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Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________ 
FORM 10-Q
 _____________________
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2021
or
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File Number 001-35594
PALO ALTO NETWORKS, INC.
(Exact name of registrant as specified in its charter)  
 
Delaware20-2530195
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3000 Tannery Way
Santa Clara, California 95054
(Address of principal executive office, including zip code)
(408753-4000
(Registrant’s telephone number, including area code)
NA
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.0001 par value per sharePANWNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerEmerging growth company
Non-accelerated filerSmaller reporting company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No  
The number of shares outstanding of the registrant’s common stock as of May 13, 2021 was 97,390,878.



Table of Contents
TABLE OF CONTENTS

Page
PART I - FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.

- 2 -

Table of Contents

RISK FACTOR SUMMARY
Our business is subject to numerous risks and uncertainties, including those highlighted in Part II, Item 1A titled “Risk Factors.” These risks include, but are not limited to, the following:
The ongoing global COVID-19 outbreak could harm our business and results of operations.
Our business and operations have experienced growth in recent periods, and if we do not effectively manage any future growth or are unable to improve our systems, processes, and controls, our operating results could be adversely affected.
Our operating results may vary significantly from period to period and be unpredictable, which could cause the market price of our common stock to decline.
The sudden and significant global economic downturn could have an adverse effect on our business and operating results.
Our revenue growth rate in recent periods may not be indicative of our future performance.
We have a history of losses, anticipate increasing our operating expenses in the future, and may not be able to achieve or maintain profitability or maintain or increase cash flow on a consistent basis, which could cause our business, financial condition, and operating results to suffer.
If we are unable to sell new and additional product, subscription, and support offerings to our end-customers, our future revenue and operating results will be harmed.
We face intense competition in our market and we may lack sufficient financial or other resources to maintain or improve our competitive position.
A network or data security incident may allow unauthorized access to our network or data, harm our reputation, create additional liability, and adversely impact our financial results.
Reliance on shipments at the end of the quarter could cause our revenue for the applicable period to fall below expected levels.
Seasonality may cause fluctuations in our revenue.
If we are unable to hire, integrate, train, retain, and motivate qualified personnel and senior management, our business could suffer.
If we are not successful in executing our strategy to increase sales of our products, subscriptions and support offerings to new and existing medium and large enterprise end-customers, our operating results may suffer.
We rely on revenue from subscription and support offerings, and because we recognize revenue from subscription and support over the term of the relevant service period, downturns or upturns in sales of these subscription and support offerings are not immediately reflected in full in our operating results.
Defects, errors, or vulnerabilities in our products, subscriptions, or support offerings, the failure of our products or subscriptions to block a virus or prevent a security breach, misuse of our products, or risks of product liability claims could harm our reputation and adversely impact our operating results.
False detection of applications, viruses, spyware, vulnerability exploits, data patterns, or URL categories could adversely affect our business.
We rely on our channel partners to sell substantially all of our products, including subscriptions and support, and if these channel partners fail to perform, our ability to sell and distribute our products and subscriptions will be limited, and our operating results will be harmed.
If we do not accurately predict, prepare for, and respond promptly to rapidly evolving technological and market developments and successfully manage product and subscription introductions and transitions to meet changing end-customer needs in the enterprise security market, our competitive position and prospects will be harmed.
Our current research and development efforts may not produce successful products, subscriptions, or features that result in significant revenue, cost savings or other benefits in the near future, if at all.
We may acquire other businesses, which could require significant management attention, disrupt our business, dilute stockholder value, and adversely affect our operating results.
- 3 -

