Palo Alto Networks (PANW) 10-Q 26 Feb 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jan. 31, 2016	Feb. 17, 2016
Document Information [Abstract]
Entity Registrant Name	Palo Alto Networks Inc
Entity Central Index Key	1,327,567
Document Type	10-Q
Document Period End Date	Jan. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,370,472

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 413.2	$ 375.8
Short-term investments	551.4	413.2
Accounts receivable, net of allowance for doubtful accounts of $0.8 and $0.7 at January 31, 2016 and July 31, 2015, respectively	254.4	212.4
Prepaid expenses and other current assets	88.1	72.6
Total current assets	1,307.1	1,074
Property and equipment, net	92.6	62.9
Long-term investments	631.1	538.8
Goodwill	163.5	163.5
Intangible assets, net	48.7	52.7
Other assets	73.6	73.3
Total assets	2,316.6	1,965.2
Current liabilities:
Accounts payable	32.5	13.2
Accrued compensation	71.2	79.8
Accrued and other liabilities	44	28.2
Deferred revenue	541.2	423.9
Convertible senior notes, net	497.5	487.1
Total current liabilities	1,186.4	1,032.2
Long-term deferred revenue	387.6	289.8
Other long-term liabilities	$ 72.3	$ 67.4
Commitments and contingencies (Note 5)
Temporary equity	$ 77.5	$ 87.9
Stockholders' equity:
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at January 31, 2016 and July 31, 2015	0	0
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 88.4 and 84.8 shares issued and outstanding at January 31, 2016 and July 31, 2015, respectively	1,195.4	988.7
Accumulated other comprehensive loss	(0.7)	(0.1)
Accumulated deficit	(601.9)	(500.7)
Total stockholders’ equity	592.8	487.9
Total liabilities, temporary equity, and stockholders’ equity	$ 2,316.6	$ 1,965.2

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Current assets:
Allowance for doubtful accounts (in usd)	$ 0.8	$ 0.7
Stockholders' equity:
Preferred stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100	100
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares issued (in shares)	88.4	84.8
Common stock, shares outstanding (in shares)	88.4	84.8

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Revenue:
Product	$ 169.9	$ 115.6	$ 317.6	$ 217.1
Services	164.8	102.1	314.3	192.9
Total revenue	334.7	217.7	631.9	410
Cost of revenue:
Product	44.9	30.7	83.7	59.8
Services	49.3	28.7	89.7	53
Total cost of revenue	94.2	59.4	173.4	112.8
Total gross profit	240.5	158.3	458.5	297.2
Operating expenses:
Research and development	74	47	133.7	84.3
Sales and marketing	187.6	122.8	345.9	229.2
General and administrative	34.2	27	65	46
Total operating expenses	295.8	196.8	544.6	359.5
Operating loss	(55.3)	(38.5)	(86.1)	(62.3)
Interest expense	(5.8)	(5.5)	(11.6)	(11)
Other income, net	2.5	0.3	4.7	0.7
Loss before income taxes	(58.6)	(43.7)	(93)	(72.6)
Provision for (benefit from) income taxes	3.9	(0.7)	8.2	0.5
Net loss	$ (62.5)	$ (43)	$ (101.2)	$ (73.1)
Net loss per share, basic and diluted (in usd per share)	$ (0.72)	$ (0.53)	$ (1.18)	$ (0.91)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	86.6	80.8	85.8	80.1

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Net loss	$ (62.5)	$ (43)	$ (101.2)	$ (73.1)
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on investments	(0.3)	0.2	(0.6)	0.3
Comprehensive loss	$ (62.8)	$ (42.8)	$ (101.8)	$ (72.8)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Cash flows from operating activities
Net loss	$ (101.2)	$ (73.1)
Adjustments to reconcile net loss to net cash provided by operating activities:
Share-based compensation for equity based awards	174.8	95.3
Depreciation and amortization	19.5	12.9
Amortization of investment premiums, net of accretion of purchase discounts	1.6	1.5
Amortization of debt discount and debt issuance costs	11.5	11
Excess tax benefit from share-based compensation arrangements	(0.5)	(1.3)
Changes in operating assets and liabilities:
Accounts receivable, net	(42)	0.3
Prepaid expenses and other assets	(8.3)	(32.4)
Accounts payable	13.6	(1.9)
Accrued compensation	(8.6)	4.4
Accrued and other liabilities	25	21.8
Deferred revenue	215.1	113.3
Net cash provided by operating activities	300.5	151.8
Cash flows from investing activities
Purchases of investments	(610.2)	(587.2)
Proceeds from sales of investments	134.4	2
Proceeds from maturities of investments	228	109.9
Purchases of property, equipment, and other assets	(36.9)	(12.1)
Net cash used in investing activities	(284.7)	(487.4)
Cash flows from financing activities
Proceeds from sales of shares through employee equity incentive plans	21.1	23.5
Excess tax benefit from share-based compensation arrangements	0.5	1.3
Net cash provided by financing activities	21.6	24.8
Net increase (decrease) in cash and cash equivalents	37.4	(310.8)
Cash and cash equivalents—beginning of period	375.8	653.8
Cash and cash equivalents—end of period	$ 413.2	$ 343

