Income Taxes (Tables)

12 Months Ended

Jan. 31, 2017

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,
	2017		2016			2015
United States	$	97,981	$	82,331		$	64,178
Foreign		11,654		(3,714	)		3,008
Total	$	109,635	$	78,617		$	67,186

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,
	2017			2016			2015
Current provision:
Federal	$	36,004		$	26,919		$	26,039
State		4,924			2,897			3,022
Foreign		4,976			826			2,093
Total	$	45,904		$	30,642		$	31,154
Deferred provision:
Federal		(2,395	)		(4,573	)		(3,421	)
State		(338	)		(209	)		(197	)
Foreign		(2,340	)		(1,703	)		(733	)
Total	$	(5,073	)	$	(6,485	)	$	(4,351	)
Provision for income taxes	$	40,831		$	24,157		$	26,803

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 35%, to income before income taxes as a result of the following for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2017			2016			2015
Federal tax statutory tax rate	$	38,371		$	27,489		$	23,470
State taxes		3,883			2,034			1,429
Nondeductible expenses		(367	)		794			140
Research and development credit		(6,739	)		(4,353	)		(2,028	)
Domestic manufacturing deduction		(1,678	)		(1,712	)		(431	)
Stock-based compensation		4,338			3,331			2,506
Foreign rate differential		1,042			(5,104	)		1,101
Valuation allowance		1,630			5,655			1,589
Tax election benefit		—			(2,865	)		—
Others		351			(1,112	)		(973	)
Provision for income taxes	$	40,831		$	24,157		$	26,803

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,
	2017			2016
Deferred Tax Assets:
Accruals and reserves	$	11,296		$	8,181
Net operating loss carryforward		1,753			1,834
State income taxes		1,612			1,097
Tax credit carryforward		11,479			10,346
Other		264			—
Gross Deferred Tax Assets	$	26,404		$	21,458
Valuation Allowance		(9,620	)		(7,990	)
Total Deferred Tax Assets	$	16,784		$	13,468
Deferred Tax Liabilities:
Property and equipment	$	(906	)	$	(1,265	)
Intangible assets		(11,678	)		(12,854	)
Expensed internal-use software		(390	)		(371	)
Other		—			(241	)
Total Deferred Tax Liabilities	$	(12,974	)	$	(14,731	)
Net Deferred Tax Assets	$	3,810		$	(1,263	)

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,
	2017			2016			2015
Beginning balance	$	5,248		$	3,247		$	2,439
Increases related to tax positions taken during the prior period		24			160			169
Increases related to tax positions taken during the current period		2,888			2,185			869
Lapse of statute of limitations		(292	)		(344	)		(230	)
Ending balance	$	7,868		$	5,248		$	3,247