Table of Contents
Because we depend on manufacturing partners to build and ship our products, we are susceptible to manufacturing and logistics delays and pricing fluctuations that could prevent us from shipping customer orders on time, if at all, or on a cost-effective basis, which may result in the loss of sales and end-customers.
Managing the supply of our products and product components is complex. Insufficient supply and inventory may result in lost sales opportunities or delayed revenue, while excess inventory may harm our gross margins.
Because some of the key components in our products come from limited sources of supply, we are susceptible to supply shortages or supply changes, which could disrupt or delay our scheduled product deliveries to our end-customers and may result in the loss of sales and end-customers.
The sales prices of our products and subscriptions may decrease, which may reduce our gross profits and adversely impact our financial results.
We generate a significant amount of revenue from sales to distributors, resellers, and end-customers outside of the United States, and we are therefore subject to a number of risks associated with international sales and operations.
We are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and operating results.
We are exposed to the credit and liquidity risk of some of our channel partners and end-customers, and to credit exposure in weakened markets, which could result in material losses.
A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks.
Our ability to sell our products and subscriptions is dependent on the quality of our technical support services and those of our channel partners, and the failure to offer high-quality technical support services could have a material adverse effect on our end-customers’ satisfaction with our products and subscriptions, our sales, and our operating results.
Claims by others that we infringe their proprietary technology or other rights could harm our business.
Our proprietary rights may be difficult to enforce or protect, which could enable others to copy or use aspects of our products or subscriptions without compensating us.
Our use of open source software in our products and subscriptions could negatively affect our ability to sell our products and subscriptions and subject us to possible litigation.
We license technology from third parties, and our inability to maintain those licenses could harm our business.
Our failure to adequately protect personal information could have a material adverse effect on our business.
We face risks associated with having operations and employees located in Israel.
We are subject to governmental export and import controls that could subject us to liability or impair our ability to compete in international markets.
Our failure to raise additional capital or generate the significant capital necessary to expand our operations and invest in new products and subscriptions could reduce our ability to compete and could harm our business.
We have a corporate structure aligned with the international nature of our business activities, and if we do not achieve increased tax benefits as a result of our corporate structure, our financial condition and operating results could be adversely affected.
We may not have the ability to raise the funds necessary to settle conversions of our convertible senior notes, repurchase our convertible senior notes upon a fundamental change, or repay our convertible senior notes in cash at their maturity, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of our convertible senior notes.
Our charter documents and Delaware law, as well as certain provisions contained in the indentures governing our convertible senior notes, could discourage takeover attempts and lead to management entrenchment, which could also reduce the market price of our common stock.
- 4 -

Table of Contents
PART I
ITEM 1.    FINANCIAL STATEMENTS
PALO ALTO NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions, except per share data)

April 30, 2021July 31, 2020
Assets
Current assets:
Cash and cash equivalents$1,886.1 $2,958.0 
Short-term investments1,059.3 789.8 
Accounts receivable, net of allowance for credit losses of $9.8 and $2.3 at April 30, 2021 and July 31, 2020, respectively
766.8 1,037.1 
Prepaid expenses and other current assets428.7 344.3 
Total current assets4,140.9 5,129.2 
Property and equipment, net322.7 348.1 
Operating lease right-of-use assets258.7 258.7 
Long-term investments885.4 554.4 
Goodwill2,713.1 1,812.9 
Intangible assets, net530.3 358.2 
Other assets711.0 603.9 
Total assets$9,562.1 $9,065.4 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$71.8 $63.6 
Accrued compensation252.8 322.2 
Accrued and other liabilities261.5 256.8 
Deferred revenue2,421.2 2,049.1 
Total current liabilities3,007.3 2,691.7 
Convertible senior notes, net3,190.6 3,084.1 
Long-term deferred revenue1,953.8 1,761.1 
Long-term operating lease liabilities317.7 336.6 
Other long-term liabilities95.5 90.1 
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at April 30, 2021 and July 31, 2020
  
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 97.4 and 96.3 shares issued and outstanding at April 30, 2021 and July 31, 2020, respectively
2,541.1 2,259.2 
Accumulated other comprehensive income3.6 10.5 
Accumulated deficit(1,547.5)(1,167.9)
Total stockholders’ equity997.2 1,101.8 
Total liabilities and stockholders’ equity$9,562.1 $9,065.4 

See notes to condensed consolidated financial statements.
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PALO ALTO NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions, except per share data)

