INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2021

INCOME TAXES [Abstract]

Schedule of Components of Income Tax Expense

The provision for income tax expense by fiscal year consists of the following (in thousands):

	2021		2020
Current
Federal	$	(683)	$	3,768
Foreign	2		5
State	309		999
Current Income Tax Total	(372)		4,772
Deferred
Federal	2,440		(610)
Foreign	(48)		(3)
State	368		121
Deferred Income Tax Total	2,760		(492)
Total Income Tax Expense	$	2,388	$	4,280

Schedule of Effective Income Tax Rate Reconciliation

Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows:

	2021		2020
U.S. federal income tax rate	21.0	%	21.0	%
Depletion deductions allowed for mining	(5.4)		(4.8)
State income tax expense, net of federal tax expense	5.1		4.3
Nondeductible Officer Compensation	4.0		0.5
Tax Credits	(2.5)		(1.1)
Statutory rate change of foreign subsidiaries	(0.7)		—
Valuation Allowance - Foreign	2.5		1.3
Foreign Tax Differential	(1.5)		(0.1)
Prior year income taxes	(4.0)		(1.0)
Other	(0.8)		(1.5)
Effective income tax rate	17.7	%	18.6	%

The U.S. effective tax rate for the year ended July 31, 2021 and July 31, 2020 were 17.7% and 18.6%, based on income before taxes. The items impacting the effective tax rate were permanent items, return to provision adjustments, a deferred tax asset true-up and an increase in the foreign valuation allowance. The tax impact of the items comprising the permanent adjustments primarily consisted of depletion, stock-based compensation and tax credits.

Schedule of Deferred Tax Assets and Liabilities

The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands):`

	2021				2020
	Assets		Liabilities		Assets		Liabilities
Depreciation	$	—	$	5,870	$	—	$	3,926
Deferred compensation	1,593		—		1,779		—
Postretirement benefits	1,296		—		3,293		—
Goodwill	—		1,073		—		1,000
Lease right of use assets	—		2,160		—		2,534
Lease liabilities	2,524		—		2,918		—
Allowance for doubtful accounts	176		—		178		—
Deferred marketing expenses	—		133		—		194
Other assets	289		—		—		9
Accrued expenses	2,402		—		4,131		—
Tax credits	87		—		147		—
Amortization	1,028		—		1,048		—
Inventories	351		—		343		—
Depletion	—		166		—		173
Stock-based compensation	1,340		—		987		—
Reclamation	498		—		447		—
Other liabilities - foreign	—		86		—		133
Other assets – foreign	1,362		—		1,029		—
Valuation allowance	(1,362)		—		(1,029)		—
Total deferred taxes	$	11,584	$	9,488	$	15,271	$	7,969