Income Taxes (Tables)

12 Months Ended

Jan. 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign

Domestic and foreign pre-tax income (loss) was as follows:



Year ended January 31,	2014			2013		2012
Domestic	$	(754	)	$	9,670	$	(62,943	)
Foreign	163,822			131,665		145,267
Total pre-tax income	$	163,068		$	141,335	$	82,324

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes was as follows:



Year ended January 31,	2014			2013			2012
Current:
Federal	$	(366	)	$	(210	)	$	475
State	355			(65		)	137
Foreign	6,585			4,964			(2,731		)
Total current	6,574			4,689			(2,119		)
Deferred:
Federal and state	1,333			350			695
Foreign	1,603			(2,338		)	361
Total deferred	2,936			(1,988		)	1,056
Total provision (benefit) for income taxes	$	9,510		$	2,701		$	(1,063	)

Provision for Income Taxes



Year ended January 31,	2014			2013			2012
Federal tax, at statutory rate	$	57,074		$	49,467		$	28,813
State tax, net of federal benefit	355			(65		)	137
Impact of international operations including withholding taxes and other reserves	(46,632		)	(50,275		)	(53,499		)
Repatriation of foreign subsidiary earnings	20,367			12,661			1,364
Foreign tax credits	(5,489		)	(8,203		)	(411		)
Costs incurred for stock of acquired business	—			67			98
Tax credits (excluding foreign tax credits)	(12,571		)	(11,782		)	(9,677		)
Amortization of deferred charge	(2,311		)	—			323
Change in valuation allowance	(5,929		)	5,978			28,275
Stock-based compensation expense	2,593			1,895			2,947
Non-deductible meals and entertainment	1,087			1,021			1,096
Other, net	966			1,937			(529		)
Provision (benefit) for income taxes	$	9,510		$	2,701		$	(1,063	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards, which gave rise to significant portions of deferred tax assets and liabilities, were as follows:



As of January 31,	2014			2013
Deferred tax assets:
Depreciation of property, plant, and equipment	$	(8	)	$	274
Reserves and allowances	10,733			10,398
Accrued expenses not currently deductible	20,118			20,463
Stock-based compensation expense	7,839			12,394
Net operating loss carryforwards	40,245			55,612
Tax credit carryforwards	90,852			75,639
Purchased technology and other intangible assets	3,267			6,456
Deferred revenue	3,680			3,097
Other, net	4,844			7,853
Total gross deferred tax assets	181,570			192,186
Less valuation allowance	(126,989		)	(154,695		)
Deferred tax assets	54,581			37,491
Deferred tax liabilities:
Intangible assets	(5,699		)	(8,286		)
Undistributed foreign earnings	(32,132		)	(1,662		)
Convertible debt	(11,276		)	(13,519		)
Deferred tax liabilities	(49,107		)	(23,467		)
Net deferred tax assets	$	5,474		$	14,024

Summary of Tax Credit Carryforwards

As of January 31, 2014, we had the following foreign and U.S. Federal and state carryforwards for income tax purposes:



Credit or carryforward	As of January 31, 2014		Expiration
Federal credits and carryforwards:
Research and experimentation credit carryforward	$	70,201	Fiscal 2019 - 2034
Net operating loss carryforward	$	179,123	Fiscal 2019 - 2032
Foreign tax credits	$	14,335	Fiscal 2015 - 2024
Alternative minimum tax credits	$	2,683	No expiration
Childcare credits	$	1,649	Fiscal 2023 - 2034
State income tax credits and carryforwards:
Net operating loss carryforward	$	213,490	Fiscal 2015 - 2033
Research and experimentation	$	18,026	Fiscal 2015 - 2029
Miscellaneous	$	1,199	Various
Foreign net operating loss carryforwards	$	34,122	Generally indefinite

Unrecognized Tax Position Reconciliation

The below schedule shows the gross changes in unrecognized tax benefits associated with uncertain tax positions for the years ending January 31, 2014 and 2013:



Unrecognized tax benefits as of January 31, 2012	$	41,905
Gross increases—tax positions in prior period	457
Gross decreases—tax positions in prior period	(7		)
Gross increases—tax positions in current period	4,316
Lapse of statute of limitations	(7,553		)
Cumulative translation adjustment	(336		)
Unrecognized tax benefits as of January 31, 2013	$	38,782
Gross increases—tax positions in prior period	3,863
Gross decreases—tax positions in prior period	(10,313		)
Gross increases—tax positions in current period	3,900
Gross decreases-tax positions current	—
Settlements	(1,581		)
Lapse of statute of limitations	(2,982		)
Cumulative translation adjustment	(348		)
Unrecognized tax benefits as of January 31, 2014	$	31,321