Income Taxes |
6 Months Ended |
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Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes We reported an income tax benefit of $172 million and an income tax provision of $111 million for the six months ended July 31, 2026, and 2025, respectively. The income tax benefit for the six months ended July 31, 2026, was primarily attributable to an intra-entity transfer of certain intellectual property rights as part of an internal legal entity restructuring. In connection with the transaction, we recognized $374 million of deferred tax assets related to deductible temporary differences associated with certain tax attributes transferred at carryover basis. This benefit was partially offset by income tax expense primarily attributable to earnings in the U.S. and profitable foreign jurisdictions. The income tax provision for the six months ended July 31, 2025, was primarily attributable to earnings in the U.S. and profitable foreign jurisdictions. We are subject to income tax audits in the U.S. and foreign jurisdictions. We record liabilities related to uncertain tax positions and believe that we have provided adequate reserves for income tax uncertainties in all open tax years. Due to our history of tax losses, all years remain open to tax audit. We periodically evaluate the realizability of our deferred tax assets based on all available evidence, both positive and negative, such as historic results, future reversals of existing deferred tax liabilities, and projected future taxable income, as well as prudent and feasible tax-planning strategies. The assessment requires significant judgment and is performed in each of the applicable jurisdictions. As of July 31, 2026, we continue to maintain valuation allowances related to tax credits in certain state jurisdictions and net operating loss in certain foreign jurisdictions. Given our current and anticipated future earnings in a certain foreign jurisdiction, there is a reasonable possibility that we may release a significant portion of the valuation allowance related to our deferred tax assets in that jurisdiction, although the timing of any such release is uncertain. Any such release would decrease income tax expense in the period in which it is recorded. We will continue to evaluate the need for valuation allowances for our deferred tax assets.
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