Note 12 - Income Taxes

9 Months Ended

Oct. 31, 2015

Notes to Financial Statements

Income Tax Disclosure [Text Block]

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.           Income taxes

We recorded a provision for and benefit from income taxes of $2.6 million and $0.6 million for the three months ended October 31, 2015 and November 1, 2014, respectively.  The provision for income taxes was $6.1 million and $3.1 million for the nine months ended October 31, 2015 and November 1, 2014, respectively. The increase in tax expense is primarily attributable to the increase in profitability in taxable jurisdictions in the third quarter of fiscal year 2016 as compared to the same period in fiscal year 2015 and changes in tax reserves. During the three and nine months ended October 31, 2015 and November 1, 2014, we were unable to reasonably project our annual effective tax rate, and therefore computed our provision for income taxes based on year-to-date actual financial results. Included in our provision for income taxes are foreign exchange gains or losses on unsettled income tax liabilities.