Cover Page
Cover Page - shares | 6 Months Ended | |
Jan. 31, 2023 | Feb. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35594 | |
Entity Registrant Name | PALO ALTO NETWORKS, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2530195 | |
Entity Address, Address Line One | 3000 Tannery Way | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 753-4000 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | PANW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 302,607,942 | |
Entity Central Index Key | 0001327567 | |
Document Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,346.3 | $ 2,118.5 |
Short-term investments | 2,000.6 | 1,516 |
Accounts receivable, net of allowance for credit losses of $8.8 and $8.9 at January 31, 2023 and July 31, 2022, respectively | 1,278.1 | 2,142.5 |
Short-term deferred contract costs | 313.4 | 317.7 |
Prepaid expenses and other current assets | 467.4 | 320.2 |
Total current assets | 5,405.8 | 6,414.9 |
Property and equipment, net | 344.7 | 357.8 |
Operating lease right-of-use assets | 251.1 | 242 |
Long-term investments | 2,820.6 | 1,051.9 |
Long-term deferred contract costs | 511.3 | 550.1 |
Goodwill | 2,912.3 | 2,747.7 |
Intangible assets, net | 361.7 | 384.5 |
Other assets | 555.9 | 504.7 |
Total assets | 13,163.4 | 12,253.6 |
Current liabilities: | ||
Accounts payable | 128.3 | 128 |
Accrued compensation | 395.1 | 461.1 |
Accrued and other liabilities | 328.9 | 399.2 |
Deferred revenue | 3,942.5 | 3,641.2 |
Convertible senior notes, net | 3,680.3 | 3,676.8 |
Total current liabilities | 8,475.1 | 8,306.3 |
Long-term deferred revenue | 3,611.5 | 3,352.8 |
Long-term operating lease liabilities | 274.2 | 276.1 |
Other long-term liabilities | 73.6 | 108.4 |
Liabilities | 12,434.4 | 12,043.6 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at January 31, 2023 and July 31, 2022 | 0 | 0 |
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 302.4 and 298.8 shares issued and outstanding at January 31, 2023 and July 31, 2022, respectively | 2,303 | 1,932.7 |
Accumulated other comprehensive loss | (11.1) | (55.6) |
Accumulated deficit | (1,562.9) | (1,667.1) |
Total stockholders’ equity | 729 | 210 |
Total liabilities and stockholders’ equity | $ 13,163.4 | $ 12,253.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts | $ 8.8 | $ 8.9 |
Stockholders’ equity: | ||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
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) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 302,400,000 | 298,800,000 |
Common stock, shares outstanding (in shares) | 302,400,000 | 298,800,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue: | ||||
Revenue: | $ 1,655.1 | $ 1,316.9 | $ 3,218.5 | $ 2,564.3 |
Cost of revenue: | ||||
Cost of revenue: | 466.2 | 405.3 | 928.1 | 785.9 |
Total gross profit | 1,188.9 | 911.6 | 2,290.4 | 1,778.4 |
Operating expenses: | ||||
Research and development | 404.1 | 359 | 775.9 | 698.5 |
Sales and marketing | 625.5 | 528.8 | 1,240.5 | 1,034.7 |
General and administrative | 119.4 | 97.7 | 218.9 | 201.8 |
Total operating expenses | 1,149 | 985.5 | 2,235.3 | 1,935 |
Operating income (loss) | 39.9 | (73.9) | 55.1 | (156.6) |
Interest expense | (6.9) | (6.8) | (13.7) | (13.7) |
Other income (expense), net | 51.4 | (0.1) | 77.4 | (1.7) |
Income (loss) before income taxes | 84.4 | (80.8) | 118.8 | (172) |
Provision for income taxes | 0.2 | 12.7 | 14.6 | 25.1 |
Net income (loss) | $ 84.2 | $ (93.5) | $ 104.2 | $ (197.1) |
Net income (loss) per share, basic (in usd per share) | $ 0.28 | $ (0.32) | $ 0.35 | $ (0.67) |
Net income (loss) per share, diluted (in usd per share) | $ 0.25 | $ (0.32) | $ 0.31 | $ (0.67) |
Weighted-average shares used to compute net income (loss) per share, basic (in shares) | 302.3 | 294.5 | 301 | 293.7 |
Weighted-average shares used to compute net income (loss) per share, diluted (in shares) | 331.6 | 294.5 | 335 | 293.7 |
Product | ||||
Revenue: | ||||
Revenue: | $ 352.9 | $ 308 | $ 682.9 | $ 603.5 |
Cost of revenue: | ||||
Cost of revenue: | 100.5 | 97.8 | 220.6 | 186.7 |
Subscription and support | ||||
Revenue: | ||||
Revenue: | 1,302.2 | 1,008.9 | 2,535.6 | 1,960.8 |
Cost of revenue: | ||||
Cost of revenue: | $ 365.7 | $ 307.5 | $ 707.5 | $ 599.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 84.2 | $ (93.5) | $ 104.2 | $ (197.1) |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gains (losses) on investments | 33.5 | (8.8) | 5.7 | (11) |
Change in unrealized gains (losses) | 63.1 | (14.7) | 20.6 | (16.6) |
Net realized losses reclassified into earnings | 3.4 | 4.6 | 18.2 | 7.3 |
Net change on cash flow hedges | 66.5 | (10.1) | 38.8 | (9.3) |
Other comprehensive income (loss) | 100 | (18.9) | 44.5 | (20.3) |
Comprehensive income (loss) | $ 184.2 | $ (112.4) | $ 148.7 | $ (217.4) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative-effect adjustment from adoption of new accounting pronouncement | Common stock | Common stock and additional paid in capital | Common stock and additional paid in capital Cumulative-effect adjustment from adoption of new accounting pronouncement | Accumulated other comprehensive income (loss) | Accumulated deficit | Accumulated deficit Cumulative-effect adjustment from adoption of new accounting pronouncement |
Common stock, beginning balance (in shares) at Jul. 31, 2021 | 291,900,000 | |||||||
Beginning balance at Jul. 31, 2021 | $ 634.5 | $ (315.2) | $ 2,311.2 | $ (581.9) | $ (9.9) | $ (1,666.8) | $ 266.7 | |
Increase (decrease) in stockholders' equity | ||||||||
Net income (loss) | (197.1) | (197.1) | ||||||
Other comprehensive loss | (20.3) | (20.3) | ||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 6,600,000 | |||||||
Issuance of common stock in connection with employee equity incentive plans | 59.2 | 59.2 | ||||||
Taxes paid related to net share settlement of equity awards | (28.6) | (28.6) | ||||||
Share-based compensation for equity-based awards | 535.3 | 535.3 | ||||||
Repurchase and retirement of common stock (in shares) | (3,100,000) | |||||||
Repurchase and retirement of common stock | (550) | (550) | ||||||
Common stock, ending balance (in shares) at Jan. 31, 2022 | 295,400,000 | |||||||
Ending balance at Jan. 31, 2022 | 117.8 | 1,745.2 | (30.2) | (1,597.2) | ||||
Common stock, beginning balance (in shares) at Oct. 31, 2021 | 296,000,000 | |||||||
Beginning balance at Oct. 31, 2021 | 518.9 | 2,033.9 | (11.3) | (1,503.7) | ||||
Increase (decrease) in stockholders' equity | ||||||||
Net income (loss) | (93.5) | (93.5) | ||||||
Other comprehensive loss | (18.9) | (18.9) | ||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 2,500,000 | |||||||
Issuance of common stock in connection with employee equity incentive plans | 0.3 | 0.3 | ||||||
Taxes paid related to net share settlement of equity awards | (8.6) | (8.6) | ||||||
Share-based compensation for equity-based awards | 269.6 | 269.6 | ||||||
Repurchase and retirement of common stock (in shares) | (3,100,000) | |||||||
Repurchase and retirement of common stock | (550) | (550) | ||||||
Common stock, ending balance (in shares) at Jan. 31, 2022 | 295,400,000 | |||||||
Ending balance at Jan. 31, 2022 | $ 117.8 | 1,745.2 | (30.2) | (1,597.2) | ||||
Common stock, beginning balance (in shares) at Jul. 31, 2022 | 298,800,000 | 298,800,000 | ||||||
Beginning balance at Jul. 31, 2022 | $ 210 | 1,932.7 | (55.6) | (1,667.1) | ||||
Increase (decrease) in stockholders' equity | ||||||||
Net income (loss) | 104.2 | 104.2 | ||||||
Other comprehensive loss | 44.5 | 44.5 | ||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 5,400,000 | |||||||
Issuance of common stock in connection with employee equity incentive plans | 69 | 69 | ||||||
Taxes paid related to net share settlement of equity awards | (15.4) | (15.4) | ||||||
Share-based compensation for equity-based awards | 566.7 | 566.7 | ||||||
Repurchase and retirement of common stock (in shares) | (1,800,000) | |||||||
Repurchase and retirement of common stock | $ (250) | (250) | ||||||
Common stock, ending balance (in shares) at Jan. 31, 2023 | 302,400,000 | 302,400,000 | ||||||
Ending balance at Jan. 31, 2023 | $ 729 | 2,303 | (11.1) | (1,562.9) | ||||
Common stock, beginning balance (in shares) at Oct. 31, 2022 | 302,300,000 | |||||||
Beginning balance at Oct. 31, 2022 | 508 | 2,266.2 | (111.1) | (1,647.1) | ||||
Increase (decrease) in stockholders' equity | ||||||||
Net income (loss) | 84.2 | 84.2 | ||||||
Other comprehensive loss | 100 | 100 | ||||||
Issuance of common stock in connection with employee equity incentive plans (in shares) | 1,900,000 | |||||||
Issuance of common stock in connection with employee equity incentive plans | 0.8 | 0.8 | ||||||
Taxes paid related to net share settlement of equity awards | (1.5) | (1.5) | ||||||
Share-based compensation for equity-based awards | 287.5 | 287.5 | ||||||
Repurchase and retirement of common stock (in shares) | (1,800,000) | |||||||
Repurchase and retirement of common stock | $ (250) | (250) | ||||||
Common stock, ending balance (in shares) at Jan. 31, 2023 | 302,400,000 | 302,400,000 | ||||||
Ending balance at Jan. 31, 2023 | $ 729 | $ 2,303 | $ (11.1) | $ (1,562.9) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ 104.2 | $ (197.1) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Share-based compensation for equity-based awards | 549.3 | 524.2 |
Depreciation and amortization | 140.6 | 138.7 |
Amortization of deferred contract costs | 196 | 172 |
Amortization of debt discount and debt issuance costs | 3.5 | 3.6 |
Reduction of operating lease right-of-use assets | 24.6 | 25.1 |
Amortization of investment premiums, net of accretion of purchase discounts | (14.3) | 7.3 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 864.6 | 288.3 |
Deferred contract costs | (152.9) | (151.2) |
Prepaid expenses and other assets | (159.6) | (72.9) |
Accounts payable | 0.7 | 59.8 |
Accrued compensation | (68.3) | (100.8) |
Accrued and other liabilities | (116.7) | (50.7) |
Deferred revenue | 559.6 | 425.2 |
Net cash provided by operating activities | 1,931.3 | 1,071.5 |
Cash flows from investing activities | ||
Purchases of investments | (3,719.3) | (1,055.3) |
Proceeds from sales of investments | 499.6 | 282.2 |
Proceeds from maturities of investments | 998.9 | 401.6 |
Business acquisitions, net of cash acquired | (185.6) | (17.4) |
Purchases of property, equipment, and other assets | (77.9) | (115.3) |
Net cash used in investing activities | (2,484.3) | (504.2) |
Cash flows from financing activities | ||
Repurchases of common stock | (272.7) | (550) |
Proceeds from sales of shares through employee equity incentive plans | 68.4 | 58.8 |
Payments for taxes related to net share settlement of equity awards | (15.4) | (28.6) |
Net cash used in financing activities | (219.7) | (519.8) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (772.7) | 47.5 |
Cash, cash equivalents, and restricted cash - beginning of period | 2,124.8 | 1,880.1 |
Cash, cash equivalents, and restricted cash - end of period | $ 1,352.1 | $ 1,927.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 1,346.3 | $ 1,922.7 |
Restricted cash | 5.8 | 4.9 |
