SALESFORCE COM INC, 10-Q filed on 11/21/2016
Quarterly Report
Document and Entity Information
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2016
Document And Entity Information [Abstract]
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Oct. 31, 2016 
Document Fiscal Year Focus
2017 
Document Fiscal Period Focus
Q3 
Trading Symbol
CRM 
Entity Registrant Name
SALESFORCE COM INC 
Entity Central Index Key
0001108524 
Current Fiscal Year End Date
--01-31 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
696.7 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 1,145,736 
$ 1,158,363 
Short-term marketable securities
55,071 
183,018 
Accounts receivable, net
1,281,425 
2,496,165 
Deferred commissions
237,729 
259,187 
Prepaid expenses and other current assets
281,593 
250,594 
Total current assets
3,001,554 
4,347,327 
Marketable securities, noncurrent
550,323 
1,383,996 
Property and equipment, net
1,756,673 
1,715,828 
Deferred commissions, noncurrent
167,839 
189,943 
Capitalized software, net
637,877 
384,258 
Goodwill
6,616,999 
3,849,937 
Strategic investments
555,968 
520,721 
Other assets, net
1,100,436 
370,910 
Total assets
14,387,669 
12,762,920 
Current liabilities:
 
 
Accounts payable, accrued expenses and other liabilities
1,496,841 
1,349,338 
Deferred revenue
3,478,693 
4,267,667 
Total current liabilities
4,975,534 
5,617,005 
Convertible 0.25% senior notes, net
1,109,236 
1,088,097 
Term loan
496,934 
0 
Loan assumed on 50 Fremont
198,201 
197,998 
Deferred revenue, noncurrent
16,440 
23,886 
Other noncurrent liabilities
785,287 
833,065 
Total liabilities
7,581,632 
7,760,051 
Stockholders’ equity:
 
 
Common stock
697 
671 
Additional paid-in capital
7,281,753 
5,705,386 
Accumulated other comprehensive loss
(62,943)
(49,917)
Accumulated deficit (See Note 1)
(413,470)
(653,271)
Total stockholders’ equity
6,806,037 
5,002,869 
Total liabilities and stockholders’ equity
$ 14,387,669 
$ 12,762,920 
Consolidated Balance Sheets (Parenthetical) (Notes Payable to Banks, 0.25% Convertible Senior Notes due April 1, 2018)
Oct. 31, 2016
Jan. 31, 2016
Notes Payable to Banks |
0.25% Convertible Senior Notes due April 1, 2018
 
 
Contractual interest rate
0.25% 
0.25% 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Revenues:
 
 
 
 
Subscription and support
$ 1,983,981 
$ 1,596,333 
$ 5,645,554 
$ 4,522,939 
Professional services and other
160,794 
115,634 
452,442 
334,879 
Total revenues
2,144,775 
1,711,967 
6,097,996 
4,857,818 
Cost of revenues:
 
 
 
 
Subscription and support
411,363 1 2
303,045 1 2
1,108,134 1 2
870,023 1 2
Professional services and other
174,159 1 2
120,638 1 2
499,948 1 2
340,846 1 2
Total cost of revenues
585,522 1 2
423,683 1 2
1,608,082 1 2
1,210,869 1 2
Gross profit
1,559,253 
1,288,284 
4,489,914 
3,646,949 
Operating expenses:
 
 
 
 
Research and development
311,459 1 2
239,212 1 2
863,935 1 2
695,440 1 2
Marketing and sales
997,993 1 2
818,820 1 2
2,828,784 1 2
2,349,449 1 2
General and administrative
246,765 1 2
186,818 1 2
709,622 1 2
544,314 1 2
Operating lease termination resulting from purchase of 50 Fremont
0 1 2
0 1 2
0 1 2
(36,617)1 2
Total operating expenses
1,556,217 1 2
1,244,850 1 2
4,402,341 1 2
3,552,586 1 2
Income from operations
3,036 
43,434 
87,573 
94,363 
Investment income
3,709 
3,507 
23,747 
11,351 
Interest expense
(21,946)
(18,249)
(64,665)
(53,020)
Other income (expense)
1,782 2
(7,093)2
(11,500)2
(6,064)2
Gain on sales of land and building improvements
0 
21,792 
0 
21,792 
Gains on sales of strategic investments
833 
0 
13,697 
0 
Income (loss) before benefit from (provision for) income taxes
(12,586)
43,391 
48,852 
68,422 
Benefit from (provision for) income taxes (3)
(24,723)3
(68,548)3
182,220 3
(90,339)3
Net income (loss)
$ (37,309)
$ (25,157)
$ 231,072 
$ (21,917)
Basic net income (loss) per share (in dollars per share)
$ (0.05)
$ (0.04)
$ 0.34 
$ (0.03)
Diluted net income (loss) per share (in dollars per share)
$ (0.05)
$ (0.04)
$ 0.33 
$ (0.03)
Shares used in computing basic net income (loss) per share (in shares)
690,468 
664,131 
683,075 
659,160 
Shares used in computing diluted net income (loss) per share (in shares)
690,468 
664,131 
696,257 
659,160 
Consolidated Statements of Operations (Parenthetical) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Stock-based expenses
$ 204,751,000 
$ 144,317,000 
$ 575,980,000 
$ 434,656,000 
Discrete tax benefit recorded from partial release of the valuation allowance
 
 
205,600,000 
 
Cost of revenues
 
 
 
 
Amortization of purchased intangibles from business combinations
36,703,000 
20,296,000 
84,462,000 
60,825,000 
Stock-based expenses
26,783,000 
17,516,000 
76,912,000 
49,237,000 
Marketing and sales
 
 
 
 
Amortization of purchased intangibles from business combinations
28,064,000 
18,966,000 
66,601,000 
57,995,000 
Stock-based expenses
93,718,000 
69,561,000 
275,515,000 
211,819,000 
Research and development
 
 
 
 
Stock-based expenses
50,372,000 
31,534,000 
124,164,000 
96,508,000 
Other non-operating expense
 
 
 
 
Amortization of purchased intangibles from business combinations
579,000 
761,000 
1,927,000 
2,877,000 
General and administrative
 
 
 
 
Stock-based expenses
$ 33,878,000 
$ 25,706,000 
$ 99,389,000 
$ 77,092,000 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ (37,309)
$ (25,157)
$ 231,072 
$ (21,917)
Other comprehensive loss, before tax and net of reclassification adjustments:
 
 
 
 
Foreign currency translation and other losses
(28,372)
(1,173)
(28,523)
(8,419)
Unrealized gains (losses) on investments
(16,019)
(2,873)
20,961 
337 
Other comprehensive loss, before tax
(44,391)
(4,046)
(7,562)
(8,082)
Tax effect
(7,337)
(1,135)
(5,464)
(1,135)
Other comprehensive loss, net of tax
(51,728)
(5,181)
(13,026)
(9,217)
Comprehensive income (loss)
$ (89,037)
$ (30,338)
$ 218,046 
$ (31,134)
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Operating activities:
 
 
 
 
Net income (loss)
$ (37,309)
$ (25,157)
$ 231,072 
$ (21,917)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
169,346 
134,236 
451,479 
393,838 
Amortization of debt discount and transaction costs
7,281 
7,138 
21,334 
20,290 
Gain on sales of land and building improvements
0 
(21,792)
0 
(21,792)
Gains on sales of strategic investments
(833)
0 
(13,697)
0 
50 Fremont lease termination
0 1 2
0 1 2
0 1 2
(36,617)1 2
Abandonment of leasehold improvement
0 
7,086 
0 
7,086 
Amortization of deferred commissions
93,230 
78,934 
270,527 
232,768 
Expenses related to employee stock plans
204,751 
144,317 
575,980 
434,656 
Changes in assets and liabilities, net of business combinations:
 
 
 
 
Accounts receivable, net
42,653 
15,262 
1,276,798 
853,014 
Deferred commissions
(92,803)
(80,030)
(226,965)
(200,867)
Prepaid expenses and other current assets and other assets
40,676 
33,841 
(25,723)
4,495 
Accounts payable, accrued expenses and other liabilities
57,836 
57,577 
(275,058)
12,276 
Deferred revenue
(330,516)
(188,898)
(829,695)
(475,357)
Net cash provided by operating activities
154,312 3
162,514 3
1,456,052 3
1,201,873 3
Investing activities:
 
 
 
 
Business combinations, net of cash acquired
(32,117)
(27,759)
(2,832,110)
(58,680)
Proceeds from land and building improvements held for sale
0 
127,066 
0 
127,066 
Purchase of 50 Fremont land and building
0 
0 
0 
(425,376)
Deposit for purchase of 50 Fremont land and building
0 
0 
0 
115,015 
Non-refundable amounts received for sale of land available for sale
0 
0 
0 
6,284 
Strategic investments, net
(16,877)
(30,330)
(39,328)
(325,226)
Purchases of marketable securities
(111,731)
(200,001)
(986,862)
(543,422)
Sales of marketable securities
93,391 
91,153 
1,927,049 
414,259 
Maturities of marketable securities
14,203 
7,166 
64,741 
23,445 
Capital expenditures
(140,653)
(80,041)
(319,984)
(216,011)
Net cash used in investing activities
(193,784)
(112,746)
(2,186,494)
(882,646)
Financing activities:
 
 
 
 
Proceeds from term loan, net
0 
0 
495,550 
0 
Proceeds from employee stock plans
92,846 
98,016 
315,865 
367,830 
Principal payments on capital lease obligations
(10,997)
(10,945)
(73,760)
(68,844)
Payments on revolving credit facility
0 
0 
0 
(300,000)
Net cash provided by (used in) financing activities
81,849 3
87,071 3
737,655 3
(1,014)3
Effect of exchange rate changes
(11,867)
(2,872)
(19,840)
(3,012)
Net increase (decrease) in cash and cash equivalents
30,510 
133,967 
(12,627)
315,201 
Cash and cash equivalents, beginning of period
1,115,226 
1,089,351 
1,158,363 
908,117 
Cash and cash equivalents, end of period
1,145,736 
1,223,318 
1,145,736 
1,223,318 
Cash paid during the period for:
 
 
 
 
Interest
11,365 
4,085 
41,400 
32,756 
Income taxes, net of tax refunds
11,220 
8,248 
25,451 
24,450 
Non-cash operating, financing and investing activities:
 
 
 
 
Fixed assets acquired under capital leases
180 
2,065 
765 
7,191 
Building - leased facility acquired under financing obligation
0 
38,477 
0 
75,336 
Fair value of loan assumed on 50 Fremont
0 
0 
0 
198,751 
Fair value of equity awards assumed
26,406 
0 
47,199 
0 
Fair value of common stock issued as consideration for business combinations
492,842 
0 
771,214 
0 
Non-cash equity liability (See Note 6)
$ (1,473)
$ 0 
$ 74,570 
$ 0 
Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Oct. 31, 2015
Increase to net cash provided by operating activities
$ 162,514 1
$ 1,201,873 1
Decrease to net cash provided by (used in) financing activities
(87,071)1
1,014 1
Accounting Standards Update 2016-09 [Member] |
Adjustments for New Accounting Principle, Early Adoption [Member]
 
 
Increase to net cash provided by operating activities
44,607 
48,698 
Decrease to net cash provided by (used in) financing activities
$ 44,607 
$ 48,698 
Summary of Business and Significant Accounting Policies
Summary of Business and Significant Accounting Policies
Summary of Business and Significant Accounting Policies
Description of Business
Salesforce.com, inc. (the “Company”) is a leading provider of enterprise cloud computing solutions, with a focus on customer relationship management, or CRM. The Company introduced its first CRM solution in February 2000, and has since expanded its service offerings with new editions, solutions, features and platform capabilities.
The Company's mission is to help its customers transform themselves into customer-centric companies by empowering them to connect with their customers in entirely new ways. The Company's Customer Success Platform includes, among other things, sales force automation, customer service and support, marketing automation, commerce, community management, analytics, application development, Internet of Things integration and professional cloud services, which provide the next-generation platform of enterprise applications and services to enable customer success.
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2017, for example, refer to the fiscal year ending January 31, 2017.
Basis of Presentation

The accompanying consolidated balance sheet as of October 31, 2016 and the consolidated statements of operations, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows for the three and nine months ended October 31, 2016 and 2015, respectively, are unaudited.

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2016, and its results of operations, including its comprehensive income (loss), and its cash flows for the three and nine months ended October 31, 2016 and 2015. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2016 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2017.

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2016 as updated by the Form 8-K filed with the SEC on September 1, 2016.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•
the best estimate of selling price of the deliverables included in multiple deliverable revenue arrangements,
•
the fair value of assets acquired and liabilities assumed for business combinations,
•
the recognition, measurement and valuation of current and deferred income taxes,
•
the fair value of stock awards issued and related forfeiture rates,
•
the useful lives of intangible assets, property and equipment and building and structural components, and
•
the valuation of strategic investments and the determination of other-than-temporary impairments.

Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. Over the past few years, including fiscal 2017, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the majority of the Company's offerings operate on a single platform and are deployed in an identical way, and the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
Concentrations of Credit Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and trade accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for doubtful accounts receivable balances. 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.
No single customer accounted for more than five percent of accounts receivable at October 31, 2016 and January 31, 2016. No single customer accounted for five percent or more of total revenue during the three and nine months ended October 31, 2016 and 2015.
Geographic Locations
As of October 31, 2016 and January 31, 2016, assets located outside the Americas were 9 percent and 11 percent of total assets, respectively.
Revenues by geographical region are as follows (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Americas
$
1,598,344

 
$
1,258,148

 
$
4,506,774

 
$
3,575,441

Europe
337,497

 
302,704

 
1,012,671

 
848,413

Asia Pacific
208,934

 
151,115

 
578,551

 
433,964

 
$
2,144,775


$
1,711,967


$
6,097,996

 
$
4,857,818


Americas revenue attributed to the United States was approximately 96 percent and 95 percent during the three and nine months ended October 31, 2016 and 2015, respectively. No other country represented more than ten percent of total revenue during the three and nine months ended October 31, 2016 and 2015.
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management, implementation services and other revenue. “Other revenue” consists primarily of training fees.
The Company commences revenue recognition when all of the following conditions are satisfied:
•
there is persuasive evidence of an arrangement;
•
the service has been or is being provided to the customer;
•
the collection of the fees is reasonably assured; and
•
the amount of fees to be paid by the customer is fixed or determinable.
The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and Support Revenues
Subscription and support revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers.
Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and material or fixed fee basis. When these services are not combined with subscription revenues as a single unit of accounting, as discussed below, these revenues are recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Training revenues are recognized as the services are performed.
Multiple Deliverable Arrangements
The Company enters into arrangements with multiple deliverables that generally include multiple subscriptions, premium support and professional services. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately. Subscription services have standalone value as such services are often sold separately. In determining whether professional services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value.
Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price (“VSOE”), if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any.
For certain professional services, the Company has established VSOE as a consistent number of standalone sales of these deliverables have been priced within a reasonably narrow range. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription services.
The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP.
Deferred Revenue
The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in annual installments. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
Deferred revenue that will be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent.
Deferred Commissions
Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force.
The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts, which are typically 12 to 36 months. The commission payments are paid in full the month after the customer’s service commences and are a direct and incremental cost of the revenue arrangements. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the non-cancelable customer contracts that they should be recorded as an asset and charged to expense over the same period that the subscription revenue is recognized. Amortization of deferred commissions is included in marketing and sales expense in the accompanying consolidated statements of operations.
Cash and Cash Equivalents
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
Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. 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 (loss). 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 component of investment income. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of investment income.
Fair Value Measurement
The Company measures its cash equivalents, marketable securities and foreign currency derivative contracts at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 2 “Investments.”
Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
 
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building- leased facility
27 years
Building improvements
10 years

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Capitalized Internal-Use 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.
Goodwill and Intangible Assets Impairment Assessments
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during the fourth quarter or more often if and when circumstances indicate that goodwill may not be recoverable.
Intangible assets are amortized over their 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. The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of 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, then the carrying amount of such assets is reduced to fair value.
Long-Lived Assets and Impairment Assessment
The Company evaluates long-lived assets for possible impairment whenever events or 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. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There was no impairment of long-lived assets during the three and nine months ended October 31, 2016 and 2015, respectively.
Business Combinations
The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
In the event that the Company enters into a business combination with an entity in which the Company previously held a strategic investment, significant gains or losses will be disclosed separately within the statements of operations. 
Leases and Asset Retirement Obligations
The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense.
In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease.
The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other income (expense).
Accounting for Stock-Based Expense
The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally the vesting term of four years. The aggregate stock compensation remaining to be amortized to costs and expenses will be recognized over a weighted average period of 2.7 years. The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months. Stock-based expenses are recognized net of estimated forfeiture activity. 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.
The fair value of each stock option grant and ESPP share was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share:
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
October 31,
Stock Options
2016
 
 
2015
 
2016
 
2015
Volatility
32.3

%
 
35

%
32.1-32.3

%
 
35-37

%
Estimated life
3.5 years

 
 
3.6 years

 
3.5 years

 
 
3.6 years

 
Risk-free interest rate
0.91-1.07

%
 
1.21-1.27

%
0.89-1.07

%
 
1.13-1.42

%
Weighted-average fair value per share of grants
$
18.75

 
 
$
19.72

 
$
18.75

 
 
$
19.79

 


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.

ESPP assumptions and the related fair value per share table will only be disclosed in the three month period in which there is ESPP activity, such as an ESPP purchase. The Company's ESPP Plan allows for two purchases during the year, one during the second quarter and one during the fourth quarter. The estimated life of the ESPP will be based on the two purchase periods within each offering period.

The 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.
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 statement of operations in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
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.
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive income (loss). Foreign currency transaction gains and losses are included in net income (loss) 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 2017

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. However, ASU 2015-03 does not address deferred issuance costs for line-of-credit arrangements; therefore, in August 2015, the FASB issued Accounting Standards Update No. 2015-15, “Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 allows an entity to defer debt issuance costs associated with line-of-credit arrangements, including arrangements with no outstanding borrowings, and classify them as an asset, and amortize them over the term of the arrangements. The recognition and measurement guidance for debt issuance costs is not affected by the standards. The Company adopted the standards in the three months ended April 30, 2016. Upon adoption, the unamortized debt issuance costs previously reported in Other assets, net, with a carrying amount of approximately $7.9 million at January 31, 2016, were reclassified and presented as a deduction of the corresponding liabilities, Convertible 0.25% senior notes, net, Term Loan, and Loan assumed on 50 Fremont.
In September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”), which eliminates the requirement to restate prior period financial statements for measurement period adjustments in business combinations. ASU 2015-16 requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The Company adopted this standard during the three months ended April 30, 2016 and there was no material impact of this on the Company's financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting” (“ASU 2016-09”), which simplifies and improves several aspects of the accounting for employee share-based payment transactions for public entities. The new guidance requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. The Company adopted the standard in the three months ended April 30, 2016.  Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in a cumulative-effect adjustment of $8.7 million to accumulated deficit. This adjustment reduced the April 30, 2016 accumulated deficit balance. The previously unrecognized excess tax effects were recorded as a deferred tax asset, which was fully offset by a valuation allowance. Without the valuation allowance, the Company’s deferred tax asset would have increased by $614.5 million. The Company also elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classified the excess tax benefits from employee stock plans as a reduction from operating cash flows for all periods presented.   
Pending Accounting Pronouncements
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. This standard establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The FASB deferred the effective date for the new revenue reporting standard for entities reporting under U.S. GAAP for one year. In accordance with the deferral, ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period. The Company is currently in the process of assessing the adoption methodology, which allows the amendment to be applied retrospectively to each prior period presented, or with the cumulative effect recognized as of the date of initial application. The Company is also evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not determined whether the effect will be material to either its revenue results or its accounting for deferred commissions balances.

