v3.20.2
Income Taxes
6 Months Ended
Jul. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company recognized an income tax expense of $0.4 million and $0.6 million for the three months ended July 31, 2020 and July 31, 2019, respectively, and $1.5 million and $1.2 million for the six months ended July 31, 2020 and July 31, 2019, respectively. The tax expense for the three and six months ended July 31, 2020 was primarily attributable to pre-tax foreign earnings. The Company’s effective tax rates of (1.5)% and (1.2)% for the three months ended July 31, 2020 and July 31, 2019, respectively, and (3.1)% and (1.6)% for the six months ended July 31, 2020 and July 31, 2019, respectively, differ from the U.S. statutory tax rate primarily due to U.S. losses for which there is no benefit and the tax rate differences between the United States and foreign countries.
The Company has a full valuation allowance on its U.S. federal and state and its U.K. deferred tax assets. As a result, consistent with the prior year, the Company did not record a tax benefit on these losses because of uncertainty of future profitability.
On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as a response to the economic uncertainty resulting from the global COVID-19 pandemic. The CARES Act did not have a material impact on the Company’s condensed consolidated financial statements for the three and six months ended July 31, 2020. The Company continues to monitor any effects that may result from the CARES Act.