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Stockholders' Equity (Tables)
 12 Months Ended
Jul. 31, 2020
Share-based Payment Arrangement [Abstract]  
Total share-based compensation expense
The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.
 
Twelve Months Ended July 31,
(In millions except per share amounts)
2020
 
2019
 
2018
Cost of product revenue
$
1

 
$
1

 
$
3

Cost of service and other revenue
59

 
57

 
40

Selling and marketing
116

 
103

 
101

Research and development
151

 
136

 
133

General and administrative
108

 
104

 
105

Total share-based compensation expense
435

 
401

 
382

Income tax benefit
(173
)
 
(200
)
 
(199
)
Decrease in net income
$
262

 
$
201

 
$
183

 
 
 
 
 
 
Decrease in net income per share:
 
 
 
 
 
Basic
$
1.00

 
$
0.77

 
$
0.71

Diluted
$
0.99

 
$
0.76

 
$
0.70
Assumptions to estimate the fair value of stock options granted and shares purchased under Employee Stock Purchase Plan
We used the following assumptions to estimate the fair value of stock options granted and shares purchased under our Employee Stock Purchase Plan for the periods indicated:
 
Twelve Months Ended July 31,
 
2020
 
2019
 
2018
Assumptions for stock options:
 
 
 
 
 
Expected volatility (range)
32
%
 
26% - 27%

 
25
%
Weighted average expected volatility
32
%
 
27
%
 
25
%
Risk-free interest rate (range)
0.20
%
 
1.84% - 2.92%

 
2.84
%
Expected dividend yield
0.70
%
 
0.67% - 0.85%

 
0.72
%
 
 
 
 
 
 
Assumptions for ESPP:
 
 
 
 
 
Expected volatility (range)
23% - 72%

 
21% - 33%

 
20% - 25%

Weighted average expected volatility
39
%
 
26
%
 
23
%
Risk-free interest rate (range)
0.24% - 2.23%

 
1.94% - 2.44%

 
1.05% - 1.96%

Expected dividend yield
0.74% - 0.95%

 
0.73% - 0.95%

 
0.87% - 1.10%


Share-Based Awards Available for Grant
Share-based awards available for grant
A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the fiscal periods indicated was as follows:
(Shares in thousands)
Shares
Available
for Grant
Balance at July 31, 2017
25,164

Restricted stock units granted (1)
(6,504
)
Options granted
(455
)
Share-based awards canceled/forfeited/expired (1)(2)
4,586

Balance at July 31, 2018
22,791

Restricted stock units granted (1)
(5,639
)
Options granted
(487
)
Share-based awards canceled/forfeited/expired (1)(2)
4,393

Balance at July 31, 2019
21,058

Restricted stock units granted (1)
(6,111
)
Options granted
(382
)
Share-based awards canceled/forfeited/expired (1)(2)
3,482

Balance at July 31, 2020
18,047

(1)
RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.
(2)
Stock options and RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
Summary of restricted stock unit activity
A summary of restricted stock unit (RSU) activity for the periods indicated was as follows:
(Shares in thousands)
Number
of Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested at July 31, 2017
8,636

 

$98.76

Granted
2,828

 
185.53

Unregistered restricted stock granted in connection with acquisitions
75

 
163.00

Vested
(2,960
)
 
105.71

Forfeited
(1,196
)
 
88.59

Nonvested at July 31, 2018
7,383

 
131.50

Granted
2,452

 
245.40

Vested
(3,123
)
 
129.31

Forfeited
(1,029
)
 
107.40

Nonvested at July 31, 2019
5,683

 
186.22

Granted
2,657

 
271.80

Vested
(2,039
)
 
180.40

Forfeited
(637
)
 
154.91

Nonvested at July 31, 2020
5,664

 

$231.97
Additional information regarding RSUs
Additional information regarding our RSUs is shown in the table below.
 
Twelve Months Ended July 31,
(In millions)
2020
 
2019
 
2018
Total fair market value of shares vested
$
620

 
$
676

 
$
527

 
 
 
 
 
 
Share-based compensation for RSUs
$
382

 
$
351

 
$
326

 
 
 
 
 
 
Total tax benefit related to RSU share-based compensation expense
$
134

 
$
141

 
$
143

 
 
 
 
 
 
Cash tax benefits realized for tax deductions for RSUs
$
139

 
$
150

 
$
142
Stock option activity
A summary of stock option activity for the periods indicated was as follows:
 
Options Outstanding
(Shares in thousands)
Number of
Shares
 
Weighted Average
Exercise Price
Per Share
Balance at July 31, 2017
7,488

 

$104.50

Granted
455

 
216.64

Exercised
(2,416
)
 
89.41

Canceled or expired
(373
)
 
121.31

Balance at July 31, 2018
5,154

 
120.26

Granted
487

 
274.26

Exercised
(1,924
)
 
102.49

Canceled or expired
(343
)
 
138.59

Balance at July 31, 2019
3,374

 
150.75

Granted
382

 
303.94

Exercised
(993
)
 
111.82

Canceled or expired
(82
)
 
188.39

Balance at July 31, 2020
2,681

 

$185.83
Stock options outstanding
Information regarding stock options outstanding as of July 31, 2020 is summarized below:
 
Number
of Shares
(in thousands)
 
Weighted
Average
Remaining
Contractual
Life
(in Years)    
 
Weighted
Average
Exercise
Price per
Share      
 
Aggregate
Intrinsic
Value
(in millions)    
Options outstanding
2,681

 
4.39
 

$185.83

 

$323

Options exercisable
1,808

 
3.51
 

$141.76

 

$298
Additional information regarding stock options and ESPP shares
Additional information regarding our stock options and ESPP shares is shown in the table below.
 
Twelve Months Ended July 31,
(In millions except per share amounts)
2020
 
2019
 
2018
Weighted average fair value of options granted (per share)
$
74.85

 
$
63.18

 
$
50.77

 
 
 
 
 
 
Total grant date fair value of options vested
$
28

 
$
30

 
$
38

 
 
 
 
 
 
Aggregate intrinsic value of options exercised
$
159

 
$
248

 
$
188

 
 
 
 
 
 
Share-based compensation expense for stock options and ESPP
$
53

 
$
50

 
$
56

 
 
 
 
 
 
Total tax benefit for stock option and ESPP share-based compensation
$
39

 
$
59

 
$
56

 
 
 
 
 
 
Cash received from option exercises
$
111

 
$
197

 
$
216

 
 
 
 
 
 
Cash tax benefits realized related to tax deductions for non-qualified option exercises and disqualifying dispositions under all share-based payment arrangements
$
39

 
$
58

 
$
53
Components of accumulated other comprehensive loss, net of income taxes
The following table shows the components of accumulated other comprehensive loss, net of income taxes, in the stockholders’ equity section of our consolidated balance sheets at the dates indicated.
 
July 31,
(In millions)
2020
 
2019
Unrealized gain on available-for-sale debt securities
$
6

 
$
1

Foreign currency translation adjustments
(38
)
 
(37
)
Total accumulated other comprehensive loss
$
(32
)
 
$
(36
)