Cash and Cash Equivalents, Investments, and Funds Held for Customers

12 Months Ended

Jul. 31, 2019

Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]

Cash and Cash Equivalents, Investments, and Funds Held for Customers

3. Cash and Cash Equivalents, Investments, and Funds Held for Customers

The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet classification at the dates indicated.

	July 31, 2019				July 31, 2018
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on consolidated balance sheets:
Cash and cash equivalents	$	2,116	$	2,116	$	1,464	$	1,464
Investments	622		624		253		252
Funds held for customers	436		436		368		367
Long-term investments	13		13		13		13
Total cash and cash equivalents, investments, and funds held for customers	$	3,187	$	3,189	$	2,098	$	2,096

The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the dates indicated.

	July 31, 2019				July 31, 2018
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	2,352	$	2,352	$	1,631	$	1,631
Available-for-sale debt securities:
Municipal bonds	5		5		31		31
Corporate notes	798		800		414		412
U.S. agency securities	19		19		9		9
Total available-for-sale debt securities	822		824		454		452
Other long-term investments	13		13		13		13
Total cash and cash equivalents, investments, and funds held for customers	$	3,187	$	3,189	$	2,098	$	2,096

We include realized gains and losses on our available-for-sale debt securities in interest and other income or expense on our consolidated statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the twelve months ended July 31, 2019, 2018 and 2017 were not significant.

We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income or loss in the stockholders’ equity section of our consolidated balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at July 31, 2019 and July 31, 2018 were not significant.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments that we held at July 31, 2019 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at July 31, 2019 were not significant and are due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments. In addition, it is more likely than not that we will not be required to sell them before recovery at par, which may be at maturity.

The following table summarizes our available-for-sale debt securities, included in investments and funds held for customers, classified by the stated maturity date of the security at the dates indicated.

	July 31, 2019				July 31, 2018
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	415	$	416	$	250	$	250
Due within two years	208		208		117		116
Due within three years	163		164		66		65
Due after three years	36		36		21		21
Total available-for-sale debt securities	$	822	$	824	$	454	$	452

Funds held for customers represent cash held on behalf of our customers that is invested in cash and cash equivalents and investment-grade available-for-sale debt securities, restricted for use solely for the purpose of satisfying amounts we owe on behalf of our customers, such as direct deposit payroll funds and payroll taxes.

The following table summarizes our funds held for customers by investment category at the dates indicated.

	July 31, 2019		July 31, 2018		July 31, 2017		July 31, 2016
(In millions)
Restricted cash and restricted cash equivalents	$	236	$	167	$	172	$	104
Available-for-sale debt securities	200		200		200		200
Total funds held for customers	$	436	$	367	$	372	$	304