Convertible Senior Notes, Net (Tables)

12 Months Ended

Jan. 31, 2023

Debt Disclosure [Abstract]

Schedule of Convertible Debt

The net carrying amount of the 2023 Notes consisted of the following:

	As of January 31, 2023		As of January 31, 2022
	(dollars in millions)
Liability component:
Principal	$	—	$	17
Less: unamortized debt issuance costs and debt discount(1)	—		(1)
Net carrying amount	$	—	$	16
Equity component:(1)
2023 Notes	$	—	$	4
Less: issuance costs	—		—
Carrying amount of the equity component(2)	$	—	$	4

(1) Subsequent to the adoption of ASU 2020-06 under the modified retrospective method, the equity component and debt discount are eliminated. (2) Included in the January 31, 2022 consolidated balance sheet within Additional paid-in capital.

The net carrying amount of the 2025 Notes consisted of the following:

	As of January 31, 2023		As of January 31, 2022
	(dollars in millions)
Liability component:
Principal	$	1,060	$	1,060
Less: unamortized debt issuance costs and debt discount(1)	(8)		(149)
Net carrying amount	$	1,052	$	911
Equity component:(1)
2025 Notes	$	—	$	221
Less: issuance costs	—		(4)
Carrying amount of the equity component(2)	$	—	$	217

(1) Subsequent to the adoption of ASU 2020-06 under the modified retrospective method, the equity component and debt discount are eliminated. (2) Included in the January 31, 2022 consolidated balance sheet within Additional paid-in capital.

The net carrying amount of the 2026 Notes consisted of the following:

	As of January 31, 2023		As of January 31, 2022
	(dollars in millions)
Liability component:
Principal	$	1,150	$	1,150
Less: unamortized debt issuance costs and debt discount(1)	(9)		(245)
Net carrying amount	$	1,141	$	905
Equity component:(1)
2026 Notes	$	—	$	310
Less: issuance costs	—		(4)
Carrying amount of the equity component(2)	$	—	$	306

(1) Subsequent to the adoption of ASU 2020-06 under the modified retrospective method, the equity component and debt discount are eliminated. (2) Included in the January 31, 2022 consolidated balance sheet within Additional paid-in capital.

Schedule of Interest Expense

The following table sets forth total interest expense recognized related to the 2025 Notes:

	Year Ended January 31,
	2023		2022		2021
	(dollars in millions)
Contractual interest expense	$	1	$	1	$	1
Amortization of debt issuance costs	3		2		2
Amortization of debt discount(1)	—		36		34
Total	$	4	$	39	$	37

(1) Not applicable subsequent to the adoption of ASU 2020-06.The following table sets forth total interest expense recognized related to the 2026 Notes:

	Year Ended January 31,
	2023		2022		2021
	(dollars in millions)
Contractual interest expense	$	4	$	4	$	3
Amortization of debt issuance costs	3		1		1
Amortization of debt discount(1)	—		46		27
Total	$	7	$	51	$	31

(1) Not applicable subsequent to the adoption of ASU 2020-06.