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Income Taxes
3 Months Ended
Apr. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

For the three months ended April 30, 2018 and 2017, our effective tax rates were 3.9% and 6.2%, respectively. During the three months ended April 30, 2018 as compared to the prior year period, our effective tax rate decreased primarily due to the reduction in the Federal tax rate as a result of the Tax Act, partially offset by a decrease in excess tax benefits related to equity compensation. We recognized excess tax benefits in our provision for income taxes of $9.7 million and $13.9 million for the three months ended April 30, 2018 and 2017, respectively.

On May 1, 2018 the Internal Revenue Service (IRS) issued a closing audit notice related to the income tax return for fiscal year ended January 31, 2015. The settlement of the IRS audit will result in an immaterial impact to our financial statements.    

The SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows companies the ability to record provisional amounts during a measurement period not to extend more than one year beyond the Tax Act enactment date. Since the Tax Act was passed late in 2017 and further guidance and accounting interpretations are expected over the next 12 months, our provisional estimate on the effect of the Tax Act in our financial statements remains subject to change. We have not made any material changes to our provisional estimates from the prior period.