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CONVERTIBLE SENIOR NOTES (Tables)
 3 Months Ended
Oct. 31, 2020
Debt Disclosure [Abstract]  
Net Proceeds from Notes The total net proceeds from the 2023 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 warrants87,975 
Less: other issuance costs(707)
Net proceeds $508,312 
Components of Notes
The 2023 Notes consisted of the following:
As of
July 31,
2020		October 31,
2020
(in thousands)
Principal amounts:
Principal
$575,000 $575,000 
Unamortized debt discount (1)
(80,298)(72,573)
Unamortized debt issuance costs (1)
(4,480)(4,049)
Net carrying amount
$490,222 $498,378 
Carrying amount of equity component (2)
$148,598 $148,598 
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(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2023 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.
The 2026 Notes consisted of the following:
As of
October 31, 2020
(in thousands)
Principal amounts:
Principal
$750,000 
Unamortized debt discount (conversion feature) (1)
(227,723)
Unamortized debt issuance costs (1)
(26,018)
Net carrying amount
$496,259 
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(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.
Interest Expense Recognized
The following table sets forth the total interest expense recognized related to the 2023 Notes:
Three Months Ended
October 31,
20192020
(in thousands)
Interest expense related to amortization of debt discount$7,232 $7,725 
Interest expense related to amortization of debt issuance costs403 431 
Total interest expense$7,635 $8,156 
The following table sets forth the total interest expense recognized related to the 2026 Notes:
Three Months Ended October 31, 2020
(in thousands)
Interest expense related to amortization of debt discount$3,187 
Interest expense related to amortization of debt issuance costs365 
Non-cash interest expense1,952 
Total interest expense$5,504