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Income Tax
6 Months Ended
Jul. 31, 2015
Income Tax Disclosure [Abstract]  
Income Tax
Income Tax

Autodesk's effective tax rate before discrete items was 25% and 24% during the three and six months ended July 31, 2015, respectively. These rates were lower than the federal statutory tax rate of 35% primarily due to foreign earnings taxed at lower rates. During the three months ended July 31, 2015, Autodesk recorded a valuation allowance against the company's U.S. federal and remaining state deferred tax assets of $213.6 million, of which $205.3 million was recorded as a discrete tax expense.

Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance, Autodesk considered recent cumulative losses in the United States arising from the Company's business model transition as a significant piece of negative evidence. Therefore, in the three months ended July 31, 2015, Autodesk established a valuation allowance against the Company's U.S. federal and remaining state deferred tax assets of $213.6 million.

As of July 31, 2015, the Company had $251.1 million of gross unrecognized tax benefits, excluding interest, of which approximately $232.7 million represents the amount of unrecognized tax benefits that would impact the effective tax rate, if recognized. However, this rate impact would be offset to the extent that recognition of unrecognized tax benefits currently presented as a reduction of deferred tax assets would increase the valuation allowance.  It is possible that the amount of unrecognized tax benefits will change in the next twelve months; however, an estimate of the range of the possible change cannot be made at this time.