Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2019 | Feb. 28, 2019 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2019 | ||
Document Fiscal Year Focus | 2,019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SALESFORCE COM INC | ||
Entity Central Index Key | 1,108,524 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 771,000,000 | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 80 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,669 | $ 2,543 |
Marketable securities | 1,673 | 1,978 |
Accounts receivable, net of allowance for doubtful accounts of $22 and $21 at January 31, 2019 and 2018, respectively | 4,924 | 3,921 |
Costs capitalized to obtain revenue contracts, net | 788 | 671 |
Prepaid expenses and other current assets | 629 | 471 |
Total current assets | 10,683 | 9,584 |
Property and equipment, net | 2,051 | 1,947 |
Costs capitalized to obtain revenue contracts, noncurrent, net | 1,232 | 1,105 |
Capitalized software, net | 152 | 146 |
Strategic investments | 1,302 | 677 |
Goodwill | 12,851 | 7,314 |
Intangible assets acquired through business combinations, net | 1,923 | 827 |
Other assets, net | 543 | 384 |
Total assets | 30,737 | 21,984 |
Current liabilities: | ||
Accounts payable | 165 | 76 |
Accrued compensation | 1,167 | 1,001 |
Accounts payable | 1,356 | 970 |
Unearned revenue | 8,564 | 6,995 |
Current portion of debt | 3 | 1,025 |
Total current liabilities | 11,255 | 10,067 |
Noncurrent debt | 3,173 | 695 |
Other noncurrent liabilities | 704 | 846 |
Total liabilities | 15,132 | 11,608 |
Commitments and contingencies (See Notes 13 and 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized and none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 1,600 shares authorized, 770 and 730 issued and outstanding at January 31, 2019 and 2018, respectively | 1 | 1 |
Additional paid-in capital | 13,927 | 9,752 |
Accumulated other comprehensive loss | (58) | (12) |
Retained earnings | 1,735 | 635 |
Total stockholders’ equity | 15,605 | 10,376 |
Total liabilities and stockholders’ equity | $ 30,737 | $ 21,984 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 22 | $ 21 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 770,000,000 | 730,000,000 |
Common stock, shares outstanding (in shares) | 770,000,000 | 730,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Revenues: | ||||||
Total revenues | $ 13,282 | $ 10,540 | $ 8,437 | |||
Cost of revenues: | ||||||
Total cost of revenues | [1],[2] | 3,451 | 2,773 | 2,234 | ||
Gross profit | 9,831 | 7,767 | 6,203 | |||
Operating expenses: | ||||||
Research and development | 1,886 | 1,553 | 1,208 | |||
Marketing and sales | 6,064 | 4,671 | 3,811 | |||
General and administrative | 1,346 | 1,089 | 966 | |||
Total operating expenses | 9,296 | 7,313 | 5,985 | |||
Income from operations | 535 | 454 | 218 | |||
Investment income | 57 | 36 | 27 | |||
Interest expense | (154) | (87) | (89) | |||
Gains on strategic investments, net | 542 | 19 | 31 | |||
Other income (expense) | 3 | (2) | (8) | |||
Income before benefit from (provision for) income taxes | 983 | 420 | 179 | |||
Benefit from (provision for) income taxes (3) | [3] | 127 | (60) | 144 | ||
Net income | $ 1,110 | $ 360 | [4] | $ 323 | [4] | |
Basic net income per share (in dollars per share) | $ 1.48 | $ 0.50 | $ 0.47 | |||
Diluted net income per share (in dollars per share) | $ 1.43 | $ 0.49 | $ 0.46 | |||
Shares used in computing basic net income per share (in shares) | 751 | 715 | 688 | |||
Shares used in computing diluted net income per share (in shares) | 775 | 735 | 700 | |||
Subscription and support | ||||||
Revenues: | ||||||
Total revenues | $ 12,413 | $ 9,766 | $ 7,799 | |||
Cost of revenues: | ||||||
Total cost of revenues | [1],[2] | 2,604 | 2,033 | 1,617 | ||
Professional services and other | ||||||
Revenues: | ||||||
Total revenues | 869 | 774 | 638 | |||
Cost of revenues: | ||||||
Total cost of revenues | [1],[2] | $ 847 | $ 740 | $ 617 | ||
[1] | Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$215 $166 $128Marketing and sales232 121 98 | |||||
[2] | Amounts include stock-based expense, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$161 $130 $107Research and development307 260 188Marketing and sales643 469 389General and administrative172 138 136 | |||||
[3] | Amounts include a benefit related to the partial release of the valuation allowance of $612 million, $2 million and $226 million for fiscal 2019, 2018 and 2017, respectively | |||||
[4] | Prior period information has been adjusted for Topic 606. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Stock-based expenses | $ 1,283 | $ 997 | $ 820 |
Decrease in valuation allowance | 612 | 2 | 226 |
Cost of revenues | |||
Amortization of purchased intangibles from business combinations | 215 | 166 | 128 |
Stock-based expenses | 161 | 130 | 107 |
Marketing and sales | |||
Amortization of purchased intangibles from business combinations | 232 | 121 | 98 |
Stock-based expenses | 643 | 469 | 389 |
Research and development | |||
Stock-based expenses | 307 | 260 | 188 |
General and administrative | |||
Stock-based expenses | $ 172 | $ 138 | $ 136 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 1,110 | $ 360 | [1] | $ 323 | [1] |
Other comprehensive income (loss), net of reclassification adjustments: | |||||
Foreign currency translation and other gains (losses) | (26) | 77 | [1] | (53) | [1] |
Unrealized gains (losses) on marketable securities and strategic investments | (12) | (4) | 14 | ||
Other comprehensive income (loss), before tax | (38) | 73 | (39) | ||
Tax effect | (1) | 1 | 3 | ||
Other comprehensive income (loss), net | (39) | 74 | (36) | ||
Comprehensive income | $ 1,071 | $ 434 | $ 287 | ||
[1] | Prior period information has been adjusted for Topic 606. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | ||
Beginning balance (in shares) at Jan. 31, 2016 | 671,000 | ||||||
Beginning balance at Jan. 31, 2016 | $ 5,003 | $ 1 | $ 5,705 | $ (50) | $ (653) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes | 596 | 596 | |||||
Common stock issued (in shares) | 16,000 | ||||||
Common stock issued | 327 | 327 | |||||
Shares issued related to business combinations, net (in shares) | 20,000 | ||||||
Shares issued related to business combinations, net | 1,192 | 1,192 | |||||
Stock-based expenses | 816 | 816 | |||||
Other comprehensive loss, net of tax | (36) | (36) | |||||
Excess tax benefits cumulative-effect adjustment | 9 | 9 | |||||
Net income | 323 | [1] | 323 | [2] | |||
Ending balance (in shares) at Jan. 31, 2017 | 707,000 | ||||||
Ending balance at Jan. 31, 2017 | 8,230 | $ 1 | 8,040 | (86) | 275 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued (in shares) | 23,000 | ||||||
Common stock issued | 709 | 709 | |||||
Shares issued related to business combinations, net | 12 | 12 | |||||
Temporary equity reclassification related to convertible notes | (4) | (4) | |||||
Stock-based expenses | 995 | 995 | |||||
Other comprehensive loss, net of tax | 74 | 74 | |||||
Net income | 360 | [1] | 360 | [2] | |||
Ending balance (in shares) at Jan. 31, 2018 | 730,000 | ||||||
Ending balance at Jan. 31, 2018 | 10,376 | $ 1 | 9,752 | (12) | 635 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes | $ (17) | (7) | (10) | ||||
Common stock issued (in shares) | 8,495 | 21,000 | |||||
Common stock issued | $ 695 | 695 | |||||
Shares issued related to business combinations, net (in shares) | 13,000 | ||||||
Shares issued related to business combinations, net | 2,195 | 2,195 | |||||
Settlement of convertible notes and warrants (in shares) | 6,000 | ||||||
Settlement of convertible notes and warrants | 4 | 4 | |||||
Stock-based expenses | 1,281 | 1,281 | |||||
Other comprehensive loss, net of tax | (39) | (39) | |||||
Net income | 1,110 | 1,110 | |||||
Ending balance (in shares) at Jan. 31, 2019 | 770,000 | ||||||
Ending balance at Jan. 31, 2019 | $ 15,605 | $ 1 | $ 13,927 | $ (58) | $ 1,735 | ||
[1] | Prior period information has been adjusted for Topic 606. | ||||||
[2] | Prior period information has been adjusted for Topic 606. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||
Operating activities: | |||||
Net income | $ 1,110 | $ 360 | [1] | $ 323 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 962 | 753 | 632 | ||
Amortization of debt discount and issuance costs | 20 | 31 | 31 | ||
Amortization of costs capitalized to obtain revenue contracts, net | 737 | 592 | 470 | ||
Expenses related to employee stock plans | 1,283 | 997 | 820 | ||
Gains on strategic investments, net | (542) | (19) | (31) | ||
Changes in assets and liabilities, net of business combinations: | |||||
Accounts receivable, net | (923) | (719) | (633) | ||
Costs capitalized to obtain revenue contracts, net | (981) | (1,156) | (693) | ||
Prepaid expenses and other current assets and other assets | (58) | 18 | (47) | ||
Accounts payable | 74 | (39) | 35 | ||
Accrued expenses and other liabilities | 213 | 392 | 69 | ||
Unearned revenue | 1,503 | 1,528 | 1,186 | ||
Net cash provided by operating activities | 3,398 | 2,738 | 2,162 | ||
Investing activities: | |||||
Business combinations, net of cash acquired | (5,115) | (25) | (3,193) | ||
Purchases of strategic investments | (362) | (216) | (110) | ||
Sales of strategic investments | 260 | 131 | 80 | ||
Purchases of marketable securities | (1,068) | (2,003) | (1,070) | ||
Sales of marketable securities | 1,426 | 558 | 2,005 | ||
Maturities of marketable securities | 146 | 78 | 68 | ||
Capital expenditures | (595) | (534) | (464) | ||
Net cash used in investing activities | (5,308) | (2,011) | (2,684) | ||
Financing activities: | |||||
Proceeds from issuance of debt, net | 2,966 | 0 | 1,245 | ||
Proceeds from employee stock plans | 704 | 650 | 401 | ||
Principal payments on capital lease obligations | (131) | (106) | (98) | ||
Repayments of debt | (1,529) | (323) | (550) | ||
Net cash provided by financing activities | 2,010 | 221 | 998 | ||
Effect of exchange rate changes | 26 | (12) | (27) | ||
Net increase in cash and cash equivalents | 126 | 936 | 449 | ||
Cash and cash equivalents, beginning of period | 2,543 | 1,607 | 1,158 | ||
Cash and cash equivalents, end of period | 2,669 | 2,543 | 1,607 | ||
Cash paid during the period for: | |||||
Interest | 94 | 40 | 55 | ||
Income taxes, net of tax refunds | 83 | 53 | 36 | ||
Non-cash investing and financing activities: | |||||
Fair value of equity awards assumed | 480 | 0 | 103 | ||
Fair value of common stock issued as consideration for business combinations | $ 1,715 | $ 12 | $ 1,089 | ||
[1] | Prior period information has been adjusted for Topic 606. |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Salesforce.com, inc. (the "Company") is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company introduced its first CRM solution in 2000, and has since expanded its service offerings into new areas and industries with new editions, features and platform capabilities. The Company's core mission is to empower its customers to connect with their customers in entirely new ways through cloud, mobile, social, Internet of Things (“IoT”) and artificial intelligence ("AI") technologies. The Company's Customer Success Platform is a comprehensive portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, integration solutions, community management, industry-specific solutions, analytics, application development, IoT integration, collaborative productivity tools, an enterprise cloud marketplace which the Company refers to as the AppExchange, and its professional services. Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2019 , for example, refer to the fiscal year ending January 31, 2019 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto. Significant estimates and assumptions made by management include the determination of: • the standalone selling price (SSP) of performance obligations for contracts with multiple performance obligations; • the estimate of variable consideration as part of the adoption of Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”); • the fair value of assets acquired and liabilities assumed for business combinations; • the recognition, measurement and valuation of current and deferred income taxes; • the average period of benefit associated with costs capitalized to obtain revenue contracts; • the fair value of certain stock awards issued; • the useful lives of intangible assets; and • the valuation of privately-held strategic investments. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the Company's offerings operate on its single Customer Success Platform and most of the Company's products are deployed in an identical way, and the Company’s chief operating decision makers evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. In August 2018, the Company moved to a co-chief executive officer model with the promotion of the Company's vice chairman and chief operating officer. The Company determined that both co-chief executive officers also serve as chief operating decision makers for the purposes of segment reporting. Despite the change in the chief operating decision maker, the Company determined no change to segment reporting was necessary as there was no change in the components of the Company for which separate financial information is regularly evaluated. Concentrations of Credit Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against the recorded allowance when the Company has exhausted collection efforts without success. No single customer accounted for more than five percent of accounts receivable at January 31, 2019 and January 31, 2018 . No single customer accounted for five percent or more of total revenue during fiscal 2019 , 2018 and 2017. As of January 31, 2019 and January 31, 2018 , assets located outside the Americas were 14 percent and 17 percent of total assets, respectively. As of January 31, 2019 and January 31, 2018 , assets located in the United States were 84 percent and 81 percent of total assets, respectively. Revenue Recognition Adoption of Topic 606 Effective at the start of fiscal 2019, the Company adopted the provisions and expanded disclosure requirements described in ASU 2014-09 also referred to as Topic 606. The Company adopted the standard using the full retrospective method. Accordingly, the results for the prior comparable periods were adjusted to conform to the current period measurement and recognition of results. The impact of Topic 606 on reported revenue results was not material. Topic 606, however, modified the Company’s revenue recognition policy in the following ways: • Removal of the limitation on contingent revenue, which can result in the subscription and support revenue for certain multi-year customer contracts being recognized earlier in the duration of the contract term; • More allocation of subscription and support revenues across the Company’s cloud service offerings and to professional services revenue; and • Inclusion of an estimate of variable consideration, such as overage fees, in the total transaction price, which results in the estimated fees being recognized ratably over the contract term, further resulting in the recognition of subscription and support revenues before the actual variable consideration occurs. The Company used the following transitional practical expedients in the adoption of Topic 606: • The Company has not disclosed the remaining performance obligation (formerly, remaining transaction price) for all of the reporting periods prior to the first quarter of fiscal 2019; and • Contracts modified before fiscal 2017 were reflected using the retrospective method. Additionally, as part of its business strategy, the Company periodically makes acquisitions of complementary businesses, services and technology. These acquired businesses may have customer arrangements that include the delivery of an on-premise software element combined with a software-as-a-service element. This was the case with the Company's acquisition of MuleSoft, Inc. (“MuleSoft”) in May 2018. The Company has to apply significant judgment to determine the appropriate revenue recognition policy for such products and services since Topic 606 eliminated the provision that service revenue accounting was appropriate when the relative selling price of one or more deliverables in a multiple element solution arrangement could not be determined. Revenue Recognition Policy The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, "Cloud Services"), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management and implementation services. Other revenue consists primarily of training fees. With the adoption of Topic 606, revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through application of the following steps: • Identification of the contract, or contracts with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and Support Revenues Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement. Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Since the May 2018 acquisition of MuleSoft, subscription and support revenues also includes software licenses. These licenses for on-premises software provide the customer with a right to use the software as it exists when made available. Customers purchase these licenses through a subscription. Revenues from distinct licenses are generally recognized upfront when the software is made available to the customer. In cases where the Company allocates revenue to software updates and support, primarily because the updates are provided at no additional charge, such revenue is recognized as the updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually. Typical payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred. Professional Services and Other Revenues The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts and ratably over the contract term for subscription professional services contracts. Training revenues are recognized as the services are performed. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that may include promises to transfer multiple Cloud Services, software licenses, premium support and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Cloud Services and software licenses are distinct as such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative standalone selling price ("SSP") basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical sales and contract prices. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include market conditions or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Costs Capitalized to Obtain Revenue Contracts As part of its adoption of ASU 2014-09, the Company capitalizes incremental costs of obtaining a non-cancelable subscription and support revenue contract. The provisions of ASU 2014-09 are significantly different than the Company's previous accounting for deferred commissions. The new guidance results in the capitalization of significantly more costs and longer amortization lives. Under the prior accounting guidance, the Company only capitalized sales commissions that had a direct and incremental relationship to a specific new revenue contract and amortized the capitalized amounts over the initial contract period, which was typically 12 to 36 months. Under the new accounting, the capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees, and to a lesser extent (4) success fees paid to partners in emerging markets where the Company has a limited presence. Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years , which, although longer than the typical initial contract period, reflects the average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years . The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying consolidated statements of operations. During fiscal 2019 , the Company capitalized $1.0 billion of costs to obtain revenue contracts and amortized $0.7 billion to marketing and sales expense. During the same period a year ago, the Company capitalized $1.2 billion of costs to obtain revenue contracts and amortized $0.6 billion to marketing and sales expense. Costs capitalized to obtain a revenue contract, net on the Company's consolidated balance sheets totaled $2.0 billion at January 31, 2019 and $1.8 billion at January 31, 2018 . There were no impairments of costs to obtain revenue contracts in fiscal 2019, 2018 and 2017. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. Marketable Securities The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. To determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income. Strategic Investments The Company holds strategic investments in publicly held equity securities and privately held debt and equity securities in which the Company does not have a controlling interest or significant influence. Publicly held equity securities are measured using quoted prices in their respective active markets with changes recorded through gains (losses) on strategic investments, net on the consolidated statement of operations. Privately held equity securities without a readily determinable fair value are recorded at cost and adjusted for impairments and observable price changes with a same or similar security from the same issuer and are recorded through gains (losses) on strategic investments, net on the consolidated statement of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income on the consolidated balance sheet. If, based on the terms of these publicly traded and privately held securities, the Company determines that the Company exercises significant influence on the entity to which these securities relate, the Company will apply the equity method of accounting for such investments. Privately held debt and equity securities are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The carrying value is not adjusted for the Company's privately held equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. Valuations of privately held companies are inherently complex due to the lack of readily available market data. In addition, the determination of whether an orderly transaction is for a same or similar investment requires significant management judgment including the nature of rights and obligations of the investments, the extent to which differences in those rights and obligations would affect the fair values of those investments, and the impact of any differences based on the stage of operational development of the investee. The Company assesses its privately held debt and equity securities strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of the severity and duration of the impairment and qualitative and quantitative analysis of other key factors including the investee’s financial metrics, the investee’s products and technologies meeting or exceeding predefined milestones, market acceptance of the product or technology, other competitive products or technology in the market, general market conditions, management and governance structure of the investee, the investee’s liquidity, debt ratios and the rate at which the investee is using its cash. If the investment is considered to be impaired, the Company recognizes an impairment through the consolidated statement of operations and establishes a new carrying value for the investment. Prior to fiscal 2019, investments in publicly held equity securities were classified as available-for-sale and measured and recorded at fair value with unrealized changes in fair value recorded through other comprehensive income. Prior to fiscal 2019, investments in privately held equity securities in which the Company did not have a controlling interest or significant influence were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. As of January 31, 2019 and January 31, 2018 , the outstanding foreign currency derivative contracts were recorded at fair value on the consolidated balance sheets. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. In addition, the Company measures its strategic investments, including its publicly held equity securities, privately held debt securities and privately held equity securities for which there has been an observable price change in a same or similar security, at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 5 “Fair Value Measurement.” Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and structural components Average weighted useful life of 32 years Building - leased facility 27 years Building improvements 10 years When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. Capitalized Software Costs The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Intangible Assets Acquired through Business Combinations Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment Assessment The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable. There were no material impairments of capitalized software, intangible assets, long-lived assets or goodwill during fiscal 2019 , 2018 and 2017. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will recognize a gain or loss to settle that relationship as of the acquisition date, which is recorded in net gains (losses) on strategic investments within the consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (losses) on strategic investments in the consolidated statement of operations. Leases and Asset Retirement Obligations The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense. In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded as an offset to rent expense and recognized over the sublease life. Stock-Based Expense The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years . The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months . The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount and also allows employees to reduce their percentage election once during a six month purchase period (December 15 and June 15 of each fiscal year), but not increase that election until the next one-year offering period. The ESPP also includes a re-set provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. Stock-based expenses related to performance share grants are measured based on grant date fair value and expensed on a straight-line basis, net of estimated forfeitures, over the service period of the awards, which is generally the vesting term of three years. The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. The |
