Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Oct. 31, 2018 | Nov. 20, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Palo Alto Networks Inc | |
Entity Central Index Key | 1,327,567 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 94,880,870 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,784.4 | $ 2,506.9 |
Short-term investments | 1,419.4 | 896.5 |
Accounts receivable, net of allowance for doubtful accounts of $1.2 at October 31, 2018 and July 31, 2018 | 382.3 | 467 |
Prepaid expenses and other current assets | 229.1 | 268.1 |
Total current assets | 3,815.2 | 4,138.5 |
Property and equipment, net | 276.5 | 273.1 |
Long-term investments | 565.5 | 547.5 |
Goodwill | 636.4 | 522.8 |
Intangible assets, net | 186.2 | 140.8 |
Other assets | 321.7 | 326.2 |
Total assets | 5,801.5 | 5,948.9 |
Current liabilities: | ||
Accounts payable | 43 | 49.4 |
Accrued compensation | 99.4 | 163.7 |
Accrued and other liabilities | 163.6 | 124.6 |
Deferred revenue | 1,269.8 | 1,213.6 |
Convertible senior notes, net | 239.9 | 550.4 |
Total current liabilities | 1,815.7 | 2,101.7 |
Convertible senior notes, net | 1,384.5 | 1,369.7 |
Long-term deferred revenue | 1,114.6 | 1,065.7 |
Other long-term liabilities | 226.8 | 229.6 |
Commitments and contingencies (Note 10) | ||
Temporary equity | 6.9 | 21.9 |
Stockholders’ equity: | ||
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at October 31, 2018 and July 31, 2018 | 0 | 0 |
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 94.7 and 93.6 shares issued and outstanding at October 31, 2018 and July 31, 2018, respectively | 2,129.3 | 1,967.4 |
Accumulated other comprehensive loss | (19) | (16.4) |
Accumulated deficit | (857.3) | (790.7) |
Total stockholders’ equity | 1,253 | 1,160.3 |
Total liabilities, temporary equity, and stockholders’ equity | $ 5,801.5 | $ 5,948.9 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 1.2 | $ 1.2 |
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) | 94.7 | 93.6 |
Common stock, shares outstanding (in shares) | 94.7 | 93.6 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Revenue | ||
Revenue | $ 656 | $ 501.8 |
Cost of revenue: | ||
Product | 73.2 | 57.6 |
Subscription and support | 110.3 | 83.7 |
Total cost of revenue | 183.5 | 141.3 |
Total gross profit | 472.5 | 360.5 |
Operating expenses: | ||
Research and development | 113.4 | 94.2 |
Sales and marketing | 314.6 | 254.1 |
General and administrative | 76.6 | 65.7 |
Total operating expenses | 504.6 | 414 |
Operating loss | (32.1) | (53.5) |
Interest expense | (22.7) | (6.3) |
Other income, net | 13 | 4.8 |
Loss before income taxes | (41.8) | (55) |
Provision for (benefit from) income taxes | (3.5) | 8.2 |
Net loss | $ (38.3) | $ (63.2) |
Net loss per share, basic and diluted | $ (0.41) | $ (0.70) |
Weighted-average shares used to compute net loss per share, basic and diluted | 93.8 | 90.9 |
Product | ||
Revenue | ||
Revenue | $ 240.5 | $ 184.8 |
Subscription and support | ||
Revenue | ||
Revenue | $ 415.5 | $ 317 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (38.3) | $ (63.2) |
Other comprehensive income (loss), net of tax: | ||
Change in unrealized gains (losses) on investments | 0.9 | (1.9) |
Change in unrealized gains (losses) on cash flow hedges | (3.5) | (1.7) |
Other comprehensive loss | (2.6) | (3.6) |
Comprehensive loss | $ (40.9) | $ (66.8) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (38.3) | $ (63.2) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Share-based compensation for equity-based awards | 136.9 | 125.7 |
Depreciation and amortization | 32.5 | 21.3 |
Cease-use loss related to facility exit | 0 | 15.4 |
Amortization of deferred contract costs | 41.1 | 28.1 |
Amortization of debt discount and debt issuance costs | 19.4 | 6.3 |
Amortization of investment premiums, net of accretion of purchase discounts | (2.4) | 0.5 |
Loss on conversions of convertible senior notes | 2.2 | 0 |
Repayments of convertible senior notes attributable to debt discount | (52.3) | 0 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 86.6 | 80.3 |
Prepaid expenses and other assets | (22.6) | (39) |
Accounts payable | (0.8) | 4.2 |
Accrued compensation | (65) | (43) |
Accrued and other liabilities | 12.5 | 43.8 |
Deferred revenue | 102.5 | 93.6 |
Net cash provided by operating activities | 252.3 | 274 |
Cash flows from investing activities | ||
Purchases of investments | (741) | (226.8) |
Proceeds from sales of investments | 2.5 | 0 |
Proceeds from maturities of investments | 214.5 | 206.6 |
Business acquisitions, net of cash acquired | (154.8) | 0 |
Purchases of property, equipment, and other assets | (34.3) | (32.2) |
Net cash used in investing activities | (713.1) | (52.4) |
Cash flows from financing activities | ||
Repayments of convertible senior notes attributable to principal and equity component | (275) | 0 |
Payments for debt issuance costs | (3.6) | 0 |
Repurchases of common stock | 0 | (134.1) |
Proceeds from sales of shares through employee equity incentive plans | 30.7 | 22.1 |
Payments for taxes related to net share settlement of equity awards | (13.9) | (11.4) |
Net cash used in financing activities | (261.8) | (123.4) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (722.6) | 98.2 |
Cash, cash equivalents, and restricted cash—beginning of period | 2,509.2 | 745.5 |
Cash, cash equivalents, and restricted cash—end of period | 1,786.6 | 843.7 |
Non-cash investing and financing activities | ||
Property and equipment acquired through lease incentives | $ 0 | $ 37.8 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets - USD ($) $ in Millions | Oct. 31, 2018 | Oct. 31, 2017 |
Cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | $ 1,784.4 | $ 842.6 |
Total cash, cash equivalents, and restricted cash | 1,786.6 | 843.7 |
Prepaid expenses and other current assets | ||
Cash, cash equivalents, and restricted cash | ||
Restricted cash | 1 | 0.5 |
Other assets | ||
Cash, cash equivalents, and restricted cash | ||
Restricted cash | $ 1.2 | $ 0.6 |
Description of Business, Basis
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Notes) | 3 Months Ended |
Oct. 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 and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) , consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 , filed with the Securities and Exchange Commission (“SEC”) on September 13, 2018. Our condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Our condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. Certain prior period amounts have been adjusted due to our retrospective adoption of new accounting guidance related to revenue from contracts with customers and new accounting guidance related to the presentation of restricted cash and cash equivalents in the statement of cash flows. Refer to “Recently Adopted Accounting Pronouncements” below for more information. Our condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 . Summary of Significant Accounting Policies There have been no material changes to our significant accounting policies as of and for the three months ended October 31, 2018 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 , except for the change in our accounting policies for revenue recognition and deferred contract costs due to our adoption of new accounting guidance related to revenue from contracts with customers. Refer to “Recently Adopted Accounting Pronouncements” below, Note 2 . Revenue, and Note 8 . Deferred Contract Costs for more information. Recently Adopted Accounting Pronouncements Business Combinations - Definition of a Business In January 2017, the Financial Accounting Standards Board (“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. We adopted this standard in our first quarter of fiscal 2019 on a prospective basis. The adoption of the standard did not have an impact on our condensed 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. We adopted this standard in our first quarter of fiscal 2019 on a retrospective basis. The adoption of the standard did not have a material impact on our condensed 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. We adopted the standard in our first quarter of fiscal 2019 on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as an increase to accumulated deficit of $28.4 million , with a corresponding decrease to prepaid expenses and other current assets and other assets in our condensed consolidated balance sheets as of August 1, 2018, the date of adoption. The cumulative effect adjustment represents 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. We adopted this standard in our first quarter of fiscal 2019 on a retrospective basis. The adoption of the standard did not have an impact on our condensed consolidated financial statements. Financial Instruments - Recognition and Measurement In January 2016, the FASB issued authoritative guidance requiring equity instruments to be measured at fair value with changes in fair value recognized through net income. We adopted this standard in our first quarter of fiscal 2019 on a prospective basis for non-marketable equity securities and a modified retrospective basis for marketable equity investments. The adoption of the standard did not have an impact on our condensed 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 when control of promised goods or services is transferred to customers with the expected consideration 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, and assets recognized from costs incurred to obtain or fulfill a contract. We adopted the standard in our first quarter of fiscal 2019 using the full retrospective method. The adoption of the new standard did not have a material impact on our condensed 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, which primarily consist of sales commissions, due to the longer period of amortization. Under the previous accounting guidance, we deferred and amortized these costs over the term of the related contract. Under the new standard, we 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 adoption of the standard using the full retrospective method required us to restate the prior periods presented in this Quarterly Report on Form 10-Q, with the cumulative effect of the change of $168.2 million reflected in accumulated deficit as of August 1, 2017. In adopting the new standard, we have also applied a transition practical expedient and have not disclosed revenue expected to be recognized from remaining performance obligations for periods prior to August 1, 2018. The following tables present the impact of the adoption of the standard on our previously reported results (in millions, except per share data): Three Months Ended October 31, 2017 As Previously Reported Impact of Adoption As Adjusted Condensed Consolidated Statements of Operations Product revenue $ 186.5 $ (1.7 ) $ 184.8 Subscription and support revenue 319.0 (2.0 ) 317.0 Total revenue 505.5 (3.7 ) 501.8 Total cost of revenue 141.4 (0.1 ) 141.3 Total operating expenses 418.4 (4.4 ) 414.0 Operating loss (54.3 ) 0.8 (53.5 ) Net loss (64.0 ) 0.8 (63.2 ) Net loss per share, basic and diluted $ (0.70 ) $ — $ (0.70 ) July 31, 2018 As Previously Reported Impact of Adoption As Adjusted Condensed 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 did not impact net cash flows from operating, investing, or financing activities in our condensed consolidated statements of cash flows. Recently Issued Accounting Pronouncements Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued new authoritative guidance on customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, which will require customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The standard is effective for us in our first quarter of fiscal 2021 and will be applied on either a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating adoption timing and whether this standard will have a material impact on our condensed 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 adoption timing and whether this standard will have a material impact on our condensed 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; however, we plan to adopt the new standard in our first quarter of fiscal 2020. Upon adoption, we will recognize right-of-use assets and operating lease liabilities on our condensed consolidated balance sheets, which will increase our total assets and total liabilities. We are currently evaluating the accounting, transition, and disclosure requirements of this standard, including its impact on our accounting policies and processes. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Our revenue consists of product revenue and subscription and support revenue. Revenue is recognized when control of promised products, subscriptions and support services are transferred to customers with the expected consideration in exchange for those products and services. Depending on who the contract is with, our customers are either our channel partners or our end-customers. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation. 