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Balance Sheet Components | 6 Months Ended
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Jan. 31, 2022
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Components | Balance Sheet Components Accounts Receivables, Net Accounts receivable, net consists of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Accounts receivable | $ | 112,281 |  |  | $ | 105,125 |
Allowance for credit losses and revenue reserves | (576) |  |  | (1,057) |
Accounts receivable, net | $ | 111,705 |  |  | $ | 104,068 |
Allowance for Credit Losses and Revenue Reserves Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands):
Balance as of July 31, 2021 | $ | 1,057 |
Net changes to credit losses | — |
Net changes to revenue reserves | (154) |
Write-offs, net | (327) |
Balance as of January 31, 2022 | $ | 576 |
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Prepaid expenses | $ | 21,319 |  |  | $ | 20,330 |
Contract costs | 14,717 |  |  | 13,365 |
Deferred costs | 9,910 |  |  | 9,247 |
Other | 15,477 |  |  | 9,787 |
Prepaid expenses and other current assets | $ | 61,423 |  |  | $ | 52,729 |
Property and Equipment, Net Property and equipment consist of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Computer hardware | $ | 14,009 |  |  | $ | 19,256 |
Purchased software | 5,484 |  |  | 6,002 |
Capitalized software development costs | 30,881 |  |  | 24,025 |
Equipment and machinery | 8,654 |  |  | 12,214 |
Furniture and fixtures | 11,453 |  |  | 11,482 |
Leasehold improvements | 59,686 |  |  | 57,960 |
Total property and equipment | 130,167 |  |  | 130,939 |
Less accumulated depreciation | (48,475) |  |  | (50,878) |
Property and equipment, net | $ | 81,692 |  |  | $ | 80,061 |
As of January 31, 2022 and July 31, 2021, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $3.5 million for both of the three months ended January 31, 2022 and 2021, and $7.2 million for both of the six months ended January 31, 2022 and 2021. The Company recognized amortization expense related to capitalized software development costs in cost of subscription and support revenue on the condensed consolidated statements of operations of $1.5 million and $0.7 million during the three months ended January 31, 2022 and 2021, respectively, and $2.7 million and $1.4 million during the six months ended January 31, 2022 and 2021, respectively. Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows (in thousands):
Goodwill, July 31, 2021 | $ | 340,877 |
Addition — HazardHub acquisition | 31,185 |
Goodwill, January 31, 2022 | $ | 372,062 |
The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):
|  |  | January 31, 2022 |  | July 31, 2021
| Remaining Weighted-Average Useful Life (in years) |  | Cost |  | Accumulated Amortization |  | Net Book Value |  | Cost |  | Accumulated Amortization |  | Net Book Value
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Acquired technology | 3.3 |  | $ | 38,100 |  |  | $ | 25,016 |  |  | $ | 13,084 |  |  | $ | 93,600 |  |  | $ | 86,367 |  |  | $ | 7,233 |
Customer contracts and related relationships | 3.7 |  | 40,800 |  |  | 27,860 |  |  | 12,940 |  |  | 35,700 |  |  | 24,432 |  |  | 11,268 |
Partner relationships | 3.2 |  | 200 |  |  | 130 |  |  | 70 |  |  | 200 |  |  | 119 |  |  | 81 |
Trademarks | 4.5 |  | 3,400 |  |  | 1,576 |  |  | 1,824 |  |  | 2,500 |  |  | 1,339 |  |  | 1,161 |
Total | 3.6 |  | $ | 82,500 |  |  | $ | 54,582 |  |  | $ | 27,918 |  |  | $ | 140,700 |  |  | $ | 120,957 |  |  | $ | 19,743 |
Amortization expense was $3.8 million and $6.3 million for the three months ended January 31, 2022 and 2021, respectively, and $7.5 million and $12.6 million for the six months ended January 31, 2022 and 2021, respectively. The future amortization expense for existing intangible assets as of January 31, 2022, based on their current useful lives, is as follows (in thousands):
Fiscal year ending July 31, |
2022 (remainder of fiscal year) | $ | 6,557 |
2023 | 6,888 |
2024 | 5,468 |
2025 | 5,026 |
2026 | 3,572 |
Thereafter | 407 |
Total | $ | 27,918 |
Other assets Other assets consist of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Prepaid expenses | $ | 2,759 |  |  | $ | 3,276 |
Contract costs | 29,331 |  |  | 28,870 |
Deferred costs | 1,664 |  |  | 2,777 |
Strategic equity investments | 14,077 |  |  | 3,556 |
Other | 4,976 |  |  | — |
Other assets | $ | 52,807 |  |  | $ | 38,479 |
The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. In the second quarter of fiscal year 2022, the Company invested $10.5 million in new strategic investments. No impairment charges related to strategic investments were recognized during the three and six months ended January 31, 2022 and 2021, respectively. Accrued Employee Compensation Accrued employee compensation consists of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Bonus | $ | 24,898 |  |  | $ | 48,414 |
Commission | 4,047 |  |  | 11,271 |
Vacation* | 5,027 |  |  | 23,803 |
Salaries, payroll taxes, and benefits | 19,544 |  |  | 18,649 |
Accrued employee compensation | $ | 53,516 |  |  | $ | 102,137 |
*In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021. Other Current Liabilities Other current liabilities consist of the following (in thousands):
| January 31, 2022 |  | July 31, 2021
Lease liabilities | $ | 11,239 |  |  | $ | 11,624 |
Accrued royalties | 9,239 |  |  | 7,525 |
Accrued taxes | 3,727 |  |  | 6,796 |
Other | 5,535 |  |  | 5,703 |
Other current liabilities | $ | 29,740 |  |  | $ | 31,648 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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