v3.26.3
INCOME TAXES Level 1 (Notes)
 12 Months Ended
Jul. 31, 2026
INCOME TAXES [Abstract]  
Income Taxes INCOME TAXES
    We account for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax reporting bases of assets and liabilities are are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that that position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

Income (loss) before provision for income taxes includes the following components (in thousands):

Year Ended July 31,
202620252024
Domestic$69,411 $66,285 $48,995 
Foreign72 (74)656 
Income before income taxes$69,483 $66,211 $49,651 
The provision for income tax expense by fiscal year consists of the following (in thousands):
202620252024
Current
Federal$8,609 $8,790 $6,059 
State1,915 2,959 2,243 
Foreign(9)226 226 
Current Income Tax Total10,515 11,975 8,528 
Deferred
Federal2,057 433 934 
State63 (233)778 
Foreign(121)40 (15)
Deferred Income Tax Total1,999 240 1,697 
Total Income Tax Expense$12,514 $12,215 $10,225 
    
Income taxes paid (net of refunds) consists of the following (in thousands):
Year Ended July 31,
202620252024
Federal$8,483 $9,275 $6,481 
State1,661 2,877 3,516 
Foreign189 446 9 
Total income taxes paid$10,333 $12,598 $10,006 

Income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in Mississippi; amounts paid were $0.1 million, $0.8 million, and $0.6 million in fiscal years 2026, 2025, and 2024 respectively. Additionally, income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in Georgia in 2024; amounts paid were $0.6 million.

    The Company has elected to retroactively adopt the guidance in ASU 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate for the year ended July 31, 2026 in accordance with ASU 2023-09:
202620252024
Amount%Amount%Amount%
U.S. federal income tax$14,591 21.0 %$13,904 21.0 %$10,427 21.0 %
State income tax expense, net of federal tax expense (a)1,562 2.2 2,153 3.3 2,387 4.8 
Foreign tax effects(216)(0.3)224 0.3 202 0.4 
Effect of cross border tax laws
U.S tax impacts of foreign branch12 — 249 0.4 658 1.3 
Other(397)(0.6)(695)(1.1)(560)(1.1)
Tax credits(217)(0.3)(932)(1.4)(247)(0.5)
Nontaxable or nondeductible items
Nondeductible officer compensation1,440 2.1 870 1.3 1,070 2.2 
Depletion deductions allowed for mining(2,792)(4.0)(2,981)(4.5)(2,705)(5.4)
Stock based compensation(1,737)(2.5)(693)(1.0)(1,022)(2.1)
Other nontaxable or nondeductible item217 0.3 132 0.2 320 0.6 
Other adjustments51 0.1 (16)(0.1)(305)(0.6)
Effective income tax$12,514 18.0 %$12,215 18.4 %$10,225 20.6 %
(a) The following jurisdictions made up a majority (greater than 50 percent) of the tax effect in this category for each of the respective fiscal years: California, Illinois, Pennsylvania and Indiana in fiscal year 2026; Georgia, Mississippi, Illinois and California in fiscal year 2025; and Georgia, Mississippi, Illinois and California in fiscal year 2024.
    
    The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands):

20262025
AssetsLiabilitiesAssetsLiabilities
Amortization$— $5,590 $— $5,863 
Depreciation— 6,613 — 6,237 
Lease liabilities3,690 — 3,961 — 
Lease right of use assets— 3,264 — 3,670 
Accrued expenses3,576 — 4,494 — 
Federal & State NOL carryforward
2,011 — 2,470 — 
Stock-based compensation2,239 — 2,214 — 
Foreign NOL carryforward
2,007 — 2,197 — 
Deferred compensation1,972 — 1,931 — 
Capitalized R&D442 — 1,029 — 
Reclamation695 — 785 — 
Other assets516 — 555 — 
Postretirement benefits420 — 422 — 
Inventories172 — 185 — 
Depletion— 106 — 121 
Allowance for credit losses
64 — 213 — 
Other liabilities— 383 — 428 
Valuation allowance(2,408)— (2,846)— 
Total deferred taxes$15,396 $15,956 $17,610 $16,319 
     Deferred tax assets and liabilities related to leases decreased as leases expire.

We recorded a valuation allowance of $2.4 million and $2.8 million as of July 31, 2026 and July 31, 2025, respectively, for the amount of the deferred tax benefit related to our foreign net operating loss carryforwards and certain state net operating loss carryforwards since we believe it is unlikely we will realize the benefit of these tax attributes in the future. As of July 31, 2026, we have total net operating loss carryforwards from state jurisdictions of approximately $13.7 million. The carryforward expiration dates vary by state.

With the exception of our foreign subsidiary in Canada, none of our foreign subsidiaries have generated any untaxed foreign income, therefore we have not provided for any related income taxes for these subsidiaries.

We had no liabilities for unrecognized tax benefits based on tax positions related to the current and prior fiscal years as of July 31, 2026 and 2025; correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in either of these fiscal years.

We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. We were audited by the Internal Revenue Service ("IRS") for fiscal year 2020 with no adjustments upon closure of the audit. The federal tax returns for fiscal years 2023-2025 remain open for examination and during fiscal year 2026 the IRS commenced an examination of the Company's U.S income tax returns for fiscal year 2024. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years. The state impact of any federal income tax changes remains subject to examination by various states for a period of up to one year after formal notification to the states. There are a limited number of open state, local and foreign income tax audits in which no material issues have been preliminarily identified. There are no material open or unsettled foreign income tax audits. We believe our accrual for tax liabilities is adequate for all open audit years.