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Deferred Commissions
 6 Months Ended
Jul. 31, 2023
Revenue from Contract with Customer [Abstract]  
Deferred Commissions Deferred Commissions
Sales commissions capitalized as contract costs totaled $40 million and $28 million in the three months ended July 31, 2023 and 2022, respectively, and $65 million and $49 million in the six months ended July 31, 2023 and 2022, respectively.
Amortization of contract costs totaled $26 million and $21 million for the three months ended July 31, 2023 and 2022, respectively, and $49 million and $40 million for the six months ended July 31, 2023 and 2022, respectively.
Deferred Revenue and Performance Obligations
Deferred Revenue
Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.
Subscription revenue recognized during the three months ended July 31, 2023 and 2022 that was included in the deferred revenue balances at the beginning of the respective periods was $490 million and $390 million, respectively, and $850 million and $657 million in the six months ended July 31, 2023 and 2022, respectively. Professional services and other revenue recognized during the three months ended July 31, 2023 and 2022 that was included in the deferred revenue balances at the beginning of the respective periods was $4 million and $7 million, respectively, and $6 million and $11 million in the six months ended July 31, 2023 and 2022, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations (“RPO”) represents all future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods.
Total remaining non-cancelable performance obligations under subscription contracts with customers was approximately $3,027 million as of July 31, 2023. Of this amount, the Company expects to recognize revenue of approximately $1,772 million, or 59%, over the next 12 months, with the balance to be recognized as revenue thereafter. Remaining performance obligations for professional services and other contracts as of July 31, 2023 were not material.