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CONVERTIBLE SENIOR NOTES (Tables)
 6 Months Ended
Jan. 31, 2020
Debt Disclosure [Abstract]  
Net Proceeds from Notes The total net proceeds from the Notes are as follows:
 
Amount
 
(in thousands)
Principal amount
$
575,000

Less: initial purchasers' discount
(10,781
)
Less: cost of the bond hedges
(143,175
)
Add: proceeds from the sale of warrants
87,975

Less: other issuance costs
(707
)
Net proceeds
$
508,312
Components of Notes
The Notes consisted of the following:
 
As of
 
July 31,
2019
 
January 31,
2020
 
 
 
 
 
(in thousands)
Principal amounts:
 
 
 
Principal
$
575,000

 
$
575,000

Unamortized debt discount (1)
(109,956
)
 
(95,372
)
Unamortized debt issuance costs (1)
(6,134
)
 
(5,320
)
Net carrying amount
$
458,910

 
$
474,308

Carrying amount of equity component (2)
$
148,598

 
$
148,598

 
(1)
Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the Notes using the effective interest rate method. The effective interest rate is 6.62%.
(2)
Included in the condensed consolidated balance sheets within additional paid-in capital, net of $3.0 million in equity issuance costs.
Interest Expense Recognized
The following table sets forth the total interest expense recognized related to the Notes:
 
Three Months Ended
January 31,
 
Six Months Ended
January 31,
 
2019
 
2020
 
2019
 
2020
 
 
 
 
 
 
 
 
 
(in thousands)
Interest expense related to amortization of debt discount
$
6,883

 
$
7,352

 
$
13,653

 
$
14,584

Interest expense related to amortization of debt issuance costs
384

 
411

 
762

 
814

Total interest expense
$
7,267


$
7,763


$
14,415

 
$
15,398