Income Taxes (Tables)

12 Months Ended

Jan. 31, 2019

The geographical breakdown of loss before provision for income taxes is as follows (in thousands):

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*As adjusted to reflect the impact of the full retrospective adoption of ASC 606. For further information, see Note 2.

The components of the provision for income taxes are as follows (in thousands):

The reconciliation of the federal statutory income tax rate and effective income tax rate is as follows (in thousands):



	Year Ended January 31,
	2017			2018			2019
	(* As Adjusted)			(* As Adjusted)
Tax at federal statutory rate	$	(74,680	)	$	(51,314	)	$	(37,227	)
State tax, net of federal benefit	276			351			(469		)
Stock-based compensation expense	(5,242		)	(9,953		)	(28,437		)
Research and development tax credits	(1,570		)	(7,629		)	(10,371		)
Foreign rate differential	15,878			18,667			12,299
Change in valuation allowance	65,861			(44,784		)	85,533
Foreign on-shoring intellectual property	—			—			(20,371		)
Remeasurement of deferred tax assets and liabilities due to tax reform	—			97,280			—
Other	1,364			1,271			132
Provision for income taxes	$	1,887		$	3,889		$	1,089

The significant components of our deferred tax assets and liabilities were as follows (in thousands):



	January 31,
	2018			2019
	(As Adjusted*)
Deferred tax assets:
Net operating loss carryforwards	$	127,621		$	189,117
Tax credit carryover	33,105			50,848
Accruals and reserves	1,809			12,506
Deferred revenue	38,816			43,579
Stock-based compensation expense	24,133			31,743
Depreciation and amortization	15,367			19,578
Charitable contribution carryforwards	2,892			2,850
Other	465			81
Total deferred tax assets	$	244,208		$	350,302
Valuation allowance	(221,930		)	(307,475		)
Total deferred tax assets, net of valuation allowance	$	22,278		$	42,827
Deferred tax liabilities:
Deferred commissions	$	(21,218	)	$	(27,537	)
Convertible debt	—			(14,230		)
Total deferred tax liabilities	$	(21,218	)	$	(41,767	)
Net deferred tax assets	$	1,060		$	1,060

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*As adjusted to reflect the impact of the full retrospective adoption of ASC 606.

The activity related to the unrecognized tax benefits is as follows (in thousands):



	Year Ended January 31,
	2017			2018			2019
Gross unrecognized tax benefits—beginning balance	$	15,470		$	6,375		$	12,401
Decreases related to tax positions taken during prior years	(11,286		)	(24		)	(845		)
Increases related to tax positions taken during prior years	—			619			—
Increases related to tax positions taken during current year	2,191			5,431			7,335
Gross unrecognized tax benefits—ending balance	$	6,375		$	12,401		$	18,891