Income Tax Income Tax Disclosure

6 Months Ended

Jul. 31, 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				Six Months Ended
	July 31, 2019		July 31, 2018		July 31, 2019		July 31, 2018
Effective tax rate	20.0	%	16.8	%	15.5	%	17.9	%

Timing of discrete items related to the vesting or settlement of equity awards was the primary driver of the year-over-year changes in the effective tax rate for the three- and six-month periods ended July 31, 2019. The Company’s effective tax rates, excluding discrete items, in the three-month periods ended July 31, 2019, and 2018, were 19.1 percent and 19.5 percent, respectively. The Company’s effective tax rates, excluding discrete items, in the six-month periods ended July 31, 2019, and 2018, were 19.6 percent and 19.5 percent, respectively.

The Company recognized a discrete tax benefit related to the vesting or settlement of equity awards as follows:

	Three Months Ended				Six Months Ended
	July 31, 2019		July 31, 2018		July 31, 2019		July 31, 2018
Discrete tax benefit	$	22	$	471	$	1,190	$	714

The Company operates both domestically and internationally. As of July 31, 2019, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.