During the three and six months ended July 31, 2026, the Company released a valuation allowance previously maintained against its net deferred tax assets in the United Kingdom, reflecting sustained improvement in the underlying business. The release was recorded as a discrete tax benefit of $16,225, which decreased the Company's effective tax rate for the three and six months ended July 31, 2026.

The Company holds an equity membership interest in a federal low-income housing tax credit entity. Refer to Note 10, "Income Taxes," in the Notes to the Consolidated Financial Statements on Form 10-K for the fiscal year ended January 31, 2026, for additional information on the tax credit investment.

The Company included in "Other income, net" in the Condensed Consolidated Statements of Income, interest expense related to the accretion of the liability of $597 and $1,281 for the three and six months ended July 31, 2026, respectively, and $960 and $2,012 for the three and six months ended July 31, 2025, respectively. Included in "Income tax expense" in the Condensed Consolidated Statements of Income was amortization of the investment of $3,726 and $7,452 for the three and six months ended July 31, 2026, respectively, and $4,294 and $8,587 for the three and six months ended July 31, 2025, respectively. Also included in "Income tax expense" in the Condensed Consolidated Statements of Income were income tax credits and other income tax benefits of $5,120 and $10,259 for the three and six months ended July 31, 2026, respectively, and $5,947 and $11,914 for the three and six months ended July 31, 2025, respectively. The carrying value of the investment is recorded in "Other assets" in the Condensed Consolidated Balance Sheets. The liabilities for the present value of the estimated future capital contributions are recorded in "Accrued expenses, accrued compensation and other current liabilities" and "Other non-current liabilities" in the Condensed Consolidated Balance Sheets. The following table summarizes the balances related to the investment at July 31, 2026, January 31, 2026 and July 31, 2025:


	July 31,		January 31,		July 31,
	2026		2026		2025
Other assets	$	24,128	$	31,580	$	40,197
Accrued expenses, accrued compensation and other current liabilities		14,241		15,164		15,938
Other non-current liabilities		8,678		15,558		22,919