Revenues
Revenues | 12 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenue Subscription and Support Revenue by the Company's core service offerings Subscription and support revenues consisted of the following (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Sales Cloud $ 4,040 $ 3,588 $ 3,076 Service Cloud 3,621 2,883 2,343 Salesforce Platform and Other 2,854 1,913 1,433 Marketing and Commerce Cloud 1,898 1,382 947 $ 12,413 $ 9,766 $ 7,799 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Americas $ 9,445 $ 7,621 $ 6,259 Europe 2,553 1,916 1,383 Asia Pacific 1,284 1,003 795 $ 13,282 $ 10,540 $ 8,437 Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 96 percent during fiscal 2019, 2018 , and 2017, respectively. No other country represented more than ten percent of total revenue during fiscal 2019, 2018 and 2017. Contract Balances Contract Asset As described in Note 1, subscription and support revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. License revenue is recognized as the licenses are delivered. Under Topic 606, the timing and amount of revenue recognition may differ in certain situations from the revenue recognized under previous accounting guidance that limited subscription and support revenue to the customer invoice amount for the period of service (collectively billings). Under Topic 606, the Company records a contract asset when revenue recognized on a contract exceeds the billings and unearned revenue when the billings on a contract exceed the revenue recognized. The Company's standard billing terms are annual in advance. Contract assets were $215 million as of January 31, 2019 as compared to $81 million as of January 31, 2018 . Approximately $122 million of contract assets were acquired in connection with the May 2018 MuleSoft acquisition. Impairments of contract assets were immaterial in fiscal 2019, 2018 and 2017. Unearned Revenue The concept of unearned revenue under Topic 606 is substantially similar to deferred revenue under previous accounting guidance, except for the removal of the limitation on contingent revenue. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Unearned revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services, including software licenses, described above and is recognized as revenue when transfer of control to customers has occurred. The Company generally invoices customers in annual installments. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter. The changes in unearned revenue were as follows (in millions ): Fiscal Year Ended January 31, 2019 Unearned revenue, beginning of period $ 6,995 Billings and other* 14,770 Contribution from contract asset 13 Revenue recognized ratably over time (12,426 ) Revenue recognized over time as delivered (629 ) Revenue recognized at a point in time (227 ) Unearned revenue from business combinations 68 Unearned revenue, end of period $ 8,564 *Other includes, for example, the impact of foreign currency translation Revenue recognized ratably over time is generally billed in advance and includes Cloud Services, the related support and advisory services. Revenue recognized over time as delivered includes professional services billed on a time and material basis, fixed fee professional services and training classes that are primarily billed, delivered and recognized within the same reporting period. Revenue recognized at a point in time substantially includes the portion of software subscriptions allocated to the on-premise software element, which either resulted in smaller unearned revenue or a contract asset. Approximately 52 percent of revenue recognized in fiscal 2019 is from the unearned revenue balance as of January 31, 2018 . Remaining Performance Obligation Topic 606 also introduced the concept of the transaction price allocated to the remaining performance obligations, referred to by the Company as remaining performance obligation, which is different than unbilled deferred revenue under previous accounting guidance. Transaction price allocated to the remaining performance obligation represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, average contract terms and foreign currency exchange rates. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. The Company applied the practical expedient in accordance with Topic 606 to exclude amounts related to performance obligation that are billed and recognized as they are delivered. This primarily consists of professional services contracts that are on a time-and-material basis. The majority of the Company's noncurrent remaining performance obligation will be recognized in the next 13 to 36 months. Remaining performance obligation consisted of the following (in billions): Current Noncurrent Total As of January 31, 2019* $ 11.9 $ 13.8 $ 25.7 *Includes $450 million of remaining performance obligation related to the MuleSoft acquisition, including contracts executed subsequent to acquisition. |
Investments
Investments | 12 Months Ended |
Jan. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities At January 31, 2019 , marketable securities consisted of the following (in millions ): Investments classified as Marketable Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,027 $ 0 $ (8 ) $ 1,019 U.S. treasury securities 89 0 (1 ) 88 Mortgage backed obligations 79 0 (1 ) 78 Asset backed securities 245 0 (1 ) 244 Municipal securities 104 0 0 104 Foreign government obligations 58 0 (1 ) 57 U.S. agency obligations 4 0 0 4 Time deposits 4 0 0 4 Covered bonds 75 0 0 75 Total marketable securities $ 1,685 $ 0 $ (12 ) $ 1,673 At January 31, 2018 , marketable securities consisted of the following (in millions ): Investments classified as Marketable Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,223 $ 1 $ (7 ) $ 1,217 U.S. treasury securities 196 0 (2 ) 194 Mortgage backed obligations 100 0 (1 ) 99 Asset backed securities 251 0 (1 ) 250 Municipal securities 53 0 (1 ) 52 Foreign government obligations 87 0 (1 ) 86 U.S. agency obligations 19 0 0 19 Commercial paper 11 0 0 11 Covered bonds 51 0 (1 ) 50 Total marketable securities $ 1,991 $ 1 $ (14 ) $ 1,978 The contractual maturities of the investments classified as marketable securities are as follows (in millions ): As of January 31, January 31, Due within 1 year $ 482 $ 395 Due in 1 year through 5 years 1,189 1,579 Due in 5 years through 10 years 2 4 $ 1,673 $ 1,978 As of January 31, 2019 , the following marketable securities were in an unrealized loss position (in millions ): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate notes and obligations $ 392 $ (2 ) $ 457 $ (6 ) $ 849 $ (8 ) U.S. treasury securities 0 0 71 (1 ) 71 (1 ) Mortgage backed obligations 0 0 58 (1 ) 58 (1 ) Asset backed securities 0 0 112 (1 ) 112 (1 ) Foreign government obligations 0 0 49 (1 ) 49 (1 ) $ 392 $ (2 ) $ 747 $ (10 ) $ 1,139 $ (12 ) The unrealized losses for each of the fixed rate marketable securities were less than $1 million . The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of January 31, 2019 , such as the Company's intent to hold the investment and whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment's amortized basis. The Company expects to receive the full principal and interest on all of these marketable securities. Investment Income Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Interest income $ 61 $ 37 $ 22 Realized gains 1 1 8 Realized losses (5 ) (2 ) (3 ) Investment income $ 57 $ 36 $ 27 Strategic Investments Strategic investments by form and measurement category as of January 31, 2019 were as follows (in millions ): Measurement Category Fair Value (1) Measurement Alternative Other (2) Total Equity securities $ 436 $ 785 $ 50 $ 1,271 Debt securities 0 0 31 31 Balance as of January 31, 2019 $ 436 $ 785 $ 81 $ 1,302 (1) Equity securities under fair value represents the carrying value of strategic investments in publicly held equity securities. (2) Other includes the Company's investments accounted for under the equity method of accounting or amortized cost. Measurement Alternative Adjustments Privately held equity securities accounted for under the measurement alternative as of January 31, 2019 were as follows (in millions): Fiscal Year Ended January 31, 2019 Carrying amount, beginning of period $ 548 Adjustments related to privately held equity securities: Net additions 95 Impairments and downward adjustments (32 ) Upward adjustments 174 Carrying amount, end of period $ 785 Gains (losses) on strategic investments, net Gains and losses recognized in fiscal 2019 , 2018 and 2017 were as follows (in millions): 4 Fiscal Year Ended January 31, 2019 2018 2017 Net gains recognized on publicly traded securities $ 345 $ 0 $ 0 Net gains recognized on privately held securities 133 19 31 Net gains recognized on sales of equity securities 74 0 0 Net losses recognized on debt securities (10 ) 0 0 Gains on strategic investments, net $ 542 $ 19 $ 31 Net gains recognized in fiscal 2019 for investments still held as of January 31, 2019 were $464 million . This excludes recognized gains on the sale of our equity and debt securities for fiscal 2019 of $78 million . In fiscal 2019 the Company adopted ASU 2016-01 which requires all fair value adjustments of its publicly traded and privately held equity investments to be recorded through the statement of operations. Prior to fiscal 2019, publicly held equity securities were recorded at fair value with unrealized changes in fair value recorded through other comprehensive income. Investments in privately held equity securities in which the Company did not have a controlling interest or significant influence were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. |
Derivatives
Derivatives | 12 Months Ended |
Jan. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Details on outstanding foreign currency derivative contracts are presented below (in millions ): As of January 31, 2019 January 31, 2018 Notional amount of foreign currency derivative contracts $ 4,496 $ 1,871 Fair value of foreign currency derivative contracts 25 12 The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in millions ): As of Balance Sheet Location January 31, 2019 January 31, 2018 Foreign currency derivative contracts Prepaid expenses and other current assets $ 42 $ 18 Gains (losses) on derivative instruments not designated as hedging instruments recorded in other income in the consolidated statements of operations during fiscal 2019 , 2018 and 2017, respectively, are summarized below (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Foreign currency derivative contracts $ 34 $ 15 $ (86 ) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Significant other inputs that are directly or indirectly observable in the marketplace. Level 3. Significant unobservable inputs which are supported by little or no market activity. All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs. The following table presents information about the Company’s assets that are measured at fair value as of January 31, 2019 and indicates the fair value hierarchy of the valuation (in millions ): Description Quoted Prices in Significant Other Significant Balance as of January 31, 2019 Cash equivalents (1): Time deposits $ 0 $ 314 $ 0 $ 314 Money market mutual funds 1,234 0 0 1,234 Marketable securities: Corporate notes and obligations 0 1,019 0 1,019 U.S. treasury securities 0 88 0 88 Mortgage backed obligations 0 78 0 78 Asset backed securities 0 244 0 244 Municipal securities 0 104 0 104 Foreign government obligations 0 57 0 57 U.S. agency obligations 0 4 0 4 Time deposits 0 4 0 4 Covered bonds 0 75 0 75 Strategic investments: Publicly held equity securities 436 0 0 436 Foreign currency derivative contracts (2) 0 42 0 42 Total assets $ 1,670 $ 2,029 $ 0 $ 3,699 ___________ (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2019 , in addition to $1.1 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2019 . The following table presents information about the Company’s assets that are measured at fair value as of January 31, 2018 and indicates the fair value hierarchy of the valuation (in millions ): Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of January 31, 2018 Cash equivalents (1): Time deposits $ 0 $ 543 $ 0 $ 543 Money market mutual funds 1,389 0 0 1,389 Marketable securities: Corporate notes and obligations 0 1,217 0 1,217 U.S. treasury securities 0 194 0 194 Mortgage backed obligations 0 99 0 99 Asset backed securities 0 250 0 250 Municipal securities 0 52 0 52 Foreign government obligations 0 86 0 86 U.S. agency obligations 0 19 0 19 Commercial paper 0 11 0 11 Covered bonds 0 50 0 50 Strategic investments: Publicly held equity securities 24 0 0 24 Foreign currency derivative contracts (2) 0 18 0 18 Total assets $ 1,413 $ 2,539 $ 0 $ 3,952 ______________ (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2018 , in addition to $611 million of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2018 . Strategic investments measured and record at fair value on a non-recurring basis The Company's privately held debt and equity securities and equity method investments are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an impairment or observable price adjustment is recognized on the Company's non-marketable equity securities during the period, the Company classifies these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. The Company classified privately held debt and equity securities and equity method investments as Level 3. The Company's privately held debt and equity securities and equity method investments amounted to $866 million as of January 31, 2019 and $653 million as of January 31, 2018 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and Equipment Property and equipment, net consisted of the following (in millions ): As of January 31, 2019 January 31, 2018 Land $ 184 $ 184 Buildings and building improvements 629 626 Computers, equipment and software 1,735 1,629 Furniture and fixtures 188 139 Leasehold improvements 1,098 825 Property and equipment, gross 3,834 3,403 Less accumulated depreciation and amortization (1,783 ) (1,456 ) Property and equipment, net $ 2,051 $ 1,947 Depreciation and amortization expense totaled $411 million , $373 million and $323 million during fiscal 2019 , 2018 and 2017 respectively. Computers, equipment and software at January 31, 2019 and January 31, 2018 included a total of $671 million and $709 million acquired under capital lease agreements, respectively. Accumulated amortization relating to computers, equipment and software acquired under capital leases totaled $480 million and $450 million , respectively, at January 31, 2019 and January 31, 2018 . Amortization of assets acquired under capital leases is included in depreciation and amortization expense. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal Year 2019 Datorama In August 2018, the Company acquired all outstanding stock of Datorama, Inc. ("Datorama"), which provides a platform for enterprises, agencies and publishers to integrate data across marketing channels and data sources. The Company has included the financial results of Datorama, which are not material, in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were approximately $3 million and recorded in general and administrative expense. The acquisition date fair value of the consideration transferred for Datorama was approximately $766 million , which consisted of the following (in millions): Fair Value Cash $ 136 Common stock issued 537 Fair value of stock options and restricted stock awards assumed 93 Total $ 766 The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.4133 was applied to convert Datorama's outstanding equity awards for Datorama's common stock into equity awards for shares of the Company's common stock. The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 21 Accounts receivable 9 Other current and noncurrent assets 3 Intangible assets 202 Goodwill 586 Accounts payable, accrued expenses and other liabilities, current and noncurrent (10 ) Unearned revenue (4 ) Deferred tax liability (41 ) Net assets acquired $ 766 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The fair values of assets acquired and liabilities assumed, including current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. Accordingly, the provisional measurements of fair value of the income taxes payable and deferred taxes set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 159 4 years Customer relationships 42 8 years Other purchased intangible assets 1 1 year Total intangible assets subject to amortization $ 202 Developed technology represents the fair value of Datorama's technology. Customer relationships represent the fair values of the underlying relationships with Datorama customers. The goodwill balance is primarily attributed to assembled workforce and expanded market opportunities when integrating Datorama's technology with the Company's other offerings. The goodwill balance is not deductible for U.S. income taxes purposes. The Company assumed unvested options and restricted stock with a fair value of $170 million . Of the total consideration, $93 million was allocated to the purchase consideration and $77 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis. MuleSoft In May 2018, the Company acquired all outstanding stock of MuleSoft, which provides a platform for building application networks that connect enterprise apps, data and devices, across any cloud and on-premise solution. The Company has included the financial results of MuleSoft in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were approximately $24 million and were recorded in general and administrative expense. The acquisition date fair value of the consideration transferred for MuleSoft was approximately $6.4 billion , which consisted of the following (in millions): Fair Value Cash $ 4,860 Common stock issued 1,178 Fair value of stock options and restricted stock awards assumed 387 Total $ 6,425 The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.3680 was applied to convert MuleSoft’s outstanding equity awards for MuleSoft’s common stock into equity awards for shares of the Company’s common stock. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 57 Marketable securities 233 Accounts receivable 69 Contract asset 122 Other current and noncurrent assets 29 Acquired customer contract asset, current and noncurrent - intangible asset 61 Intangible assets 1,279 Goodwill 4,816 Accounts payable, accrued expenses and other liabilities, current and noncurrent (40 ) Unearned revenue (57 ) Deferred tax liability (144 ) Net assets acquired $ 6,425 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The deferred tax liability established was primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets. The fair values of assets acquired and liabilities assumed, including current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. Accordingly, the provisional measurements of fair value of the income taxes payable and deferred taxes set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 224 4 years Customer relationships 1,046 8 years Other purchased intangible assets 9 1 year Total intangible assets subject to amortization $ 1,279 Developed technology represents the fair value of MuleSoft's Anypoint technology. Customer relationships represent the fair values of the underlying relationships with MuleSoft customers. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating MuleSoft's Anypoint technology with the Company’s other offerings. The goodwill balance is not deductible for U.S. income tax purposes. The Company assumed unvested options and restricted stock with a fair value of $824 million . Of the total consideration, $387 million was allocated to the purchase consideration and $437 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis. The amounts of revenue and pretax loss of MuleSoft included in the Company’s consolidated statement of operations from the acquisition date in May 2018 through January 31, 2019 are as follows (in millions): Total revenues $ 431 Pretax loss (286 ) The following pro forma financial information summarizes the combined results of operations for the Company and MuleSoft, as though the companies were combined as of the beginning of the Company’s fiscal 2018. The unaudited pro forma financial information was as follows (in millions): Fiscal Year Ended January 31, 2019 2018 Total revenues $ 13,366 $ 10,875 Pretax income (loss) 1,012 (85 ) Net income (loss) 987 (45 ) The pro forma financial information for all periods presented above has been calculated after adjusting the results of MuleSoft to reflect the business combination accounting effects resulting from this acquisition, including the amortization of fair value adjustments to unearned revenue, the amortization expense from acquired intangible assets and the stock-based compensation expense for unvested stock options and restricted stock awards assumed as well as the interest expense associated with the Company's issuance of debt prior to the acquisition as though the acquisition occurred as of the beginning of the Company’s fiscal year 2018. The historical consolidated financial statements have been adjusted in the pro forma combined financial statements to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the Company’s fiscal 2018. The pro forma financial information for fiscal 2019 and 2018 combines the historical results of the Company for fiscal 2019 and 2018 , the adjusted historical results of MuleSoft for fiscal 2019 and 2018 , due to differences in reporting periods and considering the date the Company acquired MuleSoft, and the effects of the pro forma adjustments listed above. Prior to being acquired, MuleSoft's fiscal year concluded on December 31. Net income for fiscal 2018 above includes a discrete tax benefit of $136 million , resulting from a partial release of valuation allowance in connection with the acquisition. The net deferred tax liability from the acquisition of MuleSoft provided a source of additional income to support the realizability of the Company's pre-existing deferred tax assets. The deferred tax liability considered the 21 percent corporate tax rate enacted by the Tax Act. CloudCraze In April 2018, the Company acquired all outstanding stock of CloudCraze LLC ("CloudCraze"), for consideration consisting of cash and equity awards assumed. CloudCraze is a commerce platform that allows businesses to generate online revenue and scale for growth. CloudCraze delivers interactions across commerce, sales, marketing and service. The Company has included the financial results of CloudCraze in the consolidated financial statements from the date of acquisition, which have not been material to date. The transaction costs associated with the acquisition were not material. The acquisition date fair value of the consideration transferred for CloudCraze was approximately $190 million , which consisted of cash and the fair value of stock options and restricted stock awards assumed. The Company recorded approximately $58 million for developed technology and customer relationships with estimated useful lives of one to seven years. The Company recorded approximately $134 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities from integrating CloudCraze's technology with the Company's other offerings. The goodwill balance is deductible for U.S. income tax purposes. The fair value of current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. Fiscal Year 2018 During fiscal 2018, the Company acquired two companies for an aggregate of $38 million in cash and equity, net of cash acquired, and has included the financial results of these companies in its consolidated financial statements from the dates of acquisition. The transactions were not material to the Company and the costs associated with the acquisitions were not material. The Company accounted for the transactions as business combinations. In allocating the purchase consideration based on estimated fair values, the Company recorded $3 million of intangible assets and $35 million of goodwill. The majority of the goodwill balance associated with these business combinations is deductible for U.S. income tax purposes. Fiscal Year 2017 During fiscal 2017, the Company acquired 13 companies, including the acquisition of Demandware, for an aggregate of $4.4 billion in cash and equity, net of cash acquired, and has included the financial results of these companies in its consolidated financial statements from the dates of acquisition. The costs associated with the acquisitions were not material. The Company accounted for the transactions as business combinations. In allocating the purchase consideration based on estimated fair values, the Company recorded $851 million of intangible assets and $3.4 billion of goodwill. The majority of the goodwill balance associated with these business combinations is not deductible for U.S. income tax purposes. |
