Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2022 | Nov. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-14338 | |
Entity Registrant Name | AUTODESK, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2819853 | |
Entity Address, Address Line One | One Market Street, Ste. 400 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 507-5000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ADSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 215,767,494 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000769397 | |
Current Fiscal Year End Date | --01-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Net revenue: | ||||
Total net revenue | $ 1,280 | $ 1,126 | $ 3,687 | $ 3,175 |
Cost of revenue: | ||||
Total cost of revenue | 120 | 108 | 356 | 306 |
Gross profit | 1,160 | 1,018 | 3,331 | 2,869 |
Operating expenses: | ||||
Marketing and sales | 454 | 419 | 1,306 | 1,195 |
Research and development | 311 | 282 | 906 | 825 |
General and administrative | 129 | 113 | 377 | 344 |
Amortization of purchased intangibles | 10 | 11 | 30 | 30 |
Total operating expenses | 904 | 825 | 2,619 | 2,394 |
Income from operations | 256 | 193 | 712 | 475 |
Interest and other expense, net | (14) | (5) | (43) | (17) |
Income before income taxes | 242 | 188 | 669 | 458 |
Provision for income taxes | (44) | (51) | (139) | (50) |
Net income | $ 198 | $ 137 | $ 530 | $ 408 |
Basic net income per share (in dollars per share) | $ 0.92 | $ 0.62 | $ 2.44 | $ 1.85 |
Diluted net income per share (in dollars per share) | $ 0.91 | $ 0.62 | $ 2.43 | $ 1.84 |
Weighted average shares used in computing basic net income per share (in shares) | 216 | 220 | 217 | 220 |
Weighted average shares used in computing diluted net income per share (in shares) | 217 | 222 | 218 | 222 |
Subscription and Maintenance | ||||
Net revenue: | ||||
Total net revenue | $ 1,204 | $ 1,061 | $ 3,488 | $ 3,021 |
Cost of revenue: | ||||
Cost of revenue | 86 | 75 | 253 | 219 |
Amortization of developed technologies | 15 | 15 | 44 | 39 |
Subscription | ||||
Net revenue: | ||||
Total net revenue | 1,188 | 1,043 | 3,437 | 2,967 |
Maintenance | ||||
Net revenue: | ||||
Total net revenue | 16 | 18 | 51 | 54 |
Other | ||||
Net revenue: | ||||
Total net revenue | 76 | 65 | 199 | 154 |
Cost of revenue: | ||||
Cost of revenue | $ 19 | $ 18 | $ 59 | $ 48 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 198 | $ 137 | $ 530 | $ 408 |
Other comprehensive (loss) income, net of reclassifications: | ||||
Net gain on derivative instruments (net of tax effect of $(5), $(3), $(17), and $(7), respectively) | 26 | 19 | 99 | 39 |
Change in net unrealized (loss) gain on available-for-sale debt securities (net of tax effect of zero for all periods presented) | 0 | (1) | 3 | 7 |
Net change in cumulative foreign currency translation loss (net of tax effect of zero, zero, $1, and $(1) respectively) | (64) | (7) | (185) | (22) |
Total other comprehensive (loss) income | (38) | 11 | (83) | 24 |
Total comprehensive income | $ 160 | $ 148 | $ 447 | $ 432 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net gain on derivative instruments, tax (benefit) | $ (5) | $ (3) | $ (17) | $ (7) |
Change in net unrealized (loss) gain on available-for-sale securities, tax expense (benefit) | 0 | 0 | 0 | 0 |
Net change in cumulative foreign currency translation loss, tax expense (benefit) | $ 0 | $ 0 | $ 1 | $ (1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,665 | $ 1,528 |
Marketable securities | 139 | 236 |
Accounts receivable, net | 642 | 716 |
Prepaid expenses and other current assets | 342 | 284 |
Total current assets | 2,788 | 2,764 |
Long-term marketable securities | 37 | 45 |
Computer equipment, software, furniture and leasehold improvements, net | 149 | 162 |
Operating lease right-of-use assets | 271 | 305 |
Intangible assets, net | 423 | 494 |
Goodwill | 3,577 | 3,604 |
Deferred income taxes, net | 836 | 741 |
Long-term other assets | 554 | 492 |
Total assets | 8,635 | 8,607 |
Current liabilities: | ||
Accounts payable | 134 | 121 |
Accrued compensation | 293 | 341 |
Accrued income taxes | 40 | 30 |
Deferred revenue | 2,731 | 2,863 |
Operating lease liabilities | 82 | 87 |
Current portion of long-term notes payable, net | 350 | 350 |
Other accrued liabilities | 181 | 217 |
Total current liabilities | 3,811 | 4,009 |
Long-term deferred revenue | 1,052 | 927 |
Long-term operating lease liabilities | 323 | 346 |
Long-term income taxes payable | 85 | 20 |
Long-term deferred income taxes | 44 | 29 |
Long-term notes payable, net | 2,280 | 2,278 |
Long-term other liabilities | 134 | 149 |
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 3,213 | 2,923 |
Accumulated other comprehensive loss | (207) | (124) |
Accumulated deficit | (2,100) | (1,950) |
Total stockholders’ equity | 906 | 849 |
Total liabilities and stockholders’ equity | $ 8,635 | $ 8,607 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Operating activities: | ||
Net income | $ 530 | $ 408 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 113 | 114 |
Stock-based compensation expense | 493 | 410 |
Deferred income taxes | (98) | 15 |
Lease-related asset impairments | 21 | 0 |
Other | 13 | 13 |
Changes in operating assets and liabilities, net of business combinations: | ||
Accounts receivable | 70 | 70 |
Prepaid expenses and other assets | 1 | (139) |
Accounts payable and other liabilities | (76) | (67) |
Deferred revenue | 14 | (28) |
Accrued income taxes | 79 | 13 |
Net cash provided by operating activities | 1,160 | 809 |
Investing activities: | ||
Purchases of marketable securities | (199) | (56) |
Sales and maturities of marketable securities | 302 | 4 |
Capital expenditures | (32) | (50) |
Purchases of developed technologies | (6) | (10) |
Business combinations, net of cash acquired | (96) | (1,185) |
Other investing activities | (53) | (2) |
Net cash used in investing activities | (84) | (1,299) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 124 | 113 |
Taxes paid related to net share settlement of equity awards | (127) | (148) |
Repurchases of common stock | (894) | (483) |
Proceeds from debt, net of discount | 0 | 997 |
Other financing activities | 0 | (6) |
Net cash (used in) provided by financing activities | (897) | 473 |
Effect of exchange rate changes on cash and cash equivalents | (42) | (6) |
Net increase (decrease) in cash and cash equivalents | 137 | (23) |
Cash and cash equivalents at beginning of period | 1,528 | 1,772 |
Cash and cash equivalents at end of period | 1,665 | 1,749 |
Non-cash financing activities: | ||
Fair value of common stock issued to settle liability-classified restricted common stock | 8 | 3 |
Fair value of common stock issued related to business combinations | $ 10 | $ 3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of October 31, 2022, and for the three and nine months ended October 31, 2022 and 2021, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the results of operations for the three and nine months ended October 31, 2022, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2023, or for any other period. Further, the balance sheet as of January 31, 2022, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2022. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2022, filed on March 14, 2022. Change in presentation In the current fiscal year, the Company changed its presentation of certain subscription plan offerings in our Condensed Consolidated Statements of Operations. Revenue from subscription plan offerings in which the customer does not utilize the cloud functionality or that do not incorporate substantial cloud functionality, previously recorded in “Subscription” have been reclassified to “Other” and “Maintenance,” as applicable. Accordingly, prior period amounts have been reclassified to conform to the current period presentation, in all material respects. These reclassifications did not impact total net revenue . The effect of the change on the Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2021, was as follows: Three Months Ended October 31, 2021 Nine Months Ended October 31, 2021 As Reported Effect of Change in Presentation As Adjusted As Reported Effect of Change in Presentation As Adjusted Net revenue: Subscription $ 1,070 $ (27) $ 1,043 $ 3,035 $ (68) $ 2,967 Other 38 27 65 86 68 154 Total net revenue 1,126 — 1,126 3,175 — 3,175 In the current fiscal year, the Company changed its rounding presentation to the nearest whole number in millions of reported amounts, except per share data or as otherwise noted. The current year rounding presentation has been applied to all prior year amounts presented and, in certain circumstances, this change may adjust previously reported balances. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Autodesk will apply the expedients in ASU No. 2020-04 through December 31, 2022. Autodesk does not believe ASU No. 2020-04 will have a material impact on its consolidated financial statements. Recently issued accounting standards not yet adopted In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. ASU 2022-03 prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. ASU 2022-03 is effective for Autodesk's fiscal year beginning February 1, 2024 and interim periods within that fiscal year, with early adoption permitted. Autodesk does not believe ASU No. 2022-03 will have a material impact on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net revenue by product family: Architecture, Engineering and Construction (1) $ 575 $ 507 $ 1,676 $ 1,429 AutoCAD and AutoCAD LT (1) 354 323 1,025 912 Manufacturing 254 225 721 630 Media and Entertainment 78 63 217 177 Other 19 8 48 27 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by geographic area: Americas U.S. $ 447 $ 383 $ 1,269 $ 1,055 Other Americas 94 79 271 221 Total Americas 541 462 1,540 1,276 Europe, Middle East and Africa 476 433 1,398 1,226 Asia Pacific 263 231 749 673 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by sales channel: Indirect $ 827 $ 730 $ 2,412 $ 2,093 Direct 453 396 1,275 1,082 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by product type (2): Design $ 1,087 $ 967 $ 3,155 $ 2,756 Make 117 94 333 265 Other 76 65 199 154 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 ___________________ (1) During the nine months ended October 31, 2022, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The three months ended April 30, 2022, included within the nine months ended October 31, 2022, and both the three and nine months ended October 31, 2021, have been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue. (2) The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Basis of Presentation” for further detail. Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of October 31, 2022, Autodesk had remaining performance obligations of $4.68 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $3.14 billion or 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.54 billion or 33% of our remaining performance obligations as revenue thereafter. The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, the specific timing of customer renewals, and foreign currency fluctuations. Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of October 31, 2022. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $642 million and $569 million, respectively. Revenue recognized during the nine months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $2.46 billion and $2.13 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Oct. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Autodesk places its cash, cash equivalents, and marketable securities in highly liquid instruments with, and in the custody of, multiple diversified financial institutions globally with high credit ratings, and limits the amounts invested with any one institution, type of security, and issuer. Autodesk’s primary commercial banking relationship is with Citigroup Inc. and its global affiliates. Citibank, N.A., an affiliate of Citigroup, is one of the lead lenders and an agent in the syndicate of Autodesk’s $1.5 billion revolving credit facility. See Note 14, “Borrowing Arrangements,” in the Notes to Condensed Consolidated Financial Statements for further discussion. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments by significant investment category as of October 31, 2022, and January 31, 2022: October 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 515 $ — $ — $ 515 Commercial paper 299 — — 299 Certificates of deposit 21 — — 21 Agency discount notes 7 — — 7 Other (2) 5 — — 5 Marketable securities: Short-term Commercial paper 87 — — 87 Corporate debt securities 35 — — 35 Asset-backed securities 7 — — 7 Other (3) 8 2 — 10 Long-term Corporate debt securities 27 — (1) 26 Asset-backed securities 6 — — 6 Other (4) 5 — — 5 Mutual funds (5) (6) 81 4 (3) 82 Convertible debt securities (6) 3 — — 3 Total $ 1,106 $ 6 $ (4) $ 1,108 ___________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of municipal bonds and custody cash deposits. (3) Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations. (4) Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper 55 — — 55 U.S government securities 25 — — 25 Custody cash deposit 18 — — 18 Corporate debt securities 18 — — 18 Certificates of deposit 6 — — 6 Other (2) 4 — — 4 Marketable securities: Short-term Commercial paper 103 — — 103 Corporate debt securities 61 — — 61 Asset-backed securities 26 — — 26 Certificate of deposit 14 — — 14 U.S. government securities 13 — — 13 Municipal bonds 11 — — 11 Common Stock — 4 — 4 Other (3) 4 — — 4 Long-term Corporate debt securities 44 — — 44 Other (4) 1 — — 1 Mutual funds (5) (6) 74 16 (1) 89 Total $ 779 $ 20 $ (1) $ 798 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset-backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of October 31, 2022: Fair Value Due within 1 year $ 113 Due in 1 year through 5 years 55 Due in 5 years through 10 years 2 Due after 10 years 4 Total $ 174 As of both October 31, 2022, and January 31, 2022, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the nine months ended October 31, 2022. Autodesk monitors all marketable debt securities for potential credit losses by reviewing indicators such as, but not limited to, current credit rating, change in credit rating, credit outlook, and default risk. There were no allowances for credit losses as of both October 31, 2022, and January 31, 2022. There were no write offs of accrued interest receivables for both the nine months ended October 31, 2022 and 2021. There was no material realized gain or loss for the sales or redemptions of marketable debt securities during both the nine months ended October 31, 2022 and 2021. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Marketable debt securities $ 57 $ — $ 302 $ 4 Strategic investments in equity securities As of October 31, 2022, and January 31, 2022, Autodesk had $181 million and $134 million, respectively, in direct investments in privately held companies. These strategic investments in equity securities do not have readily determined fair values, and Autodesk uses the measurement alternative to account for the adjustment to these investments in a given quarter. If Autodesk determines that an impairment has occurred, Autodesk writes down the investment to its fair value. Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative are included in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Nine Months Ended October 31, Cumulative Amount as of 2022 2021 October 31, 2022 Upward adjustments $ 6 $ 7 $ 29 Negative adjustments, including impairments (5) (10) (82) Net unrealized adjustments $ 1 $ (3) $ (53) Autodesk recognized realized gains of zero and $1 million for the three and nine months ended October 31, 2022, respectively, on the disposition of strategic investment equity securities. During the three and nine months ended October 31, 2021, Autodesk recognized gains of zero and $8 million on the disposition of strategic investment equity securities, respectively. Fair Value Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of October 31, 2022, and January 31, 2022: October 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 515 $ — $ — $ 515 Commercial paper — 299 — 299 Certificates of deposit — 21 — 21 Agency discount notes — 7 — 7 Other (2) 2 3 — 5 Marketable securities: Short-term Commercial paper — 87 — 87 Corporate debt securities — 35 — 35 Asset-backed securities — 7 — 7 Other (3) 2 8 — 10 Long-term Corporate debt securities — 26 — 26 Asset-backed securities — 6 — 6 Other (4) — 5 — 5 Long-term other assets: Mutual funds (5)(6) 82 — — 82 Convertible debt securities (6) — — 3 3 Derivative assets: Derivative contract assets (6) — 72 — 72 Strategic investments derivative assets (6) — — 2 2 Derivative liabilities: Derivative contract liabilities (7) — (15) — (15) Total $ 601 $ 561 $ 5 $ 1,167 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of municipal bonds and custody cash deposits. (3) Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations. (4) Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper — 55 — 55 U.S government securities — 25 — 25 Custody cash deposit 18 — — 18 Corporate debt securities — 18 — 18 Certificates of deposit — 6 — 6 Other (2) — 4 — 4 Marketable securities: Short-term Commercial paper — 103 — 103 Corporate debt securities — 61 — 61 Asset backed securities — 26 — 26 Certificate of deposit — 14 — 14 U.S. government securities — 13 — 13 Municipal bonds — 11 — 11 Common Stock 4 — — 4 Other (3) — 4 — 4 Long-term Corporate debt securities — 44 — 44 Other (4) — 1 — 1 Long-term other assets: Mutual funds (5) (6) 89 — — 89 Derivative assets: Derivative contract assets (6) — 18 — 18 Derivative liabilities: Derivative contract liabilities (7) — (11) — (11) Total $ 413 $ 392 $ — $ 805 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. A reconciliation of the change in Autodesk’s Level 3 items for the nine months ended October 31, 2022, is as follows: Fair Value Measurements Using Derivative Contract Convertible Debt Securities Total Balances, January 31, 2022 $ — $ — $ — Purchases 2 3 5 Balances, October 31, 2022 $ 2 $ 3 $ 5 |
