Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Jan. 31, 2017 | Feb. 28, 2017 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WDAY | ||
Entity Registrant Name | Workday, Inc. | ||
Entity Central Index Key | 1,327,811 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 203 | ||
Entity Public Float | $ 10.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 539,923 | $ 300,087 |
Marketable securities | 1,456,822 | 1,669,372 |
Accounts receivable, net of allowance for doubtful accounts of $2,102 and $1,592 | 383,908 | 293,407 |
Deferred costs | 27,537 | 21,817 |
Prepaid expenses and other current assets | 88,336 | 77,625 |
Total current assets | 2,496,526 | 2,362,308 |
Property and equipment, net | 365,877 | 214,158 |
Deferred costs, noncurrent | 43,310 | 30,074 |
Acquisition-related intangible assets, net | 48,787 | 15,491 |
Goodwill | 158,354 | 50,325 |
Other assets | 53,570 | 57,738 |
Total assets | 3,166,424 | 2,730,094 |
Current liabilities: | ||
Accounts payable | 26,824 | 19,605 |
Accrued expenses and other current liabilities | 61,582 | 43,122 |
Accrued compensation | 110,625 | 91,211 |
Unearned revenue | 1,097,417 | 768,741 |
Total current liabilities | 1,296,448 | 922,679 |
Convertible senior notes, net | 534,423 | 507,476 |
Unearned revenue, noncurrent | 135,970 | 130,988 |
Other liabilities | 36,677 | 32,794 |
Total liabilities | 2,003,518 | 1,593,937 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10 million shares authorized as of January 31, 2017 and 2016; no shares issued and outstanding as of January 31, 2017 and 2016 | 0 | 0 |
Additional paid-in capital | 2,681,200 | 2,247,454 |
Accumulated other comprehensive income (loss) | 2,071 | 799 |
Accumulated deficit | (1,520,567) | (1,112,289) |
Total stockholders’ equity | 1,162,906 | 1,136,157 |
Total liabilities and stockholders’ equity | 3,166,424 | 2,730,094 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | 127 | 115 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, value | $ 75 | $ 78 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Net of allowance for doubtful accounts | $ 2,102 | $ 1,592 |
Preferred stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value per share (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 127,000,000 | 116,000,000 |
Common stock, shares outstanding | 127,000,000 | 116,000,000 |
Class B Common Stock | ||
Common stock, par value per share (dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 76,000,000 | 79,000,000 |
Common stock, shares outstanding | 76,000,000 | 79,000,000 |
Shares subject to repurchase | 100,000 | 1,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Revenues: | ||||
Subscription services | $ 1,287,104 | $ 929,234 | $ 613,328 | |
Professional services | 282,303 | 233,112 | 174,532 | |
Total revenues | 1,569,407 | 1,162,346 | 787,860 | |
Costs and expenses: | ||||
Costs of subscription services | [1] | 213,389 | 149,869 | 102,476 |
Costs of professional services | [1] | 270,156 | 224,558 | 162,327 |
Product development | [1] | 680,531 | 469,944 | 316,868 |
Sales and marketing | [1] | 583,874 | 434,056 | 315,840 |
General and administrative | [1] | 198,122 | 148,578 | 106,051 |
Total costs and expenses | [1] | 1,946,072 | 1,427,005 | 1,003,562 |
Operating loss | (376,665) | (264,659) | (215,702) | |
Other expense, net | (32,427) | (24,242) | (30,270) | |
Loss before provision for (benefit from) income taxes | (409,092) | (288,901) | (245,972) | |
Provision for (benefit from) income taxes | (814) | 1,017 | 2,010 | |
Net loss | (408,278) | (289,918) | (247,982) | |
Net loss attributable to Class A and Class B common stockholders | $ (408,278) | $ (289,918) | $ (247,982) | |
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted (dollars per share) | $ (2.06) | $ (1.53) | $ (1.35) | |
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders (in shares) | 198,214 | 190,016 | 183,702 | |
[1] | Costs and expenses include share-based compensation expenses as follows: Costs of subscription services $20,773 $12,060 $6,053 Costs of professional services $26,833 $19,526 $12,890 Product development $166,529 $109,362 $63,938 Sales and marketing $86,229 $51,617 $29,875 General and administrative $78,265 $57,405 $43,292 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Costs of subscription services | |||
Allocated share-based compensation expense | $ 20,773 | $ 12,060 | $ 6,053 |
Costs of professional services | |||
Allocated share-based compensation expense | 26,833 | 19,526 | 12,890 |
Product development | |||
Allocated share-based compensation expense | 166,529 | 109,362 | 63,938 |
Sales and marketing | |||
Allocated share-based compensation expense | 86,229 | 51,617 | 29,875 |
General and administrative | |||
Allocated share-based compensation expense | $ 78,265 | $ 57,405 | $ 43,292 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (408,278) | $ (289,918) | $ (247,982) |
Other comprehensive income (loss), net of tax: | |||
Net change in foreign currency translation adjustment | 150 | (3,158) | (525) |
Net change in unrealized gains (losses) on available-for-sale investments | (388) | (842) | 116 |
Net change in market value of effective foreign currency forward exchange contracts | 1,510 | 4,939 | 0 |
Other comprehensive income (loss), net of tax: | 1,272 | 939 | (409) |
Comprehensive loss | $ (407,006) | $ (288,979) | $ (248,391) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (408,278) | $ (289,918) | $ (247,982) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 115,885 | 85,939 | 59,205 |
Share-based compensation expenses | 372,272 | 249,970 | 156,048 |
Amortization of deferred costs | 25,577 | 23,477 | 19,288 |
Amortization of debt discount and issuance costs | 26,947 | 25,518 | 24,171 |
Gain on sale of cost method investment | (65) | (3,220) | 0 |
Impairment of cost method investment | 15,000 | 0 | 0 |
Other | (1,982) | 1,047 | 2,924 |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable | (88,639) | (105,264) | (96,876) |
Deferred costs | (44,533) | (33,899) | (23,514) |
Prepaid expenses and other assets | (20,847) | (28,366) | (15,524) |
Accounts payable | 6,336 | 6,824 | 1,120 |
Accrued expense and other liabilities | 23,367 | 59,724 | 3,964 |
Unearned revenue | 327,615 | 266,805 | 219,179 |
Net cash provided by (used in) operating activities | 348,655 | 258,637 | 102,003 |
Cash flows from investing activities | |||
Purchases of marketable securities | (1,917,238) | (2,125,841) | (1,737,840) |
Maturities of marketable securities | 1,986,031 | 1,901,858 | 1,419,454 |
Sales of available-for-sale securities | 133,292 | 102,711 | 53,182 |
Business combinations, net of cash acquired | (147,879) | (31,436) | (26,317) |
Owned real estate projects | (106,997) | 0 | 0 |
Capital expenditures, excluding owned real estate projects | (120,813) | (133,667) | (103,646) |
Purchases of cost method investments | (300) | (16,550) | (10,000) |
Sales and maturities of cost method investments | 5,315 | 3,538 | 0 |
Other | (296) | (760) | 1,000 |
Net cash provided by (used in) investing activities | (168,885) | (300,147) | (404,167) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock from employee equity plans | 58,079 | 45,656 | 36,239 |
Principal payments on capital lease obligations | 0 | (3,193) | (9,759) |
Shares repurchased for tax withholdings on vesting of restricted stock | 0 | 0 | (8,291) |
Other | 1,602 | 1,646 | 1,266 |
Net cash provided by (used in) financing activities | 59,681 | 44,109 | 19,455 |
Effect of exchange rate changes | 385 | (704) | (425) |
Net increase (decrease) in cash and cash equivalents | 239,836 | 1,895 | (283,134) |
Cash and cash equivalents at the beginning of period | 300,087 | 298,192 | 581,326 |
Cash and cash equivalents at the end of period | 539,923 | 300,087 | 298,192 |
Supplemental cash flow data | |||
Cash paid for interest | 6,484 | 6,456 | 6,869 |
Cash paid for taxes | 5,315 | 2,124 | 943 |
Non-cash investing and financing activities: | |||
Vesting of early exercised stock options | 1,803 | 1,887 | 1,887 |
Purchases of property and equipment, accrued but not paid | 27,696 | 14,052 | 8,776 |
Non-cash additions to property and equipment | $ 2,094 | $ 7,256 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance, shares at Jan. 31, 2014 | 183,406,031 | ||||
Balance at Jan. 31, 2014 | $ 1,187,217 | $ 181 | $ 1,761,156 | $ 269 | $ (574,389) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee equity plans (in shares) | 3,952,173 | ||||
Issuance of common stock under employee equity plans | 36,239 | $ 4 | 36,235 | ||
Vesting of early exercised stock options | 1,887 | 1,887 | |||
Vested restricted stock units net (in shares) | 1,057,851 | ||||
Vested restricted stock units, net | 1 | $ 1 | |||
Shares withheld for tax withholding on vesting of restricted stock | (8,292) | (8,292) | |||
Share-based compensation | 156,048 | 156,048 | |||
Excess tax benefits from share-based compensation | 1,175 | 1,175 | |||
Other | 91 | 91 | |||
Other comprehensive income (loss) | (409) | (409) | |||
Net loss | (247,982) | (247,982) | |||
Balance, shares at Jan. 31, 2015 | 188,416,055 | ||||
Balance at Jan. 31, 2015 | 1,125,975 | $ 186 | 1,948,300 | (140) | (822,371) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee equity plans (in shares) | 4,103,433 | ||||
Issuance of common stock under employee equity plans | 45,656 | $ 5 | 45,651 | ||
Vesting of early exercised stock options | 1,887 | 1,887 | |||
Vested restricted stock units net (in shares) | 1,959,862 | ||||
Vested restricted stock units, net | 0 | $ 2 | (2) | ||
Share-based compensation | 249,970 | 249,970 | |||
Excess tax benefits from share-based compensation | 1,646 | 1,646 | |||
Other | 2 | 2 | |||
Other comprehensive income (loss) | 939 | 939 | |||
Net loss | (289,918) | (289,918) | |||
Balance, shares at Jan. 31, 2016 | 194,479,350 | ||||
Balance at Jan. 31, 2016 | 1,136,157 | $ 193 | 2,247,454 | 799 | (1,112,289) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee equity plans (in shares) | 4,379,787 | ||||
Issuance of common stock under employee equity plans | 58,079 | $ 4 | 58,075 | ||
Vesting of early exercised stock options | 1,803 | $ 1 | 1,802 | ||
Vested restricted stock units net (in shares) | 4,084,268 | ||||
Vested restricted stock units, net | 0 | $ 4 | (4) | ||
Share-based compensation | 372,272 | 372,272 | |||
Excess tax benefits from share-based compensation | 1,226 | 1,226 | |||
Other | 375 | 375 | |||
Other comprehensive income (loss) | 1,272 | 1,272 | |||
Net loss | (408,278) | (408,278) | |||
Balance, shares at Jan. 31, 2017 | 202,943,405 | ||||
Balance at Jan. 31, 2017 | $ 1,162,906 | $ 202 | $ 2,681,200 | $ 2,071 | $ (1,520,567) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background Workday provides financial management, human capital management, and analytics applications designed for the world's largest companies, educational institutions, and government agencies. We offer innovative and adaptable technology focused on the consumer Internet experience and cloud delivery model. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources. We were originally incorporated in March 2005 in Nevada and in June 2012, we reincorporated in Delaware. Fiscal Year Our fiscal year ends on January 31. References to fiscal 2017 , for example, refer to the year ended January 31, 2017 . Basis of Presentation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the determination of the relative selling prices for our services, certain assumptions used in the valuation of equity awards and the fair value of assets acquired and liabilities assumed through business combinations. Actual results could differ from those estimates and such differences could be material to our consolidated financial position and results of operations. Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition We derive our revenues primarily from subscription services fees and from professional services fees, including training. We sell subscriptions to our cloud applications through contracts that are generally three years or more in length. Our arrangements are generally non-cancelable. Our subscription contracts do not provide customers with the right to take possession of the software supporting the applications and, as a result, are accounted for as service contracts. We commence revenue recognition for our cloud applications and professional services when all of the following criteria are met: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • Collection of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. Subscription Services Revenues Subscription services revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer, assuming all revenue recognition criteria have been met. Professional Services Revenues Professional services revenues are generally recognized as the services are rendered for time and materials contracts, or on a proportional performance basis for fixed price contracts. The majority of our professional services contracts are on a time and materials basis. Training revenues are recognized as the services are rendered. Multiple Deliverable Arrangements For arrangements with multiple deliverables, we evaluate whether the individual deliverables qualify as separate units of accounting. In order to treat deliverables in a multiple deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, we account for each deliverable separately and revenue is recognized for the respective deliverables as they are delivered. Subscription contracts have standalone value as we sell the subscriptions separately. All of our professional services have standalone value and can be accounted for separately from subscription services, given the availability of the professional services from other vendors, the nature of our professional services and ongoing sales of our applications to new customers without professional services. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling price. Multiple deliverable arrangement accounting guidance provides a hierarchy when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence ("VSOE") of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence ("TPE") of selling price is used to establish the selling price if it exists. If neither VSOE nor TPE exist for a deliverable, arrangements with multiple deliverables can be separated into discrete units of accounting based on our best estimate of selling price. The amount of arrangement fee allocated is limited by contingent revenues, if any. We determine the best estimate of selling price for our deliverables based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors. We evaluate our best estimate of selling price by reviewing historical data related to sales of our deliverables, including comparing the percentages of our contract prices to our list prices. We also consider several other data points in our evaluation, including the size of our arrangements, the cloud applications sold, customer demographics, and the numbers and types of users within our arrangements. Fair Value Measurement We measure our cash equivalents, marketable securities and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase. Our cash equivalents generally consist of investments in U.S. agency obligations, U.S. treasury securities, corporate bonds, commercial paper and money market funds. Marketable Securities Our marketable securities consist of U.S. agency obligations, U.S. treasury securities, corporate bonds and commercial paper. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months , as current assets in the accompanying consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income (loss). We evaluate our investments to assess whether those with unrealized loss positions are other-than-temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations. When quoted prices for identical instruments are available in an active market, marketable securities are classified within Level 1 of the fair value hierarchy. If quoted prices for identical instruments in active markets are not available, fair values are estimated using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy. To date, all of our marketable securities can be valued using one of these two methodologies. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. For all periods presented, the allowance for doubtful accounts activity was not significant. Deferred Commissions Sales commissions earned by our sales force are considered to be direct sales commissions when they can be associated specifically with a non-cancelable subscription contract. Direct sales commissions are deferred when earned and amortized over the same period that revenues are recognized for the related non-cancelable subscription contract. The commission payments are paid in full after the customer has paid for its first year of service. Amortization of deferred commissions is included in Sales and marketing in the accompanying consolidated statements of operations. Derivative Financial Instruments and Hedging Activities We use derivative financial instruments to manage foreign currency risks (see Note 9). We account for these instruments in accordance with Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging , which requires that every derivative instrument be recorded on the consolidated balance sheets as either an asset or liability measured at its fair value as of the reporting date. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For foreign currency forward contracts not designated as hedging instruments, which we use to hedge a portion of our net outstanding monetary assets and liabilities, the gains or losses are recorded in Other expense, net in the consolidated statements of operations in the period of change. For a derivative instrument designated as a cash flow hedge, which we use to hedge certain customer contracts denominated in foreign currencies, the change in fair value on the effective portion is recorded to Accumulated other comprehensive income (loss) ("OCI") in our consolidated balance sheets each reporting period. The balance in OCI is subsequently reclassified to the related revenue line item in the consolidated statements of operations in the same period that the underlying revenues are earned. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the related lease term. Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Business Combinations We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. 