Income Taxes

6 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended July 31, 2021 and 2020, our effective tax rates were 13.8% and (0.6)%, respectively. During the three months ended July 31, 2021 as compared to the prior year period, our effective tax rate increased primarily due to the reduced impact from excess tax benefits related to equity compensation as well as the establishment of valuation allowance on certain tax attributes. We recognized such excess tax benefits in our provision for income taxes of $18 million and $22 million for the three months ended July 31, 2021 and 2020, respectively.

For the six months ended July 31, 2021 and 2020, our effective tax rates were 13.4% and 2.1%, respectively. During the six months ended July 31, 2021 as compared to the prior year period, our effective tax rate increased primarily due to the reduced impact from excess tax benefits related to equity compensation as well as the establishment of valuation allowance on certain tax attributes. We recognized such excess tax benefits in our provision for income taxes of $35 million and $42 million for the six months ended July 31, 2021 and 2020, respectively.