Cover Page
Cover Page - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2020 | May 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32224 | |
Entity Registrant Name | salesforce.com, inc. | |
Entity Central Index Key | 0001108524 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3320693 | |
Entity Address, Address Line One | Salesforce Tower | |
Entity Address, Address Line Two | 415 Mission Street, 3rd Fl | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 901-7000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | CRM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 901 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 5,772 | $ 4,145 |
Marketable securities | 4,030 | 3,802 |
Accounts receivable, net | 3,076 | 6,174 |
Costs capitalized to obtain revenue contracts, net | 881 | 926 |
Prepaid expenses and other current assets | 954 | 916 |
Total current assets | 14,713 | 15,963 |
Property and equipment, net | 2,518 | 2,375 |
Operating lease right-of-use assets, net | 2,983 | 3,040 |
Noncurrent costs capitalized to obtain revenue contracts, net | 1,171 | 1,348 |
Strategic investments | 1,902 | 1,963 |
Goodwill | 25,266 | 25,134 |
Intangible assets acquired through business combinations, net | 4,488 | 4,724 |
Capitalized software and other assets, net | 582 | 579 |
Total assets | 53,623 | 55,126 |
Current liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 2,989 | 3,433 |
Operating lease liabilities, current | 742 | 750 |
Unearned revenue | 9,112 | 10,662 |
Total current liabilities | 12,843 | 14,845 |
Noncurrent debt | 2,673 | 2,673 |
Noncurrent operating lease liabilities | 2,422 | 2,445 |
Other noncurrent liabilities | 1,120 | 1,278 |
Total liabilities | 19,058 | 21,241 |
Stockholders’ equity: | ||
Common stock | 1 | 1 |
Additional paid-in capital | 32,739 | 32,116 |
Accumulated other comprehensive loss | (135) | (93) |
Retained earnings | 1,960 | 1,861 |
Total stockholders’ equity | 34,565 | 33,885 |
Total liabilities and stockholders’ equity | $ 53,623 | $ 55,126 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | ||
Revenues: | |||
Total revenues | $ 4,865 | $ 3,737 | |
Cost of revenues: | |||
Total cost of revenues | [1],[2] | 1,254 | 914 |
Gross profit | 3,611 | 2,823 | |
Operating expenses: | |||
Research and development | [1],[2] | 859 | 554 |
Marketing and sales | [1],[2] | 2,390 | 1,697 |
General and administrative | [1],[2] | 502 | 362 |
Total operating expenses | [1],[2] | 3,751 | 2,613 |
Income (loss) from operations | (140) | 210 | |
Gains on strategic investments, net | 192 | 281 | |
Other expense | (5) | (9) | |
Income before benefit from (provision for) income taxes | 47 | 482 | |
Benefit from (provision for) income taxes | 52 | (90) | |
Net income | $ 99 | $ 392 | |
Basic net income per share (in dollars per share) | $ 0.11 | $ 0.51 | |
Diluted net income per share (in dollars per share) | $ 0.11 | $ 0.49 | |
Shares used in computing basic net income per share (in shares) | 896 | 771 | |
Shares used in computing diluted net income per share (in shares) | 913 | 793 | |
Subscription and support | |||
Revenues: | |||
Total revenues | $ 4,575 | $ 3,496 | |
Cost of revenues: | |||
Total cost of revenues | [1],[2] | 966 | 678 |
Professional services and other | |||
Revenues: | |||
Total revenues | 290 | 241 | |
Cost of revenues: | |||
Total cost of revenues | [1],[2] | $ 288 | $ 236 |
[1] | Amounts include amortization of intangible assets acquired through business combinations, as follows: Three Months Ended April 30, 2020 2019 Cost of revenues $ 159 $ 61 Marketing and sales 112 68 | ||
[2] | Amounts include stock-based expense, as follows: Three Months Ended April 30, 2020 2019 Cost of revenues $ 52 $ 43 Research and development 166 81 Marketing and sales 223 177 General and administrative 63 42 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Stock-based expenses | $ 504 | $ 343 |
Cost of revenues | ||
Amortization of intangibles acquired through business combinations | 159 | 61 |
Stock-based expenses | 52 | 43 |
Research and development | ||
Stock-based expenses | 166 | 81 |
Marketing and sales | ||
Amortization of intangibles acquired through business combinations | 112 | 68 |
Stock-based expenses | 223 | 177 |
General and administrative | ||
Stock-based expenses | $ 63 | $ 42 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 99 | $ 392 |
Other comprehensive loss, net of reclassification adjustments: | ||
Foreign currency translation and other losses | (23) | (13) |
Unrealized gains (losses) on marketable securities and privately held debt securities | (25) | 8 |
Other comprehensive loss, before tax | (48) | (5) |
Tax effect | 6 | (2) |
Other comprehensive loss, net | (42) | (7) |
Comprehensive income | $ 57 | $ 385 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Jan. 31, 2019 | 770 | ||||
Beginning balance at Jan. 31, 2019 | $ 15,605 | $ 1 | $ 13,927 | $ (58) | $ 1,735 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued (in shares) | 5 | ||||
Common stock issued | 113 | 113 | |||
Stock-based expenses | 343 | 343 | |||
Other comprehensive loss, net of tax | (7) | (7) | |||
Net income | 392 | 392 | |||
Ending balance (in shares) at Apr. 30, 2019 | 775 | ||||
Ending balance at Apr. 30, 2019 | 16,446 | $ 1 | 14,383 | (65) | 2,127 |
Beginning balance (in shares) at Jan. 31, 2020 | 893 | ||||
Beginning balance at Jan. 31, 2020 | 33,885 | $ 1 | 32,116 | (93) | 1,861 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued (in shares) | 6 | ||||
Common stock issued | 119 | 119 | |||
Stock-based expenses | 504 | 504 | |||
Other comprehensive loss, net of tax | (42) | (42) | |||
Net income | 99 | 99 | |||
Ending balance (in shares) at Apr. 30, 2020 | 899 | ||||
Ending balance at Apr. 30, 2020 | $ 34,565 | $ 1 | $ 32,739 | $ (135) | $ 1,960 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Operating activities: | ||
Net income | $ 99 | $ 392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 658 | 437 |
Amortization of costs capitalized to obtain revenue contracts, net | 247 | 209 |
Expenses related to employee stock plans | 504 | 343 |
Gains on strategic investments, net | (192) | (281) |
Changes in assets and liabilities, net of business combinations: | ||
Accounts receivable, net | 3,094 | 2,774 |
Costs capitalized to obtain revenue contracts, net | (25) | (124) |
Prepaid expenses and other current assets and other assets | (11) | (97) |
Accounts payable | 147 | 15 |
Accrued expenses and other liabilities | (904) | (560) |
Operating lease liabilities | (203) | (164) |
Unearned revenue | (1,555) | (979) |
Net cash provided by operating activities | 1,859 | 1,965 |
Investing activities: | ||
Business combinations, net of cash acquired | (103) | (10) |
Purchases of strategic investments | (342) | (159) |
Sales of strategic investments | 601 | 194 |
Purchases of marketable securities | (834) | (734) |
Sales of marketable securities | 337 | 86 |
Maturities of marketable securities | 227 | 56 |
Capital expenditures | (323) | (159) |
Net cash used in investing activities | (437) | (726) |
Financing activities: | ||
Proceeds from employee stock plans | 258 | 219 |
Principal payments on financing obligations | (48) | (11) |
Repayments of debt | (1) | (1) |
Net cash provided by financing activities | 209 | 207 |
Effect of exchange rate changes | (4) | (5) |
Net increase in cash and cash equivalents | 1,627 | 1,441 |
Cash and cash equivalents, beginning of period | 4,145 | 2,669 |
Cash and cash equivalents, end of period | 5,772 | 4,110 |
Cash paid during the period for: | ||
Interest | 46 | 50 |
Income taxes, net of tax refunds | $ 58 | $ 18 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Salesforce.com, inc. (the “Company”) is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company introduced its first CRM solution in 2000, and has since expanded its service offerings into new areas and industries with new editions, features and platform capabilities. The Company's core mission is to empower its customers to connect with their customers in entirely new ways through cloud, mobile, social, blockchain, voice, advanced analytics and artificial intelligence (“AI”) technologies. Salesforce’s Customer 360 is an integrated platform that unites sales, service, marketing, commerce, integration, analytics and more to give companies a single, shared view of their customers. Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ending January 31, 2021. Basis of Presentation The accompanying condensed consolidated balance sheet as of April 30, 2020 and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the three months ended April 30, 2020 and 2019 are unaudited. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of April 30, 2020, and its results of operations, including its comprehensive income, stockholders' equity and its cash flows for the three months ended April 30, 2020 and 2019. All adjustments are of a normal recurring nature. The results for the three months ended April 30, 2020 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2020. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto. Significant estimates and assumptions made by management include the determination of: • the fair value of assets acquired and liabilities assumed for business combinations; • the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; • the valuation of privately-held strategic investments, including impairments; • the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions; • the average period of benefit associated with costs capitalized to obtain revenue contracts; • the useful lives of intangible assets; and • the fair value of certain stock awards issued. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. In December 2019, the novel coronavirus and resulting disease (“COVID-19”) was reported and in March 2020 the World Health Organization declared it a pandemic. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration of the outbreak, impact on the Company’s customers and its sales cycles, and impact on the Company’s employees, as discussed in more detail in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. During the three months ended April 30, 2020, this uncertainty resulted in a higher level of judgment related to the Company’s estimates and assumptions concerning variable consideration related to revenue recognition, allowances for credit losses, impairment of strategic investments, contract termination costs related to customer and employee events and operating lease right of use assets impairment. As of the date of issuance of the financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments, or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and such changes will be recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from these estimates and any such differences may be material to the Company’s financial statements. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's offerings operate on its single Customer 360 Platform and most of the Company's products are deployed in a nearly identical way, and the Company’s CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. In February 2020, former co-CEO and director Keith Block resigned his positions from the Company. Prior to his resignation, Mr. Block was identified as a co-CODM along with Marc Benioff, CEO and Chair of the Board. Upon Mr. Block’s resignation, Mr. Benioff assumed all Mr. Block’s responsibilities and, as of the first quarter of fiscal 2021, is the sole individual that evaluates the operating results of the Company to assess performance and allocate resources. Accordingly, the Company determined that the chief executive officer also serves as the CODM for the purposes of segment reporting. Despite the change in the chief operating decision maker, the Company determined no change to segment reporting was necessary as there was no change in the components of the Company for which separate financial information is regularly evaluated. Concentrations of Credit Risk, Significant Customers and Investments The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. Receivables are written-off and charged against the recorded allowance when the Company has exhausted collection efforts without success. No single customer accounted for more than five percent of accounts receivable at April 30, 2020 and January 31, 2020. No single customer accounted for five percent or more of total revenue during the three months ended April 30, 2020 and 2019. As of April 30, 2020 and January 31, 2020, assets located outside the Americas were 11 percent and 12 percent of total assets, respectively. As of April 30, 2020 and January 31, 2020, assets located in the United States were 87 percent and 87 percent of total assets, respectively. The Company is also exposed to concentrations of risk in its strategic investment portfolio. As of April 30, 2020, the Company held five investments with carrying values that were individually greater than five percent of its total strategic investments, all of which were privately held. As of January 31, 2020, the Company held five investments that were individually greater than five percent of its total strategic investments, of which one was publicly traded and four were privately held. Revenue Recognition The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management and implementation services. Other revenue consists primarily of training fees. Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through the application of the following steps: • Identification of the contract, or contracts with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and Support Revenues Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement. Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. With the May 2018 acquisition of MuleSoft, Inc. (“MuleSoft”) and the August 2019 acquisition of Tableau Software, Inc. (“Tableau”), subscription and support revenues also includes revenues associated with software licenses. These licenses for on-premises software provide the customer with a right to use the software as it exists when made available. Customers purchase these term licenses through a subscription. Revenues from distinct licenses are generally recognized upfront when the software is made available to the customer. In cases where the Company allocates revenue to software updates and support revenue, the allocated revenue is recognized as the updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually. Typical payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred. Professional Services and Other Revenues The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Training revenues are recognized as the services are performed. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that may include promises to transfer multiple Cloud Services, software licenses, premium support and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Cloud Services and software licenses are distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations generally are distinct. The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines relative fair value using information that may include market conditions or other observable inputs. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include pricing practices or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Costs Capitalized to Obtain Revenue Contracts The Company capitalizes incremental costs of obtaining a non-cancelable subscription and support revenue contract. The capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees, and to a lesser extent (4) success fees paid to partners in emerging markets where the Company has a limited presence. Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which, although longer than the typical initial contract period, reflects the average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years. The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying condensed consolidated statements of operations. During the three months ended April 30, 2020, the Company capitalized $25 million of costs to obtain revenue contracts and amortized $247 million to marketing and sales expense. During the three months ended April 30, 2020, the Company offered its direct sales force a partial minimum commission guarantee that would pay the greater of actual commissions earned or a fixed amount of their variable compensation that would have been otherwise paid if incremental new business was not impacted by the COVID-19 pandemic. As these payments were guaranteed and not a cost to obtain a revenue contract, the amounts were immediately expensed and reflected in the Company’s condensed consolidated statement of operations. During the same period a year ago, the Company capitalized $124 million of costs to obtain revenue contracts and amortized $209 million to marketing and sales expense. Costs capitalized to obtain a revenue contract, net on the Company's condensed consolidated balance sheets totaled $2.1 billion at April 30, 2020 and $2.3 billion at January 31, 2020. There were no impairments of costs to obtain revenue contracts for the three months ended April 30, 2020 and 2019, respectively. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. Marketable Securities The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses, as required by new accounting pronouncement ASU 2016-13 discussed in further detail below. Expected credit losses on securities are recognized in other income (expense), net on the condensed consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income. Strategic Investments The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest. Privately held equity securities which the Company does not have a controlling financial interest in but does exercise significant influence over the investee are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) or impairment. All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains on strategic investments, net on the condensed consolidated statement of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income on the condensed consolidated balance sheet. Valuations of privately held securities are inherently complex due to the lack of readily available market data and require the Company's use of judgment. The carrying value is not adjusted for the Company's privately held equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held debt and equity securities in its strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company recognizes an impairment through the condensed consolidated statement of operations and establishes a new carrying value for the investment. Publicly held equity securities are measured at fair value with changes recorded through gains on strategic investments, net on the condensed consolidated statement of operations. Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivative contracts, which permit net settlement of transactions with the same counterparty, thereby reducing credit-related losses in the event of the financial institutions' nonperformance. As of April 30, 2020 and January 31, 2020, the outstanding foreign currency derivative contracts were recorded at fair value on the condensed consolidated balance sheets. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. In addition, the Company measures its strategic investments, including its publicly held equity securities, privately held debt securities and privately held equity securities for which there has been an observable price change in a same or similar security, at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 5 “Fair Value Measurement.” Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and building improvements 10 to 40 years When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. Capitalized Software Costs The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three Intangible Assets Acquired through Business Combinations Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment Assessment The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable. There were no material impairments of capitalized software, intangible assets, long-lived assets or goodwill during the three months ended April 30, 2020 and 2019, respectively. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statement of operations. In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (or losses) on strategic investments in the condensed consolidated statement of operations. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Finance leases are included in property and equipment, accrued expenses and other liabilities, and other noncurrent liabilities on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease ROU asset is reduced for tenant incentives and excludes any initial direct costs incurred. As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company, such as construction of significant leasehold improvements that are expected to have economic value when the option becomes exercisable. Lease expenses for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Amortization expense of the ROU asset for finance leases is recognized on a straight-line basis over the lease term and interest expense for finance leases is recognized based on the incremental borrowing rate. The Company has lease agreements with lease and non-lease components, which it has elected to combine for all asset classes. In addition, the Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for all of its asset classes. On the lease commencement date the Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease term to operating |
Revenues
Revenues | 3 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenue Subscription and Support Revenue by the Company's service offerings Subscription and support revenues consisted of the following (in millions): Three Months Ended April 30, 2020 2019 Sales Cloud $ 1,245 $ 1,073 Service Cloud 1,252 1,020 Salesforce Platform and Other 1,364 842 Marketing and Commerce Cloud 714 561 $ 4,575 $ 3,496 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions): Three Months Ended April 30, 2020 2019 Americas $ 3,370 $ 2,617 Europe 1,034 755 Asia Pacific 461 365 $ 4,865 $ 3,737 Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 96 percent during the three months ended April 30, 2020 and 2019, respectively. No other country represented more than ten percent of total revenue during the three months ended April 30, 2020 and 2019, respectively. Contract Balances Contract Assets As described in Note 1, subscription and support revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. License revenue is recognized as the licenses are delivered. The Company records a contract asset when revenue recognized on a contract exceeds the billings. The Company's standard billing terms are annual in advance. Contract assets were $454 million as of April 30, 2020 as compared to $449 million as of January 31, 2020, and are included in prepaid expenses and other current assets on the condensed consolidated balance sheet. Impairments of contract assets were immaterial during the three months ended April 30, 2020 and 2019, respectively. Unearned Revenue Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. The Company generally invoices customers in annual installments. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter. The change in unearned revenue was as follows (in millions): Three Months Ended April 30, 2020 2019 Unearned revenue, beginning of period $ 10,662 $ 8,564 Billings and other (1) 3,305 2,714 Contribution from contract asset 5 44 Revenue recognized ratably over time (4,453) (3,488) Revenue recognized over time as delivered (191) (172) Revenue recognized at a point in time (221) (77) Unearned revenue from business combinations 5 0 Unearned revenue, end of period $ 9,112 $ 7,585 (1) Other includes, for example, the impact of foreign currency translation. Revenue recognized ratably over time is generally billed in advance and includes Cloud Services, the related support and advisory services. Revenue recognized over time as delivered includes professional services billed on a time and materials basis, fixed fee professional services and training classes that are primarily billed, delivered and recognized within the same reporting period. Revenue recognized at a point in time substantially consists of on-premise software licenses. Remaining Performance Obligation Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of software license deliveries, average contract terms and foreign currency exchange rates. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors. The Company excludes amounts related to performance obligations that are billed and recognized as they are delivered. This primarily consists of professional services contracts that are on a time-and-materials basis. The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months. Remaining performance obligation consisted of the following (in billions): Current Noncurrent Total As of April 30, 2020 $ 14.5 $ 14.8 $ 29.3 As of January 31, 2020 $ 15.0 $ 15.8 $ 30.8 |
Investments
Investments | 3 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities At April 30, 2020, marketable securities consisted of the following (in millions): Investments classified as Marketable Securities Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 2,312 $ 9 $ (28) $ 2,293 U.S. treasury securities 172 2 0 174 Mortgage backed obligations 269 5 0 274 Asset backed securities 890 3 (4) 889 Municipal securities 165 1 0 166 Foreign government obligations 92 1 0 93 U.S. agency obligations 12 0 0 12 Time deposits 1 0 0 1 Covered bonds 128 0 0 128 Total marketable securities $ 4,041 $ 21 $ (32) $ 4,030 At January 31, 2020, marketable securities consisted of the following (in millions): Investments classified as Marketable Securities Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 2,199 $ 9 $ (1) $ 2,207 U.S. treasury securities 182 1 0 183 Mortgage backed obligations 225 1 0 226 Asset backed securities 779 2 0 781 Municipal securities 157 1 0 158 Foreign government obligations 69 0 0 69 U.S. agency obligations 12 0 0 12 Time deposits 1 0 0 1 Covered bonds 165 0 0 165 Total marketable securities $ 3,789 $ 14 $ (1) $ 3,802 The contractual maturities of the investments classified as marketable securities are as follows (in millions): As of April 30, 2020 January 31, 2020 Due within 1 year $ 1,293 $ 1,332 Due in 1 year through 5 years 2,721 2,466 Due in 5 years through 10 years 16 4 $ 4,030 $ 3,802 As of April 30, 2020, the following marketable securities were in a continuous unrealized loss position (in millions): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate notes and obligations $ 1,463 $ (28) $ 0 $ 0 $ 1,463 $ (28) Asset backed securities 359 (4) 0 0 359 (4) $ 1,822 $ (32) $ 0 $ 0 $ 1,822 $ (32) The unrealized losses for each of the marketable securities ranged from less than $1 million to approximately $2 million. The Company does not believe any of the unrealized losses represent an indication of credit loss based on its evaluation of available evidence as of April 30, 2020. The Company does not intend to sell its investments in a loss position and it is not more likely than not that the Company will be required to sell the investments before recovery of the investment’s amortized basis. The Company notes no credit allowances were recorded as of April 30, 2020. The Company expects to receive the full principal and interest on all of these marketable securities. Investment Income Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in millions): Three Months Ended April 30, 2020 2019 Interest income $ 28 $ 26 Realized gains 1 0 Realized losses (1) 0 Investment income $ 28 $ 26 Strategic Investments Strategic investments by form and measurement category as of April 30, 2020 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 32 $ 1,731 $ 93 $ 1,856 Debt securities 0 0 46 46 Balance as of April 30, 2020 $ 32 $ 1,731 $ 139 $ 1,902 Strategic investments by form and measurement category as of January 31, 2020 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 370 $ 1,502 $ 40 $ 1,912 Debt securities 0 0 51 51 Balance as of January 31, 2020 $ 370 $ 1,502 $ 91 $ 1,963 Measurement Alternative Adjustments The components of privately held equity securities accounted for under the measurement alternative included in the table above are presented below (in millions): Three Months Ended April 30, 2020 2019 Carrying amount, beginning of period $ 1,502 $ 785 Adjustments related to privately held equity securities: Net additions (1) 265 20 Upward adjustments 30 140 Impairments and downward adjustments (66) (18) Carrying amount, end of period $ 1,731 $ 927 (1) Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. In February 2020, the Company made a strategic investment of $150 million in cash for preferred shares of a technology company in a preferred stock financing. The investment was accounted for using the measurement alternative. Since the adoption of Accounting Standards Update No. 2016-01, “Financial Instrument-Overall (Subtopic 825-10)” (“ASU 2016-01”) on February 1, 2018, cumulative impairments and downward adjustments were $168 million and cumulative upward adjustments were $484 million through April 30, 2020. Gains (losses) on strategic investments, net The components of gains and losses on strategic investments are presented below (in millions): 1 Three Months Ended April 30, 2020 2019 Unrealized gains recognized on publicly traded equity securities, net $ 0 $ 150 Unrealized gains (losses) recognized on privately held equity securities, net (38) 122 Realized gains on sales of equity securities, net 239 19 Losses on debt securities, net (9) (10) Gains on strategic investments, net $ 192 $ 281 Realized gains on sales of equity securities, net reflects the difference between the sale proceeds and the carrying value of the equity security at the beginning of the period or the purchase date, if later. The cumulative net gain, measured as the sale price less the initial purchase price, for equity securities exited during the three months ended April 30, 2020 was $359 million and was primarily driven by the Company's sale of two of its publicly traded investments resulting in a realized gain of $222 million, and a cumulative net gain of $314 million. Net unrealized losses recognized in the three months ended April 30, 2020 for strategic investments still held as of April 30, 2020 were $47 million, and includes approximately $77 million of impairments on its privately held equity and debt securities during the three months ended April 30, 2020. |
Derivatives
Derivatives | 3 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Details on outstanding foreign currency derivative contracts are presented below (in millions): As of April 30, 2020 January 31, 2020 Notional amount of foreign currency derivative contracts $ 4,697 $ 5,543 The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in millions): As of Balance Sheet Location April 30, 2020 January 31, 2020 Derivative Assets Foreign currency derivative contracts Prepaid expenses and other current assets $ 43 $ 28 Derivative Liabilities Foreign currency derivative contracts Accounts payable, accrued expenses and other liabilities $ 73 $ 24 Gains (losses) on derivative instruments not designated as hedging instruments recorded in other income in the condensed consolidated statements of operations are summarized below (in millions): Three Months Ended April 30, 2020 2019 Foreign currency derivative contracts $ (28) $ 22 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Significant other inputs that are directly or indirectly observable in the marketplace. Level 3. Significant unobservable inputs which are supported by little or no market activity. All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs. The following table presents information about the Company’s assets and liabilities that are measured at fair value as of April 30, 2020 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Balance as of Cash equivalents (1): Time deposits $ 0 $ 927 $ 0 $ 927 Money market mutual funds 2,485 0 0 2,485 Marketable securities: Corporate notes and obligations 0 2,293 0 2,293 U.S. treasury securities 0 174 0 174 Mortgage backed obligations 0 274 0 274 Asset backed securities 0 889 0 889 Municipal securities 0 166 0 166 Foreign government obligations 0 93 0 93 U.S. agency obligations 0 12 0 12 Time deposits 0 1 0 1 Covered bonds 0 128 0 128 Strategic investments: Publicly held equity securities 32 0 0 32 Foreign currency derivative contracts (2) 0 43 0 43 Total assets $ 2,517 $ 5,000 $ 0 $ 7,517 Liabilities: Foreign currency derivative contracts (3) 0 73 0 73 Total liabilities $ 0 $ 73 $ 0 $ 73 ___________ (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheet as of April 30, 2020, in addition to $2.4 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheet as of April 30, 2020. (3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying condensed consolidated balance sheet as of April 30, 2020. The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2020 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Balance as of January 31, 2020 Cash equivalents (1): Time deposits $ 0 $ 746 $ 0 $ 746 Money market mutual funds 1,293 0 0 1,293 Marketable securities: Corporate notes and obligations 0 2,207 0 2,207 U.S. treasury securities 0 183 0 183 Mortgage backed obligations 0 226 0 226 Asset backed securities 0 781 0 781 Municipal securities 0 158 0 158 Foreign government obligations 0 69 0 69 U.S. agency obligations 0 12 0 12 Time deposits 0 1 0 1 Covered bonds 0 165 0 165 Strategic investments: Publicly held equity securities 370 0 0 370 Foreign currency derivative contracts (2) 0 28 0 28 Total assets $ 1,663 $ 4,576 $ 0 $ 6,239 Liabilities: Foreign currency derivative contracts (3) 0 24 0 24 Total liabilities $ 0 $ 24 $ 0 $ 24 ______________ (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheet in addition to $2.1 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheet. (3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying condensed consolidated balance sheet. Strategic investments measured and recorded at fair value on a non-recurring basis The Company's privately held debt and equity securities and equity method investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company classifies these assets as Level 3 within the fair value hierarchy. For example, the Company's privately held equity securities that have been remeasured are classified within Level 3 in the fair value hierarchy because the value is based on valuation methods using the observable transaction price and other unobservable inputs including the volatility, rights, and obligations of the securities the Company holds. The Company's privately held debt and equity securities and equity method investments amounted to $1.9 billion as of April 30, 2020 and $1.6 billion as of January 31, 2020. |
Business Combinations
Business Combinations | 3 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Evergage In February 2020, the Company acquired all outstanding stock of Evergage Inc. ("Evergage"), for consideration consisting of cash and equity awards assumed. Evergage is a cloud-based real-time personalization and customer data platform. The acquisition date fair value of the consideration transferred for Evergage was approximately $100 million, which consisted of cash and the fair value of stock options and restricted stock awards assumed. The Company recorded approximately $25 million for developed technology and customer relationships with estimated useful lives of three |
Intangible Assets Acquired Thro
Intangible Assets Acquired Through Business Combinations and Goodwill | 3 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired Through Business Combinations and Goodwill | Intangible Assets Acquired Through Business Combinations and Goodwill Intangible assets acquired through business combination Intangible assets acquired through business combinations are as follows (in millions): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted January 31, 2020 Additions and retirements, net April 30, 2020 January 31, 2020 Expense and retirements, net April 30, 2020 January 31, 2020 April 30, 2020 Acquired developed technology $ 3,598 $ 11 $ 3,609 $ (1,249) $ (159) $ (1,408) $ 2,349 $ 2,201 3.9 Customer relationships 3,252 17 3,269 (888) (106) (994) 2,364 2,275 6.3 Other (1) 72 7 79 (61) (6) (67) 11 12 2.2 Total $ 6,922 $ 35 $ 6,957 $ (2,198) $ (271) $ (2,469) $ 4,724 $ 4,488 5.1 (1) Included in other are in-place leases, trade names, trademarks and territory rights. Amortization of intangible assets resulting from business combinations for the three months ended April 30, 2020 and 2019 was $271 million and $129 million, respectively. The expected future amortization expense for intangible assets as of April 30, 2020 is as follows (in millions): Fiscal Period: Remaining nine months of Fiscal 2021 $ 798 Fiscal 2022 995 Fiscal 2023 840 Fiscal 2024 752 Fiscal 2025 516 Thereafter 587 Total amortization expense $ 4,488 Customer contract assets acquired through business combinations Customer contract assets resulting from business combinations reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date. Customer contract assets are amortized over the corresponding contract terms. Customer contract assets resulting from business combinations were $73 million and $93 million as of April 30, 2020 and January 31, 2020, respectively, and are included in other assets on the condensed consolidated balance sheets. Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but are rather tested for impairment at least annually during the fourth quarter. The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions): Balance as of January 31, 2020 $ 25,134 Evergage 74 Other acquisitions and adjustments (1) 58 Balance as of April 30, 2020 $ 25,266 |
Debt
Debt | 3 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying values of the Company's borrowings were as follows (in millions): Instrument Date of issuance Maturity date Effective interest rate for the three months ended April 30, 2020 April 30, 2020 January 31, 2020 2023 Senior Notes April 2018 April 2023 3.26% $ 995 $ 995 2028 Senior Notes April 2018 April 2028 3.70% 1,490 1,489 Loan assumed on 50 Fremont February 2015 June 2023 3.75% 192 193 Total carrying value of debt 2,677 2,677 Less current portion of debt (4) (4) Total noncurrent debt $ 2,673 $ 2,673 Each of the Company's debt agreements requires it to maintain compliance with certain debt covenants, all of which the Company was in compliance with as of April 30, 2020. The total estimated fair value of the Company's 2023 and 2028 Senior Notes as of April 30, 2020 and January 31, 2020 was $2.8 billion and $2.7 billion, respectively. The fair value was determined based on the closing trading price per $100 of the 2023 and 2028 Senior Notes as of the last day of trading for the first quarter of fiscal 2021 and last day of trading for the fourth quarter of fiscal 2020, respectively, and is deemed a Level 2 liability within the fair value measurement framework. The expected future principal payments for all borrowings as of April 30, 2020 is as follows (in millions): Fiscal period: Remaining nine months of Fiscal 2021 $ 3 Fiscal 2022 4 Fiscal 2023 4 Fiscal 2024 1,182 Fiscal 2025 0 Thereafter 1,500 Total principal outstanding $ 2,693 Revolving Credit Facility In April 2018, the Company entered into a Second Amended and Restated Credit Agreement ("Revolving Loan Credit Agreement") with Wells Fargo Bank, National Association, and certain other institutional lenders that provides for $1.0 billion unsecured revolving credit facility (“Credit Facility”) that matures in April 2023. The Revolving Loan Credit Agreement amended and restated the Company’s existing revolving credit facility dated July 2016. The Company may use the proceeds of future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted acquisitions. There were no outstanding borrowings under the Credit Facility as of April 30, 2020. The Company continues to pay a commitment fee on the available amount of the Credit Facility, which is included within other expense in the Company's condensed consolidated statement of operations. Interest Expense on Debt The following table sets forth total interest expense recognized related to debt (in millions): Three Months Ended April 30, 2020 2019 Contractual interest expense $ 24 $ 28 Amortization of debt issuance costs 1 1 $ 25 $ 29 |
Other Balance Sheet Accounts