Equity Compensation
Equity Compensation | 9 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation Stock Plans The 2022 Equity Incentive Plan (the “2022 Plan”) was approved by Autodesk’s stockholders and became effective on June 16, 2022. The 2022 Plan replaced the 2012 Employee Stock Plan, as amended, and the 2012 Outside Directors’ Stock Plan, as amended (collectively, the “Prior Plans”), and no further equity awards may be granted under the Prior Plans. The 2022 Plan reserves up to 23 million shares. The 2022 Plan permits the grant of stock options, restricted stock units, and restricted stock awards. Each restricted stock unit or restricted stock award granted will be counted against the shares authorized for issuance under the 2022 Plan as 2.08 shares. If a granted option, restricted stock unit, or restricted stock award expires or becomes unexercisable for any reason, the unpurchased or forfeited shares that were granted may be returned to the 2022 Plan and may become available for future grant under the 2022 Plan. As of October 31, 2022, 893 thousand shares subject to restricted stock units and restricted stock awards have been granted under the 2022 Plan. Restricted stock units that were granted under the 2022 Plan vest over one Restricted Stock Units A summary of restricted stock activity for the nine months ended October 31, 2022, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2022 4,033 $ 251.17 Granted 3,431 198.18 Vested (1,933) 237.73 Canceled/Forfeited (472) 233.32 Performance Adjustment (1) (2) 299.07 Unvested restricted stock units at October 31, 2022 5,057 $ 222.02 _______________ (1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2022 performance period. The performance stock units were attained at rates ranging from 87% to 113% of the target award. The fair value of the shares vested during the nine months ended October 31, 2022 and 2021, was $402 million and $517 million, respectively. During the nine months ended October 31, 2022, Autodesk granted 3,077 thousand restricted stock units. Restricted stock units are not considered outstanding stock at the time of grant, as the holders of these units are not entitled to any of the rights of a stockholder, including voting rights. Autodesk recorded stock-based compensation expense related to restricted stock units of $130 million and $110 million during the three months ended October 31, 2022 and 2021, respectively. Autodesk recorded stock-based compensation expense related to restricted stock units of $383 million and $315 million during the nine months ended October 31, 2022 and 2021, respectively. During the nine months ended October 31, 2022 and 2021, Autodesk settled liability-classified awards in the amount of $8 million and $3 million, respectively. The ultimate number of shares earned was based on the Autodesk closing stock price on the vesting date. As these awards were settled in a fixed dollar amount of shares, the awards were accounted for as a liability-classified award and were expensed using the straight-line method over the vesting period. During the nine months ended October 31, 2022, Autodesk granted 239 thousand performance stock units for which the ultimate number of shares earned is determined based on the achievement of performance criteria at the end of the stated service and performance period. The performance criteria for the performance stock units are primarily based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee and total stockholder return compared against companies in the S&P North American Technology Software Index with a market capitalization over $2.0 billion (“Relative TSR”). The fair value of the performance stock units is expensed using the accelerated attribution method over the three-year vesting period and have the following vesting schedule: • Up to one third of the performance stock units may vest following year one, depending upon the achievement of the performance criteria for fiscal 2023 as well as 1-year Relative TSR (covering year one). • Up to one third of the performance stock units may vest following year two, depending upon the achievement of the performance criteria for year two as well as 2-year Relative TSR (covering years one and two). • Up to one third of the performance stock units may vest following year three, depending upon the achievement of the performance criteria for year three as well as 3-year Relative TSR (covering years one, two and three). The performance criteria for the performance stock units vested during the nine months ended October 31, 2022, was based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee. Additionally, during the nine months ended October 31, 2022, Autodesk granted 115 thousand performance stock units, as part of a program offering certain employees the option to receive equity in lieu of the opportunity to receive an annual cash incentive award. The ultimate number of shares earned is determined based on the achievement of performance criteria at the end of the stated service and performance period. The performance criteria for the performance stock units are based on revenue and Non-GAAP income from operations targets adopted by the Compensation and Human Resource Committee. The fair value of these performance stock units is expensed using the accelerated attribution method over the one-year vesting period. Performance stock units are not considered outstanding stock at the time of grant, as the holders of these units are not entitled to any of the rights of a stockholder, including voting rights. Autodesk recorded stock-based compensation expense related to performance stock units of $13 million and $18 million for the three months ended October 31, 2022 and 2021, respectively. Autodesk recorded stock-based compensation expense related to performance stock units of $42 million and $50 million during the nine months ended October 31, 2022 and 2021, respectively. On May 20, 2022, the Compensation and Human Resource Committee of the Board of Directors approved an immaterial modification to certain elements of the fiscal year 2023 performance criteria for the performance stock units granted in fiscal years 2023, 2022, and 2021. Autodesk accounted for the change as a modification and revalued the awards as of the modification date resulting in no material incremental stock-based compensation expense. Common Stock Autodesk agreed to issue a fixed amount of $5 million in common stock at a future date to certain employees in connection with a fiscal 2021 acquisition. Issuance of the common stock was dependent on the respective employees’ continued employment through the vesting period. During fiscal 2022, Autodesk issued 8,300 shares at an aggregate fair value of $3 million. During fiscal 2023, Autodesk issued the remaining 12,644 shares at an aggregate fair value of $3 million. The awards were accounted for as liability-classified awards and were recognized as compensation expense using the straight-line method over the vesting period. Autodesk issued 73,632 shares of restricted common stock to certain employees in connection with a fiscal 2021 acquisition. These shares of restricted common stock are subject to forfeiture by the employee if employment terminates prior to the three-year employment period. The fair value of the restricted common stock is recorded as compensation for post-acquisition services and recognized as expense using the straight-line method over the three-year repurchase period. Autodesk issued 9,277 shares of restricted common stock to certain employees in connection with a fiscal 2022 acquisition. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the two-year vesting period. Autodesk agreed to issue a fixed amount of $13 million in shares of common stock to certain employees in connection with a fiscal 2022 acquisition. Issuance of the common stock is dependent on the respective employees’ continued employment through the vesting period. The number of shares to be issued will be determined based on the volume weighted average closing price (“VWAP”) of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. During the nine months ended October 31, 2022, Autodesk issued 24 thousand shares at an aggregate fair value of $5 million. As of October 31, 2022, the remaining shares to be issued are estimated to be 39 thousand. The awards are accrued as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. Autodesk agreed to issue a fixed amount of $11 million in common stock at a future date to certain employees in connection with other fiscal 2022 acquisitions. Issuance of the common stock is dependent on the respective employees’ continued employment through the vesting period. The number of shares to be issued will be determined based on the VWAP of Autodesk’s common stock at the issuance date. As of October 31, 2022, shares to be issued are estimated to be 53 thousand. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. Additionally, Autodesk issued 12,782 shares of restricted common stock to certain employees in connection with these fiscal 2022 acquisitions. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the vesting period. Autodesk issued 40,289 shares of restricted common stock to certain employees in connection with a fiscal 2023 acquisition. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the two-year vesting period. Additionally, Autodesk agreed to issue a fixed amount of $5 million in common stock at a future date to certain employees in connection with a fiscal 2023 acquisition. Issuance of the common stock is dependent on the respective employees’ continued employment through the vesting period. The number of shares to be issued will be determined based on the VWAP of Autodesk’s common stock at the issuance date. As of October 31, 2022, shares to be issued are estimated to be 23 thousand. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. See Note 8, “Acquisitions,” for further information. Autodesk recorded stock-based compensation expense related to common stock shares of $10 million and $5 million for the three months ended October 31, 2022 and 2021, respectively. Autodesk recorded stock-based compensation expense related to common stock shares of $27 million and $12 million for the nine months ended October 31, 2022 and 2021, respectively. 1998 Employee Qualified Stock Purchase Plan (“ESPP”) Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period. A summary of the ESPP activity for the nine months ended October 31, 2022 and 2021, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Issued shares (in thousands) 363 361 740 851 Average price of issued shares $ 158.78 $ 133.00 $ 166.44 $ 130.13 Weighted average grant date fair value of shares granted under the ESPP (1) $ 66.43 $ 83.75 $ 67.77 $ 84.21 _______________ (1) Calculated as of the award grant date using the Black-Scholes Merton (“BSM”) option pricing model. During the nine months ended October 31, 2022, Autodesk reset the price for certain offering dates in connection with Autodesk’s ESPP as Autodesk’s closing stock price for the respective offering dates was above the closing stock price on March 31, 2022 and on September 30, 2022, which triggered new 24-month offering periods through March 31, 2024 and September 30, 2024, respectively, resulting in aggregate modification expense of approximately $21 million to be recognized over the new offering periods. Stock-based Compensation Expense The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2022 and 2021, as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Cost of subscription and maintenance revenue $ 9 $ 5 $ 26 $ 18 Cost of other revenue 3 3 9 7 Marketing and sales 68 60 199 173 Research and development 71 56 199 163 General and administrative 21 20 63 52 Stock-based compensation expense related to stock awards and ESPP purchases 172 144 496 413 Tax (benefit) expense (2) (26) 7 (46) Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 170 $ 118 $ 503 $ 367 Stock-based Compensation Expense Assumptions Autodesk determines the grant date fair value of its share-based payment awards using a BSM option pricing model or the quoted stock price on the date of grant, unless the awards are subject to market conditions, in which case Autodesk uses the Monte Carlo simulation model. The Monte Carlo simulation model uses multiple input variables to estimate the probability that market conditions will be achieved. Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended October 31, 2022 Three Months Ended October 31, 2021 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities N/A 40.7 - 44.9% N/A 29.5 - 36.6% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% N/A —% Range of risk-free interest rates N/A 3.7 -3.9% N/A 0.1 - 0.2% Nine Months Ended October 31, 2022 Nine Months Ended October 31, 2021 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities 39.4 - 40.7% 38.3 - 44.9% 36.9% 29.5 - 41.8% Range of expected lives (in years) N/A 0.5 - 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 1.2 - 1.6% 0.9 - 3.9% 0.1% 0.1 - 0.2% Autodesk estimates expected volatility for stock-based awards based on the average of the following two measures: (1) a measure of historical volatility in the trading market for the Company’s common stock, and (2) the implied volatility of traded forward call options to purchase shares of the Company’s common stock. The expected volatility for performance stock units subject to market conditions includes the expected volatility of Autodesk's peer companies within the S&P North American Technology Software Index with a market capitalization over $2.0 billion, depending on the award type. The range of expected lives of ESPP awards are based upon the four six-month exercise periods within a 24-month offering period. Autodesk does not currently pay, and does not anticipate paying in the foreseeable future, any cash dividends. Consequently, an expected dividend yield of zero is used in the BSM option pricing model and the Monte Carlo simulation model. The risk-free interest rate used in the BSM option pricing model and the Monte Carlo simulation model for stock-based awards is the historical yield on U.S. Treasury securities with equivalent remaining lives. |
Income Tax
