splk-20200430
0001353283false1/31falsefalseLarge Accelerated Filer158,868,9552021Q10.0010.0011,000,000,0001,000,000,000158,841,311157,787,548158,841,311157,787,548
Amounts include stock-based compensation expense, as follows:
Cost of revenues, $13,202 thousand and $10,825 thousand;
Research and development, $68,569 thousand and $41,268 thousand;
Sales and marketing, $56,474 thousand and $50,268 thousand;
General and administrative, $20,573 thousand and $20,702 thousand
for the three months ended April 30, 2020 and 2019, respectively.
13,20210,82568,56941,26856,47450,26820,57320,7022112030five102030
00013532832020-02-012020-04-30xbrli:shares00013532832020-05-26iso4217:USD00013532832020-04-3000013532832020-01-31iso4217:USDxbrli:shares0001353283us-gaap:LicenseMember2020-02-012020-04-300001353283us-gaap:LicenseMember2019-02-012019-04-300001353283splk:CloudServicesMember2020-02-012020-04-300001353283splk:CloudServicesMember2019-02-012019-04-300001353283splk:MaintenanceAndServicesMember2020-02-012020-04-300001353283splk:MaintenanceAndServicesMember2019-02-012019-04-3000013532832019-02-012019-04-300001353283us-gaap:CostOfSalesMember2020-02-012020-04-300001353283us-gaap:CostOfSalesMember2019-02-012019-04-300001353283us-gaap:ResearchAndDevelopmentExpenseMember2020-02-012020-04-300001353283us-gaap:ResearchAndDevelopmentExpenseMember2019-02-012019-04-300001353283us-gaap:SellingAndMarketingExpenseMember2020-02-012020-04-300001353283us-gaap:SellingAndMarketingExpenseMember2019-02-012019-04-300001353283us-gaap:GeneralAndAdministrativeExpenseMember2020-02-012020-04-300001353283us-gaap:GeneralAndAdministrativeExpenseMember2019-02-012019-04-3000013532832019-01-3100013532832019-04-300001353283us-gaap:CommonStockMember2020-01-310001353283us-gaap:CommonStockMember2019-01-310001353283us-gaap:CommonStockMember2020-02-012020-04-300001353283us-gaap:CommonStockMember2019-02-012019-04-300001353283us-gaap:CommonStockMember2020-04-300001353283us-gaap:CommonStockMember2019-04-300001353283us-gaap:AdditionalPaidInCapitalMember2020-01-310001353283us-gaap:AdditionalPaidInCapitalMember2019-01-310001353283us-gaap:AdditionalPaidInCapitalMember2020-02-012020-04-300001353283us-gaap:AdditionalPaidInCapitalMember2019-02-012019-04-300001353283us-gaap:AdditionalPaidInCapitalMember2020-04-300001353283us-gaap:AdditionalPaidInCapitalMember2019-04-300001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-310001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-01-310001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-02-012020-04-300001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-02-012019-04-300001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-04-300001353283us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-04-300001353283us-gaap:RetainedEarningsMember2020-01-310001353283us-gaap:RetainedEarningsMember2019-01-310001353283us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201602Member2020-01-310001353283us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201602Member2019-01-310001353283us-gaap:RetainedEarningsMember2020-02-012020-04-300001353283us-gaap:RetainedEarningsMember2019-02-012019-04-300001353283us-gaap:RetainedEarningsMember2020-04-300001353283us-gaap:RetainedEarningsMember2019-04-30splk:segment0001353283srt:MinimumMember2020-02-012020-04-300001353283srt:MaximumMember2020-02-012020-04-300001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-04-300001353283us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-01-310001353283us-gaap:USTreasurySecuritiesMembersplk:InvestmentsCurrentMember2020-04-300001353283us-gaap:CorporateBondSecuritiesMembersplk:InvestmentsCurrentMember2020-04-300001353283us-