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Fair Value of Financial Instruments
 3 Months Ended
Oct. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial InstrumentsAvailable-for-sale investments within cash equivalents and investments consist of the following (in thousands):
October 31, 2021
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
U.S. Government agency securities$37,672 $1 $(71)$37,602 
Commercial paper327,355 — — 327,355 
Corporate bonds372,970 335 (422)372,883 
U.S. Government bonds62,321 36 (192)62,165 
Asset-backed securities48,778 8 (33)48,753 
Foreign government bonds43,586 7 (27)43,566 
Municipal bonds205 — — 205 
Certificates of deposit82,151 — — 82,151 
Money market funds66,523 — — 66,523 
Strategic convertible debt investment*1,000 — — 1,000 
     Total$1,042,561 $387 $(745)$1,042,203 
*At original cost
July 31, 2021
Amortized CostUnrealized GainsUnrealized LossesEstimated Fair Value
U.S. Government agency securities$85,165 $15 $— $85,180 
Commercial paper389,837 — — 389,837 
Corporate bonds371,374 623 (37)371,960 
U.S. Government bonds64,401 62 (1)64,462 
Asset-backed securities47,925 29 (7)47,947 
Foreign government bonds33,177 10 (2)33,185 
Municipal bonds1,685 — — 1,685 
Certificates of deposit82,250 — — 82,250 
Money market funds125,118 — — 125,118 
Strategic convertible debt investment*1,000 — — 1,000 
    Total$1,201,932 $739 $(47)$1,202,624 
*At original cost

The Company does not consider any portion of the unrealized losses at October 31, 2021 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized gains and losses reclassified into earnings are based on specific identification when the securities are sold. The realized gains and losses from sales of securities are presented in the condensed consolidated statements of comprehensive income (loss).
The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands):
October 31, 2021
Less Than 12 Months12 Months or GreaterTotal
U.S. Government agency securities$10,000 $27,602 $37,602 
Commercial paper327,355 — 327,355 
Corporate bonds205,968 166,915 372,883 
U.S. Government bonds17,429 44,736 62,165 
Asset-backed securities3,891 44,862 48,753 
Foreign government bonds33,045 10,521 43,566 
Municipal bonds— 205 205 
Certificates of deposit79,151 3,000 82,151 
Money market funds66,523 — 66,523 
Strategic convertible debt investment$1,000 $— $1,000 
     Total$744,362 $297,841 $1,042,203 
 
Fair Value Measurement
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The Company applies the three-level valuation hierarchy when measuring the fair value of certain assets and liabilities:
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions.

Available-for-sale investments
The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands):
October 31, 2021
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $75,677 $— $75,677 
Money market funds66,523 — — 66,523 
Total cash equivalents66,523 75,677 — 142,200 
Short-term investments:
U.S. Government agency securities— 10,000 — 10,000 
Commercial paper— 251,678 — 251,678 
Corporate bonds— 205,968 — 205,968 
U.S. Government bonds— 17,429 — 17,429 
Asset-backed securities— 3,891 — 3,891 
Foreign government bonds— 33,045 — 33,045 
Certificates of deposit— 79,151 — 79,151 
Strategic convertible debt investment— — 1,000 1,000 
Total short-term investments— 601,162 1,000 602,162 
Long-term investments:
U.S. Government agency securities— 27,602 — 27,602 
Corporate bonds— 166,915 — 166,915 
U.S. Government bonds— 44,736 — 44,736 
Asset-backed securities— 44,862 — 44,862 
Foreign government bonds— 10,521 — 10,521 
Certificates of deposit— 3,000 — 3,000 
Municipal bonds— 205 — 205 
Total long-term investments— 297,841 — 297,841 
       Total$66,523 $974,680 $1,000 $1,042,203 
July 31, 2021
Level 1Level 2Level 3Total
Cash equivalents:
Commercial paper$— $115,825 $— $115,825 
Money market funds125,118 — — 125,118 
Total cash equivalents125,118 115,825 — 240,943 
Short-term investments:
U.S. Government agency securities— 69,183 — 69,183 
Commercial paper— 274,012 — 274,012 
Corporate bonds— 225,384 — 225,384 
U.S. Government bonds— 45,320 — 45,320 
Asset-backed securities— 9,036 — 9,036 
Foreign government bonds— 28,353 — 28,353 
Certificates of deposit— 80,750 — 80,750 
     Municipal bonds1,480 1,480 
Strategic convertible debt investment1,000 1,000 
Total short-term investments— 733,518 1,000 734,518 
Long-term investments:
U.S. Government agency securities— 15,997 — 15,997 
Corporate bonds— 146,576 — 146,576 
U.S. Government bonds— 19,142 — 19,142 
Asset-backed securities— 38,911 — 38,911 
Foreign government bonds— 4,832 — 4,832 
Certificates of deposit— 1,500 — 1,500 
Municipal bonds205 205 
Total long-term investments— 227,163 — 227,163 
      Total$125,118 $1,076,506 $1,000 $1,202,624 

Convertible Senior Notes
The fair value of the Convertible Senior Notes was $494.0 million and $452.0 million at October 31, 2021 and July 31, 2021, respectively. The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices (Level 2). The Company carries the Convertible Senior Notes at initial fair value less unamortized debt discount and issuance costs on its condensed consolidated balance sheets. For further information, see Note 7 "Convertible Senior Notes."