1,674	$ 2,526

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Current assets
Cash and cash equivalents	$ 9,473	$ 12,831
Accounts receivable, net of allowance for doubtful accounts of $602 and $434 at October 31, 2019 and January 31, 2019, respectively	17,413	16,477
Inventories	47,797	42,365
Prepaid VAT and other taxes	1,316	1,478
Other current assets	2,622	2,319
Total current assets	78,621	75,470
Property and equipment, net	10,233	10,781
Operating leases right-of-use assets	2,482	0
Deferred tax assets	6,600	7,267
Prepaid VAT and other taxes	176	176
Other assets	121	158
Goodwill	871	871
Total assets	99,104	94,723
Current liabilities
Accounts payable	6,246	6,214
Accrued compensation and benefits	1,699	1,137
Other accrued expenses	3,227	2,825
Current maturity of long-term debt	1,194	158
Current portion of operating lease liabilities	254	0
Total current liabilities	12,620	10,334
Long-term portion of debt	0	1,161
Long-term portion of operating lease liabilities	2,243	0
Total noncurrent liabilities	2,243	1,161
Total liabilities	14,863	11,495
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par; authorized 1,500,000 shares (none issued)	0	0
Common stock, $0.01 par; authorized 20,000,000 shares, issued 8,478,118 and 8,475,929; outstanding 8,006,829 and 8,013,840 shares at October 31, 2019 and January 31, 2019, respectively	85	85
Treasury stock, at cost; 471,289 and 462,089 shares at October 31, 2019 and January 31, 2019, respectively	(4,614)	(4,517)
Additional paid-in capital	75,048	75,612
Retained earnings	16,376	14,300
Accumulated other comprehensive loss	(2,654)	(2,252)
Total stockholders' equity	84,241	83,228
Total liabilities and stockholders' equity	$ 99,104	$ 94,723

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 602	$ 434
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Common stock, par value	$ .01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,478,118	8,475,929
Common stock, shares outstanding	8,006,829	8,013,840
Treasury stock, shares	471,289	462,089

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Beginning balance, shares at Jan. 31, 2018	8,472,640	(356,441)
Beginning balance, amount at Jan. 31, 2018	$ 85	$ (3,352)	$ 74,917	$ 12,841	$ (1,651)	$ 82,840
Net income				3,386		3,386
Other comprehensive loss					(860)	(860)
Restricted stock plan, shares	3,289
Restricted stock plan, amount			467			467
Ending balance, shares at Oct. 31, 2018	8,475,929	(356,441)
Ending balance, amount at Oct. 31, 2018	$ 85	$ (3,352)	75,384	16,227	(2,511)	85,833
Beginning balance, shares at Jul. 31, 2018	8,472,640	(356,441)
Beginning balance, amount at Jul. 31, 2018	$ 85	$ (3,352)	75,221	15,726	(2,275)	85,405
Net income				501		501
Other comprehensive loss					(236)	(236)
Restricted stock plan, shares	3,289
Restricted stock plan, amount			163			163
Ending balance, shares at Oct. 31, 2018	8,475,929	(356,441)
Ending balance, amount at Oct. 31, 2018	$ 85	$ (3,352)	75,384	16,227	(2,511)	85,833
Beginning balance, shares at Jan. 31, 2019	8,475,929	(462,089)
Beginning balance, amount at Jan. 31, 2019	$ 85	$ (4,517)	75,612	14,300	(2,252)	83,228
Net income				2,076		2,076
Other comprehensive loss					(402)	(402)
Restricted stock plan, shares	2,189
Restricted stock plan, amount			(559)			(559)
Returned of shares in lieu of payroll tax withholding			(5)			(5)
Treasury stock purchased, inclusive of commissions, shares		(9,200)
Treasury stock purchased, inclusive of commissions, amount		$ (97)				(97)
Ending balance, shares at Oct. 31, 2019	8,478,118	(471,289)
Ending balance, amount at Oct. 31, 2019	$ 85	$ (4,614)	75,048	16,376	(2,654)	84,241
Beginning balance, shares at Jul. 31, 2019	8,475,929	(471,289)
Beginning balance, amount at Jul. 31, 2019	$ 85	$ (4,614)	75,361	15,230	(2,477)	83,585
Net income				1,146		1,146
Other comprehensive loss					(177)	(177)
Restricted stock plan, shares	2,189
Restricted stock plan, amount			(308)			(308)
Returned of shares in lieu of payroll tax withholding			(5)			(5)
Ending balance, shares at Oct. 31, 2019	8,478,118	(471,289)
Ending balance, amount at Oct. 31, 2019	$ 85	$ (4,614)	$ 75,048	$ 16,376	$ (2,654)	$ 84,241

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Cash flows from operating activities:
Net income	$ 2,076	$ 3,386
Adjustments to reconcile net income to net cash used in operating activities
Provision for of doubtful accounts	168	76
Deferred income taxes	667	352
Depreciation and amortization	1,267	642
Stock based and restricted stock compensation	(583)	491
Loss on disposal of property and equipment	(2)	14
Non-cash operating lease expense	797	0
(Increase) decrease in operating assets
Accounts receivable	(1,257)	(2,655)
Inventories	(5,584)	(4,121)
Prepaid VAT and other taxes	162	148
Other current assets	(355)	(1,284)
Increase (decrease) in operating liabilities
Accounts payable	67	1,019
Accrued expenses and other liabilities	517	265
Operating lease liabilities	(783)	0
Net cash used in operating activities	(2,843)	(1,667)
Cash flows used in investing activities:
Purchases of property and equipment	(689)	(2,227)
Cash flows from financing activities:
Loan repayments, short-term	(124)	(207)
Loan borrowings, short-term	0	208
Loan repayments, long-term	0	(118)
UK borrowings (repayments) under line of credit facility, net	491	(11)
Purchase of Treasury Stock under stock repurchase program	(97)	0
Shares returned to pay employee taxes under restricted stock program	(5)	0
Net cash provided by (used in) financing activities	265	(128)
Effect of exchange rate changes on cash and cash equivalents	(91)	(106)
Net decrease in cash and cash equivalents	(3,358)	(4,128)
Cash and cash equivalents at beginning of period	12,831	15,788
Cash and cash equivalents at end of period	9,473	11,660
Supplemental disclosure of cash flow information:
Cash paid for interest	98	93
Cash paid for taxes	1,202	1,326
Noncash investing and financing activities
Leased assets obtained in exchange for operating lease liabilities	$ 3,218	$ 0

