Cover
Cover - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 07, 2023 | Jul. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2023 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32224 | ||
Entity Registrant Name | Salesforce, Inc. | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 164.4 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders (the “Proxy Statement”), to be filed within 120 days of the Registrant’s fiscal year ended January 31, 2023, are incorporated by reference in Part III of this Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0001108524 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 7,016 | $ 5,464 |
Marketable securities | 5,492 | 5,073 |
Accounts receivable, net | 10,755 | 9,739 |
Costs capitalized to obtain revenue contracts, net | 1,776 | 1,454 |
Prepaid expenses and other current assets | 1,356 | 1,120 |
Total current assets | 26,395 | 22,850 |
Property and equipment, net | 3,702 | 2,815 |
Operating lease right-of-use assets, net | 2,890 | 2,880 |
Noncurrent costs capitalized to obtain revenue contracts, net | 2,697 | 2,342 |
Strategic investments | 4,672 | 4,784 |
Goodwill | 48,568 | 47,937 |
Intangible assets acquired through business combinations, net | 7,125 | 8,978 |
Deferred tax assets and other assets, net | 2,800 | 2,623 |
Total assets | 98,849 | 95,209 |
Current liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 6,743 | 5,470 |
Operating lease liabilities, current | 590 | 686 |
Unearned revenue | 17,376 | 15,628 |
Debt, current | 1,182 | 4 |
Total current liabilities | 25,891 | 21,788 |
Noncurrent debt | 9,419 | 10,592 |
Noncurrent operating lease liabilities | 2,897 | 2,703 |
Other noncurrent liabilities | 2,283 | 1,995 |
Total liabilities | 40,490 | 37,078 |
Commitments and contingencies (See Notes 6 and 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5 shares authorized and none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 1,600 shares authorized, 1,009 and 989 issued and outstanding at January 31, 2023 and 2022, respectively | 1 | 1 |
Treasury stock, at cost | (4,000) | 0 |
Additional paid-in capital | 55,047 | 50,919 |
Accumulated other comprehensive loss | (274) | (166) |
Retained earnings | 7,585 | 7,377 |
Total stockholders’ equity | 58,359 | 58,131 |
Total liabilities and stockholders’ equity | $ 98,849 | $ 95,209 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2023 | Jan. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 1,009,000,000 | 989,000,000 |
Common stock, shares outstanding (in shares) | 1,009,000,000 | 989,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Revenues: | ||||
Total revenues | $ 31,352 | $ 26,492 | $ 21,252 | |
Cost of revenues: | ||||
Total cost of revenues | [1],[2] | 8,360 | 7,026 | 5,438 |
Gross profit | 22,992 | 19,466 | 15,814 | |
Operating expenses: | ||||
Research and development | [1],[2] | 5,055 | 4,465 | 3,598 |
Marketing and sales | [1],[2] | 13,526 | 11,855 | 9,674 |
General and administrative | [1],[2] | 2,553 | 2,598 | 2,087 |
Restructuring (Note 10) | [1],[2] | 828 | 0 | 0 |
Total operating expenses | [1],[2] | 21,962 | 18,918 | 15,359 |
Income from operations | 1,030 | 548 | 455 | |
Gains (losses) on strategic investments, net | (239) | 1,211 | 2,170 | |
Other expense | (131) | (227) | (64) | |
Income before benefit from (provision for) income taxes | 660 | 1,532 | 2,561 | |
Benefit from (provision for) income taxes | [3] | (452) | (88) | 1,511 |
Net income | $ 208 | $ 1,444 | $ 4,072 | |
Basic net income per share (in dollars per share) | $ 0.21 | $ 1.51 | $ 4.48 | |
Diluted net income per share (in dollars per share) | $ 0.21 | $ 1.48 | $ 4.38 | |
Shares used in computing basic net income per share (in shares) | 992 | 955 | 908 | |
Shares used in computing diluted net income per share (in shares) | 997 | 974 | 930 | |
Subscription and support | ||||
Revenues: | ||||
Total revenues | $ 29,021 | $ 24,657 | $ 19,976 | |
Cost of revenues: | ||||
Total cost of revenues | [1],[2] | 5,821 | 5,059 | 4,154 |
Professional services and other | ||||
Revenues: | ||||
Total revenues | 2,331 | 1,835 | 1,276 | |
Cost of revenues: | ||||
Total cost of revenues | [1],[2] | $ 2,539 | $ 1,967 | $ 1,284 |
[1]Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 1,035 $ 897 $ 662 Marketing and sales 916 727 459 Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 499 $ 386 $ 241 Research and development 1,136 918 703 Marketing and sales 1,256 1,104 941 General and administrative 368 371 305 Restructuring 20 0 0 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Stock-based expenses | $ 3,279 | $ 2,779 | $ 2,190 |
Discrete tax benefit | 2,000 | ||
Cost of revenues | |||
Amortization of intangibles acquired through business combinations | 1,035 | 897 | 662 |
Stock-based expenses | 499 | 386 | 241 |
Marketing and sales | |||
Amortization of intangibles acquired through business combinations | 916 | 727 | 459 |
Stock-based expenses | 1,256 | 1,104 | 941 |
Research and development | |||
Stock-based expenses | 1,136 | 918 | 703 |
General and administrative | |||
Stock-based expenses | 368 | 371 | 305 |
Restructuring | |||
Stock-based expenses | $ 20 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 208 | $ 1,444 | $ 4,072 |
Other comprehensive income (loss), net of reclassification adjustments: | |||
Foreign currency translation and other gains (losses) | (35) | (55) | 40 |
Unrealized gains (losses) on marketable securities and privately held debt securities | (94) | (83) | 15 |
Other comprehensive income (loss), before tax | (129) | (138) | 55 |
Tax effect | 21 | 14 | (4) |
Other comprehensive income (loss), net | (108) | (124) | 51 |
Comprehensive income | $ 100 | $ 1,320 | $ 4,123 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Jan. 31, 2020 | 893 | |||||
Beginning balance at Jan. 31, 2020 | $ 33,885 | $ 1 | $ 0 | $ 32,116 | $ (93) | $ 1,861 |
Beginning balance (in shares) at Jan. 31, 2020 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued (in shares) | 26 | |||||
Common stock issued | 1,295 | 1,295 | ||||
Stock-based compensation expense | 2,190 | 2,190 | ||||
Other comprehensive loss, net of tax | 51 | 51 | ||||
Net income | 4,072 | 4,072 | ||||
Ending balance (in shares) at Jan. 31, 2021 | 919 | |||||
Ending balance at Jan. 31, 2021 | 41,493 | $ 1 | $ 0 | 35,601 | (42) | 5,933 |
Ending balance (in shares) at Jan. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued (in shares) | 24 | |||||
Common stock issued | 1,270 | 1,270 | ||||
Shares issued related to business combinations (in shares) | 46 | |||||
Shares issued related to business combinations | 11,269 | 11,269 | ||||
Stock-based compensation expense | 2,779 | 2,779 | ||||
Other comprehensive loss, net of tax | (124) | (124) | ||||
Net income | 1,444 | 1,444 | ||||
Ending balance (in shares) at Jan. 31, 2022 | 989 | |||||
Ending balance at Jan. 31, 2022 | 58,131 | $ 1 | $ 0 | 50,919 | (166) | 7,377 |
Ending balance (in shares) at Jan. 31, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued (in shares) | 20 | |||||
Common stock issued | 849 | 849 | ||||
Common stock repurchased (in shares) | (28) | |||||
Common stock repurchased | (4,000) | $ (4,000) | ||||
Stock-based compensation expense | 3,279 | 3,279 | ||||
Other comprehensive loss, net of tax | (108) | (108) | ||||
Net income | 208 | 208 | ||||
Ending balance (in shares) at Jan. 31, 2023 | 1,009 | |||||
Ending balance at Jan. 31, 2023 | $ 58,359 | $ 1 | $ (4,000) | $ 55,047 | $ (274) | $ 7,585 |
Ending balance (in shares) at Jan. 31, 2023 | (28) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Operating activities: | ||||
Net income | $ 208 | $ 1,444 | $ 4,072 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | [1] | 3,786 | 3,298 | 2,846 |
Amortization of costs capitalized to obtain revenue contracts, net | 1,668 | 1,348 | 1,058 | |
Stock-based compensation expense | 3,279 | 2,779 | 2,190 | |
(Gains) losses on strategic investments, net | 239 | (1,211) | (2,170) | |
Tax benefit from intra-entity transfer of intangible property | 0 | 0 | (2,003) | |
Changes in assets and liabilities, net of business combinations: | ||||
Accounts receivable, net | (995) | (1,824) | (1,556) | |
Costs capitalized to obtain revenue contracts, net | (2,345) | (2,283) | (1,645) | |
Prepaid expenses and other current assets and other assets | (302) | 114 | (133) | |
Accounts payable and accrued expenses and other liabilities | 528 | 507 | 1,100 | |
Operating lease liabilities | (699) | (801) | (830) | |
Unearned revenue | 1,744 | 2,629 | 1,872 | |
Net cash provided by operating activities | 7,111 | 6,000 | 4,801 | |
Investing activities: | ||||
Business combinations, net of cash acquired | (439) | (14,876) | (1,281) | |
Purchases of strategic investments | (550) | (1,718) | (1,069) | |
Sales of strategic investments | 355 | 2,201 | 1,051 | |
Purchases of marketable securities | (4,777) | (5,674) | (4,833) | |
Sales of marketable securities | 1,771 | 4,179 | 1,836 | |
Maturities of marketable securities | 2,449 | 2,069 | 1,035 | |
Capital expenditures | (798) | (717) | (710) | |
Net cash used in investing activities | (1,989) | (14,536) | (3,971) | |
Financing activities: | ||||
Proceeds from issuance of debt, net of issuance costs | 0 | 7,906 | (20) | |
Repayments of Slack Convertible Notes, net of capped call proceeds | 0 | (1,197) | 0 | |
Repurchases of common stock | (4,000) | 0 | 0 | |
Proceeds from employee stock plans | 861 | 1,289 | 1,321 | |
Principal payments on financing obligations | (419) | (156) | (103) | |
Repayments of debt | (4) | (4) | (4) | |
Net cash provided by (used in) financing activities | (3,562) | 7,838 | 1,194 | |
Effect of exchange rate changes | (8) | (33) | 26 | |
Net increase (decrease) in cash and cash equivalents | 1,552 | (731) | 2,050 | |
Cash and cash equivalents, beginning of period | 5,464 | 6,195 | 4,145 | |
Cash and cash equivalents, end of period | 7,016 | 5,464 | 6,195 | |
Cash paid during the period for: | ||||
Interest | 275 | 187 | 96 | |
Income taxes, net of tax refunds | 510 | 196 | 216 | |
Non-cash investing and financing activities: | ||||
Fair value of equity awards assumed | 7 | 205 | 6 | |
Fair value of common stock issued as consideration for business combinations | $ 0 | $ 11,064 | $ 0 | |
[1] Includes amortization of intangible assets acquired through business combinations, depreciation of fixed assets and amortization of right of use assets. |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Salesforce, Inc. (the “Company”) is a global leader in customer relationship management technology that brings companies and customers together. With the Customer 360 platform, the Company delivers a single source of truth, connecting customer data across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Since its founding in 1999, Salesforce has pioneered innovations in cloud, mobile, social, analytics and artificial intelligence, enabling companies of every size and industry to transform their businesses in the all-digital, work-from-anywhere era. In March 2022, the Company changed its corporate name from salesforce.com, inc. to Salesforce, Inc. Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023. 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 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, which forms the basis for making judgments about the carrying values of assets and liabilities. Principles of Consolidation The 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 which 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 service offerings operate on the Customer 360 Platform and are deployed in a nearly identical manner, 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 January 2023, former co-CEO and Vice Chair of the Company’s Board of Directors, Bret Taylor, resigned his positions from the Company. Prior to his resignation, Mr. Taylor was identified as a co-CODM along with Marc Benioff, CEO and Chair of the Board. Upon Mr. Taylor’s resignation, Mr. Benioff assumed all Mr. Taylor’s responsibilities and, a s of January, 31 2023, is the primary executive 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. The Company’s investment portfolio consists primarily of investment-grade securities, and per the Company’s policy, limits the amount of credit exposure to any one issuer. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company does not require collateral 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. The Company records the allowance against bad debt expense through the consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the consolidated balance sheets. 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 January 31, 2023 and January 31, 2022. No single customer accounted for five percent or more of total revenue during fiscal 2023, 2022 and 2021. As of January 31, 2023 and January 31, 2022, assets located outside the Americas were 15 percent and 13 percent of total assets, respectively. As of January 31, 2023 and January 31, 2022, assets located in the United States were 83 percent and 86 percent of total assets, respectively. The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology st artups and system integrators. As of January 31, 2023, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented 16 percent of the portfolio in aggregate. As of January 31, 2022, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its strategic investment portfolio and represented 21 percent of the portfolio in aggregate. Revenue Recognition The Company derives its revenues from two sources: subscription and support revenues and professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term and perpetual licenses and support revenues from the sales of support and updates beyond the basic subscription fees or related to the sales of software licenses. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services. 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. 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. Substantially all of the Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and support revenues also include revenues associated with term and perpetual software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term and perpetual software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually and its 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 price 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. Other revenues consist primarily of training revenues recognized as such 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 performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be 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, software licenses and support and updates services are generally concluded to be 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 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 and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines SSP 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 indicated by the distribution of its observable prices. Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices is highly variable. 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 revenue contracts related to non-cancelable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with on-premises software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. 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 (4) to a lesser extent, 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 is longer than the typical initial contract period, but reflects the estimated 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 consolidated statements of operations. There were no impairments of costs to obtain revenue contracts for fiscal 2023 and 2022. 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 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 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. Expected credit losses on securities are recognized in other expense, net on the 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 within other expense on the consolidated statements of operations. 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 where 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 or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the consolidated balance sheet. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. 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 consolidated statements 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 consolidated statements of operations. The Company may enter into strategic investments or other investments that are considered variable interest entities (“VIEs”). If the Company is a primary beneficiary of a VIE, it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE investments requires significant assumptions and judgments. VIEs that are not consolidated are accounted for under the measurement alternative, equity method, amortized cost, or other appropriate methodology based on the nature of the interest held. Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt securities and privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.” Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. 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 derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. 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. The notional amount of foreign currency derivative contracts as of January 31, 2023 and January 31, 2022 was $6.0 billion and $6.1 billion, respectively. Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other expense consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Buildings and building improvements 10 to 40 years Computers, equipment and software 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives. 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. Leases The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. Assets recognized from finance leases (also referred to as ROU assets) are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of 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 an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located. The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement. Lease expenses for minimum lease payments for operating leases, which includes amortization expense of ROU assets, are recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term, and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments are recognized as incurred. On the lease commencement date, the Company also 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 included in property and equipment, net and are amortized over the lease term to operating expense. The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease. 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 other 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. 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, tax-related valuation allowances and pre-acquisition contingencies 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 consolidated statements 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 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 (losses) on strategic investments in the consolidated statements of operations. Restructuring The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. Stock-Based Compensation Expense Stock-based compensation expense is measured based on grant date at fair value using the Black-Scholes option pricing model for stock options and the grant date closing stock price for restricted stock awards. The Company recognizes stock-based compensation expense 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. The estimated forfeiture rate applied is based on historical forfeiture rates. Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense related to shares issued pursuant to the 2004 |
Revenues
Revenues | 12 Months Ended |
Jan. 31, 2023 | |
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): Fiscal Year Ended January 31, 2023 2022 2021 Sales $ 6,831 $ 5,989 $ 5,191 Service 7,369 6,474 5,377 Platform and Other 5,967 4,509 3,324 Marketing and Commerce 4,516 3,902 3,133 Data 4,338 3,783 2,951 $ 29,021 $ 24,657 $ 19,976 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Americas $ 21,250 $ 17,983 $ 14,736 Europe 7,163 6,016 4,501 Asia Pacific 2,939 2,493 2,015 $ 31,352 $ 26,492 $ 21,252 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 93 percent, 94 percent and 95 percent during fiscal 2023, 2022 and 2021, respectively. No other country represented more than ten percent of total revenue during fiscal 2023, 2022 and 2021. Contract Balances Contract Assets The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $648 million as of January 31, 2023 as compared to $587 million as of January 31, 2022, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the consolidated balance sheets. 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 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): Fiscal Year Ended January 31, 2023 2022 Unearned revenue, beginning of period $ 15,628 $ 12,607 Billings and other (1) 33,034 29,011 Contribution from contract asset 62 110 Revenue recognized over time (29,595) (24,841) Revenue recognized at a point in time (1,757) (1,651) Unearned revenue from business combinations 4 392 Unearned revenue, end of period $ 17,376 $ 15,628 (1) Other includes, for example, the impact of foreign currency translation. Revenue recognized over time primarily includes Cloud Services subscription and support revenue, which is generally recognized ratably over time, and professional services and other revenue, which is generally recognized ratably or as delivered. Revenue recognized at a point in time substantially consists of on-premises software licenses. Approximately 49 percent of total revenue recognized in fiscal 2023 is from the unearned revenue balance as of January, 31, 2022. 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 based on SSP. 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. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Remaining performance obligation is subject to future economic risks, including bankruptcies, regulatory changes and other market factors. The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized 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 January 31, 2023 $ 24.6 $ 24.0 $ 48.6 As of January 31, 2022 22.0 21.7 43.7 |
Investments
Investments | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities At January 31, 2023, marketable securities consisted of the following (in millions): Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 3,442 $ 4 $ (92) $ 3,354 U.S. treasury securities 381 0 (11) 370 Mortgage-backed obligations 190 0 (12) 178 Asset-backed securities 1,004 1 (20) 985 Municipal securities 175 0 (6) 169 Commercial paper 278 0 0 278 Covered bonds 105 0 (4) 101 Other 59 0 (2) 57 Total marketable securities $ 5,634 $ 5 $ (147) $ 5,492 At January 31, 2022, marketable securities consisted of the following (in millions): Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 3,153 $ 2 $ (34) $ 3,121 U.S. treasury securities 205 0 (3) 202 Mortgage-backed obligations 229 0 (4) 225 Asset-backed securities 1,056 0 (5) 1,051 Municipal securities 225 0 (2) 223 Commercial paper 27 0 0 27 Covered bonds 212 0 (2) 210 Other 14 0 0 14 Total marketable securities $ 5,121 $ 2 $ (50) $ 5,073 The contractual maturities of the investments classified as marketable securities were as follows (in millions): As of January 31, 2023 January 31, 2022 Due within 1 year $ 2,380 $ 2,161 Due in 1 year through 5 years 3,104 2,899 Due in 5 years through 10 years 8 13 $ 5,492 $ 5,073 Strategic Investments Strategic investments by form and measurement category as of January 31, 2023 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 48 $ 4,479 $ 76 $ 4,603 Debt securities and other investments 0 0 69 69 Balance as of January 31, 2023 $ 48 $ 4,479 $ 145 $ 4,672 Strategic investments by form and measurement category as of January 31, 2022 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 370 $ 4,204 $ 122 $ 4,696 Debt securities and other investments 0 0 88 88 Balance as of January 31, 2022 $ 370 $ 4,204 $ 210 $ 4,784 The Company holds investments in, or management agreements with, VIEs which the Company does not consolidate because it is not considered the primary beneficiary of these entities. The carrying value of VIEs within strategic investments was $354 million and $467 million, as of January 31, 2023 and 2022, respectively. Gains (Losses) on Strategic Investments, Net The components of gains and losses on strategic investments were as follows (in millions): 4 Fiscal Year Ended January 31, 2023 2022 2021 Unrealized gains (losses) recognized on publicly traded equity securities, net $ 1 $ (241) $ 1,743 Unrealized gains recognized on privately held equity securities, net 180 1,210 184 Impairments on privately held equity and debt securities (491) (51) (124) Unrealized gains (losses), net (310) 918 1,803 Realized gains on sales of securities, net 71 293 367 Gains (losses) on strategic investments, net $ (239) $ 1,211 $ 2,170 Unrealized gains and losses recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories. For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $220 million and $1.2 billion and impairments and downward adjustments of $466 million and $61 million for fiscal 2023 and 2022, respectively. Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 31, 2023 | |
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 were measured at fair value as of January 31, 2023 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Fair Value Cash equivalents (1): Time deposits $ 0 $ 1,877 $ 0 $ 1,877 Money market mutual funds 1,795 0 0 1,795 Cash equivalent securities 0 794 0 794 Marketable securities: Corporate notes and obligations 0 3,354 0 3,354 U.S. treasury securities 0 370 0 370 Mortgage-backed obligations 0 178 0 178 Asset-backed securities 0 985 0 985 Municipal securities 0 169 0 169 Commercial paper 0 278 0 278 Covered bonds 0 101 0 101 Other 0 57 0 57 Strategic investments: Equity securities 48 0 0 48 Total assets $ 1,843 $ 8,163 $ 0 $ 10,006 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.6 billion of cash, as of January 31, 2023. The following table presents information about the Company’s assets and liabilities that were measured at fair value as of January 31, 2022 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Fair Value Cash equivalents (1): Time deposits $ 0 $ 1,171 $ 0 $ 1,171 Money market mutual funds 1,426 0 0 1,426 Cash equivalent securities 0 106 0 106 Marketable securities: Corporate notes and obligations 0 3,121 0 3,121 U.S. treasury securities 0 202 0 202 Mortgage-backed obligations 0 225 0 225 Asset-backed securities 0 1,051 0 1,051 Municipal securities 0 223 0 223 Commercial paper 0 27 0 27 Covered bonds 0 210 0 210 Other 0 14 0 14 Strategic investments: Equity securities 370 0 0 370 Total assets $ 1,796 $ 6,350 $ 0 $ 8,146 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.8 billion of cash, as of January 31, 2022. Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis Substantially all of the Company's privately held debt and equity securities and other 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 deems these assets as Level 3 within the fair value measurement framework. For investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the Company’s investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. When indicators of impairment are observed, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held debt and equity securities and other investments amounted to $4.6 billion and $4.4 billion as of January 31, 2023 and January 31, 2022 , respectively. |
Property and Equipment, Net and
Property and Equipment, Net and Other Balance Sheet Accounts | 12 Months Ended |
Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net and Other Balance Sheet Accounts | Property and Equipment, Net and Other Balance Sheet Accounts Property and Equipment Property and equipment, net consisted of the following (in millions): As of January 31, 2023 2022 Land $ 293 $ 293 Buildings and building improvements 489 487 Computers, equipment and software 3,556 2,543 Furniture and fixtures 259 237 Leasehold improvements 1,807 1,656 Property and equipment, gross 6,404 5,216 Less accumulated depreciation and amortization (2,702) (2,401) Property and equipment, net $ 3,702 $ 2,815 Depreciation and amortization expense totaled $903 million, $678 million and $579 million during fiscal 2023, 2022 and 2021, respectively. Other Balance Sheet Accounts Accounts payable, accrued expenses and other liabilities as of January 31, 2023 included approximately $2.6 billion of accrued compensation as compared to $2.4 billion as of January 31, 2022. |
Leases and Other Commitments an
Leases and Other Commitments and Other Balance Sheet Accounts | 12 Months Ended |
Jan. 31, 2023 | |
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 noncancellable operating leases with various expiration dates. The leases have noncancellable remaining terms of 1 year to 17 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year. The components of lease expense were as follows (in millions): Fiscal Year Ended January 31, 2023 2022 Operating lease cost $ 986 $ 1,080 Finance lease cost: Amortization of right-of-use assets $ 198 $ 125 Interest on lease liabilities 10 5 Total finance lease cost $ 208 $ 130 Supplemental cash flow information related to operating and finance leases was as follows (in millions): Fiscal Year Ended January 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 769 $ 873 Operating cash outflows for finance leases 10 5 Financing cash outflows for finance leases 180 74 Right-of-use assets obtained in exchange for lease obligations: Operating leases 915 364 Supplemental balance sheet information related to operating and finance leases was as follows (in millions): As of January 31, 2023 2022 Operating leases: Operating lease right-of-use assets $ 2,890 $ 2,880 Operating lease liabilities, current $ 590 $ 686 Noncurrent operating lease liabilities 2,897 2,703 Total operating lease liabilities $ 3,487 $ 3,389 Finance leases: Computers, equipment and software $ 1,053 $ 928 Accumulated depreciation (264) (528) Property and equipment, net $ 789 $ 400 Accrued expenses and other liabilities $ 257 $ 114 Other noncurrent liabilities 534 271 Total finance lease liabilities $ 791 $ 385 Other information related to leases was as follows: As of January 31, 2023 2022 Weighted average remaining lease term Operating leases 7 years 7 years Finance leases 3 years 3 years Weighted average discount rate Operating leases 2.6 % 2.1 % Finance leases 2.1 % 1.9 % As of January 31, 2023, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Fiscal 2024 $ 663 $ 270 Fiscal 2025 524 265 Fiscal 2026 536 199 Fiscal 2027 486 85 Fiscal 2028 437 0 Thereafter 1,239 0 Total minimum lease payments 3,885 819 Less: Imputed interest (398) (28) Total $ 3,487 $ 791 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 $237 million in the next five years and $42 million thereafter. As of January 31, 2023, the Company had additional leases that had not yet commenced totaling $0.4 billion and therefore are not reflected on the consolidated balance sheet and tables above. These leases include agreements for office facilities to be constructed. These leases will commence between fiscal year 2024 and fiscal year 2025 with lease terms of 1 to 17 years. Of the total lease commitment balance, including leases not yet commenced, of $5.1 billion, approximately $4.2 billion is related to facilities space. The remaining commitment amount is primarily related to equipment. Letters of Credit |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Fiscal Year 2023 Traction Sales and Marketing Inc. In April 2022, the Company acquired all outstanding stock of Traction Sales and Marketing Inc. ("Traction on Demand”), a professional services firm that provides innovative and critical solutions to clients using the Company’s service offerings and other advanced cloud technologies. The acquisition date fair value of the consideration transferred for Traction on Demand was approximately $340 million, which consisted primarily of $302 million in cash. The Company recorded approximately $62 million for customer relationships with estimated useful lives of five years. The Company recorded approximately $293 million of goodwill which is primarily attributed to the assembled workforce. For the goodwill balance, there is some basis for foreign income tax purposes but no basis for U.S. income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, legal and other contingencies as of the acquisition date, income and non-income-based taxes and residual goodwill. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The Company has included the financial results of Traction on Demand in its condensed consolidated financial statements from the date of acquisition, which were not material. The transaction costs associated with the acquisition were not material. Fiscal Year 2022 Slack Technologies, Inc. On July 21, 2021, the Company acquired all outstanding stock of Slack, a leading channel-based messaging platform. The transaction costs associated with the acquisition were approximately $54 million and were recorded in general and administrative expense during fiscal 2022. The acquisition date fair value of the consideration transferred for Slack was approximately $27.1 billion, which consisted of the following (in millions): Fair Value Cash $ 15,799 Common stock issued 11,064 Fair value of stock options, restricted stock units and restricted stock awards assumed 205 Total $ 27,068 The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. A share conversion ratio of 0.1885 and 0.1804 was applied to convert Slack's outstanding (i) stock options and restricted stock units and (ii) restricted stock awards, respectively, into equity awards for shares of the Company’s common stock. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 1,508 Accounts receivable 98 Acquired customer contract asset 70 Operating lease right-of-use assets 200 Other assets 409 Goodwill 21,410 Intangible assets 6,350 Accounts payable, accrued expenses and other liabilities (478) Unearned revenue (382) Slack Convertible Notes (see Note 9) (1,339) Operating lease liabilities (303) Deferred tax liability (475) Net assets acquired $ 27,068 The excess of purchase consideration over the fair value of other assets acquired and liabilities assumed was recorded as goodwill. The resulting goodwill is primarily attributed to the assembled workforce and expanded market opportunities, including integrating the Slack product offering with existing Company service offerings in a digital-first, work anywhere world. The goodwill has no basis for U.S. income tax purposes. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 2,360 5 years Customer relationships 3,690 8 years Other purchased intangible assets 300 6 years Total intangible assets subject to amortization $ 6,350 Developed technology represents the preliminary estimated fair value of Slack's data analysis technologies. Customer relationships represent the preliminary estimated fair values of the underlying relationships with Slack customers. The Company assumed unvested stock options, restricted stock units and restricted stock awards with an estimated fair value of $1.7 billion. Of the total consideration, $205 million was allocated to the purchase consideration and $1.5 billion was allocated to future services and will be expensed over the remaining service periods on a straight-line basis. Acumen Solutions, Inc. In February 2021, the Company acquired all outstanding stock of Acumen Solutions, Inc. (“Acumen”), a professional services firm that provides innovative and critical solutions to clients using the Company’s service offerings and other advanced cloud technologies. The acquisition date fair value of the consideration transferred for Acumen was approximately $433 million, in cash. The Company recorded approximately $99 million for customer relationships with estimated useful lives of eight years. The Company recorded approximately $337 million of goodwill which is primarily attributed to the assembled workforce. For the goodwill balance there is no basis for U.S. income tax purposes. Fiscal Year 2021 Vlocity In June 2020, the Company acquired all outstanding stock of Vlocity, Inc. ("Vlocity"), a leading provider of industry-specific cloud and mobile software. The transaction costs associated with its acquisition were immaterial. The acquisition date fair value of the consideration transferred for Vlocity was approximately $1.4 billion, which primarily consisted of $1.2 billion of cash paid and $208 million of fair value related to the pre-existing relationship. The Company recorded $473 million of intangible assets related to customer relationships and developed technology with useful life of four The Company assumed unvested options with a fair value of $139 million. Of the total consideration, $6 million was allocated to the purchase consideration and $133 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis. The Company had a noncontrolling equity investment in Vlocity valued at $167 million prior to the acquisition. The Company recognized a gain of approximately $41 million as a result of remeasuring its prior equity interest in Vlocity held before the business combination. The gain is included in gains on strategic investments, net in the consolidated statements of operations. Evergage |
Intangible Assets Acquired Thro
Intangible Assets Acquired Through Business Combinations and Goodwill | 12 Months Ended |
Jan. 31, 2023 | |
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 Combinations Intangible assets acquired through business combinations were as follows (in millions): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted January 31, 2022 Additions and retirements, net (1) January 31, 2023 January 31, 2022 Expense and retirements, net January 31, 2023 January 31, 2022 January 31, 2023 January 31, 2023 Acquired developed technology $ 5,633 $ (789) $ 4,844 $ (2,263) $ (208) $ (2,471) $ 3,370 $ 2,373 3.8 Customer relationships 6,995 (304) 6,691 (1,662) (500) (2,162) 5,333 4,529 6.7 Other (2) 345 (42) 303 (70) (10) (80) 275 223 5.5 Total $ 12,973 $ (1,135) $ 11,838 $ (3,995) $ (718) $ (4,713) $ 8,978 $ 7,125 5.7 (1) The Company retired $1.2 billion of fully depreciated intangible assets during fiscal 2023, of which $826 million were included in acquired developed technology and $366 million were included in customer relationships. (2) Included in other are in-place leases, trade names, trademarks and territory rights. Amortization of intangible assets resulting from business combinations for fiscal 2023, 2022 and 2021 was $2.0 billion, $1.6 billion and $1.1 billion, respectively. The expected future amortization expense for intangible assets as of January 31, 2023 was as follows (in millions): Fiscal Period: Fiscal 2024 $ 1,869 Fiscal 2025 1,597 Fiscal 2026 1,355 Fiscal 2027 990 Fiscal 2028 616 Thereafter 698 Total amortization expense $ 7,125 Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions): Balance at January 31, 2021 $ 26,318 Slack 21,161 Acumen 337 Other acquisitions and adjustments (1) 121 Balance as of January 31, 2022 $ 47,937 Traction on Demand 293 Other acquisitions and adjustments (1) 338 Balance as of January 31, 2023 $ 48,568 (1) Adjustments include measurement period adjustments for business combinations from the prior year, including approximately $249 million in fiscal 2023 related to the Company’s July 2021 acquisition of Slack Technologies, Inc. (“Slack”) and the effect of foreign currency translation. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying values of the Company's borrowings were as follows (in millions): Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of January 31, 2023 January 31, 2023 January 31, 2022 2023 Senior Notes April 2018 April 2023 3.25 % $ 1,000 $ 1,000 $ 998 Loan assumed on 50 Fremont February 2015 June 2023 3.75 182 182 186 2024 Senior Notes July 2021 July 2024 0.625 1,000 998 997 2028 Senior Notes April 2018 April 2028 3.70 1,500 1,493 1,492 2028 Senior Sustainability Notes July 2021 July 2028 1.50 1,000 992 990 2031 Senior Notes July 2021 July 2031 1.95 1,500 1,489 1,488 2041 Senior Notes July 2021 July 2041 2.70 1,250 1,235 1,234 2051 Senior Notes July 2021 July 2051 2.90 2,000 1,977 1,976 2061 Senior Notes July 2021 July 2061 3.05 1,250 1,235 1,235 Total carrying value of debt $ 10,682 10,601 10,596 Less current portion of debt (1,182) (4) Total noncurrent debt $ 9,419 $ 10,592 The Company was in compliance with all debt covenants as of January 31, 2023. The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $8.8 billion and $10.3 billion as of January 31, 2023 and 2022, respectively. The fair value was determined based on the closing trading price per $100 of the Senior Notes as of the last day of trading of fiscal 2023 and the last day of trading of fiscal 2022, respectively, and are deemed Level 2 liabilities within the fair value measurement framework. The contractual future principal payments for all borrowings as of January 31, 2023 were as follows (in millions): Fiscal Period: Fiscal 2024 $ 1,182 Fiscal 2025 1,000 Fiscal 2026 0 Fiscal 2027 0 Fiscal 2028 0 Thereafter 8,500 Total principal outstanding $ 10,682 Revolving Credit Facility In December 2020, the Company entered into a Credit Agreement with Citibank, N.A., as administrative agent, and certain other institutional lenders (the “Revolving Loan Credit Agreement”) that provides for a $3.0 billion unsecured revolving credit facility (“Credit Facility”) and matures in December 2025. The Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes, which may include, without limitation, financing the consideration for, fees, costs and expenses related to any acquisition. In April 2022, the Company amended the Revolving Loan Credit Agreement to reflect certain administrative changes. There were no outstanding borrowings under the Credit Facility as of January 31, 2023. 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 consolidated statements of operations. Interest Expense on Debt The following table sets forth total interest expense recognized related to debt (in millions), which is included within other expense in the Company’s consolidated statements of operations: Fiscal Year Ended January 31, 2023 2022 2021 Contractual interest expense $ 277 $ 198 $ 96 Amortization of debt discounts and debt issuance costs 10 18 14 $ 287 $ 216 $ 110 |
Restructuring
Restructuring | 12 Months Ended |
Jan. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In January 2023, the Company announced a restructuring plan (the “Plan”) intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. The Plan includes a reduction of the Company’s workforce and select real estate exits and office space reductions within certain markets. The actions associated with the employee restructuring under the Plan are expected to be substantially complete by the end of the Company’s fiscal 2024, subject to local law and consultation requirements. The actions associated with the real estate restructuring under the Plan are expected to be fully complete in fiscal 2026. The Company incurred approximately $828 million in charges in connection with the Plan in fiscal 2023, which consists of $683 million in charges related to employee transition, severance payments, employee benefits and share-based compensation and $145 million in exit charges associated with the office space reductions. The following table summarizes the activities related to the restructuring for fiscal 2023 (in millions): Workforce reduction Real estate exits and office space reductions Total Charges $ 683 $ 145 $ 828 Payments (48) (25) (73) Non-cash items (28) (120) (148) Liability as of January 31, 2023 $ 607 $ 0 $ 607 The liability as of January 31, 2023 for restructuring charges, which is related to workforce reduction, is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company maintains the following stock plans: the ESPP, the 2013 Equity Incentive Plan and the 2014 Inducement Equity Incentive Plan (“2014 Inducement Plan”). Options issued have terms of seven years. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share: Fiscal Year Ended January 31, 2023 2022 2021 Volatility 34 - 40 % 34 - 37 % 28 - 37 % Estimated life 3.5 years 3.5 years 3.5 years Risk-free interest rate 1.7 - 4.4 % 0.4 - 1.7 % 0.2 - 1.4 % Weighted-average fair value per share of grants $ 62.10 $ 59.34 $ 41.24 The Company estimated its future stock price volatility considering both its observed option-implied volatilities and its historical volatility calculations. Management believes this is the best estimate of the expected volatility over the expected life of its stock options and stock purchase rights. The estimated life for the stock options was based on an analysis of historical exercise activity. The risk-free interest rate is based on the rate for a U.S. government security with the same estimated life at the time of the option grant and the stock purchase rights. The estimated forfeiture rate applied is based on historical forfeiture rates. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option pricing model. The estimated forfeiture rate applied is based on historical forfeiture rates. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option pricing model. In fiscal 2023, 2022 and 2021, the Company granted performance-based restricted stock unit awards to certain employees, including the Chair of the Board and Chief Executive Officer and other senior executives. The performance-based restricted stock unit awards are subject to vesting based on a market-based condition and a service-based condition. At the end of the three-year service period, based on the Company's share price performance, these performance-based restricted stock units will vest in a percentage of the target number of shares between 0 and 200 percent, depending on the extent the performance condition is achieved. Stock option activity for fiscal 2023 was as follows: Options Outstanding Shares Outstanding Weighted- Aggregate Balance as of January 31, 2022 66 21 $ 156.34 Increase in shares authorized: 2013 Equity Incentive Plan 44 Options granted under all plans (8) 8 205.90 Restricted stock activity (32) Exercised 0 (3) 97.47 Plan shares expired or canceled 3 (3) 188.04 Balance as of January 31, 2023 73 23 $ 175.23 $ 2,982 Vested or expected to vest 23 $ 173.38 $ 2,852 Exercisable as of January 31, 2023 12 $ 149.40 $ 1,808 The total intrinsic value of the options exercised during fiscal 2023, 2022 and 2021, was $0.2 billion, $1.2 billion, and $1.2 billion, respectively. The intrinsic value of options exercised during each year is calculated as the difference between the market value of the stock at the time of exercise and the exercise price of the stock option. The weighted-average remaining contractual life of vested and expected to vest options is approximately 4.37 years. As of January 31, 2023, options to purchase 12 million shares were vested at a weighted-average exercise price of $149.40 per share and had a weighted-average remaining contractual life of approximately 3.33 years. The total intrinsic value of these vested options based on the market value of the stock as of January 31, 2023 was approximately $1.8 billion. Options Outstanding Options Exercisable Range of Exercise Number Weighted- Weighted- Number of Weighted- $0.76 to $118.04 4 2.5 $ 82.60 4 $ 84.42 $120.75 to $151.25 1 4.4 140.34 1 138.14 $154.14 4 4.0 154.14 2 154.14 $155.20 to $171.43 3 3.7 162.03 3 161.25 $176.98 to $215.17 4 4.9 211.42 2 213.44 $218.21 to $296.84 7 5.8 224.52 1 239.94 23 4.5 $ 175.23 13 $ 149.40 Restricted stock activity for fiscal 2023 was as follows: Restricted Stock Outstanding Outstanding Weighted-Average Grant Date Fair Value Aggregate Balance as of January 31, 2022 27 $ 202.85 Granted - restricted stock units and awards 18 201.34 Granted - performance-based stock units 1 203.28 Canceled (5) 203.07 Vested and converted to shares (12) 196.21 Balance as of January 31, 2023 29 $ 204.62 $ 4,924 Expected to vest 26 $ 4,302 The restricted stock, which upon vesting entitles the holder to one share of common stock for each share of restricted stock, has an exercise price of $0.001 per share, which is equal to the par value of the Company’s common stock, and generally vest over four years. The total fair value of shares vested during fiscal 2023 and 2022 was $2.1 billion and $3.2 billion, respectively. The aggregate expected stock-based compensation expense remaining to be recognized as of January 31, 2023 was as follows (in millions): Fiscal Period: Fiscal 2024 $ 2,672 Fiscal 2025 1,849 Fiscal 2026 1,156 Fiscal 2027 207 Total stock-based compensation expense $ 5,884 The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of January 31, 2023 and assumes no forfeiture activity. The aggregate expected stock-based expense remaining will be recognized over a weighted-average period of approximately two years. Common Stock The following number of shares of common stock were reserved and available for future issuance at January 31, 2023 (in millions): Options outstanding 23 Restricted stock awards and units and performance-based stock units outstanding 29 Stock available for future grant or issuance: 2013 Equity Incentive Plan 72 2014 Inducement Plan 1 Amended and Restated 2004 Employee Stock Purchase Plan 23 148 Preferred Stock The Company’s board of directors has the authority, without further action by stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series. The Company’s board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing a change in control. As of January 31, 2023 and 2022, no shares of preferred stock were outstanding. Share Repurchase Program In August 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of the Company’s common stock (the “Share Repurchase