Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
9 Months Ended
Oct. 31, 2015
Income Taxes  
Income Taxes

 

 

7.  Income Taxes

 

Our effective income tax rate decreased to 56.8% for the third quarter of 2015 from 65.3% for the third quarter of 2014 and to a benefit of (24.0)% for the first nine months of 2015 from 51.5% for the first nine months of 2014.  Our effective income tax rates in 2014 were significantly impacted by non-deductible transaction costs related to the Jos. A. Bank acquisition.  In the third quarter of 2015, we recorded a $90.1 million non-cash tradename impairment charge for the Jos. A. Bank tradename (see Note 12), which generated a book loss for our combined U.S. entities.  This loss in the U.S. combined with income in foreign jurisdictions with lower tax rates resulted in a negative effective income tax rate for the first nine months of 2015.