Fair Value Measurements

6 Months Ended

Jan. 31, 2022

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, 2022
Debt securities	$	1,603	$	13,887	$	—		$	15,490
Equity investments included in current assets		28,494		—		—			28,494
Equity investments included in noncurrent assets		—		—		2,261			2,261
Total	$	30,097	$	13,887	$	2,261		$	46,245
Contingent consideration included in:
Other current liabilities	$	—	$	—	$	(628	)	$	(628	)
Other noncurrent liabilities		—		—		(75	)		(75	)
Total	$	—	$	—	$	(703	)	$	(703	)
July 31, 2021
Debt securities	$	1,652	$	12,360	$	—		$	14,012
Equity investments included in current assets		40,225		2,209		—			42,434
Equity investments included in noncurrent assets		—		—		2,465			2,465
Total	$	41,877	$	14,569	$	2,465		$	58,911
Contingent consideration included in:
Other current liabilities	$	—	$	—	$	(628	)	$	(628	)
Other noncurrent liabilities		—		—		(397	)		(397	)
Total	$	—	$	—	$	(1,025	)	$	(1,025	)

(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, 2022 and July 31, 2021, the Company had $2.4 million and $3.6 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,
	2022		2021		2022			2021
	(in thousands)
Balance, beginning of period	$	2,119	$	1,825	$	2,465		$	3,825
Purchase of Rafael Holdings, Inc. warrant		—		354		—			354
Redemption for Visa mandatory release assessment		—		—		—			(1,870	)
Total gains (losses) recognized in “Other (expense) income, net”		142		140		(204	)		10
Balance, end of period	$	2,261	$	2,319	$	2,261		$	2,319
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,
	2022			2021		2022			2021
	(in thousands)
Balance, beginning of period	$	1,015		$	391	$	1,025		$	396
Transfer into Level 3 from acquisitions		—			393		—			393
Total (gain) loss included in:
“Other operating (expense) gain, net”		(303	)		—		(303	)		—
“Foreign currency translation adjustment”		(9	)		15		(19	)		10
Balance, end of period	$	703		$	799	$	703		$	799
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, 2022 and July 31, 2021, 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, 2022 and July 31, 2021, 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.