SALESFORCE COM INC, 10-Q filed on 11/22/2017
Quarterly Report
Document and Entity Information
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Document And Entity Information [Abstract]
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Oct. 31, 2017 
Document Fiscal Year Focus
2018 
Document Fiscal Period Focus
Q3 
Trading Symbol
CRM 
Entity Registrant Name
SALESFORCE COM INC 
Entity Central Index Key
0001108524 
Current Fiscal Year End Date
--01-31 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
722.3 
Consolidated Balance Sheets (USD $)
Oct. 31, 2017
Jan. 31, 2017
Current assets:
 
 
Cash and cash equivalents
$ 2,071,837,000 
$ 1,606,549,000 
Marketable securities
1,556,828,000 
602,338,000 
Accounts receivable, net
1,519,916,000 
3,196,643,000 
Deferred commissions
327,643,000 
311,770,000 
Prepaid expenses and other current assets
469,946,000 
279,527,000 
Total current assets
5,946,170,000 
5,996,827,000 
Property and equipment, net
1,864,891,000 
1,787,534,000 
Deferred commissions, noncurrent
253,004,000 
227,849,000 
Capitalized software, net
140,800,000 
141,700,000 
Strategic investments
670,406,000 
566,953,000 
Goodwill
7,294,141,000 
7,263,846,000 
Intangible assets acquired through business combinations, net
895,768,000 
1,113,374,000 
Other assets, net
424,888,000 
486,869,000 
Total assets
17,490,036,000 
17,584,923,000 
Current liabilities:
 
 
Accounts payable, accrued expenses and other liabilities
1,686,408,000 
1,752,664,000 
Deferred revenue
4,392,082,000 
5,542,802,000 
Convertible 0.25% senior notes, net
1,137,954,000 
0 
Total current liabilities
7,216,444,000 
7,295,466,000 
Convertible 0.25% senior notes, net
0 
1,116,360,000 
Term loan
498,084,000 
497,221,000 
Loan assumed on 50 Fremont
198,471,000 
198,268,000 
Revolving credit facility
0 
196,542,000 
Other noncurrent liabilities
736,870,000 
780,939,000 
Total liabilities
8,649,869,000 
10,084,796,000 
Temporary equity:
 
 
Convertible 0.25% senior notes (See Note 8)
10,797,000 
0 
Stockholders’ equity:
 
 
Common stock
722,000 
708,000 
Additional paid-in capital
9,230,081,000 
8,040,170,000 
Accumulated other comprehensive income (loss)
3,554,000 
(75,841,000)
Accumulated deficit
(404,987,000)
(464,910,000)
Total stockholders’ equity
8,829,370,000 
7,500,127,000 
Total liabilities, temporary equity and stockholders’ equity
$ 17,490,036,000 
$ 17,584,923,000 
Consolidated Balance Sheets (Parenthetical) (Notes Payable to Banks, 0.25% Convertible Senior Notes due April 1, 2018)
Oct. 31, 2017
Jan. 31, 2017
Notes Payable to Banks |
0.25% Convertible Senior Notes due April 1, 2018
 
 
Contractual interest rate
0.25% 
0.25% 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Revenues:
 
 
 
 
Subscription and support
$ 2,486,131 
$ 1,983,981 
$ 7,055,538 
$ 5,645,554 
Professional services and other
193,710 
160,794 
573,471 
452,442 
Total revenues
2,679,841 
2,144,775 
7,629,009 
6,097,996 
Cost of revenues:
 
 
 
 
Subscription and support
528,182 1 2
426,487 1 2
1,484,982 1 2
1,154,044 1 2
Professional services and other
186,326 1 2
159,035 1 2
550,748 1 2
454,038 1 2
Total cost of revenues
714,508 1 2
585,522 1 2
2,035,730 1 2
1,608,082 1 2
Gross profit
1,965,333 
1,559,253 
5,593,279 
4,489,914 
Operating expenses:
 
 
 
 
Research and development
393,998 1 2
311,459 1 2
1,156,526 1 2
863,935 1 2
Marketing and sales
1,184,733 1 2
997,993 1 2
3,464,986 1 2
2,828,784 1 2
General and administrative
270,614 1 2
246,765 1 2
813,868 1 2
709,622 1 2
Total operating expenses
1,849,345 1 2
1,556,217 1 2
5,435,380 1 2
4,402,341 1 2
Income from operations
115,988 
3,036 
157,899 
87,573 
Investment income
10,049 
3,709 
24,069 
23,747 
Interest expense
(21,557)
(21,946)
(65,382)
(64,665)
Other income (expense)
1,921 1
1,782 1
(2,695)1
(11,500)1
Gains from acquisitions of strategic investments
0 
833 
0 
13,697 
Income (loss) before benefit from (provision for) income taxes
106,401 
(12,586)
113,891 
48,852 
Benefit from (provision for) income taxes
(55,007)
(24,723)
(53,968)
182,220 
Net income (loss)
$ 51,394 
$ (37,309)
$ 59,923 
$ 231,072 
Basic net income (loss) per share (in dollars per share)
$ 0.07 
$ (0.05)
$ 0.08 
$ 0.34 
Diluted net income (loss) per share (in dollars per share)
$ 0.07 
$ (0.05)
$ 0.08 
$ 0.33 
Shares used in computing basic net income (loss) per share (in shares)
717,445 
690,468 
711,884 
683,075 
Shares used in computing diluted net income (loss) per share (in shares)
738,106 
690,468 
730,212 
696,257 
Consolidated Statements of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Stock-based expenses
$ 251,277 
$ 204,751 
$ 759,331 
$ 575,980 
Cost of revenues
 
 
 
 
Amortization of purchased intangibles from business combinations
39,610 
36,703 
126,679 
84,462 
Stock-based expenses
33,494 
26,783 
97,206 
76,912 
Marketing and sales
 
 
 
 
Amortization of purchased intangibles from business combinations
30,067 
28,064 
91,274 
66,601 
Stock-based expenses
116,992 
93,718 
356,538 
275,515 
Research and development
 
 
 
 
Stock-based expenses
66,626 
50,372 
197,185 
124,164 
Other non-operating expense
 
 
 
 
Amortization of purchased intangibles from business combinations
367 
579 
1,118 
1,927 
General and administrative
 
 
 
 
Stock-based expenses
$ 34,165 
$ 33,878 
$ 108,402 
$ 99,389 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ 51,394 
$ (37,309)
$ 59,923 
$ 231,072 
Other comprehensive income (loss), before tax and net of reclassification adjustments:
 
 
 
 
Foreign currency translation and other gains (losses)
(2,218)
(28,372)
28,190 
(28,523)
Unrealized gains (losses) on marketable securities and strategic investments (See Note 2)
(11,763)
(16,019)
51,205 
20,961 
Other comprehensive income (loss), before tax
(13,981)
(44,391)
79,395 
(7,562)
Tax effect
0 
(7,337)
0 
(5,464)
Other comprehensive income (loss), net of tax
(13,981)
(51,728)
79,395 
(13,026)
Comprehensive income (loss)
$ 37,413 
$ (89,037)
$ 139,318 
$ 218,046 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Operating activities:
 
 
 
 
Net income (loss)
$ 51,394 
$ (37,309)
$ 59,923 
$ 231,072 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
187,546 
169,346 
564,911 
451,479 
Amortization of debt discount and issuance costs
7,795 
7,281 
23,265 
21,334 
Gains from acquisitions of strategic investments
0 
(833)
0 
(13,697)
Amortization of deferred commissions
117,677 
93,230 
331,687 
270,527 
Expenses related to employee stock plans
251,277 
204,751 
759,331 
575,980 
Changes in assets and liabilities, net of business combinations:
 
 
 
 
Accounts receivable, net
49,406 
42,653 
1,677,466 
1,276,798 
Deferred commissions
(171,562)
(92,803)
(372,714)
(226,965)
Prepaid expenses and other current assets and other assets
(15,669)
40,676 
(166,784)
(25,723)
Accounts payable, accrued expenses and other liabilities
74,480 
57,836 
(39,720)
(275,058)
Deferred revenue
(426,552)
(330,516)
(1,150,720)
(829,695)
Net cash provided by operating activities
125,792 
154,312 
1,686,645 
1,456,052 
Investing activities:
 
 
 
 
Business combinations, net of cash acquired
0 
(32,117)
(19,781)
(2,832,110)
Purchases of strategic investments
(54,585)
(28,660)
(113,088)
(65,834)
Sales of strategic investments
40,811 
11,783 
55,898 
26,506 
Purchases of marketable securities
(233,824)
(111,731)
(1,433,718)
(986,862)
Sales of marketable securities
193,783 
93,391 
437,248 
1,927,049 
Maturities of marketable securities
29,819 
14,203 
43,089 
64,741 
Capital expenditures
(111,278)
(140,653)
(396,268)
(319,984)
Net cash used in investing activities
(135,274)
(193,784)
(1,426,620)
(2,186,494)
Financing activities:
 
 
 
 
Proceeds from term loan, net
0 
0 
0 
495,550 
Proceeds from employee stock plans
141,970 
92,846 
484,786 
315,865 
Principal payments on capital lease obligations
(7,716)
(10,997)
(82,890)
(73,760)
Payments on revolving credit facility
0 
0 
(200,000)
0 
Net cash provided by financing activities
134,254 
81,849 
201,896 
737,655 
Effect of exchange rate changes
(2,045)
(11,867)
3,367 
(19,840)
Net increase (decrease) in cash and cash equivalents
122,727 
30,510 
465,288 
(12,627)
Cash and cash equivalents, beginning of period
1,949,110 
1,115,226 
1,606,549 
1,158,363 
Cash and cash equivalents, end of period
2,071,837 
1,145,736 
2,071,837 
1,145,736 
Cash paid during the period for:
 
 
 
 
Interest
6,774 
11,365 
34,039 
41,400 
Income taxes, net of tax refunds
14,837 
11,220 
41,519 
25,451 
Non-cash investing and financing activities:
 
 
 
 
Fixed assets acquired under capital leases
0 
180 
2,471 
765 
Fair value of equity awards assumed
0 
26,406 
0 
47,199 
Fair value of common stock issued as consideration for business combinations
0 
492,842 
6,193 
771,214 
Non-cash equity liability (See Note 9)
$ 5,959 
$ (1,473)
$ 18,920 
$ 74,570 
Summary of Business and Significant Accounting Policies
Summary of Business and Significant Accounting Policies
Summary of Business and Significant Accounting Policies
Description of Business
Salesforce.com, inc. (the "Company") is a leading provider of enterprise software, delivered through the cloud, with a focus on customer relationship management, or CRM. The Company introduced its first CRM solution in 2000, and has since expanded its service offerings into new areas and industries with new editions, features and platform capabilities.
The Company's core mission is to empower its customers to connect with their customers in entirely new ways through cloud, mobile, social, Internet of Things (“IoT”) and artificial intelligence technologies.
The Company's Customer Success Platform is a comprehensive portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools and its professional cloud services.
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2018, for example, refer to the fiscal year ending January 31, 2018.
Basis of Presentation
The accompanying consolidated balance sheet as of October 31, 2017 and the consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows for the three and nine months ended October 31, 2017 and 2016, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2017, and its results of operations, including its comprehensive income (loss), and its cash flows for the three and nine months ended October 31, 2017 and 2016. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2017 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2018.
These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2017.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•
the best estimate of selling price of the deliverables included in multiple deliverable revenue arrangements;
•
the fair value of assets acquired and liabilities assumed for business combinations;
•
the recognition, measurement and valuation of current and deferred income taxes;
•
the fair value of certain stock awards issued;
•
the useful lives of intangible assets, property and equipment and building and structural components; and
•
the valuation of strategic investments and the determination of other-than-temporary impairments.
Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the majority of the Company's offerings operate on a single platform and are deployed in an identical way, and the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
Concentrations of Credit Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. In addition, in connection with the Company's 0.25% Senior Notes (as defined in Note 8 "Debt"), which were issued in March 2013, the Company entered into convertible note hedge transactions with respect to its common stock, which are exposed to concentrations of credit risk. Collateral is not required for accounts receivable or the note hedge transactions. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against its recorded allowance when the Company has exhausted collection efforts without success.
No single customer accounted for more than five percent of accounts receivable at October 31, 2017 and January 31, 2017. No single customer accounted for five percent or more of total revenue during the three and nine months ended October 31, 2017 and 2016.
Geographic Locations
As of October 31, 2017 and January 31, 2017, assets located outside the Americas were 13 percent and 12 percent of total assets, respectively. As of October 31, 2017 and January 31, 2017, assets located in the United States were 86 percent and 86 percent of total assets, respectively.
Revenues by geographical region are as follows (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Americas
$
1,927,405

 
$
1,598,344

 
$
5,536,932

 
$
4,506,774

Europe
493,732

 
337,497

 
1,367,718

 
1,012,671

Asia Pacific
258,704

 
208,934

 
724,359

 
578,551

 
$
2,679,841


$
2,144,775


$
7,629,009

 
$
6,097,996


Revenues by geography are determined based on the region of the Salesforce contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 96 percent during the three and nine months ended October 31, 2017 and 2016. No other country represented more than ten percent of total revenue during the three and nine months ended October 31, 2017 and 2016.
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management, implementation services and other revenue. Other revenue consists primarily of training fees.
The Company commences revenue recognition when all of the following conditions are satisfied:
•
there is persuasive evidence of an arrangement;
•
the service has been or is being provided to the customer;
•
the collection of the fees is reasonably assured; and
•
the amount of fees to be paid by the customer is fixed or determinable.
The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and Support Revenues
Subscription and support revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers.
Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, when the milestones are achieved and accepted by the customer or on a proportional performance basis for fixed price contracts and ratably over the contract term for subscription professional services contracts. The milestone method for revenue recognition is used when there is substantive uncertainty at the date the contract is entered into whether the milestone will be achieved. Training revenues are recognized as the services are performed.
Multiple Deliverable Arrangements
The Company enters into arrangements with multiple deliverables that generally include multiple subscriptions, premium support and professional services. If the deliverables have standalone value at contract inception, the Company accounts for each deliverable separately. Subscription services have standalone value as such services are often sold separately. In determining whether professional services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value.
Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price (“VSOE”), if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any.
For certain professional services, the Company has established VSOE as a consistent number of standalone sales of these deliverables have been priced within a reasonably narrow range. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription services.
The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP.
Deferred Revenue
The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in annual installments. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
Deferred Commissions
Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force.
The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts, which are typically 12 to 36 months. The commission payments are paid in full the month after the customer’s service commences and are a direct and incremental cost of the revenue arrangements. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the non-cancelable customer contracts that they should be recorded as an asset and charged to expense over the same period that the subscription revenue is recognized. Amortization of deferred commissions is included in marketing and sales expense in the accompanying consolidated statements of operations.
During the nine months ended October 31, 2017, the Company deferred $372.7 million of commission expenditures and amortized $331.7 million to sales expense. During the same period a year ago, the Company deferred $227.0 million of commission expenditures and amortized $270.5 million to sales expense. Deferred commissions on the Company's consolidated balance sheets totaled $580.6 million at October 31, 2017 and $539.6 million at January 31, 2017.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of investment income.
Strategic Investments
The Company holds certain marketable equity and non-marketable debt and equity securities within its strategic investments portfolio. Marketable equity securities are measured using quoted prices in their respective active markets, non-marketable debt securities are recorded at their estimated fair value and the non-marketable equity securities are recorded at cost.
Marketable equity securities and non-marketable debt securities, which consist of noncontrolling debt investments in privately held companies, are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income. Equity investments without readily determinable fair values for which the Company does not have the ability to exercise significant influence are accounted for using the cost method of accounting. Under the cost method of accounting, the non-marketable securities are carried at cost and are adjusted only for other-than-temporary impairments, certain distributions and additional investments. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. Fair value is not estimated for non-marketable equity securities if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment.
The carrying value of the Company’s strategic investments is impacted by various events such as entering into new investments, dispositions due to acquisitions, fair market value adjustments or initial public offerings. The cash inflows from exits and cash outflows for new investments are disclosed as strategic investments within the investing activities section of the statement of cash flows and any gains or losses are recorded within the operating activities of the statements of cash flows for each of the respective fiscal quarter periods. 
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. As of October 31, 2017 and January 31, 2017, the foreign currency derivative contracts that were not settled were recorded at fair value on the consolidated balance sheets.
Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties.
Fair Value Measurement
The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.”
Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building - leased facility
27 years
Building improvements
10 years

