Company: VEEV
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001393052-25-000022
Chunk: 89

Company: VEEVA SYSTEMS INC
Filing Date: 2025-03-24
Form: 10-K
Item: Item 1A
Chunk 89
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. 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 evaluate tax positions for recognition using a more likely than not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. We classify unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as “other non-current liabilities” in the consolidated balance sheets. As of January 31, 2025, the total amount of gross unrecognized tax benefits was $39 million, of which $25 million, if recognized, would favorably impact our effective 

Veeva Systems Inc. | Form 10-K67

Table of Contents

tax rate. The aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows for the periods shown (in thousands):Fiscal year ended January 31,202520242023Beginning balance$39,737 $30,713 $25,241 Increases related to tax positions taken during the prior period2 7,385 971 Increases related to tax positions taken during the current period4,242 10,131 4,934 Decreases related to tax positions taken during the prior period(101)(17)(137)Lapse of statute of limitations(4,478)(8,475)(296)Ending balance$39,402 $39,737 $30,713 Our policy is to classify interest and penalties associated with unrecognized tax benefits as a component of the provision for income taxes. Accrued interest and penalties included in our liability related to unrecognized tax benefits were $3 million, $2 million, and $3 million as of January 31, 2025, 202