gaap:USTreasurySecuritiesMemberus-gaap:CashAndCashEquivalentsMember2020-01-310001353283us-gaap:USTreasurySecuritiesMembersplk:InvestmentsCurrentMember2020-01-310001353283us-gaap:CorporateBondSecuritiesMembersplk:InvestmentsCurrentMember2020-01-310001353283us-gaap:CommercialPaperMembersplk:InvestmentsCurrentMember2020-01-310001353283splk:InvestmentsNoncurrentMemberus-gaap:CorporateBondSecuritiesMember2020-01-310001353283us-gaap:CorporateBondSecuritiesMember2020-04-300001353283us-gaap:USTreasurySecuritiesMember2020-01-310001353283us-gaap:CorporateBondSecuritiesMember2020-01-31xbrli:pure0001353283srt:MinimumMember2020-04-300001353283srt:MaximumMember2020-04-300001353283us-gaap:ComputerEquipmentMember2020-04-300001353283us-gaap:ComputerEquipmentMember2020-01-310001353283us-gaap:FurnitureAndFixturesMember2020-04-300001353283us-gaap:FurnitureAndFixturesMember2020-01-310001353283us-gaap:LeaseholdImprovementsMember2020-04-300001353283us-gaap:LeaseholdImprovementsMember2020-01-310001353283splk:LeaseholdImprovementsNotInServiceMember2020-04-300001353283splk:LeaseholdImprovementsNotInServiceMember2020-01-310001353283country:US2020-04-300001353283country:US2020-01-310001353283splk:InternationalMember2020-04-300001353283splk:InternationalMember2020-01-310001353283splk:SignalFxMember2019-10-010001353283splk:SignalFxMember2019-10-012019-10-010001353283splk:SignalFxMember2020-02-012020-04-300001353283splk:SignalFxMemberus-gaap:DevelopedTechnologyRightsMember2019-10-010001353283splk:SignalFxMemberus-gaap:DevelopedTechnologyRightsMember2019-10-012019-10-010001353283us-gaap:CustomerRelationshipsMembersplk:SignalFxMember2019-10-010001353283us-gaap:CustomerRelationshipsMembersplk:SignalFxMember2019-10-012019-10-010001353283us-gaap:OtherIntangibleAssetsMembersplk:SignalFxMember2019-10-010001353283us-gaap:OtherIntangibleAssetsMembersplk:SignalFxMember2019-10-012019-10-010001353283splk:OmnitionMember2019-09-130001353283splk:OmnitionMember2019-09-132019-09-130001353283splk:OmnitionMember2020-02-012020-04-300001353283splk:OmnitionMemberus-gaap:DevelopedTechnologyRightsMember2019-09-130001353283splk:OmnitionMemberus-gaap:DevelopedTechnologyRightsMember2019-09-132019-09-130001353283splk:StreamlioMember2019-11-010001353283splk:StreamlioMember2019-11-012019-11-010001353283splk:StreamlioMember2020-02-012020-04-300001353283splk:StreamlioMemberus-gaap:DevelopedTechnologyRightsMember2019-11-010001353283splk:StreamlioMemberus-gaap:DevelopedTechnologyRightsMember2019-11-012019-11-010001353283us-gaap:DevelopedTechnologyRightsMember2020-04-300001353283us-gaap:DevelopedTechnologyRightsMember2020-02-012020-04-300001353283us-gaap:CustomerRelationshipsMember2020-04-300001353283us-gaap:CustomerRelationshipsMember2020-02-012020-04-300001353283us-gaap:OtherIntangibleAssetsMember2020-04-300001353283us-gaap:OtherIntangibleAssetsMember2020-02-012020-04-300001353283us-gaap:DevelopedTechnologyRightsMember2020-01-310001353283us-gaap:DevelopedTechnologyRightsMember2019-02-012020-01-310001353283us-gaap:CustomerRelationshipsMember2020-01-310001353283us-gaap:CustomerRelationshipsMember2019-02-012020-01-310001353283us-gaap:OtherIntangibleAssetsMember2020-01-310001353283us-gaap:OtherIntangibleAssetsMember2019-02-012020-01-310001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2018-09-210001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Member2018-09-2100013532832018-09-212018-09-210001353283us-gaap:ConvertibleDebtMember2018-09-212018-09-210001353283us-gaap:ConvertibleDebtMember2018-09-210001353283us-gaap:ConvertibleDebtMember2018-09-180001353283us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:ConvertibleDebtMember2020-02-012020-04-300001353