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

12 Months Ended

Jul. 31, 2018

The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated.



	Twelve Months Ended July 31,
(In millions, except per share amounts)	2018		2017		2016
Numerator:
Net income from continuing operations	$	1,211	$	971	$	806
Net income from discontinued operations	—		—		173
Net income	$	1,211	$	971	$	979
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding	256		257		262
Shares used in diluted per share amounts:
Weighted average common shares outstanding	256		257		262
Dilutive common equivalent shares from stock options and restricted stock awards	5		4		3
Dilutive weighted average common shares outstanding	261		261		265

Basic and diluted net income per share:
Basic net income per share from continuing operations	$	4.72	$	3.78	$	3.08
Basic net income per share from discontinued operations	—		—		0.65
Basic net income per share	$	4.72	$	3.78	$	3.73
Diluted net income per share from continuing operations	$	4.64	$	3.72	$	3.04
Diluted net income per share from discontinued operations	—		—		0.65
Diluted net income per share	$	4.64	$	3.72	$	3.69

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	—		3		2

Adoption of Topic 606 is expected to impact our 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	87		(85		)	2
Other assets	190		23			213
Deferred revenue	961		(380		)	581
Other current liabilities	191		7			198
Long-term deferred revenue	197		(194		)	3
Other long-term obligations	123		61			184
Stockholders’ equity	2,354		462			2,816



	July 31, 2017
(In millions)	As Reported		Topic 606 Adjustment			As Adjusted
Prepaid expenses and other current assets	$	100	$	18		$	118
Long-term deferred income taxes	132		(130		)	2
Other assets	143		21			164
Deferred revenue	887		(313		)	574
Other current liabilities	178		7			185
Long-term deferred revenue	202		(201		)	1
Other long-term obligations	130		71			201
Stockholders’ equity	1,354		345			1,699



	Twelve Months Ended July 31, 2018
(In millions, except per share amounts)	As Reported		Topic 606 Adjustment			As Adjusted
Net revenue	$	5,964	$	61		$	6,025
Cost of revenue	977		1			978
Selling and marketing expenses	1,634		(3		)	1,631
Operating income	1,497		63			1,560
Income tax provision	292		(55		)	237
Net income	1,211		118			1,329

Diluted earnings per share	$	4.64	$	0.45		$	5.09



	Twelve Months Ended July 31, 2017
(In millions, except per share amounts)	As Reported		Topic 606 Adjustment			As Adjusted
Net revenue	$	5,177	$	19		$	5,196
Cost of revenue	809		1			810
Selling and marketing expenses	1,420		(5		)	1,415
Operating income	1,395		23			1,418
Income tax provision	396		9			405
Net income	971		14			985

Diluted earnings per share	$	3.72	$	0.06		$	3.78