| 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 |
