INCOME TAXES INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income (loss) before provision for income taxes

The components of income (loss) before provision for income taxes for the years ended January 31, 2018, 2017, and 2016 were as follows:

	Year Ended January 31,
(in thousands)	2018			2017			2016
Domestic	$	(44,502	)	$	(60,722	)	$	(43,471	)
Foreign	63,402			37,248			66,651
Total income (loss) before provision for income taxes	$	18,900		$	(23,474	)	$	23,180

Schedule of provision for income taxes

The provision for income taxes for the years ended January 31, 2018, 2017, and 2016 consisted of the following:

	Year Ended January 31,
(in thousands)	2018			2017			2016
Current provision (benefit) for income taxes:
Federal	$	4,364		$	604		$	(2,997	)
State	1,215			989			1,300
Foreign	24,308			18,120			8,289
Total current provision for income taxes	29,887			19,713			6,592
Deferred provision (benefit) for income taxes:
Federal	4,734			(8,179		)	2,244
State	(58		)	(842		)	12
Foreign	(12,209		)	(7,920		)	(7,896		)
Total deferred benefit for income taxes	(7,533		)	(16,941		)	(5,640		)
Total provision for income taxes	$	22,354		$	2,772		$	952

Reconciliation of the U.S. federal statutory rate to the entity's effective tax rate on income (loss) before income taxes

The reconciliation of the U.S. federal statutory rate to our effective tax rate on income (loss) before provision for income taxes for the years ended January 31, 2018, 2017, and 2016 was as follows:

	Year Ended January 31,
(in thousands)	2018			2017			2016
U.S. federal statutory income tax rate	33.8		%	35.0		%	35.0		%
Income tax provision (benefit) at the U.S. federal statutory rate	$	6,394		$	(8,215	)	$	8,115
State income tax provision (benefit)	1,792			(312		)	(79		)
Foreign tax rate differential	(9,434		)	(5,794		)	(3,068		)
Tax incentives	(3,891		)	(3,507		)	(12,293		)
Valuation allowances	14,539			(3,640		)	(7,767		)
Stock-based and other compensation	(8,656		)	2,522			3,562
Non-deductible expenses	(2,091		)	5,315			6,061
Tax credits	(307		)	(112		)	(482		)
Tax contingencies	5,017			5,566			(6,281		)
Tax effects of reorganizations and liquidations	—			975			6,136
U.S. tax effects of foreign operations	8,591			9,542			7,574
Impact of the 2017 Tax Act	9,641			—			—
Other, net	759			432			(526		)
Total provision for income taxes	$	22,354		$	2,772		$	952
Effective income tax rate	118.3		%	(11.8		)%	4.1		%

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities consisted of the following at January 31, 2018 and 2017:

	January 31,
(in thousands)	2018			2017
Deferred tax assets:
Accrued expenses	$	7,637		$	10,627
Deferred revenue	2,421			3,953
Loss carryforwards	47,009			125,986
Tax credits	11,935			7,972
Stock-based and other compensation	17,568			20,187
Capitalized research and development expenses	10,316			4,146
Other, net	3,749			2,672
Total deferred tax assets	100,635			175,543
Deferred tax liabilities:
Goodwill and other intangible assets	(36,977		)	(50,679		)
Unremitted earnings of foreign subsidiaries	(12,257		)	(18,215		)
Other, net	(712		)	(2,344		)
Total deferred tax liabilities	(49,946		)	(71,238		)
Valuation allowance	(55,116		)	(108,609		)
Net deferred tax liabilities	$	(4,427	)	$	(4,304	)
Recorded as:
Deferred tax assets	$	30,878		$	21,510
Deferred tax liabilities	(35,305		)	(25,814		)
Net deferred tax liabilities	$	(4,427	)	$	(4,304	)

Schedule of valuation allowance

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2018 and 2017:

	Year Ended January 31,
(in thousands)	2018			2017
Valuation allowance, beginning of year	$	(108,609	)	$	(115,756	)
(Benefit from) provision for income taxes	2,868			3,640
Adoption of ASU No. 2016-09	(17,407		)	—
Impact of 2017 Tax Act	70,832			—
Additional paid-in capital	—			3,204
Business combinations	(2,061		)	—
Currency translation adjustment	(739		)	303
Valuation allowance, end of year	$	(55,116	)	$	(108,609	)

Schedule of aggregate changes in the balance of gross unrecognized tax benefits

For the years ended January 31, 2018, 2017, and 2016, the aggregate changes in the balance of gross unrecognized tax benefits were as follows:

	Year Ended January 31,
(in thousands)	2018			2017			2016
Gross unrecognized tax benefits, beginning of year	$	148,639		$	142,271		$	159,648
Increases related to tax positions taken during the current year	12,260			11,034			9,465
Increases as a result of business combinations	43			—			985
Increases related to tax positions taken during prior years	9,226			585			2,514
Increases (decreases) related to foreign currency exchange rates	2,449			648			(741		)
Reductions for tax positions of prior years	(8,266		)	(5,094		)	(13,613		)
Reductions for settlements with tax authorities	(140		)	(145		)	(13,811		)
Reduction for rate change due to the 2017 Tax Act	(48,004		)	—			—
Lapses of statutes of limitations	(498		)	(660		)	(2,176		)
Gross unrecognized tax benefits, end of year	$	115,709		$	148,639		$	142,271

Schedule of income tax returns under examination in major tax jurisdictions

As of January 31, 2018, income tax returns are under examination in the following significant tax jurisdictions:

Jurisdiction	Tax Years
Canada	January 31, 2011 - January 31, 2012
United Kingdom	December 31, 2006; January 31, 2008
India	March 31, 2007 - March 31, 2008; March 31, 2010 - March 31, 2013
Israel	January 31, 2014 - January 31, 2016