Cash Equivalents and Investments

12 Months Ended

Jan. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Short-term Investments

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.

The following table presents the estimated fair value of cash equivalents and short-term investments:


	As of January 31,
	2025		2024
	(dollars in millions)
Cash equivalents:
Money market funds (Level 1)	$	225	$	151
Certificates of deposit (Level 2)	23		—


Total cash equivalents	248		151
Level 2:
Short-term investments (Available-for-sale):


U.S. treasury securities	1,788		1,784
Corporate debt securities	281		43
Certificates of deposit	45		41
Total short-term investments	2,114		1,868
Total	$	2,362	$	2,019

The following table presents the contractual maturities of the Company's short-term investments:


	As of January 31, 2025
	Estimated Fair Value
	(dollars in millions)
Due within one year	$	1,456
Due between one to five years	658
Total	$	2,114

Interest receivable of $24 million and $20 million is included in Prepaid expenses and other current assets on the consolidated balance sheets as of January 31, 2025 and 2024, respectively.

There were no material differences between the estimated fair value and amortized cost of our cash equivalents and short-term investments as of January 31, 2025 and 2024.

For available-for-sale debt securities that have unrealized losses, there were no material credit or non-credit related impairments for short-term investments as of January 31, 2025 and 2024.

Strategic Investments

Strategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy as nonrecurring fair value measurements may include observable and unobservable inputs. As of January 31, 2025 and 2024, the balance of strategic investments was $30 million and $26 million, respectively.