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jan. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business 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 next-generation security platform that empowers enterprises, service providers, and government entities to secure their organizations by safely enabling the increasingly complex and rapidly growing number of applications running on their networks and by preventing breaches in real-time that stem from targeted cyber attacks. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 , filed with the Securities and Exchange Commission on September 17, 2015. 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 reclassified to conform to current period presentation. Our condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . Summary of Significant Accounting Policies There have been no material changes to our significant accounting policies as of and for the six months ended January 31, 2016 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on fees paid in a cloud computing arrangement. The standard requires customers in a cloud computing arrangement to evaluate whether the arrangement includes a software license. If the arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard is effective for us for our first quarter of fiscal 2017 and will be applied on either a prospective or retrospective basis. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance to simplify the presentation of debt issuance costs. The amended standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts, instead of being presented as an asset. The amended standard is effective for us for our first quarter of fiscal 2017 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our condensed consolidated financial statements. In May 2014, the FASB issued new authoritative guidance on revenue from contracts with customers. The new standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires significantly expanded disclosures about revenue recognition. The FASB subsequently delayed the effective date of the standard by one year and as a result, the standard is now effective for us for our first quarter of fiscal 2019 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. Early adoption as of the original effective date is permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jan. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements We categorize assets and liabilities recorded 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 using the above input categories as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 July 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments: Certificates of deposit $ — $ — $ — $ — $ — $ 1.0 $ — $ 1.0 Corporate debt securities — 127.3 — 127.3 — 97.8 — 97.8 U.S. government and agency securities — 424.1 — 424.1 — 314.4 — 314.4 Total short-term investments — 551.4 — 551.4 — 413.2 — 413.2 Long-term investments: Certificates of deposit — 5.4 — 5.4 — — — — Corporate debt securities — 167.2 — 167.2 — 92.9 — 92.9 U.S. government and agency securities — 458.5 — 458.5 — 445.9 — 445.9 Total long-term investments — 631.1 — 631.1 — 538.8 — 538.8 Total assets measured at fair value $ — $ 1,182.5 $ — $ 1,182.5 $ — $ 952.0 $ — $ 952.0 Refer to Note 4 . Convertible Senior Notes for the carrying amount and estimated fair value of our convertible senior notes as of January 31, 2016 .

Investments

Investments	6 Months Ended
	Jan. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investments	Investments The following tables summarize the unrealized gains and losses and fair value of our available-for-sale investments as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Certificates of deposit $ 5.4 $ — $ — $ 5.4 Corporate debt securities 294.9 0.1 (0.5 ) 294.5 U.S. government and agency securities 882.9 0.2 (0.5 ) 882.6 Total $ 1,183.2 $ 0.3 $ (1.0 ) $ 1,182.5 July 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Certificates of deposit $ 1.0 $ — $ — $ 1.0 Corporate debt securities 190.9 — (0.2 ) 190.7 U.S. government and agency securities 760.2 0.3 (0.2 ) 760.3 Total $ 952.1 $ 0.3 $ (0.4 ) $ 952.0 Unrealized losses related to these investments 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 investments before recovery of their amortized cost basis, which may be at maturity. As a result, there were no other-than-temporary impairments for these investments at January 31, 2016 and July 31, 2015 . The following table summarizes the amortized cost and fair value of our available-for-sale investments as of January 31, 2016 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 551.6 $ 551.4 Due between one and three years 631.6 631.1 Total $ 1,183.2 $ 1,182.5

