Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jul. 31, 2018 | Aug. 30, 2018 | Jan. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Palo Alto Networks Inc | ||
Entity Central Index Key | 1,327,567 | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 93,822,985 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 14,002,012,218 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,506.9 | $ 744.3 |
Short-term investments | 896.5 | 630.7 |
Accounts receivable, net of allowance for doubtful accounts of $1.2 and $0.7 at July 31, 2018 and July 31, 2017, respectively | 467.3 | 432.1 |
Prepaid expenses and other current assets | 261.3 | 169.2 |
Total current assets | 4,132 | 1,976.3 |
Property and equipment, net | 273.1 | 211.1 |
Long-term investments | 547.5 | 789.3 |
Goodwill | 522.8 | 238.8 |
Intangible assets, net | 140.8 | 53.7 |
Other assets | 206.8 | 169.1 |
Total assets | 5,823 | 3,438.3 |
Current liabilities: | ||
Accounts payable | 49.4 | 35.5 |
Accrued compensation | 163.7 | 117.5 |
Accrued and other liabilities | 107 | 79.9 |
Deferred revenue | 1,268.9 | 968.4 |
Convertible Debt, Current | 550.4 | 0 |
Total current liabilities | 2,139.4 | 1,201.3 |
Convertible senior notes, net | 1,369.7 | 524.7 |
Long-term deferred revenue | 1,096 | 805.1 |
Other long-term liabilities | 229.6 | 147.6 |
Commitments and contingencies (Note 9) | ||
Temporary Equity, Carrying Amount, Attributable to Parent | 21.9 | 0 |
Stockholders’ equity: | ||
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at July 31, 2018 and July 31, 2017 | 0 | 0 |
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 91.5 and 90.5 shares issued and outstanding at July 31, 2017 and July 31, 2016, respectively | 1,967.4 | 1,599.7 |
Accumulated other comprehensive loss | (16.4) | (3.4) |
Accumulated deficit | (984.6) | (836.7) |
Total stockholders’ equity | 966.4 | 759.6 |
Total liabilities, temporary equity, and stockholders’ equity | $ 5,823 | $ 3,438.3 |
CONSOLIDATED BALANCE SHEETS (P
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 1.2 | $ 0.7 |
Stockholders’ equity: | ||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100 | 100 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common Stock, shares issued (in shares) | 93.6 | 91.5 |
Common Stock, share outstanding (in shares) | 93.6 | 91.5 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue: | |||||||||||
Product | $ 267.6 | $ 215.2 | $ 202.2 | $ 186.5 | $ 212.3 | $ 164.2 | $ 168.8 | $ 163.8 | $ 871.5 | $ 709.1 | $ 670.8 |
Subscription and support | 390.5 | 351.9 | 340.2 | 319 | 296.8 | 267.6 | 253.8 | 234.3 | 1,401.6 | 1,052.5 | 707.7 |
Total revenue | 658.1 | 567.1 | 542.4 | 505.5 | 509.1 | 431.8 | 422.6 | 398.1 | 2,273.1 | 1,761.6 | 1,378.5 |
Cost of revenue: | |||||||||||
Product | 82 | 68.9 | 63.9 | 57.6 | 63.7 | 49.7 | 45.8 | 42.2 | 272.4 | 201.4 | 175.4 |
Subscription and support | 102.7 | 91 | 95.4 | 83.8 | 74.8 | 74 | 67.4 | 59 | 372.9 | 275.2 | 194.6 |
Total cost of revenue | 184.7 | 159.9 | 159.3 | 141.4 | 138.5 | 123.7 | 113.2 | 101.2 | 645.3 | 476.6 | 370 |
Total gross profit | 473.4 | 407.2 | 383.1 | 364.1 | 370.6 | 308.1 | 309.4 | 296.9 | 1,627.8 | 1,285 | 1,008.5 |
Operating expenses: | |||||||||||
Research and development | 110.3 | 99.6 | 96.6 | 94.2 | 87.3 | 86 | 89.9 | 84.2 | 400.7 | 347.4 | 284.2 |
Sales and marketing | 297.8 | 277.1 | 265 | 258.5 | 245.4 | 226.9 | 226.7 | 220.1 | 1,098.4 | 919.1 | 743.2 |
General and administrative | 56.7 | 82.1 | 53.3 | 65.7 | 65.2 | 44.3 | 47.2 | 41.6 | 257.8 | 198.3 | 138.4 |
Total operating expenses | 464.8 | 458.8 | 414.9 | 418.4 | 397.9 | 357.2 | 363.8 | 345.9 | 1,756.9 | 1,464.8 | 1,165.8 |
Operating loss | 8.6 | (51.6) | (31.8) | (54.3) | (27.3) | (49.1) | (54.4) | (49) | (129.1) | (179.8) | (157.3) |
Interest expense | (10.4) | (6.5) | (6.4) | (6.3) | (6.2) | (6.2) | (6.1) | (6) | (29.6) | (24.5) | (23.4) |
Other income, net | 10.2 | 8.6 | 4.9 | 4.8 | 2.9 | 2.1 | 2.7 | 2.5 | 28.5 | 10.2 | 8.4 |
Loss before income taxes | 8.4 | (49.5) | (33.3) | (55.8) | (30.6) | (53.2) | (57.8) | (52.5) | (130.2) | (194.1) | (172.3) |
Provision for income taxes | 10.7 | (2.8) | 1.6 | 8.2 | 7.6 | 7.7 | 2.8 | 4.4 | 17.7 | 22.5 | 20.4 |
Net loss | $ (2.3) | $ (46.7) | $ (34.9) | $ (64) | $ (38.2) | $ (60.9) | $ (60.6) | $ (56.9) | $ (147.9) | $ (216.6) | $ (192.7) |
Net loss per share, basic and diluted | $ (0.02) | $ (0.51) | $ (0.38) | $ (0.70) | $ (0.42) | $ (0.67) | $ (0.67) | $ (0.63) | $ (1.61) | $ (2.39) | $ (2.21) |
Weighted-average shares used to compute net loss per share, basic and diluted | 91.7 | 90.6 | 87.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Net loss | $ (147.9) | $ (216.6) | $ (192.7) |
Other comprehensive income (loss), net of tax: | |||
Change in unrealized gains (losses) on investments | (7.5) | (4.3) | 1.1 |
Change in unrealized gains (losses) on cash flow hedges | (5.5) | (0.1) | 0 |
Other comprehensive income (loss) | (13) | (4.4) | 1.1 |
Comprehensive loss | $ (160.9) | $ (221) | $ (191.6) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Common stock, beginning balance (in shares) at Jul. 31, 2015 | 84.8 | ||||
Beginning balance at Jul. 31, 2015 | $ 559.7 | $ 988.7 | $ (0.1) | $ (428.9) | |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (192.7) | (192.7) | |||
Other comprehensive income (loss) | 1.1 | 1.1 | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 5.7 | ||||
Issuance of common stock in connection with employee equity incentive plans | 45.8 | 45.8 | |||
Share-based compensation for equity based awards | 393.1 | 393.1 | |||
Temporary equity reclassification | 87.9 | 87.9 | |||
Common stock, ending balance (in shares) at Jul. 31, 2016 | 90.5 | ||||
Ending balance at Jul. 31, 2016 | 894.9 | 1,515.5 | 1 | (621.6) | |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (216.6) | (216.6) | |||
Other comprehensive income (loss) | (4.4) | (4.4) | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 4.3 | ||||
Issuance of common stock in connection with employee equity incentive plans | $ 46.3 | 46.3 | |||
Repurchase and retirement of common stock (in shares) | (3.3) | (3.3) | |||
Repurchase and retirement of common stock | $ (420.1) | (420.1) | |||
Taxes paid related to net share settlement of equity awards | (21.4) | (21.4) | |||
Share-based compensation for equity based awards | $ 477.4 | 477.4 | |||
Common stock, ending balance (in shares) at Jul. 31, 2017 | 91.5 | 91.5 | |||
Ending balance at Jul. 31, 2017 | $ 759.6 | 1,599.7 | (3.4) | (836.7) | |
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative-effect adjustment from adoption of new accounting pronouncement | 3.5 | 2 | 1.5 | ||
Net loss | (147.9) | (147.9) | |||
Other comprehensive income (loss) | (13) | (13) | |||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 3.8 | ||||
Issuance of common stock in connection with employee equity incentive plans | $ 55 | 55 | |||
Repurchase and retirement of common stock (in shares) | (1.7) | (1.7) | |||
Repurchase and retirement of common stock | $ (250) | (250) | |||
Taxes paid related to net share settlement of equity awards | (43.7) | (43.7) | |||
Share-based compensation for equity based awards | 502.5 | 502.5 | |||
Temporary equity reclassification | (21.9) | (21.9) | |||
Equity component of convertible senior notes, net | 312.4 | 312.4 | |||
Issuance of warrants | 145.4 | 145.4 | |||
Purchase of note hedges | $ (332) | (332) | |||
Common stock, ending balance (in shares) at Jul. 31, 2018 | 93.6 | 93.6 | |||
Ending balance at Jul. 31, 2018 | $ 966.4 | $ 1,967.4 | $ (16.4) | $ (984.6) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (147.9) | $ (216.6) | $ (192.7) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Share-based compensation for equity based awards | 496.7 | 474.5 | 392.8 |
Depreciation and amortization | 96.4 | 59.8 | 42.8 |
Cease-use loss and asset impairment related to facility exit | 41.1 | 20.9 | 0 |
Amortization of debt discount and debt issuance costs | 28.8 | 24.5 | 23.4 |
Amortization of investment premiums, net of accretion of purchase discounts | 0.5 | 2.7 | 3 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable, net | (33) | (82.9) | (136.4) |
Prepaid expenses and other assets | (125.5) | (48.1) | (31.2) |
Accounts payable | 3.7 | 5.9 | 15.1 |
Accrued compensation | 44.2 | 42.8 | (6.3) |
Accrued and other liabilities | 44.9 | 53.2 | 21 |
Deferred revenue | 587.1 | 531.8 | 527.1 |
Net cash provided by operating activities | 1,037 | 868.5 | 658.6 |
Cash flows from investing activities | |||
Purchases of investments | (725.7) | (995.9) | (1,037) |
Proceeds from sales of investments | 0 | 0 | 141.9 |
Proceeds from maturities of investments | 691.8 | 777.4 | 628.7 |
Business acquisitions, net of cash acquired | (374.1) | (90.7) | 0 |
Purchases of property, equipment, and other assets | (112) | (163.4) | (72.5) |
Net cash used in investing activities | (520) | (472.6) | (338.9) |
Cash flows from financing activities | |||
Proceeds from borrowings on convertible senior notes, net | 1,682.4 | 0 | 0 |
Proceeds from issuance of warrants | 145.4 | 0 | 0 |
Purchase of note hedges | (332) | 0 | 0 |
Repurchases of common stock | (259.1) | (411) | 0 |
Proceeds from sales of shares through employee equity incentive plans | 52.6 | 46.4 | 45.3 |
Payments for taxes related to net share settlement of equity awards | (43.7) | (21.4) | 0 |
Payment of deferred consideration related to prior year business acquisition | 0 | 0 | (6.4) |
Net cash provided by (used in) financing activities | 1,245.6 | (386) | 38.9 |
Net increase in cash and cash equivalents | 1,762.6 | 9.9 | 358.6 |
Cash and cash equivalents—beginning of period | 744.3 | 734.4 | 375.8 |
Cash and cash equivalents—end of period | 2,506.9 | 744.3 | 734.4 |
Noncash investing and financing activities | |||
Property and equipment acquired through lease incentives | 37.8 | 0 | 11.5 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | $ 11.2 | $ 9 | $ 7.1 |
Description of Business, Basis
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of business, basis of presentation, principles of consolidation, and summary of significant accounting policies | Description of Business and Summary of Significant Accounting Policies Description of Business Palo Alto Networks, Inc. (the “Company,” “we,” “us,” or “our”), located in Santa Clara, California, was incorporated in March 2005 under the laws of the State of Delaware and commenced operations in April 2005. We offer a security operating platform that empowers enterprises, service providers, and government entities to secure their organizations by safely enabling applications and data running in their networks, on their endpoints, and in the cloud, and by preventing breaches that stem from targeted cyberattacks. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) . The consolidated financial statements include all adjustments necessary for a fair presentation of our annual results. All adjustments are of a normal recurring nature. Certain prior-period amounts have been reclassified to conform to current-period presentation. Principles of Consolidation The consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such management estimates include, but are not limited to the best estimate of selling price for our products and services, share-based compensation, fair value of assets acquired and liabilities assumed in business combinations, the assessment of recoverability of our property and equipment, identified intangibles and goodwill, future taxable income, manufacturing partner and supplier liabilities, fair value of debt component of convertible notes, cease-use loss related to facility exit, and loss contingencies. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ materially from those estimates. Concentrations Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, accounts receivable, and derivative contracts. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and also enter into master netting arrangements, which permit net settlement of transactions with the same counterparty. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes. Our accounts receivables are primarily derived from our distributors representing various geographical locations. We perform ongoing credit evaluations and generally do not require collateral on accounts receivable. We maintain an allowance for doubtful accounts for estimated potential credit losses. As of July 31, 2018 , four distributors represented 27.9% , 21.5% , 11.5% , and 11.0% of our gross accounts receivable. For fiscal 2018, three distributors represented 33.4% , 23.0% , and 10.7% of our total revenue. We rely on an electronics manufacturing services provider (“EMS provider”) to assemble most of our products and sole source component suppliers for a certain number of our components. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income (loss). Our other comprehensive income (loss) includes unrealized gains and losses on available-for-sale investments and unrealized gains and losses on cash flow hedges. Foreign Currency Transactions The functional currency of our foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies have been remeasured into U.S. dollars using the exchange rates in effect at the balance sheet dates. Foreign currency denominated income and expenses have been remeasured using the average exchange rates in effect during each period. Foreign currency remeasurement gains and losses and foreign currency transaction gains and losses are not significant to the financial statements. Fair Value We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Goodwill, intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis, only if impairment is indicated. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. Cash, Cash Equivalents, and Investments We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our consolidated balance sheets as cash equivalents, short-term investments, or long-term investments depending on their maturity. We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Investments not considered cash equivalents and with maturities one year or less from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each channel partner’s expected ability to pay, and the collection history with each channel partner, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. As of July 31, 2018 and 2017 , the allowance for doubtful accounts activity was not significant. Derivatives Our derivative financial instruments are recorded at fair value, on a gross basis, as either assets or liabilities in our consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (“AOCI”) in our consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our consolidated statements of operations when the underlying hedged transaction is recognized in earnings. If it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into the financial statement line item associated with the underlying hedged transaction in our consolidated statements of operations. Gains or losses related to non-designated derivative instruments are recognized in other income (expense), net in our consolidated statements of operations for each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Derivatives designated as cash flow hedges are classified in our consolidated statements of cash flows in the same manner as the underlying hedged transaction, primarily within cash flows from operating activities. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to ten years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the remaining lease term. Business Combinations We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded. Intangible Assets Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. Acquisition-related in-process research and development represents the fair value of incomplete research and development projects that have not reached technological feasibility as of the date of acquisition. Initially, these assets are not subject to amortization. Assets related to projects that have been completed are transferred to developed technology, which are subject to amortization. Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, including goodwill. If we determine that it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, then the quantitative impairment test will be performed. Under the quantitative impairment test, if the carrying amount of our single reporting unit exceeds its fair value, we will recognize an impairment loss in an amount equal to that excess, but limited to the total amount of goodwill. We evaluate events and changes in circumstances that could indicate carrying amounts of purchased intangible assets and other long-lived assets may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of these assets by determining whether or not the carrying amount will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment loss for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Through July 31, 2018 , we have not recognized any impairment losses on our goodwill and intangible assets. During the year ended July 31, 2017, we recognized an impairment loss of $20.9 million on property and equipment related to the relocation of our corporate headquarters. We did not recognize any impairment losses on our other long-lived assets during the year ended July 31, 2018, or prior to fiscal 2017. Manufacturing Partner and Supplier Liabilities We outsource most of our manufacturing, repair, and supply chain management operations to our EMS provider and payments to it are a significant portion of our cost of product revenue. Although we could be contractually obligated to purchase manufactured products and components, we generally do not own the manufactured products and components. Product title transfers from our EMS provider to us and immediately to our channel partners upon shipment. Our EMS provider assembles our products using design specifications, quality assurance programs, and standards that we establish and it procures components and assembles our products based on our demand forecasts. These forecasts represent our estimates of future demand for our products based upon historical trends and analysis from our sales and product management functions as adjusted for overall market conditions. If the actual component usage and product demand are significantly lower than forecast, we record a liability for manufacturing purchase commitments in excess of our forecasted demand including costs for excess components or for carrying costs incurred by our manufacturing partners and component suppliers. Through July 31, 2018 , we have not accrued any significant costs associated with this exposure. Convertible Senior Notes In accounting for the issuance of our convertible senior notes, we separate the notes into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the par value of the notes as a whole. This difference represents a debt discount that is amortized to interest expense using the effective interest method over the term of the notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the notes, we allocate the total amount incurred to the liability and equity components using the same proportions as the proceeds from the notes. Transaction costs attributable to the liability component are netted with the liability component and amortized to interest expense using the effective interest method over the term of the notes. Transaction costs attributable to the equity component are netted with the equity component of the notes in additional paid-in capital in the consolidated balance sheets. When the notes are convertible, the net carrying amount of the notes is classified as a current liability and a portion of the equity component representing the conversion option is reclassified to temporary equity in our consolidated balance sheets. The portion of the equity component classified as temporary equity is measured as the difference between the principal and net carrying amount of the notes, excluding debt issuance costs. Revenue Recognition We generate revenue from the sales of hardware and software products, subscriptions, support, and other services primarily through a direct sales force and indirect relationships with channel partners, and, to a lesser extent, directly to end-customers. Revenue is recognized when all of the following criteria are met: • Persuasive Evidence of an Arrangement Exists. We rely upon non-cancelable sales agreements and purchase orders to determine the existence of an arrangement. • Delivery has Occurred. We use shipping documents or transmissions of product or subscription and support contract registration codes to determine delivery. • The Fee is Fixed or Determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. • Collectability is Reasonably Assured. We assess collectability based on credit analysis and payment history. We recognize product revenue at the time of shipment provided that all other revenue recognition criteria have been met. Our channel partners generally receive an order from an end-customer prior to placing an order with us. In addition, payment from our channel partners is not contingent on the partner’s success in sales to end-customers. Our channel partners generally do not stock appliances and only have limited stock rotation rights and no price protection rights. When necessary, we make certain estimates and maintain allowances for sales returns and other programs based on our historical experience. To date, these estimates have not been significant. We recognize subscription and support revenue ratably over the contractual service period, which is typically one to five years. Other services revenue is recognized as the services are rendered. Most of our arrangements, other than renewals of subscriptions and support contracts, are multiple-element arrangements with a combination of hardware, software, subscriptions, support, and other services. Products, subscriptions, support, and other services generally qualify as separate units of accounting. Our hardware deliverables typically include proprietary operating system software, which together deliver the essential functionality of our products. For multiple-element arrangements, we allocate revenue to each unit of accounting based on an estimated selling price at the arrangement inception. The estimated selling price for each element is based upon the following hierarchy: vendor-specific objective evidence (“VSOE”) of selling price, if available, third-party evidence (“TPE”) of selling price, if VSOE of selling price is not available, or best estimate of selling price (“BESP”), if neither VSOE of selling price nor TPE of selling price are available. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit based on the aforementioned selling price hierarchy. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. In multiple-element arrangements where software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative estimated selling prices of each of the deliverables in the arrangement based on the aforementioned estimated selling price hierarchy. The arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the residual method when VSOE of fair value of the undelivered items exists. Under the residual method, the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. In determining VSOE of fair value, we evaluate whether a substantial majority of the historical prices charged for a product or service sold on a standalone basis, as represented by a percentage of list price, fall within a reasonably narrow range. If VSOE of fair value of one or more undelivered items does not exist, revenue from the software portion of the arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless support is the only undelivered element, in which case, the entire software arrangement fee is recognized ratably over the contractual service period. We account for multiple agreements with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. Revenues are reported net of sales taxes. Shipping charges billed to channel partners are included in revenues and related costs are included in cost of revenue. After receipt of a partner order, any amounts billed in excess of revenue recognized are recorded as deferred revenue. Deferred Commissions Sales commissions that are incremental and directly related to non-cancelable customer sales contracts are deferred and amortized over the term of the related contract in proportion to the recognized revenue. Short-term deferred commissions are included in prepaid expenses and other current assets, while long-term deferred commissions are included in other assets in our consolidated balance sheets. The amortization of deferred commissions is included in sales and marketing expense in our consolidated statements of operations. Advertising Costs Advertising costs, which are expensed and included in sales and marketing expense when incurred, were $9.8 million , $13.7 million , and $6.6 million , during the years ended July 31, 2018 , 2017 , and 2016 , respectively. Software Development Costs Internally developed software includes security software developed to meet our internal needs to provide cloud-based subscription offerings to our end-customers and business software that we customize to meet our specific operational needs. These capitalized costs consist of internal compensation related costs and external direct costs incurred during the application development stage and will be amortized over a useful life of three to five years. The costs to develop software that is marketed externally have not been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility. As such, all related software development costs are expensed as incurred and included in research and development expense in our consolidated statements of operations. Share-Based Compensation Compensation expense related to share-based transactions, including employee and non-employee director awards, is measured and recognized in the financial statements based on fair value on the grant date. We recognize share-based compensation expense for awards with only service conditions on a straight-line basis over the requisite service period of the related award. We recognize share-based compensation expense for awards with market conditions and awards with performance conditions on a straight-line basis over the requisite service period for each separately vesting portion of the award and, for awards with performance conditions, when it is probable that the performance condition will be achieved. We account for forfeitures of all share-based payment awards when they occur. Leases We rent our facilities under operating lease agreements and recognize related rent expense on a straight-line basis over the term of the lease. Some of our lease agreements contain rent holidays, scheduled rent increases, lease incentives, and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. We begin recognizing rent expense on the date that we obtain the legal right to use and control the leased space. Upon exiting a leased property before the lease term expires, we assess the fair value of our remaining obligation under the lease and record a cease-use loss, if needed. The cease-use loss is calculated as the present value of the amount by which the remaining lease obligation, adjusted for the effects of any deferred items recognized under the lease and related costs, exceeds the estimated sublease rentals that could be reasonably obtained. The cease-use loss will be adjusted as a result of the remeasurement of the cease-use liability if the timing or amount of estimated cash flows change. Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. We apply the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We record deferred tax charges in prepaid expenses and other current assets and other assets on our consolidated balance sheets. These deferred tax charges are amortized on a straight-line basis over the life of the associated assets as a component of provision for income taxes in our consolidated statements of operations. Loss Contingencies We are subject to the possibility of various loss contingencies arising in the ordinary course of business. In determining loss contingencies, we consider the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. We regularly evaluate current information available to us to determine whether an accrual is required, an accrual should be adjusted or a range of possible loss should be disclosed. Recently Adopted Accounting Pronouncements Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on derivatives and hedging to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships, and the presentation of hedge results. We early adopted the standard in our second quarter of fiscal 2018 on a modified retrospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Business Combinations - Definition of a Business In January 2017, the FASB issued authoritative guidance clarifying the definition of a business to assist companies with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a prospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements. Statement of Cash Flows - Restricted Cash In November 2016, the FASB issued authoritative guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. Under the new standard, restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements because our restricted cash balance has not been material. Income Taxes - Intra-Entity Asset Transfers In October 2016, the FASB issued authoritative guidance requiring the recognition of income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a modified retrospective basis through a cumulative-effect adjustment to accumulated deficit as of the date of adoption. We will adopt the standard in our first quarter of fiscal 2019 and anticipate an increase in accumulated deficit of approximately $28.4 million upon adoption related to the reclassification of unrecognized income tax effects from intra-entity transfers of assets other than inventory that occurred prior to the date of adoption. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued new authoritative guidance addressing eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued new authoritative guidance on the accounting for credit losses on most financial assets and certain financial instruments. The standard replaces the existing incurred loss model with an expected credit loss model for financial assets measured at amortized cost, including trade receivables, and requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The standard is effective for us in our first quarter of fiscal 2021 and will be applied on a modified retrospective basis. Early adoption is permitted beginning our first quarter of fiscal 2020. We are currently evaluating whether this standard will have a material impact on our consolidated financial statements. Leases In February 2016, the FASB issued new authoritative guidance on lease accounting. Among its provisions, the standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases and also requires additional qualitative and quantitative disclosures about lease arrangements. The standard is effective for us in our first quarter of fiscal 2020 and will be applied on a modified retrospective basis, with the option to elect certain practical expedients. Early adoption is permit |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We categorize assets and liabilities recorded or disclosed at fair value on our consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. • Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 July 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,512.3 $ — $ — $ 1,512.3 $ — $ — $ — $ — Commercial paper — 52.0 — 52.0 — — — — U.S. government and agency securities — 397.3 — 397.3 — — — — Total cash equivalents 1,512.3 449.3 — 1,961.6 — — — — Short-term investments: Certificates of deposit — 5.4 — 5.4 — — — — Non-U.S. government securities — 20.0 — 20.0 — — — — Commercial paper — 22.3 — 22.3 — — — — Corporate debt securities — 139.8 — 139.8 — 159.4 — 159.4 U.S. government and agency securities — 709.0 — 709.0 — 471.3 — 471.3 Total short-term investments — 896.5 — 896.5 — 630.7 — 630.7 Long-term investments: Certificates of deposit — — — — — 5.4 — 5.4 Corporate debt securities — 153.6 — 153.6 — 186.5 — 186.5 U.S. government and agency securities — 393.9 — 393.9 — 597.4 — 597.4 Total long-term investments — 547.5 — 547.5 — 789.3 — 789.3 Total assets measured at fair value $ 1,512.3 $ 1,893.3 $ — $ 3,405.6 $ — $ 1,420.0 $ — $ 1,420.0 Accrued and other liabilities: Foreign currency forward contracts $ — $ 6.9 $ — $ 6.9 $ — $ — $ — $ — Total accrued and other liabilities — 6.9 — 6.9 — — — — Total liabilities measured at fair value $ — $ 6.9 $ — $ 6.9 $ — $ — $ — $ — As of July 31, 2018, we did not have any assets or liabilities required to be measured at fair value on a nonrecurring basis. As of July 31, 2017, we determined that certain property and equipment related to our previous corporate headquarters were impaired. To support the growth of our business, in the fourth quarter of fiscal 2017, we committed to plans to relocate our corporate headquarters and sublet our previous headquarter facilities. In connection with our planned relocation, we assessed the recoverability of certain leasehold improvements and other long-lived assets associated with our previous headquarter facilities and determined that the carrying amount of these assets exceeded their fair value of $4.2 million . The resulting impairment loss of $20.9 million was recorded as general and administrative expense in our consolidated statements of operations during the year ended July 31, 2017. We calculated the fair value of the leasehold improvements and other long-lived assets based on estimated future discounted cash flows and classified the fair value as a Level 3 measurement due to the significance of unobservable inputs, which included the amount and timing of estimated sublease rental receipts that we could reasonably obtain over the remaining lease term and the discount rate. Refer to Note 9 . Commitments and Contingencies for more information on the relocation of our corporate headquarters. Refer to Note 8 . Convertible Senior Notes for the carrying amount and estimated fair value of our convertible senior notes as of July 31, 2018 and July 31, 2017 . |
Cash Equivalents and Investment
Cash Equivalents and Investments (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash equivalents and investments | Investments The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale securities as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 1,512.3 $ — $ — $ 1,512.3 Commercial paper 52.0 — — 52.0 U.S. government and agency securities 397.3 — — 397.3 Total cash equivalents $ 1,961.6 $ — $ — $ 1,961.6 Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Non-U.S. government securities 20.0 — — 20.0 Commercial paper 22.3 — — 22.3 Corporate debt securities 295.9 — (2.5 ) 293.4 U.S. government and agency securities 1,110.6 — (7.7 ) 1,102.9 Total investments $ 1,454.2 $ — $ (10.2 ) $ 1,444.0 July 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Corporate debt securities 346.1 0.3 (0.5 ) 345.9 U.S. government and agency securities 1,071.2 0.1 (2.6 ) 1,068.7 Total investments $ 1,422.7 $ 0.4 $ (3.1 ) $ 1,420.0 Unrealized losses related to these securities are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not likely that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. As a result, there were no other-than-temporary impairments for these securities at July 31, 2018 and 2017 . We received proceeds of $141.9 million from sales of investments during the year ended July 31, 2016 . We did not sell any investments during the years ended July 31, 2018 and 2017 . We use the specific identification method to determine the cost basis of investments sold. The following table summarizes the amortized cost and fair value of our available-for-sale securities as of July 31, 2018 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 2,861.3 $ 2,858.1 Due between one and three years 554.5 547.5 Total $ 3,415.8 $ 3,405.6 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments As a global business, we are exposed to currency exchange rate risk. Substantially all of our revenue is transacted in U.S. dollars, however, a portion of our operating expenditures are incurred outside of the United States and are denominated in foreign currencies, making them subject to fluctuations in foreign currency exchange rates. We enter into foreign currency derivative contracts with maturities of 14 months or less, which we designate as cash flow hedges, to manage the foreign currency exchange rate risk associated with these expenditures. As of July 31, 2018 , the total notional amount of our outstanding foreign currency forward contracts was $ 288.5 million . Refer to Note 2 . Fair Value Measurements for the fair value of our derivative instruments as reported in our consolidated balance sheets as of July 31, 2018. We did not have any foreign currency forward contracts outstanding as of July 31, 2017 . During the years ended July 31, 2018 and 2017 , both unrealized gains (losses) recognized in AOCI related to our cash flow hedges and amounts reclassified into earnings were not material. Unrealized gains (losses) in AOCI related to our cash flow hedges as of July 31, 2018 and 2017 were not material. |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal 2018 Evident.io, Inc. On March 26, 2018, we completed our acquisition of all outstanding shares of Evident.io, Inc. (“Evident.io”) , a privately-held cloud security company. The acquisition expands our API-based security capabilities for the public cloud with the addition of Evident.io ’s cloud services infrastructure protection technology. Total purchase consideration for the acquisition of Evident.io was $292.9 million in cash, of which $4.0 million was accrued and was paid over a period of five months from the acquisition date. We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions): Amount Goodwill $ 209.8 Identified intangible assets 85.1 Net liabilities assumed (2.0 ) Total $ 292.9 Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Evident.io ’s technology into our platform and sales opportunities of Evident.io ’s software as a service (“SaaS”) offerings. The goodwill is not deductible for income tax purposes. The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 68.4 6 years Trade name and trademarks 8.5 8 years Customer relationships 8.2 8 years Total $ 85.1 In addition, we paid $6.6 million in cash to settle certain Evident.io stock options, for which vesting was accelerated in connection with the acquisition and the subsequent termination of the option holders’ services. This amount was recorded as post-acquisition share-based compensation included in general and administrative expenses in our consolidated statements of operations. Cyber Secdo Ltd. On April 24, 2018, we completed our acquisition of all outstanding shares of Cyber Secdo Ltd. (“Secdo”) , a privately-held company specializing in endpoint detection and response (“EDR”). The acquisition expands the functionality of our platform by adding EDR capabilities. Total purchase consideration for the acquisition of Secdo was $82.7 million in cash. We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions): Amount Goodwill $ 68.6 Identified intangible assets 17.3 Net liabilities assumed (3.2 ) Total $ 82.7 Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Secdo ’s technology into our advanced endpoint protection offering and our platform. The goodwill is not deductible for income tax purposes. The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 16.4 5 years Customer relationships 0.9 2 years Total $ 17.3 Fiscal 2017 LightCyber Ltd. On February 27, 2017, we completed our acquisition of all outstanding shares of LightCyber Ltd. (“LightCyber”), a privately-held cybersecurity company, for total consideration of $103.1 million in cash. The acquisition expands the functionality of our platform with the addition of LightCyber’s behavioral analytics technology. We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table (in millions): Amount Cash $ 12.4 Goodwill 75.3 Identified intangible assets 19.5 Net liabilities assumed (4.1 ) Total $ 103.1 The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 16.6 8 years Customer relationships 2.9 8 years Total $ 19.5 Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected synergies from integrating the LightCyber technology into our platform. The goodwill is not deductible for income tax purposes. Additional Acquisition-Related Information The operating results of the acquired companies are included in our consolidated statements of operations from the respective dates of acquisition. Pro forma results of operations have not been presented because the effects of these acquisitions, individually and in the aggregate, were not material to our consolidated statements of operations. Additional information related to Evident.io and Secdo , such as that related to income tax and other contingencies, existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the respective acquisition date, which may result in changes to the amounts and allocations recorded. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table presents details of our goodwill during the year ended July 31, 2018 (in millions): Amount Balance as of July 31, 2017 $ 238.8 Goodwill acquired 284.0 Balance as of July 31, 2018 $ 522.8 Through July 31, 2018 , we have not recognized any impairment losses on our goodwill. Purchased Intangible Assets The following table presents details of our purchased intangible assets as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 154.7 $ (38.2 ) $ 116.5 $ 69.7 $ (23.8 ) $ 45.9 Customer relationships 12.2 (1.2 ) 11.0 3.1 (0.4 ) 2.7 Acquired intellectual property 8.9 (4.5 ) 4.4 8.9 (3.8 ) 5.1 Trade name and trademarks 8.5 (0.4 ) 8.1 — — — Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 186.5 (46.5 ) 140.0 83.9 (30.2 ) 53.7 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 — — — Total purchased intangible assets $ 187.3 $ (46.5 ) $ 140.8 $ 83.9 $ (30.2 ) $ 53.7 We recognized amortization expense of $16.3 million , $9.8 million , and $9.4 million for the years ended July 31, 2018 , 2017 , and 2016 , respectively. The following table summarizes our estimated future amortization expense of intangible assets as of July 31, 2018 (in millions): Amount Years ending July 31: 2019 $ 27.8 2020 27.7 2021 25.7 2022 21.2 2023 18.8 2024 and thereafter 18.8 Total future amortization expense $ 140.0 |
Property and Equipment (Notes)
Property and Equipment (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table presents details of our property and equipment, net as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Computers, equipment, and software $ 217.9 $ 156.6 Leasehold improvements 159.5 110.1 Demonstration units 33.0 26.3 Furniture and fixtures 24.6 20.4 Total property and equipment 435.0 313.4 Less: accumulated depreciation (161.9 ) (102.3 ) Total property and equipment, net $ 273.1 $ 211.1 We recognized depreciation expense of $74.7 million , $48.6 million , and $33.1 million related to property and equipment during the years ended July 31, 2018 , 2017 , and 2016 , respectively. During the year ended July 31, 2017, we impaired certain property and equipment related to the relocation of our corporate headquarters and recognized a loss of $20.9 million in general and administrative expense on our consolidated statements of operations. Refer to Note 2 . Fair Value Measurements for more information on our impairment assessment. |
Convertible Senior Notes (Notes
