Income Taxes (Notes)

6 Months Ended

Jul. 31, 2019

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

NOTE 6 — INCOME TAXES

The Company's effective tax rate was 21.4% and 6.8% for the three months ended July 31, 2019 and 2018, respectively, and 22.1% and 11.7% for the six months ended July 31, 2019 and 2018, respectively. On an absolute dollar basis, the provision for income taxes increased to $21.6 million for the second quarter of fiscal 2020 compared to $5.5 million for the second quarter of fiscal 2019 and increased to $38.3 million for the first semester of fiscal 2020 compared to $14.5 million for the first semester of fiscal 2019.

The increase in both the effective tax rate and the provision for income taxes for the three and six months ended July 31, 2019, as compared to the prior year is primarily due to a $12.8 million income tax benefit that was recognized during the three and six months ended July 31, 2018. The income tax benefit was due to the Company's finalization of the geographic allocation of the purchase price for the acquisition of TS for tax reporting purposes as part of a settlement agreement with Avnet, which resulted in the recognition of a deferred tax asset in the U.S. for future tax deductions related to the amortization of goodwill for tax purposes. Additionally, the increase in the absolute dollar value of the provision for income taxes for both the three and six months ended July 31, 2019 as compared to the prior year is due to an increase in taxable earnings.