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FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended
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Oct. 31, 2020
Fair Value Disclosures [Abstract] |
Schedule of Financial Assets and Liabilities Measured on Recurring Basis | The fair value of our financial assets and liabilities measured on a recurring basis is as follows:
| As of July 31, 2020
| Level I |  | Level II |  | Level III |  | Total
| (in thousands)
Financial Assets: |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 142,936 |  |  | $ | — |  |  | $ | — |  |  | $ | 142,936 |
Commercial paper | — |  |  | 8,999 |  |  | — |  |  | 8,999 |
Short-term investments: |  |  |  |  |  |  |
Corporate bonds | — |  |  | 345,265 |  |  | — |  |  | 345,265 |
Commercial paper | — |  |  | 29,702 |  |  | — |  |  | 29,702 |
U.S. government securities | — |  |  | 26,074 |  |  | — |  |  | 26,074 |
Total measured at fair value | $ | 142,936 |  |  | $ | 410,040 |  |  | $ | — |  |  | $ | 552,976 |
Cash |  |  |  |  |  |  | 166,802 |
Total cash, cash equivalents and short-term investments |  |  |  |  |  |  | $ | 719,778 |
| As of October 31, 2020
| Level I |  | Level II |  | Level III |  | Total
| (in thousands)
Financial Assets: |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |
Money market funds | $ | 260,398 |  |  | $ | — |  |  | $ | — |  |  | $ | 260,398 |
Commercial paper | — |  |  | 42,494 |  |  | — |  |  | 42,494 |
Short-term investments: |  |  |  |  |  |  |
Corporate bonds | — |  |  | 532,904 |  |  | — |  |  | 532,904 |
Commercial paper | — |  |  | 151,267 |  |  | — |  |  | 151,267 |
U.S. government securities | — |  |  | 129,432 |  |  | — |  |  | 129,432 |
Total measured at fair value | $ | 260,398 |  |  | $ | 856,097 |  |  | $ | — |  |  | $ | 1,116,495 |
Cash |  |  |  |  |  |  | 201,590 |
Total cash, cash equivalents and short-term investments |  |  |  |  |  |  | $ | 1,318,085 |
The carrying values and estimated fair values of financial instruments not recorded at fair value are as follows:
| As of July 31, 2020 |  | As of October 31, 2020
| Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
| (in thousands)
2023 Notes | $ | 490,222 |  |  | $ | 529,385 |  |  | $ | 498,378 |  |  | $ | 558,894 |
2026 Notes | — |  |  | — |  |  | 496,259 |  |  | 840,900 |
Total | $ | 490,222 |  |  | $ | 529,385 |  |  | $ | 994,637 |  |  | $ | 1,399,794 |
Schedule of Derivative Liabilities at Fair Value | The following table shows the estimated fair value of the derivative liability as of the issuance of the 2026 Notes and the change in fair value from issuance through October 31, 2020:
| Three Months Ended October 31, 2020
| (in thousands)
Derivative liability at issuance of the 2026 Notes | $ | 230,910 |
Change in fair value | 64,740 |
Derivative liability, end of period | $ | 295,650 |
Fair Value Measurement Inputs and Valuation Techniques | We estimated the fair value of the derivative liability using a Binomial model, with the following valuation inputs:
| As of
| September 24, 2020 |  | October 31, 2020
Conversion ratio (1) | Conversion price of $26.63 with a 37.552 conversion rate per $1,000 |  | Conversion price of $26.63 with a 37.552 conversion rate per $1,000
Risk-free rate | 0.4% |  | 0.5%
Discount rate (2) | 9.00% |  | 8.25%
Volatility | 42.7% |  | 42.7%
Stock price | $21.26 |  | $24.34
(1)The conversion ratio was estimated based on the latest forecast of the associated financial performance metric. (2)The discount rate was estimated based on the implied rate for the 2023 Notes as well as a credit analysis.

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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