Income Tax | 9 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Autodesk had income tax expense of $44 million, relative to pre-tax income of $242 million for the three months ended October 31, 2022, and income tax expense of $51 million, relative to pre-tax income of $188 million for the three months ended October 31, 2021. Income tax expense for the three months ended October 31, 2022, reflects a decrease in tax expense relating to a U.S. foreign derived intangible income benefit driven by the capitalization of research and development expenditures starting in fiscal 2023 as required by the U.S. Tax Cuts and Jobs Act (“Tax Act”), offset by an increase in tax expense relating to stock-based compensation and final U.S. foreign tax credit regulations enacted in fiscal 2023. Autodesk had income tax expense of $139 million, relative to pre-tax income of $669 million for the nine months ended October 31, 2022, and income tax expense of $50 million, relative to pre-tax income of $458 million for the nine months ended October 31, 2021. Income tax expense for the nine months ended October 31, 2022, reflects an increase in tax expense relating to stock-based compensation and final U.S. foreign tax credit regulations enacted in fiscal 2023, offset by a U.S. foreign derived intangible income benefit driven by the capitalization of research and development expenditures starting in fiscal 2023 as required by the Tax Act. In addition, the nine months ended October 31, 2021 included a non-recurring discrete tax benefit relating to the Supreme Court decision in India on the taxability of software license payments to nonresidents. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. We have maintained a valuation allowance on all or part of our Netherlands, Canada, Australia, California, Michigan deferred tax assets, as well as our U.S. capital loss deferred tax assets as it is more likely than not that some or all of the deferred tax assets will not be realized. As of October 31, 2022, the Company had $213 million of gross unrecognized tax benefits, of which $35 million would reduce our valuation allowance, if recognized. The remaining $178 million would impact the effective tax rate, if recognized. The company’s unrecognized tax benefits decreased by $8 million in the nine months ended October 31, 2022, due to the settlement of a German tax audit for tax years 2014-2016. On August 16, 2022, the Inflation Reduction Act was signed into law. The Inflation Reduction Act contains a number of revisions to the Internal Revenue Code effective in taxable years beginning after December 31, 2022, including a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases by publicly traded U.S. corporations. Autodesk is currently assessing the impact the Inflation Reduction Act will have on its consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The results of operations for the following acquisitions are included in the accompanying Condensed Consolidated Statements of Operations since the acquisition date. Pro forma results of operations have not been presented because the effects of the acquisition are not material to Autodesk’s Condensed Consolidated Financial Statements. During the nine months ended October 31, 2022, Autodesk completed two business combinations. The acquisition-date fair value of the consideration transferred totaled $114 million, which consisted of $96 million of cash, 40,289 shares of Autodesk’s restricted common stock at an aggregate fair value of $10 million, and Autodesk will issue a fixed amount of $5 million in common stock at future dates to certain employees. Of the total consideration transferred, $97 million is considered purchase consideration. Of the remaining amount, $10 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense using the straight-line method over the vesting period, $5 million was accounted for as liability-classified awards and will be recognized as compensation expense using the straight-line method over the vesting period and $2 million was recorded as stock-based compensation expense on the date of acquisition. The 40,289 shares of restricted common stock are subject to forfeiture until the second anniversary of the acquisition closing date. The shares are released on the first and second anniversaries, 40% and 60%, respectively, subject to continued employment. Issuance of the $5 million fixed value in common stock is dependent on the respective employees’ continued employment and vests 40% and 60% on the first and second anniversaries of the closing date, respectively. The number of shares will be determined based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. The number of shares is estimated to be 23,000 based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending October 31, 2022, the last trading day of the fiscal quarter. See also Note 6, “Equity Compensation”. Purchase Price Allocation The acquisitions were accounted for as business combinations, and Autodesk recorded the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of each respective acquisition. The fair values assigned to the identifiable intangible assets acquired were based on estimates and assumptions determined by management. Autodesk recorded the excess of consideration transferred over the aggregate fair values as goodwill. The goodwill recorded was primarily attributable to synergies expected to arise after the respective acquisition. No goodwill is deductible for U.S. income tax purposes. The transaction costs related to the acquisitions were not material. The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combinations that were completed during the nine months ended October 31, 2022: Aggregated Total (1) Developed technologies $ 8 Customer relationships 4 Goodwill 85 Deferred revenue and long-term deferred revenue (2) Long-term deferred income taxes 1 Net tangible assets 1 Total $ 97 _______________ (1) There were no acquisitions during the three months ended October 31, 2022. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net The following tables summarize the Company's intangible assets, net, as of October 31, 2022, and January 31, 2022: October 31, 2022 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 649 $ (389) $ 260 Developed technologies 854 (702) 152 Trade names and patents 115 (104) 11 Total intangible assets $ 1,618 $ (1,195) $ 423 _______________ (1) Includes the effects of foreign currency translation. January 31, 2022 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 667 $ (375) $ 292 Developed technologies 847 (661) 186 Trade names and patents 116 (100) 16 Total intangible assets $ 1,630 $ (1,136) $ 494 _______________ (1) Includes the effects of foreign currency translation. |
Cloud Computing Arrangements
Cloud Computing Arrangements | 9 Months Ended |
Oct. 31, 2022 | |
Capitalized Contract Cost [Abstract] | |
Cloud Computing Arrangements | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net revenue by product family: Architecture, Engineering and Construction (1) $ 575 $ 507 $ 1,676 $ 1,429 AutoCAD and AutoCAD LT (1) 354 323 1,025 912 Manufacturing 254 225 721 630 Media and Entertainment 78 63 217 177 Other 19 8 48 27 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by geographic area: Americas U.S. $ 447 $ 383 $ 1,269 $ 1,055 Other Americas 94 79 271 221 Total Americas 541 462 1,540 1,276 Europe, Middle East and Africa 476 433 1,398 1,226 Asia Pacific 263 231 749 673 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by sales channel: Indirect $ 827 $ 730 $ 2,412 $ 2,093 Direct 453 396 1,275 1,082 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by product type (2): Design $ 1,087 $ 967 $ 3,155 $ 2,756 Make 117 94 333 265 Other 76 65 199 154 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 ___________________ (1) During the nine months ended October 31, 2022, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The three months ended April 30, 2022, included within the nine months ended October 31, 2022, and both the three and nine months ended October 31, 2021, have been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue. (2) The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Basis of Presentation” for further detail. Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of October 31, 2022, Autodesk had remaining performance obligations of $4.68 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $3.14 billion or 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.54 billion or 33% of our remaining performance obligations as revenue thereafter. The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, the specific timing of customer renewals, and foreign currency fluctuations. Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of October 31, 2022. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $642 million and $569 million, respectively. Revenue recognized during the nine months ended October 31, 2022 and 2021, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $2.46 billion and $2.13 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. The following table summarizes the changes in the carrying amount of goodwill for the nine months ended October 31, 2022, (in millions): Balance as of January 31, 2022 $ 3,753 Less: accumulated impairment losses as of January 31, 2022 (149) Net balance as of January 31, 2022 3,604 Additions arising from acquisitions during the period 85 Effect of foreign currency translation and measurement period adjustments (1) (112) Balance as of October 31, 2022 $ 3,577 _______________ |
Deferred Compensation
Deferred Compensation | 9 Months Ended |
Oct. 31, 2022 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation | Deferred Compensation At October 31, 2022, Autodesk had investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans and a corresponding deferred compensation liability totaling $82 million. Of this amount, $7 million was classified as current and $75 million was classified as non-current in the Condensed Consolidated Balance Sheets. Of the $89 million related to the investments in a rabbi trust as of January 31, 2022, $7 million was classified as current and $82 million was classified as non-current. The current and non-current asset portions of the investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans are recorded in the Condensed Consolidated Balance Sheets under “Prepaid expenses and other current assets” and “Long-term other assets,” respectively. The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under “Accrued compensation” and “Long-term other liabilities,” respectively. Costs to obtain a contract with a customer |
Computer Equipment, Software, L
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net | 9 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net | Computer Equipment, Software, Leasehold Improvements, and Furniture, Net Computer equipment, software, leasehold improvements, and furniture and equipment and the related accumulated depreciation were as follows: October 31, 2022 January 31, 2022 Computer hardware, at cost $ 124 $ 137 Computer software, at cost 49 55 Leasehold improvements, land and buildings, at cost 356 351 Furniture and equipment, at cost 92 93 621 636 Less: Accumulated depreciation (472) (474) Computer hardware, software, leasehold improvements, and furniture and equipment, net $ 149 $ 162 |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements In October 2021, Autodesk issued $1.0 billion aggregate principal amount of 2.4% notes due December 15, 2031 (“2021 Notes”). Net of a discount of $3 million and issuance costs of $9 million, Autodesk received net proceeds of $988 million from issuance of the 2021 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2021 Notes using the effective interest method. The 2021 Notes were designated as sustainability bonds, the net proceeds of which are used to fund environmentally and socially responsible projects in the following areas: eco-efficient products, production technologies, and processes, sustainable water and wastewater management, renewable energy & energy efficiency, green buildings, pollution prevention and control, and socioeconomic advancement and empowerment. In September 2021, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) by and among the Company, the lenders party thereto and Citibank, N.A. (“Citibank”), as administrative agent, which provides for an unsecured revolving loan facility in the aggregate principal amount of $1.5 billion, with an option to be increased up to $2.0 billion. The revolving credit facility is available for working capital or other business needs. The Credit Agreement contains customary covenants that could, among other things, restrict the imposition of liens on Autodesk’s assets, and restrict Autodesk’s ability to incur additional indebtedness or make dispositions of assets if Autodesk fails to maintain compliance with the financial covenants. The Credit Agreement requires the Company to maintain a maximum leverage ratio of Consolidated Covenant Debt to Consolidated EBITDA (each as defined in the Credit Agreement) no greater than 3.50:1.00 during the term of the credit facility, subject to adjustment following the consummation of certain acquisitions up to 4.00:1.00 for up to four consecutive fiscal quarters. At October 31, 2022, Autodesk was in compliance with the Credit Agreement covenants. Revolving loans under the Credit Agreement will bear interest, at the Company’s option, at either (i) a per annum rate equal to the Base Rate (as defined in the Credit Agreement) plus a margin of between 0.000% and 0.375%, depending on the Company’s Public Debt Rating (as defined in the Credit Agreement), or (ii) a per annum rate equal to the rate at which dollar deposits are offered in the London interbank market, plus a margin of between 0.785% and 1.375%, depending on Company’s Public Debt Rating. The Credit Agreement includes customary provisions to provide for the eventual replacement of LIBOR as a benchmark interest rate. In November 2022, the Company entered into an amendment to the Credit Agreement to replace LIBOR with Secured Overnight Financing Rate as the benchmark interest rate. The interest rates for the revolving credit facility are subject to upward or downward adjustments, on an annual basis, if the Company achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) the amount of scope 1 and 2 greenhouse gas emissions from the global operations of the Company and its subsidiaries during a fiscal year less qualified emissions reduction instruments and (ii) the percentage of employees of the Company and its subsidiaries identifying as female working in technical roles. The maturity date on the Credit Agreement is September 30, 2026. At October 31, 2022, Autodesk had no outstanding borrowings under the Credit Agreement. In January 2020, Autodesk issued $500 million aggregate principal amount of 2.85% notes due January 15, 2030 (“2020 Notes”). Net of a discount of $1 million and issuance costs of $5 million, Autodesk received net proceeds of $494 million from issuance of the 2020 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2020 Notes using the effective interest method. The proceeds of the 2020 Notes were used for the repayment of $450 million of debt due June 15, 2020 , and the remainder is available for general corporate purposes. In June 2017, Autodesk issued $500 million aggregate principal amount of 3.5% notes due June 15, 2027 (the “2017 Notes”). Net of a discount of $3 million and issuance costs of $5 million, Autodesk received net proceeds of $492 million from issuance of the 2017 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2017 Notes using the effective interest method. The proceeds of the 2017 Notes have been used for the repayment of $400 million of debt due December 15, 2017, and the remainder is available for general corporate purposes. In June 2015, Autodesk issued $300 million aggregate principal amount of 4.375% notes due June 15, 2025 (“2015 Notes”). Net of a discount of $1 million, and issuance costs of $3 million, Autodesk received net proceeds of $296 million from issuance of the 2015 Notes. Both the discount and issuance costs are being amortized to interest expense over the respective term of the 2015 Notes using the effective interest method. The proceeds of the 2015 Notes are available for general corporate purposes. In December 2012, Autodesk issued $350 million aggregate principal amount of 3.6% notes due December 15, 2022 (“2012 Notes”). Autodesk received net proceeds of $347 million from issuance of the 2012 Notes, net of aggregate total discount and issuance costs of $3 million. Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2012 Notes using the effective interest method. The proceeds of the 2012 Notes are available for general corporate purposes. The 2021 Notes, 2020 Notes, 2017 Notes, 2015 Notes and the 2012 Notes may all be redeemed at any time, subject to a make whole premium. In addition, upon the occurrence of certain change of control triggering events, Autodesk may be required to repurchase all the aforementioned notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. All notes contain restrictive covenants that limit Autodesk's ability to create certain liens, to enter into certain sale and leaseback transactions and to consolidate or merge with, or convey, transfer, or lease all or substantially all of its assets, subject to important qualifications and exceptions. Based on the quoted market prices, the approximate fair value of the notes as of October 31, 2022, were as follows: Aggregate Principal Amount Fair value 2012 Notes $ 350 $ 350 2015 Notes 300 295 2017 Notes 500 460 2020 Notes 500 418 2021 Notes 1,000 778 The expected future principal payments for all borrowings as of October 31, 2022, were as follows (in millions): Fiscal year ending 2023 (remainder) $ 350 2024 — 2025 — 2026 300 2027 — Thereafter 2,000 Total principal outstanding $ 2,650 |
Leases