Business

Business	9 Months Ended
	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Lakeland Industries, Inc. and Subsidiaries (“Lakeland,” the “Company,” “we,” “our” or “us”), a Delaware corporation organized in April 1986, manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments (consisting of only normal and recurring adjustments) which are, in the opinion of management, necessary to present fairly the unaudited condensed consolidated financial information required herein. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequate to make the information presented not misleading, it is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2019. The results of operations for the three and nine month periods ended October 31, 2019 are not necessarily indicative of the results to be expected for the full year. In this Form 10-Q, (a) “FY means fiscal year; thus for example, FY20 refers to the fiscal year ending January 31, 2020, (b) “Q” refers to quarter; thus, for example, Q3 FY20 refers to the third quarter of the fiscal year ending January 31, 2020, (c) “Balance Sheet” refers to the unaudited condensed consolidated balance sheet and (d) “Statement of Operations” refers to unaudited condensed consolidated statement of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates and Assumptions The preparation of unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that events could occur during the upcoming year that could change such estimates. Accounts Receivable, Net . Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company recognizes losses when information available indicates that it is probable that a receivable has been impaired based on criteria noted below at the date of the unaudited condensed consolidated financial statements, and the amount of the loss can be reasonably estimated. Management considers the following factors when determining the collectability of specific customer accounts: Customer creditworthiness, past transaction history with the customers, current economic industry trends and changes in customer payment terms. Past due balances over 90 days and other less creditworthy accounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Inventories Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost (on a first-in, first-out basis) or estimated net realizable value. Impairment of Long-Lived Assets The Company evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. The Company measures any potential impairment on a projected undiscounted cash flow method. Estimating future cash flows requires the Company’s management to make projections that can differ materially from actual results. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Revenue Recognition Substantially all the Company’s revenue is derived from product sales, which consist of sales of the Company’s personal protective wear products to distributors. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 90 days of the invoice date, and the contracts do not have significant financing components. The Company elected to account for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. Shipping and handling costs associated with outbound freight are included in operating expenses, and for the three months ended October 31, 2019 and 2018 aggregated approximately $0.9 million and $0.6 million and $2.5 million and $2.1 million for the nine months ended October 31, 2019 and 2018, respectively. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. The transaction price includes estimates of variable consideration, related to rebates, allowances, and discounts that are reductions in revenue. All estimates are based on the Company's historical experience, anticipated performance, and the Company's best judgment at the time the estimate is made. Estimates for variable consideration are reassessed each reporting period and are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur upon resolution of uncertainty associated with the variable consideration. All the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as quantity times price per unit. The Company has seven revenue generating reportable geographic segments under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its limited use/disposable protective clothing and secondarily from its sales of reflective clothing, high-end chemical protective suits, firefighting and heat protective apparel, reusable woven garments and gloves and arm guards. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see table below). Net sales by geographic region and by product line are included below: Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by region: USA $ 14.16 $ 11.82 $ 41.47 $ 37.54 Other foreign 0.91 0.72 2.61 2.30 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 0.88 0.77 2.08 2.70 Asia 4.62 4.80 12.49 12.79 Canada 2.60 2.08 7.47 6.38 Latin America 1.91 1.60 6.26 4.91 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by product lines: Disposables $ 12.52 $ 12.74 $ 39.19 $ 40.88 Chemical 5.68 4.74 16.30 12.42 Fire 2.81 1.02 6.64 3.57 Gloves 0.74 0.77 2.33 2.30 Hi-Vis 2.20 1.83 6.04 5.46 Wovens 3.51 2.91 9.12 9.34 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Income Taxes The Company is required to estimate its income taxes in each of the jurisdictions in which it operates as part of preparing the unaudited condensed consolidated financial statements. This involves estimating the actual current tax in addition to assessing temporary differences resulting from differing treatments for tax and financial accounting purposes. These differences, together with net operating loss carryforwards and tax credits, are recorded as deferred tax assets or liabilities on the Company’s unaudited condensed consolidated balance sheet. A judgment must then be made of the likelihood that any deferred tax assets will be recovered from future taxable income. A valuation allowance may be required to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines that it may not be able to realize all or part of its deferred tax asset in the future, or that new estimates indicate that a previously recorded valuation allowance is no longer required, an adjustment to the deferred tax asset is charged or credited to income in the period of such determination. The Company recognizes tax positions that meet a “more likely than not” minimum recognition threshold. If necessary, the Company recognizes interest and penalties associated with tax matters as part of the income tax provision and would include accrued interest and penalties with the related tax liability in the unaudited condensed consolidated balance sheets. The Company does not have any uncertain tax positions at October 31, 2019 or January 31, 2019. Foreign Operations and Foreign Currency Translation The Company maintains manufacturing operations in Mexico, India, Argentina, Vietnam and the People’s Republic of China and can access independent contractors in China, Vietnam, Argentina and Mexico. It also maintains sales and distribution entities located in India, Canada, the U.K., Chile, China, Argentina, Russia, Kazakhstan, Uruguay, Australia, and Mexico. The Company is vulnerable to currency risks in these countries. The functional currency for the United Kingdom subsidiary is the Euro; the trading company in China, the RMB; the Russian operation, the Russian Ruble, and the Kazakhstan operation the Kazakhstan Tenge. All other operations have the US dollar as its functional currency. Pursuant to US GAAP, assets and liabilities of the Company’s foreign operations with functional currencies, other than the US dollar, are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the periods. Translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders’ equity. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign currency transaction gains (losses) included in net income for the three months ended October 31, 2019 and 2018 was approximately $0.0 million and $0.2 million and for the nine months ended October 31, 2019 and 2018 was approximately $0.2 million and $(0.4) million, respectively. Fair Value of Financial Instruments US GAAP defines fair value, provides guidance for measuring fair value and requires certain disclosures utilizing a fair value hierarchy which is categorized into three levels based on the inputs to the valuation techniques used to measure fair value. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect management’s own assumptions. The financial instruments of the Company classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, short-term borrowings, borrowings under revolving credit facility, accounts payable and accrued expenses, are recorded at carrying value, which approximates fair value based on the short-term nature of these instruments. The Company believes that the fair values of its long-term debt approximates its carrying value based on the effective interest rate compared to the current market rate available to the Company. Earnings Per Share Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common shares and common stock equivalents. The diluted earnings per share calculation takes into account unvested restricted shares and the shares that may be issued upon exercise of stock options and warrants, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the fiscal period. Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the accompanying unaudited condensed consolidated financial statements. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on February 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on February 1, 2019 and used the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before February 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elects the ‘package of practical expedients’, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. On adoption, the Company recognized additional operating lease liabilities of approximately $2.8 million with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under the prior leasing standard for existing operating leases. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income,” which allows institutions to elect to reclassify the stranded tax effects from AOCI to retained earnings, limited only to amounts in AOCI that are affected by the tax reform law. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within that reporting period. The Company has adopted this guidance, which had no material impact on its unaudited condensed consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which includes provisions, intended to simplify the test for goodwill impairment. The standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this standard to have a significant impact on its financial position and results of operations. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements.

Inventories

Inventories	9 Months Ended
	Oct. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following (in $000s): October 31, 2019 January 31, 2019 Raw materials $ 17,230 $ 14,986 Work-in-process 441 987 Finished goods $ 30,126 26,392 $ 47,797 $ 42,365

Leases

Leases	9 Months Ended
	Oct. 31, 2019
Leases [Abstract]
Leases	We lease real property, equipment and certain automobiles. The Company made the accounting policy election to account for short-term leases as described herein. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of the Company’s real estate leases are classified as operating leases. Most of our real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term for an additional four to five years. The exercise of lease renewal options is at the Company’s discretion. The Company evaluates renewal options at lease inception and on an ongoing basis, and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants. Leases recorded on the unaudited condensed consolidated balance sheet consist of the following: Leases (000’s) Classification October 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 2,482 Liabilities Current Operating Current portion of operating lease liabilities $ 254 Noncurrent Operating Long-term portion of operating lease liabilities 2,243 Total Lease Obligations $ 2,497 Lease cost The components of lease expense are included on the unaudited condensed consolidated statement of operations as follows (in 000’s): Classification Three Months Ended October 31, 2019 Nine Months Ended October 31, 2019 Operating lease cost Cost of goods sold $ 53 $ 342 Operating expenses $ 269 $ 507 Short-term lease cost $ 444 $ 572 Maturity of Lease Liabilities Maturity of lease liabilities as of October 31, 2019 was as follows (in $000’s): Year ending January 31, Operating Leases (a) Remainder of fiscal year 2020 254 2021 955 2022 802 2023 686 2024 23 Thereafter 81 Total lease payments 2,801 Less: Interest 304 Present value of lease liability $ 2,497 (a) Operating leases payments include $34,000 related to options to extend lease terms that are reasonably certain of being exercised and new leases entered into during the quarter. Weighted-average lease terms and discount rates are as follows: October 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.72 Weighted-average discount rate Operating leases 5.83 % Supplemental cash flow information related to leases for the nine months ended October 31, 2019 were as follows (in 000’s): Cash paid for amounts included in the measurement of lease liabilities; Nine Months Ended October 31, 2019 Operating cash flows from operating leases $ 783 Leased assets obtained in exchange for new operating lease liabilities $ 3,218 Disclosures related to periods prior to adoption of ASU 2016-02 The Company adopted ASU 2016-02 using a modified retrospective adoption method at February 1, 2019 as noted in Note 3. "Recent Accounting Pronouncements." As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of January 31, 2019 that have initial or remaining lease terms in excess of one year are as follows: Leases Total rental costs under all operating leases are summarized as follows (in 000’s): Year ended January 31, Gross rental 2019 $ 1,022 2018 $ 841 Minimum annual rental commitments for the remaining term of the Company’s noncancelable operating leases relating to manufacturing facilities, office space and equipment rentals at January 31, 2019, including lease renewals subsequent to year end, are summarized as follows (in 000’s): Year ending January 31 2020 $ 761 2021 447 2022 435 2023 314 2024 8 and thereafter 9 Total $ 1,974