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. Product Revenue Product revenue is derived primarily from sales of our appliances. Product revenue also includes revenue derived from software licenses of Panorama and the VM-Series. We recognize product revenue at the time of hardware shipment or delivery of software license. Subscription and Support Revenue Subscription and support revenue is derived primarily from sales of our subscription and support offerings. We recognize subscription and support revenue over time as the services are performed. Our contractual subscription and support contracts are typically one to five years. Contracts with Multiple Performance Obligations The majority of our contracts with our customers include various combinations of our products and subscriptions and support which are distinct and accounted for as separate performance obligations. We account for multiple agreements with a single customer as a single contract 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 contract. The amount of consideration we expect to receive in exchange for delivering on the contract is allocated to each performance obligation based on its relative standalone selling price. If a contract contains a single performance obligation, no allocation is required. We establish standalone selling price using the prices charged for a deliverable when sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price based on our pricing model and our go-to-market strategy, which include factors such as type of sales channel (reseller, distributor, or end-customer), the geographies in which our offerings were sold (domestic or international), and offering type (products, subscriptions, or support). Deferred Revenue We record deferred revenue when cash payments are received or due in advance of our performance. Our payment terms typically require payment within 30 to 45 days of the date we issue an invoice. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. During the three months ended October 31, 2018 , we recognized approximately $370.0 million of revenue pertaining to amounts that were deferred as of July 31, 2018 . Remaining Performance Obligations Revenue expected to be recognized from remaining performance obligations was $2.5 billion as of October 31, 2018 , of which we expect to recognize approximately $1.3 billion over the next 12 months and the remainder thereafter. Disaggregation of Revenue The following table presents revenue by geographic theater (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Americas United States $ 415.9 $ 326.0 Other Americas 34.3 23.3 Total Americas 450.2 349.3 Europe, the Middle East, and Africa (“EMEA”) 127.7 94.7 Asia Pacific and Japan (“APAC”) 78.1 57.8 Total revenue $ 656.0 $ 501.8 The following table presents revenue for groups of similar products and services (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Product $ 240.5 $ 184.8 Subscription and support Subscription 231.3 169.0 Support 184.2 148.0 Total subscription and support 415.5 317.0 Total revenue $ 656.0 $ 501.8 Deferred Contract Costs We defer contract costs that are recoverable and incremental to obtaining customer sales contracts. Contract costs, which primarily consist of sales commissions, are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Sales commissions paid for initial contracts are generally not commensurate with the commissions paid for renewal contracts, given the substantive difference in commission rates in proportion to their respective contract values. Sales commissions for initial contracts that are not commensurate are amortized over a benefit period of five years , consistent with the revenue recognition pattern of the performance obligations in the related contracts including expected renewals. The benefit period is determined by taking into consideration contract length, technology life, and other quantitative and qualitative factors. The expected renewals are estimated based on historical renewal trends. Sales commissions for initial contracts that are commensurate and sales commissions for renewal contracts are amortized over the related contractual period in proportion to the revenue recognized. We classify deferred contract costs as short-term or long-term based on when we expect to recognize the expense. Short-term deferred contract costs are included in prepaid expenses and other current assets and long-term deferred contract costs are included in other assets in our condensed consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. The amortization of deferred contract costs is included in sales and marketing expense in our condensed consolidated statements of operations. The following table presents details of our short-term and long-term deferred contract costs as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Short-term deferred contract costs $ 112.1 $ 113.2 Long-term deferred contract costs 223.1 224.8 Total deferred contract costs $ 335.2 $ 338.0 We recognized amortization expense for our deferred contract costs of $41.1 million and $28.1 million during the three months ended October 31, 2018 and 2017 , respectively. We did not recognize any impairment losses on our deferred contract costs during the three months ended October 31, 2018 or 2017 . |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Oct. 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 condensed 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 October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 904.4 $ — $ — $ 904.4 $ 1,512.3 $ — $ — $ 1,512.3 Commercial paper — 5.0 — 5.0 — 52.0 — 52.0 Corporate debt securities — 2.5 — 2.5 — — — — U.S. government and agency securities — 210.3 — 210.3 — 397.3 — 397.3 Total cash equivalents 904.4 217.8 — 1,122.2 1,512.3 449.3 — 1,961.6 Short-term investments: Certificates of deposit — 5.4 — 5.4 — 5.4 — 5.4 Non-U.S. government securities — 20.0 — 20.0 — 20.0 — 20.0 Commercial paper — 97.3 — 97.3 — 22.3 — 22.3 Corporate debt securities — 188.9 — 188.9 — 139.8 — 139.8 U.S. government and agency securities — 1,107.8 — 1,107.8 — 709.0 — 709.0 Total short-term investments — 1,419.4 — 1,419.4 — 896.5 — 896.5 Long-term investments: Corporate debt securities — 191.2 — 191.2 — 153.6 — 153.6 U.S. government and agency securities — 374.3 — 374.3 — 393.9 — 393.9 Total long-term investments — 565.5 — 565.5 — 547.5 — 547.5 Total assets measured at fair value $ 904.4 $ 2,202.7 $ — $ 3,107.1 $ 1,512.3 $ 1,893.3 $ — $ 3,405.6 Accrued and other liabilities: Foreign currency forward contracts $ — $ 11.4 $ — $ 11.4 $ — $ 6.9 $ — $ 6.9 Total accrued and other liabilities — 11.4 — 11.4 — 6.9 — 6.9 Total liabilities measured at fair value $ — $ 11.4 $ — $ 11.4 $ — $ 6.9 $ — $ 6.9 Refer to Note 9 . Debt for the carrying amount and estimated fair value of our convertible senior notes as of October 31, 2018 and July 31, 2018 . |
Cash Equivalents and Investment
Cash Equivalents and Investments (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Investments | Cash Equivalents and Investments Available-for-sale Securities The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale securities as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Commercial paper $ 5.0 $ — $ — $ 5.0 Corporate debt securities 2.5 — — 2.5 U.S. government and agency securities 210.3 — — 210.3 Total available-for-sale cash equivalents $ 217.8 $ — $ — $ 217.8 Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Non-U.S. government securities 20.0 — — 20.0 Commercial paper 97.3 — — 97.3 Corporate debt securities 382.5 — (2.4 ) 380.1 U.S. government and agency securities 1,489.0 — (6.9 ) 1,482.1 Total available-for-sale investments $ 1,994.2 $ — $ (9.3 ) $ 1,984.9 July 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Commercial paper $ 52.0 $ — $ — $ 52.0 U.S. government and agency securities 397.3 — — 397.3 Total available-for-sale cash equivalents $ 449.3 $ — $ — $ 449.3 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 available-for-sale investments $ 1,454.2 $ — $ (10.2 ) $ 1,444.0 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 October 31, 2018 and July 31, 2018 . The following table summarizes the amortized cost and fair value of our available-for-sale securities as of October 31, 2018 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 1,640.9 $ 1,637.2 Due between one and three years 571.1 565.5 Total $ 2,212.0 $ 2,202.7 Marketable Equity Securities Marketable equity securities consist of money market funds and are included in cash and cash equivalents in our condensed consolidated balance sheets. As of October 31, 2018 and July 31, 2018 , the carrying value of our marketable equity securities were $904.4 million and $1.5 billion , respectively. During the three months ended October 31, 2018 and 2017, there were no unrealized gains or losses recognized for these securities. |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
Oct. 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 12 months or less which we designate as cash flow hedges to manage the foreign currency exchange rate risk associated with these expenditures. These 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 derivative financial instruments are recorded at fair value, on a gross basis, as either assets or liabilities in our condensed consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) in our condensed consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our condensed 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 condensed consolidated statements of operations. Gains or losses related to non-designated derivative instruments are recognized in other income (expense), net in our condensed 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 condensed consolidated statements of cash flows in the same manner as the underlying hedged transaction, primarily within cash flows from operating activities. As of October 31, 2018 and July 31, 2018 , the total notional amount of our outstanding foreign currency forward contracts was $238.0 million and $288.5 million , respectively. Refer to Note 3 . Fair Value Measurements for the fair value of our derivative instruments as reported in our condensed consolidated balance sheets as of October 31, 2018 . During the three months ended October 31, 2018 and 2017 , both unrealized gains and losses recognized in AOCI related to our cash flow hedges and amounts reclassified into earnings were not material. Unrealized losses in AOCI related to our cash flow hedges as of October 31, 2018 and 2017 were not material. |
Acquisitions (Notes)
Acquisitions (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions RedLock Inc. On October 12, 2018, we completed our acquisition of 100% of the voting equity interest of RedLock Inc. (“RedLock”) , a privately-held cloud security company. The acquisition expands our security capabilities for the public cloud with the addition of RedLock ’s cloud security analytics technology. Total purchase consideration for the acquisition of RedLock was $158.2 million , which consisted of $155.0 million in cash paid upon closing and $3.2 million in fair value of unvested equity awards attributable to services performed prior to the acquisition date. As part of the acquisition, we assumed RedLock equity awards with a total fair value of $57.4 million . Of the total fair value, a portion was allocated to the purchase consideration and the remainder was allocated to future services and will be expensed over the remaining service periods as share-based compensation. 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 $ 113.6 Identified intangible assets 54.8 Net liabilities assumed (10.2 ) Total $ 158.2 Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating RedLock ’s technology into 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 $ 48.6 4 years Customer relationships 5.3 8 years Trade name and trademarks 0.9 6 months Total $ 54.8 RedLock ’s operating results are included in our condensed consolidated statements of operations from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our condensed consolidated statements of operations. Additional information, 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 acquisition date, which may result in changes to the amounts and allocations recorded. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 3 Months Ended |
Oct. 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 three months ended October 31, 2018 (in millions): Amount Balance as of July 31, 2018 $ 522.8 Goodwill acquired 113.6 Balance as of October 31, 2018 $ 636.4 Purchased Intangible Assets The following table presents details of our purchased intangible assets as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 203.3 $ (45.3 ) $ 158.0 $ 154.7 $ (38.2 ) $ 116.5 Customer relationships 17.5 (1.7 ) 15.8 12.2 (1.2 ) 11.0 Acquired intellectual property 8.9 (4.7 ) 4.2 8.9 (4.5 ) 4.4 Trade name and trademarks 9.4 (2.0 ) 7.4 8.5 (0.4 ) 8.1 Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 241.3 (55.9 ) 185.4 186.5 (46.5 ) 140.0 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 0.8 — 0.8 Total purchased intangible assets $ 242.1 $ (55.9 ) $ 186.2 $ 187.3 $ (46.5 ) $ 140.8 We recognized amortization expense of $9.4 million and $2.7 million for the three months ended October 31, 2018 and 2017 , respectively. The following table summarizes estimated future amortization expense of our intangible assets as of October 31, 2018 (in millions): Amount Fiscal years ending July 31: Remaining 2019 $ 37.1 2020 39.4 2021 37.4 2022 32.9 2023 20.4 2024 and thereafter 18.2 Total future amortization expense $ 185.4 |
