| 1. Description of Business and Summary of Significant Accounting Policies |
Description of Business |
Basis of Presentation |
Seasonality |
Significant Accounting Policies |
Use of Estimates |
Computation of Net Income Per Share |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions, except per share amounts) | October 31, 2024 | October 31, 2023 | |||||||||
| Numerator: | \u00a0 | \u00a0 | |||||||||
| Net income | $ | 197\u00a0 | $ | 241\u00a0 | |||||||
| Denominator: | \u00a0 | \u00a0 | |||||||||
| Shares used in basic per share amounts: | \u00a0 | \u00a0 | |||||||||
| Weighted-average common shares outstanding | 280\u00a0 | 280\u00a0 | |||||||||
| Shares used in diluted per share amounts: | |||||||||||
| Weighted-average common shares outstanding | 280\u00a0 | 280\u00a0 | |||||||||
Dilutive common equivalent shares from stock options and restricted awards | 3\u00a0 | 3\u00a0 | |||||||||
| Dilutive weighted-average common shares outstanding | 283\u00a0 | 283\u00a0 | |||||||||
| Basic and diluted net income per share: | \u00a0 | \u00a0 | |||||||||
| Basic net income per share | $ | 0.70\u00a0 | $ | 0.86\u00a0 | |||||||
| Diluted net income per share | $ | 0.70\u00a0 | $ | 0.85\u00a0 | |||||||
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 | \u2014\u00a0 | 1\u00a0 |
Deferred Revenue |
Concentration of Credit Risk and Significant Customers |
Accounting Standards Not Yet Adopted |
Description of Business |
Basis of Presentation |
Seasonality |
Use of Estimates |
Computation of Net Income Per Share |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions, except per share amounts) | October 31, 2024 | October 31, 2023 | |||||||||
| Numerator: | \u00a0 | \u00a0 | |||||||||
| Net income | $ | 197\u00a0 | $ | 241\u00a0 | |||||||
| Denominator: | \u00a0 | \u00a0 | |||||||||
| Shares used in basic per share amounts: | \u00a0 | \u00a0 | |||||||||
| Weighted-average common shares outstanding | 280\u00a0 | 280\u00a0 | |||||||||
| Shares used in diluted per share amounts: | |||||||||||
| Weighted-average common shares outstanding | 280\u00a0 | 280\u00a0 | |||||||||
Dilutive common equivalent shares from stock options and restricted awards | 3\u00a0 | 3\u00a0 | |||||||||
| Dilutive weighted-average common shares outstanding | 283\u00a0 | 283\u00a0 | |||||||||
| Basic and diluted net income per share: | \u00a0 | \u00a0 | |||||||||
| Basic net income per share | $ | 0.70\u00a0 | $ | 0.86\u00a0 | |||||||
| Diluted net income per share | $ | 0.70\u00a0 | $ | 0.85\u00a0 | |||||||
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 | \u2014\u00a0 | 1\u00a0 |
Deferred Revenue |
Concentration of Credit Risk and Significant Customers |
Accounting Standards Not Yet Adopted |
| 2. Fair Value Measurements |
Fair Value Hierarchy |
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
| October 31, 2024 | July 31, 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | Total Fair Value | |||||||||||||||||||||||||||||
| Assets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
Cash equivalents, primarily money market funds | $ | 1,832\u00a0 | $ | \u2014\u00a0 | $ | 1,832\u00a0 | $ | 2,538\u00a0 | $ | \u2014\u00a0 | $ | 2,538\u00a0 | |||||||||||||||||||||||
| Available-for-sale debt securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| Corporate notes | \u2014\u00a0 | 488\u00a0 | 488\u00a0 | \u2014\u00a0 | 456\u00a0 | 456\u00a0 | |||||||||||||||||||||||||||||
| U.S. agency securities | \u2014\u00a0 | 148\u00a0 | 148\u00a0 | \u2014\u00a0 | 159\u00a0 | 159\u00a0 | |||||||||||||||||||||||||||||
| Total available-for-sale debt securities | \u2014\u00a0 | 636\u00a0 | 636\u00a0 | \u2014\u00a0 | 615\u00a0 | 615\u00a0 | |||||||||||||||||||||||||||||
| Total assets measured at fair value on a recurring basis | $ | 1,832\u00a0 | $ | 636\u00a0 | $ | 2,468\u00a0 | $ | 2,538\u00a0 | $ | 615\u00a0 | $ | 3,153\u00a0 | |||||||||||||||||||||||
| October 31, 2024 | July 31, 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | Total Fair Value | |||||||||||||||||||||||||||||
| Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| In cash and cash equivalents | $ | 1,832\u00a0 | $ | \u2014\u00a0 | $ | 1,832\u00a0 | $ | 2,538\u00a0 | $ | \u2014\u00a0 | $ | 2,538\u00a0 | |||||||||||||||||||||||