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 our consolidated statements of operations. Goodwill and Acquisition-Related Intangible Assets Acquisition-related intangible assets with a finite life are typically amortized over useful lives of three to four years. Goodwill amounts are not amortized, but rather tested for impairment at least annually, and more frequently upon the occurrence of certain events. We completed our annual impairment test in our fourth quarter, which did not result in any impairment of the goodwill balance. Unearned Revenue Unearned revenue primarily consists of customer billings in advance of revenues being recognized from our subscription contracts. We generally invoice our customers for our subscription contracts in annual installments. Our typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Unearned revenue that is anticipated to be recognized during the succeeding twelve -month period is recorded as current unearned revenue and the remaining portion is recorded as noncurrent. Convertible Senior Notes In June 2013, we issued 0.75% convertible senior notes due July 15, 2018 ("2018 Notes") with a principal amount of $350 million . Concurrently, we issued 1.50% convertible senior notes due July 15, 2020 ("2020 Notes") with a principal amount of $250 million (together with the 2018 Notes, referred to as "the Notes"). In accounting for the Notes, we separated them into liability and equity components. The carrying amount of the liability components were calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity components representing the conversion options were determined by deducting the fair value of the liability component from the par value of the Notes as a whole. These differences represent debt discounts that are amortized to interest expense over the terms of the Notes. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, we allocated the total amount incurred to the liability and equity components. Issuance costs attributable to the liability components are being amortized to expense over the respective terms of the Notes, and issuance costs attributable to the equity components were netted with the respective equity component in additional paid-in capital. Advertising Expenses Advertising is expensed as incurred. Advertising expense was $35 million , $31 million and $20 million for fiscal 2017 , 2016 and 2015 , respectively. Share-Based Compensation All share-based compensation to employees is measured based on the grant-date fair value of the awards and recognized in our consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award). We estimate the fair value of stock options granted and shares issued under our employee stock purchase plan using the Black-Scholes option-pricing model. For restricted stock awards and units and performance-based restricted stock units, fair value is based on the closing price of our common stock on the grant date. Compensation expense is generally recognized over the vesting period of the applicable award using the straight-line method. Compensation expense for non-employee stock options is calculated using the Black-Scholes option-pricing model and is recorded as the options vest. Non-employee options subject to vesting are required to be periodically revalued over their service period, which is generally the same as the vesting period. Income Taxes We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our online documentation under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our cloud applications infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. We have entered into service-level agreements with a majority of our customers committing to defined levels of service availability and performance and permitting those customers to receive credits or refunds for prepaid amounts related to unused subscription services or to terminate their agreements in the event that we fail to meet those levels. To date, we have not experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, we have not accrued any liabilities related to these agreements in the consolidated financial statements. Foreign Currency Exchange The functional currency for certain of our foreign subsidiaries is the U.S. dollar, while others use local currencies. We translate the foreign functional currency financial statements to U.S dollars for those entities that do not have U.S. dollars as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in OCI as a component of stockholders' equity, and related periodic movements are summarized as a line item in our consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in Other expense, net on the consolidated statements of operations for the period. Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Our deposits exceed federally insured limits. No single customer represented over 10% of accounts receivable in the consolidated financial statements as of January 31, 2017 or 2016 . No single customer represented over 10% of total revenues for any of the periods in the consolidated financial statements. In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We have internal procedures to restore services in the event of disaster at one of our current data center facilities. We serve our customers and users from data center facilities operated by third parties, located in Ashburn, Virginia; Atlanta, Georgia; Portland, Oregon; Dublin, Ireland; and Amsterdam, the Netherlands. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely on Amazon Web Services ("AWS"), which provides a distributed computing infrastructure platform for business operations, to operate certain aspects of our services, such as environments for development testing, training and sales demonstrations. Any disruption of or interference with our use of AWS would impact our operations. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("Topic 606"). Topic 606 supersedes the revenue recognition requirements in ASU Topic 605, Revenue Recognition ("Topic 605"), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which discusses the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. Collectively, we refer to Topic 606 and Subtopic 340-40 as the “new standard.” The new standard must be adopted by Workday in our fiscal year beginning February 1, 2018, with early adoption permitted effective in our fiscal year beginning February 1, 2017. The two permitted transition methods under the new standard are the full retrospective method, in which the new standard would be applied to each prior reporting period presented and the cumulative effect of applying the new standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the new standard would be recognized at the date of initial application. We have closely assessed the new standard and monitored FASB activity, including the interpretations by the FASB Transition Resource Group for Revenue Recognition, throughout fiscal 2017. In the fourth quarter of fiscal 2017, we finalized our assessment of the new standard, including completing our contract reviews and our evaluation of the incremental costs of obtaining a contract. Based on our assessment, we decided to early adopt the requirements of the new standard in the first quarter of fiscal 2018, utilizing the full retrospective method of transition. The impact of adopting the new standard on our fiscal 2017 and fiscal 2016 revenues is not material. The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs over the term of the related subscription contract, which was generally three years. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs over a period of benefit that we have determined to be five years. Select consolidated statement of operations line items, which reflect the adoption of the new standard are as follows (in thousands): Year Ended January 31, 2017 2016 Revenues: Subscription services $ 1,290,733 $ 920,196 Professional services 283,707 236,494 Total revenues 1,574,440 1,156,690 Costs and expenses: Sales and marketing 565,328 413,530 Operating loss (353,086 ) (249,789 ) Net loss $ (384,699 ) $ (275,048 ) Select consolidated balance sheet line items, which reflect the adoption of the new standard are as follows (in thousands): January 31, 2017 Assets Trade and other receivables, net $ 409,780 Prepaid expenses and other current assets 66,590 Deferred costs 51,330 Deferred costs, noncurrent 117,249 Liabilities Unearned revenue $ 1,086,212 Unearned revenue, noncurrent 135,331 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 Leases . The guidance is effective for our fiscal year beginning February 1, 2019. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) , which simplifies the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, and classification in the statement of cash flows. The guidance is effective for our fiscal year beginning February 1, 2017. We will adopt this standard in the first quarter of fiscal 2018. We are in the process of evaluating the transition and disclosure requirements of the standard. We expect the cumulative-effect adjustment to be immaterial on the adoption date. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to the issuance of this ASU, existing guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) , which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. The amendments will be applied using a retrospective transition method to each period presented. We are in the process of evaluating the transition and disclosure requirements of the standard and we anticipate the adoption will not have a significant impact on our consolidated statements of cash flows. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jan. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities At January 31, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 908,874 $ 179 $ (535 ) $ 908,518 U.S. treasury securities 192,028 48 (25 ) 192,051 Corporate bonds 290,272 42 (429 ) 289,885 Commercial paper 323,106 — — 323,106 Money market funds 24,425 — — 24,425 $ 1,738,705 $ 269 $ (989 ) $ 1,737,985 Included in cash and cash equivalents $ 281,163 $ — $ — $ 281,163 Included in marketable securities $ 1,457,542 $ 269 $ (989 ) $ 1,456,822 At January 31, 2016 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 1,018,513 $ 127 $ (405 ) $ 1,018,235 U.S. treasury securities 338,736 70 (141 ) 338,665 Corporate bonds 135,065 36 (18 ) 135,083 Commercial paper 177,390 — (1 ) 177,389 Money market funds 148,961 — — 148,961 $ 1,818,665 $ 233 $ (565 ) $ 1,818,333 Included in cash and cash equivalents $ 148,961 $ — $ — $ 148,961 Included in marketable securities $ 1,669,704 $ 233 $ (565 ) $ 1,669,372 We do not believe the unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence, which includes our intent to hold these investments to maturity as of January 31, 2017 . No marketable securities held as of January 31, 2017 have been in a continuous unrealized loss position for more than 12 months. During fiscal 2017 , we sold $133 million of our available-for-sale securities and the realized gain from the sale is immaterial. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 908,518 $ — $ 908,518 U.S. treasury securities 192,051 — — 192,051 Corporate bonds — 289,885 — 289,885 Commercial paper — 323,106 — 323,106 Money market funds 24,425 — — 24,425 Foreign currency derivative assets — 7,909 — 7,909 Total assets $ 216,476 $ 1,529,418 $ — $ 1,745,894 Foreign currency derivative liabilities $ — $ 2,127 $ — $ 2,127 Total liabilities $ — $ 2,127 $ — $ 2,127 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2016 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 1,018,235 $ — $ 1,018,235 U.S. treasury securities 338,665 — — 338,665 Corporate bonds — 135,083 — 135,083 Commercial paper — 177,389 — 177,389 Money market funds 148,961 — — 148,961 Foreign currency derivative assets — 5,300 — 5,300 Total assets $ 487,626 $ 1,336,007 $ — $ 1,823,633 Foreign currency derivative liabilities $ — $ 154 $ — $ 154 Total liabilities $ — $ 154 $ — $ 154 Fair Value Measurements of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value in the consolidated balance sheets (in thousands): January 31, 2017 January 31, 2016 Net Carrying Amount before unamortized debt issuance costs Estimated Fair Value Net Carrying Amount before unamortized debt issuance costs Estimated Fair Value 0.75% Convertible senior notes $ 325,620 $ 402,259 $ 310,013 $ 362,250 1.50% Convertible senior notes 213,180 310,470 203,923 264,063 The difference between the principal amount of the notes, $350 million for the 0.75% convertible senior notes and $250 million for the 1.50% convertible senior notes, and the net carrying amount before unamortized debt issuance costs represents the unamortized debt discount (see Note 10). The estimated fair value of the convertible senior notes, which we have classified as Level 2 financial instruments, was determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on January 31, 2017 and 2016. Based on the closing price of our common stock of $83.09 on January 31, 2017, the if-converted value of the 0.75% convertible senior notes was less than its principal amount, and the if-converted value of the 1.50% convertible senior notes was greater than its principal amount. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): January 31, 2017 2016 Land $ 6,592 $ — Buildings 115,302 4,280 Computers, equipment and software 323,311 230,705 Computers, equipment and software acquired under capital leases 18,298 24,400 Furniture and fixtures 24,462 18,894 Leasehold improvements 108,673 86,282 Property and equipment, gross (1) 596,638 364,561 Less accumulated depreciation and amortization (230,761 ) (150,403 ) Property and equipment, net $ 365,877 $ 214,158 (1) Property and equipment, gross includes construction-in-progress for owned real estate projects of $115 million and $4 million that has not yet been placed in service as of January 31, 2017 and 2016, respectively. During fiscal 2017 we purchased real property located in Pleasanton, California which includes two office buildings totaling approximately 267,000 square feet, land and parking structures. Additionally, we started construction of our development center in Pleasanton, California, consisting of approximately 410,000 square feet of office space. Depreciation expense was $92 million , $71 million and $46 million for fiscal 2017 , 2016 and 2015 , respectively. These amounts include depreciation of assets recorded under capital leases of less than $0.1 million , $3 million and $9 million for fiscal 2017 , 2016 and 2015 , respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations During fiscal 2017 we acquired two businesses in order to expand our product and service offerings. We have included the financial results of the acquired businesses in our consolidated financial statements from the respective acquisition dates. The consideration paid for these acquisitions was $148 million , net of cash acquired. The following table summarizes the estimated fair values of assets acquired and liabilities assumed in the business combinations during fiscal 2017 (in thousands): Cash and cash equivalents $ 3,390 Other tangible assets 3,466 Acquired developed technology 45,039 Customer relationship assets 1,000 Accounts payable and other liabilities (3,256 ) Unearned revenue (6,000 ) Net assets acquired 43,639 Goodwill 107,658 Total purchase consideration $ 151,297 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill balance is not deductible for U.S. income tax purposes. Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. |
Acquisition-related Intangible
Acquisition-related Intangible Assets, Net | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition-related Intangible Assets, Net | Acquisition-related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): January 31, 2017 2016 Acquired developed technology $ 64,900 $ 20,461 Customer relationship assets 1,000 338 65,900 20,799 Less accumulated amortization (17,113 ) (5,308 ) Acquisition-related intangible assets, net $ 48,787 $ 15,491 Amortization expense related to acquired developed technology and customer relationship assets was $13 million , $3 million and $1 million for fiscal 2017 , 2016 and 2015, respectively. As of January 31, 2017 , our future estimated amortization expense related to the acquired developed technology and customer relationship assets is as follows (in thousands): Fiscal Period: 2018 $ 19,286 2019 18,904 2020 10,281 2021 316 Total $ 48,787 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): January 31, 2017 2016 Cost method investments $ 14,004 $ 28,742 Acquired land leasehold interest, net 9,676 9,781 Technology patents, net 2,098 3,020 Other 27,792 16,195 Total $ 53,570 $ 57,738 Our cost method investments include investments in private companies in which we do not have the ability to exert significant influence. The investments are tested for impairment at least annually, and more frequently upon the occurrence of certain events. During fiscal 2017, we recorded a $15 million other-than-temporary impairment for one of our cost method investments. As of January 31, 2017 , our future estimated amortization expense related to the acquired land leasehold interest and technology patents are as follows (in thousands): Fiscal Period: 2018 $ 889 2019 520 2020 463 2021 301 2022 209 Thereafter 9,392 Total $ 11,774 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We conduct business on a global basis in multiple foreign currencies, subjecting Workday to foreign currency risk. To mitigate this risk, we utilize hedging contracts as described below. We do not enter into any derivatives for trading or speculative purposes. Cash Flow Hedges We are exposed to foreign currency fluctuations resulting from customer contracts denominated in foreign currencies. We have a hedging program in which we enter into foreign currency forward contracts related to certain customer contracts. We designate these forward contracts as cash flow hedging instruments as the accounting criteria for such designation have been met. The effective portion of the gains or losses resulting from changes in the fair value of these hedges is recorded in OCI on the consolidated balance sheets and will be subsequently reclassified to the related revenue line item in the consolidated statements of operations in the same period that the underlying revenues are earned. The changes in value of the contracts resulting from changes in forward points are excluded from the assessment of hedge effectiveness and are recorded as incurred in Other expense, net in the consolidated statements of operations. Cash flows from such forward contracts are classified as operating activities. As of January 31, 2017 and 2016, we had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $252 million and $133 million , respectively. All contracts have maturities not greater than 25 months . The notional value represents the amount that will be bought or sold upon maturity of the forward contract. During fiscal 2017 and 2016, all cash flow hedges were considered effective. Foreign Currency Forward Contracts not Designated as Hedges We also enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets and liabilities. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are recorded in Other expense, net in the consolidated statements of operations. These forward contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. Cash flows from such forward contracts are classified as operating activities. As of January 31, 2017 and 2016, we had outstanding forward contracts with total notional values of $51 million and $22 million , respectively. All contracts have maturities not greater than 15 months . The fair values of outstanding derivative instruments were as follows (in thousands): Consolidated Balance Sheets Location January 31, 2017 2016 Derivative Assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets and Other assets $ 7,149 $ 4,695 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 760 605 Derivative Liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 1,605 $ 98 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 522 56 Gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Consolidated Statements of Operations and Statements of Comprehensive Loss Locations January 31, 2017 2016 2015 Gains (losses) recognized in OCI (effective portion) (1) Net change in market value of effective foreign currency forward exchange contracts $ 2,145 $ 4,942 $ — Gains (losses) reclassified from OCI into income (effective portion) Revenues 635 3 — Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other expense, net 1,386 148 — (1) Of the total effective portion of foreign currency forward contracts designated as cash flow hedges as of January 31, 2017, $3 million is expected to be reclassified out of OCI within the next 12 months. Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Consolidated Statements of Operations Location January 31, Derivative Type 2017 2016 2015 Foreign currency forward contracts not designated as hedges Other expense, net $ 662 $ 876 $ 441 We are subject to master netting agreements with certain counterparties of the foreign exchange contracts, under which we are permitted to net settle transactions of the same currency with a single net amount payable by one party to the other. It is our policy to present the derivatives gross in the consolidated balance sheets. Our foreign currency forward contracts are not subject to any credit contingent features or collateral requirements and we do not believe we are subject to significant counterparty concentration risk given the short-term nature, volume, and size of the derivative contracts outstanding. As of January 31, 2017, information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative Assets Counterparty A $ 982 $ — $ 982 $ (605 ) $ — $ 377 Counterparty B 6,927 — 6,927 (1,522 ) — 5,405 Total $ 7,909 $ — $ 7,909 $ (2,127 ) $ — $ 5,782 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative Liabilities Counterparty A $ 605 $ — $ 605 $ (605 ) $ — $ — Counterparty B 1,522 — 1,522 (1,522 ) — — Total $ 2,127 $ — $ 2,127 $ (2,127 ) $ — $ — |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 12 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net Convertible Senior Notes In June 2013, we issued 0.75% convertible senior notes due July 15, 2018 with a principal amount of $350 million . The 2018 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 0.75% on January 15 and July 15 of each year. The 2018 Notes mature on July 15, 2018 unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2018 Notes prior to maturity. Concurrently, we issued 1.50% convertible senior notes due July 15, 2020 with a principal amount of $250 million . The 2020 Notes are unsecured, unsubordinated obligations, and interest is payable in cash in arrears at a fixed rate of 1.50% on January 15 and July 15 of each year. The 2020 Notes mature on July 15, 2020 unless repurchased or converted in accordance with their terms prior to such date. We cannot redeem the 2020 Notes prior to maturity. The terms of the Notes are governed by Indentures by and between us and Wells Fargo Bank, National Association, as Trustee ("the Indentures"). Upon conversion, holders of the Notes will receive cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at our election. For the 2018 Notes, the initial conversion rate is 12.0075 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $83.28 per share of Class A common stock, subject to adjustment. Prior to the close of business on March 14, 2018 , the conversion is subject to the satisfaction of certain conditions as described below. For the 2020 Notes, the initial conversion rate is 12.2340 shares of Class A common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $81.74 per share of Class A common stock, subject to adjustment. Prior to the close of business on March 13, 2020 , the conversion is subject to the satisfaction of certain conditions, as described below. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indentures) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the Indentures), holders of the Notes may require us to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of the Notes, plus any accrued and unpaid interest. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on March 14, 2018 for the 2018 Notes and March 13, 2020 for the 2020 Notes, in multiples of $1,000 principal amount, only under the following circumstances: • if the last reported sale price of Class A common stock for at least twenty trading days during a period of thirty consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the respective Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the respective Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate of the respective Notes on such trading day; or • upon the occurrence of specified corporate events, as noted in the Indentures. In accounting for the issuance of the Notes, we separated each of the Notes into liability and equity components. The carrying amounts of the liability components were calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity components representing the conversion option were determined by deducting the fair value of the liability components from the par value of the respective Notes. These differences represent debt discounts that are amortized to interest expense over the respective terms of the Notes. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. We allocated the total issuance costs incurred to the Notes on a prorated basis using the aggregate principal balances. In accounting for the issuance costs related to the Notes, we allocated the total amount of issuance costs incurred to liability and equity components. Issuance costs attributable to the liability components are being amortized to interest expense over the respective terms of the Notes, and the issuance costs attributable to the equity components were netted against the respective equity components in Additional paid-in capital. For the 2018 Notes, we recorded liability issuance costs of $7 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was $1 million for both fiscal 2017 and 2016 . For the 2020 Notes, we recorded liability issuance costs of $5 million and equity issuance costs of $2 million . Amortization expense for the liability issuance costs was less than $1 million for both fiscal 2017 and 2016 . The Notes, net consisted of the following (in thousands): January 31, 2017 January 31, 2016 2018 Notes 2020 Notes 2018 Notes 2020 Notes Principal amounts: Principal $ 350,000 $ 250,000 $ 350,000 $ 250,000 Unamortized debt discount (1) (24,380 ) (36,820 ) (39,987 ) (46,077 ) Net carrying amount before unamortized debt issuance costs 325,620 213,180 310,013 203,923 Unamortized debt issuance costs (1) (2,050 ) (2,327 ) (3,458 ) (3,002 ) Net carrying amount $ 323,570 $ 210,853 $ 306,555 $ 200,921 Carrying amount of the equity component (2) $ 74,892 $ 66,007 $ 74,892 $ 66,007 (1) Included in the consolidated balance sheets within Convertible senior notes, net and amortized over the remaining lives of the Notes on a straight-line basis as it approximates the effective interest rate method. (2) Included in the consolidated balance sheets within Additional paid-in capital, net of $2 million and $2 million for the 2018 Notes and 2020 Notes, respectively, in equity issuance costs. As of January 31, 2017 , the remaining life of the 2018 Notes and 2020 Notes is approximately 17 months and 41 months , respectively. The effective interest rates of the liability components of the 2018 Notes and 2020 Notes are 5.75% and 6.25% , respectively. These interest rates were based on the interest rates of similar liabilities at the time of issuance that did not have associated convertible features. The following table sets forth total interest expense recognized related to the 2018 Notes and 2020 Notes (in thousands): Year Ended January 31, 2017 2016 2018 Notes 2020 Notes 2018 Notes 2020 Notes Contractual interest expense $ 2,625 $ 3,750 $ 2,625 $ 3,750 Interest cost related to amortization of debt issuance costs 1,408 675 1,408 675 Interest cost related to amortization of the debt discount 15,607 9,257 14,737 8,698 Notes Hedges In connection with the issuance of the Notes, we entered into convertible note hedge transactions with respect to our Class A common stock ("Purchased Options"). The Purchased Options cover, subject to anti-dilution adjustments substantially identical to those in the Notes, approximately 7.3 million shares of our Class A common stock and are exercisable upon conversion of the Notes. The Purchased Options have initial exercise prices that correspond to the initial conversion prices of the 2018 Notes and 2020 Notes, respectively, subject to anti-dilution adjustments substantially similar to those in the Notes. The Purchased Options will expire in 2018 for the 2018 Notes and in 2020 for the 2020 Notes, if not earlier exercised. The Purchased Options are intended to offset potential economic dilution to our Class A common stock upon any conversion of the Notes. The Purchased Options are separate transactions and are not part of the terms of the Notes. We paid an aggregate amount of $144 million for the Purchased Options, which is included in Additional paid-in capital in the consolidated balance sheets. Warrants In connection with the issuance of the Notes, we also entered into warrant transactions to sell warrants ("the Warrants") to acquire, subject to anti-dilution adjustments, up to approximately 4.2 million shares in July 2018 and 3.1 million shares in July 2020 of our Class A common stock at an exercise price of $107.96 per share. If the Warrants are not exercised on their exercise dates, they will expire. If the market value per share of our Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants will have a dilutive effect on our earnings per share assuming that we are profitable. The Warrants are separate transactions, and are not part of the terms of the Notes or the Purchased Options. We received aggregate proceeds of $93 million from the sale of the Warrants, which is recorded in Additional paid-in capital in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Facility and Computing Infrastructure-related Commitments We have entered into non-cancelable agreements for certain of our offices and data centers with various expiration dates. Certain of our office leases are with an affiliate of our Chairman, Mr. Duffield, who is also a significant stockholder (see Note 17). Our operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. This includes payments for office and data center square footage, as well as data center power capacity for certain data centers. We generally recognize these expenses on a straight-line basis over the period in which we benefit from the lease and we have accrued for rent expense incurred but not paid. Total rent expense was $72 million , $46 million and $30 million for fiscal 2017 , 2016 and 2015 , respectively. In January 2014 , we entered into a 95 -year lease for a 6.9 -acre parcel of vacant land in Pleasanton, California, under which we paid $2 million for base rent from commencement through December 31, 2020. Annual rent payments of $0.2 million plus increases based on increases in the consumer price index begin on January 1, 2021 and continue through the end of the lease. Additionally, we have entered into a non-cancelable agreement with a computing infrastructure vendor that expires on October, 31, 2024. As of January 31, 2017 , the future minimum payments by year for our non-cancelable leases and computing infrastructure platforms are as follows (in thousands): Operating Operating Computing Infrastructure Platforms 2018 $ 42,686 $ 8,489 $ 6,000 2019 29,048 9,467 7,000 2020 23,100 9,661 10,000 2021 18,060 9,856 11,000 2022 10,611 10,050 14,000 Thereafter 31,683 24,711 49,500 $ 155,188 $ 72,234 $ 97,500 Legal Matters We are a party to various legal proceedings and claims which arise in the ordinary course of business. We make 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, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, as of January 31, 2017 , there was not at least a reasonable possibility that we had incurred a material loss, or a material loss in excess of a recorded accrual, with respect to such loss contingencies. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common Stock As of January 31, 2017 , there were 127 million shares of Class A common stock and 76 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder. All of our Class A and Class B shares will convert to a single class of common stock upon the date that is the first to occur of (i) October 11, 2032, (ii) such time as the shares of Class B common stock represent less than 9% of the outstanding Class A and Class B common stock, (iii) nine months following the death of both Mr. Duffield and Mr. Bhusri, and (iv) the date on which the holders of a majority of the shares of Class B common stock elect to convert all shares of Class A common stock and Class B common stock into a single class of common stock. Employee Equity Plans Our 2012 Equity Incentive Plan ("EIP") serves as the successor to our 2005 Stock Plan (together with the EIP, the "Stock Plans"). Pursuant to the terms of the EIP, the share reserve increased by 10 million shares on March 31, 2016. As of January 31, 2017 , we had approximately 58 million shares of Class A common stock available for future grants. We also have a 2012 Employee Stock Purchase Plan ("ESPP"). Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 16 and December 16 and exercisable on or about the succeeding December 15 and June 15, respectively, of each year. Pursuant to the terms of the ESPP, the share reserve increased by 2 million shares on March 31, 2016. As of January 31, 2017 , 6 million shares of Class A common stock were available for issuance under the ESPP. For fiscal 2017 , 0.7 million shares of Class A common shares were purchased under the ESPP at a weighted-average price of $63.09 per share, resulting in cash proceeds of $ 44 million . Stock Options The Stock Plans provide for the issuance of incentive and nonstatutory options to employees and non-employees. Options issued under the Stock Plans generally are exercisable for periods not to exceed 10 years and generally vest over five years . A summary of information related to stock option activity during fiscal 2017 is as follows (in millions, except share and per share data): Outstanding Weighted- Aggregate Balance as of January 31, 2016 12,862,976 $ 4.21 $ 756 Stock option grants — — Stock options exercised (3,678,415 ) 3.76 Stock options canceled (87,969 ) 9.47 Balance as of January 31, 2017 9,096,592 $ 4.34 $ 716 Vested and expected to vest as of January 31, 2017 9,090,462 $ 4.33 $ 716 Exercisable as of January 31, 2017 8,875,999 $ 4.21 $ 700 The total grant-date fair value of stock options vested during fiscal 2017 , 2016 and 2015 was $14 million , $17 million and $20 million , respectively. The total intrinsic value of the options exercised during fiscal 2017 , 2016 and 2015 was $273 million , $279 million and $311 million , respectively. The intrinsic value is the difference between the current fair value of the stock and the exercise price of the stock option. The weighted-average remaining contractual life of vested and expected to vest options as of January 31, 2017 is approximately 4.2 years. As of January 31, 2017 , there was a total of $4 million in unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of approximately 0.6 years. The options that are exercisable as of January 31, 2017 have a weighted-average remaining contractual life of approximately 4.2 years. The weighted-average remaining contractual life of outstanding options at January 31, 2017 is approximately 4.2 years. Common Stock Subject to Repurchase The Stock Plans allow for the early exercise of stock options for certain individuals as determined by the board of directors. We have the right to purchase at the original exercise price any unvested (but issued) common shares during the repurchase period following termination of services of an employee. The consideration received for an exercise of an option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The shares and liabilities are reclassified into equity as the awards vest. As of January 31, 2017 and 2016 , we had $0.8 million and $3 million , respectively, recorded in liabilities related to early exercises of stock options. Restricted Stock Units The Stock Plans provide for the issuance of restricted stock units ("RSUs") to employees. RSUs generally vest over four years . A summary of information related to RSU activity during