Deferred Contract Costs (Notes)
Deferred Contract Costs (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Costs | Revenue Revenue Recognition Our revenue consists of product revenue and subscription and support revenue. Revenue is recognized when control of promised products, subscriptions and support services are transferred to customers with the expected consideration in exchange for those products and services. Depending on who the contract is with, our customers are either our channel partners or our end-customers. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation. 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. Product Revenue Product revenue is derived primarily from sales of our appliances. Product revenue also includes revenue derived from software licenses of Panorama and the VM-Series. We recognize product revenue at the time of hardware shipment or delivery of software license. Subscription and Support Revenue Subscription and support revenue is derived primarily from sales of our subscription and support offerings. We recognize subscription and support revenue over time as the services are performed. Our contractual subscription and support contracts are typically one to five years. Contracts with Multiple Performance Obligations The majority of our contracts with our customers include various combinations of our products and subscriptions and support which are distinct and accounted for as separate performance obligations. We account for multiple agreements with a single customer as a single contract 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 contract. The amount of consideration we expect to receive in exchange for delivering on the contract is allocated to each performance obligation based on its relative standalone selling price. If a contract contains a single performance obligation, no allocation is required. We establish standalone selling price using the prices charged for a deliverable when sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price based on our pricing model and our go-to-market strategy, which include factors such as type of sales channel (reseller, distributor, or end-customer), the geographies in which our offerings were sold (domestic or international), and offering type (products, subscriptions, or support). Deferred Revenue We record deferred revenue when cash payments are received or due in advance of our performance. Our payment terms typically require payment within 30 to 45 days of the date we issue an invoice. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. During the three months ended October 31, 2018 , we recognized approximately $370.0 million of revenue pertaining to amounts that were deferred as of July 31, 2018 . Remaining Performance Obligations Revenue expected to be recognized from remaining performance obligations was $2.5 billion as of October 31, 2018 , of which we expect to recognize approximately $1.3 billion over the next 12 months and the remainder thereafter. Disaggregation of Revenue The following table presents revenue by geographic theater (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Americas United States $ 415.9 $ 326.0 Other Americas 34.3 23.3 Total Americas 450.2 349.3 Europe, the Middle East, and Africa (“EMEA”) 127.7 94.7 Asia Pacific and Japan (“APAC”) 78.1 57.8 Total revenue $ 656.0 $ 501.8 The following table presents revenue for groups of similar products and services (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Product $ 240.5 $ 184.8 Subscription and support Subscription 231.3 169.0 Support 184.2 148.0 Total subscription and support 415.5 317.0 Total revenue $ 656.0 $ 501.8 Deferred Contract Costs We defer contract costs that are recoverable and incremental to obtaining customer sales contracts. Contract costs, which primarily consist of sales commissions, are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Sales commissions paid for initial contracts are generally not commensurate with the commissions paid for renewal contracts, given the substantive difference in commission rates in proportion to their respective contract values. Sales commissions for initial contracts that are not commensurate are amortized over a benefit period of five years , consistent with the revenue recognition pattern of the performance obligations in the related contracts including expected renewals. The benefit period is determined by taking into consideration contract length, technology life, and other quantitative and qualitative factors. The expected renewals are estimated based on historical renewal trends. Sales commissions for initial contracts that are commensurate and sales commissions for renewal contracts are amortized over the related contractual period in proportion to the revenue recognized. We classify deferred contract costs as short-term or long-term based on when we expect to recognize the expense. Short-term deferred contract costs are included in prepaid expenses and other current assets and long-term deferred contract costs are included in other assets in our condensed consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. The amortization of deferred contract costs is included in sales and marketing expense in our condensed consolidated statements of operations. The following table presents details of our short-term and long-term deferred contract costs as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Short-term deferred contract costs $ 112.1 $ 113.2 Long-term deferred contract costs 223.1 224.8 Total deferred contract costs $ 335.2 $ 338.0 We recognized amortization expense for our deferred contract costs of $41.1 million and $28.1 million during the three months ended October 31, 2018 and 2017 , respectively. We did not recognize any impairment losses on our deferred contract costs during the three months ended October 31, 2018 or 2017 . |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 Initial 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 were able to convert their 2019 Notes at any time during the fiscal quarter ended October 31, 2018. During the three months ended October 31, 2018, holders converted $327.3 million in aggregate principal amount of the 2019 Notes, which we repaid in cash. We also issued 1.4 million shares of our common stock to the holders for the conversion value in excess of the principal amount. These shares were fully offset by shares received from the corresponding exercise of the associated note hedges. We allocated $317.1 million of the cash consideration to the liability component of the converted 2019 Notes, which was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature. We recorded a loss of $2.2 million related to the settlement of the 2019 Notes converted, which represented the difference between the cash consideration allocated to the liability component and the net carrying amount of the liability component on the respective settlement dates. The loss was included in other income, net in our condensed consolidated statement of operations for the three months ended October 31, 2018. During the three months ended October 31, 2018, we also recorded a $10.2 million net reduction to additional paid-in capital in our condensed consolidated balance sheets, reflecting the portion of the cash consideration allocated to the equity component. The sale price condition continued to be met through the fiscal quarter ended October 31, 2018, and, as a result, holders may convert their 2019 Notes at any time prior to January 1, 2019 (the “2019 Notes Convertible Date”). On or after the 2019 Notes Convertible Date, holders may convert their 2019 Notes at any time prior to maturity, in accordance with the terms described above, regardless of the sale price condition. Accordingly, the net carrying amount of the 2019 Notes was classified as a current liability and the portion of the equity component representing the conversion option was classified as temporary equity in our condensed consolidated balance sheets as of October 31, 2018. The sale price condition was not met for the 2023 Notes during the fiscal quarters ended October 31, 2018 and 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 condensed consolidated balance sheets as of October 31, 2018. As of October 31, 2018, $247.7 million in aggregate principal amount of the 2019 Notes remained outstanding and all of the 2023 Notes remained outstanding. Subsequent to October 31, 2018, through the filing date of this Quarterly Report on Form 10-Q, $88.3 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 January 31, 2019. The following table sets forth the components of the Notes as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Liability component: Principal $ 247.7 $ 1,693.0 $ 1,940.7 $ 575.0 $ 1,693.0 $ 2,268.0 Less: debt discount and debt issuance costs, net of amortization 7.8 308.5 316.3 24.6 323.3 347.9 Net carrying amount $ 239.9 $ 1,384.5 $ 1,624.4 $ 550.4 $ 1,369.7 $ 1,920.1 Equity component (including amounts classified as temporary equity) $ 47.3 $ 315.0 $ 362.3 $ 109.8 $ 315.0 $ 424.8 The total estimated fair value of the Notes was $2.1 billion and $2.7 billion at October 31, 2018 and July 31, 2018, 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 October 31, 2018 and July 31, 2018 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 October 31, 2018, the if-converted value of the 2019 Notes exceeded its principal amount by $220.2 million . Based on the closing price of our common stock on October 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): Three Months Ended Three Months Ended October 31, 2018 October 31, 2017 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Contractual interest expense $ — $ 3.2 $ 3.2 $ — $ — $ — Amortization of debt discount 4.0 14.4 18.4 5.6 — 5.6 Amortization of debt issuance costs 0.5 0.5 1.0 0.7 — 0.7 Total interest expense recognized $ 4.5 $ 18.1 $ 22.6 $ 6.3 $ — $ 6.3 Effective interest rate of the liability component 4.8 % 5.2 % 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): Initial Number of 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. As a result of the conversions of the 2019 Notes settled during the fiscal quarter ended October 31, 2018, we exercised the corresponding portion of our 2019 Note Hedges and received 1.4 million shares of common stock during the period. 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 2019 Warrants and 2023 Warrants are exercisable beginning October 2019 and October 2023, respectively. The following table presents details of the Warrants (in millions, except per share data): Initial Number of 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. Revolving Credit Facility On September 4, 2018, we entered into a credit agreement (the “Credit Agreement”) with certain institutional lenders that provides for a $400.0 million unsecured revolving credit facility (the “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. The Credit Facility matures on the earlier of (i) September 4, 2023 and (ii) the date that is 91 days prior to the stated maturity of our 2023 Notes if (a) any of the 2023 Notes are still outstanding and (b) our unrestricted cash and cash equivalents are less than the then outstanding principal amount of our 2023 Notes plus $400.0 million . The borrowings under the Credit Facility bear interest, at our option, at a base rate plus a spread of 0.00% to 0.75% , or an adjusted LIBO rate plus a spread of 1.00% to 1.75% , in each case with such spread being determined based on our leverage ratio. We are obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.125% to 0.250% , depending on our leverage ratio. As of October 31, 2018, there were no amounts outstanding and we were in compliance with all covenants under the Credit Agreement. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Oct. 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 have applied and 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 three months ended October 31, 2018 , we released $2.5 million of the cease-use liability through rental payments. As of October 31, 2018 , the remaining balance of the cease-use liability was $26.6 million , which is expected to be paid through the end of the lease term in July 2023. The following table presents details of the aggregate future non-cancelable minimum rental payments under our operating leases as of October 31, 2018 (in millions): Amount Fiscal years ending July 31: Remaining 2019 $ 50.4 2020 68.9 2021 64.1 2022 59.8 2023 58.5 2024 and thereafter 224.1 Committed gross lease payments 525.8 Less: proceeds from sublease rentals 12.8 Net operating lease obligation $ 513.0 Purchase Commitments Manufacturing Purchase Commitments Our electronics manufacturing service provider (“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 October 31, 2018 , our purchase commitments under such orders were $155.6 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 October 31, 2018 , our purchase commitment under the addendum was $8.0 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 October 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. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Share Repurchase Program In August 2016, our board of directors authorized a $500.0 million share repurchase program that is funded from available working capital. In February 2017, our board of directors authorized a $500.0 million increase to our 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. There were no shares repurchased under the authorization during the three months ended October 31, 2018 . As of October 31, 2018 , $330.0 million remained available for future share repurchases under the repurchase authorization. |
