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

12 Months Ended

Jul. 31, 2020

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, 2020				July 31, 2019
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on consolidated balance sheets:
Cash and cash equivalents	$	6,442	$	6,442	$	2,116	$	2,116
Investments	600		608		622		624
Funds held for customers	455		455		436		436
Long-term investments	19		19		13		13
Total cash and cash equivalents, investments, and funds held for customers	$	7,516	$	7,524	$	3,187	$	3,189

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

	July 31, 2020				July 31, 2019
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	6,697	$	6,697	$	2,352	$	2,352
Available-for-sale debt securities:
Municipal bonds	9		9		5		5
Corporate notes	744		752		798		800
U.S. agency securities	47		47		19		19
Total available-for-sale debt securities	800		808		822		824
Other long-term investments	19		19		13		13
Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments	$	7,516	$	7,524	$	3,187	$	3,189

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, 2020, 2019 and 2018 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, 2020 and July 31, 2019 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, 2020

were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at July 31, 2020 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, 2020				July 31, 2019
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	389	$	390	$	415	$	416
Due within two years	256		261		208		208
Due within three years	137		139		163		164
Due after three years	18		18		36		36
Total available-for-sale debt securities	$	800	$	808	$	822	$	824

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

	July 31, 2020		July 31, 2019		July 31, 2018		July 31, 2017
(In millions)
Restricted cash and restricted cash equivalents	$	255	$	236	$	167	$	172
Restricted available-for-sale debt securities	200		200		200		200
Total funds held for customers	$	455	$	436	$	367	$	372