Investments

12 Months Ended

Jan. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

At January 31, 2022, marketable securities consisted of the following (in millions):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	3,153	$	2	$	(34)	$	3,121
U.S. treasury securities	205		0		(3)		202
Mortgage-backed obligations	229		0		(4)		225
Asset-backed securities	1,056		0		(5)		1,051
Municipal securities	225		0		(2)		223

Commercial paper	27		0		0		27

Covered bonds	212		0		(2)		210
Other	14		0		0		14
Total marketable securities	$	5,121	$	2	$	(50)	$	5,073

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
	January 31, 2022		January 31, 2021
Due within 1 year	$	2,161	$	2,525
Due in 1 year through 5 years	2,899		3,236
Due in 5 years through 10 years	13		10
	$	5,073	$	5,771

Strategic Investments

Strategic investments by form and measurement category as of January 31, 2022 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	370	$	4,204	$	122	$	4,696
Debt securities and other investments	0		0		88		88
Balance as of January 31, 2022	$	370	$	4,204	$	210	$	4,784

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

The Company holds investments in, or management agreements with, VIEs which the Company does not consolidate because it is not considered the primary beneficiary of these entities. The carrying value of VIEs within strategic investments was $467 million and $129 million, respectively, as of January 31, 2022 and 2021.

Gains on Strategic Investments, Net

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


4	Fiscal Year Ended January 31,
		2022		2021		2020
Unrealized gains (losses) recognized on publicly traded equity securities, net		$	(241)	$	1,743	$	138
Unrealized gains recognized on privately held equity securities, net		1,210		184		270
Impairments on privately held equity and debt securities		(51)		(124)		(76)
Unrealized gains, net		918		1,803		332
Realized gains on sales of securities, net		293		367		95

Gains on strategic investments, net		$	1,211	$	2,170	$	427

Unrealized gains recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories. For privately held securities accounting for under the measurement alternative, the Company recorded upward adjustments of $1.2 billion and downward adjustments, excluding impairments, of $18 million for the year ended January 31, 2022, and upward adjustments of $167 million and downward adjustments, excluding impairments, of $1 million for the year ended January 31, 2021. The upward adjustments during the fiscal year ended January 31, 2022 included a $369 million mark-up of a single privately held equity investment.

Impairments on privately held equity securities accounted for under the measurement alternative were $43 million and $107 million for the fiscal years ended January 31, 2022 and 2021, respectively.

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. Realized gains for fiscal 2022 were primarily driven by a $155 million gain resulting from a publicly traded company acquiring one of the Company’s privately held equity investments in a stock and cash transaction.

The Company calculates cumulative realized gains on sales of securities, net, as the difference between the sale proceeds and the initial purchase price for securities sold during the period. Cumulative realized gains on sales of securities, net, for the fiscal years ended January 31, 2022 and 2021, were $1.6 billion and $0.9 billion, respectively. In the fiscal year ended January 31, 2022, $1.5 billion of the cumulative realized gains on sales of securities, net were attributable to partial sales of two of the Company’s publicly traded equity securities.