Income Taxes (Notes)

9 Months Ended

Oct. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective income tax rate for the three months ended October 31, 2017 was 33.4% versus 34.6% in the prior year. The effective income tax rate for the nine months ended October 31, 2017 was 32.9% versus 33.0% in the prior year. The effective income tax rate for the three and nine months ended October 31, 2017 was reduced by 250 basis points and 80 basis points, respectively, as a result of the true-up of the Company's prior year tax provision in conjunction with the filing of its 2016 tax returns, partly offset by an increase of 80 basis points and 30 basis points, respectively, due to the impact of a change in federal tax legislation. Additionally, the effective income tax rate for the nine months ended October 31, 2017 was reduced by 80 basis points due to an income tax benefit of $3.5 million resulting from the implementation of ASU 2016-09, which now requires excess tax benefits and/or shortfalls related to exercises and vesting of share-based compensation to be recorded in the provision for income taxes, rather than in additional paid in capital. The effective income tax rate for the nine months ended October 31, 2016 included a decrease of 150 basis points due to an income tax benefit of $6.6 million resulting from the conclusion of a tax examination during the three months ended April 30, 2016.

During the three months ended October 31, 2017 and 2016 and nine months ended October 31, 2017, the change in the gross amount of unrecognized tax benefits and change in accrued interest and penalties was not significant. During the nine months ended October 31, 2016, the Company's gross uncertain tax positions decreased by $6.8 million and gross accrued interest and penalties were unchanged, primarily as a result of the conclusion of a tax examination during the three months ended April 30, 2016.

The Company conducts business globally, and, as a result, is subject to taxation in the U.S. and various state and foreign jurisdictions. As a matter of course, tax authorities regularly audit the Company. The Company's tax filings are currently being examined by a number of tax authorities in several jurisdictions. Ongoing audits where subsidiaries have a material presence include New York City (tax years 2011-2013) and New York State (tax years 2012-2014). Tax years from 2010-present are open to examination in the U.S. Federal jurisdiction and 2006-present are open to examination in various state, local and foreign jurisdictions. As part of these audits, the Company engages in discussions with taxing authorities regarding tax positions. As of October 31, 2017, unrecognized tax benefits are not expected to change materially in the next 12 months. Future developments may result in a change in this assessment.