Document and Entity Information - USD ($) shares in Millions, $ in Billions	12 Months Ended
	Jan. 31, 2020	Feb. 29, 2020	Jul. 31, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 31, 2020
Document Transition Report	false
Entity File Number	001-32224
Entity Registrant Name	salesforce.com, inc.
Entity Central Index Key	0001108524
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3320693
Entity Address, Address Line One	Salesforce Tower
Entity Address, Address Line Two	415 Mission Street, 3rd Fl
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94105
City Area Code	415
Local Phone Number	901-7000
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CRM
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 92.7
Entity Common Stock, Shares Outstanding		895
Documents Incorporated by Reference	Portions of the Registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders (the “Proxy Statement”), to be filed within 120 days of the Registrant’s fiscal year ended January 31, 2020, are incorporated by reference in Part III of this Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K.

Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 31, 2020	Jan. 31, 2019
Current assets:
Cash and cash equivalents	$ 4,145	$ 2,669
Marketable securities	3,802	1,673
Accounts receivable, net	6,174	4,924
Costs capitalized to obtain revenue contracts, net	926	788
Prepaid expenses and other current assets	916	629
Total current assets	15,963	10,683
Property, Plant and Equipment, Net	2,375	2,051
Operating lease right-of-use assets (Note 1)	3,040
Costs capitalized to obtain revenue contracts, noncurrent, net	1,348	1,232
Strategic investments	1,963	1,302
Goodwill	25,134	12,851
Intangible assets acquired through business combinations, net	4,724	1,923
Capitalized software and other assets, net	579	695
Total assets	55,126	30,737
Current liabilities:
Accounts payable, accrued expenses and other liabilities	3,433	2,691
Operating lease liabilities, current (Note 1)	750
Unearned revenue	10,662	8,564
Total current liabilities	14,845	11,255
Noncurrent debt	2,673	3,173
Noncurrent operating lease liabilities (Note 1)	2,445
Other noncurrent liabilities	1,278	704
Total liabilities	21,241	15,132
Stockholders’ equity:
Preferred stock, $0.001 par value; 5 shares authorized and none issued and outstanding	0	0
Common stock, $0.001 par value; 1,600 shares authorized, 893 and 770 issued and outstanding at January 31, 2020 and 2019, respectively	1	1
Additional paid-in capital	32,116	13,927
Accumulated other comprehensive loss	(93)	(58)
Retained earnings	1,861	1,735
Total stockholders’ equity	33,885	15,605
Total liabilities and stockholders’ equity	$ 55,126	$ 30,737

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 31, 2020	Jan. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,600,000,000	1,600,000,000
Common stock, shares issued (in shares)	893,000,000	770,000,000
Common stock, shares outstanding (in shares)	893,000,000	770,000,000

Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Jan. 31, 2020

Jan. 31, 2019

Jan. 31, 2018

Revenues:

Total revenues

$ 17,098

$ 13,282

$ 10,540

Cost of revenues:

Total cost of revenues

^[1],[2]

4,235

3,451

2,773

Gross profit

12,863

9,831

7,767

Operating expenses:

Research and development

^[1],[2]

2,766

1,886

1,553

Marketing and sales

^[1],[2]

7,930

6,064

4,671

General and administrative

^[1],[2]

1,704

1,346

1,089

Loss on settlement of Salesforce.org reseller agreement (Note 7)

166

0

^[1],[2]

0

^[1],[2]

Total operating expenses

^[1],[2]

12,566

9,296

7,313

Income from operations

297

535

454

Gains on strategic investments, net

427

542

19

Other expense

(18)

(94)

(53)

Income before benefit from (provision for) income taxes

706

983

420

Benefit from (provision for) income taxes (3)

^[3]

(580)

127

(60)

Net income

$ 126

$ 1,110

$ 360

Basic net income per share (in dollars per share)

$ 0.15

$ 1.48

$ 0.50

Diluted net income per share (in dollars per share)

$ 0.15

$ 1.43

$ 0.49

Shares used in computing basic net income per share (in shares)

829

751

715

Shares used in computing diluted net income per share (in shares)

850

775

735

Subscription and support

Revenues:

Total revenues

$ 16,043

$ 12,413

$ 9,766

Cost of revenues:

Total cost of revenues

^[1],[2]

3,198

2,604

2,033

Professional services and other

Revenues:

Total revenues

1,055

869

774

Cost of revenues:

Total cost of revenues

^[1],[2]

$ 1,037

$ 847

$ 740

[1]

Amounts include amortization of intangible assets acquired through business combinations, as follows:


	Fiscal Year Ended January 31,
	2020		2019		2018
Cost of revenues	$	440	$	215	$	166
Marketing and sales	352		232		121

[2]

Amounts include stock-based expense, as follows:


	Fiscal Year Ended January 31,
	2020		2019		2018
Cost of revenues	$	204	$	161	$	130
Research and development	510		307		260
Marketing and sales	852		643		469
General and administrative	219		172		138

[3]

Amounts include a benefit related to the partial release of the valuation allowance of $612 million, and $2 million, for fiscal 2019 and 2018, respectively. The fiscal 2019 benefit was partially offset by an increase in unrecognized tax benefits.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Stock-based expenses	$ 1,785	$ 1,283	$ 997
Partial release of valuation allowance		612	2
Cost of revenues
Amortization of intangibles acquired through business combinations	440	215	166
Stock-based expenses	204	161	130
Research and development
Stock-based expenses	510	307	260
Marketing and sales
Amortization of intangibles acquired through business combinations	352	232	121
Stock-based expenses	852	643	469
General and administrative
Stock-based expenses	$ 219	$ 172	$ 138

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 126	$ 1,110	$ 360
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation and other losses	(59)	(26)	77
Unrealized gains (losses) on marketable securities and privately held debt securities	26	(12)	(4)
Other comprehensive income (loss), before tax	(33)	(38)	73
Tax effect	(2)	(1)	1
Other comprehensive income (loss), net	(35)	(39)	74
Comprehensive income	$ 91	$ 1,071	$ 434

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning balance (in shares) at Jan. 31, 2017		707
Beginning balance at Jan. 31, 2017	$ 8,230	$ 1	$ 8,040	$ (86)	$ 275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		23
Common stock issued	709		709
Shares issued related to business combinations	12		12
Temporary equity reclassifications related to convertible notes	(4)		(4)
Stock-based expenses	995		995
Other comprehensive income, net of tax	74			74
Net income (loss)	360				360
Ending balance (in shares) at Jan. 31, 2018		730
Ending balance at Jan. 31, 2018	10,376	$ 1	9,752	(12)	635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		21
Common stock issued	695		695
Shares issued related to business combinations (in shares)		13
Shares issued related to business combinations	2,195		2,195
Settlement of convertible notes and warrants (in shares)		6
Settlement of convertible notes and warrants	4		4
Stock-based expenses	1,281		1,281
Other comprehensive income, net of tax	(39)			(39)
Net income (loss)	1,110				1,110
Ending balance (in shares) at Jan. 31, 2019		770
Ending balance at Jan. 31, 2019	$ 15,605	$ 1	13,927	(58)	1,735
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)	7	21
Common stock issued	$ 816		816
Shares issued related to business combinations (in shares)		102
Shares issued related to business combinations	15,588		15,588
Stock-based expenses	1,785		1,785
Other comprehensive income, net of tax	(35)			(35)
Net income (loss)	126				126
Ending balance (in shares) at Jan. 31, 2020		893
Ending balance at Jan. 31, 2020	$ 33,885	$ 1	$ 32,116	$ (93)	$ 1,861

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Jan. 31, 2020

Jan. 31, 2019

Jan. 31, 2018

Operating activities:

Net income (loss)

$ 126

$ 1,110

$ 360

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,135

982

784

Amortization of costs capitalized to obtain revenue contracts, net

876

737

592

1,785

1,283

997

Loss on settlement of Salesforce.org reseller agreement (Note 7)

166

0

^[1],[2]

0

^[1],[2]

Gains on strategic investments, net

(427)

(542)

(19)

Changes in assets and liabilities, net of business combinations:

Accounts receivable, net

(1,000)

(923)

(719)

Costs capitalized to obtain revenue contracts, net

(1,130)

(981)

(1,156)

Prepaid expenses and other current assets and other assets

(119)

(58)

18

Accounts payable

15

74

(39)

Accrued expenses and other liabilities

967

213

392

Operating lease liabilities

(728)

Unearned revenue

1,665

1,503

1,528

Net cash provided by operating activities

4,331

3,398

2,738

Investing activities:

Business combinations, net of cash acquired

(369)

(5,115)

(25)

Purchases of strategic investments

(768)

(362)

(216)

Sales of strategic investments

434

260

131

Purchases of marketable securities

(3,857)

(1,068)

(2,003)

Sales of marketable securities

1,444

1,426

558

Maturities of marketable securities

779

146

78

Capital expenditures

(643)

(595)

(534)

Net cash used in investing activities

(2,980)

(5,308)

(2,011)

Financing activities:

Proceeds from issuance of debt, net

0

2,966

0

Proceeds from employee stock plans

840

704

650

Principal payments on financing obligations

^[3]

(173)

(131)

(106)

Repayments of debt

(503)

(1,529)

(323)

Net cash provided by financing activities

164

2,010

221

Effect of exchange rate changes

(39)

26

(12)

Net increase in cash and cash equivalents

1,476

126

936

Cash and cash equivalents, beginning of period

2,669

2,543

1,607

Cash and cash equivalents, end of period

4,145

2,669

2,543

Cash paid during the period for:

Interest

106

94

40

Income taxes, net of tax refunds

129

83

53

Non-cash investing and financing activities:

Fair value of equity awards assumed

373

480

0

Fair value of common stock issued as consideration for business combinations

$ 15,215

$ 1,715

$ 12

[1]

Amounts include amortization of intangible assets acquired through business combinations, as follows:


	Fiscal Year Ended January 31,
	2020		2019		2018
Cost of revenues	$	440	$	215	$	166
Marketing and sales	352		232		121

[2]

Amounts include stock-based expense, as follows:


	Fiscal Year Ended January 31,
	2020		2019		2018
Cost of revenues	$	204	$	161	$	130
Research and development	510		307		260
Marketing and sales	852		643		469
General and administrative	219		172		138

[3]

Previously referred to as principal payments on capital lease obligations.