Long-Term Debt

Long-Term Debt	9 Months Ended
	Oct. 31, 2019
Long-term Debt, Unclassified [Abstract]
Long-term Debt	Revolving Credit Facility On May 10, 2017, the Company entered into a Loan Agreement (the “Loan Agreement”) with SunTrust Bank (“Lender”). The Loan Agreement provides the Company with a secured (i) $20.0 million revolving credit facility, which includes a $5.0 million letter of credit sub-facility, and (ii) $1,575,000 term loan with Lender. The Company may request from time to time an increase in the revolving credit loan commitment of up to $10.0 million (for a total commitment of up to $30.0 million). Borrowing pursuant to the revolving credit facility is subject to a borrowing base amount calculated as (a) 85% of eligible accounts receivable, as defined, plus (b) an inventory formula amount, as defined, minus (c) an amount equal to the greater of (i) $1,500,000 or (ii) 7.5% of the then current revolver commitment amount, minus (d) certain reserves as determined by the Loan Agreement. The credit facility matures on May 10, 2020 (subject to earlier termination upon the occurrence of certain events of default as set forth in the Loan Agreement). Borrowings under the term loan and the revolving credit facility bear interest at an interest rate determined by reference whether the loan is a base rate loan or Eurodollar loan, with the rate election made by the Company at the time of the borrowing or at any time the Company elects pursuant to the terms of the Loan Agreement. The term loan is payable in equal monthly principal installments of $13,125 each, beginning on June 1, 2017, and on the first day of each succeeding month, with a final payment of the remaining principal and interest on May 10, 2020 (subject to earlier termination as provided in the Loan Agreement). For that portion of the term loan that consists of Eurodollar loans, the term loan shall bear interest at the LIBOR Market Index Rate (“LIBOR”) plus 2.0% per annum, and for that portion of the term loan that consists of base rate loans, the term loan shall bear interest at the base rate then in effect plus 1.0% per annum. All principal and unpaid accrued interest under the revolving credit facility shall be due and payable on the maturity date of the revolver. For that portion of the revolver loan that consists of Eurodollar loans, the revolver shall bear interest at LIBOR plus a margin rate of 1.75% per annum for the first nine months and thereafter between 1.5% and 2.0%, depending on the Company’s “availability calculation” (as defined in the Loan Agreement) and, for that portion of the revolver that consists of base rate loans, the revolver shall bear interest at the base rate then in effect plus a margin rate of 0.75% per annum for the first nine months and thereafter between 0.50% and 1.0%, depending on the availability calculation. As of the closing, the Company elected all borrowings under the Loan Agreement to accrue interest at LIBOR which, as of that date, was 0.99500%. As such, the initial rate of interest for the revolver was 2.745% per annum and the initial rate of interest for the term loan was 2.995% per annum. At October 31, 2019, the rate of interest on the revolver was 3.78% per annum and the rate of interest on the term loan was 4.4% per annum. The Loan Agreement provides for payment of an unused line fee of between 0.25% and 0.50%, depending on the amount by which the revolving credit loan commitment exceeds the amount of the revolving credit loans outstanding (including letters of credit), which shall be payable monthly in arrears on the average daily unused portion of the revolver. In connection with the Loan Agreement, the Company entered into a security agreement, dated May 10, 2017, with Lender pursuant to which the Company granted to Lender a first priority perfected security interest in substantially all real and personal property of the Company. The Company agreed to maintain a minimum “fixed charge coverage ratio” (as defined in the Loan Agreement) as of the end of each fiscal quarter, commencing with the fiscal quarter ended October 31, 2017, of not less than 1.10 to 1.00 during the applicable fiscal quarter, and agreed to certain negative covenants that are customary for credit arrangements of this type, including restrictions on the Company’s ability to enter into mergers, acquisitions or other business combination transactions, conduct its business, grant liens, make certain investments, incur additional indebtedness, and make stock repurchases. As of October 31, 2019, the Company had no borrowings outstanding on the letter of credit sub-facility, no borrowings outstanding under the revolving credit facility, and $1.2 million outstanding on the term loan. On June 7, 2019 the Company received a waiver for certain compliance provisions in the Loan Agreement. Pursuant to the waiver, compliance with the “fixed charge coverage ratio” is waived for the fiscal quarters ending April 30, 2019, July 31, 2019 and October 31, 2019 and testing of the “fixed charge coverage ratio” will commence again for the fiscal quarter ending January 31, 2020. Pursuant to the Waiver, the Company has agreed to maintain “Availability” (as defined in the Loan Agreement) of at least $10,000,000 for the period from May 31, 2019 through December 31, 2019. Borrowings in UK On December 31, 2014, the Company and Lakeland Industries Europe, Ltd, (“Lakeland UK”), a wholly owned subsidiary of the Company, amended the terms of its existing line of credit facility with HSBC Bank to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 19, 2016, (ii) an increase in the facility limit from £1,250,000 (approximately USD $1.9 million, based on exchange rates at time of closing) to £1,500,000 (approximately USD $2.3 million, based on exchange rates at time of closing), and (iii) a decrease in the annual interest rate margin from 3.46% to 3.0%. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £400,000 (approximately USD $0.6 million, based on exchange rates at time of closing) of the note payable by the UK subsidiary to the Company shall be subordinated in priority of payment to the subsidiary’s obligations to HSBC under the financing facility. On December 31, 2016, Lakeland UK entered into an extension of the maturity date of its existing facility with HSBC Invoice Finance (UK) Ltd. to December 19, 2017. Other than the extension of the maturity date and a small reduction of the service charge from 0.9% to 0.85%, all other terms of the facility remained the same. On December 4, 2017 the facility was extended to March 30, 2018 for the next review period and, as of March 9, 2019 the facility was extended to mature on March 30, 2020 with no additional changes to the terms. The balance under this loan outstanding at October 31, 2019 and January 31, 2019 was USD $0.5 million and USD $0.0 million, respectively, and is included in other accrued expenses on the accompanying unaudited condensed consolidated balance sheets. The amount of $0.4 million due from HSBC as of January 31, 2019 is included in Other Current Assets on the accompanying unaudited condensed consolidated balance sheet. Below is a table to summarize the debt amounts above (in 000’s): Short-Term Long-term Current Maturity of Long-term October 31, January 31, October 31, January 31, October 31, January 31, 2019 2019 2019 2019 2019 2019 USA $ 1,194 $ ----- $ ----- $ 1,161 $ ----- $ 158 UK $ 494 ----- ----- ----- ----- ----- Totals $ 1,688 $ ----- $ ----- $ 1,161 $ ----- $ 158 Five-year Debt Payout Schedule This schedule reflects the liabilities as of October 31, 2019, and does not reflect any subsequent event (in 000’s): Total 1 Year or less 2 Years 3 Years 4 Years 5 Years After 5 Years Borrowings in USA $ 1,194 $ 1,194 $ ----- $ ----- $ ----- $ ----- $ ----- Borrowing in the UK 494 494 ----- ----- ----- ----- ----- Total $ 1,688 $ 1,688 $ ----- $ ----- $ ----- $ ----- $ -----

