	Three Months Ended October 31,						Nine Months Ended October 31,
	2018			2017			2018			2017
	(in thousands)
Income (loss) before income taxes	$	(8,429	)	$	15,437		$	(23,537	)	$	23,736
Provision for income taxes		592			3,713			2,367			6,145
Effective tax rate	(7.0)%				24.1	%	(10.1)%				25.9	%

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law in the United States. The new tax legislation contains several provisions that will impact the Company, including the reduction of the corporate income tax rate from 35% to 21%, acceleration of business asset expensing, and a reduction in the amount of executive pay that may qualify as a tax deduction, among others. Income tax expense recorded for the three and nine months ended October 31, 2018 includes the impact of the new tax legislation as currently interpreted by the Company.

Due to the complexities of the new tax legislation, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allows for the recognition of provisional amounts during a measurement period. The measurement period begins in the reporting period that includes the Tax Act’s enactment date and ends when the additional information is obtained, prepared, or analyzed to complete the accounting requirements under ASC Topic 740. The measurement period should not extend beyond one year from the enactment date. The Company recorded provisional estimates for the fiscal year ended January 31, 2018 for the following: the revaluation of deferred tax assets and liabilities to reflect the 21 percent corporate tax rate, whether to elect to expense or depreciate new capital equipment, and the US state tax impact to the aforementioned items.

The Company has completed its analysis of the impact of the Tax Act for the fiscal year ended January 31, 2018 and recorded adjustments to the provisional amounts on its financial statements in the three and nine months ended October 31, 2018, which reduced the Company’s effective tax rate. The Company recorded an increase to deferred tax assets of approximately $83,000 and a decrease to long term tax liability of approximately $170,000, with a corresponding decrease to income tax expense of approximately $252,000 related to the reduction of the corporate tax rate. The income tax benefit was primarily the result of the clarifying guidance issued by the IRS in regards to the corporate alternative minimum tax rate for fiscal year taxpayers.

The decreased income tax expense for the three and nine months ended October 31, 2018 was primarily due to a reduction in the U.S. statutory rate from 35% to 21%, which was partially offset by a decrease in the proportion of profits generated in lower tax jurisdictions and losses incurred in jurisdictions for which the Company was not able to recognize a related tax benefit.

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The tax years 2013 to 2017 remain open to examination by U.S. federal tax authorities. The tax years 2008 to 2017 remain open to examination by U.S. state tax authorities. The tax years 2012 to 2017 remain open to examination by foreign tax authorities. Fiscal years outside of the normal statute of limitations remain open to audit by tax authorities due to tax attributes generated in those earlier years, which have been carried forward and may be audited in subsequent years when utilized.

The Company regularly assesses the likelihood of adverse outcomes resulting from potential tax examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of October 31, 2018, the gross amount of unrecognized tax benefits was approximately $36.2 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities could result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary. The Company does not anticipate significant changes to its uncertain tax positions during the next twelve months.