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jan. 31, 2016
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes Convertible Senior Notes On June 30, 2014 , we issued $575.0 million aggregate principal amount of 0.0% Convertible Senior Notes due 2019 (the “Notes”). The Notes mature on July 1, 2019 , unless converted or repurchased in accordance with their terms prior to such date. The Notes do not contain any financial covenants and we cannot redeem the Notes prior to maturity. The Notes are convertible for up to 5.2 million shares of our common stock at an initial conversion price of approximately $110.28 per share of common stock, subject to adjustment. 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 January 1, 2019 , only under the following circumstances: • 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 conversion price for the Notes on each applicable trading day (the “sale price condition”); • during the five business day period after any five consecutive trading day period, in which the trading price per $1,000 principal amount 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 conversion rate for the Notes on each such trading day (the “trading price condition”); or • upon the occurrence of specified corporate events. On or after January 1, 2019, 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 maturity date regardless of the foregoing conditions. Upon conversion, holders will receive cash equal to the aggregate principal amount of the Notes 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 being converted. The sale price condition was initially met during the fiscal quarter ended April 30, 2015. The sale price condition continued to be met through the fiscal quarter ended January 31, 2016 , and as a result, holders may convert their Notes at any time during the fiscal quarter ending April 30, 2016 . Accordingly, the net carrying amount of the Notes was classified in current liabilities and a portion of the equity component representing the conversion option was classified as temporary equity in our condensed consolidated balance sheets as of January 31, 2016 . The portion of the equity component classified as temporary equity is measured as the difference between the principal and net carrying amount of the Notes. The following table sets forth the components of the Notes as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 July 31, 2015 Liability: Principal $ 575.0 $ 575.0 Less: debt discount, net of amortization 77.5 87.9 Net carrying amount $ 497.5 $ 487.1 Equity (including temporary equity) $ (109.8 ) $ (109.8 ) The total estimated fair value of the Notes was $840.2 million and $994.8 million at January 31, 2016 and July 31, 2015 , 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 January 31, 2016 and July 31, 2015 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 January 31, 2016 , the if-converted value of the Notes exceeded its principal amount by $278.7 million . The following table sets forth interest expense recognized related to the Notes (dollars in millions): Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Amortization of debt discount $ 5.2 $ 5.0 $ 10.4 $ 10.0 Amortization of debt issuance costs 0.6 0.5 1.1 1.0 Total interest expense recognized $ 5.8 $ 5.5 $ 11.5 $ 11.0 Effective interest rate of the liability component 4.8 % 4.8 % 4.8 % 4.8 % Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into convertible note hedge transactions (the “Note Hedges”) with respect to our common stock concurrent with the issuance of the Notes. The Note Hedges cover up to 5.2 million shares of our common stock and are exercisable upon conversion of the Notes. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are separate transactions and are not part of the terms of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. The shares receivable related to the Note Hedges are excluded from the calculation of diluted earnings per share as they are antidilutive. Warrants Separately, but concurrently with our issuance of the Notes, we entered into transactions whereby we sold warrants (the “Warrants”) to acquire up to 5.2 million shares of our common stock at a strike price of approximately $137.85 per share, subject to adjustments. 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 strike price of the Warrants. The Warrants are separate transactions and are not part of the Notes or Notes Hedges, and are not remeasured through earnings each reporting period. Holders of the Notes and Note Hedges will not have any rights with respect to the Warrants. For more information on the Notes, the Note Hedges, and the Warrants, refer to Note 7. Convertible Senior Notes of Notes to Consolidated Financial Statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jan. 31, 2016
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, we entered into three lease agreements for approximately 752,000 square feet of corporate office space in Santa Clara, California to serve as our future corporate headquarters. In October 2015, we entered into a fourth lease agreement for approximately 310,000 square feet of additional office space at the same location. The fourth lease will commence in December 2017 and expire in April 2028, however, the site is currently under construction and as a result, the lease commencement date may change based on progress of the construction project. The fourth lease agreement contains a rent holiday period, scheduled rent increases, lease incentives, and renewal options which allow the lease term to be extended through April 2046. Rental payments under the fourth lease agreement are approximately $101.2 million over the initial lease term. For more information on the three lease agreements entered into in May 2015, refer to Note 8. Commitments and Contingencies of Notes to Consolidated Financial Statements included in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . The following table presents details of the aggregate future non-cancelable minimum rental payments under our operating leases as of January 31, 2016 (in millions): Amount Fiscal years ending July 31: Remaining 2016 $ 12.0 2017 25.0 2018 28.2 2019 41.8 2020 45.9 2021 and thereafter 350.6 Committed gross lease payments 503.5 Less: proceeds from sublease rental 6.6 Net operating lease obligation $ 496.9 Contract Manufacturer Commitments Our independent contract manufacturer 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 marketing organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate supply, we may issue forecasts and orders for components and products that are non-cancelable. As of January 31, 2016 , our purchase commitments under such orders were $39.0 million , excluding obligations under contracts that we can cancel without a significant penalty. 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 January 31, 2016 , 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.

