Investments

9 Months Ended

Oct. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

At October 31, 2021, marketable securities consisted of the following (in millions):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	2,881	$	5	$	(15)	$	2,871
U.S. treasury securities	212		0		(1)		211
Mortgage-backed obligations	258		1		(2)		257
Asset-backed securities	931		1		(2)		930
Municipal securities	138		1		0		139

Commercial paper	40		0		0		40

Covered bonds	181		0		(2)		179
Other	11		0		0		11
Total marketable securities	$	4,652	$	8	$	(22)	$	4,638

At January 31, 2021, marketable securities consisted of the following (in millions):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	3,321	$	20	$	0	$	3,341
U.S. treasury securities	205		1		0		206
Mortgage-backed obligations	382		5		0		387
Asset-backed securities	1,096		6		(1)		1,101
Municipal securities	242		2		0		244


Covered bonds	328		0		0		328
Other	164		0		0		164
Total marketable securities	$	5,738	$	34	$	(1)	$	5,771

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


	As of
	October 31, 2021		January 31, 2021
Due within 1 year	$	1,742	$	2,525
Due in 1 year through 5 years	2,884		3,236
Due in 5 years through 10 years	12		10
	$	4,638	$	5,771

Strategic Investments

Strategic investments by form and measurement category as of October 31, 2021 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	603	$	3,195	$	123	$	3,921
Debt securities and other investments	0		0		83		83
Balance as of October 31, 2021	$	603	$	3,195	$	206	$	4,004

Strategic investments by form and measurement category as of January 31, 2021 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	2,068	$	1,670	$	120	$	3,858
Debt securities and other investments	0		0		51		51
Balance as of January 31, 2021	$	2,068	$	1,670	$	171	$	3,909

Measurement Alternative Adjustments

The Company recognized $28 million and $6 million of impairments and downward adjustments and $131 million and $31 million of upward adjustments during the three months ended October 31, 2021 and 2020, respectively. The Company recognized $55 million and $82 million of impairments and downward adjustments and $933 million and $86 million of upward adjustments during the nine months ended October 31, 2021 and 2020. Approximately $369 million of the upward adjustments during the nine months ended October 31, 2021 was related to the mark-up of one of the Company’s privately held investments.

Since February 1, 2018, cumulative impairments and downward adjustments were $181 million and cumulative upward adjustments were $1.2 billion through October 31, 2021 for measurement alternative investments still held as of October 31, 2021.

Gains on Strategic Investments, Net

The components of gains and losses on strategic investments were as follows (in millions):


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
Unrealized gains (losses) recognized on publicly traded equity securities, net	$	98	$	997	$	(13)	$	1,620
Unrealized gains recognized on privately held equity securities, net	162		29		964		83
Realized gains on sales of securities, net	114		18		271		306
Impairments on privately held equity and debt securities	(11)		(8)		(45)		(99)

Gains on strategic investments, net	$	363	$	1,036	$	1,177	$	1,910

Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later. The realized gains for the three months ended October 31, 2021 were primarily driven by the sale of one of the Company’s publicly traded investments resulting in a realized gain of $112 million. The realized gains for the nine months ended October 31, 2021 were also driven by the acquisition of one of the Company’s privately held equity investments in a stock and cash transaction by a publicly traded company of $155 million. The cumulative net gains, measured as the sale price less the initial purchase price, for equity securities exited during the three and nine months ended October 31, 2021 were $498 million and $1.6 billion, respectively. Cumulative net realized gains in the three and nine months ended October 31, 2021 include gains related to partial sales of two of the Company’s publicly traded investments, which resulted in cumulative net gains of $505 million and $1.5 billion, respectively.

In the three months ended October 31, 2021 and 2020, for strategic investments still held as of those respective period ends, the Company recognized net unrealized gains of $249 million and $1.0 billion, respectively. These include approximately $11 million and $8 million of impairments on privately held equity and debt securities in the three months ended October 31, 2021 and 2020, respectively.