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Capitalized Software Costs
The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Intangible Assets acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment
The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
There was no impairment of intangible assets, long-lived assets or goodwill during the three and nine months ended October 31, 2017 and 2016.
Business Combinations
The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will recognize a gain or loss to settle that relationship as of the acquisition date, which is recorded in other income (expense) within the statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and disclosed separately within the statements of operations.
Leases and Asset Retirement Obligations
The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense.
In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease.
The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other income (expense).
Accounting for Stock-Based Expense
The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months.
Stock-based expenses related to performance share grants are measured based on grant date fair value and expensed on a straight-line basis over the service period of the awards, which is generally the vesting term of three years.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based expense. The Company recognizes stock-based expense equal to the grant date fair value of the restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally four years. 
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in Other income (expense) in the consolidated statements of operations for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.
Warranties and Indemnification
The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
New Accounting Pronouncements Adopted in Fiscal 2018
In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2017-01, "Business Combinations (Topic 805) Clarifying the Definition of a Business" ("ASU 2017-01") which amended the existing FASB Accounting Standards Codification. The standard provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for fiscal 2019 with early adoption permitted. The Company early adopted the standard in the first quarter of fiscal 2018 on a prospective basis. Since the Company has not acquired any material businesses since the start of the year, this standard has had no impact on the Company's financial statements.
In May 2017, the FASB issued Accounting Standards Update No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09") which amended the existing FASB Accounting Standards Codification. The standard provides clarity and reduces the cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for fiscal 2019 with early adoption permitted. The Company early adopted the standard in the second quarter of fiscal 2018 on a prospective basis and does not expect it to have any impact on the Company's financial statements.
Accounting Pronouncements Pending Adoption
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which amended the existing FASB Accounting Standards Codification, replaces existing revenue recognition guidance with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. ASU 2014-09, as amended, will be effective as of the beginning of fiscal 2019, including interim periods within that reporting period.
The Company plans to adopt the standard using the full retrospective method to restate each prior reporting period presented.
The Company is continuing to assess the impact of adopting ASU 2014-09 on its financial position, results of operations and related disclosures and has concluded that the impact to the opening balance sheet as of February 1, 2016, due to the adjustment of revenues, is not material. The Company has not yet determined whether the impact on revenues will be material for the adjusted statements of operations or for future periods. Additionally, as the Company continues to assess the new standard along with industry trends and additional interpretive guidance, the Company may adjust its implementation plan accordingly.
The Company believes that the new standard will impact the following policies and disclosures:
•
removal of the current limitation on contingent revenue will result in revenue being recognized earlier for certain contracts;
•
allocation of subscription and support revenue across different clouds and to professional services revenue;
•
estimation of variable consideration for arrangements with overage fees;
•
required disclosures including information about the remaining transaction price and when the Company expects to recognize revenue; and
•
accounting for deferred commissions including costs that qualify for deferral and the amortization period.
The commission accounting under the new standard is significantly different than the Company's current commission capitalization policy, as it will require the Company to capitalize more costs and amortize them over a longer period of time. Under the Company's current policy, the Company only capitalizes commissions that have a direct relationship to a specific revenue contract and the cost is deemed to be incremental. Under the new standard, the concept of what must be capitalized is significantly broader since a direct relationship with a revenue contract is not required. Accordingly, the new standard will result in additional types of costs being capitalized, including fringe benefits and taxes. Additionally, all amounts capitalized will be amortized over a period longer than the Company's current policy of amortizing the deferred amounts over the specific revenue contract terms, which are typically 12 to 36 months. Specifically, initial incremental contract costs will be deferred and amortized over an estimated customer life of four years, which is calculated based on both qualitative and quantitative factors, such as product life cycles and customer attrition. While the Company has not yet finalized its assessment of the impact the new commission accounting policy will have on its financial position and results of operations, the Company believes it will be material to both its balance sheet and statement of operations due to the capitalization of additional costs and the longer period of amortization.
The Company does not expect the adoption of ASU 2014-09 to have any impact on its operating cash flows.
In January 2016, the FASB issued Accounting Standards Update No. 2016-01, "Financial Instrument-Overall (Subtopic 825-10)" ("ASU 2016-01"), which requires entities to measure equity instruments at fair value and recognize any changes in fair value in other income (expense) within the statement of operations. Under the new standard, the Company will record its publicly traded equity investments at fair value on a quarterly basis and record the change in other income (expense) within the statement of operations. Previously, such adjustments were recorded in other comprehensive income. The guidance provides for electing the measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company plans to elect the measurement alternative for its equity investments in privately held companies. These investments will be measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which are recorded in other income (expense) within the statement of operations. The new standard is effective as of the beginning of fiscal 2019, including interim periods within that reporting period, on a prospective basis for nonmarketable equity securities and a modified retrospective basis for publicly held equity investments. The Company expects the adoption of ASU 2016-01 will impact its strategic investments portfolio, which consists of approximately $100.3 million in publicly traded equity investments and $516.6 million in privately held equity investments, as of October 31, 2017, both of which are recorded in strategic investments within the balance sheet. Refer to Note 2, "Investments," for additional details. The new standard could have a material impact to the Company's consolidated financial statements, including additional volatility to other income (expense) within the Company's statements of operations in future periods, due to changes in market prices of the Company's investments in publicly held equity investments and the valuation and timing of same or similar transactions of the Company's investments in privately held equity investments.
In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The new standard is effective for annual periods beginning after December 15, 2017, with early adoption permitted as of the beginning of a fiscal year. The Company plans to adopt the new standard in its first quarter of fiscal 2019 and does not expect it to have a material impact on its consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of operations in a manner similar to current accounting rules. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 on a modified retrospective basis. The Company is in the process of implementing changes to its systems, processes and controls, in conjunction with its review of existing lease agreements, in order to adopt the new standard in its first quarter of fiscal 2020. The Company expects its leases designated as operating leases in Note 13, “Commitments,” will be reported on the consolidated balance sheets upon adoption. The Company is currently evaluating the impact to its consolidated financial statements as it relates to other aspects of the business.
Reclassifications
Certain reclassifications to fiscal 2017 balances were made to conform to the current period presentation in the consolidated balance sheets, consolidated statement of operations and consolidated statements of cash flows. These reclassifications include cost of revenues-subscription and support, cost of revenues-professional services and other, deferred revenue, deferred revenue, noncurrent, and purchases and sales of strategic investments.
Investments
Investments
Investments
Marketable Securities
At October 31, 2017, marketable securities consisted of the following (in thousands):
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
939,959

 
$
2,246

 
$
(2,435
)
 
$
939,770

U.S. treasury securities
137,172

 
29

 
(491
)
 
136,710

Mortgage backed obligations
98,226

 
22

 
(532
)
 
97,716

Asset backed securities
202,180

 
96

 
(219
)
 
202,057

Municipal securities
56,387

 
81

 
(201
)
 
56,267

Foreign government obligations
68,845

 
2

 
(524
)
 
68,323

U.S. agency obligations
10,506

 
1

 
(9
)
 
10,498

Covered bonds
45,485

 
63

 
(61
)
 
45,487

Total marketable securities
$
1,558,760


$
2,540


$
(4,472
)

$
1,556,828

At January 31, 2017, marketable securities consisted of the following (in thousands):
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
321,284

 
$
887

 
$
(1,531
)
 
$
320,640

U.S. treasury securities
62,429

 
68

 
(674
)
 
61,823

Mortgage backed obligations
74,882

 
39

 
(669
)
 
74,252

Asset backed securities
101,913

 
74

 
(197
)
 
101,790

Municipal securities
33,523

 
35

 
(183
)
 
33,375

Foreign government obligations
10,491

 
3

 
(36
)
 
10,458

Total marketable securities
$
604,522


$
1,106


$
(3,290
)

$
602,338


The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Due within 1 year
$
226,929

 
$
104,631

Due in 1 year through 5 years
1,314,352

 
494,127

Due in 5 years through 10 years
15,547

 
3,580

 
$
1,556,828

 
$
602,338


As of October 31, 2017, the following marketable securities were in an unrealized loss position (in thousands):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate notes and obligations
$
424,101

 
$
(2,052
)
 
$
28,653

 
$
(383
)
 
$
452,754

 
$
(2,435
)
U.S. treasury securities
114,724

 
(491
)
 
0

 
0

 
114,724

 
(491
)
Mortgage backed obligations
68,841

 
(315
)
 
16,564

 
(217
)
 
85,405

 
(532
)
Asset backed securities
126,186

 
(210
)
 
3,461

 
(9
)
 
129,647

 
(219
)
Municipal securities
30,671

 
(148
)
 
2,788

 
(53
)
 
33,459

 
(201
)
Foreign government obligations
62,697

 
(520
)
 
1,027

 
(4
)
 
63,724

 
(524
)
U.S. agency obligations
6,746

 
(9
)
 
0

 
0

 
6,746

 
(9
)
Covered bonds
5,861

 
(61
)
 
0

 
0

 
5,861

 
(61
)
 
$
839,827

 
$
(3,806
)
 
$
52,493

 
$
(666
)
 
$
892,320

 
$
(4,472
)

The unrealized losses for each of the fixed rate marketable securities were less than $0.2 million. The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of October 31, 2017, such as the Company's intent to hold and whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment's amortized basis. The Company expects to receive the full principal and interest on all of these marketable securities.
Investment Income
Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Interest income
$
10,038

 
$
3,642

 
$
24,433

 
$
17,961

Realized gains
258

 
210

 
770

 
7,771

Realized losses
(247
)
 
(143
)
 
(1,134
)
 
(1,985
)
Total investment income
$
10,049

 
$
3,709

 
$
24,069

 
$
23,747


Reclassification adjustments out of accumulated other comprehensive income into investment income were immaterial for the three and nine months ended October 31, 2017 and 2016.
Strategic Investments
As of October 31, 2017, the Company had three investments in marketable equity securities with a fair value of $100.3 million, which included an unrealized gain of $62.0 million. As of January 31, 2017, the Company had six investments in marketable equity securities with a fair value of $41.0 million, which included an unrealized gain of $24.5 million. The change in the fair value of the investments in publicly held companies is recorded in the consolidated balance sheets within strategic investments and accumulated other comprehensive income.
As of October 31, 2017 and January 31, 2017, the carrying value of the Company’s non-marketable debt and equity securities was $570.1 million and $526.0 million, respectively. The estimated fair value of the non-marketable debt and equity securities was approximately $803.9 million and $758.3 million as of October 31, 2017 and January 31, 2017, respectively.
The Company sold a portion of its publicly-held investments in the three months ended October 31, 2017, which resulted in a reclassification of previously unrealized gains from the statement of comprehensive income (loss) to the statement of operations in the amount of $15.5 million. This amount was not material in prior periods.
Derivatives
Derivatives
Derivatives
Details on outstanding foreign currency derivative contracts are presented below (in thousands):
 
As of
 
October 31, 2017
 
January 31, 2017
Notional amount of foreign currency derivative contracts
$
1,275,276

 
$
1,280,953

Fair value of foreign currency derivative contracts
$
853

 
$
10,205


The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in thousands):
 
 
As of
  
Balance Sheet Location
October 31, 2017
 
January 31, 2017
Derivative Assets
 
 
 
 
Foreign currency derivative contracts
Prepaid expenses and other current assets
$
4,225

 
$
13,238

Derivative Liabilities
 
 
 
 
Foreign currency derivative contracts
Accounts payable, accrued expenses and other liabilities
$
3,372

 
$
3,033


Gains/losses on derivative instruments not designated as hedging instruments recorded in Other income (expense) in the consolidated statements of operations during the three and nine months ended October 31, 2017 and 2016, respectively, are summarized below (in thousands):
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2016
 
2017
 
2016
Foreign currency derivative contracts
$
(1,606
)
 
$
(39,624
)
 
$
11,500

 
$
(86,528
)
Fair Value Measurement
Fair Value Measurement
Fair Value Measurement
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1.    Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2.    Significant other inputs that are directly or indirectly observable in the marketplace.

Level 3.    Significant unobservable inputs which are supported by little or no market activity.
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of October 31, 2017 and indicates the fair value hierarchy of the valuation (in thousands):
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of October 31, 2017
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
394,123

 
$
0

 
$
394,123

Money market mutual funds
805,554

 
0

 
0

 
805,554

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
939,770

 
0

 
939,770

U.S. treasury securities
0

 
136,710

 
0

 
136,710

Mortgage backed obligations
0

 
97,716

 
0

 
97,716

Asset backed securities
0

 
202,057

 
0

 
202,057

Municipal securities
0

 
56,267

 
0

 
56,267

Foreign government obligations
0

 
68,323

 
0

 
68,323

U.S. agency obligations
0

 
10,498

 
0

 
10,498

Covered bonds
0

 
45,487

 
0

 
45,487

Foreign currency derivative contracts (2)
0

 
4,225

 
0

 
4,225

Total assets
$
805,554

 
$
1,955,176

 
$
0

 
$
2,760,730

Liabilities:
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
0

 
3,372

 
0

 
3,372

Total liabilities
$
0

 
$
3,372

 
$
0

 
$
3,372

___________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of October 31, 2017, in addition to $872.2 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of October 31, 2017.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of October 31, 2017.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2017 and indicates the fair value hierarchy of the valuation (in thousands):
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable Inputs (Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of
January 31, 2017
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
25,100

 
$
0

 
$
25,100

Money market mutual funds
956,479

 
0

 
0

 
956,479

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
320,640

 
0

 
320,640

U.S. treasury securities
0

 
61,823

 
0

 
61,823

Mortgage backed obligations
0

 
74,252

 
0

 
74,252

Asset backed securities
0

 
101,790

 
0

 
101,790

Municipal securities
0

 
33,375

 
0

 
33,375

Foreign government obligations
0

 
10,458

 
0

 
10,458

Foreign currency derivative contracts (2)
0

 
13,238

 
0

 
13,238

Total assets
$
956,479

 
$
640,676

 
$
0

 
$
1,597,155

Liabilities:
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
0

 
3,033

 
0

 
3,033

Total liabilities
$
0

 
$
3,033

 
$
0

 
$
3,033

______________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2017, in addition to $625.0 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2017.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of January 31, 2017.
Property and Equipment
Property and Equipment
Property and Equipment
Property and Equipment
Property and equipment, net consisted of the following (in thousands):
 
As of
 
October 31, 2017
 
January 31, 2017
Land
$
183,888

 
$
183,888

Buildings and building improvements
626,168

 
621,377

Computers, equipment and software
1,600,783

 
1,440,986

Furniture and fixtures
132,374

 
112,564

Leasehold improvements
776,396

 
627,069

 
3,319,609

 
2,985,884

Less accumulated depreciation and amortization
(1,454,718
)
 
(1,198,350
)
 
$
1,864,891

 
$
1,787,534


Depreciation and amortization expense totaled $94.2 million and $83.5 million during the three months ended October 31, 2017 and 2016, respectively, and $277.2 million and $239.2 million during the nine months ended October 31, 2017 and 2016, respectively.
Computers, equipment and software at October 31, 2017 and January 31, 2017 included a total of $729.5 million and $729.0 million acquired under capital lease agreements, respectively. Accumulated amortization relating to computers, equipment and software acquired under capital leases totaled $450.5 million and $386.9 million, respectively, at October 31, 2017 and January 31, 2017. Amortization of assets acquired under capital leases is included in depreciation and amortization expense.
Building - 350 Mission
In December 2013, the Company entered into a lease agreement for approximately 445,000 rentable square feet of office space at 350 Mission Street (“350 Mission”) in San Francisco, California, which is the total office space available in the building. As a result of the Company’s involvement during the construction period, the Company is considered for accounting purposes to be the owner of 350 Mission. As a result, the Company has capitalized the construction costs as Building with a corresponding current and noncurrent financing obligation liability and has accounted for the underlying land implicitly as an operating lease. As of October 31, 2017, the Company had capitalized $178.8 million of construction costs, based on the construction costs incurred to date by the landlord, and recorded a corresponding current and noncurrent financing obligation liability of $19.9 million and $198.9 million, respectively. As of January 31, 2017, the Company had capitalized $178.8 million of construction costs, based on the construction costs incurred to date by the landlord, and recorded a corresponding current and noncurrent financing obligation liability of $19.6 million and $200.7 million, respectively. The total expected financing obligation in the form of minimum lease payments inclusive of the amounts currently recorded is $306.3 million, including interest (see Note 13 “Commitments” for future commitment details). The obligation will be settled through monthly lease payments to the landlord, which commenced in October 2015. To the extent that operating expenses for 350 Mission are material, the Company, as the deemed accounting owner, will record the operating expenses.
Business Combinations
Business Combinations
Business Combinations
In February 2017, the Company acquired Sequence, Inc. for an aggregate of $26.0 million in cash and equity, net of cash acquired, and has included the financial results of the company in its consolidated financial statements from the date of acquisition. The costs associated with this acquisition were not material. The Company accounted for this acquisition as a business combination. In allocating the purchase consideration based on estimated fair values, the Company recorded $2.7 million of intangible assets and $23.0 million of goodwill. The goodwill balance associated with this business combination is deductible for U.S. income tax purposes. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
Intangible Assets Acquired Through Business Combinations and Goodwill
Intangible Assets Acquired Through Business Combinations and Goodwill
Intangible Assets Acquired Through Business Combinations and Goodwill
Intangible assets acquired through business combinations
Intangible assets acquired through business combinations are as follows (in thousands):
 
Intangible Assets, Gross
 
Accumulated Amortization
 
Intangible Assets, Net
 
Weighted
Average
Remaining Useful Life
 
Jan 31, 2017
 
Additions
 
Oct. 31, 2017
 
Jan 31, 2017
 
Expense
 
Oct. 31, 2017
 
Jan 31, 2017
 
Oct. 31, 2017
 
Acquired developed technology
$
1,092,161

 
$
0

 
$
1,092,161

 
$
(577,929
)
 
$
(125,886
)
 
$
(703,815
)
 
$
514,232

 
$
388,346

 
3.0
Customer relationships
843,614

 
1,690

 
845,304

 
(254,035
)
 
(89,769
)
 
(343,804
)
 
589,579

 
501,500

 
4.7
Trade names and trademarks
45,950

 
0

 
45,950

 
(41,349
)
 
(1,530
)
 
(42,879
)
 
4,601

 
3,071

 
1.6
Territory rights and other
15,786

 
0

 
15,786

 
(12,256
)
 
(996
)
 
(13,252
)
 
3,530

 
2,534

 
8.3
50 Fremont lease intangibles
7,713

 
0

 
7,713

 
(6,281
)
 
(1,115
)
 
(7,396
)
 
1,432

 
317

 
0.3
Total
$
2,005,224

 
$
1,690

 
$
2,006,914

 
$
(891,850
)
 