Program”). In February 2023, the Board of Directors authorized an additional $10.0 billion in repurchases under the Share Repurchase Program for an aggregate total authorized of $20.0 billion. The Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares. Under the Share Repurchase Program, shares of common stock may be repurchased using a variety of methods, including privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as part of accelerated share repurchases and other methods. The timing, manner, price and amount of any repurchases are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The Company accounts for treasury stock under the cost method. During fiscal year ended January 31, 2022, the Company repurchased approximately 28 million shares of its common stock for approximately $4.0 billion at an average price per share of $144.94. All repurchases were made in open market transactions. As of January 31, 2023, the Company was authorized to purchase a remaining $6.0 billion of its common stock under the Share Repurchase Program, which was subsequently increased by an additional $10.0 billion in February 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Domestic $ 398 $ 1,338 $ 2,683 Foreign 262 194 (122) $ 660 $ 1,532 $ 2,561 The provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Current: Federal $ 173 $ 6 $ (12) State 216 (16) 53 Foreign 397 352 238 Total 786 342 279 Deferred: Federal (134) (181) 228 State (203) (57) 66 Foreign 3 (16) (2,084) Total (334) (254) (1,790) Provision for (benefit from) income taxes $ 452 $ 88 $ (1,511) In fiscal 2023, the Company recorded a tax provision of $452 million primarily due to taxes from profitable jurisdictions outside of the United States which includes withholding taxes. In fiscal 2022, the Company recorded a tax provision of $88 million primarily due to taxes from profitable jurisdictions outside of the United states, which was offset by a net U.S. tax benefit primarily due to excess tax benefits from stock-based compensation. In fiscal 2021, the Company changed its international corporate structure, which included the transfer of certain intangible property to Ireland resulting in a net tax benefit of $2.0 billion related to foreign deferred tax assets. The deferred tax assets were recognized as a result of the book and tax basis difference on the intangible property transferred to an Irish subsidiary and were based on the intangible property’s current fair value. The determination of the estimated fair value of the intangible property is complex and subject to judgement due to the use of subjective assumptions in the valuation models used by management. The tax amortization related to the intellectual property transferred will be recognized in future periods and any amortization that is unused in a particular year can be carried forward indefinitely under Irish tax laws. The deferred tax asset and the tax benefit were measured based on the currently enacted Irish tax rate. The Company believes that it is more likely than not that the deferred tax assets will be realized in Ireland. A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions): Fiscal Year Ended January 31, 2023 2022 2021 U.S. federal taxes at statutory rate $ 139 $ 322 $ 538 State, net of the federal benefit 29 (29) 90 Effects of non-U.S. operations (1) 287 199 (1,817) Tax credits (239) (263) (125) Non-deductible expenses 94 83 45 Foreign-derived intangible income deduction (55) 0 0 (Windfall)/shortfall related to share-based compensation 31 (323) (289) Effect of U.S. tax law change 0 0 23 Change in valuation allowance 171 101 15 Other, net (5) (2) 9 Provision for (benefit from) income taxes $ 452 $ 88 $ (1,511) (1) Fiscal 2021 effects of non-U.S. operations included tax benefit from the transfer of certain intangible property in Ireland. Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions): As of January 31, 2023 2022 Deferred tax assets: Losses and deductions carryforward $ 268 $ 682 Deferred stock-based compensation expense 312 244 Tax credits 1,055 1,469 Accrued liabilities 470 300 Intangible assets 1,976 2,009 Lease liabilities 912 862 Unearned revenue 78 116 Capitalized research & development 914 0 Other 86 32 Total deferred tax assets 6,071 5,714 Less valuation allowance (633) (463) Deferred tax assets, net of valuation allowance 5,438 5,251 Deferred tax liabilities: Capitalized costs to obtain revenue contracts (913) (817) Purchased intangible assets (1,500) (1,902) Depreciation and amortization (304) (178) Basis difference on strategic and other investments (250) (337) Lease right-of-use assets (767) (735) Total deferred tax liabilities (3,734) (3,969) Net deferred tax assets (liabilities) $ 1,704 $ 1,282 At January 31, 2023, for federal income tax purposes, the Company had net operating loss carryforwards of approximately $0.2 billion, which expire in fiscal 2024 through 2038 with the exception of post-2017 losses that do not expire, federal research and development tax credits of approximately $1.1 billion, which expire in fiscal 2025 through fiscal 2043, foreign tax credits of approximately $79 million, which expire in fiscal 2029 through fiscal 2033. For California income tax purposes, the Company had net operating loss carryforwards of approximately $1.1 billion which expire beginning in fiscal 2029 through fiscal 2043, California research and development tax credits of approximately $730 million, which do not expire. For other states' income tax purposes, the Company had net operating loss carryforwards of approximately $1.1 billion, which expire beginning in fiscal 2024 through fiscal 2043 and tax credits of approximately $79 million, which expire beginning in fiscal 2024 through fiscal 2033. Utilization of the Company’s net operating loss carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The Company had a valuation allowance of $633 million and $463 million as of January 31, 2023 and January 31, 2022 respectively. The Company regularly assesses the realizability of its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company evaluates and weighs all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. The assessment requires significant judgment and is performed in each of the applicable jurisdictions. The increase in the valuation allowance during fiscal 2023 was primarily due to state tax credits and certain U.S foreign tax credits that are not expected to be realized. At the end of January 31, 2023, the valuation allowance was primarily related to U.S. states’ net operating loss and tax credits, and certain U.S foreign tax credits. The Company will continue to evaluate the need for valuation allowances for its deferred tax assets. 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. 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, based on the 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. A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2023, 2022 and 2021 is as follows (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Beginning of period $ 1,822 $ 1,479 $ 1,433 Tax positions taken in prior period: Gross increases 53 25 77 Gross decreases (45) (27) (40) Tax positions taken in current period: Gross increases 227 358 107 Settlements (40) 0 (87) Lapse of statute of limitations (12) (7) (19) Currency translation effect (30) (6) 8 End of period $ 1,975 $ 1,822 $ 1,479 In fiscal 2023, 2022 and 2021, the Company reported a net increase of approximately $153 million, $343 million, and $46 million, respectively in its unrecognized tax benefits. The increase in unrecognized tax benefits during fiscal 2022 was primarily for acquisition related liabilities. For fiscal 2023, 2022 and 2021, total unrecognized tax benefits in an amount of $1.5 billion, $1.3 billion and $1.3 billion, respectively, if recognized, would have reduced income tax expense and the Company’s effective tax rate. The Company has recognized interest and penalties related to unrecognized tax benefits in the income tax provision of $49 million, $21 million and $25 million in fiscal 2023, 2022 and 2021, respectively. Interest and penalties accrued as of January 31, 2023, 2022 and 2021 were $107 million, $58 million and $37 million, respectively. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, France, Germany and Israel. 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 addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. The Company has operations and taxable presence in multiple jurisdictions in the U.S. and outside of the U.S. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions around the world. The Company currently considers U.S. federal, Japan, Australia, Germany, France, United Kingdom, Ireland and Israel to be major tax jurisdictions. The Company’s U.S. federal tax returns since fiscal 2008 remain open to examination. With some exceptions, tax years prior to fiscal 2017 in jurisdictions outside of U.S. are generally closed. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jan. 31, 2023 | |
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 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): 4 Fiscal Year Ended January 31, 2023 2022 2021 Numerator: Net income $ 208 $ 1,444 $ 4,072 Denominator: Weighted-average shares outstanding for basic earnings per share 992 955 908 Effect of dilutive securities: Employee stock awards 5 19 22 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 997 974 930 The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potentially 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): Fiscal Year Ended January 31, 2023 2022 2021 Employee stock awards 39 4 6 |
Legal Proceedings and Claims
Legal Proceedings and Claims | 12 Months Ended |
Jan. 31, 2023 | |
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 reputation and future 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, including all those described below, is not expected to have a material adverse impact on the Company’s financial statements. However, depending on the nature and timing of any such dispute, payment or other contingency, the 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. Slack Litigation Beginning in September 2019, seven purported class action lawsuits were filed against Slack, its directors, certain of its officers and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with Slack’s registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. All but one of |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023. |
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 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. |
Principles of Consolidation | Principles of Consolidation The 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 which 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 service offerings operate on the Customer 360 Platform and are deployed in a nearly identical manner, 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 January 2023, former co-CEO and Vice Chair of the Company’s Board of Directors, Bret Taylor, resigned his positions from the Company. Prior to his resignation, Mr. Taylor was identified as a co-CODM along with Marc Benioff, CEO and Chair of the Board. Upon Mr. Taylor’s resignation, Mr. Benioff assumed all Mr. Taylor’s responsibilities and, a s of January, 31 2023, is the primary executive 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 |
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. The Company’s investment portfolio consists primarily of investment-grade securities, and per the Company’s policy, limits the amount of credit exposure to any one issuer. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company does not require collateral 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. The Company records the allowance against bad debt expense through the consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the consolidated balance sheets. 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 January 31, 2023 and January 31, 2022. No single customer accounted for five percent or more of total revenue during fiscal 2023, 2022 and 2021. As of January 31, 2023 and January 31, 2022, assets located outside the Americas were 15 percent and 13 percent of total assets, respectively. As of January 31, 2023 and January 31, 2022, assets located in the United States were 83 percent and 86 percent of total assets, respectively. |
Revenue Recognition | Revenue Recognition The Company derives its revenues from two sources: subscription and support revenues and professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term and perpetual licenses and support revenues from the sales of support and updates beyond the basic subscription fees or related to the sales of software licenses. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services. 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. 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. Substantially all of the Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and support revenues also include revenues associated with term and perpetual software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term and perpetual software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually and its 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 price 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. Other revenues consist primarily of training revenues recognized as such 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 performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be 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, software licenses and support and updates services are generally concluded to be 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 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 and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines SSP 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 indicated by the distribution of its observable prices. Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices is highly variable. 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 revenue contracts related to non-cancelable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with on-premises software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. 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 (4) to a lesser extent, 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 is longer than the typical initial contract period, but reflects the estimated 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. |
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 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 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. Expected credit losses on securities are recognized in other expense, net on the 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 within other expense on the consolidated statements of operations. |
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 where 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 or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the consolidated balance sheet. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. 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 consolidated statements 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 consolidated statements of operations. The Company may enter into strategic investments or other investments that are considered variable interest entities (“VIEs”). If the Company is a primary beneficiary of a VIE, it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE investments requires significant assumptions and judgments. VIEs that are not consolidated are |
Fair Value Measurement | Fair Value MeasurementThe Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt securities and privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. 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 derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. 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. The notional amount of foreign currency derivative contracts as of January 31, 2023 and January 31, 2022 was $6.0 billion and $6.1 billion, respectively. Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other expense consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Buildings and building improvements 10 to 40 years Computers, equipment and software 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives. 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. |
