Fair Value Measurements

6 Months Ended

Jan. 31, 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)
January 31, 2021
Debt securities	$	3,667	$	17,834	$	—		$	21,501
Equity investments included in current assets		29,470		—		—			29,470
Equity investments included in noncurrent assets		—		2,416		2,319			4,735
Total	$	33,137	$	20,250	$	2,319		$	55,706
Contingent consideration included in other noncurrent liabilities	$	—	$	—	$	(799	)	$	(799	)
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 January 31, 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 January 31,				Six Months Ended January 31,
	2021		2020		2021			2020
	(in thousands)
Balance, beginning of period	$	1,825	$	3,637	$	3,825		$	3,619
Purchase of Rafael Holdings, Inc. warrant		354		—		354			—
Redemption for Visa mandatory release assessment		—		—		(1,870	)		—
Total gains recognized in “Other income, net”		140		408		10			426
Balance, end of period	$	2,319	$	4,045	$	2,319		$	4,045
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 January 31,					Six Months Ended January 31,
	2021		2020			2021		2020
	(in thousands)
Balance, beginning of period	$	391	$	—		$	396	$	—
Transfer into Level 3 from acquisitions (see Note 9)		393		375			393		375
Total loss (gain) included in “Foreign currency translation adjustment”		15		(5	)		10		(5	)
Balance, end of period	$	799	$	370		$	799	$	370
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 January 31, 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 January 31, 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.