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Income Taxes
 6 Months Ended
Jul. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
10
.
Income Taxes
The Company’s provision for income taxes for the three months ended July 31, 2025 and 2024 is based on the estimated annual effective tax rate, in addition to discrete items.
The Company’s effective tax rate for the three months ended July 31, 2025 was 117.2% and 67.08% for the six months ended July 31, 2025. Both differ from the U.S. federal statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions. The Company’s effective tax rate for the three months ended July 31, 2024 was 23.4% and (13.1)% for the six months ended July 31, 2024. Both differ from the U.S. federal statutory rate of 21%, primarily due to the mix of income in various foreign tax jurisdictions, the impacts from Global Intangible
Low-Taxed
Income (“GILTI”) and stock compensation vestings, partially offset by foreign withholding taxes accrued during the respective periods.
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $10.5 million and $6.6 million as of July 31, 2025 and January 31, 2025, respectively.
 
With the exception of our UK and China subsidiaries for which we accrue relevant deferred tax impacts related to
non-indefinitely
reinvested cash, we consider the excess of the amount for financial reporting over the tax basis (including undistributed and previously taxed earnings) of investments in our other foreign subsidiaries as of July 31, 2025 to be indefinitely reinvested in the foreign jurisdictions on the basis of our specific plan for reinvestment and estimates that future domestic cash generation will be sufficient to meet future domestic cash needs. Therefore, we have not provided for deferred taxes related to such excess or the relevant portions thereof and disclosed that the determination of any deferred taxes related to this exces
s i
s not practicable in those permanently reinvested jurisdictions. We have made no changes to our policy on indefinite reinvestment during the six months ended July 31, 2025.