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Taxes
 12 Months Ended
Jan. 31, 2025
Income Tax Disclosure [Abstract]  
Taxes Taxes
The components of income before income taxes are as follows:
 Fiscal Years Ended January 31,
(Amounts in millions)202520242023
U.S.$18,571 $20,092 $15,089 
Non-U.S.7,738 1,756 1,927 
Total income before income taxes$26,309 $21,848 $17,016 
A summary of the provision for income taxes is as follows:
 Fiscal Years Ended January 31,
(Amounts in millions)202520242023
Current:
U.S. federal$3,478 $3,215 $2,030 
U.S. state and local886 762 610 
International2,451 1,772 2,654 
Total current tax provision6,815 5,749 5,294 
Deferred:
U.S. federal(214)(438)608 
U.S. state and local30 141 119 
International(479)126 (297)
Total deferred tax expense (benefit)(663)(171)430 
Total provision for income taxes$6,152 $5,578 $5,724 
Effective Income Tax Rate Reconciliation
A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations is as follows:
 Fiscal Years Ended January 31,
 202520242023
U.S. statutory tax rate21.0 %21.0 %21.0 %
U.S. state income taxes, net of federal income tax benefit2.8 %3.0 %3.1 %
Income taxed outside the U.S.1.3 %0.1 %1.1 %
Separation, disposal and wind-down of certain business operations— %— %6.3 %
Valuation allowance0.4 %1.2 %1.7 %
Net impact of repatriated international earnings(0.6)%(0.4)%(0.4)%
Federal tax credits(1.4)%(1.5)%(1.3)%
Change in unrecognized tax benefits0.3 %0.6 %0.3 %
Other, net(0.4)%1.5 %1.8 %
Effective income tax rate23.4 %25.5 %33.6 %
Deferred Taxes
The significant components of the Company's deferred tax account balances are as follows:
 January 31,
(Amounts in millions)20252024
Deferred tax assets:
Loss and tax credit carryforwards$7,539 $7,136 
Accrued liabilities3,009 3,066 
Share-based compensation263 238 
Lease obligations4,611 4,831 
Other1,076 1,124 
Total deferred tax assets16,498 16,395 
Valuation allowances(7,405)(7,485)
Deferred tax assets, net of valuation allowances9,093 8,910 
Deferred tax liabilities:
Property and equipment4,303 4,813 
Acquired intangibles1,096 898 
Inventory3,336 3,035 
Lease right of use assets4,816 4,941 
Mark-to-market investments353 322 
Other460 486 
Total deferred tax liabilities14,364 14,495 
Net deferred tax liabilities$5,271 $5,585 
The deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:
  January 31,
(Amounts in millions)20252024
Balance Sheet classification
Assets:
Other long-term assets$1,748 $1,663 
Liabilities:
Deferred income taxes and other7,019 7,248 
Net deferred tax liabilities$5,271 $5,585 
Net Operating Losses, Tax Credit Carryforwards and Valuation Allowances
As of January 31, 2025, the Company's net operating loss and capital loss carryforwards totaled approximately $32.4 billion. Of these carryforwards, approximately $18.5 billion will expire, if not utilized, in various years through 2045. The remaining carryforwards have no expiration.
The realizability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a valuation
allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the Consolidated Statements of Income.
The Company had valuation allowances of approximately $7.4 billion and $7.5 billion as of January 31, 2025 and 2024, respectively, on deferred tax assets associated primarily with the net operating loss carryforwards.
Uncertain Tax Positions
The benefits of uncertain tax positions are recorded in the Company's Consolidated Financial Statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities.
As of January 31, 2025 and 2024, the amount of gross unrecognized tax benefits related to continuing operations was $3.8 billion and $3.5 billion, respectively. The amount of unrecognized tax benefits that would affect the Company's effective income tax rate was $2.0 billion and $1.7 billion as of January 31, 2025 and 2024, respectively.
A reconciliation of gross unrecognized tax benefits from continuing operations is as follows:
 Fiscal Years Ended January 31,
(Amounts in millions)202520242023
Gross unrecognized tax benefits, beginning of year$3,540 $3,307 $3,245 
Increases related to prior year tax positions445 336 79 
Decreases related to prior year tax positions(228)(74)(248)
Increases related to current year tax positions93 102 357 
Settlements during the period(77)(102)(89)
Lapse in statutes of limitations(16)(29)(37)
Gross unrecognized tax benefits, end of year$3,757 $3,540 $3,307 
The Company classifies interest and penalties related to uncertain tax benefits as interest expense and as operating, selling, general and administrative expenses, respectively. Interest expense and penalties related to these positions were immaterial for fiscal 2025, 2024 and 2023. During the next twelve months, it is reasonably possible that tax audit resolutions could reduce unrecognized tax benefits by an immaterial amount, either because the tax positions are sustained on audit or because the Company agrees to their disallowance. The Company does not expect any change to have a material impact to its Consolidated Financial Statements.
The Company remains subject to income tax examinations for its U.S. federal income taxes generally for fiscal 2018 through 2024. The Company also remains subject to income tax examinations for international income taxes for fiscal 2013 through 2024, and for U.S. state and local income taxes generally for the fiscal years ended 2018 through 2024. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before fiscal 2013.
Other Taxes
The Company is subject to tax examinations for value added, sales-based, payroll and other non-income taxes. A number of these examinations are ongoing in various jurisdictions. In certain cases, the Company has received assessments and judgments from the respective taxing authorities in connection with these examinations. Unless otherwise indicated, the possible losses or range of possible losses associated with these matters are individually immaterial, but a group of related matters, if decided adversely to the Company, could result in a liability material to the Company's Consolidated Financial Statements.