Income Taxes |
3 Months Ended |
|---|---|
Apr. 30, 2019 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income (or loss) relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, as well as our foreign operations which are subject to tax rates that differ from those in the U.S. The Company recorded an income tax expense of $0.2 million and $0.1 million for the three months ended April 30, 2019 and 2018, respectively. The income tax expense for the three months ended April 30, 2019 as compared to the income tax expense for the three months ended April 30, 2018, changed primarily due to an increase in our foreign operations. The gross unrecognized tax benefits as of April 30, 2019, and January 31, 2019, were $7.1 million and $6.6 million, respectively. Due to its U.S. federal and state valuation allowance, $1.0 million of unrecognized tax benefits, as of April 30, 2019, would affect the effective tax rate if recognized. The amount of interest and penalties accrued as of April 30, 2019 and January 31, 2019, were immaterial to our consolidated financial statements. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months.
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