BALANCE SHEET COMPONENTS

9 Months Ended

Apr. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Short-Term Investments

The amortized cost of our short-term investments approximates their fair value. As of July 31, 2018 and April 30, 2019, unrealized gains and losses from our short-term investments were not material. As of July 31, 2018 and April 30, 2019, unrealized losses from securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to our 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, 2018 and April 30, 2019, 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 April 30, 2019
	(in thousands)
Due within one year	$	373,305
Due in one to two years	122,328
Total	$	495,633

Property and Equipment, Net

Property and equipment, net consists of the following:



	Estimated Useful Life	As of
	Estimated Useful Life	July 31, 2018			April 30, 2019
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	131,805		$	187,380
Demonstration units	12	53,547			59,254
Leasehold improvements	⁽¹⁾	19,916			42,862
Furniture and fixtures	60	7,636			13,051
Total property and equipment, gross		212,904			302,547
Less: accumulated depreciation		(127,793		)	(167,985		)
Total property and equipment, net		$	85,111		$	134,562


(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 $11.3 million and $31.9 million for the three and nine months ended April 30, 2018 and $16.4 million and $43.3 million for the three and nine months ended April 30, 2019, respectively.

Goodwill and Intangible Assets, Net

The changes in the carrying value of goodwill during the nine months ended April 30, 2019 were as follows:



	Carrying Amount
	(in thousands)
Balance as of July 31, 2018	$	87,759
Acquired in Frame Acquisition	97,328
Other	93
Balance as of April 30, 2019	$	185,180

Intangible assets, net consists of the following:



	As of
	July 31, 2018			April 30, 2019
	(in thousands)
Developed technology	$	47,500		$	79,300
Customer relationships	6,650			8,860
Trade name	—			4,170
Total intangible assets, gross	54,150			92,330
Less:
Accumulated amortization of developed technology	(6,956		)	(17,515		)
Accumulated amortization of customer relationships	(1,828		)	(3,002		)
Accumulated amortization of trade name	—			(695		)
Total accumulated amortization	(8,784		)	(21,212		)
Total intangible assets, net	$	45,366		$	71,118

Amortization expense related to our intangible assets is being recognized in the condensed consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name.

The estimated future amortization expense of our intangible assets is as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2019 (remaining three months)	$	4,345
2020	17,380
2021	17,380
2022	16,183
2023	10,856
Thereafter	4,974
Total	$	71,118

Other Assets—Non-Current

Other assets—non-current consists of the following:



	As of
	July 31, 2018		April 30, 2019
	(in thousands)
Other tax assets—non-current	$	30,927	$	—
Deferred tax assets—non-current	2,860		3,064
Other	4,068		9,756
Total other assets—non-current	$	37,855	$	12,820

The decrease in other tax assets—non-current from July 31, 2018 to April 30, 2019 was due primarily to the reclassification of an $18.0 million corporate income tax receivable to prepaid expenses and other current assets, as the refund is expected to be received within the next 12 months, as well as the reversal of an uncertain tax position resulting from a change in tax election during the third quarter of fiscal 2019.

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:



	As of
	July 31, 2018		April 30, 2019
	(in thousands)
Accrued commissions	$	21,660	$	23,881
Accrued vacation	10,548		14,963
Contributions to ESPP withheld	21,931		8,901
Accrued bonus	12,129		8,110
Payroll taxes payable	9,563		7,382
Other	9,567		11,795
Total accrued compensation and benefits	$	85,398	$	75,032

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of
	July 31, 2018		April 30, 2019
	(in thousands)
Accrued professional services	$	5,838	$	2,593
Income taxes payable	20,863		2,901
Other	4,981		14,525
Total accrued expenses and other current liabilities	$	31,682	$	20,019

The decrease in income taxes payable from July 31, 2018 to April 30, 2019 was due primarily to an $18.0 million estimated corporate income tax payment made during the second quarter of fiscal 2019.