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INCOME TAXES | 12 Months Ended
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Jan. 31, 2018
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 14. INCOME TAXES The (benefit) provision for income taxes for fiscal years 2017, 2016 and 2015 consists of the following (amounts in thousands):
|  | 2017 |  |  | 2016 |  |  | 2015 |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | (2,094 | ) |  | $ | 12,197 |  |  | $ | 15,804 |
Deferred |  |  | (19,528 | ) |  |  | 3,568 |  |  |  | (2,867 | )
|  |  | (21,622 | ) |  |  | 15,765 |  |  |  | 12,937 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 1,180 |  |  |  | 2,153 |  |  |  | 2,651 |
Deferred |  |  | 923 |  |  |  | (525 | ) |  |  | (1,480 | )
|  |  | 2,103 |  |  |  | 1,628 |  |  |  | 1,171 |
(Benefit) provision for income taxes |  | $ | (19,519 | ) |  | $ | 17,393 |  |  | $ | 14,108 |
The tax effects of significant temporary differences representing deferred tax assets and liabilities are as follows as of January 31, 2018 and 2017 (amounts in thousands):
|  | January 31, |
|  | 2018 |  |  | 2017 |
Assets: |  |  |  |  |  |  |  |
Section 45 credit carryforward |  | $ | 3,897 |  |  | $ | — |
Accrued liabilities |  |  | 687 |  |  |  | 539 |
State net operating loss carryforward |  |  | 241 |  |  |  | 412 |
Other items |  |  | 576 |  |  |  | 513 |
Valuation allowance |  |  | (241 | ) |  |  | (417 | )
Total |  |  | 5,160 |  |  |  | 1,047 |
Liabilities: |  |  |  |  |  |  |  |
Basis in pass through entities, including depreciation |  |  | (26,717 | ) |  |  | (41,080 | )
Other |  |  | (149 | ) |  |  | (278 | )
Total |  |  | (26,866 | ) |  |  | (41,358 | )
Net deferred tax liability |  | $ | (21,706 | ) |  | $ | (40,311 | )
The Company has a valuation allowance of approximately $241,000 and $417,000 at January 31, 2018 and 2017, respectively. The Company decreased the valuation allowance by $176,000, $734,000 and $601,000 in fiscal years 2017, 2016 and 2015, respectively. These adjustments to the valuation allowance are a result of estimates of realizing certain future state tax benefits and federal capital loss carryforwards. The Tax Act signed into law on December 22, 2017, reduced the federal corporate income tax rate to 21% effective January 1, 2018. The Tax Act also makes numerous other changes to the U.S. tax code, including, but not limited to, permitting full expensing of qualified property acquired after September 27, 2017, and expanding prior limitations on the deductibility of certain executive compensation. The SEC issued Staff Account bulleting 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. In recognition of the inherent complexities associated with accounting for the effects of the Tax Act, SAB 118 provides a measurement period of up to one year from enactment of the Tax Act for companies to complete the accounting for the tax effects of the Tax Act. Although the accounting for the tax effects of the Tax Act are not yet complete, at January 31, 2018 the Company made a preliminary estimate of the effect of the tax rate reducing on the existing deferred tax balances and recorded a tax benefit of approximately $14,362,000 to remeasure the deferred tax liability at the new 21% rate. The Company will continue to refine the calculation as additional analysis is completed; including a final determination of the deferred tax balances at January 31, 2018 after the federal income tax return is filed, and as further guidance is provided by the Internal Revenue Service. Through its refined coal operation, the Company earns production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years. The Company paid income taxes of approximately $6,920,000, $7,090,000 and $20,253,000 in fiscal years 2017, 2016 and 2015, respectively. The Company received refunds of income taxes of approximately $476,000, $150,000 and $132,000 in fiscal years 2017, 2016 and 2015, respectively. The effective income tax rate on consolidated pre-tax income or loss differs from the federal income tax statutory rate for fiscal years 2017, 2016 and 2015 as follows:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Federal income tax at statutory rate |  |  | 33.8 | % |  |  | 35.0 | % |  |  | 35.0 | %
State and local taxes, net of federal tax benefit |  |  | 3.2 |  |  |  | 2.3 |  |  |  | (1.3 | )
Section 45 production tax credits |  |  | (45.4 | ) |  |  | — |  |  |  | — |
Tax Cuts and Jobs Act |  |  | (56.6 | ) |  |  | — |  |  |  | — |
Net change in valuation allowance |  |  | — |  |  |  | — |  |  |  | (1.2 | )
Domestic production activities deduction |  |  | (5.9 | ) |  |  | (2.9 | ) |  |  | (1.7 | )
Uncertain tax positions |  |  | 1.4 |  |  |  | 0.8 |  |  |  | 1.0 |
Noncontrolling interest |  |  | (7.6 | ) |  |  | (4.6 | ) |  |  | (4.4 | )
Other |  |  | 0.2 |  |  |  | — |  |  |  | — |
Total |  |  | (76.9 | )% |  |  | 30.6 | % |  |  | 27.4 | %
The Company files a U.S. federal income tax return and income tax returns in various states. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for fiscal years ended January 31, 2013 and prior. The Company applies the provisions of ASC 740-10-25-5 for uncertain tax positions. As of January 31, 2018, total unrecognized tax benefits were approximately $1,963,000, and accrued penalties and interest were approximately $362,000. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $1,518,000. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a material effect on results of operations or financial position. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (dollars in thousands):
|  | Years Ended |
|  | January 31, |
|  | 2018 |  |  | 2017 |
Unrecognized tax benefits, beginning of year |  | $ | 2,096 |  |  | $ | 987 |
Changes for tax positions for prior years |  |  | 269 |  |  |  | 1,109 |
Changes for tax positions for current year |  |  | (40 | ) |  |  | — |
Unrecognized tax benefits, end of year |  | $ | 2,325 |  |  | $ | 2,096 |

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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