Total cash, cash equivalents, and restricted cash | $ 1,352.1 | $ 1,927.6 |
Restricted Cash, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
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”), headquartered in Santa Clara, California, was incorporated in March 2005 under the laws of the State of Delaware and commenced operations in April 2005. We empower enterprises, organizations, service providers, and government entities to secure their users, networks, clouds, and endpoints by delivering comprehensive cybersecurity backed by artificial intelligence and automation. 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on September 6, 2022. Our condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. 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, 2022. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. We base our estimates on assumptions, both historical and forward looking, that we believe are reasonable. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment. 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, 2023, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2022. Stock Split Effected in the Form of a Stock Dividend (“Stock Split”) On September 13, 2022, we executed a three-for-one stock split of our common stock, effected in the form of a stock dividend. The par value per share of our common stock remains unchanged at $0.001 per share after the Stock Split. All references made to share or per share amounts on the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Stock Split. |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents revenue by geographic theater (in millions): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Revenue: Americas United States $ 1,042.3 $ 858.6 $ 2,048.6 $ 1,670.3 Other Americas 74.7 57.3 139.1 112.3 Total Americas 1,117.0 915.9 2,187.7 1,782.6 Europe, the Middle East, and Africa (“EMEA”) 341.5 252.2 649.4 486.0 Asia Pacific and Japan (“APAC”) 196.6 148.8 381.4 295.7 Total revenue $ 1,655.1 $ 1,316.9 $ 3,218.5 $ 2,564.3 The following table presents revenue for groups of similar products and services (in millions): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Revenue: Product $ 352.9 $ 308.0 $ 682.9 $ 603.5 Subscription and support Subscription 815.4 618.0 1,579.4 1,196.8 Support 486.8 390.9 956.2 764.0 Total subscription and support 1,302.2 1,008.9 2,535.6 1,960.8 Total revenue $ 1,655.1 $ 1,316.9 $ 3,218.5 $ 2,564.3 Deferred Revenue During the six months ended January 31, 2023 and 2022, we recognized approximately $2.1 billion and $1.6 billion of revenue pertaining to amounts that were deferred as of July 31, 2022 and 2021, respectively. Remaining Performance Obligations Remaining performance obligations were $8.8 billion as of January 31, 2023, of which we expect to recognize as revenue approximately $4.4 billion over the next 12 months and the remainder thereafter. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 655.9 $ — $ — $ 655.9 $ 1,205.2 $ — $ — $ 1,205.2 Certificates of deposit — 6.5 — 6.5 — 155.3 — 155.3 Commercial paper — 175.2 — 175.2 — 69.1 — 69.1 Corporate debt securities — 24.5 — 24.5 — 19.5 — 19.5 U.S. government and agency securities — — — — — 10.0 — 10.0 Non-U.S. government and agency securities — — — — — 5.1 — 5.1 Total cash equivalents 655.9 206.2 — 862.1 1,205.2 259.0 — 1,464.2 Short-term investments: Certificates of deposit — 210.8 — 210.8 — 116.4 — 116.4 Commercial paper — 630.9 — 630.9 — 79.0 — 79.0 Corporate debt securities — 701.0 — 701.0 — 505.0 — 505.0 U.S. government and agency securities — 444.2 — 444.2 — 798.2 — 798.2 Non-U.S. government and agency securities — 13.7 — 13.7 — 17.4 — 17.4 Total short-term investments — 2,000.6 — 2,000.6 — 1,516.0 — 1,516.0 Long-term investments: Corporate debt securities — 2,217.1 — 2,217.1 — 761.2 — 761.2 U.S. government and agency securities — 68.9 — 68.9 — 118.2 — 118.2 Non-U.S. government and agency securities — 54.4 — 54.4 — — — — Asset-backed securities — 480.2 — 480.2 — 172.5 — 172.5 Total long-term investments — 2,820.6 — 2,820.6 — 1,051.9 — 1,051.9 January 31, 2023 July 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Prepaid expenses and other current assets: Foreign currency forward contracts — 25.1 — 25.1 — 2.4 — 2.4 Total prepaid expenses and other current assets — 25.1 — 25.1 — 2.4 — 2.4 Other assets: Foreign currency forward contracts — 9.1 — 9.1 — 0.7 — 0.7 Total other assets — 9.1 — 9.1 — 0.7 — 0.7 Total assets measured at fair value $ 655.9 $ 5,061.6 $ — $ 5,717.5 $ 1,205.2 $ 2,830.0 $ — $ 4,035.2 Accrued and other liabilities: Foreign currency forward contracts $ — $ 14.2 $ — $ 14.2 $ — $ 32.4 $ — $ 32.4 Total accrued and other liabilities — 14.2 — 14.2 — 32.4 — 32.4 Other long-term liabilities: Foreign currency forward contracts — 2.6 — 2.6 — 0.8 — 0.8 Total other long-term liabilities — 2.6 — 2.6 — 0.8 — 0.8 Total liabilities measured at fair value $ — $ 16.8 $ — $ 16.8 $ — $ 33.2 $ — $ 33.2 Refer to Note 9. Debt for the carrying amount and estimated fair value of our convertible senior notes as of January 31, 2023 and July 31, 2022. |
Cash Equivalents and Investment
Cash Equivalents and Investments (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Investments | Cash Equivalents and Investments Available-for-sale Debt Securities The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Certificates of deposit $ 6.5 $ — $ — $ 6.5 Commercial paper 175.2 — — 175.2 Corporate debt securities 24.5 — — 24.5 Total available-for-sale cash equivalents $ 206.2 $ — $ — $ 206.2 Investments: Certificates of deposit $ 210.8 $ — $ — $ 210.8 Commercial paper 631.4 0.2 (0.7) 630.9 Corporate debt securities 2,927.9 9.0 (18.8) 2,918.1 U.S. government and agency securities 518.4 — (5.3) 513.1 Non-U.S. government and agency securities 68.8 — (0.7) 68.1 Asset-backed securities 481.7 1.0 (2.5) 480.2 Total available-for-sale investments $ 4,839.0 $ 10.2 $ (28.0) $ 4,821.2 July 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Certificates of deposit $ 155.3 $ — $ — $ 155.3 Commercial paper 69.1 — — 69.1 Corporate debt securities 19.5 — — 19.5 U.S. government and agency securities 10.0 — — 10.0 Non-U.S. government and agency securities 5.0 0.1 — 5.1 Total available-for-sale cash equivalents $ 258.9 $ 0.1 $ — $ 259.0 Investments: Certificates of deposit $ 116.5 $ — $ (0.1) $ 116.4 Commercial paper 79.1 — (0.1) 79.0 Corporate debt securities 1,276.8 1.3 (11.9) 1,266.2 U.S. government and agency securities 928.1 0.1 (11.8) 916.4 Non-U.S. government and agency securities 17.6 — (0.2) 17.4 Asset-backed securities $ 173.4 $ 0.2 $ (1.1) $ 172.5 Total available-for-sale investments $ 2,591.5 $ 1.6 $ (25.2) $ 2,567.9 As of January 31, 2023, the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months were $17.2 million, which were related to $2.5 billion of available-for-sale debt securities, and the gross unrealized losses that have been in a continuous unrealized loss position for more than 12 months were $10.8 million, which were related to $571.6 million of available-for-sale debt securities. As of July 31, 2022 the gross unrealized losses that have been in a continuous unrealized loss position for less than 12 months were $24.8 million, which were related to $2.0 billion of available-for-sale debt securities, and the gross unrealized losses that have been in a continuous unrealized loss position for more than 12 months were not material. Unrealized losses related to our available-for-sale debt securities are due to interest rate fluctuations as opposed to credit quality. We do not intend to sell any of the securities in an unrealized loss position 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. We did not recognize any credit losses related to our available-for-sale debt securities during the three and six months ended January 31, 2023 and 2022. The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of January 31, 2023, by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 2,217.6 $ 2,206.8 Due between one and three years 2,658.4 2,651.4 Due between three to five years 123.8 123.5 Due between five to ten years 45.4 45.7 Total $ 5,045.2 $ 5,027.4 Marketable Equity Securities Marketable equity securities consist of money market funds and are included in cash and cash equivalents on our condensed consolidated balance sheets. As of January 31, 2023 and July 31, 2022, the carrying values of our marketable equity securities were $655.9 million and $1.2 billion, respectively. There were no unrealized gains or losses recognized for these securities during the three and six months ended January 31, 2023 and 2022. |
Financing Receivables (Notes)
Financing Receivables (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables The following table summarizes our short-term and long-term financing receivables as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Short-term financing receivables, gross $ 174.3 $ 112.6 Allowance for credit losses (2.5) (1.3) Short-term financing receivables, net $ 171.8 $ 111.3 Long-term financing receivables, gross $ 222.0 $ 194.6 Allowance for credit losses (3.9) (2.5) Long-term financing receivables, net $ 218.1 $ 192.1 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We are exposed to foreign currency exchange 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 24 months or less, which we designate as cash flow hedges, to manage the foreign currency exchange risk associated with our operating expenditures. As of January 31, 2023 and July 31, 2022, the total notional amount of our outstanding foreign currency forward contracts was $1.1 billion and $856.9 million, respectively. Refer to Note 3. Fair Value Measurements for the fair value of our derivative instruments as reported on our condensed consolidated balance sheets as of January 31, 2023 and July 31, 2022. |
Acquisitions (Notes)
Acquisitions (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition Cider Security Ltd. On December 20, 2022, we completed our acquisition of Cider Security Ltd. (“Cider”), a privately-held cloud security company. We expect the acquisition will support Prisma Cloud’s platform approach to securing the entire application security lifecycle from code-to-cloud. The total purchase consideration for the acquisition of Cider was $198.3 million, which consisted of the following (in millions): Amount Cash $ 198.0 Fair value of replacement awards 0.3 Total $ 198.3 As part of the acquisition, we issued replacement equity awards, which included 0.2 million shares of our restricted common stock. The total fair value of the replacement equity awards was $48.6 million, of which the portion attributable to services performed prior to the acquisition date was allocated to purchase consideration. The remaining fair value 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 $ 164.6 Identified intangible assets 27.8 Cash 12.4 Net liabilities assumed (6.5) Total $ 198.3 Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Cider technology into our platforms. The goodwill is expected to be deductible for U.S. income tax purposes. The following table presents details of the identified intangible asset acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 27.8 5 years |