Concentration of Risk

Concentration of Risk	9 Months Ended
	Oct. 31, 2019
Risks and Uncertainties [Abstract]
Concentration of Risk	Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, and trade receivables. Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company’s customer base and their dispersion across geographic areas principally within the United States. The Company routinely addresses the financial strength of its customers and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. The Company’s foreign financial depositories are Bank of America; China Construction Bank; Bank of China; China Industrial and Commercial Bank; HSBC (UK); Rural Credit Cooperative of Shandong; Postal Savings Bank of China; Punjab National Bank; HSBC in India, Argentina and UK; Raymond James in Argentina; TD Canada Trust; Banco Itaú S.A., Banco Credito Inversione in Chile; Banco Mercantil Del Norte SA in Mexico; ZAO KB Citibank Moscow in Russia, and JSC Bank Centercredit in Kazakhstan. The Company monitors its financial depositories by their credit rating which varies by country. In addition, cash balances in banks in the United States of America are insured by the Federal Deposit Insurance Corporation subject to certain limitations. There is approximately $1.3 million total included in the US bank accounts and approximately $8.2 million total in foreign bank accounts as of October 31, 2019. Major Customer No customer accounted for more than 10% of net sales during the three and nine month periods ended October 31, 2019 and 2018. Major Supplier No supplier accounted for more than 10% of purchases during the three and nine month periods ended October 31, 2019 and 2018.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Oct. 31, 2019
Stockholders' equity
Stockholders' Equity	The 2017 Stock Plan On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) at the Annual Meeting of Stockholders. The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), except that with respect to all non-employee directors, the grants are made by the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (“SARS”). The Committee has the authority to determine the type of award, as well as the amount, terms and conditions of each award, under the 2017 Plan, subject to the limitations and other provisions of the 2017 Plan. An aggregate of 360,000 shares of the Company’s common stock are authorized for issuance under the 2017 Plan, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The following table summarizes the unvested shares granted on September 12, 2017 and June 7, 2018, which have been made under the 2017 Plan. Number of shares awarded total Minimum Target Maximum Cap Employees 35,863 53,796 71,728 86,125 Non-employee Directors 14,414 21,622 28,829 34,595 Total 50,277 75,418 100,557 120,720 Value at grant date (numbers below are rounded to the nearest $100) Minimum Target Maximum Cap Employees $ 497,600 $ 746,400 $ 995,200 $ 1,194,900 Non-employee Directors 200,000 300,000 400,000 480,000 Total $ 697,600 $ 1,046,400 $ 1,395,200 $ 1,674,900 The actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a full three fiscal year performance period commencing on February 1, 2017 and ending on January 31, 2020, in the case of the 2017 grants, and commencing on February 1, 2018 and ending on January 31, 2021, in the case of the 2018 grants, based on the level of earnings before interest, taxes, depreciation and amortization (“EBITDA”) achieved by the Company over this period. The EBITDA targets have been set for each of the Minimum, Target, Maximum and Cap levels, at higher amounts for each of the higher levels. The actual EBITDA amount achieved is determined by the Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, which items may include, without limitation, the charges or costs associated with restructurings of the Company or any subsidiary, discontinued operations, and the cumulative effects of accounting changes. The Company recognizes expense related to performance-based restricted share awards over the requisite performance period using the straight-line attribution method based on the most probable outcome (Minimum, Target, Maximum, Cap or Zero) at the end of the performance period and the price of the Company’s common stock price at the date of grant. The Company began recognizing expense, except as set forth below, related to awards under the 2017 Plan at Maximum award level, including SARS. During the period ended October 31, 2019, the Company revised its estimate of the 2017 and 2018 grants that will be earned for the designated performance period. Based on actual EBITDA achieved by the Company to date, it was deemed improbable that such performance would meet even the Minimum level required for such grants to vest, including SARS. As a result, stock-based compensation expense was adjusted to account for the change in estimate. The total amount of previously recognized stock-based compensation attributable to the 2017 and 2018 grants that has been reversed is approximately $806,000, of which approximately $25,000 related to the SARS. The Company recognized total stock-based compensation costs, net of the above change in estimate, which are reflected in operating expenses (in 000’s): Three Months Ended Nine Months Ended October 31, October 31 2019 2018 2019 2018 2017 Plan $ (345 ) $ 189 $ (596 ) $ 491 Total stock-based compensation $ (345 ) $ 189 $ (596 ) $ 491 Shares issued under 2017 Stock Plan Outstanding Unvested Grants at Maximum at Beginning of FY20 Granted during FY20 Becoming Vested during FY20 Forfeited during FY20 Outstanding Unvested Grants at Maximum at End of October 31, 2019 Restricted stock grants – employees 84,126 ----- ----- 12,397 71,729 Restricted stock grants – non-employee directors 28,829 ----- ----- ----- 28,829 Retainer in stock – non-employee directors 25,044 7,292 2,675 ----- 29,661 Total restricted stock 137,999 7,292 2,675 12,397 130,219 Weighted average grant date fair value $ 13.77 $ 11.63 $ 15.85 $ 13.87 $ 13.66 Other Compensation Plans/Programs Pursuant to the Company’s restrictive stock program, all directors are eligible to elect to receive any director fees in shares of restricted stock in lieu of cash. Such restricted shares are subject to a two-year vesting period. The valuation is based on the stock price at the grant date and is amortized to expense over the two-year period, which approximates the performance period. Since the director is giving up cash for unvested shares, and is subject to a vesting requirement, the amount of shares awarded is 133% of the cash amount based on the grant date stock price. As of October 31, 2019, unrecognized stock-based compensation expense related to these restricted stock awards totaled $41,766 for the 2017 Plan. The cost of these non-vested awards is expected to be recognized over a two-year weighted-average period. In addition, as of October 31, 2019, the Company granted awards for up to an aggregate of 32,336 shares from the 2017 Plan. Stock Options During the third quarter ending October 31, 2019 a stock option was granted pursuant to the Company’s 2017 Equity Incentive Plan in the amount of 24,900 shares at a a weighted-average exercise price of $11.17 per share. Such shares will vest at 8,300 shares on each of August 12, 2020, August 12, 2021 and August 12, 2022. The following table represents stock options granted, exercised and forfeited during third quarter of FY20. Stock Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at July 31, 2019 ----- $ ----- ----- $ ----- Granted during the quarter ended October 31, 2019 24,900 $ 11.17 ----- ----- Outstanding at October 31, 2019 24,900 $ 11.17 9.79 ----- Exercisable at October 31, 2019 ----- $ ----- ----- $ ----- The Company recognized approximately $13,000 of stock-based compensation expense during the three and nine months ended October 31, 2019 associated with the grant of the stock option. As of October 31, 2019 there is approximately $162,000 of unrecognized stock-based compensation expense, to be expensed over approximately three years. The Company estimates the fair value of each stock option award on the grant date using the Black-Scholes option-pricing model. The assumptions used to calculate the fair value of the options granted during the period ended October 31, 2019 are as follows: FY20 Expected volatility 53 % Expected life in years 10 Expected dividend yield 0.00 % Risk-free interest rate 1.65 % Stock Repurchase Program On July 19, 2016, the Company’s board of directors approved a stock repurchase program under which the Company may repurchase up to $2,500,000 of its outstanding common stock. The Company has repurchased 114,848 shares of stock under this program as of the date of this filing which amounted to $1,261,656, inclusive of commissions. During the three month period ended October 31, 2019 the Company repurchased zero shares. At October 31, 2019, the dollar value of remaining shares that may by repurchased under the share repurchase program was $1,238,344. Warrant In October 2014, the Company issued a five-year warrant that was immediately exercisable to purchase up to 55,500 shares of the Company’s common stock at an exercise price of $11.00 per share. As of October 31, 2019, such warrant has expired. Authorized Shares On June 27, 2018, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Company’s Restated Certificate of Incorporation, increasing the number of authorized shares from 11,500,000 to 21,500,000, of which 20,000,000 shares are of the Company’s common stock and 1,500,000 shares are of the Company’s preferred stock. The Certificate of Amendment was deemed effective as of June 25, 2018. The increase effected solely the number of authorized shares of common stock.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Deferred Taxes and Valuation Allowance The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $1.3 million at October 31, 2019 and January 31, 2019. The valuation allowance stayed the same for the three and nine months ended October 31, 2019 and 2018, respectively. Tax Reform On December 22, 2017, federal tax reform legislation was enacted in the United States, resulting in significant changes from previous tax law. The 2017 Tax Cuts and Jobs Act (the Tax Act) reduced the federal corporate income tax rate to 21% from 35% effective January 1, 2018. The Tax Act requires us to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, re-measuring our US deferred tax assets as well as reassessing the net realizability of our deferred tax assets. The Company completed this re-measurement and reassessment in FY18. While the Tax Act provides for a modified territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The proposed regulations were not finalized as of January 31, 2019. The regulations were finalized as of June 14, 2019. Re-measurement and reassessment of the GILTI tax as it is currently written resulted in a charge to tax expense of $0.3 million and $0.6 million for the three and nine months ended October 31, 2019, respectively. The Company intends to account for the GILTI tax in the period in which it is incurred. Though this non-cash expense had a materially negative impact on FY20 earnings, the Tax Act also changes the taxation of foreign earnings, and companies generally will not be subject to United States federal income taxes upon the receipt of dividends from foreign subsidiaries. Income Tax Expense Income tax expenses consists of federal, state and foreign income taxes. Items impacting the effective rate are foreign income subject to US tax (including Tax Reform impacts), tax rates in foreign jurisdictions, US state income taxes, timing differences for tax deductions for restricted stock vesting, company borrowing structures, and other permanent tax differences.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Oct. 31, 2019
Net income per common share:
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share at October 31, 2019 and 2018 as follows: Three Months Ended October 31, Nine Months Ended October 31, (in $000s except share and per share information) 2019 2018 2019 2018 Numerator: Net income $ 1,146 $ 501 $ 2,076 $ 3,386 Denominator: Denominator for basic earnings per share (weighted-average shares which reflect shares in the treasury, 471,289 and 356,441 for October 31, 2019 and 2018, respectively) 8,004,640 8,119,448 8,013,383 8,117,307 Effect of dilutive securities from restricted stock plan and from dilutive effect of warrants 31,289 66,682 30,776 57,253 Denominator for diluted earnings per share (adjusted weighted average shares) 8,035,929 8,186,130 8,044,159 8,174,560 Basic earnings per share $ 0.14 $ 0.06 $ 0.26 $ 0.42 Diluted earnings per share $ 0.14 $ 0.06 $ 0.26 $ 0.41 Warrants, restricted stock, and stock options excluded from the computation of diluted earnings per share because the effect of inclusion would have been anti-dilutive 125,457

