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

12 Months Ended

Jul. 31, 2021

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, 2021				July 31, 2020
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on consolidated balance sheets:
Cash and cash equivalents	$	2,562	$	2,562	$	6,442	$	6,442
Investments	1,305		1,308		600		608
Funds held for customers	456		457		455		455
Total cash and cash equivalents, investments, and funds held for customers	$	4,323	$	4,327	$	7,497	$	7,505

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


	July 31, 2021				July 31, 2020
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	2,819	$	2,819	$	6,697	$	6,697
Available-for-sale debt securities:
Municipal bonds	37		38		9		9
Corporate notes	1,397		1,400		744		752
U.S. agency securities	70		70		47		47
Total available-for-sale debt securities	1,504		1,508		800		808
Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments	$	4,323	$	4,327	$	7,497	$	7,505

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, 2021, 2020 and 2019 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, except for certain unrealized losses described below. Gross unrealized gains and losses on our available-for-sale debt securities at July 31, 2021 and July 31, 2020 were not significant.

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 consolidated statement of operations, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of our consolidated balance sheets. We determined there were no credit losses related to available-for-sale securities as of July 31, 2021. Unrealized losses on available-for-sale debt securities at July 31,

2021 were not significant. 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 funds held for customers, classified by the stated maturity date of the security at the dates indicated.


	July 31, 2021				July 31, 2020
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	551	$	553	$	389	$	390
Due within two years	550		551		256		261
Due within three years	398		398		137		139
Due after three years	5		6		18		18
Total available-for-sale debt securities	$	1,504	$	1,508	$	800	$	808

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


(In millions)	July 31, 2021		July 31, 2020		July 31, 2019		July 31, 2018
Restricted cash and restricted cash equivalents	$	257	$	255	$	236	$	167
Restricted available-for-sale debt securities	200		200		200		200
Total funds held for customers	$	457	$	455	$	436	$	367