$
(219,296
)
 
$
(1,111,146
)
 
$
1,113,374

 
$
895,768

 
3.9

Amortization of intangible assets and unfavorable lease liabilities, which are not reflected in the table above, resulting from business combinations for the three months ended October 31, 2017 and 2016 was $70.0 million and $65.3 million, respectively, and for the nine months ended October 31, 2017 and 2016 was $219.1 million and $153.0 million, respectively.
The expected future amortization expense for intangible assets as of October 31, 2017 is as follows (in thousands):
Fiscal Period:
 
 
Remaining three months of Fiscal 2018
 
$
69,053

Fiscal 2019
 
266,233

Fiscal 2020
 
225,039

Fiscal 2021
 
169,481

Fiscal 2022
 
111,353

Thereafter
 
54,609

Total amortization expense
 
$
895,768


Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter.
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in thousands):
Balance as of January 31, 2017
 
$
7,263,846

Sequence, Inc. acquisition
 
22,982

Adjustments of acquisition date fair values, including the effect of foreign currency translation
 
7,313

Balance as of October 31, 2017
 
$
7,294,141

Debt
Debt
Debt
Convertible Senior Notes
  
Par Value Outstanding
 
Equity
Component Recorded at Issuance
 
Liability Component of Par Value as of
(in thousands)
October 31,
2017
 
January 31,
2017
0.25% Convertible Senior Notes due April 1, 2018
$
1,149,979

 
$
122,421

(1)
$
1,137,954

 
$
1,116,360

___________ 
(1)This amount represents the equity component recorded at the initial issuance of the 0.25% convertible senior notes. As of October 31, 2017, $10.8 million was reclassified to temporary equity on the accompanying consolidated balance sheet as these notes are convertible for the three months ending October 31, 2017 based on the conversion criteria below.
In March 2013, the Company issued at par value $1.15 billion of 0.25% convertible senior notes (the “0.25% Senior Notes”, or “Notes”) due April 1, 2018, unless earlier purchased by the Company or converted and are therefore classified as current on the consolidated balance sheet as of October 31, 2017 as they are due within one year. Interest is payable semi-annually, in arrears on April 1 and October 1 of each year.
The 0.25% Senior Notes are governed by an indenture between the Company, as issuer, and U.S. Bank National Association, as trustee. The 0.25% Senior Notes are unsecured and do not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of securities by the Company.
If converted, holders of the 0.25% Senior Notes will receive cash equal to the principal amount, and at the Company’s election, cash, shares of the Company’s common stock, or a combination of cash and shares, for any amounts in excess of the principal amounts.
Certain terms of the conversion features of the 0.25% Senior Notes are as follows:
 
Conversion
Rate per $1,000
Par Value
 
Initial Conversion Price per Share
 
Convertible Date
0.25% Senior Notes
15.0512

 
$
66.44

 
January 1, 2018

Throughout the term of the 0.25% Senior Notes, the conversion rate may be adjusted upon the occurrence of certain events, including any cash dividends. Holders of the 0.25% Senior Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited.
Holders may convert the 0.25% Senior Notes under the following circumstances:
•
during any fiscal quarter, if, for at least 20 trading days during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sales price of the Company’s common stock for such trading day is greater than or equal to 130% of the applicable conversion price on such trading day;
•
in certain situations, when the trading price of the 0.25% Senior Notes is less than 98% of the product of the sale price of the Company’s common stock and the conversion rate;
•
upon the occurrence of specified corporate transactions described under the 0.25% Senior Notes indenture, such as a consolidation, merger or binding share exchange; or
•
at any time on or after the convertible date noted above (as described in the indenture).
Holders of the 0.25% Senior Notes have the right to require the Company to purchase with cash all or a portion of the Notes upon the occurrence of a fundamental change, such as a change of control, at a purchase price equal to 100% of the principal amount of the 0.25% Senior Notes plus accrued and unpaid interest. Following certain corporate transactions that constitute a change of control, the Company will increase the conversion rate for a holder who elects to convert the 0.25% Senior Notes in connection with such change of control.
In accounting for the issuances of the 0.25% Senior Notes, the Company separated the 0.25% Senior Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 0.25% Senior Notes as a whole. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the 0.25% Senior Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.
In any period when holders of the 0.25% Senior Notes are eligible to exercise their conversion option, the equity component related to convertible debt instruments is required to be reclassified from permanent equity to temporary equity. Therefore, if in any future period the holders of the 0.25% Senior Notes are able to exercise their conversion rights, then the difference between (1) the amount of cash deliverable upon conversion (i.e., par value of debt) and (2) the carrying value of the debt component will be reclassified from permanent equity to temporary equity, and will continue to be reported as temporary equity for any period in which the debt remains currently convertible.
In accounting for the transaction costs related to the 0.25% Senior Notes issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to expense over the terms of the 0.25% Senior Notes, and transaction costs attributable to the equity component were netted with the equity component in stockholders’ equity.
The 0.25% Senior Notes consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Liability component:
 
 
 
Principal (1)
$
1,149,979

 
$
1,150,000

Less: debt discount, net (2)
(10,797
)
 
(29,954
)
Less: debt issuance cost
(1,228
)
 
(3,686
)
Net carrying amount
$
1,137,954

 
$
1,116,360

(1)The effective interest rate of the 0.25% Senior Notes is 2.53%. The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature.
(2)Included in the consolidated balance sheets within Convertible 0.25% Senior Notes (which is classified as a current liability as of October 31, 2017 and a noncurrent liability as of January 31, 2017) and is amortized over the life of the 0.25% Senior Notes using the effective interest rate method.
The total estimated fair value of the Company's 0.25% Senior Notes at October 31, 2017 was $1.8 billion. The fair value was determined based on the closing trading price per $100 of the 0.25% Senior Notes as of the last day of trading for the third quarter of fiscal 2018.
Based on the closing price of the Company’s common stock of $102.34 on October 31, 2017, the if-converted value of the 0.25% Senior Notes exceeded their principal amount by approximately $621.4 million.
During the three months ended October 31, 2017, an immaterial portion of the 0.25% Senior Notes outstanding was converted by noteholders. The Company recorded an immaterial loss during the three months ended October 31, 2017 related to the extinguishment of the 0.25% Senior Notes converted by noteholders, which represents the difference between the fair market value allocated to the liability component on settlement date and the net carrying amount of the liability component and unamortized debt issuance costs on settlement date. As of October 31, 2017 the remaining principal balance of the 0.25% Senior Notes outstanding is approximately $1.15 billion. The remaining principal balance of the 0.25% Senior Notes matures on April 1, 2018 unless earlier converted by noteholders.
As of the filing date of this Form 10-Q, the Company has received additional conversion notices for $26.7 million of the principal balance of the 0.25% Senior Notes.
Note Hedges
To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions with respect to its common stock (“0.25% Note Hedges”).
(in thousands, except for shares)
Date
 
Purchase
 
Shares
0.25% Note Hedges
March 2013
 
$
153,800

 
17,308,880


The 0.25% Note Hedges cover shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 0.25% Senior Notes, also subject to adjustment, and are exercisable upon conversion of the Notes. The 0.25% Note Hedges will expire upon the maturity of the 0.25% Senior Notes. The 0.25% Note Hedges are intended to reduce the potential economic dilution upon conversion of the 0.25% Senior Notes in the event that the market value per share of the Company’s common stock, as measured under the 0.25% Senior Notes, at the time of exercise is greater than the conversion price of the 0.25% Senior Notes. The 0.25% Note Hedges are separate transactions and are not part of the terms of the 0.25% Senior Notes. Holders of the 0.25% Senior Notes will not have any rights with respect to the 0.25% Note Hedges. The 0.25% Note Hedges do not impact earnings per share.
Warrants
 
Date
 
Proceeds
(in thousands)
 
Shares
 
Strike
Price
0.25% Warrants
March 2013
 
$
84,800

 
17,308,880

 
$
90.40


In March 2013, the Company also entered into a warrants transaction (“0.25% Warrants”), whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, shares of the Company’s common stock. If the 0.25% Warrants are not exercised on their exercise dates, which are in fiscal 2019, they will expire. If the market value per share of the Company's common stock exceeds the applicable exercise price of the 0.25% Warrants, the 0.25% Warrants will have a dilutive effect on the Company's earnings per share if the Company has achieved profitability at that time. The 0.25% Warrants are separate transactions entered into by the Company and are not part of the terms of the 0.25% Senior Notes or the 0.25% Note Hedges. Holders of the 0.25% Senior Notes and 0.25% Note Hedges will not have any rights with respect to the 0.25% Warrants.
Term Loan
In July 2016, the Company entered into a credit agreement (“Term Loan Credit Agreement”) with Bank of America, N.A. and certain other institutional lenders for a $500.0 million term loan facility (“Term Loan”) that matures on July 11, 2019. The Term Loan will bear interest, at the Company’s option, at either a base rate plus a spread of 0.00% to 0.75% or an adjusted LIBOR rate plus a spread of 1.00% to 1.75%, in each case with such spread being determined based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period.
In July 2016, the Company borrowed the full $500.0 million under the Term Loan. All of the net proceeds of the Term Loan were for the purpose of partially funding the acquisition of Demandware.
Interest on the Term Loan is due and payable in arrears quarterly for loans bearing interest at a rate based on the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate.
All outstanding amounts under the Term Loan Credit Agreement will be due and payable on July 11, 2019. The Company may prepay the Term Loan, in whole or in part, at any time without premium or penalty, subject to certain conditions, and amounts repaid or prepaid may not be reborrowed. The Company’s obligations under the Term Loan Credit Agreement are required to be guaranteed by certain of its subsidiaries meeting certain thresholds set forth in the Term Loan Credit Agreement.
The Term Loan Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions and repurchase stock. The Company is also required to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio. The Term Loan Credit Agreement includes customary events of default. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Term Loan Credit Agreement at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.00% above the rate applicable for base rate loans for any other overdue amounts. The occurrence of an event of default could result in the acceleration of obligations under the Term Loan Credit Agreement. The Company was in compliance with the Term Loan Credit Agreement’s covenants as of October 31, 2017.
The weighted average interest rate on the Term Loan was 2.2% for the three months ended October 31, 2017. Accrued interest on the Term Loan was $0.3 million as of October 31, 2017. As of October 31, 2017, the noncurrent outstanding principal portion was $500.0 million.
Revolving Credit Facility
In July 2016, the Company entered into an Amended and Restated Credit Agreement (“Revolving Loan Credit Agreement”) with Wells Fargo Bank, National Association, and certain other institutional lenders that provides for $1.0 billion unsecured revolving credit facility (“Credit Facility”) that matures in July 2021. The Revolving Loan Credit Agreement amended and restated the Company’s existing revolving credit facility dated October 2014. The Company may use the proceeds of future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted acquisitions.
The borrowings under the Credit Facility bear interest, at the Company’s option, at a base rate plus a spread of 0.00% to 0.75% or an adjusted LIBOR rate plus a spread of 1.00% to 1.75%, in each case with such spread being determined based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period. Interest is due and payable in arrears quarterly for loans bearing interest at a rate based on the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate. Regardless of what amounts, if any, are outstanding under the Credit Facility, the Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.125% to 0.25%, with such rate being based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period, payable in arrears quarterly.
The Revolving Loan Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions and repurchase stock. The Company is also required to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio. The Revolving Loan Credit Agreement includes customary events of default. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Revolving Loan Credit Agreement at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.00% above the rate applicable for base rate loans for any other overdue amounts. The occurrence of an event of default could result in the acceleration of obligations under the Revolving Loan Credit Agreement. The Company was in compliance with the Revolving Loan Credit Agreement’s covenants as of October 31, 2017.
In February 2017, the Company paid down the remaining $200.0 million of outstanding borrowings under the Credit Facility. There were no outstanding borrowings under the Credit Facility as of October 31, 2017. The Company continues to pay a commitment fee on the available amount of the Credit Facility.
Loan Assumed on 50 Fremont
The Company assumed a $200.0 million loan with the acquisition of 50 Fremont (“Loan”). The Loan bears an interest rate of 3.75% per annum and is due in June 2023. For the remainder of fiscal 2018, the Loan requires interest only payments. Beginning in fiscal 2019, principal and interest payments are required, with the remaining principal due at maturity. For the three months ended October 31, 2017 and 2016, total interest expense recognized was $1.8 million and $1.8 million, respectively. For the nine months ended October 31, 2017 and 2016, total interest expense recognized was $5.6 million and $5.6 million, respectively. The Loan can be prepaid at any time subject to a yield maintenance fee. The agreement governing the Loan contains certain customary affirmative and negative covenants that the Company was in compliance with as of October 31, 2017.
Interest Expense on Convertible Senior Notes, Term Loan, Credit Facility and Loan Assumed on 50 Fremont
The following table sets forth total interest expense recognized related to the 0.25% Senior Notes, the Term Loan, the Credit Facility and the Loan (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Contractual interest expense
$
5,766

 
$
5,207

 
$
17,044

 
$
11,398

Amortization of debt issuance costs
1,332

 
1,342

 
3,996

 
4,071

Amortization of debt discount
6,463

 
6,304

 
19,269

 
18,794

 
$
13,561

 
$
12,853

 
$
40,309

 
$
34,263

Other Balance Sheet Accounts
Other Balance Sheet Accounts
Other Balance Sheet Accounts
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Prepaid income taxes
$
43,301

 
$
26,932

Other taxes receivable
33,099

 
34,177

Prepaid expenses and other current assets
393,546

 
218,418

 
$
469,946

 
$
279,527


Capitalized Software, net
Capitalized software, net at October 31, 2017 and January 31, 2017 was $140.8 million and $141.7 million, respectively. Accumulated amortization relating to capitalized software, net totaled $306.6 million and $250.9 million, respectively, at October 31, 2017 and January 31, 2017.
Capitalized internal-use software amortization expense totaled $18.7 million and $16.6 million for the three months ended October 31, 2017 and 2016, respectively and $55.7 million and $47.5 million for the nine months ended October 31, 2017 and 2016, respectively.
The Company capitalized $2.0 million and $1.7 million of stock-based expenses related to capitalized internal-use software development during the three months ended October 31, 2017 and 2016, respectively, and $5.9 million and $5.1 million for the nine months ended October 31, 2017 and 2016, respectively.
Other Assets, net
Other assets consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Deferred income taxes, noncurrent, net
$
31,596

 
$
28,939

Long-term deposits
23,979

 
23,597

Domain names and patents, net
26,811

 
39,213

Customer contract assets (1)
201,357

 
281,733

Other
141,145

 
113,387

 
$
424,888

 
$
486,869

(1) Customer contract asset reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date.
Domain names and patents amortization expense was $4.3 million and $4.1 million for the three months ended October 31, 2017 and 2016, respectively, and $13.0 million and $11.9 million for the nine months ended October 31, 2017 and 2016, respectively.
Accounts Payable, Accrued Expenses and Other Liabilities
Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Accounts payable
$
120,019

 
$
115,257

Accrued compensation
622,419

 
730,390

Non-cash equity liability (1)
49,435

 
68,355

Accrued other liabilities
488,071

 
419,299

Accrued income and other taxes payable
193,693

 
239,699

Accrued professional costs
44,757

 
38,254

Accrued rent
33,968

 
19,710

Capital lease obligation, current
114,147

 
102,106

Financing obligation - leased facility, current
19,899

 
19,594

 
$
1,686,408

 
$
1,752,664


(1) Non-cash equity liability represents the purchase price of shares issued to non-executive employees, for those shares exceeding previously registered ESPP shares at the time of sale to the extent the shares had not been subsequently sold by the employee purchaser. The Company expects this liability will be relieved in the fourth quarter of fiscal 2018.
Other Noncurrent Liabilities
Other noncurrent liabilities consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Deferred income taxes and income taxes payable
$
117,193

 
$
99,378

Financing obligation - leased facility
198,903

 
200,711

Long-term lease liabilities and other
420,774

 
480,850

 
$
736,870

 
$
780,939

Stockholders' Equity
Stockholders' Equity
Stockholders’ Equity
The Company maintains the following stock plans: the ESPP, the 2013 Equity Incentive Plan and the 2014 Inducement Equity Incentive Plan (“2014 Inducement Plan”). The expiration of the 1999 Stock Option Plan (“1999 Plan”) in fiscal 2010 did not affect awards outstanding, which continue to be governed by the terms and conditions of the 1999 Plan.
As of October 31, 2017, $119.2 million has been withheld on behalf of employees for future purchases under the ESPP and is recorded in accounts payable, accrued expenses and other liabilities.
Prior to February 2006, options issued under the Company’s stock option plans generally had a term of 10 years. From February 1, 2006 through July 2013, options issued had a term of five years. After July 2013, options issued have a term of seven years.
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share:
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
Stock Options
2017
 
2016
 
2017
 
2016
Volatility
30.8

%
 
32.3

%
 
30.8 - 31.4

%
 
32.1 - 32.3

%
Estimated life
3.5 years

 
 
3.5 years

 
 
3.5 years

 
 
3.5 years

 
Risk-free interest rate
1.6 - 1.8

%
 
0.9 - 1.1

%
 
1.4 - 1.8

%
 
0.9 - 1.1

%
Weighted-average fair value per share of grants
$
24.12

 
 
$
18.75

 
 
$
22.26

 
 
$
18.75

 