Intangible Assets (Notes)
Intangible Assets (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Goodwill The following table presents details of our goodwill during the six months ended January 31, 2023 (in millions): Amount Balance as of July 31, 2022 $ 2,747.7 Goodwill acquired 164.6 Balance as of January 31, 2023 $ 2,912.3 Purchased Intangible Assets The following table presents details of our purchased intangible assets as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 628.5 $ (390.2) $ 238.3 $ 600.7 $ (347.9) $ 252.8 Customer relationships 172.7 (63.1) 109.6 172.7 (52.2) 120.5 Acquired intellectual property 14.6 (5.4) 9.2 11.3 (4.8) 6.5 Trade name and trademarks 9.4 (9.4) — 9.4 (9.4) — Other 0.9 (0.2) 0.7 0.9 (0.1) 0.8 Total intangible assets subject to amortization 826.1 (468.3) 357.8 795.0 (414.4) 380.6 Intangible assets not subject to amortization: In-process research and development 3.9 — 3.9 3.9 — 3.9 Total purchased intangible assets $ 830.0 $ (468.3) $ 361.7 $ 798.9 $ (414.4) $ 384.5 We recognized amortization expense of $24.8 million and $53.9 million for the three and six months ended January 31, 2023, respectively, and $31.7 million and $63.5 million for the three and six months ended January 31, 2022, respectively. The following table summarizes estimated future amortization expense of our intangible assets subject to amortization as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Future amortization expense $ 357.8 $ 50.7 $ 97.1 $ 83.4 $ 61.6 $ 34.6 $ 30.4 |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes In July 2018, we issued $1.7 billion aggregate principal amount of 0.75% Convertible Senior Notes due 2023 (the “2023 Notes”) and in June 2020, we issued $2.0 billion aggregate principal amount of 0.375% Convertible Senior Notes due 2025 (the “2025 Notes,” and together with the 2023 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. The 2025 Notes bear interest at a fixed rate of 0.375% per year, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. Each series of the convertible 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 2023 Notes and the 2025 Notes mature on July 1, 2023 and June 1, 2025, respectively. We cannot redeem the 2023 Notes prior to maturity. We may redeem for cash all or any portion of the 2025 Notes, at our option, on or after June 5, 2023, and prior to the 31st scheduled trading day immediately preceding the maturity date if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending on and including the trading day preceding the date on which we provide notice of redemption. The redemption will be at a price equal to 100% of the principal amount of the 2025 Notes and adjusted for interest. If we call any or all of the 2025 Notes for redemption, holders may convert such 2025 Notes called for redemption at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date. The following table presents details of our Notes (number of shares in millions): Conversion Rate per $1,000 Principal Initial Conversion Price Convertible Date Initial Number of Shares 2023 Notes 11.2635 $ 88.78 April 1, 2023 19.1 2025 Notes 10.0806 $ 99.20 March 1, 2025 20.1 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, 2018 and October 31, 2020 for the 2023 Notes and the 2025 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 surrender all or any portion of their Notes for conversion 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, and such conversions will be settled upon the applicable maturity date. 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 for the Notes was met during the fiscal quarter ended January 31, 2023, and as a result, holders may convert their Notes at any time during the fiscal quarter ending April 30, 2023. The net carrying amount of the Notes was classified as a current liability on our condensed consolidated balance sheet as of January 31, 2023. The following table sets forth the components of the Notes (in millions): January 31, 2023 July 31, 2022 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total Liability component: Principal $ 1,691.9 $ 1,999.4 $ 3,691.3 $ 1,691.9 $ 1,999.4 $ 3,691.3 Less: debt discount and debt issuance costs, net of amortization (1.2) (9.8) (11.0) (2.6) (11.9) (14.5) Net carrying amount $ 1,690.7 $ 1,989.6 $ 3,680.3 $ 1,689.3 $ 1,987.5 $ 3,676.8 The total estimated fair value of the 2023 Notes and 2025 Notes were $3.0 billion and $3.3 billion at January 31, 2023, respectively, and $3.2 billion and $3.5 billion at July 31, 2022, respectively. The fair value was determined based on the closing trading price per $100 of the applicable series of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at January 31, 2023 and July 31, 2022 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. 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, 2023 2022 2023 2022 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total Contractual interest expense $ 3.2 $ 2.0 $ 5.2 $ 3.1 $ 1.9 $ 5.0 $ 6.4 $ 3.8 $ 10.2 $ 6.3 $ 3.8 $ 10.1 Amortization of debt issuance costs 0.7 1.0 1.7 0.7 1.1 1.8 1.4 2.1 3.5 1.4 2.2 3.6 Total interest expense $ 3.9 $ 3.0 $ 6.9 $ 3.8 $ 3.0 $ 6.8 $ 7.8 $ 5.9 $ 13.7 $ 7.7 $ 6.0 $ 13.7 Effective interest rate 0.9 % 0.6 % 0.9 % 0.6 % 0.9 % 0.6 % 0.9 % 0.6 % Note Hedges To minimize the impact of potential economic dilution upon conversion of our Notes, we entered into separate convertible note hedge transactions (the “2023 Note Hedges,” with respect to the 2023 Notes, the “2025 Note Hedges,” with respect to the 2025 Notes, and the 2023 Notes Hedges together with 2025 Note Hedges, the “Note Hedges”) with respect to our common stock concurrent with the issuance of each series of the Notes. The following table presents details of our Note Hedges (in millions): Initial Number of Shares Aggregate Purchase 2023 Note Hedges 19.1 $ 332.0 2025 Note Hedges 20.1 $ 370.8 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 the Notes, which are also subject to adjustment, and are exercisable upon conversion of the applicable series of the Notes. The Note Hedges will expire upon maturity of the applicable series of the 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 on our condensed consolidated balance sheets. Warrants Separately, but concurrently with the issuance of each series of our Notes, we entered into transactions whereby we sold warrants (the “2023 Warrants,” with respect to the 2023 Notes, the “2025 Warrants,” with respect to the 2025 Notes, and the 2023 Warrants together with the 2025 Warrants, the “Warrants”) to acquire shares of our common stock, subject to anti-dilution adjustments. The 2023 Warrants and 2025 Warrants are exercisable beginning October 2023 and September 2025, respectively. The following table presents details of our Warrants (in millions, except per share data): Initial Number Strike Price Aggregate 2023 Warrants 19.1 $ 139.27 $ 145.4 2025 Warrants 20.1 $ 136.16 $ 202.8 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 on our condensed 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 currently 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. In March 2021, the ICE Benchmark Administration, the administrator of LIBO Rate, announced that it will cease publication of the LIBO Rate by June 2023. Under the terms of our Credit Facility, in the event of the discontinuance of the LIBO Rate, a mutually agreed-upon alternative benchmark rate will be established to replace the LIBO Rate, which may include the Secured Overnight Financing Rate (“SOFR”). We do not anticipate that the discontinuance of the LIBO Rate will materially impact our liquidity or financial position. As of January 31, 2023, there were no amounts outstanding and we were in compliance with all covenants under the Credit Agreement. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments Manufacturing Purchase Commitments In order to reduce manufacturing lead times and plan for adequate supply, we enter into agreements with manufacturing partners and component suppliers to procure inventory based on our demand forecasts. The following table presents details of the aggregate future minimum or fixed purchase commitments under these arrangements, excluding obligations under contracts that we can cancel as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Manufacturing purchase commitments $ 293.5 $ 120.5 $ 98.0 $ 35.0 $ 40.0 $ — $ — Other Purchase Commitments We have entered into various non-cancelable agreements with certain service providers, under which we are committed to minimum or fixed purchases. The following table presents details of the aggregate future non-cancelable purchase commitments under these agreements as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Other purchase commitments $ 1,701.2 $ 54.2 $ 228.1 $ 416.7 $ 517.5 $ 483.9 $ 0.8 Additionally, we have a $159.6 million minimum purchase commitment with a service provider through September 2027 with no specified annual commitments. 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, 2023, 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) | 6 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Share Repurchase Program In February 2019, our board of directors authorized a $1.0 billion share repurchase program, which is funded from available working capital. In December 2020, August 2021, and August 2022, our board of directors authorized additional $700.0 million, $676.1 million, and $915.0 million increases to this share repurchase program, respectively, bringing the total authorization under this share repurchase program to $3.3 billion (our “current authorization”). The expiration date of our current authorization was extended to December 31, 2023, and our repurchase program may be suspended or discontinued at any time. 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 following table summarizes the share repurchase activity under our share repurchase program (in millions, except per share amounts): Three and Six Months Ended January 31, 2023 2022 Number of shares repurchased 1.8 3.1 Weighted average price per share (1) $ 138.65 $ 177.93 Aggregate purchase price (1) $ 250.0 $ 550.0 ______________ (1) Includes transaction costs In addition to the share repurchase activity summarized in the table above, during the six months ended January 31, 2023, we paid $22.7 million related to share repurchases of our common stock that were not settled as of July 31, 2022. As of January 31, 2023, $750.0 million remained available for future share repurchases under our current repurchase authorization. The total price of the shares repurchased and related transaction costs are reflected as a reduction to common stock and additional paid-in capital on our condensed consolidated balance sheets. |
Equity Award Plans (Notes)