Equity Award Plans (Notes)
Equity Award Plans (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Award Plans | Equity Award Plans Share-Based Compensation Plans RedLock Inc. 2015 Stock Plan In connection with our acquisition of RedLock on October 12, 2018, we assumed RedLock’s 2015 Stock Plan, as amended (the “RedLock Plan”), under which the assumed RedLock equity awards were granted. The assumed equity awards will be settled in shares of our common stock and will retain the terms and conditions under which they were originally granted; forfeited awards will not be returned to the RedLock Plan. No additional equity awards will be granted under the RedLock Plan. Refer to Note 6 . Acquisitions for more information on the RedLock acquisition and the related equity awards assumed. Stock Option Activities The following table summarizes the stock option and performance stock option (“PSO”) activity under our stock plans during the reporting period (in millions, except per share amounts): Stock Options Outstanding PSOs Outstanding Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Balance—July 31, 2018 1.1 $ 13.29 3.1 $ 199.8 1.1 $ 198.50 7.0 $ — Granted — $ — 2.2 $ 193.51 Exercised (0.2 ) $ 13.51 — $ — Forfeited — $ — — $ — Balance—October 31, 2018 0.9 $ 13.23 2.9 $ 150.7 3.3 $ 195.24 7.0 $ — Exercisable—October 31, 2018 0.9 $ 13.23 2.9 $ 150.7 — $ — 0.0 $ — In October 2018, we granted 2.2 million PSOs with both a market condition and a service condition to certain executives. The market condition requires the price of our common stock to equal or exceed $297.75 , $397.00 , $496.25 , and $595.50 (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. The aggregate fair value of the PSOs granted in October 2018 was $130.0 million based on a weighted-average fair value of $59.64 per share, which was estimated on the grant date using a Monte Carlo simulation model and the following assumptions: expected volatility of 35.6% , 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 rates ranging from 3.1% to 3.2% , 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 PSOs. We recognize share-based compensation expense for our PSOs on a straight-line basis over the requisite service period for each separately vesting portion of the award. In November 2018, we granted PSOs and restricted stock units with a total value of $34.5 million to our newly appointed president. Restricted Stock Award (“RSA”) , Performance-Based Stock Award (“PSA”) , Restricted Stock Unit (“RSU”) , and Performance-Based 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 of Shares Weighted-Average Grant-Date Fair Value Per Share Number of Shares Weighted-Average Grant-Date Fair Value Per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance—July 31, 2018 0.3 $ 160.85 6.7 $ 160.20 1.6 $ 1,335.2 Granted (1)(2) — $ — 1.6 $ 198.48 Vested (0.1 ) $ 167.18 (0.6 ) $ 149.95 Forfeited — $ — (0.2 ) $ 156.39 Balance—October 31, 2018 0.2 $ 157.84 7.5 $ 169.81 1.6 $ 1,367.9 ______________ (1) For PSA s and PSU s, shares granted represents the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. (2) Includes 0.2 million RSUs granted under the assumed RedLock Plan with a weighted-average grant-date fair value of $211.95 per share. Our PSAs and PSUs vest over a period of four years from the date of grant. The actual number of PSAs and PSUs earned and eligible to vest are determined based on level of achievement against a pre-established billings target for the fiscal year in which the awards are granted. We recognize share-based compensation expense for our PSAs and PSUs on a straight-line basis over the requisite service period for each separately vesting portion of the award when it is probable that the performance condition will be achieved. Share-Based Compensation The following table summarizes share-based compensation included in costs and expenses (in millions): Three Months Ended October 31, 2018 2017 Cost of product revenue $ 1.6 $ 1.9 Cost of subscription and support revenue 17.5 15.9 Research and development 40.5 37.5 Sales and marketing 56.0 51.2 General and administrative 35.5 19.2 Total share-based compensation $ 151.1 $ 125.7 In connection with our acquisition of RedLock, we accelerated the vesting of certain equity awards and as a result, we recorded $14.2 million of share-based compensation within general and administrative expense during the three months ended October 31, 2018. As of October 31, 2018 , total compensation cost related to unvested share-based awards not yet recognized was $1.4 billion . This cost is expected to be amortized over a weighted-average period of approximately 2.9 years . Future grants will increase the amount of compensation expense to be recorded in these periods. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes for the three months ended October 31, 2018 reflects an effective tax rate of 8.4% . Our effective tax rate for the three months ended October 31, 2018 was positive as we recorded a benefit from income taxes on year to date losses. The key components of our income tax provision, excluding one-time items, primarily consist of foreign income taxes and withholding taxes. During the three months ended October 31, 2018 , the effect of these key components were offset by a one-time tax benefit of $9.4 million from a partial release of our valuation allowance related to the acquisition of RedLock Inc. Our effective tax rate differs from the U.S. statutory tax rate primarily due to deductibility of our share-based compensation, foreign income at other than U.S. tax rates, and changes in our valuation allowance. Our provision for income taxes for the three months ended October 31, 2017 reflects an effective tax rate of (14.9)% . Our effective tax rate for this period was negative as we recorded a provision for income taxes on year to date losses. The key components of our income tax provision primarily consisted of foreign income taxes, withholding taxes, and amortization of our deferred tax charges. Our effective tax rate differed from the U.S. statutory tax rate primarily due to changes in non-deductible share-based compensation, foreign income at other than U.S. tax rates, and charges in our valuation allowance. In December 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted into law. The SEC staff and FASB previously 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. As of October 31, 2018 , we did not have any significant adjustments to our assessment performed as of July 31, 2018 . We continue to analyze the tax effects of the TCJA, which are still subject to change during the measurement period, and anticipate further guidance on accounting interpretations from the FASB and application of the TCJA from the U.S. federal and state tax authorities. |
Net Loss Per Share (Notes)
Net Loss Per Share (Notes) | 3 Months Ended |
Oct. 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): Three Months Ended October 31, 2018 2017 (As Adjusted) Net loss $ (38.3 ) $ (63.2 ) Weighted-average shares used to compute net loss per share, basic and diluted 93.8 90.9 Net loss per share, basic and diluted $ (0.41 ) $ (0.70 ) 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): Three Months Ended October 31, 2018 2017 Convertible senior notes 8.6 5.2 Warrants related to the issuance of convertible senior notes 11.6 5.2 RSUs and PSUs 7.5 7.3 Options to purchase common stock, including PSOs 4.2 1.5 RSAs and PSAs 0.2 0.8 ESPP shares 0.1 0.1 Total 32.2 20.1 |
Other Income, Net (Notes)
Other Income, Net (Notes) | 3 Months Ended |
Oct. 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): Three Months Ended October 31, 2018 2017 Interest income $ 15.4 $ 5.1 Foreign currency exchange gains (losses), net — (0.6 ) Other (2.4 ) 0.3 Total other income, net $ 13.0 $ 4.8 |
Description of Business, Basi_2
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 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 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 and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) , consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 , filed with the Securities and Exchange Commission (“SEC”) on September 13, 2018. Our condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Our condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. Certain prior period amounts have been adjusted due to our retrospective adoption of new accounting guidance related to revenue from contracts with customers and new accounting guidance related to the presentation of restricted cash and cash equivalents in the statement of cash flows. Refer to “Recently Adopted Accounting Pronouncements” below for more information. Our condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 . Summary of Significant Accounting Policies There have been no material changes to our significant accounting policies as of and for the three months ended October 31, 2018 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018 , except for the change in our accounting policies for revenue recognition and deferred contract costs due to our adoption of new accounting guidance related to revenue from contracts with customers. Refer to “Recently Adopted Accounting Pronouncements” below, Note 2 . Revenue, and Note 8 . Deferred Contract Costs for more information. |
Recent accounting pronouncements | Recently Adopted Accounting Pronouncements Business Combinations - Definition of a Business In January 2017, the Financial Accounting Standards Board (“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. We adopted this standard in our first quarter of fiscal 2019 on a prospective basis. The adoption of the standard did not have an impact on our condensed 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. We adopted this standard in our first quarter of fiscal 2019 on a retrospective basis. The adoption of the standard did not have a material impact on our condensed 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. We adopted the standard in our first quarter of fiscal 2019 on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as an increase to accumulated deficit of $28.4 million , with a corresponding decrease to prepaid expenses and other current assets and other assets in our condensed consolidated balance sheets as of August 1, 2018, the date of adoption. The cumulative effect adjustment represents 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. We adopted this standard in our first quarter of fiscal 2019 on a retrospective basis. The adoption of the standard did not have an impact on our condensed consolidated financial statements. Financial Instruments - Recognition and Measurement In January 2016, the FASB issued authoritative guidance requiring equity instruments to be measured at fair value with changes in fair value recognized through net income. We adopted this standard in our first quarter of fiscal 2019 on a prospective basis for non-marketable equity securities and a modified retrospective basis for marketable equity investments. The adoption of the standard did not have an impact on our condensed 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 when control of promised goods or services is transferred to customers with the expected consideration 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, and assets recognized from costs incurred to obtain or fulfill a contract. We adopted the standard in our first quarter of fiscal 2019 using the full retrospective method. The adoption of the new standard did not have a material impact on our condensed 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, which primarily consist of sales commissions, due to the longer period of amortization. Under the previous accounting guidance, we deferred and amortized these costs over the term of the related contract. Under the new standard, we 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 adoption of the standard using the full retrospective method required us to restate the prior periods presented in this Quarterly Report on Form 10-Q, with the cumulative effect of the change of $168.2 million reflected in accumulated deficit as of August 1, 2017. In adopting the new standard, we have also applied a transition practical expedient and have not disclosed revenue expected to be