Income Taxes

9 Months Ended

Oct. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We compute our tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from continuing operations and adjusting for discrete items arising in that quarter. In connection with the Acquisition of Attivo, we recorded a net deferred tax liability primarily attributable to identifiable acquired intangibles. This net deferred tax liability is considered an additional source of income to support the realizability of the Company's deferred tax asset, and as a result we released a portion of the U.S. valuation allowance and recorded a one-time discrete tax benefit of $9.7 million for the nine months ended October 31, 2022.

We had an effective tax rate of (0.6)% and (0.4)% for the three months ended October 31, 2022 and 2021, respectively, and 2.7% and (0.3)% for the nine months ended October 31, 2022 and 2021, respectively. We have incurred U.S. operating losses and have minimal profits or offsetting loss carryforwards in certain foreign jurisdictions.