The Company estimated its future stock price volatility considering both its observed option-implied volatilities and its historical volatility calculations. Management believes this is the best estimate of the expected volatility over the expected life of its stock options and stock purchase rights.
The estimated life for the stock options was based on an analysis of historical exercise activity. The risk-free interest rate is based on the rate for a U.S. government security with the same estimated life at the time of the option grant and the stock purchase rights.
ESPP assumptions and the related fair value per share table will only be disclosed in the three month period in which there is ESPP activity, such as an ESPP purchase. The Company's ESPP allows for two purchases during the year, one during the second quarter and one during the fourth quarter. The estimated life of the ESPP will be based on the two purchase periods within each offering period. The weighted-average fair value per share of grants was $21.13 and $21.93 for the three months ended July 31, 2017 and 2016, respectively.
The estimated forfeiture rate applied is based on historical forfeiture rates. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option pricing model.
During fiscal 2016, the Company granted a performance-based restricted stock unit award to the Chairman of the Board and Chief Executive Officer and during fiscal 2017, the Company granted performance-based restricted stock unit awards to certain executive officers, including the Chairman of the Board and Chief Executive Officer. The performance-based restricted stock unit awards are subject to vesting based on a performance-based condition and a service-based condition. At the end of the three-year service period, based on the Company's share price performance, these performance-based restricted stock units will vest in a percentage of the target number of shares between 0 and 200%, depending on the extent the performance condition is achieved.
Stock activity excluding the ESPP is as follows:
 
 
 
Options Outstanding
 
Shares
Available for
Grant
 
Outstanding
Stock
Options
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic Value (in thousands)
Balance as of January 31, 2017
16,531,822

 
30,353,076

 
$
59.88

 
 
Increase in shares authorized:
 
 
 
 
 
 
 
2013 Equity Incentive Plan
37,009,109

 
0

 
0.00

 
 
2014 Inducement Plan
16,198

 
0

 
0.00

 
 
Options granted under all plans
(1,020,046
)
 
1,020,046

 
89.01

 
 
Restricted stock activity
(2,696,029
)
 
0

 
0.00

 
 
Stock grants to board and advisory board members
(163,596
)
 
0

 
0.00

 
 
Exercised
0

 
(6,705,729
)
 
43.57

 
 
Plan shares expired
(44,309
)
 
0

 
0.00

 
 
Canceled
1,314,229

 
(1,314,229
)
 
71.92

 
 
Balance as of October 31, 2017
50,947,378

 
23,353,164

 
$
65.16

 
$
868,266

Vested or expected to vest
 
 
21,891,255

 
$
64.58

 
$
826,607

Exercisable as of October 31, 2017
 
 
10,090,058

 
$
57.62

 
$
451,210


The total intrinsic value of the options exercised during the nine months ended October 31, 2017 and 2016 was $298.7 million and $176.2 million, respectively. The intrinsic value is the difference between the current market value of the stock and the exercise price of the stock option.
The weighted-average remaining contractual life of vested and expected to vest options is approximately 5 years.
As of October 31, 2017, options to purchase 10,090,058 shares were vested at a weighted average exercise price of $57.62 per share and had a remaining weighted-average contractual life of approximately 4 years. The total intrinsic value of these vested options as of October 31, 2017 was $451.2 million.
During the nine months ended October 31, 2017, the Company recognized stock-based expense related to its equity plans for employees and non-employee directors of $759.3 million. As of October 31, 2017, the aggregate stock compensation remaining to be amortized to costs and expenses was approximately $2.0 billion. The Company will amortize this stock compensation balance as follows: $234.5 million during the remaining three months of fiscal 2018; $777.8 million during fiscal 2019; $574.4 million during fiscal 2020; $303.6 million during fiscal 2021; $42.9 million during fiscal 2022 and $25.2 million thereafter. The expected amortization reflects only outstanding stock awards as of October 31, 2017 and assumes no forfeiture activity.
The aggregate stock compensation remaining to be amortized to costs and expenses will be recognized over a weighted average period of 1.9 years.
The following table summarizes information about stock options outstanding as of October 31, 2017:
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise
Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual Life
(Years)
 
Weighted-
Average
Exercise
Price
 
Number of
Shares
 
Weighted-
Average
Exercise
Price
$0.86 to $52.30
 
4,540,787

 
4.4
 
$
35.63

 
3,693,473

 
$
41.41

$53.60 to $58.86
 
724,916

 
3.8
 
55.57

 
478,771

 
55.61

$59.34
 
4,826,489

 
4.1
 
59.34

 
3,309,418

 
59.34

$59.37 to $75.01
 
1,553,021

 
5.2
 
69.76

 
500,029

 
70.21

$75.57
 
5,576,546

 
6.0
 
75.57

 
0

 
0.00

$76.48 to $80.62
 
577,049

 
5.6
 
78.54

 
175,146

 
78.59

$80.99 to $98.90
 
5,554,356

 
5.3
 
82.48

 
1,933,221

 
80.99

 
 
23,353,164

 
5.0
 
$
65.16

 
10,090,058

 
$
57.62


Restricted stock activity is as follows:
 
Restricted Stock Outstanding
 
Outstanding
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2017
27,453,498

 
$
0.001

 
 
Granted - restricted stock units and awards
2,844,391

 
0.001

 
 
Canceled
(1,606,148
)
 
0.001

 
 
Vested and converted to shares
(6,105,427
)
 
0.001

 
 
Balance as of October 31, 2017
22,586,314

 
$
0.001

 
$
2,311,483

Expected to vest
19,722,393

 
 
 
$
2,018,390


The restricted stock, which upon vesting entitles the holder to one share of common stock for each share of restricted stock, has an exercise price of $0.001 per share, which is equal to the par value of the Company’s common stock, and generally vests over four years.
The weighted-average grant date fair value of the restricted stock issued for the nine months ended October 31, 2017 and 2016 was $89.04 and $76.90, respectively.
Common Stock
The following number of shares of common stock were reserved and available for future issuance at October 31, 2017:
Options outstanding
23,353,164

Restricted stock awards and units and performance stock units outstanding
22,586,314

Stock available for future grant:
 
2013 Equity Incentive Plan
50,316,168

2014 Inducement Plan
520,478

Amended and Restated 2004 Employee Stock Purchase Plan
9,629,807

Acquired equity plans
110,732

Convertible Senior Notes
17,308,564

Warrants
17,308,880

 
141,134,107

Income Taxes
Income Taxes
Income Taxes
Effective Tax Rate
The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year to date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the nine months ended October 31, 2017, the Company reported a tax provision of $54.0 million on a pretax income of $113.9 million, which resulted in an effective tax rate of 47 percent. The Company recorded year-to-date tax provision primarily from profitable jurisdictions outside of the United States.
The Company regularly assesses the realizability of the deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some or all of the Company's deferred tax assets will not be realized. The Company evaluates and weighs all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence. The Company will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions going forward. The Company will adjust its valuation allowance in the event sufficient positive evidence overcomes the negative evidence of losses in recent years, for example, if the trend in increasing annual taxable income continues.
For the nine months ended October 31, 2016, the Company reported a tax benefit of $182.2 million on a pretax income of $48.9 million, which resulted in a negative effective tax rate of 373 percent. The most significant component of this tax amount was the discrete tax benefit of $205.6 million from a partial release of the valuation allowance in connection with the acquisition of Demandware. The net deferred tax liability from the acquisition of Demandware provided a source of additional income to support the realizability of the Company's pre-existing deferred tax assets and as a result, the Company released a portion of its valuation allowance. The tax benefit associated with the release of the valuation allowance was partially offset by income taxes in profitable jurisdictions outside of the United States.
Tax Benefits Related to Stock-Based Compensation
The income tax benefit related to stock-based compensation was $206.8 million and $161.4 million for the nine months ended October 31, 2017 and 2016, respectively, the majority of which was not recognized as a result of the valuation allowance.
Unrecognized Tax Benefits and Other Considerations
The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, France, United Kingdom and Germany. In March 2017, the Company received the final notice of proposed adjustments primarily related to transfer pricing issues from the Internal Revenue Service ("IRS") for fiscal 2011 and fiscal 2012. Accordingly, the Company re-assessed and adjusted its reserves, which resulted in a net immaterial impact to the tax provision due to its valuation allowance. The Company is currently appealing the IRS proposed adjustments. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. Generally, any adjustments resulting from the U.S. audits should not have a significant impact to the Company's tax provision due to its valuation allowance. In addition, the Company anticipates it is reasonably possible that a decrease of unrecognized tax benefits up to approximately $6.8 million may occur in the next 12 months, as the applicable statutes of limitations lapse.
Earnings Per Share
Earnings Per Share
Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock, including options, restricted stock units, warrants and the convertible senior notes. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.
A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
51,394

 
$
(37,309
)
 
$
59,923

 
$
231,072

Denominator:
 
 
 
 
 
 
 
Weighted-average shares outstanding for basic earnings (loss) per share
717,445

 
690,468

 
711,884

 
683,075

Effect of dilutive securities:
 
 
 
 
 
 
 
Convertible senior notes
5,162

 
0

 
4,571

 
1,994

Employee stock awards
14,717

 
0

 
13,235

 
11,188

Warrants
782

 
0

 
522

 
0

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share
738,106

 
690,468

 
730,212

 
696,257


The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Employee stock awards
1,355

 
17,946

 
9,239

 
8,640

Convertible senior notes
0

 
17,309

 
0

 
0

Warrants
0

 
17,309

 
0

 
17,309

Commitments
Commitments
Commitments
Letters of Credit
As of October 31, 2017, the Company had a total of $96.6 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through December 2030.
Leases
The Company leases facilities space and certain fixed assets under non-cancelable operating and capital leases with various expiration dates.
As of October 31, 2017, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in thousands):
 
Capital
Leases
 
Operating
Leases
 
Financing Obligation -Leased Facility (1)
Fiscal Period:
 
 
 
 
 
Remaining three months of Fiscal 2018
$
22,974

 
$
152,711

 
$
5,433

Fiscal 2019
115,830

 
575,237

 
21,881

Fiscal 2020
201,616

 
503,390

 
22,325

Fiscal 2021
73

 
368,148

 
22,770

Fiscal 2022
37

 
282,804

 
23,214

Thereafter
3

 
1,408,213

 
210,713

Total minimum lease payments
340,533

 
$
3,290,503

 
$
306,336

Less: amount representing interest
(23,384
)
 

 

Present value of capital lease obligations
$
317,149

 

 

______________ 
(1) Total Financing Obligation - Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest and the implied lease for the land as noted in Note 5 “Property and Equipment.” As of October 31, 2017, $218.8 million of the total $306.3 million above was recorded to Financing obligation leased facility, of which the current portion is included in "Accounts payable, accrued expenses and other liabilities" and the noncurrent portion is included in “Other noncurrent liabilities” on the consolidated balance sheets.
The Company’s agreements for the facilities and certain services provide the Company with the option to renew. The Company’s future contractual obligations would change if the Company exercised these options.
The terms of the lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Of the total operating lease commitment balance of $3.3 billion, approximately $2.7 billion is related to facilities space. The remaining commitment amount is related to computer equipment and furniture and fixtures.
Other Purchase Commitments
In April 2016, the Company entered into an agreement with a third-party provider for certain infrastructure services for a period of four years. The Company paid $96.0 million in connection with this agreement during the nine months ended October 31, 2017. The agreement further provides that the Company will pay an additional $108.0 million in fiscal 2019 and $126.0 million in fiscal 2020.
Legal Proceedings and Claims
Legal Proceedings and Claims
Legal Proceedings and Claims
In the ordinary course of business, the Company is or may be involved in various legal proceedings and claims related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, class actions, wage and hour, and other claims. The Company has been, and may in the future be put on notice and/or sued by third-parties for alleged infringement of their proprietary rights, including patent infringement.
In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s operating results.
The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter.
In September 2013, one of the Company’s subsidiaries, ExactTarget, Inc. (“ExactTarget”), was added as a defendant in a purported class-action lawsuit that alleged that ExactTarget and one of its customers, Simply Fashion Stores, Ltd. (“Simply Fashion”), violated the Telephone Consumer Protection Act (“TCPA”) as a result of Simply Fashion’s text messaging campaigns and alleged failure to opt-out certain Simply Fashion customers from receiving messages. The complaint was subsequently amended to remove Simply Fashion as a defendant and the lawsuit is currently before the United States District Court for the Southern District of Indiana. The complaint seeks statutory damages and injunctive relief. While disputing the allegations of wrongdoing, the Company has reached a settlement of the lawsuit for approximately $6.3 million. The parties have submitted the settlement agreement to the Court for approval.
Related-Party Transactions
Related-Party Transactions
Related-Party Transactions
In January 1999, the Salesforce.com Foundation, also referred to as the Foundation, was chartered on an idea of leveraging the Company’s people, technology, and resources to help improve communities around the world. The Company calls this integrated philanthropic approach the 1-1-1 model. Beginning in 2008, Salesforce.org, which is a non-profit public benefit corporation, was established to resell the Company's services to nonprofit organizations and certain higher education organizations.
The Company’s Chairman is the chairman of both the Foundation and Salesforce.org. The Company’s Chairman holds one of the three Foundation board seats. The Company’s Chairman, one of the Company’s employees and one of the Company’s board members hold three of Salesforce.org’s nine board seats. The Company does not control the Foundation’s or Salesforce.org's activities, and accordingly, the Company does not consolidate either of the related entities' statement of activities with its financial results.
Since the Foundation’s and Salesforce.org’s inception, the Company has provided at no charge certain resources to those entities' employees such as office space, furniture, equipment, facilities, services, and other resources. The value of these items was approximately $7.4 million for the nine months ended October 31, 2017.
Additionally, the Company allows Salesforce.org to donate subscriptions of the Company’s services to other qualified non-profit organizations. The Company also allows Salesforce.org to resell the Company’s service to non-profit organizations and certain education entities. The Company does not charge Salesforce.org for these subscriptions, therefore income from subscriptions sold to non-profit organizations is donated back to the community through charitable grants made by the Foundation and Salesforce.org. The value of the subscriptions sold by Salesforce.org pursuant to the reseller agreement, as amended, was approximately $129.7 million for the nine months ended October 31, 2017.
Summary of Business and Significant Accounting Policies (Policies)
Fiscal Year 
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2018, for example, refer to the fiscal year ending January 31, 2018.
Basis of Presentation 
Basis of Presentation
The accompanying consolidated balance sheet as of October 31, 2017 and the consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of cash flows for the three and nine months ended October 31, 2017 and 2016, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2017, and its results of operations, including its comprehensive income (loss), and its cash flows for the three and nine months ended October 31, 2017 and 2016. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2017 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2018.
These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2017.
Use of Estimates 
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•
the best estimate of selling price of the deliverables included in multiple deliverable revenue arrangements;
•
the fair value of assets acquired and liabilities assumed for business combinations;
•
the recognition, measurement and valuation of current and deferred income taxes;
•
the fair value of certain stock awards issued;
•
the useful lives of intangible assets, property and equipment and building and structural components; and
•
the valuation of strategic investments and the determination of other-than-temporary impairments.
Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Principles of Consolidation 
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments 
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. Over the past few years, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the majority of the Company's offerings operate on a single platform and are deployed in an identical way, and the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
Concentrations of Credit Risk and Significant Customers 
Concentrations of Credit Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. In addition, in connection with the Company's 0.25% Senior Notes (as defined in Note 8 "Debt"), which were issued in March 2013, the Company entered into convertible note hedge transactions with respect to its common stock, which are exposed to concentrations of credit risk. Collateral is not required for accounts receivable or the note hedge transactions. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against its recorded allowance when the Company has exhausted collection efforts without success.
Revenue Recognition 
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management, implementation services and other revenue. Other revenue consists primarily of training fees.
The Company commences revenue recognition when all of the following conditions are satisfied:
•
there is persuasive evidence of an arrangement;
•
the service has been or is being provided to the customer;
•
the collection of the fees is reasonably assured; and
•
the amount of fees to be paid by the customer is fixed or determinable.
The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and Support Revenues
Subscription and support revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers.
Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, when the milestones are achieved and accepted by the customer or on a proportional performance basis for fixed price contracts and ratably over the contract term for subscription professional services contracts. The milestone method for revenue recognition is used when there is substantive uncertainty at the date the contract is entered into whether the milestone will be achieved. Training revenues are recognized as the services are performed.
Multiple Deliverable Arrangements
The Company enters into arrangements with multiple deliverables that generally include multiple subscriptions, premium support and professional services. If the deliverables have standalone value at contract inception, the Company accounts for each deliverable separately. Subscription services have standalone value as such services are often sold separately. In determining whether professional services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value.
Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price (“VSOE”), if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any.
For certain professional services, the Company has established VSOE as a consistent number of standalone sales of these deliverables have been priced within a reasonably narrow range. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription services.
The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP.
Deferred Revenue 
Deferred Revenue
The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in annual installments. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
Deferred Commissions 
Deferred Commissions
Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force.
The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts, which are typically 12 to 36 months. The commission payments are paid in full the month after the customer’s service commences and are a direct and incremental cost of the revenue arrangements. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the non-cancelable customer contracts that they should be recorded as an asset and charged to expense over the same period that the subscription revenue is recognized. Amortization of deferred commissions is included in marketing and sales expense in the accompanying consolidated statements of operations.
Cash and Cash Equivalents 
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities 
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of investment income.
Strategic Investments 
Strategic Investments
The Company holds certain marketable equity and non-marketable debt and equity securities within its strategic investments portfolio. Marketable equity securities are measured using quoted prices in their respective active markets, non-marketable debt securities are recorded at their estimated fair value and the non-marketable equity securities are recorded at cost.
Marketable equity securities and non-marketable debt securities, which consist of noncontrolling debt investments in privately held companies, are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income. Equity investments without readily determinable fair values for which the Company does not have the ability to exercise significant influence are accounted for using the cost method of accounting. Under the cost method of accounting, the non-marketable securities are carried at cost and are adjusted only for other-than-temporary impairments, certain distributions and additional investments. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. Fair value is not estimated for non-marketable equity securities if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment.
The carrying value of the Company’s strategic investments is impacted by various events such as entering into new investments, dispositions due to acquisitions, fair market value adjustments or initial public offerings. The cash inflows from exits and cash outflows for new investments are disclosed as strategic investments within the investing activities section of the statement of cash flows and any gains or losses are recorded within the operating activities of the statements of cash flows for each of the respective fiscal quarter periods. 
Derivative Financial Instruments 
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk. The Company uses forward currency derivative contracts to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Japanese Yen, Canadian Dollar and Australian Dollar. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. As of October 31, 2017 and January 31, 2017, the foreign currency derivative contracts that were not settled were recorded at fair value on the consolidated balance sheets.
Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties.
Fair Value Measurement 
Fair Value Measurement
The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.”
Property and Equipment 
Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building - leased facility
27 years
Building improvements
10 years

