Stockholders' Equity (Tables)

9 Months Ended

Apr. 30, 2022

The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.


	Three Months Ended				Nine Months Ended
(In millions)	April 30, 2022		April 30, 2021		April 30, 2022		April 30, 2021
Cost of revenue	$	40	$	16	$	105	$	47
Selling and marketing	85		51		232		127
Research and development	138		82		379		187
General and administrative	83		69		246		148
Total share-based compensation expense	$	346	$	218	$	962	$	509

Summary of share-based awards available for grant

A summary of share-based awards available for grant under our plans for the nine months ended April 30, 2022 was as follows:


(Shares in thousands)			Shares Available for Grant
Balance at July 31, 2021			16,851
Additional shares authorized			19,903

Restricted stock units granted (1)			(4,519)
Options granted			—
Share-based awards canceled/forfeited/expired (1) (2)			3,339
Balance at April 30, 2022			35,574

(1)RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant under the 2005 Equity Incentive Plan increase the pool by 2.3 shares for each share forfeited. Through January 20, 2022 shares granted from the Credit Karma Plan reduce the pool by one share for each share granted and shares forfeited and returned to the pool from the Credit Karma Plan increase the pool by one share for each share forfeited. Beginning January 20, 2022, shares forfeited and returned to the pool from the Credit Karma Plan increase the pool by 2.3 shares for each share forfeited. No shares were granted from the Credit Karma Plan after January 20, 2022.

(2)Stock options and RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan and Credit Karma Plan are returned to the pool of shares available for grant. Under the 2005 Equity Incentive Plan, shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant. Under the Credit Karma Plan, shares withheld for income taxes are also returned to the pool of shares available for grant.

Summary of restricted stock unit activity

A summary of restricted stock unit (RSU) and restricted stock activity for the nine months ended April 30, 2022 was as follows:


(Shares in thousands)	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested at July 31, 2021	9,038	$	345.86

Granted (1)	2,134	568.65
Vested	(2,205)	318.74
Forfeited	(813)	354.69
Nonvested at April 30, 2022	8,154	$	410.63

(1)Includes approximately 583,000 RSUs granted to the employees of Mailchimp in substitution of outstanding equity incentive awards with a grant date fair value of $355 million and approximately 325,000 RSUs granted to the employees of Mailchimp in connection with the acquisition with a grant date fair value of $211 million. See Note 5, "Business Combinations."

Summary of stock option activity

A summary of stock option activity for the nine months ended April 30, 2022 was as follows:


	Options Outstanding
(Shares in thousands)	Number of Shares	Weighted Average Exercise Price Per Share
Balance at July 31, 2021	2,204	$	251.48

Granted	—	—
Exercised	(151)	166.02
Canceled or expired	(20)	503.05
Balance at April 30, 2022	2,033	$	255.38

Exercisable at April 30, 2022	1,400	$	188.29