Income Taxes (Tables)

12 Months Ended

Jan. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income before Income Taxes

The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands):

	Fiscal year ended January 31,
	2022		2021		2020
United States	$	487,962	$	378,042	$	305,339
Foreign	24,349		15,951		8,358
Total	$	512,311	$	393,993	$	313,697

Components of Provision for Income Taxes

Provision for income taxes consisted of the following for the periods shown (in thousands):

	Fiscal year ended January 31,
	2022		2021		2020
Current provision:
Federal	$	53,426	$	7,108	$	11,143
State	12,580		4,763		4,695
Foreign	7,837		2,825		3,404
Total current provision	73,843		14,696		19,242
Deferred provision:
Federal	1,870		(816)		(1,063)
State	945		681		(517)
Foreign	8,264		(566)		(5,083)
Total deferred provision	11,079		(701)		(6,663)
Provision for income taxes	$	84,921	$	13,995	$	12,579

Reconciliation of Statutory Federal Income Tax to Effective Tax

Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21% for each of the fiscal years ended January 31, 2022, 2021, and 2020 to income before income taxes as a result of the following for the periods shown (in thousands):

	Fiscal year ended January 31,
	2022		2021		2020
Federal tax statutory tax rate	$	107,585	$	82,739	$	65,876
State taxes	11,035		4,401		3,035
Tax credits	(25,968)		(24,617)		(23,468)
Stock-based compensation	(29,715)		(54,488)		(34,569)
Valuation allowance	19,402		10,269		7,408
Foreign derived intangible income deduction (FDII)	(3,406)		(5,134)		(4,836)
Other(1)	5,988		825		(867)
Provision for income taxes	$	84,921	$	13,995	$	12,579
(1) Prior period balances were adjusted to conform with current period presentation.

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands):

	January 31,
	2022		2021
Deferred tax assets:
Accruals and reserves	$	7,068	$	13,494
Capitalized expenditures	10,477		—
Stock-based compensation	16,615		11,486
Net operating loss carryforward	21,850		29,318
Tax credit carryforward	34,725		29,624
Lease liabilities	13,813		15,932
Other(1)	2,955		977
Gross deferred tax assets	107,503		100,831
Valuation allowance	(48,484)		(31,318)
Total deferred tax assets	59,019		69,513
Deferred tax liabilities:
Intangible assets	(31,200)		(30,253)
Lease right-of-use assets	(12,497)		(14,438)
Deferred costs(1)	(10,552)		(11,481)
Other(1)	(1,889)		(1,076)
Total deferred tax liabilities	(56,138)		(57,248)
Net deferred tax assets	$	2,881	$	12,265
(1) Prior period balances were adjusted to conform with current period presentation.

Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits

The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands):

	Fiscal year ended January 31,
	2022		2021		2020
Beginning balance	$	18,628	$	14,515	$	12,597
Increases related to tax positions taken during the prior period	3,218		96		796
Increases related to tax positions taken during the current period	4,122		4,126		3,420
Decreases related to tax positions taken during the prior period	—		(51)		(128)
Audit settlements	(195)		—		—
Lapse of statute of limitations	(532)		(58)		(2,170)
Ending balance	$	25,241	$	18,628	$	14,515