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Fair Value of Financial Instruments | 6 Months Ended
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Jan. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Available-for-sale investments within cash equivalents and investments consist of the following (in thousands):
| January 31, 2022
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
Commercial paper | $ | 241,734 |  |  | $ | — |  |  | $ | — |  |  | $ | 241,734 |
Corporate bonds | 381,914 |  |  | 139 |  |  | (1,807) |  |  | 380,246 |
Certificates of deposit | 63,051 |  |  | — |  |  | — |  |  | 63,051 |
U.S. Government bonds | 75,301 |  |  | 17 |  |  | (607) |  |  | 74,711 |
Money market funds | 106,208 |  |  | — |  |  | — |  |  | 106,208 |
U.S. Government agency securities | 32,639 |  |  | — |  |  | (228) |  |  | 32,411 |
Asset-backed securities | 55,924 |  |  | — |  |  | (211) |  |  | 55,713 |
Foreign government bonds | 35,406 |  |  | — |  |  | (175) |  |  | 35,231 |
Municipal bonds | 205 |  |  | — |  |  | (1) |  |  | 204 |
Strategic convertible debt investment* | 1,000 |  |  | — |  |  | — |  |  | 1,000 |
Total | $ | 993,382 |  |  | $ | 156 |  |  | $ | (3,029) |  |  | $ | 990,509 |
*At original cost
| July 31, 2021 |
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value |
Commercial paper | $ | 389,837 |  |  | $ | — |  |  | $ | — |  |  | $ | 389,837 |  |
Corporate bonds | 371,374 |  |  | 623 |  |  | (37) |  |  | 371,960 |  |
Certificates of deposit | 82,250 |  |  | — |  |  | — |  |  | 82,250 |  |
U.S. Government bonds | 64,401 |  |  | 62 |  |  | (1) |  |  | 64,462 |  |
Money market funds | 125,118 |  |  | — |  |  | — |  |  | 125,118 |  |
U.S. Government agency securities | 85,165 |  |  | 15 |  |  | — |  |  | 85,180 |  |
Asset-backed securities | 47,925 |  |  | 29 |  |  | (7) |  |  | 47,947 |  |
Foreign government bonds | 33,177 |  |  | 10 |  |  | (2) |  |  | 33,185 |  |
Municipal bonds | 1,685 |  |  | — |  |  | — |  |  | 1,685 |  |
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 January 31, 2022 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):
| January 31, 2022
| Less Than 12 Months |  | 12 Months or Greater |  |  |  | Total
Commercial paper | $ | 239,234 |  |  | $ | 2,500 |  |  |  |  | $ | 241,734 |
Corporate bonds | 207,859 |  |  | 172,387 |  |  |  |  | 380,246 |
Certificates of deposit | 62,051 |  |  | 1,000 |  |  |  |  | 63,051 |
U.S. Government bonds | 46,878 |  |  | 27,833 |  |  |  |  | 74,711 |
Money market funds | 106,208 |  |  | — |  |  |  |  | 106,208 |
U.S. Government agency securities | 4,999 |  |  | 27,412 |  |  |  |  | 32,411 |
Asset-backed securities | 3,670 |  |  | 52,043 |  |  |  |  | 55,713 |
Foreign government bonds | 24,869 |  |  | 10,362 |  |  |  |  | 35,231 |
Municipal bonds | 204 |  |  | — |  |  |  |  | 204 |
Strategic convertible debt investment | $ | 1,000 |  |  | $ | — |  |  |  |  | $ | 1,000 |
Total | $ | 696,972 |  |  | $ | 293,537 |  |  |  |  | $ | 990,509 |
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):
| January 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents: |  |  |  |  |  |  |
Commercial paper | — |  |  | 28,011 |  |  | — |  |  | 28,011 |
Money market funds | 106,208 |  |  | — |  |  | — |  |  | 106,208 |
Total cash equivalents | 106,208 |  |  | 28,011 |  |  | — |  |  | 134,219 |
