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Income Taxes | 12 Months Ended
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Jan. 31, 2019
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
| 14. | INCOME TAXES
The (benefit) provision for income taxes for fiscal years 2018, 2017 and 2016 consist of the following (amounts in thousands):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 81 |  |  | $ | (2,094 | ) |  | $ | 12,197 |
Deferred |  |  | (23,547 | ) |  |  | (19,528 | ) |  |  | 3,568 |
|  |  | (23,466 | ) |  |  | (21,622 | ) |  |  | 15,765 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 361 |  |  |  | 1,180 |  |  |  | 2,153 |
Deferred |  |  | 183 |  |  |  | 923 |  |  |  | (525 | )
|  |  | 544 |  |  |  | 2,103 |  |  |  | 1,628 |
(Benefit) provision for income taxes |  | $ | (22,922 | ) |  | $ | (19,519 | ) |  | $ | 17,393 |
The tax effects of significant temporary differences representing deferred tax assets and liabilities are as follows (amounts in thousands):
|  | January 31, |
|  | 2019 |  |  | 2018 |
Assets: |  |  |  |  |  |  |  |
General business credit carryforward |  | $ | 26,523 |  |  | $ | 3,897 |
Accrued liabilities |  |  | 308 |  |  |  | 687 |
State net operating loss carryforward |  |  | 294 |  |  |  | 241 |
Other items |  |  | 647 |  |  |  | 576 |
Valuation allowance |  |  | (232 | ) |  |  | (241 | )
Total |  |  | 27,540 |  |  |  | 5,160 |
Liabilities: |  |  |  |  |  |  |  |
Basis in pass through entities, including depreciation |  |  | (25,725 | ) |  |  | (26,717 | )
Other |  |  | (157 | ) |  |  | (149 | )
Total |  |  | (25,882 | ) |  |  | (26,866 | )
Net deferred tax asset (liability) |  | $ | 1,658 |  |  | $ | (21,706 | )
The Company has a general business credit carryforward of approximately $26.5 million and approximately $3.9 million at January 31, 2019 and 2018, respectively. The Company can carry these credits forward for up to twenty years. The carryforward period begins to expire in fiscal year 2037. The Company has a valuation allowance of approximately $232,000 and $241,000 at January 31, 2019 and 2018, respectively. The Company decreased the valuation allowance by $9,000, $176,000 and $734,000 in fiscal years 2018, 2017 and 2016, respectively. These adjustments to the valuation allowance are a result of estimates of realizing certain future state tax benefits. 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 was 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 finalized its analysis in fiscal year 2018, and as a result, recorded a tax provision of approximately $272,000. 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. These credits increased the income tax benefit by approximately $21.2 million and $11.5 million during fiscal years 2018 and 2017, respectively. During fiscal year 2018, the company recognized an income tax benefit (net of uncertain tax position expense) of approximately $4.6 million for federal and state research and experimentation credits. These credits recorded during fiscal year 2018 related to fiscal years 2014 to 2017 as well as an estimated tax benefit for fiscal year 2018. The Company paid income taxes of approximately $855,000, $6,920,000 and $7,090,000 in fiscal years 2018, 2017 and 2016, respectively. The Company received refunds of income taxes of approximately $1,132,000, $476,000 and $150,000 in fiscal years 2018, 2017 and 2016, respectively. The effective income tax rate on consolidated pre-tax income or loss differs from the federal income tax statutory rate for fiscal years 2018, 2017 and 2016 as follows:
|  | 2018 |  |  | 2017 |  |  | 2016 |
Federal income tax at statutory rate |  |  | 21.0 | % |  |  | 33.8 | % |  |  | 35.0 | %
State and local taxes, net of federal tax benefit |  |  | 3.6 |  |  |  | 3.2 |  |  |  | 2.3 |
Section 45 production tax credits |  |  | (145.2 | ) |  |  | (45.4 | ) |  |  | — |
Research and experimentation credits |  |  | (77.8 | ) |  |  | — |  |  |  | — |
Tax Cuts and Jobs Act |  |  | 1.9 |  |  |  | (56.6 | ) |  |  | — |
Domestic production activities deduction |  |  | — |  |  |  | (5.9 | ) |  |  | (2.9 | )
Uncertain tax positions |  |  | 47.1 |  |  |  | 1.4 |  |  |  | 0.8 |
Noncontrolling interest |  |  | (9.9 | ) |  |  | (7.6 | ) |  |  | (4.6 | )
Other |  |  | 2.2 |  |  |  | 0.2 |  |  |  | — |
Total |  |  | (157.1 | )% |  |  | (76.9 | )% |  |  | 30.6 | %
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, 2014 and prior. The Company applies the provisions of ASC 740-10-25-5 for uncertain tax positions. As of January 31, 2019, total unrecognized tax benefits were approximately $8,785,000, and accrued penalties and interest were approximately $447,000. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $8,304,000. 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):
|  | Fiscal Year |
|  | 2018 |  |  | 2017 |
Unrecognized tax benefits, beginning of year |  | $ | 2,325 |  |  | $ | 2,096 |
Changes for tax positions for prior years |  |  | 5,973 |  |  |  | 269 |
Changes for tax positions for current year |  |  | 934 |  |  |  | (40 | )
Unrecognized tax benefits, end of year |  | $ | 9,232 |  |  | $ | 2,325 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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