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Fair Value Measurements

12 Months Ended

Jul. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 8—Fair Value Measurements

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

(in thousands)		Level 1				Level 2				Level 3				Total
July 31, 2020
Debt securities		$	2,498			$	15,865			$	—			$	18,363
Equity investments included in current assets			5,964				—				—				5,964
Equity investments included in noncurrent assets			—				—				3,825				3,825
TOTAL		$	8,462			$	15,865			$	3,825			$	28,152
Contingent consideration included in other noncurrent liabilities (see Note 5)		$	—			$	—			$	(396	)		$	(396	)

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

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

At July 31, 2020 and 2019, the Company had $4.8 million and $5.5 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.

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):

Year ended July 31,
(in thousands)		2020				2019
Balance, beginning of period		$	3,619			$	—
Transfer into Level 3 from adoption of change in accounting for equity investments			—				2,793
Total gains included in “Other (expense) income, net”			206				826
BALANCE, END OF PERIOD		$	3,825			$	3,619

Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period		$	—			$	—

The following tables summarize the change in the balance of the Company’s liabilities 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.

Year ended July 31,
(in thousands)		2020				2019
Balance, beginning of period		$	—			$	—
Transfer into Level 3 from acquisition (see Note 5)			375				—
Total loss recognized in “Foreign currency translation adjustments”			21				—
BALANCE, END OF PERIOD		$	396			$	—

Change in unrealized gains or losses for the period included in earnings for liabilities at the end of the period		$	—			$	—

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, 2020 and 2019, 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, 2020 and 2019, 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 entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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