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INCOME TAXES | 12 Months Ended
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Jan. 31, 2021
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] |
| 11. | INCOME TAXES
The (benefit) provision for income taxes for fiscal years 2020, 2019 and 2018 consist of the following (amounts in thousands):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 449 |  |  | $ | 752 |  |  | $ | 81 |
Deferred |  |  | (7,328 | ) |  |  | (10,777 | ) |  |  | (23,547 | )
|  |  | (6,879 | ) |  |  | (10,025 | ) |  |  | (23,466 | )
State and Local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 400 |  |  |  | (2,495 | ) |  |  | 361 |
Deferred |  |  | (621 | ) |  |  | (293 | ) |  |  | 183 |
|  |  | (221 | ) |  |  | (2,788 | ) |  |  | 544 |
Benefit for income taxes |  | $ | (7,100 | ) |  | $ | (12,813 | ) |  | $ | (22,922 | )
The tax effects of significant temporary differences representing deferred tax assets and liabilities are as follows (amounts in thousands):
|  | January 31, |
|  | 2021 |  |  | 2020 |
Assets: |  |  |  |  |  |  |  |
General business credit carryforward |  | $ | 40,641 |  |  | $ | 36,198 |
Accrued liabilities |  |  | 3 |  |  |  | 136 |
State net operating loss carryforward |  |  | 294 |  |  |  | 366 |
Other items |  |  | 206 |  |  |  | 230 |
Valuation allowance |  |  | (232 | ) |  |  | (232 | )
Total |  |  | 40,912 |  |  |  | 36,698 |
Liabilities: |  |  |  |  |  |  |  |
Basis in pass through entities, including depreciation |  |  | (20,076 | ) |  |  | (23,823 | )
Other |  |  | (159 | ) |  |  | (148 | )
Total |  |  | (20,235 | ) |  |  | (23,971 | )
Net deferred tax asset |  | $ | 20,677 |  |  | $ | 12,727 |
The Company has a general business credit carryforward of approximately $40.6 million and approximately $36.2 million at January 31, 2021 and 2020, 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 at January 31, 2021 and 2020 related to state net operating loss carryforwards. The Company decreased the valuation allowance by $9,000 in fiscal year 2018. These adjustments to the valuation allowance are a result of estimates of realizing certain future state tax benefits. The Company assessed all available positive and negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization of existing federal deferred tax assets. For the three year period ended January 31, 2021, the Company has a cumulative pre-tax book loss on a comprehensive basis, including the impact of an operation that has historically produced pre-tax book losses, but after tax net income. The Company expects that this entity will cease operations in fiscal year 2021. There is sufficient objectively verifiable income for management to conclude that it is more likely than not that the Company will utilize available federal deferred tax assets prior to their expiration. 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 $5.2 million, $9.0 million and $21.2 million during fiscal years 2020, 2019 and 2018, respectively. During fiscal years 2020, 2019 and 2018, the Company recognized an income tax benefit for federal and state research and experimentation credits (net of uncertain tax position expense) of approximately $0.9 million, $0.4 million and $4.6 million, respectively. 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 credits can be used to reduce future income tax liabilities for up to 20 years. The Company paid income taxes of approximately $1,274,000, $565,000 and $855,000 in fiscal years 2020, 2019 and 2018, respectively. The Company received refunds of income taxes of approximately $655,000, $11,000 and $1,132,000 in fiscal years 2020, 2019 and 2018, respectively. Reconciliations of the federal statutory tax and the Company’s income tax (benefit) expense for fiscal years 2020, 2019 and 2018 are as follows (amounts in thousands):
|  | 2020 |  |  | 2019 |  |  | 2018 |
Federal income tax at statutory rate |  | $ | (311 | ) |  | $ | (245 | ) |  | $ | 3,063 |
State and local taxes, net of federal tax benefit |  |  | (53 | ) |  |  | (427 | ) |  |  | 811 |
Section 45 production tax credits |  |  | (5,187 | ) |  |  | (9,002 | ) |  |  | (21,144 | )
Research and experimentation credits |  |  | (2,008 | ) |  |  | (899 | ) |  |  | (11,362 | )
Tax Cuts and Jobs Act |  |  | - |  |  |  | - |  |  |  | 272 |
Domestic production activities deduction |  |  | - |  |  |  | - |  |  |  | (62 | )
Uncertain tax positions |  |  | 1,046 |  |  |  | (1,435 | ) |  |  | 6,872 |
Noncontrolling interest |  |  | (643 | ) |  |  | (1,035 | ) |  |  | (1,425 | )
Other |  |  | 56 |  |  |  | 230 |  |  |  | 53 |
Total |  | $ | (7,100 | ) |  | $ | (12,813 | ) |  | $ | (22,922 | )
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 is currently undergoing a federal income tax examination for the years ended January 31, 2015, 2016 and 2017. The Company applies the provisions of ASC 740-10-25-5 for uncertain tax positions. As of January 31, 2021, total unrecognized tax benefits were approximately $8,380,000, and accrued penalties and interest were approximately $20,000. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $8,340,000. 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 (amounts in thousands):
|  | Fiscal Year |
|  | 2020 |  |  | 2019 |
Unrecognized tax benefits, beginning of year |  | $ | 7,370 |  |  | $ | 9,232 |
Changes for tax positions for prior years |  |  | (74 | ) |  |  | (2,581 | )
Changes for tax positions for current year |  |  | 1,104 |  |  |  | 719 |
Unrecognized tax benefits, end of year |  | $ | 8,400 |  |  | $ | 7,370 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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