Other Balance Sheet Accounts | 3 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Accounts | Other Balance Sheet AccountsIn March 2020, the Company purchased the property located at 450 Mission St. (“450 Mission”) in San Francisco, California for approximately $150 million, of which $110 million was allocated to land, $34 million to building, which is included in property and equipment, net and $6 million to in-place leases, which is included in intangible assets in the accompanying condensed consolidated balance sheet.Accounts payable, accrued expenses and other liabilities as of April 30, 2020 included approximately $0.9 billion of accrued compensation as compared to $1.5 billion as of January 31, 2020. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The fair value of the Company’s stock options and ESPP shares was estimated on the date of grant and the first day of the ESPP purchase period, respectively, using Black-Scholes option pricing model. The weighted-average fair value per share for stock options grants, excluding assumed awards, was $39.67 and $40.82 in the three months ended April 30, 2020 and 2019, respectively. ESPP assumptions and the related fair value per share table are disclosed in the three month period in which there is ESPP activity, such as an ESPP purchase. The Company's ESPP allows for two purchases during the fiscal year, one during the second quarter and one during the fourth quarter. The estimated life of the ESPP will be based on the two purchase periods within each offering period. The weighted-average fair value per share for ESPP shares was $41.76 in the three months ended April 30, 2020. Stock option activity, excluding the ESPP for the three months ended April 30, 2020 is as follows: Options Outstanding Outstanding Weighted- Aggregate Balance as of January 31, 2020 27 $ 98.56 Options granted under all plans 6 154.23 Exercised (2) 62.67 Balance as of April 30, 2020 31 $ 111.82 $ 1,542 Vested or expected to vest 28 $ 108.78 $ 1,509 Exercisable as of April 30, 2020 14 $ 77.73 $ 1,201 The following table summarizes information about stock options outstanding as of April 30, 2020: Options Outstanding Options Exercisable Range of Exercise Number Weighted- Weighted- Number of Weighted- $0.36 to $59.34 7 2.9 $ 40.47 6 $ 41.91 $59.37 to $80.99 5 3.4 77.03 4 77.85 $81.02 to $118.04 5 4.8 114.30 2 113.29 $122.03 to $148.95 2 6.0 142.32 0 0.00 $154.14 6 7.0 154.14 0 0.00 $155.20 to $189.50 6 5.8 161.90 2 161.50 31 4.9 $ 111.82 14 $ 77.73 Restricted stock activity for the three months ended April 30, 2020 is as follows: Restricted Stock Outstanding Outstanding Weighted-Average Grant Date Fair Value Aggregate Balance as of January 31, 2020 28 $ 140.14 Granted - restricted stock units and awards 9 155.92 Granted - performance-based stock units 1 154.14 Canceled (1) 138.87 Vested and converted to shares (4) 135.70 Balance as of April 30, 2020 33 $ 142.71 $ 5,428 Expected to vest 29 $ 4,654 During the three months ended April 30, 2020, the Company recognized stock-based expense related to its equity plans for employees and non-employee directors of $504 million. The aggregate stock compensation remaining to be recognized as of April 30, 2020 is as follows (in millions): Fiscal Period: Remaining nine months of fiscal 2021 $ 1,638 Fiscal 2022 1,684 Fiscal 2023 1,219 Fiscal 2024 630 Fiscal 2025 94 Thereafter 3 Total stock compensation $ 5,268 The aggregate stock compensation remaining to be recognized to costs and expenses will be recognized over a weighted-average period of approximately 2 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the three months ended April 30, 2020, the Company reported a tax benefit of $52 million on a pretax income of $47 million, which resulted in a negative effective tax rate of 111 percent. The Company’s effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to favorable discrete tax items including excess tax benefits from stock-based compensation. For the three months ended April 30, 2019, the Company reported a tax provision of $90 million on a pretax income of $482 million, which resulted in an effective tax rate of 19 percent. The Company's effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to excess tax benefits from stock-based compensation, offset by profitable jurisdictions outside of the United States subject to tax rates greater than 21 percent. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States and France. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues arising in the Company's tax audits progress in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. In addition, the Company anticipates it is reasonably possible that a decrease of its unrecognized tax benefits up to approximately $17 million may occur in the next 12 months, as the applicable statutes of limitations lapse, ongoing examinations are completed, or tax positions meet the conditions of being effectively settled. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method. A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions): 1 Three Months Ended April 30, 2020 2019 Numerator: Net income $ 99 $ 392 Denominator: Weighted-average shares outstanding for basic earnings per share 896 771 Dilutive effect of employee stock awards 17 22 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 913 793 The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions): Three Months Ended April 30, 2020 2019 Employee stock awards 10 3 |
Leases and Other Commitments
Leases and Other Commitments | 3 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases and Other Commitments | Leases and Other Commitments Leases The Company has operating leases for corporate offices, data centers, and equipment under non-cancelable operating leases with various expiration dates. The leases have remaining terms of one year to 22 years, some of which include options to extend for up to five years, and some of which include options to terminate within one year. Total operating lease costs were $279 million and $206 million for the three months ended April 30, 2020 and 2019, respectively. For the three months ended April 30, 2020, cash payments for operating leases were $226 million. New ROU assets obtained in exchange for operating lease liabilities were $189 million during the three months ended April 30, 2020. As of April 30, 2020, for operating leases, the weighted-average remaining lease term is seven years, and the weighted-average discount rate is 2.7 percent. As of April 30, 2020, for finance leases, the weighted-average remaining lease term is 18 years, and the weighted-average discount rate is 4.5 percent. As of April 30, 2020, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Remaining nine months of Fiscal 2021 $ 618 $ 49 Fiscal 2022 665 23 Fiscal 2023 490 23 Fiscal 2024 371 24 Fiscal 2025 301 24 Thereafter 1,054 410 Total minimum lease payments 3,499 553 Less: Imputed interest (335) (182) Total $ 3,164 $ 371 Operating lease amounts above do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $187 million in the next five years and $49 million thereafter. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the Company's future contractual obligations when it is reasonably certain that the Company will exercise that option. The Company did not use hindsight when determining lease term therefore, as of April 30, 2020, renewal options are only included for the Company's finance lease for 350 Mission. As of April 30, 2020, the Company has additional operating leases that have not yet commenced totaling $2.4 billion and therefore not reflected on the condensed consolidated balance sheet and tables above. These operating leases include agreements for office facilities to be constructed. These operating leases will commence between fiscal year 2021 and fiscal year 2025 with lease terms of one Of the total operating lease commitment balance, including leases not yet commenced, of $5.9 billion, approximately $5.4 billion is related to facilities space. The remaining commitment amount is primarily related to equipment. Letters of Credit |
Legal Proceedings and Claims
Legal Proceedings and Claims | 3 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Claims | Legal Proceedings and Claims In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement. In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s operating results. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. At this time, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute or other contingency, an unfavorable resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter. Tableau Litigation In July and August 2017, two substantially similar securities class action complaints were filed against Tableau and two of its now former executive officers. The first complaint was filed in the U.S. District for the Southern District of New York (the “Scheufele Action”). The second complaint was filed in the U.S. District Court for the Western District of Washington and was voluntarily dismissed on October 17, 2017. In December 2017, the lead plaintiff in the Scheufele Action filed an amended complaint, which alleged that between February 5, 2015 and February 4, 2016, Tableau and certain of its executive officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, in connection with statements regarding Tableau’s business and operations by allegedly failing to disclose, among other things, that product launches and software upgrades by competitors were negatively impacting Tableau’s competitive position and profitability. The amended complaint sought unspecified damages, interest, attorneys’ fees and other costs. In February 2018, the lead plaintiff filed a second amended complaint (the "SAC"), which contains substantially similar allegations as the amended complaint, and added as defendants two more of Tableau’s now former executive officers and directors. Defendants filed a motion to dismiss the SAC in March 2018, which was denied in February 2019. Defendants filed an answer to the SAC in March 2019, and subsequently amended their answer in April 2019. On January 15, 2020, the court granted lead plaintiff’s motion for class certification. The parties have completed fact discovery and are engaged in expert discovery. The court has not yet set a trial date. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In January 1999, the Salesforce Foundation (the “Foundation”) was chartered on an idea of leveraging the Company’s people, technology and resources to help improve communities around the world. The Company calls this integrated philanthropic approach the 1-1-1 model. The Company’s Chair is the chair of the Foundation and holds one of the three Foundation board seats. The Company does not control the Foundation’s activities, and accordingly, the Company does not consolidate the Foundation’s statement of activities with its financial results. Since the Foundation’s inception, the Company has provided at no charge certain resources to the Foundation including general administrative support. The value of these resources to the Foundation has not been material. As a result of the business combination with Salesforce.org in fiscal 2020, which was a related party, the Company agreed to use its best efforts to make charitable cash commitments of up to $5 million quarterly to the Foundation for ten years beginning in the third quarter of fiscal 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn June 2020, the Company acquired all outstanding stock of Vlocity, Inc. (“Vlocity”), a leading provider of industry-specific cloud and mobile software. The total estimated consideration for Vlocity was approximately $1.2 billion, net of the value of shares held by the Company, and consisted of cash and the assumption of outstanding equity awards held by Vlocity employees. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ending January 31, 2021. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of April 30, 2020 and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the three months ended April 30, 2020 and 2019 are unaudited. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of April 30, 2020, and its results of operations, including its comprehensive income, stockholders' equity and its cash flows for the three months ended April 30, 2020 and 2019. All adjustments are of a normal recurring nature. The results for the three months ended April 30, 2020 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto. Significant estimates and assumptions made by management include the determination of: • the fair value of assets acquired and liabilities assumed for business combinations; • the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; • the valuation of privately-held strategic investments, including impairments; • the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions; • the average period of benefit associated with costs capitalized to obtain revenue contracts; • the useful lives of intangible assets; and • the fair value of certain stock awards issued. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. In December 2019, the novel coronavirus and resulting disease (“COVID-19”) was reported and in March 2020 the World Health Organization declared it a pandemic. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration of the outbreak, impact on the Company’s |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segments | Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's offerings operate on its single Customer 360 Platform and most of the Company's products are deployed in a nearly identical way, and the Company’s CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. In February 2020, former co-CEO and director Keith Block resigned his positions from the Company. Prior to his resignation, Mr. Block was identified as a co-CODM along with Marc Benioff, CEO and Chair of the Board. Upon Mr. Block’s resignation, Mr. Benioff assumed all Mr. Block’s responsibilities and, as of the first quarter of fiscal 2021, is the sole individual that evaluates the operating results of the Company to assess performance and allocate resources. Accordingly, the Company determined that the chief executive officer also serves as the CODM for the purposes of segment reporting. Despite the change in the chief operating decision maker, the Company determined no change to segment reporting was necessary as there was no change in the components of the Company for which separate financial information is regularly evaluated. |
Concentrations of Credit Risk, Significant Customers and Investments | Concentrations of Credit Risk, Significant Customers and Investments The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. Receivables are written-off and charged against the recorded allowance when the Company has exhausted collection efforts without success. No single customer accounted for more than five percent of accounts receivable at April 30, 2020 and January 31, 2020. No single customer accounted for five percent or more of total revenue during the three months ended April 30, 2020 and 2019. As of April 30, 2020 and January 31, 2020, assets located outside the Americas were 11 percent and 12 percent of total assets, respectively. As of April 30, 2020 and January 31, 2020, assets located in the United States were 87 percent and 87 percent of total assets, respectively. The Company is also exposed to concentrations of risk in its strategic investment portfolio. As of April 30, 2020, the Company held five investments with carrying values that were individually greater than five percent of its total strategic investments, all of which were privately held. As of January 31, 2020, the Company held five investments that were individually greater than five percent of its total strategic investments, of which one was publicly traded and four were privately held. |
