XML 28 R19.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Oct. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 12. Income Taxes

 

The Company’s income tax provision was approximately $8.0 million and $9.4 million for the three months ended October 31, 2025 and 2024, respectively. The Company’s income tax provision was approximately $13.7 million and $17.6 million for the nine months ended October 31, 2025 and 2024, respectively.

 

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. 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.

 

On July 4, 2025, the OBBBA was signed into law. The OBBBA contains various tax reform provisions affecting businesses. We are still evaluating any impact this may have on our effective tax rate in the current year. In addition, we do anticipate that certain tax provisions in the OBBBA, such as the extension of bonus depreciation for assets placed in service after January 19, 2025, to result in current deductions that will lower cash paid for income taxes for 2025. The OBBBA made changes to the 45Z and 45Q tax credits that the Company intends to take advantage of which could materially impact our effective tax rate. We continue to evaluate the tax and other provisions of the OBBBA and the potential effects on financial position, results of operations, and cash flows.

 

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal

income tax examination for the years ended January 31, 2015 through January 31, 2022 related to refined coal production tax credits pursuant to IRC Section 45 and research and experimentation credits pursuant to IRC Section 41 claimed during those years. The IRS has given us notice they plan to deny these credits. We plan to vigorously defend these credits.

 

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.

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, for the nine-month periods ended October 31, 2025 and 2024, is as follows (amounts in thousands):

 

   Nine Months Ended
October 31,		 
   2025   2024 
           
Unrecognized tax benefits, beginning of period  $18,978   $18,965 
Changes for prior years’ tax positions   20    21 
Changes for current year tax positions   
-
    
-
 
Unrecognized tax benefits, end of period  $18,998   $18,986 

 

At October 31, 2025 and January 31, 2025 the unrecognized tax benefits were included within the following lines on the accompanying Consolidated Balance Sheets (amounts in thousands):

 

   October 31,
2025		   January 31,
2025		 
         
Refundable income taxes  $2,002   $2,002 
Deferred taxes   8,583    12,037 
Long-term taxes payable   7,788    4,334 
Other long-term liabilities   625    605 
           
Unrecognized tax benefits, end of period  $18,998   $18,978