Summary of Business and Significant Accounting Policies

12 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

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, blockchain, voice, advanced analytics and artificial intelligence (“AI”) technologies. Salesforce’s Customer 360 is an integrated platform that unites sales, service, marketing, commerce, integration, analytics and more to give companies a single, shared view of their customers.

Fiscal Year

The Company’s fiscal year ends on January 31. References to fiscal 2020, for example, refer to the fiscal year ending January 31, 2020.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.

Significant estimates and assumptions made by management include the determination of:

•the fair value of assets acquired and liabilities assumed for business combinations;

•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;

•the valuation of privately-held strategic investments;

•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;

•the average period of benefit associated with costs capitalized to obtain revenue contracts;

•the useful lives of intangible assets; and

•the fair value of certain stock awards issued.

Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Segments

The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers (“CODMs”), in deciding how to allocate resources and assess performance. For fiscal 2020, our CODMs were Marc Benioff, who is the chief executive officer and the chair of the board, and Keith Block, who served as co-chief executive officer until February 25, 2020. 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, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's offerings operate on its single Customer 360 Platform and most of the Company's products are deployed in a nearly identical way, and the Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.

Concentrations of Credit Risk, Significant Customers and Investments

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable. This allowance is based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with delinquent accounts. Receivables are written-off and charged against the recorded allowance when the Company has exhausted collection efforts without success. The Company had an allowance for doubtful accounts of $23 million and $22 million at January 31, 2020 and 2019, respectively.

No single customer accounted for more than five percent of accounts receivable at January 31, 2020 and January 31, 2019. No single customer accounted for five percent or more of total revenue during fiscal 2020, 2019 and 2018. As of January 31, 2020 and January 31, 2019, assets located outside the Americas were 12 percent and 14 percent of total assets, respectively. As of January 31, 2020 and January 31, 2019, assets located in the United States were 87 percent and 84 percent of total assets, respectively.

The Company is also exposed to concentrations of risk in its strategic investment portfolio. As of January 31, 2020, the Company held five investments with carrying values that were individually greater than five percent of its total strategic investments, of which one was publicly traded and four were privately held. As of January 31, 2019, the Company held five investments that were individually greater than five percent of its total strategic investments, of which four were publicly traded and one was privately held.

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 (collectively, “Cloud Services”), software licenses, and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management and implementation services. Other revenue consists primarily of training fees.

Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.

The Company determines the amount of revenue to be recognized through the application of the following steps:

•Identification of the contract, or contracts with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when or as the Company satisfies the performance obligations.

The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.

Subscription and Support Revenues

Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.

Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term.

With the May 2018 acquisition of MuleSoft, Inc. (“MuleSoft”) and the August 2019 acquisition of Tableau Software, Inc. (“Tableau”), subscription and support revenues also includes revenues associated with software licenses. These licenses for on-premises software provide the customer with a right to use the software as it exists when made available. Customers purchase these term licenses through a subscription. Revenues from distinct licenses are generally recognized upfront when the software is made available to the customer. In cases where the Company allocates revenue to software updates and support revenue is recognized as the updates are provided, which is generally ratably over the contract term.

The Company typically invoices its customers annually. Typical payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.

Professional Services and Other Revenues

The Company’s professional services contracts are either on a time and materials, fixed fee or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Training revenues are recognized as the services are performed.

Significant Judgments - Contracts with Multiple Performance Obligations

The Company enters into contracts with its customers that may include promises to transfer multiple Cloud Services, software licenses, premium support and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.

Cloud Services and software licenses are distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are generally distinct.

The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.

The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines relative fair value using information that may include market conditions or other observable inputs. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.

In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when it has observable prices.

If SSP is not directly observable, for example when pricing is highly variable, the Company uses a range of SSP. The Company determines the SSP range using information that may include pricing practices or other observable inputs. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography.

Costs Capitalized to Obtain Revenue Contracts

The Company capitalizes incremental costs of obtaining a non-cancelable subscription and support revenue contract. The capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees, and to a lesser extent (4) success fees paid to partners in emerging markets where the Company has a limited presence.

Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which, although longer than the typical initial contract period, reflects the average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluated both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.

The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.

Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying consolidated statements of operations.

During fiscal 2020, the Company capitalized $1.1 billion of costs to obtain revenue contracts and amortized $0.9 billion to marketing and sales expense. During the same period a year ago, the Company capitalized $1.0 billion of costs to obtain revenue contracts and amortized $0.7 billion to marketing and sales expense. Costs capitalized to obtain a revenue contract, net on the Company's consolidated balance sheets totaled $2.3 billion at January 31, 2020 and $2.0 billion at January 31, 2019. There were no impairments of costs to obtain revenue contracts for fiscal 2020, 2019 and 2018, respectively.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.

Marketable Securities

The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Declines in fair value judged to be other-than-temporary on securities available for sale are included as a reduction to investment income. To determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income.

Strategic Investments

The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest or significant influence.

Privately held equity securities are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) or impairment. All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains on strategic investments, net on the consolidated statement of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive income on the consolidated balance sheet.

Valuations of privately held securities are inherently complex due to the lack of readily available market data and require the Company's use of judgment. The carrying value is not adjusted for the Company's privately held equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held debt and equity securities in its strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company recognizes an impairment through the consolidated statement of operations and establishes a new carrying value for the investment.

Publicly held equity securities are measured at fair value with changes recorded through gains on strategic investments, net on the consolidated statement of operations.

If, based on the terms of these privately held and publicly traded securities, the Company determines that the Company exercises significant influence on the entity to which these securities relate, the Company will apply the equity method of accounting for such investments.

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. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivative contracts, which permit net settlement of transactions with the same counterparty, thereby reducing credit-related losses in the event of the financial institutions' nonperformance. As of

January 31, 2020 and January 31, 2019, the outstanding foreign currency derivative contracts were recorded at fair value on the consolidated balance sheets.

Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties.

Fair Value Measurement

The Company measures its cash and cash equivalents, marketable securities and foreign currency derivative contracts at fair value. In addition, the Company measures its strategic investments, including its publicly held equity securities, privately held debt securities and privately held equity securities for which there has been an observable price change in a same or similar security, at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 5 “Fair Value Measurement.”

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:


Computers, equipment and software			3 to 9 years
Furniture and fixtures			5 years
Leasehold improvements			Shorter of the estimated lease term or 10 years
Building and structural components			Average weighted useful life of 32 years
Building improvements			10 years

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.

Capitalized Software Costs

The Company capitalizes costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three to five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

Intangible Assets Acquired through Business Combinations

Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

Impairment Assessment

The Company evaluates intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.

The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.

There were no material impairments of capitalized software, intangible assets, long-lived assets or goodwill during fiscal 2020, 2019, and 2018, respectively.

Business Combinations

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement.

During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations.

In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will recognize a gain or loss to settle that relationship as of the acquisition date within the consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (or losses) on strategic investments in the consolidated statement of operations.

Leases

Effective at the start of fiscal 2020, the Company adopted the provisions and expanded disclosure requirements described in Topic 842. The Company adopted the standard using the modified retrospective method. Accordingly, the results for the prior comparable periods were not adjusted to conform to the current period measurement or recognition of results.

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, accrued expenses and other liabilities, and other noncurrent liabilities on the Company’s consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease ROU asset is reduced for tenant incentives and excludes any initial direct costs incurred. As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company, such as construction of significant leasehold improvements that are expected to have economic value when the option becomes exercisable.

Lease expenses for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Amortization expense of the ROU asset for finance leases is recognized on a straight-line basis over the lease term and interest expense for finance leases is recognized based on the incremental borrowing rate.

The Company has lease agreements with lease and non-lease components, which it has elected to combine for all asset classes. In addition, the Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for all of its asset classes.

On the lease commencement date 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 amortized over the lease term to operating expense.

The Company additionally has entered into subleases for unoccupied leased office space. Any impairments to the ROU asset, leasehold improvements or other assets as a result of a sublease are recognized in the period the sublease is executed and recorded as an operating expense. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded as an offset to operating expenses and recognized over the sublease life.

Stock-Based Expense

Stock-based expenses related to stock options are measured based on grant date at fair value using the Black-Scholes option pricing model and restricted stock awards based on grant date at fair value using the closing stock price. The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years.

Stock-based expenses related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) are measured based on grant date at fair value using the Black-Scholes option pricing

model. The Company recognizes stock-based expenses related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount and also allows employees to reduce their percentage election once during a six month purchase period (December 15 and June 15 of each fiscal year), but not increase that election until the next one-year offering period. The ESPP also includes a re-set provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date.

Stock-based expenses related to performance share grants, which are awarded to executive officers, are measured based on grant date at fair value using a Monte Carlo simulation model and expensed on a straight-line basis, net of estimated forfeitures, over the service period of the awards, which is generally the vesting term of three years.

The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based expense. The Company recognizes stock-based expense equal to the grant date fair value of the restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally four years.

Advertising Expenses

Advertising is expensed as incurred. Advertising expense was $660 million, $482 million and $373 million for fiscal 2020, 2019 and 2018, respectively.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the consolidated statements of operations in the period that includes the enactment date.

The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.

Foreign Currency Translation

The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statement of comprehensive income. Foreign currency transaction gains and losses are included in other income in the consolidated statement of operations for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.

Warranties and Indemnification

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 2020

ASU 2016-02

In February 2016, the FASB issued Topic 842, which requires lessees to record most leases on their balance sheet but recognize the expenses on their statement of operations and cash flows on the statement of cash flows in a manner similar to previous accounting guidance. Topic 842 generally requires that lessees recognize operating and financing liabilities 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.

Effective on February 1, 2019, the Company adopted the provisions and expanded disclosure requirements described in Topic 842. The Company adopted the standard using the transitional provision of Accounting Standards Update 2018-11, “Leases (Topic 842) Targeted Improvements”, which allows for the adoption of Topic 842 at the beginning of the fiscal year of adoption. As such, the consolidated balance sheet as of January 31, 2020 is not comparable with that as of January 31, 2019. The Company elected the package of practical expedients and therefore did not reassess prior conclusions on whether contracts are or contain a lease, lease classification, and initial direct costs. The Company did not use hindsight when determining the lease term.

Upon adoption of Topic 842, leases previously designated as operating leases are now reported on the consolidated balance sheet, which has materially increased total assets and liabilities. Specifically, the Company recorded operating lease ROU assets of approximately $2.9 billion and corresponding operating lease liabilities of $3.1 billion on its opening consolidated balance sheet. Leases previously designated as capital leases are now identified as finance leases and continue to be reported on the consolidated balance sheet. In addition, the previously recorded financing obligation and building asset associated with the Company's leased facility at 350 Mission Street was derecognized and the lease is now accounted for as a finance lease on the Company's consolidated balance sheet. Topic 842 did not have a material impact to the Company’s consolidated statement of operations or net cash provided by operating activities. The adoption did not impact the Company’s compliance with its debt covenants.

Accounting Pronouncements Pending Adoption

ASU 2016-13

In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company's accounts receivables, certain financial instruments and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 will be effective for fiscal 2021, including interim periods within that reporting period. The Company does not expect the adoption of ASU 2016-13 to be material.

ASU 2019-12

In December 2019, the FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”)”, which modifies and eliminates certain exceptions to the general principles of ASC 740, Income taxes. The new standard is effective for interim and annual periods beginning after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of the adoption to its consolidated financial statements.

Reclassifications

Certain reclassifications to fiscal 2019 and fiscal 2018 balances were made to conform to the current period presentation in the consolidated balance sheets and statements of operations. None of these reclassifications had an impact to the Company's key metrics including Total Assets, Total Revenues, Income From Operations, Net Income or Operating Cash Flows.

Revenues

12 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

Disaggregation of Revenue

Subscription and Support Revenue by the Company's service offerings

Subscription and support revenues consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Sales Cloud	$	4,598	$	4,040	$	3,588
Service Cloud	4,466		3,621		2,883
Salesforce Platform and Other (1)	4,473		2,854		1,913
Marketing and Commerce Cloud	2,506		1,898		1,382
	$	16,043	$	12,413	$	9,766

(1) Includes approximately $652 million of revenue in Fiscal 2020 from the Tableau acquisition.

Total Revenue by Geographic Locations

Revenues by geographical region consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Americas	$	12,051	$	9,445	$	7,621
Europe	3,430		2,553		1,916
Asia Pacific	1,617		1,284		1,003
	$	17,098	$	13,282	$	10,540

Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 96 percent during fiscal 2020, 2019 and 2018, respectively. No other country represented more than ten percent of total revenue during fiscal 2020, 2019 and 2018, respectively.

Contract Balances

Contract Asset

As described in Note 1, subscription and support revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. License revenue is recognized as the licenses are delivered. The Company records a contract asset when revenue recognized on a contract exceeds the billings. The Company's standard billing terms are annual in advance. Contract assets were $449 million as of January 31, 2020 as compared to $215 million as of January 31, 2019, and are included in prepaid expenses and other current assets on the consolidated balance sheet. Contract assets as of January 31, 2020 include the acquired contract asset balance from the Tableau acquisition in August 2019 of $131 million. Impairments of contract assets were immaterial during fiscal 2020, 2019 and 2018, respectively.

Unearned Revenue

Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. The Company generally invoices customers in annual installments. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.

The change in unearned revenue was as follows (in millions):


	Fiscal Year Ended January 31,
	2020		2019
Unearned revenue, beginning of period	$	8,564	$	6,995
Billings and other (1)	18,662		14,770
Contribution from contract asset	101		13
Revenue recognized ratably over time	(15,586)		(12,426)
Revenue recognized over time as delivered	(716)		(629)
Revenue recognized at a point in time	(796)		(227)
Unearned revenue from business combinations	433		68
Unearned revenue, end of period	$	10,662	$	8,564

(1) Other includes, for example, the impact of foreign currency translation.

Revenue recognized ratably over time is generally billed in advance and includes Cloud Services, the related support and advisory services.

Revenue recognized over time as delivered includes professional services billed on a time and materials basis, fixed fee professional services and training classes that are primarily billed, delivered and recognized within the same reporting period.

Revenue recognized at a point in time substantially consists of on-premise software licenses.

Approximately 50 percent of total revenue recognized in fiscal 2020 is from the unearned revenue balance as of January 31, 2019.

Remaining Performance Obligation

Transaction price allocated to the remaining performance obligation, referred to by the Company as remaining performance obligation, represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of delivery of software licenses, average contract terms and foreign currency exchange rates. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors.

The Company excludes amounts related to performance obligation that are billed and recognized as they are delivered. This primarily consists of professional services contracts that are on a time-and-materials basis.

The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.

Remaining performance obligation consisted of the following (in billions):


	Current		Noncurrent		Total
As of January 31, 2020 (1)	$	15.0	$	15.8	$	30.8

As of January 31, 2019	$	11.9	$	13.8	$	25.7

(1) Includes approximately $450 million and $650 million of remaining performance obligation related to the Salesforce.org business combination in June 2019 and the Tableau acquisition in August 2019, respectively.

Investments

12 Months Ended

Jan. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Marketable Securities

At January 31, 2020, marketable securities consisted of the following (in millions):


Investments classified as Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	2,199	$	9	$	(1)	$	2,207
U.S. treasury securities	182		1		0		183
Mortgage backed obligations	225		1		0		226
Asset backed securities	779		2		0		781
Municipal securities	157		1		0		158
Foreign government obligations	69		0		0		69
U.S. agency obligations	12		0		0		12

Time deposits	1		0		0		1
Covered bonds	165		0		0		165
Total marketable securities	$	3,789	$	14	$	(1)	$	3,802

At January 31, 2019, marketable securities consisted of the following (in millions):


Investments classified as Marketable Securities	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	1,027	$	0	$	(8)	$	1,019
U.S. treasury securities	89		0		(1)		88
Mortgage backed obligations	79		0		(1)		78
Asset backed securities	245		0		(1)		244
Municipal securities	104		0		0		104
Foreign government obligations	58		0		(1)		57
U.S. agency obligations	4		0		0		4
Time deposits	4		0		0		4
Covered bonds	75		0		0		75
Total marketable securities	$	1,685	$	0	$	(12)	$	1,673

The contractual maturities of the investments classified as marketable securities are as follows (in millions):


	As of
	January 31, 2020		January 31, 2019
Due within 1 year	$	1,332	$	482
Due in 1 year through 5 years	2,466		1,189
Due in 5 years through 10 years	4		2
	$	3,802	$	1,673

As of January 31, 2020, the following marketable securities were in an unrealized loss position (in millions):


	Less than 12 Months						12 Months or Greater						Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate notes and obligations	$	285	$	(1)	$	0	$	0	$	285	$	(1)

The unrealized losses for each of the fixed rate marketable securities were less than $1 million. The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of January 31, 2020, such as the Company's intent to hold the investment and whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment's amortized basis. The Company expects to receive the full principal and interest on all of these marketable securities.

Investment Income

Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Interest income	$	117	$	61	$	37
Realized gains	2		1		1
Realized losses	(1)		(5)		(2)
Investment income	$	118	$	57	$	36

Strategic Investments

Strategic investments by form and measurement category as of January 31, 2020 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	370	$	1,502	$	40	$	1,912
Debt securities	0		0		51		51
Balance as of January 31, 2020	$	370	$	1,502	$	91	$	1,963

Strategic investments by form and measurement category as of January 31, 2019 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	436	$	785	$	50	$	1,271
Debt securities	0		0		31		31
Balance as of January 31, 2019	$	436	$	785	$	81	$	1,302

Measurement Alternative Adjustments

The components of privately held equity securities accounted for under the measurement alternative included in the table above are presented below (in millions):


	Fiscal Year Ended January 31,
	2020		2019
Carrying amount, beginning of period	$	785	$	548
Adjustments related to privately held equity securities:
Net additions (1)	507		95
Upward adjustments	280		174
Impairments and downward adjustments	(70)		(32)
Carrying amount, end of period	$	1,502	$	785

(1) Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.

In April 2019 the Company made a strategic investment of $100 million in cash for common shares of a technology company in a private placement concurrent with the investee company's initial public offering. In September 2019, the Company made a strategic investment of $300 million in cash for preferred shares of a technology company in a preferred stock financing. Additionally, in November 2019, the Company made a strategic investment of $150 million in cash for preferred shares of a technology company in a preferred stock financing. These investments were made as part of the Company's overall strategy of investing in complementary companies to facilitate potential alignment and integration into the Company’s offerings or product features. These investments are accounted for using the measurement alternative.

Since the adoption of ASU 2016-01 on February 1, 2018, cumulative impairments and downward adjustments were $102 million and cumulative upward adjustments were $454 million through January 31, 2020.

Gains (losses) on strategic investments, net

The components of gains and losses on strategic investments are presented below (in millions):


4	Fiscal Year Ended January 31,
	2020		2019		2018
Unrealized gains recognized on publicly traded equity securities, net	$	138	$	345	$	0
Unrealized gains recognized on privately held equity securities, net	208		133		19
Realized gains on sales of equity securities, net	95		74		0
Losses on debt securities, net	(14)		(10)		0
Gains on strategic investments, net	$	427	$	542	19

Realized gains on sales of equity securities, net reflects the difference between the sale proceeds and the carrying value of the equity security at the beginning of the period or the purchase date, if later. The cumulative net realized gain, measured as the sale price less the initial purchase price, for equity securities exited during fiscal 2020 is $353 million.

Net unrealized gains recognized in fiscal 2020 for strategic investments still held as of January 31, 2020 were $290 million.

Derivatives

12 Months Ended

Jan. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Details on outstanding foreign currency derivative contracts are presented below (in millions):


	As of
	January 31, 2020		January 31, 2019
Notional amount of foreign currency derivative contracts	$	5,543	$	4,496
Fair value of foreign currency derivative contracts	4		25

The fair value of the Company’s outstanding derivative instruments not designated as hedging instruments are summarized below (in millions):


		As of
	Balance Sheet Location	January 31, 2020		January 31, 2019
Derivative Assets
Foreign currency derivative contracts	Prepaid expenses and other current assets	$	28	$	42
Derivative Liabilities
Foreign currency derivative contracts	Accounts payable, accrued expenses and other liabilities	$	24	$	17

Gains (losses) on derivative instruments not designated as hedging instruments recorded in other income in the consolidated statements of operations are summarized below (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Foreign currency derivative contracts	$	(9)	$	34	$	15

Fair Value Measurement

12 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

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 January 31, 2020 and indicates the fair value hierarchy of the valuation (in millions):


Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of January 31, 2020
Cash equivalents (1):
Time deposits	$	0	$	746	$	0	$	746
Money market mutual funds	1,293		0		0		1,293
Marketable securities:
Corporate notes and obligations	0		2,207		0		2,207
U.S. treasury securities	0		183		0		183
Mortgage backed obligations	0		226		0		226
Asset backed securities	0		781		0		781
Municipal securities	0		158		0		158
Foreign government obligations	0		69		0		69
U.S. agency obligations	0		12		0		12

Time deposits	0		1		0		1
Covered bonds	0		165		0		165
Strategic investments:
Publicly held equity securities	370		0		0		370

Foreign currency derivative contracts (2)	0		28		0		28
Total assets	$	1,663	$	4,576	$	0	$	6,239
Liabilities:
Foreign currency derivative contracts (3)	0		24		0		24
Total liabilities	$	0	$	24	$	0	$	24

___________

(1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2020, in addition to $2.1 billion of cash.

(2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2020.

(3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of January 31, 2020.

The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2019 and indicates the fair value hierarchy of the valuation (in millions):


Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of January 31, 2019
Cash equivalents (1):
Time deposits	$	0	$	314	$	0	$	314
Money market mutual funds	1,234		0		0		1,234
Marketable securities:
Corporate notes and obligations	0		1,019		0		1,019
U.S. treasury securities	0		88		0		88
Mortgage backed obligations	0		78		0		78
Asset backed securities	0		244		0		244
Municipal securities	0		104		0		104
Foreign government obligations	0		57		0		57
U.S. agency obligations	0		4		0		4
Time deposits	0		4		0		4
Covered bonds	0		75		0		75
Strategic investments:
Publicly held equity securities	436		0		0		436

Foreign currency derivative contracts (2)	0		42		0		42
Total assets	$	1,670	$	2,029	$	0	$	3,699
Liabilities:
Foreign currency derivative contracts (3)	0		17		0		17
Total liabilities	$	0	$	17	$	0	$	17

______________

(1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheet in addition to $1.1 billion of cash.

(2) Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet.

(3) Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet.

Strategic investments measured and recorded at fair value on a non-recurring basis

The Company's privately held debt and equity securities and equity method investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company classifies these assets as Level 3 within the fair value hierarchy. For example, the Company's privately held equity securities that have been remeasured are classified within Level 3 in the fair value hierarchy because the value is based on valuation methods using the observable transaction price and other unobservable inputs including the volatility, rights, and obligations of the securities the Company holds. The Company's privately held debt and equity securities and equity method investments amounted to $1.6 billion as of January 31, 2020 and $0.9 billion as of January 31, 2019.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment and Other Balance Sheet Accounts

12 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment and Other Balance Sheet Accounts

Property and Equipment

Property and equipment, net consisted of the following (in millions):


	As of
	January 31, 2020		January 31, 2019
Land	$	184	$	184
Buildings and building improvements	777		629
Computers, equipment and software	1,608		1,735
Furniture and fixtures	226		188
Leasehold improvements	1,381		1,098
Property and equipment, gross	4,176		3,834
Less accumulated depreciation and amortization	(1,801)		(1,783)
Property and equipment, net	$	2,375	$	2,051

Depreciation and amortization expense totaled $455 million, $411 million and $373 million during fiscal 2020, 2019 and 2018, respectively.

Computers, equipment and software at January 31, 2019 included a total of $671 million acquired under capital lease agreements, as reported prior to the adoption of Topic 842. Accumulated amortization relating to computers, equipment and software acquired under capital leases totaled $480 million at January 31, 2019. Amortization of assets acquired under capital leases was included in depreciation and amortization expense for fiscal 2019 and 2018.

Other Balance Sheet Accounts

Accounts payable, accrued expenses and other liabilities as of January 31, 2020 included approximately $1.5 billion of accrued compensation as compared to $1.2 billion as of January 31, 2019.

Business Combinations

12 Months Ended

Jan. 31, 2020

Business Combinations [Abstract]

Business Combinations

Fiscal Year 2020

Tableau Software, Inc.

In August 2019, the Company acquired all outstanding stock of Tableau Software, Inc. (“Tableau”) which provides a self-service analytics platform that enables users to easily access, prepare, analyze, and present findings in their data. The Company has included the financial results of Tableau in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were approximately $40 million and were recorded in general and administrative expense. The acquisition date fair value of the consideration transferred for Tableau was approximately $14.8 billion, which consisted of the following (in millions):


	Fair Value
Cash	$	1
Common stock issued	14,552
Fair value of stock options and restricted stock awards assumed	292
Total	$	14,845

The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 1.103 was applied to convert Tableau's outstanding equity awards for Tableau's common stock into equity awards for shares of the Company’s common stock.

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions):


	Fair Value
Cash and cash equivalents	$	644
Marketable securities	456
Accounts receivable	174
Contract asset	131
Operating lease right-of-use assets	361
Other assets	116
Acquired customer contract asset	56
Goodwill	10,806
Intangible assets	3,252
Accounts payable, accrued expenses and other liabilities	(257)
Unearned revenue	(242)
Operating lease liabilities	(332)
Deferred tax liability and income tax payable	(320)
Net assets acquired	$	14,845

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The provisional measurements of fair value for income taxes payable and deferred taxes set forth above may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions):


	Fair Value		Useful Life
Developed technology	$	2,000	5 years
Customer relationships	1,231		8 years
Other purchased intangible assets	21		1 year
Total intangible assets subject to amortization	$	3,252

Developed technology represents the estimated fair value of Tableau's data analysis technologies. Customer relationships represent the estimated fair values of the underlying relationships with Tableau customers.

The Company assumed unvested stock options and restricted stock awards with an estimated fair value of $1.5 billion. Of the total consideration, $292 million was allocated to the purchase consideration and $1.2 billion was allocated to future services and will be expensed over the remaining service periods on a straight-line basis.

The amounts of revenue and earnings of Tableau included in the Company’s consolidated statement of operations from the acquisition date of August 1, 2019 to January 31, 2020 are as follows (in millions):


Total revenues	$	689
Pretax loss	(503)

The following pro forma financial information summarizes the combined results of operations for the Company and Tableau, as though the companies were combined as of the beginning of the Company’s fiscal 2019.

The unaudited pro forma financial information was as follows (in millions):


	Fiscal Year Ended January 31,
	2020		2019
Total revenues	$	17,599	$	14,256
Pretax income (loss)	270		(82)
Net income (loss)	(292)		297

The pro forma financial information for all periods presented above has been calculated after adjusting the results of Tableau to reflect the business combination accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets and the stock-based compensation expense for unvested stock options and restricted stock awards assumed as though the acquisition occurred as of the beginning of the Company’s fiscal year 2019. The historical consolidated financial information has been adjusted in the pro forma combined financial results to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the Company’s fiscal 2019.

The pro forma financial information for fiscal 2020 and 2019 combines the historical results of the Company for fiscal 2020 and 2019, the adjusted historical results of Tableau for the six months ended June 30, 2019 and the twelve months ended December 31, 2018, considering the differences in reporting periods and the date the Company acquired Tableau, and the effects of the pro forma adjustments listed above. Prior to being acquired, Tableau's fiscal year concluded on December 31.

ClickSoftware Technologies, Ltd.

In October 2019, the Company acquired all outstanding stock of ClickSoftware Technologies, Ltd. ("ClickSoftware"), which provides field service management solutions. The Company has included the financial results of ClickSoftware, which were not material, in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material. The acquisition date fair value of the consideration transferred for ClickSoftware was approximately $1.4 billion, which consisted of the following (in millions):


	Fair Value
Cash	$	587
Common stock issued	663
Fair value of stock options assumed	81
Fair value of pre-existing relationship	55
Total	$	1,386

The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.109592 was applied to convert ClickSoftware's outstanding equity awards for ClickSoftware's common stock into equity awards for shares of the Company's common stock.

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions):


	Fair Value
Cash and cash equivalents	$	38
Accounts receivable	28

Goodwill	1,132
Intangible assets	276
Other assets	33
Accounts payable, accrued expenses and other liabilities, current and noncurrent	(55)
Unearned revenue	(40)
Deferred tax liability	(26)
Net assets acquired	$	1,386

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are preliminary, based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions):


	Fair Value		Useful Life
Developed technology	$	215	4 years
Customer relationships	61		8 years
Total intangible assets subject to amortization	$	276

Developed technology represents the fair value of ClickSoftware's field service management technology. Customer relationships represent the fair values of the underlying relationships with ClickSoftware customers.

The Company assumed unvested options with a fair value of $103 million. Of the total consideration, $81 million was allocated to the purchase consideration and $22 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis.

The Company invested $14 million in a noncontrolling equity investment in ClickSoftware in July 2015. The Company recognized a gain of approximately $39 million as a result of remeasuring its prior equity interest in ClickSoftware held before the business combination. The gain is included in gains on strategic investments, net in the consolidated statement of operations.

Salesforce.org

In June 2019, Salesforce.org, the independent nonprofit social enterprise that resold the Company's service offerings to non-profit and higher education organizations, was combined with the Company. The Company has included the financial results of Salesforce.org, which are not material to income from operations in fiscal 2020, in the consolidated financial statements from the date of acquisition. The business combination with Salesforce.org in June 2019 contributed approximately $228 million total revenues in fiscal 2020. The transaction costs associated with the acquisition were not material.

The Company paid a one-time cash payment of $300 million for all shares of Salesforce.org to the independent, non-consolidated Salesforce.com Foundation (also referred to as the Foundation), which is considered a related party as discussed in Note 16 "Related-Party Transactions."

Prior to the business combination, the Company and Salesforce.org had existing reseller and resource sharing agreements that, among other things, allowed Salesforce.org the right to resell select Company offerings and related upgraded support to non-profit organizations and for-profit and non-profit educational institutions free of charge or at discounted prices. Both agreements were effectively settled upon consummation of the business combination.

Using an income approach, the Company assessed the contractual terms and conditions of the reseller agreement as compared to current market conditions, such as the cost to service contracts sold under the reseller agreement, and determined that the terms were not at fair value. Specifically, the reseller agreement provided favorable terms to Salesforce.org by providing the Company's products and services at no cost. As a result, the Company recorded a non-cash charge of approximately $166 million within operating expenses on the date the transaction closed. The loss represents the difference between the value of the remaining performance obligation recorded by Salesforce.org under the reseller agreement and the value of the remaining performance obligation if those same contracts had been sold at fair value.

The following table summarizes the business combination (in millions):


Cash	$	300
Loss on settlement of Salesforce.org reseller agreement	(166)
Total	$	134

The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions):


	Fair Value
Cash and cash equivalents	$	54
Deferred tax asset	59
Other current and noncurrent assets	46
Goodwill	164
Accounts payable, accrued expenses and other liabilities, current and noncurrent	(39)
Unearned revenue	(138)
Deferred income taxes and income taxes payable	(12)
Net assets acquired	$	134

The excess of purchase consideration over the fair value of net liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

MapAnything

In May 2019, the Company acquired all outstanding stock of MapAnything, Inc. ("MapAnything"), which integrates map-based visualization, asset tracking and route optimization for field sales and service teams. The Company has included the financial results of MapAnything, which are not material, in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material.

The acquisition date fair value of the consideration transferred for MapAnything was approximately $213 million, which consisted of cash and the fair value of stock options and restricted stock awards assumed. The Company recorded approximately $53 million for developed technology and customer relationships with estimated useful lives of four to five years. The Company recorded approximately $152 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities from integrating MapAnything's technology with the Company's other offerings. The majority of the goodwill balance is not deductible for U.S. income tax purposes. The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

The Company invested $23 million in a noncontrolling equity investment in MapAnything prior to the acquisition. The Company recognized a gain of approximately $9 million as a result of remeasuring its prior equity interest in MapAnything held before the business combination. The gain is included in gains on strategic investments, net in the consolidated statement of operations.

Fiscal Year 2019

Datorama

In August 2018, the Company acquired all outstanding stock of Datorama, Inc. ("Datorama"), which provides a platform for enterprises, agencies and publishers to integrate data across marketing channels and data sources. The Company has included the financial results of Datorama, which are not material, in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material. The acquisition date fair value of the consideration transferred for Datorama was approximately $766 million, which consisted of the following (in millions):


	Fair Value
Cash	$	136
Common stock issued	537
Fair value of stock options and restricted stock awards assumed	93
Total	$	766

The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.4133 was applied to convert Datorama's outstanding equity awards for Datorama's common stock into equity awards for shares of the Company's common stock.

The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions):


	Fair Value
Cash and cash equivalents	$	21
Accounts receivable	9
Other current and noncurrent assets	3
Intangible assets	202
Goodwill	586
Accounts payable, accrued expenses and other liabilities, current and noncurrent	(10)
Unearned revenue	(4)
Deferred tax liability	(41)
Net assets acquired	$	766

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions):


	Fair Value		Useful Life
Developed technology	$	159	4 years
Customer relationships	42		8 years
Other purchased intangible assets	1		1 year
Total intangible assets subject to amortization	$	202

Developed technology represents the fair value of Datorama's technology. Customer relationships represent the fair values of the underlying relationships with Datorama customers. The goodwill balance is primarily attributed to assembled workforce and expanded market opportunities when integrating Datorama's technology with the Company's other offerings. The goodwill balance is not deductible for U.S. income taxes purposes.

The Company assumed unvested options and restricted stock with a fair value of $170 million. Of the total consideration, $93 million was allocated to the purchase consideration and $77 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis.

MuleSoft

In May 2018, the Company acquired all outstanding stock of MuleSoft, which provides a platform for building application networks that connect enterprise apps, data and devices, across any cloud and on-premise solution. The Company has included the financial results of MuleSoft in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were approximately $24 million and were recorded in general and administrative expense. The acquisition date fair value of the consideration transferred for MuleSoft was approximately $6.4 billion, which consisted of the following (in millions):


	Fair Value
Cash	$	4,860
Common stock issued	1,178
Fair value of stock options and restricted stock awards assumed	387
Total	$	6,425

The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.3680 was applied to convert MuleSoft’s outstanding equity awards for MuleSoft’s common stock into equity awards for shares of the Company’s common stock.

The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in millions):


	Fair Value
Cash and cash equivalents	$	57
Marketable securities	233
Accounts receivable	69
Contract asset	122
Other current and noncurrent assets	29
Acquired customer contract asset, current and noncurrent - intangible asset	61
Intangible assets	1,279

Goodwill	4,816
Accounts payable, accrued expenses and other liabilities, current and noncurrent	(40)
Unearned revenue	(57)

Deferred tax liability	(144)
Net assets acquired	$	6,425

The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The deferred tax liability established was primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in millions):


	Fair Value		Useful Life
Developed technology	$	224	4 years
Customer relationships	1,046		8 years
Other purchased intangible assets	9		1 year
Total intangible assets subject to amortization	$	1,279

Developed technology represents the fair value of MuleSoft's Anypoint technology. Customer relationships represent the fair values of the underlying relationships with MuleSoft customers. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating MuleSoft's Anypoint technology with the Company’s other offerings. The goodwill balance is not deductible for U.S. income tax purposes.

The Company assumed unvested options and restricted stock with a fair value of $824 million. Of the total consideration, $387 million was allocated to the purchase consideration and $437 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis.

The amounts of revenue and pretax loss of MuleSoft included in the Company’s consolidated statement of operations from the acquisition date in May 2018 through January 31, 2019 are as follows (in millions):


Total revenues	$	431
Pretax loss	(286)

CloudCraze

In April 2018, the Company acquired all outstanding stock of CloudCraze LLC ("CloudCraze"), for consideration consisting of cash and equity awards assumed. CloudCraze is a commerce platform that allows businesses to generate online revenue and scale for growth. CloudCraze delivers interactions across commerce, sales, marketing and service. The Company has included the financial results of CloudCraze in the consolidated financial statements from the date of acquisition, which have not been material to date. The transaction costs associated with the acquisition were not material.

The acquisition date fair value of the consideration transferred for CloudCraze was approximately $190 million, which consisted of cash and the fair value of stock options and restricted stock awards assumed. The Company recorded approximately $58 million for developed technology and customer relationships with estimated useful lives of one to seven years. The Company recorded approximately $134 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities from integrating CloudCraze's technology with the Company's other offerings. The goodwill balance is deductible for U.S. income tax purposes.

Fiscal Year 2018

During fiscal 2018, the Company acquired two companies for an aggregate of $38 million in cash and equity, net of cash acquired, and has included the financial results of these companies in its consolidated financial statements from the dates of acquisition. The transactions were not material to the Company and the costs associated with the acquisitions were not material. The Company accounted for the transactions as business combinations. In allocating the purchase consideration based on estimated fair values, the Company recorded $3 million of intangible assets and $35 million of goodwill. The majority of the goodwill balance associated with these business combinations is deductible for U.S. income tax purposes.

Intangible Assets Acquired Through Business Combinations and Goodwill

12 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Acquired Through Business Combinations and Goodwill

Intangible assets acquired through business combinations

Intangible assets acquired through business combinations are as follows (in millions):


	Intangible Assets, Gross										Accumulated Amortization							Intangible Assets, Net	Weighted Average Remaining Useful Life (Years)
	January 31, 2019		Additions and retirements, net		January 31, 2020		January 31, 2019		Expense and retirements, net		January 31, 2020		January 31, 2019		January 31, 2020
Acquired developed technology	$	1,429	$	2,169	$	3,598	$	(889)	$	(360)	$	(1,249)	$	540	$	2,349	4.1
Customer relationships	1,938		1,314		3,252		(560)		(328)		(888)		1,378		2,364		6.5
Other (1)	52		20		72		(47)		(14)		(61)		5		11		0.9
Total	$	3,419	$	3,503	$	6,922	$	(1,496)	$	(702)	$	(2,198)	$	1,923	$	4,724	5.3

(1) Included in other are trade names, trademarks and territory rights.

Amortization of intangible assets resulting from business combinations for fiscal 2020, 2019 and 2018 was $792 million, $447 million and $287 million, respectively.

The expected future amortization expense for intangible assets as of January 31, 2020 is as follows (in millions):


Fiscal Period:
Fiscal 2021	$	1,059
Fiscal 2022	984
Fiscal 2023	833
Fiscal 2024	750
Fiscal 2025	513
Thereafter	585
Total amortization expense	$	4,724

Customer contract assets acquired through business combinations

Customer contract assets resulting from business combinations reflects the fair value of future billings of amounts that are contractually committed by acquired companies' existing customers as of the acquisition date. Customer contract assets are amortized over the corresponding contract terms. Customer contract assets resulting from business combinations for the fiscal year ended January 31, 2020 were $93 million, including $56 million resulting from the Tableau acquisition in August 2019, and $121 million for the fiscal year ended January 31, 2019, respectively, and are included in other assets on the consolidated balance sheets.

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter.

The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):


Balance at January 31, 2018	$	7,314
Acquisitions	5,536
Other adjustments	1
Balance as of January 31, 2019	$	12,851
Tableau	10,806
ClickSoftware	1,132
Salesforce.org	164
MapAnything	152
Other acquisitions and adjustments (1)	29
Balance as of January 31, 2020	$	25,134

(1) Adjustments include adjustments of acquisition date fair value, including the effect of foreign currency translation.

Debt

12 Months Ended

Jan. 31, 2020

Debt Disclosure [Abstract]

Debt

The carrying values of the Company's borrowings were as follows (in millions):


Instrument	Date of issuance	Maturity date	Effective interest rate for fiscal 2020	January 31, 2020		January 31, 2019
2021 Term Loan (1)	May 2018	May 2021	3.07%	$	0	$	499
2023 Senior Notes	April 2018	April 2023	3.26%	995		993
2028 Senior Notes	April 2018	April 2028	3.70%	1,489		1,488
Loan assumed on 50 Fremont	February 2015	June 2023	3.75%	193		196

Total carrying value of debt				2,677		3,176
Less current portion of debt				(4)		(3)
Total noncurrent debt				$	2,673	$	3,173

(1) The Company repaid in full the 2021 Term Loan in fiscal 2020.

Each of the Company's debt agreements requires it to maintain compliance with certain debt covenants, all of which the Company was in compliance with as of January 31, 2020.

The total estimated fair value of the Company's 2023 and 2028 Senior Notes at January 31, 2020 was $2.7 billion. The fair value was determined based on the closing trading price per $100 of the 2023 and 2028 Senior Notes as of the last day of trading for the fourth quarter of fiscal 2020 and is deemed a Level 2 liability within the fair value measurement framework.

The expected future principal payments for all borrowings as of January 31, 2020 is as follows (in millions):


Fiscal period:
Fiscal 2021	$	4
Fiscal 2022	4
Fiscal 2023	4
Fiscal 2024	1,182

Thereafter	1,500
Total principal outstanding	$	2,694

Revolving Credit Facility

In April 2018, the Company entered into a Second Amended and Restated Credit Agreement ("Revolving Loan Credit Agreement") with Wells Fargo Bank, National Association, and certain other institutional lenders that provides for $1.0 billion unsecured revolving credit facility (“Credit Facility”) that matures in April 2023. The Revolving Loan Credit Agreement amended and restated the Company’s existing revolving credit facility dated July 2016. The Company may use the proceeds of

future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted acquisitions.

There were no outstanding borrowings under the Credit Facility as of January 31, 2020. The Company continues to pay a commitment fee on the available amount of the Credit Facility, which is included within other expense in the Company's consolidated statement of operations.

Interest Expense on Debt

The following table sets forth total interest expense recognized related to debt (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Contractual interest expense	$	106	$	106	$	23
Amortization of debt issuance costs	4		16		5
Amortization of debt discount	0		4		26
	$	110	$	126	$	54

Stockholders' Equity

12 Months Ended

Jan. 31, 2020

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

The Company maintains the following stock plans: the ESPP, the 2013 Equity Incentive Plan and the 2014 Inducement Equity Incentive Plan (“2014 Inducement Plan”).

As of January 31, 2020 and January 31, 2019, $107 million and $76 million, respectively, was withheld on behalf of employees for future purchases under the ESPP and is recorded in accrued compensation.

From February 1, 2006 through July 2013, options issued had a term of five years. After July 2013, options issued have a term of seven years.

The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share:


	Fiscal Year Ended January 31,
Stock Options	2020					2019				2018
Volatility	27 - 30		%	27 - 28		%	28 - 31		%
Estimated life	3.5 years			3.5 years			3.5 years
Risk-free interest rate	1.6 - 2.5		%	2.5 - 3.0		%	1.4 - 2.3		%
Weighted-average fair value per share of grants	$	39.59		$	28.89		$	22.71


	Fiscal Year Ended January 31,
ESPP	2020					2019				2018
Volatility	28 - 33		%	23 - 26		%	21 - 28		%
Estimated life	0.75 years			0.75 years			0.75 years
Risk-free interest rate	1.6 - 2.1		%	2.0 - 2.6		%	1.1 - 1.7		%
Weighted-average fair value per share of grants	$	41.43		$	32.90		$	23.64

The Company estimated its future stock price volatility considering both its observed option-implied volatilities and its historical volatility calculations. Management believes this is the best estimate of the expected volatility over the expected life of its stock options and stock purchase rights.

The estimated life for the stock options was based on an analysis of historical exercise activity. The risk-free interest rate is based on the rate for a U.S. government security with the same estimated life at the time of the option grant and the stock purchase rights.

The estimated forfeiture rate applied is based on historical forfeiture rates. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option pricing model.

In fiscal 2020 and 2019, the Company granted performance-based restricted stock unit awards to certain employees, including the Chair of the Board and Chief Executive Officer and other senior executives. The performance-based restricted stock unit awards are subject to vesting based on a performance-based condition and a service-based condition. At the end of the three-year service period, based on the Company's share price performance, these performance-based restricted stock units will vest in a percentage of the target number of shares between 0 and 200%, depending on the extent the performance condition is achieved.

Stock option activity, excluding the ESPP is as follows:


		Options Outstanding
	Shares Available for Grant (in millions)	Outstanding Stock Options (in millions)	Weighted- Average Exercise Price		Aggregate Intrinsic Value (in millions)
Balance as of January 31, 2019	64	26	$	74.15
Increase in shares authorized:
2013 Equity Incentive Plan	36	0	0.00
2014 Inducement Plan	2	0	0.00
Assumed equity plans	13	0	0.00
Options granted under all plans	(10)	10	132.72
Restricted stock activity	(28)	0	0.00
Performance-based restricted stock units	(2)	0	0.00

Exercised	0	(7)	55.67

Plan shares expired or canceled	2	(2)	116.84
Balance as of January 31, 2020	77	27	$	98.56	$	2,222
Vested or expected to vest		25	$	95.80	$	2,155
Exercisable as of January 31, 2020		14	$	66.34	$	1,589

The total intrinsic value of the options exercised during fiscal 2020, 2019, and 2018 was $799 million, $784 million, and $373 million, respectively. The intrinsic value of options exercised during each fiscal year is calculated as the difference between the market value of the stock at the time of exercise and the exercise price of the stock option.

The weighted-average remaining contractual life of vested and expected to vest options is approximately four years.

As of January 31, 2020, options to purchase 14 million shares were vested at a weighted-average exercise price of $66.34 per share and had a remaining weighted-average contractual life of approximately three years. The total intrinsic value of these vested options based on the market value of the stock as of January 31, 2020 was approximately $1.6 billion.

During fiscal 2020, the Company recognized stock-based expense related to its equity plans for employees and non-employee directors of $1.8 billion. As of January 31, 2020, the aggregate stock compensation remaining to be recognized to costs and expenses was approximately $4.0 billion.

The aggregate stock compensation remaining to be recognized as of January 31, 2020 is as follows (in millions):


Fiscal Period:
Fiscal 2021	$	1,787
Fiscal 2022	1,254
Fiscal 2023	778
Fiscal 2024	197


Total stock compensation	$	4,016

The expected stock compensation remaining to be recognized reflects only outstanding stock awards as of January 31, 2020 and assumes no forfeiture activity. The aggregate stock compensation remaining to be recognized to costs and expenses will be recognized over a weighted-average period of two years.

The following table summarizes information about stock options outstanding as of January 31, 2020:


	Options Outstanding							Options Exercisable
Range of Exercise Prices	Number Outstanding (in millions)	Weighted- Average Remaining Contractual Life (Years)	Weighted- Average Exercise Price		Number of Shares (in millions)	Weighted- Average Exercise Price
$0.36 to $52.30	5	3.7	$	29.10	4	$	30.55
$54.36 to $75.57	6	3.0	67.41		5	66.08
$76.48 to $113.00	3	3.4	83.71		3	82.59
$118.04	4	5.1	118.04		2	118.04
$122.03 to $158.76	3	6.3	145.38		0	133.49
$161.50	6	6.1	161.50		0	0.00

	27	4.5	$	98.56	14	$	66.34

Restricted stock activity is as follows:


	Restricted Stock Outstanding
	Outstanding (in millions)	Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value (in millions)
Balance as of January 31, 2019	21	$	103.33
Granted - restricted stock units and awards	20	156.21
Granted - performance-based stock units	1	161.50
Canceled	(2)	120.93
Vested and converted to shares	(12)	106.39
Balance as of January 31, 2020	28	$	140.14	$	5,128
Expected to vest	24			$	4,452

The restricted stock, which upon vesting entitles the holder to one share of common stock for each share of restricted stock, has an exercise price of $0.001 per share, which is equal to the par value of the Company’s common stock, and generally vests over four years. The total fair value of shares vested during fiscal 2020, 2019 and 2018 was $1.9 billion, $1.1 billion and $1.0 billion, respectively.

Common Stock

The following number of shares of common stock were reserved and available for future issuance at January 31, 2020 (in millions):


Options outstanding			27
Restricted stock awards and units and performance-based stock units outstanding			28
Stock available for future grant or issuance:
2013 Equity Incentive Plan			74
2014 Inducement Plan			2
Acquired equity plans			1
Amended and Restated 2004 Employee Stock Purchase Plan			1
			133

Preferred Stock

The Company’s board of directors has the authority, without further action by stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series. The Company’s board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing a change in control. As of January 31, 2020 and 2019, no shares of preferred stock were outstanding.

Income Taxes

12 Months Ended

Jan. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Domestic	$	686	$	839	$	160
Foreign	20		144		260
	$	706	$	983	$	420

The provision for (benefit from) income taxes consisted of the following (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Current:
Federal	$	8	$	0	$	(7)
State	33		39		2
Foreign	512		117		85
Total	553		156		80
Deferred:
Federal	(41)		(248)		(2)
State	8		(37)		(14)
Foreign	60		2		(4)
Total	27		(283)		(20)
Provision for (benefit from) income taxes	$	580	$	(127)	$	60

In fiscal 2020, the Company recorded a tax provision primarily driven by incremental tax costs associated with the integration of acquired operations and assets and profitable jurisdictions outside of the United States. In fiscal 2019, the Company released a portion of its valuation allowance related to federal and state deferred tax assets, which was partially offset with the increase in unrecognized tax benefits. In addition, the Company recorded tax expense for profitable jurisdictions outside of the United States. In fiscal 2018, the Company recorded tax expense primarily from profitable jurisdictions outside of the United States.

A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
U.S. federal taxes at statutory rate (1)	$	148	$	206	$	142
State, net of the federal benefit	40		79		(21)
Effects of non-U.S. operations (2)	540		379		(35)
Tax credits	(195)		(132)		(107)
Non-deductible expenses	119		63		53
Excess tax benefits related to shared based compensation	(166)		(137)		(135)
Effect of U.S. tax law change	6		43		126
Change in valuation allowance	85		(612)		42
Other, net	3		(16)		(5)
Provision for (benefit from) income taxes	$	580	$	(127)	$	60

(1) The Company's statutory rates were 21.0 percent for fiscal 2020 and fiscal 2019, and 33.8 percent for fiscal 2018 which reflected the corporate tax rate reduction effective January 1, 2018 due to the Tax Act.

(2) Fiscal 2020 Effects of non-U.S. operations included incremental tax costs associated with the integration of acquired operations and assets.

Deferred Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company’s deferred tax assets and liabilities were as follows (in millions):


	As of January 31,
	2020		2019
Deferred tax assets:
Losses and deductions carryforward	$	218	$	173
Deferred stock-based expense	193		145
Tax credits	913		605
Deferred rent expense	0		71
Accrued liabilities	214		138
Lease liabilities	769		0
Financing obligation	9		102
Deferred revenue	4		0
Other	22		22
Total deferred tax assets	2,342		1,256
Less valuation allowance	(290)		(205)
Deferred tax assets, net of valuation allowance	2,052		1,051
Deferred tax liabilities:
Deferred commissions	(449)		(347)
Purchased intangibles	(915)		(382)
Depreciation and amortization	(76)		(145)
Basis difference on strategic and other investments	(69)		(56)
Deferred revenue	0		(17)
Lease right-of-use assets	(695)		0
Total deferred tax liabilities	(2,204)		(947)
Net deferred tax assets (liabilities)	$	(152)	$	104

At January 31, 2020, for federal income tax purposes, the Company had net operating loss carryforwards of approximately $2.4 billion, which expire in fiscal 2021 through 2038 with the exception of post-2017 losses that do not expire, federal research and development tax credits of approximately $626 million, which expire in fiscal 2021 through fiscal 2040, foreign tax credits of approximately $141 million, which expire in fiscal 2021 through fiscal 2029. For California income tax purposes, the Company had net operating loss carryforwards of approximately $781 million which expire beginning in fiscal 2021 through fiscal 2040, California research and development tax credits of approximately $366 million, which do not expire. For other states' income tax purposes, the Company had net operating loss carryforwards of approximately $1.2 billion, which expire beginning in fiscal 2021 through fiscal 2040 and tax credits of approximately $56 million, which expire beginning in fiscal 2021 through fiscal 2040. Utilization of the Company’s net operating loss carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization.

The Company had a valuation allowance of $290 million and $205 million as of January 31, 2020 and January 31, 2019 respectively. The Company regularly assesses the realizability of its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company evaluates and weighs all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. The assessment requires significant judgment and is performed in each of the applicable jurisdictions. The valuation allowance at the end of January 31, 2020 was primarily related to U.S. states’ net operating loss and tax credits, and certain U.S foreign tax credits. The Company will continue to evaluate the need for valuation allowances for its deferred tax assets.

Unrecognized Tax Benefits and Other Considerations

The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company had gross unrecognized tax benefits of $1.4 billion, $852 million, and $304 million as of January 31, 2020, 2019, and 2018 respectively.

A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2020, 2019 and 2018 is as follows (in millions):


	Fiscal Year Ended January 31,
	2020		2019		2018
Beginning of period	852		$	304	$	231
Tax positions taken in prior period:
Gross increases	12		474		31
Gross decreases	(37)		(2)		(6)
Tax positions taken in current period:
Gross increases	640		107		51
Settlements	(27)		(15)		(1)
Lapse of statute of limitations	(4)		(10)		(8)
Currency translation effect	(3)		(6)		6
End of period	$	1,433	$	852	$	304

In fiscal 2020, the Company reported a net increase of approximately $581 million in its unrecognized tax benefits primarily for the incremental tax costs associated with the integration of the acquired operations and assets. In fiscal 2019, the Company reported an increase of approximately $548 million in its recognized tax benefits primarily for tax issues related to the integrations of certain historical acquisitions as a result of recent developments of on-going audits and court cases. For fiscal 2020 and 2019, total unrecognized tax benefits in an amount of $1.2 billion and $631 million, respectively, if recognized, would have reduced income tax expense and the Company’s effective tax rate. For fiscal 2018, total unrecognized tax benefits in an amount of $77 million, if recognized, would have reduced income tax expense and the Company’s effective tax rate after considering the impact of the change in valuation allowance in the U.S.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the income tax provision. The Company recorded an immaterial amount for penalties and interest for each of fiscal 2020, 2019 and 2018.

Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, France, and Germany. In January 2020, the Company reached a settlement with the IRS Appeals primarily related to transfer pricing issues in earlier tax years, and income tax reserves were adjusted accordingly. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future.

The Company has operations and taxable presence in multiple jurisdictions in the U.S. and outside of the U.S. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions around the world. The Company currently considers U.S. federal, Japan, Australia, Germany, France, United Kingdom, and Israel to be major tax jurisdictions. The Company’s U.S. federal tax returns since fiscal 2008 remain open to examination. With some exceptions, tax years prior to fiscal 2016 in jurisdictions outside of U.S. are generally closed. However, in Japan and United Kingdom, the Company is no longer subject to examinations for years prior to fiscal 2015 and fiscal 2017, respectively.

The Company anticipates it is reasonably possible that a decrease of unrecognized tax benefits up to approximately $18 million may occur in the next 12 months, as the applicable statutes of limitations lapse.

Earnings Per Share

12 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per ShareBasic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average

dilutive common stock, including options, restricted stock units, warrants and the convertible senior notes. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.

A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions):


4	Fiscal Year Ended January 31,
	2020		2019		2018
Numerator:
Net income	$	126	$	1,110	$	360
Denominator:
Weighted-average shares outstanding for basic earnings per share	829		751		715
Effect of dilutive securities:
Convertible senior notes which matured in April 2018	0		1		5
Employee stock awards	21		21		14
Warrants which settled in June and July 2018	0		2		1
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share	850		775		735

The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share for fiscal 2020 reflects the impact of approximately 102 million shares issued in relation to the acquisitions of Tableau and ClickSoftware in the third quarter fiscal 2020.

The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions):


	Fiscal Year Ended January 31,
	2020	2019	2018
Employee stock awards	7	4	7

Leases and Other Commitments

12 Months Ended

Jan. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Leases and Other Commitments

Leases

The Company has operating leases for corporate offices, data centers, and equipment under non-cancelable operating leases with various expiration dates. The leases have remaining terms of 1 year to 23 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year.

The components of lease expense were as follows (in millions):


	Fiscal Year Ended January 31, 2020
Operating lease cost	$	913

Finance lease cost:
Amortization of right-of-use assets	$	65
Interest on lease liabilities	20
Total finance lease cost	$	85

Supplemental cash flow information related to operating and finance leases was as follows (in millions):


	Fiscal Year Ended January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	827


Operating cash outflows for finance leases	15
Financing cash outflows for finance leases	164
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	509

Supplemental balance sheet information related to operating and finance leases was as follows (in millions):


	As of January 31, 2020
Operating leases:
Operating lease right-of-use assets	$	3,040

Operating lease liabilities, current	$	750
Noncurrent operating lease liabilities	2,445
Total operating lease liabilities	$	3,195

Finance leases:
Buildings and building improvements	$	325
Computers, equipment and software	468
Accumulated depreciation	(404)
Property and equipment, net	$	389

Accrued expenses and other liabilities	$	53
Other noncurrent liabilities	332
Total finance lease liabilities	$	385

Other information related to leases was as follows:


	As of January 31, 2020
Weighted average remaining lease term
Operating leases	7 years
Finance leases	18 years
Weighted average discount rate
Operating leases	2.7	%
Finance leases	4.5	%

The weighted average remaining lease term for real estate leases with multiple floors with different lease end dates is calculated based on the lease end date for each individual floor.

As of January 31, 2020, the maturities of lease liabilities under non-cancelable operating and finance leases are as follows (in millions):


	Operating Leases		Finance Leases
Fiscal Period:
Fiscal 2021	$	819	$	67
Fiscal 2022	624		23
Fiscal 2023	448		23
Fiscal 2024	348		24
Fiscal 2025	285		24
Thereafter	1,020		410
Total minimum lease payments	3,544		571
Less: Imputed interest	(349)		(186)
Total	$	3,195	$	385

Operating lease amounts above do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $169 million in the next five years and $55 million thereafter.

The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the Company's future contractual obligations when it is reasonably certain that the Company will exercise that option. The Company did not use hindsight when determining lease term, therefore, as of January 31, 2020, renewal options are only included for the Company's finance lease for 350 Mission.