fiscal 2017 is as follows: Number of Shares Weighted-Average Balance as of January 31, 2016 9,211,082 $ 81.48 RSUs granted 6,995,121 75.71 RSUs vested (3,941,895 ) 80.65 RSUs forfeited (761,587 ) 78.59 Balance as of January 31, 2017 11,502,721 $ 78.45 The weighted-average grant-date fair value of RSUs granted during fiscal 2017 , 2016 and 2015 was $75.71 , $85.29 and $81.65 , respectively. The total fair value of RSUs vested as of the vesting dates during fiscal 2017 , 2016 and 2015 was $303 million , $162 million and $90 million , respectively. As of January 31, 2017 , there was a total of $762 million in unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 2.7 years. Performance-based Restricted Stock Units During the first quarter of fiscal 2017, 0.1 million shares of performance-based restricted stock units ("PRSUs") were granted to the Chairman of the Board, Chief Executive Officer and certain of Workday’s executive management. These PRSU awards included performance conditions and service conditions, and would have generally vested over four years if the performance conditions were achieved for fiscal 2017. As of January 31, 2017, these performance conditions were not met. As a result, no compensation expense was recognized. Additionally, during fiscal 2017, 0.3 million shares of PRSUs were granted to all employees other than executive management and included performance conditions related to company-wide goals and service conditions. These performance conditions were met and the PRSUs vested on March 15, 2017. As of January 31, 2017, there was a total of $6 million in unrecognized compensation cost related to these PRSUs, which will be recognized over a weighted-average period of approximately 0.1 years . Share-based Compensation to Employees All share-based payments to employees are measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award). We estimate the fair value of stock option awards and shares issued under the ESPP using the Black-Scholes option-pricing model. We determine the assumptions for the option-pricing model as follows: Fair Value of Common Stock Prior to our IPO, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each meeting at which awards were approved. The factors included, but were not limited to: (i) contemporaneous third-party valuations of our common stock; (ii) the prices, rights, preferences and privileges of our preferred stock relative to those of our common stock; (iii) the lack of marketability of our common stock; (iv) our actual operating and financial results; (v) current business conditions and projections; and (vi) the likelihood of achieving a liquidity event, such as an IPO or sale of our company, given prevailing market conditions. Since our IPO, we have used the market closing price for our Class A common stock as reported on the New York Stock Exchange to determine the fair value of our common stock at each meeting at which awards were approved. Risk-Free Interest Rate The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date closest to the grant date for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock option grants and ESPP purchase rights. Expected Term The expected term represents the period that our share-based awards and the ESPP are expected to be outstanding. The expected term for options was determined based on the vesting terms, exercise terms and contractual lives. The expected term for the ESPP approximates the offering period. Volatility We determine the price volatility factor based on the historical volatility of our common stock and our peer group's common stock. Dividend Yield We have not paid and do not expect to pay dividends. Assumptions The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period the estimates are revised. We consider many factors when estimating expected forfeitures, including the types of awards and employee class. Actual results, and future changes in estimates, may differ substantially from our current estimates. The assumptions used for the periods presented were as follows. There were no stock options awarded during fiscal 2017, 2016 and 2015. Year Ended January 31, ESPP 2017 2016 2015 Expected volatility 34.5% – 44.5% 32.0% – 34.2% 32.8% – 37.7% Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.53% – 0.91% 0.26% – 0.51% 0.01% - 0.1% Dividend yield —% —% —% Weighted-average grant date fair value per share $69.00 – 79.30 $67.23 – 71.81 $64.12 – 72.26 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Jan. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net consisted of the following (in thousands): Year Ended January 31, 2017 2016 2015 Interest income $ 11,303 $ 4,855 $ 2,960 Interest expense (1) (30,103 ) (31,932 ) (31,060 ) Gain from sale of cost method investment 65 3,220 — Impairment of cost method investment (15,000 ) — — Other income (expense) 1,308 (385 ) (2,170 ) Other expense, net $ (32,427 ) $ (24,242 ) $ (30,270 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes and 2020 Notes and non-cash interest related to amortization of the debt discount and debt issuance costs (see Note 10). |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2017 2016 2015 Domestic $ (205,570 ) $ (90,831 ) $ (93,619 ) Foreign (203,522 ) (198,070 ) (152,353 ) Total $ (409,092 ) $ (288,901 ) $ (245,972 ) The provision for (benefit from) income taxes consisted of the following (in thousands): Year Ended January 31, 2017 2016 2015 Current: Federal $ 213 $ (2,012 ) $ 90 State 17 489 106 Foreign 3,573 2,869 2,128 Total 3,803 1,346 2,324 Deferred: Federal (466 ) — — State (52 ) — — Foreign (4,099 ) (329 ) (314 ) Total (4,617 ) (329 ) (314 ) Provision for (benefit from) income taxes $ (814 ) $ 1,017 $ 2,010 The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following: Year Ended January 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % Effect of: Foreign income at other than U.S. rates (18.1 )% (24.7 )% (22.5 )% Intercompany transactions 4.0 % 4.9 % (0.2 )% Research tax credits 6.0 % 4.9 % 6.9 % State taxes, net of federal benefit — % (0.2 )% (0.1 )% Changes in valuation allowance (20.5 )% (15.8 )% (15.2 )% Stock compensation (5.8 )% (5.1 )% (4.0 )% Other (0.4 )% 0.6 % (0.7 )% 0.2 % (0.4 )% (0.8 )% As a result of our history of net operating losses, the current federal and state provision for income taxes relate to accruals, state minimum taxes, and U.S. federal tax expense on taxable income before excess tax benefits offset with expiration of statute of limitations and adjustments to the interest and penalties. The deferred federal and state benefits from income taxes primarily relate to a valuation allowance release as a result of excess amount for financial reporting over tax basis of certain intangibles through business acquisition during fiscal 2017. The foreign deferred tax benefits primarily relate to a $4 million release of valuation allowance in a certain jurisdiction as a result of a recent history of income. We had unrecorded excess stock option tax benefits of $448 million as of January 31, 2017. These amounts will be credited to additional paid-in capital when the tax deduction is realized on the income tax returns. Significant components of our deferred tax assets and liabilities were as follows (in thousands): January 31, 2017 2016 Deferred tax assets: Unearned revenue $ 45,377 $ 35,884 Other reserves and accruals 23,134 21,505 Federal net operating loss carryforwards 110,974 62,580 State and foreign net operating loss carryforwards 25,783 21,521 Property and equipment 24,754 19,518 Share-based compensation 70,642 61,930 Research and development credits 78,283 51,340 Other 23,209 12,892 402,156 287,170 Valuation allowance (330,199 ) (222,760 ) Deferred tax assets, net of valuation allowance 71,957 64,410 Deferred tax liabilities: Intangibles (3,742 ) — Intercompany transactions (62,800 ) (62,951 ) Other prepaid assets (1,079 ) (898 ) (67,621 ) (63,849 ) Net deferred tax assets $ 4,336 $ 561 We regularly assess the need for a valuation allowance against our deferred tax assets by considering both positive and negative evidence related to whether it is more likely than not that our deferred tax assets will be realized. In evaluating the need for a valuation allowance, we consider the cumulative losses in recent years as a significant piece of negative evidence that is generally difficult to overcome. As of January 31, 2017, due to cumulative earnings and projected future income in a certain jurisdiction, we determined that there was sufficient positive evidence to conclude that it is more likely than not that $4 million of deferred tax asset is realizable. We will continue to monitor the ongoing profitability in this jurisdiction and may adjust accordingly in the future. As of January 31, 2017, we recorded a valuation allowance of $330 million for the portion of the deferred tax asset that we do not expect to be realized. The valuation allowance on our net deferred tax assets increased by $107 million and $46 million for fiscal 2017 and 2016, respectively. We will continue to reassess the future realization of the deferred tax asset and adjust the valuation allowance accordingly. As of January 31, 2017, we had approximately $1.5 billion of federal, $991 million of state and $67 million of foreign net operating loss carryforwards available to offset future taxable income. If not utilized, the federal and state net operating loss carryforwards expire in varying amounts between fiscal 2018 and 2037. The foreign net operating losses do not expire and may be carried forward indefinitely. The net operating losses include amounts relating to the excess tax benefit from stock option exercises, which will be recorded as a credit to additional paid-in capital when realized. We also had approximately $71 million of federal and $70 million of California research and development tax credit carryforwards as of January 31, 2017. The federal credits expire in varying amounts between fiscal 2026 and 2037. The California research credits do not expire and may be carried forward indefinitely. Our ability to utilize the net operating loss and tax credit carryforwards in the future may be subject to substantial restrictions in the event of past or future ownership changes as defined in Section 382 of the Internal Revenue Code of 1986, as amended and similar state tax law. We intend to permanently reinvest any future earnings in our foreign operations unless such earnings are subject to U.S. federal income taxes. Upon repatriation of those earnings, in the form of dividends or otherwise, we would be subject to both U.S. income taxes adjusted for foreign tax credits and applicable foreign withholding taxes. As of January 31, 2017, our foreign operations have cumulative deficits; therefore, we have not provided a deferred tax liability. Additionally, we currently estimate any such hypothetical foreign withholding tax expense to be immaterial to our financial statements. A reconciliation of the gross unrecognized tax benefit is as follows (in thousands): Year Ended January 31, 2017 2016 2015 Unrecognized tax benefits at the beginning of the period $ 98,460 $ 88,663 $ 77,090 Additions for tax positions taken in prior years 3,981 2,818 3,946 Reductions for tax positions taken in prior years — (881 ) (49 ) Additions for tax positions related to the current year 14,475 9,144 7,676 Reductions related to a lapse of applicable statute of limitations (115 ) (1,284 ) — Unrecognized tax benefits at the end of the period $ 116,801 $ 98,460 $ 88,663 Our policy is to include interest and penalties related to unrecognized tax benefits within our provision for income taxes. We did not accrue interest expense and penalties during fiscal 2017, and had accrued interest expenses of $0.1 million and $1 million , and penalties of $0.1 million and $1 million as of January 31, 2016 and 2015, respectively. Of the total amount of unrecognized tax benefits of $117 million , $1 million , if recognized, would impact the effective tax rate as of January 31, 2017. During fiscal 2017, we released a reserve in the amount of $0.2 million including corresponding interest and penalties related to an acquired tax position due to the lapse of statute of limitations. We do not expect the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. We file federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to our net operating loss carryforwards, our income tax returns generally remain subject to examination by federal and most state and foreign tax authorities. On December 1, 2015, the United States Tax Court issued its final decision with respect to Altera Corporation’s litigation with the Internal Revenue Service (“IRS”). The litigation relates to the treatment of share-based compensation expense in an inter-company cost-sharing arrangement with the taxpayer’s foreign subsidiary for fiscal 2004 through 2007. In its final decision, the Court accepted Altera’s position of excluding share-based compensation in its cost sharing arrangement and concluded that the related IRS Regulations were invalid. Subsequent to the decision, the IRS filed its appeal on February 23, 2016. Although the IRS has appealed the decision, based on the facts and circumstances of the Tax Court Case, we believe that it is more likely than not that the decision will be upheld. Therefore, we have recorded the effects of the decision and determined that there was no material impact to our effective tax rate and income tax expense due to our current full valuation allowance position. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, outstanding warrants, common stock related to unvested early exercised stock options, common stock related to unvested restricted stock units and awards and convertible senior notes to the extent dilutive, and common stock issuable pursuant to the ESPP. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. We consider shares issued upon the early exercise of options subject to repurchase and unvested restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods, to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Year Ended January 31, 2017 2016 2015 Class A Class B Class A Class B Class A Class B Basic and diluted net loss attributable to Class A and Class B common stockholders per share: Numerator: Allocation of distributed net loss attributable to common stockholders $ (251,468 ) $ (156,810 ) $ (168,832 ) $ (121,086 ) $ (133,736 ) $ (114,246 ) Denominator: Weighted-average common shares outstanding 122,085 76,129 110,655 79,361 99,070 84,632 Basic and diluted net loss per share $ (2.06 ) $ (2.06 ) $ (1.53 ) $ (1.53 ) $ (1.35 ) $ (1.35 ) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): Year Ended January 31, 2017 2016 2015 Outstanding common stock options 9,097 12,863 16,664 Shares subject to repurchase 110 621 1,164 Unvested restricted stock awards, units, and PRSUs 12,155 9,851 7,283 Shares related to the convertible senior notes 7,261 7,261 7,261 Shares subject to warrants related to the issuance of convertible senior notes 7,261 7,261 7,261 Shares issuable pursuant to the ESPP 485 345 246 36,369 38,202 39,879 |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by geography is generally based on the address of the customer as specified in our master subscription agreement. The following tables set forth revenue by geographic area (in thousands): Year Ended January 31, 2017 2016 2015 United States $ 1,281,848 $ 974,217 $ 657,085 Other countries 287,559 188,129 130,775 Total $ 1,569,407 $ 1,162,346 $ 787,860 Long-Lived Assets We attribute our long-lived assets, which primarily consist of property and equipment, to a country based on the physical location of the assets. The following table sets forth property and equipment by geographic area (in thousands): January 31, 2017 2016 United States $ 321,442 $ 176,398 Ireland 35,720 29,451 Other countries 8,715 8,309 Total $ 365,877 $ 214,158 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related Party Transactions We currently lease certain office space from an affiliate of our Chairman, Mr. Duffield, adjacent to our corporate headquarters in Pleasanton, California under various lease agreements. The average term of the agreements is 10 years and the total rent due under the agreements is $8 million for fiscal 2017, and $90 million in total. Rent expense under these agreements was $8 million , $6 million and $4 million for fiscal 2017 , 2016 and 2015 , respectively. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Plan | 401(k) Plan We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. In fiscal 2017, we began to match a certain portion of employee contributions up to a fixed maximum per employee. Our contributions to the plan were $6 million in fiscal 2017. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in fiscal 2017 and 2016 (in thousands except per share data): Quarter ended January 31, 2017 October 31, 2016 July 31, 2016 April 30, 2016 January 31, 2016 October 31, 2015 July 31, 2015 April 30, 2015 Consolidated Statements of Operations Data: Total revenues $ 436,672 $ 409,582 $ 377,723 $ 345,430 $ 323,427 $ 305,266 $ 282,696 $ 250,957 Operating loss (106,235 ) (109,884 ) (86,897 ) (73,649 ) (73,441 ) (70,174 ) (67,640 ) (53,404 ) Net loss (105,565 ) (114,066 ) (108,025 ) (80,622 ) (81,128 ) (77,811 ) (69,421 ) (61,558 ) Net loss per share, basic and diluted (0.52 ) (0.57 ) (0.55 ) (0.41 ) (0.42 ) (0.41 ) (0.37 ) (0.33 ) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year ends on January 31. References to fiscal 2017 , for example, refer to the year ended January 31, 2017 . |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the results of Workday, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the determination of the relative selling prices for our services, certain assumptions used in the valuation of equity awards and the fair value of assets acquired and liabilities assumed through business combinations. Actual results could differ from those estimates and such differences could be material to our consolidated financial position and results of operations. |
