Income Tax Income Tax Disclosure

3 Months Ended

Apr. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure

INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate, primarily due to state and local taxes, research and development tax credit, foreign-derived intangible income deduction, and tax-exempt insurance premiums. The Company’s effective tax rates were as follows:

	Three Months Ended
	April 30, 2019		April 30, 2018
Effective tax rate	12.2	%	18.6	%

The decrease in the effective tax rate year-over-year is primarily due to discrete items in the current year. The Company’s effective tax rates, excluding discrete items, in the three-month periods ended April 30, 2019, and 2018, were 20.0 percent and 19.5 percent, respectively.

The Company’s total discrete tax items for both three-month periods in the table below relate to the vesting or settlement of equity awards.

	Three Months Ended
	April 30, 2019		April 30, 2018
Total discrete tax benefit	$	1,168	$	243

The Company operates both domestically and internationally. As of April 30, 2019, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.