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Income Taxes
6 Months Ended
Jul. 31, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The Company's effective tax rate was 36.1% in the second quarter of fiscal 2014 and 30.0% in the second quarter of fiscal 2013. The Company's effective tax rate was 40.0% for the first semester of fiscal 2014 compared to 29.6% for the same period of the prior year. The increase in the effective rate for both the second quarter and first semester of fiscal 2014 compared to the same periods of the prior year is primarily the result of the relative mix of earnings and losses within the tax jurisdictions in which the Company operates, partially offset by a discrete tax benefit during the second quarter of fiscal 2014.
On an absolute dollar basis, the provision for income taxes decreased 49.9% to $8.3 million for the second quarter of fiscal 2014 compared to $16.6 million in the same period of fiscal 2013 and decreased 45.5% to $21.6 million for the first semester of fiscal 2014 compared to $39.7 million for the same period of the prior year. The decrease in the provision for income taxes in these periods was primarily due to a decrease in taxable earnings in certain countries in which the company operates.
The effective tax rate differed from the U.S. federal statutory rate of 35% during these periods primarily due to the relative mix of earnings or losses within the tax jurisdictions in which the Company operates such as: i) losses in tax jurisdictions where the Company is not able to record a tax benefit; ii) earnings in tax jurisdictions where the Company has previously recorded a valuation allowance on deferred tax assets; and iii) earnings in lower-tax jurisdictions for which no U.S. taxes have been provided because such earnings are planned to be reinvested indefinitely outside the United States.
The Company's future effective tax rates will continue to be affected by changes in the relative mix of taxable income and taxable loss jurisdictions, changes in the valuation of deferred tax assets or liabilities or changes in tax laws or interpretations thereof. The Company monitors the assumptions used in estimating the annual effective tax rate and makes adjustments, if required, throughout the year. If actual results differ from the assumptions used in estimating the Company's annual effective income tax rates, future income tax expense could be materially affected.

In addition, the Company's income tax returns are subject to continuous examination by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes from these examinations to determine the adequacy of the Company's provision for income taxes. To the extent the Company prevails in matters for which accruals have been established or is required to pay amounts in excess of such accruals, the effective tax rate could be materially affected.