| Available-for-sale debt securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| In investments | $ | \u2014\u00a0 | $ | 486\u00a0 | $ | 486\u00a0 | $ | \u2014\u00a0 | $ | 465\u00a0 | $ | 465\u00a0 | |||||||||||||||||||||||
| In funds receivable and amounts held for customers | \u2014\u00a0 | 150\u00a0 | 150\u00a0 | \u2014\u00a0 | 150\u00a0 | 150\u00a0 | |||||||||||||||||||||||||||||
| Total available-for-sale debt securities | $ | \u2014\u00a0 | $ | 636\u00a0 | $ | 636\u00a0 | $ | \u2014\u00a0 | $ | 615\u00a0 | $ | 615\u00a0 |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
Fair Value Hierarchy |
| October 31, 2024 | July 31, 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | Total Fair Value | |||||||||||||||||||||||||||||
| Assets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
Cash equivalents, primarily money market funds | $ | 1,832\u00a0 | $ | \u2014\u00a0 | $ | 1,832\u00a0 | $ | 2,538\u00a0 | $ | \u2014\u00a0 | $ | 2,538\u00a0 | |||||||||||||||||||||||
| Available-for-sale debt securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| Corporate notes | \u2014\u00a0 | 488\u00a0 | 488\u00a0 | \u2014\u00a0 | 456\u00a0 | 456\u00a0 | |||||||||||||||||||||||||||||
| U.S. agency securities | \u2014\u00a0 | 148\u00a0 | 148\u00a0 | \u2014\u00a0 | 159\u00a0 | 159\u00a0 | |||||||||||||||||||||||||||||
| Total available-for-sale debt securities | \u2014\u00a0 | 636\u00a0 | 636\u00a0 | \u2014\u00a0 | 615\u00a0 | 615\u00a0 | |||||||||||||||||||||||||||||
| Total assets measured at fair value on a recurring basis | $ | 1,832\u00a0 | $ | 636\u00a0 | $ | 2,468\u00a0 | $ | 2,538\u00a0 | $ | 615\u00a0 | $ | 3,153\u00a0 | |||||||||||||||||||||||
| October 31, 2024 | July 31, 2024 | ||||||||||||||||||||||||||||||||||
| (In millions) | Level 1 | Level 2 | Total Fair Value | Level 1 | Level 2 | Total Fair Value | |||||||||||||||||||||||||||||
| Cash equivalents: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| In cash and cash equivalents | $ | 1,832\u00a0 | $ | \u2014\u00a0 | $ | 1,832\u00a0 | $ | 2,538\u00a0 | $ | \u2014\u00a0 | $ | 2,538\u00a0 | |||||||||||||||||||||||
| Available-for-sale debt securities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||||||||||||
| In investments | $ | \u2014\u00a0 | $ | 486\u00a0 | $ | 486\u00a0 | $ | \u2014\u00a0 | $ | 465\u00a0 | $ | 465\u00a0 | |||||||||||||||||||||||
| In funds receivable and amounts held for customers | \u2014\u00a0 | 150\u00a0 | 150\u00a0 | \u2014\u00a0 | 150\u00a0 | 150\u00a0 | |||||||||||||||||||||||||||||
| Total available-for-sale debt securities | $ | \u2014\u00a0 | $ | 636\u00a0 | $ | 636\u00a0 | $ | \u2014\u00a0 | $ | 615\u00a0 | $ | 615\u00a0 |
| 3. Cash and Cash Equivalents, Investments, and Funds Receivable and Amounts Held for Customers |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Classification on condensed consolidated balance sheets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cash and cash equivalents | $ | 2,872\u00a0 | $ | 2,872\u00a0 | $ | 3,609\u00a0 | $ | 3,609\u00a0 | |||||||||||||||
| Investments | 486\u00a0 | 486\u00a0 | 465\u00a0 | 465\u00a0 | |||||||||||||||||||
| Funds receivable and amounts held for customers | 5,606\u00a0 | 5,606\u00a0 | 3,921\u00a0 | 3,921\u00a0 | |||||||||||||||||||
| Total cash and cash equivalents, investments, and funds receivable and amounts held for customers | $ | 8,964\u00a0 | $ | 8,964\u00a0 | $ | 7,995\u00a0 | $ | 7,995\u00a0 |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Type of issue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 8,034\u00a0 | $ | 8,034\u00a0 | $ | 7,099\u00a0 | $ | 7,099\u00a0 | |||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate notes | 488\u00a0 | 488\u00a0 | 456\u00a0 | 456\u00a0 | |||||||||||||||||||
| U.S. agency securities | 148\u00a0 | 148\u00a0 | 159\u00a0 | 159\u00a0 | |||||||||||||||||||
| Total available-for-sale debt securities | 636\u00a0 | 636\u00a0 | 615\u00a0 | 615\u00a0 | |||||||||||||||||||
| Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments | $ | 8,670\u00a0 | $ | 8,670\u00a0 | $ | 7,714\u00a0 | $ | 7,714\u00a0 |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Due within one year | $ | 541\u00a0 | $ | 541\u00a0 | $ | 517\u00a0 | $ | 516\u00a0 | |||||||||||||||
| Due within two years | 40\u00a0 | 40\u00a0 | 55\u00a0 | 56\u00a0 | |||||||||||||||||||
