Income Taxes (Tables)

12 Months Ended

Jan. 31, 2020

Income Tax Disclosure [Abstract]

Components of Income before Income Taxes

The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2020		2019		2018
United States	$	305,339	$	222,743	$	140,172
Foreign	8,358		15,900		25,599
Total	$	313,697	$	238,643	$	165,771

Components of Provision for Income Taxes

Provision for income taxes consisted of the following for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2020			2019			2018
Current provision:
Federal	$	11,143		$	5,466		$	5,315
State	4,695			4,089			209
Foreign	3,404			7,438			8,022
Total	$	19,242		$	16,993		13,546
Deferred provision:
Federal	(1,063		)	(1,910		)	1,681
State	(517		)	(619		)	330
Foreign	(5,083		)	(5,653		)	(963		)
Total	$	(6,663	)	$	(8,182	)	$	1,048
Provision for income taxes	$	12,579		$	8,811		$	14,594

Reconciliation of Statutory Federal Income Tax to Effective Tax

Provision for income taxes differed from the amount computed by applying the federal statutory income tax rate of 21.0%, 21.0%, and 33.8% for the fiscal years ended January 31, 2020, 2019, and 2018, respectively, to income before income taxes as a result of the following for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2020			2019			2018
Federal tax statutory tax rate	$	65,876		$	50,115		$	56,047
State taxes	3,035			3,139			3,936
Tax credits	(23,468		)	(21,415		)	(9,409		)
Domestic manufacturing deduction	—			—			(1,096		)
Stock-based compensation	(34,569		)	(33,332		)	(37,347		)
Foreign rate differential	411			610			(2,207		)
Valuation allowance	7,408			6,666			4,010
Impact of foreign operations	470			3,381			4,842
Foreign derived intangible income deduction (FDII)(1)	(4,836		)	(2,086		)	—
Others(1)	(1,748		)	1,733			(4,182		)
Provision for income taxes	$	12,579		$	8,811		$	14,594

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(1) Note that prior periods have been adjusted due to prior period reclassifications.

Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands):

	January 31,
	2020			2019
Deferred Tax Assets:
Accruals and reserves	$	10,355		$	7,678
State income taxes	931			116
Stock-based compensation(1)	9,861			5,180
Net operating loss carryforward	32,916			2,885
Tax credit carryforward	21,458			15,411
Lease liabilities(2)	13,808			—
Other	217			435
Gross Deferred Tax Assets	$	89,546		$	31,705
Valuation Allowance	(22,694		)	(15,385		)
Total Deferred Tax Assets	$	66,852		$	16,320
Deferred Tax Liabilities:
Property and equipment	$	(650	)	$	(822	)
Intangible assets	(33,518		)	(7,159		)
Expensed internal-use software	(974		)	(608		)
Lease right-of-use assets(2)	(12,717		)	—
Deferred costs(1)	(8,922		)	(7,888		)
Other(1)	(619		)	—
Total Deferred Tax Liabilities	$	(57,400	)	$	(16,477	)
Net Deferred Tax Assets (Liabilities)	$	9,452		$	(157	)

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(1) Note that prior periods have been adjusted due to prior period reclassifications.

(2)

Note that current period classifications reflect the adoption of Topic 842.

Summary of Changes in Total Gross Amount of Unrecognized Tax Benefits

The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands):

	Fiscal Year Ended January 31,
	2020			2019			2018
Beginning balance	$	12,597		$	11,398		$	7,868
Increases related to tax positions taken during the prior period	796			968			256
Increases related to tax positions taken during the current period	3,420			2,697			4,032
Decreases related to tax positions taken during the prior period	(128		)	(1,754		)	(67		)
Audit settlements	—			(403		)	—
Lapse of statute of limitations	(2,170		)	(309		)	(691		)
Ending balance	$	14,515		$	12,597		$	11,398