XML 33 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)
 3 Months Ended
Oct. 31, 2017
Revenue Recognition and Deferred Revenue [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Select condensed consolidated balance sheet line items, which reflects the adoption of ASC 606, are as follows:
Balance Sheet:
As of July 31, 2017
 
As Previously Reported
 
Impact of Adoption
 
As Adjusted
 
(in thousands)
Assets
 
 
 
 
 
Deferred commissions - current
$
27,679

 
$
(3,836
)
(1)
$
23,843

Deferred commissions - non-current
33,709

 
15,975

(1)
49,684

Total deferred commissions
$
61,388

 
$
12,139

 
$
73,527

Liabilities
 
 
 
 
 
Deferred revenue - current
$
233,498

 
$
(63,375
)
(2)
$
170,123

Deferred revenue - non-current
292,573

 
(93,640
)
(2)
198,933

Total deferred revenue
$
526,071

 
$
(157,015
)
 
$
369,056

 
 
 
 
 
 
Accrued expenses and other current liabilities
$
9,414

 
$
293

(3)
$
9,707

 
 
 
 
 
 
Stockholders' equity
$
48,202

 
$
168,861

 
$
217,063

_______________________
(1) Impact of cumulative change in commissions expense
(2) Impact of cumulative change in revenue
(3) Impact of cumulative change in provision for income taxes

    

Select unaudited condensed consolidated statement of operations line items, which reflects the adoption of ASC 606, are as follows:
 
Three Months Ended October 31, 2016
 
As Previously Reported
 
Impact of Adoption
 
As Adjusted
Revenue
(in thousands, except per share data)
Product
$
129,657

 
$
23,879

 
$
153,536

Support and other services
37,152

 
(2,127
)
 
35,025

Total revenue
$
166,809

 
$
21,752

 
$
188,561

Gross profit
$
97,047

 
$
21,752

 
$
118,799

Operating expenses
 
 
 
 
 
Sales and marketing expenses
$
128,775

 
$
(150
)
 
$
128,625

Loss from operations
$
(136,381
)
 
$
21,902

 
$
(114,479
)
Net Loss
$
(162,169
)
 
$
21,867

 
$
(140,302
)
Basic and diluted net loss per share
$
(2.18
)
 
$
0.29

 
$
(1.89
)
    
Unaudited revenue by geographic location based on bill-to location, which reflects the adoption of ASC 606, are as follows:
    
 
Three Months Ended October 31, 2016
 
As Previously Reported
 
Impact of Adoption
 
As Adjusted
 
(in thousands)
U.S.
$
102,871

 
$
3,297

 
$
106,168

Europe, the Middle East and Africa
24,248

 
1,168

 
25,416

Asia-Pacific
28,908

 
16,939

 
45,847

Other Americas
10,782

 
348

 
11,130

Total revenue
$
166,809

 
$
21,752

 
$
188,561


The adoption impacted certain line items in the cash flows from operating activities as follows:
 
Three Months Ended October 31, 2016
 
As Previously Reported
 
Impact of Adoption
 
As Adjusted
Cash flows from operating activities:
(in thousands)
Net loss
$
(162,169
)
 
$
21,867

 
$
(140,302
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Deferred commissions
$
(4,630
)
 
$
(150
)
 
$
(4,780
)
Accrued expenses and other liabilities
$
682

 
$
35

 
$
717

Deferred revenue
$
72,958

 
$
(21,752
)
 
$
51,206
Revenue by Arrangement, Disclosure
The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance:

 
Three Months Ended October 31,
 
2016
 
2017
 
(in thousands)
Software revenue
$
104,745

 
$
138,214

Hardware revenue
48,791

 
80,838

Support and other services revenue
35,025

 
56,500

Total revenue
$
188,561

 
$
275,552
Deferred Commissions, by Arrangement, Disclosure
Significant changes in the balance of total deferred commissions (contract asset) during the three months ended October 31, 2017 are as follows:
 
As of July 31, 2017 *As Adjusted
 
Additions
 
Commissions Recognized
 
As of October 31, 2017
 
(in thousands)
Deferred commissions
$
73,527

 
$
33,807

 
$
(25,350
)
 
$
81,984
Deferred Revenue, by Arrangement, Disclosure
Significant changes in the balance of total deferred revenue (contract liability) during the three months ended October 31, 2017 are as follows:
 
As of July 31, 2017 *As Adjusted
 
Additions
 
Revenue Recognized
 
As of October 31, 2017
 
(in thousands)
Deferred revenue
$
369,056

 
$
96,288

 
$
(56,500
)
 
$
408,844