Segment Information | Segment Information We operate in one operating segment, cloud applications. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our chief executive officer, in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription services fees and from professional services fees, including training. We sell subscriptions to our cloud applications through contracts that are generally three years or more in length. Our arrangements are generally non-cancelable. Our subscription contracts do not provide customers with the right to take possession of the software supporting the applications and, as a result, are accounted for as service contracts. We commence revenue recognition for our cloud applications and professional services when all of the following criteria are met: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • Collection of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. Subscription Services Revenues Subscription services revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer, assuming all revenue recognition criteria have been met. Professional Services Revenues Professional services revenues are generally recognized as the services are rendered for time and materials contracts, or on a proportional performance basis for fixed price contracts. The majority of our professional services contracts are on a time and materials basis. Training revenues are recognized as the services are rendered. Multiple Deliverable Arrangements For arrangements with multiple deliverables, we evaluate whether the individual deliverables qualify as separate units of accounting. In order to treat deliverables in a multiple deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, we account for each deliverable separately and revenue is recognized for the respective deliverables as they are delivered. Subscription contracts have standalone value as we sell the subscriptions separately. All of our professional services have standalone value and can be accounted for separately from subscription services, given the availability of the professional services from other vendors, the nature of our professional services and ongoing sales of our applications to new customers without professional services. When multiple deliverables included in an arrangement are separable into different units of accounting, the arrangement consideration is allocated to the identified separate units of accounting based on their relative selling price. Multiple deliverable arrangement accounting guidance provides a hierarchy when determining the relative selling price for each unit of accounting. Vendor-specific objective evidence ("VSOE") of selling price, based on the price at which the item is regularly sold by the vendor on a standalone basis, should be used if it exists. If VSOE of selling price is not available, third-party evidence ("TPE") of selling price is used to establish the selling price if it exists. If neither VSOE nor TPE exist for a deliverable, arrangements with multiple deliverables can be separated into discrete units of accounting based on our best estimate of selling price. The amount of arrangement fee allocated is limited by contingent revenues, if any. We determine the best estimate of selling price for our deliverables based on our overall pricing objectives, taking into consideration market conditions and entity-specific factors. We evaluate our best estimate of selling price by reviewing historical data related to sales of our deliverables, including comparing the percentages of our contract prices to our list prices. We also consider several other data points in our evaluation, including the size of our arrangements, the cloud applications sold, customer demographics, and the numbers and types of users within our arrangements. |
Fair Value Measurement | Fair Value Measurement We measure our cash equivalents, marketable securities and foreign currency derivative contracts at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase. Our cash equivalents generally consist of investments in U.S. agency obligations, U.S. treasury securities, corporate bonds, commercial paper and money market funds. |
Marketable Securities | Marketable Securities Our marketable securities consist of U.S. agency obligations, U.S. treasury securities, corporate bonds and commercial paper. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our investments, including securities with maturities beyond twelve months , as current assets in the accompanying consolidated balance sheets. All marketable securities are recorded at their estimated fair value. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive income (loss). We evaluate our investments to assess whether those with unrealized loss positions are other-than-temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other-than-temporary are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations. When quoted prices for identical instruments are available in an active market, marketable securities are classified within Level 1 of the fair value hierarchy. If quoted prices for identical instruments in active markets are not available, fair values are estimated using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy. To date, all of our marketable securities can be valued using one of these two methodologies. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. For all periods presented, the allowance for doubtful accounts activity was not significant. |
Deferred Commissions | Deferred Commissions Sales commissions earned by our sales force are considered to be direct sales commissions when they can be associated specifically with a non-cancelable subscription contract. Direct sales commissions are deferred when earned and amortized over the same period that revenues are recognized for the related non-cancelable subscription contract. The commission payments are paid in full after the customer has paid for its first year of service. Amortization of deferred commissions is included in Sales and marketing in the accompanying consolidated statements of operations. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We use derivative financial instruments to manage foreign currency risks (see Note 9). We account for these instruments in accordance with Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging , which requires that every derivative instrument be recorded on the consolidated balance sheets as either an asset or liability measured at its fair value as of the reporting date. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For foreign currency forward contracts not designated as hedging instruments, which we use to hedge a portion of our net outstanding monetary assets and liabilities, the gains or losses are recorded in Other expense, net in the consolidated statements of operations in the period of change. For a derivative instrument designated as a cash flow hedge, which we use to hedge certain customer contracts denominated in foreign currencies, the change in fair value on the effective portion is recorded to Accumulated other comprehensive income (loss) ("OCI") in our consolidated balance sheets each reporting period. The balance in OCI is subsequently reclassified to the related revenue line item in the consolidated statements of operations in the same period that the underlying revenues are earned. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the related lease term. Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. |
Business Combinations | Business Combinations We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. 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 our consolidated statements of operations. |
Goodwill and Acquisition-Related Intangible Assets | Goodwill and Acquisition-Related Intangible Assets Acquisition-related intangible assets with a finite life are typically amortized over useful lives of three to four years. Goodwill amounts are not amortized, but rather tested for impairment at least annually, and more frequently upon the occurrence of certain events. We completed our annual impairment test in our fourth quarter, which did not result in any impairment of the goodwill balance. |
Unearned Revenue | Unearned Revenue Unearned revenue primarily consists of customer billings in advance of revenues being recognized from our subscription contracts. We generally invoice our customers for our subscription contracts in annual installments. Our typical payment terms provide that customers pay a portion of the total arrangement fee within 30 days of the contract date. Unearned revenue that is anticipated to be recognized during the succeeding twelve -month period is recorded as current unearned revenue and the remaining portion is recorded as noncurrent. |
Convertible Senior Notes | Convertible Senior Notes In June 2013, we issued 0.75% convertible senior notes due July 15, 2018 ("2018 Notes") with a principal amount of $350 million . Concurrently, we issued 1.50% convertible senior notes due July 15, 2020 ("2020 Notes") with a principal amount of $250 million (together with the 2018 Notes, referred to as "the Notes"). In accounting for the Notes, we separated them into liability and equity components. The carrying amount of the liability components were calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity components representing the conversion options were determined by deducting the fair value of the liability component from the par value of the Notes as a whole. These differences represent debt discounts that are amortized to interest expense over the terms of the Notes. The equity components are not remeasured as long as they continue to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, we allocated the total amount incurred to the liability and equity components. Issuance costs attributable to the liability components are being amortized to expense over the respective terms of the Notes, and issuance costs attributable to the equity components were netted with the respective equity component in additional paid-in capital. |
Advertising Expenses | Advertising Expenses Advertising is expensed as incurred. |
Share-Based Compensation | Share-Based Compensation All share-based compensation to employees is measured based on the grant-date fair value of the awards and recognized in our consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award). We estimate the fair value of stock options granted and shares issued under our employee stock purchase plan using the Black-Scholes option-pricing model. For restricted stock awards and units and performance-based restricted stock units, fair value is based on the closing price of our common stock on the grant date. Compensation expense is generally recognized over the vesting period of the applicable award using the straight-line method. Compensation expense for non-employee stock options is calculated using the Black-Scholes option-pricing model and is recorded as the options vest. Non-employee options subject to vesting are required to be periodically revalued over their service period, which is generally the same as the vesting period. |
Income Taxes | Income Taxes We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. |
Warranties and Indemnification | Warranties and Indemnification Our cloud applications are generally warranted to perform materially in accordance with our online documentation under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our cloud applications infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements, as a result of these obligations. We have entered into service-level agreements with a majority of our customers committing to defined levels of service availability and performance and permitting those customers to receive credits or refunds for prepaid amounts related to unused subscription services or to terminate their agreements in the event that we fail to meet those levels. To date, we have not experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, we have not accrued any liabilities related to these agreements in the consolidated financial statements. |
Foreign Currency Exchange | Foreign Currency Exchange The functional currency for certain of our foreign subsidiaries is the U.S. dollar, while others use local currencies. We translate the foreign functional currency financial statements to U.S dollars for those entities that do not have U.S. dollars as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in OCI as a component of stockholders' equity, and related periodic movements are summarized as a line item in our consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in Other expense, net on the consolidated statements of operations for the period. |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Our deposits exceed federally insured limits. No single customer represented over 10% of accounts receivable in the consolidated financial statements as of January 31, 2017 or 2016 . No single customer represented over 10% of total revenues for any of the periods in the consolidated financial statements. In order to reduce the risk of down-time of our cloud applications, we have established data centers in various geographic regions. We have internal procedures to restore services in the event of disaster at one of our current data center facilities. We serve our customers and users from data center facilities operated by third parties, located in Ashburn, Virginia; Atlanta, Georgia; Portland, Oregon; Dublin, Ireland; and Amsterdam, the Netherlands. Even with these procedures for disaster recovery in place, our cloud applications could be significantly interrupted during the implementation of the procedures to restore services. In addition, we rely on Amazon Web Services ("AWS"), which provides a distributed computing infrastructure platform for business operations, to operate certain aspects of our services, such as environments for development testing, training and sales demonstrations. Any disruption of or interference with our use of AWS would impact our operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("Topic 606"). Topic 606 supersedes the revenue recognition requirements in ASU Topic 605, Revenue Recognition ("Topic 605"), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which discusses the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. Collectively, we refer to Topic 606 and Subtopic 340-40 as the “new standard.” The new standard must be adopted by Workday in our fiscal year beginning February 1, 2018, with early adoption permitted effective in our fiscal year beginning February 1, 2017. The two permitted transition methods under the new standard are the full retrospective method, in which the new standard would be applied to each prior reporting period presented and the cumulative effect of applying the new standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the new standard would be recognized at the date of initial application. We have closely assessed the new standard and monitored FASB activity, including the interpretations by the FASB Transition Resource Group for Revenue Recognition, throughout fiscal 2017. In the fourth quarter of fiscal 2017, we finalized our assessment of the new standard, including completing our contract reviews and our evaluation of the incremental costs of obtaining a contract. Based on our assessment, we decided to early adopt the requirements of the new standard in the first quarter of fiscal 2018, utilizing the full retrospective method of transition. The impact of adopting the new standard on our fiscal 2017 and fiscal 2016 revenues is not material. The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, we deferred only direct and incremental commission costs to obtain a contract and amortized those costs over the term of the related subscription contract, which was generally three years. Under the new standard, we defer all incremental commission costs to obtain the contract. We amortize these costs over a period of benefit that we have determined to be five years. Select consolidated statement of operations line items, which reflect the adoption of the new standard are as follows (in thousands): Year Ended January 31, 2017 2016 Revenues: Subscription services $ 1,290,733 $ 920,196 Professional services 283,707 236,494 Total revenues 1,574,440 1,156,690 Costs and expenses: Sales and marketing 565,328 413,530 Operating loss (353,086 ) (249,789 ) Net loss $ (384,699 ) $ (275,048 ) Select consolidated balance sheet line items, which reflect the adoption of the new standard are as follows (in thousands): January 31, 2017 Assets Trade and other receivables, net $ 409,780 Prepaid expenses and other current assets 66,590 Deferred costs 51,330 Deferred costs, noncurrent 117,249 Liabilities Unearned revenue $ 1,086,212 Unearned revenue, noncurrent 135,331 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 Leases . The guidance is effective for our fiscal year beginning February 1, 2019. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) , which simplifies the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, and classification in the statement of cash flows. The guidance is effective for our fiscal year beginning February 1, 2017. We will adopt this standard in the first quarter of fiscal 2018. We are in the process of evaluating the transition and disclosure requirements of the standard. We expect the cumulative-effect adjustment to be immaterial on the adoption date. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to the issuance of this ASU, existing guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. We are evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) , which requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for our fiscal year beginning February 1, 2018. Early adoption is permitted. The amendments will be applied using a retrospective transition method to each period presented. We are in the process of evaluating the transition and disclosure requirements of the standard and we anticipate the adoption will not have a significant impact on our consolidated statements of cash flows. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | Select consolidated statement of operations line items, which reflect the adoption of the new standard are as follows (in thousands): Year Ended January 31, 2017 2016 Revenues: Subscription services $ 1,290,733 $ 920,196 Professional services 283,707 236,494 Total revenues 1,574,440 1,156,690 Costs and expenses: Sales and marketing 565,328 413,530 Operating loss (353,086 ) (249,789 ) Net loss $ (384,699 ) $ (275,048 ) Select consolidated balance sheet line items, which reflect the adoption of the new standard are as follows (in thousands): January 31, 2017 Assets Trade and other receivables, net $ 409,780 Prepaid expenses and other current assets 66,590 Deferred costs 51,330 Deferred costs, noncurrent 117,249 Liabilities Unearned revenue $ 1,086,212 Unearned revenue, noncurrent 135,331 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | At January 31, 2017 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 908,874 $ 179 $ (535 ) $ 908,518 U.S. treasury securities 192,028 48 (25 ) 192,051 Corporate bonds 290,272 42 (429 ) 289,885 Commercial paper 323,106 — — 323,106 Money market funds 24,425 — — 24,425 $ 1,738,705 $ 269 $ (989 ) $ 1,737,985 Included in cash and cash equivalents $ 281,163 $ — $ — $ 281,163 Included in marketable securities $ 1,457,542 $ 269 $ (989 ) $ 1,456,822 At January 31, 2016 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. agency obligations $ 1,018,513 $ 127 $ (405 ) $ 1,018,235 U.S. treasury securities 338,736 70 (141 ) 338,665 Corporate bonds 135,065 36 (18 ) 135,083 Commercial paper 177,390 — (1 ) 177,389 Money market funds 148,961 — — 148,961 $ 1,818,665 $ 233 $ (565 ) $ 1,818,333 Included in cash and cash equivalents $ 148,961 $ — $ — $ 148,961 Included in marketable securities $ 1,669,704 $ 233 $ (565 ) $ 1,669,372 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Information about Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2017 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 908,518 $ — $ 908,518 U.S. treasury securities 192,051 — — 192,051 Corporate bonds — 289,885 — 289,885 Commercial paper — 323,106 — 323,106 Money market funds 24,425 — — 24,425 Foreign currency derivative assets — 7,909 — 7,909 Total assets $ 216,476 $ 1,529,418 $ — $ 1,745,894 Foreign currency derivative liabilities $ — $ 2,127 $ — $ 2,127 Total liabilities $ — $ 2,127 $ — $ 2,127 The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis and their assigned levels within the valuation hierarchy as of January 31, 2016 (in thousands): Description Level 1 Level 2 Level 3 Total U.S. agency obligations $ — $ 1,018,235 $ — $ 1,018,235 U.S. treasury securities 338,665 — — 338,665 Corporate bonds — 135,083 — 135,083 Commercial paper — 177,389 — 177,389 Money market funds 148,961 — — 148,961 Foreign currency derivative assets — 5,300 — 5,300 Total assets $ 487,626 $ 1,336,007 $ — $ 1,823,633 Foreign currency derivative liabilities $ — $ 154 $ — $ 154 Total liabilities $ — $ 154 $ — $ 154 |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value in the consolidated balance sheets (in thousands): January 31, 2017 January 31, 2016 Net Carrying Amount before unamortized debt issuance costs Estimated Fair Value Net Carrying Amount before unamortized debt issuance costs Estimated Fair Value 0.75% Convertible senior notes $ 325,620 $ 402,259 $ 310,013 $ 362,250 1.50% Convertible senior notes 213,180 310,470 203,923 264,063 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net consisted of the following (in thousands): January 31, 2017 2016 Land $ 6,592 $ — Buildings 115,302 4,280 Computers, equipment and software 323,311 230,705 Computers, equipment and software acquired under capital leases 18,298 24,400 Furniture and fixtures 24,462 18,894 Leasehold improvements 108,673 86,282 Property and equipment, gross (1) 596,638 364,561 Less accumulated depreciation and amortization (230,761 ) (150,403 ) Property and equipment, net $ 365,877 $ 214,158 (1) Property and equipment, gross includes construction-in-progress for owned real estate projects of $115 million and $4 million that has not yet been placed in service as of January 31, 2017 and 2016, respectively. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of assets acquired and liabilities assumed in the business combinations during fiscal 2017 (in thousands): Cash and cash equivalents $ 3,390 Other tangible assets 3,466 Acquired developed technology 45,039 Customer relationship assets 1,000 Accounts payable and other liabilities (3,256 ) Unearned revenue (6,000 ) Net assets acquired 43,639 Goodwill 107,658 Total purchase consideration $ 151,297 |
Acquisition-related Intangibl34
Acquisition-related Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Acquired Assets | Acquisition-related intangible assets, net consisted of the following (in thousands): January 31, 2017 2016 Acquired developed technology $ 64,900 $ 20,461 Customer relationship assets 1,000 338 65,900 20,799 Less accumulated amortization (17,113 ) (5,308 ) Acquisition-related intangible assets, net $ 48,787 $ 15,491 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of January 31, 2017 , our future estimated amortization expense related to the acquired land leasehold interest and technology patents are as follows (in thousands): Fiscal Period: 2018 $ 889 2019 520 2020 463 2021 301 2022 209 Thereafter 9,392 Total $ 11,774 |
Developed Technology and Customer Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of January 31, 2017 , our future estimated amortization expense related to the acquired developed technology and customer relationship assets is as follows (in thousands): Fiscal Period: 2018 $ 19,286 2019 18,904 2020 10,281 2021 316 Total $ 48,787 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): January 31, 2017 2016 Cost method investments $ 14,004 $ 28,742 Acquired land leasehold interest, net 9,676 9,781 Technology patents, net 2,098 3,020 Other 27,792 16,195 Total $ 53,570 $ 57,738 |
Summary of Future Estimated Amortization Expense Related to Acquired Leasehold Interest and Patents | As of January 31, 2017 , our future estimated amortization expense related to the acquired land leasehold interest and technology patents are as follows (in thousands): Fiscal Period: 2018 $ 889 2019 520 2020 463 2021 301 2022 209 Thereafter 9,392 Total $ 11,774 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of outstanding derivative instruments were as follows (in thousands): Consolidated Balance Sheets Location January 31, 2017 2016 Derivative Assets: Foreign currency forward contracts designated as cash flow hedges Prepaid expenses and other current assets and Other assets $ 7,149 $ 4,695 Foreign currency forward contracts not designated as hedges Prepaid expenses and other current assets 760 605 Derivative Liabilities: Foreign currency forward contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 1,605 $ 98 Foreign currency forward contracts not designated as hedges Accrued expenses and other current liabilities 522 56 |
Derivative Instruments, Gain (Loss) | Gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands): Consolidated Statements of Operations and Statements of Comprehensive Loss Locations January 31, 2017 2016 2015 Gains (losses) recognized in OCI (effective portion) (1) Net change in market value of effective foreign currency forward exchange contracts $ 2,145 $ 4,942 $ — Gains (losses) reclassified from OCI into income (effective portion) Revenues 635 3 — Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) Other expense, net 1,386 148 — (1) Of the total effective portion of foreign currency forward contracts designated as cash flow hedges as of January 31, 2017, $3 million is expected to be reclassified out of OCI within the next 12 months. Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands): Consolidated Statements of Operations Location January 31, Derivative Type 2017 2016 2015 Foreign currency forward contracts not designated as hedges Other expense, net $ 662 $ 876 $ 441 |
Offsetting Assets | As of January 31, 2017, information related to these offsetting arrangements was as follows (in thousands): Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Assets Exposed Financial Instruments Cash Collateral Received Derivative Assets Counterparty A $ 982 $ — $ 982 $ (605 ) $ — $ 377 Counterparty B 6,927 — 6,927 (1,522 ) — 5,405 Total $ 7,909 $ — $ 7,909 $ (2,127 ) $ — $ 5,782 |
Offsetting Liabilities | Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Net Liabilities Exposed Financial Instruments Cash Collateral Pledged Derivative Liabilities Counterparty A $ 605 $ — $ 605 $ (605 ) $ — $ — Counterparty B 1,522 — 1,522 (1,522 ) — — Total $ 2,127 $ — $ 2,127 $ (2,127 ) $ — $ — |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes | The Notes, net consisted of the following (in thousands): January 31, 2017 January 31, 2016 2018 Notes 2020 Notes 2018 Notes 2020 Notes Principal amounts: Principal $ 350,000 $ 250,000 $ 350,000 $ 250,000 Unamortized debt discount (1) (24,380 ) (36,820 ) (39,987 ) (46,077 ) Net carrying amount before unamortized debt issuance costs 325,620 213,180 310,013 203,923 Unamortized debt issuance costs (1) (2,050 ) (2,327 ) (3,458 ) (3,002 ) Net carrying amount $ 323,570 $ 210,853 $ 306,555 $ 200,921 Carrying amount of the equity component (2) $ 74,892 $ 66,007 $ 74,892 $ 66,007 (1) Included in the consolidated balance sheets within Convertible senior notes, net and amortized over the remaining lives of the Notes on a straight-line basis as it approximates the effective interest rate method. (2) Included in the consolidated balance sheets within Additional paid-in capital, net of $2 million and $2 million for the 2018 Notes and 2020 Notes, respectively, in equity issuance costs. |
Schedule of Interest Expense Recognized Related to Convertible Senior Notes | The following table sets forth total interest expense recognized related to the 2018 Notes and 2020 Notes (in thousands): Year Ended January 31, 2017 2016 2018 Notes 2020 Notes 2018 Notes 2020 Notes Contractual interest expense $ 2,625 $ 3,750 $ 2,625 $ 3,750 Interest cost related to amortization of debt issuance costs 1,408 675 1,408 675 Interest cost related to amortization of the debt discount 15,607 9,257 14,737 8,698 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments by Year under Non-Cancelable Leases | As of January 31, 2017 , the future minimum payments by year for our non-cancelable leases and computing infrastructure platforms are as follows (in thousands): Operating Operating Computing Infrastructure Platforms 2018 $ 42,686 $ 8,489 $ 6,000 2019 29,048 9,467 7,000 2020 23,100 9,661 10,000 2021 18,060 9,856 11,000 2022 10,611 10,050 14,000 Thereafter 31,683 24,711 49,500 $ 155,188 $ 72,234 $ 97,500 |
Common Stock and Stockholders39
Common Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of information related to stock option activity during fiscal 2017 is as follows (in millions, except share and per share data): Outstanding Weighted- Aggregate Balance as of January 31, 2016 12,862,976 $ 4.21 $ 756 Stock option grants — — Stock options exercised (3,678,415 ) 3.76 Stock options canceled (87,969 ) 9.47 Balance as of January 31, 2017 9,096,592 $ 4.34 $ 716 Vested and expected to vest as of January 31, 2017 9,090,462 $ 4.33 $ 716 Exercisable as of January 31, 2017 8,875,999 $ 4.21 $ 700 |
Summary of Information Related to Restricted Stock Units Activity | A summary of information related to RSU activity during fiscal 2017 is as follows: Number of Shares Weighted-Average Balance as of January 31, 2016 9,211,082 $ 81.48 RSUs granted 6,995,121 75.71 RSUs vested (3,941,895 ) 80.65 RSUs forfeited (761,587 ) 78.59 Balance as of January 31, 2017 11,502,721 $ 78.45 |
Assumptions Used for Periods Presented | The assumptions used for the periods presented were as follows. There were no stock options awarded during fiscal 2017, 2016 and 2015. Year Ended January 31, ESPP 2017 2016 2015 Expected volatility 34.5% – 44.5% 32.0% – 34.2% 32.8% – 37.7% Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.53% – 0.91% 0.26% – 0.51% 0.01% - 0.1% Dividend yield —% —% —% Weighted-average grant date fair value per share $69.00 – 79.30 $67.23 – 71.81 $64.12 – 72.26 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net consisted of the following (in thousands): Year Ended January 31, 2017 2016 2015 Interest income $ 11,303 $ 4,855 $ 2,960 Interest expense (1) (30,103 ) (31,932 ) (31,060 ) Gain from sale of cost method investment 65 3,220 — Impairment of cost method investment (15,000 ) — — Other income (expense) 1,308 (385 ) (2,170 ) Other expense, net $ (32,427 ) $ (24,242 ) $ (30,270 ) (1) Interest expense includes the contractual interest expense related to the 2018 Notes and 2020 Notes and non-cash interest related to amortization of the debt discount and debt issuance costs (see Note 10). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before Provision for Income Taxes | The components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2017 2016 2015 Domestic $ (205,570 ) $ (90,831 ) $ (93,619 ) Foreign (203,522 ) (198,070 ) (152,353 ) Total $ (409,092 ) $ (288,901 ) $ (245,972 ) |
Summary of Provision (Benefit) for Income Taxes | The provision for (benefit from) income taxes consisted of the following (in thousands): Year Ended January 31, 2017 2016 2015 Current: Federal $ 213 $ (2,012 ) $ 90 State 17 489 106 Foreign 3,573 2,869 2,128 Total 3,803 1,346 2,324 Deferred: Federal (466 ) — — State (52 ) — — Foreign (4,099 ) (329 ) (314 ) Total (4,617 ) (329 ) (314 ) Provision for (benefit from) income taxes $ (814 ) $ 1,017 $ 2,010 |
Reconciliation of Income Taxes Computed at Federal Statutory Income Tax Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for (benefit from) income taxes consisted of the following: Year Ended January 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % Effect of: Foreign income at other than U.S. rates (18.1 )% (24.7 )% (22.5 )% Intercompany transactions 4.0 % 4.9 % (0.2 )% Research tax credits 6.0 % 4.9 % 6.9 % State taxes, net of federal benefit — % (0.2 )% (0.1 )% Changes in valuation allowance (20.5 )% (15.8 )% (15.2 )% Stock compensation (5.8 )% (5.1 )% (4.0 )% Other (0.4 )% 0.6 % (0.7 )% 0.2 % (0.4 )% (0.8 )% |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows (in thousands): January 31, 2017 2016 Deferred tax assets: Unearned revenue $ 45,377 $ 35,884 Other reserves and accruals 23,134 21,505 Federal net operating loss carryforwards 110,974 62,580 State and foreign net operating loss carryforwards 25,783 21,521 Property and equipment 24,754 19,518 Share-based compensation 70,642 61,930 Research and development credits 78,283 51,340 Other 23,209 12,892 402,156 287,170 Valuation allowance (330,199 ) (222,760 ) Deferred tax assets, net of valuation allowance 71,957 64,410 Deferred tax liabilities: Intangibles (3,742 ) — Intercompany transactions (62,800 ) (62,951 ) Other prepaid assets (1,079 ) (898 ) (67,621 ) (63,849 ) Net deferred tax assets $ 4,336 $ 561 |
Summary of Reconciliation of Gross Unrecognized Tax Benefit | A reconciliation of the gross unrecognized tax benefit is as follows (in thousands): Year Ended January 31, 2017 2016 2015 Unrecognized tax benefits at the beginning of the period $ 98,460 $ 88,663 $ 77,090 Additions for tax positions taken in prior years 3,981 2,818 3,946 Reductions for tax positions taken in prior years — (881 ) (49 ) Additions for tax positions related to the current year 14,475 9,144 7,676 Reductions related to a lapse of applicable statute of limitations (115 ) (1,284 ) — Unrecognized tax benefits at the end of the period $ 116,801 $ 98,460 $ 88,663 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss attributable to common stockholders per share (in thousands, except per share data): Year Ended January 31, 2017 2016 2015 Class A Class B Class A Class B Class A Class B Basic and diluted net loss attributable to Class A and Class B common stockholders per share: Numerator: Allocation of distributed net loss attributable to common stockholders $ (251,468 ) $ (156,810 ) $ (168,832 ) $ (121,086 ) $ (133,736 ) $ (114,246 ) Denominator: Weighted-average common shares outstanding 122,085 76,129 110,655 79,361 99,070 84,632 Basic and diluted net loss per share $ (2.06 ) $ (2.06 ) $ (1.53 ) $ (1.53 ) $ (1.35 ) $ (1.35 ) |
Anti-dilutive securities excluded from the diluted calculation | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows (in thousands): Year Ended January 31, 2017 2016 2015 Outstanding common stock options 9,097 12,863 16,664 Shares subject to repurchase 110 621 1,164 Unvested restricted stock awards, units, and PRSUs 12,155 9,851 7,283 Shares related to the convertible senior notes 7,261 7,261 7,261 Shares subject to warrants related to the issuance of convertible senior notes 7,261 7,261 7,261 Shares issuable pursuant to the ESPP 485 345 246 36,369 38,202 39,879 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Geographic Area | The following tables set forth revenue by geographic area (in thousands): Year Ended January 31, 2017 2016 2015 United States $ 1,281,848 $ 974,217 $ 657,085 Other countries 287,559 188,129 130,775 Total $ 1,569,407 $ 1,162,346 $ 787,860 Long-Lived Assets We attribute our long-lived assets, which primarily consist of property and equipment, to a country based on the physical location of the assets. The following table sets forth property and equipment by geographic area (in thousands): January 31, 2017 2016 United States $ 321,442 $ 176,398 Ireland 35,720 29,451 Other countries 8,715 8,309 Total $ 365,877 $ 214,158 |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Statements of Operations Data | The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in fiscal 2017 and 2016 (in thousands except per share data): Quarter ended January 31, 2017 October 31, 2016 July 31, 2016 April 30, 2016 January 31, 2016 October 31, 2015 July 31, 2015 April 30, 2015 Consolidated Statements of Operations Data: Total revenues $ 436,672 $ 409,582 $ 377,723 $ 345,430 $ 323,427 $ 305,266 $ 282,696 $ 250,957 Operating loss (106,235 ) (109,884 ) (86,897 ) (73,649 ) (73,441 ) (70,174 ) (67,640 ) (53,404 ) Net loss (105,565 ) (114,066 ) (108,025 ) (80,622 ) (81,128 ) (77,811 ) (69,421 ) (61,558 ) Net loss per share, basic and diluted (0.52 ) (0.57 ) (0.55 ) (0.41 ) (0.42 ) (0.41 ) (0.37 ) (0.33 ) |
Overview and Basis of Present45
Overview and Basis of Presentation (Detail) | 12 Months Ended |
Jan. 31, 2017Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Detail) - USD ($) | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jun. 30, 2013 | |
Accounting Policies [Line Items] | ||||
Subscriptions contract period, years | 3 years | |||
Period to pay portion of total arrangement fee, days | 30 days | |||
Unearned revenue anticipated recognition term, months | 12 months | |||
Advertising expense | $ 35,000,000 | $ 31,000,000 | $ 20,000,000 | |
2018 Notes | ||||
