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



Three months ended April 30,	2012		2011
Income tax expense	$	781	$	611

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 an adjustment in the quarter. Because some of our consolidated entities have losses for which no tax benefit is recognized, their provisions for income tax expense (benefit) must be separately evaluated.



Three months ended April 30,	2012			2011
Effective Tax Rate	3		%	(35		)%
Period specific items benefit	$	(1,327	)	$	(1,334	)

For the three months ended April 30, 2012, our effective tax rate is 3% inclusive of $1,327 net favorable period specific items that are primarily due to a reduction in liabilities for uncertain tax positions. Without period specific items, our effective tax rate is 7% for the three months ended April 30, 2012. We project an effective tax rate of 7% inclusive of period specific items for the year ended January 31, 2013.

Our full year effective tax rate 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;

•Reduction in reserves for uncertain tax positions;

•Forecasted utilization of net operating loss carryforwards for which no previous benefit was recognized; 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, on a quarterly basis, our effective tax rate could fluctuate considerably and could be adversely affected to the extent earnings are higher or lower than anticipated in countries where we have corresponding higher or lower statutory rates.

As of April 30, 2012, we had a liability of $32,532 for income taxes associated with uncertain income tax positions. All of these tax positions are classified as long-term liabilities in our condensed consolidated balance sheet, as we generally do not anticipate the settlement of the liabilities will require payment of cash within the next twelve months. Further, 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 these liabilities and do not believe that the ultimate settlement of these liabilities will materially affect our liquidity.