Leases | Leases The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. Assets recognized from finance leases (also referred to as ROU assets) are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of 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 an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located. The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement. Lease expenses for minimum lease payments for operating leases, which includes amortization expense of ROU assets, are recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term, and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments are recognized as incurred. On the lease commencement date, the Company also 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 included in property and equipment, net and are amortized over the lease term to operating expense. The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease. |
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 other 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, tax-related valuation allowances and pre-acquisition contingencies 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 consolidated statements 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 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 (losses) on strategic investments in the consolidated statements of operations. |
Restructuring | Restructuring The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Stock-based compensation expense is measured based on grant date at fair value using the Black-Scholes option pricing model for stock options and the grant date closing stock price for restricted stock awards. The Company recognizes stock-based compensation expense 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. The estimated forfeiture rate applied is based on historical forfeiture rates. Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense 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-month purchase period (December 15 and June 15 of each fiscal year), but not increase that election until the next one-year offering period. The ESPP also includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. Stock-based compensation expense related to performance share grants, which are awarded to executive officers and other members of senior management and vest, if at all, based on the Company’s performance over a three-year period relative to the Nasdaq 100. Performance share grants 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. |
Advertising Expenses | Advertising ExpensesAdvertising is expensed as incurred. |
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 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 TranslationThe functional currency of the Company’s major foreign subsidiaries is generally the local currency. 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. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in other income in the consolidated statements of operations for the period. |
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 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 Pronouncement Adopted | New Accounting Pronouncement Adopted in Fiscal 2023 In October 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires contract assets and contract liabilities (i.e., unearned revenue) acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers . Previously, the Company recognized contract assets and contract liabilities at the acquisition date based on fair value estimates, which had resulted in a reduction to unearned revenue on the balance sheet, and therefore, a reduction to revenues that would have otherwise been recorded as an independent entity. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. The Company adopted ASU 2021-08 in the first quarter of fiscal 2023 and the impact of the adoption was not material. |
Reclassifications | Reclassifications A reclassification to the fiscal 2022 consolidated balance sheet was made to conform to the current period presentation of current debt. This reclassification did not impact the Company's key metrics including Total Assets, Total Revenues, Income From Operations, Net Income or Operating Cash Flows. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Buildings and building improvements 10 to 40 years Computers, equipment and software 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Property and equipment, net consisted of the following (in millions): As of January 31, 2023 2022 Land $ 293 $ 293 Buildings and building improvements 489 487 Computers, equipment and software 3,556 2,543 Furniture and fixtures 259 237 Leasehold improvements 1,807 1,656 Property and equipment, gross 6,404 5,216 Less accumulated depreciation and amortization (2,702) (2,401) Property and equipment, net $ 3,702 $ 2,815 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Subscription and support revenues consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Sales $ 6,831 $ 5,989 $ 5,191 Service 7,369 6,474 5,377 Platform and Other 5,967 4,509 3,324 Marketing and Commerce 4,516 3,902 3,133 Data 4,338 3,783 2,951 $ 29,021 $ 24,657 $ 19,976 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Americas $ 21,250 $ 17,983 $ 14,736 Europe 7,163 6,016 4,501 Asia Pacific 2,939 2,493 2,015 $ 31,352 $ 26,492 $ 21,252 |
Unearned Revenue | The change in unearned revenue was as follows (in millions): Fiscal Year Ended January 31, 2023 2022 Unearned revenue, beginning of period $ 15,628 $ 12,607 Billings and other (1) 33,034 29,011 Contribution from contract asset 62 110 Revenue recognized over time (29,595) (24,841) Revenue recognized at a point in time (1,757) (1,651) Unearned revenue from business combinations 4 392 Unearned revenue, end of period $ 17,376 $ 15,628 (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 January 31, 2023 $ 24.6 $ 24.0 $ 48.6 As of January 31, 2022 22.0 21.7 43.7 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At January 31, 2023, marketable securities consisted of the following (in millions): Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 3,442 $ 4 $ (92) $ 3,354 U.S. treasury securities 381 0 (11) 370 Mortgage-backed obligations 190 0 (12) 178 Asset-backed securities 1,004 1 (20) 985 Municipal securities 175 0 (6) 169 Commercial paper 278 0 0 278 Covered bonds 105 0 (4) 101 Other 59 0 (2) 57 Total marketable securities $ 5,634 $ 5 $ (147) $ 5,492 At January 31, 2022, marketable securities consisted of the following (in millions): Amortized Unrealized Unrealized Fair Value Corporate notes and obligations $ 3,153 $ 2 $ (34) $ 3,121 U.S. treasury securities 205 0 (3) 202 Mortgage-backed obligations 229 0 (4) 225 Asset-backed securities 1,056 0 (5) 1,051 Municipal securities 225 0 (2) 223 Commercial paper 27 0 0 27 Covered bonds 212 0 (2) 210 Other 14 0 0 14 Total marketable securities $ 5,121 $ 2 $ (50) $ 5,073 |
Schedule of Short-Term and Long-Term Marketable Securities | The contractual maturities of the investments classified as marketable securities were as follows (in millions): As of January 31, 2023 January 31, 2022 Due within 1 year $ 2,380 $ 2,161 Due in 1 year through 5 years 3,104 2,899 Due in 5 years through 10 years 8 13 $ 5,492 $ 5,073 |
Schedules of Strategic Investments | Strategic investments by form and measurement category as of January 31, 2023 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 48 $ 4,479 $ 76 $ 4,603 Debt securities and other investments 0 0 69 69 Balance as of January 31, 2023 $ 48 $ 4,479 $ 145 $ 4,672 Strategic investments by form and measurement category as of January 31, 2022 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 370 $ 4,204 $ 122 $ 4,696 Debt securities and other investments 0 0 88 88 Balance as of January 31, 2022 $ 370 $ 4,204 $ 210 $ 4,784 The components of gains and losses on strategic investments were as follows (in millions): 4 Fiscal Year Ended January 31, 2023 2022 2021 Unrealized gains (losses) recognized on publicly traded equity securities, net $ 1 $ (241) $ 1,743 Unrealized gains recognized on privately held equity securities, net 180 1,210 184 Impairments on privately held equity and debt securities (491) (51) (124) Unrealized gains (losses), net (310) 918 1,803 Realized gains on sales of securities, net 71 293 367 Gains (losses) on strategic investments, net $ (239) $ 1,211 $ 2,170 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s assets and liabilities that were measured at fair value as of January 31, 2023 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Fair Value Cash equivalents (1): Time deposits $ 0 $ 1,877 $ 0 $ 1,877 Money market mutual funds 1,795 0 0 1,795 Cash equivalent securities 0 794 0 794 Marketable securities: Corporate notes and obligations 0 3,354 0 3,354 U.S. treasury securities 0 370 0 370 Mortgage-backed obligations 0 178 0 178 Asset-backed securities 0 985 0 985 Municipal securities 0 169 0 169 Commercial paper 0 278 0 278 Covered bonds 0 101 0 101 Other 0 57 0 57 Strategic investments: Equity securities 48 0 0 48 Total assets $ 1,843 $ 8,163 $ 0 $ 10,006 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.6 billion of cash, as of January 31, 2023. The following table presents information about the Company’s assets and liabilities that were measured at fair value as of January 31, 2022 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Significant Other Significant Fair Value Cash equivalents (1): Time deposits $ 0 $ 1,171 $ 0 $ 1,171 Money market mutual funds 1,426 0 0 1,426 Cash equivalent securities 0 106 0 106 Marketable securities: Corporate notes and obligations 0 3,121 0 3,121 U.S. treasury securities 0 202 0 202 Mortgage-backed obligations 0 225 0 225 Asset-backed securities 0 1,051 0 1,051 Municipal securities 0 223 0 223 Commercial paper 0 27 0 27 Covered bonds 0 210 0 210 Other 0 14 0 14 Strategic investments: Equity securities 370 0 0 370 Total assets $ 1,796 $ 6,350 $ 0 $ 8,146 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets in addition to $2.8 billion of cash, as of January 31, 2022. |
Property and Equipment, Net a_2
Property and Equipment, Net and Other Balance Sheet Accounts (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Buildings and building improvements 10 to 40 years Computers, equipment and software 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Property and equipment, net consisted of the following (in millions): As of January 31, 2023 2022 Land $ 293 $ 293 Buildings and building improvements 489 487 Computers, equipment and software 3,556 2,543 Furniture and fixtures 259 237 Leasehold improvements 1,807 1,656 Property and equipment, gross 6,404 5,216 Less accumulated depreciation and amortization (2,702) (2,401) Property and equipment, net $ 3,702 $ 2,815 |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows (in millions): Fiscal Year Ended January 31, 2023 2022 Operating lease cost $ 986 $ 1,080 Finance lease cost: Amortization of right-of-use assets $ 198 $ 125 Interest on lease liabilities 10 5 Total finance lease cost $ 208 $ 130 Supplemental cash flow information related to operating and finance leases was as follows (in millions): Fiscal Year Ended January 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 769 $ 873 Operating cash outflows for finance leases 10 5 Financing cash outflows for finance leases 180 74 Right-of-use assets obtained in exchange for lease obligations: Operating leases 915 364 |
Balance Sheet and Other Information Related to Leases | Supplemental balance sheet information related to operating and finance leases was as follows (in millions): As of January 31, 2023 2022 Operating leases: Operating lease right-of-use assets $ 2,890 $ 2,880 Operating lease liabilities, current $ 590 $ 686 Noncurrent operating lease liabilities 2,897 2,703 Total operating lease liabilities $ 3,487 $ 3,389 Finance leases: Computers, equipment and software $ 1,053 $ 928 Accumulated depreciation (264) (528) Property and equipment, net $ 789 $ 400 Accrued expenses and other liabilities $ 257 $ 114 Other noncurrent liabilities 534 271 Total finance lease liabilities $ 791 $ 385 Other information related to leases was as follows: As of January 31, 2023 2022 Weighted average remaining lease term Operating leases 7 years 7 years Finance leases 3 years 3 years Weighted average discount rate Operating leases 2.6 % 2.1 % Finance leases 2.1 % 1.9 % |
Maturities of Operating Lease Liabilities | As of January 31, 2023, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Fiscal 2024 $ 663 $ 270 Fiscal 2025 524 265 Fiscal 2026 536 199 Fiscal 2027 486 85 Fiscal 2028 437 0 Thereafter 1,239 0 Total minimum lease payments 3,885 819 Less: Imputed interest (398) (28) Total $ 3,487 $ 791 |
Maturities of Finance Lease Liabilities | As of January 31, 2023, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions): Operating Leases Finance Leases Fiscal Period: Fiscal 2024 $ 663 $ 270 Fiscal 2025 524 265 Fiscal 2026 536 199 Fiscal 2027 486 85 Fiscal 2028 437 0 Thereafter 1,239 0 Total minimum lease payments 3,885 819 Less: Imputed interest (398) (28) Total $ 3,487 $ 791 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Transferred | The acquisition date fair value of the consideration transferred for Slack was approximately $27.1 billion, which consisted of the following (in millions): Fair Value Cash $ 15,799 Common stock issued 11,064 Fair value of stock options, restricted stock units and restricted stock awards assumed 205 Total $ 27,068 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 1,508 Accounts receivable 98 Acquired customer contract asset 70 Operating lease right-of-use assets 200 Other assets 409 Goodwill 21,410 Intangible assets 6,350 Accounts payable, accrued expenses and other liabilities (478) Unearned revenue (382) Slack Convertible Notes (see Note 9) (1,339) Operating lease liabilities (303) Deferred tax liability (475) Net assets acquired $ 27,068 |
Intangible Assets Acquired | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 2,360 5 years Customer relationships 3,690 8 years Other purchased intangible assets 300 6 years Total intangible assets subject to amortization $ 6,350 |
Intangible Assets Acquired Th_2
Intangible Assets Acquired Through Business Combinations and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired From Business Combinations | Intangible assets acquired through business combinations were as follows (in millions): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted January 31, 2022 Additions and retirements, net (1) January 31, 2023 January 31, 2022 Expense and retirements, net January 31, 2023 January 31, 2022 January 31, 2023 January 31, 2023 Acquired developed technology $ 5,633 $ (789) $ 4,844 $ (2,263) $ (208) $ (2,471) $ 3,370 $ 2,373 3.8 Customer relationships 6,995 (304) 6,691 (1,662) (500) (2,162) 5,333 4,529 6.7 Other (2) 345 (42) 303 (70) (10) (80) 275 223 5.5 Total $ 12,973 $ (1,135) $ 11,838 $ (3,995) $ (718) $ (4,713) $ 8,978 $ 7,125 5.7 (1) The Company retired $1.2 billion of fully depreciated intangible assets during fiscal 2023, of which $826 million were included in acquired developed technology and $366 million were included in customer relationships. (2) 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 January 31, 2023 was as follows (in millions): Fiscal Period: Fiscal 2024 $ 1,869 Fiscal 2025 1,597 Fiscal 2026 1,355 Fiscal 2027 990 Fiscal 2028 616 Thereafter 698 Total amortization expense $ 7,125 |
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 at January 31, 2021 $ 26,318 Slack 21,161 Acumen 337 Other acquisitions and adjustments (1) 121 Balance as of January 31, 2022 $ 47,937 Traction on Demand 293 Other acquisitions and adjustments (1) 338 Balance as of January 31, 2023 $ 48,568 (1) Adjustments include measurement period adjustments for business combinations from the prior year, including approximately $249 million in fiscal 2023 related to the Company’s July 2021 acquisition of Slack Technologies, Inc. (“Slack”) and the effect of foreign currency translation. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Carrying Value of Borrowings | The carrying values of the Company's borrowings were as follows (in millions): Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of January 31, 2023 January 31, 2023 January 31, 2022 2023 Senior Notes April 2018 April 2023 3.25 % $ 1,000 $ 1,000 $ 998 Loan assumed on 50 Fremont February 2015 June 2023 3.75 182 182 186 2024 Senior Notes July 2021 July 2024 0.625 1,000 998 997 2028 Senior Notes April 2018 April 2028 3.70 1,500 1,493 1,492 2028 Senior Sustainability Notes July 2021 July 2028 1.50 1,000 992 990 2031 Senior Notes July 2021 July 2031 1.95 1,500 1,489 1,488 2041 Senior Notes July 2021 July 2041 2.70 1,250 1,235 1,234 2051 Senior Notes July 2021 July 2051 2.90 2,000 1,977 1,976 2061 Senior Notes July 2021 July 2061 3.05 1,250 1,235 1,235 Total carrying value of debt $ 10,682 10,601 10,596 Less current portion of debt (1,182) (4) Total noncurrent debt $ 9,419 $ 10,592 |