| Due within three years | 55\u00a0 | 55\u00a0 | 43\u00a0 | 43\u00a0 | |||||||||||||||||||
| Due after three years | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | |||||||||||||||||||
| Total available-for-sale debt securities | $ | 636\u00a0 | $ | 636\u00a0 | $ | 615\u00a0 | $ | 615\u00a0 |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Restricted cash and restricted cash equivalents | $ | 5,162\u00a0 | $ | 3,490\u00a0 | |||||||
| Restricted available-for-sale debt securities and funds receivable | 444\u00a0 | 431\u00a0 | |||||||||
| Total funds receivable and amounts held for customers | $ | 5,606\u00a0 | $ | 3,921\u00a0 |
| (In millions) | October 31, 2023 | July 31, 2023 | |||||||||
| Restricted cash and restricted cash equivalents | $ | 2,063\u00a0 | $ | 4\u00a0 | |||||||
| Restricted available-for-sale debt securities and funds receivable | 462\u00a0 | 416\u00a0 | |||||||||
| Total funds receivable and amounts held for customers | $ | 2,525\u00a0 | $ | 420\u00a0 |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Classification on condensed consolidated balance sheets: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cash and cash equivalents | $ | 2,872\u00a0 | $ | 2,872\u00a0 | $ | 3,609\u00a0 | $ | 3,609\u00a0 | |||||||||||||||
| Investments | 486\u00a0 | 486\u00a0 | 465\u00a0 | 465\u00a0 | |||||||||||||||||||
| Funds receivable and amounts held for customers | 5,606\u00a0 | 5,606\u00a0 | 3,921\u00a0 | 3,921\u00a0 | |||||||||||||||||||
| Total cash and cash equivalents, investments, and funds receivable and amounts held for customers | $ | 8,964\u00a0 | $ | 8,964\u00a0 | $ | 7,995\u00a0 | $ | 7,995\u00a0 |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Type of issue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 8,034\u00a0 | $ | 8,034\u00a0 | $ | 7,099\u00a0 | $ | 7,099\u00a0 | |||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate notes | 488\u00a0 | 488\u00a0 | 456\u00a0 | 456\u00a0 | |||||||||||||||||||
| U.S. agency securities | 148\u00a0 | 148\u00a0 | 159\u00a0 | 159\u00a0 | |||||||||||||||||||
| Total available-for-sale debt securities | 636\u00a0 | 636\u00a0 | 615\u00a0 | 615\u00a0 | |||||||||||||||||||
| Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments | $ | 8,670\u00a0 | $ | 8,670\u00a0 | $ | 7,714\u00a0 | $ | 7,714\u00a0 |
| \u00a0 | October 31, 2024 | July 31, 2024 | |||||||||||||||||||||
| (In millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
| Due within one year | $ | 541\u00a0 | $ | 541\u00a0 | $ | 517\u00a0 | $ | 516\u00a0 | |||||||||||||||
| Due within two years | 40\u00a0 | 40\u00a0 | 55\u00a0 | 56\u00a0 | |||||||||||||||||||
| Due within three years | 55\u00a0 | 55\u00a0 | 43\u00a0 | 43\u00a0 | |||||||||||||||||||
| Due after three years | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | |||||||||||||||||||
| Total available-for-sale debt securities | $ | 636\u00a0 | $ | 636\u00a0 | $ | 615\u00a0 | $ | 615\u00a0 |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Restricted cash and restricted cash equivalents | $ | 5,162\u00a0 | $ | 3,490\u00a0 | |||||||
| Restricted available-for-sale debt securities and funds receivable | 444\u00a0 | 431\u00a0 | |||||||||
| Total funds receivable and amounts held for customers | $ | 5,606\u00a0 | $ | 3,921\u00a0 |
| (In millions) | October 31, 2023 | July 31, 2023 | |||||||||
| Restricted cash and restricted cash equivalents | $ | 2,063\u00a0 | $ | 4\u00a0 | |||||||
| Restricted available-for-sale debt securities and funds receivable | 462\u00a0 | 416\u00a0 | |||||||||
| Total funds receivable and amounts held for customers | $ | 2,525\u00a0 | $ | 420\u00a0 |
| 4. Notes Receivable and Allowances for Credit Losses |
Notes Receivable Held for Investment |
Notes Receivable Held for Sale |
| 5. Acquired Intangible Assets |
| (Dollars in millions) | Customer Lists / User Relationships | Purchased Technology | Trade Names and Logos | Total | |||||||||||||||||||
| At October 31, 2024: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cost | $ | 6,195\u00a0 | $ | 1,648\u00a0 | $ | 680\u00a0 | $ | 8,523\u00a0 | |||||||||||||||
| Accumulated amortization | (1,712) | (942) | (207) | (2,861) | |||||||||||||||||||