recognized from remaining performance obligations for periods prior to August 1, 2018. The following tables present the impact of the adoption of the standard on our previously reported results (in millions, except per share data): Three Months Ended October 31, 2017 As Previously Reported Impact of Adoption As Adjusted Condensed Consolidated Statements of Operations Product revenue $ 186.5 $ (1.7 ) $ 184.8 Subscription and support revenue 319.0 (2.0 ) 317.0 Total revenue 505.5 (3.7 ) 501.8 Total cost of revenue 141.4 (0.1 ) 141.3 Total operating expenses 418.4 (4.4 ) 414.0 Operating loss (54.3 ) 0.8 (53.5 ) Net loss (64.0 ) 0.8 (63.2 ) Net loss per share, basic and diluted $ (0.70 ) $ — $ (0.70 ) July 31, 2018 As Previously Reported Impact of Adoption As Adjusted Condensed 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 did not impact net cash flows from operating, investing, or financing activities in our condensed consolidated statements of cash flows. Recently Issued Accounting Pronouncements Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued new authoritative guidance on customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, which will require customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The standard is effective for us in our first quarter of fiscal 2021 and will be applied on either a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating adoption timing and whether this standard will have a material impact on our condensed 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 adoption timing and whether this standard will have a material impact on our condensed 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; however, we plan to adopt the new standard in our first quarter of fiscal 2020. Upon adoption, we will recognize right-of-use assets and operating lease liabilities on our condensed consolidated balance sheets, which will increase our total assets and total liabilities. We are currently evaluating the accounting, transition, and disclosure requirements of this standard, including its impact on our accounting policies and processes. |
Revenue recognition | Revenue Recognition Our revenue consists of product revenue and subscription and support revenue. Revenue is recognized when control of promised products, subscriptions and support services are transferred to customers with the expected consideration in exchange for those products and services. Depending on who the contract is with, our customers are either our channel partners or our end-customers. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation. 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. Product Revenue Product revenue is derived primarily from sales of our appliances. Product revenue also includes revenue derived from software licenses of Panorama and the VM-Series. We recognize product revenue at the time of hardware shipment or delivery of software license. Subscription and Support Revenue Subscription and support revenue is derived primarily from sales of our subscription and support offerings. We recognize subscription and support revenue over time as the services are performed. Our contractual subscription and support contracts are typically one to five years. Contracts with Multiple Performance Obligations The majority of our contracts with our customers include various combinations of our products and subscriptions and support which are distinct and accounted for as separate performance obligations. We account for multiple agreements with a single customer as a single contract 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 contract. The amount of consideration we expect to receive in exchange for delivering on the contract is allocated to each performance obligation based on its relative standalone selling price. If a contract contains a single performance obligation, no allocation is required. We establish standalone selling price using the prices charged for a deliverable when sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price based on our pricing model and our go-to-market strategy, which include factors such as type of sales channel (reseller, distributor, or end-customer), the geographies in which our offerings were sold (domestic or international), and offering type (products, subscriptions, or support). |
Deferred revenue | Deferred Revenue We record deferred revenue when cash payments are received or due in advance of our performance. Our payment terms typically require payment within 30 to 45 days of the date we issue an invoice. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. During the three months ended October 31, 2018 , we recognized approximately $370.0 million of revenue pertaining to amounts that were deferred as of July 31, 2018 . |
Fair value measurements | Fair Value Measurements We categorize assets and liabilities recorded or disclosed at fair value on our condensed 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. |
Derivative instruments | Our derivative financial instruments are recorded at fair value, on a gross basis, as either assets or liabilities in our condensed consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) in our condensed consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our condensed 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 condensed consolidated statements of operations. Gains or losses related to non-designated derivative instruments are recognized in other income (expense), net in our condensed 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 condensed consolidated statements of cash flows in the same manner as the underlying hedged transaction, primarily within cash flows from operating activities. |
Deferred contract costs | Deferred Contract Costs We defer contract costs that are recoverable and incremental to obtaining customer sales contracts. Contract costs, which primarily consist of sales commissions, are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Sales commissions paid for initial contracts are generally not commensurate with the commissions paid for renewal contracts, given the substantive difference in commission rates in proportion to their respective contract values. Sales commissions for initial contracts that are not commensurate are amortized over a benefit period of five years , consistent with the revenue recognition pattern of the performance obligations in the related contracts including expected renewals. The benefit period is determined by taking into consideration contract length, technology life, and other quantitative and qualitative factors. The expected renewals are estimated based on historical renewal trends. Sales commissions for initial contracts that are commensurate and sales commissions for renewal contracts are amortized over the related contractual period in proportion to the revenue recognized. We classify deferred contract costs as short-term or long-term based on when we expect to recognize the expense. Short-term deferred contract costs are included in prepaid expenses and other current assets and long-term deferred contract costs are included in other assets in our condensed consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. The amortization of deferred contract costs is included in sales and marketing expense in our condensed consolidated statements of operations. |
Share-based compensation, PSAs and PSUs | Our PSAs and PSUs vest over a period of four years from the date of grant. The actual number of PSAs and PSUs earned and eligible to vest are determined based on level of achievement against a pre-established billings target for the fiscal year in which the awards are granted. We recognize share-based compensation expense for our PSAs and PSUs on a straight-line basis over the requisite service period for each separately vesting portion of the award when it is probable that the performance condition will be achieved. |
Description of Business, Basi_3
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of impact from adoption of new accounting pronouncement - accounting for revenue contracts with customers | The following tables present the impact of the adoption of the standard on our previously reported results (in millions, except per share data): Three Months Ended October 31, 2017 As Previously Reported Impact of Adoption As Adjusted Condensed Consolidated Statements of Operations Product revenue $ 186.5 $ (1.7 ) $ 184.8 Subscription and support revenue 319.0 (2.0 ) 317.0 Total revenue 505.5 (3.7 ) 501.8 Total cost of revenue 141.4 (0.1 ) 141.3 Total operating expenses 418.4 (4.4 ) 414.0 Operating loss (54.3 ) 0.8 (53.5 ) Net loss (64.0 ) 0.8 (63.2 ) Net loss per share, basic and diluted $ (0.70 ) $ — $ (0.70 ) July 31, 2018 As Previously Reported Impact of Adoption As Adjusted Condensed 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 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from external customers by geographic areas | The following table presents revenue by geographic theater (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Americas United States $ 415.9 $ 326.0 Other Americas 34.3 23.3 Total Americas 450.2 349.3 Europe, the Middle East, and Africa (“EMEA”) 127.7 94.7 Asia Pacific and Japan (“APAC”) 78.1 57.8 Total revenue $ 656.0 $ 501.8 |
Revenue from external customers by products and services | The following table presents revenue for groups of similar products and services (in millions): Three Months Ended October 31, 2018 2017 (As Adjusted) Revenue: Product $ 240.5 $ 184.8 Subscription and support Subscription 231.3 169.0 Support 184.2 148.0 Total subscription and support 415.5 317.0 Total revenue $ 656.0 $ 501.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 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 October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 904.4 $ — $ — $ 904.4 $ 1,512.3 $ — $ — $ 1,512.3 Commercial paper — 5.0 — 5.0 — 52.0 — 52.0 Corporate debt securities — 2.5 — 2.5 — — — — U.S. government and agency securities — 210.3 — 210.3 — 397.3 — 397.3 Total cash equivalents 904.4 217.8 — 1,122.2 1,512.3 449.3 — 1,961.6 Short-term investments: Certificates of deposit — 5.4 — 5.4 — 5.4 — 5.4 Non-U.S. government securities — 20.0 — 20.0 — 20.0 — 20.0 Commercial paper — 97.3 — 97.3 — 22.3 — 22.3 Corporate debt securities — 188.9 — 188.9 — 139.8 — 139.8 U.S. government and agency securities — 1,107.8 — 1,107.8 — 709.0 — 709.0 Total short-term investments — 1,419.4 — 1,419.4 — 896.5 — 896.5 Long-term investments: Corporate debt securities — 191.2 — 191.2 — 153.6 — 153.6 U.S. government and agency securities — 374.3 — 374.3 — 393.9 — 393.9 Total long-term investments — 565.5 — 565.5 — 547.5 — 547.5 Total assets measured at fair value $ 904.4 $ 2,202.7 $ — $ 3,107.1 $ 1,512.3 $ 1,893.3 $ — $ 3,405.6 Accrued and other liabilities: Foreign currency forward contracts $ — $ 11.4 $ — $ 11.4 $ — $ 6.9 $ — $ 6.9 Total accrued and other liabilities — 11.4 — 11.4 — 6.9 — 6.9 Total liabilities measured at fair value $ — $ 11.4 $ — $ 11.4 $ — $ 6.9 $ — $ 6.9 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale securities | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale securities as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Commercial paper $ 5.0 $ — $ — $ 5.0 Corporate debt securities 2.5 — — 2.5 U.S. government and agency securities 210.3 — — 210.3 Total available-for-sale cash equivalents $ 217.8 $ — $ — $ 217.8 Investments: Certificates of deposit $ 5.4 $ — $ — $ 5.4 Non-U.S. government securities 20.0 — — 20.0 Commercial paper 97.3 — — 97.3 Corporate debt securities 382.5 — (2.4 ) 380.1 U.S. government and agency securities 1,489.0 — (6.9 ) 1,482.1 Total available-for-sale investments $ 1,994.2 $ — $ (9.3 ) $ 1,984.9 July 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Commercial paper $ 52.0 $ — $ — $ 52.0 U.S. government and agency securities 397.3 — — 397.3 Total available-for-sale cash equivalents $ 449.3 $ — $ — $ 449.3 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 available-for-sale investments $ 1,454.2 $ — $ (10.2 ) $ 1,444.0 |
Schedule of contractual maturities of available-for-sale securities | The following table summarizes the amortized cost and fair value of our available-for-sale securities as of October 31, 2018 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 1,640.9 $ 1,637.2 Due between one and three years 571.1 565.5 Total $ 2,212.0 $ 2,202.7 |
Acquisitions (Tables)
Acquisitions (Tables) - RedLock, Inc. | 3 Months Ended |
Oct. 31, 2018 | |
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 $ 113.6 Identified intangible assets 54.8 Net liabilities assumed (10.2 ) Total $ 158.2 |
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 $ 48.6 4 years Customer relationships 5.3 8 years Trade name and trademarks 0.9 6 months Total $ 54.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents details of our goodwill during the three months ended October 31, 2018 (in millions): Amount Balance as of July 31, 2018 $ 522.8 Goodwill acquired 113.6 Balance as of October 31, 2018 $ 636.4 |