283us-gaap:ConvertibleDebtMember2020-02-012020-04-300001353283us-gaap:ConvertibleDebtMemberus-gaap:AdditionalPaidInCapitalMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2020-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Memberus-gaap:AdditionalPaidInCapitalMember2020-04-300001353283us-gaap:ConvertibleDebtMemberus-gaap:LiabilityMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2018-09-210001353283us-gaap:ConvertibleDebtMemberus-gaap:LiabilityMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Member2018-09-210001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2020-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Member2020-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2020-02-012020-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes0.50PercentDue2023Member2019-02-012019-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Member2020-02-012020-04-300001353283us-gaap:ConvertibleDebtMembersplk:ConvertibleSeniorNotes1.125PercentDue2025Member2019-02-012019-04-300001353283srt:MinimumMember2018-09-210001353283srt:MaximumMember2018-09-21splk:trading_day0001353283us-gaap:EmployeeStockOptionMember2020-01-310001353283us-gaap:EmployeeStockOptionMember2019-02-012020-01-310001353283us-gaap:RestrictedStockUnitsRSUMember2020-01-310001353283us-gaap:EmployeeStockOptionMember2020-02-012020-04-300001353283us-gaap:RestrictedStockUnitsRSUMember2020-02-012020-04-300001353283us-gaap:EmployeeStockOptionMember2020-04-300001353283us-gaap:RestrictedStockUnitsRSUMember2020-04-300001353283us-gaap:PerformanceSharesMember2020-02-012020-04-300001353283srt:MinimumMemberus-gaap:PerformanceSharesMember2020-02-012020-04-300001353283srt:MaximumMemberus-gaap:PerformanceSharesMember2020-02-012020-04-300001353283us-gaap:PerformanceSharesMember2020-04-300001353283splk:UnregisteredRestrictedStockMember2020-04-300001353283splk:UnregisteredRestrictedStockMember2020-02-012020-04-300001353283splk:UnregisteredRestrictedStockMember2020-01-310001353283us-gaap:MaintenanceMember2020-02-012020-04-300001353283us-gaap:MaintenanceMember2019-02-012019-04-300001353283country:US2020-02-012020-04-300001353283country:US2019-02-012019-04-300001353283splk:InternationalMember2020-02-012020-04-300001353283splk:InternationalMember2019-02-012019-04-300001353283us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembersplk:CustomerOneMember2020-02-012020-04-300001353283us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembersplk:CustomerOneMember2019-02-012019-04-300001353283us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembersplk:CustomerTwoMember2020-02-012020-04-300001353283us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMembersplk:CustomerTwoMember2019-02-012019-04-300001353283us-gaap:CustomerConcentrationRiskMembersplk:CustomerOneMemberus-gaap:AccountsReceivableMember2020-02-012020-04-300001353283us-gaap:CustomerConcentrationRiskMembersplk:CustomerOneMemberus-gaap:AccountsReceivableMember2019-02-012019-04-300001353283us-gaap:CustomerConcentrationRiskMembersplk:CustomerTwoMemberus-gaap:AccountsReceivableMember2020-02-012020-04-300001353283us-gaap:CustomerConcentrationRiskMembersplk:CustomerTwoMemberus-gaap:AccountsReceivableMember2019-02-012019-04-3000013532832020-05-012020-04-300001353283us-gaap:EmployeeStockOptionMember2020-02-012020-04-300001353283us-gaap:EmployeeStockOptionMember2019-02-012019-04-300001353283us-gaap:RestrictedStockUnitsRSUMember2020-02-012020-04-300001353283us-gaap:RestrictedStockUnitsRSUMember2019-02-012019-04-300001353283us-gaap:EmployeeStockMember2020-02-012020-04-300001353283us-gaap:EmployeeStockMember2019-02-012019-04-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q