Equity Award Plans (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Award Plans | Equity Award Plans Restricted Stock Unit (“RSU”) and Performance-Based Stock Unit (“PSU”) Activities The following table summarizes the RSU and PSU activity under our stock plans during the six months ended January 31, 2023 (in millions, except per share amounts): RSUs Outstanding PSUs Outstanding Number of Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Number of Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Balance—July 31, 2022 14.8 $ 115.51 $ 2,456.9 3.1 $ 106.38 $ 513.7 Granted (1) 4.8 $ 163.23 2.8 $ 141.40 Vested (3.4) $ 102.07 (1.2) $ 115.67 Forfeited (0.8) $ 119.48 (0.2) $ 135.26 Balance—January 31, 2023 15.4 $ 133.47 $ 2,442.8 4.5 $ 124.21 $ 711.5 ______________ (1) For PSUs, shares granted represent the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. Our RSUs generally vest over a period of three Our PSUs generally vest over a period of one During the six months ended January 31, 2023, we granted 0.8 million shares of PSUs with both service and market conditions to certain employees. The market conditions are satisfied when the price of our common stock is equal to or exceeds stock price targets of $233.33, $266.67, $300.00, and $333.33 based on the average closing price for 30 consecutive trading days during the three During the six months ended January 31, 2023 and 2022, we granted 1.6 million and 0.6 million shares of PSUs, respectively, which contain service, performance and market conditions, to certain employees. The service conditions are satisfied over a period of one The fair value of the PSUs subject to market conditions is estimated on the grant date using a Monte Carlo simulation model. The following table summarizes the assumptions used and the grant-date fair value of these PSUs granted: Six Months Ended January 31, 2023 2022 Volatility 39.6% - 44.8% 36.0% - 38.0% Expected term (in years) 1.0 - 4.0 1.9 - 3.0 Dividend yield 0.0 % 0.0 % Risk-free interest rate 3.2% - 3.6% 0.2% - 0.4% Grant-date fair value per share $105.60 - $280.41 $137.16 - $140.22 Performance Stock Option (“PSO”) Activities We have granted PSOs with both service and market conditions to certain executives. The market conditions were achieved when certain stock price targets were met. As of January 31, 2023, all stock price targets for our outstanding PSOs have been satisfied. One-fourth of the PSOs will vest on each anniversary date of the grant date, subject to continued service. The contractual term for the PSOs outstanding ranges from seven The following table summarizes the PSO activity under our stock plans during the six months ended January 31, 2023 (in millions, except per share amounts): PSOs Outstanding Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Balance—July 31, 2022 8.0 $ 64.85 3.2 $ 809.3 Balance—January 31, 2023 8.0 $ 64.85 2.7 $ 747.7 Exercisable—January 31, 2023 8.0 $ 64.85 2.7 $ 747.7 Share-Based Compensation The following table summarizes share-based compensation included in costs and expenses (in millions): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Cost of product revenue $ 2.6 $ 2.3 $ 5.0 $ 4.6 Cost of subscription and support revenue 30.7 27.7 59.5 54.4 Research and development 129.7 123.6 247.7 249.2 Sales and marketing 88.4 79.8 175.8 153.1 General and administrative 38.5 31.7 67.9 64.1 Total share-based compensation $ 289.9 $ 265.1 $ 555.9 $ 525.4 As of January 31, 2023, total compensation cost related to unvested share-based awards not yet recognized was $2.3 billion. This cost is expected to be amortized over a weighted-average period of approximately 2.7 years . |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended January 31, 2023, our provision for income taxes reflected an effective tax rate of 0.2% and 12.3%, respectively. For the three and six months ended January 31, 2022, our provision for income taxes reflected an effective tax rate of negative 15.7% and negative 14.6%, respectively. Our income taxes for the three and six months ended January 31, 2023 were primarily due to U.S. federal and state income taxes, withholding taxes, and foreign income taxes. Our effective tax rate varied for the three and six months ended January 31, 2023 compared to the same periods in 2022 primarily due to an increase in current taxes driven by capitalization of research and development expenditures with no offsetting deferred benefit as a result of our valuation allowance. This increase was offset by a tax benefit from a release of tax reserves related to uncertain tax positions resulting from an agreement with a non-U.S. tax authority to pay $28.9 million to settle a tax audit during the three months ended January 31, 2023. Our income taxes for the three and six months ended January 31, 2022 were primarily due to foreign income taxes and withholding taxes. Our effective tax rates differed from the U.S. statutory tax rate primarily due to changes in our valuation allowance. As of January 31, 2023, our gross uncertain tax positions were $396.0 million and our interest and penalties were $6.7 million. We recognize both interest and penalties associated with uncertain tax positions as a component of income tax. |
Net Income (Loss) Per Share (No
Net Income (Loss) Per Share (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per ShareBasic 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 during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Potentially dilutive securities include shares issuable upon conversion of our convertible senior notes using the if-converted method. Potentially dilutive securities also include warrants related to the issuance of convertible senior notes and equity awards under our employee equity incentive plans using the treasury stock method. The following table presents the computation of basic and diluted net income (loss) per share of common stock (in millions, except per share data): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Net income (loss) $ 84.2 $ (93.5) $ 104.2 $ (197.1) Weighted-average shares used to compute net income (loss) per share, basic 302.3 294.5 301.0 293.7 Weighted-average effect of potentially dilutive securities: Convertible senior notes 15.2 — 16.5 — Warrants related to the issuance of convertible senior notes 4.1 — 6.0 — Employee equity incentive plans 10.0 — 11.5 — Weighted-average shares used to compute net income (loss) per share, diluted 331.6 294.5 335.0 293.7 Net income (loss) per share, basic $ 0.28 $ (0.32) $ 0.35 $ (0.67) Net income (loss) per share, diluted $ 0.25 $ (0.32) $ 0.31 $ (0.67) The following securities were excluded from the computation of diluted net income (loss) per share of common stock as their effect would have been antidilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the applicable period (in millions): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Convertible senior notes — 39.2 — 39.2 Warrants related to the issuance of convertible senior notes — 39.2 — 39.2 Employee equity incentive plans 8.9 32.0 5.8 32.0 Total 8.9 110.4 5.8 110.4 |
Other Income (Expense), Net (No
Other Income (Expense), Net (Notes) | 6 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The following table sets forth the components of other income (expense), net (in millions): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Interest income $ 56.6 $ 1.9 $ 86.0 $ 3.3 Foreign currency exchange gains (losses), net (7.3) (1.7) (2.9) (5.6) Other 2.1 (0.3) (5.7) 0.6 Total other income (expense), net $ 51.4 $ (0.1) $ 77.4 $ (1.7) |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | 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, 2022, filed with the Securities and Exchange Commission (“SEC”) on September 6, 2022. Our condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. 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, 2022. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. We base our estimates on assumptions, both historical and forward looking, that we believe are reasonable. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 Revenue: Americas United States $ 1,042.3 $ 858.6 $ 2,048.6 $ 1,670.3 Other Americas 74.7 57.3 139.1 112.3 Total Americas 1,117.0 915.9 2,187.7 1,782.6 Europe, the Middle East, and Africa (“EMEA”) 341.5 252.2 649.4 486.0 Asia Pacific and Japan (“APAC”) 196.6 148.8 381.4 295.7 Total revenue $ 1,655.1 $ 1,316.9 $ 3,218.5 $ 2,564.3 |
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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 Revenue: Product $ 352.9 $ 308.0 $ 682.9 $ 603.5 Subscription and support Subscription 815.4 618.0 1,579.4 1,196.8 Support 486.8 390.9 956.2 764.0 Total subscription and support 1,302.2 1,008.9 2,535.6 1,960.8 Total revenue $ 1,655.1 $ 1,316.9 $ 3,218.5 $ 2,564.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities | The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 655.9 $ — $ — $ 655.9 $ 1,205.2 $ — $ — $ 1,205.2 Certificates of deposit — 6.5 — 6.5 — 155.3 — 155.3 Commercial paper — 175.2 — 175.2 — 69.1 — 69.1 Corporate debt securities — 24.5 — 24.5 — 19.5 — 19.5 U.S. government and agency securities — — — — — 10.0 — 10.0 Non-U.S. government and agency securities — — — — — 5.1 — 5.1 Total cash equivalents 655.9 206.2 — 862.1 1,205.2 259.0 — 1,464.2 Short-term investments: Certificates of deposit — 210.8 — 210.8 — 116.4 — 116.4 Commercial paper — 630.9 — 630.9 — 79.0 — 79.0 Corporate debt securities — 701.0 — 701.0 — 505.0 — 505.0 U.S. government and agency securities — 444.2 — 444.2 — 798.2 — 798.2 Non-U.S. government and agency securities — 13.7 — 13.7 — 17.4 — 17.4 Total short-term investments — 2,000.6 — 2,000.6 — 1,516.0 — 1,516.0 Long-term investments: Corporate debt securities — 2,217.1 — 2,217.1 — 761.2 — 761.2 U.S. government and agency securities — 68.9 — 68.9 — 118.2 — 118.2 Non-U.S. government and agency securities — 54.4 — 54.4 — — — — Asset-backed securities — 480.2 — 480.2 — 172.5 — 172.5 Total long-term investments — 2,820.6 — 2,820.6 — 1,051.9 — 1,051.9 January 31, 2023 July 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Prepaid expenses and other current assets: Foreign currency forward contracts — 25.1 — 25.1 — 2.4 — 2.4 Total prepaid expenses and other current assets — 25.1 — 25.1 — 2.4 — 2.4 Other assets: Foreign currency forward contracts — 9.1 — 9.1 — 0.7 — 0.7 Total other assets — 9.1 — 9.1 — 0.7 — 0.7 Total assets measured at fair value $ 655.9 $ 5,061.6 $ — $ 5,717.5 $ 1,205.2 $ 2,830.0 $ — $ 4,035.2 Accrued and other liabilities: Foreign currency forward contracts $ — $ 14.2 $ — $ 14.2 $ — $ 32.4 $ — $ 32.4 Total accrued and other liabilities — 14.2 — 14.2 — 32.4 — 32.4 Other long-term liabilities: Foreign currency forward contracts — 2.6 — 2.6 — 0.8 — 0.8 Total other long-term liabilities — 2.6 — 2.6 — 0.8 — 0.8 Total liabilities measured at fair value $ — $ 16.8 $ — $ 16.8 $ — $ 33.2 $ — $ 33.2 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale debt securities | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Certificates of deposit $ 6.5 $ — $ — $ 6.5 Commercial paper 175.2 — — 175.2 Corporate debt securities 24.5 — — 24.5 Total available-for-sale cash equivalents $ 206.2 $ — $ — $ 206.2 Investments: Certificates of deposit $ 210.8 $ — $ — $ 210.8 Commercial paper 631.4 0.2 (0.7) 630.9 Corporate debt securities 2,927.9 9.0 (18.8) 2,918.1 U.S. government and agency securities 518.4 — (5.3) 513.1 Non-U.S. government and agency securities 68.8 — (0.7) 68.1 Asset-backed securities 481.7 1.0 (2.5) 480.2 Total available-for-sale investments $ 4,839.0 $ 10.2 $ (28.0) $ 4,821.2 July 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Certificates of deposit $ 155.3 $ — $ — $ 155.3 Commercial paper 69.1 — — 69.1 Corporate debt securities 19.5 — — 19.5 U.S. government and agency securities 10.0 — — 10.0 Non-U.S. government and agency securities 5.0 0.1 — 5.1 Total available-for-sale cash equivalents $ 258.9 $ 0.1 $ — $ 259.0 Investments: Certificates of deposit $ 116.5 $ — $ (0.1) $ 116.4 Commercial paper 79.1 — (0.1) 79.0 Corporate debt securities 1,276.8 1.3 (11.9) 1,266.2 U.S. government and agency securities 928.1 0.1 (11.8) 916.4 Non-U.S. government and agency securities 17.6 — (0.2) 17.4 Asset-backed securities $ 173.4 $ 0.2 $ (1.1) $ 172.5 Total available-for-sale investments $ 2,591.5 $ 1.6 $ (25.2) $ 2,567.9 |