Contingencies

Contingencies	9 Months Ended
	Oct. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Labor and other contingencies in Brazil As disclosed in our periodic filings with the SEC, we agreed to make certain payments in connection with ongoing labor litigation involving our former Brazilian subsidiary (“Lakeland Brazil”). While the vast majority of these labor suits have been resolved, there are two (2) labor cases that remain active, and in which Lakeland was named as a co-defendant. The first case was filed against Lakeland by a former officer of Lakeland Brazil, in Labor Court in 2014 claiming Lakeland owed USD $300,000. The Labor Court ruled that the claimant’s case was outside of the scope of the Labor Court and the case was dismissed. The claimant appealed within the Labor Court system, which was dismissed by the Labor Court of Appeal on November 27, 2019. The claimant may still further appeal to the Superior Labor Court. The second case was filed by a former Lakeland Brazil manager, in 2014, was ruled upon in Labor Court and awarded the claimant USD $100,000. Lakeland was removed by the court from the case in February 2017 and no appeals were filed in respect to such removal. Both the claimant and Lakeland Brazil have appealed the award and The Labor Court of Appeal has ruled in favor of Lakeland Brazil to annul the first decision and re-open the case. The claimant has appealed from the latter decision to the Superior Labor Court, which is yet to rule on the matter. A former officer of Lakeland Brazil also filed a civil claim seeking approximately USD $700,000 that he alleges is due to him against an unpaid promissory note. While Lakeland may be sought as a party, Lakeland has not been served with process and no decision on the merits has been issued in this case yet. Management firmly believes these claims to be without any merit and does not anticipate a negative outcome resulting in significant expense to us. Lakeland Brazil may face new labor lawsuits in the short term as a result of the recent commencement of the winding down of its operations in our first quarter. In order to mitigate this risk, the management of Lakeland Brazil has been proposing settlement agreements to employees dismissed due to the winding down and to the extent possible seeking confirmation of Labor Courts. The Company has no obligation under the 2015 Shares Transfer Agreement pursuant to which Agreement, the Company eliminated its interest in Lakeland Brazil to make any additional payments in connection with these potential new labor lawsuits. The Company also understands that under the labor laws of Brazil, a parent company may be held liable for the labor liabilities of a former Brazilian subsidiary in the case of fraud, misconduct, or under various theories. Although the Company would have the right of adversary system, full defense and due process in case of a potential litigation, there can be no assurance as to the findings of the courts of Brazil. There are additional cases in Labor and Civil courts against Lakeland Brazil in which Lakeland is not a party, and other outstanding monetary allegations of Lakeland Brazil. In FY19, the Company recorded an accrual of $1.2 million for professional fees and litigation reserves associated with labor claims in Brazil. During the nine months ending October 31, 2019 the Company recorded an additional expense of $0.4 million and paid $1.4 million in professional fees and labor claims.. The accrual on the balance sheet at October 31, 2019 and January 31, 2019 is $0.2 million and $1.2 million, respectively. Other litigation contingencies: The Company is involved in various litigation proceedings arising during the normal course of business which, in the opinion of the management of the Company, will not have a material effect on the Company’s financial position, results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. As of October 31, 2019, to the best of the Company’s knowledge, there were no outstanding claims or litigation, except for the labor contingencies in Brazil described above. Officer severance payment The Company entered into a separation agreement with a former officer effective July 22, 2019 and recorded a severance charge of $260,000 in connection with this arrangement. The severance amount will be paid through June 5, 2020 pursuant to the terms of the separation agreement.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 31, 2019
Segment Reporting [Abstract]
Segment Reporting	Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Domestic $ 14.16 51.56 % $ 11.82 49.24 % $ 41.47 52.08 % $ 37.54 50.75 % International 13.30 48.44 % 12.19 50.76 % 38.15 47.92 % 36.43 49.25 % Total $ 27.46 100.00 % $ 24.01 100.00 % $ 79.62 100.00 % $ 73.97 100.00 % Domestic and international sales from continuing operations are as follows in millions of dollars: The Company manages its operations by evaluating each of its geographic locations. The US operations include a facility in Alabama (primary US distribution facility and light manufacturing of our chemical, wovens, reflective, and fire products). The Company also maintains one manufacturing company in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing facility in Vietnam (primarily disposable products), a manufacturing facility in Argentina and a small manufacturing facility in India. The China facilities produce the majority of the Company’s products and China generates a significant portion of the Company’s international revenues. The Company evaluates the performance of these entities based on operating profit, which is defined as income before income taxes, interest expense and other income and expenses. The Company maintains sales forces in North America South America, Europe, and Asia, which sell and distribute products shipped from the United States, Mexico, Argentina, China, India or Vietnam. The table below represents information about reported segments for the years noted therein: Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 Net Sales: USA $ 15.84 $ 13.00 $ 45.36 $ 41.07 Other foreign 1.65 1.29 4.81 4.33 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 1.22 1.15 3.09 3.83 Asia 13.34 12.68 43.97 40.27 Canada 2.60 2.08 7.50 6.39 Latin America 2.01 1.74 6.45 5.27 Corporate ----- ----- ----- 0.75 Less intersegment sales (11.58 ) (10.15 ) (38.80 ) (35.29 ) Consolidated sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 External Sales: USA $ 14.16 $ 11.82 $ 41.47 $ 37.54 Other foreign 0.91 0.72 2.61 2.30 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 0.88 0.77 2.08 2.70 Asia 4.62 4.80 12.49 12.79 Canada 2.60 2.08 7.47 6.38 Latin America 1.91 1.60 6.26 4.91 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Intersegment Sales: USA $ 1.68 $ 1.18 $ 3.89 $ 3.53 Other foreign 0.74 0.57 2.20 2.02 Mexico 0.34 0.38 1.01 1.13 Asia 8.71 7.88 31.48 27.49 Canada ----- ----- 0.03 0.02 Latin America 0.11 0.14 0.19 0.35 Corporate ----- ----- ----- 0.75 Consolidated intersegment sales $ 11.58 $ 10.15 $ 38.80 $ 35.29 Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 Operating Profit : USA $ 2.60 $ 1.66 $ 6.04 $ 6.45 Other foreign 0.14 0.02 0.30 0.23 Europe (UK) 0.02 0.03 (0.02 ) 0.21 Mexico 0.02 (0.03 ) (0.39 ) 0.13 Asia 1.04 0.63 2.87 1.81 Canada 0.25 0.32 0.77 0.75 Latin America 0.21 0.16 0.81 0.52 Corporate (2.46 ) (1.61 ) (6.33 ) (4.96 ) Less intersegment profit 0.01 (0.17 ) 0.11 (0.06 ) Consolidated operating profit $ 1.83 $ 1.01 $ 4.16 $ 5.08 Depreciation and Amortization Expense: USA $ 0.04 $ 0.03 $ 0.21 $ 0.09 Other foreign ----- ----- 0.02 0.02 Europe (UK) ----- ----- ----- 0.01 Mexico 0.04 0.03 0.12 0.09 Asia 0.14 0.04 0.40 0.19 Canada 0.03 0.02 0.08 0.05 Latin America 0.01 0.01 0.03 0.03 Corporate 0.18 0.09 0.43 0.19 Less intersegment (0.01 ) ----- (0.02 ) (0.03 ) Consolidated depreciation & amortization expense $ 0.43 $ 0.22 $ 1.27 $ 0.64 Interest Expense: Europe (UK) $ ----- $ ----- $ 0.01 $ ---- Latin America 0.01 0.01 0.04 0.03 Corporate 0.02 0.02 0.05 0.06 Consolidated interest expense $ 0.03 $ 0.03 $ 0.10 $ 0.09 Income Tax Expense: Europe (UK) $ 0.01 $ 0.01 $ 0.01 0.05 Asia 0.16 0.29 0.67 0.80 Canada 0.10 0.02 0.32 0.17 Latin America ----- 0.15 0.13 0.21 Corporate 0.38 0.05 0.81 0.39 Less intersegment ----- (0.03 ) 0.01 0.01 Consolidated income tax expense $ 0.65 $ 0.49 $ 1.95 $ 1.63 Capital Expenditures: USA (including Corporate) $ (0.04 ) $ 0.54 $ 0.28 $ 0.85 Other foreign 0.01 0.36 0.02 1.13 Mexico 0.02 0.09 0.07 0.20 Asia 0.12 0.02 0.31 0.05 Latin America ----- ----- 0.01 ----- Consolidated capital expenditure $ 0.11 $ 1.01 $ 0.69 $ 2.23 October 31, 2019 (in millions of dollars) January 31, 2019 (in millions of dollars) Total Assets USA $ 31.05 $ 29.76 Other foreign 3.57 2.85 Europe (UK) 5.13 4.36 Mexico 5.45 5.13 Asia 23.31 20.97 Canada 6.00 6.64 Latin America 5.46 5.27 Corporate 19.13 19.74 Consolidated assets $ 99.10 $ 94.72 Property and Equipment USA (including Corporate) $ 3.55 $ 3.87 Other foreign 0.17 0.19 Europe (UK) ----- 0.01 Mexico 2.10 2.14 Asia 3.10 3.17 Canada 1.18 1.26 Latin America 0.05 0.07 Less intersegment 0.08 0.07 Consolidated property and equipment $ 10.23 $ 10.78 Goodwill: USA $ 0.87 $ 0.87 Consolidated goodwill $ 0.87 $ 0.87

