Convertible Senior Notes (Tables)

12 Months Ended

Jan. 31, 2023

Debt Disclosure [Abstract]

Convertible Senior Notes

The net carrying amounts of the liability components for each series of Notes as of January 31, 2023 was as follows:

(In thousands)	2023 Notes (1)		2025 Notes		2026 Notes		2027 Notes
Liability component:
Principal amount	$	776,661	$	862,500	$	1,000,000	$	1,265,000
Unamortized issuance costs	(1,005)		(3,437)		(12,510)		(12,264)
Net carrying amount	$	775,656	$	859,063	$	987,490	$	1,252,736

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(1)    Reflects the impact of the 2023 Notes Partial Repurchase on June 5, 2020, as discussed above.

Calculation of Gain on Extinguishment of Convertible Senior Notes

The net carrying amount of the liability component of the 2023 Notes immediately prior to the repurchase was as follows:

	June 5, 2020
(In thousands)	2023 Notes Total		2023 Notes Partial Repurchase
Principal	$	1,265,000	$	488,339
Unamortized debt discount	(184,336)		(71,161)
Unamortized debt issuance costs	(7,194)		(2,777)
Net carrying amount	$	1,073,470	$	414,401

The 2023 Notes Partial Repurchase resulted in a gain on extinguishment of convertible senior notes, which is included in “Other income (expense), net” on our consolidated statements of operations, and was calculated as follows:

(In thousands)	2023 Notes Partial Repurchase
Net carrying amount of the liability component associated with the 2023 Notes Partial Repurchase	$	414,401
Less: Cash consideration allocated to the liability component	(407,449)
Gain from the 2023 Notes Partial Repurchase	$	6,952

Schedule of Interest Expense

The following table sets forth the interest expense related to each series of Notes:

	Fiscal Year Ended January 31,
(In thousands)	2023		2022
2023 Notes:
Coupon interest expense	$	3,884	$	3,884
Amortization of debt discount (conversion option) (1)	—		33,448
Amortization of debt issuance costs	1,811		1,304
Total interest expense related to the 2023 Notes	$	5,695	$	38,636
2025 Notes:
Coupon interest expense	$	9,704	$	9,704
Amortization of debt discount (conversion option) (1)	—		32,417
Amortization of debt issuance costs	1,558		893
Total interest expense related to the 2025 Notes	$	11,262	$	43,014
2026 Notes:
Coupon interest expense	$	7,500	$	4,208
Amortization of debt discount (conversion option) (1)	—		27,420
Amortization of debt issuance costs	3,767		1,192
Total interest expense related to the 2026 Notes	$	11,267	$	32,820
2027 Notes:
Coupon interest expense	$	14,232	$	14,232
Amortization of debt discount (conversion option) (1)	—		42,445
Amortization of debt issuance costs	3,143		1,728
Total interest expense related to the 2027 Notes	$	17,375	$	58,405

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(1)    As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.

Other Key Terms and Premiums Paid for Capped Calls

The following table sets forth other key terms and premiums paid for the Capped Calls related to the 2023 Notes, the 2025 Notes, and the 2027 Notes:

	Capped Calls Entered into in Connection with the Issuance of the 2023 and 2025 Notes		Capped Calls Entered into in Connection with the Issuance of the 2027 Notes
Initial strike price, subject to certain adjustments	$	148.30	$	255.34
Cap price, subject to certain adjustments	$	232.62	$	378.28
Total premium paid (in thousands)	$	274,275	$	137,379