Leases | 9 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Autodesk has operating leases for real estate, vehicles, and certain equipment. Leases have remaining lease terms of less than 1 year to 67 years, some of which include options to extend the lease with renewal terms from 1 year to 10 years and some of which include options to terminate the leases from less than 1 year to 7 years. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Payments under our lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments for common area maintenance that are subject to annual reconciliation, and payments for maintenance and utilities. The Company’s leases do not contain residual value guarantees or material restrictive covenants. Short-term leases are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Short-term lease expense was not material for the periods presented. Changes in operating lease right-of-use assets and operating lease liabilities are presented net in the “Accounts payable and other liabilities” line in the Condensed Consolidated Statements of Cash Flows with the exception of “Lease-related asset impairments” which is presented in “Adjustments to reconcile net income to net cash provided by operating activities”. During the three and nine months ended October 31, 2022, Autodesk recorded total operating lease right-of-use assets impairment charges of $10 million and $17 million, respectively. Autodesk did not recognize any charges during both the three and nine months ended October 31, 2021. Autodesk assessed the asset groupings for disaggregation based on the proposed changes in use of the facilities. For asset groups where impairment was triggered, Autodesk utilized an income approach to value the asset groups by developing discounted cash flow models. The significant assumptions used in the discounted cash flow models for each of the asset groups included projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows. These significant assumptions are considered Level 1 and Level 2 inputs in accordance with the fair value hierarchy described in Note 1, “Business and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in our Form 10-K for the fiscal year ended January 31, 2022. The operating lease right-of-use asset charges are included in “general and administrative” in the Company’s Condensed Consolidated Statements of Operations. The components of lease cost were as follows: Three Months Ended October 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ 1 $ 9 $ 7 $ 2 $ 21 Variable lease cost — — 2 1 1 4 Nine Months Ended October 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 6 $ 3 $ 28 $ 21 $ 8 $ 66 Variable lease cost 1 — 5 4 2 12 Three Months Ended October 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ 1 $ 11 $ 7 $ 4 $ 25 Variable lease cost 1 — 3 2 1 7 Nine Months Ended October 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 6 $ 2 $ 33 $ 23 $ 11 $ 75 Variable lease cost 2 — 7 5 3 17 Supplemental operating cash flow information related to leases is as follows: Nine Months Ended October 31, 2022 2021 Cash paid for operating leases included in operating cash flows (1) $ 84 $ 84 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 49 12 _______________ (1) Includes $12 million and $17 million in variable lease payments for the nine months ended October 31, 2022 and 2021, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. The weighted average remaining lease term for operating leases is 6.5 and 6.9 years at October 31, 2022, and January 31, 2022, respectively. The weighted average discount rate was 2.59% and 2.46% at October 31, 2022, and January 31, 2022, respectively. Maturities of operating lease liabilities were as follows: Fiscal year ending 2023 (remainder) $ 24 2024 96 2025 78 2026 63 2027 43 Thereafter 135 439 Less imputed interest 34 Present value of operating lease liabilities $ 405 Autodesk has subleased certain office space to a third party and has classified the sublease as an operating lease. The sublease has a remaining lease term of 9.5 years. Sublease income was $2 million and $3 million for the three and nine months ended October 31, 2022, respectively. Sublease income is recorded as a reduction of lease expense in the Company’s Condensed Consolidated Statements of Operations. Operating lease amounts in the table above do not include sublease income payments of $79 million. Autodesk expects to receive sublease income payments of approximately $32 million for remaining fiscal 2023 through fiscal 2027 and $47 million thereafter. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of October 31, 2022, and January 31, 2022: Balance Sheet Location Fair Value at October 31, 2022 January 31, 2022 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 66 $ 12 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 8 6 Total derivative assets $ 74 $ 18 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 11 $ 7 Derivatives not designated as hedging instruments Other accrued liabilities 4 4 Total derivative liabilities $ 15 $ 11 The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2022 and 2021 (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 26 $ 14 $ 99 $ 24 Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 19 $ (3) $ 36 $ (13) Cost of revenue (1) — (3) — Operating expenses (8) (2) (18) (2) Total $ 10 $ (5) $ 15 $ (15) The amount and location of gain recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2022 and 2021, (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Interest and other expense, net $ 4 $ 6 $ 34 $ 11 Foreign currency contracts designated as cash flow hedges Autodesk uses foreign currency contracts to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These currency collars and forward contracts are designated and documented as cash flow hedges. The notional amounts of these contracts are presented net settled and were $1.00 billion at October 31, 2022, and $1.08 billion at January 31, 2022. Outstanding contracts are recognized as either assets or liabilities on the Company's Condensed Consolidated Balance Sheet at fair value. The majority of the net gain of $123 million remaining in “Accumulated other comprehensive loss” as of October 31, 2022, is expected to be recognized into earnings within the next 24 months. The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three and nine months ended October 31, 2022 and 2021: Three Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,188 $ 16 $ 86 $ 454 $ 311 $ 129 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 19 $ — $ (1) $ (4) $ (2) $ (2) Nine Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,437 $ 51 $ 253 $ 1,306 $ 906 $ 377 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 36 $ — $ (3) $ (9) $ (4) $ (5) Three Months Ended October 31, 2021 Net Revenue Cost of revenue Operating expenses Subscription Revenue (1) Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,043 $ 18 $ 75 $ 419 $ 282 $ 113 Loss on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of loss reclassified from accumulated other comprehensive income into income $ (3) $ — $ — $ (1) $ — $ (1) Nine Months Ended October 31, 2021 Net revenue Cost of revenue Operating expenses Subscription revenue (1) Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 2,967 $ 54 $ 219 $ 1,195 $ 825 $ 344 (Loss) gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (12) $ (1) $ — $ — $ (1) $ (1) ____________________ (1) In the current fiscal year, the Company changed its presentation of certain subscription plan offerings in our Condensed Consolidated Statement of Operations. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in all material respects. See Note 1, “Basis of Presentation,” for further detail. Derivatives not designated as hedging instruments |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, Autodesk provides indemnifications of varying scopes, including limited product warranties and indemnification of customers against claims of intellectual property infringement made by third parties arising from the use of its products or services. Autodesk accrues for known indemnification issues if a loss is probable and can be reasonably estimated. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. In connection with the purchase, sale, or license of assets or businesses with third parties, Autodesk has entered into or assumed customary indemnification agreements related to the assets or businesses purchased, sold, or licensed. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. As permitted under Delaware law, Autodesk has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at Autodesk’s request in such capacity. The maximum potential amount of future payments Autodesk could be required to make under these indemnification agreements is unlimited; however, Autodesk has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable Autodesk to recover a portion of any future amounts paid. Autodesk believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings Autodesk is involved in a variety of claims, suits, investigations, inquiries, and proceedings in the normal course of business including claims of alleged infringement of intellectual property rights, commercial, employment, tax, prosecution of unauthorized use, business practices, and other matters. Autodesk routinely reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any matter is considered probable and the amount can be reasonably estimated, Autodesk records a liability for the estimated loss. Because of inherent uncertainties related to these legal matters, Autodesk bases its loss accruals on the best information available at the time. As additional information becomes available, Autodesk reassesses its potential liability and may revise its estimates. In the Company's opinion, resolution of pending matters is not expected to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the Company's results of operations, cash flows, or financial position in a particular period, however, based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company's financial statements, any such amount is either immaterial or it is not possible to provide an estimated amount of any such potential loss. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component, net of tax, as of October 31, 2022, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2022 218 $ 2,923 $ (124) $ (1,950) $ 849 Common shares issued under stock plans 1 (10) (10) Stock-based compensation expense 146 146 Shares issued related to business combination 10 10 Net income 146 146 Other comprehensive loss (24) (24) Repurchase and retirement of common shares (1) (2) (97) (339) (436) Balances, April 30, 2022 217 2,972 (148) (2,143) 681 Common shares issued under stock plans (17) (17) Stock-based compensation expense 163 163 Settlement of liability-classified restricted common shares 5 5 Net income 186 186 Other comprehensive loss (21) (21) Repurchase and retirement of common shares (1) (1) (34) (223) (257) Balances, July 31, 2022 216 3,089 (169) (2,180) 740 Common shares issued under stock plans 1 18 18 Stock-based compensation expense 165 165 Settlement of liability-classified restricted common shares 3 3 Net income 198 198 Other comprehensive loss (38) (38) Repurchase and retirement of common shares (1) (1) (62) (118) (180) Balances, October 31, 2022 216 $ 3,213 $ (207) $ (2,100) $ 906 ________________ (1) During the three and nine months ended October 31, 2022, Autodesk repurchased 893 thousand and 4,368 thousand shares at an average repurchase price of $201.33 and $199.83 per share, respectively. At October 31, 2022, 4 million shares remained available for repurchase under the September 2016 repurchase program approved by the Board of Directors. In November 2022, the Board of Directors authorized the repurchase of $5 billion of the Company's common stock, in addition to the shares remaining under previously announced share repurchase programs. Changes in stockholders' equity by component, net of tax, as of October 31, 2021, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2021 220 $ 2,579 $ (126) $ (1,488) $ 965 Common shares issued under stock plans 1 9 9 Stock-based compensation expense 114 114 Shares issued related to business combination 3 3 Net income 156 156 Other comprehensive income 24 24 Repurchase and retirement of common shares (1) (1) (66) (77) (143) Balances, April 30, 2021 220 2,639 (102) (1,409) 1,128 Common shares issued under stock plans (6) (6) Stock-based compensation expense 148 148 Net income 115 115 Other comprehensive loss (11) (11) Repurchase and retirement of common shares (1) (1) (45) (46) Balances, July 31, 2021 220 2,780 (113) (1,339) 1,328 Common shares issued under stock plans 1 (51) (51) Stock-based compensation expense 140 140 Settlement of liability-classified restricted common shares 3 3 Net income 137 137 Other comprehensive income 11 11 Repurchase and retirement of common shares (1) (1) (51) (237) (288) Balances, October 31, 2021 220 $ 2,821 $ (102) $ (1,439) $ 1,280 ________________ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2022: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2022 $ 24 $ 18 $ (16) $ (150) $ (124) Other comprehensive income (loss) before reclassifications 131 3 (1) (186) (53) Pre-tax (gains) losses reclassified from accumulated other comprehensive loss (15) — 1 — (14) Tax effects (17) — — 1 (16) Net current period other comprehensive income (loss) 99 3 — (185) (83) Balances, October 31, 2022 $ 123 $ 21 $ (16) $ (335) $ (207) Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2021: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24) $ 6 $ (21) $ (87) $ (126) Other comprehensive income (loss) before reclassifications 31 7 — (21) 17 Pre-tax losses reclassified from accumulated other comprehensive loss 15 — — — 15 Tax effects (7) — — (1) (8) Net current period other comprehensive income (loss) 39 7 — (22) 24 Balances, October 31, 2021 $ 15 $ 13 $ (21) $ (109) $ (102) Reclassifications related to gains and losses on available-for-sale debt securities are included in “Interest and other expense, net.” Refer to Note 5, “Financial Instruments,” for the amount and location of reclassifications related to derivative instruments. Reclassifications of the defined benefit pension components of net periodic benefit cost are included in “Interest and other expense, net.” |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed using the weighted average number of shares of common stock outstanding for the period. Diluted net income per share is computed using the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of restricted stock units, performance share awards, and stock options using the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income per share amounts: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Numerator: Net income $ 198 $ 137 $ 530 $ 408 Denominator: Denominator for basic net income per share—weighted average shares 216 220 217 220 Effect of dilutive securities 1 2 1 2 Denominator for dilutive net income per share 217 222 218 222 Basic net income per share $ 0.92 $ 0.62 $ 2.44 $ 1.85 Diluted net income per share $ 0.91 $ 0.62 $ 2.43 $ 1.84 The computation of diluted net income per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average market value of Autodesk’s stock during the periods. For the three and nine months ended October 31, 2022, there were 921 thousand and 1,052 thousand anti-dilutive shares excluded from the computation of diluted net income per share, respectively. For the three and nine months ended October 31, 2021, there were 27 thousand and 148 thousand anti-dilutive shares excluded from the computation of diluted net income per share, respectively. |
Segments
Segments | 9 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | Segments Autodesk operates in one operating segment and accordingly, all required financial segment information is included in the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. Autodesk reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions, allocating resources, and assessing performance as the source of the Company’s reportable segments. The Company’s CODM allocates resources and assesses the operating performance of the Company as a whole. Information regarding Autodesk’s long-lived assets by geographic area is as follows: October 31, 2022 January 31, 2022 Long-lived assets (1): Americas U.S. $ 283 $ 323 Other Americas 14 20 Total Americas 297 343 Europe, Middle East, and Africa 73 92 Asia Pacific 50 32 Total long-lived assets $ 420 $ 467 ____________________ |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of October 31, 2022, and for the three and nine months ended October 31, 2022 and 2021, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the results of operations for the three and nine months ended October 31, 2022, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2023, or for any other period. Further, the balance sheet as of January 31, 2022, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2022. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2022, filed on March 14, 2022. |
