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Fair Value Measurements
 6 Months Ended
Jan. 31, 2024
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) 
January 31, 2024                    
Debt securities  $23,674   $7,745   $—   $31,419 
Equity investments included in current assets   5,076    —    —    5,076 
Equity investments included in noncurrent assets   —    1,000    1,450    2,450 
                     
Total  $28,750   $8,745   $1,450   $38,945 
                     
Acquisition consideration included in:                    
Other current liabilities  $—   $—   $(1,945)  $(1,945)
Other noncurrent liabilities   —    —    (2,572)   (2,572)
                     
Total  $—   $—   $(4,517)  $(4,517)
                     
July 31, 2023                    
Debt securities  $31,038   $11,376   $—   $42,414 
Equity investments included in current assets   6,198    —    —    6,198 
Equity investments included in noncurrent assets   —    2,500    1,263    3,763 
                     
Total  $37,236   $13,876   $1,263   $52,375 
                     
Acquisition consideration included in:                    
Other current liabilities  $—   $—   $(2,032)  $(2,032)
Other noncurrent liabilities   —    —    (2,773)   (2,773)
                     
Total  $—   $—   $(4,805)  $(4,805)

 

(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 both January 31, 2024 and July 31, 2023, the Company had $3.0 million 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):

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31,

  

Six Months Ended

January 31,

 
   2024   2023   2024   2023 
   (in thousands) 
Balance, beginning of period  $1,248   $1,105   $1,263   $1,132 
Total gains included in “Other income (expense), net”   202    120    187    93 
                     
Balance, end of period  $1,450   $1,225   $1,450   $1,225 
                     
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):

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31,

  

Six Months Ended

January 31,

 
   2024   2023   2024   2023 
   (in thousands) 
Balance, beginning of period  $4,588   $6,603   $4,805   $8,546 
Payments   —    —    (214)   (375)
Total (gains) losses included in:                    
“Other operating (expense) gain, net”   (73)   —    (73)   (1,565)
“Foreign currency translation adjustment”   2    6    (1)   3 
                     
Balance, end of period  $4,517   $6,609   $4,517   $6,609 
                     
Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period  $—   $—   $—   $— 

 

In the six months ended January 31, 2024 and 2023, the Company paid an aggregate of $0.2 million and $0.4 million, respectively, for contingent consideration related to prior acquisitions. In addition, in January 2024, the Company determined that the requirement for a contingent consideration payment related to an acquisition in a prior period would not be met, and, in September 2022, the Company determined that the requirements for a portion of the contingent consideration payments related to the Leaf acquisition would not be met. The Company recognized gains on the write-off of these contingent consideration payment obligations, which were included in “Other operating (expense) gain, net” in the accompanying consolidated statements of income.

 

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, settlement assets, other current assets, customer deposits, settlement liabilities, and other current liabilities. At January 31, 2024 and July 31, 2023, 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 settlement assets, other current assets, customer deposits, settlement liabilities, and other current liabilities were classified as Level 2 of the fair value hierarchy.

 

 

Other assets and other liabilities. At January 31, 2024 and July 31, 2023, 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.