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Income Taxes
6 Months Ended
Jul. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 9 – INCOME TAXES

The Company recorded income tax expense of $3.4 million and $6.1 million for the three months ended July 31, 2016 and 2015, respectively.

The effective tax rate was 35.1% and 33.8% for the three months ended July 31, 2016 and 2015, respectively. The increase in the effective tax rate was primarily due to a decrease in income before income taxes in certain jurisdictions.

The Company recorded income tax expense of $5.2 million and $9.2 million for the six months ended July 31, 2016 and 2015, respectively.

The effective tax rate was 34.8% and 37.2% for the six months ended July 31, 2016 and 2015, respectively. The decrease in the effective tax rate was primarily due to certain costs related to the operating efficiency initiatives and other items (see note 14), which resulted in deferred tax benefits that were valued in prior year, and the non-recurrence of a valuation allowance against certain foreign deferred tax assets.

The effective tax rate for the three and six months ended July 31, 2016 differs from the U.S. statutory tax rate of 35.0% primarily as a result of foreign profits being taxed in lower taxing jurisdictions, partially offset by no tax benefit being recognized on losses incurred by certain foreign operations.

The effective tax rate for the three and six months ended July 31, 2015 differs from the U.S. statutory tax rate of 35.0% primarily due to no tax benefit being recognized on losses incurred by certain foreign operations offset by foreign profits being taxed in lower taxing jurisdictions. Also included in the six months ended July 31, 2015, is the impact of certain costs related to the operating efficiency initiatives and other items (see note 14) which resulted in deferred tax benefits that were valued.