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Derivative Instruments
 6 Months Ended
Jan. 31, 2017
Derivative Instruments [Abstract]  
Derivative Instruments

Note 6—Derivative Instruments

 

Prior to the Zedge Spin-Off, the primary risk managed by the Company using derivative instruments was foreign exchange risk. Foreign exchange forward contracts were entered into as hedges against unfavorable fluctuations in the U.S. dollar – Norwegian krone (“NOK”) exchange rate. Zedge is based in Norway and much of its operations are located in Norway. Subsequent to the Zedge Spin-Off, the Company provided hedging services to Zedge pursuant to its Transition Services Agreement until Zedge established a credit facility and was able to enter into foreign exchange contracts. The Company did not apply hedge accounting to these contracts, therefore the changes in fair value were recorded in earnings.

 

The effects of derivative instruments on the consolidated statements of income were as follows:

 

    Amount of Gain (Loss) Recognized on Derivatives 
Derivatives not designated or not qualifying as Location of Gain (Loss) Three Months Ended
January 31,		  Six Months Ended 
January 31,		 

hedging instruments

 Recognized on Derivatives 2017  2016  2017  2016 
    (in thousands) 
Foreign exchange forwards Other (expense) income, net $—  $(123) $—  $(225)