Fair Value Measurements

12 Months Ended

Jan. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Financial assets are measured at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

 Three levels of inputs may be used to measure as follows:

Level 1—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in

active markets.

Level 2—Valuations based on other inputs that are directly or indirectly observable in the marketplace.

Level 3—Valuations based on unobservable inputs that are supported by little or no market activity.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about financial assets that were measured at fair value on a recurring basis using the above input categories:

	As of January 31, 2023
	Level 1		Level 2		Level 3		Total
	(dollars in millions)
Assets:
Cash equivalents:
Money market funds	$	133	$	—	$	—	$	133
Total cash equivalents	133		—		—		133
Short-term investments:
U.S. treasury securities	—		2,185		—		2,185
Corporate debt securities	—		131		—		131
Total short-term investments	—		2,316		—		2,316
Total cash equivalents and short-term investments	$	133	$	2,316	$	—	$	2,449

	As of January 31, 2022
	Level 1		Level 2		Level 3		Total
	(dollars in millions)
Assets:
Cash equivalents:
Money market funds	$	152	$	—	$	—	$	152
Total cash equivalents	152		—		—		152
Short-term investments:
U.S. treasury securities	—		1,913		—		1,913
Corporate debt securities	—		329		—		329
Total short-term investments	—		2,242		—		2,242
Total cash equivalents and short-term investments	$	152	$	2,242	$	—	$	2,394

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

Fair Value Measurements of Other Financial Instruments

The following table presents the principal amounts and estimated fair values of financial instruments that are not recorded at fair value on the consolidated balance sheets:

	As of January 31, 2023
	Principal Amount		Estimated Fair Value
	(dollars in millions)
2025 convertible senior notes	$	1,060	$	933
2026 convertible senior notes	$	1,150	$	981

The Notes are recorded at face value less unamortized debt issuance costs (See Note 9 for additional details). The estimated fair values of the Notes, which are Level 2 financial instruments, were determined based on the quoted bid prices of the Notes in an over-the-counter market on the last trading day of the reporting period.