INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Loss before provision for income taxes by fiscal year consisted of the following:

	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Domestic	$	(201,666)	$	(658,938)	$	(905,840)
Foreign	(88,048)		45,878		50,619
Loss before provision for income taxes	$	(289,714)	$	(613,060)	$	(855,221)

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes by fiscal year consisted of the following:

	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Current:
U.S. federal	$	2,059	$	(1,998)	$	175
State and local	429		312		79
Foreign	8,541		17,270		18,033
Total current taxes	11,029		15,584		18,287
Deferred:
U.S. federal	(3,387)		(4,949)		80
State and local	(718)		(770)		—
Foreign	523		(1,746)		(705)
Total deferred taxes	(3,582)		(7,465)		(625)
Provision for income taxes	$	7,447	$	8,119	$	17,662

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax and our effective income tax is as follows:

	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
U.S. federal income tax at statutory rate	$	(75,779)	$	(128,680)	$	(179,514)
Change in valuation allowance	25,274		142,273		145,244
Stock-based compensation	(73,631)		(23,378)		30,913
Effect of foreign operations	26,117		14,305		12,676
Non-deductible expenses	2,115		4,651		5,393
Change in unrecognized tax benefit	653		727		1,709
State income taxes	(290)		(458)		79
Transfer pricing adjustments	4,584		(3)		7
U.S. tax reform impact	93,352		—		—
Intangible asset migration	4,461		(2,027)		—
Other	591		709		1,155
Total	$	7,447	$	8,119	$	17,662

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

	As of July 31,
	2019		2020
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	294,577	$	412,110
Tax credit carryforward	109,921		152,330
Deferred revenue	71,859		122,236
Leases	—		48,270
Intangible assets	35,764		31,119
Stock-based compensation expense	27,493		24,177
Accruals and reserves	14,825		13,401
Property and equipment	633		2,234
Other assets	24,258		29,022
Total deferred tax assets	579,330		834,899
Deferred tax liabilities:
Deferred commission expense	(35,814)		(50,344)
Leases	—		(44,502)
Acquisition-related	(11,515)		(8,003)
Property and equipment	(9,174)		(5,629)
Foreign branch taxes	(4,607)		(5,175)
Prepaid expenses	(2,303)		(2,140)
Other	(1,621)		(1,991)
Total deferred tax liabilities	(65,034)		(117,784)
Valuation allowance	(509,764)		(712,093)
Net deferred tax assets	$	4,532	$	5,022

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, is as follows:

	Fiscal Year Ended July 31,
	2019		2020
	(in thousands)
Balance at the beginning of the year	$	91,716	$	81,250
Increases related to current year tax positions	13,736		3,897
Increases related to prior year tax positions	301		491
Decreases related to prior year tax positions	(23,782)		(381)
Settlements with tax authorities	(721)		—
Balance at the end of the year	$	81,250	$	85,257