INCOME TAXES

12 Months Ended

Jan. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE F - INCOME TAXES

The income tax provision is comprised of the following:

	Year Ended January 31,
	2014			2013			2012
	(In thousands)
Current
Federal	$	36,828		$	27,983		$	19,206
State and city		5,396			4,748			4,449
Foreign		7,040			3,986			2,396
		49,264			36,717			26,051
Deferred
Federal		(3,328	)		(1,168	)		3,821
State and city		189			(132	)		(252	)
Foreign		(299	)		19			-
		(3,438	)		(1,281	)		3,569
Income tax expense	$	45,826		$	35,436		$	29,620
Income before income taxes
United States	$	104,435		$	80,145		$	64,940
Non-United States		17,793			11,860			14,300
	$	122,228		$	92,005		$	79,240

The significant components of the Company’s net deferred tax asset at January 31, 2014 and 2013 are summarized as follows:

	2014			2013
	(In thousands)
Deferred tax assets
Compensation	$	3,125		$	1,800
Provision for bad debts and sales allowances		11,822			8,661
Inventory write-downs		3,745			1,801
Other		254			600
Deferred tax assets, current		18,946			12,862
Compensation		5,876			4,480
Straight-line lease		4,494			3,310
Supplemental employee retirement plan		477			494
Net operating loss		1,779			354
Other		81			1,491
Deferred tax assets, non-current		12,707			10,129
Total deferred tax assets		31,653			22,991
Deferred tax liabilities
Prepaid expenses and other, current		(2,615	)		(2,577	)
Depreciation and amortization, non-current		(7,955	)		(3,127	)
Intangibles, non-current		(26,061	)		(21,382	)
Other		(791	)		(62	)
Total deferred tax liabilities		(37,422	)		(27,148	)
Net deferred tax liabilities	$	(5,769	)	$	(4,157	)

As of January 31, 2014 and 2013, intangible deferred tax liabilities of $17.7 million and $13.7 million, relate to intangible assets in Switzerland. The remaining intangible assets relate primarily to the U.S.

The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements for the years ended January 31:

	2014			2013			2012
Provision for Federal income taxes at the statutory rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of Federal tax benefit		3.0			3.3			3.3
Permanent differences resulting in Federal taxable income		4.5			4.8			5.5
Foreign tax rate differential		(0.1	)		(1.4	)		(3.4	)
Foreign tax credit		(5.4	)		(2.5	)		(2.5	)
Other, net		0.5			(0.7	)		(0.5	)
Actual provision for income taxes		37.5	%		38.5	%		37.4	%

    The Company accounts for uncertain income tax positions in accordance with ASC Topic 740 Income Taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of January 31, 2014, there was an increase in the unrecognized tax position reserve of approximately $0.9 million, net of federal tax benefit, relating to the prior year’s state tax filings for periods beginning with the fiscal year ended January 31, 2010 through the fiscal year ended January 31, 2013. The Company currently has tax years open from the years ended January 31, 2010 through January 31, 2013,with the exception of certain state tax jurisdictions.

The Company’s policy on classification is to include interest in “interest and financing charges” and penalties in “selling, general and administrative expense” in the accompanying Consolidated Statements of Income. The Company and certain of its subsidiaries are subject to U.S. Federal income tax as well as income tax of multiple state, local, and foreign jurisdictions. The Company is currently under U.S. Federal income tax examination for the year ended January 31, 2012. One of its foreign subsidiaries, T.R.B International S.A., has a ruling with the Swiss government that taxes commercial foreign sourced income at an 11.6% rate. The ruling was extended to the year ending January 31, 2018.

Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $13.4 million at January 31, 2014. Those earnings are considered indefinitely reinvested and, accordingly, no provision for U.S. income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries, as applicable. At this point in time it is not practical to estimate the amount of taxes payable if the earnings were remitted.