Now turning to our cash and balance sheet items, we entered the quarter with $1.08 billion in cash and short term investments. Of this balance, 55% is held within the United States. We generated $232 million in cash from operations in the quarter including an expected annual payment from a large customer. We are raising our operating cash flow target for the year to approximately $190 to $210 million driven primarily by an improved customer collections environment.
This target does not include any impact from our tentative tax settlement from the IRS that we detailed last quarter. While still subject to further approval by the Federal Government, we would expect the settlement to result in cash payments of approximately $50 million over the next 12 months which would be fully offset by tax benefits in future years. We also expect that the settlement would finally permit certain tax refund claims of around $35 million from other years to be paid to the company in 2010.