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Capitalized Software Costs 
Capitalized Software Costs
The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Intangible Assets acquired through Business Combinations 
Intangible Assets acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment 
Impairment Assessment
The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
There was no impairment of intangible assets, long-lived assets or goodwill during the three and nine months ended October 31, 2017 and 2016.
Business Combinations 
Business Combinations
The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will recognize a gain or loss to settle that relationship as of the acquisition date, which is recorded in other income (expense) within the statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and disclosed separately within the statements of operations.
Leases and Asset Retirement Obligations 
Leases and Asset Retirement Obligations
The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense.
In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease.
The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other income (expense).
Accounting for Stock-Based Expense 
Accounting for Stock-Based Expense
The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months.
Stock-based expenses related to performance share grants are measured based on grant date fair value and expensed on a straight-line basis over the service period of the awards, which is generally the vesting term of three years.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based expense. The Company recognizes stock-based expense equal to the grant date fair value of the restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally four years. 
Income Taxes 
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation 
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in Other income (expense) in the consolidated statements of operations for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.
Warranties and Indemnification 
Warranties and Indemnification
The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
New Accounting Pronouncements Adopted and Pending Adoption 
New Accounting Pronouncements Adopted in Fiscal 2018
In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2017-01, "Business Combinations (Topic 805) Clarifying the Definition of a Business" ("ASU 2017-01") which amended the existing FASB Accounting Standards Codification. The standard provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for fiscal 2019 with early adoption permitted. The Company early adopted the standard in the first quarter of fiscal 2018 on a prospective basis. Since the Company has not acquired any material businesses since the start of the year, this standard has had no impact on the Company's financial statements.
In May 2017, the FASB issued Accounting Standards Update No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09") which amended the existing FASB Accounting Standards Codification. The standard provides clarity and reduces the cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for fiscal 2019 with early adoption permitted. The Company early adopted the standard in the second quarter of fiscal 2018 on a prospective basis and does not expect it to have any impact on the Company's financial statements.
Accounting Pronouncements Pending Adoption
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which amended the existing FASB Accounting Standards Codification, replaces existing revenue recognition guidance with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. ASU 2014-09, as amended, will be effective as of the beginning of fiscal 2019, including interim periods within that reporting period.
The Company plans to adopt the standard using the full retrospective method to restate each prior reporting period presented.
The Company is continuing to assess the impact of adopting ASU 2014-09 on its financial position, results of operations and related disclosures and has concluded that the impact to the opening balance sheet as of February 1, 2016, due to the adjustment of revenues, is not material. The Company has not yet determined whether the impact on revenues will be material for the adjusted statements of operations or for future periods. Additionally, as the Company continues to assess the new standard along with industry trends and additional interpretive guidance, the Company may adjust its implementation plan accordingly.
The Company believes that the new standard will impact the following policies and disclosures:
•
removal of the current limitation on contingent revenue will result in revenue being recognized earlier for certain contracts;
•
allocation of subscription and support revenue across different clouds and to professional services revenue;
•
estimation of variable consideration for arrangements with overage fees;
•
required disclosures including information about the remaining transaction price and when the Company expects to recognize revenue; and
•
accounting for deferred commissions including costs that qualify for deferral and the amortization period.
The commission accounting under the new standard is significantly different than the Company's current commission capitalization policy, as it will require the Company to capitalize more costs and amortize them over a longer period of time. Under the Company's current policy, the Company only capitalizes commissions that have a direct relationship to a specific revenue contract and the cost is deemed to be incremental. Under the new standard, the concept of what must be capitalized is significantly broader since a direct relationship with a revenue contract is not required. Accordingly, the new standard will result in additional types of costs being capitalized, including fringe benefits and taxes. Additionally, all amounts capitalized will be amortized over a period longer than the Company's current policy of amortizing the deferred amounts over the specific revenue contract terms, which are typically 12 to 36 months. Specifically, initial incremental contract costs will be deferred and amortized over an estimated customer life of four years, which is calculated based on both qualitative and quantitative factors, such as product life cycles and customer attrition. While the Company has not yet finalized its assessment of the impact the new commission accounting policy will have on its financial position and results of operations, the Company believes it will be material to both its balance sheet and statement of operations due to the capitalization of additional costs and the longer period of amortization.
The Company does not expect the adoption of ASU 2014-09 to have any impact on its operating cash flows.
In January 2016, the FASB issued Accounting Standards Update No. 2016-01, "Financial Instrument-Overall (Subtopic 825-10)" ("ASU 2016-01"), which requires entities to measure equity instruments at fair value and recognize any changes in fair value in other income (expense) within the statement of operations. Under the new standard, the Company will record its publicly traded equity investments at fair value on a quarterly basis and record the change in other income (expense) within the statement of operations. Previously, such adjustments were recorded in other comprehensive income. The guidance provides for electing the measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company plans to elect the measurement alternative for its equity investments in privately held companies. These investments will be measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which are recorded in other income (expense) within the statement of operations. The new standard is effective as of the beginning of fiscal 2019, including interim periods within that reporting period, on a prospective basis for nonmarketable equity securities and a modified retrospective basis for publicly held equity investments. The Company expects the adoption of ASU 2016-01 will impact its strategic investments portfolio, which consists of approximately $100.3 million in publicly traded equity investments and $516.6 million in privately held equity investments, as of October 31, 2017, both of which are recorded in strategic investments within the balance sheet. Refer to Note 2, "Investments," for additional details. The new standard could have a material impact to the Company's consolidated financial statements, including additional volatility to other income (expense) within the Company's statements of operations in future periods, due to changes in market prices of the Company's investments in publicly held equity investments and the valuation and timing of same or similar transactions of the Company's investments in privately held equity investments.
In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The new standard is effective for annual periods beginning after December 15, 2017, with early adoption permitted as of the beginning of a fiscal year. The Company plans to adopt the new standard in its first quarter of fiscal 2019 and does not expect it to have a material impact on its consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of operations in a manner similar to current accounting rules. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 on a modified retrospective basis. The Company is in the process of implementing changes to its systems, processes and controls, in conjunction with its review of existing lease agreements, in order to adopt the new standard in its first quarter of fiscal 2020. The Company expects its leases designated as operating leases in Note 13, “Commitments,” will be reported on the consolidated balance sheets upon adoption. The Company is currently evaluating the impact to its consolidated financial statements as it relates to other aspects of the business.
Reclassifications 
Reclassifications
Certain reclassifications to fiscal 2017 balances were made to conform to the current period presentation in the consolidated balance sheets, consolidated statement of operations and consolidated statements of cash flows. These reclassifications include cost of revenues-subscription and support, cost of revenues-professional services and other, deferred revenue, deferred revenue, noncurrent, and purchases and sales of strategic investments.
Summary of Business and Significant Accounting Policies (Tables)
Revenues By Geographical Region 
Revenues by geographical region are as follows (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Americas
$
1,927,405

 
$
1,598,344

 
$
5,536,932

 
$
4,506,774

Europe
493,732

 
337,497

 
1,367,718

 
1,012,671

Asia Pacific
258,704

 
208,934

 
724,359

 
578,551

 
$
2,679,841


$
2,144,775


$
7,629,009

 
$
6,097,996

Schedule Of Property And Equipment Estimated Useful Lives 
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building - leased facility
27 years
Building improvements
10 years
Investments (Tables)
Schedule of Marketable Securities 
At October 31, 2017, marketable securities consisted of the following (in thousands):
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
939,959

 
$
2,246

 
$
(2,435
)
 
$
939,770

U.S. treasury securities
137,172

 
29

 
(491
)
 
136,710

Mortgage backed obligations
98,226

 
22

 
(532
)
 
97,716

Asset backed securities
202,180

 
96

 
(219
)
 
202,057

Municipal securities
56,387

 
81

 
(201
)
 
56,267

Foreign government obligations
68,845

 
2

 
(524
)
 
68,323

U.S. agency obligations
10,506

 
1

 
(9
)
 
10,498

Covered bonds
45,485

 
63

 
(61
)
 
45,487

Total marketable securities
$
1,558,760


$
2,540


$
(4,472
)

$
1,556,828

At January 31, 2017, marketable securities consisted of the following (in thousands):
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
321,284

 
$
887

 
$
(1,531
)
 
$
320,640

U.S. treasury securities
62,429

 
68

 
(674
)
 
61,823

Mortgage backed obligations
74,882

 
39

 
(669
)
 
74,252

Asset backed securities
101,913

 
74

 
(197
)
 
101,790

Municipal securities
33,523

 
35

 
(183
)
 
33,375

Foreign government obligations
10,491

 
3

 
(36
)
 
10,458

Total marketable securities
$
604,522


$
1,106


$
(3,290
)

$
602,338

Schedule of Short-Term and Long-Term Marketable Securities 
The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Due within 1 year
$
226,929

 
$
104,631

Due in 1 year through 5 years
1,314,352

 
494,127

Due in 5 years through 10 years
15,547

 
3,580

 
$
1,556,828

 
$
602,338

Schedule of Marketable Securities in a Unrealized Loss Position 
As of October 31, 2017, the following marketable securities were in an unrealized loss position (in thousands):
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate notes and obligations
$
424,101

 
$
(2,052
)
 
$
28,653

 
$
(383
)
 
$
452,754

 
$
(2,435
)
U.S. treasury securities
114,724

 
(491
)
 
0

 
0

 
114,724

 
(491
)
Mortgage backed obligations
68,841

 
(315
)
 
16,564

 
(217
)
 
85,405

 
(532
)
Asset backed securities
126,186

 
(210
)
 
3,461

 
(9
)
 
129,647

 
(219
)
Municipal securities
30,671

 
(148
)
 
2,788

 
(53
)
 
33,459

 
(201
)
Foreign government obligations
62,697

 
(520
)
 
1,027

 
(4
)
 
63,724

 
(524
)
U.S. agency obligations
6,746

 
(9
)
 
0

 
0

 
6,746

 
(9
)
Covered bonds
5,861

 
(61
)
 
0

 
0

 
5,861

 
(61
)
 
$
839,827

 
$
(3,806
)
 
$
52,493

 
$
(666
)
 
$
892,320

 
$
(4,472
)
Schedule of Components of Investment Income 
The components of investment income are presented below (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Interest income
$
10,038

 
$
3,642

 
$
24,433

 
$
17,961

Realized gains
258

 
210

 
770

 
7,771

Realized losses
(247
)
 
(143
)
 
(1,134
)
 
(1,985
)
Total investment income
$
10,049

 
$
3,709

 
$
24,069

 
$
23,747

Derivatives (Tables)
Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables 
Details on outstanding foreign currency derivative contracts are presented below (in thousands):
 
As of
 
October 31, 2017
 
January 31, 2017
Notional amount of foreign currency derivative contracts
$
1,275,276

 
$
1,280,953

Fair value of foreign currency derivative contracts
$
853

 
$
10,205

Fair Value of Outstanding Derivative Instruments 
The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in thousands):
 
 
As of
  
Balance Sheet Location
October 31, 2017
 
January 31, 2017
Derivative Assets
 
 
 
 
Foreign currency derivative contracts
Prepaid expenses and other current assets
$
4,225

 
$
13,238

Derivative Liabilities
 
 
 
 
Foreign currency derivative contracts
Accounts payable, accrued expenses and other liabilities
$
3,372

 
$
3,033

Schedule of The Effect of The Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations 
Gains/losses on derivative instruments not designated as hedging instruments recorded in Other income (expense) in the consolidated statements of operations during the three and nine months ended October 31, 2017 and 2016, respectively, are summarized below (in thousands):
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
 
2017
 
2016
 
2017
 
2016
Foreign currency derivative contracts
$
(1,606
)
 
$
(39,624
)
 
$
11,500

 
$
(86,528
)
Fair Value Measurement (Tables)
Schedule of Assets and Liabilities Measured at Fair Value an a Recurring Basis
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of October 31, 2017 and indicates the fair value hierarchy of the valuation (in thousands):
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of October 31, 2017
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
394,123

 
$
0

 
$
394,123

Money market mutual funds
805,554

 
0

 
0

 
805,554

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
939,770

 
0

 
939,770

U.S. treasury securities
0

 
136,710

 
0

 
136,710

Mortgage backed obligations
0

 
97,716

 
0

 
97,716

Asset backed securities
0

 
202,057

 
0

 
202,057

Municipal securities
0

 
56,267

 
0

 
56,267

Foreign government obligations
0

 
68,323

 
0

 
68,323

U.S. agency obligations
0

 
10,498

 
0

 
10,498

Covered bonds
0

 
45,487

 
0

 
45,487

Foreign currency derivative contracts (2)
0

 
4,225

 
0

 
4,225

Total assets
$
805,554

 
$
1,955,176

 
$
0

 
$
2,760,730

Liabilities:
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
0

 
3,372

 
0

 
3,372

Total liabilities
$
0

 
$
3,372

 
$
0

 
$
3,372

___________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of October 31, 2017, in addition to $872.2 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of October 31, 2017.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of October 31, 2017.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2017 and indicates the fair value hierarchy of the valuation (in thousands):
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable Inputs (Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of
January 31, 2017
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
25,100

 
$
0

 
$
25,100

Money market mutual funds
956,479

 
0

 
0

 
956,479

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
320,640

 
0

 
320,640

U.S. treasury securities
0

 
61,823

 
0

 
61,823

Mortgage backed obligations
0

 
74,252

 
0

 
74,252

Asset backed securities
0

 
101,790

 
0

 
101,790

Municipal securities
0

 
33,375

 
0

 
33,375

Foreign government obligations
0

 
10,458

 
0

 
10,458

Foreign currency derivative contracts (2)
0

 
13,238

 
0

 
13,238

Total assets
$
956,479

 
$
640,676

 
$
0

 
$
1,597,155

Liabilities:
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
0

 
3,033

 
0

 
3,033

Total liabilities
$
0

 
$
3,033

 
$
0

 
$
3,033

______________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2017, in addition to $625.0 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2017.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of January 31, 2017.
Property and Equipment (Tables)
Schedule of Property And Equipment
Property and equipment, net consisted of the following (in thousands):
 
As of
 
October 31, 2017
 
January 31, 2017
Land
$
183,888

 
$
183,888

Buildings and building improvements
626,168

 
621,377

Computers, equipment and software
1,600,783

 
1,440,986

Furniture and fixtures
132,374

 
112,564

Leasehold improvements
776,396

 
627,069

 
3,319,609

 
2,985,884

Less accumulated depreciation and amortization
(1,454,718
)
 
(1,198,350
)
 
$
1,864,891

 
$
1,787,534

Intangible Assets Acquired Through Business Combinations and Goodwill (Tables)
Intangible Assets Acquired From Business Combinations 
Intangible assets acquired through business combinations are as follows (in thousands):
 
Intangible Assets, Gross
 
Accumulated Amortization
 
Intangible Assets, Net
 
Weighted
Average
Remaining Useful Life
 
Jan 31, 2017
 
Additions
 
Oct. 31, 2017
 
Jan 31, 2017
 
Expense
 
Oct. 31, 2017
 
Jan 31, 2017
 
Oct. 31, 2017
 
Acquired developed technology
$
1,092,161

 
$
0

 
$
1,092,161

 
$
(577,929
)
 
$
(125,886
)
 
$
(703,815
)
 
$
514,232

 
$
388,346

 
3.0
Customer relationships
843,614

 
1,690

 
845,304

 
(254,035
)
 
(89,769
)
 
(343,804
)
 
589,579

 
501,500

 
4.7
Trade names and trademarks
45,950

 
0

 
45,950

 
(41,349
)
 
(1,530
)
 
(42,879
)
 
4,601

 
3,071

 
1.6
Territory rights and other
15,786

 
0

 
15,786

 
(12,256
)
 
(996
)
 
(13,252
)
 
3,530

 
2,534

 
8.3
50 Fremont lease intangibles
7,713

 
0

 
7,713

 
(6,281
)
 
(1,115
)
 
(7,396
)
 
1,432

 
317

 
0.3
Total
$
2,005,224

 
$
1,690

 
$
2,006,914

 
$
(891,850
)
 
$
(219,296
)
 
$
(1,111,146
)
 
$
1,113,374

 
$
895,768

 
3.9
Expected Future Amortization Expense for Purchased Intangible Assets 
The expected future amortization expense for intangible assets as of October 31, 2017 is as follows (in thousands):
Fiscal Period:
 
 
Remaining three months of Fiscal 2018
 
$
69,053

Fiscal 2019
 
266,233

Fiscal 2020
 
225,039

Fiscal 2021
 
169,481

Fiscal 2022
 
111,353

Thereafter
 
54,609

Total amortization expense
 
$
895,768

Schedule of Goodwill 
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in thousands):
Balance as of January 31, 2017
 