Convertible Senior Notes (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes Convertible Senior Notes In June 2014 , we issued $575.0 million aggregate principal amount of 0.0% Convertible Senior Notes due 2019 (the “2019 Notes”) and in July 2018, we issued $1.7 billion aggregate principal amount of 0.75% Convertible Senior Notes due 2023 (the “2023 Notes” and, together with the 2019 Notes, the “Notes”). The 2023 Notes bear interest at a fixed rate of 0.75% per year, payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2019. Each series of Notes is governed by an indenture between us, as the issuer, and U.S. Bank National Association, as Trustee (individually, each an “Indenture,” and together, the “Indentures”). The Notes of each series are unsecured, unsubordinated obligations and the applicable Indenture governing each series of Notes does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The 2019 Notes and 2023 Notes mature on July 1, 2019 and July 1, 2023, respectively. We cannot redeem either series of Notes prior to the applicable maturity date. The following table presents details of the Notes (number of shares in millions): Conversion Rate per $1,000 Principal Initial Conversion Price Convertible Date Number of Shares 2019 Notes 9.0680 $ 110.28 January 1, 2019 5.2 2023 Notes 3.7545 $ 266.35 April 1, 2023 6.4 Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding their respective convertible dates only under the following circumstances: • during any fiscal quarter commencing after the fiscal quarters ending on October 31, 2014 and October 31, 2018, for the 2019 Notes and 2023 Notes , respectively (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the respective Notes on each applicable trading day (the “sale price condition”); • during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the applicable series of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate for the respective Notes on each such trading day; or • upon the occurrence of specified corporate events. On or after the respective convertible date, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the applicable maturity date regardless of the foregoing conditions. Upon conversion, holders of the Notes of a series will receive cash equal to the aggregate principal amount of the Notes of such series to be converted, and, at our election, cash and/or shares of our common stock for any amounts in excess of the aggregate principal amount of the Notes of such series being converted. The conversion price will be subject to adjustment in some events. Holders of the Notes of a series who convert their Notes of such series in connection with certain corporate events that constitute a “make-whole fundamental change” under the applicable Indenture are, under certain circumstances, entitled to an increase in the conversion rate for such series of Notes. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” under the applicable Indenture, holders of the Notes of such series may require us to repurchase for cash all or a portion of the Notes of such series at a repurchase price equal to 100% of the principal amount of the Notes of such series plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The sale price condition was met for the 2019 Notes during the fiscal quarter ended July 31, 2018, and as a result, holders may convert their 2019 Notes at any time during the fiscal quarter ending October 31, 2018. Accordingly, the net carrying amount of the 2019 Notes was reclassified into current liabilities and the portion of the equity component representing the conversion option was reclassified into temporary equity in our consolidated balance sheets as of July 31, 2018. The sale price condition was not met for the 2023 Notes during the fiscal quarter ended July 31, 2018. Since the 2023 Notes were not convertible, the net carrying amount of the 2023 Notes was classified as a long-term liability and the equity component was included in additional paid-in capital in our consolidated balance sheets as of July 31, 2018. The sale price condition was not met for the 2019 Notes during the fiscal quarter ended July 31, 2017. Since the 2019 Notes were not convertible, the net carrying amount of the 2019 Notes was classified as a long-term liability and the equity component was included in additional paid-in capital in our consolidated balance sheets as of July 31, 2017. As of July 31, 2018, all of the Notes remained outstanding. Subsequent to July 31, 2018, through the filing date of this Annual Report on Form 10-K, $327.3 million in principal amount of the 2019 Notes was converted or had been submitted by the holders for conversion and will settle during the fiscal quarter ending October 31, 2018. The following table sets forth the components of the Notes as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 July 31, 2017 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Liability component: Principal $ 575.0 $ 1,693.0 $ 2,268.0 $ 575.0 $ — $ 575.0 Less: debt discount and debt issuance costs, net of amortization 24.6 323.3 347.9 50.3 — 50.3 Net carrying amount $ 550.4 $ 1,369.7 $ 1,920.1 $ 524.7 $ — $ 524.7 Equity component (including amounts classified as temporary equity) $ 109.8 $ 315.0 $ 424.8 $ 109.8 $ — $ 109.8 The total estimated fair value of the Notes was $2.7 billion and $747.5 million at July 31, 2018 and July 31, 2017 , respectively. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at July 31, 2018 and July 31, 2017 to be a Level 2 measurement. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. As of July 31, 2018 , the if-converted value of the 2019 Notes exceeded its principal amount by $519.1 million . Based on the closing price of our common stock on July 31, 2018, the if-converted value of the 2023 Notes was less than its principal amount. The following table sets forth interest expense recognized related to the Notes (dollars in millions): Year Ended July 31, 2018 Year Ended July 31, 2017 Year Ended July 31, 2016 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Contractual interest expense $ — $ 0.7 $ 0.7 $ — $ — $ — $ — $ — $ — Amortization of debt discount 22.9 3.0 25.9 22.0 — 22.0 21.1 — 21.1 Amortization of debt issuance costs 2.8 0.1 2.9 2.5 — 2.5 2.3 — 2.3 Total interest expense recognized $ 25.7 $ 3.8 $ 29.5 $ 24.5 $ — $ 24.5 $ 23.4 $ — $ 23.4 Effective interest rate of the liability component 4.8 % 5.2 % 4.8 % — % 4.8 % — % Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into separate convertible note hedge transactions (the “2019 Note Hedges,” with respect to the 2019 Notes, and the “2023 Note Hedges,” with respect to the 2023 Notes, and collectively, the “Note Hedges”) with respect to our common stock concurrent with the issuance of each series of Notes. The following table presents details of the Note Hedges (in millions): Shares Aggregate Purchase 2019 Note Hedges 5.2 $ 111.0 2023 Note Hedges 6.4 $ 332.0 The Note Hedges cover shares of our common stock at a strike price per share that corresponds to the initial applicable conversion price of the applicable series of Notes, which are also subject to adjustment, and are exercisable upon conversion of the applicable series of Notes. The Note Hedges will expire upon maturity of the applicable series of Notes. The Note Hedges are separate transactions and are not part of the terms of the applicable series of the Notes. Holders of the Notes of either series will not have any rights with respect to the Note Hedges. Any shares of our common stock receivable by us under the Note Hedges are excluded from the calculation of diluted earnings per share as they are antidilutive. The aggregate amounts paid for the Note Hedges are included in additional paid-in capital in our consolidated balance sheets. Warrants Separately, but concurrently with the issuance of each series of Notes, we entered into transactions whereby we sold warrants (the “2019 Warrants,” with respect to the 2019 Notes, and the “2023 Warrants,” with respect to the 2023 Notes, and collectively, the “Warrants”) to acquire shares of our common stock, subject to anti-dilution adjustments. The following table presents details of the Warrants (in millions, except per share data): Shares Strike Price per Share Aggregate Proceeds 2019 Warrants 5.2 $ 137.85 $ 78.3 2023 Warrants 6.4 $ 417.80 $ 145.4 The shares issuable under the Warrants will be included in the calculation of diluted earnings per share when the average market value per share of our common stock for the reporting period exceeds the applicable strike price for such series of Warrants. The Warrants are separate transactions and are not part of either series of Notes or Note Hedges and are not remeasured through earnings each reporting period. Holders of the Notes of either series will not have any rights with respect to the Warrants. The aggregate proceeds received from the sale of the Warrants are included in additional paid-in capital in our consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and Contingencies Leases We lease our facilities under various non-cancelable operating leases, which expire through the year ending July 31, 2028 . In May 2015 and October 2015, we entered into a total of three lease agreements for approximately 941,000 square feet of corporate office space in Santa Clara, California, which serves as our new corporate headquarters. The leases contain rent holiday periods, scheduled rent increases, lease incentives, and renewal options which allow the lease terms to be extended beyond their expiration dates of July 2028 through July 2046. In September 2017, per the terms of the lease agreements, the landlords exercised their option to amend our lease payment schedules and eliminate our rent holiday periods, which increased our rental payments by $24.4 million , $11.8 million , and $2.0 million for fiscal 2018, 2019, and 2020, respectively. In exchange, we received an upfront cash reimbursement of $38.2 million during the three months ended October 31, 2017, which we will apply against the future additional rental payments when due. As amended, rental payments under the three lease agreements are approximately $412.0 million over the lease term. In May 2015, we also entered into a lease agreement for approximately 122,000 square feet of space in Santa Clara, California to serve as an extension of our previous corporate headquarters. The lease contains scheduled rent increases, lease incentives, and renewal options which allow the lease term to be extended beyond the expiration date of April 2021 through July 2046. Rental payments under the lease agreement are approximately $23.1 million over the lease term. In December 2017, we entered into an agreement to sublease this office space for the remaining lease term. Proceeds from this sublease will be approximately $16.3 million over the sublease term. In September 2012, we entered into two lease agreements for a total of approximately 300,000 square feet of space in Santa Clara, California, which served as our previous corporate headquarters through August 2017, when we relocated to our new corporate campus. The leases contain rent holiday periods and two separate five -year options to extend the lease term beyond their expiration dates of July 2023. Rental payments under these lease agreements are approximately $94.3 million over the lease term. In August 2017, we exited our previous headquarter facilities and relocated to our new corporate campus, which resulted in the recognition of a cease-use loss of $39.2 million as general and administrative expense in our consolidated statements of operations during the year ended July 31, 2018, and a corresponding liability in our consolidated balance sheets. During the year ended July 31, 2018, we released $10.1 million of the cease-use liability through rental payments. As of July 31, 2018, the remaining balance of the cease-use liability was $29.1 million , which is expected to be paid through the end of the lease term in July 2023. We recognized rent expense of $35.2 million , $35.9 million , and $20.2 million for the years ended July 31, 2018 , 2017 , and 2016 , respectively. Rent expense is recognized on a straight-line basis over the term of the lease. The following table presents details of the aggregate future non-cancelable minimum rental payments under our operating leases as of July 31, 2018 (in millions): Amount Years ending July 31: 2019 $ 66.3 2020 68.2 2021 64.0 2022 59.8 2023 58.5 2024 and thereafter 223.8 Committed gross lease payments 540.6 Less: proceeds from sublease rental 14.0 Net operating lease obligation $ 526.6 Purchase Commitments Manufacturing Purchase Commitments Our EMS provider procures components and assembles our products based on our forecasts. These forecasts are based on estimates of demand for our products primarily for the next 12 months, which are in turn based on historical trends and an analysis from our sales and product management organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate supply, we may issue non-cancelable orders for products and components to our manufacturing partners or component suppliers. As of July 31, 2018 , our purchase commitments under such orders were $134.6 million , excluding obligations under contracts that we can cancel without a significant penalty. Other Purchase Commitments In March 2018, we amended an agreement with a third-party provider for our use of certain cloud services through June 2020. Under the non-cancelable addendum, we are committed to a minimum purchase of $ 14.0 million between April 2018 and March 2019 and $8.0 million between April 2019 and March 2020. As of July 31, 2018, our purchase commitment under the addendum was $11.7 million. Litigation We are subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. We accrue for contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, we will either disclose the estimated additional loss or state that such an estimate cannot be made. As of July 31, 2018 , we have not recorded any significant accruals for loss contingencies associated with such legal proceedings, determined that an unfavorable outcome is probable or reasonably possible, or determined that the amount or range of any possible loss is reasonably estimable. Indemnification Under the indemnification provisions of our standard sales related contracts, we agree to defend our end-customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets, and to pay judgments entered on such claims. Our exposure under these indemnification provisions is generally limited to payments made to us for the alleged infringing products over the preceding twelve months under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of these payments. In addition, we indemnify our officers, directors, and certain key employees while they are serving in good faith in their company capacities. To date, we have not recorded any accruals for loss contingencies associated with indemnification claims or determined that an unfavorable outcome is probable or reasonably possible. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Share Repurchase In August 2016, our board of directors authorized a $500.0 million share repurchase which is funded from available working capital. In February 2017, our board of directors authorized a $500.0 million increase to the repurchase program, bringing the total authorization to $1.0 billion . Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase authorization will expire on December 31, 2018, and may be suspended or discontinued at any time. During the years ended July 31, 2018 and 2017, we repurchased and retired 1.7 million shares and 3.3 million shares, respectively, of our common stock under the authorization for an aggregate purchase price of $250.0 million and $420.1 million , respectively, including transaction costs. The total price of the shares repurchased and related transaction costs are reflected as a reduction to common stock and additional paid-in capital on our consolidated balance sheets. As of July 31, 2018, $330.0 million remained available for future share repurchases under the repurchase authorization. |
Equity Award Plans (Notes)
Equity Award Plans (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Award Plans | Equity Award Plans Share-Based Compensation Plans 2012 Equity Incentive Plan Our 2012 Equity Incentive Plan (our “2012 Plan”) was adopted by our board of directors and approved by the stockholders on June 5, 2012 and was effective one business day prior to the effectiveness of our registration statement for our initial public offering (“IPO”). Our 2012 Plan replaced our 2005 Equity Incentive Plan (our “2005 Plan”), which terminated upon the completion of our IPO, however, awards that were outstanding upon termination remained outstanding pursuant to their original terms. Our 2012 Plan provides for the granting of stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), stock appreciation rights, performance-based stock units (“PSUs”), performance shares (“PSAs”), and performance stock options (“PSOs”) to our employees, directors, and consultants. Awards granted under our 2012 Plan vest over the periods determined by the board of directors, generally three to four years from the date of grant, and our options expire no more than ten years after the date of grant. Since our IPO in 2012, awards granted under our 2012 Plan consist primarily of RSUs. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding. We grant awards with performance conditions (PSAs and PSUs) to certain employees, which vest over a period of four years from the date of grant. The actual number of PSAs and PSUs earned and eligible to vest is determined based on level of achievement against a pre-established billings target for the fiscal year. In June 2018, we granted 1.2 million PSOs with both a market condition and a service condition to our chief executive officer. The market condition requires the price of our common stock to exceed 150% , 200% , 250% , and 300% of the exercise price of the PSOs (the “stock price targets”) during the four -, five -, six -, and seven -year periods following the date of grant, respectively. To the extent that the stock price targets have been met, one-fourth of the PSOs will vest on the anniversary date of the grant date for such PSOs, subject to continued service. We net-share settle equity awards held by certain employees by withholding shares upon vesting to satisfy tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to our 2012 Plan and will be available for future issuance. Payments for employees’ tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as financing activities in our consolidated statements of cash flows. A total of 17.7 million shares of our common stock are reserved for issuance pursuant to our 2012 Plan as of July 31, 2018 . This includes shares that are (i) reserved but unissued under our 2005 Plan on the effective date of our 2012 Plan or (ii) returned to our 2005 Plan as a result of expiration or termination of options. On the first day of each fiscal year, the number of shares in the reserve may be increased by the lesser of (i) 8,000,000 shares, (ii) 4.5% of the outstanding shares of common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our board of directors. 2012 Employee Stock Purchase Plan Our 2012 Employee Stock Purchase Plan was adopted by our board of directors and approved by the stockholders on June 5, 2012, and was effective upon completion of our IPO. On August 29, 2017, we amended and restated our 2012 Employee Stock Purchase Plan (our “2012 ESPP”) to extend the length of our offering periods from 6 to 24 months. Our 2012 ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the purchase date. If the fair market value of our common stock on the purchase date is lower than the first trading day of the offering period, the current offering period will be cancelled after purchase and a new 24 -month offering period will begin. Under our 2012 ESPP, each 24 -month offering period consists of four consecutive 6 -month purchase periods, with purchase dates on the first trading day on or after February 28 and August 31 of each year. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to purchase limits of 625 shares per six-month purchase period and $25,000 worth of stock for each calendar year. During the year ended July 31, 2018 , employees purchased 0.4 million shares of common stock under our 2012 ESPP at an average exercise price of $110.87 per share. A total of 3.4 million shares of our common stock are available for sale under our 2012 ESPP as of July 31, 2018 . On the first day of each fiscal year, the number of shares in the reserve may be increased by the lesser of (i) 2,000,000 shares, (ii) 1% of the outstanding shares of our common stock on the first day of the fiscal year, or (iii) such other amount as determined by our board of directors. Stock Option Activities The following table summarizes the stock option activity, including PSOs, under our stock plans during the reporting period (in millions, except per share amounts): Options Outstanding Number Weighted- Weighted- Aggregate Balance—July 31, 2017 1.6 $ 13.11 4.2 $ 190.6 Options granted 1.2 $ 198.50 Options forfeited — $ — Options exercised (0.6 ) $ 12.76 Balance—July 31, 2018 2.2 $ 109.12 5.2 $ 199.8 Options exercisable—July 31, 2018 1.1 $ 13.28 3.2 $ 199.8 The weighted-average grant-date fair value of stock options granted during the year ended July 31, 2018 was $56.14 per share. No stock options were granted during the years ended July 31, 2017 and 2016. The grant-date fair value of options vested during the year ended July 31, 2016 was $8.1 million . No options vested during the years ended July 31, 2018 and 2017. The intrinsic value of options exercised during the years ended July 31, 2018 , 2017 , and 2016 was $85.0 million , $61.2 million , and $176.1 million , respectively. RSA, PSA, RSU, and PSU Activities The following table summarizes the RSA, PSA, RSU, and PSU activity under our stock plans during the reporting period (in millions, except per share amounts): RSAs and PSAs Outstanding RSUs and PSUs Outstanding Number Weighted- Number Weighted- Weighted- Aggregate Balance—July 31, 2017 1.0 $ 163.55 6.5 $ 141.16 1.3 $ 854.1 Granted (1) — $ — 4.1 $ 170.44 Vested (0.5 ) $ 168.62 (3.3 ) $ 138.75 Forfeited (0.2 ) $ 157.49 (0.6 ) $ 144.33 Balance—July 31, 2018 0.3 $ 160.85 6.7 $ 160.20 1.6 $ 1,335.2 ______________ (1) For PSAs and PSUs, shares granted represents the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. The weighted-average grant-date fair value of RSAs and PSAs granted during the years ended July 31, 2017 and 2016 was $148.54 and $170.97 per share, respectively. No RSAs or PSAs were granted during the year ended July 31, 2018. The aggregate fair value, as of the respective vesting dates, of RSAs and PSAs vested during the year ended July 31, 2018 was $67.5 million , and RSAs vested during the year ended July 31, 2017 was $62.6 million . No PSAs vested during the year ended July 31, 2017, and no RSAs or PSAs vested during the year ended July 31, 2016. The weighted-average grant-date fair value of RSUs and PSUs granted during the years ended July 31, 2018 , 2017 , and 2016 was $170.44 , $141.35 , and $160.60 per share, respectively. The aggregate fair value, as of the respective vesting dates, of RSUs vested during the years ended July 31, 2018 , 2017 , and 2016 was $546.3 million , $462.6 million , and $513.0 million , respectively. No PSUs vested during the three years ended July 31, 2018. Shares Available for Grant The following table presents the stock activity and the total number of shares available for grant under our stock plans as of July 31, 2018 (in millions): Number of shares Balance—July 31, 2017 8.8 Authorized 4.1 Options, RSUs, and PSUs granted (5.3 ) RSAs, PSAs, and RSUs forfeited 0.8 Shares withheld for taxes 0.4 Balance—July 31, 2018 8.8 Share-Based Compensation We record share-based compensation awards based on estimated fair value as of the grant date. The fair value of RSUs, PSUs, RSAs, and PSAs is based on the closing market price of our common stock on the date of grant. The fair value of PSOs is estimated on the grant date using a Monte Carlo simulation model and the following assumptions: expected volatility of 33.3% , based on a combination of implied volatility from traded options on our common stock and the historical volatility of our common stock; dividend yield of 0.0% , based on our current expectations about our anticipated dividend policy; risk-free interest rate of 2.9% , based on the implied yield available on U.S. Treasury zero-coupon issues with terms equal to the contractual terms of each tranche; and an expected term which takes into consideration the vesting term and the contractual term of the PSO. The fair value of shares issued under our 2012 ESPP are estimated on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Year Ended July 31, 2018 2017 2016 Volatility 26.8% - 43.6% 41.0% - 50.1% 33.4 % - 45.5% Expected term (in years) 0.5 - 2.0 0.5 0.5 Dividend yield — % — % — % Risk-free interest rate 1.2% - 2.3% 0.5% - 0.9% 0.2% - 0.5% Grant-date fair value per share $34.94 - $65.04 $34.15 - $39.65 $43.07 - $44.62 The expected volatility is based on the historical volatility of our common stock. The expected term represents the term from the first day of the offering period to the purchase dates within each offering period. The dividend yield assumption is based on our expectations about our anticipated dividend policy. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with maturities that approximate the expected term. The following table summarizes share-based compensation included in costs and expenses (in millions): Year Ended July 31, 2018 2017 2016 Cost of product revenue $ 7.0 $ 7.3 $ 6.2 Cost of subscription and support revenue 66.7 56.2 40.9 Research and development 145.2 152.6 132.9 Sales and marketing 208.0 186.5 152.4 General and administrative 77.0 73.1 60.5 Total share-based compensation $ 503.9 $ 475.7 $ 392.9 As of July 31, 2018 , total compensation cost related to unvested share-based awards not yet recognized was $1.1 billion . This cost is expected to be amortized over a weighted-average period of approximately 3.0 years . Future grants will increase the amount of compensation expense to be recorded in these periods. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income (loss) before income taxes (in millions): Year Ended July 31, 2018 2017 2016 United States $ (192.1 ) $ (210.0 ) $ (195.3 ) Foreign 61.9 15.9 23.0 Total $ (130.2 ) $ (194.1 ) $ (172.3 ) The following table summarizes our provision for income taxes (in millions): Year Ended July 31, 2018 2017 2016 Federal: Current $ (0.6 ) $ 3.4 $ 1.9 Deferred (3.3 ) — (0.6 ) State: Current 1.6 0.9 1.1 Deferred (1.3 ) — (0.1 ) Foreign: Current 23.3 19.7 19.1 Deferred (2.0 ) (1.5 ) (1.0 ) Total $ 17.7 $ 22.5 $ 20.4 For the year ended July 31, 2018, our provision for income taxes decreased compared to the year ended July 31, 2017, primarily due to changes in our valuation allowance related to our acquisition of Evident.io and future benefits from alternative minimum credits under the Tax Cuts and Jobs Act (“TCJA”). For the year ended July 31, 2017, our provision for income taxes increased compared to the year ended July 31, 2016, primarily due to increases in foreign withholding taxes and U.S. income taxes related to intercompany transactions, offset by tax benefits from our adoption of new share-based payment accounting guidance in fiscal 2017. As a result of adopting the new share-based payment guidance, we have not reflected the impact of excess tax benefits in additional paid-in capital for the years ended July 31, 2018 and 2017. Prior to adopting this guidance, we recorded excess tax benefits of $0.5 million directly to additional paid-in capital for the year ended July 31, 2016. On December 22, 2017, the TCJA was enacted into law. The TCJA provides for significant tax law changes and modifications including, but not limited to, the reduction of the U.S. federal corporate statutory tax rate from 35% to 21% as of January 1, 2018, the requirement for companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and the creation of new taxes on certain foreign-sourced earnings. As a fiscal year-end taxpayer, certain provisions of the TCJA began to impact us during the fiscal quarter ended January 31, 2018, while other provisions will impact us beginning in our fiscal year ending July 31, 2019. As a result of the TCJA, we recorded a provisional benefit of $6.1 million during the year ended July 31, 2018, related to alternative minimum tax credits that will be refundable if not utilized. We adjusted our deferred tax assets as a result of changes in the federal tax rate. This change was offset by a corresponding adjustment to our valuation allowance. We have not recorded any amounts relating to the transition tax because we had no unremitted earnings as of the measurement date, based on our current estimate. Accounting standards require companies to recognize the effect of tax law changes in the period of enactment. However, the SEC staff and FASB issued guidance that allows companies to record provisional amounts for the effects of the TCJA during a measurement period not to extend beyond one year from the enactment date. In accordance with this guidance, we have determined the amounts recorded and positions taken, as discussed, are provisional as of July 31, 2018. We continue to assess the impacts of the TCJA, and the final impact of the TCJA recorded by us may differ from the provisional amounts due to a number of uncertainties and factors, including the need for further guidance and clarification of the new law by U.S. federal and state tax authorities, and the need for further guidance on the related income tax accounting. In addition to the previously discussed impacts on our fiscal year ended July 31, 2018, the TCJA also establishes new tax laws that will be effective beginning with our fiscal year ending July 31, 2019, including a provision for low-taxed income of foreign subsidiaries. Due to its complexity, we are continuing to evaluate this provision of the TCJA. Based on recent FASB deliberations, we will be allowed to make an accounting policy election to either (i) treat taxes due on future U.S. inclusions in taxable income as a current-period expense when incurred or (ii) factor such amounts into our measurement of deferred taxes. Our selection of accounting policy will depend, in part, on analyzing our facts and circumstances to determine the expected impact under each method. As of July 31, 2018, we have not made a policy election. We expect to make a policy election in fiscal year 2019, and anticipate any changes to deferred taxes from this election to be offset by a valuation allowance. The following table presents the items accounting for the difference between income taxes computed at the federal statutory income tax rate and our provision for income taxes: Year Ended July 31, 2018 2017 2016 Federal statutory rate 26.8 % 35.0 % 35.0 % Effect of: State taxes, net of federal tax benefit 5.0 2.8 (1.7 ) Foreign income at other than U.S. rates 12.6 (14.4 ) (7.8 ) Change in valuation allowance 29.0 (39.4 ) (25.4 ) Effect of U.S. tax law change (104.6 ) — — Share-based compensation 8.6 1.6 (15.9 ) Amortization of deferred tax charges (6.5 ) (3.6 ) (3.4 ) Research credits 25.4 10.1 11.3 Non-deductible expenses (4.9 ) (3.0 ) (1.3 ) Other, net (5.0 ) (0.7 ) (2.6 ) Total (13.6 )% (11.6 )% (11.8 )% As a result of the TCJA, our federal statutory tax rate for the fiscal year ended July 31, 2018 was 26.8% based on a blend of the statutory rates for 2017 and 2018. Further, we have reflected an adjustment to deferred taxes as a result of the TCJA, which is fully offset by changes in our valuation allowance. During the year ended July 31, 2017, we adopted new share-based payment accounting guidance that requires us to recognize excess tax benefits or deficiencies as income tax expense or benefit in the period in which they occur, rather than additional paid-in capital. The effect of the change from this guidance is reflected in the share-based compensation line above. During the year ended July 31, 2016, we accounted for the outcome of The Gillette Company et al. v. California Franchise Tax Board which disallowed the election to use an evenly weighted, three factor apportionment formula utilized by us on our tax return for the year ended July 31, 2014. The impact for the change in apportionment is reflected in state taxes, net of federal tax benefit above and is fully offset by changes in our valuation allowance. The following table presents the components of our deferred tax assets and liabilities as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Deferred tax assets: Accruals and reserves $ 59.6 $ 30.0 Deferred revenue 132.9 133.5 Net operating loss carryforwards 189.5 245.3 Research and development and foreign tax credits 113.4 69.3 Share-based compensation 21.4 45.4 Gross deferred tax assets 516.8 523.5 Valuation allowance (420.1 ) (464.1 ) Total deferred tax assets 96.7 59.4 Deferred tax liabilities: Fixed assets and intangible assets (43.3 ) (13.5 ) Deferred commissions (34.0 ) (36.8 ) Other deferred tax liabilities (10.9 ) (4.0 ) Total deferred tax liabilities (88.2 ) (54.3 ) Total $ 8.5 $ 5.1 As a result of the TCJA, we have reflected an adjustment to deferred taxes during the year ended July 31, 2018, which was fully offset by changes in our valuation allowance. A valuation allowance is provided when it is more likely than not that the deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future taxable income, if any, the amount and timing of which are uncertain. At such time, if it is determined that it is more likely than not that the deferred tax assets are realizable, the valuation allowance will be adjusted. As of July 31, 2018 , we have provided a valuation allowance for our federal, state, and certain foreign deferred tax assets that we believe will, more likely than not, be unrealizable. The net valuation allowance decreased by $44.0 million from the year ended July 31, 2017 to the year ended July 31, 2018 , primarily due to a decrease in our U.S. federal tax rate as a result of the TCJA. As of July 31, 2018 , we had federal, state, and foreign NOL carryforwards of approximately $1.3 billion , $800.1 million , and $59.2 million , respectively, as reported on our tax returns, available to reduce future taxable income, if any. If not utilized, our federal and state NOL carryforwards will expire in various amounts at various dates beginning in the years ending July 31, 2027 and July 31, 2019, respectively. Our foreign NOL will carry forward indefinitely. As of July 31, 2018 , we had federal and state research and development tax credit carryforwards of approximately $80.7 million and $82.3 million , respectively as reported on our tax returns. If not utilized, the federal credit carryforwards will expire in various amounts at various dates beginning in the year ending July 31, 2026. The state credit will carry forward indefinitely. As of July 31, 2018 , we had foreign tax credit carryforwards of $3.6 million as reported on our tax returns. If not utilized, the foreign tax credit carryforwards will expire in various amounts at various dates beginning in the year ending July 31, 2021. Utilization of the NOL carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of NOLs and credits before utilization. During the year ended July 31, 2017, we were awarded a tax incentive by a foreign jurisdiction. The incentive is effective through September 30, 2031, and is conditional upon meeting certain investment and employment thresholds. The impact of this incentive on our provision for income taxes was not material for the years ended July 31, 2018 and 2017. As of July 31, 2018 , we had $337.7 million of unrecognized tax benefits, $48.0 million of which would affect income tax expense if recognized, after consideration of our valuation allowance in the United States and other assets. As of July 31, 2017 , we had $301.3 million of unrecognized tax benefits, $34.0 million of which would affect income tax expense if recognized, after consideration of our valuation allowance in the United States and other assets. As of July 31, 2018 , our federal, state, and foreign returns for the tax years 2008 through the current period remain subject to adjustment due to examination. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in earlier years, which have been carried forward and may be audited in subsequent years when utilized. We do not expect the amount of unrecognized tax benefits as of July 31, 2018 to change significantly over the next 12 months. We recognize both interest and penalties associated with uncertain tax positions as a component of income tax expense. During the years ended July 31, 2018 , 2017 , and 2016 , we recognized income tax expense related to interest and penalties of $2.9 million , $2.1 million , and $1.6 million , respectively. We had accrued interest and penalties on our consolidated balance sheets related to unrecognized tax benefits of $8.3 million and $5.4 million as of July 31, 2018 and 2017 , respectively. The ultimate amount and timing of any future cash settlements cannot be predicted with reasonable certainty. The following table presents a reconciliation of the beginning and ending amount of our gross unrecognized tax benefits (in millions): Year Ended July 31, 2018 2017 2016 Unrecognized tax benefits at the beginning of the period $ 301.3 $ 127.7 $ 67.2 Additions for tax positions taken in prior years 3.1 3.1 25.2 Reductions for tax positions taken in prior years (6.3 ) — — Additions for tax positions taken in the current year 39.6 170.5 35.3 Unrecognized tax benefits at the end of the period $ 337.7 $ 301.3 $ 127.7 During the year ended July 31, 2018, our additions for tax positions taken in the current year were primarily attributable to uncertain tax positions related to federal and state research and development credits, withholding taxes, and intercompany transactions. During the year ended July 31, 2017, our additions for tax positions taken in the current year were primarily attributable to uncertainties related to intercompany transactions. During the year ended July 31, 2016, our additions for tax positions taken in prior years and additions for tax positions taken in the current year were primarily attributable to uncertain tax positions relating to federal and state research and development credits, adjustments for California apportionment, and transfer pricing methodologies. As of July 31, 2018 , we had no unremitted earnings when evaluating our outside basis difference relating to our U.S. investment in foreign subsidiaries. However, there could be local withholding taxes payable due to various foreign countries if certain lower tier earnings are distributed. Withholding taxes that would be payable upon remittance of these lower tier earnings were not material as of July 31, 2018. |
Net Loss Per Share (Notes)
Net Loss Per Share (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss by basic weighted-average shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by diluted weighted-average shares outstanding, including potentially dilutive securities. The following table presents the computation of basic and diluted net loss per share of common stock (in millions, except per share data): Year Ended July 31, 2018 2017 2016 Net loss $ (147.9 ) $ (216.6 ) $ (192.7 ) Weighted-average shares used to compute net loss per share, basic and diluted 91.7 90.6 87.1 Net loss per share, basic and diluted $ (1.61 ) $ (2.39 ) $ (2.21 ) The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been antidilutive (in millions): Year Ended July 31, 2018 2017 2016 Convertible senior notes 11.6 5.2 5.2 Warrants related to the issuance of convertible senior notes 11.6 5.2 5.2 RSUs and PSUs 6.7 6.5 6.5 Options to purchase common stock 2.2 1.6 2.1 RSAs and PSAs 0.3 1.0 1.1 ESPP shares 0.2 0.2 0.1 Total 32.6 19.7 20.2 |
Other Income, Net (Notes)
Other Income, Net (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net The following table sets forth the components of other income, net (in millions): Year Ended July 31, 2018 2017 2016 Interest income $ 27.1 $ 14.7 $ 8.8 Foreign currency exchange gains (losses), net 1.7 (3.4 ) — Other (0.3 ) (1.1 ) (0.4 ) Total other income, net $ 28.5 $ 10.2 $ 8.4 |
Employee Benefit Plan (Notes)
Employee Benefit Plan (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan We have established a 401(k) tax-deferred savings plan which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code. In fiscal 2016, we began to make matching contributions based upon the amount of employees’ contributions, subject to certain limitations. Our matching contributions to the plan were immaterial for the years ended July 31, 2018, 2017, and 2016. |
Segment Information (Notes)
Segment Information (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We conduct business globally and are primarily managed on a geographic theater basis. Our chief operating decision maker reviews financial information presented on a consolidated basis accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results, and plans for levels, components, or types of products or services below the consolidated unit level. Accordingly, we are considered to be in a single reportable segment and operating unit structure. The following table presents revenue by geographic theater (in millions): Year Ended July 31, 2018 2017 2016 Revenue: Americas United States $ 1,447.2 $ 1,155.3 $ 901.8 Other Americas 111.5 82.1 71.4 Total Americas 1,558.7 1,237.4 973.2 Europe, the Middle East, and Africa (“EMEA”) 439.3 320.1 247.1 Asia Pacific and Japan (“APAC”) 275.1 204.1 158.2 Total revenue $ 2,273.1 $ 1,761.6 $ 1,378.5 The following table presents revenue for groups of similar products and services (in millions): Year Ended July 31, 2018 2017 2016 Revenue: Product $ 871.5 $ 709.1 $ 670.8 Subscription and support Subscription 759.6 550.8 357.0 Support 642.0 501.7 350.7 Total subscription and support 1,401.6 1,052.5 707.7 Total revenue $ 2,273.1 $ 1,761.6 $ 1,378.5 The following table presents our property and equipment, net by geographic region (in millions): Year Ended July 31, 2018 2017 Property and equipment, net: United States $ 228.4 $ 178.4 International 44.7 32.7 Total property and equipment, net $ 273.1 $ 211.1 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following tables set forth selected unaudited quarterly financial data for the years ended July 31, 2018 and 2017 (in millions, except per share amounts): Three Months Ended Oct. 31, 2017 Jan. 31, 2018 Apr. 30, 2018 Jul. 31, 2018 Revenue: Product $ 186.5 $ 202.2 $ 215.2 $ 267.6 Subscription and support 319.0 340.2 351.9 390.5 Total revenue 505.5 542.4 567.1 658.1 Cost of revenue: Product 57.6 63.9 68.9 82.0 Subscription and support 83.8 95.4 91.0 102.7 Total cost of revenue 141.4 159.3 159.9 184.7 Total gross profit 364.1 383.1 407.2 473.4 Operating expenses: Research and development 94.2 96.6 99.6 110.3 Sales and marketing 258.5 265.0 277.1 297.8 General and administrative 65.7 53.3 82.1 56.7 Total operating expenses 418.4 414.9 458.8 464.8 Operating income (loss) (54.3 ) (31.8 ) (51.6 ) 8.6 Interest expense (6.3 ) (6.4 ) (6.5 ) (10.4 ) Other income, net 4.8 4.9 8.6 10.2 Income (loss) before income taxes (55.8 ) (33.3 ) (49.5 ) 8.4 Provision for (benefit from) income taxes 8.2 1.6 (2.8 ) 10.7 Net loss $ (64.0 ) $ (34.9 ) $ (46.7 ) $ (2.3 ) Net loss per share, basic and diluted $ (0.70 ) $ (0.38 ) $ (0.51 ) $ (0.02 ) Three Months Ended Oct. 31, Jan. 31, Apr. 30, Jul. 31, Revenue: Product $ 163.8 $ 168.8 $ 164.2 $ 212.3 Subscription and support 234.3 253.8 267.6 296.8 Total revenue 398.1 422.6 431.8 509.1 Cost of revenue: Product 42.2 45.8 49.7 63.7 Subscription and support 59.0 67.4 74.0 74.8 Total cost of revenue 101.2 113.2 123.7 138.5 Total gross profit 296.9 309.4 308.1 370.6 Operating expenses: Research and development 84.2 89.9 86.0 87.3 Sales and marketing 220.1 226.7 226.9 245.4 General and administrative 41.6 47.2 44.3 65.2 Total operating expenses 345.9 363.8 357.2 397.9 Operating loss (49.0 ) (54.4 ) (49.1 ) (27.3 ) Interest expense (6.0 ) (6.1 ) (6.2 ) (6.2 ) Other income, net 2.5 2.7 2.1 2.9 Loss before income taxes (52.5 ) (57.8 ) (53.2 ) (30.6 ) Provision for income taxes 4.4 2.8 7.7 7.6 Net loss $ (56.9 ) $ (60.6 ) $ (60.9 ) $ (38.2 ) Net loss per share, basic and diluted $ (0.63 ) $ (0.67 ) $ (0.67 ) $ (0.42 ) |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Credit Agreement On September 4, 2018, we entered into a credit agreement with certain institutional lenders (the “Credit Agreement”) that provides for a $400.0 million unsecured revolving credit facility, with an option to increase the amount of the credit facility by up to an additional $350.0 million , subject to certain conditions including obtaining commitments from existing lenders under the Credit Agreement or new lenders who would become party to the Credit Agreement. Proceeds from borrowings under the Credit Agreement may be used for general corporate purposes, including the financing of working capital requirements. |
Description of Business, Basi26
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) . The consolidated financial statements include all adjustments necessary for a fair presentation of our annual results. All adjustments are of a normal recurring nature. Certain prior-period amounts have been reclassified to conform to current-period presentation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such management estimates include, but are not limited to the best estimate of selling price for our products and services, share-based compensation, fair value of assets acquired and liabilities assumed in business combinations, the assessment of recoverability of our property and equipment, identified intangibles and goodwill, future taxable income, manufacturing partner and supplier liabilities, fair value of debt component of convertible notes, cease-use loss related to facility exit, and loss contingencies. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ materially from those estimates. |
Concentrations | Concentrations Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, accounts receivable, and derivative contracts. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and also enter into master netting arrangements, which permit net settlement of transactions with the same counterparty. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes. Our accounts receivables are primarily derived from our distributors representing various geographical locations. We perform ongoing credit evaluations and generally do not require collateral on accounts receivable. We maintain an allowance for doubtful accounts for estimated potential credit losses. As of July 31, 2018 , four distributors represented 27.9% , 21.5% , 11.5% , and 11.0% of our gross accounts receivable. For fiscal 2018, three distributors represented 33.4% , 23.0% , and 10.7% of our total revenue. We rely on an electronics manufacturing services provider (“EMS provider”) to assemble most of our products and sole source component suppliers for a certain number of our components. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income (loss). Our other comprehensive income (loss) includes unrealized gains and losses on available-for-sale investments and unrealized gains and losses on cash flow hedges. |