 
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2020
 
OR
 
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE TRANSITION PERIOD FROM              TO
 
COMMISSION FILE NUMBER 001-35498
 ____________________________________________________

https://cdn.kscope.io/4e50711058264519aa5fe537766184eb-splk-20200430_g1.jpg
Splunk Inc.
(Exact name of registrant as specified in its charter)
_____________________________________________________
Delaware 86-1106510
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

270 Brannan Street
San Francisco, California 94107
(Address of principal executive offices)
(Zip Code)
 
(415) 848-8400
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareSPLKThe NASDAQ Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
 
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes No
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
 

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

There were 158,868,955 shares of the Registrant’s Common Stock issued and outstanding as of May 26, 2020.



Table of Contents
TABLE OF CONTENTS
 
  Page No.
Item 1.
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 6.
 



Table of Contents
PART I. FINANCIAL INFORMATION


Item 1. Financial Statements (Unaudited)

Splunk Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands, except share and per share amounts)April 30, 2020January 31, 2020
Assets  
Current assets  
Cash and cash equivalents$922,507  $778,653  
Investments, current834,067  976,508  
Accounts receivable, net645,151  838,743  
Prepaid expenses and other current assets127,443  129,839  
Deferred commissions, current100,013  99,072  
Total current assets2,629,181  2,822,815  
Investments, non-current17,142  35,370  
Accounts receivable, non-current335,427  468,934  
Operating lease right-of-use assets398,652  267,086  
Property and equipment, net168,221  156,928  
Intangible assets, net223,684  238,415  
Goodwill1,292,840  1,292,840  
Deferred commissions, non-current83,386  88,990  
Other assets75,735  68,093  
Total assets$5,224,268  $5,439,471  
Liabilities and Stockholders’ Equity      
Current liabilities      
Accounts payable$24,874  $18,938  
Accrued compensation186,558  286,159  
Accrued expenses and other liabilities179,568  177,822  
Deferred revenue, current769,044  829,377  
Total current liabilities1,160,044  1,312,296  
Convertible senior notes, net1,735,046  1,714,630  
Operating lease liabilities364,837  235,631  
Deferred revenue, non-current153,141  176,832  
Other liabilities, non-current1,145  653  
Total non-current liabilities2,254,169  2,127,746  
Total liabilities3,414,213  3,440,042  
Commitments and contingencies (Note 3 and 4)
Stockholders’ equity      
Common stock: $0.001 par value; 1,000,000,000 shares authorized; 158,841,311 shares issued and outstanding at April 30, 2020, and 157,787,548 shares issued and outstanding at January 31, 2020
158  157  
Accumulated other comprehensive loss(1,948) (5,312) 
Additional paid-in capital3,678,895  3,566,055  
Accumulated deficit(1,867,050) (1,561,471) 
Total stockholders’ equity1,810,055  1,999,429  
Total liabilities and stockholders’ equity$5,224,268  $5,439,471  

The accompanying notes are an integral part of these condensed consolidated financial statements.
2

Table of Contents
Splunk Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Three Months Ended April 30,
(In thousands, except per share amounts)20202019
Revenues
License$148,385  $202,862  
Cloud services112,152  62,055  
Maintenance and services173,540  159,933  
Total revenues434,077  424,850  
Cost of revenues (1)
License6,066  5,682  
Cloud services53,490  32,326  
Maintenance and services 69,061  57,815  
Total cost of revenues128,617  95,823  
Gross profit305,460  329,027  
Operating expenses (1)
Research and development192,124  129,290  
Sales and marketing 319,224  278,961  
General and administrative82,724  65,762  
Total operating expenses594,072  474,013  
Operating loss(288,612) (144,986) 
Interest and other income (expense), net
Interest income6,475  16,346  
Interest expense(24,437) (23,017) 
Other income (expense), net(674) (539) 
Total interest and other income (expense), net(18,636) (7,210) 
Loss before income taxes(307,248) (152,196) 
Income tax provision (benefit)(1,669) 3,233  
Net loss$(305,579) $(155,429) 
Basic and diluted net loss per share$(1.94) $(1.04) 
Weighted-average shares used in computing basic and diluted net loss per share157,534  149,060  
 
_________________________
(1) Amounts include stock-based compensation expense, as follows:  
Cost of revenues$13,202  $10,825  
Research and development68,569  41,268  
Sales and marketing56,474  50,268  
General and administrative20,573  20,702  


The accompanying notes are an integral part of these condensed consolidated financial statements.
3

Table of Contents
Splunk Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
 
 Three Months Ended April 30,
(In thousands)20202019
Net loss$(305,579) $(155,429) 
Other comprehensive income (loss)
Net unrealized gain on investments (net of tax)2,685  332  
Foreign currency translation adjustments679  (991) 
Total other comprehensive income (loss)3,364  (659) 
Comprehensive loss$(302,215) $(156,088) 