In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Financial Instrument-Overall (Subtopic 825-10)” (“ASU 2016-01”), which requires entities to measure equity investments at fair value and recognize any changes in fair value in net income. However, for equity investments that do not have readily determinable fair values and do not qualify for the existing practical expedient, the investments will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The new standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-01 on its consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements.
In October 2016, the FASB issued Accounting Standards Update No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”)”, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The new standard is effective for annual periods beginning after December 15, 2017, with early adoption permitted as of the beginning of a fiscal year. The Company is currently evaluating the impact of the adoption of ASU 2016-16 on its consolidated financial statements.
Investments
Investments
Investments
Marketable Securities
At October 31, 2016, marketable securities consisted of the following (in thousands):
 
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
308,381

 
$
2,262

 
$
(482
)
 
$
310,161

U.S. treasury securities
52,692

 
132

 
(43
)
 
52,781

Mortgage backed obligations
77,723

 
138

 
(198
)
 
77,663

Asset backed securities
111,806

 
310

 
(23
)
 
112,093

Municipal securities
45,388

 
235

 
(33
)
 
45,590

Foreign government obligations
7,090

 
19

 
(3
)
 
7,106

Total marketable securities
$
603,080


$
3,096


$
(782
)

$
605,394

At January 31, 2016, marketable securities consisted of the following (in thousands):
 
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
949,266

 
$
1,398

 
$
(2,983
)
 
$
947,681

U.S. treasury securities
157,625

 
375

 
(56
)
 
157,944

Mortgage backed obligations
104,242

 
106

 
(323
)
 
104,025

Asset backed securities
271,292

 
186

 
(226
)
 
271,252

Municipal securities
44,934

 
209

 
(6
)
 
45,137

Foreign government obligations
18,014

 
42

 
(5
)
 
18,051

U.S. agency obligations
16,076

 
16

 
(6
)
 
16,086

Covered bonds
6,690

 
148

 
0

 
6,838

Total marketable securities
$
1,568,139


$
2,480


$
(3,605
)

$
1,567,014



The duration of the investments classified as marketable securities is as follows (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Recorded as follows:
 
 
 
Short-term (due in one year or less)
$
55,071

 
$
183,018

Long-term (due after one year)
550,323

 
1,383,996

 
$
605,394

 
$
1,567,014


As of October 31, 2016, the following marketable securities were in an unrealized loss position (in thousands):
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate notes and obligations
$
59,612

 
$
(473
)
 
$
4,594

 
$
(9
)
 
$
64,206

 
$
(482
)
U.S. treasury securities
20,294

 
(43
)
 
0

 
0

 
20,294

 
(43
)
Mortgage backed obligations
40,964

 
(195
)
 
224

 
(3
)
 
41,188

 
(198
)
Asset backed securities
24,713

 
(17
)
 
1,862

 
(6
)
 
26,575

 
(23
)
Municipal securities
6,689

 
(33
)
 
0

 
0

 
6,689

 
(33
)
Foreign government obligations
4,092

 
(3
)
 
0

 
0

 
4,092

 
(3
)
 
$
156,364

 
$
(764
)
 
$
6,680

 
$
(18
)
 
$
163,044

 
$
(782
)

The unrealized losses for each of the fixed rate marketable securities were less than $143,000. The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of October 31, 2016. The Company expects to receive the full principal and interest on all of these marketable securities.
Fair Value Measurement
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 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.    Other inputs that are directly or indirectly observable in the marketplace.

Level 3.    Unobservable inputs which are supported by little or no market activity.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of October 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands):
 
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant  Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of October 31, 2016
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
110,796

 
$
0

 
$
110,796

Money market mutual funds
206,156

 
0

 
0

 
206,156

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
310,161

 
0

 
310,161

U.S. treasury securities
0

 
52,781

 
0

 
52,781

Mortgage backed obligations
0

 
77,663

 
0

 
77,663

Asset backed securities
0

 
112,093

 
0

 
112,093

Municipal securities
0

 
45,590

 
0

 
45,590

Foreign government obligations
0

 
7,106

 
0

 
7,106

Foreign currency derivative contracts (2)
0

 
1,372

 
0

 
1,372

Total assets
$
206,156

 
$
717,562

 
$
0

 
$
923,718

Liabilities
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
$
0

 
$
4,838

 
$
0

 
$
4,838

Total liabilities
$
0

 
$
4,838

 
$
0

 
$
4,838

_____________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of October 31, 2016, in addition to $828.8 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of October 31, 2016.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the consolidated balance sheet as of October 31, 2016.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands):
 
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable Inputs (Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of
January 31, 2016
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
236,798

 
$
0

 
$
236,798

Money market mutual funds
216,107

 
0

 
0

 
216,107

Commercial paper
0

 
159,230

 
0

 
159,230

Agency and sovereign paper
0

 
13,599

 
0

 
13,599

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
947,681

 
0

 
947,681

U.S. treasury securities
0

 
157,944

 
0

 
157,944

Mortgage backed obligations
0

 
104,025

 
0

 
104,025

Asset backed securities
0

 
271,252

 
0

 
271,252

Municipal securities
0

 
45,137

 
0

 
45,137

Foreign government obligations
0

 
18,051

 
0

 
18,051

U.S. agency obligations
0

 
16,086

 
0

 
16,086

Covered bonds
0

 
6,838

 
0

 
6,838

Foreign currency derivative contracts (2)
0

 
4,731

 
0

 
4,731

Total Assets
$
216,107

 
$
1,981,372

 
$
0

 
$
2,197,479

Liabilities
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
$
0

 
$
14,025

 
$
0

 
$
14,025

Total Liabilities
$
0

 
$
14,025

 
$
0

 
$
14,025

______________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2016, in addition to $532.6 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2016.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of January 31, 2016.
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 British Pound Sterling, the Euro and Japanese Yen. The Company’s foreign currency derivative contracts, which are not designated as hedging instruments, are used to reduce the exchange rate risk associated primarily with intercompany receivables and payables. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. As of October 31, 2016 and January 31, 2016, the foreign currency derivative contracts that were not settled were recorded at fair value on the consolidated balance sheets.
Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other expense to offset the gains or losses resulting from the settlement or remeasurement of the underlying foreign currency denominated receivables and payables. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties.
Details on outstanding foreign currency derivative contracts related primarily to intercompany receivables and payables are presented below (in thousands):
 
 
As of
 
October 31, 2016
 
January 31, 2016
Notional amount of foreign currency derivative contracts
$
1,217,458

 
$
1,274,515

Fair value of foreign currency derivative contracts
$
(3,466
)
 
$
(9,294
)


The fair value of the Company’s outstanding derivative instruments are summarized below (in thousands):
 
 
 
Fair Value of Derivative Instruments
 
 
As of
  
Balance Sheet Location
October 31, 2016
 
January 31, 2016
Derivative Assets
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign currency derivative contracts
Prepaid expenses and other current assets
$
1,372

 
$
4,731

Derivative Liabilities
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign currency derivative contracts
Accounts payable, accrued expenses and other liabilities
$
4,838

 
$
14,025



The effect of the derivative instruments not designated as hedging instruments on the consolidated statements of operations during the three and nine months ended October 31, 2016 and 2015, respectively, are summarized below (in thousands):
Derivatives Not Designated as Hedging
Instruments
Losses on Derivative Instruments
Recognized in Other income (expense)
  
 

Three Months Ended 
 October 31,
 
Location

2016

2015
Foreign currency derivative contracts
Other income (expense)

$
(39,624
)
 
$
(2,888
)
 
Derivatives Not Designated as Hedging
Instruments
Income (loss) on Derivative Instruments
Recognized in Other income (expense)
  
 

Nine Months Ended 
 October 31,
 
Location

2016

2015
Foreign currency derivative contracts
Other income (expense)

$
(86,528
)

$
9,773


Investment Income
Investment income consists of interest income, realized gains and realized losses on the Company’s cash, cash equivalents and marketable securities. The components of investment income are presented below (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Interest income
$
3,642

 
$
3,700

 
$
17,961

 
$
9,919

Realized gains
210

 
257

 
7,771

 
3,197

Realized losses
(143
)
 
(450
)
 
(1,985
)
 
(1,765
)
Total investment income
$
3,709

 
$
3,507

 
$
23,747

 
$
11,351


Reclassification adjustments out of accumulated other comprehensive income (loss) into net income were immaterial for the three and nine months ended October 31, 2016 and 2015, respectively.
Strategic Investments
The Company's strategic investments are comprised of marketable equity securities and non-marketable debt and equity securities. Marketable equity securities are measured using quoted prices in their respective active markets and the non-marketable equity and debt securities are recorded at cost. These investments are presented on the consolidated balance sheets within strategic investments.

As of October 31, 2016, the Company had five investments in marketable equity securities with a fair value of $42.4 million, which includes an unrealized gain of $26.5 million. As of January 31, 2016, the Company had six investments in marketable equity securities with a fair value of $16.2 million, which included an unrealized gain of $8.5 million. The change in the fair value of the investments in publicly held companies is recorded in the consolidated balance sheets within strategic investments and accumulated other comprehensive loss.
The Company’s interest in non-marketable debt and equity securities consists of noncontrolling debt and equity investments in privately held companies. The Company’s investments in these privately held companies are reported at cost or marked down to fair value when an event or circumstance indicates an other-than-temporary decline in value has occurred. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity.
As of October 31, 2016 and January 31, 2016, the carrying value of the Company’s non-marketable debt and equity securities was $513.5 million and $504.5 million, respectively. The estimated fair value of the non-marketable debt and equity securities was approximately $752.1 million and $714.1 million as of October 31, 2016 and January 31, 2016, respectively. These investments are measured using the cost method of accounting; therefore, the unrealized gains of $238.6 million and $209.6 million as of October 31, 2016 and January 31, 2016, respectively, are not recorded in the consolidated financial statements.
The carrying value of the Company’s strategic investments is impacted by various events such as entering into new investments, disposition-related reductions of a cost-basis investment if a privately-held company within the portfolio is acquired by another company, fair market value adjustments or initial public offerings. The cash inflows from exits and cash outflows from new investments are disclosed as Strategic investments, net, within the investing activities section of the Statement of Cash Flows and any gains or losses or fair market value adjustments are recorded within the operating activities of the Statement of Cash Flows for each of the respective fiscal quarter periods.
Property and Equipment
Property and Equipment
Property and Equipment
Property and Equipment
Property and equipment, net consisted of the following (in thousands):
 
As of
 
October 31, 2016
 
January 31, 2016
Land
$
183,888

 
$
183,888

Buildings and building improvements
619,419

 
614,081

Computers, equipment and software
1,390,751

 
1,281,766

Furniture and fixtures
101,558

 
82,242

Leasehold improvements
586,040

 
473,688

 
2,881,656

 
2,635,665

Less accumulated depreciation and amortization
(1,124,983
)
 
(919,837
)
 
$
1,756,673

 
$
1,715,828


Depreciation and amortization expense totaled $83.5 million and $77.4 million during the three months ended October 31, 2016 and 2015, respectively, and totaled $239.2 million and $226.6 million during the nine months ended October 31, 2016 and 2015, respectively.
Computers, equipment and software at October 31, 2016 and January 31, 2016 included a total of $729.3 million and $747.1 million acquired under capital lease agreements, respectively. Accumulated amortization relating to computers, equipment and software under capital leases totaled $364.8 million and $310.3 million, respectively, at October 31, 2016 and January 31, 2016. Amortization of assets under capital leases is included in depreciation and amortization expense.
Building - 350 Mission

In December 2013, the Company entered into a lease agreement for approximately 445,000 rentable square feet of office space at 350 Mission Street (“350 Mission”) in San Francisco, California, which is the total office space available in the building. As a result of the Company’s involvement during the construction period, the Company is considered for accounting purposes to be the owner of the construction project. As a result, the Company has capitalized the construction costs as Building with a corresponding current and noncurrent financing obligation liability and has accounted for the underlying land implicitly as an operating lease. As of October 31, 2016, the Company had capitalized $178.8 million of construction costs, based on the construction costs incurred to date by the landlord, and recorded a corresponding current and noncurrent financing obligation liability of $19.5 million and $201.3 million, respectively. As of January 31, 2016, the Company had capitalized $174.6 million of construction costs, based on the construction costs incurred to date by the landlord, and recorded a corresponding current and noncurrent financing obligation liability of $15.4 million and $196.7 million, respectively. The total expected financing obligation in the form of minimum lease payments inclusive of the amounts currently recorded, is $327.7 million, including interest (see Note 10 “Commitments” for future commitment details). The obligation will be settled through monthly lease payments to the landlord, which commenced on October 2015. To the extent that operating expenses for 350 Mission are material, the Company, as the deemed accounting owner, will record the operating expenses.
Business Combinations
Business Combinations
Business Combinations
BeyondCore
In September 2016, the Company acquired the outstanding stock of BeyondCore, Inc. (“BeyondCore”), for consideration consisting of cash, common stock, and equity awards assumed. BeyondCore is a smart data discovery technology company that automatically explores millions of variable combinations from structured data sources. The Company has included the financial results of BeyondCore 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 preliminary acquisition date fair value consideration transferred for BeyondCore was approximately $106.6 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
21,053

Common stock (1,073,432 shares)
81,484

Fair value of stock options and restricted stock awards assumed
4,061

Total
$
106,598


The fair value of stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.0464 was applied to convert BeyondCore's outstanding equity awards for BeyondCore's common stock into equity awards for shares of the Company's common stock.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
2,046

Other current and noncurrent tangible assets
462

Intangible assets
15,600

Goodwill
90,794

Deferred revenue, current and noncurrent
(818
)
Other liabilities, current and noncurrent
(923
)
Deferred tax liability
(563
)
Net assets acquired
$
106,598


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 assets acquired, liabilities assumed and identifiable intangible assets 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 preliminary estimated fair values of assets acquired and liabilities assumed, including current and noncurrent income taxes payable and deferred taxes and identifiable intangible assets, may be subject to change as additional information is received and certain tax returns are finalized. Thus the provisional measurements of fair value set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
14,900

6 years
Customer relationships
700

2 years
Total intangible assets subject to amortization
$
15,600



The amount recorded for developed technology represents the estimated fair value of BeyondCore's smart data analytics technology. The amount recorded for customer relationships represents the fair values of the underlying relationship with BeyondCore customers. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating BeyondCore's technology with the Company's other offerings. The goodwill balance is not deductible for U.S. income tax purposes.
The Company assumed equity awards for shares of BeyondCore's common stock with a fair value of $8.6 million, of which $4.1 million was allocated to the consideration transferred.
Quip
In August 2016, the Company acquired the outstanding stock of Quip, Inc. (“Quip”) for consideration consisting of cash, common stock, fair value of equity awards assumed, as well as fair value of the Company's pre-existing relationship. Quip combines content and communication to create living documents to allow work-teams to write, edit and discuss documents, spreadsheets and checklists in a single experience. The Company acquired Quip for its product offerings and employees. The Company has included the financial results of Quip 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 preliminary acquisition date fair value consideration transferred for Quip was approximately $412.0 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
2,711

Common stock (4,796,152 shares)
385,131

Fair value of stock options and restricted stock awards assumed
22,345

Fair value of pre-existing relationship
1,833

Total
$
412,020


The fair value of stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.5514 was applied to convert Quip's outstanding equity awards for Quip's common stock into equity awards for shares of the Company's common stock.
The Company had a $1.0 million, or approximately 0.3 percent, noncontrolling equity investment in Quip prior to the acquisition. The acquisition date fair value of the Company's previously held equity interest was approximately $1.8 million and is included in the measurement of the consideration transferred. The Company recognized a gain of approximately $0.8 million as a result of remeasuring its prior equity interest in Quip held before the business combination. The gain is included in gains on sales of strategic investments in the consolidated statement of operations.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
27,985

Other current and noncurrent tangible assets
556

Intangible assets
31,200

Goodwill
357,610

Other liabilities, current and noncurrent
(2,491
)
Deferred tax liability
(2,840
)
Net assets acquired
$
412,020


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 assets acquired, liabilities assumed and identifiable intangible assets 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 preliminary estimated fair values of assets acquired and liabilities assumed, including current and noncurrent income taxes payable and deferred taxes and identifiable intangible assets, may be subject to change as additional information is received and certain tax returns are finalized. Thus the provisional measurements of fair value set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
18,590

5 years
Customer relationships
12,460

10 years
Other purchased intangible assets
150

3 years
Total intangible assets subject to amortization
$
31,200



The amount recorded for developed technology represents the estimated fair value of Quip's productivity technology. The amount recorded for customer relationships represents the fair values of the underlying relationship with Quip customers. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating Quip's technology with the Company's other offerings. The goodwill balance is not deductible for U.S. income tax purposes.
The Company assumed equity awards for shares of Quip's common stock with a fair value of $68.0 million, of which $22.3 million was allocated to the consideration transferred.
Demandware
In July 2016, the Company acquired for cash the outstanding stock of Demandware, Inc. (“Demandware”), an industry-leading provider of enterprise cloud commerce solutions in the digital commerce market. The Company acquired Demandware to, among other things, expand the Company's position in customer relationship management and to pursue the digital commerce market with the new Salesforce Commerce Cloud. The Company has included the financial results of Demandware in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were $15.5 million and are recorded in general and administrative expense. The acquisition date fair value of the consideration transferred for Demandware was approximately $2.9 billion, including the proceeds from the term loan of $500.0 million (see Note 5), which consisted of the following (in thousands):
 
Fair Value
Cash
$
2,920,336

Fair value of stock options and restricted stock awards assumed
9,344

Total
$
2,929,680


The estimated fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.9545 was applied to convert Demandware’s outstanding equity awards for Demandware’s common stock into equity awards for shares of the Company’s common stock.
The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
139,259

Marketable securities
37,230

Accounts receivable
56,982

Other current assets
13,545

Customer contract asset, noncurrent
327,830

Intangible assets
633,277

Property and equipment
29,463

Other noncurrent assets
4,579

Goodwill
1,985,269

Accounts payable, accrued expenses and other liabilities
(51,870
)
Deferred revenue, current and noncurrent
(22,647
)
Other liabilities, noncurrent
(12,935
)
Deferred tax liability
(210,302
)
Net assets acquired
$
2,929,680



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 preliminary estimated fair values of assets acquired and liabilities assumed, specifically, the current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
In the second quarter of fiscal 2017, the Company accounted for acquired subscription contracts as two units of account, a customer contract asset and a customer contract liability. In the current quarter, the Company concluded that the acquired contracts should more appropriately be accounted for as a single unit of account and as such, the fair value of the contractual relationship with customers has been presented as a single, noncurrent intangible asset, customer contract asset. As a result of this change, the customer contract asset and the customer contract liability both decreased by $393.9 million.

