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BALANCE SHEET COMPONENTS | 12 Months Ended
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Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Short-Term Investments The amortized cost of our short-term investments approximates their fair value. As of July 31, 2017 and 2018, unrealized gains and losses from our short-term investments were not material. As of July 31, 2017 and 2018, securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to short-term investments are due to interest rate fluctuations, as opposed to credit quality. In addition, unless we need cash to support our current operations, we do not intend to sell and it is not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As a result, at July 31, 2017 and 2018, there were no other-than-temporary impairments for these investments. The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:
| As of July 31, 2018
| (in thousands)
Due within one year | $ | 463,940 |
Due in one year through three years | 164,388 |
Total | $ | 628,328 |
Property and Equipment, Net Property and equipment, net consists of the following:
| Estimated Useful Life |  | As of July 31,
| 2017 |  | 2018
| (in months) |  | (in thousands)
Computer, production, engineering, and other equipment | 36 |  | $ | 85,280 |  |  | $ | 131,805 |
Demonstration units | 12 |  | 46,387 |  |  | 53,547 |
Leasehold improvements | (1) |  | 10,562 |  |  | 19,916 |
Furniture and fixtures | 60 |  | 4,744 |  |  | 7,636 |
Total property and equipment, gross |  |  | 146,973 |  |  | 212,904 |
Less: Accumulated depreciation and amortization |  |  | (88,901 | ) |  | (127,793 | )
Total property and equipment, net |  |  | $ | 58,072 |  |  | $ | 85,111 |
(1) | Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.
Depreciation expense related to our property and equipment was $26.4 million, $36.2 million and $43.7 million for the fiscal years ended July 31, 2016, 2017 and 2018, respectively. Intangible Assets, Net Intangible assets, net consists of the following:
| As of July 31,
| 2017 |  | 2018
| (in thousands)
Indefinite-lived intangible asset: |  |  |
In-process R&D (1) | $ | 16,100 |  |  | $ | — |
Finite-lived intangible assets: |  |  |
Developed technology (1) | 7,300 |  |  | 47,500 |
Customer relationships | 4,830 |  |  | 6,650 |
Total finite-lived intangible assets, gross | 12,130 |  |  | 54,150 |
Total intangible assets, gross | 28,230 |  |  | 54,150 |
Less: |  |  |
Accumulated amortization of developed technology | (1,314 | ) |  | (6,956 | )
Accumulated amortization of customer relationships | (915 | ) |  | (1,828 | )
Total accumulated amortization | (2,229 | ) |  | (8,784 | )
Intangible assets, net | $ | 26,001 |  |  | $ | 45,366 |
(1) | We started amortizing in-process R&D during the first quarter of fiscal 2018, as the related technology was completed and made generally available in the first quarter of fiscal 2018. We are amortizing developed technology using the straight-line method over a useful life of five years. Based on the foregoing, the balance of in-process R&D is now presented as part of developed technology as of July 31, 2018.
The amortization expense related to our finite-lived intangible assets is being recognized in the consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships. The changes in the net book value of intangible assets, net are as follows:
| As of July 31,
| 2017 |  | 2018
| (in thousands)
Intangible assets, net—beginning balance | $ | — |  |  | $ | 26,001 |
Acquired intangible assets | 28,230 |  |  | 25,920 |
Amortization of intangible assets (1) | (2,229 | ) |  | (6,555 | )
Intangible assets, net—ending balance | $ | 26,001 |  |  | $ | 45,366 |
(1) | Represents amortization expense related to finite-lived intangible assets recognized during the year in the consolidated statements of operations, within product cost of revenue and sales and marketing expenses.
The estimated future amortization expense of our finite-lived intangible assets is as follows:
Fiscal Year Ending July 31: | Amount
| (in thousands)
2019 | $ | 9,551 |
2020 | 9,511 |
2021 | 9,511 |
2022 | 8,314 |
2023 | 3,971 |
Thereafter | 4,508 |
Total | $ | 45,366 |
Goodwill The changes in the carrying amount of goodwill are as follows:
| Carrying Amount
| (in thousands)
Balance at July 31, 2016 | $ | — |
Acquired in Calm Acquisition | 4,819 |
Acquired in PernixData Acquisition | 11,853 |
Balance at July 31, 2017 | 16,672 |
Acquired in Netsil Acquisition | 53,085 |
Acquired in Minjar Acquisition | 18,002 |
Balance at July 31, 2018 | $ | 87,759 |
Other Assets—Non-Current Other assets—non-current consists of the following:
| As of July 31,
| 2017 |  | 2018
| (in thousands)
Other tax assets—non-current | $ | — |  |  | $ | 30,927 |
Deferred tax assets—non-current | 3,420 |  |  | 2,860 |
Other | 4,229 |  |  | 4,068 |
Total other assets—non-current | $ | 7,649 |  |  | $ | 37,855 |
Other tax assets—non-current as of July 31, 2018 represents a receivable associated with alternative minimum tax credit carryforwards which will be refundable as a result of the Tax Cuts and Jobs Act. For additional details, refer to Note 11. Accrued Compensation and Benefits Accrued compensation and benefits consists of the following:
| As of July 31,
| 2017 |  | 2018
| (in thousands)
Contributions to ESPP withheld | $ | 14,371 |  |  | $ | 21,931 |
Accrued commissions | 20,388 |  |  | 21,660 |
Accrued bonus | 7,342 |  |  | 12,129 |
Accrued vacation | 6,286 |  |  | 10,548 |
Payroll taxes payable | 3,434 |  |  | 9,563 |
Other | 5,700 |  |  | 9,567 |
Total accrued compensation and benefits | $ | 57,521 |  |  | $ | 85,398 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consists of the following:
| As of July 31,
| 2017 |  | 2018
| (in thousands)
Income taxes payable (1)(2) | $ | 3,873 |  |  | $ | 20,863 |
Accrued professional services | 4,167 |  |  | 5,838 |
Other | 1,667 |  |  | 4,981 |
Total accrued expenses and other current liabilities | $ | 9,707 |  |  | $ | 31,682 |
(1) | Balance as of July 31, 2017 was adjusted to reflect the impact of the adoption of ASC 606 on income taxes. See Note 3 for a summary of adjustments.
(2) | The increase in income taxes payable during the fiscal year ended July 31, 2018 was due primarily to a payable related to the alternative minimum tax associated with the migration of certain intangible assets. For additional details, refer to Note 11.

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