Schedule of Future Principal Payments | The contractual future principal payments for all borrowings as of January 31, 2023 were as follows (in millions): Fiscal Period: Fiscal 2024 $ 1,182 Fiscal 2025 1,000 Fiscal 2026 0 Fiscal 2027 0 Fiscal 2028 0 Thereafter 8,500 Total principal outstanding $ 10,682 |
Schedule of Interest Expense on Debt | The following table sets forth total interest expense recognized related to debt (in millions), which is included within other expense in the Company’s consolidated statements of operations: Fiscal Year Ended January 31, 2023 2022 2021 Contractual interest expense $ 277 $ 198 $ 96 Amortization of debt discounts and debt issuance costs 10 18 14 $ 287 $ 216 $ 110 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activities | The following table summarizes the activities related to the restructuring for fiscal 2023 (in millions): Workforce reduction Real estate exits and office space reductions Total Charges $ 683 $ 145 $ 828 Payments (48) (25) (73) Non-cash items (28) (120) (148) Liability as of January 31, 2023 $ 607 $ 0 $ 607 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share: Fiscal Year Ended January 31, 2023 2022 2021 Volatility 34 - 40 % 34 - 37 % 28 - 37 % Estimated life 3.5 years 3.5 years 3.5 years Risk-free interest rate 1.7 - 4.4 % 0.4 - 1.7 % 0.2 - 1.4 % Weighted-average fair value per share of grants $ 62.10 $ 59.34 $ 41.24 |
Share-based Compensation, Stock Options, Activity | Stock option activity for fiscal 2023 was as follows: Options Outstanding Shares Outstanding Weighted- Aggregate Balance as of January 31, 2022 66 21 $ 156.34 Increase in shares authorized: 2013 Equity Incentive Plan 44 Options granted under all plans (8) 8 205.90 Restricted stock activity (32) Exercised 0 (3) 97.47 Plan shares expired or canceled 3 (3) 188.04 Balance as of January 31, 2023 73 23 $ 175.23 $ 2,982 Vested or expected to vest 23 $ 173.38 $ 2,852 Exercisable as of January 31, 2023 12 $ 149.40 $ 1,808 |
Schedule of Stock Options Outstanding | As of January 31, 2023, options to purchase 12 million shares were vested at a weighted-average exercise price of $149.40 per share and had a weighted-average remaining contractual life of approximately 3.33 years. The total intrinsic value of these vested options based on the market value of the stock as of January 31, 2023 was approximately $1.8 billion. Options Outstanding Options Exercisable Range of Exercise Number Weighted- Weighted- Number of Weighted- $0.76 to $118.04 4 2.5 $ 82.60 4 $ 84.42 $120.75 to $151.25 1 4.4 140.34 1 138.14 $154.14 4 4.0 154.14 2 154.14 $155.20 to $171.43 3 3.7 162.03 3 161.25 $176.98 to $215.17 4 4.9 211.42 2 213.44 $218.21 to $296.84 7 5.8 224.52 1 239.94 23 4.5 $ 175.23 13 $ 149.40 |
Schedule of Restricted Stock Activity | Restricted stock activity for fiscal 2023 was as follows: Restricted Stock Outstanding Outstanding Weighted-Average Grant Date Fair Value Aggregate Balance as of January 31, 2022 27 $ 202.85 Granted - restricted stock units and awards 18 201.34 Granted - performance-based stock units 1 203.28 Canceled (5) 203.07 Vested and converted to shares (12) 196.21 Balance as of January 31, 2023 29 $ 204.62 $ 4,924 Expected to vest 26 $ 4,302 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The aggregate expected stock-based compensation expense remaining to be recognized as of January 31, 2023 was as follows (in millions): Fiscal Period: Fiscal 2024 $ 2,672 Fiscal 2025 1,849 Fiscal 2026 1,156 Fiscal 2027 207 Total stock-based compensation expense $ 5,884 |
Schedule Of Shares Of Common Stock Available For Future Issuance Under Stock Option Plans | The following number of shares of common stock were reserved and available for future issuance at January 31, 2023 (in millions): Options outstanding 23 Restricted stock awards and units and performance-based stock units outstanding 29 Stock available for future grant or issuance: 2013 Equity Incentive Plan 72 2014 Inducement Plan 1 Amended and Restated 2004 Employee Stock Purchase Plan 23 148 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income Before Provision For (Benefit From) Income Taxes | The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Domestic $ 398 $ 1,338 $ 2,683 Foreign 262 194 (122) $ 660 $ 1,532 $ 2,561 |
Schedule of Income Taxes Provision (Benefit) | The provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Current: Federal $ 173 $ 6 $ (12) State 216 (16) 53 Foreign 397 352 238 Total 786 342 279 Deferred: Federal (134) (181) 228 State (203) (57) 66 Foreign 3 (16) (2,084) Total (334) (254) (1,790) Provision for (benefit from) income taxes $ 452 $ 88 $ (1,511) |
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions): Fiscal Year Ended January 31, 2023 2022 2021 U.S. federal taxes at statutory rate $ 139 $ 322 $ 538 State, net of the federal benefit 29 (29) 90 Effects of non-U.S. operations (1) 287 199 (1,817) Tax credits (239) (263) (125) Non-deductible expenses 94 83 45 Foreign-derived intangible income deduction (55) 0 0 (Windfall)/shortfall related to share-based compensation 31 (323) (289) Effect of U.S. tax law change 0 0 23 Change in valuation allowance 171 101 15 Other, net (5) (2) 9 Provision for (benefit from) income taxes $ 452 $ 88 $ (1,511) |
Significant Components of Deferred Tax Assets And Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions): As of January 31, 2023 2022 Deferred tax assets: Losses and deductions carryforward $ 268 $ 682 Deferred stock-based compensation expense 312 244 Tax credits 1,055 1,469 Accrued liabilities 470 300 Intangible assets 1,976 2,009 Lease liabilities 912 862 Unearned revenue 78 116 Capitalized research & development 914 0 Other 86 32 Total deferred tax assets 6,071 5,714 Less valuation allowance (633) (463) Deferred tax assets, net of valuation allowance 5,438 5,251 Deferred tax liabilities: Capitalized costs to obtain revenue contracts (913) (817) Purchased intangible assets (1,500) (1,902) Depreciation and amortization (304) (178) Basis difference on strategic and other investments (250) (337) Lease right-of-use assets (767) (735) Total deferred tax liabilities (3,734) (3,969) Net deferred tax assets (liabilities) $ 1,704 $ 1,282 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2023, 2022 and 2021 is as follows (in millions): Fiscal Year Ended January 31, 2023 2022 2021 Beginning of period $ 1,822 $ 1,479 $ 1,433 Tax positions taken in prior period: Gross increases 53 25 77 Gross decreases (45) (27) (40) Tax positions taken in current period: Gross increases 227 358 107 Settlements (40) 0 (87) Lapse of statute of limitations (12) (7) (19) Currency translation effect (30) (6) 8 End of period $ 1,975 $ 1,822 $ 1,479 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominator Used in Calculation of Basic And Diluted Earnings (Loss) Per Share | A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions): 4 Fiscal Year Ended January 31, 2023 2022 2021 Numerator: Net income $ 208 $ 1,444 $ 4,072 Denominator: Weighted-average shares outstanding for basic earnings per share 992 955 908 Effect of dilutive securities: Employee stock awards 5 19 22 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 997 974 930 |
Shares Excluded From Diluted Earnings (Loss) 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): Fiscal Year Ended January 31, 2023 2022 2021 Employee stock awards 39 4 6 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||||
Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2023 USD ($) segment | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Capitalized contract cost, amortization term (in years) | 4 years | 4 years | |||
Capitalized contract cost, renewals and success fees, amortization term (in years) | 2 years | ||||
Impairments of costs to obtain revenue contracts | $ 0 | $ 0 | |||
Offering period | 12 months | ||||
Discount for ESPP | 15% | ||||
Purchase period | 6 months | ||||
Advertising expense | $ 1,000,000,000 | 1,000,000,000 | $ 800,000,000 | ||
Stock options and restricted stock | |||||
Concentration Risk [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Performance shares | |||||
Concentration Risk [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Performance period | 3 years | ||||
Restricted stock | |||||
Concentration Risk [Line Items] | |||||
Award requisite service period | 4 years | ||||
Foreign currency derivative contracts | Derivatives not designated as hedging instruments | |||||
Concentration Risk [Line Items] | |||||
Notional amount of foreign currency derivative contracts | $ 6,000,000,000 | $ 6,100,000,000 | $ 6,000,000,000 | $ 6,100,000,000 | |
Assets | Geographic concentration risk | Non-US | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15% | 13% | |||
Assets | Geographic concentration risk | Untied States | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 83% | 86% | |||
Strategic investments | Investment concentration risk | Two Privately Held Investments | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 16% | 21% |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2023 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Minimum | Buildings and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Minimum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Maximum | Buildings and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 40 years |
Maximum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 31,352 | $ 26,492 | $ 21,252 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 21,250 | 17,983 | 14,736 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7,163 | 6,016 | 4,501 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 2,939 | $ 2,493 | $ 2,015 |
Untied States | Geographic concentration risk | Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 93% | 94% | 95% |
Subscription and support | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 29,021 | $ 24,657 | $ 19,976 |
Sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 6,831 | 5,989 | 5,191 |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7,369 | 6,474 | 5,377 |
Platform and Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 5,967 | 4,509 | 3,324 |
Marketing and Commerce | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,516 | 3,902 | 3,133 |
Data | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 4,338 | $ 3,783 | $ 2,951 |
Revenues - Contract Balances an
Revenues - Contract Balances and Unearned Revenue (Details) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Customer contract assets | $ 648 | $ 587 |
Percent of revenue recognized | 0.49 | |
Unearned Revenue [Roll Forward] | ||
Unearned revenue, beginning of period | 15,628 | $ 12,607 |
Billings and other | 33,034 | 29,011 |
Contribution from contract asset | 62 | 110 |
Unearned revenue from business combinations | 4 | 392 |
Unearned revenue, end of period | 17,376 | 15,628 |
Revenue recognized over time | ||
Unearned Revenue [Roll Forward] | ||
Revenue recognized | (29,595) | (24,841) |
Revenue recognized at a point in time | ||
Unearned Revenue [Roll Forward] | ||
Revenue recognized | $ (1,757) | $ (1,651) |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) - USD ($) $ in Billions | Jan. 31, 2023 | Jan. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Current | $ 24.6 | $ 22 |
Noncurrent | 24 | 21.7 |
Total | $ 48.6 | $ 43.7 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | ||
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, Start Date [Axis]: 2023-02-01 | ||
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 (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 5,634 | $ 5,121 |
Unrealized Gains | 5 | 2 |
Unrealized Losses | (147) | (50) |
Fair Value | 5,492 | 5,073 |
Corporate notes and obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,442 | 3,153 |
Unrealized Gains | 4 | 2 |
Unrealized Losses | (92) | (34) |
Fair Value | 3,354 | 3,121 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 381 | 205 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (11) | (3) |
Fair Value | 370 | 202 |
Mortgage-backed obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 190 | 229 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (12) | (4) |
Fair Value | 178 | 225 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,004 | 1,056 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (20) | (5) |
Fair Value | 985 | 1,051 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 175 | 225 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (6) | (2) |
Fair Value | 169 | 223 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 278 | 27 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 278 | 27 |
Covered bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 105 | 212 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (4) | (2) |
Fair Value | 101 | 210 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59 | 14 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | 0 |
Fair Value | $ 57 | $ 14 |
Investments - Schedule of Short
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 2,380 | $ 2,161 |
Due in 1 year through 5 years | 3,104 | 2,899 |
Due in 5 years through 10 years | 8 | 13 |
Fair value of marketable securities | $ 5,492 | $ 5,073 |
Investments - Schedule of Strat
Investments - Schedule of Strategic Investments (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Investment Holdings [Line Items] | ||
Strategic investments | $ 4,672 | $ 4,784 |
Variable Interest Entity, Not Primary Beneficiary | ||
Investment Holdings [Line Items] | ||
Strategic investments | 354 | 467 |
Equity securities | ||
Investment Holdings [Line Items] | ||
Strategic investments | 4,603 | 4,696 |
Debt securities and other investments | ||
Investment Holdings [Line Items] | ||
Strategic investments | 69 | 88 |
Fair Value | ||
Investment Holdings [Line Items] | ||
Strategic investments | 48 | 370 |
Fair Value | Equity securities | ||
Investment Holdings [Line Items] | ||
Strategic investments | 48 | 370 |
Fair Value | Debt securities and other investments | ||
Investment Holdings [Line Items] | ||
Strategic investments | 0 | 0 |
Measurement Alternative | ||
Investment Holdings [Line Items] | ||
Strategic investments | 4,479 | 4,204 |
Measurement Alternative | Equity securities | ||
Investment Holdings [Line Items] | ||
Strategic investments | 4,479 | 4,204 |
Measurement Alternative | Debt securities and other investments | ||
Investment Holdings [Line Items] | ||
Strategic investments | 0 | 0 |
Other | ||
Investment Holdings [Line Items] | ||
Strategic investments | 145 | 210 |
Other | Equity securities | ||
Investment Holdings [Line Items] | ||
Strategic investments | 76 | 122 |
Other | Debt securities and other investments | ||
Investment Holdings [Line Items] | ||
Strategic investments | $ 69 | $ 88 |
Investments - Components of Gai
Investments - Components of Gains and Losses on Strategic Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Investment Holdings [Line Items] | |||
Unrealized gains (losses) recognized, net | $ (310) | $ 918 | $ 1,803 |
Realized gains on sales of securities, net | 71 | 293 | 367 |
Gains (losses) on strategic investments, net | (239) | 1,211 | 2,170 |
Cumulative net gain on equity securities | 87 | 1,600 | |
Publicly traded equity securities | |||
Investment Holdings [Line Items] | |||
Unrealized gains (losses) recognized, net | 1 | (241) | 1,743 |
Privately held equity securities | |||
Investment Holdings [Line Items] | |||
Unrealized gains (losses) recognized, net | 180 | 1,210 | 184 |
Upward adjustments | 220 | 1,200 | |
Downward adjustments | 466 | 61 | |
Privately held equity and debt securities | |||
Investment Holdings [Line Items] | |||
Impairments on privately held equity and debt securities | $ (491) | $ (51) | $ (124) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 5,492 | $ 5,073 |
Equity securities | 48 | 370 |
Total assets | 10,006 | 8,146 |
Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,354 | 3,121 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 370 | 202 |
Mortgage-backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 178 | 225 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 985 | 1,051 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 169 | 223 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 278 | 27 |
Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 101 | 210 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 57 | 14 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 48 | 370 |
Total assets | 1,843 | 1,796 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Total assets | 8,163 | 6,350 |
Significant Other Observable Inputs (Level 2) | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,354 | 3,121 |