Accounting Policies [Line Items] | ||||
Convertible senior notes, interest rate | 0.75% | 0.75% | 0.75% | |
Convertible Senior Notes, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |
2020 Notes | ||||
Accounting Policies [Line Items] | ||||
Convertible senior notes, interest rate | 1.50% | 1.50% | 1.50% | |
Convertible Senior Notes, principal amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Intangible assets, useful life, years | 3 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Intangible assets, useful life, years | 4 years |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Detail 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Amortization period, acquisition costs | 5 years | |||||||||||
Subscription services | $ 1,287,104 | $ 929,234 | $ 613,328 | |||||||||
Professional services | 282,303 | 233,112 | 174,532 | |||||||||
Total revenues | $ 436,672 | $ 409,582 | $ 377,723 | $ 345,430 | $ 323,427 | $ 305,266 | $ 282,696 | $ 250,957 | 1,569,407 | 1,162,346 | 787,860 | |
Sales and marketing | [1] | 583,874 | 434,056 | 315,840 | ||||||||
Operating loss | (106,235) | (109,884) | (86,897) | (73,649) | (73,441) | (70,174) | (67,640) | (53,404) | (376,665) | (264,659) | (215,702) | |
Net loss | (105,565) | $ (114,066) | $ (108,025) | $ (80,622) | (81,128) | $ (77,811) | $ (69,421) | $ (61,558) | (408,278) | (289,918) | $ (247,982) | |
Prepaid expenses and other current assets | 88,336 | 77,625 | 88,336 | 77,625 | ||||||||
Deferred costs | 27,537 | 21,817 | 27,537 | 21,817 | ||||||||
Deferred costs, noncurrent | 43,310 | 30,074 | 43,310 | 30,074 | ||||||||
Unearned revenue | 1,097,417 | 768,741 | 1,097,417 | 768,741 | ||||||||
Unearned revenue, noncurrent | 135,970 | $ 130,988 | 135,970 | 130,988 | ||||||||
Accounting Standards Update 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Subscription services | 1,290,733 | 920,196 | ||||||||||
Professional services | 283,707 | 236,494 | ||||||||||
Total revenues | 1,574,440 | 1,156,690 | ||||||||||
Sales and marketing | 565,328 | 413,530 | ||||||||||
Operating loss | (353,086) | (249,789) | ||||||||||
Net loss | (384,699) | $ (275,048) | ||||||||||
Trade and other receivables, net | 409,780 | 409,780 | ||||||||||
Prepaid expenses and other current assets | 66,590 | 66,590 | ||||||||||
Deferred costs | 51,330 | 51,330 | ||||||||||
Deferred costs, noncurrent | 117,249 | 117,249 | ||||||||||
Unearned revenue | 1,086,212 | 1,086,212 | ||||||||||
Unearned revenue, noncurrent | $ 135,331 | $ 135,331 | ||||||||||
[1] | Costs and expenses include share-based compensation expenses as follows: Costs of subscription services $20,773 $12,060 $6,053 Costs of professional services $26,833 $19,526 $12,890 Product development $166,529 $109,362 $63,938 Sales and marketing $86,229 $51,617 $29,875 General and administrative $78,265 $57,405 $43,292 |
Marketable Securities (Summary
Marketable Securities (Summary of Marketable Securities) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,738,705 | $ 1,818,665 |
Unrealized Gains | 269 | 233 |
Unrealized Losses | (989) | (565) |
Aggregate Fair Value | 1,737,985 | 1,818,333 |
U.S. agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 908,874 | 1,018,513 |
Unrealized Gains | 179 | 127 |
Unrealized Losses | (535) | (405) |
Aggregate Fair Value | 908,518 | 1,018,235 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192,028 | 338,736 |
Unrealized Gains | 48 | 70 |
Unrealized Losses | (25) | (141) |
Aggregate Fair Value | 192,051 | 338,665 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 290,272 | 135,065 |
Unrealized Gains | 42 | 36 |
Unrealized Losses | (429) | (18) |
Aggregate Fair Value | 289,885 | 135,083 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 323,106 | 177,390 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Aggregate Fair Value | 323,106 | 177,389 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,425 | 148,961 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 24,425 | 148,961 |
Included in cash and cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 281,163 | 148,961 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 281,163 | 148,961 |
Included in marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,457,542 | 1,669,704 |
Unrealized Gains | 269 | 233 |
Unrealized Losses | (989) | (565) |
Aggregate Fair Value | $ 1,456,822 | $ 1,669,372 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Sales of available-for-sale securities | $ 133,292,000 | $ 102,711,000 | $ 53,182,000 |
Included in marketable securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable securities continuous unrealized loss position for more than 12 months | $ 0 |
Fair Value Measurements (Inform
Fair Value Measurements (Information about Assets and Liabilities that are Measured at Fair Value on a Recurring Basis) (Detail) - Recurring - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,745,894 | $ 1,823,633 |
Total liabilities | 2,127 | 154 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 908,518 | 1,018,235 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 192,051 | 338,665 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 289,885 | 135,083 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 323,106 | 177,389 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,425 | 148,961 |
Foreign currency derivative assets and liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,909 | 5,300 |
Total liabilities | 2,127 | 154 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 216,476 | 487,626 |
Total liabilities | 0 | 0 |
Level 1 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 192,051 | 338,665 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 24,425 | 148,961 |
Level 1 | Foreign currency derivative assets and liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,529,418 | 1,336,007 |
Total liabilities | 2,127 | 154 |
Level 2 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 908,518 | 1,018,235 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 289,885 | 135,083 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 323,106 | 177,389 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 2 | Foreign currency derivative assets and liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,909 | 5,300 |
Total liabilities | 2,127 | 154 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Foreign currency derivative assets and liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 | Jun. 30, 2013 |
0.75% Convertible senior notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net Carrying Amount before unamortized debt issuance costs | $ 325,620 | $ 310,013 | |
Estimated Fair Value | $ 402,259 | $ 362,250 | |
Contractual interest rate | 0.75% | 0.75% | 0.75% |
1.50% Convertible senior notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net Carrying Amount before unamortized debt issuance costs | $ 213,180 | $ 203,923 | |
Estimated Fair Value | $ 310,470 | $ 264,063 | |
Contractual interest rate | 1.50% | 1.50% | 1.50% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | Jan. 31, 2017 | Jan. 31, 2016 | Jun. 30, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Closing price of company's common stock, dollars per share | $ 83.09 | ||
2018 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible Senior Notes, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 |
Contractual interest rate | 0.75% | 0.75% | 0.75% |
2020 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible Senior Notes, principal amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Contractual interest rate | 1.50% | 1.50% | 1.50% |
Property and Equipment, Net (Su
Property and Equipment, Net (Summary of Property and Equipment) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 596,638 | $ 364,561 |
Less accumulated depreciation and amortization | (230,761) | (150,403) |
Property, Plant and Equipment, Net | 365,877 | 214,158 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,592 | 0 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 115,302 | 4,280 |
Computers, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 323,311 | 230,705 |
Computers, equipment and software acquired under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,298 | 24,400 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 24,462 | 18,894 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 108,673 | 86,282 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 115,000 | $ 4,000 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Detail) ft² in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 31, 2017USD ($)ft²building | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of buildings purchased | building | 2 | ||
Area of real estate property (in square feet) | ft² | 267 | ||
Depreciation expense | $ | $ 92 | $ 71 | $ 46 |
Depreciation on asset recorded under capital lease | $ | $ 0.1 | $ 3 | $ 9 |
Development Center | |||
Property, Plant and Equipment [Line Items] | |||
Area of real estate property (in square feet) | ft² | 410 |
Business Combinations (Summary
Business Combinations (Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017USD ($)acquistion | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Number of businesses acquired | acquistion | 2 | ||
Payments to acquire businesses, net of cash | $ 147,879 | $ 31,436 | $ 26,317 |
Goodwill | 158,354 | $ 50,325 | |
Fiscal 2017 Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 3,390 | ||
Other tangible assets | 3,466 | ||
Accounts payable and other liabilities | (3,256) | ||
Unearned revenue | (6,000) | ||
Net assets acquired | 43,639 | ||
Goodwill | 107,658 | ||
Total purchase consideration | 151,297 | ||
Acquired developed technology | Fiscal 2017 Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Acquired developed technology | 45,039 | ||
Customer relationship assets | Fiscal 2017 Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Acquired developed technology | $ 1,000 |
Acquisition-related Intangibl56
Acquisition-related Intangible Assets, Net (Schedule of Acquired Assets) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 65,900 | $ 20,799 | |
Less accumulated amortization | (17,113) | (5,308) | |
Acquisition-related intangible assets, net | 48,787 | 15,491 | |
Acquired developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 64,900 | 20,461 | |
Amortization of intangible assets | 13,000 | 3,000 | $ 1,000 |
Customer relationship assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,000 | $ 338 |
Acquisition-related Intangibl57
Acquisition-related Intangible Assets, Net (Schedule of Future Amortization Expense) (Detail) - Acquired developed technology $ in Thousands | Jan. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |
2,018 | $ 19,286 |
2,019 | 18,904 |
2,020 | 10,281 |
2,021 | 316 |
Total | $ 48,787 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost method investments | $ 14,004 | $ 28,742 |
Acquired land leasehold interest, net | 9,676 | 9,781 |
Other | 27,792 | 16,195 |
Total | 53,570 | 57,738 |
Technology patents, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Technology patents, net | $ 2,098 | $ 3,020 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Impairment of cost method investment | $ 15,000 | $ 0 | $ 0 |
Other Assets (Summary of Future
Other Assets (Summary of Future Estimated Amortization Expense Related to Acquired Land Leasehold Interest and Technology Patents) (Detail) - Acquired Land Leasehold Interest And Technology Patents $ in Thousands | Jan. 31, 2017USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | $ 889 |
2,019 | 520 |
2,020 | 463 |
2,021 | 301 |
2,021 | 209 |
Thereafter | 9,392 |
Total | $ 11,774 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) - Forward Contracts - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 252 | $ 133 |
Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 25 months | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 51 | $ 22 |
Not Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Derivative, remaining maturity | 15 months |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Values of Outstanding Derivative Instruments) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 7,909 | |
Derivative Liabilities | 2,127 | |
Forward Contracts | Designated as Hedging Instrument | Prepaid expenses and other current assets and Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7,149 | $ 4,695 |
Forward Contracts | Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,605 | 98 |
Forward Contracts | Not Designated as Hedging Instrument | Prepaid expenses and other current assets and Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 760 | 605 |
Forward Contracts | Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 522 | $ 56 |
Derivative Instruments (Gains (
Derivative Instruments (Gains (losses) Associated with Foreign Currency Forward Contracts) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments, gain (loss) expected to be reclassified from accumulated OCI within the next 12 months | $ 3,000 | ||
Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency forward contracts not designated as hedges | 662 | $ 876 | $ 441 |
Designated as Hedging Instrument | Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from OCI into income (effective portion) | 635 | 3 | 0 |
Designated as Hedging Instrument | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion) | 1,386 | 148 | 0 |
Designated as Hedging Instrument | Net change in market value of effective foreign currency forward exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in OCI (effective portion) | $ 2,145 | $ 4,942 | $ 0 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets) (Detail) $ in Thousands | Jan. 31, 2017USD ($) |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | $ 7,909 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 7,909 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (2,127) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 5,782 |
Counterparty A | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 982 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 982 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (605) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | 377 |
Counterparty B | |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | 6,927 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 6,927 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (1,522) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received | 0 |
Net Assets Exposed | $ 5,405 |
Derivative Instruments (Offse65
Derivative Instruments (Offsetting Liabilities) (Detail) $ in Thousands | Jan. 31, 2017USD ($) |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | $ 2,127 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 2,127 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (2,127) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | 0 |
Counterparty A | |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | 605 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 605 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (605) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | 0 |
Counterparty B | |
Offsetting Liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | 1,522 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | 1,522 |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments | (1,522) |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged | 0 |
Net Liabilities Exposed | $ 0 |
Convertible Senior Notes, Net66
Convertible Senior Notes, Net (Detail) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Jan. 31, 2017USD ($)Trading_day$ / sharesshares | Jan. 31, 2016USD ($) | Jun. 30, 2013USD ($) | |
2018 Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest rate | 0.75% | 0.75% | 0.75% |
Convertible Senior Notes, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 |
Debt issuance costs | 7,000,000 | ||
Equity issuance costs | 2,000,000 | 2,000,000 | |
Amortization expense for debt issuance costs | $ 1,408,000 | $ 1,408,000 | |
Remaining life of the notes, months | 17 months | ||
Effective interest rates of the liability components, percentage | 5.75% | ||
2018 Notes | Class A Common Stock | |||
Debt Instrument [Line Items] | |||
Initial conversion rate | 12.0075 | ||
Principal amount converted into Class A Common Stock | $ 1,000 | ||
Initial conversion price (in dollars per share) | $ / shares | $ 83.28 | ||
2020 Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest rate | 1.50% | 1.50% | 1.50% |
Convertible Senior Notes, principal amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Debt issuance costs | 5,000,000 | ||
Equity issuance costs | 2,000,000 | 2,000,000 | |
Amortization expense for debt issuance costs | $ 675,000 | $ 675,000 | |
Remaining life of the notes, months | 41 months | ||
Effective interest rates of the liability components, percentage | 6.25% | ||
2020 Notes | Class A Common Stock | |||
Debt Instrument [Line Items] | |||
Initial conversion rate | 12.2340 | ||
Principal amount converted into Class A Common Stock | $ 1,000 | ||
Initial conversion price (in dollars per share) | $ / shares | $ 81.74 | ||
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Repurchase of notes percentage | 100.00% | ||
Exercise price of warrants, dollars per share | $ / shares | $ 107.96 | ||
Proceeds from sale of warrants | $ 93,000,000 | ||
Convertible Senior Notes | Shares issuable pursuant to the Purchased Options | |||
Debt Instrument [Line Items] | |||
Shares covered by each purchased option/warrant, shares | shares | 7.3 | ||
Aggregate amount paid for Purchased Options | $ 144,000,000 | ||
Convertible Senior Notes | Debt Conversion, Option One | |||
Debt Instrument [Line Items] | |||
Threshold trading days (in trading days) | Trading_day | 20 | ||
Threshold consecutive trading days | 30 days | ||
Threshold percentage of conversion price | 130.00% | ||
Convertible Senior Notes | Debt Conversion, Option Two | |||
Debt Instrument [Line Items] | |||
Threshold consecutive trading days | 5 days | ||
Convertible Senior Notes | Debt Conversion, Option Two | Maximum | |||
Debt Instrument [Line Items] | |||
Threshold percentage of conversion price | 98.00% | ||
Warrants expires In July 2018 | |||
Debt Instrument [Line Items] | |||
Shares covered by each purchased option/warrant, shares | shares | 4.2 | ||
Warrants expires In July 2020 | |||
Debt Instrument [Line Items] | |||
Shares covered by each purchased option/warrant, shares | shares | 3.1 |
