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Fair Value Measurements
 12 Months Ended
Jul. 31, 2018
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 6—Fair Value Measurements

 

The following table presents the balance of assets measured at fair value on a recurring basis:

  

(in thousands) Level 1  Level 2  Level 3  Total 
July 31, 2018            
Available-for-sale securities:            
Marketable securities $2,052  $3,920  $—  $5,972 
July 31, 2017                
Available-for-sale securities:                
Marketable securities $12,151  $46,121  $—  $58,272 
Rafael convertible promissory notes  —   —   6,300   6,300 
Total $12,151  $46,121  $6,300  $64,572 

 

At July 31, 2018 and 2017, the Company did not have any liabilities measured at fair value on a recurring basis.

 

At July 31, 2017, the fair value of the Rafael convertible promissory notes, which were classified as Level 3, was estimated based on a valuation of Rafael Pharma and other factors that could not be corroborated by the market.

 

The following tables summarize the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in the years ended July 31, 2018, 2017 or 2016.

 

Year ended July 31,         
(in thousands) 2018  2017  2016 
Balance, beginning of period $6,300  $2,000  $— 
Total gains included in other comprehensive income  —   2,100   — 
Purchases  —   2,200   2,000 
Rafael Spin-Off  (6,300)  —   — 
Balance, end of period $—  $6,300  $2,000 
             
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $—  $—  $— 

 

At July 31, 2018 and 2017, the Company had $4.8 million and $8.6 million, respectively, in investments in hedge funds, which were included in “Investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds are accounted for using the equity method or the cost method, therefore investments in hedge funds are not measured at fair value.

 

Fair Value of Other Financial Instruments

 

The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 

Cash and cash equivalents, restricted cash and cash equivalents, other current assets, customer deposits, and other current liabilities. At July 31, 2018 and 2017, the carrying amount of these assets and liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for cash, cash equivalents and restricted cash and cash equivalents were classified as Level 1 and other current assets, customer deposits, and other current liabilities were classified as Level 2 of the fair value hierarchy.

 

Other assets and other liabilities. At July 31, 2018 and 2017, the carrying amount of these assets and liabilities approximated fair value. The fair values were estimated based on the Company’s assumptions, which were classified as Level 3 of the fair value hierarchy.

 

The Company’s investments at July 31, 2018 and 2017 included investments in the equity of certain privately held entities and other investments that are accounted for at cost. It is not practicable to estimate the fair value of these investments because of the lack of a quoted market price for the shares of these entities, and the inability to estimate their fair value without incurring excessive cost. The carrying value of these investments was $3.0 million and $10.8 million at July 31, 2018 and 2017, respectively, which the Company believes was not impaired.