Income Taxes—The provision for income taxes was comprised of the following:



	Three months ended October 31,						Nine months ended October 31,
	2012			2011			2012			2011
Income tax expense (benefit)	$	1,148		$	(1,445	)	$	(835	)	$	(4,429	)
Effective tax rate	3.5		%	(6.4		)%	(1.1		)%	(20.5		)%

Generally, the provision for income taxes is the result of the mix of profits and losses earned in various tax jurisdictions with a broad range of income tax rates, withholding taxes (primarily in certain foreign jurisdictions), changes in tax reserves, and the application of valuation allowances on deferred tax assets. Accounting guidance requires for interim reporting that we evaluate our provision for income tax expense (benefit) based on our projected results of operations for the full year, and record adjustments in each quarter. Such adjustments consider period specific items and a separate determination of tax expense for entities in our consolidated group that are projected to have losses for which no tax benefit will be recognized.

Our effective tax rate is (1.1)% for the nine months ended October 31, 2012, after the inclusion of $(6,176) in net favorable period specific items. The period specific items primarily relate to reductions in liabilities for uncertain tax positions. For our full year forecast, we have projected a 3% effective tax rate. This rate is inclusive of period specific items recognized through October 31, 2012. Our projected rate for the full year differs from tax computed at the U.S. federal statutory rate of 35% primarily due to:

•The benefit of lower tax rates on earnings of foreign subsidiaries;

•Forecasted utilization of net operating loss carryforwards for which no previous benefit was recognized;

•Reduction in reserves for uncertain tax positions; and

•The application of tax incentives for research and development.

These differences are partially offset by:

•Non-deductible employee stock purchase plan compensation expense; and

•Withholding taxes in certain foreign jurisdictions.

Actual results may differ significantly from our current projections. Further, our effective tax rate could fluctuate considerably on a quarterly basis, and could be significantly affected to the extent our actual mix of earnings among individual jurisdictions is different than our expectations.

As of October 31, 2012, we had a liability of $27,706 for income taxes associated with uncertain income tax positions. Of this liability, $5,535 was classified as short-term liabilities in our condensed consolidated balance sheet as we generally anticipate the settlement of such liabilities will require payment of cash within the next twelve months. The remaining $22,171 of income tax associated with uncertain tax positions was classified as long-term liabilities. Certain liabilities may result in the reduction of deferred tax assets rather than settlement in cash. We are not able to reasonably estimate the timing of any cash payments required to settle the long-term liabilities and do not believe that the ultimate settlement of these liabilities will materially affect our liquidity.