Income Taxes (Tables)

12 Months Ended

Jan. 31, 2015

Schedule of Income before Income Tax, Domestic and Foreign

Domestic and foreign pre-tax income was as follows:



Year ended January 31,	2015			2014			2013
Domestic	$	(2,992	)	$	(754	)	$	9,670
Foreign	170,749			163,822			131,665
Total pre-tax income	$	167,757		$	163,068		$	141,335

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes was as follows:



Year ended January 31,	2015			2014			2013
Current:
Federal	$	(223	)	$	(366	)	$	(210	)
State	444			355			(65		)
Foreign	13,677			6,585			4,964
Total current	13,898			6,574			4,689
Deferred:
Federal and state	7,687			1,333			350
Foreign	996			1,603			(2,338		)
Total deferred	8,683			2,936			(1,988		)
Total provision for income taxes	$	22,581		$	9,510		$	2,701

Provision for Income Taxes

Actual income tax expense is different from that which would have been computed by applying the statutory federal income tax rate to our income before income tax. A reconciliation of income tax expense as computed at the U.S. federal statutory income tax rate to the provision for income taxes is as follows:



Year ended January 31,	2015			2014			2013
Federal tax, at statutory rate	$	58,725		$	57,074		$	49,467
State tax, net of federal benefit	900			355			(65		)
Impact of international operations including withholding taxes and other reserves	(27,042		)	(46,632		)	(50,275		)
Repatriation of foreign subsidiary earnings	21,969			20,367			12,661
Foreign tax credits	(5,143		)	(5,489		)	(8,203		)
Tax credits (excluding foreign tax credits)	(8,089		)	(12,571		)	(11,782		)
Amortization of deferred charge	1,168			(2,311		)	—
Change in valuation allowance	(26,443		)	(5,929		)	5,978
Stock-based compensation expense	2,929			2,593			1,895
Non-deductible meals and entertainment	1,238			1,087			1,021
Other, net	2,369			966			2,004
Provision for income taxes	$	22,581		$	9,510		$	2,701

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and carryforwards, which gave rise to significant portions of deferred tax assets and liabilities, were as follows:



As of January 31,	2015			2014
Deferred tax assets:
Reserves and allowances	$	11,188		$	10,733
Accrued expenses not currently deductible	21,475			20,118
Stock-based compensation expense	6,988			7,839
Net operating loss carryforwards	34,618			40,245
Tax credit carryforwards	74,235			90,852
Purchased technology and other intangible assets	3,047			3,267
Deferred revenue	2,002			3,680
Other, net	6,762			4,844
Total gross deferred tax assets	160,315			181,578
Less valuation allowance	(91,956		)	(126,989		)
Deferred tax assets	68,359			54,589
Deferred tax liabilities:
Intangible assets	(12,976		)	(5,699		)
Undistributed foreign earnings	(50,163		)	(32,132		)
Convertible debt	(8,918		)	(11,276		)
Depreciation of property, plant, and equipment	(997		)	(8		)
Deferred tax liabilities	(73,054		)	(49,115		)
Net deferred tax (liabilities) assets	$	(4,695	)	$	5,474

Summary of Tax Credit Carryforwards

As of January 31, 2015, we had the following foreign and U.S. Federal and state carryforwards for income tax return purposes:



Credit or carryforward	As of January 31, 2015		Expiration
Federal credits and carryforwards:
Research and experimentation credit carryforward	$	79,817	Fiscal 2019 - 2035
Net operating loss carryforward	$	112,807	Fiscal 2020 - 2035
Foreign tax credits	$	17,167	Fiscal 2016 - 2025
Alternative minimum tax credits	$	2,682	No expiration
Childcare credits	$	1,601	Fiscal 2023 - 2035
State income tax credits and carryforwards:
Net operating loss carryforward	$	214,660	Fiscal 2016 - 2035
Research and experimentation	$	18,979	Fiscal 2016 - 2030
Miscellaneous	$	932	Various
Foreign net operating loss carryforwards	$	35,650	Generally indefinite

Unrecognized Tax Position Reconciliation

The below schedule shows the gross changes in unrecognized tax benefits associated with uncertain tax positions for the years ending January 31, 2015 and 2014:



Unrecognized tax benefits as of January 31, 2013	$	38,782
Gross increases—tax positions in prior period	3,863
Gross decreases—tax positions in prior period	(10,313		)
Gross increases—tax positions in current period	3,900
Settlements	(1,581		)
Lapse of statute of limitations	(2,982		)
Cumulative translation adjustment	(348		)
Unrecognized tax benefits as of January 31, 2014	$	31,321
Gross increases—tax positions in prior period	7,022
Gross decreases—tax positions in prior period	(279		)
Gross increases—tax positions in current period	4,904
Settlements	(126		)
Lapse of statute of limitations	(2,709		)
Cumulative translation adjustment	(362		)
Unrecognized tax benefits as of January 31, 2015	$	39,771