Schedule of contractual maturities of available-for-sale debt securities | The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of January 31, 2023, by contractual years-to-maturity (in millions): Amortized Cost Fair Value Due within one year $ 2,217.6 $ 2,206.8 Due between one and three years 2,658.4 2,651.4 Due between three to five years 123.8 123.5 Due between five to ten years 45.4 45.7 Total $ 5,045.2 $ 5,027.4 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Receivables [Abstract] | |
Short- and long-term financing receivables | The following table summarizes our short-term and long-term financing receivables as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Short-term financing receivables, gross $ 174.3 $ 112.6 Allowance for credit losses (2.5) (1.3) Short-term financing receivables, net $ 171.8 $ 111.3 Long-term financing receivables, gross $ 222.0 $ 194.6 Allowance for credit losses (3.9) (2.5) Long-term financing receivables, net $ 218.1 $ 192.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of purchase consideration | The total purchase consideration for the acquisition of Cider was $198.3 million, which consisted of the following (in millions): Amount Cash $ 198.0 Fair value of replacement awards 0.3 Total $ 198.3 |
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 $ 164.6 Identified intangible assets 27.8 Cash 12.4 Net liabilities assumed (6.5) Total $ 198.3 |
Schedule of finite-lived intangible assets acquired as part of business combination | The following table presents details of the identified intangible asset acquired (in millions, except years): Fair Value Estimated Useful Life Developed technology $ 27.8 5 years |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents details of our goodwill during the six months ended January 31, 2023 (in millions): Amount Balance as of July 31, 2022 $ 2,747.7 Goodwill acquired 164.6 Balance as of January 31, 2023 $ 2,912.3 |
Schedule of purchased finite-lived intangible assets by major class | The following table presents details of our purchased intangible assets as of January 31, 2023 and July 31, 2022 (in millions): January 31, 2023 July 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Developed technology $ 628.5 $ (390.2) $ 238.3 $ 600.7 $ (347.9) $ 252.8 Customer relationships 172.7 (63.1) 109.6 172.7 (52.2) 120.5 Acquired intellectual property 14.6 (5.4) 9.2 11.3 (4.8) 6.5 Trade name and trademarks 9.4 (9.4) — 9.4 (9.4) — Other 0.9 (0.2) 0.7 0.9 (0.1) 0.8 Total intangible assets subject to amortization 826.1 (468.3) 357.8 795.0 (414.4) 380.6 Intangible assets not subject to amortization: In-process research and development 3.9 — 3.9 3.9 — 3.9 Total purchased intangible assets $ 830.0 $ (468.3) $ 361.7 $ 798.9 $ (414.4) $ 384.5 |
Future amortization expense of intangible assets | The following table summarizes estimated future amortization expense of our intangible assets subject to amortization as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Future amortization expense $ 357.8 $ 50.7 $ 97.1 $ 83.4 $ 61.6 $ 34.6 $ 30.4 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible senior notes details | The following table presents details of our Notes (number of shares in millions): Conversion Rate per $1,000 Principal Initial Conversion Price Convertible Date Initial Number of Shares 2023 Notes 11.2635 $ 88.78 April 1, 2023 19.1 2025 Notes 10.0806 $ 99.20 March 1, 2025 20.1 |
Components of convertible senior notes | The following table sets forth the components of the Notes (in millions): January 31, 2023 July 31, 2022 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total Liability component: Principal $ 1,691.9 $ 1,999.4 $ 3,691.3 $ 1,691.9 $ 1,999.4 $ 3,691.3 Less: debt discount and debt issuance costs, net of amortization (1.2) (9.8) (11.0) (2.6) (11.9) (14.5) Net carrying amount $ 1,690.7 $ 1,989.6 $ 3,680.3 $ 1,689.3 $ 1,987.5 $ 3,676.8 |
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 January 31, Six Months Ended January 31, 2023 2022 2023 2022 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total 2023 Notes 2025 Notes Total Contractual interest expense $ 3.2 $ 2.0 $ 5.2 $ 3.1 $ 1.9 $ 5.0 $ 6.4 $ 3.8 $ 10.2 $ 6.3 $ 3.8 $ 10.1 Amortization of debt issuance costs 0.7 1.0 1.7 0.7 1.1 1.8 1.4 2.1 3.5 1.4 2.2 3.6 Total interest expense $ 3.9 $ 3.0 $ 6.9 $ 3.8 $ 3.0 $ 6.8 $ 7.8 $ 5.9 $ 13.7 $ 7.7 $ 6.0 $ 13.7 Effective interest rate 0.9 % 0.6 % 0.9 % 0.6 % 0.9 % 0.6 % 0.9 % 0.6 % |
Note hedges details | The following table presents details of our Note Hedges (in millions): Initial Number of Shares Aggregate Purchase 2023 Note Hedges 19.1 $ 332.0 2025 Note Hedges 20.1 $ 370.8 |
Warrants details | The following table presents details of our Warrants (in millions, except per share data): Initial Number Strike Price Aggregate 2023 Warrants 19.1 $ 139.27 $ 145.4 2025 Warrants 20.1 $ 136.16 $ 202.8 |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Manufacturing purchase commitments | |
Aggregate Future Purchase Commitments | |
Schedule of future non-cancelable purchase commitments for inventory and cloud services | The following table presents details of the aggregate future minimum or fixed purchase commitments under these arrangements, excluding obligations under contracts that we can cancel as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Manufacturing purchase commitments $ 293.5 $ 120.5 $ 98.0 $ 35.0 $ 40.0 $ — $ — |
Other purchase commitments | |
Aggregate Future Purchase Commitments | |
Schedule of future non-cancelable purchase commitments for inventory and cloud services | The following table presents details of the aggregate future non-cancelable purchase commitments under these agreements as of January 31, 2023 (in millions): Fiscal years ending July 31, Total Remaining 2023 2024 2025 2026 2027 2028 and Thereafter Other purchase commitments $ 1,701.2 $ 54.2 $ 228.1 $ 416.7 $ 517.5 $ 483.9 $ 0.8 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Share repurchase program | The following table summarizes the share repurchase activity under our share repurchase program (in millions, except per share amounts): Three and Six Months Ended January 31, 2023 2022 Number of shares repurchased 1.8 3.1 Weighted average price per share (1) $ 138.65 $ 177.93 Aggregate purchase price (1) $ 250.0 $ 550.0 ______________ (1) Includes transaction costs |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted stock unit (“RSU”) and performance-based stock unit (“PSU”) activities | The following table summarizes the RSU and PSU activity under our stock plans during the six months ended January 31, 2023 (in millions, except per share amounts): RSUs Outstanding PSUs Outstanding Number of Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Number of Shares Weighted-Average Grant-Date Fair Value Per Share Aggregate Intrinsic Value Balance—July 31, 2022 14.8 $ 115.51 $ 2,456.9 3.1 $ 106.38 $ 513.7 Granted (1) 4.8 $ 163.23 2.8 $ 141.40 Vested (3.4) $ 102.07 (1.2) $ 115.67 Forfeited (0.8) $ 119.48 (0.2) $ 135.26 Balance—January 31, 2023 15.4 $ 133.47 $ 2,442.8 4.5 $ 124.21 $ 711.5 ______________ (1) For PSUs, shares granted represent the aggregate maximum number of shares that may be earned and issued with respect to these awards over their full terms. |
Schedule of assumptions used and resulting grant-date fair values of our PSUs | The following table summarizes the assumptions used and the grant-date fair value of these PSUs granted: Six Months Ended January 31, 2023 2022 Volatility 39.6% - 44.8% 36.0% - 38.0% Expected term (in years) 1.0 - 4.0 1.9 - 3.0 Dividend yield 0.0 % 0.0 % Risk-free interest rate 3.2% - 3.6% 0.2% - 0.4% Grant-date fair value per share $105.60 - $280.41 $137.16 - $140.22 |
Schedule of performance stock option ("PSO") activity | The following table summarizes the PSO activity under our stock plans during the six months ended January 31, 2023 (in millions, except per share amounts): PSOs Outstanding Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Balance—July 31, 2022 8.0 $ 64.85 3.2 $ 809.3 Balance—January 31, 2023 8.0 $ 64.85 2.7 $ 747.7 Exercisable—January 31, 2023 8.0 $ 64.85 2.7 $ 747.7 |
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 Six Months Ended January 31, January 31, 2023 2022 2023 2022 Cost of product revenue $ 2.6 $ 2.3 $ 5.0 $ 4.6 Cost of subscription and support revenue 30.7 27.7 59.5 54.4 Research and development 129.7 123.6 247.7 249.2 Sales and marketing 88.4 79.8 175.8 153.1 General and administrative 38.5 31.7 67.9 64.1 Total share-based compensation $ 289.9 $ 265.1 $ 555.9 $ 525.4 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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 income (loss) per share of common stock (in millions, except per share data): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Net income (loss) $ 84.2 $ (93.5) $ 104.2 $ (197.1) Weighted-average shares used to compute net income (loss) per share, basic 302.3 294.5 301.0 293.7 Weighted-average effect of potentially dilutive securities: Convertible senior notes 15.2 — 16.5 — Warrants related to the issuance of convertible senior notes 4.1 — 6.0 — Employee equity incentive plans 10.0 — 11.5 — Weighted-average shares used to compute net income (loss) per share, diluted 331.6 294.5 335.0 293.7 Net income (loss) per share, basic $ 0.28 $ (0.32) $ 0.35 $ (0.67) Net income (loss) per share, diluted $ 0.25 $ (0.32) $ 0.31 $ (0.67) |
Schedule of antidilutive securities excluded from the computation of net loss per share | The following securities were excluded from the computation of diluted net income (loss) per share of common stock as their effect would have been antidilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the applicable period (in millions): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Convertible senior notes — 39.2 — 39.2 Warrants related to the issuance of convertible senior notes — 39.2 — 39.2 Employee equity incentive plans 8.9 32.0 5.8 32.0 Total 8.9 110.4 5.8 110.4 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income (expense), net | The following table sets forth the components of other income (expense), net (in millions): Three Months Ended Six Months Ended January 31, January 31, 2023 2022 2023 2022 Interest income $ 56.6 $ 1.9 $ 86.0 $ 3.3 Foreign currency exchange gains (losses), net (7.3) (1.7) (2.9) (5.6) Other 2.1 (0.3) (5.7) 0.6 Total other income (expense), net $ 51.4 $ (0.1) $ 77.4 $ (1.7) |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | Sep. 13, 2022 $ / shares | Jan. 31, 2023 $ / shares | Jul. 31, 2022 $ / shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Stock split ratio | 3 | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.0001 | $ 0.0001 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue (Geographic Theater) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue | ||||