| Acquired intangible assets, net | $ | 4,483\u00a0 | $ | 706\u00a0 | $ | 473\u00a0 | $ | 5,662\u00a0 | |||||||||||||||
| Weighted-average life in years | 14 | 8 | 13 | 13 | |||||||||||||||||||
| At July 31, 2024: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cost | $ | 6,196\u00a0 | $ | 1,648\u00a0 | $ | 680\u00a0 | $ | 8,524\u00a0 | |||||||||||||||
| Accumulated amortization | (1,605) | (905) | (194) | (2,704) | |||||||||||||||||||
| Acquired intangible assets, net | $ | 4,591\u00a0 | $ | 743\u00a0 | $ | 486\u00a0 | $ | 5,820\u00a0 | |||||||||||||||
| Weighted-average life in years | 14 | 8 | 13 | 13 |
| (In millions) | Expected Future Amortization Expense | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 472\u00a0 | |||
| 2026 | 627\u00a0 | ||||
| 2027 | 602\u00a0 | ||||
| 2028 | 586\u00a0 | ||||
| 2029 | 581\u00a0 | ||||
| Thereafter | 2,794\u00a0 | ||||
| Total expected future amortization expense | $ | 5,662\u00a0 |
| (Dollars in millions) | Customer Lists / User Relationships | Purchased Technology | Trade Names and Logos | Total | |||||||||||||||||||
| At October 31, 2024: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cost | $ | 6,195\u00a0 | $ | 1,648\u00a0 | $ | 680\u00a0 | $ | 8,523\u00a0 | |||||||||||||||
| Accumulated amortization | (1,712) | (942) | (207) | (2,861) | |||||||||||||||||||
| Acquired intangible assets, net | $ | 4,483\u00a0 | $ | 706\u00a0 | $ | 473\u00a0 | $ | 5,662\u00a0 | |||||||||||||||
| Weighted-average life in years | 14 | 8 | 13 | 13 | |||||||||||||||||||
| At July 31, 2024: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |||||||||||||||||||
| Cost | $ | 6,196\u00a0 | $ | 1,648\u00a0 | $ | 680\u00a0 | $ | 8,524\u00a0 | |||||||||||||||
| Accumulated amortization | (1,605) | (905) | (194) | (2,704) | |||||||||||||||||||
| Acquired intangible assets, net | $ | 4,591\u00a0 | $ | 743\u00a0 | $ | 486\u00a0 | $ | 5,820\u00a0 | |||||||||||||||
| Weighted-average life in years | 14 | 8 | 13 | 13 |
| (In millions) | Expected Future Amortization Expense | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 472\u00a0 | |||
| 2026 | 627\u00a0 | ||||
| 2027 | 602\u00a0 | ||||
| 2028 | 586\u00a0 | ||||
| 2029 | 581\u00a0 | ||||
| Thereafter | 2,794\u00a0 | ||||
| Total expected future amortization expense | $ | 5,662\u00a0 |
| 6. Debt |
(Dollars in millions) | October 31, 2024 | July 31, 2024 | Effective Interest Rate | ||||||||||||||
| Senior unsecured notes issued June 2020: | |||||||||||||||||
0.950% notes due July 2025 | $ | 500\u00a0 | $ | 500\u00a0 | 1.127% | ||||||||||||
1.350% notes due July 2027 | 500\u00a0 | 500\u00a0 | 1.486% | ||||||||||||||
1.650% notes due July 2030 | 500\u00a0 | 500\u00a0 | 1.767% | ||||||||||||||
Senior unsecured notes issued September 2023: | |||||||||||||||||
5.250% notes due September 2026 | 750\u00a0 | 750\u00a0 | 5.325% | ||||||||||||||
5.125% notes due September 2028 | 750\u00a0 | 750\u00a0 | 5.258% | ||||||||||||||
5.200% notes due September 2033 | 1,250\u00a0 | 1,250\u00a0 | 5.312% | ||||||||||||||
5.500% notes due September 2053 | 1,250\u00a0 | 1,250\u00a0 | 5.576% | ||||||||||||||
| Secured revolving credit facilities | 670\u00a0 | 585\u00a0 | |||||||||||||||
| Total principal balance of debt | 6,170\u00a0 | 6,085\u00a0 | |||||||||||||||
| Unamortized discount and debt issuance costs | (46) | (47) | |||||||||||||||
| Net carrying value of debt | $ | 6,124\u00a0 | $ | 6,038\u00a0 | |||||||||||||
| Short-term debt | $ | 499\u00a0 | $ | 499\u00a0 | |||||||||||||
| Long-term debt | $ | 5,625\u00a0 | $ | 5,539\u00a0 |
| (In millions) | Future Principal Payments | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 500\u00a0 | |||
| 2026 | \u2014\u00a0 | ||||
| 2027 | 1,550\u00a0 | ||||
| 2028 | \u2014\u00a0 | ||||
| 2029 | 1,120\u00a0 | ||||
| Thereafter | 3,000\u00a0 | ||||
| Total future principal payments for debt | $ | 6,170\u00a0 |
Senior Unsecured Notes |
Unsecured Credit Facilities |
Secured Revolving Credit Facilities |
Commercial Paper Program |
(Dollars in millions) | October 31, 2024 | July 31, 2024 | Effective Interest Rate | ||||||||||||||
| Senior unsecured notes issued June 2020: | |||||||||||||||||
0.950% notes due July 2025 | $ | 500\u00a0 | $ | 500\u00a0 | 1.127% | ||||||||||||
1.350% notes due July 2027 | 500\u00a0 | 500\u00a0 | 1.486% | ||||||||||||||
