XML 41 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of Business and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jan. 31, 2019
Accounting Policies [Abstract]  
Composition of shares used in the computation of basic and diluted net income per share The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated.
 
Three Months Ended
 
Six Months Ended
(In millions, except per share amounts)
January 31,
2019
 
January 31,
2018
 
January 31,
2019
 
January 31,
2018
Numerator:
 
 
 
 
 
 
 
Net income
$
189

 
$
183

 
$
223

 
$
181

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Shares used in basic per share amounts:
 
 
 
 
 
 
 
Weighted average common shares outstanding
260

 
256

 
260

 
256

 
 
 
 
 
 
 
 
Shares used in diluted per share amounts:
 
 
 
 
 
 
 
Weighted average common shares outstanding
260

 
256

 
260

 
256

Dilutive common equivalent shares from stock options
 
 
 
 
 
 
 
and restricted stock awards
4

 
4

 
4

 
4

Dilutive weighted average common shares outstanding
264

 
260

 
264

 
260

 
 
 
 
 
 
 
 
Basic and diluted net income per share:
 
 
 
 
 
 
 
Basic net income per share
$
0.73

 
$
0.72

 
$
0.86

 
$
0.71

 
 
 
 
 
 
 
 
Diluted net income per share
$
0.72

 
$
0.70

 
$
0.84

 
$
0.70

 
 
 
 
 
 
 
 
Shares excluded from diluted net income per share:
 
 
 
 
 
 
 
Weighted average stock options and restricted stock units that have been excluded from dilutive common equivalent shares outstanding due to their anti-dilutive effect
1

 
2

 
1

 
2
Schedule of effect of new accounting pronouncements The adoption of ASU 2016-18 impacted our previously reported consolidated statement of cash flows as follows:
 
Six Months Ended January 31, 2018
(Dollars in millions)
As Reported
 
ASU 2016-18 Adjustment
 
As Adjusted
Net cash provided by (used in):
 
 
 
 
 
Operating activities
$
174

 
$
—

 
$
174

Investing activities
(486
)
 
50

 
(436
)
Financing activities
258

 
—

 
258

Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents
3

 
—

 
3

Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents
$
(51
)
 
$
50

 
$
(1
)
Adoption of ASU 2014-09 impacted our previously reported results as follows:
 
July 31, 2018
(In millions)
As Reported
 
Topic 606 Adjustment
 
As Adjusted
Prepaid expenses and other current assets
$
184

 
$
18

 
$
202

Long-term deferred income taxes (1)
87

 
(85
)
 
2

Other assets (1)
190

 
23

 
213

Deferred revenue
961

 
(380
)
 
581

Other current liabilities
191

 
7

 
198

Long-term deferred revenue (2)
197

 
(194
)
 
3

Other long-term obligations (2) (3)
123

 
61

 
184

Stockholders’ equity
2,354

 
462

 
2,816

(1) Upon adoption, long-term deferred income taxes are included in other assets on our consolidated balance sheets.
(2) Upon adoption, long-term deferred revenue is included in other long-term obligations on our consolidated balance sheets.
(3) Balance includes long-term deferred income tax liabilities and other long-term obligations on our consolidated balance sheets.
 
Three months ended January 31, 2018
(In millions, except per share amounts)
As Reported
 
Topic 606 Adjustment
 
As Adjusted
Net revenue
$
1,165

 
$
174

 
$
1,339

Selling and marketing expense
469

 
—

 
469

Operating income
20

 
174

 
194

Income tax provision
40

 
(30
)
 
10

Net income (loss)
(21
)
 
204

 
183

 
 
 
 
 
 
Diluted net income (loss) per share
$
(0.08
)
 
$
0.78

 
$
0.70

 
Six Months Ended January 31, 2018
(In millions, except per share amounts)
As Reported
 
Topic 606 Adjustment
 
As Adjusted
Net revenue
$
2,051

 
$
198

 
$
2,249

Selling and marketing expense
777

 
—

 
777

Operating income (loss)
(37
)
 
196

 
159

Income tax benefit
(2
)
 
(23
)
 
(25
)
Net income (loss)
(38
)
 
219

 
181

 
 
 
 
 
 
Diluted net income (loss) per share
$
(0.15
)
 
$
0.85

 
$
0.70