Foreign Currency Transactions | Foreign Currency Transactions The functional currency of our foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies have been remeasured into U.S. dollars using the exchange rates in effect at the balance sheet dates. Foreign currency denominated income and expenses have been remeasured using the average exchange rates in effect during each period. Foreign currency remeasurement gains and losses and foreign currency transaction gains and losses are not significant to the financial statements. |
Fair Value | Fair Value We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Goodwill, intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis, only if impairment is indicated. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Investments We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our consolidated balance sheets as cash equivalents, short-term investments, or long-term investments depending on their maturity. We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Investments not considered cash equivalents and with maturities one year or less from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. |
Investments | Cash, Cash Equivalents, and Investments We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our consolidated balance sheets as cash equivalents, short-term investments, or long-term investments depending on their maturity. We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Investments not considered cash equivalents and with maturities one year or less from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each channel partner’s expected ability to pay, and the collection history with each channel partner, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. As of July 31, 2018 and 2017 , the allowance for doubtful accounts activity was not significant. |
Derivatives | Derivatives Our derivative financial instruments are recorded at fair value, on a gross basis, as either assets or liabilities in our consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (“AOCI”) in our consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our consolidated statements of operations when the underlying hedged transaction is recognized in earnings. If it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into the financial statement line item associated with the underlying hedged transaction in our consolidated statements of operations. Gains or losses related to non-designated derivative instruments are recognized in other income (expense), net in our consolidated statements of operations for each period until the instrument matures, is terminated, is re-designated as a qualified cash flow hedge, or is sold. Derivatives designated as cash flow hedges are classified in our consolidated statements of cash flows in the same manner as the underlying hedged transaction, primarily within cash flows from operating activities. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to ten years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the remaining lease term. |
Business Combinations | Business Combinations We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded. |
Intangible Assets | Intangible Assets Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. Acquisition-related in-process research and development represents the fair value of incomplete research and development projects that have not reached technological feasibility as of the date of acquisition. Initially, these assets are not subject to amortization. Assets related to projects that have been completed are transferred to developed technology, which are subject to amortization. |
Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets | Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, including goodwill. If we determine that it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, then the quantitative impairment test will be performed. Under the quantitative impairment test, if the carrying amount of our single reporting unit exceeds its fair value, we will recognize an impairment loss in an amount equal to that excess, but limited to the total amount of goodwill. We evaluate events and changes in circumstances that could indicate carrying amounts of purchased intangible assets and other long-lived assets may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of these assets by determining whether or not the carrying amount will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment loss for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Through July 31, 2018 , we have not recognized any impairment losses on our goodwill and intangible assets. During the year ended July 31, 2017, we recognized an impairment loss of $20.9 million on property and equipment related to the relocation of our corporate headquarters. We did not recognize any impairment losses on our other long-lived assets during the year ended July 31, 2018, or prior to fiscal 2017. |
Manufacturing Partner and Supplier Liabilities | Manufacturing Partner and Supplier Liabilities We outsource most of our manufacturing, repair, and supply chain management operations to our EMS provider and payments to it are a significant portion of our cost of product revenue. Although we could be contractually obligated to purchase manufactured products and components, we generally do not own the manufactured products and components. Product title transfers from our EMS provider to us and immediately to our channel partners upon shipment. Our EMS provider assembles our products using design specifications, quality assurance programs, and standards that we establish and it procures components and assembles our products based on our demand forecasts. These forecasts represent our estimates of future demand for our products based upon historical trends and analysis from our sales and product management functions as adjusted for overall market conditions. If the actual component usage and product demand are significantly lower than forecast, we record a liability for manufacturing purchase commitments in excess of our forecasted demand including costs for excess components or for carrying costs incurred by our manufacturing partners and component suppliers. Through July 31, 2018 , we have not accrued any significant costs associated with this exposure. |
Convertible Senior Notes | Convertible Senior Notes In accounting for the issuance of our convertible senior notes, we separate the notes into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the par value of the notes as a whole. This difference represents a debt discount that is amortized to interest expense using the effective interest method over the term of the notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the notes, we allocate the total amount incurred to the liability and equity components using the same proportions as the proceeds from the notes. Transaction costs attributable to the liability component are netted with the liability component and amortized to interest expense using the effective interest method over the term of the notes. Transaction costs attributable to the equity component are netted with the equity component of the notes in additional paid-in capital in the consolidated balance sheets. When the notes are convertible, the net carrying amount of the notes is classified as a current liability and a portion of the equity component representing the conversion option is reclassified to temporary equity in our consolidated balance sheets. The portion of the equity component classified as temporary equity is measured as the difference between the principal and net carrying amount of the notes, excluding debt issuance costs. |
Revenue Recognition | Revenue Recognition We generate revenue from the sales of hardware and software products, subscriptions, support, and other services primarily through a direct sales force and indirect relationships with channel partners, and, to a lesser extent, directly to end-customers. Revenue is recognized when all of the following criteria are met: • Persuasive Evidence of an Arrangement Exists. We rely upon non-cancelable sales agreements and purchase orders to determine the existence of an arrangement. • Delivery has Occurred. We use shipping documents or transmissions of product or subscription and support contract registration codes to determine delivery. • The Fee is Fixed or Determinable. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction. • Collectability is Reasonably Assured. We assess collectability based on credit analysis and payment history. We recognize product revenue at the time of shipment provided that all other revenue recognition criteria have been met. Our channel partners generally receive an order from an end-customer prior to placing an order with us. In addition, payment from our channel partners is not contingent on the partner’s success in sales to end-customers. Our channel partners generally do not stock appliances and only have limited stock rotation rights and no price protection rights. When necessary, we make certain estimates and maintain allowances for sales returns and other programs based on our historical experience. To date, these estimates have not been significant. We recognize subscription and support revenue ratably over the contractual service period, which is typically one to five years. Other services revenue is recognized as the services are rendered. Most of our arrangements, other than renewals of subscriptions and support contracts, are multiple-element arrangements with a combination of hardware, software, subscriptions, support, and other services. Products, subscriptions, support, and other services generally qualify as separate units of accounting. Our hardware deliverables typically include proprietary operating system software, which together deliver the essential functionality of our products. For multiple-element arrangements, we allocate revenue to each unit of accounting based on an estimated selling price at the arrangement inception. The estimated selling price for each element is based upon the following hierarchy: vendor-specific objective evidence (“VSOE”) of selling price, if available, third-party evidence (“TPE”) of selling price, if VSOE of selling price is not available, or best estimate of selling price (“BESP”), if neither VSOE of selling price nor TPE of selling price are available. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit based on the aforementioned selling price hierarchy. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. In multiple-element arrangements where software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative estimated selling prices of each of the deliverables in the arrangement based on the aforementioned estimated selling price hierarchy. The arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the residual method when VSOE of fair value of the undelivered items exists. Under the residual method, the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. In determining VSOE of fair value, we evaluate whether a substantial majority of the historical prices charged for a product or service sold on a standalone basis, as represented by a percentage of list price, fall within a reasonably narrow range. If VSOE of fair value of one or more undelivered items does not exist, revenue from the software portion of the arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless support is the only undelivered element, in which case, the entire software arrangement fee is recognized ratably over the contractual service period. We account for multiple agreements with a single partner as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. Revenues are reported net of sales taxes. Shipping charges billed to channel partners are included in revenues and related costs are included in cost of revenue. After receipt of a partner order, any amounts billed in excess of revenue recognized are recorded as deferred revenue. |
Deferred Commissions | Deferred Commissions Sales commissions that are incremental and directly related to non-cancelable customer sales contracts are deferred and amortized over the term of the related contract in proportion to the recognized revenue. Short-term deferred commissions are included in prepaid expenses and other current assets, while long-term deferred commissions are included in other assets in our consolidated balance sheets. The amortization of deferred commissions is included in sales and marketing expense in our consolidated statements of operations. |
Advertising Costs | Advertising Costs Advertising costs, which are expensed and included in sales and marketing expense when incurred, were $9.8 million , $13.7 million , and $6.6 million , during the years ended July 31, 2018 , 2017 , and 2016 , respectively. |
Software Development Costs | Software Development Costs Internally developed software includes security software developed to meet our internal needs to provide cloud-based subscription offerings to our end-customers and business software that we customize to meet our specific operational needs. These capitalized costs consist of internal compensation related costs and external direct costs incurred during the application development stage and will be amortized over a useful life of three to five years. The costs to develop software that is marketed externally have not been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility. As such, all related software development costs are expensed as incurred and included in research and development expense in our consolidated statements of operations. |
Share-Based Compensation | Share-Based Compensation Compensation expense related to share-based transactions, including employee and non-employee director awards, is measured and recognized in the financial statements based on fair value on the grant date. We recognize share-based compensation expense for awards with only service conditions on a straight-line basis over the requisite service period of the related award. We recognize share-based compensation expense for awards with market conditions and awards with performance conditions on a straight-line basis over the requisite service period for each separately vesting portion of the award and, for awards with performance conditions, when it is probable that the performance condition will be achieved. We account for forfeitures of all share-based payment awards when they occur. |
Leases | Leases We rent our facilities under operating lease agreements and recognize related rent expense on a straight-line basis over the term of the lease. Some of our lease agreements contain rent holidays, scheduled rent increases, lease incentives, and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. We begin recognizing rent expense on the date that we obtain the legal right to use and control the leased space. Upon exiting a leased property before the lease term expires, we assess the fair value of our remaining obligation under the lease and record a cease-use loss, if needed. The cease-use loss is calculated as the present value of the amount by which the remaining lease obligation, adjusted for the effects of any deferred items recognized under the lease and related costs, exceeds the estimated sublease rentals that could be reasonably obtained. The cease-use loss will be adjusted as a result of the remeasurement of the cease-use liability if the timing or amount of estimated cash flows change. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. We apply the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We record deferred tax charges in prepaid expenses and other current assets and other assets on our consolidated balance sheets. These deferred tax charges are amortized on a straight-line basis over the life of the associated assets as a component of provision for income taxes in our consolidated statements of operations. |
Loss Contingencies | Loss Contingencies We are subject to the possibility of various loss contingencies arising in the ordinary course of business. In determining loss contingencies, we consider the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. We regularly evaluate current information available to us to determine whether an accrual is required, an accrual should be adjusted or a range of possible loss should be disclosed. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Derivatives and Hedging In August 2017, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on derivatives and hedging to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships, and the presentation of hedge results. We early adopted the standard in our second quarter of fiscal 2018 on a modified retrospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Business Combinations - Definition of a Business In January 2017, the FASB issued authoritative guidance clarifying the definition of a business to assist companies with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a prospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements. Statement of Cash Flows - Restricted Cash In November 2016, the FASB issued authoritative guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. Under the new standard, restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements because our restricted cash balance has not been material. Income Taxes - Intra-Entity Asset Transfers In October 2016, the FASB issued authoritative guidance requiring the recognition of income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a modified retrospective basis through a cumulative-effect adjustment to accumulated deficit as of the date of adoption. We will adopt the standard in our first quarter of fiscal 2019 and anticipate an increase in accumulated deficit of approximately $28.4 million upon adoption related to the reclassification of unrecognized income tax effects from intra-entity transfers of assets other than inventory that occurred prior to the date of adoption. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued new authoritative guidance addressing eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard is effective for us in our first quarter of fiscal 2019 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued new authoritative guidance on the accounting for credit losses on most financial assets and certain financial instruments. The standard replaces the existing incurred loss model with an expected credit loss model for financial assets measured at amortized cost, including trade receivables, and requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The standard is effective for us in our first quarter of fiscal 2021 and will be applied on a modified retrospective basis. Early adoption is permitted beginning our first quarter of fiscal 2020. We are currently evaluating whether this standard will have a material impact on our consolidated financial statements. Leases In February 2016, the FASB issued new authoritative guidance on lease accounting. Among its provisions, the standard requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases and also requires additional qualitative and quantitative disclosures about lease arrangements. The standard is effective for us in our first quarter of fiscal 2020 and will be applied on a modified retrospective basis, with the option to elect certain practical expedients. Early adoption is permitted. We are currently evaluating whether this standard will have a material impact on our consolidated financial statements. Revenue Recognition In May 2014, the FASB issued new authoritative guidance on revenue from contracts with customers. The new standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services, as well as guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The standard also requires expanded disclosures about the nature, amount, timing, and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The standard is effective for us in our first quarter of fiscal 2019 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance (“full retrospective method”); or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance (“modified retrospective method”). We will adopt the standard in our first quarter of fiscal 2019 using the full retrospective method. In preparation for the new standard, we have updated our accounting policies, processes, internal controls over financial reporting, and system requirements. We have also finalized our assessment of the new standard, which will impact our accounting for revenue arrangements in the following areas: • removal of the current limitation on contingent revenue may result in revenue being recognized earlier for certain contracts; • term license revenue associated with our virtual firewalls will be recognized upfront; • allocation of revenue related to software due to the removal of the residual method of revenue recognition; and • amortization period for incremental costs to obtain customer contracts, which primarily consist of sales commissions. These changes did not have a material impact on our consolidated financial statements for the fiscal years ended July 31, 2018 and 2017, with the exception of the accounting for incremental costs to obtain customer contracts due to the longer period of amortization. Under the current accounting guidance, we defer and amortize these costs over the term of the related contract. Under the new standard, we will defer and amortize these costs for initial contracts that are not commensurate with renewal commissions over a benefit period of five years, which is typically longer than the initial contract term. The following tables present the expected impact of adoption of the new standard on our reported results for select consolidated statement of operations and consolidated balance sheet line items (in millions, except per share data): Year Ended July 31, 2018 Year Ended July 31, 2017 As Reported Impact of Adoption As Adjusted As Previously Reported Impact of Adoption As Adjusted Consolidated Statements of Operations Product revenue $ 871.5 $ 8.3 $ 879.8 $ 709.1 $ (0.6 ) $ 708.5 Subscription and support revenue 1,401.6 (7.8 ) 1,393.8 1,052.5 (5.9 ) 1,046.6 Total revenue 2,273.1 0.5 2,273.6 1,761.6 (6.5 ) 1,755.1 Total operating expenses 1,756.9 (24.2 ) 1,732.7 1,464.8 (20.3 ) 1,444.5 Operating loss (129.1 ) 24.9 (104.2 ) (179.8 ) 14.0 (165.8 ) Net loss (147.9 ) 25.7 (122.2 ) (216.6 ) 13.6 (203.0 ) Net loss per share, basic and diluted $ (1.61 ) $ 0.28 $ (1.33 ) $ (2.39 ) $ 0.15 $ (2.24 ) July 31, 2018 As Reported Impact of Adoption As Adjusted Consolidated Balance Sheet Accounts receivable, net $ 467.3 $ (0.3 ) $ 467.0 Prepaid expenses and other current assets 261.3 6.8 268.1 Other assets 206.8 119.4 326.2 Accrued and other liabilities 107.0 17.6 124.6 Deferred revenue 1,268.9 (55.3 ) 1,213.6 Long-term deferred revenue 1,096.0 (30.3 ) 1,065.7 Accumulated deficit (984.6 ) 193.9 (790.7 ) The adoption of the standard will not impact net cash flows from operating, investing, or financing activities in our consolidated statements of cash flows. The exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. |