1.650% notes due July 2030 | 500\u00a0 | 500\u00a0 | 1.767% | ||||||||||||||
Senior unsecured notes issued September 2023: | |||||||||||||||||
5.250% notes due September 2026 | 750\u00a0 | 750\u00a0 | 5.325% | ||||||||||||||
5.125% notes due September 2028 | 750\u00a0 | 750\u00a0 | 5.258% | ||||||||||||||
5.200% notes due September 2033 | 1,250\u00a0 | 1,250\u00a0 | 5.312% | ||||||||||||||
5.500% notes due September 2053 | 1,250\u00a0 | 1,250\u00a0 | 5.576% | ||||||||||||||
| Secured revolving credit facilities | 670\u00a0 | 585\u00a0 | |||||||||||||||
| Total principal balance of debt | 6,170\u00a0 | 6,085\u00a0 | |||||||||||||||
| Unamortized discount and debt issuance costs | (46) | (47) | |||||||||||||||
| Net carrying value of debt | $ | 6,124\u00a0 | $ | 6,038\u00a0 | |||||||||||||
| Short-term debt | $ | 499\u00a0 | $ | 499\u00a0 | |||||||||||||
| Long-term debt | $ | 5,625\u00a0 | $ | 5,539\u00a0 |
| (In millions) | Future Principal Payments | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 500\u00a0 | |||
| 2026 | \u2014\u00a0 | ||||
| 2027 | 1,550\u00a0 | ||||
| 2028 | \u2014\u00a0 | ||||
| 2029 | 1,120\u00a0 | ||||
| Thereafter | 3,000\u00a0 | ||||
| Total future principal payments for debt | $ | 6,170\u00a0 |
| 7. Other Liabilities and Commitments |
Other Current Liabilities |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Executive deferred compensation plan liabilities | $ | 229\u00a0 | $ | 207\u00a0 | |||||||
| Current portion of operating lease liabilities | 65\u00a0 | 71\u00a0 | |||||||||
| Sales, property, and other taxes | 52\u00a0 | 47\u00a0 | |||||||||
| Reserve for returns, credits, and promotional discounts | 37\u00a0 | 40\u00a0 | |||||||||
| Interest payable | 37\u00a0 | 84\u00a0 | |||||||||
| Other | 116\u00a0 | 100\u00a0 | |||||||||
| Total other current liabilities | $ | 536\u00a0 | $ | 549\u00a0 |
Other Long-Term Obligations |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Income tax liabilities | $ | 159\u00a0 | $ | 157\u00a0 | |||||||
Dividends payable | 18\u00a0 | 19\u00a0 | |||||||||
Deferred income tax liabilities | 11\u00a0 | 3\u00a0 | |||||||||
| Deferred revenue | 3\u00a0 | 4\u00a0 | |||||||||
| Other | 30\u00a0 | 25\u00a0 | |||||||||
| Total other long-term obligations | $ | 221\u00a0 | $ | 208\u00a0 |
Unconditional Purchase Obligations |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Executive deferred compensation plan liabilities | $ | 229\u00a0 | $ | 207\u00a0 | |||||||
| Current portion of operating lease liabilities | 65\u00a0 | 71\u00a0 | |||||||||
| Sales, property, and other taxes | 52\u00a0 | 47\u00a0 | |||||||||
| Reserve for returns, credits, and promotional discounts | 37\u00a0 | 40\u00a0 | |||||||||
| Interest payable | 37\u00a0 | 84\u00a0 | |||||||||
| Other | 116\u00a0 | 100\u00a0 | |||||||||
| Total other current liabilities | $ | 536\u00a0 | $ | 549\u00a0 |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Income tax liabilities | $ | 159\u00a0 | $ | 157\u00a0 | |||||||
Dividends payable | 18\u00a0 | 19\u00a0 | |||||||||
Deferred income tax liabilities | 11\u00a0 | 3\u00a0 | |||||||||
| Deferred revenue | 3\u00a0 | 4\u00a0 | |||||||||
| Other | 30\u00a0 | 25\u00a0 | |||||||||
| Total other long-term obligations | $ | 221\u00a0 | $ | 208\u00a0 |
| 8. Leases |
| Three Months Ended | |||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
Operating lease cost (1) | $ | 29\u00a0 | $ | 26\u00a0 | |||||||
| Variable lease cost | 5\u00a0 | 6\u00a0 | |||||||||
| Sublease income | (3) | (3) | |||||||||
| Total net lease cost | $ | 31\u00a0 | $ | 29\u00a0 |
| Three Months Ended | |||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 27\u00a0 | $ | 25\u00a0 | |||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 150\u00a0 | $ | 14\u00a0 |
| October 31, 2024 | July 31, 2024 | ||||||||||
| Weighted-average remaining lease term for operating leases | 8.3 years | 7.7 years | |||||||||
| Weighted-average discount rate for operating leases | 3.7\u00a0 | % | 3.3\u00a0 | % |
| (In millions) | Operating Leases (1) | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 59\u00a0 | |||
| 2026 | 97\u00a0 | ||||
| 2027 | 95\u00a0 | ||||
| 2028 | 88\u00a0 | ||||
| 2029 | 91\u00a0 | ||||
| Thereafter | 347\u00a0 | ||||