Revenue: | $ 1,655.1 | $ 1,316.9 | $ 3,218.5 | $ 2,564.3 |
United States | ||||
Disaggregation of Revenue | ||||
Revenue: | 1,042.3 | 858.6 | 2,048.6 | 1,670.3 |
Other Americas | ||||
Disaggregation of Revenue | ||||
Revenue: | 74.7 | 57.3 | 139.1 | 112.3 |
Total Americas | ||||
Disaggregation of Revenue | ||||
Revenue: | 1,117 | 915.9 | 2,187.7 | 1,782.6 |
Europe, the Middle East, and Africa (“EMEA”) | ||||
Disaggregation of Revenue | ||||
Revenue: | 341.5 | 252.2 | 649.4 | 486 |
Asia Pacific and Japan (“APAC”) | ||||
Disaggregation of Revenue | ||||
Revenue: | $ 196.6 | $ 148.8 | $ 381.4 | $ 295.7 |
Revenue (Disaggregation of Re_2
Revenue (Disaggregation of Revenue (Type of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue: | ||||
Revenue: | $ 1,655.1 | $ 1,316.9 | $ 3,218.5 | $ 2,564.3 |
Product | ||||
Revenue: | ||||
Revenue: | 352.9 | 308 | 682.9 | 603.5 |
Subscription | ||||
Revenue: | ||||
Revenue: | 815.4 | 618 | 1,579.4 | 1,196.8 |
Support | ||||
Revenue: | ||||
Revenue: | 486.8 | 390.9 | 956.2 | 764 |
Subscription and support | ||||
Revenue: | ||||
Revenue: | $ 1,302.2 | $ 1,008.9 | $ 2,535.6 | $ 1,960.8 |
Revenue (Deferred Revenue) (Det
Revenue (Deferred Revenue) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from opening deferred revenue balance | $ 2,100 | $ 1,600 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations) (Details) $ in Billions | Jan. 31, 2023 USD ($) |
Remaining Performance Obligations, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 8.8 |
Remaining Performance Obligations, Expected Timing of Satisfaction, Start Date: 2023-02-01 | |
Remaining Performance Obligations, Expected Timing of Satisfaction | |
Remaining performance obligations | $ 4.4 |
Remaining performance obligations, expected timing of satisfaction, period | 12 months |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | $ 862.1 | $ 1,464.2 |
Short-term investments | 2,000.6 | 1,516 |
Long-term investments | 2,820.6 | 1,051.9 |
Total prepaid expenses and other current assets | 25.1 | 2.4 |
Total other assets | 9.1 | 0.7 |
Total assets measured at fair value | 5,717.5 | 4,035.2 |
Total accrued and other liabilities | 14.2 | 32.4 |
Total other long-term liabilities | 2.6 | 0.8 |
Total liabilities measured at fair value | 16.8 | 33.2 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 655.9 | 1,205.2 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total prepaid expenses and other current assets | 0 | 0 |
Total other assets | 0 | 0 |
Total assets measured at fair value | 655.9 | 1,205.2 |
Total accrued and other liabilities | 0 | 0 |
Total other long-term liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 206.2 | 259 |
Short-term investments | 2,000.6 | 1,516 |
Long-term investments | 2,820.6 | 1,051.9 |
Total prepaid expenses and other current assets | 25.1 | 2.4 |
Total other assets | 9.1 | 0.7 |
Total assets measured at fair value | 5,061.6 | 2,830 |
Total accrued and other liabilities | 14.2 | 32.4 |
Total other long-term liabilities | 2.6 | 0.8 |
Total liabilities measured at fair value | 16.8 | 33.2 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Total prepaid expenses and other current assets | 0 | 0 |
Total other assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Total accrued and other liabilities | 0 | 0 |
Total other long-term liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 655.9 | 1,205.2 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 655.9 | 1,205.2 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 6.5 | 155.3 |
Short-term investments | 210.8 | 116.4 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 6.5 | 155.3 |
Short-term investments | 210.8 | 116.4 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 175.2 | 69.1 |
Short-term investments | 630.9 | 79 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 175.2 | 69.1 |
Short-term investments | 630.9 | 79 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 24.5 | 19.5 |
Short-term investments | 701 | 505 |
Long-term investments | 2,217.1 | 761.2 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring 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 Basis | ||
Cash equivalents | 24.5 | 19.5 |
Short-term investments | 701 | 505 |
Long-term investments | 2,217.1 | 761.2 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring 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 Basis | ||
Cash equivalents | 0 | 10 |
Short-term investments | 444.2 | 798.2 |
Long-term investments | 68.9 | 118.2 |
U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring 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 Basis | ||
Cash equivalents | 0 | 10 |
Short-term investments | 444.2 | 798.2 |
Long-term investments | 68.9 | 118.2 |
U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Non-U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 5.1 |
Short-term investments | 13.7 | 17.4 |
Long-term investments | 54.4 | 0 |
Non-U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Non-U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 5.1 |
Short-term investments | 13.7 | 17.4 |
Long-term investments | 54.4 | 0 |
Non-U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term investments | 480.2 | 172.5 |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term investments | 0 | 0 |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term investments | 480.2 | 172.5 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Long-term investments | 0 | 0 |
Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Foreign currency forward contracts, assets, current | 25.1 | 2.4 |
Foreign currency forward contracts, assets, noncurrent | 9.1 | 0.7 |
Foreign currency forward contracts, liability, current | 14.2 | 32.4 |
Foreign currency forward contracts, liability, noncurrent | 2.6 | 0.8 |
Foreign currency forward contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Foreign currency forward contracts, assets, current | 0 | 0 |
Foreign currency forward contracts, assets, noncurrent | 0 | 0 |
Foreign currency forward contracts, liability, current | 0 | 0 |
Foreign currency forward contracts, liability, noncurrent | 0 | 0 |
Foreign currency forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Foreign currency forward contracts, assets, current | 25.1 | 2.4 |
Foreign currency forward contracts, assets, noncurrent | 9.1 | 0.7 |
Foreign currency forward contracts, liability, current | 14.2 | 32.4 |
Foreign currency forward contracts, liability, noncurrent | 2.6 | 0.8 |
Foreign currency forward contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
Foreign currency forward contracts, assets, current | 0 | 0 |
Foreign currency forward contracts, assets, noncurrent | 0 | 0 |
Foreign currency forward contracts, liability, current | 0 | 0 |
Foreign currency forward contracts, liability, noncurrent | $ 0 | $ 0 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Available-for-Sale Securities) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Securities, Available-for-sale | ||
Amortized Cost | $ 5,045.2 | |
Fair Value | 5,027.4 | |
Cash equivalents: | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 206.2 | $ 258.9 |
Unrealized Gains | 0 | 0.1 |
Unrealized Losses | 0 | 0 |
Fair Value | 206.2 | 259 |
Cash equivalents: | Certificates of deposit | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 6.5 | 155.3 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 6.5 | 155.3 |
Cash equivalents: | Commercial paper | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 175.2 | 69.1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 175.2 | 69.1 |
Cash equivalents: | Corporate debt securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 24.5 | 19.5 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 24.5 | 19.5 |
Cash equivalents: | U.S. government and agency securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 10 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 10 | |
Cash equivalents: | Non-U.S. government and agency securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 5 | |
Unrealized Gains | 0.1 | |
Unrealized Losses | 0 | |
Fair Value | 5.1 | |
Investments: | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 4,839 | 2,591.5 |
Unrealized Gains | 10.2 | 1.6 |
Unrealized Losses | (28) | (25.2) |
Fair Value | 4,821.2 | 2,567.9 |
Investments: | Certificates of deposit | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 210.8 | 116.5 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (0.1) |
Fair Value | 210.8 | 116.4 |
Investments: | Commercial paper | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 631.4 | 79.1 |
Unrealized Gains | 0.2 | 0 |
Unrealized Losses | (0.7) | (0.1) |
Fair Value | 630.9 | 79 |
Investments: | Corporate debt securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 2,927.9 | 1,276.8 |
Unrealized Gains | 9 | 1.3 |
Unrealized Losses | (18.8) | (11.9) |
Fair Value | 2,918.1 | 1,266.2 |
Investments: | U.S. government and agency securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 518.4 | 928.1 |
Unrealized Gains | 0 | 0.1 |
Unrealized Losses | (5.3) | (11.8) |
Fair Value | 513.1 | 916.4 |
Investments: | Non-U.S. government and agency securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 68.8 | 17.6 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.7) | (0.2) |
Fair Value | 68.1 | 17.4 |
Investments: | Asset-backed securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost | 481.7 | 173.4 |
Unrealized Gains | 1 | 0.2 |
Unrealized Losses | (2.5) | (1.1) |
Fair Value | $ 480.2 | $ 172.5 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Available-for-sale Debt Securities Narrative) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than 12 months | $ (17.2) | $ (24.8) |
Available-for-sale debt securities in a continuous unrealized loss position for less than 12 months | 2,500 | $ 2,000 |
Gross unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for more than 12 months | (10.8) | |
Available-for-sale debt securities in a continuous unrealized loss position for more than 12 months | $ 571.6 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Available-for-Sale Securities, Contractual Maturities) (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Amortized Cost | |
Due within one year | $ 2,217.6 |
Due between one and three years | 2,658.4 |
Due between three to five years | 123.8 |
Due between five to ten years | 45.4 |
Amortized Cost | 5,045.2 |
Fair Value | |