 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

Table of Contents
Splunk Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 Three Months Ended April 30,
(In thousands)20202019
Cash flows from operating activities  
Net loss$(305,579) $(155,429) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization20,494  13,415  
Amortization of deferred commissions26,878  30,032  
Amortization of investment premiums, net (accretion of discounts)(692) (2,859) 
Amortization of debt discount and issuance costs20,416  19,005  
Non-cash operating lease costs10,531  4,549  
Stock-based compensation158,818  123,063  
Disposal of property and equipment505    
Deferred income taxes(901) (20) 
Changes in operating assets and liabilities:
Accounts receivable, net327,099  184,358  
Prepaid expenses and other assets (4,846) (17,900) 
Deferred commissions(22,215) (23,452) 
Accounts payable 7,336  2,925  
Accrued compensation(97,709) (62,777) 
Accrued expenses and other liabilities(10,067) (7,665) 
Deferred revenue (84,024) (72,216) 
Net cash provided by operating activities 46,044  35,029  
Cash flows from investing activities
Purchases of investments(87,135) (289,425) 
Maturities of investments254,823  298,425  
Purchases of property and equipment(14,756) (14,900) 
Capitalized software development costs(3,548)   
Other investment activities(2,375) (375) 
Net cash provided by (used in) investing activities 147,009  (6,275) 
Cash flows from financing activities
Proceeds from the exercise of stock options1,418  360  
Taxes paid related to net share settlement of equity awards(49,228) (69,007) 
Net cash used in financing activities (47,810) (68,647) 
Effect of exchange rate changes on cash and cash equivalents(1,389) (1,043) 
Net increase (decrease) in cash and cash equivalents 143,854  (40,936) 
Cash and cash equivalents at beginning of period 778,653  1,876,165  
Cash and cash equivalents at end of period $922,507  $1,835,229  
Supplemental disclosures
Cash paid for income taxes$1,534  $8,316  
Cash paid for interest8,014  7,747  
Non-cash investing activities
Decrease in accrued purchases of property and equipment(1,639) (853) 
Vesting of early exercised options56    

The accompanying notes are an integral part of these condensed consolidated financial statements.
5

Table of Contents
Splunk Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 
Three Months Ended April 30,
(In thousands)20202019
Common stock
Balance, beginning of period$157  $149  
Vesting of restricted stock units1  1  
Balance, end of period$158  $150  
Additional paid-in capital
Balance, beginning of period$3,566,055  $2,754,858  
Stock-based compensation158,818  123,063  
Capitalized software development costs1,776    
Issuance of common stock upon exercise of options1,418  359  
Vesting of early exercised options56    
Taxes paid related to net share settlement of equity awards(49,228) (69,007) 
Balance, end of period$3,678,895  $2,809,273  
Accumulated other comprehensive loss
Balance, beginning of period$(5,312) $(2,506) 
Unrealized gain from investments (net of tax)2,685  332  
Net change in cumulative translation adjustments679  (991) 
Balance, end of period$(1,948) $(3,165) 
Accumulated deficit
Balance, beginning of period$(1,561,471) $(1,232,044) 
Cumulative-effect adjustment from adoption of ASU 2016-02  7,241  
Net loss(305,579) (155,429) 
Balance, end of period$(1,867,050) $(1,380,232) 
Total stockholders’ equity$1,810,055  $1,426,026  


The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Table of Contents
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
(1) Description of the Business and Significant Accounting Policies

Business

Splunk Inc. (“we,” “us,” “our”) provides innovative software solutions that ingest data from different sources including systems, devices and interactions, and turn that data into meaningful business insights across the organization. Our Data-to-Everything platform enables users to investigate, monitor, analyze and act on data regardless of format or source. Data is produced by nearly every software application and electronic device across an organization and contains a real-time record of various activities, such as business transactions, customer and user behavior, and security threats. Our Data-to-Everything platform helps organizations gain the value contained in data by delivering real-time information to enable operational decision making. We were incorporated in California in October 2003 and reincorporated in Delaware in May 2006.

Fiscal Year

Our fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ending January 31, 2021.
 
Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of January 31, 2020 was derived from audited financial statements, but does not include all disclosures required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended January 31, 2020, filed with the SEC on March 26, 2020.
 
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal 2021.

Reclassifications

Certain reclassifications have been made to prior period balances in order to conform to the current period presentation. “Cloud services” revenues have been reclassified from “Maintenance and services” revenues on our condensed consolidated statements of operations and “Non-cash operating lease costs” have been reclassified from “Accrued expenses and other liabilities” in our condensed consolidated statement of cash flows. These reclassifications had no impact on our previously reported total revenues and net cash flows from operating, investing, or financing activities.