Revenue Recognition | Revenue Recognition The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management and implementation services. Other revenue consists primarily of training fees. Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through the application of the following steps: • Identification of the contract, or contracts with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and Support Revenues Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement. Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. With the May 2018 acquisition of MuleSoft, Inc. (“MuleSoft”) and the August 2019 acquisition of Tableau Software, Inc. (“Tableau”), subscription and support revenues also includes revenues associated with software licenses. These licenses for on-premises software provide the customer with a right to use the software as it exists when made available. Customers purchase these term licenses through a subscription. Revenues from distinct licenses are generally recognized upfront when the software is made available to the customer. In cases where the Company allocates revenue to software updates and support revenue, the allocated revenue is recognized as the updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually. Typical payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred. Professional Services and Other Revenues The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Training revenues are recognized as the services are performed. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that may include promises to transfer multiple Cloud Services, software licenses, premium support and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Cloud Services and software licenses are distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations generally are distinct. The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines relative fair value using information that may include market conditions or other observable inputs. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include pricing practices or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Costs Capitalized to Obtain Revenue Contracts The Company capitalizes incremental costs of obtaining a non-cancelable subscription and support revenue contract. The capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees, and to a lesser extent (4) success fees paid to partners in emerging markets where the Company has a limited presence. Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which, although longer than the typical initial contract period, reflects the average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years. The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying condensed consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. |
Marketable Securities | Marketable Securities The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses, as required by new accounting pronouncement ASU 2016-13 discussed in further detail below. Expected credit losses on securities are recognized in other income (expense), net on the condensed consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity. For the |
Strategic Investments | Strategic Investments The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest. Privately held equity securities which the Company does not have a controlling financial interest in but does exercise significant influence over the investee are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) or impairment. All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains on strategic investments, net on the condensed consolidated statement of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income on the condensed consolidated balance sheet. Valuations of privately held securities are inherently complex due to the lack of readily available market data and require the Company's use of judgment. The carrying value is not adjusted for the Company's privately held equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held debt and equity securities in its strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company recognizes an impairment through the condensed consolidated statement of operations and establishes a new carrying value for the investment. Publicly held equity securities are measured at fair value with changes recorded through gains on strategic investments, net on the condensed consolidated statement of operations. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivative contracts, which permit net settlement of transactions with the same counterparty, thereby reducing credit-related losses in the event of the financial institutions' nonperformance. As of April 30, 2020 and January 31, 2020, the outstanding foreign currency derivative contracts were recorded at fair value on the condensed consolidated balance sheets. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. |
Fair Value Measurement | Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. In addition, the Company measures its strategic investments, including its publicly held equity securities, privately held debt securities and privately held equity securities for which there has been an observable price change in a same or similar security, at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 5 “Fair Value Measurement.” |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and building improvements 10 to 40 years When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three |
Intangible Assets acquired through Business Combinations | Intangible Assets Acquired through Business Combinations Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Impairment Assessment | Impairment Assessment The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. |
Business Combinations | Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statement of operations. In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (or losses) on strategic investments in the condensed consolidated statement of operations. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Finance leases are included in property and equipment, accrued expenses and other liabilities, and other noncurrent liabilities on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease ROU asset is reduced for tenant incentives and excludes any initial direct costs incurred. As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company, such as construction of significant leasehold improvements that are expected to have economic value when the option becomes exercisable. Lease expenses for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Amortization expense of the ROU asset for finance leases is recognized on a straight-line basis over the lease term and interest expense for finance leases is recognized based on the incremental borrowing rate. The Company has lease agreements with lease and non-lease components, which it has elected to combine for all asset classes. In addition, the Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for all of its asset classes. On the lease commencement date the Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease term to operating expense. |
Stock-Based Expense | Stock-Based Expense Stock-based expenses related to stock options are measured based on grant date at fair value using the Black-Scholes option pricing model and restricted stock awards based on grant date at fair value using the closing stock price. The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expenses related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) are measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based expenses related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount from the lower of the Company’s stock price on (i) the first day of the offering period or on (ii) the last day of the purchase period and also allows employees to reduce their percentage election once during a six Stock-based expenses related to performance share grants, which are awarded to executive officers and other members of senior management, are measured based on grant date at fair value using a Monte Carlo simulation model and expensed on a straight-line basis, net of estimated forfeitures, over the service period of the awards, which is generally the vesting term of three years. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date. The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statement of comprehensive income. Foreign currency transaction gains and losses are included in other income in the condensed consolidated statement of operations for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. |
Warranties and Indemnification | Warranties and Indemnification The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances. The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. |
New Accounting Pronouncements Adopted and Pending Adoption | New Accounting Pronouncements Adopted in Fiscal 2021 ASU 2016-13 In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company's accounts receivables, certain financial instruments and contract assets. ASU 2016-13 replaces the prior incurred loss impairment model with an expected loss methodology, which results in more timely recognition of credit losses. Effective on February 1, 2020, the Company adopted the provisions and expanded disclosure requirements described in ASU 2016-13. The adoption of ASU 2016-13 was not material. Accounting Pronouncements Pending Adoption In December 2019, the FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”),” which modifies and eliminates certain exceptions to the general principles of ASC 740, Income taxes. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of the adoption to its consolidated financial statements. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and building improvements 10 to 40 years |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Subscription and support revenues consisted of the following (in millions): Three Months Ended April 30, 2020 2019 Sales Cloud $ 1,245 $ 1,073 Service Cloud 1,252 1,020 Salesforce Platform and Other 1,364 842 Marketing and Commerce Cloud 714 561 $ 4,575 $ 3,496 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions): Three Months Ended April 30, 2020 2019 Americas $ 3,370 $ 2,617 Europe 1,034 755 Asia Pacific 461 365 $ 4,865 $ 3,737 |
Unearned Revenue | The change in unearned revenue was as follows (in millions): Three Months Ended April 30, 2020 2019 Unearned revenue, beginning of period $ 10,662 $ 8,564 Billings and other (1) 3,305 2,714 Contribution from contract asset 5 44 Revenue recognized ratably over time (4,453) (3,488) Revenue recognized over time as delivered (191) (172) Revenue recognized at a point in time (221) (77) Unearned revenue from business combinations 5 0 Unearned revenue, end of period $ 9,112 $ 7,585 (1) Other includes, for example, the impact of foreign currency translation. |
Remaining Performance Obligation | Remaining performance obligation consisted of the following (in billions): Current Noncurrent Total As of April 30, 2020 $ 14.5 $ 14.8 $ 29.3 As of January 31, 2020 $ 15.0 $ 15.8 $ 30.8 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At April 30, 2020, marketable securities consisted of the following (in millions): Investments classified as Marketable Securities Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 2,312 $ 9 $ (28) $ 2,293 U.S. treasury securities 172 2 0 174 Mortgage backed obligations 269 5 0 274 Asset backed securities 890 3 (4) 889 Municipal securities 165 1 0 166 Foreign government obligations 92 1 0 93 U.S. agency obligations 12 0 0 12 Time deposits 1 0 0 1 Covered bonds 128 0 0 128 Total marketable securities $ 4,041 $ 21 $ (32) $ 4,030 At January 31, 2020, marketable securities consisted of the following (in millions): Investments classified as Marketable Securities Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 2,199 $ 9 $ (1) $ 2,207 U.S. treasury securities 182 1 0 183 Mortgage backed obligations 225 1 0 226 Asset backed securities 779 2 0 781 Municipal securities 157 1 0 158 Foreign government obligations 69 0 0 69 U.S. agency obligations 12 0 0 12 Time deposits 1 0 0 1 Covered bonds 165 0 0 165 Total marketable securities $ 3,789 $ 14 $ (1) $ 3,802 |
Schedule of Short-Term and Long-Term Marketable Securities | The contractual maturities of the investments classified as marketable securities are as follows (in millions): As of April 30, 2020 January 31, 2020 Due within 1 year $ 1,293 $ 1,332 Due in 1 year through 5 years 2,721 2,466 Due in 5 years through 10 years 16 4 $ 4,030 $ 3,802 |
Schedule of Marketable Securities in a Unrealized Loss Position | As of April 30, 2020, the following marketable securities were in a continuous unrealized loss position (in millions): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate notes and obligations $ 1,463 $ (28) $ 0 $ 0 $ 1,463 $ (28) Asset backed securities 359 (4) 0 0 359 (4) $ 1,822 $ (32) $ 0 $ 0 $ 1,822 $ (32) |
Schedule of Components of Investment Income | The components of investment income are presented below (in millions): Three Months Ended April 30, 2020 2019 Interest income $ 28 $ 26 Realized gains 1 0 Realized losses (1) 0 Investment income $ 28 $ 26 |