Schedule of purchased finite-lived intangible assets by major class | The following table presents details of our purchased intangible assets as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 203.3 $ (45.3 ) $ 158.0 $ 154.7 $ (38.2 ) $ 116.5 Customer relationships 17.5 (1.7 ) 15.8 12.2 (1.2 ) 11.0 Acquired intellectual property 8.9 (4.7 ) 4.2 8.9 (4.5 ) 4.4 Trade name and trademarks 9.4 (2.0 ) 7.4 8.5 (0.4 ) 8.1 Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 241.3 (55.9 ) 185.4 186.5 (46.5 ) 140.0 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 0.8 — 0.8 Total purchased intangible assets $ 242.1 $ (55.9 ) $ 186.2 $ 187.3 $ (46.5 ) $ 140.8 |
Schedule of purchased indefinite-lived intangible assets by major class | The following table presents details of our purchased intangible assets as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 203.3 $ (45.3 ) $ 158.0 $ 154.7 $ (38.2 ) $ 116.5 Customer relationships 17.5 (1.7 ) 15.8 12.2 (1.2 ) 11.0 Acquired intellectual property 8.9 (4.7 ) 4.2 8.9 (4.5 ) 4.4 Trade name and trademarks 9.4 (2.0 ) 7.4 8.5 (0.4 ) 8.1 Other 2.2 (2.2 ) — 2.2 (2.2 ) — Total intangible assets subject to amortization 241.3 (55.9 ) 185.4 186.5 (46.5 ) 140.0 Intangible assets not subject to amortization: In-process research and development 0.8 — 0.8 0.8 — 0.8 Total purchased intangible assets $ 242.1 $ (55.9 ) $ 186.2 $ 187.3 $ (46.5 ) $ 140.8 |
Future amortization expense of intangible assets | The following table summarizes estimated future amortization expense of our intangible assets as of October 31, 2018 (in millions): Amount Fiscal years ending July 31: Remaining 2019 $ 37.1 2020 39.4 2021 37.4 2022 32.9 2023 20.4 2024 and thereafter 18.2 Total future amortization expense $ 185.4 |
Deferred Contract Costs (Tables
Deferred Contract Costs (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of deferred contract costs | The following table presents details of our short-term and long-term deferred contract costs as of October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 Short-term deferred contract costs $ 112.1 $ 113.2 Long-term deferred contract costs 223.1 224.8 Total deferred contract costs $ 335.2 $ 338.0 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible senior 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 Initial 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 October 31, 2018 and July 31, 2018 (in millions): October 31, 2018 July 31, 2018 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Liability component: Principal $ 247.7 $ 1,693.0 $ 1,940.7 $ 575.0 $ 1,693.0 $ 2,268.0 Less: debt discount and debt issuance costs, net of amortization 7.8 308.5 316.3 24.6 323.3 347.9 Net carrying amount $ 239.9 $ 1,384.5 $ 1,624.4 $ 550.4 $ 1,369.7 $ 1,920.1 Equity component (including amounts classified as temporary equity) $ 47.3 $ 315.0 $ 362.3 $ 109.8 $ 315.0 $ 424.8 |
Interest expense recognized related to the convertible senior notes | The following table sets forth interest expense recognized related to the Notes (dollars in millions): Three Months Ended Three Months Ended October 31, 2018 October 31, 2017 2019 Notes 2023 Notes Total 2019 Notes 2023 Notes Total Contractual interest expense $ — $ 3.2 $ 3.2 $ — $ — $ — Amortization of debt discount 4.0 14.4 18.4 5.6 — 5.6 Amortization of debt issuance costs 0.5 0.5 1.0 0.7 — 0.7 Total interest expense recognized $ 4.5 $ 18.1 $ 22.6 $ 6.3 $ — $ 6.3 Effective interest rate of the liability component 4.8 % 5.2 % 4.8 % — % |
Note hedges details | The following table presents details of the Note Hedges (in millions): Initial Number of 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): Initial Number of 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 Contingencies_2
Commitments and Contingencies (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future non-cancelable 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 October 31, 2018 (in millions): Amount Fiscal years ending July 31: Remaining 2019 $ 50.4 2020 68.9 2021 64.1 2022 59.8 2023 58.5 2024 and thereafter 224.1 Committed gross lease payments 525.8 Less: proceeds from sublease rentals 12.8 Net operating lease obligation $ 513.0 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 3 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option and performance stock option (PSO) activity | The following table summarizes the stock option and performance stock option (“PSO”) activity under our stock plans during the reporting period (in millions, except per share amounts): Stock Options Outstanding PSOs Outstanding Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Balance—July 31, 2018 1.1 $ 13.29 3.1 $ 199.8 1.1 $ 198.50 7.0 $ — Granted — $ — 2.2 $ 193.51 Exercised (0.2 ) $ 13.51 — $ — Forfeited — $ — — $ — Balance—October 31, 2018 0.9 $ 13.23 2.9 $ 150.7 3.3 $ 195.24 7.0 $ — Exercisable—October 31, 2018 0.9 $ 13.23 2.9 $ 150.7 — $ — 0.0 $ — |
Schedule of restricted stock award (“RSA”), performance-based stock award (“PSA”), restricted stock unit (“RSU”), and performance-based 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 of Shares Weighted-Average Grant-Date Fair Value Per Share Number of Shares Weighted-Average Grant-Date Fair Value Per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance—July 31, 2018 0.3 $ 160.85 6.7 $ 160.20 1.6 $ 1,335.2 Granted (1)(2) — $ — 1.6 $ 198.48 Vested (0.1 ) $ 167.18 (0.6 ) $ 149.95 Forfeited — $ — (0.2 ) $ 156.39 Balance—October 31, 2018 0.2 $ 157.84 7.5 $ 169.81 1.6 $ 1,367.9 ______________ (1) For PSA s and PSU s, shares granted represents the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. (2) Includes 0.2 million RSUs granted under the assumed RedLock Plan with a weighted-average grant-date fair value of $211.95 per share. |
Schedule of allocation of share-based compensation expense | The following table summarizes share-based compensation included in costs and expenses (in millions): Three Months Ended October 31, 2018 2017 Cost of product revenue $ 1.6 $ 1.9 Cost of subscription and support revenue 17.5 15.9 Research and development 40.5 37.5 Sales and marketing 56.0 51.2 General and administrative 35.5 19.2 Total share-based compensation $ 151.1 $ 125.7 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Oct. 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): Three Months Ended October 31, 2018 2017 (As Adjusted) Net loss $ (38.3 ) $ (63.2 ) Weighted-average shares used to compute net loss per share, basic and diluted 93.8 90.9 Net loss per share, basic and diluted $ (0.41 ) $ (0.70 ) |
Schedule of antidilutive securities excluded from the 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): Three Months Ended October 31, 2018 2017 Convertible senior notes 8.6 5.2 Warrants related to the issuance of convertible senior notes 11.6 5.2 RSUs and PSUs 7.5 7.3 Options to purchase common stock, including PSOs 4.2 1.5 RSAs and PSAs 0.2 0.8 ESPP shares 0.1 0.1 Total 32.2 20.1 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Oct. 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): Three Months Ended October 31, 2018 2017 Interest income $ 15.4 $ 5.1 Foreign currency exchange gains (losses), net — (0.6 ) Other (2.4 ) 0.3 Total other income, net $ 13.0 $ 4.8 |
Description of Business, Basi_4
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Recently Adopted Accounting Pronouncements - Intra-Entity Asset Transfers) (Details) $ in Millions | Aug. 01, 2018USD ($) |
Retained earnings | New accounting pronouncement - intra-entity asset transfers | |
New Accounting Pronouncements or Change in Accounting Principle | |
Cumulative-effect adjustment from adoption - increase in accumulated deficit | $ 28.4 |
Description of Business, Basi_5
Description of Business, Basis of Presentation, Principles of Consolidation, and Summary of Significant Accounting Policies (Recently Adopted Accounting Pronouncements - Revenue Recognition) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Oct. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2018 | Aug. 01, 2017 | |
Income Statement | ||||
Revenue | $ 656 | $ 501.8 | ||
Total cost of revenue | 183.5 | 141.3 | ||
Total operating expenses | 504.6 | 414 | ||
Operating loss | (32.1) | (53.5) | ||
Net loss | $ (38.3) | $ (63.2) | ||
Net loss per share, basic and diluted | $ (0.41) | $ (0.70) | ||
Statement of Financial Position | ||||
Accounts receivable, net | $ 382.3 | $ 467 | ||
Prepaid expenses and other current assets | 229.1 | 268.1 | ||
Other assets | 321.7 | 326.2 | ||
Accrued and other liabilities | 163.6 | 124.6 | ||
Deferred revenue | 1,269.8 | 1,213.6 | ||
Long-term deferred revenue | 1,114.6 | 1,065.7 | ||
Accumulated deficit | (857.3) | (790.7) | ||
New accounting pronouncement - accounting for revenue contracts with customers | Cumulative effect adjustment from adoption - decrease in accumulated deficit | ||||
Statement of Financial Position | ||||
Accumulated deficit | $ 168.2 | |||
Product | ||||
Income Statement | ||||
Revenue | 240.5 | $ 184.8 | ||
Subscription and support | ||||
Income Statement | ||||
Revenue | $ 415.5 | 317 | ||
As previously reported | ||||
Income Statement | ||||
Revenue | 505.5 | |||
Total cost of revenue | 141.4 | |||
Total operating expenses | 418.4 | |||
Operating loss | (54.3) | |||
Net loss | $ (64) | |||
Net loss per share, basic and diluted | $ (0.70) | |||
Statement of Financial Position | ||||
Accounts receivable, net | 467.3 | |||
Prepaid expenses and other current assets | 261.3 | |||
Other assets | 206.8 | |||
Accrued and other liabilities | 107 | |||
Deferred revenue | 1,268.9 | |||
Long-term deferred revenue | 1,096 | |||
Accumulated deficit | (984.6) | |||
As previously reported | Product | ||||
Income Statement | ||||
Revenue | $ 186.5 | |||
As previously reported | Subscription and support | ||||
Income Statement | ||||
Revenue | 319 | |||
Impact of adoption | New accounting pronouncement - accounting for revenue contracts with customers | ||||
Income Statement | ||||
Revenue | (3.7) | |||
Total cost of revenue | (0.1) | |||
Total operating expenses | (4.4) | |||
Operating loss | 0.8 | |||
Net loss | $ 0.8 | |||
Net loss per share, basic and diluted | $ 0 | |||
Statement of Financial Position | ||||
Accounts receivable, net | (0.3) | |||
Prepaid expenses and other current assets | 6.8 | |||
Other assets | 119.4 | |||
Accrued and other liabilities | 17.6 | |||
Deferred revenue | (55.3) | |||
Long-term deferred revenue | (30.3) | |||
Accumulated deficit | $ 193.9 | |||
Impact of adoption | Product | New accounting pronouncement - accounting for revenue contracts with customers | ||||
Income Statement | ||||
Revenue | $ (1.7) | |||
Impact of adoption | Subscription and support | New accounting pronouncement - accounting for revenue contracts with customers | ||||
Income Statement | ||||
Revenue | $ (2) |
Revenue (Deferred Revenue) (Det
Revenue (Deferred Revenue) (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from opening deferred revenue balance | $ 370 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations) (Details) $ in Billions | 3 Months Ended |
Oct. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 2.5 |
Remaining Performance Obligations, Expected Timing of Satisfaction, Start Date: 2018-11-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 1.3 |
Remaining Performance Obligations, Expected Timing of Satisfaction | |
Remaining performance obligations, expected timing of satisfaction, period | 12 months |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue - Geographic Theater) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Disaggregation of Revenue | ||
Revenue | $ 656 | $ 501.8 |
United States | ||
Disaggregation of Revenue | ||
Revenue | 415.9 | 326 |
Other Americas | ||
Disaggregation of Revenue | ||
Revenue | 34.3 | 23.3 |
Total Americas | ||
Disaggregation of Revenue | ||
Revenue | 450.2 | 349.3 |
EMEA | ||
Disaggregation of Revenue | ||
Revenue | 127.7 | 94.7 |
Asia Pacific | ||
Disaggregation of Revenue | ||
Revenue | $ 78.1 | $ 57.8 |
Revenue (Disaggregation of Re_2
Revenue (Disaggregation of Revenue - Type of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Revenue | ||
Revenue | $ 656 | $ 501.8 |
Product | ||
Revenue | ||
Revenue | 240.5 | 184.8 |
Subscription | ||
Revenue | ||
Revenue | 231.3 | 169 |
Support | ||
Revenue | ||
Revenue | 184.2 | 148 |
Subscription and support | ||
Revenue | ||
Revenue | $ 415.5 | $ 317 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 1,122.2 | $ 1,961.6 |
Short-term investments | 1,419.4 | 896.5 |
Long-term investments | 565.5 | 547.5 |
Total assets measured at fair value | 3,107.1 | 3,405.6 |
Accrued and other liabilities | 11.4 | 6.9 |
Total liabilities measured at fair value | 11.4 | 6.9 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 904.4 | 1,512.3 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total assets measured at fair value | 904.4 | 1,512.3 |
Accrued and other liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 217.8 | 449.3 |
Short-term investments | 1,419.4 | 896.5 |
Long-term investments | 565.5 | 547.5 |
Total assets measured at fair value | 2,202.7 | 1,893.3 |
Accrued and other liabilities | 11.4 | 6.9 |
Total liabilities measured at fair value | 11.4 | 6.9 |