Recently Issued Accounting Standards and Standards not yet Adopted | With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) or adopted by the Company during the nine months ended October 31, 2022, that are applicable to the Company. Accounting Standards Adopted In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Autodesk will apply the expedients in ASU No. 2020-04 through December 31, 2022. Autodesk does not believe ASU No. 2020-04 will have a material impact on its consolidated financial statements. Recently issued accounting standards not yet adopted In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. ASU 2022-03 prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. ASU 2022-03 is effective for Autodesk's fiscal year beginning February 1, 2024 and interim periods within that fiscal year, with early adoption permitted. Autodesk does not believe ASU No. 2022-03 will have a material impact on its consolidated financial statements. |
Revenue Recognition | Revenue DisaggregationAutodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effect of the change on the Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2021, was as follows: Three Months Ended October 31, 2021 Nine Months Ended October 31, 2021 As Reported Effect of Change in Presentation As Adjusted As Reported Effect of Change in Presentation As Adjusted Net revenue: Subscription $ 1,070 $ (27) $ 1,043 $ 3,035 $ (68) $ 2,967 Other 38 27 65 86 68 154 Total net revenue 1,126 — 1,126 3,175 — 3,175 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net revenue by product family: Architecture, Engineering and Construction (1) $ 575 $ 507 $ 1,676 $ 1,429 AutoCAD and AutoCAD LT (1) 354 323 1,025 912 Manufacturing 254 225 721 630 Media and Entertainment 78 63 217 177 Other 19 8 48 27 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by geographic area: Americas U.S. $ 447 $ 383 $ 1,269 $ 1,055 Other Americas 94 79 271 221 Total Americas 541 462 1,540 1,276 Europe, Middle East and Africa 476 433 1,398 1,226 Asia Pacific 263 231 749 673 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by sales channel: Indirect $ 827 $ 730 $ 2,412 $ 2,093 Direct 453 396 1,275 1,082 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 Net revenue by product type (2): Design $ 1,087 $ 967 $ 3,155 $ 2,756 Make 117 94 333 265 Other 76 65 199 154 Total net revenue $ 1,280 $ 1,126 $ 3,687 $ 3,175 ___________________ (1) During the nine months ended October 31, 2022, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The three months ended April 30, 2022, included within the nine months ended October 31, 2022, and both the three and nine months ended October 31, 2021, have been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue. (2) The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Basis of Presentation” for further detail. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of Cost and Fair Value of Financial Instruments Disclosure | The following tables summarize the Company's financial instruments by significant investment category as of October 31, 2022, and January 31, 2022: October 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 515 $ — $ — $ 515 Commercial paper 299 — — 299 Certificates of deposit 21 — — 21 Agency discount notes 7 — — 7 Other (2) 5 — — 5 Marketable securities: Short-term Commercial paper 87 — — 87 Corporate debt securities 35 — — 35 Asset-backed securities 7 — — 7 Other (3) 8 2 — 10 Long-term Corporate debt securities 27 — (1) 26 Asset-backed securities 6 — — 6 Other (4) 5 — — 5 Mutual funds (5) (6) 81 4 (3) 82 Convertible debt securities (6) 3 — — 3 Total $ 1,106 $ 6 $ (4) $ 1,108 ___________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of municipal bonds and custody cash deposits. (3) Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations. (4) Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper 55 — — 55 U.S government securities 25 — — 25 Custody cash deposit 18 — — 18 Corporate debt securities 18 — — 18 Certificates of deposit 6 — — 6 Other (2) 4 — — 4 Marketable securities: Short-term Commercial paper 103 — — 103 Corporate debt securities 61 — — 61 Asset-backed securities 26 — — 26 Certificate of deposit 14 — — 14 U.S. government securities 13 — — 13 Municipal bonds 11 — — 11 Common Stock — 4 — 4 Other (3) 4 — — 4 Long-term Corporate debt securities 44 — — 44 Other (4) 1 — — 1 Mutual funds (5) (6) 74 16 (1) 89 Total $ 779 $ 20 $ (1) $ 798 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset-backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of October 31, 2022, and January 31, 2022: October 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 515 $ — $ — $ 515 Commercial paper — 299 — 299 Certificates of deposit — 21 — 21 Agency discount notes — 7 — 7 Other (2) 2 3 — 5 Marketable securities: Short-term Commercial paper — 87 — 87 Corporate debt securities — 35 — 35 Asset-backed securities — 7 — 7 Other (3) 2 8 — 10 Long-term Corporate debt securities — 26 — 26 Asset-backed securities — 6 — 6 Other (4) — 5 — 5 Long-term other assets: Mutual funds (5)(6) 82 — — 82 Convertible debt securities (6) — — 3 3 Derivative assets: Derivative contract assets (6) — 72 — 72 Strategic investments derivative assets (6) — — 2 2 Derivative liabilities: Derivative contract liabilities (7) — (15) — (15) Total $ 601 $ 561 $ 5 $ 1,167 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of municipal bonds and custody cash deposits. (3) Consists of U.S. government securities, common stock, certificates of deposit, agency mortgage-backed securities, mortgage-backed securities, and agency collateralized mortgage obligations. (4) Consists of U.S. government securities, agency mortgage-backed securities, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper — 55 — 55 U.S government securities — 25 — 25 Custody cash deposit 18 — — 18 Corporate debt securities — 18 — 18 Certificates of deposit — 6 — 6 Other (2) — 4 — 4 Marketable securities: Short-term Commercial paper — 103 — 103 Corporate debt securities — 61 — 61 Asset backed securities — 26 — 26 Certificate of deposit — 14 — 14 U.S. government securities — 13 — 13 Municipal bonds — 11 — 11 Common Stock 4 — — 4 Other (3) — 4 — 4 Long-term Corporate debt securities — 44 — 44 Other (4) — 1 — 1 Long-term other assets: Mutual funds (5) (6) 89 — — 89 Derivative assets: Derivative contract assets (6) — 18 — 18 Derivative liabilities: Derivative contract liabilities (7) — (11) — (11) Total $ 413 $ 392 $ — $ 805 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset backed securities. (5) See Note 12, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. |
Schedule of Investments Classified by Contractual Maturity Date | The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of October 31, 2022: Fair Value Due within 1 year $ 113 Due in 1 year through 5 years 55 Due in 5 years through 10 years 2 Due after 10 years 4 Total $ 174 |
Schedule of Marketable Securities | Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Marketable debt securities $ 57 $ — $ 302 $ 4 |
Schedule of Equity Securities Without Readily Determinable Fair Value | Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative are included in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Nine Months Ended October 31, Cumulative Amount as of 2022 2021 October 31, 2022 Upward adjustments $ 6 $ 7 $ 29 Negative adjustments, including impairments (5) (10) (82) Net unrealized adjustments $ 1 $ (3) $ (53) |
Schedule of Available-for-sale Securities Reconciliation | A reconciliation of the change in Autodesk’s Level 3 items for the nine months ended October 31, 2022, is as follows: Fair Value Measurements Using Derivative Contract Convertible Debt Securities Total Balances, January 31, 2022 $ — $ — $ — Purchases 2 3 5 Balances, October 31, 2022 $ 2 $ 3 $ 5 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Summary of Restricted Stock Activity | A summary of restricted stock activity for the nine months ended October 31, 2022, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2022 4,033 $ 251.17 Granted 3,431 198.18 Vested (1,933) 237.73 Canceled/Forfeited (472) 233.32 Performance Adjustment (1) (2) 299.07 Unvested restricted stock units at October 31, 2022 5,057 $ 222.02 _______________ |
Schedule of Summary of the ESPP Activity | A summary of the ESPP activity for the nine months ended October 31, 2022 and 2021, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Issued shares (in thousands) 363 361 740 851 Average price of issued shares $ 158.78 $ 133.00 $ 166.44 $ 130.13 Weighted average grant date fair value of shares granted under the ESPP (1) $ 66.43 $ 83.75 $ 67.77 $ 84.21 _______________ |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2022 and 2021, as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Cost of subscription and maintenance revenue $ 9 $ 5 $ 26 $ 18 Cost of other revenue 3 3 9 7 Marketing and sales 68 60 199 173 Research and development 71 56 199 163 General and administrative 21 20 63 52 Stock-based compensation expense related to stock awards and ESPP purchases 172 144 496 413 Tax (benefit) expense (2) (26) 7 (46) Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 170 $ 118 $ 503 $ 367 |
Schedule of Assumptions to Estimate the Fair Value of Stock-based Awards | Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended October 31, 2022 Three Months Ended October 31, 2021 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities N/A 40.7 - 44.9% N/A 29.5 - 36.6% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% N/A —% Range of risk-free interest rates N/A 3.7 -3.9% N/A 0.1 - 0.2% Nine Months Ended October 31, 2022 Nine Months Ended October 31, 2021 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities 39.4 - 40.7% 38.3 - 44.9% 36.9% 29.5 - 41.8% Range of expected lives (in years) N/A 0.5 - 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 1.2 - 1.6% 0.9 - 3.9% 0.1% 0.1 - 0.2% |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combinations that were completed during the nine months ended October 31, 2022: Aggregated Total (1) Developed technologies $ 8 Customer relationships 4 Goodwill 85 Deferred revenue and long-term deferred revenue (2) Long-term deferred income taxes 1 Net tangible assets 1 Total $ 97 _______________ (1) There were no acquisitions during the three months ended October 31, 2022. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | The following tables summarize the Company's intangible assets, net, as of October 31, 2022, and January 31, 2022: October 31, 2022 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 649 $ (389) $ 260 Developed technologies 854 (702) 152 Trade names and patents 115 (104) 11 Total intangible assets $ 1,618 $ (1,195) $ 423 _______________ (1) Includes the effects of foreign currency translation. January 31, 2022 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 667 $ (375) $ 292 Developed technologies 847 (661) 186 Trade names and patents 116 (100) 16 Total intangible assets $ 1,630 $ (1,136) $ 494 _______________ (1) Includes the effects of foreign currency translation. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the nine months ended October 31, 2022, (in millions): Balance as of January 31, 2022 $ 3,753 Less: accumulated impairment losses as of January 31, 2022 (149) Net balance as of January 31, 2022 3,604 Additions arising from acquisitions during the period 85 Effect of foreign currency translation and measurement period adjustments (1) (112) Balance as of October 31, 2022 $ 3,577 _______________ |
Computer Equipment, Software,_2
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Computer Equipment, Software, Furniture, Leasehold Improvements and the Related Accumulated Depreciation | Computer equipment, software, leasehold improvements, and furniture and equipment and the related accumulated depreciation were as follows: October 31, 2022 January 31, 2022 Computer hardware, at cost $ 124 $ 137 Computer software, at cost 49 55 Leasehold improvements, land and buildings, at cost 356 351 Furniture and equipment, at cost 92 93 621 636 Less: Accumulated depreciation (472) (474) Computer hardware, software, leasehold improvements, and furniture and equipment, net $ 149 $ 162 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Fair Value of Market Price | Based on the quoted market prices, the approximate fair value of the notes as of October 31, 2022, were as follows: Aggregate Principal Amount Fair value 2012 Notes $ 350 $ 350 2015 Notes 300 295 2017 Notes 500 460 2020 Notes 500 418 2021 Notes 1,000 778 |
Future Minimum Payments For Borrowings | The expected future principal payments for all borrowings as of October 31, 2022, were as follows (in millions): Fiscal year ending 2023 (remainder) $ 350 2024 — 2025 — 2026 300 2027 — Thereafter 2,000 Total principal outstanding $ 2,650 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Lease Cost and Cash Flow Information | The components of lease cost were as follows: Three Months Ended October 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ 1 $ 9 $ 7 $ 2 $ 21 Variable lease cost — — 2 1 1 4 Nine Months Ended October 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 6 $ 3 $ 28 $ 21 $ 8 $ 66 Variable lease cost 1 — 5 4 2 12 Three Months Ended October 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ 1 $ 11 $ 7 $ 4 $ 25 Variable lease cost 1 — 3 2 1 7 Nine Months Ended October 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 6 $ 2 $ 33 $ 23 $ 11 $ 75 Variable lease cost 2 — 7 5 3 17 Supplemental operating cash flow information related to leases is as follows: Nine Months Ended October 31, 2022 2021 Cash paid for operating leases included in operating cash flows (1) $ 84 $ 84 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 49 12 _______________ (1) Includes $12 million and $17 million in variable lease payments for the nine months ended October 31, 2022 and 2021, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. |
Future Minimum Lease Payments | Maturities of operating lease liabilities were as follows: Fiscal year ending 2023 (remainder) $ 24 2024 96 2025 78 2026 63 2027 43 Thereafter 135 439 Less imputed interest 34 Present value of operating lease liabilities $ 405 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments in Autodesk’s Condensed Consolidated Balance Sheets | The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of October 31, 2022, and January 31, 2022: Balance Sheet Location Fair Value at October 31, 2022 January 31, 2022 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 66 $ 12 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 8 6 Total derivative assets $ 74 $ 18 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 11 $ 7 Derivatives not designated as hedging instruments Other accrued liabilities 4 4 Total derivative liabilities $ 15 $ 11 |
Schedule of Derivatives Designated as Hedging Instruments on Autodesk’s Condensed Consolidated Statements of Operations | The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2022 and 2021 (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 26 $ 14 $ 99 $ 24 Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 19 $ (3) $ 36 $ (13) Cost of revenue (1) — (3) — Operating expenses (8) (2) (18) (2) Total $ 10 $ (5) $ 15 $ (15) The amount and location of gain recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2022 and 2021, (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Interest and other expense, net $ 4 $ 6 $ 34 $ 11 |