Schedules of Strategic Investments | Strategic investments by form and measurement category as of April 30, 2020 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 32 $ 1,731 $ 93 $ 1,856 Debt securities 0 0 46 46 Balance as of April 30, 2020 $ 32 $ 1,731 $ 139 $ 1,902 Strategic investments by form and measurement category as of January 31, 2020 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 370 $ 1,502 $ 40 $ 1,912 Debt securities 0 0 51 51 Balance as of January 31, 2020 $ 370 $ 1,502 $ 91 $ 1,963 Measurement Alternative Adjustments The components of privately held equity securities accounted for under the measurement alternative included in the table above are presented below (in millions): Three Months Ended April 30, 2020 2019 Carrying amount, beginning of period $ 1,502 $ 785 Adjustments related to privately held equity securities: Net additions (1) 265 20 Upward adjustments 30 140 Impairments and downward adjustments (66) (18) Carrying amount, end of period $ 1,731 $ 927 (1) Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. The components of gains and losses on strategic investments are presented below (in millions): 1 Three Months Ended April 30, 2020 2019 Unrealized gains recognized on publicly traded equity securities, net $ 0 $ 150 Unrealized gains (losses) recognized on privately held equity securities, net (38) 122 Realized gains on sales of equity securities, net 239 19 Losses on debt securities, net (9) (10) Gains on strategic investments, net $ 192 $ 281 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables | Details on outstanding foreign currency derivative contracts are presented below (in millions): As of April 30, 2020 January 31, 2020 Notional amount of foreign currency derivative contracts $ 4,697 $ 5,543 |
Fair Value of Outstanding Derivative Instruments | The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in millions): As of Balance Sheet Location April 30, 2020 January 31, 2020 Derivative Assets Foreign currency derivative contracts Prepaid expenses and other current assets $ 43 $ 28 Derivative Liabilities Foreign currency derivative contracts Accounts payable, accrued expenses and other liabilities $ 73 $ 24 |
Schedule of The Effect of The Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations | Gains (losses) on derivative instruments not designated as hedging instruments recorded in other income in the condensed consolidated statements of operations are summarized below (in millions): Three Months Ended April 30, 2020 2019 Foreign currency derivative contracts $ (28) $ 22 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value an a Recurring Basis | The following table presents information about the Company’s assets and liabilities that are measured at fair value as of April 30, 2020 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Balance as of Cash equivalents (1): Time deposits $ 0 $ 927 $ 0 $ 927 Money market mutual funds 2,485 0 0 2,485 Marketable securities: Corporate notes and obligations 0 2,293 0 2,293 U.S. treasury securities 0 174 0 174 Mortgage backed obligations 0 274 0 274 Asset backed securities 0 889 0 889 Municipal securities 0 166 0 166 Foreign government obligations 0 93 0 93 U.S. agency obligations 0 12 0 12 Time deposits 0 1 0 1 Covered bonds 0 128 0 128 Strategic investments: Publicly held equity securities 32 0 0 32 Foreign currency derivative contracts (2) 0 43 0 43 Total assets $ 2,517 $ 5,000 $ 0 $ 7,517 Liabilities: Foreign currency derivative contracts (3) 0 73 0 73 Total liabilities $ 0 $ 73 $ 0 $ 73 ___________ (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheet as of April 30, 2020, in addition to $2.4 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheet as of April 30, 2020. (3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying condensed consolidated balance sheet as of April 30, 2020. The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2020 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Balance as of January 31, 2020 Cash equivalents (1): Time deposits $ 0 $ 746 $ 0 $ 746 Money market mutual funds 1,293 0 0 1,293 Marketable securities: Corporate notes and obligations 0 2,207 0 2,207 U.S. treasury securities 0 183 0 183 Mortgage backed obligations 0 226 0 226 Asset backed securities 0 781 0 781 Municipal securities 0 158 0 158 Foreign government obligations 0 69 0 69 U.S. agency obligations 0 12 0 12 Time deposits 0 1 0 1 Covered bonds 0 165 0 165 Strategic investments: Publicly held equity securities 370 0 0 370 Foreign currency derivative contracts (2) 0 28 0 28 Total assets $ 1,663 $ 4,576 $ 0 $ 6,239 Liabilities: Foreign currency derivative contracts (3) 0 24 0 24 Total liabilities $ 0 $ 24 $ 0 $ 24 ______________ (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheet in addition to $2.1 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying condensed consolidated balance sheet. (3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying condensed consolidated balance sheet. |
Intangible Assets Acquired Th_2
Intangible Assets Acquired Through Business Combinations and Goodwill (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired From Business Combinations | Intangible assets acquired through business combinations are as follows (in millions): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted January 31, 2020 Additions and retirements, net April 30, 2020 January 31, 2020 Expense and retirements, net April 30, 2020 January 31, 2020 April 30, 2020 Acquired developed technology $ 3,598 $ 11 $ 3,609 $ (1,249) $ (159) $ (1,408) $ 2,349 $ 2,201 3.9 Customer relationships 3,252 17 3,269 (888) (106) (994) 2,364 2,275 6.3 Other (1) 72 7 79 (61) (6) (67) 11 12 2.2 Total $ 6,922 $ 35 $ 6,957 $ (2,198) $ (271) $ (2,469) $ 4,724 $ 4,488 5.1 (1) Included in other are in-place leases, trade names, trademarks and territory rights. |
Expected Future Amortization Expense for Purchased Intangible Assets | The expected future amortization expense for intangible assets as of April 30, 2020 is as follows (in millions): Fiscal Period: Remaining nine months of Fiscal 2021 $ 798 Fiscal 2022 995 Fiscal 2023 840 Fiscal 2024 752 Fiscal 2025 516 Thereafter 587 Total amortization expense $ 4,488 |
Schedule of Goodwill | The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions): Balance as of January 31, 2020 $ 25,134 Evergage 74 Other acquisitions and adjustments (1) 58 Balance as of April 30, 2020 $ 25,266 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The carrying values of the Company's borrowings were as follows (in millions): Instrument Date of issuance Maturity date Effective interest rate for the three months ended April 30, 2020 April 30, 2020 January 31, 2020 2023 Senior Notes April 2018 April 2023 3.26% $ 995 $ 995 2028 Senior Notes April 2018 April 2028 3.70% 1,490 1,489 Loan assumed on 50 Fremont February 2015 June 2023 3.75% 192 193 Total carrying value of debt 2,677 2,677 Less current portion of debt (4) (4) Total noncurrent debt $ 2,673 $ 2,673 |
Schedule of Maturities of Long-term Debt | The expected future principal payments for all borrowings as of April 30, 2020 is as follows (in millions): Fiscal period: Remaining nine months of Fiscal 2021 $ 3 Fiscal 2022 4 Fiscal 2023 4 Fiscal 2024 1,182 Fiscal 2025 0 Thereafter 1,500 Total principal outstanding $ 2,693 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to debt (in millions): Three Months Ended April 30, 2020 2019 Contractual interest expense $ 24 $ 28 Amortization of debt issuance costs 1 1 $ 25 $ 29 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Share-based Compensation, Stock Options, Activity | Stock option activity, excluding the ESPP for the three months ended April 30, 2020 is as follows: Options Outstanding Outstanding Weighted- Aggregate Balance as of January 31, 2020 27 $ 98.56 Options granted under all plans 6 154.23 Exercised (2) 62.67 Balance as of April 30, 2020 31 $ 111.82 $ 1,542 Vested or expected to vest 28 $ 108.78 $ 1,509 Exercisable as of April 30, 2020 14 $ 77.73 $ 1,201 |
Schedule Of Stock Options Outstanding | The following table summarizes information about stock options outstanding as of April 30, 2020: Options Outstanding Options Exercisable Range of Exercise Number Weighted- Weighted- Number of Weighted- $0.36 to $59.34 7 2.9 $ 40.47 6 $ 41.91 $59.37 to $80.99 5 3.4 77.03 4 77.85 $81.02 to $118.04 5 4.8 114.30 2 113.29 $122.03 to $148.95 2 6.0 142.32 0 0.00 $154.14 6 7.0 154.14 0 0.00 $155.20 to $189.50 6 5.8 161.90 2 161.50 31 4.9 $ 111.82 14 $ 77.73 |
Schedule Of Restricted Stock Activity | Restricted stock activity for the three months ended April 30, 2020 is as follows: Restricted Stock Outstanding Outstanding Weighted-Average Grant Date Fair Value Aggregate Balance as of January 31, 2020 28 $ 140.14 Granted - restricted stock units and awards 9 155.92 Granted - performance-based stock units 1 154.14 Canceled (1) 138.87 Vested and converted to shares (4) 135.70 Balance as of April 30, 2020 33 $ 142.71 $ 5,428 Expected to vest 29 $ 4,654 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The aggregate stock compensation remaining to be recognized as of April 30, 2020 is as follows (in millions): Fiscal Period: Remaining nine months of fiscal 2021 $ 1,638 Fiscal 2022 1,684 Fiscal 2023 1,219 Fiscal 2024 630 Fiscal 2025 94 Thereafter 3 Total stock compensation $ 5,268 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominator Used in Calculation of Basic And Diluted Earnings Per Share | A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions): 1 Three Months Ended April 30, 2020 2019 Numerator: Net income $ 99 $ 392 Denominator: Weighted-average shares outstanding for basic earnings per share 896 771 Dilutive effect of employee stock awards 17 22 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 913 793 |
Shares Excluded From Diluted Earnings Per Share | The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions): Three Months Ended April 30, 2020 2019 Employee stock awards 10 3 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of lease liabilities | As of April 30, 2020, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Remaining nine months of Fiscal 2021 $ 618 $ 49 Fiscal 2022 665 23 Fiscal 2023 490 23 Fiscal 2024 371 24 Fiscal 2025 301 24 Thereafter 1,054 410 Total minimum lease payments 3,499 553 Less: Imputed interest (335) (182) Total $ 3,164 $ 371 |
Maturities of lease liabilities | As of April 30, 2020, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Remaining nine months of Fiscal 2021 $ 618 $ 49 Fiscal 2022 665 23 Fiscal 2023 490 23 Fiscal 2024 371 24 Fiscal 2025 301 24 Thereafter 1,054 410 Total minimum lease payments 3,499 553 Less: Imputed interest (335) (182) Total $ 3,164 $ 371 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Narrative (Detail) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($)segment | Apr. 30, 2019USD ($) | Jan. 31, 2020USD ($)investment | |
Summary of Business and Significant Accounting Policies [Line Items] | |||
Number of operating segments | segment | 1 | ||
Percent of total strategic investments | 0.05 | 0.05 | |
Number of investments held | investment | 5 | ||
Number of publicly traded investments | investment | 1 | ||
Number of privately held investments | investment | 4 | ||
Capitalized contract cost, amortization term (in years) | 4 years | ||
Capitalized contract cost, renewals and success fees, amortization term (in years) | 2 years | ||
Costs capitalized to obtain revenue contracts, net | $ 25,000,000 | $ 124,000,000 | |
Amortization of costs capitalized to obtain revenue contracts, net | 247,000,000 | 209,000,000 | |
Costs capitalized to obtain revenue contracts, net | 2,100,000,000 | $ 2,300,000,000 | |
Impairments of costs to obtain revenue contracts | 0 | 0 | |
Impairments of capitalized software and long-lived assets | 0 | 0 | |
Impairment of intangible assets | 0 | 0 | |
Impairment of goodwill | $ 0 | $ 0 | |
Offering period | 12 months | ||
Discount for ESPP | 15.00% | ||
Purchase period | 6 months | ||
Percentage of tax benefit likely to be realized upon settlement (greater than 50%) | 50.00% | ||
Stock options and restricted stock | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Vesting period | 4 years | ||
Performance shares | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Award requisite service period | 4 years | ||
Non-US | Assets | Geographic Concentration Risk | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 11.00% | 12.00% | |
Untied States | Assets | Geographic Concentration Risk | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 87.00% | 87.00% | |
Internal-use software | Minimum | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Internal-use software | Maximum | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 5 years |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 3 Months Ended |
Apr. 30, 2020 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Minimum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Minimum | Buildings and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Maximum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 9 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Maximum | Buildings and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 40 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 4,865 | $ 3,737 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,370 | 2,617 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,034 | 755 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 461 | $ 365 |
Untied States | Geographic Concentration Risk | Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 96.00% | 96.00% |
Subscription and support | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 4,575 | $ 3,496 |
Sales Cloud | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,245 | 1,073 |
Service Cloud | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,252 | 1,020 |
Salesforce Platform and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,364 | 842 |
Marketing and Commerce Cloud | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 714 | $ 561 |
Revenues - Contract Balances, U
Revenues - Contract Balances, Unearned Revenue and Remaining Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Customer contract assets | $ 454 | $ 449 | |
Unearned Revenue [Roll Forward] | |||
Unearned revenue, beginning of period | 10,662 | $ 8,564 | |
Billings and other | 3,305 | 2,714 | |
Contribution from contract asset | 5 | 44 | |
Unearned revenue from business combinations | 5 | 0 | |
Unearned revenue, end of period | 9,112 | 7,585 | |
Remaining Performance Obligation | |||
Current | 14,500 | 15,000 | |