Intangible Assets Acquired Thro
Intangible Assets Acquired Through Business Combinations and Goodwill | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired Through Business Combinations and Goodwill | Intangible Assets Acquired Through Business Combinations and Goodwill Intangible assets acquired through business combinations Intangible assets acquired through business combinations are as follows (in millions ): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted Jan 31, 2018 Additions and retirements, net Jan 31, 2019 Jan 31, 2018 Expense and retirements, net Jan 31, 2019 Jan 31, 2018 Jan 31, 2019 Acquired developed technology $ 1,027 $ 402 $ 1,429 $ (677 ) $ (212 ) $ (889 ) $ 350 $ 540 2.9 Customer relationships 831 1,107 1,938 (359 ) (201 ) (560 ) 472 1,378 6.3 Other (1) 53 (1 ) 52 (48 ) 1 (47 ) 5 5 2.5 Total $ 1,911 $ 1,508 $ 3,419 $ (1,084 ) $ (412 ) $ (1,496 ) $ 827 $ 1,923 5.3 (1) Included in other are trade names, trademarks and territory rights. Amortization of intangible assets resulting from business combinations for fiscal 2019 , 2018 and 2017 was $447 million , $287 million and $226 million , respectively. The expected future amortization expense for intangible assets as of January 31, 2019 is as follows (in millions ): Fiscal Period: Fiscal 2020 $ 472 Fiscal 2021 414 Fiscal 2022 351 Fiscal 2023 211 Fiscal 2024 148 Thereafter 327 Total amortization expense $ 1,923 Customer contract assets acquired through business combinations Customer contract assets resulting from business combinations reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date. Customer contract assets are amortized over the corresponding contract terms. Customer contract assets resulting from business combinations at January 31, 2019 and January 31, 2018 were $121 million and $159 million , respectively, which is included in “Other assets” on the consolidated balance sheets. Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter. The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions ): Balance as of January 31, 2017 $ 7,264 Acquisitions 35 Adjustments of acquisition date fair values, including the effect of foreign currency translation 15 Balance as of January 31, 2018 $ 7,314 CloudCraze acquisition 134 MuleSoft acquisition 4,816 Datorama acquisition 586 Adjustments of acquisition date fair values, including the effect of foreign currency translation 1 Balance as of January 31, 2019 $ 12,851 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The carrying values of the Company's borrowings were as follows (in millions ): Instrument Date of issuance Maturity date Effective interest rate for fiscal 2019 January 31, 2019 January 31, 2018 2021 Term Loan May 2018 May 2021 3.05% $ 499 $ 0 2023 Senior Notes April 2018 April 2023 3.26% 993 0 2028 Senior Notes April 2018 April 2028 3.70% 1,488 0 2019 Term Loan July 2016 July 2019 2.96% (1) 0 498 Loan assumed on 50 Fremont February 2015 June 2023 3.75% 196 199 0.25% Convertible Senior Notes March 2013 April 2018 2.53% (2) 0 1,023 Total carrying value of debt 3,176 1,720 Less current portion of debt (3 ) (1,025 ) Total noncurrent debt $ 3,173 $ 695 (1) The Company repaid the 2019 Term Loan in full in January 2019. (2) From February 1, 2018 through maturity, the effective interest rate for the Convertible Senior Notes was 2.53% . Each of the Company's debt agreements requires it to maintain compliance with certain debt covenants, all of which the Company was in compliance with as of January 31, 2019 . The expected future principal payments for all borrowings as of January 31, 2019 is as follows (in millions ): Fiscal period: Fiscal 2020 $ 3 Fiscal 2021 4 Fiscal 2022 504 Fiscal 2023 4 Fiscal 2024 1,183 Thereafter 1,500 Total principal outstanding $ 3,198 2021 Term Loan In April 2018, the Company entered into a new three -year unsecured term loan with Bank of America, N.A. and certain other institutional lenders for $500 million (“2021 Term Loan”) that matures in May 2021. The net proceeds of the 2021 Term Loan were for the purpose of partially funding the acquisition of MuleSoft and were received in May 2018. As of January 31, 2019 , the noncurrent outstanding principal portion was $500 million . 2023 Senior Notes In April 2018, the Company issued an aggregate principal amount of $1.0 billion in senior notes that will mature in April 2023 and bear interest at a fixed rate of 3.25 percent per annum ("2023 Senior Notes"). The interest is payable semi-annually in April and October of each year, commencing in October 2018. The Company incurred issuance costs of $8 million in connection with the 2023 Senior Notes that, along with the debt discount upon issuance, are being amortized to interest expense over the term of the 2023 Senior Notes. The 2023 Senior Notes are unsecured and rank equally in right of payment with all of the other senior unsecured indebtedness. As of January 31, 2019 , the noncurrent outstanding principal portion was $1.0 billion . 2028 Senior Notes In April 2018, the Company issued an aggregate principal amount of $1.5 billion in senior notes that will mature in April 2028 and bear interest at a fixed rate of 3.70 percent per annum ("2028 Senior Notes"). The interest is payable semi-annually in April and October of each year, commencing in October 2018. The Company incurred issuance costs of $13 million in connection with the 2028 Senior Notes that, along with the debt discount upon issuance, are being amortized to interest expense over the term of the 2028 Senior Notes. The 2028 Senior Notes are unsecured and rank equally in right of payment with all of the other senior unsecured indebtedness. As of January 31, 2019 , the noncurrent outstanding principal portion was $1.5 billion . 2019 Term Loan In July 2016, the Company entered into a credit agreement (“Term Loan Credit Agreement”) with Bank of America, N.A. and certain other institutional lenders for a $500 million term loan facility (“2019 Term Loan”) that matures in July 2019. In January 2019, the Company repaid the 2019 Term Loan in full and the Term Loan Credit Agreement was terminated. Loan Assumed on 50 Fremont The Company assumed a $200 million loan with the acquisition of 50 Fremont in San Francisco, California (“Loan”). The Loan bears an interest rate of 3.75 percent per annum and is due in June 2023. Starting in July 2018, principal and interest payments are required, with the remaining principal due at maturity. As of January 31, 2019 , the current and noncurrent outstanding principal portion was $3 million and $195 million , respectively. The Loan can be prepaid at any time subject to a yield maintenance fee. Convertible Senior Notes In March 2013, the Company issued at par value $1.15 billion of 0.25% convertible senior notes (the “ 0.25% Senior Notes”, or “Notes”) due in April 2018. The Notes matured in April 2018 and the Company repaid $1.0 billion in cash of principal balance of the Notes during the Company's first quarter of fiscal 2019. The Company also distributed approximately 7 million shares of the Company's common stock to noteholders during fiscal 2019, which represents the conversion value in excess of the principal amount. To minimize the impact of potential economic dilution upon conversion of the Notes, also in March 2013, the Company entered into convertible note hedge transactions with respect to its common stock. The Company received approximately 7 million shares of the Company's common stock from the exercise of the notes hedges related to the 0.25% Senior Notes during this same period. Warrants In March 2013, the Company entered into a warrants transaction (“ 0.25% Warrants”), whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, shares of the Company’s common stock. The 0.25% Warrants were separate transactions entered into by the Company and were not part of the terms of the 0.25% Senior Notes or the related note hedges. In June 2018, the Company entered into agreements with each of the 0.25% Warrants counterparties to amend and early settle the 0.25% Warrants prior to their scheduled expiration beginning in July 2018. As a result of this amendment, during fiscal 2019, the Company issued, in the aggregate, approximately 6 million shares to the counterparties to settle, via a net share settlement, the entirety of the 0.25% Warrants, which increased the shares used in computing basic net income per share by 4 million for fiscal 2019 . Revolving Credit Facility In April 2018, the Company entered into a Second Amended and Restated Credit Agreement ("Revolving Loan Credit Agreement") with Wells Fargo Bank, National Association, and certain other institutional lenders that provides for $1.0 billion unsecured revolving credit facility (“Credit Facility”) that matures in April 2023. The Revolving Loan Credit Agreement amended and restated the Company’s existing revolving credit facility dated July 2016. The Company may use the proceeds of future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted acquisitions. There were no outstanding borrowings under the Credit Facility as of January 31, 2019 . The Company continues to pay a commitment fee on the available amount of the Credit Facility, which is included within interest expense in the Company's consolidated statement of operations. Interest Expense on Debt The following table sets forth total interest expense recognized related to debt (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Contractual interest expense $ 106 $ 23 $ 19 Amortization of debt issuance costs 16 5 6 Amortization of debt discount 4 26 25 $ 126 $ 54 $ 50 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Domestic $ 839 $ 160 $ 151 Foreign 144 260 28 $ 983 $ 420 $ 179 The provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Current: Federal $ 0 $ (7 ) $ 0 State 39 2 5 Foreign 117 85 72 Total 156 80 77 Deferred: Federal (248 ) (2 ) (183 ) State (37 ) (14 ) (26 ) Foreign 2 (4 ) (12 ) Total (283 ) (20 ) (221 ) Provision for (benefit from) income taxes $ (127 ) $ 60 $ (144 ) In fiscal 2019, the Company released a portion of its valuation allowance related to federal and state deferred tax assets, which was partially offset with the increase in unrecognized tax benefits. In addition, the Company recorded current tax expense for profitable jurisdictions outside of the United States. In fiscal 2018, the Company recorded tax expense primarily from profitable jurisdictions outside of the United States. In fiscal 2017, the Company recorded a net tax benefit of $144 million . The most significant component of this tax amount was the benefit of $210 million resulting from a partial release of its valuation allowance in connection with the acquisition of Demandware. The net deferred tax liability from acquisitions provided an additional source of income to support the realizability of the Company's pre-existing deferred tax assets and, as a result, the Company released a portion of its valuation allowance. The tax benefit associated with the release of the valuation allowance was partially offset by income taxes in profitable jurisdictions outside the United States. In addition, as a result of adopting Accounting Standards Update No. 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Shared Based Payment Accounting” (“ASU 2016-09") and the Company's valuation allowance, it did not record significant current tax expense for the United States. A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions): Fiscal Year Ended January 31, 2019 2018 2017 U.S. federal taxes at statutory rate (1) $ 206 $ 142 $ 63 State, net of the federal benefit 79 (21 ) 7 Effects of non-U.S. operations 379 (35 ) 62 Tax credits (132 ) (107 ) (50 ) Non-deductible expenses 63 53 48 Excess tax benefits related to shared based compensation (137 ) (135 ) (95 ) Effect of U.S. tax law change 43 126 0 Change in valuation allowance (612 ) 42 (179 ) Other, net (16 ) (5 ) 0 Provision for (benefit from) income taxes $ (127 ) $ 60 $ (144 ) (1) The Company's statutory rates were 21.0 percent and 33.8 percent for fiscal 2019 and fiscal 2018, respectively, which reflected the corporate tax rate reduction effective January 1, 2018 due to the Tax Act. In December 2017, the Tax Cuts and Jobs Act ("Tax Act") was enacted into law, significantly changing income tax law that affects U.S. corporations. In fiscal 2018, due to the timing of the enactment and the complexity involved in applying the Tax Act, the Company recorded a provisional tax expense of $126 million associated with the re-measurement of deferred taxes for the corporate rate reduction, which was offset by a reduction in valuation allowance of $136 million . Also, based on the Company's provisional assessment, the transition tax had no impact to its income tax provision. In the fourth quarter of fiscal 2019, the Company completed its analysis, based on the guidance, interpretations and data available, and recorded additional expense of $43 million . The adjustment was primarily due to the reversal of a foreign tax credit benefit associated with a one-time distribution. On January 22, 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has elected to recognize any potential GILTI obligation as an expense in the period it is incurred. The Company receives certain tax incentives in Singapore in the form of reduced tax rates, which will expire in fiscal 2020. The income tax benefits resulting from the reduced tax rates were immaterial in fiscal 2019, 2018, and 2017. Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions): As of January 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 173 $ 617 Deferred stock-based expense 145 79 Tax credits 605 497 Deferred rent expense 71 59 Accrued liabilities 138 113 Basis difference on strategic and other investments 0 41 Financing obligation 102 97 Deferred intercompany transactions 0 90 Other 22 15 Total deferred tax assets 1,256 1,608 Less valuation allowance (205 ) (810 ) Deferred tax assets, net of valuation allowance 1,051 798 Deferred tax liabilities: Deferred commissions (347 ) (334 ) Purchased intangibles (382 ) (205 ) Depreciation and amortization (145 ) (166 ) Basis difference on strategic and other investments (56 ) 0 Deferred revenue (17 ) (82 ) Other 0 (5 ) Total deferred tax liabilities (947 ) (792 ) Net deferred tax assets $ 104 $ 6 At January 31, 2019 , for federal income tax purposes, the Company had net operating loss carryforwards of approximately $2.1 billion , which expire in fiscal 2021 through fiscal 2038, federal research and development tax credits of approximately $381 million , which expire in fiscal 2020 through fiscal 2039, foreign tax credits of approximately $88 million , which expire in fiscal 2020 through fiscal 2029, and alternative minimum tax credits of $1 million , which the Company expects to receive as a refund under the Tax Act. For California income tax purposes, the Company had net operating loss carryforwards of approximately $765 million which expire beginning in fiscal 2020 through fiscal 2039, California research and development tax credits of approximately $281 million , which do not expire, and $9 million of enterprise zone tax credits, which expire in fiscal 2024 through fiscal 2026. For other states' income tax purposes, the Company had net operating loss carryforwards of approximately $1.0 billion , which expire beginning in fiscal 2021 through fiscal 2039 and tax credits of approximately $41 million , which expire beginning in fiscal 2021 through fiscal 2033. Utilization of the Company’s net operating loss carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The Company had a valuation allowance of $205 million and $810 million as of January 31, 2019 and January 31, 2018 respectively. The Company regularly assesses the realizability of its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company evaluates and weighs all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. The assessment requires significant judgment and is performed in each of the applicable jurisdictions. The Company demonstrated sustained profitability evidenced by three consecutive years of positive earnings as well as forecasted continuing profitability at the worldwide and U.S. jurisdictional levels. As a result, the Company determined that there was sufficient positive evidence to release a portion of its valuation allowance related to federal and state deferred tax assets, resulting in a tax benefit of $612 million during fiscal 2019. The valuation allowance at the end of January 31, 2019 was primarily related to net operating loss and tax credits in certain state jurisdictions. The Company will continue to evaluate the need for valuation allowances for its deferred tax assets. Tax Benefits Related to Stock-Based Compensation The total income tax benefit in the accompanying consolidated statements of operations related to stock-based awards was $236 million , $265 million and $229 million for fiscal 2019 , 2018 and 2017 , respectively. For fiscal 2018 and 2017, majority of the tax benefit was not recognized as a result of the valuation allowance. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company had gross unrecognized tax benefits of $852 million , $304 million , and $231 million as of January 31, 2019, 2018, and 2017 respectively. A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2019 , 2018 and 2017 is as follows (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Beginning of period $ 304 $ 231 $ 173 Tax positions taken in prior period: Gross increases 474 31 18 Gross decreases (2 ) (6 ) (1 ) Tax positions taken in current period: Gross increases 107 51 58 Settlements (15 ) (1 ) (16 ) Lapse of statute of limitations (10 ) (8 ) (1 ) Currency translation effect (6 ) 6 0 End of period $ 852 $ 304 $ 231 During fiscal 2019, the Company reported an increase of approximately $548 million in its unrecognized tax benefits primarily for tax issues related to the integrations of certain historical acquisitions as a result of recent developments of on-going audits and court cases. For fiscal 2019 , total unrecognized tax benefits in an amount of $631 million , if recognized, would reduce income tax expense and the Company’s effective tax rate. For fiscal 2018 and 2017 , total unrecognized tax benefits in an amount of $77 million and $73 million , respectively, if recognized, would reduce income tax expense and the Company’s effective tax rate after considering the impact of the change in valuation allowance in the U.S. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the income tax provision. The Company recorded an immaterial amount for penalties and interest for each of fiscal 2019 , 2018 and 2017 . The balance in the non-current income tax payable related to penalties and interest was $10 million , $6 million and $7 million as of January 31, 2019 , 2018 and 2017, respectively. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, France, United Kingdom and Germany. In March 2017, the Company received the final notice of proposed adjustments primarily related to transfer pricing issues from the IRS. The Company is currently appealing the IRS proposed adjustments. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. The Company has operations and taxable presence in multiple jurisdictions in the U.S. and outside of the U.S. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions around the world. The Company currently considers U.S. federal and state, Canada, Japan, Australia, Germany, France and the United Kingdom to be major tax jurisdictions. The Company’s U.S. federal and state tax returns since February 1999, which was the inception of the Company, remain open to examination. With some exceptions, tax years prior to fiscal 2016 in jurisdictions outside of U.S. are generally closed. However, in Japan and United Kingdom, the Company is no longer subject to examinations for years prior to fiscal 2015 and fiscal 2017, respectively. The Company anticipates it is reasonably possible that a decrease of unrecognized tax benefits up to approximately $3 million may occur in the next 12 months, as the applicable statutes of limitations lapse. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock, including options, restricted stock units, warrants and the convertible senior notes. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method. A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions ): 4 Fiscal Year Ended January 31, 2019 2018 2017 Numerator: Net income $ 1,110 $ 360 $ 323 Denominator: Weighted-average shares outstanding for basic earnings per share 751 715 688 Effect of dilutive securities: Convertible senior notes which matured in April 2018 1 5 2 Employee stock awards 21 14 10 Warrants 2 1 0 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 775 735 700 The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Employee stock awards 4 7 11 Warrants 0 0 17 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company maintains the following stock plans: the ESPP, the 2013 Equity Incentive Plan and the 2014 Inducement Equity Incentive Plan (“2014 Inducement Plan”). As of January 31, 2019 and January 31, 2018 , $76 million and $63 million , respectively, was withheld on behalf of employees for future purchases under the ESPP and is recorded in accrued compensation. From February 1, 2006 through July 2013, options issued had a term of five years. After July 2013, options issued have a term of seven years. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share: Fiscal Year Ended January 31, Stock Options 2019 2018 2017 Volatility 27.0 - 28.0 % 28.0 - 31.4 % 31.4 - 32.3 % Estimated life 3.5 years 3.5 years 3.5 years Risk-free interest rate 2.5 - 3.0 % 1.4 - 2.3 % 0.9 - 1.6 % Weighted-average fair value per share of grants $ 28.89 $ 22.71 $ 19.13 Fiscal Year Ended January 31, ESPP 2019 2018 2017 Volatility 22.5 - 25.5 % 21.3 - 27.6 % 28.2 - 35.2 % Estimated life 0.75 years 0.75 years 0.75 years Risk-free interest rate 2.0 - 2.6 % 1.1 - 1.7 % 0.5 - 1.0 % Weighted-average fair value per share of grants $ 32.90 $ 23.64 $ 20.18 The Company estimated its future stock price volatility considering both its observed option-implied volatilities and its historical volatility calculations. Management believes this is the best estimate of the expected volatility over the expected life of its stock options and stock purchase rights. The estimated life for the stock options was based on an analysis of historical exercise activity. The risk-free interest rate is based on the rate for a U.S. government security with the same estimated life at the time of the option grant and the stock purchase rights. The estimated forfeiture rate applied is based on historical forfeiture rates. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option pricing model. In fiscal 2016 and fiscal 2017, the Company granted performance-based restricted stock unit awards to the Chairman of the Board and Chief Executive Officer and certain executive officers, including the Chairman of the Board and Chief Executive Officer, respectively. In fiscal 2019, the Company granted additional performance-based restricted stock unit awards to certain employees, including the Chairman of the Board and Co-Chief Executive Officer and other senior executives. The performance-based restricted stock unit awards are subject to vesting based on a performance-based condition and a service-based condition. At the end of the three -year service period, based on the Company's share price performance, these performance-based restricted stock units will vest in a percentage of the target number of shares between 0 and 200% , depending on the extent the performance condition is achieved. Stock option activity, excluding the ESPP is as follows: Options Outstanding Shares Available for Grant (in thousands) Outstanding Stock Options (in thousands) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Balance as of January 31, 2018 50,313 21,735 $ 65.96 Increase in shares authorized: 2013 Equity Incentive Plan 40,000 0 0.00 Assumed equity plans 8,357 0 0.00 Options granted under all plans (13,846 ) 13,846 69.04 Restricted stock activity (19,937 ) 0 0.00 Performance-based restricted stock units (1,911 ) 0 0.00 Stock grants to board and advisory board members (146 ) 0 0.00 Exercised 0 (8,495 ) 44.40 Plan shares expired (163 ) 0 0.00 Canceled 1,140 (1,140 ) 77.59 Balance as of January 31, 2019 63,807 25,946 $ 74.15 $ 2,019 Vested or expected to vest 24,463 $ 72.65 $ 1,941 Exercisable as of January 31, 2019 12,770 $ 55.58 $ 1,231 The total intrinsic value of the options exercised during fiscal 2019 , 2018 and 2017 was $784 million , $373 million and $224 million , respectively. The intrinsic value is the difference between the current market 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 is approximately 5 years. As of January 31, 2019 , options to purchase 12.8 million shares were vested at a weighted average exercise price of $55.58 per share and had a remaining weighted-average contractual life of approximately 4 years. The total intrinsic value of these vested options as of January 31, 2019 was $1.2 billion . During fiscal 2019 , the Company recognized stock-based expense related to its equity plans for employees and non-employee directors of $1.3 billion . As of January 31, 2019 , the aggregate stock compensation remaining to be amortized to costs and expenses was approximately $2.5 billion . The Company will amortize this stock compensation balance as follows: $1.2 billion during fiscal 2020 ; $0.8 billion during fiscal 2021 ; $453 million during fiscal 2022 ; $108 million during fiscal 2023 and $8 million during fiscal 2024 . The expected amortization reflects only outstanding stock awards as of January 31, 2019 and assumes no forfeiture activity. The aggregate stock compensation remaining to be amortized to costs and expenses will be recognized over a weighted average period of 2 years. The following table summarizes information about stock options outstanding as of January 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in thousands) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Shares (in thousands) Weighted- Average Exercise Price $0.03 to $21.54 3,664 6.3 $ 11.91 2,273 $ 9.77 $22.12 to $59.34 6,119 2.9 53.60 5,805 54.77 $59.37 to $75.01 995 5.2 68.37 442 70.65 $75.57 3,920 4.8 75.57 1,627 75.57 $76.48 to $82.08 3,634 3.9 80.85 2,391 80.86 $82.55 to $113.00 954 5.6 98.03 232 95.36 $118.04 to $155.52 6,660 6.2 120.23 0 0.00 25,946 4.9 $ 74.15 12,770 $ 55.58 Restricted stock activity is as follows: Restricted Stock Outstanding Outstanding (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in millions) Balance as of January 31, 2018 19,018 $ 77.85 Granted - restricted stock units and awards 12,221 122.47 Granted - performance-based stock units 541 112.48 Canceled (1,990 ) 91.35 Vested and converted to shares (8,631 ) 77.63 Balance as of January 31, 2019 21,159 $ 103.33 $ 3,215 Expected to vest 18,491 $ 2,810 The restricted stock, which upon vesting entitles the holder to one share of common stock for each share of restricted stock, has an exercise price of $0.001 per share, which is equal to the par value of the Company’s common stock, and generally vests over four years . The total fair value of shares vested during fiscal 2019 , 2018 and 2017 was $1.1 billion , $953 million and $640 million respectively. Common Stock The following number of shares of common stock were reserved and available for future issuance at January 31, 2019 (in thousands): Options outstanding 25,946 Restricted stock awards and units and performance-based stock units outstanding 21,159 Stock available for future grant or issuance: 2013 Equity Incentive Plan 63,342 2014 Inducement Plan 352 Acquired equity plans 113 Amended and Restated 2004 Employee Stock Purchase Plan 4,067 114,979 During fiscal years 2019 , 2018 and 2017 , certain board members received stock grants totaling 39,350 , 57,832 and 62,632 shares of common stock, respectively for board services pursuant to the terms described in the 2013 Plan and previously, the 2004 Outside Directors Stock Plan. The expense related to these awards, which was expensed immediately at the time of the issuance, totaled $5 million for each year in fiscal 2019 , 2018 and 2017 , respectively. Preferred Stock The Company’s board of directors has the authority, without further action by stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series. The Company’s board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing a change in control. As of January 31, 2019 and 2018 , no shares of preferred stock were outstanding. |
Commitments
Commitments | 12 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Letters of Credit As of January 31, 2019 , the Company had a total of $92 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through December 2030. Leases The Company leases facilities space and certain fixed assets under non-cancelable operating and capital leases with various expiration dates. As of January 31, 2019 , the future minimum lease payments under non-cancelable operating and capital leases are as follows (in millions ): Capital Leases (1) Operating Leases (2) Financing Obligation -Leased Facility (3) Fiscal Period: Fiscal 2020 $ 200 $ 778 $ 22 Fiscal 2021 0 658 23 Fiscal 2022 0 466 23 Fiscal 2023 0 369 24 Fiscal 2024 0 314 24 Thereafter 0 1,610 163 Total minimum lease payments 200 $ 4,195 $ 279 Less: amount representing interest (9 ) Present value of capital lease obligations $ 191 (1) As of January 31, 2019 , the capital lease obligation is included in accrued expenses and other liabilities on the consolidated balance sheet. (2) Operating leases do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $146 million in the next five years and $79 million thereafter. (3) Total Financing Obligation - Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest and the implied lease for the land. As of January 31, 2019 , $215 million of the total $279 million above was recorded to Financing obligation leased facility, of which the current portion is included in accrued expenses and other liabilities and the noncurrent portion is included in other noncurrent liabilities on the consolidated balance sheet. The table above excludes renewal terms for facilities and certain services that provide the Company with the option to renew. The Company's future contractual obligations would change if the Company exercised these options. In addition, the table above excludes two separate agreements for office facilities to be constructed. As of January 31, 2019 construction has not commenced on either of these buildings and the timing of completion of construction is unknown. Due to this uncertainty the entire commitment for these two obligations are excluded from the table above. These agreements are as follows: • approximately 324,000 rentable square feet of office space in a building to be constructed as part of the Company's urban campus in San Francisco, California. As of January 31, 2019 , construction has not yet commenced on the building and is dependent on the developer obtaining approval from the City and County of San Francisco. The Company expects to begin occupying the space in fiscal 2024 and the total non-cancelable minimum payments under this agreement are approximately $480 million over 16 years . Construction has not commenced on the building and is dependent on the developer obtaining approvals from the City and County of San Francisco. • approximately 603,000 rentable square feet of office space in a building to be constructed in Chicago, Illinois. As of January 31, 2019 construction has not yet commenced on the building. The Company expects to begin occupying the space in fiscal 2022 and the total non-cancelable minimum payments under this agreement are approximately $475 million over 17 years . The terms of the lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Of the total operating lease commitment balance of $4.2 billion , approximately $3.5 billion is related to facilities space. The remaining commitment amount is related to computer equipment and furniture and fixtures. Rent expense for fiscal 2019, 2018 and 2017 was $365 million , $285 million and $226 million , respectively. The Company has entered into various contractual commitments with infrastructure service providers for a total commitment of $2.0 billion . The Company paid $156 million in connection with these agreements during fiscal 2019. As of January 31, 2019 the total remaining commitment is approximately $1.8 billion and $264 million is due in the next fiscal year. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) plan covering all eligible employees in the United States and a Registered Retirement Savings plan covering all eligible employees in Canada. Since January 1, 2006, the Company has been contributing to the plans. Total Company contributions during fiscal 2019 , 2018 and 2017 , were $106 million , $93 million and $56 million , respectively. |
Legal Proceedings and Claims
Legal Proceedings and Claims | 12 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Claims | Legal Proceedings and Claims In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour, and other claims. The Company has been, and may in the future be put on notice and/or sued by third-parties for alleged infringement of their proprietary rights, including patent infringement. In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s operating results. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute or other contingency, an unfavorable resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter. In December 2018, the Company was named as a nominal defendant and certain of its current and former directors were named as defendants in a purported shareholder derivative action in the Delaware Court of Chancery. The complaint alleged that excessive compensation was paid to such directors for their service, included claims of breach of fiduciary duty and unjust enrichment, and sought restitution and disgorgement of a portion of the directors' compensation. Subsequently, three similar shareholder derivative actions were filed in the Delaware Court of Chancery. The cases have been consolidated under the caption In re Salesforce.com, Inc. Derivative Litigation . The Company believes that the ultimate outcome of this litigation will not materially and adversely affect its business, financial condition, results of operations or cash flows. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions In January 1999, the Salesforce.com Foundation, also referred to as the Foundation, was chartered on an idea of leveraging the Company’s people, technology and resources to help improve communities around the world. The Company calls this integrated philanthropic approach the 1-1-1 model. Beginning in 2008, Salesforce.org, which is a non-profit public benefit corporation, was established to resell the Company's services to nonprofit organizations and certain higher education organizations. The Company’s Chairman is the chairman of both the Foundation and Salesforce.org. The Company’s Chairman holds one of the three Foundation board seats. The Company’s Chairman, one of the Company’s employees and one of the Company’s board members hold three of Salesforce.org’s nine board seats. The Company does not control the Foundation’s or Salesforce.org's activities, and accordingly, the Company does not consolidate either of the related entities' statement of activities with its financial results. Since the Foundation’s and Salesforce.org’s inception, the Company has provided at no charge certain resources to those entities' employees such as office space, furniture, equipment, facilities, services and other resources. The value of these items was approximately $15 million , $11 million and $3 million for fiscal 2019 , 2018 and 2017, respectively. Additionally, the Company allows Salesforce.org to donate subscriptions of the Company’s services to other qualified non-profit organizations. The Company also allows Salesforce.org to resell the Company’s service to non-profit organizations and certain education entities. The Company does not charge Salesforce.org for these subscriptions, therefore income from subscriptions sold to non-profit organizations is donated back to the community through charitable grants made by the Foundation and Salesforce.org. The value of the subscriptions sold by Salesforce.org pursuant to the reseller agreement, as amended, was approximately $253 million , $183 million and $112 million for fiscal 2019 , 2018 and 2017, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for fiscal 2019 and 2018 is as follows: 1st 2nd 3rd 4th Fiscal Year (in millions, except per share data) Fiscal 2019 Revenues $ 3,006 $ 3,281 $ 3,392 $ 3,603 $ 13,282 Gross profit 2,239 2,432 2,503 2,657 9,831 Income from operations 191 115 92 137 535 Net income $ 344 $ 299 $ 105 $ 362 $ 1,110 Basic net income per share $ 0.47 $ 0.40 $ 0.14 $ 0.47 $ 1.48 Diluted net income per share $ 0.46 $ 0.39 $ 0.13 $ 0.46 $ 1.43 Fiscal 2018 Revenues $ 2,397 $ 2,577 $ 2,701 $ 2,865 $ 10,540 Gross profit 1,746 1,907 1,987 2,127 7,767 Income from operations 4 84 155 211 454 Net income $ 1 $ 46 $ 107 $ 206 $ 360 Basic net income per share $ 0.00 $ 0.06 $ 0.15 $ 0.28 $ 0.50 Diluted net income per share $ 0.00 $ 0.06 $ 0.14 $ 0.28 $ 0.49 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | salesforce.com, inc. Schedule II Valuation and Qualifying Accounts (in millions) Description Balance at beginning of year Additions Deductions write-offs Balance at end of year Fiscal year ended January 31, 2019 Allowance for doubtful accounts $ 21 $ 19 $ (18 ) $ 22 Fiscal year ended January 31, 2018 Allowance for doubtful accounts $ 12 $ 31 $ (22 ) $ 21 Fiscal year ended January 31, 2017 Allowance for doubtful accounts $ 10 $ 18 $ (16 ) $ 12 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2019 , for example, refer to the fiscal year ending January 31, 2019 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto. Significant estimates and assumptions made by management include the determination of: • the standalone selling price (SSP) of performance obligations for contracts with multiple performance obligations; • the estimate of variable consideration as part of the adoption of Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”); • the fair value of assets acquired and liabilities assumed for business combinations; • the recognition, measurement and valuation of current and deferred income taxes; • the average period of benefit associated with costs capitalized to obtain revenue contracts; • the fair value of certain stock awards issued; • the useful lives of intangible assets; and • the valuation of privately-held strategic investments. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segments | Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the Company's offerings operate on its single Customer Success Platform and most of the Company's products are deployed in an identical way, and the Company’s chief operating decision makers evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. In August 2018, the Company moved to a co-chief executive officer model with the promotion of the Company's vice chairman and chief operating officer. The Company determined that both co-chief executive officers also serve as chief operating decision makers for the purposes of segment reporting. Despite the change in the chief operating decision maker, the Company determined no change to segment reporting was necessary as there was no change in the components of the Company for which separate financial information is regularly evaluated. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against the recorded allowance when the Company has exhausted collection efforts without success. No single customer accounted for more than five percent of accounts receivable at January 31, 2019 and January 31, 2018 . No single customer accounted for five percent or more of total revenue during fiscal 2019 , 2018 and 2017. As of January 31, 2019 and January 31, 2018 , assets located outside the Americas were 14 percent and 17 percent of total assets, respectively. As of January 31, 2019 and January 31, 2018 , assets located in the United States were 84 percent and 81 percent of total assets, respectively. |
Revenue Recognition and Costs Capitalized to Obtain Revenue Contracts | Revenue Recognition Adoption of Topic 606 Effective at the start of fiscal 2019, the Company adopted the provisions and expanded disclosure requirements described in ASU 2014-09 also referred to as Topic 606. The Company adopted the standard using the full retrospective method. Accordingly, the results for the prior comparable periods were adjusted to conform to the current period measurement and recognition of results. The impact of Topic 606 on reported revenue results was not material. Topic 606, however, modified the Company’s revenue recognition policy in the following ways: • Removal of the limitation on contingent revenue, which can result in the subscription and support revenue for certain multi-year customer contracts being recognized earlier in the duration of the contract term; • More allocation of subscription and support revenues across the Company’s cloud service offerings and to professional services revenue; and • Inclusion of an estimate of variable consideration, such as overage fees, in the total transaction price, which results in the estimated fees being recognized ratably over the contract term, further resulting in the recognition of subscription and support revenues before the actual variable consideration occurs. The Company used the following transitional practical expedients in the adoption of Topic 606: • The Company has not disclosed the remaining performance obligation (formerly, remaining transaction price) for all of the reporting periods prior to the first quarter of fiscal 2019; and • Contracts modified before fiscal 2017 were reflected using the retrospective method. Additionally, as part of its business strategy, the Company periodically makes acquisitions of complementary businesses, services and technology. These acquired businesses may have customer arrangements that include the delivery of an on-premise software element combined with a software-as-a-service element. This was the case with the Company's acquisition of MuleSoft, Inc. (“MuleSoft”) in May 2018. The Company has to apply significant judgment to determine the appropriate revenue recognition policy for such products and services since Topic 606 eliminated the provision that service revenue accounting was appropriate when the relative selling price of one or more deliverables in a multiple element solution arrangement could not be determined. Revenue Recognition Policy The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, "Cloud Services"), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management and implementation services. Other revenue consists primarily of training fees. With the adoption of Topic 606, revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through application of the following steps: • Identification of the contract, or contracts with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as the Company satisfies the performance obligations. The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions. Subscription and Support Revenues Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement. Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Since the May 2018 acquisition of MuleSoft, subscription and support revenues also includes software licenses. These licenses for on-premises software provide the customer with a right to use the software as it exists when made available. Customers purchase these licenses through a subscription. Revenues from distinct licenses are generally recognized upfront when the software is made available to the customer. In cases where the Company allocates revenue to software updates and support, primarily because the updates are provided at no additional charge, such revenue is recognized as the updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually. Typical payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred. Professional Services and Other Revenues The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts and ratably over the contract term for subscription professional services contracts. Training revenues are recognized as the services are performed. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that may include promises to transfer multiple Cloud Services, software licenses, premium support and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Cloud Services and software licenses are distinct as such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative standalone selling price ("SSP") basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical sales and contract prices. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices. If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include market conditions or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. Costs Capitalized to Obtain Revenue Contracts As part of its adoption of ASU 2014-09, the Company capitalizes incremental costs of obtaining a non-cancelable subscription and support revenue contract. The provisions of ASU 2014-09 are significantly different than the Company's previous accounting for deferred commissions. The new guidance results in the capitalization of significantly more costs and longer amortization lives. Under the prior accounting guidance, the Company only capitalized sales commissions that had a direct and incremental relationship to a specific new revenue contract and amortized the capitalized amounts over the initial contract period, which was typically 12 to 36 months. Under the new accounting, the capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees, and to a lesser extent (4) success fees paid to partners in emerging markets where the Company has a limited presence. Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years , which, although longer than the typical initial contract period, reflects the average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years . The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying consolidated statements of operations. During fiscal 2019 , the Company capitalized $1.0 billion of costs to obtain revenue contracts and amortized $0.7 billion to marketing and sales expense. During the same period a year ago, the Company capitalized $1.2 billion of costs to obtain revenue contracts and amortized $0.6 billion to marketing and sales expense. Costs capitalized to obtain a revenue contract, net on the Company's consolidated balance sheets totaled $2.0 billion at January 31, 2019 and $1.8 billion at January 31, 2018 . There were no impairments of costs to obtain revenue contracts in fiscal 2019, 2018 and 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. |
Marketable Securities | Marketable Securities The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. To determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income. |