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation	The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates and Assumptions	The preparation of unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that events could occur during the upcoming year that could change such estimates.
Accounts Receivable, net	Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company recognizes losses when information available indicates that it is probable that a receivable has been impaired based on criteria noted below at the date of the unaudited condensed consolidated financial statements, and the amount of the loss can be reasonably estimated. Management considers the following factors when determining the collectability of specific customer accounts: Customer creditworthiness, past transaction history with the customers, current economic industry trends and changes in customer payment terms. Past due balances over 90 days and other less creditworthy accounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
Inventories	Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost (on a first-in, first-out basis) or estimated net realizable value.
Impairment of Long-Lived Assets	The Company evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. The Company measures any potential impairment on a projected undiscounted cash flow method. Estimating future cash flows requires the Company’s management to make projections that can differ materially from actual results. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset.
Revenue Recognition	Substantially all the Company’s revenue is derived from product sales, which consist of sales of the Company’s personal protective wear products to distributors. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 90 days of the invoice date, and the contracts do not have significant financing components. The Company elected to account for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. Shipping and handling costs associated with outbound freight are included in operating expenses, and for the three months ended October 31, 2019 and 2018 aggregated approximately $0.9 million and $0.6 million and $2.5 million and $2.1 million for the nine months ended October 31, 2019 and 2018, respectively. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. The transaction price includes estimates of variable consideration, related to rebates, allowances, and discounts that are reductions in revenue. All estimates are based on the Company's historical experience, anticipated performance, and the Company's best judgment at the time the estimate is made. Estimates for variable consideration are reassessed each reporting period and are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur upon resolution of uncertainty associated with the variable consideration. All the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as quantity times price per unit. The Company has seven revenue generating reportable geographic segments under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its limited use/disposable protective clothing and secondarily from its sales of reflective clothing, high-end chemical protective suits, firefighting and heat protective apparel, reusable woven garments and gloves and arm guards. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see table below). Net sales by geographic region and by product line are included below: Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by region: USA $ 14.16 $ 11.82 $ 41.47 $ 37.54 Other foreign 0.91 0.72 2.61 2.30 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 0.88 0.77 2.08 2.70 Asia 4.62 4.80 12.49 12.79 Canada 2.60 2.08 7.47 6.38 Latin America 1.91 1.60 6.26 4.91 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by product lines: Disposables $ 12.52 $ 12.74 $ 39.19 $ 40.88 Chemical 5.68 4.74 16.30 12.42 Fire 2.81 1.02 6.64 3.57 Gloves 0.74 0.77 2.33 2.30 Hi-Vis 2.20 1.83 6.04 5.46 Wovens 3.51 2.91 9.12 9.34 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97
Income Taxes	The Company is required to estimate its income taxes in each of the jurisdictions in which it operates as part of preparing the unaudited condensed consolidated financial statements. This involves estimating the actual current tax in addition to assessing temporary differences resulting from differing treatments for tax and financial accounting purposes. These differences, together with net operating loss carryforwards and tax credits, are recorded as deferred tax assets or liabilities on the Company’s unaudited condensed consolidated balance sheet. A judgment must then be made of the likelihood that any deferred tax assets will be recovered from future taxable income. A valuation allowance may be required to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines that it may not be able to realize all or part of its deferred tax asset in the future, or that new estimates indicate that a previously recorded valuation allowance is no longer required, an adjustment to the deferred tax asset is charged or credited to income in the period of such determination. The Company recognizes tax positions that meet a “more likely than not” minimum recognition threshold. If necessary, the Company recognizes interest and penalties associated with tax matters as part of the income tax provision and would include accrued interest and penalties with the related tax liability in the unaudited condensed consolidated balance sheets. The Company does not have any uncertain tax positions at October 31, 2019 or January 31, 2019.
Foreign Operations and Foreign Currency Translation	The Company maintains manufacturing operations in Mexico, India, Argentina, Vietnam and the People’s Republic of China and can access independent contractors in China, Vietnam, Argentina and Mexico. It also maintains sales and distribution entities located in India, Canada, the U.K., Chile, China, Argentina, Russia, Kazakhstan, Uruguay, Australia, and Mexico. The Company is vulnerable to currency risks in these countries. The functional currency for the United Kingdom subsidiary is the Euro; the trading company in China, the RMB; the Russian operation, the Russian Ruble, and the Kazakhstan operation the Kazakhstan Tenge. All other operations have the US dollar as its functional currency. Pursuant to US GAAP, assets and liabilities of the Company’s foreign operations with functional currencies, other than the US dollar, are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the periods. Translation adjustments are reported in accumulated other comprehensive loss, a separate component of stockholders’ equity. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign currency transaction gains (losses) included in net income for the three months ended October 31, 2019 and 2018 was approximately $0.0 million and $0.2 million and for the nine months ended October 31, 2019 and 2018 was approximately $0.2 million and $(0.4) million, respectively.
Fair Value of Financial Instruments	US GAAP defines fair value, provides guidance for measuring fair value and requires certain disclosures utilizing a fair value hierarchy which is categorized into three levels based on the inputs to the valuation techniques used to measure fair value. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect management’s own assumptions. The financial instruments of the Company classified as current assets or liabilities, including cash and cash equivalents, accounts receivable, short-term borrowings, borrowings under revolving credit facility, accounts payable and accrued expenses, are recorded at carrying value, which approximates fair value based on the short-term nature of these instruments. The Company believes that the fair values of its long-term debt approximates its carrying value based on the effective interest rate compared to the current market rate available to the Company.
Earnings Per Share	Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common shares and common stock equivalents. The diluted earnings per share calculation takes into account unvested restricted shares and the shares that may be issued upon exercise of stock options and warrants, reduced by shares that may be repurchased with the funds received from the exercise, based on the average price during the fiscal period.
Reclassifications	Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications have no effect on the accompanying unaudited condensed consolidated financial statements.
Accounting Pronouncements	Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. New Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on February 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on February 1, 2019 and used the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before February 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elects the ‘package of practical expedients’, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. On adoption, the Company recognized additional operating lease liabilities of approximately $2.8 million with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under the prior leasing standard for existing operating leases. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income,” which allows institutions to elect to reclassify the stranded tax effects from AOCI to retained earnings, limited only to amounts in AOCI that are affected by the tax reform law. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within that reporting period. The Company has adopted this guidance, which had no material impact on its unaudited condensed consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which includes provisions, intended to simplify the test for goodwill impairment. The standard is effective for annual periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this standard to have a significant impact on its financial position and results of operations. No other recently issued accounting pronouncements had or are expected to have a material impact on the Company’s unaudited condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Disaggregation of revenue	Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by region: USA $ 14.16 $ 11.82 $ 41.47 $ 37.54 Other foreign 0.91 0.72 2.61 2.30 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 0.88 0.77 2.08 2.70 Asia 4.62 4.80 12.49 12.79 Canada 2.60 2.08 7.47 6.38 Latin America 1.91 1.60 6.26 4.91 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 External Sales by product lines: Disposables $ 12.52 $ 12.74 $ 39.19 $ 40.88 Chemical 5.68 4.74 16.30 12.42 Fire 2.81 1.02 6.64 3.57 Gloves 0.74 0.77 2.33 2.30 Hi-Vis 2.20 1.83 6.04 5.46 Wovens 3.51 2.91 9.12 9.34 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Oct. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	October 31, 2019 January 31, 2019 Raw materials $ 17,230 $ 14,986 Work-in-process 441 987 Finished goods $ 30,126 26,392 $ 47,797 $ 42,365

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 31, 2019
Leases [Abstract]
Condensed consolidated balance sheet	Leases (000’s) Classification October 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 2,482 Liabilities Current Operating Current portion of operating lease liabilities $ 254 Noncurrent Operating Long-term portion of operating lease liabilities 2,243 Total Lease Obligations $ 2,497
Schedule of lease cost	Classification Three Months Ended October 31, 2019 Nine Months Ended October 31, 2019 Operating lease cost Cost of goods sold $ 53 $ 342 Operating expenses $ 269 $ 507 Short-term lease cost $ 444 $ 572
Maturities of operating lease liabilities	Year ending January 31, Operating Leases (a) Remainder of fiscal year 2020 254 2021 955 2022 802 2023 686 2024 23 Thereafter 81 Total lease payments 2,801 Less: Interest 304 Present value of lease liability $ 2,497 (a) Operating leases payments include $34,000 related to options to extend lease terms that are reasonably certain of being exercised and new leases entered into during the quarter.
Weighted-average lease terms and discount rates	October 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.72 Weighted-average discount rate Operating leases 5.83 %
Supplemental cash flow information related to leases	Cash paid for amounts included in the measurement of lease liabilities; Nine Months Ended October 31, 2019 Operating cash flows from operating leases $ 783 Leased assets obtained in exchange for new operating lease liabilities $ 3,218
Rent costs	Year ended January 31, Gross rental 2019 $ 1,022 2018 $ 841
Minimum annual rental commitments	Year ending January 31 2020 $ 761 2021 447 2022 435 2023 314 2024 8 and thereafter 9 Total $ 1,974

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Oct. 31, 2019
Long-term Debt, Unclassified [Abstract]
Schedule of long-term debt	Short-Term Long-term Current Maturity of Long-term October 31, January 31, October 31, January 31, October 31, January 31, 2019 2019 2019 2019 2019 2019 USA $ 1,194 $ ----- $ ----- $ 1,161 $ ----- $ 158 UK $ 494 ----- ----- ----- ----- ----- Totals $ 1,688 $ ----- $ ----- $ 1,161 $ ----- $ 158
Schedule of long-term debt maturities	Total 1 Year or less 2 Years 3 Years 4 Years 5 Years After 5 Years Borrowings in USA $ 1,194 $ 1,194 $ ----- $ ----- $ ----- $ ----- $ ----- Borrowing in the UK 494 494 ----- ----- ----- ----- ----- Total $ 1,688 $ 1,688 $ ----- $ ----- $ ----- $ ----- $ -----

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Oct. 31, 2019
Stockholders' equity
Schedule of nonvested share activity	Number of shares awarded total Minimum Target Maximum Cap Employees 35,863 53,796 71,728 86,125 Non-employee Directors 14,414 21,622 28,829 34,595 Total 50,277 75,418 100,557 120,720 Value at grant date (numbers below are rounded to the nearest $100) Minimum Target Maximum Cap Employees $ 497,600 $ 746,400 $ 995,200 $ 1,194,900 Non-employee Directors 200,000 300,000 400,000 480,000 Total $ 697,600 $ 1,046,400 $ 1,395,200 $ 1,674,900
Schedule of share-based compensation	Three Months Ended Nine Months Ended October 31, October 31 2019 2018 2019 2018 2017 Plan $ (345 ) $ 189 $ (596 ) $ 491 Total stock-based compensation $ (345 ) $ 189 $ (596 ) $ 491
Schedule of restricted stock units award activity	Shares issued under 2017 Stock Plan Outstanding Unvested Grants at Maximum at Beginning of FY20 Granted during FY20 Becoming Vested during FY20 Forfeited during FY20 Outstanding Unvested Grants at Maximum at End of October 31, 2019 Restricted stock grants – employees 84,126 ----- ----- 12,397 71,729 Restricted stock grants – non-employee directors 28,829 ----- ----- ----- 28,829 Retainer in stock – non-employee directors 25,044 7,292 2,675 ----- 29,661 Total restricted stock 137,999 7,292 2,675 12,397 130,219 Weighted average grant date fair value $ 13.77 $ 11.63 $ 15.85 $ 13.87 $ 13.66
Schedule of stock option activity	Stock Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at July 31, 2019 ----- $ ----- ----- $ ----- Granted during the quarter ended October 31, 2019 24,900 $ 11.17 ----- ----- Outstanding at October 31, 2019 24,900 $ 11.17 9.79 ----- Exercisable at October 31, 2019 ----- $ ----- ----- $ -----
Assumptions used to calculate the fair value of the options granted	FY20 Expected volatility 53 % Expected life in years 10 Expected dividend yield 0.00 % Risk-free interest rate 1.65 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Oct. 31, 2019
Net income per common share:
Schedule of earnings per share	Three Months Ended October 31, Nine Months Ended October 31, (in $000s except share and per share information) 2019 2018 2019 2018 Numerator: Net income $ 1,146 $ 501 $ 2,076 $ 3,386 Denominator: Denominator for basic earnings per share (weighted-average shares which reflect shares in the treasury, 471,289 and 356,441 for October 31, 2019 and 2018, respectively) 8,004,640 8,119,448 8,013,383 8,117,307 Effect of dilutive securities from restricted stock plan and from dilutive effect of warrants 31,289 66,682 30,776 57,253 Denominator for diluted earnings per share (adjusted weighted average shares) 8,035,929 8,186,130 8,044,159 8,174,560 Basic earnings per share $ 0.14 $ 0.06 $ 0.26 $ 0.42 Diluted earnings per share $ 0.14 $ 0.06 $ 0.26 $ 0.41 Warrants, restricted stock, and stock options excluded from the computation of diluted earnings per share because the effect of inclusion would have been anti-dilutive 125,457