Three Months EndedNine Months Ended
April 30,April 30,
2021202020212020
Revenue:
Product$288.9 $280.9 $780.9 $758.6 
Subscription and support785.0 588.5 2,255.9 1,699.4 
Total revenue1,073.9 869.4 3,036.8 2,458.0 
Cost of revenue:
Product81.9 73.3 219.7 207.1 
Subscription and support248.7 185.0 696.3 502.0 
Total cost of revenue330.6 258.3 916.0 709.1 
Total gross profit743.3 611.1 2,120.8 1,748.9 
Operating expenses:
Research and development311.0 196.3 815.1 552.2 
Sales and marketing448.0 388.4 1,264.0 1,129.0 
General and administrative94.7 82.9 285.4 228.9 
Total operating expenses853.7 667.6 2,364.5 1,910.1 
Operating loss(110.4)(56.5)(243.7)(161.2)
Interest expense(41.0)(19.4)(121.9)(57.3)
Other income, net1.0 8.1 2.9 35.1 
Loss before income taxes(150.4)(67.8)(362.7)(183.4)
Provision for (benefit from) income taxes(5.3)7.0 16.9 24.7 
Net loss$(145.1)$(74.8)$(379.6)$(208.1)
Net loss per share, basic and diluted$(1.50)$(0.77)$(3.95)$(2.14)
Weighted-average shares used to compute net loss per share, basic and diluted96.9 96.7 96.1 97.2 

See notes to condensed consolidated financial statements.
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PALO ALTO NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, in millions)

Three Months EndedNine Months Ended
April 30,April 30,
2021202020212020
Net loss$(145.1)$(74.8)$(379.6)$(208.1)
Other comprehensive income (loss), net of tax:
Change in unrealized gains (losses) on investments(0.8)0.4 (2.4)2.0 
Change in unrealized gains (losses) on cash flow hedges(5.5)(0.6)(4.5)(0.3)
Other comprehensive income (loss)(6.3)(0.2)(6.9)1.7 
Comprehensive loss$(151.4)$(75.0)$(386.5)$(206.4)

See notes to condensed consolidated financial statements.
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PALO ALTO NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited, in millions)

Three Months Ended April 30, 2021
 Common Stock
and
Additional Paid-In Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated
Deficit
Total 
Stockholders’
Equity
 SharesAmount
Balance as of January 31, 202197.2 $2,429.8 $9.9 $(1,402.4)$1,037.3 
Net loss— — — (145.1)(145.1)
Other comprehensive loss— — (6.3)— (6.3)
Issuance of common stock in connection with employee equity incentive plans1.2 58.0 — — 58.0 
Taxes paid related to net share settlement of equity awards— (6.6)— — (6.6)
Share-based compensation for equity-based awards— 248.7 — — 248.7 
Repurchase and retirement of common stock(1.0)(350.0)— — (350.0)
Temporary equity reclassification— 161.2 — — 161.2 
Balance as of April 30, 202197.4 $2,541.1 $3.6 $(1,547.5)$997.2 

Three Months Ended April 30, 2020
 Common Stock
and
Additional Paid-In Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated
Deficit
Total 
Stockholders’
Equity
 SharesAmount
Balance as of January 31, 202099.7 $2,644.5 $(1.8)$(1,034.2)$1,608.5 
Net loss— — — (74.8)(74.8)
Other comprehensive loss— — (0.2)— (0.2)
Issuance of common stock in connection with employee equity incentive plans1.0 46.4 — — 46.4 
Taxes paid related to net share settlement of equity awards— (4.8)— — (4.8)
Share-based compensation for equity-based awards— 169.6 — — 169.6 
Repurchase and retirement of common stock(4.2)(1,000.0)— — (1,000.0)
Balance as of April 30, 202096.5 $1,855.7 $(2.0)$(1,109.0)$744.7 


