Fair Value Measurements

6 Months Ended

Jan. 31, 2019

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 9—Fair Value Measurements

In the first quarter of fiscal 2019, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820), that modifies the disclosure requirements for fair value measurements. The adoption of this ASU did not impact the fair value measurement disclosures in the Company’s consolidated financial statements for the three and six months ended January 31, 2019, however it may impact the Company’s fair value measurement disclosures in the future.

The following tables present the balance of assets measured at fair value on a recurring basis:

	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
	(in thousands)
January 31, 2019
Debt securities	$	749	$	302	$	—	$	1,051
Equity securities included in other current assets		497		—		—		497
Equity securities included in equity investments		—		—		2,745		2,745
Total	$	1,246	$	302	$	2,745	$	4,293
July 31, 2018
Debt securities	$	1,692	$	3,920	$	—	$	5,612
Equity securities included in other current assets		360		—		—		360
Total	$	2,052	$	3,920	$	—	$	5,972

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

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). There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in the three and six months ended January 31, 2019 and 2018.

	Three Months Ended January 31,					Six Months Ended January 31,
	2019			2018		2019			2018
	(in thousands)
Balance, beginning of period	$	2,816		$	6,300	$	—		$	6,300
Transfer into Level 3 from adoption of change in accounting for equity investments		—			—		2,794			—
Total losses recognized in “Other income (expense), net”		(71	)		—		(49	)		—
Balance, end of period	$	2,745		$	6,300	$	2,745		$	6,300
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period	$	(71	)	$	—	$	(49	)	$	—

At January 31, 2019 and July 31, 2018, the Company had $4.8 million in investments in hedge funds, which were included in “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.

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 January 31, 2019 and July 31, 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 January 31, 2019 and July 31, 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.