Schedule of Location and Amount of Gain or (Loss) Recognized | The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three and nine months ended October 31, 2022 and 2021: Three Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,188 $ 16 $ 86 $ 454 $ 311 $ 129 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 19 $ — $ (1) $ (4) $ (2) $ (2) Nine Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,437 $ 51 $ 253 $ 1,306 $ 906 $ 377 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 36 $ — $ (3) $ (9) $ (4) $ (5) Three Months Ended October 31, 2021 Net Revenue Cost of revenue Operating expenses Subscription Revenue (1) Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,043 $ 18 $ 75 $ 419 $ 282 $ 113 Loss on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of loss reclassified from accumulated other comprehensive income into income $ (3) $ — $ — $ (1) $ — $ (1) Nine Months Ended October 31, 2021 Net revenue Cost of revenue Operating expenses Subscription revenue (1) Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 2,967 $ 54 $ 219 $ 1,195 $ 825 $ 344 (Loss) gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (12) $ (1) $ — $ — $ (1) $ (1) ____________________ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit by Component, Net of Tax | Changes in stockholders' equity by component, net of tax, as of October 31, 2022, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2022 218 $ 2,923 $ (124) $ (1,950) $ 849 Common shares issued under stock plans 1 (10) (10) Stock-based compensation expense 146 146 Shares issued related to business combination 10 10 Net income 146 146 Other comprehensive loss (24) (24) Repurchase and retirement of common shares (1) (2) (97) (339) (436) Balances, April 30, 2022 217 2,972 (148) (2,143) 681 Common shares issued under stock plans (17) (17) Stock-based compensation expense 163 163 Settlement of liability-classified restricted common shares 5 5 Net income 186 186 Other comprehensive loss (21) (21) Repurchase and retirement of common shares (1) (1) (34) (223) (257) Balances, July 31, 2022 216 3,089 (169) (2,180) 740 Common shares issued under stock plans 1 18 18 Stock-based compensation expense 165 165 Settlement of liability-classified restricted common shares 3 3 Net income 198 198 Other comprehensive loss (38) (38) Repurchase and retirement of common shares (1) (1) (62) (118) (180) Balances, October 31, 2022 216 $ 3,213 $ (207) $ (2,100) $ 906 ________________ (1) During the three and nine months ended October 31, 2022, Autodesk repurchased 893 thousand and 4,368 thousand shares at an average repurchase price of $201.33 and $199.83 per share, respectively. At October 31, 2022, 4 million shares remained available for repurchase under the September 2016 repurchase program approved by the Board of Directors. In November 2022, the Board of Directors authorized the repurchase of $5 billion of the Company's common stock, in addition to the shares remaining under previously announced share repurchase programs. Changes in stockholders' equity by component, net of tax, as of October 31, 2021, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2021 220 $ 2,579 $ (126) $ (1,488) $ 965 Common shares issued under stock plans 1 9 9 Stock-based compensation expense 114 114 Shares issued related to business combination 3 3 Net income 156 156 Other comprehensive income 24 24 Repurchase and retirement of common shares (1) (1) (66) (77) (143) Balances, April 30, 2021 220 2,639 (102) (1,409) 1,128 Common shares issued under stock plans (6) (6) Stock-based compensation expense 148 148 Net income 115 115 Other comprehensive loss (11) (11) Repurchase and retirement of common shares (1) (1) (45) (46) Balances, July 31, 2021 220 2,780 (113) (1,339) 1,328 Common shares issued under stock plans 1 (51) (51) Stock-based compensation expense 140 140 Settlement of liability-classified restricted common shares 3 3 Net income 137 137 Other comprehensive income 11 11 Repurchase and retirement of common shares (1) (1) (51) (237) (288) Balances, October 31, 2021 220 $ 2,821 $ (102) $ (1,439) $ 1,280 ________________ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Taxes | Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2022: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2022 $ 24 $ 18 $ (16) $ (150) $ (124) Other comprehensive income (loss) before reclassifications 131 3 (1) (186) (53) Pre-tax (gains) losses reclassified from accumulated other comprehensive loss (15) — 1 — (14) Tax effects (17) — — 1 (16) Net current period other comprehensive income (loss) 99 3 — (185) (83) Balances, October 31, 2022 $ 123 $ 21 $ (16) $ (335) $ (207) Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2021: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24) $ 6 $ (21) $ (87) $ (126) Other comprehensive income (loss) before reclassifications 31 7 — (21) 17 Pre-tax losses reclassified from accumulated other comprehensive loss 15 — — — 15 Tax effects (7) — — (1) (8) Net current period other comprehensive income (loss) 39 7 — (22) 24 Balances, October 31, 2021 $ 15 $ 13 $ (21) $ (109) $ (102) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Net Loss Per Share | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income per share amounts: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Numerator: Net income $ 198 $ 137 $ 530 $ 408 Denominator: Denominator for basic net income per share—weighted average shares 216 220 217 220 Effect of dilutive securities 1 2 1 2 Denominator for dilutive net income per share 217 222 218 222 Basic net income per share $ 0.92 $ 0.62 $ 2.44 $ 1.85 Diluted net income per share $ 0.91 $ 0.62 $ 2.43 $ 1.84 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | Information regarding Autodesk’s long-lived assets by geographic area is as follows: October 31, 2022 January 31, 2022 Long-lived assets (1): Americas U.S. $ 283 $ 323 Other Americas 14 20 Total Americas 297 343 Europe, Middle East, and Africa 73 92 Asia Pacific 50 32 Total long-lived assets $ 420 $ 467 ____________________ |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | $ 1,280 | $ 1,126 | $ 3,687 | $ 3,175 |
Subscription | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | 1,188 | 1,043 | 3,437 | 2,967 |
Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | $ 76 | 65 | $ 199 | 154 |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | 1,126 | 3,175 | ||
Previously Reported | Subscription | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | 1,070 | 3,035 | ||
Previously Reported | Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | 38 | 86 | ||
Effect of Change in Presentation | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | 0 | 0 | ||
Effect of Change in Presentation | Subscription | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | (27) | (68) | ||
Effect of Change in Presentation | Other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total net revenue | $ 27 | $ 68 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) category | Oct. 31, 2021 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Number of revenue categories | category | 3 | |||
Contract with customer, liability, revenue recognized | $ 642 | $ 569 | $ 2,460 | $ 2,130 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | Period One | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 4,680 | $ 4,680 | ||
Performance obligation, expected timing of satisfaction | 3 years | 3 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | Period Two | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 3,140 | $ 3,140 | ||
Performance obligation, expected timing of satisfaction | 12 months | 12 months | ||
Remaining performance obligation percentage | 67% | 67% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 1,540 | $ 1,540 | ||
Performance obligation, expected timing of satisfaction | ||||
Remaining performance obligation percentage | 33% | 33% | ||
Minimum | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Subscription payment terms | 30 days | |||
EBA payment terms | 30 days | |||
Maximum | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Subscription payment terms | 45 days | |||
EBA payment terms | 60 days |
Revenue Recognition - Contract
Revenue Recognition - Contract Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,280 | $ 1,126 | $ 3,687 | $ 3,175 |
Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 1,087 | 967 | 3,155 | 2,756 |
Make | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 117 | 94 | 333 | 265 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 76 | 65 | 199 | 154 |
Indirect | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 827 | 730 | 2,412 | 2,093 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 453 | 396 | 1,275 | 1,082 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 541 | 462 | 1,540 | 1,276 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 447 | 383 | 1,269 | 1,055 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 94 | 79 | 271 | 221 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 476 | 433 | 1,398 | 1,226 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 263 | 231 | 749 | 673 |
Architecture, Engineering and Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 575 | 507 | 1,676 | 1,429 |
AutoCAD and AutoCAD LT | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 354 | 323 | 1,025 | 912 |
Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 254 | 225 | 721 | 630 |
Media and Entertainment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | 78 | 63 | 217 | 177 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 19 | $ 8 | $ 48 | $ 27 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Sep. 30, 2021 | |
Tech Data | Net Revenue | Customer Concentration Risk | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk (in percentage) | 37% | 37% | 37% | 36% | |||
Tech Data | Accounts Receivable | Customer Concentration Risk | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk (in percentage) | 24% | 24% | |||||
Ingram Micro | Net Revenue | Customer Concentration Risk | |||||||
Concentration Risk [Line Items] | |||||||
Concentration risk (in percentage) | 9% | 9% | 9% | 9% | |||
Revolving Credit Facility | The Credit Agreement | |||||||
Concentration Risk [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 |
Financial Instruments - Cost an
Financial Instruments - Cost and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Debt Securities, Trading and Available-for-sale [Abstract] | ||
Amortized Cost | $ 1,106 | $ 779 |
Gross unrealized gains | 6 | 20 |
Gross unrealized losses | (4) | (1) |
Fair value | 1,108 | 798 |
Money market funds | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 515 | 302 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 515 | 302 |
Commercial paper | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 299 | 55 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 299 | 55 |
Commercial paper | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 87 | 103 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 87 | 103 |
Certificates of deposit | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 21 | 6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 21 | 6 |
Certificates of deposit | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 14 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 14 | |
Agency discount notes | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 7 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 7 | |
Other | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 5 | 4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 5 | 4 |
Other | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 8 | 4 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 10 | 4 |
Other | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 5 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 5 | 1 |
U.S. government securities | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 25 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 25 | |
U.S. government securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 13 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 13 | |
Custody cash deposit | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 18 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 18 | |
Corporate debt securities | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 18 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 18 | |
Corporate debt securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 35 | 61 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 35 | 61 |
Corporate debt securities | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 27 | 44 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Convertible debt securities (6) | 26 | 44 |
Asset-backed securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 7 | 26 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Convertible debt securities (6) | 7 | 26 |
Asset-backed securities | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 6 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 6 | |
Municipal bonds | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 11 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 11 | |
Common stock | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 0 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 4 | |
Mutual funds | ||
Debt Securities, Trading and Available-for-sale [Abstract] | ||
Amortized Cost | 81 | 74 |
Gross Unrealized Gains | 4 | 16 |
Gross Unrealized Losses | (3) | (1) |
Fair Value | 82 | $ 89 |
Convertible debt securities | ||
Marketable securities: | ||
Amortized Cost | 3 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Convertible debt securities (6) | 3 | |
Debt Securities, Trading and Available-for-sale [Abstract] | ||
Fair Value | $ 3 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Investments Classified by Contractual Maturity Date (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Investments, All Other Investments [Abstract] | |
Due within 1 year | $ 113 |
Due in 1 year through 5 years | 55 |
Due in 5 years through 10 years | 2 |
Due after 10 years | 4 |
Total | $ 174 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Investments, All Other Investments [Abstract] | |||||
Securities in continuous unrealized loss position for greater than twelve months | $ 0 | $ 0 | $ 0 | ||
Allowance for credit loss | 0 | 0 | 0 | ||
Securities, writeoff | 0 | $ 0 | |||
Available-for-sale securities gross gains (losses) | 0 | 0 | |||
Direct investments in privately held companies | 181,000,000 | 181,000,000 | $ 134,000,000 | ||
Equity method investment, realized gains on disposal | $ 0 | $ 0 | $ 1,000,000 | $ 8,000,000 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of marketable securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Investments, All Other Investments [Abstract] | ||||
Marketable debt securities | $ 57 | $ 0 | $ 302 | $ 4 |
Financial Instruments - Non-Mar
Financial Instruments - Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | ||
Upward adjustments | $ 6 | $ 7 |
Negative adjustments, including impairments | (5) | (10) |
Net unrealized adjustments | 1 | $ (3) |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount [Abstract] | ||
Upward adjustments | 29 | |
Negative adjustments, including impairments | (82) | |
Net unrealized adjustments | $ (53) |
Financial Instruments - Measure
Financial Instruments - Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Short-term | ||
Derivative contract assets, fair value | $ 2 | |
Total | 1,167 | $ 805 |
Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 72 | 18 |
Derivative contract liabilities | (15) | (11) |
Money market funds | ||
Cash equivalents | ||
Cash equivalents | 515 | 302 |
Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 299 | 55 |
Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 87 | 103 |
U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 25 | |
U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 13 | |
Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 35 | 61 |
Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 26 | 44 |
Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 21 | 6 |
Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 14 | |
Agency discount notes | ||
Cash equivalents | ||
Cash equivalents | 7 | |
Asset-backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 7 | 26 |
Asset-backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 6 | |
Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 11 | |
Common stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 4 | |
Other | ||
Cash equivalents | ||
Cash equivalents | 5 | 4 |
Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 10 | 4 |
Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 5 | 1 |
Mutual funds | ||
Short-term | ||
Mutual funds | 82 | 89 |
Convertible debt securities | ||
Short-term | ||
Debt securities, fair value | 3 | |
Mutual funds | 3 | |
Level 1 | ||
Short-term | ||
Derivative contract assets, fair value | 0 | |
Total | 601 | 413 |
Level 1 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Level 1 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 515 | 302 |
Level 1 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 1 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 1 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Level 1 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 1 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 1 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Agency discount notes | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 1 | Asset-backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Asset-backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Common stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 4 | |
Level 1 | Other | ||
Cash equivalents | ||
Cash equivalents | 2 | 0 |
Level 1 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 2 | 0 |
Level 1 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Mutual funds | ||
Short-term | ||
Mutual funds | 82 | 89 |
Level 1 | Convertible debt securities | ||
Short-term | ||
Mutual funds | 0 | |
Level 2 | ||
Short-term | ||
Derivative contract assets, fair value | 0 | |
Total | 561 | 392 |
Level 2 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 72 | 18 |
Derivative contract liabilities | (15) | (11) |
Level 2 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 299 | 55 |
Level 2 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 87 | 103 |
Level 2 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 25 | |
Level 2 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 13 | |
Level 2 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 2 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Level 2 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 35 | 61 |
Level 2 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 26 | 44 |
Level 2 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 21 | 6 |
