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Income Taxes
6 Months Ended
Jul. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

For the three months ended July 31, 2018 and 2017, our effective tax rates were 10.5% and 5.7%, respectively. During the three months ended July 31, 2018 as compared to the prior year period, our effective tax rate increased primarily due to a decrease in excess tax benefits, which was partially offset by a reduced federal tax rate as a result of the Tax Act. We recognized excess tax benefits in our provision for income taxes of $9.3 million and $14.8 million for the three months ended July 31, 2018 and 2017, respectively.

For the six months ended July 31, 2018 and 2017, our effective tax rates were 7.5% and 5.9%, respectively. During the six months ended July 31, 2018 as compared to the prior year period, our effective tax rate increased primarily due to a decrease in excess tax benefits, which was partially offset by a reduced federal tax rate as a result of the Tax Act. We recognized excess tax benefits in our provision for income taxes of $19.0 million and $28.7 million for the six months ended July 31, 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 completion of the IRS audit resulted 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 during the measurement period, 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.