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Income Tax
6 Months Ended
Jul. 31, 2020
Income Tax Disclosure [Abstract]  
Income Tax Income Tax

 Autodesk had income tax expense of $30.8 million, relative to pre-tax income of $129.0 million for the three months ended July 31, 2020, and income tax expense of $26.3 million, relative to pre-tax income of $66.5 million for the three months ended July 31, 2019. Autodesk had income tax expense of $54.8 million, relative to pre-tax income of $219.5 million for the six months ended July 31, 2020, and income tax expense of $59.1 million, relative to pre-tax income of $75.1 million for the six months ended July 31, 2019. Income tax expense for the three and six months ended July 31, 2020, increased and decreased, respectively, as a result of the jurisdictional mix of year-to-date earnings relative to the worldwide annual effective tax rate.

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.

The Company anticipates a significant increase in U.S. taxable income in fiscal 2021 due to current year increase in global earnings. We currently forecast the utilization of U.S. deferred tax assets to offset U.S. taxable income resulting from the inclusion of foreign earnings. While increased U.S. taxable income is considered positive evidence, we believe that the cumulative losses should be given more weight and have maintained the valuation allowance on our U.S. deferred tax assets.

As Autodesk continually strives to optimize the overall business model, tax planning strategies may become feasible and prudent allowing the Company to realize many of the deferred tax assets that are offset by a valuation allowance; therefore, Autodesk will continue to evaluate the ability to utilize the deferred tax assets each quarter, both in the U.S. and in foreign jurisdictions, based on all available evidence, both positive and negative.

As of July 31, 2020, the Company had $222.4 million of gross unrecognized tax benefits, of which $204.7 million would reduce our valuation allowance, if recognized. The remaining $17.7 million would impact the effective tax rate, if recognized. 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.