Due within one year | 2,206.8 |
Due between one and three years | 2,651.4 |
Due between three to five years | 123.5 |
Due between five to ten years | 45.7 |
Fair Value | $ 5,027.4 |
Cash Equivalents and Investme_6
Cash Equivalents and Investments (Marketable Equity Securities) (Details) - Cash and cash equivalents - Marketable equity securities - Money market funds - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
Marketable Equity Securities | |||||
Carrying value | $ 655,900,000 | $ 655,900,000 | $ 1,200,000,000 | ||
Unrealized gains or losses recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Financing Receivables (Details)
Financing Receivables (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Receivables [Abstract] | ||
Short-term financing receivables, gross | $ 174.3 | $ 112.6 |
Allowance for credit losses | (2.5) | (1.3) |
Short-term financing receivables, net | 171.8 | 111.3 |
Long-term financing receivables, gross | 222 | 194.6 |
Allowance for credit losses | (3.9) | (2.5) |
Long-term financing receivables, net | $ 218.1 | $ 192.1 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Jul. 31, 2022 | |
Derivative | ||
Total notional amount | $ 1,100 | $ 856.9 |
Unrealized losses (gains) in AOCI related to cash flow hedges | (14.2) | 24.8 |
Losses (Gains) expected to be recognized into earnings within the next 12 months | $ (11.9) | $ 22 |
Foreign Exchange Contract | ||
Derivative | ||
Maximum contract term of cash flow hedge | 24 months |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Consideration (Additional Information) (Details) - Cider Security Ltd. $ in Millions | Dec. 20, 2022 USD ($) |
Business Acquisition | |
Cash | $ 198 |
Fair value of replacement awards | 0.3 |
Total | $ 198.3 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Cider Security Ltd. shares in Millions, $ in Millions | Dec. 20, 2022 USD ($) shares |
Business Acquisition | |
Business Acquisition Replacement Equity Awards Fair Value | $ | $ 48.6 |
Restricted Stock [Member] | |
Business Acquisition | |
Business acquisition, shares issued (in shares) | shares | 0.2 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Dec. 20, 2022 | Jul. 31, 2022 |
Business Acquisition | |||
Goodwill | $ 2,912.3 | $ 2,747.7 | |
Cider Security Ltd. | |||
Business Acquisition | |||
Goodwill | $ 164.6 | ||
Identified intangible assets | 27.8 | ||
Cash | 12.4 | ||
Net liabilities assumed | (6.5) | ||
Total | $ 198.3 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired as Part of Business Combination (Details) - Cider Security Ltd. - Developed technology $ in Millions | Dec. 20, 2022 USD ($) |
Business Acquisition | |
Fair Value | $ 27.8 |
Estimated useful life | 5 years |
Intangible Assets (Goodwill) (D
Intangible Assets (Goodwill) (Details) $ in Millions | 6 Months Ended |
Jan. 31, 2023 USD ($) | |
Goodwill Rollforward | |
Balance as of July 31, 2022 | $ 2,747.7 |
Goodwill acquired | 164.6 |
Balance as of January 31, 2023 | $ 2,912.3 |
Intangible Assets (Purchased In
Intangible Assets (Purchased Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | $ 826.1 | $ 795 |
Total purchased intangible assets, gross carrying amount | 830 | 798.9 |
Accumulated amortization | (468.3) | (414.4) |
Total intangible assets subject to amortization, net carrying amount | 357.8 | 380.6 |
Total purchased intangible assets, net carrying amount | 361.7 | 384.5 |
In-process research and development | ||
Intangible assets not subject to amortization: | ||
In-process research and development | 3.9 | 3.9 |
Developed technology | ||
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | 628.5 | 600.7 |
Accumulated amortization | (390.2) | (347.9) |
Total intangible assets subject to amortization, net carrying amount | 238.3 | 252.8 |
Customer relationships | ||
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | 172.7 | 172.7 |
Accumulated amortization | (63.1) | (52.2) |
Total intangible assets subject to amortization, net carrying amount | 109.6 | 120.5 |
Acquired intellectual property | ||
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | 14.6 | 11.3 |
Accumulated amortization | (5.4) | (4.8) |
Total intangible assets subject to amortization, net carrying amount | 9.2 | 6.5 |
Trade name and trademarks | ||
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | 9.4 | 9.4 |
Accumulated amortization | (9.4) | (9.4) |
Total intangible assets subject to amortization, net carrying amount | 0 | 0 |
Other | ||
Intangible assets subject to amortization: | ||
Total intangible assets subject to amortization, gross carrying amount | 0.9 | 0.9 |
Accumulated amortization | (0.2) | (0.1) |
Total intangible assets subject to amortization, net carrying amount | $ 0.7 | $ 0.8 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 24.8 | $ 31.7 | $ 53.9 | $ 63.5 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2023 | $ 50.7 | |
2024 | 97.1 | |
2025 | 83.4 | |
2026 | 61.6 | |
2027 | 34.6 | |
2028 and Thereafter | 30.4 | |
Total intangible assets subject to amortization, net carrying amount | $ 357.8 | $ 380.6 |
Debt (Additional Details) (Deta
Debt (Additional Details) (Details) $ in Billions | Jun. 03, 2020 USD ($) day | Jul. 31, 2018 USD ($) day | Jan. 31, 2023 USD ($) | Jul. 31, 2022 USD ($) |
2023 Notes | ||||
Debt Instrument, Redemption | ||||
Aggregate principal amount | $ | $ 1.7 | |||
Contractual interest rate (in percentage) | 0.75% | |||
Repurchase price as percentage of principal amount in event of change (in percentage) | 100% | |||
2023 Notes | Level 2 | ||||
Debt Instrument, Redemption | ||||
Fair value of convertible senior notes | $ | $ 3 | $ 3.2 | ||
2025 Notes | ||||
Debt Instrument, Redemption | ||||
Aggregate principal amount | $ | $ 2 | |||
Contractual interest rate (in percentage) | 0.375% | |||
Threshold percentage of stock price trigger (in percentage) | 130% | |||
Threshold trading days (in days) | 20 | |||
Threshold consecutive trading days (in days) | 30 | |||
Redemption price (in percentage) | 100% | |||
Repurchase price as percentage of principal amount in event of change (in percentage) | 100% | |||
2025 Notes | Level 2 | ||||
Debt Instrument, Redemption | ||||
Fair value of convertible senior notes | $ | $ 3.3 | $ 3.5 | ||
Option to Convert - 2023 Notes | ||||
Debt Instrument, Redemption | ||||
Threshold percentage of stock price trigger (in percentage) | 130% | |||
Threshold trading days (in days) | 20 | |||
Threshold consecutive trading days (in days) | 30 | |||
Threshold business days, per $1,000 principal (in days) | 5 | |||
Threshold consecutive trading days, per $1,000 principal (in days) | 5 | |||
Threshold percentage of notes price trigger, per $1,000 principal (in percentage) | 98% | |||
Option to Convert - 2025 Notes | ||||
Debt Instrument, Redemption | ||||
Threshold percentage of stock price trigger (in percentage) | 130% | |||
Threshold trading days (in days) | 20 | |||
Threshold consecutive trading days (in days) | 30 | |||
Threshold business days, per $1,000 principal (in days) | 5 | |||
Threshold consecutive trading days, per $1,000 principal (in days) | 5 | |||
Threshold percentage of notes price trigger, per $1,000 principal (in percentage) | 98% |
Debt (Details of Our Notes)
Debt (Details of Our Notes) shares in Millions | Jun. 03, 2020 shares $ / shares | Jul. 31, 2018 shares $ / shares |
2023 Notes | ||
Debt Instrument | ||
Initial conversion rate (in shares per $1,000 principal amount) | 11.2635 | |
Initial conversion price (in usd per share) | $ / shares | $ 88.78 | |
Number of common stock convertible at initial conversion rate (in shares) | shares | 19.1 | |
2025 Notes | ||
Debt Instrument | ||
Initial conversion rate (in shares per $1,000 principal amount) | 10.0806 | |
Initial conversion price (in usd per share) | $ / shares | $ 99.20 | |
Number of common stock convertible at initial conversion rate (in shares) | shares | 20.1 |
Debt (Components of Convertible
Debt (Components of Convertible Senior Notes) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Instrument, Redemption | ||
Principal | $ 3,691.3 | $ 3,691.3 |
Less: debt discount and debt issuance costs, net of amortization | (11) | (14.5) |
Net carrying amount | 3,680.3 | 3,676.8 |
2023 Notes | ||
Debt Instrument, Redemption | ||
Principal | 1,691.9 | 1,691.9 |
Less: debt discount and debt issuance costs, net of amortization | (1.2) | (2.6) |
Net carrying amount | 1,690.7 | 1,689.3 |
2025 Notes | ||
Debt Instrument, Redemption | ||
Principal | 1,999.4 | 1,999.4 |
Less: debt discount and debt issuance costs, net of amortization | (9.8) | (11.9) |
Net carrying amount | $ 1,989.6 | $ 1,987.5 |
Debt (Schedule of Interest Expe
Debt (Schedule of Interest Expense Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Debt Instrument, Redemption | ||||
Contractual interest expense | $ 5.2 | $ 5 | $ 10.2 | $ 10.1 |
Amortization of debt issuance costs | 1.7 | 1.8 | 3.5 | 3.6 |
Total interest expense | 6.9 | 6.8 | 13.7 | 13.7 |
2023 Notes | ||||
Debt Instrument, Redemption | ||||
Contractual interest expense | 3.2 | 3.1 | 6.4 | 6.3 |
Amortization of debt issuance costs | 0.7 | 0.7 | 1.4 | 1.4 |
Total interest expense | $ 3.9 | $ 3.8 | $ 7.8 | $ 7.7 |
Effective interest rate | 0.90% | 0.90% | 0.90% | 0.90% |
2025 Notes | ||||
Debt Instrument, Redemption | ||||
Contractual interest expense | $ 2 | $ 1.9 | $ 3.8 | $ 3.8 |
Amortization of debt issuance costs | 1 | 1.1 | 2.1 | 2.2 |
Total interest expense | $ 3 | $ 3 | $ 5.9 | $ 6 |
Effective interest rate | 0.60% | 0.60% | 0.60% | 0.60% |
Debt (Note Hedges) (Details)
Debt (Note Hedges) (Details) - USD ($) shares in Millions, $ in Millions | Jun. 03, 2020 | Jul. 31, 2018 |
2023 Note Hedges | ||
Schedule of Note Hedge Transactions | ||
Shares of common stock covered by note hedges (in shares) | 19.1 | |
Aggregate amount paid to purchase note hedges - additional paid-in capital | $ 332 | |
2025 Note Hedges | ||
Schedule of Note Hedge Transactions | ||
Shares of common stock covered by note hedges (in shares) | 20.1 | |
Aggregate amount paid to purchase note hedges - additional paid-in capital | $ 370.8 |
Debt (Warrants) (Details)
Debt (Warrants) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 03, 2020 | Jul. 31, 2018 |
2023 Warrants | ||
Class of Warrant or Right | ||
Warrants sold, shares authorized to sell to counterparties (in shares) | 19.1 | |
Strike price of warrants (in usd per share) | $ 139.27 | |
Proceeds from issuance of warrants | $ 145.4 | |
2025 Warrants | ||
Class of Warrant or Right | ||
Warrants sold, shares authorized to sell to counterparties (in shares) | 20.1 | |
Strike price of warrants (in usd per share) | $ 136.16 | |
Proceeds from issuance of warrants | $ 202.8 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) - Revolving credit facility - USD ($) | Sep. 04, 2018 | Jan. 31, 2023 |
Line of Credit Facility | ||
Current borrowing capacity | $ 400,000,000 | |
Option for additional borrowing capacity | $ 350,000,000 | |
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) | 91 days | |
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 | $ 400,000,000 | |
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% | |