Strategic Investments | Strategic Investments The Company holds strategic investments in publicly held equity securities and privately held debt and equity securities in which the Company does not have a controlling interest or significant influence. Publicly held equity securities are measured using quoted prices in their respective active markets with changes recorded through gains (losses) on strategic investments, net on the consolidated statement of operations. Privately held equity securities without a readily determinable fair value are recorded at cost and adjusted for impairments and observable price changes with a same or similar security from the same issuer and are recorded through gains (losses) on strategic investments, net on the consolidated statement of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income on the consolidated balance sheet. If, based on the terms of these publicly traded and privately held securities, the Company determines that the Company exercises significant influence on the entity to which these securities relate, the Company will apply the equity method of accounting for such investments. Privately held debt and equity securities are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The carrying value is not adjusted for the Company's privately held equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. Valuations of privately held companies are inherently complex due to the lack of readily available market data. In addition, the determination of whether an orderly transaction is for a same or similar investment requires significant management judgment including the nature of rights and obligations of the investments, the extent to which differences in those rights and obligations would affect the fair values of those investments, and the impact of any differences based on the stage of operational development of the investee. The Company assesses its privately held debt and equity securities strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of the severity and duration of the impairment and qualitative and quantitative analysis of other key factors including the investee’s financial metrics, the investee’s products and technologies meeting or exceeding predefined milestones, market acceptance of the product or technology, other competitive products or technology in the market, general market conditions, management and governance structure of the investee, the investee’s liquidity, debt ratios and the rate at which the investee is using its cash. If the investment is considered to be impaired, the Company recognizes an impairment through the consolidated statement of operations and establishes a new carrying value for the investment. Prior to fiscal 2019, investments in publicly held equity securities were classified as available-for-sale and measured and recorded at fair value with unrealized changes in fair value recorded through other comprehensive income. Prior to fiscal 2019, investments in privately held equity securities in which the Company did not have a controlling interest or significant influence were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. As of January 31, 2019 and January 31, 2018 , the outstanding foreign currency derivative contracts were recorded at fair value on the consolidated balance sheets. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. |
Fair Value Measurement | Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. In addition, the Company measures its strategic investments, including its publicly held equity securities, privately held debt securities and privately held equity securities for which there has been an observable price change in a same or similar security, at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 5 “Fair Value Measurement.” |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and structural components Average weighted useful life of 32 years Building - leased facility 27 years Building improvements 10 years When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Intangible Assets acquired through Business Combinations | Intangible Assets Acquired through Business Combinations Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Impairment Assessment | Impairment Assessment The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable. There were no material impairments of capitalized software, intangible assets, long-lived assets or goodwill during fiscal 2019 , 2018 and 2017. |
Business Combinations | Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will recognize a gain or loss to settle that relationship as of the acquisition date, which is recorded in net gains (losses) on strategic investments within the consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (losses) on strategic investments in the consolidated statement of operations. |
Leases and Asset Retirement Obligations | Leases and Asset Retirement Obligations The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense. In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded as an offset to rent expense and recognized over the sublease life. |
Stock-Based Expense | Stock-Based Expense The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years . The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months . The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount and also allows employees to reduce their percentage election once during a six month purchase period (December 15 and June 15 of each fiscal year), but not increase that election until the next one-year offering period. The ESPP also includes a re-set provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. Stock-based expenses related to performance share grants are measured based on grant date fair value and expensed on a straight-line basis, net of estimated forfeitures, over the service period of the awards, which is generally the vesting term of three years. The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based expense. The Company recognizes stock-based expense equal to the grant date fair value of the restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally four years . |
Advertising Expenses | Advertising Expenses Advertising is expensed as incurred. Advertising expense was $482 million , $373 million and $350 million for fiscal 2019 , 2018 and 2017 , respectively. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statement of comprehensive income. Foreign currency transaction gains and losses are included in other income in the consolidated statement of operations for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. |
Warranties and Indemnification | Warranties and Indemnification The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances. The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying consolidated financial statements. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. |
New Accounting Pronouncements Adopted and Pending Adoption | New Accounting Pronouncements Adopted in Fiscal 2019 Topic 606 In May 2014, the FASB issued ASU 2014-09, which in addition to replacing the existing revenue recognition guidance, provides guidance on the recognition of costs related to obtaining customer contracts. The adoption was material to the Company’s reported operating results and balance sheet for fiscal 2018 and 2017, as it requires additional types of costs to be capitalized and amortized over a longer period. The Company also recorded the related income tax effects, which did not have a material impact due to the Company's valuation allowance. The adoption had no impact to the Company’s operating cash flow. The adoption of ASU 2014-09 impacted the Company's previously reported results as follows (in millions, except per share data): Fiscal Year Ended January 31, 2018 Fiscal Year Ended January 31, 2017 As reported Change As adjusted As reported Change As adjusted Total revenues $ 10,480 $ 60 $ 10,540 $ 8,392 $ 45 $ 8,437 Marketing and sales 4,829 (158 ) 4,671 3,918 (107 ) 3,811 Benefit from (provision for) income taxes (75 ) 15 (60 ) 155 (11 ) 144 Net income $ 127 $ 233 $ 360 $ 180 $ 143 $ 323 Diluted net income per share $ 0.17 $ 0.32 $ 0.49 $ 0.26 $ 0.20 $ 0.46 The number of shares utilized to calculate the fiscal 2018 and 2017 diluted net income per share was 735 million and 700 million , respectively. The adoption of ASU 2014-09 impacted the Company's previously reported financial position as of January 31, 2018 as follows (in millions): As reported Change As adjusted Accounts receivable, net $ 3,918 $ 3 $ 3,921 Costs capitalized to obtain revenue contracts, net 461 210 671 Prepaid expenses and other current assets 390 81 471 Costs capitalized to obtain revenue contracts, noncurrent, net 413 692 1,105 Other assets, net 396 (12 ) 384 Accrued compensation 961 40 1,001 Accrued expenses and other liabilities 973 (3 ) 970 Unearned revenue 7,095 (100 ) 6,995 Other noncurrent liabilities 796 50 846 Stockholders’ equity 9,389 987 10,376 ASU 2016-01 In January 2016, the FASB issued ASU 2016-01, which requires entities to measure equity instruments at fair value and recognize any changes in fair value within the statement of operations. The Company adopted ASU 2016-01 in the first quarter of fiscal 2019 on a prospective basis for privately held equity securities and a modified retrospective basis for publicly held equity investments. Upon adoption of ASU 2016-01, the Company reclassified approximately $13 million of unrealized gains related to its publicly traded equity investments and approximately $6 million reflecting the tax impact, from accumulated other comprehensive loss on the balance sheet to retained earnings. For fiscal 2019 , the Company recorded net unrealized gains of $464 million , which excludes recognized gains on the sale of investments of $78 million , in the consolidated statement of operations, and the Company anticipates additional volatility to the Company's statements of operations in future periods, due to changes in market prices of the Company's investments in publicly held equity investments and the valuation and timing of observable price changes and impairments of its investments in privately held securities. ASU 2016-16 In October 2016, the FASB issued ASU 2016-16, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset when the transfer occurs. The Company adopted the standard in the first quarter of fiscal 2019 using the modified retrospective transition method and reclassified a cumulative-effect adjustment to reduce retained earnings as of the effective date of approximately $17 million . Accounting Pronouncements Pending Adoption ASU 2016-02 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires lessees to record most leases on their balance sheet but recognize the expenses on their statement of operations in a manner similar to current accounting guidance "Leases (Topic 840)". ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 will be effective for fiscal 2020, including interim periods within that reporting period. Upon adoption of ASU 2016-02 the Company plans to elect the package of practical expedients and not reassess prior conclusions on whether contracts are or contain a lease, lease classification, and initial direct costs. In addition, the Company plans to adopt the lessee practical expedient to combine lease and non-lease components for all asset classes. The Company expects to make a policy election to not recognize right-of-use assets or lease liabilities for short term leases of all asset classes. The Company does not plan to elect the practical expedient to use hindsight when determining lease term. ASC 2016-02 will have a material impact on the Company’s consolidated balance sheet. Leases currently designated as operating leases in Note 13, “Commitments,” will be reported on the consolidated balance sheet upon adoption at their net present value, which will increase total assets and liabilities. In addition, the financing obligation and building asset associated with the Company's leased facility at 350 Mission Street will be derecognized upon adoption of ASC 2016-02 and the lease will be accounted for as a finance type lease, which will result in the recognition of a right of use asset and a lease liability. ASU 2016-02 is not expected to have a material impact to the Company’s consolidated statement of operations or net cash provided by operating activities. In addition, the Company does not expect any impact to the Company’s debt covenants. In preparation for adoption of the standard, the Company is in the process of implementing key systems, processes and internal controls to enable the preparation of financial information. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements" ("ASU 2018-11"), which allows for the adoption of ASU 2016-02 to be applied at the beginning of the year of adoption, as opposed to at the beginning of the earliest year presented in the financial statements. The Company will adopt the transitional provisions allowed under ASU 2018-11 and as such, the consolidated balance sheets and statements of operations for prior periods will not be comparable in the year of adoption of ASU 2016-02. ASU 2016-13 In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company's accounts receivables, certain financial instruments and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements in order to adopt the new standard in the first quarter of fiscal 2021. ASU 2018-15 In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (ASU 2018-15) "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset and which costs to expense. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company does not expect the adoption of ASU 2018-15 to be material. |
Reclassifications | Reclassifications Certain reclassifications to fiscal 2018 and 2017 balances were made to conform to the current period presentation in the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows. These reclassifications did not affect total revenues, operating income or net income. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule Of Property And Equipment Estimated Useful Lives | Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Computers, equipment and software 3 to 9 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years Building and structural components Average weighted useful life of 32 years Building - leased facility 27 years Building improvements 10 years |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The adoption of ASU 2014-09 impacted the Company's previously reported results as follows (in millions, except per share data): Fiscal Year Ended January 31, 2018 Fiscal Year Ended January 31, 2017 As reported Change As adjusted As reported Change As adjusted Total revenues $ 10,480 $ 60 $ 10,540 $ 8,392 $ 45 $ 8,437 Marketing and sales 4,829 (158 ) 4,671 3,918 (107 ) 3,811 Benefit from (provision for) income taxes (75 ) 15 (60 ) 155 (11 ) 144 Net income $ 127 $ 233 $ 360 $ 180 $ 143 $ 323 Diluted net income per share $ 0.17 $ 0.32 $ 0.49 $ 0.26 $ 0.20 $ 0.46 The number of shares utilized to calculate the fiscal 2018 and 2017 diluted net income per share was 735 million and 700 million , respectively. The adoption of ASU 2014-09 impacted the Company's previously reported financial position as of January 31, 2018 as follows (in millions): As reported Change As adjusted Accounts receivable, net $ 3,918 $ 3 $ 3,921 Costs capitalized to obtain revenue contracts, net 461 210 671 Prepaid expenses and other current assets 390 81 471 Costs capitalized to obtain revenue contracts, noncurrent, net 413 692 1,105 Other assets, net 396 (12 ) 384 Accrued compensation 961 40 1,001 Accrued expenses and other liabilities 973 (3 ) 970 Unearned revenue 7,095 (100 ) 6,995 Other noncurrent liabilities 796 50 846 Stockholders’ equity 9,389 987 10,376 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue Subscription and Support Revenue by the Company's core service offerings Subscription and support revenues consisted of the following (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Sales Cloud $ 4,040 $ 3,588 $ 3,076 Service Cloud 3,621 2,883 2,343 Salesforce Platform and Other 2,854 1,913 1,433 Marketing and Commerce Cloud 1,898 1,382 947 $ 12,413 $ 9,766 $ 7,799 Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Americas $ 9,445 $ 7,621 $ 6,259 Europe 2,553 1,916 1,383 Asia Pacific 1,284 1,003 795 $ 13,282 $ 10,540 $ 8,437 |
Unearned Revenue | The changes in unearned revenue were as follows (in millions ): Fiscal Year Ended January 31, 2019 Unearned revenue, beginning of period $ 6,995 Billings and other* 14,770 Contribution from contract asset 13 Revenue recognized ratably over time (12,426 ) Revenue recognized over time as delivered (629 ) Revenue recognized at a point in time (227 ) Unearned revenue from business combinations 68 Unearned revenue, end of period $ 8,564 *Other includes, for example, the impact of foreign currency translation |
Remaining Transaction Price | Remaining performance obligation consisted of the following (in billions): Current Noncurrent Total As of January 31, 2019* $ 11.9 $ 13.8 $ 25.7 *Includes $450 million of remaining performance obligation related to the MuleSoft acquisition, including contracts executed subsequent to acquisition. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At January 31, 2019 , marketable securities consisted of the following (in millions ): Investments classified as Marketable Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,027 $ 0 $ (8 ) $ 1,019 U.S. treasury securities 89 0 (1 ) 88 Mortgage backed obligations 79 0 (1 ) 78 Asset backed securities 245 0 (1 ) 244 Municipal securities 104 0 0 104 Foreign government obligations 58 0 (1 ) 57 U.S. agency obligations 4 0 0 4 Time deposits 4 0 0 4 Covered bonds 75 0 0 75 Total marketable securities $ 1,685 $ 0 $ (12 ) $ 1,673 At January 31, 2018 , marketable securities consisted of the following (in millions ): Investments classified as Marketable Securities Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,223 $ 1 $ (7 ) $ 1,217 U.S. treasury securities 196 0 (2 ) 194 Mortgage backed obligations 100 0 (1 ) 99 Asset backed securities 251 0 (1 ) 250 Municipal securities 53 0 (1 ) 52 Foreign government obligations 87 0 (1 ) 86 U.S. agency obligations 19 0 0 19 Commercial paper 11 0 0 11 Covered bonds 51 0 (1 ) 50 Total marketable securities $ 1,991 $ 1 $ (14 ) $ 1,978 |
Schedule of Short-Term and Long-Term Marketable Securities | The contractual maturities of the investments classified as marketable securities are as follows (in millions ): As of January 31, January 31, Due within 1 year $ 482 $ 395 Due in 1 year through 5 years 1,189 1,579 Due in 5 years through 10 years 2 4 $ 1,673 $ 1,978 |
Schedule of Marketable Securities in a Unrealized Loss Position | As of January 31, 2019 , the following marketable securities were in an unrealized loss position (in millions ): Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate notes and obligations $ 392 $ (2 ) $ 457 $ (6 ) $ 849 $ (8 ) U.S. treasury securities 0 0 71 (1 ) 71 (1 ) Mortgage backed obligations 0 0 58 (1 ) 58 (1 ) Asset backed securities 0 0 112 (1 ) 112 (1 ) Foreign government obligations 0 0 49 (1 ) 49 (1 ) $ 392 $ (2 ) $ 747 $ (10 ) $ 1,139 $ (12 ) |
Schedule of Components of Investment Income | The components of investment income are presented below (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Interest income $ 61 $ 37 $ 22 Realized gains 1 1 8 Realized losses (5 ) (2 ) (3 ) Investment income $ 57 $ 36 $ 27 |
Schedules of Strategic Investments | Strategic investments by form and measurement category as of January 31, 2019 were as follows (in millions ): Measurement Category Fair Value (1) Measurement Alternative Other (2) Total Equity securities $ 436 $ 785 $ 50 $ 1,271 Debt securities 0 0 31 31 Balance as of January 31, 2019 $ 436 $ 785 $ 81 $ 1,302 (1) Equity securities under fair value represents the carrying value of strategic investments in publicly held equity securities. (2) Other includes the Company's investments accounted for under the equity method of accounting or amortized cost. Measurement Alternative Adjustments Privately held equity securities accounted for under the measurement alternative as of January 31, 2019 were as follows (in millions): Fiscal Year Ended January 31, 2019 Carrying amount, beginning of period $ 548 Adjustments related to privately held equity securities: Net additions 95 Impairments and downward adjustments (32 ) Upward adjustments 174 Carrying amount, end of period $ 785 Gains (losses) on strategic investments, net Gains and losses recognized in fiscal 2019 , 2018 and 2017 were as follows (in millions): 4 Fiscal Year Ended January 31, 2019 2018 2017 Net gains recognized on publicly traded securities $ 345 $ 0 $ 0 Net gains recognized on privately held securities 133 19 31 Net gains recognized on sales of equity securities 74 0 0 Net losses recognized on debt securities (10 ) 0 0 Gains on strategic investments, net $ 542 $ 19 $ 31 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables | Details on outstanding foreign currency derivative contracts are presented below (in millions ): As of January 31, 2019 January 31, 2018 Notional amount of foreign currency derivative contracts $ 4,496 $ 1,871 Fair value of foreign currency derivative contracts 25 12 |
Fair Value of Outstanding Derivative Instruments | The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in millions ): As of Balance Sheet Location January 31, 2019 January 31, 2018 Foreign currency derivative contracts Prepaid expenses and other current assets $ 42 $ 18 |
Schedule of The Effect of The Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations | Gains (losses) on derivative instruments not designated as hedging instruments recorded in other income in the consolidated statements of operations during fiscal 2019 , 2018 and 2017, respectively, are summarized below (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Foreign currency derivative contracts $ 34 $ 15 $ (86 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value an a Recurring Basis | The following table presents information about the Company’s assets that are measured at fair value as of January 31, 2019 and indicates the fair value hierarchy of the valuation (in millions ): Description Quoted Prices in Significant Other Significant Balance as of January 31, 2019 Cash equivalents (1): Time deposits $ 0 $ 314 $ 0 $ 314 Money market mutual funds 1,234 0 0 1,234 Marketable securities: Corporate notes and obligations 0 1,019 0 1,019 U.S. treasury securities 0 88 0 88 Mortgage backed obligations 0 78 0 78 Asset backed securities 0 244 0 244 Municipal securities 0 104 0 104 Foreign government obligations 0 57 0 57 U.S. agency obligations 0 4 0 4 Time deposits 0 4 0 4 Covered bonds 0 75 0 75 Strategic investments: Publicly held equity securities 436 0 0 436 Foreign currency derivative contracts (2) 0 42 0 42 Total assets $ 1,670 $ 2,029 $ 0 $ 3,699 ___________ (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2019 , in addition to $1.1 billion of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2019 . The following table presents information about the Company’s assets that are measured at fair value as of January 31, 2018 and indicates the fair value hierarchy of the valuation (in millions ): Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of January 31, 2018 Cash equivalents (1): Time deposits $ 0 $ 543 $ 0 $ 543 Money market mutual funds 1,389 0 0 1,389 Marketable securities: Corporate notes and obligations 0 1,217 0 1,217 U.S. treasury securities 0 194 0 194 Mortgage backed obligations 0 99 0 99 Asset backed securities 0 250 0 250 Municipal securities 0 52 0 52 Foreign government obligations 0 86 0 86 U.S. agency obligations 0 19 0 19 Commercial paper 0 11 0 11 Covered bonds 0 50 0 50 Strategic investments: Publicly held equity securities 24 0 0 24 Foreign currency derivative contracts (2) 0 18 0 18 Total assets $ 1,413 $ 2,539 $ 0 $ 3,952 ______________ (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2018 , in addition to $611 million of cash. (2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2018 . |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property And Equipment | Property and equipment, net consisted of the following (in millions ): As of January 31, 2019 January 31, 2018 Land $ 184 $ 184 Buildings and building improvements 629 626 Computers, equipment and software 1,735 1,629 Furniture and fixtures 188 139 Leasehold improvements 1,098 825 Property and equipment, gross 3,834 3,403 Less accumulated depreciation and amortization (1,783 ) (1,456 ) Property and equipment, net $ 2,051 $ 1,947 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | The acquisition date fair value of the consideration transferred for Datorama was approximately $766 million , which consisted of the following (in millions): Fair Value Cash $ 136 Common stock issued 537 Fair value of stock options and restricted stock awards assumed 93 Total $ 766 The acquisition date fair value of the consideration transferred for MuleSoft was approximately $6.4 billion , which consisted of the following (in millions): Fair Value Cash $ 4,860 Common stock issued 1,178 Fair value of stock options and restricted stock awards assumed 387 Total $ 6,425 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 21 Accounts receivable 9 Other current and noncurrent assets 3 Intangible assets 202 Goodwill 586 Accounts payable, accrued expenses and other liabilities, current and noncurrent (10 ) Unearned revenue (4 ) Deferred tax liability (41 ) Net assets acquired $ 766 The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 57 Marketable securities 233 Accounts receivable 69 Contract asset 122 Other current and noncurrent assets 29 Acquired customer contract asset, current and noncurrent - intangible asset 61 Intangible assets 1,279 Goodwill 4,816 Accounts payable, accrued expenses and other liabilities, current and noncurrent (40 ) Unearned revenue (57 ) Deferred tax liability (144 ) Net assets acquired $ 6,425 |