| Total future minimum lease payments | 777\u00a0 | ||||
| Less imputed interest | (120) | ||||
| Present value of lease liabilities | $ | 657\u00a0 |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Operating lease right-of-use assets | $ | 538\u00a0 | $ | 411\u00a0 | |||||||
| $ | 65\u00a0 | $ | 71\u00a0 | ||||||||
| Operating lease liabilities | 592\u00a0 | 458\u00a0 | |||||||||
| Total operating lease liabilities | $ | 657\u00a0 | $ | 529\u00a0 |
| Three Months Ended | |||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
Operating lease cost (1) | $ | 29\u00a0 | $ | 26\u00a0 | |||||||
| Variable lease cost | 5\u00a0 | 6\u00a0 | |||||||||
| Sublease income | (3) | (3) | |||||||||
| Total net lease cost | $ | 31\u00a0 | $ | 29\u00a0 |
| Three Months Ended | |||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 27\u00a0 | $ | 25\u00a0 | |||||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 150\u00a0 | $ | 14\u00a0 |
| October 31, 2024 | July 31, 2024 | ||||||||||
| Weighted-average remaining lease term for operating leases | 8.3 years | 7.7 years | |||||||||
| Weighted-average discount rate for operating leases | 3.7\u00a0 | % | 3.3\u00a0 | % |
| (In millions) | October 31, 2024 | July 31, 2024 | |||||||||
| Operating lease right-of-use assets | $ | 538\u00a0 | $ | 411\u00a0 | |||||||
| $ | 65\u00a0 | $ | 71\u00a0 | ||||||||
| Operating lease liabilities | 592\u00a0 | 458\u00a0 | |||||||||
| Total operating lease liabilities | $ | 657\u00a0 | $ | 529\u00a0 |
| (In millions) | Operating Leases (1) | ||||
| Fiscal year ending July\u00a031, | \u00a0 | ||||
| 2025 (excluding the three months ended October 31, 2024) | $ | 59\u00a0 | |||
| 2026 | 97\u00a0 | ||||
| 2027 | 95\u00a0 | ||||
| 2028 | 88\u00a0 | ||||
| 2029 | 91\u00a0 | ||||
| Thereafter | 347\u00a0 | ||||
| Total future minimum lease payments | 777\u00a0 | ||||
| Less imputed interest | (120) | ||||
| Present value of lease liabilities | $ | 657\u00a0 |
| 9. Income Taxes |
Effective Tax Rate |
Unrecognized Tax Benefits and Other Considerations |
| 10. Stockholders\u2019 Equity |
Stock Repurchase Programs and Treasury Shares |
Dividends on Common Stock |
Share-Based Compensation Expense |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Cost of revenue | $ | 111\u00a0 | $ | 101\u00a0 | |||||||
| Selling and marketing | 137\u00a0 | 123\u00a0 | |||||||||
| Research and development | 161\u00a0 | 161\u00a0 | |||||||||
| General and administrative | 102\u00a0 | 110\u00a0 | |||||||||
| Total share-based compensation expense | $ | 511\u00a0 | $ | 495\u00a0 | |||||||
Share-Based Awards Available for Grant |
| (Shares in thousands) | Shares Available for Grant | ||||
| Balance at July 31, 2024 | 27,317\u00a0 | ||||
Restricted stock units granted (1) | (906) | ||||
| Options granted | \u2014\u00a0 | ||||
Share-based awards canceled/forfeited/expired (1) (2) | 2,622\u00a0 | ||||
| Balance at October 31, 2024 | 29,033\u00a0 |
Restricted Stock Unit and Restricted Stock Activity |
| (Shares in thousands) | Number of Shares | Weighted- Average Grant Date Fair Value | |||||||||
| Nonvested at July 31, 2024 | 10,924\u00a0 | $ | 496.64\u00a0 | ||||||||
| Granted | 394\u00a0 | 636.48\u00a0 | |||||||||
| Vested | (895) | 483.74\u00a0 | |||||||||
| Forfeited | (746) | 416.46\u00a0 | |||||||||
| Nonvested at October 31, 2024 | 9,677\u00a0 | $ | 509.71\u00a0 |
Stock Option Activity |
| \u00a0 | Options Outstanding | ||||||||||
| (Shares in thousands) | Number of Shares | Weighted- Average Exercise Price Per Share | |||||||||
| Balance at July 31, 2024 | 1,772\u00a0 | $ | 449.66\u00a0 | ||||||||
| Granted | \u2014\u00a0 | \u2014\u00a0 | |||||||||
| Exercised | (122) | 370.42\u00a0 | |||||||||
| Canceled or expired | (19) | 486.49\u00a0 | |||||||||
| Balance at October 31, 2024 | 1,631\u00a0 | $ | 455.16\u00a0 | ||||||||
| Exercisable at October 31, 2024 | 880\u00a0 | $ | 379.88\u00a0 |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Cost of revenue | $ | 111\u00a0 | $ | 101\u00a0 | |||||||
| Selling and marketing | 137\u00a0 | 123\u00a0 | |||||||||
| Research and development | 161\u00a0 | 161\u00a0 | |||||||||
| General and administrative | 102\u00a0 | 110\u00a0 | |||||||||
| Total share-based compensation expense | $ | 511\u00a0 | $ | 495\u00a0 | |||||||