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 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 904.4 | 1,512.3 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 904.4 | 1,512.3 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 5 | 52 |
Short-term investments | 97.3 | 22.3 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 5 | 52 |
Short-term investments | 97.3 | 22.3 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 2.5 | 0 |
Short-term investments | 188.9 | 139.8 |
Long-term investments | 191.2 | 153.6 |
Corporate debt 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 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 2.5 | 0 |
Short-term investments | 188.9 | 139.8 |
Long-term investments | 191.2 | 153.6 |
Corporate debt 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 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 210.3 | 397.3 |
Short-term investments | 1,107.8 | 709 |
Long-term investments | 374.3 | 393.9 |
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 |
U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 210.3 | 397.3 |
Short-term investments | 1,107.8 | 709 |
Long-term investments | 374.3 | 393.9 |
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 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 5.4 | 5.4 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 5.4 | 5.4 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Non-U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 20 | 20 |
Non-U.S. government securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Non-U.S. government securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 20 | 20 |
Non-U.S. government securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Short-term investments | 0 | 0 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 11.4 | 6.9 |
Foreign currency forward contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 0 | 0 |
Foreign currency forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | 11.4 | 6.9 |
Foreign currency forward contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued and other liabilities | $ 0 | $ 0 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Available-for-Sale Securities) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 2,212 | |
Fair value | 2,202.7 | |
Cash equivalents | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 217.8 | $ 449.3 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | 217.8 | 449.3 |
Cash equivalents | Commercial paper | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 5 | 52 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | 5 | 52 |
Cash equivalents | Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 2.5 | |
Unrealized gains | 0 | |
Unrealized losses | 0 | |
Fair value | 2.5 | |
Cash equivalents | U.S. government and agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 210.3 | 397.3 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | 210.3 | 397.3 |
Investments | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,994.2 | 1,454.2 |
Unrealized gains | 0 | 0 |
Unrealized losses | (9.3) | (10.2) |
Fair value | 1,984.9 | 1,444 |
Investments | Commercial paper | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 97.3 | 22.3 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | 97.3 | 22.3 |
Investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 382.5 | 295.9 |
Unrealized gains | 0 | 0 |
Unrealized losses | (2.4) | (2.5) |
Fair value | 380.1 | 293.4 |
Investments | U.S. government and agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,489 | 1,110.6 |
Unrealized gains | 0 | 0 |
Unrealized losses | (6.9) | (7.7) |
Fair value | 1,482.1 | 1,102.9 |
Investments | Certificates of deposit | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 5.4 | 5.4 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | 5.4 | 5.4 |
Investments | Non-U.S. government securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 20 | 20 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair value | $ 20 | $ 20 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Available-for-Sale Securities, Contractual Maturities) (Details) $ in Millions | Oct. 31, 2018USD ($) |
Amortized Cost | |
Due within one year | $ 1,640.9 |
Due between one and three years | 571.1 |
Amortized cost | 2,212 |
Fair Value | |
Due within one year | 1,637.2 |
Due between one and three years | 565.5 |
Total | $ 2,202.7 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Cash and cash equivalents | Marketable equity securities | Money market funds | ||
Marketable Equity Securities | ||
Marketable equity securities | $ 904.4 | $ 1,500 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Maximum contract term of cash flow hedge | 12 months | |
Notional amount of derivatives | $ 238 | $ 288.5 |
Acquisitions (Consideration Tra
Acquisitions (Consideration Transferred) (Details) - RedLock, Inc. $ in Millions | Oct. 12, 2018USD ($) |
Business Acquisition | |
Cash consideration transferred | $ 155 |
Fair value of equity awards assumed | 3.2 |
Total consideration transferred | $ 158.2 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Oct. 12, 2018 | Jul. 31, 2018 |
Business Acquisition | |||
Goodwill | $ 636.4 | $ 522.8 | |
RedLock, Inc. | |||
Business Acquisition | |||
Goodwill | $ 113.6 | ||
Identified intangible assets | 54.8 | ||
Net liabilities assumed | (10.2) | ||
Total | $ 158.2 |
Acquisitions (Intangible assets
Acquisitions (Intangible assets acquired as part of business combination) (Details) - RedLock, Inc. $ in Millions | Oct. 12, 2018USD ($) |
Finite-Lived Intangible Assets | |
Fair value of identified intangible assets acquired | $ 54.8 |
Developed technology | |
Finite-Lived Intangible Assets | |
Fair value of identified intangible assets acquired | $ 48.6 |
Estimated useful life (in years) | 4 years |
Customer relationships | |
Finite-Lived Intangible Assets | |
Fair value of identified intangible assets acquired | $ 5.3 |
Estimated useful life (in years) | 8 years |
Trade name and trademarks | |
Finite-Lived Intangible Assets | |
Fair value of identified intangible assets acquired | $ 0.9 |
Estimated useful life (in years) | 6 months |
Acquisitions (Supplementary Inf
Acquisitions (Supplementary Information) (Details) - RedLock, Inc. $ in Millions | Oct. 12, 2018USD ($) |
Business Acquisition | |
Percentage of voting equity interest acquired | 100.00% |
Total fair value of equity awards assumed | $ 57.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Goodwill) (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2018USD ($) | |
Goodwill Rollforward | |
Balance as of July 31, 2018 | $ 522.8 |
Goodwill acquired | 113.6 |
Balance as of October 31, 2018 | $ 636.4 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Purchased Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total purchased intangible assets, gross carrying amount | $ 242.1 | $ 187.3 |
Total purchased intangible assets, net carrying amount | 186.2 | 140.8 |
Finite-Lived Intangible Assets | ||
Gross carrying amount | 241.3 | 186.5 |
Accumulated amortization | (55.9) | (46.5) |
Net carrying amount | 185.4 | 140 |
In-process research and development | ||
Indefinite-lived Intangible Assets | ||
In-process research and development | 0.8 | 0.8 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 203.3 | 154.7 |
Accumulated amortization | (45.3) | (38.2) |
Net carrying amount | 158 | 116.5 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 17.5 | 12.2 |
Accumulated amortization | (1.7) | (1.2) |
Net carrying amount | 15.8 | 11 |
Acquired intellectual property | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 8.9 | 8.9 |
Accumulated amortization | (4.7) | (4.5) |
Net carrying amount | 4.2 | 4.4 |
Trade name and trademarks | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 9.4 | 8.5 |
Accumulated amortization | (2) | (0.4) |
Net carrying amount | 7.4 | 8.1 |
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 Asset_5
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 9.4 | $ 2.7 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Future Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2,019 | $ 37.1 | |
2,020 | 39.4 | |
2,021 | 37.4 | |
2,022 | 32.9 | |
2,023 | 20.4 | |
2024 and thereafter | 18.2 | |
Net carrying amount | $ 185.4 | $ 140 |
Deferred Contract Costs Deferre
Deferred Contract Costs Deferred Contract Costs (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2018 | |
Deferred Contract Costs | |||
Deferred contract costs, amortization term | 5 years | ||
Deferred contract costs | $ 335.2 | $ 338 | |
Deferred contract costs, amortization | 41.1 | $ 28.1 | |
Short-term | |||
Deferred Contract Costs | |||
Deferred contract costs | 112.1 | 113.2 | |
Long-term | |||
Deferred Contract Costs | |||
Deferred contract costs | $ 223.1 | $ 224.8 |
Debt (Additional Details) (Deta
Debt (Additional Details) (Details) $ / shares in Units, shares in Millions, $ in Millions | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($)sharesday$ / shares | Jun. 30, 2014USD ($)sharesday$ / shares | Oct. 31, 2018USD ($)shares | Oct. 31, 2017USD ($) | Nov. 30, 2018USD ($) |
Debt Instrument, Redemption | ||||||
Loss on conversions of convertible senior notes | $ 2.2 | $ 0 | ||||
Aggregate principal amount outstanding | $ 1,940.7 | $ 2,268 | 1,940.7 | |||
If-converted value in excess of principal | 220.2 | |||||
Level 2 | ||||||
Debt Instrument, Redemption | ||||||
Fair value of convertible senior notes | 2,100 | 2,700 | 2,100 | |||
2019 Notes | ||||||
Debt Instrument, Redemption | ||||||
Aggregate principal amount | $ 575 | |||||
Contractual interest rate (in percentage) | 0.00% | |||||
Initial conversion rate (in shares per $1,000 principal amount) | 0.0090680 | |||||
Initial conversion price (in usd per share) | $ / shares | $ 110.28 | |||||
Number of common stock convertible at initial conversion rate (in shares) | shares | 5.2 | |||||
Threshold trading days (in days) | day | 20 | |||||
Threshold consecutive trading days (in days) | day | 30 | |||||
Threshold percentage of stock price trigger (in percentage) | 130.00% | |||||
Threshold business days, per $1,000 principal (in days) | day | 5 | |||||
Threshold consecutive trading days, per $1,000 principal (in days) | 5 days | |||||
Threshold percentage of notes 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% | |||||
Repayments of convertible senior notes, aggregate principal amount | $ 327.3 | |||||
Convertible senior notes conversions, shares issued (in shares) | shares | 1.4 | |||||
Repayments of convertible senior notes allocated to liability component | $ 317.1 | |||||
Loss on conversions of convertible senior notes | 2.2 | |||||
Net reduction to additional paid-in capital, cash repayments allocated to equity component | 10.2 | |||||
Aggregate principal amount outstanding | 247.7 | 575 | 247.7 | |||
2023 Notes | ||||||
Debt Instrument, Redemption | ||||||
Aggregate principal amount | $ 1,700 | |||||
Contractual interest rate (in percentage) | 0.75% | |||||
Initial conversion rate (in shares per $1,000 principal amount) | 0.0037545 | |||||
Initial conversion price (in usd per share) | $ / shares | $ 266.35 | |||||
Number of common stock convertible at initial conversion rate (in shares) | shares | 6.4 | |||||
Threshold trading days (in days) | day | 20 | |||||
Threshold consecutive trading days (in days) | day | 30 | |||||
Threshold percentage of stock price trigger (in percentage) | 130.00% | |||||
Threshold business days, per $1,000 principal (in days) | day | 5 | |||||
Threshold consecutive trading days, per $1,000 principal (in days) | 5 days | |||||
Threshold percentage of notes 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% | |||||
Aggregate principal amount outstanding | $ 1,693 | $ 1,693 | $ 1,693 | |||
Subsequent event | 2019 Notes | ||||||
Debt Instrument, Redemption | ||||||
Principal amount converted or submitted by holders for conversion | $ 88.3 |
Debt (Components of Convertible
Debt (Components of Convertible Senior Notes) (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Jul. 31, 2018 |
Debt Instrument, Redemption | ||
Principal | $ 1,940.7 | $ 2,268 |
Less: debt discount and debt issuance costs, net of amortization | 316.3 | 347.9 |
Net carrying amount | 1,624.4 | 1,920.1 |
Equity component (including temporary equity) | 362.3 | 424.8 |
2019 Notes | ||
Debt Instrument, Redemption | ||
Principal | 247.7 | 575 |
Less: debt discount and debt issuance costs, net of amortization | 7.8 | 24.6 |
Net carrying amount | 239.9 | 550.4 |
Equity component (including temporary equity) | 47.3 | 109.8 |
2023 Notes | ||
Debt Instrument, Redemption | ||
Principal | 1,693 | 1,693 |
Less: debt discount and debt issuance costs, net of amortization | 308.5 | 323.3 |
Net carrying amount | 1,384.5 | 1,369.7 |
Equity component (including temporary equity) | $ 315 | $ 315 |
Debt (Schedule of Interest Expe
Debt (Schedule of Interest Expense Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Debt Instrument, Redemption | ||
Contractual interest expense | $ 3.2 | $ 0 |
Amortization of debt discount | 18.4 | 5.6 |
Amortization of debt issuance costs | 1 | 0.7 |
Total interest expense recognized | 22.6 | 6.3 |
2019 Notes | ||
Debt Instrument, Redemption | ||
