Income Taxes (Tables)

12 Months Ended

Jan. 31, 2017

Schedule of income before income tax, domestic and foreign

Domestic and foreign pre-tax income was as follows:



Fiscal year ended January 31,	2017			2016			2015
Domestic	$	(31,914	)	$	(25,971	)	$	(2,991	)
Foreign	216,770			144,900			170,749
Total pre-tax income	$	184,856		$	118,929		$	167,758

Schedule of components of income tax expense (benefit)

The provision for income taxes was as follows:



Fiscal year ended January 31,	2017			2016		2015
Current:
Federal	$	(427	)	$	734	$	(223	)
State	226			199		444
Foreign	19,720			17,994		13,677
Total current	19,519			18,927		13,898
Deferred:
Federal and state	10,679			4,402		7,687
Foreign	(208		)	1,424		996
Total deferred	10,471			5,826		8,683
Total provision for income taxes	$	29,990		$	24,753	$	22,581

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:



Fiscal year ended January 31,	2017			2016			2015
Federal tax, at statutory rate	$	64,700		$	41,626		$	58,725
State tax, net of federal benefit	684			(60		)	900
Impact of international operations including withholding taxes and other reserves	(48,268		)	7,143			(27,042		)
Repatriation of foreign subsidiary earnings	55,812			354			21,969
Foreign tax credits	(10,739		)	(2,382		)	(5,143		)
Tax credits (excluding foreign tax credits)	(12,180		)	(11,539		)	(8,089		)
Change in valuation allowance	(25,531		)	(21,055		)	(26,443		)
Amortization of deferred charge	415			(167		)	1,168
Stock-based compensation expense	489			3,402			2,929
Non-deductible meals and entertainment	1,247			1,177			1,238
Other, net	3,361			6,254			2,369
Provision for income taxes	$	29,990		$	24,753		$	22,581

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,	2017			2016
Deferred tax assets:
Reserves and allowances	$	10,346		$	12,954
Accrued expenses not currently deductible	23,299			12,446
Stock-based compensation expense	8,403			8,259
Net operating loss carryforwards	14,743			24,138
Tax credit carryforwards	104,965			87,443
Purchased technology and other intangible assets	4,201			4,219
Deferred revenue	4,641			4,541
Other, net	8,845			8,394
Total gross deferred tax assets	179,443			162,394
Less valuation allowance	(74,041		)	(63,554		)
Deferred tax assets	105,402			98,840
Deferred tax liabilities:
Intangible assets	(14,002		)	(13,163		)
Undistributed foreign earnings	(97,696		)	(87,390		)
Convertible debt	(3,523		)	(6,322		)
Depreciation of property, plant, and equipment	(2,169		)	(1,715		)
Deferred tax liabilities	(117,390		)	(108,590		)
Net deferred tax liabilities	$	(11,988	)	$	(9,750	)

Summary of tax credit carryforwards

As of January 31, 2017, we had the following foreign and U.S. Federal and state carryforwards for income tax return purposes:



Credit or carryforward	As of January 31, 2017		Expiration
Federal credits and carryforwards:
Research and experimentation credit carryforward	$	99,194	Fiscal years 2019 - 2037
Net operating loss carryforward	$	13,863	Fiscal years 2020 - 2037
Foreign tax credits	$	12,297	Fiscal years 2020 - 2027
Alternative minimum tax credits	$	2,682	No expiration
Childcare credits	$	1,939	Fiscal years 2023 - 2037
State income tax credits and carryforwards:
Net operating loss carryforward	$	175,233	Fiscal years 2018 - 2037
Research and experimentation	$	22,629	Fiscal years 2018 - 2032
Miscellaneous	$	699	Various
Foreign net operating loss carryforwards	$	19,472	Generally indefinite

Unrecognized tax position reconciliation

The below schedule shows the gross changes in unrecognized tax benefits associated with uncertain tax positions for the fiscal years ending January 31, 2017 and 2016:



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
Gross increases—tax positions in prior period	3,211
Gross decreases—tax positions in prior period	(2,520		)
Gross increases—tax positions in current period	7,513
Settlements	(378		)
Lapse of statute of limitations	(1,335		)
Cumulative translation adjustment	1,964
Unrecognized tax benefits as of January 31, 2017	$	57,129