XML 34 R22.htm IDEA: XBRL DOCUMENT

Income Tax Income Tax Disclosure

6 Months Ended

Jul. 31, 2020

INCOME TAXES

The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, R&D tax credit, foreign-derived intangible income deduction, and tax-exempt insurance premiums. The Company’s effective tax rates were as follows:


	Three Months Ended						Six Months Ended
	July 31, 2020		July 31, 2019		July 31, 2020		July 31, 2019
Effective tax rate	10.8	%	20.0	%	2.2	%	15.5	%

The decrease in the effective tax rate year-over-year was driven primarily by an increase in the R&D tax credit as a percentage of estimated pre-tax income in the current fiscal year.

The Company's discrete tax benefit (expense) was as follows:


	Three Months Ended						Six Months Ended
	July 31, 2020		July 31, 2019		July 31, 2020		July 31, 2019
Discrete tax benefit (expense)	$	(54)	$	22	$	277	$	1,190

The Company operates both domestically and internationally. As of July 31, 2020, undistributed earnings from the Company's foreign subsidiaries were considered to have been reinvested indefinitely.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details