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Income Taxes
6 Months Ended
Jul. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 11 – INCOME TAXES

 

The Company recorded income tax expense of $4.7 million and $3.6 million for the three months ended July 31, 2019 and 2018, respectively.

 

The effective tax rate was 21.4% and 28.3% for the three months ended July 31, 2019 and 2018, respectively. The change in the effective tax rate was primarily due to no tax benefit being recognized on losses incurred by certain foreign operations and a decrease in permanent differences.

The Company recorded income tax expense of $5.6 million and $3.5 million for the six months ended July 31, 2019 and 2018, respectively.

The effective tax rate was 20.7% and 16.8% for the six months ended July 31, 2019 and 2018, respectively. The change in the effective tax rate was primarily due to the release of valuation allowances against certain foreign deferred tax assets in the prior year.

 

The effective tax rate for the three months ended July 31, 2019 differs from the U.S. statutory tax rate of 21.0% primarily due to no tax benefit being recognized on losses incurred by certain foreign operations, partially offset by foreign profits being taxed in lower taxing jurisdictions. The effective tax rate for the six months ended July 31, 2019 differs from the U.S. statutory tax rate of 21.0% primarily due to foreign profits being taxed in lower taxing jurisdictions, partially offset by no tax benefit being recognized on losses incurred by certain foreign operations.

 

The effective tax rate for the three months ended July 31, 2018 differs from the U.S. statutory tax rate of 21.0% primarily due to no tax benefit being recognized on losses incurred by certain foreign operations, partially offset by foreign profits being taxed in lower taxing jurisdictions. The effective tax rate for the six months ended July 31, 2018 differs from the U.S. statutory tax rate of 21.0% primarily due to the release of a valuation allowance against certain foreign deferred tax assets and foreign profits being taxed in lower taxing jurisdictions.