Equity Award Plans

Equity Award Plans	6 Months Ended
	Jan. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Award Plans	Equity Award Plans Stock Option Activities A summary of the activity under our stock plans during the reporting period and a summary of information related to options exercisable, vested, and expected to vest are presented below (in millions, except per share amounts): Options Outstanding Number Weighted- Weighted- (Years) Aggregate Balance—July 31, 2015 3.3 $ 13.74 6.2 $ 562.9 Options granted — — Options forfeited — — Options exercised (0.8 ) 12.20 Balance—January 31, 2016 2.5 $ 14.16 5.8 $ 339.9 Options vested and expected to vest—January 31, 2016 2.5 $ 14.15 5.8 $ 339.7 Options exercisable—January 31, 2016 2.3 $ 13.51 5.7 $ 316.3 Restricted Stock Unit (RSU) Activities A summary of the activity under our stock plans during the reporting period and a summary of information related to RSUs vested and expected to vest are presented below (in millions, except per share amounts): RSUs Outstanding Number Weighted- Weighted- (Years) Aggregate Balance—July 31, 2015 7.2 $ 95.66 1.2 $ 1,334.8 RSUs granted 2.3 170.24 RSUs vested (1.7 ) 81.41 RSUs forfeited (0.3 ) 93.67 Balance—January 31, 2016 7.5 $ 121.61 1.2 $ 1,117.5 RSUs vested and expected to vest—January 31, 2016 7.1 $ 120.88 1.2 $ 1,057.1 Restricted Stock Award (RSA) Activities During the three months ended January 31, 2016, we issued 1.1 million restricted shares of common stock to our employees with a grant-date fair value of $170.97 per share. The awards will vest over a period of three years from the date of grant. As of January 31, 2016 , all of the restricted shares of common stock remained unvested and outstanding. Share-Based Compensation The following table summarizes share-based compensation included in costs and expenses (in millions): Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Cost of product revenue $ 1.6 $ 1.0 $ 2.9 $ 1.7 Cost of services revenue 10.5 5.1 17.5 8.6 Research and development 34.9 19.0 59.9 33.0 Sales and marketing 39.4 21.7 66.6 37.5 General and administrative 15.5 10.1 27.9 14.6 Total $ 101.9 $ 56.9 $ 174.8 $ 95.4 At January 31, 2016 , total compensation cost related to unvested share-based awards not yet recognized was $924.1 million , net of estimated forfeitures. This cost is expected to be amortized on a straight-line basis over a weighted-average period of approximately three years .

Income Taxes

Income Taxes	6 Months Ended
	Jan. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our provision for income taxes for the three and six months ended January 31, 2016 reflects an effective tax rate of (6.9)% and (8.9)% , respectively. Our effective tax rates for these periods were negative as we recorded a provision for income taxes on quarter and year to date losses. The key components of our income tax provision primarily consist of foreign income taxes, withholding taxes, U.S. federal and state income taxes, and amortization of our deferred tax charges. Our effective tax rate differs from the U.S. statutory tax rate primarily due to foreign tax losses which derive no benefit, non-deductible share-based compensation, and changes in our valuation allowance. As compared to the same periods last year, our effective tax rate changed primarily due to an increase in non-deductible share-based compensation, changes in our valuation allowance against deferred tax assets, and amortization of our deferred tax charges. Our provision for (benefit from) income taxes for the three and six months ended January 31, 2015 reflects an effective tax rate of 1.6% and (0.6)% , respectively. Our effective tax rate for the six months ended January 31, 2015 was negative as we recorded a provision for income taxes on year to date losses. Our effective tax rate differs from the U.S. statutory tax rate primarily due to foreign tax losses which derive no benefit, non-deductible share-based compensation, and foreign income and withholding taxes. In December 2015, the Protecting Americans from Tax Hikes Act of 2015 (the “PATH Act”) was signed into law. Among its provisions, the PATH Act retroactively extends the bonus depreciation and other corporate tax incentives through December 31, 2019, and permanently extends the federal research and development credit. The adjustment to our deferred tax assets as a result of the PATH Act was fully offset by our valuation allowance. The income tax benefit derived from the PATH Act for the fiscal year ending July 31, 2016 is dependent on actual results for the year.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jan. 31, 2016
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by basic weighted-average shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (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 Six Months Ended January 31, January 31, 2016 2015 2016 2015 Net loss $ (62.5 ) $ (43.0 ) $ (101.2 ) $ (73.1 ) Weighted-average shares used to compute net loss per share, basic and diluted 86.6 80.8 85.8 80.1 Net loss per share, basic and diluted $ (0.72 ) $ (0.53 ) $ (1.18 ) $ (0.91 ) 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 and Six Months Ended January 31, 2016 2015 RSUs 7.5 7.7 Convertible senior notes 5.2 5.2 Warrants related to the issuance of convertible senior notes 5.2 5.2 Options to purchase common stock 2.5 4.5 RSAs 1.1 — ESPP shares 0.1 0.1 Total 21.6 22.7

Description of Business and S15

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jan. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 , filed with the Securities and Exchange Commission on September 17, 2015. 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 reclassified to conform to current period presentation. Our condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 .
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on fees paid in a cloud computing arrangement. The standard requires customers in a cloud computing arrangement to evaluate whether the arrangement includes a software license. If the arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard is effective for us for our first quarter of fiscal 2017 and will be applied on either a prospective or retrospective basis. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements. In April 2015, the FASB issued updated authoritative guidance to simplify the presentation of debt issuance costs. The amended standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts, instead of being presented as an asset. The amended standard is effective for us for our first quarter of fiscal 2017 and will be applied on a retrospective basis. We do not expect the adoption of the standard will have a material impact on our condensed consolidated financial statements. In May 2014, the FASB issued new authoritative guidance on revenue from contracts with customers. The new standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires significantly expanded disclosures about revenue recognition. The FASB subsequently delayed the effective date of the standard by one year and as a result, the standard is now effective for us for our first quarter of fiscal 2019 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. Early adoption as of the original effective date is permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements.
Fair Value Measurements	Fair Value Measurements We categorize assets and liabilities recorded 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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jan. 31, 2016
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 using the above input categories as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 July 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Short-term investments: Certificates of deposit $ — $ — $ — $ — $ — $ 1.0 $ — $ 1.0 Corporate debt securities — 127.3 — 127.3 — 97.8 — 97.8 U.S. government and agency securities — 424.1 — 424.1 — 314.4 — 314.4 Total short-term investments — 551.4 — 551.4 — 413.2 — 413.2 Long-term investments: Certificates of deposit — 5.4 — 5.4 — — — — Corporate debt securities — 167.2 — 167.2 — 92.9 — 92.9 U.S. government and agency securities — 458.5 — 458.5 — 445.9 — 445.9 Total long-term investments — 631.1 — 631.1 — 538.8 — 538.8 Total assets measured at fair value $ — $ 1,182.5 $ — $ 1,182.5 $ — $ 952.0 $ — $ 952.0

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jan. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale investments	The following tables summarize the unrealized gains and losses and fair value of our available-for-sale investments as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Certificates of deposit $ 5.4 $ — $ — $ 5.4 Corporate debt securities 294.9 0.1 (0.5 ) 294.5 U.S. government and agency securities 882.9 0.2 (0.5 ) 882.6 Total $ 1,183.2 $ 0.3 $ (1.0 ) $ 1,182.5 July 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Certificates of deposit $ 1.0 $ — $ — $ 1.0 Corporate debt securities 190.9 — (0.2 ) 190.7 U.S. government and agency securities 760.2 0.3 (0.2 ) 760.3 Total $ 952.1 $ 0.3 $ (0.4 ) $ 952.0
Schedule of contractual maturities of available-for-sale investments	The following table summarizes the amortized cost and fair value of our available-for-sale investments as of January 31, 2016 , by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 551.6 $ 551.4 Due between one and three years 631.6 631.1 Total $ 1,183.2 $ 1,182.5

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jan. 31, 2016
Debt Disclosure [Abstract]
Components of Convertible Senior Notes	The following table sets forth the components of the Notes as of January 31, 2016 and July 31, 2015 (in millions): January 31, 2016 July 31, 2015 Liability: Principal $ 575.0 $ 575.0 Less: debt discount, net of amortization 77.5 87.9 Net carrying amount $ 497.5 $ 487.1 Equity (including temporary equity) $ (109.8 ) $ (109.8 )
Interest expense recognized related to the Notes	The following table sets forth interest expense recognized related to the Notes (dollars in millions): Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Amortization of debt discount $ 5.2 $ 5.0 $ 10.4 $ 10.0 Amortization of debt issuance costs 0.6 0.5 1.1 1.0 Total interest expense recognized $ 5.8 $ 5.5 $ 11.5 $ 11.0 Effective interest rate of the liability component 4.8 % 4.8 % 4.8 % 4.8 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jan. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments for operating leases	The following table presents details of the aggregate future non-cancelable minimum rental payments under our operating leases as of January 31, 2016 (in millions): Amount Fiscal years ending July 31: Remaining 2016 $ 12.0 2017 25.0 2018 28.2 2019 41.8 2020 45.9 2021 and thereafter 350.6 Committed gross lease payments 503.5 Less: proceeds from sublease rental 6.6 Net operating lease obligation $ 496.9

