(16)	*Income Taxes*—The provision for income taxes was comprised of the following:


	Three months ended October 31,					Nine months ended October 31,
	2011			2010		2011			2010
Income tax expense (benefit)	$	(1,445	)	$	854	$	(4,429	)	$	2,432

Generally, the provision for income taxes is the result of the mix of profits and losses earned by us and our subsidiaries in tax jurisdictions with a broad range of income tax rates, withholding taxes (primarily in certain foreign jurisdictions), changes in tax reserves, and the application of valuation allowances on deferred tax assets. Accounting guidance requires that on a quarterly basis we evaluate our provision for income tax expense (benefit) of U.S. and non-U.S. jurisdictions based on our projected results of operations for the full year and record an adjustment in the current quarter.


	Three months ended October 31,						Nine months ended October 31,
	2011			2010			2011			2010
Effective Tax Rate		(6	%)		5	%		(20	%)		(12	%)
Period specific items benefit	$	(3,719	)	$	(359	)	$	(8,770	)	$	(2,281	)

Without period specific items, our effective tax rate is 20% for the nine months ended October 31, 2011. Inclusive of net favorable period specific items of $(8,770), our effective tax rate is (20%). For the three and nine month periods ending October 31, 2011 our favorable period specific items resulted primarily from decreases in liabilities for uncertain tax positions. Under our forecast of income for the year, we project a 2% effective tax rate inclusive of period specific items.

Our effective tax rate differs from tax computed at the U.S. federal statutory rate of 35% primarily due to:

•

The benefit of lower tax rates on earnings of foreign subsidiaries;

•

Reduction in reserves for uncertain tax positions; and

•

The application of tax incentives for research and development.

These differences are partially offset by:

•

U.S. losses and tax credits for which no tax benefit has been recognized;

•

Non-deductible employee stock purchase plan compensation expense; and

•

Withholding taxes in certain foreign jurisdictions.

Actual results may differ significantly from our current projections. Further, on a quarterly basis, our effective tax rate could fluctuate considerably and could be adversely affected to the extent earnings are higher or lower than anticipated in countries where we have corresponding higher or lower statutory rates.

As of October 31, 2011, we had a liability of $34,432 for income taxes associated with uncertain income tax positions. All of these tax positions are classified as long-term liabilities in our condensed consolidated balance sheet. We are not able to reasonably estimate the timing of any cash payments required to settle these liabilities; however, we generally do not anticipate the settlement of the liabilities will require payment of cash within the next twelve months. Further, certain liabilities may result in the reduction of deferred tax assets rather than settlement in cash. We do not believe that the ultimate settlement of these liabilities will materially affect our liquidity.