Income Taxes Income Taxes

9 Months Ended

Oct. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, tax-exempt captive insurance premiums, and tax benefits on qualified production activities. The Company’s effective tax rates for the nine-month periods ended October 31, 2015 and 2014 were 13.9% and 31.2%, respectively. The 17.3 percentage point decrease in the fiscal 2016 effective rate is primarily due to the relationship between significantly lower pretax income in fiscal 2016 than fiscal 2015 and relatively large permanent tax benefits in fiscal 2016.

As of October 31, 2015, undistributed earnings of approximately $1,720 of the Canadian subsidiary were considered to have been reinvested indefinitely and, accordingly, the Company has not provided United States income taxes on such earnings. This estimated tax liability would be approximately $270 net of foreign tax credits.