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Fair Value Measurements
 9 Months Ended
Apr. 30, 2021
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:

 

   Level 1 (1)   Level 2 (2)   Level 3 (3)   Total 
   (in thousands) 
April 30, 2021                    
Debt securities  $1,644   $15,208   $—   $16,852 
Equity investments included in current assets   26,759    10,827    —    37,586 
Equity investments included in noncurrent assets   —    2,920    2,343    5,263 
                     
Total  $28,403   $28,955   $2,343   $59,701 
                     
Contingent consideration included in other noncurrent liabilities  $—   $—   $(795)  $(795)
                     
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  $—   $—   $(396)  $(396)

 

(1) – quoted prices in active markets for identical assets or liabilities
(2) – observable inputs other than quoted prices in active markets for identical assets and liabilities
(3) – no observable pricing inputs in the market

 

 

At April 30, 2021 and July 31, 2020, the Company had $3.5 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.

 

The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2021   2020   2021   2020 
   (in thousands) 
Balance, beginning of period  $2,319   $4,045   $3,825   $3,619 
Purchase of Rafael Holdings, Inc. warrant   —    —    354    — 
Exercise of Rafael Holdings, Inc. warrant   (380)   —    (380)   — 
Redemption for Visa mandatory release assessment   —    —    (1,870)   — 
Total gains (losses) recognized in “Other income (expense), net”   404    (412)   414    14 
                     
Balance, end of period  $2,343   $3,633   $2,343   $3,633 
                     
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period  $—   $—   $—   $— 

 

The following table summarizes the change in the balance of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2021   2020   2021   2020 
   (in thousands) 
Balance, beginning of period  $799   $370   $396   $— 
Transfer into Level 3 from acquisitions (see Note 9)   —    —    393    375 
Total (gains) losses included in “Foreign currency translation adjustment”   (4)   (5)   6    (10)
Balance, end of period  $795   $365   $795   $365 
Change in unrealized gains or losses for the period included in earnings for liabilities held 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 April 30, 2021 and July 31, 2020, 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 April 30, 2021 and July 31, 2020, 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.