Equity Award Plans (Tables)

Equity Award Plans (Tables)	6 Months Ended
	Jan. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options activity	A summary of the activity under our stock plans during the reporting period and a summary of information related to options exercisable, vested, and expected to vest are presented below (in millions, except per share amounts): Options Outstanding Number Weighted- Weighted- (Years) Aggregate Balance—July 31, 2015 3.3 $ 13.74 6.2 $ 562.9 Options granted — — Options forfeited — — Options exercised (0.8 ) 12.20 Balance—January 31, 2016 2.5 $ 14.16 5.8 $ 339.9 Options vested and expected to vest—January 31, 2016 2.5 $ 14.15 5.8 $ 339.7 Options exercisable—January 31, 2016 2.3 $ 13.51 5.7 $ 316.3
Schedule of restricted stock units award activity	A summary of the activity under our stock plans during the reporting period and a summary of information related to RSUs vested and expected to vest are presented below (in millions, except per share amounts): RSUs Outstanding Number Weighted- Weighted- (Years) Aggregate Balance—July 31, 2015 7.2 $ 95.66 1.2 $ 1,334.8 RSUs granted 2.3 170.24 RSUs vested (1.7 ) 81.41 RSUs forfeited (0.3 ) 93.67 Balance—January 31, 2016 7.5 $ 121.61 1.2 $ 1,117.5 RSUs vested and expected to vest—January 31, 2016 7.1 $ 120.88 1.2 $ 1,057.1
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 January 31, Six Months Ended January 31, 2016 2015 2016 2015 Cost of product revenue $ 1.6 $ 1.0 $ 2.9 $ 1.7 Cost of services revenue 10.5 5.1 17.5 8.6 Research and development 34.9 19.0 59.9 33.0 Sales and marketing 39.4 21.7 66.6 37.5 General and administrative 15.5 10.1 27.9 14.6 Total $ 101.9 $ 56.9 $ 174.8 $ 95.4

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jan. 31, 2016
Earnings Per Share [Abstract]
Computation of basic and diluted net income (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 Six Months Ended January 31, January 31, 2016 2015 2016 2015 Net loss $ (62.5 ) $ (43.0 ) $ (101.2 ) $ (73.1 ) Weighted-average shares used to compute net loss per share, basic and diluted 86.6 80.8 85.8 80.1 Net loss per share, basic and diluted $ (0.72 ) $ (0.53 ) $ (1.18 ) $ (0.91 )
Schedule of antidilutive securities excluded from computation of net income (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 and Six Months Ended January 31, 2016 2015 RSUs 7.5 7.7 Convertible senior notes 5.2 5.2 Warrants related to the issuance of convertible senior notes 5.2 5.2 Options to purchase common stock 2.5 4.5 RSAs 1.1 — ESPP shares 0.1 0.1 Total 21.6 22.7

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	$ 551.4	$ 413.2
Long-term investments	631.1	538.8
Total assets measured at fair value	1,182.5	952
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
Total assets measured at fair value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	551.4	413.2
Long-term investments	631.1	538.8
Total assets measured at fair value	1,182.5	952
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
Total assets measured at fair value	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	1
Long-term investments	5.4	0
Certificates of deposit | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
Certificates of deposit | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	1
Long-term investments	5.4	0
Certificates of deposit | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	127.3	97.8
Long-term investments	167.2	92.9
Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	127.3	97.8
Long-term investments	167.2	92.9
Corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	0	0
U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	424.1	314.4
Long-term investments	458.5	445.9
U.S. government and agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
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
Short-term investments	424.1	314.4
Long-term investments	458.5	445.9
U.S. government and agency securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Short-term investments	0	0
Long-term investments	$ 0	$ 0

Investments (Available-for-Sale

Investments (Available-for-Sale Investments) (Details) - USD ($) $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Schedule of Available-for-sale Securities
Amortized cost	$ 1,183.2	$ 952.1
Unrealized gains	0.3	0.3
Unrealized losses	(1)	(0.4)
Estimated fair value	1,182.5	952
Certificates of deposit
Schedule of Available-for-sale Securities
Amortized cost	5.4	1
Unrealized gains	0	0
Unrealized losses	0	0
Estimated fair value	5.4	1
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized cost	294.9	190.9
Unrealized gains	0.1	0
Unrealized losses	(0.5)	(0.2)
Estimated fair value	294.5	190.7
U.S. government and agency securities
Schedule of Available-for-sale Securities
Amortized cost	882.9	760.2
Unrealized gains	0.2	0.3
Unrealized losses	(0.5)	(0.2)
Estimated fair value	$ 882.6	$ 760.3

