Income Taxes (Tables)

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Reconciliation of income tax computed at the federal statutory rate to the company's effective income tax rate

The reconciliation of income tax computed at the federal statutory rate to the Company's effective income tax rate was as follows:

	For the years ended January 31,
	2021		2020		2019
Tax at U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of U.S. federal tax benefit	2.0		0.8		1.7
Tax credit for research activities	(13.4)		(4.6)		(2.3)
Tax benefit from foreign-derived intangible income	(1.5)		(1.1)		(0.8)
Tax benefit on insurance premiums	(2.5)		(1.2)		(0.8)
Change in uncertain tax positions	0.8		0.3		—
Foreign tax rate difference	(2.4)		—		0.1
Impact of settlement of stock-based awards	(0.1)		(3.3)		(2.4)
Change in valuation allowances	(1.7)		0.8		—
Non-deductible compensation	2.0		0.8		—
Other, net	(2.1)		—		(0.8)
Effective Tax Rate	2.1	%	13.5	%	15.7	%

Significant components of the company's income tax provision

The expense (benefit) for income taxes consists of:

	For the years ended January 31,
	2021		2020		2019
Current expense (benefit):
Federal	$	3,500	$	3,401	$	6,910
State	688		416		1,099
Foreign	529		98		735
	4,717		3,915		8,744
Deferred expense (benefit):
Federal	(1,508)		1,271		1,018
State	(131)		204		73
Foreign	(2,681)		31		(138)
	(4,320)		1,506		953
Income tax expense	$	397	$	5,421	$	9,697

Significant components of the company's deferred tax assets and liabilities

Significant components of the Company's deferred tax assets and liabilities were as follows:

	As of January 31,
	2021		2020
Deferred tax assets:
Accounts receivable	$	412	$	286
Inventories	1,487		1,152
Accrued vacation	966		778
Insurance obligations	150		205
Warranty obligations	441		454
Postretirement benefits	2,106		2,042
Uncertain tax positions	429		445
Share-based compensation	2,239		1,927
Tax loss carryforwards	6,684		3,929
Leases	1,541		962
Other accrued liabilities	1,472		952
	17,927		13,132
Valuation allowance	—		(630)
	17,927		12,502
Deferred tax (liabilities):
Depreciation and amortization	(17,599)		(18,086)
Leases	(1,541)		(962)
Other	(518)		(518)
	(19,658)		(19,566)
Net deferred tax asset (liability)	$	(1,731)	$	(7,064)

Summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties)

A summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties) is as follows:

	For the years ended January 31,
	2021		2020		2019
Gross unrecognized tax benefits at beginning of year	$	2,176	$	2,228	$	2,216
Increases in tax positions related to the current year	427		338		415
Increases in tax positions related to prior years	27		45		—
Decreases as a result of lapses in applicable statutes of limitation	(365)		(435)		(403)
Gross unrecognized tax benefits at end of year	$	2,265	$	2,176	$	2,228