$
7,263,846

Sequence, Inc. acquisition
 
22,982

Adjustments of acquisition date fair values, including the effect of foreign currency translation
 
7,313

Balance as of October 31, 2017
 
$
7,294,141

Debt (Tables)
Summary of Convertible Senior Notes 
Certain terms of the conversion features of the 0.25% Senior Notes are as follows:
 
Conversion
Rate per $1,000
Par Value
 
Initial Conversion Price per Share
 
Convertible Date
0.25% Senior Notes
15.0512

 
$
66.44

 
January 1, 2018
Convertible Senior Notes
  
Par Value Outstanding
 
Equity
Component Recorded at Issuance
 
Liability Component of Par Value as of
(in thousands)
October 31,
2017
 
January 31,
2017
0.25% Convertible Senior Notes due April 1, 2018
$
1,149,979

 
$
122,421

(1)
$
1,137,954

 
$
1,116,360

___________ 
(1)This amount represents the equity component recorded at the initial issuance of the 0.25% convertible senior notes. As of October 31, 2017, $10.8 million was reclassified to temporary equity on the accompanying consolidated balance sheet as these notes are convertible for the three months ending October 31, 2017 based on the conversion criteria below.
Schedule of Convertible Senior Notes 
The 0.25% Senior Notes consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Liability component:
 
 
 
Principal (1)
$
1,149,979

 
$
1,150,000

Less: debt discount, net (2)
(10,797
)
 
(29,954
)
Less: debt issuance cost
(1,228
)
 
(3,686
)
Net carrying amount
$
1,137,954

 
$
1,116,360

(1)The effective interest rate of the 0.25% Senior Notes is 2.53%. The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature.
(2)Included in the consolidated balance sheets within Convertible 0.25% Senior Notes (which is classified as a current liability as of October 31, 2017 and a noncurrent liability as of January 31, 2017) and is amortized over the life of the 0.25% Senior Notes using the effective interest rate method.
Summary of Hedge Notes 
To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions with respect to its common stock (“0.25% Note Hedges”).
(in thousands, except for shares)
Date
 
Purchase
 
Shares
0.25% Note Hedges
March 2013
 
$
153,800

 
17,308,880

Components of Warrants 
Warrants
 
Date
 
Proceeds
(in thousands)
 
Shares
 
Strike
Price
0.25% Warrants
March 2013
 
$
84,800

 
17,308,880

 
$
90.40

Schedule of Interest Expense 
The following table sets forth total interest expense recognized related to the 0.25% Senior Notes, the Term Loan, the Credit Facility and the Loan (in thousands):
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Contractual interest expense
$
5,766

 
$
5,207

 
$
17,044

 
$
11,398

Amortization of debt issuance costs
1,332

 
1,342

 
3,996

 
4,071

Amortization of debt discount
6,463

 
6,304

 
19,269

 
18,794

 
$
13,561

 
$
12,853

 
$
40,309

 
$
34,263

Other Balance Sheet Accounts (Tables)
Schedule of Prepaid Expenses and Other Current Assets 
Prepaid expenses and other current assets consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Prepaid income taxes
$
43,301

 
$
26,932

Other taxes receivable
33,099

 
34,177

Prepaid expenses and other current assets
393,546

 
218,418

 
$
469,946

 
$
279,527


Schedule of Other Assets 
Other assets consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Deferred income taxes, noncurrent, net
$
31,596

 
$
28,939

Long-term deposits
23,979

 
23,597

Domain names and patents, net
26,811

 
39,213

Customer contract assets (1)
201,357

 
281,733

Other
141,145

 
113,387

 
$
424,888

 
$
486,869

(1) Customer contract asset reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date.
Schedule of Accrued Expenses and Other Current Liabilities 
Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Accounts payable
$
120,019

 
$
115,257

Accrued compensation
622,419

 
730,390

Non-cash equity liability (1)
49,435

 
68,355

Accrued other liabilities
488,071

 
419,299

Accrued income and other taxes payable
193,693

 
239,699

Accrued professional costs
44,757

 
38,254

Accrued rent
33,968

 
19,710

Capital lease obligation, current
114,147

 
102,106

Financing obligation - leased facility, current
19,899

 
19,594

 
$
1,686,408

 
$
1,752,664


(1) Non-cash equity liability represents the purchase price of shares issued to non-executive employees, for those shares exceeding previously registered ESPP shares at the time of sale to the extent the shares had not been subsequently sold by the employee purchaser. The Company expects this liability will be relieved in the fourth quarter of fiscal 2018.
Schedule of Other Noncurrent Liabilities 
Other noncurrent liabilities consisted of the following (in thousands):
 
As of
 
October 31,
2017
 
January 31,
2017
Deferred income taxes and income taxes payable
$
117,193

 
$
99,378

Financing obligation - leased facility
198,903

 
200,711

Long-term lease liabilities and other
420,774

 
480,850

 
$
736,870

 
$
780,939

Stockholders' Equity (Tables)
Schedule Of Assumptions Used To Calculate Fair Value Of Options Granted 
The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share:
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
 October 31,
Stock Options
2017
 
2016
 
2017
 
2016
Volatility
30.8

%
 
32.3

%
 
30.8 - 31.4

%
 
32.1 - 32.3

%
Estimated life
3.5 years

 
 
3.5 years

 
 
3.5 years

 
 
3.5 years

 
Risk-free interest rate
1.6 - 1.8

%
 
0.9 - 1.1

%
 
1.4 - 1.8

%
 
0.9 - 1.1

%
Weighted-average fair value per share of grants
$
24.12

 
 
$
18.75

 
 
$
22.26

 
 
$
18.75

 

Schedule Of Stock Activity 
Stock activity excluding the ESPP is as follows:
 
 
 
Options Outstanding
 
Shares
Available for
Grant
 
Outstanding
Stock
Options
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic Value (in thousands)
Balance as of January 31, 2017
16,531,822

 
30,353,076

 
$
59.88

 
 
Increase in shares authorized:
 
 
 
 
 
 
 
2013 Equity Incentive Plan
37,009,109

 
0

 
0.00

 
 
2014 Inducement Plan
16,198

 
0

 
0.00

 
 
Options granted under all plans
(1,020,046
)
 
1,020,046

 
89.01

 
 
Restricted stock activity
(2,696,029
)
 
0

 
0.00

 
 
Stock grants to board and advisory board members
(163,596
)
 
0

 
0.00

 
 
Exercised
0

 
(6,705,729
)
 
43.57

 
 
Plan shares expired
(44,309
)
 
0

 
0.00

 
 
Canceled
1,314,229

 
(1,314,229
)
 
71.92

 
 
Balance as of October 31, 2017
50,947,378

 
23,353,164

 
$
65.16

 
$
868,266

Vested or expected to vest
 
 
21,891,255

 
$
64.58

 
$
826,607

Exercisable as of October 31, 2017
 
 
10,090,058

 
$
57.62

 
$
451,210

Schedule Of Stock Options Outstanding 
The following table summarizes information about stock options outstanding as of October 31, 2017:
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise
Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual Life
(Years)
 
Weighted-
Average
Exercise
Price
 
Number of
Shares
 
Weighted-
Average
Exercise
Price
$0.86 to $52.30
 
4,540,787

 
4.4
 
$
35.63

 
3,693,473

 
$
41.41

$53.60 to $58.86
 
724,916

 
3.8
 
55.57

 
478,771

 
55.61

$59.34
 
4,826,489

 
4.1
 
59.34

 
3,309,418

 
59.34

$59.37 to $75.01
 
1,553,021

 
5.2
 
69.76

 
500,029

 
70.21

$75.57
 
5,576,546

 
6.0
 
75.57

 
0

 
0.00

$76.48 to $80.62
 
577,049

 
5.6
 
78.54

 
175,146

 
78.59

$80.99 to $98.90
 
5,554,356

 
5.3
 
82.48

 
1,933,221

 
80.99

 
 
23,353,164

 
5.0
 
$
65.16

 
10,090,058

 
$
57.62

Schedule Of Restricted Stock Activity 
Restricted stock activity is as follows:
 
Restricted Stock Outstanding
 
Outstanding
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2017
27,453,498

 
$
0.001

 
 
Granted - restricted stock units and awards
2,844,391

 
0.001

 
 
Canceled
(1,606,148
)
 
0.001

 
 
Vested and converted to shares
(6,105,427
)
 
0.001

 
 
Balance as of October 31, 2017
22,586,314

 
$
0.001

 
$
2,311,483

Expected to vest
19,722,393

 
 
 
$
2,018,390

Schedule Of Shares Of Common Stock Available For Future Issuance Under Stock Option Plans 
The following number of shares of common stock were reserved and available for future issuance at October 31, 2017:
Options outstanding
23,353,164

Restricted stock awards and units and performance stock units outstanding
22,586,314

Stock available for future grant:
 
2013 Equity Incentive Plan
50,316,168

2014 Inducement Plan
520,478

Amended and Restated 2004 Employee Stock Purchase Plan
9,629,807

Acquired equity plans
110,732

Convertible Senior Notes
17,308,564

Warrants
17,308,880

 
141,134,107

Earnings Per Share (Tables)
Reconciliation of Denominator Used In Calculation of Basic And Diluted Loss Per Share 
A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
51,394

 
$
(37,309
)
 
$
59,923

 
$
231,072

Denominator:
 
 
 
 
 
 
 
Weighted-average shares outstanding for basic earnings (loss) per share
717,445

 
690,468

 
711,884

 
683,075

Effect of dilutive securities:
 
 
 
 
 
 
 
Convertible senior notes
5,162

 
0

 
4,571

 
1,994

Employee stock awards
14,717

 
0

 
13,235

 
11,188

Warrants
782

 
0

 
522

 
0

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share
738,106

 
690,468

 
730,212

 
696,257

Shares Excluded From Diluted Earnings Or Loss Per Share 
The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2017
 
2016
 
2017
 
2016
Employee stock awards
1,355

 
17,946

 
9,239

 
8,640

Convertible senior notes
0

 
17,309

 
0

 
0

Warrants
0

 
17,309

 
0

 
17,309

Commitments (Tables)
Schedule Of Future Minimum Lease Payments Under Non-Cancelable Operating And Capital Leases
As of October 31, 2017, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in thousands):
 
Capital
Leases
 
Operating
Leases
 
Financing Obligation -Leased Facility (1)
Fiscal Period:
 
 
 
 
 
Remaining three months of Fiscal 2018
$
22,974

 
$
152,711

 
$
5,433

Fiscal 2019
115,830

 
575,237

 
21,881

Fiscal 2020
201,616

 
503,390

 
22,325

Fiscal 2021
73

 
368,148

 
22,770

Fiscal 2022
37

 
282,804

 
23,214

Thereafter
3

 
1,408,213

 
210,713

Total minimum lease payments
340,533

 
$
3,290,503

 
$
306,336

Less: amount representing interest
(23,384
)
 

 

Present value of capital lease obligations
$
317,149

 

 

______________ 
(1) Total Financing Obligation - Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest and the implied lease for the land as noted in Note 5 “Property and Equipment.” As of October 31, 2017, $218.8 million of the total $306.3 million above was recorded to Financing obligation leased facility, of which the current portion is included in "Accounts payable, accrued expenses and other liabilities" and the noncurrent portion is included in “Other noncurrent liabilities” on the consolidated balance sheets.
Summary of Business and Significant Accounting Policies - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
segment
Oct. 31, 2016
Jan. 31, 2017
Oct. 31, 2017
Strategic Investments
Jan. 31, 2017
Strategic Investments
Oct. 31, 2017
Private Equity Funds
Oct. 31, 2017
Equity Securities
Strategic Investments
Jan. 31, 2017
Equity Securities
Strategic Investments
Oct. 31, 2017
Stock options and restricted stock
Oct. 31, 2017
Performance shares
Oct. 31, 2017
Restricted stock units and awards
Oct. 31, 2017
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2016
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2017
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2016
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2017
Assets
Geographic Concentration Risk
Outside Americas
Jan. 31, 2017
Assets
Geographic Concentration Risk
Outside Americas
Oct. 31, 2017
Assets
Geographic Concentration Risk
Americas
Jan. 31, 2017
Assets
Geographic Concentration Risk
Americas
Oct. 31, 2017
Minimum
Oct. 31, 2017
Maximum
Oct. 31, 2017
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Mar. 31, 2013
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Summary of Business and Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of operating segments
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractual interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
0.25% 
Concentration risk percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
96.00% 
96.00% 
96.00% 
96.00% 
13.00% 
12.00% 
86.00% 
86.00% 
 
 
 
 
Deferred and amortized commission period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
36 months 
 
 
Deferred commissions
$ (171,562,000)
$ (92,803,000)
$ (372,714,000)
$ (226,965,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred commissions
117,677,000 
93,230,000 
331,687,000 
270,527,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred commissions
580,600,000 
 
580,600,000 
 
539,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting period
 
 
 
 
 
 
 
 
 
 
4 years 
3 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
Offering period
 
 
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award requisite service period
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of tax benefit likely to be realized upon settlement (greater than 50%)
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of long-lived assets
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of marketable equity securities
 
 
 
 
 
 
 
 
100,300,000 
41,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-marketable debt and equity securities
 
 
 
 
 
$ 570,100,000 
$ 526,000,000 
$ 516,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Business and Significant Accounting Policies - Revenues by Geographical Region (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
$ 2,679,841 
$ 2,144,775 
$ 7,629,009 
$ 6,097,996 
Reportable Geographical Components |
Americas
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
1,927,405 
1,598,344 
5,536,932 
4,506,774 
Reportable Geographical Components |
Europe
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
493,732 
337,497 
1,367,718 
1,012,671 
Reportable Geographical Components |
Asia Pacific
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
$ 258,704 
$ 208,934 
$ 724,359 
$ 578,551 
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail)
9 Months Ended
Oct. 31, 2017
Building and structural components
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
32 years 
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Building - leased facility
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
27 years 
Building improvements
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Minimum |
Computers, equipment and software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
3 years 
Minimum |
Internal-use software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
3 years 
Maximum |
Computers, equipment and software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
9 years 
Maximum |
Leasehold improvements
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Maximum |
Internal-use software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Investments - Schedule of Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 1,558,760 
$ 604,522 
Unrealized Gains
2,540 
1,106 
Unrealized Losses
(4,472)
(3,290)
Fair Value
1,556,828 
602,338 
Corporate notes and obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
939,959 
321,284 
Unrealized Gains
2,246 
887 
Unrealized Losses
(2,435)
(1,531)
Fair Value
939,770 
320,640 
U.S. treasury securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
137,172 
62,429 
Unrealized Gains
29 
68 
Unrealized Losses
(491)
(674)
Fair Value
136,710 
61,823 
Mortgage backed obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
98,226 
74,882 
Unrealized Gains
22 
39 
Unrealized Losses
(532)
(669)
Fair Value
97,716 
74,252 
Asset backed securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
202,180 
101,913 
Unrealized Gains
96 
74 
Unrealized Losses
(219)
(197)
Fair Value
202,057 
101,790 
Municipal securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
56,387 
33,523 
Unrealized Gains
81 
35 
Unrealized Losses
(201)
(183)
Fair Value
56,267 
33,375 
Foreign government obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
68,845 
10,491 
Unrealized Gains
2 
3 
Unrealized Losses
(524)
(36)
Fair Value
68,323 
10,458 
U.S. agency obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
10,506 
 
Unrealized Gains
1 
 
Unrealized Losses
(9)
 
Fair Value
10,498 
 
Covered bonds
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
45,485 
 
Unrealized Gains
63 
 
Unrealized Losses
(61)
 
Fair Value
$ 45,487 
 
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Investments, Debt and Equity Securities [Abstract]
 
 
Due within 1 year
$ 226,929 
$ 104,631 
Due in 1 year through 5 years
1,314,352 
494,127 
Due in 5 years through 10 years
15,547 
3,580 
Fair Value of Marketable Securities
$ 1,556,828 
$ 602,338 
Investments - Schedule of Marketable Securities in Unrealized Loss Position (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
$ 839,827 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(3,806)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
52,493 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(666)
Marketable securities in an unrealized loss position, Fair Value
892,320 
Marketable securities in an unrealized loss position, Unrealized Losses
(4,472)
Corporate notes and obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
424,101 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(2,052)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
28,653 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(383)
Marketable securities in an unrealized loss position, Fair Value
452,754 
Marketable securities in an unrealized loss position, Unrealized Losses
(2,435)
U.S. treasury securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
114,724 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(491)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
114,724 
Marketable securities in an unrealized loss position, Unrealized Losses
(491)
Mortgage backed obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
68,841 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(315)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
16,564 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(217)
Marketable securities in an unrealized loss position, Fair Value
85,405 
Marketable securities in an unrealized loss position, Unrealized Losses
(532)
Asset backed securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
126,186 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(210)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
3,461 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(9)
Marketable securities in an unrealized loss position, Fair Value
129,647 
Marketable securities in an unrealized loss position, Unrealized Losses
(219)
Municipal securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
30,671 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(148)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
2,788 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(53)
Marketable securities in an unrealized loss position, Fair Value
33,459 
Marketable securities in an unrealized loss position, Unrealized Losses
(201)
Foreign government obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
62,697 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(520)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
1,027 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(4)
Marketable securities in an unrealized loss position, Fair Value
63,724 
Marketable securities in an unrealized loss position, Unrealized Losses
(524)
U.S. agency obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
6,746 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(9)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
6,746 
Marketable securities in an unrealized loss position, Unrealized Losses
(9)
Covered bonds
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
5,861 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(61)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
5,861 
Marketable securities in an unrealized loss position, Unrealized Losses
$ (61)
Investments - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 3 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Equity Securities
Oct. 31, 2017
Strategic Investments
investment
Jan. 31, 2017
Strategic Investments
investment
Oct. 31, 2017
Strategic Investments
Cost Approach Valuation Technique
Jan. 31, 2017
Strategic Investments
Cost Approach Valuation Technique
Oct. 31, 2017
Strategic Investments
Equity Securities
Jan. 31, 2017
Strategic Investments
Equity Securities
Investment Holdings [Line Items]
 