| (Shares in thousands) | Shares Available for Grant | ||||
| Balance at July 31, 2024 | 27,317\u00a0 | ||||
Restricted stock units granted (1) | (906) | ||||
| Options granted | \u2014\u00a0 | ||||
Share-based awards canceled/forfeited/expired (1) (2) | 2,622\u00a0 | ||||
| Balance at October 31, 2024 | 29,033\u00a0 |
| (Shares in thousands) | Number of Shares | Weighted- Average Grant Date Fair Value | |||||||||
| Nonvested at July 31, 2024 | 10,924\u00a0 | $ | 496.64\u00a0 | ||||||||
| Granted | 394\u00a0 | 636.48\u00a0 | |||||||||
| Vested | (895) | 483.74\u00a0 | |||||||||
| Forfeited | (746) | 416.46\u00a0 | |||||||||
| Nonvested at October 31, 2024 | 9,677\u00a0 | $ | 509.71\u00a0 |
| \u00a0 | Options Outstanding | ||||||||||
| (Shares in thousands) | Number of Shares | Weighted- Average Exercise Price Per Share | |||||||||
| Balance at July 31, 2024 | 1,772\u00a0 | $ | 449.66\u00a0 | ||||||||
| Granted | \u2014\u00a0 | \u2014\u00a0 | |||||||||
| Exercised | (122) | 370.42\u00a0 | |||||||||
| Canceled or expired | (19) | 486.49\u00a0 | |||||||||
| Balance at October 31, 2024 | 1,631\u00a0 | $ | 455.16\u00a0 | ||||||||
| Exercisable at October 31, 2024 | 880\u00a0 | $ | 379.88\u00a0 |
| 11. Legal Proceedings |
| 12. Segment Information |
\u00a0 Global Business Solutions: This segment serves small and mid-market businesses around the world, and the accounting professionals who assist and advise them. Our QuickBooks offerings include financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing and bill pay solutions, checking accounts through an FDIC member bank partner, and financing for small and mid-market businesses. Our Mailchimp offerings include marketing automation and customer relationship management. Consumer: This segment serves consumers and includes do-it-yourself and assisted TurboTax income tax preparation products and services sold in the U.S. and Canada. \u00a0Credit Karma: This segment serves consumers with a personal finance platform that provides personalized recommendations of credit card, home, auto, and personal loan, and insurance products; online savings and checking accounts through an FDIC member bank partner; and access to their credit scores and reports, credit and identity monitoring, credit report dispute, credit building tools, and tools to help understand net worth and make financial progress. ProTax: This segment serves professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, and ProConnect Tax Online in the U.S., and ProFile and ProTax Online in Canada. \u00a0 |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Net revenue: | \u00a0 | \u00a0 | |||||||||
Global Business Solutions | $ | 2,544\u00a0 | $ | 2,344\u00a0 | |||||||
| Consumer | 176\u00a0 | 187\u00a0 | |||||||||
| Credit Karma | 524\u00a0 | 405\u00a0 | |||||||||
| ProTax | 39\u00a0 | 42\u00a0 | |||||||||
| Total net revenue | $ | 3,283\u00a0 | $ | 2,978\u00a0 | |||||||
| Operating income: | \u00a0 | \u00a0 | |||||||||
| Global Business Solutions | $ | 1,999\u00a0 | $ | 1,824\u00a0 | |||||||
| Consumer | 76\u00a0 | 132\u00a0 | |||||||||
| Credit Karma | 180\u00a0 | 106\u00a0 | |||||||||
| ProTax | 20\u00a0 | 22\u00a0 | |||||||||
| Total segment operating income | 2,275\u00a0 | 2,084\u00a0 | |||||||||
| Unallocated corporate items: | \u00a0 | \u00a0 | |||||||||
| Share-based compensation expense | (511) | (495) | |||||||||
| Other corporate expenses | (1,327) | (1,124) | |||||||||
| Amortization of acquired technology | (37) | (38) | |||||||||
| Amortization of other acquired intangible assets | (120) | (120) | |||||||||
| Restructuring | (9) | \u2014\u00a0 | |||||||||
| Total unallocated corporate items | (2,004) | (1,777) | |||||||||
| Total operating income | $ | 271\u00a0 | $ | 307\u00a0 |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Net revenue: | \u00a0 | \u00a0 | |||||||||
| QuickBooks Online Accounting | $ | 965\u00a0 | $ | 798\u00a0 | |||||||
| Online Services | 978\u00a0 | 820\u00a0 | |||||||||
| Total Online Ecosystem | 1,943\u00a0 | 1,618\u00a0 | |||||||||
| QuickBooks Desktop Accounting | 296\u00a0 | 376\u00a0 | |||||||||
| Desktop Services and Supplies | 305\u00a0 | 350\u00a0 | |||||||||
| Total Desktop Ecosystem | 601\u00a0 | 726\u00a0 | |||||||||
Global Business Solutions | 2,544\u00a0 | 2,344\u00a0 | |||||||||