Use of Estimates
 
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods covered by the financial statements and accompanying notes. In particular, we make estimates with respect to the stand-alone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, uncollectible accounts receivable, the assessment of the useful life and recoverability of long-lived assets (property and equipment, goodwill and identified intangibles), the period of benefit for deferred commissions, stock-based compensation expense, the fair value of assets acquired and liabilities assumed for business combinations, income taxes, the discount rate used for operating leases, and contingencies. Actual results could differ from those estimates.

7

Table of Contents
COVID-19
 
The worldwide spread of COVID-19 has resulted in a global slowdown of economic activity which is likely to decrease demand for a broad variety of goods and services, while also disrupting sales channels, marketing activities and general business operations for an unknown period of time until the disease is contained. At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain, and as of the date of issuance of those financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, judgments or adjust the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements.

Segments

We operate our business as one operating segment: the development and marketing of software solutions that enable our customers to gain real-time business insights by harnessing the value of their data. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.

Principles of Consolidation
 
The accompanying unaudited condensed consolidated financial statements include the accounts of Splunk Inc. and its direct and indirect wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.

Foreign Currency

The functional currency of our foreign subsidiaries is their respective local currency, with the exception of our United Kingdom subsidiary, for which the functional currency is the U.S. dollar. Translation adjustments arising from the use of differing exchange rates from period to period are included in “Accumulated other comprehensive income (loss)” within the condensed consolidated statements of stockholders’ equity. Foreign currency transaction gains and losses are included in “Other income (expense), net.” All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.

Revenue Recognition

We generate revenues primarily in the form of software license and related maintenance fees, cloud services and other service fees. Licenses for on-premises software are either term or perpetual licenses and provide the customer with a right to use the software. When a term license is purchased, maintenance is bundled with the license for the term of the license period. Typically, when purchasing a perpetual license, a customer also purchases one year of maintenance for which we charge a percentage of the license fee. Cloud services are provided on a subscription basis and give our customers access to our cloud solutions, which include related customer support. Other services include training and professional services that are not integral to the functionality of the licenses or cloud services.

Our contracts with customers often contain multiple performance obligations, which may include a combination of on-premise software licenses, related maintenance and support services, cloud services and professional services including training. We apply significant judgment in identifying and accounting for each performance obligation, as a result of evaluating the terms and conditions in contracts. For these contracts, we account for on-premise licenses, maintenance and support, cloud services and other services as separate performance obligations as they are each distinct. Revenue is recognized when the performance obligations are satisfied. We satisfy our obligation and recognize revenue for on-premise licenses upon transfer of control of the software, which occurs at delivery of the license key to customers, or when the license term commences, if later. We satisfy our cloud service performance obligation over the associated contract term and recognize the associated revenue ratably over the term of the contract once access is provided to the customer, consistent with the pattern of benefit to the customer of such services. We satisfy our maintenance and support performance obligations and recognize revenue ratably over the maintenance and support term, consistent with the pattern of benefit to the customer of such services. Professional services and training are either provided on a time and material basis or over a contract term. We satisfy our professional services and training performance obligations and recognize the associated revenue as services are delivered. With respect to contracts that
8

Table of Contents
include customer acceptance provisions, we recognize revenue upon customer acceptance. Our policy is to record revenues net of any applicable sales, use or excise taxes.

Customers can purchase our products under different pricing options. Regardless of the pricing option selected, the consideration for our license and cloud contracts is fixed and does not result in variable consideration. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on an observable standalone selling price when it is available, as well as other factors, including the price charged to customers, our discounting practices, and our overall pricing objectives, while maximizing observable inputs. In situations where pricing is highly variable, we estimate the SSP using the residual approach.

A receivable is recorded when we have an unconditional right to payment, either because we satisfied a performance obligation prior to receiving payment from the customer or we have a non-cancelable contract that has been invoiced in advance in accordance with our standard payment terms. Most of our multi-year on-premises term license and cloud services contracts are invoiced annually. A receivable for multi-year cloud services is generally recorded upon invoicing. A receivable for multi-year on-premises term licenses is recorded upon delivery, whether or not invoiced, to the extent we have an unconditional right to receive payment in the future related to those licenses. The non-current portion of these receivables, primarily consisting of unbilled receivables from on-premises term licenses, is included in “Accounts receivable, non-current” on our condensed consolidated balance sheets.

Payment terms and conditions vary by contract type, although our standard payment terms generally require payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of payment, we have determined our contracts do not generally include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing.

