| 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 |
