Income Taxes (Tables)

12 Months Ended

Jan. 31, 2018

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,
	2018		2017		2016
United States	$	133,035	$	97,981	$	82,331
Foreign		25,599		11,654		(3,714	)
Total	$	158,634	$	109,635	$	78,617

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,
	2018			2017			2016
Current provision:
Federal	$	5,315		$	36,004		$	26,919
State		209			4,924			2,897
Foreign		8,022			4,976			826
Total	$	13,546		$	45,904		$	30,642
Deferred provision:
Federal		3,884			(2,395	)		(4,573	)
State		304			(338	)		(209	)
Foreign		(1,066	)		(2,340	)		(1,703	)
Total	$	3,122		$	(5,073	)	$	(6,485	)
Provision for income taxes	$	16,668		$	40,831		$	24,157

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 33.8%, to income before income taxes as a result of the following for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2018			2017			2016
Federal tax statutory tax rate	$	53,629		$	38,371		$	27,489
State taxes		3,919			3,883			2,034
Nondeductible expenses		(462	)		(367	)		794
Research and development credit		(9,409	)		(6,739	)		(4,353	)
Domestic manufacturing deduction		(1,096	)		(1,678	)		(1,712	)
Stock-based compensation		(37,347	)		4,338			3,331
Foreign rate differential		(2,207	)		1,042			(5,104	)
Valuation allowance		4,010			1,630			5,655
Impact of foreign operations		4,842			1,891			—
Tax election benefit		—			—			(2,865	)
Others		789			(1,540	)		(1,112	)
Provision for income taxes	$	16,668		$	40,831		$	24,157

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,
	2018			2017
Deferred Tax Assets:
Accruals and reserves	$	8,444		$	11,022
Net operating loss carryforward		2,002			1,753
State income taxes		236			1,612
Tax credit carryforward		10,196			11,479
Other		30			264
Gross Deferred Tax Assets	$	20,908		$	26,130
Valuation Allowance		(10,329	)		(9,670	)
Total Deferred Tax Assets	$	10,579		$	16,460
Deferred Tax Liabilities:
Property and equipment	$	(633	)	$	(906	)
Intangible assets		(8,078	)		(11,678	)
Expensed internal-use software		(595	)		(390	)
Other		(1,611	)		—
Total Deferred Tax Liabilities	$	(10,917	)	$	(12,974	)
Net Deferred Tax Assets	$	(338	)	$	3,486

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,
	2018			2017			2016
Beginning balance	$	7,868		$	5,248		$	3,247
Increases related to tax positions taken during the prior period		189			24			160
Increases related to tax positions taken during the current period		4,032			2,888			2,185
Lapse of statute of limitations		(691	)		(292	)		(344	)
Ending balance	$	11,398		$	7,868		$	5,248