NOTE 12 — INCOME TAXES

The Company’s income tax expense amounts for the nine months ended October 31, 2017 and 2016 differed from corresponding amounts computed by applying the federal corporate income tax rate of 35% to the amounts of income before income taxes for the periods as shown in the table below.

	Nine Months Ended October 31,
	2017			2016
Computed expected income tax expense	$	36,062		$	29,318
Increase (decrease) resulting from:
State income taxes, net of federal tax benefit	4,633			3,296
Domestic production activities deduction	(3,036		)	(2,345		)
Stock option exercises	(866		)	(2,807		)
Exclusion of non-controlling interests	(106		)	(2,334		)
Adjustments and other differences	1,051			1,994

	$	37,738		$	27,122

As of October 31, 2017 and January 31, 2017, the condensed consolidated balance sheets included prepaid income taxes in the amounts of $3.5 million and $3.9 million, respectively. As of October 31, 2017, the Company does not believe that it has any material uncertain income tax positions reflected in its accounts.

The Company is subject to income taxes in the United States of America, the Republic of Ireland, the United Kingdom and various other state and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is no longer subject to income tax examinations by tax authorities for its fiscal years ended on or before January 31, 2014 except for a few notable exceptions relevant to the Company including the Republic of Ireland, the United Kingdom, California and Texas where the open periods are one year longer. The Company received notice from Internal Revenue Service on November 7, 2017 that its federal consolidated tax return for the tax year ended January 31, 2016 has been selected for audit. At this time, the Company does not have reason to expect any material changes to its income tax liability resulting from the outcome of this audit.