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Income Taxes
6 Months Ended
Jul. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 8 – INCOME TAXES

The Company recorded an income tax expense of $6.1 million and $4.9 million for the three months ended July 31, 2015 and 2014, respectively.  

The effective tax rate was 33.8% and 28.7% for the three months ended July 31, 2015 and 2014, respectively. The increase in the effective tax rate was primarily due to not recognizing tax benefits on losses incurred by certain foreign operations.

The Company recorded an income tax expense of $9.2 million and $8.3 million for the six months ended July 31, 2015 and 2014, respectively.  

The effective tax rate was 37.2% and 29.9% for the six months ended July 31, 2015 and 2014, respectively. The increase in the effective tax rate was primarily due to not recognizing tax benefits on losses incurred by certain foreign operations and certain costs related to the operating efficiency initiatives and other items (see note 13) resulting in deferred taxes that were valued.

The effective tax rate for the three and six months ended July 31, 2015 differs from the U.S. statutory tax rate of 35.0% primarily due to not recognizing tax benefits on losses incurred by certain foreign operations partially offset by foreign earnings being taxed at rates lower than the U.S. statutory tax rate. Also included in the six months ended July 31, 2015 is the impact of certain costs related to the operating efficiency initiatives and other items (see note 13) resulting in deferred taxes that were valued.

The effective tax rate for the three and six months ended July 31, 2014 differs from the U.S. statutory tax rate of 35.0%, primarily due to foreign earnings being taxed at rates lower than the U.S. statutory tax rate, partially offset by not recognizing tax benefits on losses incurred by certain foreign operations.