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Stockholders' Equity | 9 Months Ended
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Oct. 31, 2024
Equity [Abstract] |
Stockholders' Equity | Stockholders’ Equity Common Stock As of October 31, 2024, there were 213 million shares of Class A common stock, net of treasury stock, and 52 million shares of Class B common stock outstanding. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 10 votes per share. Each share of Class B common stock can be converted into a share of Class A common stock at any time at the option of the holder. Share Repurchase Programs In August 2024, our Board of Directors authorized the repurchase of up to $1.0 billion of our outstanding shares of Class A common stock (“August 2024 Share Repurchase Program”). Under this program, in accordance with applicable securities laws and other restrictions, we may repurchase shares of our Class A common stock through open market purchases, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in privately negotiated transactions, or by other means. The timing and total amount of share repurchases will depend upon business, economic, and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The August 2024 Share Repurchase Program has no expiration date, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of Class A common stock. Prior to the August 2024 Share Repurchase Program, our Board of Directors authorized a $500 million share repurchase program in February 2024, which we completed in the third quarter of fiscal 2025, and a $500 million share repurchase program in November 2022, which we completed in the first quarter of fiscal 2025. The table below sets forth information regarding our share repurchase programs (in millions, except number of shares which are reflected in thousands, and per share data):
| Three Months Ended October 31, |  | Nine Months Ended October 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Total number of shares repurchased | 649 |  |  | 677 |  |  | 2,538 |  |  | 1,312 |
Average price paid per share | $ | 242.42 |  |  | $ | 218.35 |  |  | $ | 236.73 |  |  | $ | 218.34 |
Amount repurchased | $ | 157 |  |  | $ | 147 |  |  | $ | 600 |  |  | $ | 286 |
All repurchases were made in open market transactions. As of October 31, 2024, we were authorized to repurchase a remaining $902 million of our outstanding shares of Class A common stock under the August 2024 Share Repurchase Program. Employee Equity Plans In June 2022, our stockholders approved the 2022 Equity Incentive Plan (“2022 Plan”), with a reserve of 30 million shares for issuance. The 2022 Plan serves as the successor to our 2012 Equity Incentive Plan (“2012 Plan” and, together with the 2022 Plan, “Stock Plans”). Awards that are granted on or after the effective date of the 2022 Plan will be granted pursuant to and subject to the terms and provisions of the 2022 Plan. Prior awards granted under the 2012 Plan continue to be subject to the terms and provisions of the 2012 Plan. Shares that are withheld in connection with the net share settlement of RSUs or forfeited are added to the reserves of the 2022 Plan. As of October 31, 2024, we had 17 million shares of Class A common stock available for future grants. In June 2022, our stockholders approved the Amended and Restated 2012 Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about June 1 and December 1, and are exercisable on or about the succeeding November 30 and May 31, respectively. As of October 31, 2024, 3 million shares of Class A common stock were available for issuance under the ESPP. Restricted Stock Units The Stock Plans provide for the issuance of restricted stock units (“RSUs”) to employees and non-employees. RSUs generally vest over four years. RSU activity during the nine months ended October 31, 2024, was as follows (in thousands, except per share data):
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Outstanding balance as of January 31, 2024 | 15,020 |  |  | $ | 203.94 |
RSUs granted | 6,602 |  |  | 251.96 |
RSUs vested | (3,495) |  |  | 203.45 |
RSUs forfeited and canceled (1) | (2,854) |  |  | 206.65 |
Outstanding balance as of October 31, 2024 | 15,273 |  |  | 224.31 |
(1)Includes shares withheld in connection with the net share settlement of RSUs. As of October 31, 2024, there was a total of $2.6 billion in unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately three years. Market-Based Restricted Stock Units In December 2022, 0.3 million shares of market-based RSUs were granted to Mr. Eschenbach in connection with his appointment as Co-CEO that vest based on appreciation of the price of our Class A common stock over a multi-year period and upon continued service (“PVU Award”). We estimated the fair value of the PVU Award on the grant date using the Monte Carlo simulation model with the following assumptions: (i) expected volatility of 40%, (ii) risk-free interest rate of 4%, and (iii) total performance period of six years. The weighted-average grant date fair value of the PVU Award was $124.80 per share. We recognize expense for the PVU Award over the requisite service period of five years using the accelerated attribution method. Provided that the requisite service is rendered, the total fair value of the PVU Award at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the achievement of the specified market criteria. As of October 31, 2024, there was a total of $11 million in unrecognized compensation cost related to the PVU Award, which is expected to be recognized over approximately three years. Stock Options The Stock Plans provide for the issuance of incentive and nonstatutory stock options to employees and non-employees. Stock options issued under the Stock Plans generally are exercisable for periods not to exceed ten years and generally vest over five years. As of October 31, 2024, there were 0.1 million options outstanding and exercisable with a weighted-average exercise price of $29.43, and an aggregate intrinsic value of $16 million. All stock options were fully vested, with no remaining unrecognized compensation cost.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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