Schedule of Acquired Finite-Lived Intangible Assets | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 159 4 years Customer relationships 42 8 years Other purchased intangible assets 1 1 year Total intangible assets subject to amortization $ 202 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions): Fair Value Useful Life Developed technology $ 224 4 years Customer relationships 1,046 8 years Other purchased intangible assets 9 1 year Total intangible assets subject to amortization $ 1,279 |
Pro Forma Financial Information | The amounts of revenue and pretax loss of MuleSoft included in the Company’s consolidated statement of operations from the acquisition date in May 2018 through January 31, 2019 are as follows (in millions): Total revenues $ 431 Pretax loss (286 ) The following pro forma financial information summarizes the combined results of operations for the Company and MuleSoft, as though the companies were combined as of the beginning of the Company’s fiscal 2018. The unaudited pro forma financial information was as follows (in millions): Fiscal Year Ended January 31, 2019 2018 Total revenues $ 13,366 $ 10,875 Pretax income (loss) 1,012 (85 ) Net income (loss) 987 (45 ) |
Intangible Assets Acquired Th_2
Intangible Assets Acquired Through Business Combinations and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Acquired From Business Combinations | Intangible assets acquired through business combinations are as follows (in millions ): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted Jan 31, 2018 Additions and retirements, net Jan 31, 2019 Jan 31, 2018 Expense and retirements, net Jan 31, 2019 Jan 31, 2018 Jan 31, 2019 Acquired developed technology $ 1,027 $ 402 $ 1,429 $ (677 ) $ (212 ) $ (889 ) $ 350 $ 540 2.9 Customer relationships 831 1,107 1,938 (359 ) (201 ) (560 ) 472 1,378 6.3 Other (1) 53 (1 ) 52 (48 ) 1 (47 ) 5 5 2.5 Total $ 1,911 $ 1,508 $ 3,419 $ (1,084 ) $ (412 ) $ (1,496 ) $ 827 $ 1,923 5.3 (1) Included in other are trade names, trademarks and territory rights. |
Expected Future Amortization Expense for Purchased Intangible Assets | The expected future amortization expense for intangible assets as of January 31, 2019 is as follows (in millions ): Fiscal Period: Fiscal 2020 $ 472 Fiscal 2021 414 Fiscal 2022 351 Fiscal 2023 211 Fiscal 2024 148 Thereafter 327 Total amortization expense $ 1,923 |
Schedule of Goodwill | The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions ): Balance as of January 31, 2017 $ 7,264 Acquisitions 35 Adjustments of acquisition date fair values, including the effect of foreign currency translation 15 Balance as of January 31, 2018 $ 7,314 CloudCraze acquisition 134 MuleSoft acquisition 4,816 Datorama acquisition 586 Adjustments of acquisition date fair values, including the effect of foreign currency translation 1 Balance as of January 31, 2019 $ 12,851 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The carrying values of the Company's borrowings were as follows (in millions ): Instrument Date of issuance Maturity date Effective interest rate for fiscal 2019 January 31, 2019 January 31, 2018 2021 Term Loan May 2018 May 2021 3.05% $ 499 $ 0 2023 Senior Notes April 2018 April 2023 3.26% 993 0 2028 Senior Notes April 2018 April 2028 3.70% 1,488 0 2019 Term Loan July 2016 July 2019 2.96% (1) 0 498 Loan assumed on 50 Fremont February 2015 June 2023 3.75% 196 199 0.25% Convertible Senior Notes March 2013 April 2018 2.53% (2) 0 1,023 Total carrying value of debt 3,176 1,720 Less current portion of debt (3 ) (1,025 ) Total noncurrent debt $ 3,173 $ 695 (1) The Company repaid the 2019 Term Loan in full in January 2019. (2) From February 1, 2018 through maturity, the effective interest rate for the Convertible Senior Notes was 2.53% . |
Schedule of Maturities of Long-term Debt | The expected future principal payments for all borrowings as of January 31, 2019 is as follows (in millions ): Fiscal period: Fiscal 2020 $ 3 Fiscal 2021 4 Fiscal 2022 504 Fiscal 2023 4 Fiscal 2024 1,183 Thereafter 1,500 Total principal outstanding $ 3,198 |
Schedule of Interest Expense | The following table sets forth total interest expense recognized related to debt (in millions ): Fiscal Year Ended January 31, 2019 2018 2017 Contractual interest expense $ 106 $ 23 $ 19 Amortization of debt issuance costs 16 5 6 Amortization of debt discount 4 26 25 $ 126 $ 54 $ 50 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Domestic And Foreign Components of Income (Loss) Before Provision (Benefit) For Income Taxes | The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Domestic $ 839 $ 160 $ 151 Foreign 144 260 28 $ 983 $ 420 $ 179 |
Schedule of Income Taxes Provision (Benefit) | The provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Current: Federal $ 0 $ (7 ) $ 0 State 39 2 5 Foreign 117 85 72 Total 156 80 77 Deferred: Federal (248 ) (2 ) (183 ) State (37 ) (14 ) (26 ) Foreign 2 (4 ) (12 ) Total (283 ) (20 ) (221 ) Provision for (benefit from) income taxes $ (127 ) $ 60 $ (144 ) |
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions): Fiscal Year Ended January 31, 2019 2018 2017 U.S. federal taxes at statutory rate (1) $ 206 $ 142 $ 63 State, net of the federal benefit 79 (21 ) 7 Effects of non-U.S. operations 379 (35 ) 62 Tax credits (132 ) (107 ) (50 ) Non-deductible expenses 63 53 48 Excess tax benefits related to shared based compensation (137 ) (135 ) (95 ) Effect of U.S. tax law change 43 126 0 Change in valuation allowance (612 ) 42 (179 ) Other, net (16 ) (5 ) 0 Provision for (benefit from) income taxes $ (127 ) $ 60 $ (144 ) (1) The Company's statutory rates were 21.0 percent and 33.8 percent for fiscal 2019 and fiscal 2018, respectively, which reflected the corporate tax rate reduction effective January 1, 2018 due to the Tax Act. |
Significant Components of Deferred Tax Assets And Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions): As of January 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 173 $ 617 Deferred stock-based expense 145 79 Tax credits 605 497 Deferred rent expense 71 59 Accrued liabilities 138 113 Basis difference on strategic and other investments 0 41 Financing obligation 102 97 Deferred intercompany transactions 0 90 Other 22 15 Total deferred tax assets 1,256 1,608 Less valuation allowance (205 ) (810 ) Deferred tax assets, net of valuation allowance 1,051 798 Deferred tax liabilities: Deferred commissions (347 ) (334 ) Purchased intangibles (382 ) (205 ) Depreciation and amortization (145 ) (166 ) Basis difference on strategic and other investments (56 ) 0 Deferred revenue (17 ) (82 ) Other 0 (5 ) Total deferred tax liabilities (947 ) (792 ) Net deferred tax assets $ 104 $ 6 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2019 , 2018 and 2017 is as follows (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Beginning of period $ 304 $ 231 $ 173 Tax positions taken in prior period: Gross increases 474 31 18 Gross decreases (2 ) (6 ) (1 ) Tax positions taken in current period: Gross increases 107 51 58 Settlements (15 ) (1 ) (16 ) Lapse of statute of limitations (10 ) (8 ) (1 ) Currency translation effect (6 ) 6 0 End of period $ 852 $ 304 $ 231 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominator Used In Calculation of Basic And Diluted Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions ): 4 Fiscal Year Ended January 31, 2019 2018 2017 Numerator: Net income $ 1,110 $ 360 $ 323 Denominator: Weighted-average shares outstanding for basic earnings per share 751 715 688 Effect of dilutive securities: Convertible senior notes which matured in April 2018 1 5 2 Employee stock awards 21 14 10 Warrants 2 1 0 Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share 775 735 700 |
Shares Excluded From Diluted Earnings Or Loss Per Share | The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions): Fiscal Year Ended January 31, 2019 2018 2017 Employee stock awards 4 7 11 Warrants 0 0 17 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Schedule Of Assumptions Used To Calculate Fair Value Of Options Granted | The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share: Fiscal Year Ended January 31, Stock Options 2019 2018 2017 Volatility 27.0 - 28.0 % 28.0 - 31.4 % 31.4 - 32.3 % Estimated life 3.5 years 3.5 years 3.5 years Risk-free interest rate 2.5 - 3.0 % 1.4 - 2.3 % 0.9 - 1.6 % Weighted-average fair value per share of grants $ 28.89 $ 22.71 $ 19.13 Fiscal Year Ended January 31, ESPP 2019 2018 2017 Volatility 22.5 - 25.5 % 21.3 - 27.6 % 28.2 - 35.2 % Estimated life 0.75 years 0.75 years 0.75 years Risk-free interest rate 2.0 - 2.6 % 1.1 - 1.7 % 0.5 - 1.0 % Weighted-average fair value per share of grants $ 32.90 $ 23.64 $ 20.18 |
Schedule Of Stock Activity | Stock option activity, excluding the ESPP is as follows: Options Outstanding Shares Available for Grant (in thousands) Outstanding Stock Options (in thousands) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Balance as of January 31, 2018 50,313 21,735 $ 65.96 Increase in shares authorized: 2013 Equity Incentive Plan 40,000 0 0.00 Assumed equity plans 8,357 0 0.00 Options granted under all plans (13,846 ) 13,846 69.04 Restricted stock activity (19,937 ) 0 0.00 Performance-based restricted stock units (1,911 ) 0 0.00 Stock grants to board and advisory board members (146 ) 0 0.00 Exercised 0 (8,495 ) 44.40 Plan shares expired (163 ) 0 0.00 Canceled 1,140 (1,140 ) 77.59 Balance as of January 31, 2019 63,807 25,946 $ 74.15 $ 2,019 Vested or expected to vest 24,463 $ 72.65 $ 1,941 Exercisable as of January 31, 2019 12,770 $ 55.58 $ 1,231 |
Schedule Of Stock Options Outstanding | The following table summarizes information about stock options outstanding as of January 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in thousands) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Shares (in thousands) Weighted- Average Exercise Price $0.03 to $21.54 3,664 6.3 $ 11.91 2,273 $ 9.77 $22.12 to $59.34 6,119 2.9 53.60 5,805 54.77 $59.37 to $75.01 995 5.2 68.37 442 70.65 $75.57 3,920 4.8 75.57 1,627 75.57 $76.48 to $82.08 3,634 3.9 80.85 2,391 80.86 $82.55 to $113.00 954 5.6 98.03 232 95.36 $118.04 to $155.52 6,660 6.2 120.23 0 0.00 25,946 4.9 $ 74.15 12,770 $ 55.58 |
Schedule Of Restricted Stock Activity | Restricted stock activity is as follows: Restricted Stock Outstanding Outstanding (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in millions) Balance as of January 31, 2018 19,018 $ 77.85 Granted - restricted stock units and awards 12,221 122.47 Granted - performance-based stock units 541 112.48 Canceled (1,990 ) 91.35 Vested and converted to shares (8,631 ) 77.63 Balance as of January 31, 2019 21,159 $ 103.33 $ 3,215 Expected to vest 18,491 $ 2,810 |
Schedule Of Shares Of Common Stock Available For Future Issuance Under Stock Option Plans | The following number of shares of common stock were reserved and available for future issuance at January 31, 2019 (in thousands): Options outstanding 25,946 Restricted stock awards and units and performance-based stock units outstanding 21,159 Stock available for future grant or issuance: 2013 Equity Incentive Plan 63,342 2014 Inducement Plan 352 Acquired equity plans 113 Amended and Restated 2004 Employee Stock Purchase Plan 4,067 114,979 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating and capital leases | As of January 31, 2019 , the future minimum lease payments under non-cancelable operating and capital leases are as follows (in millions ): Capital Leases (1) Operating Leases (2) Financing Obligation -Leased Facility (3) Fiscal Period: Fiscal 2020 $ 200 $ 778 $ 22 Fiscal 2021 0 658 23 Fiscal 2022 0 466 23 Fiscal 2023 0 369 24 Fiscal 2024 0 314 24 Thereafter 0 1,610 163 Total minimum lease payments 200 $ 4,195 $ 279 Less: amount representing interest (9 ) Present value of capital lease obligations $ 191 (1) As of January 31, 2019 , the capital lease obligation is included in accrued expenses and other liabilities on the consolidated balance sheet. (2) Operating leases do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $146 million in the next five years and $79 million thereafter. (3) Total Financing Obligation - Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest and the implied lease for the land. As of January 31, 2019 , $215 million of the total $279 million above was recorded to Financing obligation leased facility, of which the current portion is included in accrued expenses and other liabilities and the noncurrent portion is included in other noncurrent liabilities on the consolidated balance sheet. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected summarized quarterly financial information for fiscal 2019 and 2018 is as follows: 1st 2nd 3rd 4th Fiscal Year (in millions, except per share data) Fiscal 2019 Revenues $ 3,006 $ 3,281 $ 3,392 $ 3,603 $ 13,282 Gross profit 2,239 2,432 2,503 2,657 9,831 Income from operations 191 115 92 137 535 Net income $ 344 $ 299 $ 105 $ 362 $ 1,110 Basic net income per share $ 0.47 $ 0.40 $ 0.14 $ 0.47 $ 1.48 Diluted net income per share $ 0.46 $ 0.39 $ 0.13 $ 0.46 $ 1.43 Fiscal 2018 Revenues $ 2,397 $ 2,577 $ 2,701 $ 2,865 $ 10,540 Gross profit 1,746 1,907 1,987 2,127 7,767 Income from operations 4 84 155 211 454 Net income $ 1 $ 46 $ 107 $ 206 $ 360 Basic net income per share $ 0.00 $ 0.06 $ 0.15 $ 0.28 $ 0.50 Diluted net income per share $ 0.00 $ 0.06 $ 0.14 $ 0.28 $ 0.49 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Jan. 31, 2019USD ($)segment | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | |
Summary of Business and Significant Accounting Policies [Line Items] | |||
Number of operating segments | segment | 1 | ||
Capitalized contract cost, amortization term | 4 years | ||
Capitalized contract cost, renewals and success fees, amortization term | 2 years | ||
Costs capitalized to obtain revenue contracts, net | $ (981,000,000) | $ (1,156,000,000) | $ (693,000,000) |
Amortization of costs capitalized to obtain revenue contracts, net | 737,000,000 | 592,000,000 | 470,000,000 |
Costs capitalized to obtain revenue contracts, net | 2,000,000,000 | 1,800,000,000 | |
Impairments of capitalized software, intangible assets, long-lived assets or goodwill | $ 0 | 0 | |
Offering period | 12 months | ||
Discount for ESPP | 15.00% | ||
Purchase period | 6 months | ||
Advertising expense | $ 482,000,000 | $ 373,000,000 | $ 350,000,000 |
Percentage of tax benefit likely to be realized upon settlement (greater than 50%) | 50.00% | ||
Net realized gains (losses) recognized | $ 464,000,000 | ||
Gains on sale of investments | 78,000,000 | ||
Accounting Standards Update 2016-01 | Retained Earnings | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Cumulative-effect adjustment | 13,000,000 | ||
Cumulative-effect adjustment, tax impact | 6,000,000 | ||
Accounting Standards Update 2016-16 | Retained Earnings | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Cumulative-effect adjustment | $ 17,000,000 | ||
Stock options and restricted stock | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Vesting period | 4 years | ||
Performance-based restricted stock units | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Vesting period | 3 years | ||
Restricted stock activity | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Vesting period | 4 years | ||
Award requisite service period | 4 years | ||
Outside Americas | Assets | Geographic Concentration Risk | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 84.00% | 81.00% | |
Untied States | Assets | Geographic Concentration Risk | |||
Summary of Business and Significant Accounting Policies [Line Items] | |||
Concentration risk percentage | 14.00% | 17.00% |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Jan. 31, 2019 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Building and structural components | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 32 years |
Building - leased facility | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 27 years |
Building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Minimum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Minimum | Internal-use software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Maximum | Computers, equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 9 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Maximum | Internal-use software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Adoption of ASU 2014-09 (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Total revenues | $ 10,540 | $ 8,437 | |||||||||||||
Marketing and sales | $ 6,064 | 4,671 | 3,811 | ||||||||||||
Benefit from (provision for) income taxes | [1] | 127 | (60) | 144 | |||||||||||
Net income | $ 362 | $ 105 | $ 299 | $ 344 | $ 206 | $ 107 | $ 46 | $ 1 | $ 1,110 | $ 360 | [2] | $ 323 | [2] | ||
Diluted net income per share (in dollars per share) | $ 0.46 | $ 0.13 | $ 0.39 | $ 0.46 | $ 0.28 | $ 0.14 | $ 0.06 | $ 0 | $ 1.43 | $ 0.49 | $ 0.46 | ||||
Number of shares utilized to calculate diluted net income per share (in shares) | 735 | 700 | |||||||||||||
Accounts receivable, net | $ 4,924 | $ 3,921 | $ 4,924 | $ 3,921 | |||||||||||
Costs capitalized to obtain revenue contracts, net | 788 | 671 | 788 | 671 | |||||||||||
Prepaid expenses and other current assets | 629 | 471 | 629 | 471 | |||||||||||
Costs capitalized to obtain revenue contracts, noncurrent, net | 1,232 | 1,105 | 1,232 | 1,105 | |||||||||||
Other assets, net | 543 | 384 | 543 | 384 | |||||||||||
Accrued compensation | 1,167 | 1,001 | 1,167 | 1,001 | |||||||||||
Accounts payable | 1,356 | 970 | 1,356 | 970 | |||||||||||
Unearned revenue | 8,564 | $ 8,564 | $ 6,995 | 6,995 | 8,564 | 6,995 | |||||||||
Other noncurrent liabilities | 704 | 846 | 704 | 846 | |||||||||||
Stockholders’ equity | $ 15,605 | 10,376 | $ 15,605 | 10,376 | $ 8,230 | $ 5,003 | |||||||||
As reported | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Total revenues | 10,480 | 8,392 | |||||||||||||
Marketing and sales | 4,829 | 3,918 | |||||||||||||
Benefit from (provision for) income taxes | (75) | 155 | |||||||||||||
Net income | $ 127 | $ 180 | |||||||||||||
Diluted net income per share (in dollars per share) | $ 0.17 | $ 0.26 | |||||||||||||
Accounts receivable, net | 3,918 | $ 3,918 | |||||||||||||
Costs capitalized to obtain revenue contracts, net | 461 | 461 | |||||||||||||
Prepaid expenses and other current assets | 390 | 390 | |||||||||||||
Costs capitalized to obtain revenue contracts, noncurrent, net | 413 | 413 | |||||||||||||
Other assets, net | 396 | 396 | |||||||||||||
Accrued compensation | 961 | 961 | |||||||||||||
Accounts payable | 973 | 973 | |||||||||||||
Unearned revenue | 7,095 | 7,095 | |||||||||||||
Other noncurrent liabilities | 796 | 796 | |||||||||||||
Stockholders’ equity | 9,389 | 9,389 | |||||||||||||
Change | ASU 2014-09 | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Total revenues | 60 | $ 45 | |||||||||||||
Marketing and sales | [3],[4] | (158) | (107) | ||||||||||||
Benefit from (provision for) income taxes | 15 | (11) | |||||||||||||
Net income | $ 233 | $ 143 | |||||||||||||
Diluted net income per share (in dollars per share) | $ 0.32 | $ 0.20 | |||||||||||||
Accounts receivable, net | 3 | $ 3 | |||||||||||||
Costs capitalized to obtain revenue contracts, net | 210 | 210 | |||||||||||||
Prepaid expenses and other current assets | 81 | 81 | |||||||||||||
Costs capitalized to obtain revenue contracts, noncurrent, net | 692 | 692 | |||||||||||||
Other assets, net | (12) | (12) | |||||||||||||
Accrued compensation | 40 | 40 | |||||||||||||
Accounts payable | (3) | (3) | |||||||||||||
Unearned revenue | (100) | (100) | |||||||||||||
Other noncurrent liabilities | 50 | 50 | |||||||||||||
Stockholders’ equity | $ 987 | $ 987 | |||||||||||||
[1] | Amounts include a benefit related to the partial release of the valuation allowance of $612 million, $2 million and $226 million for fiscal 2019, 2018 and 2017, respectively | ||||||||||||||
[2] | Prior period information has been adjusted for Topic 606. | ||||||||||||||
[3] | Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$215 $166 $128Marketing and sales232 121 98 | ||||||||||||||
[4] | Amounts include stock-based expense, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$161 $130 $107Research and development307 260 188Marketing and sales643 469 389General and administrative172 138 136 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2019 | [1],[2] | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | $ 3,603 | $ 3,392 | $ 3,281 | $ 3,006 | $ 2,865 | $ 2,701 | $ 2,577 | $ 2,397 | $ 13,282 | $ 10,540 | $ 8,437 | |
Americas | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 9,445 | 7,621 | 6,259 | |||||||||
Europe | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 2,553 | 1,916 | 1,383 | |||||||||
Asia Pacific | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 1,284 | 1,003 | 795 | |||||||||
Untied States | Geographic Concentration Risk | Revenue | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Concentration risk percentage | 96.00% | |||||||||||
Subscription and support | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 12,413 | 9,766 | 7,799 | |||||||||
Sales Cloud | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 4,040 | 3,588 | 3,076 | |||||||||
Service Cloud | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 3,621 | 2,883 | 2,343 | |||||||||
Salesforce Platform and Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | 2,854 | 1,913 | 1,433 | |||||||||
Marketing and Commerce Cloud | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Total revenues | $ 1,898 | $ 1,382 | $ 947 | |||||||||
[1] | Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$215 $166 $128Marketing and sales232 121 98 | |||||||||||
[2] | Amounts include stock-based expense, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$161 $130 $107Research and development307 260 188Marketing and sales643 469 389General and administrative172 138 136 |
Revenues - Contract Balances, U
Revenues - Contract Balances, Unearned Revenue and Remaining Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Jan. 31, 2019 | May 31, 2018 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Contract asset | $ 215 | $ 81 | ||
Unearned Revenue [Roll Forward] | ||||
Unearned revenue, beginning of period | $ 6,995 | 6,995 | ||
Billings and other | 14,770 | |||
Contribution from contract asset | 13 | |||
Unearned revenue from business combinations | 68 | |||
Unearned revenue, end of period | 8,564 | $ 8,564 | ||
Percent of revenue recognized from unearned revenue balance in period | 52.00% | |||
Current | $ 11,900 | |||
Noncurrent | 13,800 | |||
Total | $ 25,700 | |||
Minimum | ||||
Unearned Revenue [Roll Forward] | ||||
Noncurrent remaining performance obligation | 13 months | |||
Maximum | ||||
Unearned Revenue [Roll Forward] | ||||
Noncurrent remaining performance obligation | 36 months | |||
MuleSoft | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract asset | $ 122 | |||
Unearned Revenue [Roll Forward] | ||||
Total | $ 450 | |||
Revenue recognized over time | ||||
Unearned Revenue [Roll Forward] | ||||
Revenue recognized | (12,426) | |||
Revenue recognized over time as delivered | ||||
Unearned Revenue [Roll Forward] | ||||
Revenue recognized | (629) | |||
Revenue recognized at a point in time | ||||
Unearned Revenue [Roll Forward] | ||||
Revenue recognized | $ (227) |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Detail) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,685 | $ 1,991 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (12) | (14) |
Fair Value | 1,673 | 1,978 |
Corporate notes and obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,027 | 1,223 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (8) | (7) |
