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Investments | 9 Months Ended
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Oct. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments Debt Securities As of October 31, 2021, debt securities consisted of the following (in thousands):
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Aggregate Fair Value
U.S. treasury securities | $ | 1,246,777 |  |  | $ | 54 |  |  | $ | (294) |  |  | $ | 1,246,537 |
U.S. agency obligations | 232,209 |  |  | 2 |  |  | (383) |  |  | 231,828 |
Corporate bonds | 426,074 |  |  | 35 |  |  | (444) |  |  | 425,665 |
Commercial paper | 934,715 |  |  | — |  |  | — |  |  | 934,715 |
Total debt securities | $ | 2,839,775 |  |  | $ | 91 |  |  | $ | (1,121) |  |  | $ | 2,838,745 |
Included in Cash and cash equivalents | $ | 715,486 |  |  | $ | 1 |  |  | $ | (2) |  |  | $ | 715,485 |
Included in Marketable securities | $ | 2,124,289 |  |  | $ | 90 |  |  | $ | (1,119) |  |  | $ | 2,123,260 |
As of January 31, 2021, debt securities consisted of the following (in thousands):
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Aggregate Fair Value
U.S. treasury securities | $ | 1,054,146 |  |  | $ | 205 |  |  | $ | (10) |  |  | $ | 1,054,341 |
U.S. agency obligations | 504,298 |  |  | 196 |  |  | (49) |  |  | 504,445 |
Corporate bonds | 346,563 |  |  | 1,253 |  |  | (14) |  |  | 347,802 |
Commercial paper | 664,262 |  |  | — |  |  | — |  |  | 664,262 |
Total debt securities | $ | 2,569,269 |  |  | $ | 1,654 |  |  | $ | (73) |  |  | $ | 2,570,850 |
Included in Cash and cash equivalents | $ | 440,678 |  |  | $ | — |  |  | $ | — |  |  | $ | 440,678 |
Included in Marketable securities | $ | 2,128,591 |  |  | $ | 1,654 |  |  | $ | (73) |  |  | $ | 2,130,172 |
We classify our debt securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We consider all debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets on the condensed consolidated balance sheets. Debt securities included in Marketable securities on the condensed consolidated balance sheets consist of securities with original maturities at the time of purchase greater than three months, and the remainder of the securities is included in Cash and cash equivalents. The unrealized losses associated with our debt securities were immaterial as of October 31, 2021, and January 31, 2021, and we did not recognize any credit losses related to our debt securities during the three and nine months ended October 31, 2021, or 2020. We did not have any sales of debt securities during the three months ended October 31, 2021, or 2020. We sold $10 million and $5 million of debt securities during the nine months ended October 31, 2021, and 2020, respectively. The realized gains and losses from the sales were immaterial. Equity Investments Equity investments consisted of the following (in thousands):
| Condensed Consolidated Balance Sheets Location |  | October 31, 2021 |  | January 31, 2021
Money market funds | Cash and cash equivalents |  | $ | 280,481 |  |  | $ | 659,964 |
Equity investments accounted for under the equity method | Other assets |  | — |  |  | 48,222 |
Non-marketable equity investments measured using the measurement alternative | Other assets |  | 169,929 |  |  | 73,142 |
Marketable equity investments | Marketable securities |  | 134,462 |  |  | 21,300 |
Total equity investments |  |  | $ | 584,872 |  |  | $ | 802,628 |
Total realized and unrealized gains and losses associated with our equity investments consisted of the following (in thousands):
| Three Months Ended October 31, |  | Nine Months Ended October 31,
2021 |  | 2020 |  | 2021 |  | 2020
Net realized gains (losses) recognized on equity investments sold (1) | $ | 11,759 |  |  | $ | — |  |  | $ | 4,236 |  |  | $ | 1,591 |
Net unrealized gains (losses) recognized on equity investments held as of the end of the period | 13,448 |  |  | 3,830 |  |  | 121,167 |  |  | 1,643 |
Total net gains (losses) recognized in Other income (expense), net | $ | 25,207 |  |  | $ | 3,830 |  |  | $ | 125,403 |  |  | $ | 3,234 |