 
 
 
 
 
 
 
Unrealized losses on fixed rate investments, upper range value
$ 0.2 
 
 
 
 
 
 
 
Number of investments in marketable equity securities
 
 
3 
6 
 
 
 
 
Fair value of marketable equity securities
 
 
 
 
 
 
100.3 
41.0 
Unrealized gain on marketable equity securities
 
 
62.0 
24.5 
 
 
 
 
Non-marketable debt and equity securities
 
 
570.1 
526.0 
 
 
 
 
Non-marketable debt and equity securities, estimated fair value
 
 
 
 
803.9 
758.3 
 
 
Realized gain on securities
 
$ 15.5 
 
 
 
 
 
 
Investments - Schedule of Components of Investment Income (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
 
 
Interest income
$ 10,038 
$ 3,642 
$ 24,433 
$ 17,961 
Realized gains
258 
210 
770 
7,771 
Realized losses
(247)
(143)
(1,134)
(1,985)
Total investment income
$ 10,049 
$ 3,709 
$ 24,069 
$ 23,747 
Derivatives - Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables (Detail) (Derivatives not designated as hedging instruments, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Derivative [Line Items]
 
 
Fair value of foreign currency derivative contracts
$ 853 
$ 10,205 
Foreign currency derivative contracts
 
 
Derivative [Line Items]
 
 
Notional amount of foreign currency derivative contracts
$ 1,275,276 
$ 1,280,953 
Derivatives - Fair Value of Outstanding Derivative Instruments (Detail) (Derivatives not designated as hedging instruments, Foreign currency derivative contracts, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Prepaid expenses and other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
$ 4,225 
$ 13,238 
Accounts payable, accrued expenses and other liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
$ 3,372 
$ 3,033 
Derivatives - Effect of Derivative Instruments Not Designated as Hedging Instruments on Condensed Consolidated Statements of Operations (Detail) (Derivatives not designated as hedging instruments, Foreign currency derivative contracts, Other income (expense), USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Derivatives not designated as hedging instruments |
Foreign currency derivative contracts |
Other income (expense)
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gains (Losses) on Derivative Instruments Recognized in Income
$ (1,606)
$ (39,624)
$ 11,500 
$ (86,528)
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Cash
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
$ 872,200 
$ 625,000 
Recurring measurement
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets
2,760,730 
1,597,155 
Total liabilities
3,372 
3,033 
Recurring measurement |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets
805,554 
956,479 
Total liabilities
0 
0 
Recurring measurement |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets
1,955,176 
640,676 
Total liabilities
3,372 
3,033 
Recurring measurement |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets
0 
0 
Total liabilities
0 
0 
Recurring measurement |
Prepaid expenses and other current assets
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
4,225 
13,238 
Recurring measurement |
Prepaid expenses and other current assets |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Prepaid expenses and other current assets |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
4,225 
13,238 
Recurring measurement |
Prepaid expenses and other current assets |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
3,372 
3,033 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
3,372 
3,033 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Time deposits |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
394,123 
25,100 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
394,123 
25,100 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
805,554 
956,479 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
805,554 
956,479 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Corporate notes and obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
939,770 
320,640 
Recurring measurement |
Corporate notes and obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Corporate notes and obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
939,770 
320,640 
Recurring measurement |
Corporate notes and obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. treasury securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
136,710 
61,823 
Recurring measurement |
U.S. treasury securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. treasury securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
136,710 
61,823 
Recurring measurement |
U.S. treasury securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Mortgage backed obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
97,716 
74,252 
Recurring measurement |
Mortgage backed obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Mortgage backed obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
97,716 
74,252 
Recurring measurement |
Mortgage backed obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Asset backed securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
202,057 
101,790 
Recurring measurement |
Asset backed securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Asset backed securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
202,057 
101,790 
Recurring measurement |
Asset backed securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Municipal securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
56,267 
33,375 
Recurring measurement |
Municipal securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Municipal securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
56,267 
33,375 
Recurring measurement |
Municipal securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Foreign government obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
68,323 
10,458 
Recurring measurement |
Foreign government obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Foreign government obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
68,323 
10,458 
Recurring measurement |
Foreign government obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. agency obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
10,498 
 
Recurring measurement |
U.S. agency obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
 
Recurring measurement |
U.S. agency obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
10,498 
 
Recurring measurement |
U.S. agency obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
 
Recurring measurement |
Covered bonds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
45,487 
 
Recurring measurement |
Covered bonds |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
 
Recurring measurement |
Covered bonds |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
45,487 
 
Recurring measurement |
Covered bonds |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
$ 0 
 
Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 3,319,609 
$ 2,985,884 
Less accumulated depreciation and amortization
(1,454,718)
(1,198,350)
Property and equipment, net
1,864,891 
1,787,534 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
183,888 
183,888 
Buildings and building improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
626,168 
621,377 
Computers, equipment and software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
1,600,783 
1,440,986 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
132,374 
112,564 
Leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 776,396 
$ 627,069 
Property and Equipment - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Jan. 31, 2017
Dec. 31, 2013
sqft
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Depreciation and amortization expense
$ 94,200,000 
$ 83,500,000 
$ 277,200,000 
$ 239,200,000 
 
 
Fixed assets acquired under capital lease agreements
729,500,000 
 
729,500,000 
 
729,000,000 
 
Net rentable area (in square feet)
 
 
 
 
 
445,000 
Property and equipment, gross
3,319,609,000 
 
3,319,609,000 
 
2,985,884,000 
 
Financing obligation - leased facility, current
19,899,000 
 
19,899,000 
 
19,594,000 
 
Financing obligation - leased facility
198,903,000 
 
198,903,000 
 
200,711,000 
 
Expected financing obligation
306,336,000 
 
306,336,000 
 
 
 
Computers, equipment and software
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Accumulated depreciation and amortization
450,500,000 
 
450,500,000 
 
386,900,000 
 
Property and equipment, gross
1,600,783,000 
 
1,600,783,000 
 
1,440,986,000 
 
Construction costs capitalized
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Property and equipment, gross
$ 178,800,000 
 
$ 178,800,000 
 
$ 178,800,000 
 
Business Combinations - Narrative (Details) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Jan. 31, 2017
Feb. 28, 2017
Sequence, Inc.
Business Acquisition [Line Items]
 
 
 
 
 
 
Business combinations, net of cash acquired
$ 0 
$ 32,117,000 
$ 19,781,000 
$ 2,832,110,000 
 
$ 26,000,000 
Intangible assets
 
 
 
 
 
2,700,000 
Goodwill
$ 7,294,141,000 
 
$ 7,294,141,000 
 
$ 7,263,846,000 
$ 23,000,000 
Intangible Assets Acquired Through Business Combinations and Goodwill (Intangible Assets Acquired From Business Combinations) (Details) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Jan. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
$ 2,006,914,000 
 
$ 2,006,914,000 
 
$ 2,005,224,000 
Additions
 
 
1,690,000 
 
 
Accumulated Amortization
(1,111,146,000)
 
(1,111,146,000)
 
(891,850,000)
Expense
 
 
(219,296,000)
 
 
Total amortization expense
895,768,000 
 
895,768,000 
 
1,113,374,000 
Weighted Average Useful Life
 
 
3 years 10 months 24 days 
 
 
Amortization of unfavorable lease liabilities
70,000,000 
65,300,000 
219,100,000 
153,000,000 
 
Acquired developed technology
 
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
1,092,161,000 
 
1,092,161,000 
 
1,092,161,000 
Additions
 
 
0 
 
 
Accumulated Amortization
(703,815,000)
 
(703,815,000)
 
(577,929,000)
Expense
 
 
(125,886,000)
 
 
Total amortization expense
388,346,000 
 
388,346,000 
 
514,232,000 
Weighted Average Useful Life
 
 
3 years 
 
 
Customer relationships
 
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
845,304,000 
 
845,304,000 
 
843,614,000 
Additions
 
 
1,690,000 
 
 
Accumulated Amortization
(343,804,000)
 
(343,804,000)
 
(254,035,000)
Expense
 
 
(89,769,000)
 
 
Total amortization expense
501,500,000 
 
501,500,000 
 
589,579,000 
Weighted Average Useful Life
 
 
4 years 8 months 12 days 
 
 
Trade names and trademarks
 
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
45,950,000 
 
45,950,000 
 
45,950,000 
Additions
 
 
0 
 
 
Accumulated Amortization
(42,879,000)
 
(42,879,000)
 
(41,349,000)
Expense
 
 
(1,530,000)
 
 
Total amortization expense
3,071,000 
 
3,071,000 
 
4,601,000 
Weighted Average Useful Life
 
 
1 year 7 months 6 days 
 
 
Territory rights and other
 
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
15,786,000 
 
15,786,000 
 
15,786,000 
Additions
 
 
0 
 
 
Accumulated Amortization
(13,252,000)
 
(13,252,000)
 
(12,256,000)
Expense
 
 
(996,000)
 
 
Total amortization expense
2,534,000 
 
2,534,000 
 
3,530,000 
Weighted Average Useful Life
 
 
8 years 3 months 18 days 
 
 
50 Fremont lease intangibles
 
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
Intangible Assets, Gross
7,713,000 
 
7,713,000 
 
7,713,000 
Additions
 
 
0 
 
 
Accumulated Amortization
(7,396,000)
 
(7,396,000)
 
(6,281,000)
Expense
 
 
(1,115,000)
 
 
Total amortization expense
$ 317,000 
 
$ 317,000 
 
$ 1,432,000 
Weighted Average Useful Life
 
 
3 months 18 days 
 
 
Intangible Assets Acquired Through Business Combinations and Goodwill (Expected Future Amortization Expense for Purchased Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Remaining three months of Fiscal 2018
$ 69,053 
 
Fiscal 2019
266,233 
 
Fiscal 2020
225,039 
 
Fiscal 2021
169,481 
 
Fiscal 2022
111,353 
 
Thereafter
54,609 
 
Total amortization expense
$ 895,768 
$ 1,113,374 
Intangible Assets Acquired Through Business Combinations and Goodwill (Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Feb. 28, 2017
Goodwill [Roll Forward]
 
 
Goodwill beginning balance
$ 7,263,846 
 
Adjustments of acquisition date fair values, including the effect of foreign currency translation
7,313 
 
Goodwill ending balance
7,294,141 
 
Sequence, Inc. acquisition
 
 
Goodwill [Roll Forward]
 
 
Goodwill beginning balance
 
23,000 
Sequence, Inc. acquisition
22,982 
 
Goodwill ending balance
 
$ 23,000 
Debt - Summary of Convertible Senior Notes (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Mar. 31, 2013
Debt Conversion [Line Items]
 
 
 
Convertible 0.25% senior notes, net
$ 0 
$ 1,116,360 
 
Convertible 0.25% senior notes (See Note 8)
10,797 
0 
 
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
 
 
Debt Conversion [Line Items]
 
 
 
Par Value Outstanding
1,149,979 
 
 
Equity Component Recorded at Issuance
122,421 
 
 
Convertible 0.25% senior notes, net
$ 1,137,954 
$ 1,116,360 
 
Contractual interest rate
0.25% 
 
0.25% 
Debt - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended 1 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Feb. 28, 2017
Revolving Credit Facility
Oct. 31, 2016
Revolving Credit Facility
Jul. 31, 2016
Revolving Credit Facility
Minimum
Jul. 31, 2016
Revolving Credit Facility
Minimum
Base Rate
Jul. 31, 2016
Revolving Credit Facility
Minimum
Adjusted LIBOR
Jul. 31, 2016
Revolving Credit Facility
Maximum
Jul. 31, 2016
Revolving Credit Facility
Maximum
Base Rate
Jul. 31, 2016
Revolving Credit Facility
Maximum
Adjusted LIBOR
Oct. 31, 2017
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
D
Jan. 31, 2017
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Mar. 31, 2013
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Nov. 22, 2017
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Subsequent Event
Oct. 31, 2017
Notes Payable to Banks
0.25% Convertible Senior Notes due April 1, 2018
Jan. 31, 2017
Notes Payable to Banks
0.25% Convertible Senior Notes due April 1, 2018
Oct. 31, 2017
Notes Payable to Banks
Term Loan Credit Agreement
Oct. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Minimum
Base Rate
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Minimum
Adjusted LIBOR
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Maximum
Base Rate
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Maximum
Adjusted LIBOR
Oct. 31, 2017
Mortgage Loan
50 Fremont Street
Oct. 31, 2016
Mortgage Loan
50 Fremont Street
Oct. 31, 2017
Mortgage Loan
50 Fremont Street
Oct. 31, 2016
Mortgage Loan
50 Fremont Street
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,150,000,000 
 
 
 
$ 500,000,000.0 
$ 500,000,000.0 
 
 
 
 
 
 
 
 
Contractual interest rate
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
0.25% 
 
0.25% 
0.25% 
 
 
 
 
 
 
3.75% 
 
3.75% 
 
Consecutive trading days threshold
 
 
 
 
 
 
 
 
 
 
 
 
20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consecutive trading days threshold, total
 
 
 
 
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock price trigger
 
 
 
 
 
 
 
 
 
 
 
 
130.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes price trigger
 
 
 
 
 
 
 
 
 
 
 
 
98.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price upon fundamental change
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of Company's senior notes
 
 
 
 
 
 
 
 
 
 
 
 
1,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value debt basis amount
 
 
 
 
 
 
 
 
 
 
 
 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing prices of Company's common stock (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
$ 102.34 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If-converted value in excess of principal
 
 
 
 
 
 
 
 
 
 
 
 
621,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
 
 
 
 
 
 
 
 
 
 
 
1,149,979,000 
1,150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal balance with conversion notices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
0.00% 
1.00% 
 
0.75% 
1.75% 
 
 
 
 
 
 
 
 
0.00% 
1.00% 
0.75% 
1.75% 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.20% 
 
 
 
 
 
 
 
 
 
Accrued interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
1,000,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitment fee percentage
 
 
 
 
 
 
0.125% 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt default interest rate above applicable interest rate for overdue principal
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
Debt default interest rate above applicable interest rate for base rate loans and other
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
Pay down of debt
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount outstanding
0 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan assumed on 50 Fremont
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
Debt interest expense
$ 13,561,000 
$ 12,853,000 
$ 40,309,000 
$ 34,263,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,800,000 
$ 1,800,000 
$ 5,600,000 
$ 5,600,000 
Debt - Schedule of Conversion of Senior Notes to Common Stock (Detail) (Convertible Debt, 0.25% Convertible Senior Notes due April 1, 2018, USD $)
9 Months Ended
Oct. 31, 2017
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
Debt Instrument [Line Items]
 
Conversion Rate per $1,000 Par Value
0.0150512 
Initial Conversion Price per Share
$ 66.44 
Debt - Schedule of Convertible Senior Notes (Detail) (Convertible Debt, 0.25% Convertible Senior Notes due April 1, 2018, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Mar. 31, 2013
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
 
 
Debt Instrument [Line Items]
 
 
 
Principal
$ 1,149,979 
$ 1,150,000 
 
Less: debt discount, net
(10,797)
(29,954)
 
Less: debt issuance cost
(1,228)
(3,686)
 
Net carrying amount
$ 1,137,954 
$ 1,116,360 
 
Contractual interest rate
0.25% 
 
0.25% 
Effective interest rates of Senior Notes
2.53% 
 
 
Debt - Summary of Hedge Notes (Detail) (Convertible Debt, 0.25% Note Hedges, USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Convertible Debt |
0.25% Note Hedges
 
Derivatives, Fair Value [Line Items]
 
Purchase
$ 153,800 
Shares (in shares)
17,308,880 
Debt - Components of Warrants (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Class of Warrant or Right [Line Items]
 
Warrants (in shares)
17,308,880 
Convertible Debt |
0.25% Warrants
 
Class of Warrant or Right [Line Items]
 
Proceeds
$ 84,800 
Warrants (in shares)
17,308,880 
Strike Price (in dollars per share)
$ 90.40 
Debt - Schedule of Interest Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Debt Disclosure [Abstract]
 
 
 
 
Contractual interest expense
$ 5,766 
$ 5,207 
$ 17,044 
$ 11,398 
Amortization of debt issuance costs
1,332 
1,342 
3,996 
4,071 
Amortization of debt discount
6,463 
6,304 
19,269 
18,794 
Debt interest expense
$ 13,561 
$ 12,853 
$ 40,309 
$ 34,263 
Other Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Balance Sheet Related Disclosures [Abstract]
 
