XML 23 R12.htm IDEA: XBRL DOCUMENT v3.21.1
Note 5 - Income Taxes
 3 Months Ended
Apr. 30, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
5
- Income taxes 
 
The determination of the consolidated provision for income taxes, deferred tax assets and liabilities and related valuation allowances requires management to make judgments and estimates. As a company with subsidiaries in foreign jurisdictions, the process of calculating income taxes involves estimating current tax obligations and exposures in each jurisdiction as well as making judgments regarding the future recoverability of deferred tax assets. Income earned in the United Arab Emirates is
not
subject to local country income tax. Additionally, the relative proportion of taxable income earned domestically versus internationally can fluctuate significantly from period to period. Changes in the estimated level of annual pre-tax income, tax laws and the results of tax audits can affect the overall effective income tax rate, which impacts the level of income tax expense and net income. Judgments and estimates related to the Company's projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections. 
 
The Company's effective tax rate ("ETR") from operations in the 
first
quarter in fiscal 
2021
was (
24.3%
) compared to
7.8%
during the prior year period. The change in the ETR from the prior year quarter to the current year quarter is largely due to changes in the mix of income and loss in various jurisdictions.
 
The amount of unrecognized tax benefits, net of interest and penalties at
April 30, 2021
, recorded in other long-term liabilities was
$0.1
 million, all of which would impact the Company's ETR if recognized.