Company: VEEV
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001393052-25-000022
Chunk: 196

Company: VEEVA SYSTEMS INC
Filing Date: 2025-03-24
Form: 10-K
Item: Item 1A
Chunk 196
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. | Form 10-K65

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Balance Sheet HedgesWe enter into foreign currency forward contracts in order to hedge our foreign currency exposure. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore, we account for them at fair value with changes in the fair value recorded as a component of other income, net in our consolidated statements of comprehensive income. Cash flows from such forward contracts are classified as operating activities. Realized and unrealized foreign currency gains and losses on hedges were immaterial for the fiscal years ended January 31, 2025, 2024, and 2023.The fair value of our outstanding derivative instruments is summarized below (in thousands): January 31,20252024Notional amount of foreign currency derivative contracts$130,122 $201,407 Fair value of foreign currency derivative contracts$130,552 $201,024 

Note 8. Income Taxes

The components of income before income taxes by U.S. and foreign jurisdictions were as follows for the periods shown (in thousands):Fiscal year ended January 31,202520242023United States$890,066 $546,837 $482,885 Foreign29,315 41,186 26,211 Total$919,381 $588,023 $509,096 The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction.Provision for income taxes consisted of the following for the periods shown (in thousands):Fiscal year ended January 31,202520242023Current provision:Federal$243,660 $126,174 $110,610 State62,953 29,361 29,775 Foreign10,903 12,157 8,507 Total current provision317,516 167,692 $148,892 Deferred benefitFederal(90,035)(87,651)(98,923)State(18,569)(15,739)(20,755)Foreign(3,669)(1,984)(7,824)Total deferred benefit(112,273)(105,374)$(127,502)Income tax provision$205,243 $62,318 $21,390 

66Veeva Systems Inc. | Form 10-K

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Provision for income taxes differed from the