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Contract Balances and Performance Obligations
 9 Months Ended
Oct. 31, 2024
Revenue from Contract with Customer [Abstract]  
Contract Balances and Performance Obligations Deferred Costs
Deferred costs, which consist of deferred sales commissions, were $734 million and $741 million as of October 31, 2024, and January 31, 2024, respectively. Amortization expense for the deferred costs was $64 million and $54 million for the three months ended October 31, 2024, and 2023, respectively, and $185 million and $155 million for the nine months ended October 31, 2024, and 2023, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.
Contract Balances and Performance Obligations
Contract Balances
Contract assets and unearned revenue balances were as follows (in millions):
Condensed Consolidated Balance Sheets Location
October 31, 2024January 31, 2024
Contract assets:
Contract assets, current
Trade and other receivables, net$414 $240 
Contract assets, noncurrent
Other assets37 21 
Total contract assets
$451 $261 
Unearned revenue (1):
Unearned revenue, current
Unearned revenue$3,447 $4,057 
Unearned revenue, noncurrent
Unearned revenue, noncurrent64 70 
Total unearned revenue
$3,511 $4,127 
(1)Included in the unearned revenue balance are amounts related to professional services that are subject to cancellation and pro-rated refund rights of $69 million and $76 million as of October 31, 2024, and January 31, 2024, respectively.
Revenues of $1.6 billion and $1.4 billion were recognized during the three months ended October 31, 2024, and 2023, respectively, that were included in the unearned revenue balances as of July 31, 2024, and 2023, respectively. Revenues of $3.6 billion and $3.1 billion were recognized during the nine months ended October 31, 2024, and 2023, respectively, that were included in the unearned revenue balances as of January 31, 2024, and 2023, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of October 31, 2024, approximately $22.2 billion of revenues are expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenues on approximately $7.0 billion and $12.3 billion of these remaining performance obligations over the next 12 and 24 months, respectively, with the balance recognized thereafter. Revenues from remaining performance obligations for professional services contracts as of October 31, 2024, were not material.