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Fair Value Measurements
 12 Months Ended
Jul. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 9—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, 2019                
Debt securities  $—   $2,534   $—   $2,534 
Equity investments included in current assets   5,688    —    —    5,688 
Equity investments included in noncurrent assets   —    —    3,619    3,619 
TOTAL  $5,688   $2,534   $3,619   $11,841 
July 31, 2018                    
Debt securities  $1,692   $3,920   $—   $5,612 
Equity investments included in current assets   360    —    —    360 
TOTAL  $2,052   $3,920   $—   $5,972 

 

At July 31, 2019 and 2018, the Company had $5.5 million and $4.8 million, respectively, in investments in hedge funds, which were included in noncurrent "Equity investments" in the accompanying consolidated balance sheets. The Company's investments in hedge funds were accounted for using the equity method, therefore they were not measured at fair value.

 

At July 31, 2019 and 2018, the Company did not have any liabilities measured at fair value on a recurring basis.

  

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 fiscal 2019, 2018 or 2017.

 

Year ended July 31,    
(in thousands)  2019   2018   2017 
Balance, beginning of period  $—   $6,300   $2,000 
Transfer into Level 3 from adoption of change in accounting for equity investments   2,793    —    — 
Total gains included in "Other income (expense), net"   826    —    — 
Total gains included in other comprehensive income   —    —    2,100 
Purchases   —    —    2,200 
Rafael Spin-Off   —    (6,300)   — 
BALANCE, END OF PERIOD  $3,619   $—   $6,300 
                
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period  $826   $—   $— 

 

At July 31, 2017, the fair value of the Rafael Pharma 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.

 

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, 2019 and 2018, 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, 2019 and 2018, 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.