Fair Value | 1,019 | 1,217 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 89 | 196 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (2) |
Fair Value | 88 | 194 |
Mortgage backed obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 79 | 100 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 78 | 99 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 245 | 251 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 244 | 250 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104 | 53 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 104 | 52 |
Foreign government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58 | 87 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 57 | 86 |
U.S. agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4 | 19 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 4 | 19 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 11 | |
Time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 4 | |
Covered bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 75 | 51 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | $ 75 | $ 50 |
Investments - Schedule of Short
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Detail) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within 1 year | $ 482 | $ 395 |
Due in 1 year through 5 years | 1,189 | 1,579 |
Due in 5 years through 10 years | 2 | 4 |
Fair Value of Marketable Securities | $ 1,673 | $ 1,978 |
Investments - Schedule of Mar_2
Investments - Schedule of Marketable Securities in Unrealized Loss Position (Detail) $ in Millions | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | $ 392 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | (2) |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 747 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (10) |
Marketable securities in an unrealized loss position, Fair Value | 1,139 |
Marketable securities in an unrealized loss position, Unrealized Losses | (12) |
Unrealized losses on fixed rate investments, upper range value | 1 |
Corporate notes and obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 392 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | (2) |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 457 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (6) |
Marketable securities in an unrealized loss position, Fair Value | 849 |
Marketable securities in an unrealized loss position, Unrealized Losses | (8) |
U.S. treasury securities | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 71 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (1) |
Marketable securities in an unrealized loss position, Fair Value | 71 |
Marketable securities in an unrealized loss position, Unrealized Losses | (1) |
Mortgage backed obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 58 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (1) |
Marketable securities in an unrealized loss position, Fair Value | 58 |
Marketable securities in an unrealized loss position, Unrealized Losses | (1) |
Asset backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 112 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (1) |
Marketable securities in an unrealized loss position, Fair Value | 112 |
Marketable securities in an unrealized loss position, Unrealized Losses | (1) |
Foreign government obligations | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities in an unrealized loss position for less than 12 months, Fair Value | 0 |
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses | 0 |
Marketable securities in an unrealized loss position for more than 12 months, Fair Value | 49 |
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses | (1) |
Marketable securities in an unrealized loss position, Fair Value | 49 |
Marketable securities in an unrealized loss position, Unrealized Losses | $ (1) |
Investments - Schedule of Compo
Investments - Schedule of Components of Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Interest income | $ 61 | $ 37 | $ 22 |
Realized gains | 1 | 1 | 8 |
Realized losses | (5) | (2) | (3) |
Total investment income | $ 57 | $ 36 | $ 27 |
Investments - Schedule of Strat
Investments - Schedule of Strategic Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Investment Holdings [Line Items] | |||
Strategic investments | $ 677 | $ 677 | |
Strategic Investments [Roll Forward] | |||
Carrying amount, beginning of period | 677 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 1,302 | 677 | |
Net realized gains (losses) recognized | 464 | ||
Gains on strategic investments, net | 542 | 19 | $ 31 |
Gains on sale of investments | 78 | ||
Equity securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 1,271 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 1,271 | ||
Net realized gains (losses) recognized | 74 | 0 | 0 |
Debt securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 31 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 31 | ||
Net realized gains (losses) recognized | (10) | 0 | 0 |
Publicly traded securities | |||
Adjustments related to privately held equity securities: | |||
Net realized gains (losses) recognized | 345 | 0 | 0 |
Privately held securities | |||
Adjustments related to privately held equity securities: | |||
Net realized gains (losses) recognized | 133 | 19 | $ 31 |
Fair Value (1) | |||
Investment Holdings [Line Items] | |||
Strategic investments | 24 | 24 | |
Strategic Investments [Roll Forward] | |||
Carrying amount, beginning of period | 24 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 436 | 24 | |
Fair Value (1) | Equity securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 436 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 436 | ||
Fair Value (1) | Debt securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 0 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 0 | ||
Measurement Alternative | |||
Investment Holdings [Line Items] | |||
Strategic investments | 548 | 548 | |
Strategic Investments [Roll Forward] | |||
Carrying amount, beginning of period | 548 | ||
Adjustments related to privately held equity securities: | |||
Net additions | 95 | ||
Impairments and downward adjustments | (32) | ||
Upward adjustments | 174 | ||
Carrying amount, end of period | 785 | $ 548 | |
Measurement Alternative | Equity securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 785 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 785 | ||
Measurement Alternative | Debt securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 0 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 0 | ||
Other | |||
Investment Holdings [Line Items] | |||
Strategic investments | 81 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 81 | ||
Other | Equity securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 50 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | 50 | ||
Other | Debt securities | |||
Investment Holdings [Line Items] | |||
Strategic investments | 31 | ||
Adjustments related to privately held equity securities: | |||
Carrying amount, end of period | $ 31 |
Derivatives - Schedule of Outst
Derivatives - Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables (Detail) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Derivative [Line Items] | ||
Fair value of foreign currency derivative contracts | $ 25 | $ 12 |
Foreign currency derivative contracts | ||
Derivative [Line Items] | ||
Notional amount of foreign currency derivative contracts | $ 4,496 | $ 1,871 |
Derivatives - Fair Value of Out
Derivatives - Fair Value of Outstanding Derivative Instruments (Detail) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Derivatives not designated as hedging instruments | Prepaid expenses and other current assets | Foreign currency derivative contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 42 | $ 18 |
Derivatives - Effect of Derivat
Derivatives - Effect of Derivative Instruments Not Designated as Hedging Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Derivatives not designated as hedging instruments | Foreign currency derivative contracts | Other income (expense) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) on Derivative Instruments Recognized in Income | $ 34 | $ 15 | $ (86) |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | $ 1,302 | $ 677 |
Total assets | 3,699 | 3,952 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 436 | 24 |
Total assets | 1,670 | 1,413 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 0 | 0 |
Total assets | 2,029 | 2,539 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 0 | 0 |
Total assets | 0 | 0 |
Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 42 | 18 |
Prepaid expenses and other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Prepaid expenses and other current assets | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 42 | 18 |
Prepaid expenses and other current assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 0 | 0 |
Fair Value (1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Publicly held equity securities | 436 | 24 |
Time deposits | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 314 | 543 |
Time deposits | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Time deposits | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 314 | 543 |
Time deposits | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market mutual funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,234 | 1,389 |
Money market mutual funds | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,234 | 1,389 |
Money market mutual funds | Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market mutual funds | Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate notes and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,019 | 1,217 |
Corporate notes and obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate notes and obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,019 | 1,217 |
Corporate notes and obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 88 | 194 |
U.S. treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 88 | 194 |
U.S. treasury securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mortgage backed obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 78 | 99 |
Mortgage backed obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mortgage backed obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 78 | 99 |
Mortgage backed obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 244 | 250 |
Asset backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 244 | 250 |
Asset backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 104 | 52 |
Municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 104 | 52 |
Municipal securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Foreign government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 57 | 86 |
Foreign government obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Foreign government obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 57 | 86 |
Foreign government obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4 | 19 |
U.S. agency obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4 | 19 |
U.S. agency obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4 | |
Time deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4 | |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11 | |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11 | |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Covered bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 75 | 50 |
Covered bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Covered bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 75 | 50 |
Covered bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,100 | 611 |
Privately held debt and equity securities and equity method investments | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 866 | $ 653 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,834 | $ 3,403 | |
Less accumulated depreciation and amortization | (1,783) | (1,456) | |
Property and equipment, net | 2,051 | 1,947 | |
Depreciation and amortization expense | 411 | 373 | $ 323 |
Fixed assets acquired under capital lease agreements | 671 | 709 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 184 | 184 | |
Buildings and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 629 | 626 | |
Computers, equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,735 | 1,629 | |
Accumulated depreciation and amortization | 480 | 450 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 188 | 139 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,098 | $ 825 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($)company | Jan. 31, 2017USD ($)company | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 12,851 | $ 7,314 | $ 7,264 | ||
Datorama | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | 3 | ||||
Consideration transferred | $ 766 | ||||
Cash | 136 | ||||
Common stock issued | $ 537 | ||||
Fair value of stock options and restricted stock awards assumed | $ 170 | ||||
Share conversion ratio | 0.4133 | ||||
Fair value of stock options and restricted stock awards assumed | $ 93 | 93 | |||
Assumed unvested options and restricted stock, allocated to future services | 77 | ||||
Intangible assets | 202 | ||||
Goodwill | $ 586 | ||||
MuleSoft | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | 24 | ||||
Consideration transferred | 6,425 | ||||
Cash | 4,860 | ||||
Common stock issued | 1,178 | ||||
Fair value of stock options and restricted stock awards assumed | $ 824 | ||||
Share conversion ratio | 0.3680 | ||||
Fair value of stock options and restricted stock awards assumed | $ 387 | ||||
Assumed unvested options and restricted stock, allocated to future services | 437 | ||||
Discrete tax benefit | $ 136 | ||||
Intangible assets | 1,279 | ||||
Goodwill | $ 4,816 | ||||
2 companies | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | 38 | ||||
Intangible assets | 3 | ||||
Goodwill | $ 35 | ||||
Number of companies acquired | company | 2 | ||||
13 companies | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | 4,400 | ||||
Intangible assets | 851 | ||||
Goodwill | $ 3,400 | ||||
Number of companies acquired | company | 13 |
Business Combinations (Consider
Business Combinations (Consideration Transferred) (Details) - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2018 | May 31, 2018 | |
Datorama | ||
Business Acquisition [Line Items] | ||
Cash | $ 136 | |
Common stock issued | 537 | |
Fair value of stock options and restricted stock awards assumed | 93 | $ 93 |
Total | $ 766 | |
MuleSoft | ||
Business Acquisition [Line Items] | ||
Cash | 4,860 | |
Common stock issued | 1,178 | |
Fair value of stock options and restricted stock awards assumed | 387 | |
Total | $ 6,425 |
Business Combinations (Estimate
Business Combinations (Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Jan. 31, 2018 | Jan. 31, 2017 |
Business Acquisition [Line Items] | |||||
Contract asset | $ 215 | $ 81 | |||
Goodwill | $ 12,851 | $ 7,314 | $ 7,264 | ||
Datorama | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 21 | ||||
Accounts receivable | 9 | ||||
Other current and noncurrent assets | 3 | ||||
Intangible assets | 202 | ||||
Goodwill | 586 | ||||
Accounts payable, accrued expenses and other liabilities, current and noncurrent | (10) | ||||
Unearned revenue | (4) | ||||
Deferred tax liability | (41) | ||||
Net assets acquired | $ 766 | ||||
MuleSoft | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 57 | ||||
Marketable securities | 233 | ||||
Accounts receivable | 69 | ||||
Contract asset | 122 | ||||
Other current and noncurrent assets | 29 | ||||
Acquired customer contract asset, current and noncurrent - intangible asset | 61 | ||||
Intangible assets | 1,279 | ||||
Goodwill | 4,816 | ||||
Accounts payable, accrued expenses and other liabilities, current and noncurrent | (40) | ||||
Unearned revenue | (57) | ||||
Deferred tax liability | (144) | ||||
Net assets acquired | $ 6,425 |
Business Combinations (Intangib
Business Combinations (Intangible Assets Acquired) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | May 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Fair Value | $ 3,419 | $ 1,911 | ||
Useful Life | 5 years 3 months 18 days | |||
Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1,429 | 1,027 | ||
Useful Life | 2 years 10 months 24 days | |||
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1,938 | 831 | ||
Useful Life | 6 years 3 months 18 days | |||
Other purchased intangible assets | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 52 | $ 53 | ||
Useful Life | 2 years 6 months | |||
Datorama | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 202 | |||
Datorama | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 159 | |||
Useful Life | 4 years | |||
Datorama | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 42 | |||
Useful Life | 8 years | |||
Datorama | Other purchased intangible assets | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1 | |||
Useful Life | 1 year | |||
MuleSoft | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1,279 | |||
MuleSoft | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 224 | |||
Useful Life | 4 years | |||
MuleSoft | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1,046 | |||
Useful Life | 8 years | |||
MuleSoft | Other purchased intangible assets | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 9 | |||
Useful Life | 1 year |
Business Combinations (Pro Form
Business Combinations (Pro Forma Information) (Details) - MuleSoft - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | |
Business Acquisition [Line Items] | |||
Total revenues | $ 431 | ||
Pretax loss | $ (286) | ||
Total revenues | $ 13,366 | $ 10,875 | |
Pretax income (loss) | 1,012 | (85) | |
Net income (loss) | $ 987 | $ (45) |
Business Combinations (CloudCra
Business Combinations (CloudCraze Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | ||
Useful Life | 5 years 3 months 18 days | |
CloudCraze | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ 190 | |
Goodwill deductible for tax purposes | 134 | |
CloudCraze | Developed technology and customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets acquired | $ 58 | |
CloudCraze | Developed technology and customer relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life | 1 year | |
CloudCraze | Developed technology and customer relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life | 7 years |
Assets Acquired Through Busines
Assets Acquired Through Business Combinations and Goodwill (Intangible Assets Acquired From Business Combinations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross | $ 3,419 | $ 1,911 | |
Additions and retirements, net | 1,508 | ||
Accumulated Amortization | (1,496) | (1,084) | |
Expense and retirements, net | (412) | ||
Intangible Assets, Net | $ 1,923 | 827 | |
Useful Life | 5 years 3 months 18 days | ||
Amortization of intangible assets | $ 447 | 287 | $ 226 |
Contract asset | 215 | 81 | |
Other assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Contract asset | 121 | 159 | |
Acquired developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross | 1,429 | 1,027 | |
Additions and retirements, net | 402 | ||
Accumulated Amortization | (889) | (677) | |
Expense and retirements, net | (212) | ||
Intangible Assets, Net | $ 540 | 350 | |
Useful Life | 2 years 10 months 24 days | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross | $ 1,938 | 831 | |
Additions and retirements, net | 1,107 | ||
Accumulated Amortization | (560) | (359) | |
Expense and retirements, net | (201) | ||
Intangible Assets, Net | $ 1,378 | 472 | |
Useful Life | 6 years 3 months 18 days | ||
Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross | $ 52 | 53 | |
Additions and retirements, net | (1) | ||
Accumulated Amortization | (47) | (48) | |
Expense and retirements, net | 1 | ||
Intangible Assets, Net | $ 5 | $ 5 | |
Useful Life | 2 years 6 months |
Intangible Assets Acquired Th_3
Intangible Assets Acquired Through Business Combinations and Goodwill (Expected Future Amortization Expense for Purchased Intangible Assets) (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2,020 | $ 472 | |
Fiscal 2,021 | 414 | |
Fiscal 2,022 | 351 | |
Fiscal 2,023 | 211 | |
Fiscal 2,024 | 148 | |
Thereafter | 327 | |
Intangible Assets, Net | $ 1,923 | $ 827 |
Intangible Assets Acquired Th_4
Intangible Assets Acquired Through Business Combinations and Goodwill (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance as of January 31, 2018 | $ 7,314 | $ 7,264 |
MuleSoft acquisition | 35 | |
Adjustments of acquisition date fair values, including the effect of foreign currency translation | 1 | 15 |
Balance as of January 31, 2019 | 12,851 | $ 7,314 |
CloudCraze | ||
Goodwill [Roll Forward] | ||
MuleSoft acquisition | 134 | |
MuleSoft | ||
Goodwill [Roll Forward] | ||
MuleSoft acquisition | 4,816 | |
Datorama | ||
Goodwill [Roll Forward] | ||
MuleSoft acquisition | $ 586 |
Debt - Carrying Value of Borrow
Debt - Carrying Value of Borrowings (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Debt Instrument [Line Items] | ||
Total carrying value of debt | $ 3,176 | $ 1,720 |
Less current portion of debt | (3) | (1,025) |
Total noncurrent debt | $ 3,173 | 695 |
Senior Notes | 2023 Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 3.26% | |
Total carrying value of debt | $ 993 | 0 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 3.70% | |
Total carrying value of debt | $ 1,488 | 0 |
Term Loans | 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 3.05% | |
Total carrying value of debt | $ 499 | 0 |
Term Loans | 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 2.96% | |
Total carrying value of debt | $ 0 | 498 |
Secured Debt | Loan assumed on 50 Fremont | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 3.75% | |
Total carrying value of debt | $ 196 | 199 |
Convertible Debt | 0.25% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective interest rate for fiscal 2019 | 2.53% | |
Total carrying value of debt | $ 0 | $ 1,023 |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) $ in Millions | Jan. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2,020 | $ 3 |
Fiscal 2,021 | 4 |
Fiscal 2,022 | 504 |
Fiscal 2,023 | 4 |
Fiscal 2,024 | 1,183 |
Thereafter | 1,500 |
Total principal outstanding | $ 3,198 |
Debt - Term Loans (Detail)
Debt - Term Loans (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jul. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Debt interest expense | $ 126,000,000 | $ 54,000,000 | $ 50,000,000 | ||
Term Loans | 2019 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 500,000,000 | ||||
Term Loans | 2021 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt term | 3 years | ||||
Face amount of debt | $ 500,000,000 | $ 500,000,000 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Debt interest expense | $ 126,000,000 | $ 54,000,000 | $ 50,000,000 | |
Senior Notes | 2023 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | 1,000,000,000 | $ 1,000,000,000 | ||
Contractual interest rate | 3.25% | |||
Debt issuance costs | $ 8,000,000 | |||
Senior Notes | 2028 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 1,500,000,000 | $ 1,500,000,000 | ||
Contractual interest rate | 3.70% | |||
Debt issuance costs | $ 13,000,000 |
Debt - Loan Assumed on 50 Fremo
Debt - Loan Assumed on 50 Fremont (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt interest expense | $ 126 | $ 54 | $ 50 |
Current portion of debt | 3 | 1,025 | |
Noncurrent debt | 3,173 | $ 695 | |
Loan assumed on 50 Fremont | Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Liabilities assumed | $ 200 | ||
Contractual interest rate | 3.75% | ||
Current portion of debt | $ 3 | ||
Noncurrent debt | $ 195 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes (Detail) - Convertible Debt - 0.25% Convertible Senior Notes - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Jan. 31, 2019 | Mar. 31, 2013 | |
Debt Conversion [Line Items] | |||
Face amount of debt | $ 1,150,000,000 | ||
Contractual interest rate | 0.25% | 0.25% | |
Pay down of debt | $ 1,000,000,000 | ||
Shares issued with debt conversion (in shares) | 7 |
Debt - Warrants (Detail)
Debt - Warrants (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2018 | Jan. 31, 2019 | Mar. 31, 2013 | |
Class of Warrant or Right [Line Items] | |||
Number of warrants that increased computation of net income per share (in shares) | 4 | ||
Convertible Debt | 0.25% Convertible Senior Notes | |||
Class of Warrant or Right [Line Items] | |||
Contractual interest rate | 0.25% | 0.25% | |
Shares issues to settle (in shares) | 6 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) | Jan. 31, 2019 | Apr. 30, 2018 | Jan. 31, 2018 |