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 31, 2019
Segment Reporting [Abstract]
Schedule of geographic revenue	Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Domestic $ 14.16 51.56 % $ 11.82 49.24 % $ 41.47 52.08 % $ 37.54 50.75 % International 13.30 48.44 % 12.19 50.76 % 38.15 47.92 % 36.43 49.25 % Total $ 27.46 100.00 % $ 24.01 100.00 % $ 79.62 100.00 % $ 73.97 100.00 %
Segment information	Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 Net Sales: USA $ 15.84 $ 13.00 $ 45.36 $ 41.07 Other foreign 1.65 1.29 4.81 4.33 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 1.22 1.15 3.09 3.83 Asia 13.34 12.68 43.97 40.27 Canada 2.60 2.08 7.50 6.39 Latin America 2.01 1.74 6.45 5.27 Corporate ----- ----- ----- 0.75 Less intersegment sales (11.58 ) (10.15 ) (38.80 ) (35.29 ) Consolidated sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 External Sales: USA $ 14.16 $ 11.82 $ 41.47 $ 37.54 Other foreign 0.91 0.72 2.61 2.30 Europe (UK) 2.38 2.22 7.24 7.35 Mexico 0.88 0.77 2.08 2.70 Asia 4.62 4.80 12.49 12.79 Canada 2.60 2.08 7.47 6.38 Latin America 1.91 1.60 6.26 4.91 Consolidated external sales $ 27.46 $ 24.01 $ 79.62 $ 73.97 Intersegment Sales: USA $ 1.68 $ 1.18 $ 3.89 $ 3.53 Other foreign 0.74 0.57 2.20 2.02 Mexico 0.34 0.38 1.01 1.13 Asia 8.71 7.88 31.48 27.49 Canada ----- ----- 0.03 0.02 Latin America 0.11 0.14 0.19 0.35 Corporate ----- ----- ----- 0.75 Consolidated intersegment sales $ 11.58 $ 10.15 $ 38.80 $ 35.29 Three Months Ended October 31, (in millions of dollars) Nine Months Ended October 31, (in millions of dollars) 2019 2018 2019 2018 Operating Profit : USA $ 2.60 $ 1.66 $ 6.04 $ 6.45 Other foreign 0.14 0.02 0.30 0.23 Europe (UK) 0.02 0.03 (0.02 ) 0.21 Mexico 0.02 (0.03 ) (0.39 ) 0.13 Asia 1.04 0.63 2.87 1.81 Canada 0.25 0.32 0.77 0.75 Latin America 0.21 0.16 0.81 0.52 Corporate (2.46 ) (1.61 ) (6.33 ) (4.96 ) Less intersegment profit 0.01 (0.17 ) 0.11 (0.06 ) Consolidated operating profit $ 1.83 $ 1.01 $ 4.16 $ 5.08 Depreciation and Amortization Expense: USA $ 0.04 $ 0.03 $ 0.21 $ 0.09 Other foreign ----- ----- 0.02 0.02 Europe (UK) ----- ----- ----- 0.01 Mexico 0.04 0.03 0.12 0.09 Asia 0.14 0.04 0.40 0.19 Canada 0.03 0.02 0.08 0.05 Latin America 0.01 0.01 0.03 0.03 Corporate 0.18 0.09 0.43 0.19 Less intersegment (0.01 ) ----- (0.02 ) (0.03 ) Consolidated depreciation & amortization expense $ 0.43 $ 0.22 $ 1.27 $ 0.64 Interest Expense: Europe (UK) $ ----- $ ----- $ 0.01 $ ---- Latin America 0.01 0.01 0.04 0.03 Corporate 0.02 0.02 0.05 0.06 Consolidated interest expense $ 0.03 $ 0.03 $ 0.10 $ 0.09 Income Tax Expense: Europe (UK) $ 0.01 $ 0.01 $ 0.01 0.05 Asia 0.16 0.29 0.67 0.80 Canada 0.10 0.02 0.32 0.17 Latin America ----- 0.15 0.13 0.21 Corporate 0.38 0.05 0.81 0.39 Less intersegment ----- (0.03 ) 0.01 0.01 Consolidated income tax expense $ 0.65 $ 0.49 $ 1.95 $ 1.63 Capital Expenditures: USA (including Corporate) $ (0.04 ) $ 0.54 $ 0.28 $ 0.85 Other foreign 0.01 0.36 0.02 1.13 Mexico 0.02 0.09 0.07 0.20 Asia 0.12 0.02 0.31 0.05 Latin America ----- ----- 0.01 ----- Consolidated capital expenditure $ 0.11 $ 1.01 $ 0.69 $ 2.23 October 31, 2019 (in millions of dollars) January 31, 2019 (in millions of dollars) Total Assets USA $ 31.05 $ 29.76 Other foreign 3.57 2.85 Europe (UK) 5.13 4.36 Mexico 5.45 5.13 Asia 23.31 20.97 Canada 6.00 6.64 Latin America 5.46 5.27 Corporate 19.13 19.74 Consolidated assets $ 99.10 $ 94.72 Property and Equipment USA (including Corporate) $ 3.55 $ 3.87 Other foreign 0.17 0.19 Europe (UK) ----- 0.01 Mexico 2.10 2.14 Asia 3.10 3.17 Canada 1.18 1.26 Latin America 0.05 0.07 Less intersegment 0.08 0.07 Consolidated property and equipment $ 10.23 $ 10.78 Goodwill: USA $ 0.87 $ 0.87 Consolidated goodwill $ 0.87 $ 0.87

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Net sales	$ 27,464	$ 24,009	$ 79,620	$ 73,970
Disposables
Net sales	12,520	12,740	39,190	40,880
Chemical
Net sales	5,680	4,740	16,300	12,420
Fire
Net sales	2,810	1,020	6,640	3,570
Gloves
Net sales	740	770	2,330	2,300
Hi-Vis
Net sales	2,200	1,830	6,040	5,460
Wovens
Net sales	3,510	2,910	9,120	9,340
USA
Net sales	14,160	11,820	41,470	37,540
Other Foreign
Net sales	910	720	2,610	2,300
Europe (UK)
Net sales	2,380	2,220	7,240	7,350
Mexico
Net sales	880	770	2,080	2,700
Asia
Net sales	4,620	4,800	12,490	12,790
Canada
Net sales	2,600	2,080	7,470	6,380
Latin America
Net sales	$ 1,910	$ 1,600	$ 6,260	$ 4,910

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Accounting Policies [Abstract]
Shipping and handling costs	$ 900	$ 600	$ 2,500	$ 2,100
Foreign currency transaction losses	$ 0	$ 200	$ 200	$ (400)

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 17,230	$ 14,986
Work-in-process	441	987
Finished goods	30,126	26,392
Inventories, net	$ 47,797	$ 42,365

Leases (Details)

Leases (Details) - USD ($) $ in Thousands		Oct. 31, 2019	Jan. 31, 2019
Leases [Abstract]
Operating lease assets		$ 2,482	$ 0
Current operating lease liabilities		254	0
Noncurrent operating lease liabilities		2,243	$ 0
Total lease obligations	[1]	$ 2,497
[1]	Operating leases payments include $34,000 related to options to extend lease terms that are reasonably certain of being exercised and new leases entered into during the quarter.

Leases (Details 1)

Leases (Details 1) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2019
Leases [Abstract]
Operating lease cost, cost of goods sold	$ 53	$ 342
Operating lease cost, operating expenses	269	507
Short-term lease cost	$ 444	$ 572

Leases (Details 2)

Leases (Details 2) $ in Thousands	Oct. 31, 2019USD ($)	[1]
Leases [Abstract]
Remainder of fiscal year 2020	$ 254
2021	955
2022	802
2023	686
2024	23
Thereafter	81
Total lease payments	2,801
Less: interest	304
Present value of lease liability	$ 2,497
[1]	Operating leases payments include $34,000 related to options to extend lease terms that are reasonably certain of being exercised and new leases entered into during the quarter.

Leases (Details 3)

Leases (Details 3)	Oct. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term (years) operating leases	2 years 8 months 19 days
Weighted-average discount rate operating leases	5.83%

Leases (Details 4)

Leases (Details 4) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Leases [Abstract]
Operating cash flows from operating leases	$ 783
Leased assets obtained in exchange for new operating lease liabilities	$ 3,218	$ 0

Leases (Details 5)

Leases (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Leases [Abstract]
Rental cost	$ 1,022	$ 841

Leases (Details 6)

Leases (Details 6) $ in Thousands	Oct. 31, 2019USD ($)
Leases [Abstract]
2020	$ 761
2021	447
2022	435
2023	314
2024	8
and thereafter	9
Total	$ 1,974

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Short-term debt	$ 1,688	$ 0
Long-term debt, excluding current maturities	0	1,161
Long-term debt, current maturities	1,194	158
UK
Short-term debt	1,194	0
Long-term debt, excluding current maturities	0	1,161
Long-term debt, current maturities	0	158
USA
Short-term debt	494	0
Long-term debt, excluding current maturities	0	0
Long-term debt, current maturities	$ 0	$ 0

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) $ in Thousands	Oct. 31, 2019USD ($)
1 Year or less	$ 1,688
2 Years	0
3 Years	0
4 Years	0
5 Years	0
After 5 Years	0
Total	1,688
USA
1 Year or less	1,194
2 Years	0
3 Years	0
4 Years	0
5 Years	0
After 5 Years	0
Total	1,194
UK
1 Year or less	494
2 Years	0
3 Years	0
4 Years	0
5 Years	0
After 5 Years	0
Total	$ 494

