Income Taxes

3 Months Ended

Apr. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company determines its income tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items occurring during the periods presented. The Company recorded income tax benefit of $0.1 million and an expense of $0.7 million for the three months ended April 30, 2020 and 2019, respectively.

The income tax benefit for the three months ended April 30, 2020 was primarily attributable to a $0.7 million of excess tax benefits from stock based compensation deductions in the United Kingdom, partially offset by state taxes, foreign income and foreign withholding taxes. The income tax expense for the three months ended April 30, 2019 was primarily attributable to state taxes, foreign income and foreign withholding taxes.

The Company is subject to taxation in the United States and various other state and foreign jurisdictions. The material jurisdictions in which the Company is subject to potential examination include the United States, Israel, Argentina, and the United Kingdom. The Company is currently not under examination by the Internal Revenue Service (IRS) or by any local taxing authority for any tax years. All tax years remain open to examination by the IRS and local taxing authorities.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The Company is currently evaluating the impact of CARES, but does not

expect CARES to have a significant impact on its income tax provision.