Nine Months Ended April 30, 2021
 Common Stock
and
Additional Paid-In Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated
Deficit
Total 
Stockholders’
Equity
 SharesAmount
Balance as of July 31, 202096.3 $2,259.2 $10.5 $(1,167.9)$1,101.8 
Net loss— — — (379.6)(379.6)
Other comprehensive loss— — (6.9)— (6.9)
Issuance of common stock in connection with employee equity incentive plans2.9 103.7 — — 103.7 
Taxes paid related to net share settlement of equity awards— (22.0)— — (22.0)
Share-based compensation for equity-based awards— 709.5 — — 709.5 
Repurchase and retirement of common stock(3.1)(850.0)— — (850.0)
Issuance of common and restricted common stock in connection with acquisition1.3 340.7 — — 340.7 
Balance as of April 30, 202197.4 $2,541.1 $3.6 $(1,547.5)$997.2 


Nine Months Ended April 30, 2020
 Common Stock
and
Additional Paid-In Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated
Deficit
Total 
Stockholders’
Equity
 SharesAmount
Balance as of July 31, 201996.8 $2,490.9 $(3.7)$(900.9)$1,586.3 
Net loss— — — (208.1)(208.1)
Other comprehensive income— — 1.7 — 1.7 
Issuance of common stock in connection with employee equity incentive plans2.8 83.5 — — 83.5 
Taxes paid related to net share settlement of equity awards— (16.8)— — (16.8)
Share-based compensation for equity-based awards— 496.2 — — 496.2 
Repurchase and retirement of common stock(5.1)(1,198.1)— — (1,198.1)
Settlement of warrants2.0 — — — — 
Balance as of April 30, 202096.5 $1,855.7 $(2.0)$(1,109.0)$744.7 

See notes to condensed consolidated financial statements.
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PALO ALTO NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
Nine Months Ended
April 30,
20212020
Cash flows from operating activities
Net loss
$(379.6)$(208.1)
Adjustments to reconcile net loss to net cash provided by operating activities:
Share-based compensation for equity-based awards664.5 484.2 
Depreciation and amortization191.6 145.6 
Gain related to facility exit (3.1)
Amortization of deferred contract costs208.3 171.4 
Amortization of debt discount and debt issuance costs106.5 47.0 
Amortization of operating lease right-of-use assets32.6 34.2 
Amortization of investment premiums, net of accretion of purchase discounts9.2 (6.2)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net
301.3 (67.2)
Prepaid expenses and other assets
(370.6)(208.0)
Accounts payable
3.4 (22.8)
Accrued compensation
(72.7)(71.6)
Accrued and other liabilities
(64.4)(47.1)
Deferred revenue
547.1 453.7 
Net cash provided by operating activities1,177.2 702.0 
Cash flows from investing activities
Purchases of investments(1,494.1)(295.5)
Proceeds from sales of investments36.7 310.8 
Proceeds from maturities of investments845.1 1,706.4 
Business acquisitions, net of cash acquired(777.3)(583.5)
 Purchases of property, equipment, and other assets
(88.6)(182.6)
Net cash provided by (used in) investing activities(1,478.2)955.6 
Cash flows from financing activities
Payments for debt issuance costs
(0.2) 
Repurchases of common stock
(850.0)(1,198.1)
Proceeds from sales of shares through employee equity incentive plans
103.7 83.7 
Payments for taxes related to net settlement of equity awards
(21.9)(16.8)
Payments for deferred consideration related to business acquisitions
 (1.3)
Net cash used in financing activities(768.4)(1,132.5)
Net increase (decrease) in cash, cash equivalents, and restricted cash(1,069.4)525.1 
Cash, cash equivalents, and restricted cash - beginning of period2,961.7 965.0 
Cash, cash equivalents, and restricted cash - end of period $1,892.3 $1,490.1 
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents$1,886.1 $1,484.7 
Restricted cash included in prepaid expenses and other current assets5.2 2.7 
Restricted cash included in other assets1.0 2.7 
Total cash, cash equivalents, and restricted cash$1,892.3 $1,490.1 
Non-cash investing and financing activities
Equity consideration for business acquisitions$(365.4)$(11.0)
See notes to condensed consolidated financial statements.

