Income Taxes

6 Months Ended

Jul. 31, 2023

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.

We had an effective tax rate of (1.7)% and 8.4% for the three months ended July 31, 2023 and 2022, respectively, and (1.3)% and 4.4% for the six months ended July 31, 2023 and 2022, respectively. We have incurred U.S. operating losses and have profits or offsetting loss carryforwards in certain foreign jurisdictions.

In connection with the Attivo Acquisition, 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 valuation allowance and recorded a one-time discrete tax benefit of $9.7 million for the three and six months ended July 31, 2022.