Income Taxes

6 Months Ended

Jul. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 10 – INCOME TAXES

The Company recorded an income tax provision of $6.4 million and $5.3 million for the three months ended July 31, 2022 and 2021, respectively.

The effective tax rate was 20.9% and 21.5% for the three months ended July 31, 2022 and 2021, respectively. The significant components of the effective tax rate changed primarily due to the release of certain foreign valuation allowances, partially offset by return to provision adjustments.

The Company recorded an income tax provision of $12.4 million and $8.6 million for the six months ended July 31, 2022 and 2021, respectively.

The effective tax rate was 22.2% and 22.9% for the six months ended July 31, 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 July 31, 2022, the Company had no deferred tax liability for the undistributed foreign earnings of approximately $215.9 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.