Line of Credit Facility [Line Items] | |||
Total carrying value of debt | $ 3,176,000,000 | $ 1,720,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Total carrying value of debt | $ 0 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 106 | $ 23 | $ 19 |
Amortization of debt issuance costs | 16 | 5 | 6 |
Amortization of debt discount | 4 | 26 | 25 |
Debt interest expense | $ 126 | $ 54 | $ 50 |
Income Taxes - Domestic And For
Income Taxes - Domestic And Foreign Components of Income (Loss) Before Provision (Benefit) For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 839 | $ 160 | $ 151 |
Foreign | 144 | 260 | 28 |
Income before benefit from (provision for) income taxes | $ 983 | $ 420 | $ 179 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Current: | ||||
Federal | $ 0 | $ (7) | $ 0 | |
State | 39 | 2 | 5 | |
Foreign | 117 | 85 | 72 | |
Total | 156 | 80 | 77 | |
Deferred: | ||||
Federal | (248) | (2) | (183) | |
State | (37) | (14) | (26) | |
Foreign | 2 | (4) | (12) | |
Total | (283) | (20) | (221) | |
Provision for (benefit from) income taxes | [1] | $ (127) | $ 60 | $ (144) |
[1] | Amounts include a benefit related to the partial release of the valuation allowance of $612 million, $2 million and $226 million for fiscal 2019, 2018 and 2017, respectively |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Operating Loss Carryforwards [Line Items] | ||||||
Benefit from (provision for) income taxes | [1] | $ 127 | $ (60) | $ 144 | ||
Decrease in valuation allowance | $ 612 | $ 2 | 226 | |||
Statutory tax rate | 21.00% | 33.80% | ||||
Tax act, provisional expense | $ 126 | |||||
Tax act, reduction in valuation allowance | 136 | |||||
Tax act, adjustment | $ 43 | |||||
Valuation allowance | 205 | 205 | $ 810 | |||
Income tax benefit recognized from stock compensation expense | $ 236 | 265 | 229 | |||
Percentage of tax benefit recognized (greater than 50%) | 50.00% | |||||
Unrecognized tax benefits | 852 | $ 852 | 304 | 231 | $ 173 | |
Increase in unrecognized tax benefits | 548 | |||||
Unrecognized tax benefits which would affect the effective tax rate | 631 | 631 | 77 | 73 | ||
Decrease in unrecognized tax benefits from settlements with taxing authorities | 15 | 1 | 16 | |||
Reasonably possible decrease of unrecognized tax benefits | 3 | 3 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 10 | 10 | $ 6 | 7 | ||
Demandware | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Decrease in valuation allowance | $ (210) | |||||
General Business Tax Credit Carryforward | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 1 | 1 | ||||
Domestic Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 2,100 | 2,100 | ||||
Domestic Tax Authority | Research Tax Credit Carryforward | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 381 | 381 | ||||
Foreign Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 88 | 88 | ||||
State and Local Jurisdiction | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward | 41 | 41 | ||||
Operating loss carryforwards | 1,000 | 1,000 | ||||
California | State and Local Jurisdiction | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | 765 | 765 | ||||
California | State and Local Jurisdiction | Research Tax Credit Carryforward | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | 281 | 281 | ||||
California | State and Local Jurisdiction | Enterprise Zone Tax Credit Carryforward | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | $ 9 | $ 9 | ||||
[1] | Amounts include a benefit related to the partial release of the valuation allowance of $612 million, $2 million and $226 million for fiscal 2019, 2018 and 2017, respectively |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal taxes at statutory rate | $ 206 | $ 142 | $ 63 | |
State, net of the federal benefit | 79 | (21) | 7 | |
Effects of non-U.S. operations | 379 | (35) | 62 | |
Tax credits | (132) | (107) | (50) | |
Non-deductible expenses | 63 | 53 | 48 | |
Excess tax benefits related to shared based compensation | (137) | (135) | (95) | |
Effect of U.S. tax law change | 43 | 126 | 0 | |
Change in valuation allowance | (612) | 42 | (179) | |
Other, net | (16) | (5) | 0 | |
Provision for (benefit from) income taxes | [1] | $ (127) | $ 60 | $ (144) |
[1] | Amounts include a benefit related to the partial release of the valuation allowance of $612 million, $2 million and $226 million for fiscal 2019, 2018 and 2017, respectively |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2019 | Jan. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 173 | $ 617 |
Deferred stock-based expense | 145 | 79 |
Tax credits | 605 | 497 |
Deferred rent expense | 71 | 59 |
Accrued liabilities | 138 | 113 |
Basis difference on strategic and other investments | 0 | 41 |
Financing obligation | 102 | 97 |
Deferred intercompany transactions | 0 | 90 |
Other | 22 | 15 |
Total deferred tax assets | 1,256 | 1,608 |
Less valuation allowance | (205) | (810) |
Deferred tax assets, net of valuation allowance | 1,051 | 798 |
Deferred tax liabilities: | ||
Deferred commissions | (347) | (334) |
Purchased intangibles | (382) | (205) |
Depreciation and amortization | (145) | (166) |
Basis difference on strategic and other investments | (56) | 0 |
Deferred revenue | (17) | (82) |
Other | 0 | (5) |
Total deferred tax liabilities | (947) | (792) |
Net deferred tax assets | $ 104 | $ 6 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of February 1, 2016 | $ 304 | $ 231 | $ 173 |
Tax positions taken in prior period: | |||
Gross increases | 474 | 31 | 18 |
Gross decreases | (2) | (6) | (1) |
Tax positions taken in current period: | |||
Gross increases | 107 | 51 | 58 |
Settlements | (15) | (1) | (16) |
Lapse of statute of limitations | (10) | (8) | (1) |
Currency translation effect | (6) | 6 | 0 |
Balance as of January 31, 2017 | $ 852 | $ 304 | $ 231 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||
Numerator: | ||||||||||||||
Net income | $ 362 | $ 105 | $ 299 | $ 344 | $ 206 | $ 107 | $ 46 | $ 1 | $ 1,110 | $ 360 | [1] | $ 323 | [1] | |
Denominator: | ||||||||||||||
Weighted-average shares outstanding for basic earnings per share (in shares) | 688 | 751 | 715 | 688 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Convertible senior notes which matured in April 2018 (in shares) | 2 | 1 | 5 | |||||||||||
Employee stock awards (in shares) | 10 | 21 | 14 | |||||||||||
Warrants (in shares) | 0 | 2 | 1 | |||||||||||
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares) | 700 | 775 | 735 | 700 | ||||||||||
[1] | Prior period information has been adjusted for Topic 606. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 66 Months Ended | 90 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2019 | Jul. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 0.00% | ||||
Total intrinsic value of the options exercised during the period | $ 784 | $ 373 | $ 224 | ||
Weighted-average remaining contractual life of vested and expected to vest options (in years) | 5 years | ||||
Options vested (in shares) | 12,770,000 | 12,770,000 | |||
Weighted average exercise price vested (in dollars per share) | $ 55.58 | $ 55.58 | |||
Remaining contractual term | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 1,231 | $ 1,231 | |||
Weighted-average exercise price (in dollars per share) | $ 0.001 | $ 0.001 | |||
Fair value of shares vested | $ 1,100 | $ 953 | $ 640 | ||
Preferred stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||
Certain board members | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued to directors (in shares) | 39,350 | 57,832 | 62,632 | ||
Payments of stock issuance costs | $ 5 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual life of stock options (in years) | 7 years | 5 years | |||
Share-based compensation expense | 1,300 | ||||
Compensation not yet recognized, stock options | 2,500 | $ 2,500 | |||
Amortization, remainder of fiscal year | 1,200 | 1,200 | |||
Amortization, year two | 800 | 800 | |||
Amortization, year three | 453 | 453 | |||
Amortization, year four | 108 | 108 | |||
Amortization, year five | $ 8 | $ 8 | |||
Period for recognition | 2 years | ||||
Performance-based restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance-based restricted stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 0.00% | ||||
Performance-based restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 200.00% | ||||
Restricted stock activity | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Weighted-average exercise price (in dollars per share) | $ 103.33 | $ 77.85 | $ 103.33 | ||
Acquired equity plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount withheld on behalf of employees for future purchases | $ 76 | $ 63 | $ 76 |
Earnings Per Share - Shares Exc
Earnings Per Share - Shares Excluded from Diluted Earnings or Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | Jan. 31, 2019 | Jan. 31, 2018 | |
Employee stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded | 11 | 4 | 7 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded | 17 | 0 | 0 |
Stockholders' Equity - Fair Val
Stockholders' Equity - Fair Value Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 27.00% | 28.00% | 31.40% |
Volatility, maximum | 28.00% | 31.40% | 32.30% |
Estimated life | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Risk-free interest rate, minimum | 2.50% | 1.40% | 0.90% |
Risk-free interest rate, maximum | 3.00% | 2.30% | 1.60% |
Weighted-average fair value per share of grants (in dollars per share) | $ 28.89 | $ 22.71 | $ 19.13 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 22.50% | 21.30% | 28.20% |
Volatility, maximum | 25.50% | 27.60% | 35.20% |
Estimated life | 9 months | 9 months | 9 months |
Risk-free interest rate, minimum | 2.00% | 1.10% | 0.50% |
Risk-free interest rate, maximum | 2.60% | 1.70% | 1.00% |
Weighted-average fair value per share of grants (in dollars per share) | $ 32.90 | $ 23.64 | $ 20.18 |
Stockholders' Equity - Stock Ac
Stockholders' Equity - Stock Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jan. 31, 2019USD ($)$ / sharesshares | |
Shares available for grant | |
Shares Available for Grant, Balance (in shares) | 50,313 |
Shares Available for Grant, Options granted under all plans (in shares) | (13,846) |
Shares Available for Grant, Exercised (in shares) | 0 |
Shares Available for Grant, Expired (in shares) | (163) |
Shares Available for Grant, Canceled (in shares) | 1,140 |
Shares Available for Grant, Balance (in shares) | 63,807 |
Outstanding Stock Options | |
Outstanding Stock Options, Balance (in shares) | 21,735 |
Outstanding Stock Options (in shares) | 13,846 |
Outstanding Stock Options, Exercised (in shares) | (8,495) |
Outstanding Stock Options, Plan shares expired (in shares) | 0 |
Outstanding Stock Options, Canceled (in shares) | (1,140) |
Outstanding Stock Options, Balance (in shares) | 25,946 |
Outstanding Stock Options, Vested or expected to vest (in shares) | 24,463 |
Outstanding Stock Options, Exercisable (in shares) | 12,770 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Balance (in dollars per share) | $ / shares | $ 65.96 |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | 69.04 |
Weighted- Average Exercise Price, Exercised (in dollars per share) | $ / shares | 44.40 |
Weighted- Average Exercise Price, Expired (in dollars per share) | $ / shares | 0 |
Weighted- Average Exercise Price, Canceled (in dollars per share) | $ / shares | 77.59 |
Weighted- Average Exercise Price, Balance (in dollars per share) | $ / shares | 74.15 |
Weighted- Average Exercise Price, Vested or expected to vest (in dollars per share) | $ / shares | 72.65 |
Weighted- Average Exercise Price, Exercisable (in dollars per share) | $ / shares | $ 55.58 |
Aggregate Intrinsic Value | |
Weighted- Average Exercise Price, Balance | $ | $ 2,019 |
Weighted- Average Exercise Price, Vested or expected to vest | $ | 1,941 |
Weighted- Average Exercise Price, Exercisable | $ | $ 1,231 |
Restricted stock activity | |
Shares available for grant | |
Shares Available for Grant, Restricted stock activity (in shares) | (19,937) |
Outstanding Stock Options | |
Outstanding Stock Options (in shares) | 0 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | $ 0 |
Performance-based restricted stock units | |
Shares available for grant | |
Shares Available for Grant, Restricted stock activity (in shares) | (1,911) |
Outstanding Stock Options | |
Outstanding Stock Options (in shares) | 0 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | $ 0 |
Stock grants to board and advisory board members | |
Shares available for grant | |
Shares Available for Grant, Stock grants to board and advisory board members (in shares) | (146) |
Outstanding Stock Options | |
Outstanding Stock Options (in shares) | 0 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | $ 0 |
2013 Equity Incentive Plan | |
Shares available for grant | |
Shares Available for Grant, Increase in shares authorized (in shares) | 40,000 |
Shares Available for Grant, Balance (in shares) | 63,342 |
Outstanding Stock Options | |
Outstanding Stock Options, Increase in shares authorized (in shares) | 0 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | $ 0 |
Amended and Restated 2004 Employee Stock Purchase Plan | |
Shares available for grant | |
Shares Available for Grant, Increase in shares authorized (in shares) | 8,357 |
Shares Available for Grant, Balance (in shares) | 4,067 |
Outstanding Stock Options | |
Outstanding Stock Options, Increase in shares authorized (in shares) | 0 |
Options Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Options (in dollars per share) | $ / shares | $ 0 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended |
Jan. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Number Outstanding (in shares) | shares | 25,946 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 4 years 10 months 24 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 74.15 |
Options Exercisable, Number of Shares (in shares) | shares | 12,770 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 55.58 |
$0.03 to $21.54 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 0.03 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 21.54 |
Options, Number Outstanding (in shares) | shares | 3,664 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 6 years 3 months 18 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 11.91 |
Options Exercisable, Number of Shares (in shares) | shares | 2,273 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 9.77 |
$22.12 to $59.34 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 22.12 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 59.34 |
Options, Number Outstanding (in shares) | shares | 6,119 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 2 years 10 months 24 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 53.60 |
Options Exercisable, Number of Shares (in shares) | shares | 5,805 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 54.77 |
$59.37 to $75.01 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 59.37 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 75.01 |
Options, Number Outstanding (in shares) | shares | 995 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 5 years 2 months 12 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 68.37 |
Options Exercisable, Number of Shares (in shares) | shares | 442 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 70.65 |
75.57 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 75.57 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 75.57 |
Options, Number Outstanding (in shares) | shares | 3,920 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 4 years 9 months 18 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 75.57 |
Options Exercisable, Number of Shares (in shares) | shares | 1,627 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 75.57 |
$76.48 to $82.08 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 76.48 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 82.08 |
Options, Number Outstanding (in shares) | shares | 3,634 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 3 years 10 months 24 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 80.85 |
Options Exercisable, Number of Shares (in shares) | shares | 2,391 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 80.86 |
$82.55 to $113.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 82.55 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 113 |
Options, Number Outstanding (in shares) | shares | 954 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 5 years 7 months 6 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 98.03 |
Options Exercisable, Number of Shares (in shares) | shares | 232 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 95.36 |
$118.04 to $155.52 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in dollars per share) | 118.04 |
Range of Exercise Prices, Maximum (in dollars per share) | $ 155.52 |
Options, Number Outstanding (in shares) | shares | 6,660 |
Weighted- Average Remaining Contractual Life (Years), Options Outstanding | 6 years 2 months 12 days |
Weighted- Average Exercise Price, Options Outstanding (in dollars per share) | $ 120.23 |
Options Exercisable, Number of Shares (in shares) | shares | 0 |
Options Exercisable, Weighted- Average Exercise Price (in dollars per share) | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jan. 31, 2019USD ($)$ / sharesshares | |
Restricted Stock Outstanding | |
Ending Balance (in shares) | 21,159 |
Restricted Stock Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share) | $ / shares | $ 0.001 |
Restricted stock activity | |
Restricted Stock Outstanding | |
Beginning Balance (in shares) | 19,018 |
Granted, Outstanding (in shares) | 12,221 |
Canceled, Outstanding (in shares) | (1,990) |
Vested and converted to shares, Outstanding (in shares) | (8,631) |
Ending Balance (in shares) | 21,159 |
Expected to vest, Outstanding (in shares) | 18,491 |
Restricted Stock Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share) | $ / shares | $ 77.85 |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Granted (in dollars per share) | $ / shares | 122.47 |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Canceled (in dollars per share) | $ / shares | 91.35 |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Vested and converted to shares (in dollars per share) | $ / shares | 77.63 |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share) | $ / shares | $ 103.33 |
Restricted Stock Outstanding Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Ending Balance | $ | $ 3,215 |
Aggregate Intrinsic Value, Expected to vest | $ | $ 2,810 |
Performance-based restricted stock units | |
Restricted Stock Outstanding | |
Granted, Outstanding (in shares) | 541 |
Restricted Stock Outstanding Weighted-Average Exercise Price | |
Weighted- Average Exercise Price, Restricted Stock Outstanding, Granted (in dollars per share) | $ / shares | $ 112.48 |
Stockholders' Equity - Shares o
Stockholders' Equity - Shares of Common Stock Available for Future Issuance under Stock Option Plans (Detail) - shares shares in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 25,946 | 21,735 |
Restricted stock awards and units and performance-based stock units outstanding (in shares) | 21,159 | |
Stock available for future grant (in shares) | 63,807 | 50,313 |
Total shares available for future grant (in shares) | 114,979 | |
2013 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant (in shares) | 63,342 | |
2014 Inducement Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant (in shares) | 352 | |
Acquired equity plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant (in shares) | 113 | |
Amended and Restated 2004 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future grant (in shares) | 4,067 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) ft² in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 31, 2019USD ($)ft² | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | |
Other Commitments [Line Items] | |||
Sublease income in next four years | $ 146 | ||
Sublease income thereafter | 79 | ||
Expected financing obligation | 279 | ||
Operating lease commitment | 4,195 | ||
Rent expense | 365 | $ 285 | $ 226 |
Contractual commitments from infrastructure service providers | 2,000 | ||
Payments for contractual commitments | 156 | ||
Remaining commitment | 1,800 | ||
Contractual commitment payable in next fiscal year | $ 264 | ||
Office Space in San Francisco, CA | |||
Other Commitments [Line Items] | |||
Net rentable area (in square feet) | ft² | 324 | ||
Operating lease commitment | $ 480 | ||
Operating lease term | 16 years | ||
Work Location Expected in Fiscal 2022 | |||
Other Commitments [Line Items] | |||
Net rentable area (in square feet) | ft² | 603 | ||
Operating lease commitment | $ 475 | ||
Operating lease term | 17 years | ||
Financing Obligation Leased Facility | |||
Other Commitments [Line Items] | |||
Expected financing obligation | $ 215 | ||
Facilities Space | |||
Other Commitments [Line Items] | |||
Total operating lease commitment balance | 3,500 | ||
Letter of credit | |||
Other Commitments [Line Items] | |||
Value of outstanding letters of credit | $ 92 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating and Capital Leases (Detail) $ in Millions | Jan. 31, 2019USD ($) |
Capital Leases (1) | |
Fiscal 2,020 | $ 200 |
Fiscal 2,021 | 0 |
Fiscal 2,022 | 0 |
Fiscal 2,023 | 0 |
Fiscal 2,024 | 0 |
Thereafter | 0 |
Total minimum lease payments | 200 |
Less: amount representing interest | (9) |
Present value of capital lease obligations | 191 |
Operating Leases (2) | |
Fiscal 2,020 | 778 |
Fiscal 2,021 | 658 |
Fiscal 2,022 | 466 |
Fiscal 2,023 | 369 |
Fiscal 2,024 | 314 |
Thereafter | 1,610 |
Total minimum lease payments | 4,195 |
Financing Obligation - Leased Facility | |
Fiscal 2,020 | 22 |
Fiscal 2,021 | 23 |
Fiscal 2,022 | 23 |
Fiscal 2,023 | 24 |
Fiscal 2,024 | 24 |
Thereafter | 163 |
Total minimum lease payments | $ 279 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Company contributions | $ 106 | $ 93 | $ 56 |
Legal Proceedings and Claims (D
Legal Proceedings and Claims (Details) | 12 Months Ended |
Jan. 31, 2019claim | |
Shareholder Derivative Lawsuits | |
Loss Contingencies [Line Items] | |
Number of claims filed | 3 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Affiliated Entity $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2016USD ($) | Jan. 31, 2019USD ($)board_memberemployeeboard_seat | Jan. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Number of Company's Board Members that Hold Board Seats in Foundation | 1 | ||
Number of Board Seats in Foundation | 3 | ||
Number of Company's Employees that Hold Board Seats in Non-Profit | employee | 1 | ||
Number Company's Board Members that Hold Board Seats in Non-Profit | board_member | 1 | ||
Number of Board Seats in Non-Profit Held by Company's Employees and Board Members | 3 | ||
Number of Board Seats in Non-Profit | 9 | ||
Value of resources donated to related parties | $ | $ 3 | $ 15 | $ 11 |
Value of donated subscriptions to related parties | $ | $ 112 | $ 253 | $ 183 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Total revenues | $ 3,603 | [1],[2] | $ 3,392 | $ 3,281 | $ 3,006 | $ 2,865 | $ 2,701 | $ 2,577 | $ 2,397 | $ 13,282 | $ 10,540 | $ 8,437 | ||
Gross profit | 2,657 | 2,503 | 2,432 | 2,239 | 2,127 | 1,987 | 1,907 | 1,746 | 9,831 | 7,767 | 6,203 | |||
Income (loss) from operations | 137 | 92 | 115 | 191 | 211 | 155 | 84 | 4 | 535 | 454 | 218 | |||
Net income | $ 362 | $ 105 | $ 299 | $ 344 | $ 206 | $ 107 | $ 46 | $ 1 | $ 1,110 | $ 360 | [3] | $ 323 | [3] | |
Basic net income per share (in dollars per share) | $ 0.47 | $ 0.14 | $ 0.40 | $ 0.47 | $ 0.28 | $ 0.15 | $ 0.06 | $ 0 | $ 1.48 | $ 0.50 | $ 0.47 | |||
Diluted net income per share (in dollars per share) | $ 0.46 | $ 0.13 | $ 0.39 | $ 0.46 | $ 0.28 | $ 0.14 | $ 0.06 | $ 0 | $ 1.43 | $ 0.49 | $ 0.46 | |||
[1] | Amounts include amortization of intangible assets acquired through business combinations, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$215 $166 $128Marketing and sales232 121 98 | |||||||||||||
[2] | Amounts include stock-based expense, as follows: Fiscal Year Ended January 31, 2019 2018 2017Cost of revenues$161 $130 $107Research and development307 260 188Marketing and sales643 469 389General and administrative172 138 136 | |||||||||||||
[3] | Prior period information has been adjusted for Topic 606. |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 21 | $ 12 | $ 10 |
Additions | 19 | 31 | 18 |
Deductions write-offs | (18) | (22) | (16) |
Balance at end of year | $ 22 | $ 21 | $ 12 |