XML 27 R10.htm IDEA: XBRL DOCUMENT v3.23.3
Cash and Cash Equivalents, Investments, and Funds Receivable and Amounts Held for Customers
 3 Months Ended
Oct. 31, 2023
Cash And Cash Equivalents, Investments And Funds Held For Customers [Abstract]  
Cash and Cash Equivalents, Investments, and Funds Receivable and Amounts Held for Customers
3. Cash and Cash Equivalents, Investments, and Funds Receivable and Amounts Held for Customers
We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. In all periods presented, cash equivalents consist primarily of money market funds and time deposits. Investments consist primarily of investment-grade available-for-sale debt securities. Funds receivable and amounts held for customers represent funds receivable from third-party payment processors for customer transactions and cash held on behalf of our customers that is invested in cash and cash equivalents and investment-grade available-for-sale securities, restricted for use solely for the purpose of satisfying amounts we owe on behalf of our customers.
During the three months ended October 31, 2023, we updated our terms of service and end user license agreements related to our payroll and payments offerings to reflect a change in our obligations with respect to funds we transmit on behalf of our customers. As a result of the change, our obligations are now satisfied when the funds are settled in the customers' accounts. These obligations are reflected in funds payable and amounts due to customers in the accompanying condensed consolidated balance sheets. Under our previous agreements, our obligations were satisfied as of the point that we initiated the transmission of the funds on the customers' behalf.
Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments in debt securities by limiting our holdings with any individual issuer.
The following table summarizes our cash and cash equivalents, investments, and funds receivable and amounts held for customers by balance sheet classification at the dates indicated.
 October 31, 2023July 31, 2023
(In millions)Amortized
Cost		Fair ValueAmortized
Cost		Fair Value
Classification on condensed consolidated balance sheets:    
Cash and cash equivalents$1,734 $1,734 $2,848 $2,848 
Investments541 537 819 814 
Funds receivable and amounts held for customers2,529 2,525 424 420 
Total cash and cash equivalents, investments, and funds receivable and amounts held for customers$4,804 $4,796 $4,091 $4,082 
The following table summarizes our cash and cash equivalents, investments, and relevant portion of funds receivable and amounts held for customers by investment category at the dates indicated. As of October 31, 2023 and July 31, 2023, this excludes $281 million and $216 million, respectively, of funds receivable included on our condensed consolidated balance sheets in funds receivable and amounts held for customers not measured and recorded at fair value.
 October 31, 2023July 31, 2023
(In millions)Amortized
Cost		Fair ValueAmortized
Cost		Fair Value
Type of issue:    
Total cash, cash equivalents, restricted cash,
and restricted cash equivalents		$3,797 $3,797 $2,852 $2,852 
Available-for-sale debt securities:
Corporate notes552 547 811 805 
U.S. agency securities174 171 212 209 
Total available-for-sale debt securities726 718 1,023 1,014 
Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments$4,523 $4,515 $3,875 $3,866 
We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our condensed consolidated statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2023 and October 31, 2022 were not material.
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 condensed consolidated balance sheets, except for certain unrealized losses described below. Gross unrealized gains and losses on our available-for-sale debt securities at October 31, 2023 and July 31, 2023 were not material.
For available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists. The estimate of the credit loss is determined by considering available information relevant to the collectibility of the security and information about past events, current conditions, and reasonable and supportable forecasts. The allowance for credit loss is recorded to interest and other income on our condensed consolidated statements of operations, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the allowance for credit loss at a security level is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of our condensed consolidated balance sheets. We determined there were no credit losses related to available-for-sale debt securities as of October 31, 2023. Unrealized losses on available-for-sale debt securities at October 31, 2023 were not material. 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 of the amortized cost basis, which may be at maturity.
The following table summarizes our available-for-sale debt securities, included in investments and relevant portion of funds receivable and amounts held for customers, classified by the stated maturity date of the security at the dates indicated.
 October 31, 2023July 31, 2023
(In millions)Amortized
Cost		Fair ValueAmortized
Cost		Fair Value
Due within one year$474 $471 $735 $730 
Due within two years144 142 147 144 
Due within three years108 105 141 140 
Due after three years— — — — 
Total available-for-sale debt securities$726 $718 $1,023 $1,014 
The following table summarizes our funds receivable and amounts held for customers by asset category at the dates indicated.
(In millions)October 31, 2023July 31,
2023
Restricted cash and restricted cash equivalents$2,063 $4 
Restricted available-for-sale debt securities and funds receivable462 416 
Total funds receivable and amounts held for customers$2,525 $420 
(In millions)October 31, 2022July 31,
2022
Restricted cash and restricted cash equivalents$15 $201 
Restricted available-for-sale debt securities and funds receivable453 230 
Total funds receivable and amounts held for customers$468 $431