Income Taxes (Tables)

12 Months Ended

Jan. 31, 2022

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Income Before Provision For (Benefit From) Income Taxes

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

	Fiscal Year Ended January 31,
	2022		2021		2020
Domestic	$	1,338	$	2,683	$	686
Foreign	194		(122)		20
	$	1,532	$	2,561	$	706

Schedule of Income Taxes Provision (Benefit)

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

	Fiscal Year Ended January 31,
	2022		2021		2020
Current:
Federal	$	6	$	(12)	$	8
State	(16)		53		33
Foreign	352		238		512
Total	342		279		553
Deferred:
Federal	(181)		228		(41)
State	(57)		66		8
Foreign	(16)		(2,084)		60
Total	(254)		(1,790)		27
Provision for (benefit from) income taxes	$	88	$	(1,511)	$	580

Reconciliation of Statutory Federal Income Tax Rate

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

	Fiscal Year Ended January 31,
	2022		2021		2020
U.S. federal taxes at statutory rate	$	322	$	538	$	148
State, net of the federal benefit	(29)		90		40
Effects of non-U.S. operations (1)	199		(1,817)		540
Tax credits	(263)		(125)		(195)
Non-deductible expenses	83		45		119
Excess tax benefits related to share-based compensation	(323)		(289)		(166)
Effect of U.S. tax law change	0		23		6
Change in valuation allowance	101		15		85
Other, net	(2)		9		3
Provision for (benefit from) income taxes	$	88	$	(1,511)	$	580

(1) Fiscal 2021 effects of non-U.S. operations included tax benefit from the transfer of certain intangible property in Ireland. Fiscal 2020 included incremental tax costs associated with the integration of acquired operations and assets.

Significant Components of Deferred Tax Assets And Liabilities

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

	As of January 31,
	2022		2021
Deferred tax assets:
Losses and deductions carryforward	$	682	$	202
Deferred stock-based expense	244		179
Tax credits	1,469		990
Accrued liabilities	300		269
Intangible assets	2,009		2,011
Lease liabilities	862		948
Unearned revenue	116		71
Other	32		17
Total deferred tax assets	5,714		4,687
Less valuation allowance	(463)		(305)
Deferred tax assets, net of valuation allowance	5,251		4,382
Deferred tax liabilities:
Capitalized costs to obtain revenue contracts	(817)		(581)
Purchased intangible assets	(1,902)		(833)
Depreciation and amortization	(178)		(121)
Basis difference on strategic and other investments	(337)		(400)
Lease right-of-use assets	(735)		(863)
Total deferred tax liabilities	(3,969)		(2,798)
Net deferred tax assets (liabilities)	$	1,282	$	1,584

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of total unrecognized tax benefits for fiscal years 2022, 2021 and 2020 is as follows (in millions):

	Fiscal Year Ended January 31,
	2022		2021		2020
Beginning of period	$	1,479	$	1,433	$	852
Tax positions taken in prior period:
Gross increases	25		77		12
Gross decreases	(27)		(40)		(37)
Tax positions taken in current period:
Gross increases	358		107		640
Settlements	0		(87)		(27)
Lapse of statute of limitations	(7)		(19)		(4)
Currency translation effect	(6)		8		(3)
End of period	$	1,822	$	1,479	$	1,433