Income Taxes (Tables)

12 Months Ended

Jan. 31, 2013

Income tax expense (benefit) reconciled to statutory rate

The income tax expense (benefit) for the last three years is reconciled to the statutory federal income tax rate using the liability method as follows (in thousands):



	Year ended January 31,
	2013			2012			2011
Statutory	$	(1,373	)	$	(4,674	)	$	(2,920	)
State taxes (net of federal tax)	(124		)	(799		)	(445		)
Change in valuation allowance	1,480			6,043			13,989
State rate adjustment	49			(288		)	(1,365		)
Change in unrecognized tax benefits	(246		)	(164		)	(282		)
Other	5			(63		)	30
	$	(209	)	$	55		$	9,007

Significant components of expense (benefit)

Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows:



	Year ended January 31,
	2013			2012			2011
Current
Federal	$	—		$	—		$	(459	)
State	(275		)	(173		)	(393		)
	(275		)	(173		)	(852		)
Deferred
Federal	(1,192		)	(4,581		)	(3,482		)
State	(223		)	(1,235		)	(648		)
	(1,415		)	(5,816		)	(4,130		)
Change in Valuation Allowance	1,481			6,044			13,989
	66			228			9,859
	$	(209	)	$	55		$	9,007

Deferred tax assets and liabilities

Deferred tax assets and liabilities (in thousands) are comprised of the following:



	Year ended January 31,
	2013			2012
Deferred tax assets
Accrued vacation and sick leave	$	830		$	879
Retirement plans	10,343			9,820
Insurance reserves	1,193			1,183
Warranty	451			595
Net operating loss carryforwards	12,072			11,255
Intangibles	272			338
Inventory	723			146
Other	1,250			1,486
	$	27,134		$	25,702
Deferred tax liabilities
Tax in excess of book depreciation	$	(1,540	)	$	(1,793	)
Other	(81		)	(71		)
	$	(1,621	)	$	(1,864	)
Valuation allowance	(24,601		)	(22,859		)
Net deferred tax asset	$	912		$	979
Reported as:
Current deferred tax liabilities	$	(572	)	$	(1,221	)
Long-term deferred tax assets	1,484			2,200

Unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits from February 1, 2011 to January 31, 2013 (in thousands):



	January 31,
	2013			2012
Balances as of February 1,	$	271		$	406
Increases related to prior year tax positions	56			—
Decreases related to prior year tax positions	—			—
Increases related to current year tax positions	8			—
Decreases related to lapsing of statute of limitations	(229		)	(135		)
Balance as of January 31,	$	106		$	271