Income Taxes |
3 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 10 – INCOME TAXES The Company recorded an income tax provision of $1.9 million and $0.7 million for the three months ended April 30, 2026 and 2025, respectively. The effective tax rate was 22.0% and 34.0% for the three months ended April 30, 2026 and 2025, respectively. The significant components of the effective tax rate for the three month period changed primarily due to excess tax benefits related to stock-based compensation in the current year as compared to deficiencies in the prior year, and changes in jurisdictional earnings, partially offset by changes in certain foreign valuation allowances. At April 30, 2026, the Company had no deferred tax liability for substantially all of the undistributed foreign earnings of approximately $255.0 million because the Company intends to permanently reinvest such earnings in its foreign operations. It is not practicable to estimate the tax liability related to a future distribution of these permanently reinvested foreign earnings. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law by President Trump. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA did not have a material impact on the Company's Consolidated Financial Statements for the first quarter of fiscal 2027 or fiscal 2026.
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