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 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Palo Alto Networks, Inc. (the “Company,” “we,” “us,” or “our”), located in Santa Clara, California, was incorporated in March 2005 under the laws of the State of Delaware and commenced operations in April 2005. We empower enterprises, service providers, and government entities to secure all users, applications, data, networks, clouds and devices with comprehensive visibility and context continuously across all locations.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the Securities and Exchange Commission (“SEC”) on September 4, 2020. Our condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Our condensed consolidated financial statements are unaudited but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. Our condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19.
Summary of Significant Accounting Policies
There have been no material changes to our significant accounting policies as of and for the nine months ended April 30, 2021, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, except for the change in our accounting policies for credit losses due to our adoption of the new credit losses guidance. Refer to “Recently Adopted Accounting Pronouncements” below.
Recently Adopted Accounting Pronouncements
Credit Losses
In June 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on the accounting for credit losses on most financial assets and certain financial instruments. The standard replaces the incurred loss model with an expected credit loss model for financial assets measured at amortized cost, including trade accounts receivables and financing receivables. Credit losses on available-for-sale debt securities are required to be recorded through an allowance rather than as a write-down.
We adopted this standard in our first quarter of fiscal 2021 using the modified-retrospective approach. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. We updated the following accounting policies as a result of the adoption of this guidance.
Cash, Cash Equivalents, and Investments
We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Investments not considered cash equivalents, and with maturities of one year or less from the condensed consolidated balance sheet date, are classified as short-term investments. Investments with maturities greater than one year from the condensed consolidated balance sheet date are classified as long-term investments.
We classify our investments in marketable debt securities as available-for-sale at the time of purchase. When the fair value of a security is below its amortized cost, the amortized cost will be reduced to its fair value if it is more likely than not that we are required to sell the impaired security before recovery of its amortized cost basis, or we have the intention to sell the security. If neither of these conditions are met, we determine whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is
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recorded in other income, net in our condensed consolidated statements of operations. Impairment losses that are not credit-related are included in accumulated other comprehensive income (loss) (“AOCI”) in stockholders’ equity.
Accounts Receivable
Trade accounts receivable are recorded at the invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. The allowance for credit losses is based on our assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for credit losses on a collective basis by considering the age of each outstanding invoice, each customer’s expected ability to pay and collection history, current market conditions, and reasonable and supportable forecasts of future economic conditions to determine whether the allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. For the three and nine months ended April 30, 2021 and 2020, the allowance for credit losses activity was not significant.
Financing Receivables
We provide financing arrangements, primarily loans, for certain qualified end-user customers to purchase our products and services. Payment terms on these financing arrangements are up to five years. We evaluate our allowance for credit losses by assessing the risks and losses inherent in our financing receivables on either an individual or a collective basis. Our assessment considers various factors, including lifetime expected losses determined using customer risk profile, current economic conditions that may affect a customer’s ability to pay, and forward-looking economic considerations. Financing receivables are written off when they are considered uncollectible, and related outstanding balances are reversed and charged against the allowance for credit losses. Short-term financing receivables are included in prepaid expenses and other current assets, and long-term financing receivables are included in other assets on our condensed consolidated balance sheets. Refer to Note 5. Financing Receivables for additional information.