Significant Other Observable Inputs (Level 2) | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 370 | 202 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 178 | 225 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 985 | 1,051 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 169 | 223 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 278 | 27 |
Significant Other Observable Inputs (Level 2) | Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 101 | 210 |
Significant Other Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 57 | 14 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair value, non-recurring | Privately held equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 4,600 | 4,400 |
Time deposits | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,877 | 1,171 |
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 | 1,877 | 1,171 |
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 | 1,795 | 1,426 |
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 | 1,795 | 1,426 |
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 |
Cash equivalent securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,600 | 2,800 |
Cash equivalent securities | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 794 | 106 |
Cash equivalent securities | 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 |
Cash equivalent securities | 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 | 794 | 106 |
Cash equivalent securities | 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 |
Property and Equipment, Net a_3
Property and Equipment, Net and Other Balance Sheet Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 6,404 | $ 5,216 | |
Less accumulated depreciation and amortization | (2,702) | (2,401) | |
Property and equipment, net | 3,702 | 2,815 | |
Depreciation amortization expense | 903 | 678 | $ 579 |
Accrued compensation | 2,600 | 2,400 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 293 | 293 | |
Buildings and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 489 | 487 | |
Computers, equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,556 | 2,543 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 259 | 237 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,807 | $ 1,656 |
Leases and Other Commitments -
Leases and Other Commitments - Narrative (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Other Commitments [Line Items] | |
Operating lease extension term (some leases) | 5 years |
Operating lease termination option | 1 year |
Sublease income, next five years | $ 237 |
Sublease income, thereafter | 42 |
Operating leases, not yet commenced | 400 |
Operating lease commitment balance, including leases not yet commenced | 5,100 |
Letter of credit | |
Other Commitments [Line Items] | |
Value of outstanding letters of credit | 126 |
Facilities Space | |
Other Commitments [Line Items] | |
Operating lease commitment balance, including leases not yet commenced | $ 4,200 |
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 | 17 years |
Operating lease term, not yet commenced | 17 years |
Leases and Other Commitments _2
Leases and Other Commitments - Components of Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 986 | $ 1,080 |
Finance lease cost: | ||
Amortization of right-of-use assets | 198 | 125 |
Interest on lease liabilities | 10 | 5 |
Total finance lease cost | 208 | 130 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows for operating leases | 769 | 873 |
Operating cash outflows for finance leases | 10 | 5 |
Financing cash outflows for finance leases | 180 | 74 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 915 | $ 364 |
Leases and Other Commitments _3
Leases and Other Commitments - Balance Sheet and Other Information Related to Leases (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Operating leases: | ||
Operating lease right-of-use assets | $ 2,890 | $ 2,880 |
Operating lease liabilities, current | 590 | 686 |
Noncurrent operating lease liabilities | 2,897 | 2,703 |
Total operating lease liabilities | 3,487 | 3,389 |
Finance leases: | ||
Accumulated depreciation | $ (264) | $ (528) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Property and equipment, net | $ 789 | $ 400 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Other Accrued Liabilities, Current | Accounts Payable and Other Accrued Liabilities, Current |
Accrued expenses and other liabilities | $ 257 | $ 114 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other noncurrent liabilities | Other noncurrent liabilities |
Other noncurrent liabilities | $ 534 | $ 271 |
Total finance lease liabilities | $ 791 | $ 385 |
Weighted average remaining lease term | ||
Operating leases (in years) | 7 years | 7 years |
Finance leases (in years) | 3 years | 3 years |
Weighted average discount rate | ||
Operating leases | 2.60% | 2.10% |
Finance leases | 2.10% | 1.90% |
Computers, equipment and software | ||
Finance leases: | ||
Computers, equipment and software | $ 1,053 | $ 928 |
Leases and Other Commitments _4
Leases and Other Commitments - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Operating Leases | ||
Fiscal 2024 | $ 663 | |
Fiscal 2025 | 524 | |
Fiscal 2026 | 536 | |
Fiscal 2027 | 486 | |
Fiscal 2028 | 437 | |
Thereafter | 1,239 | |
Total minimum lease payments | 3,885 | |
Less: Imputed interest | (398) | |
Total | 3,487 | $ 3,389 |
Finance Leases | ||
Fiscal 2024 | 270 | |
Fiscal 2025 | 265 | |
Fiscal 2026 | 199 | |
Fiscal 2027 | 85 | |
Fiscal 2028 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 819 | |
Less: Imputed interest | (28) | |
Total | $ 791 | $ 385 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Jul. 21, 2021 USD ($) | May 31, 2020 USD ($) | Apr. 30, 2022 USD ($) | Feb. 28, 2021 USD ($) | Jun. 30, 2020 USD ($) | Feb. 29, 2020 USD ($) | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 5 years 8 months 12 days | ||||||||
Goodwill | $ 48,568 | $ 47,937 | $ 26,318 | ||||||
Fair value of equity awards assumed | 7 | $ 205 | $ 6 | ||||||
Nonvested award, cost not yet recognized | $ 5,884 | ||||||||
Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 6 years 8 months 12 days | ||||||||
Traction on Demand | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 340 | ||||||||
Cash | 302 | ||||||||
Goodwill | 293 | ||||||||
Traction on Demand | Customer-Related Intangible Assets | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 62 | ||||||||
Weighted Average Remaining Useful Life (Years) | 5 years | ||||||||
Slack | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 27,068 | ||||||||
Cash | 15,799 | ||||||||
Intangible assets | 6,350 | ||||||||
Goodwill | 21,410 | ||||||||
Transaction costs | 54 | ||||||||
Fair value of unvested options and restricted stock awards | 1,700 | ||||||||
Fair value of equity awards assumed | 205 | ||||||||
Nonvested award, cost not yet recognized | 1,500 | ||||||||
Customer relationship intangible assets | $ 6,350 | ||||||||
Slack | Stock Options and Restricted Stock Units | |||||||||
Business Acquisition [Line Items] | |||||||||
Share conversion ratio | 0.1885 | ||||||||
Slack | Restricted stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Share conversion ratio | 0.1804 | ||||||||
Slack | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 8 years | ||||||||
Customer relationship intangible assets | $ 3,690 | ||||||||
Acumen Solutions, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 433 | ||||||||
Goodwill | $ 337 | ||||||||
Acumen Solutions, Inc. | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 8 years | ||||||||
Customer relationship intangible assets | $ 99 | ||||||||
Vlocity | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash | $ 1,200 | ||||||||
Intangible assets | 473 | ||||||||
Goodwill | 1,000 | ||||||||
Fair value of unvested options and restricted stock awards | 139 | ||||||||
Fair value of equity awards assumed | 6 | ||||||||
Consideration transferred, including equity interest in acquiree held prior to combination | 1,400 | ||||||||
Noncontrolling equity investment | $ 167 | 208 | |||||||
Assumed unvested options, allocated to future services | 133 | ||||||||
Remeasurement gain | $ 41 | ||||||||
Vlocity | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 4 years | ||||||||
Vlocity | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Remaining Useful Life (Years) | 8 years | ||||||||
Evergage | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 100 |
Business Combinations - Schedul
Business Combinations - Schedule of Consideration Transferred (Slack) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 21, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Fair value of stock options, restricted stock units and restricted stock awards assumed | $ 7 | $ 205 | $ 6 | |
Slack | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 15,799 | |||
Common stock issued | 11,064 | |||
Fair value of stock options, restricted stock units and restricted stock awards assumed | 205 | |||
Total | $ 27,068 |
Business Combinations - Sched_2
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 21, 2021 | Jan. 31, 2021 |
Business Acquisition [Line Items] | ||||
Acquired customer contract asset | $ 648 | $ 587 | ||
Goodwill | $ 48,568 | $ 47,937 | $ 26,318 | |
Slack | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,508 | |||
Accounts receivable | 98 | |||
Acquired customer contract asset | 70 | |||
Operating lease right-of-use assets | 200 | |||
Other assets | 409 | |||
Goodwill | 21,410 | |||
Intangible assets | 6,350 | |||
Accounts payable, accrued expenses and other liabilities | (478) | |||
Unearned revenue | (382) | |||
Slack Convertible Notes (see Note 9) | (1,339) | |||
Operating lease liabilities | (303) | |||
Deferred tax liability | (475) | |||
Net assets acquired | $ 27,068 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 21, 2021 | Jan. 31, 2023 | |
Business Acquisition [Line Items] | ||
Useful Life | 5 years 8 months 12 days | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 3 years 9 months 18 days | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life | 6 years 8 months 12 days | |
Other purchased intangible assets | ||
Business Acquisition [Line Items] | ||
Useful Life | 5 years 6 months | |
Slack | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 6,350 | |
Slack | Developed technology | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 2,360 | |
Useful Life | 5 years | |
Slack | Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 3,690 | |
Useful Life | 8 years | |
Slack | Other purchased intangible assets | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 300 | |
Useful Life | 6 years |
Intangible Assets Acquired Th_3
Intangible Assets Acquired Through Business Combinations and Goodwill - Intangible Assets Acquired From Business Combinations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 12,973 | ||
Additions and retirements, net | (1,135) | ||
Intangible assets, gross, ending balance | 11,838 | $ 12,973 | |
Accumulated amortization, beginning balance | (3,995) | ||
Expense and retirements, net | (718) | ||
Accumulated amortization, ending balance | (4,713) | (3,995) | |
Intangible assets, net, beginning balance | 8,978 | ||
Intangible assets, net, ending balance | 7,125 | 8,978 | |
Retirement of intangible assets | $ 1,200 | ||
Weighted Average Remaining Useful Life (Years) | 5 years 8 months 12 days | ||
Amortization of intangible assets | $ 2,000 | 1,600 | $ 1,100 |
Customer contract assets | 648 | 587 | |
Developed technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | 5,633 | ||
Additions and retirements, net | (789) | ||
Intangible assets, gross, ending balance | 4,844 | 5,633 | |
Accumulated amortization, beginning balance | (2,263) | ||
Expense and retirements, net | (208) | ||
Accumulated amortization, ending balance | (2,471) | (2,263) | |
Intangible assets, net, beginning balance | 3,370 | ||
Intangible assets, net, ending balance | 2,373 | 3,370 | |
Retirement of intangible assets | $ 826 | ||
Weighted Average Remaining Useful Life (Years) | 3 years 9 months 18 days | ||
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 6,995 | ||
Additions and retirements, net | (304) | ||
Intangible assets, gross, ending balance | 6,691 | 6,995 | |
Accumulated amortization, beginning balance | (1,662) | ||
Expense and retirements, net | (500) | ||
Accumulated amortization, ending balance | (2,162) | (1,662) | |
Intangible assets, net, beginning balance | 5,333 | ||
Intangible assets, net, ending balance | 4,529 | 5,333 | |
Retirement of intangible assets | $ 366 | ||
Weighted Average Remaining Useful Life (Years) | 6 years 8 months 12 days | ||
Other purchased intangible assets | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, gross, beginning balance | $ 345 | ||
Additions and retirements, net | (42) | ||
Intangible assets, gross, ending balance | 303 | 345 | |
Accumulated amortization, beginning balance | (70) | ||
Expense and retirements, net | (10) | ||
Accumulated amortization, ending balance | (80) | (70) | |
Intangible assets, net, beginning balance | 275 | ||
Intangible assets, net, ending balance | $ 223 | $ 275 | |
Weighted Average Remaining Useful Life (Years) | 5 years 6 months |
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 | Jan. 31, 2023 | Jan. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2024 | $ 1,869 | |
Fiscal 2025 | 1,597 | |
Fiscal 2026 | 1,355 | |
Fiscal 2027 | 990 | |
Fiscal 2028 | 616 | |
Thereafter | 698 | |
Total amortization expense | $ 7,125 | $ 8,978 |
Intangible Assets Acquired Th_5
Intangible Assets Acquired Through Business Combinations and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 47,937 | $ 26,318 |
Other acquisitions and adjustments | 338 | 121 |
Goodwill, ending balance | 48,568 | 47,937 |
Traction on Demand | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 293 | |
Slack | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | $ 249 | 21,161 |
Acumen Solutions, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | $ 337 |
Debt - Carrying Value of Borrow
Debt - Carrying Value of Borrowings (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Instrument [Line Items] | ||
Outstanding Principal as of January 31, 2023 | $ 10,682 | |
Total carrying value of debt | 10,601 | $ 10,596 |
Less current portion of debt | (1,182) | (4) |
Total noncurrent debt | $ 9,419 | 10,592 |
Senior Notes | 2023 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 3.25% | |
Outstanding Principal as of January 31, 2023 | $ 1,000 | |
Total carrying value of debt | $ 1,000 | 998 |
Senior Notes | 2024 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 0.625% | |
Outstanding Principal as of January 31, 2023 | $ 1,000 | |
Total carrying value of debt | $ 998 | 997 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 3.70% | |
Outstanding Principal as of January 31, 2023 | $ 1,500 | |
Total carrying value of debt | $ 1,493 | 1,492 |
Senior Notes | 2028 Senior Sustainability Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 1.50% | |
Outstanding Principal as of January 31, 2023 | $ 1,000 | |
Total carrying value of debt | $ 992 | 990 |
Senior Notes | 2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 1.95% | |
Outstanding Principal as of January 31, 2023 | $ 1,500 | |
Total carrying value of debt | $ 1,489 | 1,488 |
Senior Notes | 2041 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 2.70% | |
Outstanding Principal as of January 31, 2023 | $ 1,250 | |
Total carrying value of debt | $ 1,235 | 1,234 |
Senior Notes | 2051 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 2.90% | |
Outstanding Principal as of January 31, 2023 | $ 2,000 | |
Total carrying value of debt | $ 1,977 | 1,976 |
Senior Notes | 2061 Senior Notes | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 3.05% | |
Outstanding Principal as of January 31, 2023 | $ 1,250 | |
Total carrying value of debt | $ 1,235 | 1,235 |
Secured Debt | Loan assumed on 50 Fremont | ||
Debt Instrument [Line Items] | ||
Contractual Interest Rate | 3.75% | |
Outstanding Principal as of January 31, 2023 | $ 182 | |
Total carrying value of debt | $ 182 | $ 186 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 | ||
Outstanding borrowings for line of credit | $ 0 | ||
Closing trading price | |||
Line of Credit Facility [Line Items] | |||
Long-term debt measurement input | 100 | 100 | |
Senior Notes | Significant Other Observable Inputs (Level 2) | |||
Line of Credit Facility [Line Items] | |||
Senior Notes fair value | $ 8,800,000,000 | $ 10,300,000,000 |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2024 | $ 1,182 |
Fiscal 2025 | 1,000 |
Fiscal 2026 | 0 |
Fiscal 2027 | 0 |
Fiscal 2028 | 0 |
Thereafter | 8,500 |
