XML 23 R14.htm IDEA: XBRL DOCUMENT v3.23.2
Convertible Senior Notes, Net
 6 Months Ended
Jul. 31, 2023
Debt Disclosure [Abstract]  
Convertible Senior Notes, Net Convertible Senior Notes, Net
Convertible Senior Notes
The 2025 convertible senior notes (“2025 Notes”) and the 2026 convertible senior notes (“2026 Notes” and together with the 2025 Notes, the “Notes”) are recorded at face value less unamortized debt issuance costs.
During the three months ended July 31, 2023, the Company repurchased $142 million principal amount of the 2025 Notes for $130 million in cash and $242 million principal amount of the 2026 Notes for $209 million in cash, resulting in a gain on early extinguishment of debt of $42 million.
During the six months ended July 31, 2023, the Company repurchased $508 million principal amount of the 2025 Notes for $462 million in cash and $242 million principal amount of the 2026 Notes for $209 million in cash, resulting in a gain on early extinguishment of debt of $73 million.
The net carrying amount of the Notes consisted of the following:
As of July 31, 2023As of January 31, 2023
(dollars in millions)
2025 Notes:
Principal$552 $1,060 
Less: unamortized debt issuance costs(3)(8)
Net carrying amount$549 $1,052 
2026 Notes:
Principal$908 $1,150 
Less: unamortized debt issuance costs(6)(9)
Net carrying amount$902 $1,141 
Fair Value Measurements
The following table presents the principal amounts and estimated fair values of the Notes, which are not recorded at fair value on the condensed consolidated balance sheets:
 As of July 31, 2023
 Principal Amount
Estimated Fair Value 
(dollars in millions)
2025 Notes$552 $502 
2026 Notes$908 $787 
The estimated fair values of the Notes, which are Level 2 financial instruments, were determined based on the quoted bid prices of the Notes in an over-the-counter market on the last trading day of the reporting period.
Warrants
In February 2018, the Company sold net-share-settled (or, at the Company’s election subject to certain conditions, cash-settled) warrants (the “Warrants”) to acquire shares of the Company’s Class A common stock at an initial exercise price of approximately $68.06 per share. The Warrants may be exercised over 80 scheduled trading days beginning on May 15, 2023 and will expire if they are not exercised on their respective exercise dates. The Company has elected to cash settle the Warrants.
During the three months ended July 31, 2023, the Company settled Warrants corresponding to approximately 0.7 million shares for total cash payments of $4 million. As of July 31, 2023, Warrants to acquire up to 0.4 million shares remained outstanding.