Company: VEEV
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001393052-25-000022
Chunk: 274

Company: VEEVA SYSTEMS INC
Filing Date: 2025-03-24
Form: 10-K
Item: Item 3
Chunk 274
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 derived intangible income deduction (FDII)(30,535)(15,489)(15,811)Release of income tax reserves(2,531)(9,201)(293)Other(1,339)6,282 3,379 Income tax provision$205,243 $62,318 $21,390 The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities related to the following (in thousands):January 31,20252024Deferred tax assets:Capitalized expenditures$326,533 $228,845 Stock-based compensation68,466 49,710 Tax credit carryforward64,536 65,307 Lease liabilities19,737 13,967 Other (1)14,781 18,360 Gross deferred tax assets494,053 376,189 Valuation allowance(77,056)(79,056)Total deferred tax assets416,997 297,133 Deferred tax liabilities:Intangible assets(23,305)(27,019)Lease right-of-use assets(16,675)(11,410)Other (1)(33,685)(27,293)Total deferred tax liabilities(73,665)(65,722)Net deferred tax assets$343,332 $231,411 (1) Prior period balances were adjusted to conform with current period presentation.In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences and projected future taxable income. Based on a review of such information, management believes that it is possible that some portion of deferred tax assets will not be realized as a future benefit and therefore has recorded a valuation allowance. The valuation allowance at the end of January 31, 2025 was primarily related to certain U.S. state deferred tax assets.As of January 31, 2025, the net operating loss carryforwards for state and foreign income tax purposes were approximately $13 million and $2 million, respectively, and will begin to expire in 2031 and 2030, respectively. As of January 31, 2025, we had $3 million of federal and state capital loss carryforwards available to offset future capital gains. The federal and state capital losses begin to expire in 2029.As of January 31, 2025, we had $78 million of California research and development tax credits available to offset future taxes which do not expire.We