Convertible Senior Notes, Net67
Convertible Senior Notes, Net (Schedule of Senior Notes) (Detail) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jun. 30, 2013 | |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 534,423,000 | $ 507,476,000 | |
2018 Notes | |||
Debt Instrument [Line Items] | |||
Principal | 350,000,000 | 350,000,000 | $ 350,000,000 |
Unamortized debt discount | (24,380,000) | (39,987,000) | |
Net carrying amount before unamortized debt issuance costs | 325,620,000 | 310,013,000 | |
Unamortized debt issuance costs | (2,050,000) | (3,458,000) | |
Net carrying amount | 323,570,000 | 306,555,000 | |
Carrying amount of the equity component | 74,892,000 | 74,892,000 | |
Equity issuance costs | 2,000,000 | 2,000,000 | |
2020 Notes | |||
Debt Instrument [Line Items] | |||
Principal | 250,000,000 | 250,000,000 | $ 250,000,000 |
Unamortized debt discount | (36,820,000) | (46,077,000) | |
Net carrying amount before unamortized debt issuance costs | 213,180,000 | 203,923,000 | |
Unamortized debt issuance costs | (2,327,000) | (3,002,000) | |
Net carrying amount | 210,853,000 | 200,921,000 | |
Carrying amount of the equity component | 66,007,000 | 66,007,000 | |
Equity issuance costs | $ 2,000,000 | $ 2,000,000 |
Convertible Senior Notes, Net68
Convertible Senior Notes, Net (Schedule of Interest Expense Recognized Related to Convertible Senior Notes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||
Interest cost related to amortization of the debt discount | $ 26,947 | $ 25,518 | $ 24,171 |
2018 Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 2,625 | 2,625 | |
Interest cost related to amortization of debt issuance costs | 1,408 | 1,408 | |
Interest cost related to amortization of the debt discount | 15,607 | 14,737 | |
2020 Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 3,750 | 3,750 | |
Interest cost related to amortization of debt issuance costs | 675 | 675 | |
Interest cost related to amortization of the debt discount | $ 9,257 | $ 8,698 |
(Narrative) (Detail)
(Narrative) (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2014USD ($)a | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 72 | $ 46 | $ 30 | |
Lease term period, in years | 95 years | |||
Parcel of vacant land | a | 6.9 | |||
Lease rent, prepaid | $ 2 | |||
Annual rent payments, beginning in 2021 | $ 0.2 |
Commitments and Contingencies70
Commitments and Contingencies (Future Minimum Lease Payments by Year under Non-Cancelable Leases) (Detail) $ in Thousands | Jan. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 42,686 |
2,019 | 29,048 |
2,020 | 23,100 |
2,021 | 18,060 |
2,022 | 10,611 |
Thereafter | 31,683 |
Operating leases | 155,188 |
Computing Infrastructure Platforms | |
Operating Leased Assets [Line Items] | |
2,018 | 6,000 |
2,019 | 7,000 |
2,020 | 10,000 |
2,021 | 11,000 |
2,022 | 14,000 |
Thereafter | 49,500 |
Operating leases | 97,500 |
Related Party | |
Operating Leased Assets [Line Items] | |
2,018 | 8,489 |
2,019 | 9,467 |
2,020 | 9,661 |
2,021 | 9,856 |
2,022 | 10,050 |
Thereafter | 24,711 |
Operating leases | $ 72,234 |
Common Stock and Stockholders71
Common Stock and Stockholders' Equity (Narrative) (Detail) | Mar. 31, 2016shares | Apr. 30, 2016shares | Jan. 31, 2017USD ($)vote / shares$ / sharesshares | Jan. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2015USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options exercised liability recorded | $ | $ 800,000 | $ 3,000,000 | |||
Employee Stock Purchase Plan (ESPP) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share reserve increased, shares | 2,000,000 | ||||
Common stock available for future grants, shares | 6,000,000 | ||||
Percentage of fair market value of stock at which employees are granted shares | 85.00% | ||||
Weighted-average purchase price, dollars per share | $ / shares | $ 63.09 | ||||
Cash proceeds | $ | $ 44,000,000 | ||||
Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock outstanding, shares | 127,000,000 | 116,000,000 | |||
Common stock, votes per share | vote / shares | 1 | ||||
Class A Common Stock | 2012 Equity Incentive Plan (EIP) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share reserve increased, shares | 10,000,000 | ||||
Common stock available for future grants, shares | 58,000,000 | ||||
Class A Common Stock | Employee Stock Purchase Plan (ESPP) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares purchased by employees, shares | 700,000 | ||||
Class B Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock outstanding, shares | 76,000,000 | 79,000,000 | |||
Common stock, votes per share | vote / shares | 10 | ||||
Percent of shares of common stock less than 9% of the outstanding shares | 9.00% | ||||
Duration of time after death of Co-Founders until shares are converted, months | 9 months | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum exercise period, years | 10 years | ||||
Vesting period, years | 5 years | ||||
Total grant-date fair value of stock options vested | $ | $ 14,000,000 | $ 17,000,000 | $ 20,000,000 | ||
Total intrinsic value of the options exercised | $ | $ 273,000,000 | 279,000,000 | 311,000,000 | ||
Weighted-average remaining contractual life of vested and expected to vest options, years | 4 years 2 months 12 days | ||||
Unrecognized compensation cost | $ | $ 4,000,000 | ||||
Weighted-average period to be recognized, years | 7 months 6 days | ||||
Weighted-average remaining contractual life of exercisable options, years | 4 years 2 months 12 days | ||||
Weighted-average remaining contractual life of outstanding options, years | 4 years 2 months 12 days | ||||
Restricted Stock Units (RSU) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, years | 4 years | ||||
Total grant-date fair value of stock options vested | $ | $ 303,000,000 | $ 162,000,000 | $ 90,000,000 | ||
Weighted-average period to be recognized, years | 2 years 8 months 12 days | ||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 75.71 | $ 85.29 | $ 81.65 | ||
Unrecognized compensation cost | $ | $ 762,000,000 | ||||
Number of shares granted, (in shares) | 6,995,121 | ||||
Chairman, CEO, Certain Executive Management | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, years | 4 years | ||||
Unrecognized compensation cost | $ | $ 0 | ||||
Number of shares granted, (in shares) | 100,000 | ||||
All Other Employees | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period to be recognized, years | 1 month 15 days | ||||
Unrecognized compensation cost | $ | $ 6,000,000 | ||||
Number of shares granted, (in shares) | 300,000 |
Common Stock and Stockholders72
Common Stock and Stockholders' Equity (Summary of Combined Activity Under 2005 Stock Plan and EIP) (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Jan. 31, 2017USD ($)$ / sharesshares | |
Outstanding Stock Options | |
Beginning Balance (in shares) | shares | 12,862,976 |
Stock option grants (in shares) | shares | 0 |
Stock options exercised (in shares) | shares | (3,678,415) |
Stock options canceled (in shares) | shares | (87,969) |
Ending Balance (in shares) | shares | 9,096,592 |
Vested and expected to vest ( in shares) | shares | 9,090,462 |
Exercisable (in shares) | shares | 8,875,999 |
Weighted- Average Exercise Price | |
Beginning Balance (in usd per share) | $ / shares | $ 4.21 |
Stock option grants (in usd per share) | $ / shares | 0 |
Stock options exercised (in usd per share) | $ / shares | 3.76 |
Stock options canceled (in usd per share) | $ / shares | 9.47 |
Ending Balance (in usd per share) | $ / shares | 4.34 |
Vested and expected to vest, Weighted-Average Exercise Price (in usd per share) | $ / shares | 4.33 |
Exercisable, Weighted-Average Exercise Price (in usd per share) | $ / shares | $ 4.21 |
Beginning Balance, Aggregate Intrinsic Value | $ | $ 756 |
Ending Balance, Aggregate Intrinsic Value | $ | 716 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 716 |
Exercisable, Aggregate Intrinsic Value | $ | $ 700 |
Common Stock and Stockholders73
Common Stock and Stockholders' Equity (Summary of Information Related to Restricted Stock Units Activity) (Detail) - Restricted Stock Units (RSU) - $ / shares | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Restricted Stock Units | |||
Beginning Balance, Number of Shares | 9,211,082 | ||
Restricted stock units granted, Number of Shares | 6,995,121 | ||
Restricted stock units vested, Number of Shares | (3,941,895) | ||
Restricted stock units forfeited, Number of Shares | (761,587) | ||
Ending Balance, Number of Shares | 11,502,721 | 9,211,082 | |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance (in usd per share) | $ 81.48 | ||
Restricted stock units granted (in usd per share) | 75.71 | $ 85.29 | $ 81.65 |
Restricted stock units vested (in usd per share) | 80.65 | ||
Restricted stock units forfeited (in usd per share) | 78.59 | ||
Ending Balance (in usd per share) | $ 78.45 | $ 81.48 |
Common Stock and Stockholders74
Common Stock and Stockholders' Equity (Assumptions Used for Periods Presented) (Detail) - ESPP - $ / shares | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, Minimum | 34.50% | 32.00% | 32.80% |
Expected volatility, Maximum | 44.50% | 34.20% | 37.70% |
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate, Minimum | 0.53% | 0.26% | 0.01% |
Risk-free interest rate, Maximum | 0.91% | 0.51% | 0.10% |
Dividend yield, percentage | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share, dollars per share | $ 69 | $ 67.23 | $ 64.12 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share, dollars per share | $ 79.30 | $ 71.81 | $ 72.26 |
Other Expense, Net (Detail)
Other Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 11,303 | $ 4,855 | $ 2,960 |
Interest expense | (30,103) | (31,932) | (31,060) |
Gain from sale of cost method investment | 65 | 3,220 | 0 |
Impairment of cost method investment | (15,000) | 0 | 0 |
Other income (expense) | 1,308 | (385) | (2,170) |
Other expense, net | $ (32,427) | $ (24,242) | $ (30,270) |
Income Taxes (Components of Inc
Income Taxes (Components of Income (Loss) before Provision for Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (205,570) | $ (90,831) | $ (93,619) |
Foreign | (203,522) | (198,070) | (152,353) |
Loss before provision for (benefit from) income taxes | $ (409,092) | $ (288,901) | $ (245,972) |
Income Taxes (Summary of Provis
Income Taxes (Summary of Provision (Benefit) for Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Current: | |||
Federal | $ 213 | $ (2,012) | $ 90 |
State | 17 | 489 | 106 |
Foreign | 3,573 | 2,869 | 2,128 |
Total | 3,803 | 1,346 | 2,324 |
Deferred: | |||
Federal | (466) | 0 | 0 |
State | (52) | 0 | 0 |
Foreign | (4,099) | (329) | (314) |
Total | (4,617) | (329) | (314) |
Provision for (benefit from) income taxes | $ (814) | $ 1,017 | $ 2,010 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Taxes Computed at Federal Statutory Income Tax Rate and Provision for Income Taxes) (Detail) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Effect of: | |||
Foreign income at other than U.S. rates | (18.10%) | (24.70%) | (22.50%) |
Intercompany transactions | 4.00% | 4.90% | (0.20%) |
Research tax credits | 6.00% | 4.90% | 6.90% |
State taxes, net of federal benefit | 0.00% | (0.20%) | (0.10%) |
Changes in valuation allowance | (20.50%) | (15.80%) | (15.20%) |
Stock compensation | (5.80%) | (5.10%) | (4.00%) |
Other | (0.40%) | 0.60% | (0.70%) |
Total | 0.20% | (0.40%) | (0.80%) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Tax Credit Carryforward [Line Items] | ||||
Recognized income tax benefit, release of valuation allowance | $ 4,000 | |||
Unrecorded excess stock option tax benefits | 448,000 | |||
Valuation allowance | (330,199) | $ (222,760) | ||
Increase of valuation allowance on net deferred tax assets | 107,000 | 46,000 | ||
Net operating loss carryforwards | 1,500,000 | |||
Accrued interest | 100 | 1,000 | ||
Accrued penalty | 100 | 1,000 | ||
Unrecognized tax benefits | 116,801 | 98,460 | $ 88,663 | $ 77,090 |
Unrecognized tax benefits that would impact effective tax rate | 1,000 | |||
Reductions related to a lapse of applicable statute of limitations | 115 | $ 1,284 | $ 0 | |
Federal | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 71,000 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 991,000 | |||
Foreign | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 67,000 | |||
California | Research Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 70,000 | |||
Interest and Penalties | ||||
Tax Credit Carryforward [Line Items] | ||||
Reductions related to a lapse of applicable statute of limitations | $ 200 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Deferred tax assets: | ||
Unearned revenue | $ 45,377 | $ 35,884 |
Other reserves and accruals | 23,134 | 21,505 |
Federal net operating loss carryforwards | 110,974 | 62,580 |
State and foreign net operating loss carryforwards | 25,783 | 21,521 |
Property and equipment | 24,754 | 19,518 |
Share-based compensation | 70,642 | 61,930 |
Research and development credits | 78,283 | 51,340 |
Other | 23,209 | 12,892 |
Deferred tax asset | 402,156 | 287,170 |
Valuation allowance | (330,199) | (222,760) |
Deferred tax assets, net of valuation allowance | 71,957 | 64,410 |
Deferred tax liabilities: | ||
Intangibles | (3,742) | 0 |
Intercompany transactions | (62,800) | (62,951) |
Other prepaid assets | (1,079) | (898) |
Deferred tax liabilities | (67,621) | (63,849) |
Net deferred tax assets | $ 4,336 | $ 561 |
Income Taxes (Summary of Reconc
Income Taxes (Summary of Reconciliation of Gross Unrecognized Tax Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the period | $ 98,460 | $ 88,663 | $ 77,090 |
Additions for tax positions taken in prior years | 3,981 | 2,818 | 3,946 |
Reductions for tax positions taken in prior years | 0 | (881) | (49) |
Additions for tax positions related to the current year | 14,475 | 9,144 | 7,676 |
Reductions related to a lapse of applicable statute of limitations | (115) | (1,284) | 0 |
Unrecognized tax benefits at the end of the period | $ 116,801 | $ 98,460 | $ 88,663 |
Net Loss Per Share (Summary of
Net Loss Per Share (Summary of Calculation of Basic and Diluted Net Loss Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Numerator: | |||||||||||
Allocation of distributed net loss attributable to common stockholders | $ (408,278) | $ (289,918) | $ (247,982) | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding (in shares) | 198,214 | 190,016 | 183,702 | ||||||||
Basic and diluted net loss per share (dollars per share) | $ (0.52) | $ (0.57) | $ (0.55) | $ (0.41) | $ (0.42) | $ (0.41) | $ (0.37) | $ (0.33) | $ (2.06) | $ (1.53) | $ (1.35) |
Class A Common Stock | |||||||||||
Numerator: | |||||||||||
Allocation of distributed net loss attributable to common stockholders | $ (251,468) | $ (168,832) | $ (133,736) | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding (in shares) | 122,085 | 110,655 | 99,070 | ||||||||
Basic and diluted net loss per share (dollars per share) | $ (2.06) | $ (1.53) | $ (1.35) | ||||||||
Class B Common Stock | |||||||||||
Numerator: | |||||||||||
Allocation of distributed net loss attributable to common stockholders | $ (156,810) | $ (121,086) | $ (114,246) | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding (in shares) | 76,129 | 79,361 | 84,632 | ||||||||
Basic and diluted net loss per share (dollars per share) | $ (2.06) | $ (1.53) | $ (1.35) |
Net Loss Per Share (Summary o83
Net Loss Per Share (Summary of Diluted Net Loss Per Common Share) (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 36,369 | 38,202 | 39,879 |
Outstanding common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 9,097 | 12,863 | 16,664 |
Shares subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 110 | 621 | 1,164 |
Unvested restricted stock awards, units, and PRSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 12,155 | 9,851 | 7,283 |
Shares related to the convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 7,261 | 7,261 | 7,261 |
Shares subject to warrants related to the issuance of convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 7,261 | 7,261 | 7,261 |
Shares issuable pursuant to the ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 485 | 345 | 246 |
Geographic Information (Detail)
Geographic Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 436,672 | $ 409,582 | $ 377,723 | $ 345,430 | $ 323,427 | $ 305,266 | $ 282,696 | $ 250,957 | $ 1,569,407 | $ 1,162,346 | $ 787,860 |
Long-Lived Assets | 365,877 | 214,158 | 365,877 | 214,158 | |||||||
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 1,281,848 | 974,217 | 657,085 | ||||||||
Long-Lived Assets | 321,442 | 176,398 | 321,442 | 176,398 | |||||||
Ireland | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Long-Lived Assets | 35,720 | 29,451 | 35,720 | 29,451 | |||||||
Other countries | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 287,559 | 188,129 | $ 130,775 | ||||||||
Long-Lived Assets | $ 8,715 | $ 8,309 | $ 8,715 | $ 8,309 |
Related-Party Transactions (Det
Related-Party Transactions (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Lease term period, in years | 95 years | |||
Rent due under agreements, 2017 fiscal year | $ 42,686 | |||
Rent due under agreements | $ 155,188 | |||
Management | ||||
Related Party Transaction [Line Items] | ||||
Lease term period, in years | 10 years | |||
Rent due under agreements, 2017 fiscal year | $ 8,000 | |||
Rent due under agreements | 90,000 | |||
Rent expense | $ 8,000 | $ 6,000 | $ 4,000 |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Contributions by employer | $ 6 |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (unaudited) (Consolidated Statements of Operations Data) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Consolidated Statements of Operations Data: | |||||||||||
Total revenues | $ 436,672 | $ 409,582 | $ 377,723 | $ 345,430 | $ 323,427 | $ 305,266 | $ 282,696 | $ 250,957 | $ 1,569,407 | $ 1,162,346 | $ 787,860 |
Operating loss | (106,235) | (109,884) | (86,897) | (73,649) | (73,441) | (70,174) | (67,640) | (53,404) | (376,665) | (264,659) | (215,702) |
Net loss | $ (105,565) | $ (114,066) | $ (108,025) | $ (80,622) | $ (81,128) | $ (77,811) | $ (69,421) | $ (61,558) | $ (408,278) | $ (289,918) | $ (247,982) |
Net loss per share, basic and diluted (dollars per share) | $ (0.52) | $ (0.57) | $ (0.55) | $ (0.41) | $ (0.42) | $ (0.41) | $ (0.37) | $ (0.33) | $ (2.06) | $ (1.53) | $ (1.35) |