Short-term investments: |  |  |  |  |  |  |
Commercial paper | — |  |  | 211,223 |  |  | — |  |  | 211,223 |
Corporate bonds | — |  |  | 207,859 |  |  | — |  |  | 207,859 |
Certificates of deposit | — |  |  | 62,051 |  |  | — |  |  | 62,051 |
U.S. Government bonds | — |  |  | 46,878 |  |  | — |  |  | 46,878 |
U.S. Government agency securities | — |  |  | 4,999 |  |  | — |  |  | 4,999 |
Asset-backed securities | — |  |  | 3,670 |  |  | — |  |  | 3,670 |
Foreign government bonds | — |  |  | 24,869 |  |  | — |  |  | 24,869 |
Municipal bonds | — |  |  | 204 |  |  | — |  |  | 204 |
Strategic convertible debt investment | — |  |  | — |  |  | 1,000 |  |  | 1,000 |
Total short-term investments | — |  |  | 561,753 |  |  | 1,000 |  |  | 562,753 |
Long-term investments: |  |  |  |  |  |  |
Commercial paper | — |  |  | 2,500 |  |  | — |  |  | 2,500 |
Corporate bonds | — |  |  | 172,387 |  |  | — |  |  | 172,387 |
Certificates of deposit | — |  |  | 1,000 |  |  | — |  |  | 1,000 |
U.S. Government bonds | — |  |  | 27,833 |  |  | — |  |  | 27,833 |
U.S. Government agency securities | — |  |  | 27,412 |  |  | — |  |  | 27,412 |
Asset-backed securities | — |  |  | 52,043 |  |  | — |  |  | 52,043 |
Foreign government bonds | — |  |  | 10,362 |  |  | — |  |  | 10,362 |
Total long-term investments | — |  |  | 293,537 |  |  | — |  |  | 293,537 |
Total | 106,208 |  |  | 883,301 |  |  | 1,000 |  |  | 990,509 |
| July 31, 2021
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents: |  |  |  |  |  |  |
Commercial paper | $ | — |  |  | $ | 115,825 |  |  | $ | — |  |  | $ | 115,825 |
Money market funds | 125,118 |  |  | — |  |  | — |  |  | 125,118 |
Total cash equivalents | 125,118 |  |  | 115,825 |  |  | — |  |  | 240,943 |
Short-term investments: |  |  |  |  |  |  |
Commercial paper | — |  |  | 274,012 |  |  | — |  |  | 274,012 |
Corporate bonds | — |  |  | 225,384 |  |  | — |  |  | 225,384 |
Certificates of deposit | — |  |  | 80,750 |  |  | — |  |  | 80,750 |
U.S. Government bonds | — |  |  | 45,320 |  |  | — |  |  | 45,320 |
U.S. Government agency securities | — |  |  | 69,183 |  |  | — |  |  | 69,183 |
Asset-backed securities | — |  |  | 9,036 |  |  | — |  |  | 9,036 |
Foreign government bonds | — |  |  | 28,353 |  |  | — |  |  | 28,353 |
Municipal bonds | — |  |  | 1,480 |  |  | — |  |  | 1,480 |
Strategic convertible debt investment | — |  |  | — |  |  | 1,000 |  |  | 1,000 |
Total short-term investments | — |  |  | 733,518 |  |  | 1,000 |  |  | 734,518 |
Long-term investments: |  |  |  |  |  |  |
Corporate bonds | — |  |  | 146,576 |  |  | — |  |  | 146,576 |
Certificates of deposit | — |  |  | 1,500 |  |  | — |  |  | 1,500 |
U.S. Government bonds | — |  |  | 19,142 |  |  | — |  |  | 19,142 |
U.S. Government agency securities | — |  |  | 15,997 |  |  | — |  |  | 15,997 |
Asset-backed securities | — |  |  | 38,911 |  |  | — |  |  | 38,911 |
Foreign government bonds | — |  |  | 4,832 |  |  | — |  |  | 4,832 |
Municipal bonds | — |  |  | 205 |  |  | — |  |  | 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 $434.3 million and $452.0 million at January 31, 2022 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."

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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