During the third quarter of fiscal 2017, the Company obtained additional information as it relates to the valuation of the customer relationship assets and therefore adjusted the measurement of the fair value of these assets. As a result of the updated valuation, the Company recorded measurement period adjustments, which included a decrease the fair value of the customer relationship asset by $168.8 million. Additionally, these measurement period adjustments resulted in a corresponding decrease to the deferred tax liability recognized of $61.2 million. The net effect of these changes resulted in a corresponding increase to goodwill of $100.4 million.
The following table sets forth the components of identifiable intangible assets acquired and their preliminary estimated useful lives as of the date of acquisition (in thousands):
 
Fair Value
Useful Life
Developed technology
$
242,550

2 to 5 years
Customer relationships
384,590

3 to 10 years
Other purchased intangible assets
6,137

3 to 10 years
Total intangible assets subject to amortization
$
633,277



Developed technology represents the preliminary estimated fair value of Demandware’s e-commerce technology. Customer relationships represent the preliminary estimated fair values of the underlying relationships with Demandware customers. Other purchased intangible assets also includes intangibles such as trademarks and favorable leases, which span over lease terms varying from 1 to 10 years. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating Demandware’s e-commerce technology with the Company’s other offerings. The majority of the goodwill balance is not deductible for U.S. income tax purposes.
The Company assumed equity awards with an estimated fair value of $135.2 million, of which $9.3 million was allocated to the purchase consideration.
The amounts of revenue and earnings of Demandware included in the Company’s consolidated statement of operations from the acquisition date of July 11, 2016 through October 31, 2016 are as follows (in thousands):
Total revenues
$
57,878

Pretax loss
(81,763
)
Net loss
(82,061
)

The following pro forma financial information summarizes the combined results of operations for the Company and Demandware, as though the companies were combined as of the beginning of the Company’s fiscal 2016.
The unaudited pro forma financial information was as follows (in thousands):
 
Nine Months Ended October 31,
 
2016
 
2015
Total revenues
$
6,176,166

 
$
4,958,491

Pretax loss
(100,817
)
 
(200,844
)
Net loss
(138,714
)
 
(37,097
)

The pro forma financial information for all periods presented has been calculated after adjusting the results of Demandware 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 2016. The historical financial information has been adjusted 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 2016.
The pro forma financial information for the nine months ended October 31, 2016 and 2015 combines the historical results of the Company for the nine months ended October 31, 2016 and 2015, the adjusted historical results of Demandware for the nine months ended September 30, 2016 and 2015, due to differences in reporting periods and considering the date the Company acquired Demandware, and the effects of the pro forma adjustments described above.
SteelBrick
In February 2016, the Company acquired the outstanding stock of SteelBrick, Inc. (“SteelBrick”) for consideration consisting of cash and common stock. SteelBrick is a next generation quote-to-cash platform, delivered 100 percent natively on the Salesforce platform, which offers applications, or apps, for automating the entire deal close process - from generating quotes and configuring orders to collecting cash. The Company has included the financial results of SteelBrick 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 consideration transferred for SteelBrick was approximately $314.8 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
1,698

Common stock (4,288,447 shares)
278,372

Fair value of stock options and restricted stock awards assumed
10,989

Fair value of pre-existing relationship
23,726

Total
$
314,785


The fair value of stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.08 was applied to convert SteelBrick's outstanding equity awards for SteelBrick's common stock into equity awards for shares of the Company's common stock.
The Company had a $13.9 million, or approximately six percent, noncontrolling equity investment in SteelBrick prior to the acquisition. The acquisition date fair value of the Company's previously held equity interest was approximately $23.7 million and is included in the measurement of the consideration transferred. The Company recognized a gain of approximately $9.8 million as a result of remeasuring its prior equity interest in SteelBrick held before the business combination. The gain is included in gains on sales of strategic investments on the consolidated statement of operations.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
59,296

Other current and noncurrent tangible assets
3,012

Customer contract asset, noncurrent
6,954

Intangible assets
49,160

Goodwill
217,986

Deferred revenue, current and noncurrent
(8,479
)
Other liabilities, current and noncurrent
(2,665
)
Deferred tax liability
(10,479
)
Net assets acquired
$
314,785


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 assets acquired, liabilities assumed and identifiable intangible assets are based on management's estimates and assumptions.
The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
30,700

4 years
Customer relationships
17,110

7 years
Other purchased intangible assets
1,350

1 year
Total intangible assets subject to amortization
$
49,160



The amount recorded for developed technology represents the estimated fair value of SteelBrick's quote-to-cash and billing technology. The amount recorded for customer relationships represents the fair values of the underlying relationship with SteelBrick customers. The goodwill balance is primarily attributed to the assembled workforce and expanded market opportunities when integrating SteelBrick's quote-to-cash technology with the Company's other offerings. The majority of the goodwill balance is not deductible for U.S. income tax purposes.
The Company assumed equity awards for shares of SteelBrick's common stock with a fair value of $39.6 million, of which $11.0 million was allocated to the consideration transferred.
MetaMind
In April 2016, the Company acquired MetaMind, Inc. (“MetaMind”) for approximately $32.8 million in cash, net of cash acquired. This amount includes amounts to be paid after an initial holdback period, and assumed equity awards. The primary reason for the acquisition was to extend the Company's intelligence in natural language processing and image recognition across all clouds. The Company has included the financial results of MetaMind, which have not been material to date, in its consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material. In allocating the purchase consideration for MetaMind based on estimated fair values, the Company recorded $31.2 million of goodwill. The goodwill balance is not deductible for U.S. income tax purposes. The estimated fair values of assets acquired and liabilities assumed, specifically current and noncurrent income taxes payable and deferred taxes, may be subject to change as additional information is received and certain tax returns are finalized. Thus, the provisional measurements of fair value set forth above are subject to change. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.
The Company assumed equity awards for shares of MetaMind's common stock with a fair value of $5.5 million, of which $0.5 million was allocated to the purchase consideration.
The Company's chairman, who held a greater than ten percent ownership interest in MetaMind, received approximately $6.0 million in total proceeds, subject to customary escrow amounts, in connection with this acquisition.
Other Business Combinations
During the nine months ended October 31, 2016, the Company acquired six other companies for an aggregate of $96.7 million in cash, net of cash acquired, and has included the financial results of these companies in its consolidated financial statements from the respective dates of acquisition. These transactions, individually and in the aggregate, are not material to the Company. The costs associated with these acquisitions were not material. The Company accounted for these transactions as business combinations. In allocating the purchase consideration for each company based on estimated fair values, the Company recorded $100.4 million of goodwill. The goodwill balance associated with these transactions is not deductible for U.S. income tax purposes. The Company expects to finalize the valuations as soon as practicable, but not later than one year from the acquisition dates.
Debt
Debt
Debt
Convertible Senior Notes
  
Par Value Outstanding
 
Equity
Component Recorded at Issuance
 
Liability Component of Par Value as of
 
(in thousands)
October 31,
2016
 
 
January 31,
2016
 
0.25% Convertible Senior Notes due April 1, 2018
$
1,150,000

 
$
122,421

(1)
$
1,109,236

 
 
$
1,088,097

 
___________ 
(1)This amount represents the equity component recorded at the initial issuance of the 0.25% convertible senior notes.

In March 2013, the Company issued at par value $1.15 billion of 0.25% convertible senior notes (the “0.25% Senior Notes”, or the “Notes”) due April 1, 2018, unless earlier purchased by the Company or converted. Interest is payable semi-annually, in arrears on April 1 and October 1 of each year.
The 0.25% Senior Notes are governed by an indenture between the Company, as issuer, and U.S. Bank National Association, as trustee. The 0.25% Senior Notes are unsecured and do not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness, or the issuance or repurchase of securities by the Company.
If converted, holders of the 0.25% Senior Notes will receive cash equal to the principal amount, and at the Company’s election, cash, shares of the Company’s common stock, or a combination of cash and shares, for any amounts in excess of the principal amounts.
Certain terms of the conversion features of the 0.25% Senior Notes are as follows:
 
Conversion
Rate per $1,000
Par Value
 
Initial
Conversion
Price per
Share
 
Convertible Date
0.25% Senior Notes
15.0512

 
$
66.44

 
January 1, 2018

Throughout the term of the 0.25% Senior Notes, the conversion rate may be adjusted upon the occurrence of certain events, including any cash dividends. Holders of the 0.25% Senior Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited.
Holders may convert the 0.25% Senior Notes under the following circumstances:
•
during any fiscal quarter, if, for at least 20 trading days during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sales price of the Company’s common stock for such trading day is greater than or equal to 130% of the applicable conversion price on such trading day;
•
in certain situations, when the trading price of the 0.25% Senior Notes is less than 98% of the product of the sale price of the Company’s common stock and the conversion rate;
•
upon the occurrence of specified corporate transactions described under the 0.25% Senior Notes indenture, such as a consolidation, merger or binding share exchange; or
•
at any time on or after the convertible date noted above.
Holders of the 0.25% Senior Notes have the right to require the Company to purchase with cash all or a portion of the Notes upon the occurrence of a fundamental change, such as a change of control, at a purchase price equal to 100% of the principal amount of the 0.25% Senior Notes plus accrued and unpaid interest. Following certain corporate transactions that constitute a change of control, the Company will increase the conversion rate for a holder who elects to convert the 0.25% Senior Notes in connection with such change of control.
In accounting for the issuances of the 0.25% Senior Notes, the Company separated the 0.25% Senior Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 0.25% Senior Notes as a whole. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the 0.25% Senior Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.
In accounting for the transaction costs related to the 0.25% Senior Notes issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to expense over the terms of the 0.25% Senior Notes, and transaction costs attributable to the equity component were netted with the equity component in temporary stockholders’ equity and stockholders’ equity.
The 0.25% Senior Notes consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Liability component :
 
 
 
Principal (1)
$
1,150,000

 
$
1,150,000

Less: debt discount, net (2)
(36,260
)
 
(54,941
)
Less: debt issuance cost (3)
(4,504
)
 
(6,962
)
Net carrying amount
$
1,109,236

 
$
1,088,097

(1)The effective interest rate of the 0.25% Senior Notes is 2.53%. The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature.
(2)Included in the consolidated balance sheets within Convertible 0.25% Senior Notes (which is classified as a noncurrent liability) and is amortized over the life of the 0.25% Senior Notes using the effective interest rate method.
(3)In April 2015, the FASB issued ASU 2015-03 which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. The Company retrospectively adopted this standard for the prior period presented.
The total estimated fair value of the Company's 0.25% Senior Notes at October 31, 2016 was $1.4 billion. The fair value was determined based on the closing trading price per $100 of the 0.25% Senior Notes as of the last day of trading for the third quarter of fiscal 2017.
Based on the closing price of the Company’s common stock of $75.16 on October 31, 2016, the if-converted value of the 0.25% Senior Notes exceeded their principal amount by approximately $150.9 million. Based on the terms of the 0.25% Senior Notes, the Senior Notes were not convertible for the three and nine months ended October 31, 2016.
Note Hedges
To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions with respect to its common stock (the “0.25% Note Hedges”).
 
(in thousands, except for shares)
Date
 
Purchase
 
Shares
0.25% Note Hedges
March 2013
 
$
153,800

 
17,308,880


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

 
17,308,880

 
$
90.40


In March 2013, the Company also entered into a warrants transaction (the “0.25% Warrants”), whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, shares of the Company’s common stock. The 0.25% Warrants were anti-dilutive for the periods presented. The 0.25% Warrants are separate transactions entered into by the Company and are not part of the terms of the 0.25% Senior Notes or the 0.25% Note Hedges. Holders of the 0.25% Senior Notes and 0.25% Note Hedges will not have any rights with respect to the 0.25% Warrants.
Term Loan
In July 2016, the Company entered into a credit agreement (the “Term Loan Credit Agreement”) with Bank of America, N.A. and certain other institutional lenders for a $500.0 million term loan facility (the “Term Loan”) that matures on July 11, 2019. The Term Loan will bear interest, at the Company’s option, at either a base rate plus a spread of 0.00% to 0.75% or an adjusted LIBOR rate plus a spread of 1.00% to 1.75%, in each case with such spread being determined based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period.
In July 2016, the Company borrowed the full $500.0 million under the Term Loan. All of the net proceeds of the Term Loan were for the purposes of partially funding the acquisition of Demandware.
Interest on the Term Loan is due and payable in arrears quarterly for loans bearing interest at a rate based on the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate.
All outstanding amounts under the Term Loan Credit Agreement will be due and payable on July 11, 2019. The Company may prepay the Term Loan, in whole or in part, at any time without premium or penalty, subject to certain conditions, and amounts repaid or prepaid may not be reborrowed. The Company’s obligations under the Term Loan Credit Agreement are required to be guaranteed by certain of its subsidiaries meeting certain thresholds set forth in the Term Loan Credit Agreement.
The Term Loan Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions and repurchase stock. The Company is also required to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio. The Term Loan Credit Agreement includes customary events of default. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Term Loan Credit Agreement at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.00% above the rate applicable for base rate loans for any other overdue amounts. The occurrence of an event of default could result in the acceleration of obligations under the Term Loan Credit Agreement. The Company was in compliance with the Term Loan Credit Agreement’s covenants as of October 31, 2016.
The weighted average interest rate on the Term Loan was 1.8% as of October 31, 2016. Accrued interest on the Term Loan was $2.8 million as of October 31, 2016. As of October 31, 2016, the noncurrent outstanding principal portion was $500.0 million.
Revolving Credit Facility
In July 2016, the Company entered into an Amended and Restated Credit Agreement (the “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 (the “Credit Facility”) that matures in July 2021. The Revolving Loan Credit Agreement amended and restated the Company’s existing revolving credit facility dated October 2014. The Company may use the proceeds of future borrowings under the Credit Facility for refinancing other indebtedness, working capital, capital expenditures and other general corporate purposes, including permitted acquisitions.
The borrowings under the Credit Facility bear interest, at the Company’s option, at a base rate plus a spread of 0.00% to 0.75% or an adjusted LIBOR rate plus a spread of 1.00% to 1.75%, in each case with such spread being determined based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period. Interest is due and payable in arrears quarterly for loans bearing interest at a rate based on the base rate and at the end of an interest period in the case of loans bearing interest at the adjusted LIBOR rate. Regardless of what amounts, if any, are outstanding under the Credit Facility, the Company is also obligated to pay an ongoing commitment fee at a rate of 0.125% to 0.25%, with such rate being based on the Company’s consolidated leverage ratio for the preceding four fiscal quarter period, payable in arrears quarterly.
The Revolving Loan Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends or make distributions and repurchase stock. The Company is also required to maintain compliance with a consolidated leverage ratio and a consolidated interest coverage ratio. The Revolving Loan Credit Agreement includes customary events of default. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Revolving Loan Credit Agreement at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.00% above the rate applicable for base rate loans for any other overdue amounts. The occurrence of an event of default could result in the acceleration of obligations under the Revolving Loan Credit Agreement. The Company was in compliance with the Revolving Loan Credit Agreement’s covenants as of October 31, 2016.
There were no outstanding borrowings under the Credit Facility as of October 31, 2016. The Company continues to pay a commitment fee on the undrawn amount of the Credit Facility. In November 2016, the Company borrowed $750.0 million under the Credit Facility, in part to fund the acquisition of Krux Digital, Inc. See Note 13 “Subsequent Events.”
Loan Assumed on 50 Fremont
The Company assumed a $200.0 million loan with the acquisition of 50 Fremont (the “Loan”). The Loan bears an interest rate of 3.75% per annum and is due in June 2023. The Loan initially requires interest only payments. Beginning in fiscal year 2019, principal and interest payments are required, with the remaining principal due at maturity. For the three months ended October 31, 2016 and 2015, total interest expense recognized was $1.8 million and $1.9 million, respectively. For the nine months ended October 31, 2016 and 2015, total interest expense recognized was $5.6 million and $5.4 million, respectively. The Loan can be prepaid at any time subject to a yield maintenance fee. The agreement governing the Loan contains certain customary affirmative and negative covenants that the Company was in compliance with as of October 31, 2016.
Interest Expense on Convertible Senior Notes, Term Loan, Revolving Credit Facility and Loan Assumed on 50 Fremont
The following table sets forth total interest expense recognized related to the 0.25% Senior Notes, the Term Loan, the Credit Facility and the Loan prior to capitalization of interest (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Contractual interest expense
$
5,207

 
$
2,843

 
$
11,398

 
$
9,036

Amortization of debt issuance costs
1,342

 
1,027

 
4,071

 
3,077

Amortization of debt discount
6,304

 
6,148

 
18,794

 
18,317

 
$
12,853

 
$
10,018

 
$
34,263

 
$
30,430

Other Balance Sheet Accounts
Other Balance Sheet Accounts
Other Balance Sheet Accounts
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Prepaid income taxes
$
22,766

 
$
22,044

Customer contract asset (1)
0

 
1,423

Other taxes receivable
25,829

 
27,341

Prepaid expenses and other current assets
232,998

 
199,786

 
$
281,593

 
$
250,594


(1) As of October 31, 2016, the customer contract asset has been presented as a long term intangible asset. For further information see Note 4  “Business Combinations.”
Capitalized Software, net
Capitalized software consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Capitalized internal-use software development costs, net of accumulated amortization of $233,706 and $186,251, respectively
$
137,989

 
$
123,065

Acquired developed technology, net of accumulated amortization of $571,023 and $481,118, respectively
499,888

 
261,193

 
$
637,877

 
$
384,258


Capitalized internal-use software amortization expense totaled $16.6 million and $12.9 million for the three months ended October 31, 2016 and 2015, respectively and totaled $47.5 million and $36.4 million for the nine months ended October 31, 2016 and 2015, respectively. Acquired developed technology amortization expense totaled $38.4 million and $22.1 million for the three months ended October 31, 2016 and 2015, respectively and totaled $89.9 million and $66.5 million for the nine months ended October 31, 2016 and 2015, respectively.
The Company capitalized $1.7 million and $1.3 million of stock-based expenses related to capitalized internal-use software development during the three months ended October 31, 2016 and 2015, respectively, and $5.1 million and $4.4 million for the nine months ended October 31, 2016 and 2015, respectively.
Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually during the fourth quarter.
Goodwill consisted of the following (in thousands):
Balance as of January 31, 2016
$
3,849,937

SteelBrick
217,986

MetaMind
31,242

Demandware
1,884,886

Quip
357,610

BeyondCore
90,794

Other business combinations
100,389

Adjustments of acquisition date fair values:
 
SteelBrick
651

Demandware
100,383

Other business combinations
(16,879
)
Balance as of October 31, 2016
$
6,616,999


Other Assets, net
Other assets consisted of the following (in thousands):
 
As of
 
October 31,
2016
 
January 31,
2016
Deferred income taxes, noncurrent, net
$
22,095

 
$
15,986

Long-term deposits
25,346

 
19,469

Purchased intangible assets, net of accumulated amortization of $281,846 and $212,248, respectively
622,667

 
258,580

Acquired intellectual property, net of accumulated amortization of $27,331 and $22,439, respectively
11,122

 
10,565

Customer contract asset, noncurrent (1)
308,484

 
93

Other (2)
110,722

 
66,217

 
$
1,100,436

 
$
370,910

(1) As of October 31, 2016, the customer contract asset has been presented as a long term intangible asset. For further information see Note 4  “Business Combinations.”
(2) In April 2015, the FASB issued ASU 2015-03 which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. The Company retrospectively adopted this standard for the prior period presented, which resulted in a decrease in the carrying value of $7.9 million to Other as of January 31, 2016.
Purchased intangible assets amortization expense for the three months ended October 31, 2016 and 2015 was $29.3 million and $20.1 million, respectively and for the nine months ended October 31, 2016 and 2015 was $69.6 million and $60.8 million, respectively. Acquired intellectual property amortization expense for the three months ended October 31, 2016 and 2015 was $1.6 million and $1.7 million, respectively and for the nine months ended October 31, 2016 and 2015 was $4.9 million and $5.1 million, respectively.
Accounts Payable, Accrued Expenses and Other Liabilities
Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): 
 
As of
 
October 31,
2016
 
January 31,
2016
Accounts payable
$
140,541

 
$
71,481

Accrued compensation
558,945

 
554,502

Non-cash equity liability (1)
74,570

 
0

Accrued other liabilities
498,774

 
447,729

Accrued income and other taxes payable
149,133

 
205,781

Accrued professional costs
38,331

 
33,814

Customer contract liability (2)
0

 
6,558

Accrued rent
17,055

 
14,071

Financing obligation - leased facility, current (3)
19,492

 
15,402

 
$
1,496,841

 
$
1,349,338


Other Noncurrent Liabilities
Other noncurrent liabilities consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Deferred income taxes and income taxes payable
$
93,454

 
$
85,996

Customer contract liability, noncurrent (2)
0

 
66

Financing obligation - leased facility (3)
201,283

 
196,711

Long-term lease liabilities and other
490,550

 
550,292

 
$
785,287

 
$
833,065



(1) Non-cash equity liability represents the purchase price of shares issued to non-executive employees, as to shares exceeding previously registered ESPP shares at the time of sale to the extent the shares had not been subsequently sold by the employee purchaser. The Company expects this liability will be relieved within a year or earlier as the shares are subsequently sold.
(2) As of October 31, 2016, the customer contract liability has been presented as part of the customer contract asset. For further information see Note 4  “Business Combinations.”
(3) As of January 31, 2016, 350 Mission was in construction. In March 2016, construction was completed on the building. See Note 3 “Property and Equipment” for further discussion.
Stockholders' Equity
Stockholders' Equity
Stockholders’ Equity
The Company maintains the following stock plans: the ESPP, the 2013 Equity Incentive Plan and the 2014 Inducement Equity Incentive Plan (the “2014 Inducement Plan”). The expiration of the 1999 Stock Option Plan (“1999 Plan”) in fiscal 2010 did not affect awards outstanding, which continue to be governed by the terms and conditions of the 1999 Plan.
As of October 31, 2016, $96.3 million has been withheld on behalf of employees for future purchases under the ESPP and is recorded in accounts payable, accrued expenses and other liabilities.
Prior to February 1, 2006, options issued under the Company’s stock option plans generally had a term of 10 years. From February 1, 2006 through July 2013, options issued had a term of five years. After July 2013, options issued have a term of seven years.
During fiscal 2016, the Company granted a performance-based restricted stock unit award to the Chairman of the Board and Chief Executive Officer 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, as it relates to the performance condition, these performance-based restricted stock units will vest simultaneously.
Stock activity excluding the ESPP is as follows:
 
 
 
Options Outstanding
 
Shares
Available for
Grant
 
Outstanding
Stock
Options
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic Value (in thousands)
Balance as of January 31, 2016
46,879,908

 
26,258,798

 
$
56.26

 
 
Increase in shares authorized:
 
 
 
 
 
 
 
2013 Equity Incentive Plan
185,247

 


 


 
 
2014 Inducement Plan
2,280,899

 


 


 
 
Assumed equity plans
3,490,475

 


 


 

Options granted under all plans
(3,048,797
)
 
3,048,797

 
43.26

 
 
Restricted stock activity
(7,894,898
)
 


 


 
 
Stock grants to board and advisory board members
(151,665
)
 


 


 
 
Exercised
0

 
(4,310,671
)
 
36.84

 
 
Plan shares expired
(75,193
)
 


 


 
 
Canceled
1,074,951

 
(1,074,951
)
 
65.99

 
 
Balance as of October 31, 2016
42,740,927

 
23,921,973

 
$
57.67

 
$
452,870

Vested or expected to vest
 
 
22,290,560

 
$
56.96

 
$
435,630

Exercisable as of October 31, 2016
 
 
9,738,925

 
$
46.81

 
$
276,132


The total intrinsic value of the options exercised during the nine months ended October 31, 2016 and 2015 was $176.2 million and $251.3 million, respectively. The intrinsic value is the difference between the current market value of the stock and the exercise price of the stock option.
The weighted-average remaining contractual life of vested and expected to vest options is approximately 4.8 years.
As of October 31, 2016, options to purchase 9,738,925 shares were vested at a weighted average exercise price of $46.81 per share and had a remaining weighted-average contractual life of approximately 3.6 years. The total intrinsic value of these vested options as of October 31, 2016 was $276.1 million.
The following table summarizes information about stock options outstanding as of October 31, 2016:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise
Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual Life
(Years)
 
Weighted-
Average
Exercise
Price
 
Number of
Shares
 
Weighted-
Average
Exercise
Price
$0.86 to $39.09
 
4,967,743

 
3.3
 
$
27.75

 
3,787,491

 
$
32.10

$40.19 to $52.28
 
367,386

 
3.6
 
44.03

 
238,650

 
43.74

$52.30
 
3,511,561

 
4.1
 
52.30

 
2,402,677

 
52.30

$53.60 to $58.86
 
1,060,744

 
4.7
 
55.56

 
406,859

 
55.79

$59.34
 
5,779,049

 
5.1
 
59.34

 
2,565,609

 
59.34

$59.37 to $80.62
 
2,729,211

 
6.1
 
71.03

 
337,639

 
68.78

$80.99 to $82.55
 
5,506,279

 
6.1
 
81.02

 
0

 
0.00

 
 
23,921,973

 
4.8
 
$
57.67

 
9,738,925

 
$
46.81


Restricted stock activity is as follows: 
 
Restricted Stock Outstanding
 
Outstanding
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2016
21,294,585

 
$
0.001

 
 
Granted- restricted stock units and awards
6,890,113

 
0.001

 
 
Canceled
(1,539,907
)
 
0.001

 
 
Vested and converted to shares
(5,310,841
)
 
0.001

 
 
Balance as of October 31, 2016
21,333,950

 
$
0.001

 
$
1,603,460

Expected to vest
18,310,081

 
 
 
$
1,376,186


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 4 years.
The weighted-average grant date fair value of the restricted stock issued for the nine months ended October 31, 2016 and 2015 was $76.90 and $70.26, respectively.
Common Stock
The following number of shares of common stock were reserved and available for future issuance at October 31, 2016:
 
Options outstanding
23,921,973

Restricted stock awards and units and performance stock units outstanding
21,333,950

Stock available for future grant:
 
2013 Equity Incentive Plan
41,903,116

2014 Inducement Plan
755,404

Amended and Restated 2004 Employee Stock Purchase Plan
5,289,597

Acquired equity plans
82,407

Convertible Senior Notes
17,308,880

Warrants
17,308,880

 
127,904,207

Income Taxes
Income Taxes
Income Taxes
Effective Tax Rate
The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year to date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the nine months ended October 31, 2016, the Company reported a tax benefit of $182.2 million on a pretax income of $48.9 million, which resulted in a negative effective tax rate of 373 percent. The most significant component of this tax amount was the discrete tax benefit of $205.6 million from a partial release of the valuation allowance in connection with the acquisition of Demandware. The net deferred tax liability from the acquisition of Demandware provided a source of additional income to support the realizability of the Company's pre-existing deferred tax assets and as a result, the Company released a portion of its valuation allowance. The tax benefit associated with the release of the valuation allowance was partially offset by income taxes in profitable jurisdictions outside of the United States.
The Company regularly assesses the realizability of the deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some or all of the Company's deferred tax assets will not be realized. The Company evaluates and weighs all available positive and negative evidence such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years. The Company adjusts its valuation allowance in the event sufficient positive evidence overcomes the negative evidence of losses in recent years, for example, if the trend in increasing taxable income continues.
As described in Note 1 “Summary of Business and Significant Accounting Policies,” the Company early adopted ASU 2016-09 in the three months ended April 30, 2016. As a result of adopting ASU 2016-09 and the Company's current valuation allowance position, the Company did not record a current tax expense associated with the United States jurisdiction.
For the nine months ended October 31, 2015, the Company reported a tax provision of $90.3 million on a pretax income of $68.4 million, which resulted in an effective tax rate of 132 percent. The tax provision recorded was primarily related to income taxes in profitable jurisdictions outside the United States.
Tax Benefits Related to Stock-Based Compensation
The income tax benefit related to stock-based compensation was $161.4 million and $130.8 million for the nine months ended October 31, 2016 and 2015, respectively, the majority of which was not recognized as a result of the valuation allowance.
Unrecognized Tax Benefits and Other Considerations
The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States and France. During the nine months ended October 31, 2016, the Company effectively settled the uncertain tax positions subject to the audits in the United Kingdom and Canada, and as a result, the Company released the associated tax reserves. In addition, the Company reached a settlement with the taxing authority in Switzerland and recorded an insignificant amount to the tax provision as a result of the closure of the audit.
The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. However, 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. However, in general, any adjustments resulting from the U.S. audits should not have an impact to our tax provision due to our valuation allowance. The Company anticipates it is reasonably possible that a decrease of unrecognized tax benefits up to approximately $8.3 million may occur in the next 12 months, as the applicable statutes of limitations lapse.
Earnings Per Share
Earnings Per Share
Earnings Per Share
Basic earnings/loss per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings/loss 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. Diluted loss per share for the three months ended October 31, 2016 and the three and nine months ended October 31, 2015 is the same as basic loss per share as there is a net loss in the period and inclusion of potentially issuable shares is anti-dilutive
A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(37,309
)
 
$
(25,157
)
 
$
231,072

 
$
(21,917
)
Denominator:
 
 
 
 
 
 
 
Weighted-average shares outstanding for basic earnings (loss) per share
690,468

 
664,131

 
683,075

 
659,160

Effect of dilutive securities:
 
 
 
 
 
 
 
Convertible senior notes
0

 
0

 
1,994

 
0

Employee stock awards
0

 
0

 
11,188

 
0

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share
690,468

 
664,131

 
696,257

 
659,160


The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Employee stock awards
17,946

 
20,191

 
8,640

 
22,634

Convertible senior notes
17,309

 
17,309

 
0

 
17,309

Warrants
17,309

 
17,309

 
17,309

 
17,309

Commitments
Commitments
Commitments
Letters of Credit
As of October 31, 2016, the Company had a total of $84.0 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through December 2030.
Leases
The Company leases facilities space and certain fixed assets under non-cancelable operating and capital leases with various expiration dates.
As of October 31, 2016, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in thousands):
 
 
Capital
Leases
 
Operating
Leases
 
Financing Obligation -Leased Facility(1)
Fiscal Period:
 
 
 
 
 
Remaining three months of fiscal 2017
$
26,431

 
$
109,755

 
$
5,322

Fiscal 2018
122,649

 
429,673

 
21,437

Fiscal 2019
115,791

 
382,264

 
21,881

Fiscal 2020
201,576

 
303,873

 
22,325

Fiscal 2021
35

 
264,798

 
22,770

Thereafter
0

 
1,445,905

 
233,927

Total minimum lease payments
466,482

 
$
2,936,268

 
$
327,662

Less: amount representing interest
(41,368
)
 

 

Present value of capital lease obligations
$
425,114

 

 

______________ 
(1) Total Financing Obligation -Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest noted in Note 3 “Property and Equipment.” As of October 31, 2016, $220.8 million of the total obligation noted above was recorded to Financing obligation - leased facility, of which the current portion is included in "Accounts payable, accrued expenses and other liabilities" and the non-current portion is included in “Other noncurrent liabilities” on the consolidated balance sheets.
The Company’s agreements for the facilities and certain services provide the Company with the option to renew. The Company’s future contractual obligations would change if the Company exercised these options.
The terms of the lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Of the total operating lease commitment balance of $2.9 billion, approximately $2.6 billion is related to facilities space. The remaining commitment amount is related to computer equipment and furniture and fixtures.
Other Purchase Commitments
In April 2016, the Company entered into an agreement with a third party provider for certain infrastructure services for a period of four years. The agreement provides that the Company will pay $35.0 million in the remainder of fiscal 2017, $96.0 million in fiscal 2018, $108.0 million in fiscal 2019 and $126.0 million in fiscal 2020.
Legal Proceedings and Claims
Legal Proceedings and Claims
Legal Proceedings and Claims

In the ordinary course of business, the Company is or may be involved in various legal proceedings and claims related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, class actions, wage and hour, and other claims. The Company has been, and may in the future be put on notice and/or sued by third parties for alleged infringement of their proprietary rights, including patent infringement.

During fiscal 2015, the Company received a communication from a large technology company alleging that the Company infringed certain of its patents. No litigation has been filed to date.  There can be no assurance that this claim will not lead to litigation in the future.  The resolution of this claim is not expected to have a material adverse effect on the Company's financial condition, but it could be material to operating results or cash flows or both of a particular quarter. 
 
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. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect the Company’s future results of operations or cash flows, or both, of a particular quarter.
Related-Party Transactions
Related-Party Transactions
Related-Party Transactions
In January 1999, the Salesforce.com Foundation, also referred to as the Foundation, was chartered on an idea of leveraging the Company’s people, technology, and resources to help improve communities around the world. The Company calls this integrated philanthropic approach the 1-1-1 model. Beginning in 2008, Salesforce.org, which is a non-profit public benefit corporation, was established to resell the Company's services to nonprofit organizations and certain higher education organizations.
The Company’s chairman is the chairman of both the Foundation and Salesforce.org. The Company’s chairman holds one of the three Foundation board seats. The Company’s chairman, one of the Company’s employees and one of the Company’s board members hold three of Salesforce.org’s nine board seats. The Company does not control the Foundation’s or Salesforce.org's activities, and accordingly, the Company does not consolidate either of the related entities' statement of activities with its financial results.
Since the Foundation’s and Salesforce.org’s inception, the Company has provided at no charge certain resources to those entities employees such as office space, furniture, equipment, facilities, services, and other resources. The value of these items was approximately $2.5 million for the nine months ended October 31, 2016.
The resource sharing agreement was amended in August 2015 to include resources outside of the United States and is more explicit about the types of resources that the Company will provide.
Additionally, the Company has donated subscriptions of the Company’s services to other qualified non-profit organizations. The Company also allows Salesforce.org to resell the Company’s service to non-profit organizations and certain education entities. The Company does not charge Salesforce.org for these subscriptions, therefore revenue from subscriptions provided to non-profit organizations is donated back to the community through charitable grants made by the Foundation and Salesforce.org. The reseller agreement was amended in August 2015 to include additional customer segments and certain customers outside the U.S. and in October 2015 to add an addendum with model clauses for the processing of personal data transferred from the European Economic Area. The value of the subscriptions pursuant to reseller agreements was approximately $92.9 million for the nine months ended October 31, 2016. The Company plans to continue these programs.
As described in Note 4 “Business Combinations,” the Company's chairman held an ownership interest in an acquisition that was completed by the Company in April 2016.
Subsequent Events
Subsequent Events
Subsequent Events
In November 2016, the Company acquired the outstanding stock of Krux Digital, Inc. (“Krux”), in exchange for cash funded from a portion of our Credit Facility and the issuance of shares of common stock of the Company. Krux is a leading data management platform that increases engagement with users, prospects and customers. The Company acquired Krux for its product offerings and employees. After taking into consideration customary purchase price adjustments, the total estimated consideration for Krux was approximately $700.0 million.
Summary of Business and Significant Accounting Policies (Policies)
Fiscal Year 
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2017, for example, refer to the fiscal year ending January 31, 2017.
Basis of Presentation 
Basis of Presentation

The accompanying consolidated balance sheet as of October 31, 2016 and the consolidated statements of operations, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows for the three and nine months ended October 31, 2016 and 2015, respectively, are unaudited.

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2016, and its results of operations, including its comprehensive income (loss), and its cash flows for the three and nine months ended October 31, 2016 and 2015. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2016 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2017.

These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2016 as updated by the Form 8-K filed with the SEC on September 1, 2016.
Use of Estimates 
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•
the best estimate of selling price of the deliverables included in multiple deliverable revenue arrangements,
•
the fair value of assets acquired and liabilities assumed for business combinations,
•
the recognition, measurement and valuation of current and deferred income taxes,
•
the fair value of stock awards issued and related forfeiture rates,
•
the useful lives of intangible assets, property and equipment and building and structural components, and
•
the valuation of strategic investments and the determination of other-than-temporary impairments.

Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Principles of Consolidation 
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments 
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. Over the past few years, including fiscal 2017, the Company has completed a number of acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, the Company’s business operates in one operating segment because the majority of the Company's offerings operate on a single platform and are deployed in an identical way, and the Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
Concentrations of Credit Risk and Significant Customers 
Concentrations of Credit Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and trade accounts receivable. Collateral is not required for accounts receivable. The Company maintains an allowance for doubtful accounts receivable balances. 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.
Revenue Recognition 
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s enterprise cloud computing services and from customers paying for additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services such as process mapping, project management, implementation services and other revenue. “Other revenue” consists primarily of training fees.
The Company commences revenue recognition when all of the following conditions are satisfied:
•
there is persuasive evidence of an arrangement;
•
the service has been or is being provided to the customer;
•
the collection of the fees is reasonably assured; and
•
the amount of fees to be paid by the customer is fixed or determinable.
The Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and Support Revenues
Subscription and support revenues are recognized ratably over the contract terms beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers.
Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and material or fixed fee basis. When these services are not combined with subscription revenues as a single unit of accounting, as discussed below, these revenues are recognized as the services are rendered for time and material contracts, and when the milestones are achieved and accepted by the customer for fixed price contracts. Training revenues are recognized as the services are performed.
Multiple Deliverable Arrangements
The Company enters into arrangements with multiple deliverables that generally include multiple subscriptions, premium support and professional services. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately. Subscription services have standalone value as such services are often sold separately. In determining whether professional services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple deliverable arrangements executed have standalone value.
Multiple deliverables included in an arrangement are separated into different units of accounting and the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of selling price (“VSOE”), if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any.
For certain professional services, the Company has established VSOE as a consistent number of standalone sales of these deliverables have been priced within a reasonably narrow range. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price for its subscription services.
The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, its go-to-market strategy, historical standalone sales and contract prices. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative selling prices, including both VSOE and BESP.
Deferred Revenue 
Deferred Revenue
The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in annual installments. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
Deferred revenue that will be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent.
Deferred Commissions 
Deferred Commissions
Deferred commissions are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to the Company’s direct sales force.
The commissions are deferred and amortized over the non-cancelable terms of the related customer contracts, which are typically 12 to 36 months. The commission payments are paid in full the month after the customer’s service commences and are a direct and incremental cost of the revenue arrangements. The deferred commission amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the non-cancelable customer contracts that they should be recorded as an asset and charged to expense over the same period that the subscription revenue is recognized. Amortization of deferred commissions is included in marketing and sales expense in the accompanying consolidated statements of operations.
Cash and Cash Equivalents 
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities 
Marketable Securities
Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. 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 (loss). 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 component of investment income. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of investment income.
Fair Value Measurement 
Fair Value Measurement
The Company measures its cash equivalents, marketable securities and foreign currency derivative contracts at fair value. The additional disclosures regarding the Company’s fair value measurements are included in Note 2 “Investments.”
Property and Equipment 
Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
 
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building- leased facility
27 years
Building improvements
10 years

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Capitalized Internal-Use Software Costs 
Capitalized Internal-Use 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.
Goodwill and Intangible Assets Impairment Assessments 
Goodwill and Intangible Assets Impairment Assessments
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during the fourth quarter or more often if and when circumstances indicate that goodwill may not be recoverable.
Intangible assets are amortized over their 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. The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of 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, then the carrying amount of such assets is reduced to fair value.
Long- Lived Assets and Impairment Assessment 
Long-Lived Assets and Impairment Assessment
The Company evaluates long-lived assets for possible impairment whenever events or 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. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value.
Business Combinations 
Business Combinations
The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
In the event that the Company enters into a business combination with an entity in which the Company previously held a strategic investment, significant gains or losses will be disclosed separately within the statements of operations. 
Leases and Asset Retirement Obligations 
Leases and Asset Retirement Obligations
The Company categorizes leases at their inception as either operating or capital leases. In certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.
The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period to operating expense.
In the event the Company is the deemed owner for accounting purposes during construction, the Company records assets and liabilities for the estimated construction costs incurred under build-to-suit lease arrangements to the extent it is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease.
The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other income (expense).
Accounting for Stock-Based Compensation 
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.

ESPP assumptions and the related fair value per share table will only be disclosed in the three month period in which there is ESPP activity, such as an ESPP purchase. The Company's ESPP Plan allows for two purchases during the year, one during the second quarter and one during the fourth quarter. The estimated life of the ESPP will be based on the two purchase periods within each offering period.

The 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.
Accounting for Stock-Based Expense
The Company recognizes stock-based expenses related to stock options and restricted stock awards on a straight-line basis over the requisite service period of the awards, which is generally the vesting term of four years. The aggregate stock compensation remaining to be amortized to costs and expenses will be recognized over a weighted average period of 2.7 years. The Company recognizes stock-based expenses related to shares issued pursuant to its Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) on a straight-line basis over the offering period, which is 12 months. Stock-based expenses are recognized net of estimated forfeiture activity. 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.
Income Taxes 
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the consolidated statement of operations in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
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.
Foreign Currency Translation 
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive income (loss). Foreign currency transaction gains and losses are included in net income (loss) for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.
Warranties and Indemnification 
Warranties and Indemnification
The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
New Accounting Pronouncements Adopted and Pending 
New Accounting Pronouncements Adopted in Fiscal 2017

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. However, ASU 2015-03 does not address deferred issuance costs for line-of-credit arrangements; therefore, in August 2015, the FASB issued Accounting Standards Update No. 2015-15, “Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 allows an entity to defer debt issuance costs associated with line-of-credit arrangements, including arrangements with no outstanding borrowings, and classify them as an asset, and amortize them over the term of the arrangements. The recognition and measurement guidance for debt issuance costs is not affected by the standards. The Company adopted the standards in the three months ended April 30, 2016. Upon adoption, the unamortized debt issuance costs previously reported in Other assets, net, with a carrying amount of approximately $7.9 million at January 31, 2016, were reclassified and presented as a deduction of the corresponding liabilities, Convertible 0.25% senior notes, net, Term Loan, and Loan assumed on 50 Fremont.
In September 2015, the FASB issued Accounting Standards Update No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”), which eliminates the requirement to restate prior period financial statements for measurement period adjustments in business combinations. ASU 2015-16 requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The Company adopted this standard during the three months ended April 30, 2016 and there was no material impact of this on the Company's financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting” (“ASU 2016-09”), which simplifies and improves several aspects of the accounting for employee share-based payment transactions for public entities. The new guidance requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. The Company adopted the standard in the three months ended April 30, 2016.  Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in a cumulative-effect adjustment of $8.7 million to accumulated deficit. This adjustment reduced the April 30, 2016 accumulated deficit balance. The previously unrecognized excess tax effects were recorded as a deferred tax asset, which was fully offset by a valuation allowance. Without the valuation allowance, the Company’s deferred tax asset would have increased by $614.5 million. The Company also elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classified the excess tax benefits from employee stock plans as a reduction from operating cash flows for all periods presented.   
Pending Accounting Pronouncements
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. This standard establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. The FASB deferred the effective date for the new revenue reporting standard for entities reporting under U.S. GAAP for one year. In accordance with the deferral, ASU 2014-09 will be effective for fiscal 2019, including interim periods within that reporting period. The Company is currently in the process of assessing the adoption methodology, which allows the amendment to be applied retrospectively to each prior period presented, or with the cumulative effect recognized as of the date of initial application. The Company is also evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not determined whether the effect will be material to either its revenue results or its accounting for deferred commissions balances.

In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Financial Instrument-Overall (Subtopic 825-10)” (“ASU 2016-01”), which requires entities to measure equity investments at fair value and recognize any changes in fair value in net income. However, for equity investments that do not have readily determinable fair values and do not qualify for the existing practical expedient, the investments will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The new standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-01 on its consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements.
In October 2016, the FASB issued Accounting Standards Update No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”)”, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The new standard is effective for annual periods beginning after December 15, 2017, with early adoption permitted as of the beginning of a fiscal year. The Company is currently evaluating the impact of the adoption of ASU 2016-16 on its consolidated financial statements.
Summary of Business and Significant Accounting Policies (Tables)
Revenues By Geographical Region 
Revenues by geographical region are as follows (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Americas
$
1,598,344

 
$
1,258,148

 
$
4,506,774

 
$
3,575,441

Europe
337,497

 
302,704

 
1,012,671

 
848,413

Asia Pacific
208,934

 
151,115

 
578,551

 
433,964

 
$
2,144,775


$
1,711,967


$
6,097,996

 
$
4,857,818

Schedule Of Property And Equipment Estimated Useful Lives 
Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
 
Computers, equipment and software
3 to 9 years
Furniture and fixtures
5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
Building and structural components
Average weighted useful life of 32 years
Building- leased facility
27 years
Building improvements
10 years
Schedule Of Assumptions Used To Calculate Fair Value Of Options Granted 
The fair value of each stock option grant and ESPP share was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions and fair value per share:
 
 
Three Months Ended 
 October 31,
 
Nine Months Ended 
October 31,
Stock Options
2016
 
 
2015
 
2016
 
2015
Volatility
32.3

%
 
35

%
32.1-32.3

%
 
35-37

%
Estimated life
3.5 years

 
 
3.6 years

 
3.5 years

 
 
3.6 years

 
Risk-free interest rate
0.91-1.07

%
 
1.21-1.27

%
0.89-1.07

%
 
1.13-1.42

%
Weighted-average fair value per share of grants
$
18.75

 
 
$
19.72

 
$
18.75

 
 
$
19.79

 
Investments (Tables)
Schedule of Marketable Securities 
At October 31, 2016, marketable securities consisted of the following (in thousands):
 
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
308,381

 
$
2,262

 
$
(482
)
 
$
310,161

U.S. treasury securities
52,692

 
132

 
(43
)
 
52,781

Mortgage backed obligations
77,723

 
138

 
(198
)
 
77,663

Asset backed securities
111,806

 
310

 
(23
)
 
112,093

Municipal securities
45,388

 
235

 
(33
)
 
45,590

Foreign government obligations
7,090

 
19

 
(3
)
 
7,106

Total marketable securities
$
603,080


$
3,096


$
(782
)

$
605,394

At January 31, 2016, marketable securities consisted of the following (in thousands):
 
Investments classified as Marketable Securities
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Corporate notes and obligations
$
949,266

 
$
1,398

 
$
(2,983
)
 
$
947,681

U.S. treasury securities
157,625

 
375

 
(56
)
 
157,944

Mortgage backed obligations
104,242

 
106

 
(323
)
 
104,025

Asset backed securities
271,292

 
186

 
(226
)
 
271,252

Municipal securities
44,934

 
209

 
(6
)
 
45,137

Foreign government obligations
18,014

 
42

 
(5
)
 
18,051

U.S. agency obligations
16,076

 
16

 
(6
)
 
16,086

Covered bonds
6,690

 
148

 
0

 
6,838

Total marketable securities
$
1,568,139


$
2,480


$
(3,605
)

$
1,567,014

Schedule of Short-Term and Long-Term Marketable Securities 
The duration of the investments classified as marketable securities is as follows (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Recorded as follows:
 
 
 
Short-term (due in one year or less)
$
55,071

 
$
183,018

Long-term (due after one year)
550,323

 
1,383,996

 
$
605,394

 
$
1,567,014

Schedule of Marketable Securities in a Unrealized Loss Position 
As of October 31, 2016, the following marketable securities were in an unrealized loss position (in thousands):
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate notes and obligations
$
59,612

 
$
(473
)
 
$
4,594

 
$
(9
)
 
$
64,206

 
$
(482
)
U.S. treasury securities
20,294

 
(43
)
 
0

 
0

 
20,294

 
(43
)
Mortgage backed obligations
40,964

 
(195
)
 
224

 
(3
)
 
41,188

 
(198
)
Asset backed securities
24,713

 
(17
)
 
1,862

 
(6
)
 
26,575

 
(23
)
Municipal securities
6,689

 
(33
)
 
0

 
0

 
6,689

 
(33
)
Foreign government obligations
4,092

 
(3
)
 
0

 
0

 
4,092

 
(3
)
 
$
156,364

 
$
(764
)
 
$
6,680

 
$
(18
)
 
$
163,044

 
$
(782
)
Schedule of Assets and Liabilities Measured at Fair Value an a Recurring Basis 
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of October 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands):
 
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant  Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of October 31, 2016
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
110,796

 
$
0

 
$
110,796

Money market mutual funds
206,156

 
0

 
0

 
206,156

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
310,161

 
0

 
310,161

U.S. treasury securities
0

 
52,781

 
0

 
52,781

Mortgage backed obligations
0

 
77,663

 
0

 
77,663

Asset backed securities
0

 
112,093

 
0

 
112,093

Municipal securities
0

 
45,590

 
0

 
45,590

Foreign government obligations
0

 
7,106

 
0

 
7,106

Foreign currency derivative contracts (2)
0

 
1,372

 
0

 
1,372

Total assets
$
206,156

 
$
717,562

 
$
0

 
$
923,718

Liabilities
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
$
0

 
$
4,838

 
$
0

 
$
4,838

Total liabilities
$
0

 
$
4,838

 
$
0

 
$
4,838

_____________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of October 31, 2016, in addition to $828.8 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of October 31, 2016.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the consolidated balance sheet as of October 31, 2016.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of January 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands):
 
Description
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable Inputs (Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Balances as of
January 31, 2016
Cash equivalents (1):
 
 
 
 
 
 
 
Time deposits
$
0

 
$
236,798

 
$
0

 
$
236,798

Money market mutual funds
216,107

 
0

 
0

 
216,107

Commercial paper
0

 
159,230

 
0

 
159,230

Agency and sovereign paper
0

 
13,599

 
0

 
13,599

Marketable securities:
 
 
 
 
 
 
 
Corporate notes and obligations
0

 
947,681

 
0

 
947,681

U.S. treasury securities
0

 
157,944

 
0

 
157,944

Mortgage backed obligations
0

 
104,025

 
0

 
104,025

Asset backed securities
0

 
271,252

 
0

 
271,252

Municipal securities
0

 
45,137

 
0

 
45,137

Foreign government obligations
0

 
18,051

 
0

 
18,051

U.S. agency obligations
0

 
16,086

 
0

 
16,086

Covered bonds
0

 
6,838

 
0

 
6,838

Foreign currency derivative contracts (2)
0

 
4,731

 
0

 
4,731

Total Assets
$
216,107

 
$
1,981,372

 
$
0

 
$
2,197,479

Liabilities
 
 
 
 
 
 
 
Foreign currency derivative contracts (3)
$
0

 
$
14,025

 
$
0

 
$
14,025

Total Liabilities
$
0

 
$
14,025

 
$
0

 
$
14,025

______________ 
(1)Included in “cash and cash equivalents” in the accompanying consolidated balance sheet as of January 31, 2016, in addition to $532.6 million of cash.
(2)Included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of January 31, 2016.
(3)Included in “accounts payable, accrued expenses and other liabilities” in the accompanying consolidated balance sheet as of January 31, 2016.
Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables 
Details on outstanding foreign currency derivative contracts related primarily to intercompany receivables and payables are presented below (in thousands):
 
 
As of
 
October 31, 2016
 
January 31, 2016
Notional amount of foreign currency derivative contracts
$
1,217,458

 
$
1,274,515

Fair value of foreign currency derivative contracts
$
(3,466
)
 
$
(9,294
)
Fair Value of Outstanding Derivative Instruments 
The fair value of the Company’s outstanding derivative instruments are summarized below (in thousands):
 
 
 
Fair Value of Derivative Instruments
 
 
As of
  
Balance Sheet Location
October 31, 2016
 
January 31, 2016
Derivative Assets
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign currency derivative contracts
Prepaid expenses and other current assets
$
1,372

 
$
4,731

Derivative Liabilities
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
Foreign currency derivative contracts
Accounts payable, accrued expenses and other liabilities
$
4,838

 
$
14,025

Schedule of The Effect of The Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Operations 
The effect of the derivative instruments not designated as hedging instruments on the consolidated statements of operations during the three and nine months ended October 31, 2016 and 2015, respectively, are summarized below (in thousands):
Derivatives Not Designated as Hedging
Instruments
Losses on Derivative Instruments
Recognized in Other income (expense)
  
 

Three Months Ended 
 October 31,
 
Location

2016

2015
Foreign currency derivative contracts
Other income (expense)

$
(39,624
)
 
$
(2,888
)
 
Derivatives Not Designated as Hedging
Instruments
Income (loss) on Derivative Instruments
Recognized in Other income (expense)
  
 

Nine Months Ended 
 October 31,
 
Location

2016

2015
Foreign currency derivative contracts
Other income (expense)

$
(86,528
)

$
9,773

Schedule of Components of Investment Income 
The components of investment income are presented below (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Interest income
$
3,642

 
$
3,700

 
$
17,961

 
$
9,919

Realized gains
210

 
257

 
7,771

 
3,197

Realized losses
(143
)
 
(450
)
 
(1,985
)
 
(1,765
)
Total investment income
$
3,709

 
$
3,507

 
$
23,747

 
$
11,351

Property and Equipment (Tables)
Schedule of Property And Equipment
Property and equipment, net consisted of the following (in thousands):
 
As of
 
October 31, 2016
 
January 31, 2016
Land
$
183,888

 
$
183,888

Buildings and building improvements
619,419

 
614,081

Computers, equipment and software
1,390,751

 
1,281,766

Furniture and fixtures
101,558

 
82,242

Leasehold improvements
586,040

 
473,688

 
2,881,656

 
2,635,665

Less accumulated depreciation and amortization
(1,124,983
)
 
(919,837
)
 
$
1,756,673

 
$
1,715,828

Business Combinations (Tables)
Schedule of Consideration Transferred 
The preliminary acquisition date fair value consideration transferred for BeyondCore was approximately $106.6 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
21,053

Common stock (1,073,432 shares)
81,484

Fair value of stock options and restricted stock awards assumed
4,061

Total
$
106,598

The preliminary acquisition date fair value consideration transferred for Quip was approximately $412.0 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
2,711

Common stock (4,796,152 shares)
385,131

Fair value of stock options and restricted stock awards assumed
22,345

Fair value of pre-existing relationship
1,833

Total
$
412,020

The acquisition date fair value of the consideration transferred for Demandware was approximately $2.9 billion, including the proceeds from the term loan of $500.0 million (see Note 5), which consisted of the following (in thousands):
 
Fair Value
Cash
$
2,920,336

Fair value of stock options and restricted stock awards assumed
9,344

Total
$
2,929,680

The acquisition date fair value consideration transferred for SteelBrick was approximately $314.8 million, which consisted of the following (in thousands, except for share data):
 
Fair Value
Cash
$
1,698

Common stock (4,288,447 shares)
278,372

Fair value of stock options and restricted stock awards assumed
10,989

Fair value of pre-existing relationship
23,726

Total
$
314,785

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
59,296

Other current and noncurrent tangible assets
3,012

Customer contract asset, noncurrent
6,954

Intangible assets
49,160

Goodwill
217,986

Deferred revenue, current and noncurrent
(8,479
)
Other liabilities, current and noncurrent
(2,665
)
Deferred tax liability
(10,479
)
Net assets acquired
$
314,785

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
2,046

Other current and noncurrent tangible assets
462

Intangible assets
15,600

Goodwill
90,794

Deferred revenue, current and noncurrent
(818
)
Other liabilities, current and noncurrent
(923
)
Deferred tax liability
(563
)
Net assets acquired
$
106,598

The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
139,259

Marketable securities
37,230

Accounts receivable
56,982

Other current assets
13,545

Customer contract asset, noncurrent
327,830

Intangible assets
633,277

Property and equipment
29,463

Other noncurrent assets
4,579

Goodwill
1,985,269

Accounts payable, accrued expenses and other liabilities
(51,870
)
Deferred revenue, current and noncurrent
(22,647
)
Other liabilities, noncurrent
(12,935
)
Deferred tax liability
(210,302
)
Net assets acquired
$
2,929,680

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
 
Fair Value
Cash and cash equivalents
$
27,985

Other current and noncurrent tangible assets
556

Intangible assets
31,200

Goodwill
357,610

Other liabilities, current and noncurrent
(2,491
)
Deferred tax liability
(2,840
)
Net assets acquired
$
412,020

Schedule of Identifiable Intangible Assets Acquired 
The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
14,900

6 years
Customer relationships
700

2 years
Total intangible assets subject to amortization
$
15,600


The following table sets forth the components of identifiable intangible assets acquired and their preliminary estimated useful lives as of the date of acquisition (in thousands):
 
Fair Value
Useful Life
Developed technology
$
242,550

2 to 5 years
Customer relationships
384,590

3 to 10 years
Other purchased intangible assets
6,137

3 to 10 years
Total intangible assets subject to amortization
$
633,277


The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
30,700

4 years
Customer relationships
17,110

7 years
Other purchased intangible assets
1,350

1 year
Total intangible assets subject to amortization
$
49,160


The following table sets forth the components of identifiable intangible assets acquired (in thousands) and their estimated useful lives as of the date of acquisition.
 
Fair Value
Useful Life
Developed technology
$
18,590

5 years
Customer relationships
12,460

10 years
Other purchased intangible assets
150

3 years
Total intangible assets subject to amortization
$
31,200


Pro Forma Financial Information 
The unaudited pro forma financial information was as follows (in thousands):
 
Nine Months Ended October 31,
 
2016
 
2015
Total revenues
$
6,176,166

 
$
4,958,491

Pretax loss
(100,817
)
 
(200,844
)
Net loss
(138,714
)
 
(37,097
)
The amounts of revenue and earnings of Demandware included in the Company’s consolidated statement of operations from the acquisition date of July 11, 2016 through October 31, 2016 are as follows (in thousands):
Total revenues
$
57,878

Pretax loss
(81,763
)
Net loss
(82,061
)
Debt (Tables)
Summary of Convertible Senior Notes 
Certain terms of the conversion features of the 0.25% Senior Notes are as follows:
 
Conversion
Rate per $1,000
Par Value
 
Initial
Conversion
Price per
Share
 
Convertible Date
0.25% Senior Notes
15.0512

 
$
66.44

 
January 1, 2018
Convertible Senior Notes
  
Par Value Outstanding
 
Equity
Component Recorded at Issuance
 
Liability Component of Par Value as of
 
(in thousands)
October 31,
2016
 
 
January 31,
2016
 
0.25% Convertible Senior Notes due April 1, 2018
$
1,150,000

 
$
122,421

(1)
$
1,109,236

 
 
$
1,088,097

 
___________ 
(1)This amount represents the equity component recorded at the initial issuance of the 0.25% convertible senior notes.

Schedule of Convertible Senior Notes 
The 0.25% Senior Notes consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Liability component :
 
 
 
Principal (1)
$
1,150,000

 
$
1,150,000

Less: debt discount, net (2)
(36,260
)
 
(54,941
)
Less: debt issuance cost (3)
(4,504
)
 
(6,962
)
Net carrying amount
$
1,109,236

 
$
1,088,097

(1)The effective interest rate of the 0.25% Senior Notes is 2.53%. The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature.
(2)Included in the consolidated balance sheets within Convertible 0.25% Senior Notes (which is classified as a noncurrent liability) and is amortized over the life of the 0.25% Senior Notes using the effective interest rate method.
(3)In April 2015, the FASB issued ASU 2015-03 which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. The Company retrospectively adopted this standard for the prior period presented.
Summary of Hedge Notes 
To minimize the impact of potential economic dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions with respect to its common stock (the “0.25% Note Hedges”).
 
(in thousands, except for shares)
Date
 
Purchase
 
Shares
0.25% Note Hedges
March 2013
 
$
153,800

 
17,308,880

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

 
17,308,880

 
$
90.40

Schedule of Interest Expense 
The following table sets forth total interest expense recognized related to the 0.25% Senior Notes, the Term Loan, the Credit Facility and the Loan prior to capitalization of interest (in thousands):
 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Contractual interest expense
$
5,207

 
$
2,843

 
$
11,398

 
$
9,036

Amortization of debt issuance costs
1,342

 
1,027

 
4,071

 
3,077

Amortization of debt discount
6,304

 
6,148

 
18,794

 
18,317

 
$
12,853

 
$
10,018

 
$
34,263

 
$
30,430

Other Balance Sheet Accounts (Tables)
Schedule of Prepaid Expenses and Other Current Assets 
Prepaid expenses and other current assets consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Prepaid income taxes
$
22,766

 
$
22,044

Customer contract asset (1)
0

 
1,423

Other taxes receivable
25,829

 
27,341

Prepaid expenses and other current assets
232,998

 
199,786

 
$
281,593

 
$
250,594


(1) As of October 31, 2016, the customer contract asset has been presented as a long term intangible asset. For further information see Note 4  “Business Combinations.”
Schedule of Capitalized Software Costs 
Capitalized software consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Capitalized internal-use software development costs, net of accumulated amortization of $233,706 and $186,251, respectively
$
137,989

 
$
123,065

Acquired developed technology, net of accumulated amortization of $571,023 and $481,118, respectively
499,888

 
261,193

 
$
637,877

 
$
384,258

Schedule of Goodwill 
Goodwill consisted of the following (in thousands):
Balance as of January 31, 2016
$
3,849,937

SteelBrick
217,986

MetaMind
31,242

Demandware
1,884,886

Quip
357,610

BeyondCore
90,794

Other business combinations
100,389

Adjustments of acquisition date fair values:
 
SteelBrick
651

Demandware
100,383

Other business combinations
(16,879
)
Balance as of October 31, 2016
$
6,616,999

Schedule of Other Assets 
Other assets consisted of the following (in thousands):
 
As of
 
October 31,
2016
 
January 31,
2016
Deferred income taxes, noncurrent, net
$
22,095

 
$
15,986

Long-term deposits
25,346

 
19,469

Purchased intangible assets, net of accumulated amortization of $281,846 and $212,248, respectively
622,667

 
258,580

Acquired intellectual property, net of accumulated amortization of $27,331 and $22,439, respectively
11,122

 
10,565

Customer contract asset, noncurrent (1)
308,484

 
93

Other (2)
110,722

 
66,217

 
$
1,100,436

 
$
370,910

(1) As of October 31, 2016, the customer contract asset has been presented as a long term intangible asset. For further information see Note 4  “Business Combinations.”
(2) In April 2015, the FASB issued ASU 2015-03 which simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability rather than an asset that is amortized. The Company retrospectively adopted this standard for the prior period presented, which resulted in a decrease in the carrying value of $7.9 million to Other as of January 31, 2016.
Schedule of Accrued Expenses and Other Current Liabilities 
Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): 
 
As of
 
October 31,
2016
 
January 31,
2016
Accounts payable
$
140,541

 
$
71,481

Accrued compensation
558,945

 
554,502

Non-cash equity liability (1)
74,570

 
0

Accrued other liabilities
498,774

 
447,729

Accrued income and other taxes payable
149,133

 
205,781

Accrued professional costs
38,331

 
33,814

Customer contract liability (2)
0

 
6,558

Accrued rent
17,055

 
14,071

Financing obligation - leased facility, current (3)
19,492

 
15,402

 
$
1,496,841

 
$
1,349,338


Schedule of Other Noncurrent Liabilities 
Other noncurrent liabilities consisted of the following (in thousands):
 
 
As of
 
October 31,
2016
 
January 31,
2016
Deferred income taxes and income taxes payable
$
93,454

 
$
85,996

Customer contract liability, noncurrent (2)
0

 
66

Financing obligation - leased facility (3)
201,283

 
196,711

Long-term lease liabilities and other
490,550

 
550,292

 
$
785,287

 
$
833,065



(1) Non-cash equity liability represents the purchase price of shares issued to non-executive employees, as to shares exceeding previously registered ESPP shares at the time of sale to the extent the shares had not been subsequently sold by the employee purchaser. The Company expects this liability will be relieved within a year or earlier as the shares are subsequently sold.
(2) As of October 31, 2016, the customer contract liability has been presented as part of the customer contract asset. For further information see Note 4  “Business Combinations.”
(3) As of January 31, 2016, 350 Mission was in construction. In March 2016, construction was completed on the building. See Note 3 “Property and Equipment” for further discussion.

Stockholders' Equity (Tables)
Schedule Of Stock Activity 
ctivity excluding the ESPP is as follows:
 
 
 
Options Outstanding
 
Shares
Available for
Grant
 
Outstanding
Stock
Options
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic Value (in thousands)
Balance as of January 31, 2016
46,879,908

 
26,258,798

 
$
56.26

 
 
Increase in shares authorized:
 
 
 
 
 
 
 
2013 Equity Incentive Plan
185,247

 


 


 
 
2014 Inducement Plan
2,280,899

 


 


 
 
Assumed equity plans
3,490,475

 


 


 

Options granted under all plans
(3,048,797
)
 
3,048,797

 
43.26

 
 
Restricted stock activity
(7,894,898
)
 


 


 
 
Stock grants to board and advisory board members
(151,665
)
 


 


 
 
Exercised
0

 
(4,310,671
)
 
36.84

 
 
Plan shares expired
(75,193
)
 


 


 
 
Canceled
1,074,951

 
(1,074,951
)
 
65.99

 
 
Balance as of October 31, 2016
42,740,927

 
23,921,973

 
$
57.67

 
$
452,870

Vested or expected to vest
 
 
22,290,560

 
$
56.96

 
$
435,630

Exercisable as of October 31, 2016
 
 
9,738,925

 
$
46.81

 
$
276,132

Schedule Of Stock Options Outstanding 
The following table summarizes information about stock options outstanding as of October 31, 2016:
 
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise
Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual Life
(Years)
 
Weighted-
Average
Exercise
Price
 
Number of
Shares
 
Weighted-
Average
Exercise
Price
$0.86 to $39.09
 
4,967,743

 
3.3
 
$
27.75

 
3,787,491

 
$
32.10

$40.19 to $52.28
 
367,386

 
3.6
 
44.03

 
238,650

 
43.74

$52.30
 
3,511,561

 
4.1
 
52.30

 
2,402,677

 
52.30

$53.60 to $58.86
 
1,060,744

 
4.7
 
55.56

 
406,859

 
55.79

$59.34
 
5,779,049

 
5.1
 
59.34

 
2,565,609

 
59.34

$59.37 to $80.62
 
2,729,211

 
6.1
 
71.03

 
337,639

 
68.78

$80.99 to $82.55
 
5,506,279

 
6.1
 
81.02

 
0

 
0.00

 
 
23,921,973

 
4.8
 
$
57.67

 
9,738,925

 
$
46.81

Schedule Of Restricted Stock Activity 
Restricted stock activity is as follows: 
 
Restricted Stock Outstanding
 
Outstanding
 
Weighted-
Average
Exercise Price
 
Aggregate
Intrinsic
Value (in thousands)
Balance as of January 31, 2016
21,294,585

 
$
0.001

 
 
Granted- restricted stock units and awards
6,890,113

 
0.001

 
 
Canceled
(1,539,907
)
 
0.001

 
 
Vested and converted to shares
(5,310,841
)
 
0.001

 
 
Balance as of October 31, 2016
21,333,950

 
$
0.001

 
$
1,603,460

Expected to vest
18,310,081

 
 
 
$
1,376,186

Schedule Of Shares Of Common Stock Available For Future Issuance Under Stock Option Plans 
The following number of shares of common stock were reserved and available for future issuance at October 31, 2016:
 
Options outstanding
23,921,973

Restricted stock awards and units and performance stock units outstanding
21,333,950

Stock available for future grant:
 
2013 Equity Incentive Plan
41,903,116

2014 Inducement Plan
755,404

Amended and Restated 2004 Employee Stock Purchase Plan
5,289,597

Acquired equity plans
82,407

Convertible Senior Notes
17,308,880

Warrants
17,308,880

 
127,904,207

Earnings Per Share (Tables)
Reconciliation of Denominator Used In Calculation of Basic And Diluted Loss Per Share 
A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(37,309
)
 
$
(25,157
)
 
$
231,072

 
$
(21,917
)
Denominator:
 
 
 
 
 
 
 
Weighted-average shares outstanding for basic earnings (loss) per share
690,468

 
664,131

 
683,075

 
659,160

Effect of dilutive securities:
 
 
 
 
 
 
 
Convertible senior notes
0

 
0

 
1,994

 
0

Employee stock awards
0

 
0

 
11,188

 
0

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share
690,468

 
664,131

 
696,257

 
659,160

Shares Excluded From Diluted Earnings Or Loss Per Share 
The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in thousands): 
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2016
 
2015
 
2016
 
2015
Employee stock awards
17,946

 
20,191

 
8,640

 
22,634

Convertible senior notes
17,309

 
17,309

 
0

 
17,309

Warrants
17,309

 
17,309

 
17,309

 
17,309

Commitments (Tables)
Schedule Of Future Minimum Lease Payments Under Non-Cancelable Operating And Capital Leases
As of October 31, 2016, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in thousands):
 
 
Capital
Leases
 
Operating
Leases
 
Financing Obligation -Leased Facility(1)
Fiscal Period:
 
 
 
 
 
Remaining three months of fiscal 2017
$
26,431

 
$
109,755

 
$
5,322

Fiscal 2018
122,649

 
429,673

 
21,437

Fiscal 2019
115,791

 
382,264

 
21,881

Fiscal 2020
201,576

 
303,873

 
22,325

Fiscal 2021
35

 
264,798

 
22,770

Thereafter
0

 
1,445,905

 
233,927

Total minimum lease payments
466,482

 
$
2,936,268

 
$
327,662

Less: amount representing interest
(41,368
)
 

 

Present value of capital lease obligations
$
425,114

 

 

______________ 
(1) Total Financing Obligation -Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest noted in Note 3 “Property and Equipment.” As of October 31, 2016, $220.8 million of the total obligation noted above was recorded to Financing obligation - leased facility, of which the current portion is included in "Accounts payable, accrued expenses and other liabilities" and the non-current portion is included in “Other noncurrent liabilities” on the consolidated balance sheets.
Summary of Business and Significant Accounting Policies - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
segment
Oct. 31, 2015
Oct. 31, 2016
Accounts Receivable
Customer Concentration Risk
Jan. 31, 2016
Accounts Receivable
Customer Concentration Risk
Oct. 31, 2016
Accounts Receivable
Customer Concentration Risk
customer
Jan. 31, 2016
Accounts Receivable
Customer Concentration Risk
customer
Oct. 31, 2016
Revenue
Customer Concentration Risk
customer
Oct. 31, 2015
Revenue
Customer Concentration Risk
customer
Oct. 31, 2016
Revenue
Customer Concentration Risk
customer
Oct. 31, 2015
Revenue
Customer Concentration Risk
customer
Oct. 31, 2016
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2015
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2016
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2015
Revenue
Geographic Concentration Risk
Americas
Oct. 31, 2016
Revenue
Geographic Concentration Risk
All Other Countries
country
Oct. 31, 2015
Revenue
Geographic Concentration Risk
All Other Countries
country
Oct. 31, 2016
Revenue
Geographic Concentration Risk
All Other Countries
country
Oct. 31, 2015
Revenue
Geographic Concentration Risk
All Other Countries
country
Oct. 31, 2016
Assets
Geographic Concentration Risk
Outside Americas
Jan. 31, 2016
Assets
Geographic Concentration Risk
Outside Americas
Oct. 31, 2016
Minimum
Oct. 31, 2016
Maximum
Concentration Risk [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of operating segments
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers exceeding concentration of accounts receivable threshold, number
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers exceeding concentration of total revenue threshold, number
 
 
 
 
 
 
 
 
0 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
Countries exceeding concentration of total revenue threshold, number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
0 
0 
 
 
 
 
Concentration risk percentage
 
 
 
 
5.00% 
5.00% 
 
 
5.00% 
5.00% 
5.00% 
5.00% 
96.00% 
95.00% 
96.00% 
95.00% 
 
 
 
 
9.00% 
11.00% 
 
 
Deferred and amortized commission period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
36 months 
Percentage of tax benefit likely to be realized upon settlement (greater than 50%)
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of long-lived assets
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Business and Significant Accounting Policies - Revenues by Geographical Region (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
$ 2,144,775 
$ 1,711,967 
$ 6,097,996 
$ 4,857,818 
Reportable Geographical Components [Member] |
Americas
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
1,598,344 
1,258,148 
4,506,774 
3,575,441 
Reportable Geographical Components [Member] |
Europe
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
337,497 
302,704 
1,012,671 
848,413 
Reportable Geographical Components [Member] |
Asia Pacific
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Total revenues
$ 208,934 
$ 151,115 
$ 578,551 
$ 433,964 
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail)
9 Months Ended
Oct. 31, 2016
Furniture and fixtures
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Building, Leased Facility [Member]
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
27 years 
Building and structural components
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
32 years 
Building improvements
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Minimum |
Computers, equipment and software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
3 years 
Minimum |
Internal-use software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
3 years 
Maximum |
Computers, equipment and software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
9 years 
Maximum |
Leasehold improvements
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Maximum |
Internal-use software
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Summary of Business and Significant Accounting Policies - Accounting for Stock-Based Expense (Detail)
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Vesting period
 
 
4 years 
 
Period for recognition
 
 
2 years 8 months 12 days 
 
Offering period
 
 
12 months 
 
Expected dividend yield
 
 
0.00% 
 
Number of purchase periods
 
 
2 
 
Stock Options
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Volatility
32.30% 
35.00% 
 
 
Estimated life
3 years 6 months 
3 years 7 months 
3 years 6 months 
3 years 7 months 
Risk-free interest rate, minimum
0.91% 
1.21% 
0.89% 
1.13% 
Risk-free interest rate, maximum
1.07% 
1.27% 
1.07% 
1.42% 
Weighted-average fair value per share of grants (in dollars per share)
$ 18.75 
$ 19.72 
$ 18.75 
$ 19.79 
Minimum |
Stock Options
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Volatility
 
 
32.10% 
35.00% 
Maximum |
Stock Options
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Volatility
 
 
32.30% 
37.00% 
Summary of Business and Significant Accounting Policies - New Accounting Pronouncements Adopted (Details) (USD $)
9 Months Ended
Oct. 31, 2016
0.25% Convertible Senior Notes due April 1, 2018
Notes Payable to Banks
Jan. 31, 2016
0.25% Convertible Senior Notes due April 1, 2018
Notes Payable to Banks
Jan. 31, 2016
Accounting Standards Update 2015-03 [Member]
Other Noncurrent Assets [Member]
Jan. 31, 2016
Accounting Standards Update 2015-03 [Member]
Convertible 0.25% Senior Notes, Net and Loan Assumed on 50 Fremont [Member]
Oct. 31, 2016
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncement, Early Adoption, Effect [Member]
Jan. 31, 2016
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncement, Early Adoption, Effect [Member]
Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
Unamortized debt issuance costs
 
 
$ 7,900,000 
$ (7,900,000)
 
 
Contractual interest rate
0.25% 
0.25% 
 
 
 
 
Reduction of accumulated deficit balance
 
 
 
 
 
8,700,000 
Increase in deferred tax assets If no valuation allowance recorded
 
 
 
 
$ 614,500,000 
 
Investments - Schedule of Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 603,080 
$ 1,568,139 
Unrealized Gains
3,096 
2,480 
Unrealized Losses
(782)
(3,605)
Fair Value
605,394 
1,567,014 
Corporate notes and obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
308,381 
949,266 
Unrealized Gains
2,262 
1,398 
Unrealized Losses
(482)
(2,983)
Fair Value
310,161 
947,681 
U.S. treasury securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
52,692 
157,625 
Unrealized Gains
132 
375 
Unrealized Losses
(43)
(56)
Fair Value
52,781 
157,944 
Mortgage backed obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
77,723 
104,242 
Unrealized Gains
138 
106 
Unrealized Losses
(198)
(323)
Fair Value
77,663 
104,025 
Asset backed securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
111,806 
271,292 
Unrealized Gains
310 
186 
Unrealized Losses
(23)
(226)
Fair Value
112,093 
271,252 
Municipal securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
45,388 
44,934 
Unrealized Gains
235 
209 
Unrealized Losses
(33)
(6)
Fair Value
45,590 
45,137 
Foreign government obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
7,090 
18,014 
Unrealized Gains
19 
42 
Unrealized Losses
(3)
(5)
Fair Value
7,106 
18,051 
U.S. agency obligations
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
 
16,076 
Unrealized Gains
 
16 
Unrealized Losses
 
(6)
Fair Value
 
16,086 
Covered bonds
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
 
6,690 
Unrealized Gains
 
148 
Unrealized Losses
 
0 
Fair Value
 
$ 6,838 
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Short-term (due in one year or less)
$ 55,071 
$ 183,018 
Long-term (due after one year)
550,323 
1,383,996 
Fair Value of Marketable Securities
$ 605,394 
$ 1,567,014 
Investments - Schedule of Marketable Securities in Unrealized Loss Position (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
$ 156,364 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(764)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
6,680 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(18)
Marketable securities in an unrealized loss position, Fair Value
163,044 
Marketable securities in an unrealized loss position, Unrealized Losses
(782)
Corporate notes and obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
59,612 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(473)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
4,594 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(9)
Marketable securities in an unrealized loss position, Fair Value
64,206 
Marketable securities in an unrealized loss position, Unrealized Losses
(482)
U.S. treasury securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
20,294 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(43)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
20,294 
Marketable securities in an unrealized loss position, Unrealized Losses
(43)
Mortgage backed obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
40,964 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(195)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
224 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(3)
Marketable securities in an unrealized loss position, Fair Value
41,188 
Marketable securities in an unrealized loss position, Unrealized Losses
(198)
Asset backed securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
24,713 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(17)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
1,862 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
(6)
Marketable securities in an unrealized loss position, Fair Value
26,575 
Marketable securities in an unrealized loss position, Unrealized Losses
(23)
Municipal securities
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
6,689 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(33)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
6,689 
Marketable securities in an unrealized loss position, Unrealized Losses
(33)
Foreign government obligations
 
Schedule of Available-for-sale Securities [Line Items]
 
Marketable securities in an unrealized loss position for less than 12 months, Fair Value
4,092 
Marketable securities in an unrealized loss position for less than 12 months, Unrealized Losses
(3)
Marketable securities in an unrealized loss position for more than 12 months, Fair Value
0 
Marketable securities in an unrealized loss position for more than 12 months, Unrealized Losses
0 
Marketable securities in an unrealized loss position, Fair Value
4,092 
Marketable securities in an unrealized loss position, Unrealized Losses
$ (3)
Investments - Additional Information (Detail) (USD $)
9 Months Ended
Oct. 31, 2016
Oct. 31, 2016
Strategic Investments
investment
Jan. 31, 2016
Strategic Investments
investment
Oct. 31, 2016
Strategic Investments
Significant Unobservable Inputs (Level 3)
Estimate of Fair Value Measurement [Member]
Cost Approach Valuation Technique [Member]
Jan. 31, 2016
Strategic Investments
Significant Unobservable Inputs (Level 3)
Estimate of Fair Value Measurement [Member]
Cost Approach Valuation Technique [Member]
Oct. 31, 2016
Strategic Investments
Equity Securities
Jan. 31, 2016
Strategic Investments
Equity Securities
Investment Holdings [Line Items]
 
 
 
 
 
 
 
Unrealized losses on fixed rate investments, upper range value
$ 143,000 
 
 
 
 
 
 
Number of investments in marketable equity securities
 
5 
6 
 
 
 
 
Fair value of marketable equity securities
 
 
 
 
 
42,400,000 
16,200,000 
Unrealized gain on marketable equity securities
 
26,500,000 
8,500,000 
 
 
 
 
non-marketable debt and equity securities
 
513,500,000 
504,500,000 
 
 
 
 
non-marketable debt and equity securities, estimated fair value
 
 
 
752,100,000 
714,100,000 
 
 
non-marketable debt and equity securities, unrealized gains
 
$ 238,600,000 
$ 209,600,000 
 
 
 
 
Investments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Cash
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
$ 828,800 
$ 532,600 
Recurring measurement
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
6,838 
Total Assets
923,718 
2,197,479 
Total Liabilities
4,838 
14,025 
Recurring measurement |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
0 
Total Assets
206,156 
216,107 
Total Liabilities
0 
0 
Recurring measurement |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
6,838 
Total Assets
717,562 
1,981,372 
Total Liabilities
4,838 
14,025 
Recurring measurement |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
0 
Total Assets
0 
0 
Total Liabilities
0 
0 
Recurring measurement |
Prepaid expenses and other current assets
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
1,372 
4,731 
Recurring measurement |
Prepaid expenses and other current assets |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Prepaid expenses and other current assets |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
1,372 
4,731 
Recurring measurement |
Prepaid expenses and other current assets |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
4,838 
14,025 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
4,838 
14,025 
Recurring measurement |
Accounts payable, accrued expenses and other liabilities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign currency derivative contracts
0 
0 
Recurring measurement |
Time deposits |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
110,796 
236,798 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
110,796 
236,798 
Recurring measurement |
Time deposits |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
206,156 
216,107 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
206,156 
216,107 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Money market mutual funds |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Recurring measurement |
Commercial paper |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
159,230 
Recurring measurement |
Commercial paper |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
0 
Recurring measurement |
Commercial paper |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
159,230 
Recurring measurement |
Commercial paper |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
0 
Recurring measurement |
Agency and sovereign paper |
Cash and cash equivalents
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
13,599 
Recurring measurement |
Agency and sovereign paper |
Cash and cash equivalents |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
0 
Recurring measurement |
Agency and sovereign paper |
Cash and cash equivalents |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
13,599 
Recurring measurement |
Agency and sovereign paper |
Cash and cash equivalents |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
 
0 
Recurring measurement |
Corporate notes and obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
310,161 
947,681 
Recurring measurement |
Corporate notes and obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Corporate notes and obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
310,161 
947,681 
Recurring measurement |
Corporate notes and obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. treasury securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
52,781 
157,944 
Recurring measurement |
U.S. treasury securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. treasury securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
52,781 
157,944 
Recurring measurement |
U.S. treasury securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Mortgage backed obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
77,663 
104,025 
Recurring measurement |
Mortgage backed obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Mortgage backed obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
77,663 
104,025 
Recurring measurement |
Mortgage backed obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Asset backed securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
112,093 
271,252 
Recurring measurement |
Asset backed securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Asset backed securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
112,093 
271,252 
Recurring measurement |
Asset backed securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Municipal securities
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
45,590 
45,137 
Recurring measurement |
Municipal securities |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Municipal securities |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
45,590 
45,137 
Recurring measurement |
Municipal securities |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Foreign government obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
7,106 
18,051 
Recurring measurement |
Foreign government obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
Foreign government obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
7,106 
18,051 
Recurring measurement |
Foreign government obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
0 
0 
Recurring measurement |
U.S. agency obligations
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
16,086 
Recurring measurement |
U.S. agency obligations |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
0 
Recurring measurement |
U.S. agency obligations |
Significant Other Observable Inputs (Level 2)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
16,086 
Recurring measurement |
U.S. agency obligations |
Significant Unobservable Inputs (Level 3)
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Marketable securities
 
$ 0 
Investments - Schedule of Outstanding Foreign Currency Derivative Contracts Related Primarily to Intercompany Receivables and Payables (Detail) (Derivatives not designated as hedging instruments, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Derivative [Line Items]
 
 
Fair value of foreign currency derivative contracts
$ (3,466)
$ (9,294)
Foreign currency derivative contracts
 
 
Derivative [Line Items]
 
 
Notional amount of foreign currency derivative contracts
$ 1,217,458 
$ 1,274,515 
Investments - Fair Value of Outstanding Derivative Instruments (Detail) (Derivatives not designated as hedging instruments, Foreign currency derivative contracts, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Prepaid expenses and other current assets
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
$ 1,372 
$ 4,731 
Accounts payable, accrued expenses and other liabilities
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
$ 4,838 
$ 14,025 
Investments - Effect of Derivative Instruments Not Designated as Hedging Instruments on Condensed Consolidated Statements of Operations (Detail) (Derivatives not designated as hedging instruments, Foreign currency derivative contracts, Other income (expense), USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Derivatives not designated as hedging instruments |
Foreign currency derivative contracts |
Other income (expense)
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Income (loss) on Derivative Instruments Recognized in Other income (expense)
$ (39,624)
$ (2,888)
$ (86,528)
$ 9,773 
Investments - Schedule of Components of Investment Income (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
 
 
Interest income
$ 3,642 
$ 3,700 
$ 17,961 
$ 9,919 
Realized gains
210 
257 
7,771 
3,197 
Realized losses
(143)
(450)
(1,985)
(1,765)
Total investment income
$ 3,709 
$ 3,507 
$ 23,747 
$ 11,351 
Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 2,881,656 
$ 2,635,665 
Less accumulated depreciation and amortization
(1,124,983)
(919,837)
Property and equipment, net
1,756,673 
1,715,828 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
183,888 
183,888 
Buildings and building improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
619,419 
614,081 
Computers, equipment and software
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
1,390,751 
1,281,766 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
101,558 
82,242 
Leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 586,040 
$ 473,688 
Property and Equipment - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Jan. 31, 2016
Dec. 31, 2013
sqft
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Depreciation and amortization expense
$ 83,500,000 
$ 77,400,000 
$ 239,200,000 
$ 226,600,000 
 
 
Fixed assets acquired under capital lease agreements
729,300,000 
 
729,300,000 
 
747,100,000 
 
Net rentable area (in square feet)
 
 
 
 
 
445,000 
Property and equipment, gross
2,881,656,000 
 
2,881,656,000 
 
2,635,665,000 
 
Financing obligation - leased facility, current
19,492,000 
 
19,492,000 
 
15,400,000 
 
Financing obligation - leased facility
201,300,000 
 
201,300,000 
 
196,711,000 
 
Expected financing obligation
327,662,000 
 
327,662,000 
 
 
 
Impairment of long-lived assets
0 
0 
0 
0 
 
 
Computers, equipment and software
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Accumulated depreciation and amortization
364,800,000 
 
364,800,000 
 
310,300,000 
 
Property and equipment, gross
1,390,751,000 
 
1,390,751,000 
 
1,281,766,000 
 
Buildings and building improvements
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Property and equipment, gross
619,419,000 
 
619,419,000 
 
614,081,000 
 
Construction costs capitalized
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Property and equipment, gross
$ 178,800,000 
 
$ 178,800,000 
 
$ 174,600,000 
 
Business Combinations (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Jul. 31, 2015
Quip
Jan. 31, 2016
SteelBrick, Inc.
Sep. 30, 2016
BeyondCore
Oct. 31, 2016
BeyondCore
Aug. 31, 2016
Quip
Oct. 31, 2016
Quip
Jul. 31, 2016
Demandware
Oct. 31, 2016
Demandware
Oct. 31, 2016
Demandware
Jul. 31, 2016
Demandware
General and administrative
Oct. 31, 2016
Demandware
Customer relationships
Feb. 29, 2016
SteelBrick, Inc.
Apr. 30, 2016
MetaMind
Oct. 31, 2016
MetaMind
Apr. 30, 2016
MetaMind
CEO and Chairman of MetaMind
Oct. 31, 2016
Other business combinations
company
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 15,500,000 
 
 
 
 
 
 
Consideration transferred
 
 
 
 
 
 
106,598,000 
 
412,020,000 
 
2,900,000,000 
 
 
 
 
314,785,000 
 
 
6,000,000 
 
Liabilities incurred
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
Percentage of acquired platform delivered on parent company platform
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
Share conversion ratio
 
 
 
 
 
 
0.0464 
 
0.5514 
 
0.9545 
 
 
 
 
0.08 
 
 
 
 
Decrease to customer contract asset
 
 
 
 
 
 
 
 
 
 
 
393,900,000 
 
 
 
 
 
 
 
 
Decrease to customer contract liability
 
 
 
 
 
 
 
 
 
 
 
393,900,000 
 
 
 
 
 
 
 
 
Decrease to intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
168,800,000 
 
 
 
 
 
Decrease to deferred tax liabilities
 
 
 
 
 
 
 
 
 
 
 
61,200,000 
 
 
 
 
 
 
 
 
Increase to goodwill adjustment
 
 
 
 
 
 
 
(16,879,000)
 
 
 
 
100,383,000 
 
 
 
 
 
 
 
Investment owned
 
 
 
 
1,000,000 
13,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of equity interest in acquiree
 
 
 
 
 
 
 
 
1,833,000 
 
 
 
 
 
 
23,726,000 
 
 
 
 
Equity interest in acquiree
 
 
 
 
0.30% 
 
 
 
 
 
 
 
 
 
 
6.00% 
 
 
 
 
Remeasurement gain
 
 
 
 
 
 
 
 
800,000 
 
 
 
 
 
 
9,800,000 
 
 
 
 
Equity interest issued or issuable
 
 
 
 
 
 
8,600,000 
 
68,000,000 
 
135,200,000 
 
 
 
 
39,600,000 
5,500,000 
 
 
 
Fair value of stock options and restricted stock awards assumed
 
 
 
 
 
 
4,100,000 
 
22,300,000 
 
9,344,000 
 
 
 
 
10,989,000 
500,000 
 
 
 
Ownership percentage (greater than 10%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
Number of businesses acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6 
Business combinations, net of cash acquired
32,117,000 
27,759,000 
2,832,110,000 
58,680,000 
 
 
 
 
 
 
 
 
 
 
 
 
32,800,000 
 
 
96,700,000 
Goodwill acquired
 
 
 
 
 
 
 
$ 90,794,000 
 
$ 357,610,000 
 
 
$ 1,884,886,000 
 
 
 
$ 31,200,000 
$ 31,242,000 
 
$ 100,389,000 
Business Combinations (Consideration Transferred) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
1 Months Ended
Feb. 29, 2016
SteelBrick, Inc.
Sep. 30, 2016
BeyondCore
Jul. 31, 2016
Demandware
Aug. 31, 2016
Quip
Feb. 29, 2016
Common Stock
SteelBrick, Inc.
Sep. 30, 2016
Common Stock
BeyondCore
Aug. 31, 2016
Common Stock
Quip
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Cash
$ 1,698 
$ 21,053 
$ 2,920,336 
$ 2,711 
 
 
 
Common stock
278,372 
81,484 
 
385,131 
 
 
 
Common stock (in shares)
 
 
 
 
4,288,447 
1,073,432 
4,796,152 
Fair value of stock options and restricted stock awards assumed
10,989 
4,100 
9,344 
22,300 
 
 
 
Fair value of pre-existing relationship
23,726 
 
 
1,833 
 
 
 
Total
$ 314,785 
$ 106,598 
$ 2,900,000 
$ 412,020 
 
 
 
Business Combinations (Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Aug. 31, 2016
Quip
Sep. 30, 2016
BeyondCore
Feb. 29, 2016
SteelBrick, Inc.
Oct. 31, 2016
Demandware
Business Acquisition [Line Items]
 
 
 
 
 
 
Cash and cash equivalents
 
 
$ 27,985 
$ 2,046 
$ 59,296 
$ 139,259 
Other current and noncurrent tangible assets
 
 
556 
462 
 
 
Marketable securities
 
 
 
 
 
37,230 
Accounts receivable
 
 
 
 
 
56,982 
Other current assets
 
 
 
 
 
13,545 
Other current and noncurrent tangible assets
 
 
 
 
3,012 
 
Customer contract asset, noncurrent
 
 
 
 
6,954 
327,830 
Intangible assets
 
 
31,200 
15,600 
49,160 
633,277 
Goodwill
6,616,999 
3,849,937 
357,610 
90,794 
217,986 
1,985,269 
Property and equipment
 
 
 
 
 
29,463 
Other noncurrent assets
 
 
 
 
 
4,579 
Accounts payable, accrued expenses and other liabilities
 
 
 
 
 
(51,870)
Deferred revenue, current and noncurrent
 
 
 
(818)
(8,479)
(22,647)
Other liabilities, noncurrent
 
 
 
 
 
(12,935)
Other liabilities, current and noncurrent
 
 
(2,491)
(923)
(2,665)
 
Deferred tax liability
 
 
(2,840)
(563)
(10,479)
(210,302)
Net assets acquired
 
 
$ 412,020 
$ 106,598 
$ 314,785 
$ 2,929,680 
Business Combinations (Intangible Assets Acquired From Business Combinations) (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Sep. 30, 2016
BeyondCore
Aug. 31, 2016
BeyondCore
Sep. 30, 2016
BeyondCore
Developed technology
Aug. 31, 2016
BeyondCore
Developed technology
Sep. 30, 2016
BeyondCore
Customer relationships
Aug. 31, 2016
BeyondCore
Customer relationships
Aug. 31, 2016
BeyondCore
Other purchased intangible assets
Feb. 29, 2016
SteelBrick, Inc.
Feb. 29, 2016
SteelBrick, Inc.
Developed technology
Feb. 29, 2016
SteelBrick, Inc.
Customer relationships
Feb. 29, 2016
SteelBrick, Inc.
Other purchased intangible assets
Jul. 31, 2016
Demandware
Jul. 31, 2016
Demandware
Developed technology
Jul. 31, 2016
Demandware
Developed technology
Minimum
Jul. 31, 2016
Demandware
Developed technology
Maximum
Jul. 31, 2016
Demandware
Customer relationships
Jul. 31, 2016
Demandware
Customer relationships
Minimum
Jul. 31, 2016
Demandware
Customer relationships
Maximum
Jul. 31, 2016
Demandware
Other purchased intangible assets
Jul. 31, 2016
Demandware
Other purchased intangible assets
Minimum
Jul. 31, 2016
Demandware
Other purchased intangible assets
Maximum
Jul. 31, 2016
Demandware
Favorable Leases
Minimum
Jul. 31, 2016
Demandware
Favorable Leases
Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value
$ 15,600 
$ 31,200 
$ 14,900 
$ 18,590 
$ 700 
$ 12,460 
$ 150 
$ 49,160 
$ 30,700 
$ 17,110 
$ 1,350 
$ 633,277 
$ 242,550 
 
 
$ 384,590 
 
 
$ 6,137 
 
 
 
 
Useful Life
 
 
6 years 
5 years 
2 years 
10 years 
3 years 
 
4 years 
7 years 
1 year 
 
 
2 years 
5 years 
 
3 years 
10 years 
 
3 years 
10 years 
1 year 
10 years 
Business Combinations (Schedules of Revenue and Earnings Included in Statement of Operations and Pro Forma Information) (Details) (Demandware, USD $)
In Thousands, unless otherwise specified
4 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2016
Oct. 31, 2015
Demandware
 
 
 
Business Acquisition [Line Items]
 
 
 
Total revenues
$ 57,878 
 
 
Pretax loss
(81,763)
 
 
Net loss
(82,061)
 
 
Total revenues
 
6,176,166 
4,958,491 
Pretax loss
 
(100,817)
(200,844)
Net loss
 
$ (138,714)
$ (37,097)
Debt - Summary of Convertible Senior Notes (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Mar. 31, 2013
Debt Conversion [Line Items]
 
 
 
Convertible 0.25% senior notes, net
$ 1,109,236 
$ 1,088,097 
 
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
 
 
Debt Conversion [Line Items]
 
 
 
Par Value Outstanding
1,150,000 
 
 
Equity Component Recorded at Issuance
122,421 
 
 
Convertible 0.25% senior notes, net
$ 1,109,236 
$ 1,088,097 
 
Contractual interest rate
0.25% 
 
0.25% 
Debt - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Jul. 31, 2016
Revolving Credit Facility
Jul. 31, 2016
Revolving Credit Facility
Minimum
Jul. 31, 2016
Revolving Credit Facility
Minimum
Base Rate
Jul. 31, 2016
Revolving Credit Facility
Minimum
Adjusted LIBOR
Jul. 31, 2016
Revolving Credit Facility
Maximum
Jul. 31, 2016
Revolving Credit Facility
Maximum
Base Rate
Jul. 31, 2016
Revolving Credit Facility
Maximum
Adjusted LIBOR
Oct. 31, 2016
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Mar. 31, 2013
Convertible Debt
0.25% Convertible Senior Notes due April 1, 2018
Oct. 31, 2016
Notes Payable to Banks
0.25% Convertible Senior Notes due April 1, 2018
Jan. 31, 2016
Notes Payable to Banks
0.25% Convertible Senior Notes due April 1, 2018
Oct. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Minimum
Base Rate
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Minimum
Adjusted LIBOR
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Maximum
Base Rate
Jul. 31, 2016
Notes Payable to Banks
Term Loan Credit Agreement
Maximum
Adjusted LIBOR
Oct. 31, 2016
Mortgage Loan
50 Fremont Street
Oct. 31, 2015
Mortgage Loan
50 Fremont Street
Oct. 31, 2016
Mortgage Loan
50 Fremont Street
Oct. 31, 2015
Mortgage Loan
50 Fremont Street
Nov. 21, 2016
Subsequent Event [Member]
Revolving Credit Facility
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,150,000,000 
 
 
$ 500,000,000.0 
$ 500,000,000.0 
 
 
 
 
 
 
 
 
 
Contractual interest rate
 
 
 
 
 
 
 
 
 
 
 
0.25% 
0.25% 
0.25% 
0.25% 
 
 
 
 
 
 
3.75% 
 
3.75% 
 
 
Consecutive trading days threshold
 
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consecutive trading days threshold, total
 
 
 
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock price trigger
 
 
 
 
 
 
 
 
 
 
 
130.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes price trigger
 
 
 
 
 
 
 
 
 
 
 
98.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price upon fundamental change
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of Company's senior notes
 
 
 
 
 
 
 
 
 
 
 
1,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value debt basis amount
 
 
 
 
 
 
 
 
 
 
 
100 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing prices of Company's common stock (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
$ 75.16 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If-converted value in excess of principal
 
 
 
 
 
 
 
 
 
 
 
150,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
0.00% 
1.00% 
 
0.75% 
1.75% 
 
 
 
 
 
 
0.00% 
1.00% 
0.75% 
1.75% 
 
 
 
 
 
Weighted average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.80% 
 
 
 
 
 
 
 
 
 
 
Accrued interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,800,000 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
1,000,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitment fee percentage
 
 
 
 
 
0.125% 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt default interest rate above applicable interest rate for overdue principal
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
Debt default interest rate above applicable interest rate for base rate loans and other
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
Amount outstanding
0 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Draw on credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
750,000,000 
Loan assumed on 50 Fremont
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
Debt instrument, interest expense
$ 12,853,000 
$ 10,018,000 
$ 34,263,000 
$ 30,430,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,800,000 
$ 1,900,000 
$ 5,600,000 
$ 5,400,000 
 
Debt - Schedule of Conversion of Senior Notes to Common Stock (Detail) (Convertible Debt, 0.25% Convertible Senior Notes due April 1, 2018, USD $)
9 Months Ended
Oct. 31, 2016
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
Debt Instrument [Line Items]
 
Conversion Rate per $1,000 Par Value
0.0150512 
Initial Conversion Price per Share
$ 66.44 
Debt - Schedule of Convertible Senior Notes (Detail) (Convertible Debt, 0.25% Convertible Senior Notes due April 1, 2018, USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Mar. 31, 2013
Convertible Debt |
0.25% Convertible Senior Notes due April 1, 2018
 
 
 
Debt Instrument [Line Items]
 
 
 
Principal
$ 1,150,000 
$ 1,150,000 
 
Less: debt discount, net
(36,260)
(54,941)
 
Less: debt issuance cost
(4,504)
(6,962)
 
Net carrying amount
$ 1,109,236 
$ 1,088,097 
 
Contractual interest rate
0.25% 
 
0.25% 
Effective interest rates of Senior Notes
2.53% 
 
 
Debt - Summary of Hedge Notes (Detail) (Convertible Debt, 0.25% Note Hedges, USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2016
Convertible Debt |
0.25% Note Hedges
 
Derivatives, Fair Value [Line Items]
 
Purchase
$ 153,800 
Shares (in shares)
17,308,880 
Debt - Components of Warrants (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2016
Class of Warrant or Right [Line Items]
 
Warrants (in shares)
17,308,880 
Convertible Debt |
0.25% Warrants
 
Class of Warrant or Right [Line Items]
 
Proceeds
$ 84,800 
Warrants (in shares)
17,308,880 
Strike Price (in dollars per share)
$ 90.40 
Debt - Schedule of Interest Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Debt Disclosure [Abstract]
 
 
 
 
Contractual interest expense
$ 5,207 
$ 2,843 
$ 11,398 
$ 9,036 
Amortization of debt issuance costs
1,342 
1,027 
4,071 
3,077 
Amortization of debt discount
6,304 
6,148 
18,794 
18,317 
Debt Instrument, Interest Expense, Total
$ 12,853 
$ 10,018 
$ 34,263 
$ 30,430 
Other Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Prepaid income taxes
$ 22,766 
$ 22,044 
Customer contract asset (1)
0 
1,423 
Other taxes receivable
25,829 
27,341 
Prepaid expenses and other current assets
232,998 
199,786 
Prepaid expenses and other current assets
$ 281,593 
$ 250,594 
Other Balance Sheet Accounts - Schedule of Capitalized Software Costs (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Capitalized software costs
$ 637,877 
$ 384,258 
Capitalized internal-use software development costs, net of accumulated amortization of $233,706 and $186,251, respectively
 
 
Property, Plant and Equipment [Line Items]
 
 
Capitalized software costs
137,989 
123,065 
Accumulated amortization
233,706 
186,251 
Acquired developed technology, net of accumulated amortization of $571,023 and $481,118, respectively
 
 
Property, Plant and Equipment [Line Items]
 
 
Capitalized software costs
499,888 
261,193 
Accumulated amortization
$ 571,023 
$ 481,118 
Other Balance Sheet Accounts - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Purchased intangible assets
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of acquired intangible assets
$ 29.3 
$ 20.1 
$ 69.6 
$ 60.8 
Acquired intellectual property
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of acquired intangible assets
1.6 
1.7 
4.9 
5.1 
Capitalized internal-use software development costs
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Capitalized software amortization expense
16.6 
12.9 
47.5 
36.4 
Capitalized stock based compensation
1.7 
1.3 
5.1 
4.4 
Acquired developed technology
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Capitalized software amortization expense
$ 38.4 
$ 22.1 
$ 89.9 
$ 66.5 
Other Balance Sheet Accounts - Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 1 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Oct. 31, 2016
Jan. 31, 2016
Oct. 31, 2016
SteelBrick
Apr. 30, 2016
MetaMind
Oct. 31, 2016
MetaMind
Oct. 31, 2016
Demandware
Oct. 31, 2016
Quip
Aug. 31, 2016
Quip
Oct. 31, 2016
BeyondCore
Sep. 30, 2016
BeyondCore
Oct. 31, 2016
Other business combinations
Goodwill [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 31, 2016
$ 6,616,999 
$ 3,849,937 
 
 
 
 
 
$ 357,610 
 
$ 90,794 
 
Goodwill acquired
 
 
217,986 
31,200 
31,242 
1,884,886 
357,610 
 
90,794 
 
100,389 
Adjustments of acquisition date fair values:
 
 
651 
 
 
100,383 
 
 
(16,879)
 
 
Balance as of October 31, 2016
$ 6,616,999 
$ 3,849,937 
 
 
 
$ 1,985,269 
 
$ 357,610 
 
$ 90,794 
 
Other Balance Sheet Accounts - Schedule of Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Finite-Lived Intangible Assets [Line Items]
 
 
Deferred income taxes, noncurrent, net
$ 22,095 
$ 15,986 
Long-term deposits
25,346 
19,469 
Customer contract asset, noncurrent (1)
308,484 
93 
Other
110,722 
66,217 
Other assets, net
1,100,436 
370,910 
Accounting Standards Update 2015-03 [Member] |
Other Noncurrent Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Unamortized debt issuance costs
 
7,900 
Purchased intangible assets, net of accumulated amortization of $281,846 and $212,248, respectively
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Purchase and acquired intangible assets
622,667 
258,580 
Accumulated amortization
281,846 
212,248 
Acquired intellectual property, net of accumulated amortization of $27,331 and $22,439, respectively
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Purchase and acquired intangible assets
11,122 
10,565 
Accumulated amortization
$ 27,331 
$ 22,439 
Other Balance Sheet Accounts - Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Accounts payable
$ 140,541 
$ 71,481 
Accrued compensation
558,945 
554,502 
Non-Cash ESPP Liability
74,570 
0 
Accrued other liabilities
498,774 
447,729 
Accrued income and other taxes payable
149,133 
205,781 
Accrued professional costs
38,331 
33,814 
Customer contract liability
0 
6,558 
Accrued rent
17,055 
14,071 
Financing obligation - leased facility, current
19,492 
15,400 
Accrued expenses and other current liabilities
$ 1,496,841 
$ 1,349,338 
Other Balance Sheet Accounts - Schedule of Other Non current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Jan. 31, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred income taxes and income taxes payable
$ 93,454 
$ 85,996 
Customer contract liability, noncurrent
0 
66 
Financing obligation - leased facility
201,300 
196,711 
Long-term lease liabilities and other
490,550 
550,292 
Other noncurrent liabilities
$ 785,287 
$ 833,065 
Stockholders' Equity - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended 0 Months Ended 39 Months Ended 90 Months Ended 12 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Jan. 31, 2006
Stock Options
Oct. 31, 2016
Stock Options
Jul. 31, 2013
Stock Options
Jan. 31, 2016
Performance restricted stock units
Oct. 31, 2016
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
Amount withheld on behalf of employees for future purchases
 
 
 
 
 
 
$ 96.3 
Contractual life of stock options (in years)
 
 
10 years 
7 years 
5 years 
 
 
Vesting period
4 years 
 
 
 
 
3 years 
 
Total intrinsic value of the options exercised during the period
176.2 
251.3 
 
 
 
 
 
Weighted-average remaining contractual life of vested and expected to vest options (in years)
4 years 9 months 18 days 
 
 
 
 
 
 
Options vested (in shares)
9,738,925 
 
 
 
 
 
 
Weighted average exercise price vested (in dollars per share)
$ 46.81 
 
 
 
 
 
 
Weighted-average contractual life of vested and expected to vest options (in years)
3 years 7 months 6 days 
 
 
 
 
 
 
Intrinsic value of vested options
$ 276.1 
 
 
 
 
 
 
Weighted-average exercise price (in dollars per share)
$ 0.001 
 
 
 
 
 
 
Restricted stock units, vesting period (in years)
4 years 
 
 
 
 
 
 
Weighted-average grant date fair value of the restricted stock units issued (in dollars per share)
$ 76.90 
$ 70.26 
 
 
 
 
 
Stockholders' Equity - Stock Activity (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2016
Shares available for grant
 
Shares Available for Grant, Balance (in shares)
46,879,908 
Shares Available for Grant, Options granted under all plans (in shares)
(3,048,797)
Shares Available for Grant, Exercised (in shares)
0 
Shares Available for Grant, Expired (in shares)
(75,193)
Shares Available for Grant, Canceled (in shares)
1,074,951 
Shares Available for Grant, Balance (in shares)
42,740,927 
Outstanding Stock Options
 
Outstanding Stock Options, Balance (in shares)
26,258,798 
Outstanding Stock Options (in shares)
3,048,797 
Outstanding Stock Options, Exercised (in shares)
(4,310,671)
Outstanding Stock Options, Plan shares expired (in shares)
   
Outstanding Stock Options, Canceled (in shares)
(1,074,951)
Outstanding Stock Options, Balance (in shares)
23,921,973 
Outstanding Stock Options, Vested or expected to vest (in shares)
22,290,560 
Outstanding Stock Options, Exercisable (in shares)
9,738,925 
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Balance (in dollars per share)
$ 56.26 
Weighted- Average Exercise Price, Options (in dollars per share)
$ 43.26 
Weighted- Average Exercise Price, Exercised (in dollars per share)
$ 36.84 
Weighted- Average Exercise Price, Canceled (in dollars per share)
$ 65.99 
Weighted- Average Exercise Price, Expired (in dollars per share)
   
Weighted- Average Exercise Price, Balance (in dollars per share)
$ 57.67 
Weighted- Average Exercise Price, Vested or expected to vest (in dollars per share)
$ 56.96 
Weighted- Average Exercise Price, Exercisable (in dollars per share)
$ 46.81 
Aggregate Intrinsic Value
 
Weighted- Average Exercise Price, Balance
$ 452,870 
Weighted- Average Exercise Price, Vested or expected to vest
435,630 
Weighted- Average Exercise Price, Exercisable
$ 276,132 
Restricted stock units and awards
 
Shares available for grant
 
Shares Available for Grant, Restricted stock activity (in shares)
(7,894,898)
Outstanding Stock Options
 
Outstanding Stock Options (in shares)
   
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
   
Stock grants to board and advisory board members
 
Shares available for grant
 
Shares Available for Grant, Stock grants to board and advisory board members (in shares)
(151,665)
Outstanding Stock Options
 
Outstanding Stock Options (in shares)
   
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
   
2013 Equity Incentive Plan
 
Shares available for grant
 
Shares Available for Grant, Increase in shares authorized (in shares)
185,247 
Shares Available for Grant, Balance (in shares)
41,903,116 
Outstanding Stock Options
 
Outstanding Stock Options, Increase in shares authorized (in shares)
   
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
   
2014 Inducement Plan
 
Shares available for grant
 
Shares Available for Grant, Increase in shares authorized (in shares)
2,280,899 
Shares Available for Grant, Balance (in shares)
755,404 
Outstanding Stock Options
 
Outstanding Stock Options, Increase in shares authorized (in shares)
   
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
   
Acquired equity plans
 
Shares available for grant
 
Shares Available for Grant, Increase in shares authorized (in shares)
3,490,475 
Shares Available for Grant, Balance (in shares)
82,407 
Outstanding Stock Options
 
Outstanding Stock Options, Increase in shares authorized (in shares)
   
Options Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Options (in dollars per share)
   
Stockholders' Equity - Stock Options Outstanding (Detail) (USD $)
9 Months Ended
Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Options, Number Outstanding (in shares)
23,921,973 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
4 years 9 months 18 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 57.67 
Options Exercisable, Number of Shares (in shares)
9,738,925 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 46.81 
$0.86 to $39.09
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 0.86 
Range of Exercise Prices, Maximum (in dollars per share)
$ 39.09 
Options, Number Outstanding (in shares)
4,967,743 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
3 years 3 months 18 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 27.75 
Options Exercisable, Number of Shares (in shares)
3,787,491 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 32.10 
$40.19 to $52.28
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 40.19 
Range of Exercise Prices, Maximum (in dollars per share)
$ 52.28 
Options, Number Outstanding (in shares)
367,386 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
3 years 7 months 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 44.03 
Options Exercisable, Number of Shares (in shares)
238,650 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 43.74 
$52.30
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 52.30 
Range of Exercise Prices, Maximum (in dollars per share)
$ 52.30 
Options, Number Outstanding (in shares)
3,511,561 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
4 years 1 month 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 52.30 
Options Exercisable, Number of Shares (in shares)
2,402,677 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 52.30 
$53.60 to $58.86
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 53.60 
Range of Exercise Prices, Maximum (in dollars per share)
$ 58.86 
Options, Number Outstanding (in shares)
1,060,744 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
4 years 8 months 12 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 55.56 
Options Exercisable, Number of Shares (in shares)
406,859 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 55.79 
$59.34
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 59.34 
Range of Exercise Prices, Maximum (in dollars per share)
$ 59.34 
Options, Number Outstanding (in shares)
5,779,049 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
5 years 1 month 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 59.34 
Options Exercisable, Number of Shares (in shares)
2,565,609 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 59.34 
$59.37 to $80.62
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 59.37 
Range of Exercise Prices, Maximum (in dollars per share)
$ 80.62 
Options, Number Outstanding (in shares)
2,729,211 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
6 years 1 month 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 71.03 
Options Exercisable, Number of Shares (in shares)
337,639 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 68.78 
$80.99 to $82.55
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Range of Exercise Prices, Minimum (in dollars per share)
$ 80.99 
Range of Exercise Prices, Maximum (in dollars per share)
$ 82.55 
Options, Number Outstanding (in shares)
5,506,279 
Weighted- Average Remaining Contractual Life (Years), Options Outstanding
6 years 1 month 6 days 
Weighted- Average Exercise Price, Options Outstanding (in dollars per share)
$ 81.02 
Options Exercisable, Number of Shares (in shares)
0 
Options Exercisable, Weighted- Average Exercise Price (in dollars per share)
$ 0.00 
Stockholders' Equity - Schedule of Restricted Stock Activity (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Oct. 31, 2016
Restricted Stock Outstanding
 
Ending Balance (in shares)
21,333,950 
Restricted Stock Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Restricted stock units and awards
 
Restricted Stock Outstanding
 
Beginning Balance (in shares)
21,294,585 
Granted, Outstanding (in shares)
6,890,113 
Canceled, Outstanding (in shares)
(1,539,907)
Vested and converted to shares, Outstanding (in shares)
(5,310,841)
Ending Balance (in shares)
21,333,950 
Expected to vest, Outstanding (in shares)
18,310,081 
Restricted Stock Outstanding Weighted-Average Exercise Price
 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Granted (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Canceled (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Vested and converted to shares (in dollars per share)
$ 0.001 
Weighted- Average Exercise Price, Restricted Stock Outstanding, Balance (in dollars per share)
$ 0.001 
Restricted Stock Outstanding Aggregate Intrinsic Value
 
Aggregate Intrinsic Value, Ending Balance
$ 1,603,460 
Aggregate Intrinsic Value, Expected to vest
$ 1,376,186 
Stockholders' Equity - Shares of Common Stock Available for Future Issuance under Stock Option Plans (Detail)
Oct. 31, 2016
Jan. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Options outstanding (in shares)
23,921,973 
26,258,798 
Restricted stock awards and units outstanding (in shares)
21,333,950 
 
Stock available for future grant (in shares)
42,740,927 
46,879,908 
Convertible senior notes (in shares)
17,308,880 
 
Warrants (in shares)
17,308,880 
 
Total shares available for future grant (in shares)
127,904,207 
 
2013 Equity Incentive Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
41,903,116 
 
2014 Inducement Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
755,404 
 
Amended and Restated 2004 Employee Stock Purchase Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
5,289,597 
 
Acquired equity plans
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Stock available for future grant (in shares)
82,407 
 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
 
Provision for income taxes
$ 24,723,000 1
$ 68,548,000 1
$ (182,220,000)1
$ 90,339,000 1
Pretax loss
(12,586,000)
43,391,000 
48,852,000 
68,422,000 
Effective tax rate
 
 
(373.00%)
132.00% 
Discrete tax benefit recorded from partial release of the valuation allowance
 
 
205,600,000 
 
Income tax benefit recognized from stock compensation expense
 
 
161,400,000 
130,800,000 
Reasonably possible decrease of unrecognized tax benefits
$ 8,300,000 
 
$ 8,300,000 
 
Earnings Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Earnings Per Share [Abstract]
 
 
 
 
Net income (loss)
$ (37,309)
$ (25,157)
$ 231,072 
$ (21,917)
Weighted-average shares outstanding for basic earnings (loss) per share (in shares)
690,468 
664,131 
683,075 
659,160 
Convertible senior notes (in shares)
0 
0 
1,994 
0 
Employee stock awards (in shares)
0 
0 
11,188 
0 
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share (in shares)
690,468 
664,131 
696,257 
659,160 
Earnings Per Share - Shares Excluded from Diluted Earnings or Loss Per Share (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2016
Oct. 31, 2015
Oct. 31, 2016
Oct. 31, 2015
Employee stock awards
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
17,946 
20,191 
8,640 
22,634 
Convertible senior notes
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
17,309 
17,309 
0 
17,309 
Warrants
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Anti-dilutive securities excluded
17,309 
17,309 
17,309 
17,309 
Commitments - Additional Information (Detail) (USD $)
1 Months Ended
Apr. 30, 2016
Oct. 31, 2016
Jan. 31, 2016
Other Commitments [Line Items]
 
 
 
Financing obligation - leased facility
 
$ 201,300,000 
$ 196,711,000 
Total operating lease commitment balance
 
2,900,000,000 
 
Purchase commitment term
4 years 
 
 
Purchase commitment, remainder of 2017
 
35,000,000 
 
Purchase commitment, 2018
 
96,000,000 
 
Purchase commitment, 2019
 
108,000,000 
 
Purchase commitment, 2020
 
126,000,000 
 
Other Current and Noncurrent Liabilities [Member]
 
 
 
Other Commitments [Line Items]
 
 
 
Financing obligation - leased facility
 
220,800,000 
 
Letter of Credit
 
 
 
Other Commitments [Line Items]
 
 
 
Value of outstanding letters of credit
 
84,000,000 
 
Facilities Space [Member]
 
 
 
Other Commitments [Line Items]
 
 
 
Total operating lease commitment balance
 
$ 2,600,000,000 
 
Commitments - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating and Capital Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
Future minimum lease payments under non-cancelable capital leases, Remaining six months of fiscal 2017
$ 26,431 
Future minimum lease payments under non-cancelable capital leases, Fiscal 2018
122,649 
Future minimum lease payments under non-cancelable capital leases, Fiscal 2019
115,791 
Future minimum lease payments under non-cancelable capital leases, Fiscal 2020
201,576 
Future minimum lease payments under non-cancelable capital leases, Fiscal 2021
35 
Future minimum lease payments under non-cancelable capital leases, Thereafter
0 
Future minimum lease payments under non-cancelable capital leases, Total
466,482 
Less: amount representing interest
(41,368)
Present value of capital lease obligations
425,114 
Future minimum lease payments under non-cancelable operating leases, Remaining six months of fiscal 2017
109,755 
Future minimum lease payments under non-cancelable operating leases, Fiscal 2018
429,673 
Future minimum lease payments under non-cancelable operating leases, Fiscal 2019
382,264 
Future minimum lease payments under non-cancelable operating leases, Fiscal 2020
303,873 
Future minimum lease payments under non-cancelable operating leases, Fiscal 2021
264,798 
Future minimum lease payments under non-cancelable operating leases, Thereafter
1,445,905 
Future minimum lease payments under non-cancelable operating leases, Total
2,936,268 
Financing Obligation, Building in Progress-Leased Facility, Remaining six months of fiscal 2017
5,322 
Financing Obligation, Building in Progress-Leased Facility, Fiscal 2018
21,437 
Financing Obligation, Building in Progress-Leased Facility, Fiscal 2019
21,881 
Financing Obligation, Building in Progress-Leased Facility, Fiscal 2020
22,325 
Financing Obligation, Building in Progress-Leased Facility, Fiscal 2021
22,770 
Financing Obligation, Building in Progress-Leased Facility, Thereafter
233,927 
Financing Obligation, Building in Progress-Leased Facility
$ 327,662 
Related-Party Transactions (Details) (Affiliated Entity [Member], USD $)
In Millions, unless otherwise specified
9 Months Ended
Oct. 31, 2016
board_seat
board_member
employee
Affiliated Entity [Member]
 
Related Party Transaction [Line Items]
 
Number of Company's Board Members that Hold Board Seats in Foundation
1 
Number of Board Seats in Foundation
3 
Number of Company's Employees that Hold Board Seats in Non-Profit
1 
Number Company's Board Members that Hold Board Seats in Non-Profit
1 
Number of Board Seats in Non-Profit Held by Company's Employees and Board Members
3 
Number of Board Seats in Non-Profit
9 
Value of resources donated to related parties
$ 2.5 
Value of donated subscriptions to related parties
$ 92.9 
Subsequent Events (Details) (Subsequent Event [Member], Krux [Member], USD $)
In Thousands, unless otherwise specified
1 Months Ended
Nov. 21, 2016
Subsequent Event [Member] |
Krux [Member]
 
Subsequent Event [Line Items]
 
Consideration transferred
$ 700,000