| Consumer | 176\u00a0 | 187\u00a0 | |||||||||
| Credit Karma | 524\u00a0 | 405\u00a0 | |||||||||
| ProTax | 39\u00a0 | 42\u00a0 | |||||||||
| Total net revenue | $ | 3,283\u00a0 | $ | 2,978\u00a0 |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Net revenue: | \u00a0 | \u00a0 | |||||||||
Global Business Solutions | $ | 2,544\u00a0 | $ | 2,344\u00a0 | |||||||
| Consumer | 176\u00a0 | 187\u00a0 | |||||||||
| Credit Karma | 524\u00a0 | 405\u00a0 | |||||||||
| ProTax | 39\u00a0 | 42\u00a0 | |||||||||
| Total net revenue | $ | 3,283\u00a0 | $ | 2,978\u00a0 | |||||||
| Operating income: | \u00a0 | \u00a0 | |||||||||
| Global Business Solutions | $ | 1,999\u00a0 | $ | 1,824\u00a0 | |||||||
| Consumer | 76\u00a0 | 132\u00a0 | |||||||||
| Credit Karma | 180\u00a0 | 106\u00a0 | |||||||||
| ProTax | 20\u00a0 | 22\u00a0 | |||||||||
| Total segment operating income | 2,275\u00a0 | 2,084\u00a0 | |||||||||
| Unallocated corporate items: | \u00a0 | \u00a0 | |||||||||
| Share-based compensation expense | (511) | (495) | |||||||||
| Other corporate expenses | (1,327) | (1,124) | |||||||||
| Amortization of acquired technology | (37) | (38) | |||||||||
| Amortization of other acquired intangible assets | (120) | (120) | |||||||||
| Restructuring | (9) | \u2014\u00a0 | |||||||||
| Total unallocated corporate items | (2,004) | (1,777) | |||||||||
| Total operating income | $ | 271\u00a0 | $ | 307\u00a0 |
| \u00a0 | Three Months Ended | ||||||||||
| (In millions) | October 31, 2024 | October 31, 2023 | |||||||||
| Net revenue: | \u00a0 | \u00a0 | |||||||||
| QuickBooks Online Accounting | $ | 965\u00a0 | $ | 798\u00a0 | |||||||
| Online Services | 978\u00a0 | 820\u00a0 | |||||||||
| Total Online Ecosystem | 1,943\u00a0 | 1,618\u00a0 | |||||||||
| QuickBooks Desktop Accounting | 296\u00a0 | 376\u00a0 | |||||||||
| Desktop Services and Supplies | 305\u00a0 | 350\u00a0 | |||||||||
| Total Desktop Ecosystem | 601\u00a0 | 726\u00a0 | |||||||||
Global Business Solutions | 2,544\u00a0 | 2,344\u00a0 | |||||||||
| Consumer | 176\u00a0 | 187\u00a0 | |||||||||
| Credit Karma | 524\u00a0 | 405\u00a0 | |||||||||
| ProTax | 39\u00a0 | 42\u00a0 | |||||||||
| Total net revenue | $ | 3,283\u00a0 | $ | 2,978\u00a0 |
| 13. Restructuring |
| (In millions) | Accrued July\u00a031, 2024 | Additional Costs/ Adjustments | Cash Payments | Non-Cash Items | Accrued October\u00a031, 2024 | Total Costs Incurred to Date | Total Expected Plan Cost | ||||||||||||||||||||||||||||||||||
Global Business Solutions | $ | 84\u00a0 | $ | 2\u00a0 | $ | (78) | $ | \u2014\u00a0 | $ | 8\u00a0 | $ | 98\u00a0 | $ | 100\u00a0 | |||||||||||||||||||||||||||
| Consumer | 9\u00a0 | \u2014\u00a0 | (9) | \u2014\u00a0 | \u2014\u00a0 | 9\u00a0 | 9\u00a0 | ||||||||||||||||||||||||||||||||||
| Credit Karma | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | ||||||||||||||||||||||||||||||||||
| ProTax | 2\u00a0 | \u2014\u00a0 | (2) | \u2014\u00a0 | \u2014\u00a0 | 2\u00a0 | 2\u00a0 | ||||||||||||||||||||||||||||||||||
Corporate (1) | 92\u00a0 | 7\u00a0 | (85) | (5) | 9\u00a0 | 123\u00a0 | 126\u00a0 | ||||||||||||||||||||||||||||||||||
| Totals | $ | 187\u00a0 | $ | 9\u00a0 | $ | (174) | $ | (5) | $ | 17\u00a0 | $ | 232\u00a0 | $ | 237\u00a0 |
| (In millions) | Accrued July\u00a031, 2024 | Additional Costs/ Adjustments | Cash Payments | Non-Cash Items | Accrued October\u00a031, 2024 | Total Costs Incurred to Date | Total Expected Plan Cost | ||||||||||||||||||||||||||||||||||
Global Business Solutions | $ | 84\u00a0 | $ | 2\u00a0 | $ | (78) | $ | \u2014\u00a0 | $ | 8\u00a0 | $ | 98\u00a0 | $ | 100\u00a0 | |||||||||||||||||||||||||||
| Consumer | 9\u00a0 | \u2014\u00a0 | (9) | \u2014\u00a0 | \u2014\u00a0 | 9\u00a0 | 9\u00a0 | ||||||||||||||||||||||||||||||||||
| Credit Karma | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | \u2014\u00a0 | ||||||||||||||||||||||||||||||||||
| ProTax | 2\u00a0 | \u2014\u00a0 | (2) | \u2014\u00a0 | \u2014\u00a0 | 2\u00a0 | 2\u00a0 | ||||||||||||||||||||||||||||||||||
Corporate (1) | 92\u00a0 | 7\u00a0 | (85) | (5) | 9\u00a0 | 123\u00a0 | 126\u00a0 | ||||||||||||||||||||||||||||||||||
| Totals | $ | 187\u00a0 | $ | 9\u00a0 | $ | (174) | $ | (5) | $ | 17\u00a0 | $ | 232\u00a0 | $ | 237\u00a0 |
| 14. Subsequent Event |