Income Tax Income Tax Disclosure

6 Months Ended

Jul. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure

INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, research and development tax credit, tax benefits on qualified production activities, and tax-exempt insurance premiums. The Company’s effective tax rates for the three- and six-month periods ended July 31, 2016 were 30.7% and 30.7%, respectively. The Company’s effective tax rates for the three- and six-month periods ended July 31, 2015 were 31.5% and 31.9%, respectively. The decrease in the effective tax rate was primarily due to the inclusion of an R&D tax credit in the current period provision for income taxes. Congress permanently enacted this credit into law in the fourth quarter of fiscal 2016. No estimate of the R&D tax credit was included in the provision for income taxes for the three- or six-month periods ended July 31, 2015.

As of July 31, 2016, undistributed earnings of approximately $3,053 of the Canadian and European subsidiaries 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 $499 net of foreign tax credits.