Deferred revenue is recorded when we invoice a contract or deliver a license prior to recognizing revenue. It is comprised of balances related to maintenance, cloud services, training and professional services invoiced at the beginning of each service period, as well as licenses that we delivered prior to the license term commencing.

9

Table of Contents
Recently Adopted Accounting Standards
 
StandardDescriptionEffective DateEffect on the Condensed Consolidated Financial Statements
(or Other Significant Matters)
Accounting Standards Update (“ASU”) No. 2016-13 (Topic 326), Financial Instruments - Credit LossesThe amendments in this update require a financial asset (or a group of financial assets) measured at an amortized cost basis to be presented at the net amount expected to be collected. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans and available-for-sale securities.We adopted this new standard as of February 1, 2020, using the modified prospective method recognized as of the date of initial application. Under this method, we are not required to restate or disclose the effects of applying Topic 326 for comparative periods.The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.

Under the new standard, we assess credit losses on accounts receivable by taking into consideration past collection experience, credit quality of the customer, age of the receivable balance, current economic conditions, and forecasts that affect the collectability of the reported amount.

With respect to available-for-sale debt securities, when the fair value of a security is below its amortized cost, the amortized cost will be written down to its fair value if it is more likely than not that management is required to sell the impaired security before recovery of its amortized basis, or management has the intention to sell the security. If neither of these conditions are met, we determine whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in Other income (expense), net on our condensed consolidated statements of operations. Non-credit related impairment losses are reported as a separate component on our consolidated statements of comprehensive income (loss).

Recently Issued Accounting Pronouncements
 
StandardDescriptionEffective DateEffect on the Condensed Consolidated Financial Statements
(or Other Significant Matters)
ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income TaxesThe amendments in this ASU simplify the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740 and clarifying and amending existing guidance to improve consistent application. Most amendments within this standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis.First quarter of fiscal 2022.We are currently evaluating the impact of this standard on our condensed consolidated financial statements.

(2) Investments and Fair Value Measurements
 
The carrying amounts of certain of our financial instruments including cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term maturities.
 
Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels that are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:
 
10

Table of Contents
Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.
 
Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
 
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The following table sets forth the fair value of our financial assets that were measured on a recurring basis:
 
 April 30, 2020January 31, 2020
(In thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:        
Money market funds$329,321  $  $  $329,321  $138,999  $  $  $138,999  
U.S. treasury securities  730,619    730,619    875,180    875,180  
Corporate bonds  103,448    103,448    124,972    124,972  
Commercial paper          4,994    4,994  
Other    2,000  2,000      2,000  2,000  
Reported as:        
Assets:        
Cash and cash equivalents   $329,321     $147,034  
Investments, current834,067  976,508  
Investments, non-current 2,000  22,603  
Total   $1,165,388     $1,146,145  

Our investments in money market funds are measured at fair value on a recurring basis. These money market funds are actively traded and reported daily through a variety of sources. The fair value of the money market fund investments is classified as Level 1.

We invest in U.S. treasury securities, corporate bonds and commercial paper, which we have classified as available-for-sale investments. The following table presents our available-for-sale investments as of April 30, 2020:
 
(In thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Investments, current:
U.S. treasury securities$726,104  $4,515  $  $730,619  
Corporate bonds102,772  677  (1) 103,448  
Total available-for-sale investments$828,876  $5,192  $(1) $834,067  

The following table presents our available-for-sale investments as of January 31, 2020:
 
11

Table of Contents
(In thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalents:
U.S. treasury securities$8,035  $  $  $8,035  
Investments, current:
U.S. treasury securities866,578  590  (23) 867,145  
Corporate bonds103,848  521    104,369  
Commercial paper4,991  3    4,994  
Investments, non-current:
Corporate bonds20,444  159    20,603  
Total available-for-sale investments$1,003,896  $1,273  $(23) $1,005,146  

The following table presents the fair values and unrealized losses of our available-for-sale investments classified by length of time that the securities have been in a continuous unrealized loss position:
 
Less than 12 Months12 Months or GreaterTotal
(In thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
April 30, 2020
Corporate bonds$  $  $3,500  $(1) $3,500  $(1) 
Total$  $  $3,500  $(1) $3,500  $(1) 
January 31, 2020
U.S. treasury securities$129,149  $(23) $  $  $129,149  $(23) 
Corporate bonds7,504        7,504    
Total$136,653  $(23) $  $  $136,653  $(23) 

As of April 30, 2020 and January 31, 2020, we did not consider any of our investments to be impaired.