As of January 31, 2020, the Company has additional operating leases that have not yet commenced totaling $2.4 billion and therefore not reflected on the consolidated balance sheet and tables above. These operating leases include agreements for office facilities to be constructed. These operating leases will commence between fiscal year 2021 and fiscal year 2025 with lease terms of 1.5 to 18 years.

Of the total operating lease commitment balance, including leases not yet commenced, of $5.9 billion, approximately $5.4 billion is related to facilities space. The remaining commitment amount is primarily related to equipment.

As of January 31, 2019, prior to the adoption of Topic 842, future minimum lease payments under non-cancelable operating and capital leases was as follows (in millions):


	Capital Leases (1)		Operating Leases (2)		Financing Obligation - Leased Facility (3)
Fiscal Period:
Fiscal 2020	$	200	$	778	$	22
Fiscal 2021	0		658		23
Fiscal 2022	0		466		23
Fiscal 2023	0		369		24
Fiscal 2024	0		314		24
Thereafter	0		1,610		163
Total minimum lease payments	200		$	4,195	$	279
Less: amount representing interest	(9)
Present value of capital lease obligations	$	191

(1) As of January 31, 2019, the capital lease obligation is included in accrued expenses and other liabilities on the consolidated balance sheet.

(2) Operating leases do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $146 million in the next five years and $79 million thereafter.

(3) Total Financing Obligation - Leased Facility represents the total obligation on the Company’s lease agreement at 350 Mission including amounts allocated to interest and the implied lease for the land. As of January 31, 2019, $215 million of the total $279 million above was recorded to Financing obligation leased facility, of which the current portion is included in accrued expenses and other liabilities and the noncurrent portion is included in other noncurrent liabilities on the consolidated balance sheet. Upon adoption of ASC 842, the lease is accounted for as a finance lease.

Rent expense for fiscal 2019 and 2018 was $365 million and $285 million, respectively.

Letters of Credit

As of January 31, 2020, the Company had a total of $94 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 2033.

Compensation Related Costs, General	12 Months Ended
Compensation Related Costs, General	Jan. 31, 2020
Compensation Related Costs [Abstract]
Employee Benefit Plans	Employee Benefit PlansThe Company has a 401(k) plan covering all eligible employees in the United States and a Registered Retirement Savings plan covering all eligible employees in Canada. Since January 1, 2006, the Company has been contributing to the plans. Total Company contributions during fiscal 2020, 2019 and 2018, were $127 million, $106 million and $93 million, respectively.

Legal Proceedings and Claims	12 Months Ended
Legal Proceedings and Claims	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings and Claims	Legal Proceedings and Claims In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be put on notice or sued by third-parties for alleged infringement of their proprietary rights, including patent infringement. In December 2018, the Company was named as a nominal defendant and certain of its current and former directors were named as defendants in a purported shareholder derivative action in the Delaware Court of Chancery. The complaint alleged that excessive compensation was paid to such directors for their service, included claims of breach of fiduciary duty and unjust enrichment, and sought restitution and disgorgement of a portion of the directors' compensation. Subsequently, three similar shareholder derivative actions were filed in the Delaware Court of Chancery. The cases were consolidated under the caption In re Salesforce.com, Inc. Derivative Litigation. The parties agreed to settle the consolidated action, and the Delaware Court of Chancery approved the settlement in December 2019. No appeals were filed and the deadline to file an appeal has passed. Tableau Litigation In July and August 2017, two substantially similar securities class action complaints were filed against Tableau and two of its now former executive officers. The first complaint was filed in the U.S. District for the Southern District of New York (the “Scheufele Action”). The second complaint was filed in the U.S. District Court for the Western District of Washington and was voluntarily dismissed on October 17, 2017. In December 2017, the lead plaintiff in the Scheufele Action filed an amended complaint, which alleged that between February 5, 2015 and February 4, 2016, Tableau and certain of its executive officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, in connection with statements regarding Tableau’s business and operations by allegedly failing to disclose that product launches and software upgrades by competitors were negatively impacting Tableau’s competitive position and profitability. The amended complaint sought unspecified damages, interest, attorneys’ fees and other costs. In February 2018, the lead plaintiff filed a second amended complaint (the "SAC"), which contains substantially similar allegations as the amended complaint, and added as defendants two of Tableau’s now former executive officers and directors. Defendants filed a motion to dismiss the SAC in March 2018, which was denied in February 2019. Defendants filed an answer to the SAC in March 2019, and subsequently amended their answer in April 2019. On January 15, 2020, the court granted lead plaintiff’s motion for certification. The parties have completed fact discovery and engaged in expert discovery. The court has not yet set a trial date. In August 2018, Tableau was named as a nominal defendant in a purported shareholder derivative action in the United States District Court for the District of Delaware, allegedly on behalf of and for the benefit of Tableau, against certain of its now former directors and officers. The derivative action arises out of many of the factual allegations at issue in the Scheufele Action, and generally alleges that the individual defendants breached fiduciary duties owed to Tableau. The complaint seeks unspecified damages and equitable relief, attorneys' fees, costs and expenses. The case is currently stayed. In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s operating results. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute or other contingency, an unfavorable resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter.

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Jan. 31, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions In January 1999, 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 was a non-profit public benefit corporation, was established to resell the Company's services to non-profit organizations and certain higher education organizations. As discussed in Note 7, in June 2019, the Company completed a business combination with Salesforce.org. The Company’s Chair is the chair of the Foundation and, prior to the closing of the business combination, was the chairman of Salesforce.org. The Company’s Chair holds one of the three Foundation board seats. Prior to the closing of the business combination, the Company’s Chair, one of the Company’s employees and one of the Company’s board members held three of Salesforce.org’s eight board seats. Prior to the closing of the business combination, the Company did not control the Foundation’s or Salesforce.org's activities, and accordingly, the Company did not consolidate either of the related entities' statement of activities with its financial results. Since the Foundation’s and Salesforce.org’s inception, and prior to the closing of the business combination with Salesforce.org, the Company 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 $6 million in fiscal 2020, prior to the business combination. The value of these items was approximately $15 million and $11 million for fiscal 2019 and 2018, respectively. Additionally, the Company allowed Salesforce.org to donate subscriptions of the Company’s services to other qualified non-profit organizations. Prior to the closing of the business combination with Salesforce.org, the value of the subscriptions sold by Salesforce.org to external customers pursuant to the reseller agreement, as amended, was approximately $110 million for fiscal 2020, prior to the business combination. The value of the subscriptions sold by Salesforce.org pursuant to the reseller agreement, as amended, was approximately $253 million and $183 million for fiscal 2019 and 2018, respectively. As discussed in Note 7 “Business Combinations”, in June 2019, the Company reorganized its relationship with Salesforce.org, which was accounted for as a business combination. This transaction did not change the relationship and accounting considerations with the Foundation, as described above.

Subsequent Events	12 Months Ended
Subsequent Events	Jan. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In February 2020, the Company entered into an agreement to acquire Vlocity, Inc (“Vlocity”), a leading provider of industry-specific cloud and mobile software. Under the terms of the agreement, the Company will acquire Vlocity for an amount expected to be approximately $1.33 billion, net of the value of shares currently owned by the Company, subject to customary purchase price adjustments. The purchase price will be paid predominantly in cash but also includes the assumption of outstanding equity awards held by Vlocity employees. The acquisition is expected to close in the second quarter fiscal 2021, subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. In February 2020, the Company acquired all outstanding stock of a cloud-based real-time personalization and customer data platform. Beginning with the fiscal quarter ended April 30, 2020, the Company will include the financial results of the acquired company in its consolidated financial statements from the date of the acquisition. The total estimated consideration paid was approximately $100 million. The purchase price was paid predominantly in cash but also included the assumption of outstanding equity awards held by the acquired company’s employees. In February 2020, the Company made a strategic investment of $150 million in cash for preferred shares of a technology company in a preferred stock financing. In February 2020, the Company announced that Keith Block resigned as co-CEO and as a director of the Company. The Company entered into an agreement (the “Transition Agreement”) with Mr. Block setting forth the terms of Mr. Block’s transition from the Company, whereby he will continue to serve as Advisor to the Chief Executive Officer through February 25, 2021, subject to early termination by the Company for cause, as defined in the Transition Agreement, by Mr. Block for any reason upon ten days’ written notice, or automatic termination upon Mr. Block’s acceptance of employment or other full-time services with a third party.

Selected Quarterly Financial Information (Unaudited)

12 Months Ended

Jan. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected summarized quarterly financial information for fiscal 2020 and 2019 is as follows:


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Fiscal Year
	(in millions, except per share data)
Fiscal 2020
Revenues	$	3,737	$	3,997	$	4,513	$	4,851	$	17,098
Gross profit	2,823		3,030		3,379		3,631		12,863
Income (loss) from operations	210		58		65		(36)		297
Net income (loss)	$	392	$	91	$	(109)	$	(248)	$	126
Basic net income (loss) per share	$	0.51	$	0.12	$	(0.12)	$	(0.28)	$	0.15
Diluted net income (loss) per share	$	0.49	$	0.11	$	(0.12)	$	(0.28)	$	0.15
Fiscal 2019
Revenues	$	3,006	$	3,281	$	3,392	$	3,603	$	13,282
Gross profit	2,239		2,432		2,503		2,657		9,831
Income from operations	191		115		92		137		535
Net income	$	344	$	299	$	105	$	362	$	1,110
Basic net income per share	$	0.47	$	0.40	$	0.14	$	0.47	$	1.48
Diluted net income per share	$	0.46	$	0.39	$	0.13	$	0.46	$	1.43

The Company’s loss from operations in the fourth quarter fiscal 2020 was impacted by the timing of its annual marketing event Dreamforce, which occurred in November 2019 as compared to the third quarter fiscal 2019, as well as the timing of integration and other investments in Tableau. The Company’s fourth quarter fiscal 2020 tax provision included incremental tax costs associated with the integration of acquired operations and assets.

Summary of Business and Significant Accounting Policies (Policies)