Total principal outstanding | $ 10,682 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense on Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 277 | $ 198 | $ 96 |
Amortization of debt discounts and debt issuance costs | 10 | 18 | 14 |
Debt interest expense | $ 287 | $ 216 | $ 110 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | [1],[2] | $ 828 | $ 0 | $ 0 |
The Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 828 | |||
The Plan | Workforce reduction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 683 | |||
The Plan | Real estate exits and office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 145 | |||
[1]Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 1,035 $ 897 $ 662 Marketing and sales 916 727 459 Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 499 $ 386 $ 241 Research and development 1,136 918 703 Marketing and sales 1,256 1,104 941 General and administrative 368 371 305 Restructuring 20 0 0 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | [1],[2] | $ 828 | $ 0 | $ 0 |
The Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 828 | |||
Payments | (73) | |||
Non-cash items | (148) | |||
Liability as of January 31, 2023 | 607 | |||
The Plan | Workforce reduction | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 683 | |||
Payments | (48) | |||
Non-cash items | (28) | |||
Liability as of January 31, 2023 | 607 | |||
The Plan | Real estate exits and office space reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 145 | |||
Payments | (25) | |||
Non-cash items | (120) | |||
Liability as of January 31, 2023 | $ 0 | |||
[1]Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 1,035 $ 897 $ 662 Marketing and sales 916 727 459 Fiscal Year Ended January 31, 2023 2022 2021 Cost of revenues $ 499 $ 386 $ 241 Research and development 1,136 918 703 Marketing and sales 1,256 1,104 941 General and administrative 368 371 305 Restructuring 20 0 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2023 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Aug. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of the options exercised during the period | $ 200 | $ 1,200 | $ 1,200 | ||
Weighted-average remaining contractual life of vested and expected to vest options (in years) | 4 years 4 months 13 days | ||||
Options vested (in shares) | 12,000,000 | ||||
Weighted average exercise price vested (in dollars per share) | $ 149.40 | ||||
Remaining contractual term (in years) | 3 years 3 months 29 days | ||||
Total intrinsic value of vested options | $ 1,808 | ||||
Weighted-average fair value per share of grants (in dollars per share) | $ 0.001 | ||||
Period for recognition (in years) | 2 years | ||||
Fair value of shares vested in period | $ 2,100 | $ 3,200 | |||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Common stock repurchased | $ 4,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of stock options (in years) | 7 years | ||||
Weighted-average fair value per share of grants (in dollars per share) | $ 62.10 | $ 59.34 | $ 41.24 | ||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Performance shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 200% | ||||
Performance shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0% | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period for recognition (in years) | 4 years | ||||
Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized amount of stock repurchase | $ 10,000 | ||||
Share Repurchase Program | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized amount of stock repurchase | $ 20,000 | ||||
Increased authorized amount of stock repurchase | $ 10,000 | ||||
Share Repurchase Program | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock repurchased (in shares) | 28,000,000 | ||||
Common stock repurchased | $ 4,000 | ||||
Average stock repurchased price (in dollars per share) | $ 144.94 | ||||
Common stock authorized repurchase amount | $ 6,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants (in dollars per share) | $ 0.001 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 34% | 34% | 28% |
Volatility, maximum | 40% | 37% | 37% |
Estimated life (in years) | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Risk-free interest rate, minimum | 1.70% | 0.40% | 0.20% |
Risk-free interest rate, maximum | 4.40% | 1.70% | 1.40% |
Weighted-average fair value per share of grants (in dollars per share) | $ 62.10 | $ 59.34 | $ 41.24 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation, Stock Options, Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) $ / shares shares | |
Shares Available for Grant | |
Beginning balance (in shares) | 66 |
Options granted under all plans (in shares) | 8 |
Plan shares expired or canceled (in shares) | 3 |
Ending balance (in shares) | 73 |
Outstanding Stock Options | |
Beginning balance (in shares) | 21 |
Options granted under all plans (in shares) | 8 |
Exercised (in shares) | (3) |
Ending balance (in shares) | 23 |
Outstanding Stock Options, Vested or expected to vest (in shares) | 23 |
Outstanding Stock Options, Exercisable (in shares) | 12 |
Options Outstanding Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 156.34 |
Options granted under all plans (in dollars per share) | $ / shares | 205.90 |
Exercised (in dollars per share) | $ / shares | 97.47 |
Plan shares expired or canceled (in dollars per share) | $ / shares | 188.04 |
Ending balance (in dollars per share) | $ / shares | 175.23 |
Weighted-Average Exercise Price, Vested or expected to vest (in dollars per share) | $ / shares | 173.38 |
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 149.40 |
Aggregate Intrinsic Value | |
Balance | $ | $ 2,982 |
Vested or expected to vest | $ | 2,852 |
Exercisable | $ | $ 1,808 |
Restricted stock | |
Shares Available for Grant | |
Restricted stock and restricted stock unit activity (in shares) | (32) |
2013 Equity Incentive Plan | |
Shares Available for Grant | |
Increase in shares authorized (in shares) | 44 |
Ending balance (in shares) | 72 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Outstanding (Details) shares in Millions | 12 Months Ended |
Jan. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Number Outstanding (in shares) | shares | 23 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 6 months |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 175.23 |
Options Exercisable, Number of Shares (in shares) | shares | 13 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 149.40 |
Range 1 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 0.76 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 118.04 |
Options, Number Outstanding (in shares) | shares | 4 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 6 months |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 82.60 |
Options Exercisable, Number of Shares (in shares) | shares | 4 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 84.42 |
Range 2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 120.75 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 151.25 |
Options, Number Outstanding (in shares) | shares | 1 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 24 days |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 140.34 |
Options Exercisable, Number of Shares (in shares) | shares | 1 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 138.14 |
Range 3 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | $ 154.14 |
Options, Number Outstanding (in shares) | shares | 4 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 154.14 |
Options Exercisable, Number of Shares (in shares) | shares | 2 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 154.14 |
Range 4 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 155.20 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 171.43 |
Options, Number Outstanding (in shares) | shares | 3 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 8 months 12 days |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 162.03 |
Options Exercisable, Number of Shares (in shares) | shares | 3 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 161.25 |
Range 5 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 176.98 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 215.17 |
Options, Number Outstanding (in shares) | shares | 4 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 10 months 24 days |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 211.42 |
Options Exercisable, Number of Shares (in shares) | shares | 2 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 213.44 |
Range 6 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 218.21 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 296.84 |
Options, Number Outstanding (in shares) | shares | 7 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 9 months 18 days |
Options Outstanding , Weighted-Average Exercise Price (in dollars per share) | $ 224.52 |
Options Exercisable, Number of Shares (in shares) | shares | 1 |
Options Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 239.94 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Restricted Stock Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) $ / shares shares | |
Restricted stock | |
Restricted Stock Outstanding | |
Beginning balance (in shares) | 27 |
Granted (in shares) | 18 |
Canceled (in shares) | (5) |
Vested and converted to shares (in shares) | (12) |
Ending balance (in shares) | 29 |
Expected to vest (in shares) | 26 |
Restricted Stock Outstanding, Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 202.85 |
Granted (in dollars per share) | $ / shares | 201.34 |
Canceled (in dollars per share) | $ / shares | 203.07 |
Vested and converted to shares (in dollars per share) | $ / shares | 196.21 |
Ending balance (in dollars per share) | $ / shares | $ 204.62 |
Restricted Stock Outstanding, Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Outstanding | $ | $ 4,924 |
Aggregate Intrinsic Value, Expected to vest | $ | $ 4,302 |
Performance shares | |
Restricted Stock Outstanding | |
Granted (in shares) | 1 |
Restricted Stock Outstanding, Weighted-Average Exercise Price | |
Granted (in dollars per share) | $ / shares | $ 203.28 |
Stockholders' Equity - Share-_2
Stockholders' Equity - Share-based Payment Arrangement Expensed and Capitalized, Amount (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Share-Based Payment Arrangement [Abstract] | |
Fiscal 2024 | $ 2,672 |
Fiscal 2025 | 1,849 |
Fiscal 2026 | 1,156 |
Fiscal 2027 | 207 |
Total stock-based compensation expense | $ 5,884 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - shares shares in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 23 | 21 |
Stock available for future grant or issuance (in shares) | 73 | 66 |
Total shares available for future grant (in shares) | 148 | |
2013 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant or issuance (in shares) | 72 | |
2014 Inducement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant or issuance (in shares) | 1 | |
Amended and Restated 2004 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant or issuance (in shares) | 23 | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards and units and performance-based stock units outstanding (in shares) | 29 | 27 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Income Before Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 398 | $ 1,338 | $ 2,683 |
Foreign | 262 | 194 | (122) |
Income before benefit from (provision for) income taxes | $ 660 | $ 1,532 | $ 2,561 |
Income Taxes - Provisions For (
Income Taxes - Provisions For (Benefit From) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Current: | ||||
Federal | $ 173 | $ 6 | $ (12) | |
State | 216 | (16) | 53 | |
Foreign | 397 | 352 | 238 | |
Total | 786 | 342 | 279 | |
Deferred: | ||||
Federal | (134) | (181) | 228 | |
State | (203) | (57) | 66 | |
Foreign | 3 | (16) | (2,084) | |
Total | (334) | (254) | (1,790) | |
Provision for (benefit from) income taxes | [1] | $ 452 | $ 88 | $ (1,511) |
[1]During fiscal 2021, the Company recorded approximately $2.0 billion of a one-time benefit from a discrete tax item related to the recognition of deferred tax assets resulting from an intra-entity transfer of intangible property. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Tax Credit Carryforward [Line Items] | ||||
Provision (benefit) for income taxes | [1] | $ 452 | $ 88 | $ (1,511) |
Deferred income tax benefit from intra-entity transfer of intangible property | 0 | 0 | 2,003 | |
Operating loss carryforwards | 200 | |||
Research and development tax credits | 1,100 | |||
Valuation allowance | 633 | 463 | ||
Increase in unrecognized tax benefits | 153 | 343 | 46 | |
Unrecognized tax benefits which would affect the effective tax rate | 1,500 | 1,300 | 1,300 | |
Recognized interest and penalties related to unrecognized tax benefits | 49 | 21 | 25 | |
Accrued interest and penalties related to unrecognized tax benefits | 107 | $ 58 | $ 37 | |
Foreign Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 79 | |||
California | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 1,100 | |||
Research and development tax credits | 730 | |||
State and Local Jurisdiction | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 1,100 | |||
Tax credit carryforward | $ 79 | |||
[1]During fiscal 2021, the Company recorded approximately $2.0 billion of a one-time benefit from a discrete tax item related to the recognition of deferred tax assets resulting from an intra-entity transfer of intangible property. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of statutory Federal Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal taxes at statutory rate | $ 139 | $ 322 | $ 538 | |
State, net of the federal benefit | 29 | (29) | 90 | |
Effects of non-U.S. operations | 287 | 199 | (1,817) | |
Tax credits | (239) | (263) | (125) | |
Non-deductible expenses | 94 | 83 | 45 | |
Foreign-derived intangible income deduction | (55) | 0 | 0 | |
(Windfall)/shortfall related to share-based compensation | 31 | (323) | (289) | |
Effect of U.S. tax law change | 0 | 0 | 23 | |
Change in valuation allowance | 171 | 101 | 15 | |
Other, net | (5) | (2) | 9 | |
Provision for (benefit from) income taxes | [1] | $ 452 | $ 88 | $ (1,511) |
[1]During fiscal 2021, the Company recorded approximately $2.0 billion of a one-time benefit from a discrete tax item related to the recognition of deferred tax assets resulting from an intra-entity transfer of intangible property. |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Deferred tax assets: | ||
Losses and deductions carryforward | $ 268 | $ 682 |
Deferred stock-based compensation expense | 312 | 244 |
Tax credits | 1,055 | 1,469 |
Accrued liabilities | 470 | 300 |
Intangible assets | 1,976 | 2,009 |
Lease liabilities | 912 | 862 |
Unearned revenue | 78 | 116 |
Capitalized research & development | 914 | 0 |
Other | 86 | 32 |
Total deferred tax assets | 6,071 | 5,714 |
Less valuation allowance | (633) | (463) |
Deferred tax assets, net of valuation allowance | 5,438 | 5,251 |
Deferred tax liabilities: | ||
Capitalized costs to obtain revenue contracts | (913) | (817) |
Purchased intangible assets | (1,500) | (1,902) |
Depreciation and amortization | (304) | (178) |
Basis difference on strategic and other investments | (250) | (337) |
Lease right-of-use assets | (767) | (735) |
Total deferred tax liabilities | (3,734) | (3,969) |
Net deferred tax assets (liabilities) | $ 1,704 | $ 1,282 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning of period | $ 1,822 | $ 1,479 | $ 1,433 |
Tax positions taken in prior period, gross increases | 53 | 25 | 77 |
Tax positions taken in prior period, gross decreases | (45) | (27) | (40) |
Tax positions taken in current period, gross increases | 227 | 358 | 107 |
Settlements | (40) | 0 | (87) |
Lapse of statute of limitations | (12) | (7) | (19) |
Currency translation effect | (30) | (6) | |
Currency translation effect | 8 | ||
End of period | $ 1,975 | $ 1,822 | $ 1,479 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Numerator: | |||
Net income | $ 208 | $ 1,444 | $ 4,072 |
Denominator: | |||
Weighted-average shares outstanding for basic earnings per share (in shares) | 992 | 955 | 908 |
Dilutive effect of employee stock awards (in shares) | 5 | 19 | 22 |
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares) | 997 | 974 | 930 |
Net Income Per Share - Shares E
Net Income Per Share - Shares Excluded from Diluted Earnings (Loss) Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Employee stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded (in shares) | 39 | 4 | 6 |
Legal Proceedings and Claims (D
Legal Proceedings and Claims (Details) | 1 Months Ended |
Sep. 30, 2019 lawsuit | |
Slack Litigation | |
Loss Contingencies [Line Items] | |
Number of claims filed | 7 |