Description of Business and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Apr. 30, 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				Nine Months Ended
(In millions, except per share amounts)	April 30, 2019		April 30, 2018		April 30, 2019		April 30, 2018
Numerator:
Net income	$	1,378	$	1,186	$	1,601	$	1,367
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding	260		257		260		256
Shares used in diluted per share amounts:
Weighted average common shares outstanding	260		257		260		256
Dilutive common equivalent shares from stock options
and restricted stock awards	4		5		4		4
Dilutive weighted average common shares outstanding	264		262		264		260
Basic and diluted net income per share:
Basic net income per share	$	5.30	$	4.62	$	6.16	$	5.34
Diluted net income per share	$	5.22	$	4.53	$	6.06	$	5.25
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		—		1		2

Schedule of effect of new accounting pronouncements

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 (2)	191		7			198
Long-term deferred revenue (3)	197		(194		)	3
Other long-term obligations (3) (4)	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) Balance includes income taxes payable and other current liabilities on our consolidated balance sheets.

(3) Upon adoption, long-term deferred revenue is included in other long-term obligations on our consolidated balance sheets.

(4) Balance includes long-term deferred income tax liabilities and other long-term obligations on our consolidated balance sheets.

	Three months ended April 30, 2018
(In millions, except per share amounts)	As Reported		Topic 606 Adjustment			As Adjusted
Net revenue	$	2,925	$	(13	)	$	2,912
Selling and marketing expense	549		—			549
Operating income	1,615		(14		)	1,601
Income tax provision	417		—			417
Net income	1,200		(14		)	1,186
Diluted net income per share	$	4.59	$	(0.06	)	$	4.53

	Nine Months Ended April 30, 2018
(In millions, except per share amounts)	As Reported		Topic 606 Adjustment			As Adjusted
Net revenue	$	4,976	$	185		$	5,161
Selling and marketing expense	1,326		—			1,326
Operating income	1,578		182			1,760
Income tax provision	415		(23		)	392
Net income	1,162		205			1,367
Diluted net income per share	$	4.47	$	0.78		$	5.25

The adoption of ASU 2016-18 impacted our previously reported consolidated statement of cash flows as follows:

	Nine Months Ended April 30, 2018
(Dollars in millions)	As Reported			ASU 2016-18 Adjustment		As Adjusted
Net cash provided by (used in):
Operating activities	$	2,149		$	—	$	2,149
Investing activities	(588		)	47		(541		)
Financing activities	(469		)	—		(469		)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents	(7		)	—		(7		)
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	$	1,085		$	47	$	1,132