Noncurrent | 14,800 | 15,800 | |
Total | 29,300 | $ 30,800 | |
Revenue recognized ratably over time | |||
Unearned Revenue [Roll Forward] | |||
Revenue recognized | (4,453) | (3,488) | |
Revenue recognized over time as delivered | |||
Unearned Revenue [Roll Forward] | |||
Revenue recognized | (191) | (172) | |
Revenue recognized at a point in time | |||
Unearned Revenue [Roll Forward] | |||
Revenue recognized | $ (221) | $ (77) |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01 | Apr. 30, 2020 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Noncurrent remaining performance obligation, recognition period | 13 months |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Noncurrent remaining performance obligation, recognition period | 36 months |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Detail) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 4,041 | $ 3,789 |
Unrealized Gains | 21 | 14 |
Unrealized Losses | (32) | (1) |
Fair Value | 4,030 | 3,802 |
Corporate notes and obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,312 | 2,199 |
Unrealized Gains | 9 | 9 |
Unrealized Losses | (28) | (1) |
Fair Value | 2,293 | 2,207 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 172 | 182 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 174 | 183 |
Mortgage backed obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 269 | 225 |
Unrealized Gains | 5 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 274 | 226 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 890 | 779 |
Unrealized Gains | 3 | 2 |
Unrealized Losses | (4) | 0 |
Fair Value | 889 | 781 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 165 | 157 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 166 | 158 |
Foreign government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 92 | 69 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 93 | 69 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12 | 12 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 12 | 12 |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1 | 1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1 | 1 |
Covered bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 128 | 165 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 128 | $ 165 |
Investments - Schedule of Short
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Detail) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 1,293 | $ 1,332 |
Due in 1 year through 5 years | 2,721 | 2,466 |
Due in 5 years through 10 years | 16 | 4 |
Fair Value of Marketable Securities | $ 4,030 | $ 3,802 |
Investments - Schedule of Mar_2
Investments - Schedule of Marketable Securities in Unrealized Loss Position (Detail) $ in Millions | 3 Months Ended |
Apr. 30, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | $ 1,822 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | (32) |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position, Fair Value | 1,822 |
Marketable securities in an unrealized loss position, Unrealized Losses | (32) |
Unrealized losses on fixed rate investments, lower range value | 1 |
Unrealized losses on fixed rate investments, upper range value | 2 |
Corporate notes and obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 1,463 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | (28) |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position, Fair Value | 1,463 |
Marketable securities in an unrealized loss position, Unrealized Losses | (28) |
Asset backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 359 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | (4) |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position, Fair Value | 359 |
Marketable securities in an unrealized loss position, Unrealized Losses | $ (4) |
Investments - Schedule of Compo
Investments - Schedule of Components of Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest income | $ 28 | $ 26 |
Realized gains | 1 | 0 |
Realized losses | (1) | 0 |
Investment income | $ 28 | $ 26 |
Investments - Schedule of Strat
Investments - Schedule of Strategic Investments (Detail) $ in Millions | 3 Months Ended | |||
Apr. 30, 2020USD ($)investment | Apr. 30, 2019USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | |
Investment Holdings [Line Items] | ||||
Strategic investments | $ 1,902 | $ 1,963 | ||
Strategic Investments [Roll Forward] | ||||
Carrying amount, beginning of period | 1,502 | $ 785 | ||
Adjustments related to privately held equity securities: | ||||
Net additions | 265 | 20 | ||
Upward adjustments | 30 | 140 | ||
Impairments and downward adjustments | (66) | (18) | ||
Carrying amount, end of period | 1,731 | 927 | ||
Cumulative impairments and downward adjustments | 168 | |||
Cumulative upward adjustments | 484 | |||
Cumulative net gain on equity securities | $ 359 | |||
Number of publicly traded investments sold | investment | 2 | |||
Net unrealized gains (loss) recognized | $ (47) | |||
Impairments on privately held equity and debt securities | 77 | |||
Equity securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 1,856 | 1,912 | ||
Adjustments related to privately held equity securities: | ||||
Net realized gains (losses) recognized | 239 | 19 | ||
Debt securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 46 | 51 | ||
Adjustments related to privately held equity securities: | ||||
Net realized gains (losses) recognized | (9) | $ (10) | ||
Technology company in preferred stock financing | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | $ 150 | |||
Two publicly traded investments | ||||
Adjustments related to privately held equity securities: | ||||
Cumulative net gain on equity securities | 314 | |||
Net realized gains (losses) recognized | 222 | |||
Fair Value | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 32 | 370 | ||
Fair Value | Equity securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 32 | 370 | ||
Fair Value | Debt securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 0 | 0 | ||
Measurement Alternative | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 1,731 | 1,502 | ||
Measurement Alternative | Equity securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 1,731 | 1,502 | ||
Measurement Alternative | Debt securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 0 | 0 | ||
Other | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 139 | 91 | ||
Other | Equity securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | 93 | 40 | ||
Other | Debt securities | ||||
Investment Holdings [Line Items] | ||||
Strategic investments | $ 46 | $ 51 |
Investments - Gains (Losses) on
Investments - Gains (Losses) on Strategic Investments, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Investment Holdings [Line Items] | ||
Net unrealized gains (loss) recognized | $ (47) | |
Gains on strategic investments, net | 192 | $ 281 |
Publicly traded securities | ||
Investment Holdings [Line Items] | ||
Net unrealized gains (loss) recognized | 0 | 150 |
Privately held securities | ||
Investment Holdings [Line Items] | ||
Net unrealized gains (loss) recognized | (38) | 122 |
Equity securities | ||
Investment Holdings [Line Items] | ||
Net realized gains (losses) recognized | 239 | 19 |
Debt securities | ||
Investment Holdings [Line Items] | ||
Net realized gains (losses) recognized | $ (9) | $ (10) |
Derivatives - Schedule of Outst
Derivatives - Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables (Detail) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Derivatives not designated as hedging instruments | Foreign currency derivative contracts | ||
Derivative [Line Items] | ||
Notional amount of foreign currency derivative contracts | $ 4,697 | $ 5,543 |
Derivatives - Fair Value of Out
Derivatives - Fair Value of Outstanding Derivative Instruments (Detail) - Derivatives not designated as hedging instruments - Foreign currency derivative contracts - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 43 | $ 28 |
Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 73 | $ 24 |
Derivatives - Effect of Derivat
Derivatives - Effect of Derivative Instruments Not Designated as Hedging Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Derivatives not designated as hedging instruments | Foreign currency derivative contracts | Other income (expense) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivative instruments recognized in income | $ (28) | $ 22 |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | $ 1,902 | $ 1,963 |
Total assets | 7,517 | 6,239 |
Total liabilities | 73 | 24 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 32 | 370 |
Total assets | 2,517 | 1,663 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 0 | 0 |
Total assets | 5,000 | 4,576 |
Total liabilities | 73 | 24 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 0 | 0 |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Prepaid expenses and other current assets | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 43 | 28 |
Prepaid expenses and other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Prepaid expenses and other current assets | Significant Other Observable Inputs (Level 2) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 43 | 28 |
Prepaid expenses and other current assets | Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Accounts payable, accrued expenses and other liabilities | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 73 | 24 |
Accounts payable, accrued expenses and other liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Accounts payable, accrued expenses and other liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 73 | 24 |
Accounts payable, accrued expenses and other liabilities | Significant Unobservable Inputs (Level 3) | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 32 | 370 |
Time deposits | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 927 | 746 |
Time deposits | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Time deposits | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 927 | 746 |
Time deposits | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market mutual funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,485 | 1,293 |
Money market mutual funds | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,485 | 1,293 |
Money market mutual funds | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market mutual funds | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,293 | 2,207 |
Corporate notes and obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate notes and obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,293 | 2,207 |
Corporate notes and obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 174 | 183 |
U.S. treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 174 | 183 |
U.S. treasury securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mortgage backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 274 | 226 |
Mortgage backed obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mortgage backed obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 274 | 226 |
Mortgage backed obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 889 | 781 |
Asset backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 889 | 781 |
Asset backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 166 | 158 |
Municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 166 | 158 |
Municipal securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 93 | 69 |
Foreign government obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Foreign government obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 93 | 69 |
Foreign government obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12 | 12 |
U.S. agency obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12 | 12 |
U.S. agency obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1 | 1 |
Time deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1 | 1 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 128 | 165 |
Covered bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Covered bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 128 | 165 |
Covered bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,400 | 2,100 |
Privately held debt and equity securities and equity method investments | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 1,900 | $ 1,600 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | |
Business Acquisition [Line Items] | |||
Estimated useful lives (in years) | 5 years 1 month 6 days | ||
Goodwill | $ 25,266 | $ 25,134 | |
Evergage Inc. | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 100 | ||
Goodwill | 74 | ||
Evergage Inc. | Developed technology and customer relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 25 | ||
Minimum | Evergage Inc. | Developed technology and customer relationships | |||
Business Acquisition [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Maximum | Evergage Inc. | Developed technology and customer relationships | |||
Business Acquisition [Line Items] | |||
Estimated useful lives (in years) | 5 years |
Intangible Assets Acquired Th_3
Intangible Assets Acquired Through Business Combinations and Goodwill (Intangible Assets Acquired From Business Combinations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 6,922 | ||
Accumulated amortization, beginning balance | (2,198) | ||
Intangible assets, net, beginning balance | 4,724 | ||
Additions and retirements, net | 35 | ||
Expense and retirements, net | (271) | ||
Intangible assets, gross, ending balance | 6,957 | ||
Accumulated amortization, ending balance | (2,469) | ||
Intangible assets, net, ending balance | $ 4,488 | ||
Weighted average remaining useful life | 5 years 1 month 6 days | ||
Amortization of intangible assets | $ 271 | $ 129 | |
Customer contract assets | 454 | $ 449 | |
Other assets | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Customer contract assets | 73 | $ 93 | |
Acquired developed technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | 3,598 | ||
Accumulated amortization, beginning balance | (1,249) | ||
Intangible assets, net, beginning balance | 2,349 | ||