Fair Value Measurements | Fair Value Measurements We categorize assets and liabilities recorded or disclosed at fair value on our consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. • Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. |
Description of Business, Basi27
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of expected impact from adoption of new accounting pronouncement - accounting for revenue contracts with customers | The following tables present the expected impact of adoption of the new standard on our reported results for select consolidated statement of operations and consolidated balance sheet line items (in millions, except per share data): Year Ended July 31, 2018 Year Ended July 31, 2017 As Reported Impact of Adoption As Adjusted As Previously Reported Impact of Adoption As Adjusted Consolidated Statements of Operations Product revenue $ 871.5 $ 8.3 $ 879.8 $ 709.1 $ (0.6 ) $ 708.5 Subscription and support revenue 1,401.6 (7.8 ) 1,393.8 1,052.5 (5.9 ) 1,046.6 Total revenue 2,273.1 0.5 2,273.6 1,761.6 (6.5 ) 1,755.1 Total operating expenses 1,756.9 (24.2 ) 1,732.7 1,464.8 (20.3 ) 1,444.5 Operating loss (129.1 ) 24.9 (104.2 ) (179.8 ) 14.0 (165.8 ) Net loss (147.9 ) 25.7 (122.2 ) (216.6 ) 13.6 (203.0 ) Net loss per share, basic and diluted $ (1.61 ) $ 0.28 $ (1.33 ) $ (2.39 ) $ 0.15 $ (2.24 ) July 31, 2018 As Reported Impact of Adoption As Adjusted Consolidated Balance Sheet Accounts receivable, net $ 467.3 $ (0.3 ) $ 467.0 Prepaid expenses and other current assets 261.3 6.8 268.1 Other assets 206.8 119.4 326.2 Accrued and other liabilities 107.0 17.6 124.6 Deferred revenue 1,268.9 (55.3 ) 1,213.6 Long-term deferred revenue 1,096.0 (30.3 ) 1,065.7 Accumulated deficit (984.6 ) 193.9 (790.7 ) The adoption of the standard will not impact net cash flows from operating, investing, or financing activities in our consolidated statements of cash flows. The exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities | The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 July 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,512.3 $ — $ — $ 1,512.3 $ — $ — $ — $ — Commercial paper — 52.0 — 52.0 — — — — U.S. government and agency securities — 397.3 — 397.3 — — — — Total cash equivalents 1,512.3 449.3 — 1,961.6 — — — — Short-term investments: Certificates of deposit — 5.4 — 5.4 — — — — Non-U.S. government securities — 20.0 — 20.0 — — — — Commercial paper — 22.3 — 22.3 — — — — Corporate debt securities — 139.8 — 139.8 — 159.4 — 159.4 U.S. government and agency securities — 709.0 — 709.0 — 471.3 — 471.3 Total short-term investments — 896.5 — 896.5 — 630.7 — 630.7 Long-term investments: Certificates of deposit — — — — — 5.4 — 5.4 Corporate debt securities — 153.6 — 153.6 — 186.5 — 186.5 U.S. government and agency securities — 393.9 — 393.9 — 597.4 — 597.4 Total long-term investments — 547.5 — 547.5 — 789.3 — 789.3 Total assets measured at fair value $ 1,512.3 $ 1,893.3 $ — $ 3,405.6 $ — $ 1,420.0 $ — $ 1,420.0 Accrued and other liabilities: Foreign currency forward contracts $ — $ 6.9 $ — $ 6.9 $ — $ — $ — $ — Total accrued and other liabilities — 6.9 — 6.9 — — — — Total liabilities measured at fair value $ — $ 6.9 $ — $ 6.9 $ — $ — $ — $ — |
Cash Equivalents and Investme29
Cash Equivalents and Investments (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale investments | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale securities as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 1,512.3 $ — $ — $ 1,512.3 Commercial paper 52.0 — — 52.0 U.S. government and agency securities 397.3 — — 397.3 Total cash equivalents $ 1,961.6 $ — $ — $ 1,961.6 Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Non-U.S. government securities 20.0 — — 20.0 Commercial paper 22.3 — — 22.3 Corporate debt securities 295.9 — (2.5 ) 293.4 U.S. government and agency securities 1,110.6 — (7.7 ) 1,102.9 Total investments $ 1,454.2 $ — $ (10.2 ) $ 1,444.0 July 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Corporate debt securities 346.1 0.3 (0.5 ) 345.9 U.S. government and agency securities 1,071.2 0.1 (2.6 ) 1,068.7 Total investments $ 1,422.7 $ 0.4 $ (3.1 ) $ 1,420.0 |
Contractual maturities of available-for-sale investments | The following table summarizes the amortized cost and fair value of our available-for-sale securities as of July 31, 2018 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 2,861.3 $ 2,858.1 Due between one and three years 554.5 547.5 Total $ 3,415.8 $ 3,405.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Evident.io, Inc. | |
Business Acquisition | |
Schedule of recognized identified assets acquired and liabilities assumed | We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions): Amount Goodwill $ 209.8 Identified intangible assets 85.1 Net liabilities assumed (2.0 ) Total $ 292.9 |
Schedule of finite-lived intangible assets acquired as part of business combination | The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 68.4 6 years Trade name and trademarks 8.5 8 years Customer relationships 8.2 8 years Total $ 85.1 |
Cyber Secdo Ltd. | |
Business Acquisition | |
Schedule of recognized identified assets acquired and liabilities assumed | We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions): Amount Goodwill $ 68.6 Identified intangible assets 17.3 Net liabilities assumed (3.2 ) Total $ 82.7 |
Schedule of finite-lived intangible assets acquired as part of business combination | The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 16.4 5 years Customer relationships 0.9 2 years Total $ 17.3 |
LightCyber Ltd. | |
Business Acquisition | |
Schedule of recognized identified assets acquired and liabilities assumed | We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on their estimated fair values, as presented in the following table (in millions): Amount Cash $ 12.4 Goodwill 75.3 Identified intangible assets 19.5 Net liabilities assumed (4.1 ) Total $ 103.1 |
Schedule of finite-lived intangible assets acquired as part of business combination | The following table presents details of the identified intangible assets acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 16.6 8 years Customer relationships 2.9 8 years Total $ 19.5 |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents details of our goodwill during the year ended July 31, 2018 (in millions): Amount Balance as of July 31, 2017 $ 238.8 Goodwill acquired 284.0 Balance as of July 31, 2018 $ 522.8 |
Schedule of finite-lived intangible assets by major class | The following table presents details of our purchased intangible assets as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 154.7 $ (38.2 ) $ 116.5 $ 69.7 $ (23.8 ) $ 45.9 Customer relationships 12.2 (1.2 ) 11.0 3.1 (0.4 ) 2.7 Acquired intellectual property 8.9 (4.5 ) 4.4 8.9 (3.8 ) 5.1 Trade name and trademarks 8.5 (0.4 ) 8.1 — — — Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 186.5 (46.5 ) 140.0 83.9 (30.2 ) 53.7 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 — — — Total purchased intangible assets $ 187.3 $ (46.5 ) $ 140.8 $ 83.9 $ (30.2 ) $ 53.7 |
Schedule of indefinite-lived intangible assets by major class | The following table presents details of our purchased intangible assets as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 154.7 $ (38.2 ) $ 116.5 $ 69.7 $ (23.8 ) $ 45.9 Customer relationships 12.2 (1.2 ) 11.0 3.1 (0.4 ) 2.7 Acquired intellectual property 8.9 (4.5 ) 4.4 8.9 (3.8 ) 5.1 Trade name and trademarks 8.5 (0.4 ) 8.1 — — — Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 186.5 (46.5 ) 140.0 83.9 (30.2 ) 53.7 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 — — — Total purchased intangible assets $ 187.3 $ (46.5 ) $ 140.8 $ 83.9 $ (30.2 ) $ 53.7 |
Future amortization expense of intangible assets | The following table summarizes our estimated future amortization expense of intangible assets as of July 31, 2018 (in millions): Amount Years ending July 31: 2019 $ 27.8 2020 27.7 2021 25.7 2022 21.2 2023 18.8 2024 and thereafter 18.8 Total future amortization expense $ 140.0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table presents details of our property and equipment, net as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Computers, equipment, and software $ 217.9 $ 156.6 Leasehold improvements 159.5 110.1 Demonstration units 33.0 26.3 Furniture and fixtures 24.6 20.4 Total property and equipment 435.0 313.4 Less: accumulated depreciation (161.9 ) (102.3 ) Total property and equipment, net $ 273.1 $ 211.1 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible notes details | The following table presents details of the Notes (number of shares in millions): Conversion Rate per $1,000 Principal Initial Conversion Price Convertible Date Number of Shares 2019 Notes 9.0680 $ 110.28 January 1, 2019 5.2 2023 Notes 3.7545 $ 266.35 April 1, 2023 6.4 |
Components of convertible senior notes | The following table sets forth the components of the Notes as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 July 31, 2017 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Liability component: Principal $ 575.0 $ 1,693.0 $ 2,268.0 $ 575.0 $ — $ 575.0 Less: debt discount and debt issuance costs, net of amortization 24.6 323.3 347.9 50.3 — 50.3 Net carrying amount $ 550.4 $ 1,369.7 $ 1,920.1 $ 524.7 $ — $ 524.7 Equity component (including amounts classified as temporary equity) $ 109.8 $ 315.0 $ 424.8 $ 109.8 $ — $ 109.8 |
Interest expense recognized related to the convertible senior notes | The following table sets forth interest expense recognized related to the Notes (dollars in millions): Year Ended July 31, 2018 Year Ended July 31, 2017 Year Ended July 31, 2016 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Contractual interest expense $ — $ 0.7 $ 0.7 $ — $ — $ — $ — $ — $ — Amortization of debt discount 22.9 3.0 25.9 22.0 — 22.0 21.1 — 21.1 Amortization of debt issuance costs 2.8 0.1 2.9 2.5 — 2.5 2.3 — 2.3 Total interest expense recognized $ 25.7 $ 3.8 $ 29.5 $ 24.5 $ — $ 24.5 $ 23.4 $ — $ 23.4 Effective interest rate of the liability component 4.8 % 5.2 % 4.8 % — % 4.8 % — % |
Note hedges details | The following table presents details of the Note Hedges (in millions): Shares Aggregate Purchase 2019 Note Hedges 5.2 $ 111.0 2023 Note Hedges 6.4 $ 332.0 |
Warrants details | The following table presents details of the Warrants (in millions, except per share data): Shares Strike Price per Share Aggregate Proceeds 2019 Warrants 5.2 $ 137.85 $ 78.3 2023 Warrants 6.4 $ 417.80 $ 145.4 |
Commitments and Contingencies34
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | The following table presents details of the aggregate future non-cancelable minimum rental payments under our operating leases as of July 31, 2018 (in millions): Amount Years ending July 31: 2019 $ 66.3 2020 68.2 2021 64.0 2022 59.8 2023 58.5 2024 and thereafter 223.8 Committed gross lease payments 540.6 Less: proceeds from sublease rental 14.0 Net operating lease obligation $ 526.6 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock options activity | The following table summarizes the stock option activity, including PSOs, under our stock plans during the reporting period (in millions, except per share amounts): Options Outstanding Number Weighted- Weighted- Aggregate Balance—July 31, 2017 1.6 $ 13.11 4.2 $ 190.6 Options granted 1.2 $ 198.50 Options forfeited — $ — Options exercised (0.6 ) $ 12.76 Balance—July 31, 2018 2.2 $ 109.12 5.2 $ 199.8 Options exercisable—July 31, 2018 1.1 $ 13.28 3.2 $ 199.8 |
Schedule of restricted stock award (“RSA”), performance-based stock award (“PSA”), restricted stock unit (”RSU”), and performance stock unit (“PSU”) activities | The following table summarizes the RSA, PSA, RSU, and PSU activity under our stock plans during the reporting period (in millions, except per share amounts): RSAs and PSAs Outstanding RSUs and PSUs Outstanding Number Weighted- Number Weighted- Weighted- Aggregate Balance—July 31, 2017 1.0 $ 163.55 6.5 $ 141.16 1.3 $ 854.1 Granted (1) — $ — 4.1 $ 170.44 Vested (0.5 ) $ 168.62 (3.3 ) $ 138.75 Forfeited (0.2 ) $ 157.49 (0.6 ) $ 144.33 Balance—July 31, 2018 0.3 $ 160.85 6.7 $ 160.20 1.6 $ 1,335.2 ______________ (1) For PSAs and PSUs, shares granted represents the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. |
Schedule of shares available for grant | The following table presents the stock activity and the total number of shares available for grant under our stock plans as of July 31, 2018 (in millions): Number of shares Balance—July 31, 2017 8.8 Authorized 4.1 Options, RSUs, and PSUs granted (5.3 ) RSAs, PSAs, and RSUs forfeited 0.8 Shares withheld for taxes 0.4 Balance—July 31, 2018 8.8 |
Schedule of assumptions used and resulting grant-date fair values of our ESPP | The fair value of shares issued under our 2012 ESPP are estimated on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Year Ended July 31, 2018 2017 2016 Volatility 26.8% - 43.6% 41.0% - 50.1% 33.4 % - 45.5% Expected term (in years) 0.5 - 2.0 0.5 0.5 Dividend yield — % — % — % Risk-free interest rate 1.2% - 2.3% 0.5% - 0.9% 0.2% - 0.5% Grant-date fair value per share $34.94 - $65.04 $34.15 - $39.65 $43.07 - $44.62 |
Schedule of allocation of share based compensation expense | The following table summarizes share-based compensation included in costs and expenses (in millions): Year Ended July 31, 2018 2017 2016 Cost of product revenue $ 7.0 $ 7.3 $ 6.2 Cost of subscription and support revenue 66.7 56.2 40.9 Research and development 145.2 152.6 132.9 Sales and marketing 208.0 186.5 152.4 General and administrative 77.0 73.1 60.5 Total share-based compensation $ 503.9 $ 475.7 $ 392.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | The following table presents the components of income (loss) before income taxes (in millions): Year Ended July 31, 2018 2017 2016 United States $ (192.1 ) $ (210.0 ) $ (195.3 ) Foreign 61.9 15.9 23.0 Total $ (130.2 ) $ (194.1 ) $ (172.3 ) |
Schedule of components of income tax expense | The following table summarizes our provision for income taxes (in millions): Year Ended July 31, 2018 2017 2016 Federal: Current $ (0.6 ) $ 3.4 $ 1.9 Deferred (3.3 ) — (0.6 ) State: Current 1.6 0.9 1.1 Deferred (1.3 ) — (0.1 ) Foreign: Current 23.3 19.7 19.1 Deferred (2.0 ) (1.5 ) (1.0 ) Total $ 17.7 $ 22.5 $ 20.4 |
Schedule of effective income tax rate reconciliation | The following table presents the items accounting for the difference between income taxes computed at the federal statutory income tax rate and our provision for income taxes: Year Ended July 31, 2018 2017 2016 Federal statutory rate 26.8 % 35.0 % 35.0 % Effect of: State taxes, net of federal tax benefit 5.0 2.8 (1.7 ) Foreign income at other than U.S. rates 12.6 (14.4 ) (7.8 ) Change in valuation allowance 29.0 (39.4 ) (25.4 ) Effect of U.S. tax law change (104.6 ) — — Share-based compensation 8.6 1.6 (15.9 ) Amortization of deferred tax charges (6.5 ) (3.6 ) (3.4 ) Research credits 25.4 10.1 11.3 Non-deductible expenses (4.9 ) (3.0 ) (1.3 ) Other, net (5.0 ) (0.7 ) (2.6 ) Total (13.6 )% (11.6 )% (11.8 )% |
Schedule of deferred tax assets and liabilities | The following table presents the components of our deferred tax assets and liabilities as of July 31, 2018 and July 31, 2017 (in millions): July 31, 2018 2017 Deferred tax assets: Accruals and reserves $ 59.6 $ 30.0 Deferred revenue 132.9 133.5 Net operating loss carryforwards 189.5 245.3 Research and development and foreign tax credits 113.4 69.3 Share-based compensation 21.4 45.4 Gross deferred tax assets 516.8 523.5 Valuation allowance (420.1 ) (464.1 ) Total deferred tax assets 96.7 59.4 Deferred tax liabilities: Fixed assets and intangible assets (43.3 ) (13.5 ) Deferred commissions (34.0 ) (36.8 ) Other deferred tax liabilities (10.9 ) (4.0 ) Total deferred tax liabilities (88.2 ) (54.3 ) Total $ 8.5 $ 5.1 |
Schedule of unrecognized tax benefits roll-forward | The following table presents a reconciliation of the beginning and ending amount of our gross unrecognized tax benefits (in millions): Year Ended July 31, 2018 2017 2016 Unrecognized tax benefits at the beginning of the period $ 301.3 $ 127.7 $ 67.2 Additions for tax positions taken in prior years 3.1 3.1 25.2 Reductions for tax positions taken in prior years (6.3 ) — — Additions for tax positions taken in the current year 39.6 170.5 35.3 Unrecognized tax benefits at the end of the period $ 337.7 $ 301.3 $ 127.7 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net loss per share of common stock | The following table presents the computation of basic and diluted net loss per share of common stock (in millions, except per share data): Year Ended July 31, 2018 2017 2016 Net loss $ (147.9 ) $ (216.6 ) $ (192.7 ) Weighted-average shares used to compute net loss per share, basic and diluted 91.7 90.6 87.1 Net loss per share, basic and diluted $ (1.61 ) $ (2.39 ) $ (2.21 ) |
Schedule of antidilutive securities excluded from computation of net loss per share | The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been antidilutive (in millions): Year Ended July 31, 2018 2017 2016 Convertible senior notes 11.6 5.2 5.2 Warrants related to the issuance of convertible senior notes 11.6 5.2 5.2 RSUs and PSUs 6.7 6.5 6.5 Options to purchase common stock 2.2 1.6 2.1 RSAs and PSAs 0.3 1.0 1.1 ESPP shares 0.2 0.2 0.1 Total 32.6 19.7 20.2 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income, net | The following table sets forth the components of other income, net (in millions): Year Ended July 31, 2018 2017 2016 Interest income $ 27.1 $ 14.7 $ 8.8 Foreign currency exchange gains (losses), net 1.7 (3.4 ) — Other (0.3 ) (1.1 ) (0.4 ) Total other income, net $ 28.5 $ 10.2 $ 8.4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue from external customers by geographic areas | The following table presents revenue by geographic theater (in millions): Year Ended July 31, 2018 2017 2016 Revenue: Americas United States $ 1,447.2 $ 1,155.3 $ 901.8 Other Americas 111.5 82.1 71.4 Total Americas 1,558.7 1,237.4 973.2 Europe, the Middle East, and Africa (“EMEA”) 439.3 320.1 247.1 Asia Pacific and Japan (“APAC”) 275.1 204.1 158.2 Total revenue $ 2,273.1 $ 1,761.6 $ 1,378.5 |
Revenue from external customers by products and services | The following table presents revenue for groups of similar products and services (in millions): Year Ended July 31, 2018 2017 2016 Revenue: Product $ 871.5 $ 709.1 $ 670.8 Subscription and support Subscription 759.6 550.8 357.0 Support 642.0 501.7 350.7 Total subscription and support 1,401.6 1,052.5 707.7 Total revenue $ 2,273.1 $ 1,761.6 $ 1,378.5 |
Long-lived assets by geographic areas | The following table presents our property and equipment, net by geographic region (in millions): Year Ended July 31, 2018 2017 Property and equipment, net: United States $ 228.4 $ 178.4 International 44.7 32.7 Total property and equipment, net $ 273.1 $ 211.1 |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following tables set forth selected unaudited quarterly financial data for the years ended July 31, 2018 and 2017 (in millions, except per share amounts): Three Months Ended Oct. 31, 2017 Jan. 31, 2018 Apr. 30, 2018 Jul. 31, 2018 Revenue: Product $ 186.5 $ 202.2 $ 215.2 $ 267.6 Subscription and support 319.0 340.2 351.9 390.5 Total revenue 505.5 542.4 567.1 658.1 Cost of revenue: Product 57.6 63.9 68.9 82.0 Subscription and support 83.8 95.4 91.0 102.7 Total cost of revenue 141.4 159.3 159.9 184.7 Total gross profit 364.1 383.1 407.2 473.4 Operating expenses: Research and development 94.2 96.6 99.6 110.3 Sales and marketing 258.5 265.0 277.1 297.8 General and administrative 65.7 53.3 82.1 56.7 Total operating expenses 418.4 414.9 458.8 464.8 Operating income (loss) (54.3 ) (31.8 ) (51.6 ) 8.6 Interest expense (6.3 ) (6.4 ) (6.5 ) (10.4 ) Other income, net 4.8 4.9 8.6 10.2 Income (loss) before income taxes (55.8 ) (33.3 ) (49.5 ) 8.4 Provision for (benefit from) income taxes 8.2 1.6 (2.8 ) 10.7 Net loss $ (64.0 ) $ (34.9 ) $ (46.7 ) $ (2.3 ) Net loss per share, basic and diluted $ (0.70 ) $ (0.38 ) $ (0.51 ) $ (0.02 ) Three Months Ended Oct. 31, Jan. 31, Apr. 30, Jul. 31, Revenue: Product $ 163.8 $ 168.8 $ 164.2 $ 212.3 Subscription and support 234.3 253.8 267.6 296.8 Total revenue 398.1 422.6 431.8 509.1 Cost of revenue: Product 42.2 45.8 49.7 63.7 Subscription and support 59.0 67.4 74.0 74.8 Total cost of revenue 101.2 113.2 123.7 138.5 Total gross profit 296.9 309.4 308.1 370.6 Operating expenses: Research and development 84.2 89.9 86.0 87.3 Sales and marketing 220.1 226.7 226.9 245.4 General and administrative 41.6 47.2 44.3 65.2 Total operating expenses 345.9 363.8 357.2 397.9 Operating loss (49.0 ) (54.4 ) (49.1 ) (27.3 ) Interest expense (6.0 ) (6.1 ) (6.2 ) (6.2 ) Other income, net 2.5 2.7 2.1 2.9 Loss before income taxes (52.5 ) (57.8 ) (53.2 ) (30.6 ) Provision for income taxes 4.4 2.8 7.7 7.6 Net loss $ (56.9 ) $ (60.6 ) $ (60.9 ) $ (38.2 ) Net loss per share, basic and diluted $ (0.63 ) $ (0.67 ) $ (0.67 ) $ (0.42 ) |
Description of Business, Basi41
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Concentrations) (Details) | 12 Months Ended |
Jul. 31, 2018distributor | |
Accounts receivable | |
Concentration Risk | |
Number of customers | 4 |
Accounts receivable | Customer A | |
Concentration Risk | |
Percentage | 27.90% |
Accounts receivable | Customer B | |
Concentration Risk | |
Percentage | 21.50% |
Accounts receivable | Customer C | |
Concentration Risk | |
Percentage | 11.50% |
Accounts receivable | Customer D | |
Concentration Risk | |
Percentage | 11.00% |
Revenue | |
Concentration Risk | |
Number of customers | 3 |
Revenue | Customer A | |
Concentration Risk | |
Percentage | 33.40% |
Revenue | Customer B | |
Concentration Risk | |
Percentage | 23.00% |
Revenue | Customer C | |
Concentration Risk | |
Percentage | 10.70% |
Description of Business, Basi42
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Jul. 31, 2018 | |
Minimum | |
Property and Equipment | |
Useful life (in years) | 3 years |
Maximum | |
Property and Equipment | |
Useful life (in years) | 10 years |
Description of Business, Basi43
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Impairment of Long-Lived Assets) (Details) $ in Millions | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impairment of property and equipment | $ 20.9 |
Description of Business, Basi44
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended |
Jul. 31, 2018 | |
Minimum | |
Revenue Recognition | |
Contractual service period of subscription and support contracts | 1 year |
Maximum | |
Revenue Recognition | |