Contractual interest expense | 0 | 0 |
Amortization of debt discount | 4 | 5.6 |
Amortization of debt issuance costs | 0.5 | 0.7 |
Total interest expense recognized | $ 4.5 | $ 6.3 |
Effective interest rate of the liability component (in percentage) | 4.80% | 4.80% |
2023 Notes | ||
Debt Instrument, Redemption | ||
Contractual interest expense | $ 3.2 | $ 0 |
Amortization of debt discount | 14.4 | 0 |
Amortization of debt issuance costs | 0.5 | 0 |
Total interest expense recognized | $ 18.1 | $ 0 |
Effective interest rate of the liability component (in percentage) | 5.20% | 0.00% |
Debt (Note Hedges) (Details)
Debt (Note Hedges) (Details) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2018 | Jun. 30, 2014 | Oct. 31, 2018 |
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 | ||
Shares received from exercise of note hedges (in shares) | 1.4 | ||
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 |
Debt (Warrants) (Details)
Debt (Warrants) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2018 | Jun. 30, 2014 |
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 | |
Strike price of warrants (in usd per share) | $ 417.80 | |
Proceeds from issuance of warrants | $ 145.4 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) - Revolving credit facility $ in Millions | Sep. 04, 2018USD ($)day | Oct. 31, 2018USD ($) |
Line of Credit Facility | ||
Current borrowing capacity | $ 400 | |
Option for additional borrowing capacity | $ 350 | |
Revolving credit facility amount outstanding | $ 0 | |
Minimum maturity date term criteria | ||
Line of Credit Facility | ||
Number of days prior to maturity of 2023 Notes (in days) | day | 91 | |
Minimum maturity date term, cash and cash equivalents balance criteria | ||
Line of Credit Facility | ||
Amount added to outstanding principal amount of 2023 Notes in minimum maturity date criteria | $ 400 | |
Minimum | ||
Line of Credit Facility | ||
Commitment fee rate on undrawn amounts (in percentage) | 0.125% | |
Maximum | ||
Line of Credit Facility | ||
Commitment fee rate on undrawn amounts (in percentage) | 0.25% | |
Base rate | Minimum | ||
Line of Credit Facility | ||
Spread on variable rate | 0.00% | |
Base rate | Maximum | ||
Line of Credit Facility | ||
Spread on variable rate | 0.75% | |
LIBOR | Minimum | ||
Line of Credit Facility | ||
Spread on variable rate | 1.00% | |
LIBOR | Maximum | ||
Line of Credit Facility | ||
Spread on variable rate | 1.75% |
Commitments and Contingencies_3
Commitments and Contingencies (Lease Arrangements) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2012USD ($)ft²lease_agreementlease_renewal_option | Oct. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($)lease_agreement | Oct. 31, 2015USD ($)ft²lease_agreement | May 31, 2015USD ($)ft²lease_agreement | |
Operating Leased Assets | |||||||
Total payments under the lease agreements | $ 525.8 | ||||||
Cease-use loss related to facility exit | 0 | $ 15.4 | |||||
Proceeds from sublease | 12.8 | ||||||
Q415 and Q116 New lease arrangements, new corporate headquarters | |||||||
Operating Leased Assets | |||||||
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 | |||||||
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 | |||||||
Number of lease agreements | lease_agreement | 1 | ||||||
Proceeds from sublease | $ 16.3 | ||||||
Q113 New lease arrangements, previous corporate headquarters | |||||||
Operating Leased Assets | |||||||
Number of lease agreements | lease_agreement | 2 | ||||||
Area of office space (in square feet) | ft² | 300,000 | ||||||
Total payments under the lease agreements | $ 94.3 | ||||||
Number of lease renewal options | lease_renewal_option | 2 | ||||||
Renewal term (in years) | 5 years | ||||||
Liability release through rental payments | 2.5 | ||||||
Cease-use liability | $ 26.6 | ||||||
General and administrative | Q113 New lease arrangements, previous corporate headquarters | |||||||
Operating Leased Assets | |||||||
Cease-use loss related to facility exit | $ 39.2 |
Commitments and Contingencies_4
Commitments and Contingencies (Lease Commitments) (Details) $ in Millions | Oct. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remaining 2,019 | $ 50.4 |
2,020 | 68.9 |
2,021 | 64.1 |
2,022 | 59.8 |
2,023 | 58.5 |
2024 and thereafter | 224.1 |
Committed gross lease payments | 525.8 |
Less: proceeds from sublease rentals | 12.8 |
Net operating lease obligation | $ 513 |
Commitments and Contingencies_5
Commitments and Contingencies (Manufacturing Purchase Commitments) (Details) $ in Millions | Oct. 31, 2018USD ($) |
Manufacturing products and components | |
Unrecorded Unconditional Purchase Obligation | |
Manufacturing purchase commitments | $ 155.6 |
Commitments and Contingencies_6
Commitments and Contingencies (Other Purchase Commitments) (Details) - Cloud services - USD ($) $ in Millions | Mar. 31, 2018 | Oct. 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 | $ 8 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Feb. 28, 2017 | Aug. 31, 2016 |
Equity [Abstract] | |||
Share repurchase, authorized amount | $ 500 | $ 500 | |
Stock repurchase, total authorized amount | $ 1,000 | ||
Share repurchase, remaining authorized repurchase amount | $ 330 |
Equity Award Plans (Stock Optio
Equity Award Plans (Stock Option Activities) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 31, 2018 | Oct. 31, 2018 | Jul. 31, 2018 |
Stock options | |||
Stock Options and PSOs, Outstanding Roll Forward | |||
Balance, beginning (in shares) | 1.1 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (0.2) | ||
Forfeited (in shares) | 0 | ||
Balance, ending (in shares) | 0.9 | 0.9 | 1.1 |
Stock Options and PSOs, Outstanding, Weighted-Average Exercise Price Roll Forward | |||
Balance, beginning (in usd per share) | $ 13.29 | ||
Granted (in usd per share) | 0 | ||
Exercised (in usd per share) | 13.51 | ||
Forfeited (in usd per share) | 0 | ||
Balance, ending (in usd per share) | $ 13.23 | $ 13.23 | $ 13.29 |
Options, Additional Disclosures | |||
Weighted-average remaining contractual life (in years) | 2 years 11 months | 3 years 1 month | |
Aggregate intrinsic value | $ 150.7 | $ 150.7 | $ 199.8 |
Options exercisable (in shares) | 0.9 | 0.9 | |
Options exercisable, weighted-average exercise price (in usd per share) | $ 13.23 | $ 13.23 | |
Options exercisable, weighted-average remaining contractual term (in years) | 2 years 11 months | ||
Options exercisable, aggregate intrinsic value | $ 150.7 | $ 150.7 | |
PSOs | |||
Stock Options and PSOs, Outstanding Roll Forward | |||
Balance, beginning (in shares) | 1.1 | ||
Granted (in shares) | 2.2 | 2.2 | |
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Balance, ending (in shares) | 3.3 | 3.3 | 1.1 |
Stock Options and PSOs, Outstanding, Weighted-Average Exercise Price Roll Forward | |||
Balance, beginning (in usd per share) | $ 198.50 | ||
Granted (in usd per share) | 193.51 | ||
Exercised (in usd per share) | 0 | ||
Forfeited (in usd per share) | 0 | ||
Balance, ending (in usd per share) | $ 195.24 | $ 195.24 | $ 198.50 |
Options, Additional Disclosures | |||
Weighted-average remaining contractual life (in years) | 7 years | 7 years | |
Aggregate intrinsic value | $ 0 | $ 0 | $ 0 |
Options exercisable (in shares) | 0 | 0 | |
Options exercisable, weighted-average exercise price (in usd per share) | $ 0 | $ 0 | |
Options exercisable, weighted-average remaining contractual term (in years) | 0 years | ||
Options exercisable, aggregate intrinsic value | $ 0 | $ 0 | |
Fair value of awards granted | $ 130 | ||
Weighted-average grant-date fair value of grants (in usd per share) | $ 59.64 | ||
Expected volatility rate (in percentage) | 35.60% | ||
Expected dividend rate (in percentage) | 0.00% | ||
PSOs | Minimum | |||
Options, Additional Disclosures | |||
Risk free interest rate (in percentage) | 3.10% | ||
PSOs | Maximum | |||
Options, Additional Disclosures | |||
Risk free interest rate (in percentage) | 3.20% | ||
PSOs | Performance Period 1 | |||
Options, Additional Disclosures | |||
Performance target stock price (in usd per share) | $ 297.75 | ||
Performance period (in years) | 4 years | ||
PSOs | Performance Period 2 | |||
Options, Additional Disclosures | |||
Performance target stock price (in usd per share) | $ 397 | ||
Performance period (in years) | 5 years | ||
PSOs | Performance Period 3 | |||
Options, Additional Disclosures | |||
Performance target stock price (in usd per share) | $ 496.25 | ||
Performance period (in years) | 6 years | ||
PSOs | Performance Period 4 | |||
Options, Additional Disclosures | |||
Performance target stock price (in usd per share) | $ 595.50 | ||
Performance period (in years) | 7 years |
Equity Award Plans (Other Activ
Equity Award Plans (Other Activities) (Details) $ in Millions | Nov. 30, 2018USD ($) |
PSOs and RSUs | Subsequent event | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Fair value of awards granted | $ 34.5 |
Equity Award Plans (Restricted
Equity Award Plans (Restricted Stock Award (RSA), Performance-Based Stock Award (PSA), Restricted Stock Unit (RSU), and Performance-Based Stock Unit (PSU) Activities) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Oct. 31, 2018 | Jul. 31, 2018 | |
RSAs and PSAs | ||
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | ||
Balance, beginning (in shares) | 0.3 | |
Granted (in shares) | 0 | |
Vested (in shares) | (0.1) | |
Forfeited (in shares) | 0 | |
Balance, ending (in shares) | 0.2 | 0.3 |
RSAs, PSAs, RSUs, and PSUs, Outstanding, Weighted-Average Grant-Date Fair Value Per Share | ||
Balance, beginning (in usd per share) | $ 160.85 | |
Granted (in usd per share) | 0 | |
Vested (in usd per share) | 167.18 | |
Forfeited (in usd per share) | 0 | |
Balance, ending (in usd per share) | $ 157.84 | $ 160.85 |
RSUs and PSUs | ||
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | ||
Balance, beginning (in shares) | 6.7 | |
Granted (in shares) | 1.6 | |
Vested (in shares) | (0.6) | |
Forfeited (in shares) | (0.2) | |
Balance, ending (in shares) | 7.5 | 6.7 |
RSAs, PSAs, RSUs, and PSUs, Outstanding, Weighted-Average Grant-Date Fair Value Per Share | ||
Balance, beginning (in usd per share) | $ 160.20 | |
Granted (in usd per share) | 198.48 | |
Vested (in usd per share) | 149.95 | |
Forfeited (in usd per share) | 156.39 | |
Balance, ending (in usd per share) | $ 169.81 | $ 160.20 |
RSAs, PSAs, RSUs, and PSUs, Additional Disclosures | ||
Weighted-average remaining contractual term (in years) | 1 year 7 months | 1 year 7 months |
Aggregate intrinsic value | $ 1,367.9 | $ 1,335.2 |
RSUs | RedLock, Inc. | RedLock Plan | ||
RSAs, PSAs, RSUs, and PSUs, Outstanding Roll Forward | ||
Granted (in shares) | 0.2 | |
RSAs, PSAs, RSUs, and PSUs, Outstanding, Weighted-Average Grant-Date Fair Value Per Share | ||
Granted (in usd per share) | $ 211.95 | |
PSAs and PSUs | ||
RSAs, PSAs, RSUs, and PSUs, Additional Disclosures | ||
Award vesting period (in years) | 4 years |
Equity Award Plans (Allocation
Equity Award Plans (Allocation of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | $ 151.1 | $ 125.7 |
Total compensation cost not yet recognized, unvested awards | $ 1,400 | |
Compensation cost not yet recognized, period of recognition (in years) | 2 years 11 months | |
Cost of product revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | $ 1.6 | 1.9 |
Cost of subscription and support revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | 17.5 | 15.9 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | 40.5 | 37.5 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | 56 | 51.2 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation expense | 35.5 | $ 19.2 |
RedLock, Inc. | General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||
Share-based compensation recognized for accelerated vesting of acquiree equity awards | $ 14.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Business Acquisition | ||
Effective income tax rate (in percentage) | 8.40% | (14.90%) |
RedLock, Inc. | ||
Business Acquisition | ||
Valuation allowance, increase (decrease), amount | $ (9.4) |
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 | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (38.3) | $ (63.2) |
Weighted-average shares used to compute net loss per share, basic and diluted | 93.8 | 90.9 |
Net loss per share, basic and diluted (in usd per share) | $ (0.41) | $ (0.70) |
Net Loss Per Share (Schedule of
Net Loss Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details) - shares shares in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 32.2 | 20.1 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 8.6 | 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 |
RSUs and PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 7.5 | 7.3 |
Options to purchase common stock, including PSOs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 4.2 | 1.5 |
RSAs and PSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 0.2 | 0.8 |
ESPP shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities (in shares) | 0.1 | 0.1 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 15.4 | $ 5.1 |
Foreign currency exchange gains (losses), net | 0 | (0.6) |
Other | (2.4) | 0.3 |
Total other income, net | $ 13 | $ 4.8 |