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Fair Value of Financial Instruments
 6 Months Ended
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 CostUnrealized GainsUnrealized LossesEstimated Fair Value
Commercial paper$241,734 $— $— $241,734 
Corporate bonds381,914 139 (1,807)380,246 
Certificates of deposit63,051 — — 63,051 
U.S. Government bonds75,301 17 (607)74,711 
Money market funds106,208 — — 106,208 
U.S. Government agency securities32,639 — (228)32,411 
Asset-backed securities55,924 — (211)55,713 
Foreign government bonds35,406 — (175)35,231 
Municipal bonds205 — (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 CostUnrealized GainsUnrealized LossesEstimated Fair Value
Commercial paper$389,837 $— $— $389,837 
Corporate bonds371,374 623 (37)371,960 
Certificates of deposit82,250 — — 82,250 
U.S. Government bonds64,401 62 (1)64,462 
Money market funds125,118 — — 125,118 
U.S. Government agency securities85,165 15 — 85,180 
Asset-backed securities47,925 29 (7)47,947 
Foreign government bonds33,177 10 (2)33,185 
Municipal bonds1,685 — — 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 Months12 Months or GreaterTotal
Commercial paper$239,234 $2,500 $241,734 
Corporate bonds207,859 172,387 380,246 
Certificates of deposit62,051 1,000 63,051 
U.S. Government bonds46,878 27,833 74,711 
Money market funds106,208 — 106,208 
U.S. Government agency securities4,999 27,412 32,411 
Asset-backed securities3,670 52,043 55,713 
Foreign government bonds24,869 10,362 35,231 
Municipal bonds204 — 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 1Level 2Level 3Total
Cash equivalents:
Commercial paper— 28,011 — 28,011 
Money market funds106,208 — — 106,208 
Total cash equivalents106,208 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 
       Total106,208 883,301 1,000 990,509 
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:
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."