Contractual service period of subscription and support contracts | 5 years |
Description of Business, Basi45
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs | $ 9.8 | $ 13.7 | $ 6.6 |
Description of Business, Basi46
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Software Development Costs) (Details) | 12 Months Ended |
Jul. 31, 2018 | |
Minimum | |
Property and Equipment | |
Useful life (in years) | 3 years |
Maximum | |
Property and Equipment | |
Useful life (in years) | 10 years |
Software development costs | Minimum | |
Property and Equipment | |
Useful life (in years) | 3 years |
Software development costs | Maximum | |
Property and Equipment | |
Useful life (in years) | 5 years |
Description of Business, Basi47
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Recently Issued Accounting Pronouncements) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Product revenue | $ 267.6 | $ 215.2 | $ 202.2 | $ 186.5 | $ 212.3 | $ 164.2 | $ 168.8 | $ 163.8 | $ 871.5 | $ 709.1 | $ 670.8 |
Subscription and support revenue | 390.5 | 351.9 | 340.2 | 319 | 296.8 | 267.6 | 253.8 | 234.3 | 1,401.6 | 1,052.5 | 707.7 |
Total revenue | 658.1 | 567.1 | 542.4 | 505.5 | 509.1 | 431.8 | 422.6 | 398.1 | 2,273.1 | 1,761.6 | 1,378.5 |
Total operating expenses | 464.8 | 458.8 | 414.9 | 418.4 | 397.9 | 357.2 | 363.8 | 345.9 | 1,756.9 | 1,464.8 | 1,165.8 |
Operating loss | 8.6 | (51.6) | (31.8) | (54.3) | (27.3) | (49.1) | (54.4) | (49) | (129.1) | (179.8) | (157.3) |
Net loss | $ (2.3) | $ (46.7) | $ (34.9) | $ (64) | $ (38.2) | $ (60.9) | $ (60.6) | $ (56.9) | $ (147.9) | $ (216.6) | $ (192.7) |
Net loss per share, basic and diluted | $ (0.02) | $ (0.51) | $ (0.38) | $ (0.70) | $ (0.42) | $ (0.67) | $ (0.67) | $ (0.63) | $ (1.61) | $ (2.39) | $ (2.21) |
Statement of Financial Position [Abstract] | |||||||||||
Accounts receivable, net | $ 467.3 | $ 432.1 | $ 467.3 | $ 432.1 | |||||||
Prepaid expenses and other current assets | 261.3 | 169.2 | 261.3 | 169.2 | |||||||
Other assets | 206.8 | 169.1 | 206.8 | 169.1 | |||||||
Accrued and other liabilities | 107 | 79.9 | 107 | 79.9 | |||||||
Deferred revenue | 1,268.9 | 968.4 | 1,268.9 | 968.4 | |||||||
Long-term deferred revenue | 1,096 | 805.1 | 1,096 | 805.1 | |||||||
Accumulated deficit | (984.6) | $ (836.7) | (984.6) | (836.7) | |||||||
Pro forma | |||||||||||
Income Statement [Abstract] | |||||||||||
Product revenue | 879.8 | 708.5 | |||||||||
Subscription and support revenue | 1,393.8 | 1,046.6 | |||||||||
Total revenue | 2,273.6 | 1,755.1 | |||||||||
Total operating expenses | 1,732.7 | 1,444.5 | |||||||||
Operating loss | (104.2) | (165.8) | |||||||||
Net loss | $ (122.2) | $ (203) | |||||||||
Net loss per share, basic and diluted | $ (1.33) | $ (2.24) | |||||||||
Statement of Financial Position [Abstract] | |||||||||||
Accounts receivable, net | 467 | $ 467 | |||||||||
Prepaid expenses and other current assets | 268.1 | 268.1 | |||||||||
Other assets | 326.2 | 326.2 | |||||||||
Accrued and other liabilities | 124.6 | 124.6 | |||||||||
Deferred revenue | 1,213.6 | 1,213.6 | |||||||||
Long-term deferred revenue | 1,065.7 | 1,065.7 | |||||||||
Accumulated deficit | (790.7) | $ (790.7) | |||||||||
New accounting pronouncement - accounting for revenue contracts with customers | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle | |||||||||||
Capitalized contract costs amortization term (in years) | 5 years | ||||||||||
New accounting pronouncement - accounting for revenue contracts with customers | Impact of adoption | Pro forma | |||||||||||
Income Statement [Abstract] | |||||||||||
Product revenue | $ 8.3 | $ (0.6) | |||||||||
Subscription and support revenue | (7.8) | (5.9) | |||||||||
Total revenue | 0.5 | (6.5) | |||||||||
Total operating expenses | (24.2) | (20.3) | |||||||||
Operating loss | 24.9 | 14 | |||||||||
Net loss | $ 25.7 | $ 13.6 | |||||||||
Net loss per share, basic and diluted | $ 0.28 | $ 0.15 | |||||||||
Statement of Financial Position [Abstract] | |||||||||||
Accounts receivable, net | (0.3) | $ (0.3) | |||||||||
Prepaid expenses and other current assets | 6.8 | 6.8 | |||||||||
Other assets | 119.4 | 119.4 | |||||||||
Accrued and other liabilities | 17.6 | 17.6 | |||||||||
Deferred revenue | (55.3) | (55.3) | |||||||||
Long-term deferred revenue | (30.3) | (30.3) | |||||||||
Accumulated deficit | $ 193.9 | 193.9 | |||||||||
Accumulated deficit | |||||||||||
Income Statement [Abstract] | |||||||||||
Net loss | (147.9) | $ (216.6) | $ (192.7) | ||||||||
Accumulated deficit | New accounting pronouncement - intra-entity asset transfers | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle | |||||||||||
Cumulative-effect adjustment expected from adoption - increase in accumulated deficit | $ 28.4 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impairment of property and equipment | $ 20.9 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | $ 1,961.6 |
Short-term investments | 630.7 | 896.5 |
Long-term investments | 789.3 | 547.5 |
Total assets measured at fair value | 1,420 | 3,405.6 |
Accrued and other liabilities | 0 | 6.9 |
Total liabilities measured at fair value | 0 | 6.9 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 1,512.3 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total assets measured at fair value | 0 | 1,512.3 |
Accrued and other liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 449.3 |
Short-term investments | 630.7 | 896.5 |
Long-term investments | 789.3 | 547.5 |
Total assets measured at fair value | 1,420 | 1,893.3 |
Accrued and other liabilities | 0 | 6.9 |
Total liabilities measured at fair value | 0 | 6.9 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Accrued and other liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 1,512.3 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 1,512.3 |
Fair Value, Measurements, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 52 |
Short-term investments | 0 | 22.3 |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 52 |
Short-term investments | 0 | 22.3 |
Fair Value, Measurements, Recurring | Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 5.4 |
Long-term investments | 5.4 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 5.4 |
Long-term investments | 5.4 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign Government Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 20 |
Fair Value, Measurements, Recurring | Foreign Government Debt Securities [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign Government Debt Securities [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 20 |
Fair Value, Measurements, Recurring | Foreign Government Debt Securities [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 397.3 |
Short-term investments | 471.3 | 709 |
Long-term investments | 597.4 | 393.9 |
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 397.3 |
Short-term investments | 471.3 | 709 |
Long-term investments | 597.4 | 393.9 |
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 159.4 | 139.8 |
Long-term investments | 186.5 | 153.6 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 159.4 | 139.8 |
Long-term investments | 186.5 | 153.6 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 0 | 6.9 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 0 | 6.9 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Leasehold improvements and other long-lived assets related to prior corporate headquarters | 4.2 | |
General and administrative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impairment of property and equipment | $ 20.9 |
Cash Equivalents and Investme49
Cash Equivalents and Investments (Available-for-Sale Investments) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Cash equivalents | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 1,961.6 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 1,961.6 | |
Cash equivalents | Money market funds | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,512.3 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 1,512.3 | |
Cash equivalents | Commercial paper | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 52 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 52 | |
Cash equivalents | U.S. government and agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 397.3 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 397.3 | |
Investments | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,454.2 | $ 1,422.7 |
Unrealized gains | 0 | 0.4 |
Unrealized losses | (10.2) | (3.1) |
Estimated fair value | 1,444 | 1,420 |
Investments | Commercial paper | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 22.3 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 22.3 | |
Investments | U.S. government and agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,110.6 | 1,071.2 |
Unrealized gains | 0 | 0.1 |
Unrealized losses | (7.7) | (2.6) |
Estimated fair value | 1,102.9 | 1,068.7 |
Investments | Certificates of deposit | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 5.4 | 5.4 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Estimated fair value | 5.4 | 5.4 |
Investments | Foreign Government Debt Securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 20 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Estimated fair value | 20 | |
Investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 295.9 | 346.1 |
Unrealized gains | 0 | 0.3 |
Unrealized losses | (2.5) | (0.5) |
Estimated fair value | $ 293.4 | $ 345.9 |
Cash Equivalents and Investme50
Cash Equivalents and Investments (Proceeds from Sales of Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of investments | $ 0 | $ 0 | $ 141.9 |
Cash Equivalents and Investme51
Cash Equivalents and Investments (Available-for-Sale Investments, Contractual Maturities) (Details) $ in Millions | Jul. 31, 2018USD ($) |
Amortized Cost | |
Due within one year | $ 2,861.3 |
Due between one and three years | 554.5 |
Total | 3,415.8 |
Fair Value | |
Due within one year | 2,858.1 |
Due between one and three years | 547.5 |
Total | $ 3,405.6 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Millions | 12 Months Ended |
Jul. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum contract term of cash flow hedge (in months) | 14 months |
Notional amount of derivatives | $ 288.5 |
Acquisitions (Consideration Tra
Acquisitions (Consideration Transferred) (Details) - USD ($) $ in Millions | Apr. 24, 2018 | Mar. 26, 2018 | Feb. 27, 2017 |
Evident.io, Inc. | |||
Business Acquisition | |||
Total cash consideration transferred | $ 292.9 | ||
Accrued consideration | $ 4 | ||
Cyber Secdo Ltd. | |||
Business Acquisition | |||
Total cash consideration transferred | $ 82.7 | ||
LightCyber Ltd. | |||
Business Acquisition | |||
Total cash consideration transferred | $ 103.1 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Apr. 24, 2018 | Mar. 26, 2018 | Jul. 31, 2017 | Feb. 27, 2017 |
Business Acquisition | |||||
Goodwill | $ 522.8 | $ 238.8 | |||
Evident.io, Inc. | |||||
Business Acquisition | |||||
Goodwill | $ 209.8 | ||||
Identified intangible assets | 85.1 | ||||
Net liabilities assumed | (2) | ||||
Total | $ 292.9 | ||||
Cyber Secdo Ltd. | |||||
Business Acquisition | |||||
Goodwill | $ 68.6 | ||||
Identified intangible assets | 17.3 | ||||
Net liabilities assumed | (3.2) | ||||
Total | $ 82.7 | ||||
LightCyber Ltd. | |||||
Business Acquisition | |||||
Cash | $ 12.4 | ||||
Goodwill | 75.3 | ||||
Identified intangible assets | 19.5 | ||||
Net liabilities assumed | (4.1) | ||||
Total | $ 103.1 |
Acquisitions (Intangible assets
Acquisitions (Intangible assets acquired as part of business combination) (Details) - USD ($) $ in Millions | Apr. 24, 2018 | Mar. 26, 2018 | Feb. 27, 2017 |
Evident.io, Inc. | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 85.1 | ||
Evident.io, Inc. | Developed technology | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 68.4 | ||
Estimated useful life (in years) | 6 years | ||
Evident.io, Inc. | Trade name and trademarks | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 8.5 | ||
Estimated useful life (in years) | 8 years | ||
Evident.io, Inc. | Customer relationships | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 8.2 | ||
Estimated useful life (in years) | 8 years | ||
Cyber Secdo Ltd. | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 17.3 | ||
Cyber Secdo Ltd. | Developed technology | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 16.4 | ||
Estimated useful life (in years) | 5 years | ||
Cyber Secdo Ltd. | Customer relationships | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 0.9 | ||
Estimated useful life (in years) | 2 years | ||
LightCyber Ltd. | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 19.5 | ||
LightCyber Ltd. | Developed technology | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 16.6 | ||
Estimated useful life (in years) | 8 years | ||
LightCyber Ltd. | Customer relationships | |||
Finite-Lived Intangible Assets | |||
Fair value of identified intangible assets acquired | $ 2.9 | ||
Estimated useful life (in years) | 8 years |
Acquisitions (Supplementary Inf
Acquisitions (Supplementary Information) (Details) $ in Millions | Mar. 26, 2018USD ($) |
Evident.io, Inc. | General and administrative | |
Business Acquisition | |
Share-based compensation recognized for accelerated vesting of acquiree stock options | $ 6.6 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets (Goodwill) (Details) $ in Millions | 12 Months Ended |
Jul. 31, 2018USD ($) | |
Goodwill | |
Balance as of July 31, 2017 | $ 238.8 |
Goodwill acquired | 284 |
Balance as of July 31, 2018 | $ 522.8 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets (Purchased Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Total purchased intangible assets, gross carrying amount | $ 187.3 | $ 83.9 |
Total purchased intangibles, net carrying amount | 140.8 | 53.7 |
Finite-Lived Intangible Assets | ||
Gross carrying amount | 186.5 | 83.9 |
Accumulated amortization | (46.5) | (30.2) |
Net carrying amount | 140 | 53.7 |
In-process research and development | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
In-process research and development | 0.8 | 0 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 154.7 | 69.7 |
Accumulated amortization | (38.2) | (23.8) |
Net carrying amount | 116.5 | 45.9 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 12.2 | 3.1 |
Accumulated amortization | (1.2) | (0.4) |
Net carrying amount | 11 | 2.7 |
Acquired intellectual property | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 8.9 | 8.9 |
Accumulated amortization | (4.5) | (3.8) |
Net carrying amount | 4.4 | 5.1 |
Trade name and trademarks | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 8.5 | 0 |
Accumulated amortization | (0.4) | 0 |
Net carrying amount | 8.1 | 0 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 2.2 | 2.2 |
Accumulated amortization | (2.2) | (2.2) |
Net carrying amount | $ 0 | $ 0 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 16.3 | $ 9.8 | $ 9.4 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets (Future Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 27.8 | |
2,020 | 27.7 | |
2,021 | 25.7 | |
2,022 | 21.2 | |
2,023 | 18.8 | |
2024 and thereafter | 18.8 | |
Net carrying amount | $ 140 | $ 53.7 |
Property and Equipment (Propert
Property and Equipment (Property and Equipment by Type) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Property and Equipment | ||
Property and equipment, gross | $ 435 | $ 313.4 |
Less: accumulated depreciation | (161.9) | (102.3) |
Total property and equipment, net | 273.1 | 211.1 |
Computers, equipment, and software | ||
Property and Equipment | ||
Property and equipment, gross | 217.9 | 156.6 |
Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment, gross | 159.5 | 110.1 |
Demonstration units | ||
Property and Equipment | ||
Property and equipment, gross | 33 | 26.3 |
Furniture and fixtures | ||
Property and Equipment | ||
Property and equipment, gross | $ 24.6 | $ 20.4 |
Property and Equipment (Depreci
Property and Equipment (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 74.7 | $ 48.6 | $ 33.1 |
Property and Equipment (Impairm
Property and Equipment (Impairment Loss) (Details) $ in Millions | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Property and Equipment | |
Impairment of property and equipment | $ 20.9 |
General and administrative | |
Property and Equipment | |
Impairment of property and equipment | $ 20.9 |
Convertible Senior Notes (Addit
Convertible Senior Notes (Additional Information) (Details) $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2018USD ($)sharesday$ / shares | Jun. 30, 2014USD ($)sharesday$ / shares | Sep. 13, 2018USD ($) | Jul. 31, 2017USD ($) |
Debt Instrument, Redemption | ||||
If-converted value in excess of principal | $ | $ 519.1 | |||
Level 2 | ||||
Debt Instrument, Redemption | ||||
Fair value of Convertible Senior Notes | $ | 2,700 | $ 747.5 | ||
2019 Notes | ||||
Debt Instrument, Redemption | ||||
Aggregate principal amount | $ | $ 575 | |||
Contractual interest rate (in percentage) | 0.00% | |||
Number of common stock convertible at initial conversion rate (in shares) | shares | 5.2 | |||
Initial conversion rate (in shares per $1000 principal amount) | 0.0090680 | |||
Initial conversion price (in usd per share) | $ / shares | $ 110.28 | |||
Convertible Senior Notes, threshold trading days (in days) | 20 | |||
Convertible Senior Notes, threshold consecutive trading days (in days) | 30 | |||
Convertible Senior Notes, threshold percentage of stock price trigger (in percentage) | 130.00% | |||
Convertible Senior Notes, threshold business days, per $1,000 principal (in days) | 5 | |||
Convertible Senior Notes, threshold consecutive trading days, per $1,000 principal (in days) | 5 days | |||
Convertible Senior Notes, threshold percentage of Note price trigger, per $1,000 principal (in percentage) | 98.00% | |||
Repurchase price as percentage of principal amount in event of change (in percentage) | 100.00% | |||
2023 Notes | ||||
Debt Instrument, Redemption | ||||
Aggregate principal amount | $ | $ 1,700 | |||
Contractual interest rate (in percentage) | 0.75% | |||
Number of common stock convertible at initial conversion rate (in shares) | shares | 6.4 | |||
Initial conversion rate (in shares per $1000 principal amount) | 0.0037545 | |||
Initial conversion price (in usd per share) | $ / shares | $ 266.35 | |||
Convertible Senior Notes, threshold trading days (in days) | 20 | |||
Convertible Senior Notes, threshold consecutive trading days (in days) | 30 | |||
Convertible Senior Notes, threshold percentage of stock price trigger (in percentage) | 130.00% | |||
Convertible Senior Notes, threshold business days, per $1,000 principal (in days) | 5 | |||
Convertible Senior Notes, threshold consecutive trading days, per $1,000 principal (in days) | 5 days | |||
Convertible Senior Notes, threshold percentage of Note price trigger, per $1,000 principal (in percentage) | 98.00% | |||
Repurchase price as percentage of principal amount in event of change (in percentage) | 100.00% | |||
Subsequent Event | 2019 Notes | ||||
Debt Instrument, Redemption | ||||
Principal amount converted or submitted by holders for conversion | $ | $ 327.3 |
Convertible Senior Notes (Compo
Convertible Senior Notes (Components of Convertible Senior Notes) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Debt Instrument, Redemption | ||
Principal amount | $ 2,268 | $ 575 |
Less: debt discount and debt issuance costs, net of amortization | 347.9 | 50.3 |
Net carrying amount | 1,920.1 | 524.7 |
Equity | 424.8 | 109.8 |
2019 Notes | ||
Debt Instrument, Redemption | ||
Principal amount | 575 | 575 |
Less: debt discount and debt issuance costs, net of amortization | 24.6 | 50.3 |
Net carrying amount | 550.4 | 524.7 |
Equity | 109.8 | 109.8 |
2023 Notes | ||
Debt Instrument, Redemption | ||
Principal amount | 1,693 | 0 |
Less: debt discount and debt issuance costs, net of amortization | 323.3 | 0 |
Net carrying amount | 1,369.7 | 0 |
Equity | $ 315 | $ 0 |
Convertible Senior Notes (Sched
Convertible Senior Notes (Schedule of Interest Expense Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Debt Instrument, Redemption | |||
Contractual interest expense | $ 0.7 | $ 0 | $ 0 |
Amortization of debt discount | 25.9 | 22 | 21.1 |
Amortization of debt issuance costs | 2.9 | 2.5 | 2.3 |
Total interest expense recognized | 29.5 | 24.5 | 23.4 |
2019 Notes | |||
Debt Instrument, Redemption | |||
Contractual interest expense | 0 | 0 | 0 |
Amortization of debt discount | 22.9 | 22 | 21.1 |
Amortization of debt issuance costs | 2.8 | 2.5 | 2.3 |
Total interest expense recognized | $ 25.7 | $ 24.5 | $ 23.4 |
Effective interest rate of the liability component (in percentage) | 4.80% | 4.80% | 4.80% |
2023 Notes | |||
Debt Instrument, Redemption | |||
Contractual interest expense | $ 0.7 | $ 0 | $ 0 |
Amortization of debt discount | 3 | 0 | 0 |
Amortization of debt issuance costs | 0.1 | 0 | 0 |
Total interest expense recognized | $ 3.8 | $ 0 | $ 0 |
Effective interest rate of the liability component (in percentage) | 5.20% | 0.00% | 0.00% |
Convertible Senior Notes (Note
Convertible Senior Notes (Note Hedges) (Details) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2018 | Jun. 30, 2014 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Schedule of Note Hedge Transactions | |||||
Aggregate amount paid to purchase note hedges - additional paid-in capital | $ 332 | $ 0 | $ 0 | ||
2019 Note Hedges | |||||
Schedule of Note Hedge Transactions | |||||
Shares of common stock covered by note hedges (in shares) | 5.2 | ||||
Aggregate amount paid to purchase note hedges - additional paid-in capital | $ 111 | ||||
2023 Note Hedges | |||||
Schedule of Note Hedge Transactions | |||||
Shares of common stock covered by note hedges (in shares) | 6.4 | ||||
Aggregate amount paid to purchase note hedges - additional paid-in capital | $ 332 |
Convertible Senior Notes (Warra
Convertible Senior Notes (Warrants) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2018 | Jun. 30, 2014 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Class of Warrant or Right | |||||
Proceeds from issuance of warrants | $ 145.4 | $ 0 | $ 0 | ||
2019 Warrants | |||||
Class of Warrant or Right | |||||
Warrants sold, shares authorized to sell to counterparties (in shares) | 5.2 | ||||
Strike price of warrants (in usd per share) | $ 137.85 | ||||
Proceeds from issuance of warrants | $ 78.3 | ||||
2023 Warrants | |||||
Class of Warrant or Right | |||||
Warrants sold, shares authorized to sell to counterparties (in shares) | 6.4 | 6.4 | |||
Strike price of warrants (in usd per share) | $ 417.80 | $ 417.80 | |||
Proceeds from issuance of warrants | $ 145.4 |
Commitments and Contingencies69
Commitments and Contingencies (Leases Arrangements) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2012USD ($)ft²lease_renewal_optionlease_agreement | Oct. 31, 2017USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2015USD ($)ft²lease_agreement | May 31, 2015USD ($)ft²lease_agreement | |