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Oct. 31, 2019	Jan. 31, 2019
Number of shares awarded total	24,900
Minimum
Number of shares awarded total		50,277
Value at grant date		$ 697,600
Target
Number of shares awarded total		75,418
Value at grant date		$ 1,046,400
Maximum
Number of shares awarded total		100,557
Value at grant date		$ 1,395,200
Cap
Number of shares awarded total		120,720
Value at grant date		$ 1,674,900
Employees | Minimum
Number of shares awarded total		35,863
Value at grant date		$ 497,600
Employees | Target
Number of shares awarded total		53,796
Value at grant date		$ 746,400
Employees | Maximum
Number of shares awarded total		71,728
Value at grant date		$ 995,200
Employees | Cap
Number of shares awarded total		86,125
Value at grant date		$ 1,194,900
Non Employee Directors | Minimum
Number of shares awarded total		14,414
Value at grant date		$ 200,000
Non Employee Directors | Target
Number of shares awarded total		21,622
Value at grant date		$ 300,000
Non Employee Directors | Maximum
Number of shares awarded total		28,829
Value at grant date		$ 400,000
Non Employee Directors | Cap
Number of shares awarded total		34,595
Value at grant date		$ 480,000

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Total stock-based compensation	$ (345)	$ 189	$ (596)	$ 491
2017 Plan
Total stock-based compensation	$ (345)	$ 189	$ (596)	$ 491

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2)	9 Months Ended
	Oct. 31, 2019$ / sharesshares
Restricted stock, outstanding, beginning	137,999
Restricted stock, granted	7,292
Restricted stock, vested	2,675
Restricted stock, forfeited	12,397
Restricted stock, outstanding, ending	130,219
Weighted average grant date fair value, outstanding, beginning | $ / shares	$ 13.77
Weighted average grant date fair value, granted | $ / shares	11.63
Weighted average grant date fair value, vested | $ / shares	15.85
Weighted average grant date fair value, forfeited | $ / shares	13.87
Weighted average grant date fair value, outstanding, ending | $ / shares	$ 13.66
Restricted stock grants - employees
Restricted stock, outstanding, beginning	84,126
Restricted stock, granted	0
Restricted stock, vested	0
Restricted stock, forfeited	12,397
Restricted stock, outstanding, ending	71,729
Restricted stock grants - non-employee directors
Restricted stock, outstanding, beginning	28,829
Restricted stock, granted	0
Restricted stock, vested	0
Restricted stock, forfeited	0
Restricted stock, outstanding, ending	28,829
Retainer in stock - non-employee directors
Restricted stock, outstanding, beginning	25,044
Restricted stock, granted	7,292
Restricted stock, vested	2,675
Restricted stock, forfeited	0
Restricted stock, outstanding, ending	29,661

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) $ / shares in Units, $ in Thousands	9 Months Ended
	Oct. 31, 2019USD ($)$ / sharesshares
Stockholders' equity
Number of options outstanding, beginning | shares	0
Number of options granted | shares	24,900
Number of options outstanding, ending | shares	24,900
Number of options exercisable | shares	0
Weighted average exercise price outstanding, beginning	$ 0
Weighted average exercise price granted	11.17
Weighted average exercise price outstanding, ending	11.17
Weighted average exercise price exercisable	$ .00
Weighted average remaining contractual term outstanding (in years)	9 years 9 months 15 days
Aggregate intrinsic value outstanding, beginning | $	$ 0
Aggregate intrinsic value granted	$ 0
Aggregate intrinsic value outstanding, ending | $	$ 0
Aggregate intrinsic value exercisable | $	$ 0

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4)	9 Months Ended
	Oct. 31, 2019
Stockholders' equity
Expected volatility	53.00%
Expected life in years	10 years
Expected dividend yield	0.00%
Risk-free interest rate	1.65%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2019	Jan. 31, 2019
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 1,300	$ 1,300
Federal corporate income tax rate	21.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Numerator:
Net income	$ 1,146	$ 501	$ 2,076	$ 3,386
Denominator:
Denominator for basic earnings per share (weighted-average shares which reflect shares in the treasury, 471,289 and 356,441 for October 31, 2019 and 2018, respectively)	8,004,640	8,119,448	8,013,383	8,117,307
Effect of dilutive securities from restricted stock plan and from dilutive effect of stock options	31,289	66,682	30,776	57,253
Denominator for diluted earnings per share (adjusted weighted average shares)	8,035,929	8,186,130	8,044,159	8,174,560
Basic earnings per share	$ 0.14	$ 0.06	$ 0.26	$ 0.42
Diluted earnings per share	$ 0.14	$ 0.06	$ 0.26	$ 0.41
Warrants and restricted stock awards excluded from the computation of diluted loss per share because the effect of inclusion would have been anti-dilutive

Contingencies (Details Narrativ

Contingencies (Details Narrative) - USD ($) $ in Thousands	Oct. 31, 2019	Jan. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual	$ 200	$ 1,200

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Net sales	$ 27,464	$ 24,009	$ 79,620	$ 73,970
Sales revenue, percentage	100.00%	100.00%	100.00%	100.00%
Domestic
Net sales	$ 14,160	$ 11,820	$ 41,470	$ 37,540
Sales revenue, percentage	51.56%	49.24%	52.08%	50.75%
International
Net sales	$ 13,300	$ 12,190	$ 38,150	$ 36,430
Sales revenue, percentage	48.44%	50.76%	47.92%	49.25%

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	Jan. 31, 2019
Net sales	$ 27,460	$ 24,010	$ 79,620	$ 73,970
External sales	27,460	24,010	79,620	73,970
Intersegment sales	11,580	10,150	38,800	35,290
Operating profit	1,834	1,013	4,157	5,077
Depreciation and amortization expense	430	220	1,267	642
Interest expense	26	25	98	93
Income tax expense	653	494	1,950	1,634
Capital expenditures	110	1,010	690	2,230
Total assets less intersegment	99,100		99,100		$ 94,720
Property and equipment	10,233		10,233		10,781
Goodwill	871		871		871
USA
Net sales	15,840	13,000	45,360	41,070
External sales	14,160	11,820	41,470	37,540
Intersegment sales	1,680	1,180	3,890	3,530
Operating profit	2,600	1,660	6,040	6,450
Depreciation and amortization expense	40	30	210	90
Capital expenditures	(40)	540	280	850
Total assets less intersegment	31,050		31,050		29,760
Property and equipment	3,550		3,550		870
Goodwill	870		870		870
Other Foreign
Net sales	1,650	1,290	4,810	4,330
External sales	910	720	2,610	2,300
Intersegment sales	740	570	2,200	2,020
Operating profit	140	20	300	230
Depreciation and amortization expense	0	0	20	20
Capital expenditures	10	360	20	1,130
Total assets less intersegment	3,570		3,570		2,850
Property and equipment	170		170		190
Europe (UK)
Net sales	2,380	2,220	7,240	7,350
External sales	2,380	2,220	7,240	7,350
Operating profit	20	30	(20)	210
Depreciation and amortization expense	0	0	0	10
Interest expense	0	0	10	0
Income tax expense	10	10	10	50
Total assets less intersegment	5,130		5,130		4,360
Property and equipment	0		0		10
Mexico
Net sales	1,220	1,150	3,090	3,830
External sales	880	770	2,080	2,700
Intersegment sales	340	380	1,010	1,130
Operating profit	20	(30)	(390)	130
Depreciation and amortization expense	40	30	120	90
Capital expenditures	20	90	70	200
Total assets less intersegment	5,450		5,450		5,130
Property and equipment	2,100		2,100		2,140
Asia
Net sales	13,340	12,680	43,970	40,270
External sales	4,620	4,800	12,490	12,790
Intersegment sales	871	7,880	31,480	27,490
Operating profit	1,040	630	2,870	1,810
Depreciation and amortization expense	140	40	400	190
Income tax expense	160	290	670	800
Capital expenditures	120	20	310	50
Total assets less intersegment	23,310		23,310		20,970
Property and equipment	3,100		3,100		3,170
Canada
Net sales	2,600	2,080	7,500	6,390
External sales	2,600	2,080	7,470	6,380
Intersegment sales	0	0	30	20
Operating profit	250	320	770	750
Depreciation and amortization expense	30	20	80	50
Income tax expense	100	20	320	170
Total assets less intersegment	6,000		6,000		6,640
Property and equipment	1,180		1,180		1,260
Latin America
Net sales	2,010	1,740	6,450	5,270
External sales	1,910	1,600	6,260	4,910
Intersegment sales	110	140	190	350
Operating profit	210	160	810	520
Depreciation and amortization expense	10	10	30	30
Interest expense	10	10	40	30
Income tax expense	0	150	130	210
Capital expenditures	0	0	10	0
Total assets less intersegment	5,460		5,460		5,270
Property and equipment	50		50		70
Corporate
Net sales	0	0	0	750
Intersegment sales	0	0	0	75
Operating profit	(2,460)	(1,610)	(6,330)	(4,960)
Depreciation and amortization expense	180	90	430	190
Interest expense	20	20	50	60
Income tax expense	380	50	810	390
Total assets less intersegment	19,130		19,130		19,740
Intersegment
Net sales	(11,580)	(10,150)	(38,800)	(35,290)
Operating profit	10	(170)	110	(60)
Depreciation and amortization expense	(10)	0	(20)	(30)
Income tax expense	0	$ (30)	10	$ 10
Property and equipment	$ 80		$ 80		$ 70