(1)Reflects the difference between the sale proceeds and the carrying value of the equity investments at the beginning of the period. Equity Investments Accounted for Under the Equity Method We determine at the inception of each arrangement whether an investment or other interest is considered a variable interest entity (“VIE”). Investments in VIEs for which we are not the primary beneficiary or do not own a controlling interest but can exercise significant influence over the investee are accounted for under the equity method of accounting. During fiscal 2021, we made an equity investment of $50 million in a limited partnership, which represented an ownership interest of approximately 6%. We determined that the limited partnership was a VIE because the at-risk equity holders, as a group, lacked the characteristics of a controlling financial interest. We did not have majority voting rights nor the power to direct the activities of this entity, and therefore, we were not the primary beneficiary. The investment was accounted for under the equity method of accounting as it was considered to be more than minor and we had the ability to exercise significant influence over the entity. Under the equity method, our share of earnings and losses of the investee was not material and there was no impairment loss recorded for the periods presented. In June 2021, the limited partnership was liquidated and shares of common stock in a corporation were distributed to the partners. Immediately thereafter, the corporation completed its initial public offering (“IPO”). We no longer exercise significant influence over the entity and therefore we accounted for our interest in the common stock received as a marketable equity investment measured at fair value. Concurrent with the IPO, we sold a portion of our investment for proceeds of $5 million, resulting in a realized gain of $3 million. Our remaining investment, which had a carrying value of $134 million as of October 31, 2021, is subject to a lock-up agreement which restricts our ability to sell the securities until December 2021 at the earliest. We recorded an unrealized loss of $7 million and an unrealized gain of $91 million related to this investment for the three and nine months ended October 31, 2021, respectively. Non-Marketable Equity Investments Measured Using the Measurement Alternative Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which we do not own a controlling interest or exercise significant influence. The carrying values for our non-marketable equity investments are summarized below (in thousands):
| October 31, 2021 |  | January 31, 2021 |  |
Total initial cost | $ | 130,131 |  |  | $ | 65,377 |  |  |  |  |
Cumulative net unrealized gains (losses) | 39,798 |  |  | 7,765 |  |  |  |  |
Carrying value | $ | 169,929 |  |  | $ | 73,142 |  |  |  |  |
We recorded upward adjustments to the carrying value of non-marketable equity investments of $20 million and no material impairment losses for the three months ended October 31, 2021. In addition, as discussed in Note 7, Business Combinations, we recognized a $12 million non-cash gain related to our acquisition of Zimit. No material adjustments or impairment losses were recorded for the three months ended October 31, 2020. We recorded upward adjustments of $34 million and impairment losses of $2 million for the nine months ended October 31, 2021. We recorded no material adjustments and $3 million of impairment losses for the nine months ended October 31, 2020. Marketable Equity Investments We hold marketable equity investments with readily determinable fair values over which we do not own a controlling interest or exercise significant influence. The carrying values for our marketable equity investments are summarized below (in thousands):
| October 31, 2021 |  | January 31, 2021 |  |
Total initial cost | $ | 47,513 |  |  | $ | 5,000 |  |  |  |  |
Cumulative net unrealized gains (losses) | 86,949 |  |  | 16,300 |  |  |  |  |
Carrying value (1) | $ | 134,462 |  |  | $ | 21,300 |  |  |  |  |
(1)As of October 31, 2021, investments with a carrying value of $134 million are subject to a lock-up agreement through December 2021. There were no sales of marketable equity investments during the three months ended October 31, 2021. During the nine months ended October 31, 2021, we sold marketable equity investments for proceeds of $17 million which had an initial cost of $7 million. This includes the $5 million sale of the investment previously accounted for under the equity method described above. There were no sales of marketable equity investments during the comparative prior year periods.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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