Income Taxes (Tables)

12 Months Ended

Jan. 31, 2016

Schedule of income before income tax, domestic and foreign

Domestic and foreign pre-tax income was as follows:



Year ended January 31,	2016			2015			2014
Domestic	$	(25,971	)	$	(2,991	)	$	(754	)
Foreign	144,900			170,749			163,822
Total pre-tax income	$	118,929		$	167,758		$	163,068

Schedule of components of income tax expense (benefit)

The provision for income taxes was as follows:



Year ended January 31,	2016		2015			2014
Current:
Federal	$	734	$	(223	)	$	(366	)
State	199		444			355
Foreign	17,994		13,677			6,585
Total current	18,927		13,898			6,574
Deferred:
Federal and state	4,402		7,687			1,333
Foreign	1,424		996			1,603
Total deferred	5,826		8,683			2,936
Total provision for income taxes	$	24,753	$	22,581		$	9,510

Provision for income taxes

Actual income tax expense is different from that which would have been computed by applying the statutory U.S. federal income tax rate to our income before income tax. A reconciliation of income tax expense as computed at the U.S. federal statutory income tax rate to the provision for income taxes is as follows:



Year ended January 31,	2016			2015			2014
Federal tax, at statutory rate	$	41,626		$	58,725		$	57,074
State tax, net of federal benefit	(60		)	900			355
Impact of international operations including withholding taxes and other reserves	7,143			(27,042		)	(46,632		)
Repatriation of foreign subsidiary earnings	354			21,969			20,367
Foreign tax credits	(2,382		)	(5,143		)	(5,489		)
Tax credits (excluding foreign tax credits)	(11,539		)	(8,089		)	(12,571		)
Amortization of deferred charge	(167		)	1,168			(2,311		)
Change in valuation allowance	(21,055		)	(26,443		)	(5,929		)
Stock-based compensation expense	3,402			2,929			2,593
Non-deductible meals and entertainment	1,177			1,238			1,087
Other, net	6,254			2,369			966
Provision for income taxes	$	24,753		$	22,581		$	9,510

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,	2016			2015
Deferred tax assets:
Reserves and allowances	$	12,954		$	11,188
Accrued expenses not currently deductible	12,446			21,475
Stock-based compensation expense	8,259			6,988
Net operating loss carryforwards	24,138			34,618
Tax credit carryforwards	87,443			74,235
Purchased technology and other intangible assets	4,219			3,047
Deferred revenue	4,541			2,002
Other, net	8,394			6,762
Total gross deferred tax assets	162,394			160,315
Less valuation allowance	(63,554		)	(91,956		)
Deferred tax assets	98,840			68,359
Deferred tax liabilities:
Intangible assets	(13,163		)	(12,976		)
Undistributed foreign earnings	(87,390		)	(50,163		)
Convertible debt	(6,322		)	(8,918		)
Depreciation of property, plant, and equipment	(1,715		)	(997		)
Deferred tax liabilities	(108,590		)	(73,054		)
Net deferred tax liabilities	$	(9,750	)	$	(4,695	)

Summary of tax credit carryforwards

As of January 31, 2016, we had the following foreign and U.S. Federal and state carryforwards for income tax return purposes:



Credit or carryforward	As of January 31, 2016		Expiration
Federal credits and carryforwards:
Research and experimentation credit carryforward	$	88,987	Fiscal years 2019 - 2036
Net operating loss carryforward	$	120,030	Fiscal years 2020 - 2036
Foreign tax credits	$	19,433	Fiscal years 2017 - 2026
Alternative minimum tax credits	$	2,682	No expiration
Childcare credits	$	1,843	Fiscal years 2023 - 2036
State income tax credits and carryforwards:
Net operating loss carryforward	$	202,389	Fiscal years 2017 - 2036
Research and experimentation	$	21,842	Fiscal years 2017 - 2031
Miscellaneous	$	1,038	Various
Foreign net operating loss carryforwards	$	20,093	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, 2016 and 2015:



Unrecognized tax benefits as of January 31, 2014	$	31,321
Gross increases—tax positions in prior period	7,022
Gross decreases—tax positions in prior period	(279		)
Gross increases—tax positions in current period	4,904
Settlements	(126		)
Lapse of statute of limitations	(2,709		)
Cumulative translation adjustment	(362		)
Unrecognized tax benefits as of January 31, 2015	$	39,771
Gross increases—tax positions in prior period	6,548
Gross decreases—tax positions in prior period	(1,702		)
Gross increases—tax positions in current period	6,509
Settlements	—
Lapse of statute of limitations	(1,125		)
Cumulative translation adjustment	(1,327		)
Unrecognized tax benefits as of January 31, 2016	$	48,674