XML 49 R34.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Jul. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Loss before provision for income taxes by fiscal year consisted of the following:
| Fiscal Year Ended July 31,
| 2016 As Adjusted (1) |  | 2017 As Adjusted (1) |  | 2018
| (in thousands)
Domestic | $ | (67,776 | ) |  | $ | (304,363 | ) |  | $ | (201,666 | )
Foreign | (38,140 | ) |  | (70,423 | ) |  | (88,048 | )
Loss before provision for income taxes | $ | (105,916 | ) |  | $ | (374,786 | ) |  | $ | (289,714 | )
(1) | Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.
Schedule of Components of Income Tax Expense (Benefit) | Provision for income taxes by fiscal year consisted of the following:
| Fiscal Year Ended July 31,
| 2016 As Adjusted (1) |  | 2017 As Adjusted (1) |  | 2018
| (in thousands)
Current: |  |  |  |  |
U.S. federal | $ | — |  |  | $ | — |  |  | $ | 2,059 |
State and local | 140 |  |  | 193 |  |  | 429 |
Foreign | 3,172 |  |  | 8,196 |  |  | 8,541 |
Total current taxes | 3,312 |  |  | 8,389 |  |  | 11,029 |
Deferred: |  |  |  |  |
U.S. federal | — |  |  | (1,342 | ) |  | (3,387 | )
State and local | — |  |  | 13 |  |  | (718 | )
Foreign | (995 | ) |  | (2,208 | ) |  | 523 |
Total deferred taxes | (995 | ) |  | (3,537 | ) |  | (3,582 | )
Provision for income taxes | $ | 2,317 |  |  | $ | 4,852 |  |  | $ | 7,447 |
(1) | Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax and our effective income tax is as follows:
| Fiscal Year Ended July 31,
| 2016 As Adjusted (1) |  | 2017 As Adjusted (1) |  | 2018
| (in thousands)
U.S. tax reform impact | $ | — |  |  | $ | — |  |  | $ | 93,352 |
U.S. federal income tax at statutory rate | (36,011 | ) |  | (127,427 | ) |  | (75,779 | )
Stock-based compensation | 3,655 |  |  | 6,701 |  |  | (73,631 | )
Effect of foreign operations | 15,144 |  |  | 16,891 |  |  | 26,117 |
Change in valuation allowance | 19,268 |  |  | 86,941 |  |  | 25,274 |
Transfer pricing adjustments | — |  |  | 11,822 |  |  | 4,584 |
Intangible asset migration | — |  |  | — |  |  | 4,461 |
Non-deductible expenses | 802 |  |  | 1,693 |  |  | 2,115 |
State income taxes | 140 |  |  | 206 |  |  | (290 | )
Warrant revaluation | (681 | ) |  | 7,185 |  |  | — |
Other | — |  |  | 840 |  |  | 1,244 |
Total | $ | 2,317 |  |  | $ | 4,852 |  |  | $ | 7,447 |
(1) | Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.
Schedule of Deferred Tax Assets and Liabilities | The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:
| As of July 31,
| 2017 As Adjusted (1) |  | 2018
| (in thousands)
Deferred tax assets: |  |  |
Net operating loss carryforward | $ | 135,929 |  |  | $ | 162,914 |
Tax credit carryforward | 13,100 |  |  | 47,839 |
Deferred revenue | 2,378 |  |  | 27,577 |
Stock-based compensation expense | 27,512 |  |  | 21,252 |
Accruals and reserves | 7,427 |  |  | 8,370 |
Property and equipment | 1,118 |  |  | — |
Total deferred tax assets | 187,464 |  |  | 267,952 |
Deferred tax liabilities: |  |  |
Deferred commission expense | (22,535 | ) |  | (27,829 | )
Goodwill and intangible assets | (483 | ) |  | (5,909 | )
Property and equipment | — |  |  | (3,870 | )
Other | (75 | ) |  | (497 | )
Total deferred tax liabilities | (23,093 | ) |  | (38,105 | )
Valuation allowance | (161,195 | ) |  | (226,987 | )
Net deferred tax assets | $ | 3,176 |  |  | $ | 2,860 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, is as follows:
| Fiscal Year Ended July 31,
| 2017 |  | 2018
| (in thousands)
Balance at the beginning of the year | $ | 19,711 |  |  | $ | 42,655 |
Increases related to current year tax positions | 22,571 |  |  | 58,727 |
Increases related to prior year tax positions | 373 |  |  | 4,893 |
Decreases related to prior year tax positions | — |  |  | (14,559 | )
Balance at the end of the year | $ | 42,655 |  |  | $ | 91,716 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=109238393&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration