INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2016

Income tax expense (benefit) is summarized as follows:

	Years Ended January 31,
	2016			2015			2014
	(in thousands)
Current:
Federal	$	(1,656	)	$	174		$	303
State		26			109			33
Foreign		2,591			3,010			2,703
Subtotal		961			3,293			3,039
Deferred:
Federal		(956	)		(786	)		20
State		303			229			306
Foreign		63			(348	)		297
Subtotal		(590	)		(905	)		623
Equity adjustment		1,254			251			104
Total	$	1,624		$	2,639		$	3,766

Reconciliation of income taxes to the statutory rate

Actual income tax expense (benefit) differs from that obtained by applying the statutory federal income tax rate of 34% to income before income taxes as follows:

	Years Ended January 31,
	2016			2015			2014
	(in thousands)
Computed expected tax expense	$	3,582		$	5,299		$	3,452
State income taxes, net of federal income tax expense		252			253			330
Incremental tax benefit from foreign operations		(2,548	)		(5,220	)		(2,676	)
Non-deductible equity compensation		254			258			1,176
Foreign withholding taxes		968			1,256			1,171
Net change in valuation allowance		2,564			1,657			(108	)
Net change in contingency reserve		(379	)		(594	)		45
Non-deductible expenses		621			742			1,084
Benefit of tax credits		(3,186	)		(1,345	)		(1,624	)
Subpart F Income		254			283			198
Rate change impact		193			54			(88	)
Benefit from liquidation utilized		(1,321	)		—			—
Other		370			(4	)		806
	$	1,624		$	2,639		$	3,766

Components of deferred tax assets and liabilities

	January 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts and sales adjustments	$	486		$	452
Accrued vacation		1,900			2,015
Tax credits		11,025			8,584
Deferred revenue		3,520			3,666
Net operating loss carry forwards		7,965			9,646
Accrued expenses - other		1,557			2,478
Other comprehensive income		1,483			—
Section 263(a) interest capitalization		333			353
Equity compensation		4,631			3,673
Other		2,111			1,824
Total deferred tax assets		35,011			32,691
Less valuation allowance		(13,480	)		(10,684	)
Less netting of unrecognized tax benefits against deferred tax assets		(1,042	)		(1,406	)
Deferred tax assets, net of valuation allowance	$	20,489		$	20,601
Deferred tax liabilities:
Basis difference in foreign subsidiaries		—			(2,004	)
Depreciation and amortization		(249	)		(379	)
Other comprehensive income		—			(20	)
Other		(118	)		(346	)
Total deferred tax liabilities		(367	)		(2,749	)
Total net deferred tax assets	$	20,122		$	17,852
Recorded as:
Current portion of deferred tax assets		8,261			9,434
Non-current portion of deferred tax assets		12,342			11,229
Current portion of deferred tax liabilities (in current deferred tax assets)		(58	)		(2,125	)
Non-current portion of deferred tax liabilities (in non-current deferred tax assets)		(423	)		(686	)
Total net deferred tax assets	$	20,122		$	17,852

Gross amounts of unrecognized tax benefits

The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period:

	Years Ended January 31,
	2016			2015
	(in thousands)
Unrecognized tax benefits at beginning of the year	$	1,924		$	2,626
Increases as a result of tax positions taken in a prior period		(17	)		85
Increases as a result of tax positions taken in the current period		15			27
Reduction as a result of a lapse of the statute of limitations		(288	)		(649	)
Decreases as a result of tax settlements		(89	)		(165	)
Unrecognized tax benefit at end of year	$	1,545		$	1,924

List of open tax year by jurisdiction

Below is a list of our material jurisdictions and the years open for audit as of fiscal 2016:

Jurisdiction	Years Open for Audit
U.S. Federal	FY13 and beyond
California	FY12 and beyond
Michigan	FY12 and beyond
New Jersey	FY12 and beyond
Australia	FY12 and beyond
France	FY14 and beyond
India	FY98, FY99, FY09, FY10, FY12 and beyond
Ireland	FY12 and beyond
United Kingdom	FY15 and beyond