Investments (Available-for-Sa24

Investments (Available-for-Sale Investments, Contractual Maturities) (Details) - USD ($) $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Amortized Cost
Due within one year	$ 551.6
Due between one and three years	631.6
Total	1,183.2
Fair Value
Due within one year	551.4
Due between one and three years	631.1
Total	$ 1,182.5	$ 952

Convertible Senior Notes (Addit

Convertible Senior Notes (Additional Information) (Details) $ / shares in Units, shares in Millions, $ in Millions	Jan. 31, 2016USD ($)	Jun. 30, 2014USD ($)shares$ / shares	Jul. 31, 2015USD ($)
Debt Instrument
Aggregate principal amount | $		$ 575
Contractual interest rate (in percentage)		0.00%
Number of common stock convertible at initial conversion rate (in shares) | shares		5.2
Initial conversion price (in usd per share) | $ / shares		$ 110.28
Convertible Senior Notes, threshold trading days (in days)		20
Convertible Senior Notes, threshold consecutive trading days (in days)		30 days
Convertible Senior Notes, threshold percentage of stock price trigger (in percentage)		130.00%
Convertible Senior Notes, threshold business days, per $1,000 principal		5
Convertible Senior Notes, threshold consecutive trading days, per $1,000 principal		5 days
Convertible Senior Notes, threshold percentage of Note price trigger, per $1,000 principal (in percentage)		98.00%
If-converted value in excess of principal | $	$ 278.7
Shares of common stock covered by Note Hedges (in shares) | shares		5.2
Warrants sold, shares authorized to sell to counterparties (in shares) | shares		5.2
Strike price of warrants (in usd per share) | $ / shares		$ 137.85
Level 2
Debt Instrument
Fair value of Convertible Senior Notes | $	$ 840.2		$ 994.8

Convertible Senior Notes (Compo

Convertible Senior Notes (Components of Convertible Senior Notes) (Details) - USD ($) $ in Millions	Jan. 31, 2016	Jul. 31, 2015
Debt Instruments [Abstract]
Principal	$ 575	$ 575
Less: debt discount, net of amortization	77.5	87.9
Net carrying amount	497.5	487.1
Equity (including temporary equity)	$ (109.8)	$ (109.8)

Convertible Senior Notes (Sched

Convertible Senior Notes (Schedule of Interest Expense Recognized) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Debt Disclosure [Abstract]
Amortization of debt discount	$ 5.2	$ 5	$ 10.4	$ 10
Amortization of debt issuance costs	0.6	0.5	1.1	1
Total interest expense recognized	$ 5.8	$ 5.5	$ 11.5	$ 11
Effective interest rate of the liability component (in percentage)	4.80%	4.80%	4.80%	4.80%

Commitments and Contingencies28

Commitments and Contingencies (New Lease Agreements) (Details) $ in Millions	Jan. 31, 2016USD ($)	Oct. 31, 2015USD ($)ft²	May. 31, 2015ft²
Operating Leased Assets
Total future rental payments | $	$ 503.5
Q415 New Lease Arrangements
Operating Leased Assets
Number of lease agreements			3
Area of additional office space			752,000
Q116 New Lease Arrangement
Operating Leased Assets
Number of lease agreements		1
Area of additional office space		310,000
Total future rental payments | $		$ 101.2

Commitments and Contingencies29

Commitments and Contingencies (Lease Commitment) (Details) $ in Millions	Jan. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining 2,016	$ 12
2,017	25
2,018	28.2
2,019	41.8
2,020	45.9
2021 and thereafter	350.6
Committed gross lease payments	503.5
Less: proceeds from sublease rental	6.6
Net operating lease obligation	$ 496.9

Commitments and Contingencies30

Commitments and Contingencies (Contract Manufacturer Commitments) (Details) $ in Millions	Jan. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contract manufacturer commitments	$ 39