Level 2 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 14 | |
Level 2 | Agency discount notes | ||
Cash equivalents | ||
Cash equivalents | 7 | |
Level 2 | Asset-backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 7 | 26 |
Level 2 | Asset-backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 6 | |
Level 2 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 11 | |
Level 2 | Common stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 2 | Other | ||
Cash equivalents | ||
Cash equivalents | 3 | 4 |
Level 2 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 8 | 4 |
Level 2 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 5 | 1 |
Level 2 | Mutual funds | ||
Short-term | ||
Mutual funds | 0 | 0 |
Level 2 | Convertible debt securities | ||
Short-term | ||
Mutual funds | 0 | |
Level 3 | ||
Short-term | ||
Derivative contract assets, fair value | 2 | |
Total | 5 | 0 |
Level 3 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Level 3 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Agency discount notes | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | Asset-backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Asset-backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Common stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Other | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Mutual funds | ||
Short-term | ||
Mutual funds | 0 | $ 0 |
Level 3 | Convertible debt securities | ||
Short-term | ||
Mutual funds | $ 3 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of the Change in Level 3 Items (Details) - Level 3 $ in Millions | 9 Months Ended |
Oct. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | $ 0 |
Purchases | 5 |
Balances, October 31, 2022 | 5 |
Derivative Contract | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | 0 |
Purchases | 2 |
Balances, October 31, 2022 | 2 |
Convertible Debt Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | 0 |
Purchases | 3 |
Balances, October 31, 2022 | $ 3 |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 31, 2022 USD ($) shares | Jul. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) period tradingDay shares | Oct. 31, 2021 USD ($) | Jan. 31, 2022 USD ($) tradingDay shares | Jan. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Liability classified awards, settled | $ 3 | $ 5 | $ 3 | $ 8 | $ 3 | ||
Market capitalization | $ 2,000 | ||||||
Consecutive trading days | tradingDay | 90 | 90 | |||||
Fair value of common stock issued related to business combinations | $ 10 | 3 | |||||
Share-based compensation expense | $ 172 | 144 | $ 496 | 413 | |||
Share-based compensation arrangement by share-based payment award, plan modification, description and terms | 24 months | ||||||
Share-based compensation arrangement by share-based payment award, plan modification | $ 21 | ||||||
Expected dividend yield (in percentage) | 0% | ||||||
Upchain | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized related to acquisition | $ 13 | ||||||
Shares issued in period (in shares) | shares | 24,000 | ||||||
Value of shares issued | $ 5 | ||||||
Shares available for grant (in shares) | shares | 39,000 | 39,000 | |||||
Fiscal 2021 Acquisition | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized related to acquisition | $ 5 | $ 5 | |||||
Other Fiscal 2022 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized related to acquisition | $ 11 | ||||||
Shares available for grant (in shares) | shares | 53,000 | 53,000 | |||||
Fiscal 2023 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 5 | ||||||
Number of shares authorized related to acquisition | $ 5 | $ 5 | |||||
Shares available for grant (in shares) | shares | 23,000 | 23,000 | |||||
Fair value of common stock issued related to business combinations | $ 10 | ||||||
Share-based compensation expense | $ 2 | ||||||
Share-based Compensation Award, Tranche One | Fiscal 2023 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting percentage (in percentage) | 40% | ||||||
Share-based Compensation Award, Tranche Two | Fiscal 2023 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting percentage (in percentage) | 60% | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards granted in period (in shares) | shares | 3,077,000 | ||||||
Share based compensation expense | $ 130 | 110 | $ 383 | 315 | |||
Restricted Stock Units (RSUs) and Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vested in period, fair value | $ 402 | 517 | |||||
Awards granted in period (in shares) | shares | 3,431,000 | ||||||
Performance Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Awards granted in period (in shares) | shares | 239,000 | ||||||
Share based compensation expense | 13 | 18 | $ 42 | $ 50 | |||
Expected dividend yield (in percentage) | 0% | 0% | |||||
Performance Stock Units | Certain Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards granted in period (in shares) | shares | 115,000 | ||||||
Performance Stock Units | Share-based Compensation Award, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||
Performance Stock Units | Share-based Compensation Award, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||
Performance Stock Units | Share-based Compensation Award, Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||
Common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in period (in shares) | shares | 12,644 | 8,300 | |||||
Value of shares issued | $ 3 | $ 3 | |||||
Share-based compensation expense | $ 10 | $ 5 | $ 27 | $ 12 | |||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Restricted Stock | Spacemaker | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Shares issued in period (in shares) | shares | 73,632 | ||||||
Restricted Stock | Innovyze, Inc. | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in period (in shares) | shares | 9,277 | ||||||
Restricted Stock | Other Fiscal 2022 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in period (in shares) | shares | 12,782 | ||||||
Restricted Stock | Fiscal 2023 Acquisitions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Shares issued in period (in shares) | shares | 40,289 | ||||||
2022 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares of common stock reserved for issuance (in shares) | shares | 23,000,000 | 23,000,000 | |||||
Shares granted to shares issued (in shares) | shares | 2.08 | ||||||
Shares available for future issuance (in shares) | shares | 22,000,000 | 22,000,000 | |||||
2022 Equity Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
2022 Equity Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
2022 Equity Incentive Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grants in period, net of forfeitures (in shares) | shares | 893,000 | ||||||
1998 Employee Qualified Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of compensation that eligible employees can use to purchase common stock, maximum | 15% | ||||||
Percentage of fair market value eligible employees can purchase common stock, minimum | 85% | ||||||
Number of exercise period | period | 4 | ||||||
Term of exercise period | 6 months | ||||||
Term of offering period | 24 months |
Equity Compensation - Summary o
Equity Compensation - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details) shares in Thousands | 9 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Restricted Stock Units (RSUs) and Performance Shares | |
Unvested restricted stock units | |
Unvested restricted stock units, beginning balance (in shares) | 4,033 |
Granted (in shares) | 3,431 |
Vested (in shares) | (1,933) |
Canceled/Forfeited (in shares) | (472) |
Unvested restricted stock units, ending balance (in shares) | 5,057 |
Weighted average grant date fair value per share | |
Unvested restricted stock units, beginning balance (in usd per share) | $ / shares | $ 251.17 |
Granted (in usd per share) | $ / shares | 198.18 |
Vested (in usd per share) | $ / shares | 237.73 |
Canceled/Forfeited (in usd per share) | $ / shares | 233.32 |
Unvested restricted stock units, ending balance (in usd per share) | $ / shares | $ 222.02 |
Performance Stock Units | |
Unvested restricted stock units | |
Granted (in shares) | 239 |
Performance Adjustment (in shares) | (2) |
Weighted average grant date fair value per share | |
Performance Adjustment (in usd per share) | $ / shares | $ 299.07 |
Performance Stock Units | Minimum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 87% |
Performance Stock Units | Maximum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 113% |
Equity Compensation - Summary_2
Equity Compensation - Summary of ESPP Activity (Details) - ESPP - 1998 Employee Qualified Stock Purchase Plan - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issued shares (in shares) | 363 | 361 | 740 | 851 |
Average price of issued shares (in usd per share) | $ 158.78 | $ 133 | $ 166.44 | $ 130.13 |
Weighted average grant date fair value of shares granted under the ESPP (in usd per share) | $ 66.43 | $ 83.75 | $ 67.77 | $ 84.21 |
Equity Compensation - Stock Bas
Equity Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 172 | $ 144 | $ 496 | $ 413 |
Tax (benefit) expense | (2) | (26) | 7 | (46) |
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax | 170 | 118 | 503 | 367 |
Cost of other revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 3 | 3 | 9 | 7 |
Marketing and sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 68 | 60 | 199 | 173 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 71 | 56 | 199 | 163 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 21 | 20 | 63 | 52 |
Subscription and Maintenance | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 9 | $ 5 | $ 26 | $ 18 |
Equity Compensation - Assumptio
Equity Compensation - Assumption Used to Estimate the Fair Value of Stock-Based Awards (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividends | 0% | |||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected volatilities, minimum (in percentage) | 39.40% | |||
Range of expected volatilities, maximum (in percentage) | 40.70% | |||
Range of expected volatilities | 36.90% | |||
Expected dividends | 0% | 0% | ||
Range of risk-free interest rates, minimum (in percentage) | 1.20% | |||
Range of risk-free interest rates, maximum (in percentage) | 1.60% | |||
Range of risk-free interest rates | 0.10% | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividends | 0% | 0% | 0% | 0% |
ESPP | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected volatilities | 40.70% | 29.50% | 38.30% | 29.50% |
Range of expected lives (in years) | 6 months | 6 months | 6 months | 6 months |
Range of risk-free interest rates | 3.70% | 0.10% | 0.90% | 0.10% |
ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected volatilities | 44.90% | 36.60% | 44.90% | 41.80% |
Range of expected lives (in years) | 2 years | 2 years | 2 years | 2 years |
Range of risk-free interest rates | 3.90% | 0.20% | 3.90% | 0.20% |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income tax expense (benefit) | $ 44 | $ 51 | $ 139 | $ 50 |
(Loss) income before income taxes | 242 | $ 188 | 669 | $ 458 |
Unrecognized tax benefits | 213 | 213 | ||
Unrecognized tax benefits that would reduce the valuation allowance if recognized | 35 | 35 | ||
Amount of gross unrecognized tax benefits that would impact the effective tax rate, if recognized | $ 178 | 178 | ||
Decrease in unrecognized tax benefits | $ 8 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 USD ($) acquisition | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) businessCombination tradingDay shares | Oct. 31, 2021 USD ($) | Jan. 31, 2022 tradingDay | |
Business Acquisition [Line Items] | |||||
Number of businesses combinations | acquisition | 0 | ||||
Fair value of common stock issued related to business combinations | $ 10,000,000 | $ 3,000,000 | |||
Share-based compensation expense | $ 172,000,000 | $ 144,000,000 | $ 496,000,000 | $ 413,000,000 | |
Consecutive trading days | tradingDay | 90 | 90 | |||
Fiscal 2023 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Number of businesses combinations | businessCombination | 2 | ||||
Consideration transferred | $ 114,000,000 | ||||
Payments to acquire businesses | 96,000,000 | ||||
Fair value of common stock issued related to business combinations | 10,000,000 | ||||
Business combination, consideration transferred, other | 97,000,000 | ||||
Share based compensation expense, liability-classified awards | 5,000,000 | ||||
Share-based compensation expense | 2,000,000 | ||||
Goodwill deductible for tax purposes | 0 | $ 0 | |||
Fiscal 2023 Acquisitions | Share-based Compensation Award, Tranche One | |||||
Business Acquisition [Line Items] | |||||
Awards vesting percentage (in percentage) | 40% | ||||
Fiscal 2023 Acquisitions | Share-based Compensation Award, Tranche Two | |||||
Business Acquisition [Line Items] | |||||
Awards vesting percentage (in percentage) | 60% | ||||
Fiscal 2023 Acquisitions | Prepaid expenses and other current assets | |||||
Business Acquisition [Line Items] | |||||
Business combination, contingent consideration, liability | $ 10,000,000 | $ 10,000,000 | |||
Fiscal 2023 Acquisitions | Certain Employees of Acquiree | |||||
Business Acquisition [Line Items] | |||||
Fair value of common stock issued related to business combinations | $ 5,000,000 | ||||
Fiscal 2023 Acquisitions | Restricted Stock | |||||
Business Acquisition [Line Items] | |||||
Shares issued in period (in shares) | shares | 40,289 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed by Major Class (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2022 USD ($) acquisition | Oct. 31, 2022 USD ($) businessCombination | Jan. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,577 | $ 3,577 | $ 3,604 |
Number of businesses combinations | acquisition | 0 | ||
Fiscal 2023 Acquisitions | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 85 | 85 | |
Deferred revenue and long-term deferred revenue | (2) | (2) | |
Long-term deferred income taxes | 1 | 1 | |
Net tangible assets | 1 | 1 | |
Total | 97 | $ 97 | |
Number of businesses combinations | businessCombination | 2 | ||
Fiscal 2023 Acquisitions | Developed technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 8 | $ 8 | |
Fiscal 2023 Acquisitions | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 4 | $ 4 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,618 | $ 1,630 |
Accumulated Amortization | (1,195) | (1,136) |
Net | 423 | 494 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 649 | 667 |
Accumulated Amortization | (389) | (375) |
Net | 260 | 292 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 854 | 847 |
Accumulated Amortization | (702) | (661) |
Net | 152 | 186 |
Trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 115 | 116 |
Accumulated Amortization | (104) | (100) |
Net | $ 11 | $ 16 |
Cloud Computing Arrangements (D
Cloud Computing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized software development costs | $ 178 | $ 178 | $ 128 | ||
Amortization | 7 | $ 4 | 16 | $ 7 | |
Cloud-based Software Hosting Arrangements | |||||
Capitalized Contract Cost [Line Items] | |||||
Accumulated amortization | $ 33 | $ 33 | $ 17 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2022 | Jan. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill gross, beginning of the period | $ 3,753 | |
Less: accumulated impairment losses, beginning of the period | $ (149) | |
Goodwill net, beginning of the period | 3,604 | |
Additions arising from acquisitions during the period | 85 | |
Effect of foreign currency translation and measurement period adjustments | (112) | |
Goodwill net, end of the period | $ 3,577 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Costs to obtain a contract | $ 105,000,000 | $ 105,000,000 | $ 139,000,000 | ||
Amortization of costs to obtain a contract | 35,000,000 | $ 30,000,000 | 102,000,000 | $ 84,000,000 | |
Impairment loss | 0 | $ 0 | 0 | $ 0 | |
Rabbi Trust | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Deferred compensation liability | 82,000,000 | 82,000,000 | 89,000,000 | ||
Deferred compensation liability, current | 7,000,000 | 7,000,000 | 7,000,000 | ||
Deferred compensation liability, non-current | $ 75,000,000 | $ 75,000,000 | $ 82,000,000 |
Computer Equipment, Software,_3
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | $ 621 | $ 636 |
Less: Accumulated depreciation | (472) | (474) |
Computer hardware, software, leasehold improvements, and furniture and equipment, net | 149 | 162 |
Computer hardware, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 124 | 137 |
Computer software, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 49 | 55 |
Leasehold improvements, land and buildings, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 356 | 351 |
Furniture and equipment, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | $ 92 | $ 93 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) | 1 Months Ended | 9 Months Ended | |||||
Oct. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jan. 31, 2020 USD ($) | Jun. 30, 2017 USD ($) | Jun. 30, 2015 USD ($) | Dec. 31, 2012 USD ($) | Oct. 31, 2022 USD ($) | |
The Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||||
Line of credit facility, increase limit | $ 2,000,000,000 | ||||||
Debt covenant, interest coverage ratio, minimum | 3.50 | ||||||
Debt covenant, leverage ratio, maximum | 4 | ||||||
Line of credit facility, outstanding borrowings | $ 0 | ||||||
The Credit Agreement | Revolving Credit Facility | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0% | ||||||
The Credit Agreement | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.785% | ||||||
The Credit Agreement | Revolving Credit Facility | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.375% | ||||||
The Credit Agreement | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.375% | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt redemption percentage of principle amount | 101% | ||||||
Senior Notes | 2021 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Stated interest rate | 2.40% | ||||||
Unamortized discount | $ 3,000,000 | ||||||
Debt issuance costs | 9,000,000 | ||||||
Proceeds from debt, net of issuance costs | $ 988,000,000 | ||||||
Senior Notes | 2020 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | 500,000,000 | |||||
Stated interest rate | 2.85% | ||||||
Unamortized discount | $ 1,000,000 | ||||||
Debt issuance costs | 5,000,000 | ||||||
Proceeds from debt, net of issuance costs | 494,000,000 | ||||||
Senior Notes | 2015 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 450,000,000 | ||||||
Senior Notes | 2017 Notes due in 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | ||||||
Stated interest rate | 3.50% | ||||||
Unamortized discount | $ 3,000,000 | ||||||
Debt issuance costs | 5,000,000 | ||||||
Proceeds from debt, net of issuance costs | 492,000,000 | ||||||
Senior Notes | 2017 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 500,000,000 | ||||||
Repayments of debt | $ 400,000,000 | ||||||
Senior Notes | 2015 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 300,000,000 | 300,000,000 | |||||
Stated interest rate | 4.375% | ||||||
Unamortized discount | $ 1,000,000 | ||||||
Debt issuance costs | 3,000,000 | ||||||
Proceeds from debt, net of issuance costs | $ 296,000,000 | ||||||
Senior Notes | 2012 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | |||||
Stated interest rate | 3.60% | ||||||
Debt issuance costs | $ 3,000,000 | ||||||
Proceeds from debt, net of issuance costs | $ 347,000,000 |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value of Market Price (Details) - Senior Notes - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2015 | Dec. 31, 2012 |
2012 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | $ 350,000,000 | $ 350,000,000 | |||
Fair value | 350,000,000 | ||||
2015 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 300,000,000 | $ 300,000,000 | |||
Fair value | 295,000,000 | ||||
2017 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | ||||
Fair value | 460,000,000 | ||||
2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | |||
Fair value | 418,000,000 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 1,000,000,000 | $ 1,000,000,000 | |||
Fair value | $ 778,000,000 |
Borrowing Arrangements - Future
Borrowing Arrangements - Future Minimum Payments For Borrowings (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 (remainder) | $ 350 |
2024 | 0 |
2025 | 0 |
2026 | 300 |
2027 | 0 |
Thereafter | 2,000 |
Total principal outstanding | $ 2,650 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Weighted average remaining lease term | 6 years 6 months | 6 years 6 months | 6 years 10 months 24 days | ||
Weighted average discount rate | 2.59% | 2.59% | 2.46% | ||
Public income remaining lease term | 9 years 6 months | ||||
Sublease income | $ 2,000,000 | $ 3,000,000 | |||
Sublease income payments | 79,000,000 | ||||
Sublease income payments, expect to receive, remaining fiscal 2023 through fiscal 2027 | 32,000,000 | 32,000,000 | |||
Sublease income payments, expect to receive, thereafter | 47,000,000 | 47,000,000 | |||
Facility Closure | |||||
Lessee, Lease, Description [Line Items] | |||||
Asset impairment charges | $ 10,000,000 | $ 0 | $ 17,000,000 | $ 0 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining lease term | 1 year | 1 year | |||
Lease renewal term | 1 year | 1 year | |||
Optional termination period | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining lease term | 67 years | 67 years | |||
Lease renewal term | 10 years | 10 years | |||
Optional termination period | 7 years | 7 years |
Leases - Lease Costs and Cash F
Leases - Lease Costs and Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | $ 21 | $ 25 | $ 66 | $ 75 |
Variable lease cost | 4 | 7 | 12 | 17 |
Cash paid for operating leases included in operating cash flows | 84 | 84 | ||
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets | 49 | 12 | ||
Variable lease payments | 12 | 17 | ||
Cost of subscription and maintenance revenue | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 2 | 2 | 6 | 6 |
Variable lease cost | 0 | 1 | 1 | 2 |
Cost of other revenue | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 1 | 1 | 3 | 2 |
Variable lease cost | 0 | 0 | 0 | 0 |
Marketing and sales | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 9 | 11 | 28 | 33 |
Variable lease cost | 2 | 3 | 5 | 7 |
Research and development | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 7 | 7 | 21 | 23 |
Variable lease cost | 1 | 2 | 4 | 5 |
General and administrative | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 2 | 4 | 8 | 11 |
Variable lease cost | $ 1 | $ 1 | $ 2 | $ 3 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 (remainder) | $ 24 |
2024 | 96 |
2025 | 78 |
2026 | 63 |
2027 | 43 |
Thereafter | 135 |
Total lease payments | 439 |
Less imputed interest | 34 |
Present value of operating lease liabilities | $ 405 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | $ 74 | $ 74 | $ 18 | ||
Total derivative liabilities | 15 | 15 | 11 | ||
Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) | 26 | $ 14 | 99 | $ 24 | |
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 10 | (5) | 15 | (15) | |
Interest and other expense, net | 4 | 6 | 34 | 11 | |
Net revenue | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 19 | (3) | 36 | (13) | |
Cost of revenue | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (1) | 0 | (3) | 0 | |
Operating expenses | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (8) | $ (2) | (18) | $ (2) | |
Prepaid expenses and other current assets | Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | 66 | 66 | 12 | ||
Prepaid expenses and other current assets and long-term other assets | Foreign Exchange Contract | Derivatives not designated as hedging instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | 8 | 8 | 6 | ||
Other accrued liabilities | Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative liabilities | 11 | 11 | 7 | ||
Other accrued liabilities | Foreign Exchange Contract | Derivatives not designated as hedging instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative liabilities | $ 4 | $ 4 | $ 4 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Net gain expected to be recognized in next 24 months | $ 123 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 1,000 | $ 1,080 |
Derivatives not designated as hedging instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 102 | $ 542 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||||
Total net revenue | $ 1,280 | $ 1,126 | $ 3,687 | $ 3,175 |
Selling and Marketing Expense | 454 | 419 | 1,306 | 1,195 |
Research and Development Expense | 311 | 282 | 906 | 825 |
General and Administrative Expense | 129 | 113 | 377 | 344 |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 10 | (5) | 15 | (15) |
Foreign Exchange Contract | Designated as Hedging Instrument | Subscription revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 19 | (3) | 36 | (12) |
Foreign Exchange Contract | Designated as Hedging Instrument | Maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 | (1) |
Foreign Exchange Contract | Designated as Hedging Instrument | Cost of subscription and maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (1) | 0 | (3) | 0 |
Foreign Exchange Contract | Designated as Hedging Instrument | Marketing and sales | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (4) | (1) | (9) | 0 |
Foreign Exchange Contract | Designated as Hedging Instrument | Research and development | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (2) | 0 | (4) | (1) |
Foreign Exchange Contract | Designated as Hedging Instrument | General and administrative | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (2) | (1) | (5) | (1) |
Subscription revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net revenue | 1,188 | 1,043 | 3,437 | 2,967 |
Maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net revenue | 16 | 18 | 51 | 54 |
Cost of subscription and maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Total net revenue | 1,204 | 1,061 | 3,488 | 3,021 |
Cost of goods and services sold | $ 86 | $ 75 | $ 253 | $ 219 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Deficit by Component, Net of Tax (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Nov. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | $ 740,000,000 | $ 681,000,000 | $ 849,000,000 | $ 1,328,000,000 | $ 1,128,000,000 | $ 965,000,000 | $ 849,000,000 | $ 965,000,000 | |
Common shares issued under stock plans | 18,000,000 | (17,000,000) | (10,000,000) | (51,000,000) | (6,000,000) | 9,000,000 | |||
Stock-based compensation expense | 165,000,000 | 163,000,000 | 146,000,000 | 140,000,000 | 148,000,000 | 114,000,000 | |||
Shares issued related to business combination | 10,000,000 | 3,000,000 | |||||||
Settlement of liability-classified restricted common shares | 3,000,000 | 5,000,000 | 3,000,000 | 8,000,000 | 3,000,000 | ||||
Net income | 198,000,000 | 186,000,000 | 146,000,000 | 137,000,000 | 115,000,000 | 156,000,000 | 530,000,000 | 408,000,000 | |
Other comprehensive income (loss) | (38,000,000) | (21,000,000) | (24,000,000) | 11,000,000 | (11,000,000) | 24,000,000 | |||
Repurchase and retirement of common shares | (180,000,000) | (257,000,000) | (436,000,000) | (288,000,000) | (46,000,000) | (143,000,000) | |||
Ending balance | $ 906,000,000 | $ 740,000,000 | $ 681,000,000 | $ 1,280,000,000 | $ 1,328,000,000 | $ 1,128,000,000 | $ 906,000,000 | $ 1,280,000,000 | |
Subsequent Event | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock repurchase authorized amount | $ 5,000,000,000 | ||||||||
Common Stock Repurchase Program | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock repurchased and retired (in shares) | 893 | 980 | 4,368 | 1,659 | |||||
Repurchased shares of its common stock on the open market, average repurchase price per share (in usd per share) | $ 201.33 | $ 292.91 | $ 199.83 | $ 286.95 | |||||
Common stock shares remained available for repurchase under repurchase plans (in shares) | 4,000 | 10,000 | 4,000 | 10,000 | |||||
Common stock and additional paid-in capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance (in shares) | 216,000 | 217,000 | 218,000 | 220,000 | 220,000 | 220,000 | 218,000 | 220,000 | |
Beginning balance | $ 3,089,000,000 | $ 2,972,000,000 | $ 2,923,000,000 | $ 2,780,000,000 | $ 2,639,000,000 | $ 2,579,000,000 | $ 2,923,000,000 | $ 2,579,000,000 | |
Common shares issued under stock plans (in shares) | 1,000 | 1,000 | 1,000 | 1,000 | |||||
Common shares issued under stock plans | $ 18,000,000 | (17,000,000) | $ (10,000,000) | $ (51,000,000) | (6,000,000) | $ 9,000,000 | |||
Stock-based compensation expense | 165,000,000 | 163,000,000 | 146,000,000 | 140,000,000 | $ 148,000,000 | 114,000,000 | |||
Shares issued related to business combination | $ 10,000,000 | $ 3,000,000 | |||||||
Settlement of liability-classified restricted common shares | $ 3,000,000 | $ 5,000,000 | $ 3,000,000 | ||||||
Repurchase and retirement of common shares (in shares) | (1,000) | (1,000) | (2,000) | (1,000) | (1,000) | ||||
Repurchase and retirement of common shares | $ (62,000,000) | $ (34,000,000) | $ (97,000,000) | $ (51,000,000) | $ (1,000,000) | $ (66,000,000) | |||
Ending balance (in shares) | 216,000 | 216,000 | 217,000 | 220,000 | 220,000 | 220,000 | 216,000 | 220,000 | |
Ending balance | $ 3,213,000,000 | $ 3,089,000,000 | $ 2,972,000,000 | $ 2,821,000,000 | $ 2,780,000,000 | $ 2,639,000,000 | $ 3,213,000,000 | $ 2,821,000,000 | |
Accumulated other comprehensive loss | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (169,000,000) | (148,000,000) | (124,000,000) | (113,000,000) | (102,000,000) | (126,000,000) | (124,000,000) | (126,000,000) | |
Other comprehensive income (loss) | (38,000,000) | (21,000,000) | (24,000,000) | 11,000,000 | (11,000,000) | 24,000,000 | |||
Ending balance | (207,000,000) | (169,000,000) | (148,000,000) | (102,000,000) | (113,000,000) | (102,000,000) | (207,000,000) | (102,000,000) | |
Accumulated deficit | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | (2,180,000,000) | (2,143,000,000) | (1,950,000,000) | (1,339,000,000) | (1,409,000,000) | (1,488,000,000) | (1,950,000,000) | (1,488,000,000) | |
Net income | 198,000,000 | 186,000,000 | 146,000,000 | 137,000,000 | 115,000,000 | 156,000,000 | |||
Repurchase and retirement of common shares | (118,000,000) | (223,000,000) | (339,000,000) | (237,000,000) | (45,000,000) | (77,000,000) | |||
Ending balance | $ (2,100,000,000) | $ (2,180,000,000) | $ (2,143,000,000) | $ (1,439,000,000) | $ (1,339,000,000) | $ (1,409,000,000) | $ (2,100,000,000) | $ (1,439,000,000) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 740 | $ 1,328 | $ 849 | $ 965 |
Other comprehensive income (loss) before reclassifications | (53) | 17 | ||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss | (14) | 15 | ||
Tax effects | (16) | (8) | ||
Total other comprehensive (loss) income | (38) | 11 | (83) | 24 |
Ending balance | 906 | 1,280 | 906 | 1,280 |
Accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (169) | (113) | (124) | (126) |
Ending balance | (207) | (102) | (207) | (102) |
Net Unrealized Gains (Losses) on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 24 | (24) | ||
Other comprehensive income (loss) before reclassifications | 131 | 31 | ||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss | (15) | 15 | ||
Tax effects | (17) | (7) | ||
Total other comprehensive (loss) income | 99 | 39 | ||
Ending balance | 123 | 15 | 123 | 15 |
Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 18 | 6 | ||
Other comprehensive income (loss) before reclassifications | 3 | 7 | ||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Tax effects | 0 | 0 | ||
Total other comprehensive (loss) income | 3 | 7 | ||
Ending balance | 21 | 13 | 21 | 13 |
Defined Benefit Pension Components | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (16) | (21) | ||
Other comprehensive income (loss) before reclassifications | (1) | 0 | ||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss | 1 | 0 | ||
Tax effects | 0 | 0 | ||
Total other comprehensive (loss) income | 0 | 0 | ||
Ending balance | (16) | (21) | (16) | (21) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (150) | (87) | ||
Other comprehensive income (loss) before reclassifications | (186) | (21) | ||
Pre-tax (gains) losses reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Tax effects | 1 | (1) | ||
Total other comprehensive (loss) income | (185) | (22) | ||
Ending balance | $ (335) | $ (109) | $ (335) | $ (109) |
Net Income Per Share - Computat
Net Income Per Share - Computation of Net Income Per Share Amounts (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Numerator: | ||||||||
Net income | $ 198 | $ 186 | $ 146 | $ 137 | $ 115 | $ 156 | $ 530 | $ 408 |
Denominator: | ||||||||
Denominator for basic net income per share—weighted average shares (in shares) | 216 | 220 | 217 | 220 | ||||
Effect of dilutive securities (in shares) | 1 | 2 | 1 | 2 | ||||
Denominator for dilutive net income per share (in shares) | 217 | 222 | 218 | 222 | ||||
Basic net income per share (in dollars per share) | $ 0.92 | $ 0.62 | $ 2.44 | $ 1.85 | ||||
Diluted net income per share (in dollars per share) | $ 0.91 | $ 0.62 | $ 2.43 | $ 1.84 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive shares excluded from the computation of diluted net income per share (in shares) | 921 | 27 | 1,052 | 148 |
Segments (Details)
Segments (Details) $ in Millions | 9 Months Ended | |
Oct. 31, 2022 USD ($) segment | Jan. 31, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | segment | 1 | |
Total long-lived assets | $ 420 | $ 467 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 297 | 343 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 283 | 323 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 14 | 20 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 73 | 92 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 50 | $ 32 |