Additions and retirements, net | 11 | ||
Expense and retirements, net | (159) | ||
Intangible assets, gross, ending balance | 3,609 | ||
Accumulated amortization, ending balance | (1,408) | ||
Intangible assets, net, ending balance | $ 2,201 | ||
Weighted average remaining useful life | 3 years 10 months 24 days | ||
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 3,252 | ||
Accumulated amortization, beginning balance | (888) | ||
Intangible assets, net, beginning balance | 2,364 | ||
Additions and retirements, net | 17 | ||
Expense and retirements, net | (106) | ||
Intangible assets, gross, ending balance | 3,269 | ||
Accumulated amortization, ending balance | (994) | ||
Intangible assets, net, ending balance | $ 2,275 | ||
Weighted average remaining useful life | 6 years 3 months 18 days | ||
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 72 | ||
Accumulated amortization, beginning balance | (61) | ||
Intangible assets, net, beginning balance | 11 | ||
Additions and retirements, net | 7 | ||
Expense and retirements, net | (6) | ||
Intangible assets, gross, ending balance | 79 | ||
Accumulated amortization, ending balance | (67) | ||
Intangible assets, net, ending balance | $ 12 | ||
Weighted average remaining useful life | 2 years 2 months 12 days |
Intangible Assets Acquired Th_4
Intangible Assets Acquired Through Business Combinations and Goodwill (Expected Future Amortization Expense for Purchased Intangible Assets) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining nine months of Fiscal 2021 | $ 798 | |
Fiscal 2022 | 995 | |
Fiscal 2023 | 840 | |
Fiscal 2024 | 752 | |
Fiscal 2025 | 516 | |
Thereafter | 587 | |
Total amortization expense | $ 4,488 | $ 4,724 |
Intangible Assets Acquired Th_5
Intangible Assets Acquired Through Business Combinations and Goodwill (Goodwill) (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 25,134 |
Other acquisitions and adjustments | 58 |
Goodwill, ending balance | 25,266 |
Evergage Inc. | |
Goodwill [Roll Forward] | |
Goodwill acquired | $ 74 |
Debt - Carrying Value of Borrow
Debt - Carrying Value of Borrowings (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | ||
Total carrying value of debt | $ 2,677 | $ 2,677 |
Less current portion of debt | (4) | (4) |
Total noncurrent debt | $ 2,673 | 2,673 |
Senior Notes | 2023 Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate for the three months ended April 30, 2020 | 3.26% | |
Total carrying value of debt | $ 995 | 995 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate for the three months ended April 30, 2020 | 3.70% | |
Total carrying value of debt | $ 1,490 | 1,489 |
Secured Debt | Loan assumed on 50 Fremont | ||
Debt Instrument [Line Items] | ||
Effective interest rate for the three months ended April 30, 2020 | 3.75% | |
Total carrying value of debt | $ 192 | $ 193 |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Millions | Apr. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Remaining nine months of Fiscal 2021 | $ 3 |
Fiscal 2022 | 4 |
Fiscal 2023 | 4 |
Fiscal 2024 | 1,182 |
Fiscal 2025 | 0 |
Thereafter | 1,500 |
Total principal outstanding | $ 2,693 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2018 |
Line of Credit Facility [Line Items] | |||
Total carrying value of debt | $ 2,677,000,000 | $ 2,677,000,000 | |
Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Senior Notes fair value | 2,800,000,000 | $ 2,700,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Total carrying value of debt | $ 0 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 24 | $ 28 |
Amortization of debt issuance costs | 1 | 1 |
Debt interest expense | $ 25 | $ 29 |
Other Balance Sheet Accounts (D
Other Balance Sheet Accounts (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Mar. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Payment to acquire property | $ 150 | ||
Accrued compensation | $ 900 | $ 1,500 | |
Acquired in-place leases | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible assets acquired | 6 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, additions | 110 | ||
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, additions | $ 34 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants (in dollars per share) | $ 39.67 | $ 40.82 | |
Share-based compensation expense | $ 504 | ||
Period for recognition | 2 years | ||
Total shares available for future grant (in shares) | 115 | 133 | |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of ESPP shares (in dollars per share) | $ 41.76 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Outstanding (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Apr. 30, 2020USD ($)$ / sharesshares | |
Outstanding Stock Options | |
Beginning balance (in shares) | shares | 27 |
Options granted under all plans (in shares) | shares | 6 |
Exercised (in shares) | shares | (2) |
Ending balance (in shares) | shares | 31 |
Outstanding Stock Options, Vested or expected to vest (in shares) | shares | 28 |
Outstanding Stock Options, Exercisable (in shares) | shares | 14 |
Options Outstanding Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ 98.56 |
Options granted under all plans (in dollars per share) | 154.23 |
Exercised (in dollars per share) | 62.67 |
Ending balance (in dollars per share) | 111.82 |
Weighted-Average Exercise Price, Vested or expected to vest (in dollars per share) | 108.78 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ 77.73 |
Aggregate Intrinsic Value | |
Balance | $ | $ 1,542 |
Vested or expected to vest | $ | 1,509 |
Exercisable | $ | $ 1,201 |
Stock Options Outstanding Information | |
Options, Number Outstanding (in shares) | shares | 31 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 4 years 10 months 24 days |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 111.82 |
Options Exercisable, Number of Shares (in shares) | shares | 14 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 77.73 |
$0.36 to $59.34 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 0.36 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 59.34 |
Options, Number Outstanding (in shares) | shares | 7 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 2 years 10 months 24 days |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 40.47 |
Options Exercisable, Number of Shares (in shares) | shares | 6 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 41.91 |
$59.37 to $80.99 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 59.37 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 80.99 |
Options, Number Outstanding (in shares) | shares | 5 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 3 years 4 months 24 days |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 77.03 |
Options Exercisable, Number of Shares (in shares) | shares | 4 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 77.85 |
$81.02 to $118.04 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 81.02 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 118.04 |
Options, Number Outstanding (in shares) | shares | 5 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 4 years 9 months 18 days |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 114.30 |
Options Exercisable, Number of Shares (in shares) | shares | 2 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 113.29 |
$122.03 to $148.95 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 122.03 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 148.95 |
Options, Number Outstanding (in shares) | shares | 2 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 6 years |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 142.32 |
Options Exercisable, Number of Shares (in shares) | shares | 0 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 0 |
$154.14 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 154.14 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 154.14 |
Options, Number Outstanding (in shares) | shares | 6 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 7 years |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 154.14 |
Options Exercisable, Number of Shares (in shares) | shares | 0 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 0 |
$155.20 to $189.50 | |
Stock Options Outstanding Information | |
Range of Exercise Prices, Minimum (in dollars per share) | 155.20 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 189.50 |
Options, Number Outstanding (in shares) | shares | 6 |
Weighted-Average Remaining Contractual Life, Options Outstanding | 5 years 9 months 18 days |
Weighted-Average Exercise Price, Options Outstanding (in dollars per share) | $ 161.90 |
Options Exercisable, Number of Shares (in shares) | shares | 2 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 161.50 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Activity (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Apr. 30, 2020USD ($)$ / sharesshares | |
Restricted Stock | |
Restricted Stock Outstanding | |
Beginning balance (in shares) | 28 |
Granted (in shares) | 9 |
Canceled (in shares) | (1) |
Vested and converted to shares (in shares) | (4) |
Ending balance (in shares) | 33 |
Expected to vest (in shares) | 29 |
Restricted Stock Outstanding, Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 140.14 |
Granted (in dollars per share) | $ / shares | 155.92 |
Canceled (in dollars per share) | $ / shares | 138.87 |
Vested and converted to shares (in dollars per share) | $ / shares | 135.70 |
Ending balance (in dollars per share) | $ / shares | $ 142.71 |
Restricted Stock Outstanding, Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Outstanding | $ | $ 5,428 |
Aggregate Intrinsic Value, Expected to vest | $ | $ 4,654 |
Performance shares | |
Restricted Stock Outstanding | |
Granted (in shares) | 1 |
Restricted Stock Outstanding, Weighted-Average Exercise Price | |
Granted (in dollars per share) | $ / shares | $ 154.14 |
Stockholder's Equity - Aggregat
Stockholder's Equity - Aggregate Stock Compensation (Details) $ in Millions | Apr. 30, 2020USD ($) |
Share-based Payment Arrangement [Abstract] | |
Remaining nine months of fiscal 2021 | $ 1,638 |
Fiscal 2022 | 1,684 |
Fiscal 2023 | 1,219 |
Fiscal 2024 | 630 |
Fiscal 2025 | 94 |
Thereafter | 3 |
Total stock compensation | $ 5,268 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Benefit from (provision for) income taxes | $ 52 | $ (90) |
Pretax income | $ 47 | $ 482 |
Effective tax rate | 111.00% | 19.00% |
Reasonably possible decrease of unrecognized tax benefits | $ 17 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Numerator: | ||
Net income | $ 99 | $ 392 |
Denominator: | ||
Weighted-average shares outstanding for basic earnings per share (in shares) | 896 | 771 |
Effect of dilutive securities: | ||
Employee stock awards (in shares) | 17 | 22 |
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares) | 913 | 793 |
Net Income Per Share - Shares E
Net Income Per Share - Shares Excluded from Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Employee stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded | 10 | 3 |
Leases and Other Commitments -
Leases and Other Commitments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Other Commitments [Line Items] | ||
Operating lease extension term | 5 years | |
Operating lease termination option | 1 year | |
Total operating lease costs | $ 279 | $ 206 |
Cash payments on operating leases | 226 | |
Right-of use assets obtained in exchange for operating lease liabilities | $ 189 | |
Operating lease, weighted average remaining lease term | 7 years | |
Operating lease, weighted average discount rate | 2.70% | |
Finance leases, weighted-average remaining lease term | 18 years | |
Finance lease, weighted average discount rate | 4.50% | |
Sublease income, next five years | $ 187 | |
Sublease income, thereafter | 49 | |
Operating leases, not yet commenced | 2,400 | |
Operating lease commitment balance, including leases not yet commenced | 5,900 | |
Letter of credit | ||
Other Commitments [Line Items] | ||
Value of outstanding letters of credit | $ 94 | |
Minimum | ||
Other Commitments [Line Items] | ||
Operating lease term | 1 year | |
Operating lease term, not yet commenced | 1 year | |
Maximum | ||
Other Commitments [Line Items] | ||
Operating lease term | 22 years | |
Operating lease term, not yet commenced | 18 years | |
Facilities Space | ||
Other Commitments [Line Items] | ||
Operating lease commitment balance, including leases not yet commenced | $ 5,400 |
Leases and Other Commitments _2
Leases and Other Commitments - Maturities of Lease Liabilities (Details) $ in Millions | Apr. 30, 2020USD ($) |
Operating Leases | |
Remaining nine months of Fiscal 2021 | $ 618 |
Fiscal 2022 | 665 |
Fiscal 2023 | 490 |
Fiscal 2024 | 371 |
Fiscal 2025 | 301 |
Thereafter | 1,054 |
Total minimum lease payments | 3,499 |
Less: imputed interest | (335) |
Total | 3,164 |
Finance Leases | |
Remaining nine months of Fiscal 2021 | 49 |
Fiscal 2022 | 23 |
Fiscal 2023 | 23 |
Fiscal 2024 | 24 |
Fiscal 2025 | 24 |
Thereafter | 410 |
Total minimum lease payments | 553 |
Less: Imputed interest | (182) |
Total | $ 371 |
Legal Proceedings and Claims (D
Legal Proceedings and Claims (Details) - Tableau Software, Inc. (Tableau) Litigation | 1 Months Ended | 2 Months Ended |
Feb. 28, 2018employee | Aug. 31, 2017claimemployee | |
Loss Contingencies [Line Items] | ||
Number of claims filed | claim | 2 | |
Number of defendants | employee | 2 | 2 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Affiliated Entity | 9 Months Ended |
Apr. 30, 2020USD ($)board_seatemployee | |
Related Party Transaction [Line Items] | |
Number of Company's board members that hold board seats in Foundation | board_seat | 1 |
Number of board seats in Foundation | employee | 3 |
Maximum charitable cash commitment per quarter | $ | $ 5,000,000 |
Period for quarterly charitable cash commitment | 10 years |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2020USD ($) | |
Forecast | Subsequent Event | Vlocity, Inc | |
Subsequent Event [Line Items] | |
Total estimated consideration | $ 1,200 |