INCOME TAXES

12 Months Ended

Jan. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE F — INCOME TAXES

The income tax provision is comprised of the following:

	Year Ended January 31,
	2015			2014			2013
	(In thousands)
Current
Federal	$	46,989		$	36,828		$	27,983
State and city		5,978			5,396			4,748
Foreign		5,688			7,040			3,986
		58,655			49,264			36,717
Deferred
Federal		1,422			(3,328	)		(1,168)
State and city		(67	)		189			(132	)
Foreign		(560	)		(299	)		19
		795			(3,438	)		(1,281)
Income tax expense	$	59,450		$	45,826		$	35,436
Income before income taxes
United States	$	133,709		$	104,435		$	80,145
Non-United States		34,732			17,793			11,860
	$	168,441		$	122,228		$	92,005

The significant components of the Company’s net deferred tax asset at January 31, 2015 and 2014 are summarized as follows:

	2015			2014
	(In thousands)
Deferred tax assets
Compensation	$	3,964		$	3,125
Provision for bad debts and sales allowances		10,254			11,822
Inventory write-downs		3,059			3,745
Other		1,671			254
Deferred tax assets, current		18,948			18,946
Compensation		6,855			5,876
Straight-line lease		5,128			4,494
Supplemental employee retirement plan		420			477
Net operating loss		1,613			1,779
Other		71			81
Deferred tax assets, non-current		14,087			12,707
Total deferred tax assets		33,035			31,653
Deferred tax liabilities
Prepaid expenses and other, current		(2,876	)		(2,615	)
Depreciation and amortization, non-current		(10,563	)		(7,955	)
Intangibles, non-current		(23,631	)		(26,061	)
Other		(364	)		(791	)
Total deferred tax liabilities		(37,434	)		(37,422	)
Net deferred tax liabilities	$	(4,399	)	$	(5,769	)

As of January 31, 2015 and 2014, intangible deferred tax liabilities of $15.9 million and $17.7 million, respectively, 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:

	2015			2014			2013
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		2.3			3.0			3.3
Permanent differences resulting in Federal taxable income		2.9			4.5			4.8
Foreign tax rate differential		0.1			(0.1	)		(1.4	)
Foreign tax credit		(6.5	)		(5.4	)		(2.5	)
Other, net		1.5			0.5			(0.7	)
Actual provision for income taxes		35.3	%		37.5	%		38.5	%

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, 2015, there was an increase in the unrecognized tax position reserve of approximately $102,000, net of federal tax benefit to $970,000, for the current year accrual of interest and penalties on existing uncertain income tax positions reserves. The Company currently has tax years open from the years ended January 31, 2012 through January 31, 2015, 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 and Comprehensive 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 $11.9 million at January 31, 2015. 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.