Base Rate | Maximum | ||
Line of Credit Facility | ||
Spread on variable rate | 0.75% | |
LIBOR | Minimum | ||
Line of Credit Facility | ||
Spread on variable rate | 1% | |
LIBOR | Maximum | ||
Line of Credit Facility | ||
Spread on variable rate | 1.75% |
Commitments and Contingencies_3
Commitments and Contingencies (Manufacturing Purchase Commitments) (Details) - Manufacturing purchase commitments $ in Millions | Jan. 31, 2023 USD ($) |
Aggregate Future Purchase Commitments | |
Remaining 2023 | $ 120.5 |
2024 | 98 |
2025 | 35 |
2026 | 40 |
2027 | 0 |
2028 and Thereafter | 0 |
Total | $ 293.5 |
Commitments and Contingencies_4
Commitments and Contingencies (Other Purchase Commitments) (Details) $ in Millions | 6 Months Ended |
Jan. 31, 2023 USD ($) | |
Other purchase commitments | |
Aggregate Future Purchase Commitments | |
Remaining 2023 | $ 54.2 |
2024 | 228.1 |
2025 | 416.7 |
2026 | 517.5 |
2027 | 483.9 |
2028 and Thereafter | 0.8 |
Total | 1,701.2 |
Service provider | |
Aggregate Future Purchase Commitments | |
Minimum purchase commitment | $ 159.6 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Aug. 31, 2022 | Aug. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2023 | Feb. 28, 2019 | |
Equity [Abstract] | |||||
Share repurchase, authorized amount | $ 3,300 | $ 1,000 | |||
Stock repurchase program, increase in authorized amount | $ 915 | $ 676.1 | $ 700 | ||
Stock repurchase, remaining authorized repurchase amount | $ 750 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Share Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Equity [Abstract] | ||
Number of shares repurchased (in shares) | 1.8 | 3.1 |
Weighted average price per share (in dollars per share) | $ 138.65 | $ 177.93 |
Aggregate purchase price | $ 250 | $ 550 |
Current period payments for prior period repurchases of common stock | $ 22.7 |
Equity Award Plans (Restricted
Equity Award Plans (Restricted Stock Unit (RSU) and Performance-Based Stock Unit (PSU) Activities) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
Jan. 31, 2023 | Jul. 31, 2022 | |
RSUs | ||
RSUs and PSUs, Outstanding Roll Forward | ||
Balance, beginning (in shares) | 14.8 | |
Granted (in shares) | 4.8 | |
Vested (in shares) | (3.4) | |
Forfeited (in shares) | (0.8) | |
Balance, ending (in shares) | 15.4 | |
RSUs and PSUs, Outstanding, Weighted-Average Grant-Date Fair Value Per Share | ||
Balance, beginning (in usd per share) | $ 115.51 | |
Granted (in usd per share) | 163.23 | |
Vested (in usd per share) | 102.07 | |
Forfeited (in usd per share) | 119.48 | |
Balance, ending (in usd per share) | $ 133.47 | |
RSUs and PSUs, Additional Disclosures | ||
Aggregate intrinsic value | $ 2,442.8 | $ 2,456.9 |
PSUs | ||
RSUs and PSUs, Outstanding Roll Forward | ||
Balance, beginning (in shares) | 3.1 | |
Granted (in shares) | 2.8 | |
Vested (in shares) | (1.2) | |
Forfeited (in shares) | (0.2) | |
Balance, ending (in shares) | 4.5 | |
RSUs and PSUs, Outstanding, Weighted-Average Grant-Date Fair Value Per Share | ||
Balance, beginning (in usd per share) | $ 106.38 | |
Granted (in usd per share) | 141.40 | |
Vested (in usd per share) | 115.67 | |
Forfeited (in usd per share) | 135.26 | |
Balance, ending (in usd per share) | $ 124.21 | |
RSUs and PSUs, Additional Disclosures | ||
Aggregate intrinsic value | $ 711.5 | $ 513.7 |
Equity Award Plans (Additional
Equity Award Plans (Additional Information) (Details) shares in Millions | 6 Months Ended | |
Jan. 31, 2023 day $ / shares shares | Jan. 31, 2022 shares | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted (in shares) | 4.8 | |
RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 3 years | |
RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 4 years | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted (in shares) | 2.8 | |
PSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 1 year | |
PSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 4 years | |
PSUs with both a service condition and a market condition | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted (in shares) | 0.8 | |
Threshold consecutive trading days (in days) | day | 30 | |
PSUs with both a service condition and a market condition | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Target stock price (in usd per share) | $ / shares | $ 233.33 | |
Award vesting percent | 25% | |
PSUs with both a service condition and a market condition | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Target stock price (in usd per share) | $ / shares | $ 266.67 | |
Award vesting percent | 25% | |
PSUs with both a service condition and a market condition | Share-Based Payment Arrangement, Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Target stock price (in usd per share) | $ / shares | $ 300 | |
Award vesting percent | 25% | |
PSUs with both a service condition and a market condition | Share-based Payment Arrangement, Tranche Four | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Target stock price (in usd per share) | $ / shares | $ 333.33 | |
Award vesting percent | 25% | |
PSUs with both a service condition and a market condition | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 3 years | |
PSUs with both a service condition and a market condition | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting period | 4 years | |
PSUs subject to service, performance, and market conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted (in shares) | 1.6 | 0.6 |
Number of shares authorized (in shares) | 2.3 | |
PSUs subject to service, performance, and market conditions | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 1 year | |
PSUs subject to service, performance, and market conditions | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 3 years | |
PSOs | Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting percent | 25% | |
PSOs | Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting percent | 25% | |
PSOs | Share-Based Payment Arrangement, Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting percent | 25% | |
PSOs | Share-based Payment Arrangement, Tranche Four | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Award vesting percent | 25% | |
PSOs | Minimum | Fiscal Year 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 7 years | |
PSOs | Minimum | Fiscal Year 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 7 years | |
PSOs | Maximum | Fiscal Year 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 7 years 6 months | |
PSOs | Maximum | Fiscal Year 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Service period | 7 years 6 months |
Equity Award Plans (Valuation A
Equity Award Plans (Valuation Assumptions) (Details) - PSUs subject to service, performance, and market conditions - $ / shares | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected minimum volatility rate (in percentage) | 39.60% | 36% |
Expected maximum volatility rate (in percentage) | 44.80% | 38% |
Expected dividend rate (in percentage) | 0% | 0% |
Minimum risk-free interest rate (in percentage) | 3.20% | 0.20% |
Maximum risk-free interest rate (in percentage) | 3.60% | 0.40% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected term (in years) | 1 year | 1 year 10 months 24 days |
Share price | $ 105.60 | $ 137.16 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected term (in years) | 4 years | 3 years |
Share price | $ 280.41 | $ 140.22 |
Equity Award Plans (Performance
Equity Award Plans (Performance Stock Option (PSO) Activities) (Details) - PSOs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Jul. 31, 2022 | |
PSOs, Outstanding Roll Forward | ||
Balance, beginning (in shares) | 8 | |
Balance, ending (in shares) | 8 | 8 |
Options exercisable (in shares) | 8 | |
PSOs, Outstanding, Weighted-Average Exercise Price Roll Forward | ||
Balance, beginning (in usd per share) | $ 64.85 | |
Balance, ending (in usd per share) | 64.85 | $ 64.85 |
Options exercisable, weighted-average exercise price (in usd per share) | $ 64.85 | |
PSOs, Additional Disclosures | ||
Weighted-average remaining contractual life (in years) | 2 years 8 months 12 days | 3 years 2 months 12 days |
Options exercisable, weighted-average remaining contractual term (in years) | 2 years 8 months 12 days | |
Aggregate intrinsic value | $ 747.7 | $ 809.3 |
Options exercisable, aggregate intrinsic value | $ 747.7 |
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, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | $ 289.9 | $ 265.1 | $ 555.9 | $ 525.4 |
Cost of revenue | Product | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 2.6 | 2.3 | 5 | 4.6 |
Cost of revenue | Subscription and support | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 30.7 | 27.7 | 59.5 | 54.4 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 129.7 | 123.6 | 247.7 | 249.2 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 88.4 | 79.8 | 175.8 | 153.1 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | $ 38.5 | $ 31.7 | $ 67.9 | $ 64.1 |
Equity Award Plans (Allocatio_2
Equity Award Plans (Allocation of Share-based Compensation, Additional Information) (Details) $ in Billions | 6 Months Ended |
Jan. 31, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unvested share-based awards not yet recognized | $ 2.3 |
Weighted-average recognition period | 2 years 8 months 12 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (in percentage) | 0.20% | (15.70%) | 12.30% | (14.60%) |
Tax audit settlement | $ 28.9 | $ 28.9 | ||
Gross uncertain tax positions | 396 | 396 | ||
Interest and penalties | $ 6.7 | $ 6.7 |
Net Income (Loss) Per Share (Co
Net Income (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 | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 84.2 | $ (93.5) | $ 104.2 | $ (197.1) |
Weighted-average shares used to compute net income (loss) per share, basic (in shares) | 302.3 | 294.5 | 301 | 293.7 |
Weighted-average effect of potentially dilutive securities | ||||
Convertible senior notes (in shares) | 15.2 | 0 | 16.5 | 0 |
Warrants related to the issuance of convertible senior notes (in shares) | 4.1 | 0 | 6 | 0 |
Employee equity incentive plans (in shares) | 10 | 0 | 11.5 | 0 |
Weighted-average shares used to compute net income (loss) per share, diluted (in shares) | 331.6 | 294.5 | 335 | 293.7 |
Net income (loss) per share, basic (in usd per share) | $ 0.28 | $ (0.32) | $ 0.35 | $ (0.67) |
Net income (loss) per share, diluted (in usd per share) | $ 0.25 | $ (0.32) | $ 0.31 | $ (0.67) |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 8.9 | 110.4 | 5.8 | 110.4 |
Convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 0 | 39.2 | 0 | 39.2 |
Warrants related to the issuance of convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 0 | 39.2 | 0 | 39.2 |
Employee equity incentive plans | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities (in shares) | 8.9 | 32 | 5.8 | 32 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 56.6 | $ 1.9 | $ 86 | $ 3.3 |
Foreign currency exchange gains (losses), net | (7.3) | (1.7) | (2.9) | (5.6) |
Other | 2.1 | (0.3) | (5.7) | 0.6 |
Total other income (expense), net | $ 51.4 | $ (0.1) | $ 77.4 | $ (1.7) |