Equity Award Plans (Stock Optio

Equity Award Plans (Stock Options Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended	12 Months Ended
	Jan. 31, 2016	Jul. 31, 2015
Options, Outstanding Roll Forward
Balance, beginning (in shares)	3.3
Options granted (in shares)	0
Options forfeited (in shares)	0
Options exercised (in shares)	(0.8)
Balance, ending (in shares)	2.5	3.3
Options, Outstanding, Weighted Average Exercise Price Roll Forward
Balance, beginning (in usd per share)	$ 13.74
Options granted (in usd per share)	0
Options forfeited (in usd per share)	0
Options exercised (in usd per share)	12.20
Balance, ending (in usd per share)	$ 14.16	$ 13.74
Options, Additional Disclosures
Weighted-average remaining contractual life (in years)	5 years 9 months	6 years 2 months
Aggregate intrinsic value	$ 339.9	$ 562.9
Options vested and expected to vest (in shares)	2.5
Options vested and expected to vest, weighted-average exercise price (in usd per share)	$ 14.15
Options vested and expected to vest, weighted-average remaining contractual term (in years)	5 years 9 months
Options vested and expected to vest, aggregate intrinsic value	$ 339.7
Options exercisable (in shares)	2.3
Options exercisable, weighted-average exercise price (in usd per share)	$ 13.51
Options exercisable, weighted-average remaining contractual term (in years)	5 years 8 months
Options exercisable, aggregate intrinsic value	$ 316.3

Equity Award Plans (Restricted

Equity Award Plans (Restricted Stock Units Award Activity) (Details) - Restricted stock units (RSUs) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended	12 Months Ended
	Jan. 31, 2016USD ($)$ / sharesshares	Jul. 31, 2015USD ($)$ / sharesshares
RSUs, Outstanding Roll Forward
Balance, beginning (in shares) | shares	7.2
Granted (in shares) | shares	2.3
Vested (in shares) | shares	(1.7)
Forfeited (in shares) | shares	(0.3)
Balance, ending (in shares) | shares	7.5	7.2
RSUs, Outstanding, Weighted Average Grant-Date Fair Value Per Share Roll Forward
Balance, beginning (in usd per share) | $ / shares	$ 95.66
Granted (in usd per share) | $ / shares	170.24
Vested (in usd per share) | $ / shares	81.41
Forfeited (in usd per share) | $ / shares	93.67
Balance, ending (in usd per share) | $ / shares	$ 121.61	$ 95.66
RSUs, Additional Disclosures
Weighted-average remaining contractual term (in years)	1 year 2 months	1 year 2 months
Aggregate intrinsic value | $	$ 1,117.5	$ 1,334.8
Vested and expected to vest (in shares) | shares	7.1
Vested and expected to vest, weighted-average grant-date fair value (in usd per share) | $ / shares	$ 120.88
Vested and expected to vest, weighted-average remaining contractual term (in years)	1 year 2 months
Vested and expected to vest, aggregate intrinsic value | $	$ 1,057.1

Equity Award Plans (Restricte33

Equity Award Plans (Restricted Stock Award Activities) (Details) - Restricted stock awards (RSAs) shares in Millions	3 Months Ended	6 Months Ended
	Jan. 31, 2016$ / sharesshares	Jan. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares)	1.1
Granted (in usd per share) | $ / shares	$ 170.97
Shares outstanding (in shares)	1.1	1.1
Vesting period (in years)		3 years

Equity Award Plans (Allocation

Equity Award Plans (Allocation of Share Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	$ 101.9	$ 56.9	$ 174.8	$ 95.4
Total compensation cost not yet recognized, unvested awards, net of estimated forfeitures	924.1		$ 924.1
Period for recognition of total compensation cost not yet recognized (in years)			3 years
Cost of product revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	1.6	1	$ 2.9	1.7
Cost of services revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	10.5	5.1	17.5	8.6
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	34.9	19	59.9	33
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	39.4	21.7	66.6	37.5
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Share-based compensation expense	$ 15.5	$ 10.1	$ 27.9	$ 14.6

Income Taxes (Effective Tax Rat

Income Taxes (Effective Tax Rates) (Details)	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate (in percentage)	(6.90%)	1.60%	(8.90%)	(0.60%)

Net Income (Loss) Per Share (Co

Net Income (Loss) Per Share (Computation of Basic and Diluted Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method
Net loss	$ (62.5)	$ (43)	$ (101.2)	$ (73.1)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	86.6	80.8	85.8	80.1
Net loss per share, basic and diluted (in usd per share)	$ (0.72)	$ (0.53)	$ (1.18)	$ (0.91)

Net Income (Loss) Per Share (Sc

Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details) - shares shares in Millions	6 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	21.6	22.7
Restricted stock units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	7.5	7.7
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	5.2	5.2
Warrants related to the issuance of convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	5.2	5.2
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	2.5	4.5
Restricted stock awards (RSAs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	1.1	0
ESPP shares
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities (in shares)	0.1	0.1