Income Taxes

3 Months Ended

Apr. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 10 – INCOME TAXES

The Company recorded an income tax provision of $6.0 million and $3.3 million for the three months ended April 30, 2022 and 2021, respectively.

The effective tax rate was 23.8% and 25.5% for the three months ended April 30, 2022 and 2021, respectively. The significant components of the effective tax rate changed primarily due to the release of certain foreign valuation allowances in the current year as compared to the recording of certain foreign valuation allowances in the prior year, partially offset by return to provision adjustments.

At April 30, 2022, the Company had no deferred tax liability for the undistributed foreign earnings of approximately $197.5 million because the Company intends to permanently reinvest such earnings in its foreign operations. It is not practicable to estimate the tax liability related to a future distribution of these permanently reinvested foreign earnings.