Operating Leased Assets [Line Items] | ||||||||
Total payments under the lease agreements | $ 540.6 | |||||||
Cease-use loss and asset impairment related to facility exit | 41.1 | $ 20.9 | $ 0 | |||||
Proceeds from sublease | 14 | |||||||
Q415 and Q116 new lease arrangements - new corporate headquarters | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of lease agreements | lease_agreement | 3 | |||||||
Area of office space (in square feet) | ft² | 941,000 | |||||||
Increase in annual rental payments for fiscal 2018 | $ 24.4 | |||||||
Increase in annual rental payments for fiscal 2019 | 11.8 | |||||||
Increase in annual rental payments for fiscal 2020 | 2 | |||||||
Cash reimbursement from lessors | $ 38.2 | |||||||
Total payments under the lease agreements | $ 412 | |||||||
Q415 new lease arrangements - previous corporate headquarters | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of lease agreements | lease_agreement | 1 | |||||||
Area of office space (in square feet) | ft² | 122,000 | |||||||
Total payments under the lease agreements | $ 23.1 | |||||||
Q218 new sublease arrangement - previous corporate headquarters | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of lease agreements | 0 | |||||||
Proceeds from sublease | $ 16.3 | |||||||
Q113 new lease arrangements - previous corporate headquarters | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of lease agreements | lease_agreement | 2 | |||||||
Area of office space (in square feet) | ft² | 300,000 | |||||||
Number of lease renewal options | lease_renewal_option | 2 | |||||||
Renewal term (in years) | 5 years | |||||||
Total payments under the lease agreements | $ 94.3 | |||||||
Liability release through rental payments | (10.1) | |||||||
Cease-use liability | 29.1 | |||||||
General and administrative | Q113 new lease arrangements - previous corporate headquarters | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Cease-use loss and asset impairment related to facility exit | $ 39.2 |
Commitments and Contingencies70
Commitments and Contingencies (Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 35.2 | $ 35.9 | $ 20.2 |
Commitments and Contingencies71
Commitments and Contingencies (Lease Commitment Schedule) (Details) $ in Millions | Jul. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 66.3 |
2,020 | 68.2 |
2,021 | 64 |
2,022 | 59.8 |
2,023 | 58.5 |
2024 and thereafter | 223.8 |
Committed gross lease payments | 540.6 |
Less: proceeds from sublease rental | 14 |
Net operating lease obligation | $ 526.6 |
Commitments and Contingencies72
Commitments and Contingencies (Manufacturing Purchase Commitments) (Details) $ in Millions | Jul. 31, 2018USD ($) |
Manufacturing products and components | |
Unrecorded Unconditional Purchase Obligation | |
Manufacturing purchase commitments | $ 134.6 |
Commitments and Contingencies73
Commitments and Contingencies (Other Purchase Commitments) (Details) - Cloud Services - USD ($) $ in Millions | Mar. 31, 2018 | Jul. 31, 2018 |
Unrecorded Unconditional Purchase Obligation | ||
Other purchase commitment, April 2018 to March 2019 | $ 14 | |
Other purchase commitment, April 2019 to March 2020 | $ 8 | |
Other purchase commitment | $ 11.7 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Feb. 28, 2017 | Aug. 31, 2016 | |
Equity [Abstract] | ||||
Share repurchase, authorized amount | $ 500 | $ 500 | ||
Stock repurchase, total authorized amount | $ 1,000 | |||
Repurchase and retirement of common stock (in shares) | 1.7 | 3.3 | ||
Repurchase and retirement of common stock | $ 250 | $ 420.1 | ||
Share repurchase, remaining authorized repurchase amount | $ 330 |
Equity Award Plans (Share-Based
Equity Award Plans (Share-Based Compensation Plans) (Details) | Jun. 30, 2018shares | Jul. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
PSOs with market and service conditions granted | 1,200,000 | ||
PSAs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years | ||
Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
PSOs with market and service conditions granted | 1,200,000 | ||
PSOs to vest on anniversary of grant date, subject to continued service (in percentage) | 25.00% | ||
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 400,000 | ||
Average price of common stock purchased during the period (in usd per share) | $ / shares | $ 110.87 | ||
2012 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Option expiration period (in years) | 10 years | ||
Shares reserved for future issuance (in shares) | 17,700,000 | ||
Increase in number of shares reserved for issuance on the first day of fiscal year, maximum (in percentage) | 4.50% | ||
2012 Equity Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
2012 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years | ||
Increase in number of shares reserved for issuance on the first day of fiscal year, maximum (in shares) | 8,000,000 | ||
2012 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares reserved for future issuance (in shares) | 3,400,000 | ||
Increase in number of shares reserved for issuance on the first day of fiscal year, maximum (in percentage) | 1.00% | ||
ESPP offering period (in months) | 24 months | 6 months | |
Purchase price of common stock in percentage of the lower of the fair market value of our common stock on the first trading day of each offering period or on the exercise date (in percentage) | 85.00% | ||
Number of purchase periods in each ESPP offering | 4 | ||
Purchase periods (in months) | 6 months | ||
Maximum subscription rate (in percentage) | 15.00% | ||
Purchase limit per employee, number of shares, during each offering period (in shares) | 625 | ||
Purchase limit per employee, total fair value of common stock, for each calendar year | $ | $ 25,000 | ||
2012 Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Increase in number of shares reserved for issuance on the first day of fiscal year, maximum (in shares) | 2,000,000 | ||
Performance period 1 | Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock price target, percentage of exercise price | 150.00% | ||
Performance period (in years) | 4 years | ||
Performance period 2 | Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock price target, percentage of exercise price | 200.00% | ||
Performance period (in years) | 5 years | ||
Performance period 3 | Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock price target, percentage of exercise price | 250.00% | ||
Performance period (in years) | 6 years | ||
Performance period 4 | Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock price target, percentage of exercise price | 300.00% | ||
Performance period (in years) | 7 years |
Equity Award Plans (Stock Optio
Equity Award Plans (Stock Options Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Options, Outstanding Roll Forward | |||
Balance, beginning (in shares) | 1.6 | ||
Options granted (in shares) | 1.2 | ||
Options forfeited (in shares) | 0 | ||
Options exercised (in shares) | (0.6) | ||
Balance, ending (in shares) | 2.2 | 1.6 | |
Options, Outstanding, Weighted Average Exercise Price Roll Forward | |||
Balance, beginning (in usd per share) | $ 13.11 | ||
Options granted (in usd per share) | 198.50 | ||
Options forfeited (in usd per share) | 0 | ||
Options exercised (in usd per share) | 12.76 | ||
Balance, ending (in usd per share) | $ 109.12 | $ 13.11 | |
Options, Additional Disclosures | |||
Weighted-average remaining contractual life (in years) | 5 years 2 months | 4 years 2 months | |
Aggregate intrinsic value | $ 199.8 | $ 190.6 | |
Options exercisable (in shares) | 1.1 | ||
Options exercisable, weighted-average exercise price (in usd per share) | $ 13.28 | ||
Options exercisable, weighted-average remaining contractual term (in years) | 3 years 2 months | ||
Options exercisable, aggregate intrinsic value | $ 199.8 | ||
Weighted-average grant-date fair value of options granted (in usd per share) | $ 56.14 | ||
Total grant-date fair value of options vested in the period | $ 8.1 | ||
Total intrinsic value of options exercised in the period | $ 85 | $ 61.2 | $ 176.1 |
Equity Award Plans (RSA, PSA, R
Equity Award Plans (RSA, PSA, RSU, and PSU Activities) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | |||
Granted (in shares) | 5.3 | ||
Forfeited (in shares) | (0.8) | ||
RSAs and PSAs | |||
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | |||
Balance, beginning (in shares) | 1 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (0.5) | ||
Forfeited (in shares) | (0.2) | ||
Balance, ending (in shares) | 0.3 | 1 | |
RSAs, PSAs, RSUs, and PSUs, Outstanding, Weighted Average Grant-Date Fair Value Per Share | |||
Balance, beginning (in usd per share) | $ 163.55 | ||
Granted (in usd per share) | 0 | $ 148.54 | $ 170.97 |
Vested (in usd per share) | 168.62 | ||
Forfeited (in usd per share) | 157.49 | ||
Balance, ending (in usd per share) | $ 160.85 | $ 163.55 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total fair value of awards vested in the period | $ 67.5 | ||
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total fair value of awards vested in the period | $ 62.6 | ||
RSUs and PSUs | |||
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | |||
Balance, beginning (in shares) | 6.5 | ||
Granted (in shares) | 4.1 | ||
Vested (in shares) | (3.3) | ||
Forfeited (in shares) | (0.6) | ||
Balance, ending (in shares) | 6.7 | 6.5 | |
RSAs, PSAs, RSUs, and PSUs, Outstanding, Weighted Average Grant-Date Fair Value Per Share | |||
Balance, beginning (in usd per share) | $ 141.16 | ||
Granted (in usd per share) | 170.44 | $ 141.35 | $ 160.60 |
Vested (in usd per share) | 138.75 | ||
Forfeited (in usd per share) | 144.33 | ||
Balance, ending (in usd per share) | $ 160.20 | $ 141.16 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual term (in years) | 1 year 7 months | 1 year 3 months | |
Aggregate intrinsic value | $ 1,335.2 | $ 854.1 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total fair value of awards vested in the period | $ 546.3 | $ 462.6 | $ 513 |
Equity Award Plans (Shares Avai
Equity Award Plans (Shares Available for Grant Roll-forward) (Details) shares in Millions | 12 Months Ended |
Jul. 31, 2018shares | |
Shares Available for Grant Roll Forward | |
Shares available for grant, beginning (in shares) | 8.8 |
Authorized (in shares) | 4.1 |
Options, RSUs, and PSUs granted (in shares) | (5.3) |
RSAs, PSAs, and RSUs forfeited (in shares) | 0.8 |
Shares withheld for taxes (in shares) | 0.4 |
Shares available for grant, ending (in shares) | 8.8 |
Equity Award Plans (Allocation
Equity Award Plans (Allocation of Share Based Compensation Expense By Functional Area) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | $ 503.9 | $ 475.7 | $ 392.9 |
Cost of product revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | 7 | 7.3 | 6.2 |
Cost of subscription and support revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | 66.7 | 56.2 | 40.9 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | 145.2 | 152.6 | 132.9 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | 208 | 186.5 | 152.4 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | $ 77 | $ 73.1 | $ 60.5 |
Equity Award Plans (Allocatio80
Equity Award Plans (Allocation of Share-based Compensation Additional Information) (Details) $ in Billions | 12 Months Ended |
Jul. 31, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total compensation cost not yet recognized, nonvested awards | $ 1.1 |
Compensation expense not yet recognized, period for recognition (in years) | 3 years |
Equity Award Plans (Fair Value
Equity Award Plans (Fair Value Assumptions and Grant-Date Fair Values) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected volatility rate, minimum (in percentage) | 26.80% | 41.00% | 33.40% |
Expected volatility rate, maximum (in percentage) | 43.60% | 50.10% | 45.50% |
Expected term (in years) | 6 months | 6 months | |
Expected dividend rate (in percentage) | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum (in percentage) | 1.20% | 0.50% | 0.20% |
Risk free interest rate, maximum (in percentage) | 2.30% | 0.90% | 0.50% |
Grant-date fair value per share, minimum | $ 34.94 | $ 34.15 | $ 43.07 |
Grant date fair value per share, maximum | $ 65.04 | $ 39.65 | $ 44.62 |
Performance Stock Options (PSOs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected volatility rate (in percentage) | 33.30% | ||
Expected dividend rate (in percentage) | 0.00% | ||
Risk-free interest rate (in percentage) | 2.90% | ||
Minimum | Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected term (in years) | 6 months | ||
Maximum | Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected term (in years) | 2 years |
Income Taxes (Loss Before Provi
Income Taxes (Loss Before Provision for Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (192.1) | $ (210) | $ (195.3) | ||||||||
Foreign | 61.9 | 15.9 | 23 | ||||||||
Loss before income taxes | $ 8.4 | $ (49.5) | $ (33.3) | $ (55.8) | $ (30.6) | $ (53.2) | $ (57.8) | $ (52.5) | $ (130.2) | $ (194.1) | $ (172.3) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Federal: | |||||||||||
Current | $ (0.6) | $ 3.4 | $ 1.9 | ||||||||
Deferred | (3.3) | 0 | (0.6) | ||||||||
State: | |||||||||||
Current | 1.6 | 0.9 | 1.1 | ||||||||
Deferred | (1.3) | 0 | (0.1) | ||||||||
Foreign: | |||||||||||
Current | 23.3 | 19.7 | 19.1 | ||||||||
Deferred | (2) | (1.5) | (1) | ||||||||
Total | $ 10.7 | $ (2.8) | $ 1.6 | $ 8.2 | $ 7.6 | $ 7.7 | $ 2.8 | $ 4.4 | $ 17.7 | $ 22.5 | $ 20.4 |
Income Taxes (Effective Tax Rec
Income Taxes (Effective Tax Reconciliation) (Details) | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 26.80% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 5.00% | 2.80% | (1.70%) |
Foreign income at other than U.S. rates | 12.60% | (14.40%) | (7.80%) |
Change in valuation allowance | 29.00% | (39.40%) | (25.40%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (104.60%) | ||
Share-based compensation | 8.60% | 1.60% | (15.90%) |
Amortization of deferred tax charges | (6.50%) | (3.60%) | (3.40%) |
Research credits | 25.40% | 10.10% | 11.30% |
Non-deductible expense | (4.90%) | (3.00%) | (1.30%) |
Other, net | (5.00%) | (0.70%) | (2.60%) |
Total | (13.60%) | (11.60%) | (11.80%) |
Income Taxes (Components of the
Income Taxes (Components of the Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jul. 31, 2018 | Jul. 31, 2017 |
Deferred tax assets: | ||
Accruals and reserves | $ 59.6 | $ 30 |
Deferred revenue | 132.9 | 133.5 |
Net operating loss carryforwards | 189.5 | 245.3 |
Research and development and foreign tax credits | 113.4 | 69.3 |
Share-based compensation | 21.4 | 45.4 |
Gross deferred tax assets | 516.8 | 523.5 |
Valuation allowance | (420.1) | (464.1) |
Total deferred tax assets | 96.7 | 59.4 |
Components of Deferred Tax Liabilities | ||
Fixed assets and intangible assets | (43.3) | (13.5) |
Deferred Commissions | (34) | (36.8) |
Other deferred tax liabilities | (10.9) | (4) |
Deferred Tax Liabilities, Gross | (88.2) | (54.3) |
Total | $ 8.5 | $ 5.1 |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforward) (Details) $ in Millions | Jul. 31, 2018USD ($) |
Federal | |
Operating Loss Carryforwards | |
Operating loss carryforwards | $ 1,300 |
State | |
Operating Loss Carryforwards | |
Operating loss carryforwards | 800.1 |
Foreign | |
Operating Loss Carryforwards | |
Operating loss carryforwards | $ 59.2 |
Income Taxes (Tax Credit Carryf
Income Taxes (Tax Credit Carryforwards) (Details) $ in Millions | Jul. 31, 2018USD ($) |
Federal | Research tax credit carryforward | |
Tax Credit Carryforward | |
Tax credit carryforward | $ 80.7 |
State | Research tax credit carryforward | |
Tax Credit Carryforward | |
Tax credit carryforward | 82.3 |
Foreign | |
Tax Credit Carryforward | |
Tax credit carryforward | $ 3.6 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowance decrease | $ 44 | |||
Federal statutory rate | 26.80% | 35.00% | 35.00% | |
Excess tax benefit from share-based compensation arrangements | $ 0.5 | |||
Provisional income tax expense (benefit) related to alternative minimum tax credits as a result of the Tax Cuts and Jobs Act 2017 | $ (6.1) | |||
Unrecognized tax benefits | 337.7 | $ 301.3 | 127.7 | $ 67.2 |
Unrecognized tax benefits that would affect income tax expense | 48 | 34 | ||
Income tax expense related to interest and penalties | 2.9 | 2.1 | $ 1.6 | |
Interest and penalties accrued | 8.3 | $ 5.4 | ||
Undistributed earnings of foreign subsidiaries | $ 0 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit Roll-Forward)(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Unrecognized tax benefits at the beginning of the period | $ 301.3 | $ 127.7 | $ 67.2 |
Additions for tax positions taken in prior years | 3.1 | 3.1 | 25.2 |
Reductions for tax positions taken in prior years | (6.3) | 0 | 0 |
Additions for tax positions related to the current year | 39.6 | 170.5 | 35.3 |
Unrecognized tax benefits at the end of the period | $ 337.7 | $ 301.3 | $ 127.7 |
Net Loss Per Share (Computation
Net Loss Per Share (Computation of Basic and Diluted Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (2.3) | $ (46.7) | $ (34.9) | $ (64) | $ (38.2) | $ (60.9) | $ (60.6) | $ (56.9) | $ (147.9) | $ (216.6) | $ (192.7) |
Weighted-average shares used to compute net loss per share, basic and diluted | 91.7 | 90.6 | 87.1 | ||||||||
Net loss per share, basic and diluted | $ (0.02) | $ (0.51) | $ (0.38) | $ (0.70) | $ (0.42) | $ (0.67) | $ (0.67) | $ (0.63) | $ (1.61) | $ (2.39) | $ (2.21) |
Net Loss Per Share (Schedule of
Net Loss Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details) - shares shares in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 32.6 | 19.7 | 20.2 |
Convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 11.6 | 5.2 | 5.2 |
Warrants related to the issuance of convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 11.6 | 5.2 | 5.2 |
RSUs and PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 6.7 | 6.5 | 6.5 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 2.2 | 1.6 | 2.1 |
RSAs and PSAs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 0.3 | 1 | 1.1 |
ESPP shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 0.2 | 0.2 | 0.1 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Other Income and Expenses [Abstract] | |||||||||||
Interest income | $ 27.1 | $ 14.7 | $ 8.8 | ||||||||
Foreign currency exchange gains (losses), net | 1.7 | (3.4) | 0 | ||||||||
Other | (0.3) | (1.1) | (0.4) | ||||||||
Total other income, net | $ 10.2 | $ 8.6 | $ 4.9 | $ 4.8 | $ 2.9 | $ 2.1 | $ 2.7 | $ 2.5 | $ 28.5 | $ 10.2 | $ 8.4 |
Segment Information (Segments)
Segment Information (Segments) (Details) | 12 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Information (Revenue an
Segment Information (Revenue and Long-lived Assets by Geographic Theater) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting Information | |||
Revenues | $ 2,273.1 | $ 1,761.6 | $ 1,378.5 |
Property and equipment, net | 273.1 | 211.1 | |
United States | |||
Segment Reporting Information | |||
Revenues | 1,447.2 | 1,155.3 | 901.8 |
Property and equipment, net | 228.4 | 178.4 | |
Other Americas | |||
Segment Reporting Information | |||
Revenues | 111.5 | 82.1 | 71.4 |
Total Americas | |||
Segment Reporting Information | |||
Revenues | 1,558.7 | 1,237.4 | 973.2 |
EMEA | |||
Segment Reporting Information | |||
Revenues | 439.3 | 320.1 | 247.1 |
APAC | |||
Segment Reporting Information | |||
Revenues | 275.1 | 204.1 | $ 158.2 |
International | |||
Segment Reporting Information | |||
Property and equipment, net | $ 44.7 | $ 32.7 |
Segment Information (Revenue fr
Segment Information (Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue from External Customer | |||||||||||
Product | $ 267.6 | $ 215.2 | $ 202.2 | $ 186.5 | $ 212.3 | $ 164.2 | $ 168.8 | $ 163.8 | $ 871.5 | $ 709.1 | $ 670.8 |
Subscription and support | 390.5 | 351.9 | 340.2 | 319 | 296.8 | 267.6 | 253.8 | 234.3 | 1,401.6 | 1,052.5 | 707.7 |
Total revenue | $ 658.1 | $ 567.1 | $ 542.4 | $ 505.5 | $ 509.1 | $ 431.8 | $ 422.6 | $ 398.1 | 2,273.1 | 1,761.6 | 1,378.5 |
Subscription | |||||||||||
Revenue from External Customer | |||||||||||
Subscription and support | 759.6 | 550.8 | 357 | ||||||||
Support and maintenance | |||||||||||
Revenue from External Customer | |||||||||||
Subscription and support | $ 642 | $ 501.7 | $ 350.7 |
Selected Quarterly Financial 96
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenue: | |||||||||||
Product | $ 267.6 | $ 215.2 | $ 202.2 | $ 186.5 | $ 212.3 | $ 164.2 | $ 168.8 | $ 163.8 | $ 871.5 | $ 709.1 | $ 670.8 |
Subscription and support | 390.5 | 351.9 | 340.2 | 319 | 296.8 | 267.6 | 253.8 | 234.3 | 1,401.6 | 1,052.5 | 707.7 |
Total revenue | 658.1 | 567.1 | 542.4 | 505.5 | 509.1 | 431.8 | 422.6 | 398.1 | 2,273.1 | 1,761.6 | 1,378.5 |
Cost of revenue: | |||||||||||
Product | 82 | 68.9 | 63.9 | 57.6 | 63.7 | 49.7 | 45.8 | 42.2 | 272.4 | 201.4 | 175.4 |
Subscription and support | 102.7 | 91 | 95.4 | 83.8 | 74.8 | 74 | 67.4 | 59 | 372.9 | 275.2 | 194.6 |
Total cost of revenue | 184.7 | 159.9 | 159.3 | 141.4 | 138.5 | 123.7 | 113.2 | 101.2 | 645.3 | 476.6 | 370 |
Total gross profit | 473.4 | 407.2 | 383.1 | 364.1 | 370.6 | 308.1 | 309.4 | 296.9 | 1,627.8 | 1,285 | 1,008.5 |
Operating expenses: | |||||||||||
Research and development | 110.3 | 99.6 | 96.6 | 94.2 | 87.3 | 86 | 89.9 | 84.2 | 400.7 | 347.4 | 284.2 |
Sales and marketing | 297.8 | 277.1 | 265 | 258.5 | 245.4 | 226.9 | 226.7 | 220.1 | 1,098.4 | 919.1 | 743.2 |
General and administrative | 56.7 | 82.1 | 53.3 | 65.7 | 65.2 | 44.3 | 47.2 | 41.6 | 257.8 | 198.3 | 138.4 |
Total operating expenses | 464.8 | 458.8 | 414.9 | 418.4 | 397.9 | 357.2 | 363.8 | 345.9 | 1,756.9 | 1,464.8 | 1,165.8 |
Operating loss | 8.6 | (51.6) | (31.8) | (54.3) | (27.3) | (49.1) | (54.4) | (49) | (129.1) | (179.8) | (157.3) |
Interest expense | (10.4) | (6.5) | (6.4) | (6.3) | (6.2) | (6.2) | (6.1) | (6) | (29.6) | (24.5) | (23.4) |
Other income, net | 10.2 | 8.6 | 4.9 | 4.8 | 2.9 | 2.1 | 2.7 | 2.5 | 28.5 | 10.2 | 8.4 |
Loss before income taxes | 8.4 | (49.5) | (33.3) | (55.8) | (30.6) | (53.2) | (57.8) | (52.5) | (130.2) | (194.1) | (172.3) |
Provision for income taxes | 10.7 | (2.8) | 1.6 | 8.2 | 7.6 | 7.7 | 2.8 | 4.4 | 17.7 | 22.5 | 20.4 |
Net loss | $ (2.3) | $ (46.7) | $ (34.9) | $ (64) | $ (38.2) | $ (60.9) | $ (60.6) | $ (56.9) | $ (147.9) | $ (216.6) | $ (192.7) |
Net loss per share, basic and diluted | $ (0.02) | $ (0.51) | $ (0.38) | $ (0.70) | $ (0.42) | $ (0.67) | $ (0.67) | $ (0.63) | $ (1.61) | $ (2.39) | $ (2.21) |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Sep. 04, 2018USD ($) |
Subsequent Event | |
Revolving credit facility, maximum borrowing capacity | $ 400 |
Revolving credit facility, option for additional borrowing capacity | $ 350 |