 
Prepaid income taxes
$ 43,301 
$ 26,932 
Other taxes receivable
33,099 
34,177 
Prepaid expenses and other current assets
393,546 
218,418 
Prepaid expenses and other current assets
$ 469,946 
$ 279,527 
Other Balance Sheet Accounts - Additional Information (Detail) (USD $)
9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Oct. 31, 2017
Jan. 31, 2017
Oct. 31, 2017
Acquired intellectual property
Oct. 31, 2016
Acquired intellectual property
Oct. 31, 2017
Acquired intellectual property
Oct. 31, 2016
Acquired intellectual property
Oct. 31, 2017
Capitalized internal-use software development costs
Oct. 31, 2016
Capitalized internal-use software development costs
Oct. 31, 2017
Capitalized internal-use software development costs
Oct. 31, 2016
Capitalized internal-use software development costs
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
Capitalized software, net
$ 140,800,000 
$ 141,700,000 
 
 
 
 
 
 
 
 
Capitalized software,accumulated amortization
306,600,000 
250,900,000 
 
 
 
 
 
 
 
 
Capitalized software amortization expense
 
 
 
 
 
 
18,700,000 
16,600,000 
55,700,000 
47,500,000 
Capitalized stock based compensation
 
 
 
 
 
 
2,000,000 
1,700,000 
5,900,000 
5,100,000 
Amortization of acquired intangible assets
$ 219,296,000 
 
$ 4,300,000 
$ 4,100,000 
$ 13,000,000 
$ 11,900,000 
 
 
 
 
Other Balance Sheet Accounts - Schedule of Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Finite-Lived Intangible Assets [Line Items]
 
 
Deferred income taxes, noncurrent, net
$ 31,596 
$ 28,939 
Long-term deposits
23,979 
23,597 
Domain names and patents, net
895,768 
1,113,374 
Customer contract assets
201,357 
281,733 
Other
141,145 
113,387 
Other assets, net
424,888 
486,869 
Domain names and patents, net
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Domain names and patents, net
$ 26,811 
$ 39,213 
Other Balance Sheet Accounts - Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Balance Sheet Related Disclosures [Abstract]
 
 
Accounts payable
$ 120,019 
$ 115,257 
Accrued compensation
622,419 
730,390 
Non-cash equity liability
49,435 
68,355 
Accrued other liabilities
488,071 
419,299 
Accrued income and other taxes payable
193,693 
239,699 
Accrued professional costs
44,757 
38,254 
Accrued rent
33,968 
19,710 
Capital lease obligation, current
114,147 
102,106 
Financing obligation - leased facility, current
19,899 
19,594 
Accrued expenses and other current liabilities
$ 1,686,408 
$ 1,752,664 
Other Balance Sheet Accounts - Schedule of Other Non current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Jan. 31, 2017
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred income taxes and income taxes payable
$ 117,193 
$ 99,378 
Financing obligation - leased facility
198,903 
200,711 
Long-term lease liabilities and other
420,774 
480,850 
Other noncurrent liabilities
$ 736,870 
$ 780,939 
Stockholders' Equity - Additional Information (Detail) (USD $)
9 Months Ended 0 Months Ended 9 Months Ended 51 Months Ended 90 Months Ended 9 Months Ended 3 Months Ended
Oct. 31, 2017
purchase_period
Oct. 31, 2016
Jan. 31, 2006
Stock Options
Oct. 31, 2017
Stock Options
Oct. 31, 2017
Stock Options
Jul. 31, 2013
Stock Options
Oct. 31, 2017
Performance shares
Oct. 31, 2017
Performance shares
Minimum
Oct. 31, 2017
Performance shares
Maximum
Oct. 31, 2017
Restricted stock units and awards
Jan. 31, 2017
Restricted stock units and awards
Jul. 31, 2017
Employee Stock Purchase Plan
Jul. 31, 2016
Employee Stock Purchase Plan
Oct. 31, 2017
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount withheld on behalf of employees for future purchases
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 119,200,000 
Contractual life of stock options (in years)
 
 
10 years 
 
7 years 
5 years 
 
 
 
 
 
 
 
 
Number of purchase periods
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average grant date fair value of awards granted (in dollars per share)
$ 89.04 
$ 76.90 
 
 
 
 
 
 
 
 
 
$ 21.13 
$ 21.93 
 
Expected dividend yield
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting period
 
 
 
 
 
 
3 years 
 
 
4 years 
 
 
 
 
Award vesting percentage
 
 
 
 
 
 
 
0.00% 
200.00% 
 
 
 
 
 
Total intrinsic value of the options exercised during the period
298,700,000 
176,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average remaining contractual life of vested and expected to vest options (in years)
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options vested (in shares)
10,090,058 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average exercise price vested (in dollars per share)
$ 57.62 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average contractual life of vested and expected to vest options (in years)
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of vested options
451,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
 
 
 
759,300,000 
 
 
 
 
 
 
 
 
 
 
Compensation not yet recognized, stock options
 
 
 
2,000,000,000 
2,000,000,000 
 
 
 
 
 
 
 
 
 
Amortization, remaining of fiscal year
 
 
 
234,500,000 
234,500,000 
 
 
 
 
 
 
 
 
 
Amortization, year two
 
 
 
777,800,000 
777,800,000 
 
 
 
 
 
 
 
 
 
Amortization, year three
 
 
 
574,400,000 
574,400,000 
 
 
 
 
 
 
 
 
 
Amortization, year four
 
 
 
303,600,000 
303,600,000 
 
 
 
 
 
 
 
 
 
Amortization, year five
 
 
 
42,900,000 
42,900,000 
 
 
 
 
 
 
 
 
 
Amortization, thereafter
 
 
 
$ 25,200,000 
$ 25,200,000 
 
 
 
 
 
 
 
 
 
Period for recognition
 
 
 
1 year 10 months 24 days 
 
 
 
 
 
 
 
 
 
 
Weighted-average exercise price (in dollars per share)
$ 0.001 
 
 
 
 
 
 
 
 
$ 0.001 
$ 0.001 
 
 
 
Stockholders' Equity - Fair Value Assumptions (Detail) (Stock Options, USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Stock Options
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Volatility
30.80% 
32.30% 
 
 
Volatility, minimum
 
 
30.80% 
32.10% 
Volatility, maximum
 
 
31.40% 
32.30% 
Estimated life
3 years 6 months 
3 years 6 months 
3 years 6 months 
3 years 6 months 
Risk-free interest rate, minimum
1.60% 
0.90% 
1.40% 
0.90% 
Risk-free interest rate, maximum
1.80% 
1.10% 
1.80% 
1.10% 
Weighted-average fair value per share of grants (in dollars per share)
$ 24.12 
$ 18.75 
$ 22.26 
$ 18.75 
Stockholders' Equity - Stock Activity (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Shares available for grant
 
Shares Available for Grant, Balance (in shares)
16,531,822 
Shares Available for Grant, Options granted under all plans (in shares)
(1,020,046)
Shares Available for Grant, Exercised (in shares)
0 
Shares Available for Grant, Expired (in shares)
(44,309)
Shares Available for Grant, Canceled (in shares)
1,314,229 
Shares Available for Grant, Balance (in shares)
50,947,378 
Outstanding Stock Options
 
Outstanding Stock Options, Balance (in shares)
30,353,076 
Outstanding Stock Options (in shares)
1,020,046 
Outstanding Stock Options, Exercised (in shares)
(6,705,729)
Outstanding Stock Options, Plan shares expired (in shares)
0 
Outstanding Stock Options, Canceled (in shares)
(1,314,229)
Outstanding Stock Options, Balance (in shares)
23,353,164 
Outstanding Stock Options, Vested or expected to vest (in shares)
21,891,255 
Outstanding Stock Options, Exercisable (in shares)
10,090,058 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Balance (in dollars per share)
$ 59.88 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 89.01 
Weighted- Average Exercise Price, Exercised (in dollars per share)
$ 43.57 
Weighted- Average Exercise Price, Expired (in dollars per share)
$ 0.00 
Weighted- Average Exercise Price, Canceled (in dollars per share)
$ 71.92 
Weighted- Average Exercise Price, Balance (in dollars per share)
$ 65.16 
Weighted- Average Exercise Price, Vested or expected to vest (in dollars per share)
$ 64.58 
Weighted- Average Exercise Price, Exercisable (in dollars per share)
$ 57.62 
Aggregate Intrinsic Value
 
Weighted- Average Exercise Price, Balance
$ 868,266 
Weighted- Average Exercise Price, Vested or expected to vest
826,607 
Weighted- Average Exercise Price, Exercisable
$ 451,210 
Restricted stock units and awards
 
Shares available for grant
 
Shares Available for Grant, Restricted stock activity (in shares)
(2,696,029)
Outstanding Stock Options
 
Outstanding Stock Options (in shares)
0 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 0.00 
Stock grants to board and advisory board members
 
Shares available for grant
 
Shares Available for Grant, Stock grants to board and advisory board members (in shares)
(163,596)
Outstanding Stock Options
 
Outstanding Stock Options (in shares)
0 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 0.00 
2013 Equity Incentive Plan
 
Shares available for grant
 
Shares Available for Grant, Increase in shares authorized (in shares)
37,009,109 
Shares Available for Grant, Balance (in shares)
50,316,168 
Outstanding Stock Options
 
Outstanding Stock Options, Increase in shares authorized (in shares)
0 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 0.00 
2014 Inducement Plan
 
Shares available for grant
 
Shares Available for Grant, Increase in shares authorized (in shares)
16,198 
Shares Available for Grant, Balance (in shares)
520,478 
Outstanding Stock Options
 
Outstanding Stock Options, Increase in shares authorized (in shares)
0 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 0.00 
Stockholders' Equity - Stock Options Outstanding (Detail) (USD $)
9 Months Ended
Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Options, Number Outstanding (in shares)
23,353,164 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
5 years 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 65.16 
Options Exercisable, Number of Shares (in shares)
10,090,058 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 57.62 
$0.86 to $52.30
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 0.86 
Range of Exercise Prices, Maximum (in dollars per share)
$ 52.30 
Options, Number Outstanding (in shares)
4,540,787 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
4 years 4 months 24 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 35.63 
Options Exercisable, Number of Shares (in shares)
3,693,473 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 41.41 
$53.60 to $58.86
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 53.60 
Range of Exercise Prices, Maximum (in dollars per share)
$ 58.86 
Options, Number Outstanding (in shares)
724,916 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
3 years 9 months 18 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 55.57 
Options Exercisable, Number of Shares (in shares)
478,771 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 55.61 
$59.34
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 59.34 
Range of Exercise Prices, Maximum (in dollars per share)
$ 59.34 
Options, Number Outstanding (in shares)
4,826,489 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
4 years 1 month 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 59.34 
Options Exercisable, Number of Shares (in shares)
3,309,418 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 59.34 
$59.37 to $75.01
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 59.37 
Range of Exercise Prices, Maximum (in dollars per share)
$ 75.01 
Options, Number Outstanding (in shares)
1,553,021 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
5 years 2 months 12 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 69.76 
Options Exercisable, Number of Shares (in shares)
500,029 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 70.21 
$75.57
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 75.57 
Range of Exercise Prices, Maximum (in dollars per share)
$ 75.57 
Options, Number Outstanding (in shares)
5,576,546 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
6 years 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 75.57 
Options Exercisable, Number of Shares (in shares)
0 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 0.00 
$76.48 to $80.62
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 76.48 
Range of Exercise Prices, Maximum (in dollars per share)
$ 80.62 
Options, Number Outstanding (in shares)
577,049 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
5 years 7 months 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 78.54 
Options Exercisable, Number of Shares (in shares)
175,146 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 78.59 
$80.99 to $98.90
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 80.99 
Range of Exercise Prices, Maximum (in dollars per share)
$ 98.90 
Options, Number Outstanding (in shares)
5,554,356 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
5 years 3 months 18 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 82.48 
Options Exercisable, Number of Shares (in shares)
1,933,221 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 80.99 
Stockholders' Equity - Schedule of Restricted Stock Activity (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2017
Restricted Stock Outstanding
 
Ending Balance (in shares)
22,586,314 
Restricted Stock Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Restricted stock units and awards
 
Restricted Stock Outstanding
 
Beginning Balance (in shares)
27,453,498 
Granted, Outstanding (in shares)
2,844,391 
Canceled, Outstanding (in shares)
(1,606,148)
Vested and converted to shares, Outstanding (in shares)
(6,105,427)
Ending Balance (in shares)
22,586,314 
Expected to vest, Outstanding (in shares)
19,722,393 
Restricted Stock Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Granted (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Canceled (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Vested and converted to shares (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Restricted Stock Outstanding Aggregate Intrinsic Value
 
Aggregate Intrinsic Value, Ending Balance
$ 2,311,483 
Aggregate Intrinsic Value, Expected to vest
$ 2,018,390 
Stockholders' Equity - Shares of Common Stock Available for Future Issuance under Stock Option Plans (Detail)
Oct. 31, 2017
Jan. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Options outstanding (in shares)
23,353,164 
30,353,076 
Restricted stock awards and units outstanding (in shares)
22,586,314 
 
Stock available for future grant (in shares)
50,947,378 
16,531,822 
Convertible senior notes (in shares)
17,308,563.9248 
 
Warrants (in shares)
17,308,880 
 
Total shares available for future grant (in shares)
141,134,107 
 
2013 Equity Incentive Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
50,316,168 
 
2014 Inducement Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
520,478 
 
Amended and Restated 2004 Employee Stock Purchase Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
9,629,807 
 
Acquired equity plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
110,732 
 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Income Tax Disclosure [Abstract]
 
 
 
 
Provision (benefit) for income taxes
$ 55,007,000 
$ 24,723,000 
$ 53,968,000 
$ (182,220,000)
Pretax income (loss)
106,401,000 
(12,586,000)
113,891,000 
48,852,000 
Effective (negative) tax rate
 
 
(47.00%)
373.00% 
Discrete tax benefit from partial release of valuation allowance
 
 
 
205,600,000 
Income tax benefit recognized from stock compensation expense
 
 
206,800,000 
161,400,000 
Reasonably possible decrease of unrecognized tax benefits
$ 6,800,000 
 
$ 6,800,000 
 
Earnings Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Earnings Per Share [Abstract]
 
 
 
 
Net income (loss)
$ 51,394 
$ (37,309)
$ 59,923 
$ 231,072 
Weighted-average shares outstanding for basic earnings (loss) per share (in shares)
717,445 
690,468 
711,884 
683,075 
Convertible senior notes (in shares)
5,162 
0 
4,571 
1,994 
Employee stock awards (in shares)
14,717 
0 
13,235 
11,188 
Warrants (in shares)
782 
0 
522 
0 
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share (in shares)
738,106 
690,468 
730,212 
696,257 
Earnings Per Share - Shares Excluded from Diluted Earnings or Loss Per Share (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2017
Oct. 31, 2016
Oct. 31, 2017
Oct. 31, 2016
Employee stock awards
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
1,355 
17,946 
9,239 
8,640 
Convertible senior notes
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
0 
17,309 
0 
0 
Warrants
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
0 
17,309 
0 
17,309 
Commitments - Additional Information (Detail) (USD $)
1 Months Ended 9 Months Ended
Apr. 30, 2016
Oct. 31, 2017
Jan. 31, 2017
Other Commitments [Line Items]
 
 
 
Financing obligation - leased facility
 
$ 198,903,000 
$ 200,711,000 
Expected financing obligation
 
306,336,000 
 
Operating lease commitment
 
3,290,503,000 
 
Purchase commitment term
4 years 
 
 
Payment for purchase commitment
 
96,000,000 
 
Purchase commitment, 2019
 
108,000,000 
 
Purchase commitment, 2020
 
126,000,000 
 
Other Current and Noncurrent Liabilities
 
 
 
Other Commitments [Line Items]
 
 
 
Financing obligation - leased facility
 
218,800,000 
 
Letter of Credit
 
 
 
Other Commitments [Line Items]
 
 
 
Value of outstanding letters of credit
 
96,600,000 
 
Facilities Space
 
 
 
Other Commitments [Line Items]
 
 
 
Total operating lease commitment balance
 
$ 2,700,000,000 
 
Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating and Capital Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2017
Capital Leases
 
Remaining three months of Fiscal 2018
$ 22,974 
Fiscal 2019
115,830 
Fiscal 2020
201,616 
Fiscal 2021
73 
Fiscal 2022
37 
Thereafter
3 
Total minimum lease payments
340,533 
Less: amount representing interest
(23,384)
Present value of capital lease obligations
317,149 
Operating Leases
 
Remaining three months of Fiscal 2018
152,711 
Fiscal 2019
575,237 
Fiscal 2020
503,390 
Fiscal 2021
368,148 
Fiscal 2022
282,804 
Thereafter
1,408,213 
Total minimum lease payments
3,290,503 
Financing Obligation -Leased Facility
 
Remaining three months of Fiscal 2018
5,433 
Fiscal 2019
21,881 
Fiscal 2020
22,325 
Fiscal 2021
22,770 
Fiscal 2022
23,214 
Thereafter
210,713 
Total minimum lease payments
$ 306,336 
Legal Proceedings and Claims (Details) (ExactTarget, Inc. Class-Action Lawsuit, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 31, 2017
ExactTarget, Inc. Class-Action Lawsuit
 
Loss Contingencies [Line Items]
 
Litigation settlement amount
$ 6.3 
Related-Party Transactions (Details) (Affiliated Entity, USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2017
board_seat
board_member
employee
Affiliated Entity
 
Related Party Transaction [Line Items]
 
Number of Company's Board Members that Hold Board Seats in Foundation
1 
Number of Board Seats in Foundation
3 
Number of Company's Employees that Hold Board Seats in Non-Profit
1 
Number Company's Board Members that Hold Board Seats in Non-Profit
1 
Number of Board Seats in Non-Profit Held by Company's Employees and Board Members
3 
Number of Board Seats in Non-Profit
9 
Value of resources donated to related parties
$ 7.4 
Value of donated subscriptions to related parties
$ 129.7