The contractual maturities of our investments are as follows:
 
(In thousands)April 30, 2020
Due within one year$834,067  
Total$834,067  

Investments with maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with maturities greater than 12 months from the balance sheet date are classified as long-term assets.

Convertible Senior Notes

Refer to Note 7 “Convertible Senior Notes” for details regarding the fair value of our convertible senior notes.

Equity Investments

Our equity investments are included in “Investments, non-current” on our condensed consolidated balance sheets. The following table provides a summary of our equity investments:
 
(In thousands)April 30, 2020January 31, 2020
Equity investments without readily determinable fair values$12,744  $10,744  
Equity investments under the equity method of accounting2,398  2,023  
Total$15,142  $12,767  

12

Table of Contents
(3) Commitments and Contingencies
 
Legal Proceedings
 
We are subject to certain routine legal and regulatory proceedings, as well as demands and claims that arise in the normal course of our business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In our opinion, resolution of any pending claims (either individually or in the aggregate) is not expected to have a material adverse impact on our condensed consolidated results of operations, cash flows or financial position, nor is it possible to provide an estimated amount of any such loss. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect our future financial position, results of operations or cash flows, or all, in a particular period.

Indemnification Arrangements
 
During the ordinary course of business, we may indemnify, hold harmless and agree to reimburse for losses suffered or incurred, our customers, vendors, and each of their affiliates for certain intellectual property infringement and other claims by third parties with respect to our offerings, in connection with our commercial license arrangements or related to general business dealings with those parties.

As permitted under Delaware law, we have entered into indemnification agreements with our officers, directors and certain employees, indemnifying them for certain events or occurrences while they serve as our officers or directors or those of our direct and indirect subsidiaries.
 
To date, there have not been any costs incurred in connection with such indemnification obligations; therefore, there is no accrual of such amounts as of April 30, 2020. We are unable to estimate the maximum potential impact of these indemnifications on our future results of operations.

(4) Leases
 
We have operating leases for office space, used for our business operations and sales support, and data centers, used primarily for product development.

Operating lease costs were $17.8 million, excluding short-term lease costs of $3.2 million. Operating lease costs also exclude variable lease costs and sublease income which were immaterial during the three months ended April 30, 2020. Operating lease costs were $11.3 million, excluding short-term leases, variable lease costs and sublease income, which were immaterial, during the three months ended April 30, 2019.

Our lease term and the discount rate related to our operating lease right-of-use assets and related lease liabilities are as follows:
 
April 30, 2020
Weighted-average remaining lease term (in years)8.95
Weighted-average discount rate5.98 %

As of April 30, 2020, the maturity of lease liabilities under our non-cancelable operating leases were as follows:
 
13

Table of Contents
Fiscal Period (In thousands)Future Payments
Remaining fiscal 2021$37,046  
Fiscal 202270,727  
Fiscal 202366,273  
Fiscal 202455,545  
Fiscal 202549,155  
Thereafter280,797  
Total lease payments559,543  
Less imputed interest(137,018) 
Total current and non-current operating lease liabilities (1)
$422,525  
_________________________
(1) The current portion of our operating lease liabilities is included in “Accrued expenses and other liabilities” on our condensed consolidated balance sheets.

As of April 30, 2020, we have entered into leases, primarily for office space that have not yet commenced, with future lease payments of $9.1 million that are not reflected in the above. These leases will commence between fiscal 2021 and fiscal 2022 with non-cancelable lease terms of 2 years to 11 years.

Supplemental Disclosures
 
Three Months Ended April 30,
(In thousands)20202019
Cash paid for operating lease liabilities$7,533  $9,751  
Operating lease liabilities arising from obtaining right-of-use assets143,890  9,916  

(5) Property and Equipment
 
Property and equipment are stated at cost, net of accumulated depreciation and amortization. These assets are depreciated and amortized using the straight-line method over their estimated useful lives. Property and equipment consisted of the following:
 
(In thousands)April 30, 2020January 31, 2020
Computer equipment and software$100,361  $109,892  
Furniture and fixtures31,391  28,568  
Leasehold and building improvements (1)
161,012  141,965  
Property and equipment, gross292,764  280,425  
Less: accumulated depreciation and amortization(124,543) (123,497) 
Property and equipment, net$168,221  $156,928  
_________________________
(1)