Income Tax Income Tax Disclosure

3 Months Ended

Apr. 30, 2020

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, R&D 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, 2020		April 30, 2019
Effective tax rate	(13.8)	%	12.2	%

The decrease in the effective tax rate year-over-year was driven primarily by an increase in the R&D tax credit as a percentage of estimated pre-tax income in the current fiscal year.

The Company's discrete tax benefit was as follows:

	Three Months Ended
	April 30, 2020		April 30, 2019
Discrete tax benefit	$	331	$	1,168

The Company operates both domestically and internationally. As of April 30, 2020, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.