Recently Issued Accounting Pronouncements
Debt with Conversion Options
In August 2020, the FASB issued new authoritative guidance to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard reduces the number of models used to account for convertible instruments and simplifies both the classification of debt on the balance sheet and the earnings per share calculation. The standard is effective for us in our first quarter of fiscal 2023 and will be applied on a modified retrospective basis. Early adoption is permitted from our first quarter of fiscal 2022. We are currently evaluating the impact of this standard on our condensed consolidated financial statements.
2. Revenue
Disaggregation of Revenue
The following table presents revenue by geographic theater (in millions):
Three Months Ended April 30,Nine Months Ended April 30,
2021202020212020
Revenue:
Americas
United States$685.4 $553.5 $1,957.8 $1,554.0 
Other Americas49.1 40.7 137.9 114.5 
Total Americas734.5 594.2 2,095.7 1,668.5 
Europe, the Middle East, and Africa (“EMEA”)210.2 171.5 586.9 485.3 
Asia Pacific and Japan (“APAC”)129.2 103.7 354.2 304.2 
Total revenue$1,073.9 $869.4 $3,036.8 $2,458.0 
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The following table presents revenue for groups of similar products and services (in millions):
Three Months Ended April 30,Nine Months Ended April 30,
2021202020212020
Revenue:
Product$288.9 $280.9 $780.9 $758.6 
Subscription and support
Subscription473.8 354.3 1,363.5 1,015.5 
Support311.2 234.2 892.4 683.9 
Total subscription and support785.0 588.5 2,255.9 1,699.4 
Total revenue$1,073.9 $869.4 $3,036.8 $2,458.0 
Deferred Revenue
During the nine months ended April 30, 2021 and 2020, we recognized approximately $1.6 billion and $1.3 billion of revenue pertaining to amounts that were deferred as of July 31, 2020 and 2019, respectively.
Remaining Performance Obligations
Revenue expected to be recognized from remaining performance obligations was $4.9 billion as of April 30, 2021, of which we expect to recognize approximately $2.6 billion over the next 12 months and the remainder thereafter.
3. Fair Value Measurements
We categorize assets and liabilities recorded or disclosed at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows:
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.
Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.
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The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of April 30, 2021 and July 31, 2020 (in millions):
April 30, 2021July 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash equivalents:
Money market funds$265.0 $ $ $265.0 $1,589.5 $ $ $1,589.5 
Certificates of deposit  150.2  150.2     
Corporate debt securities 2.0  2.0     
U.S. government and agency securities 130.0  130.0  342.0  342.0 
Total cash equivalents265.0 282.2  547.2 1,589.5 342.0  1,931.5 
Short-term investments:
Certificates of deposit 18.5  18.5  26.9  26.9 
Corporate debt securities 233.6  233.6  100.2  100.2 
U.S. government and agency securities 775.3  775.3  645.6  645.6 
Non-U.S. government and agency securities31.9 31.9 17.1 17.1 
Total short-term investments 1,059.3  1,059.3  789.8  789.8 
Long-term investments:
Certificates of deposit 5.0  5.0  5.0  5.0 
Corporate debt securities 156.3  156.3  91.7  91.7 
U.S. government and agency securities 691.5  691.5  447.4  447.4 
Non-U.S. government and agency securities 32.6  32.6  10.3  10.3 
Total long-term investments 885.4  885.4  554.4  554.4 
Prepaid expenses and other current assets:
Foreign currency forward contracts 11.3  11.3  13.6  13.6 
Total prepaid expenses and other current assets 11.3  11.3  13.6  13.6 
Other assets:
Foreign currency forward contracts     1.4  1.4 
Total other assets:     1.4  1.4 
Total assets measured at fair value$265.0 $2,238.2 $ $2,503.2 $1,589.5 $1,701.2 $ $3,290.7 
Accrued and other liabilities:
Foreign currency forward contracts$ $0.1 $ $0.1 $ $ $ $ 
Total accrued and other liabilities 0.1  0.1     
Total liabilities measured at fair value$ $0.1 $ $0.1 $ $ $ $ 
Refer to Note 10. Debt for the carrying amount and estimated fair value of our convertible senior notes as of April 30, 2021 and July 31, 2020.
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4. Cash Equivalents and Investments
Available-for-sale Debt Securities
The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of April 30, 2021 and July 31, 2020 (in millions):
April 30, 2021
Amortized Cost Unrealized GainsUnrealized LossesFair Value
Cash equivalents:
Certificates of deposit$150.2 $ $ $150.2 
Corporate debt securities2.0   2.0 
U.S. government and agency securities130.0   130.0 
Total available-for-sale cash equivalents$282.2 $ $ $282.2 
Investments:
Certificates of deposit$23.5 $ $ $23.5 
Corporate debt securities389.4 0.6 (0.1)389.9