Fair Value of Financial Instruments (Tables)

3 Months Ended

Oct. 31, 2016

Schedule of Available-for-sale Securities Reconciliation

investments within cash equivalents and investments consist of the following:



	October 31, 2016
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	47,024	$	18	$	(16	)	$	47,026
Commercial paper	168,359		13		(27		)	168,345
Corporate bonds	290,812		150		(131		)	290,831
U.S. government bonds	82,273		18		(21		)	82,270
Foreign government bonds	2,418		1		—			2,419
Certificates of deposit	22,500		9		—			22,509
Money market funds	41,307		1		—			41,308
Total	$	654,693	$	210	$	(195	)	$	654,708



	July 31, 2016
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. agency securities	$	58,070	$	30	$	(12	)	$	58,088
Commercial paper	152,317		12		(6		)	152,323
Corporate bonds	274,656		321		(38		)	274,939
U.S. government bonds	90,593		58		(2		)	90,649
Foreign government bonds	2,418		9		—			2,427
Money market funds	114,833		—		—			114,833
Total	$	692,887	$	430	$	(58	)	$	693,259

Schedule of Unrealized Loss on Investments

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:



	October 31, 2016
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(in thousands)
Commercial paper	$	61,065	$	(27	)	$	—	$	—		$	61,065	$	(27	)
U.S. agency securities	9,552		(16		)	—		—			9,552		(16		)
Corporate bonds	153,172		(128		)	3,253		(3		)	156,425		(131		)
U.S. government bonds	38,721		(21		)	—		—			38,721		(21		)
Total	$	262,510	$	(192	)	$	3,253	$	(3	)	$	265,763	$	(195	)

Investments Classified by Contractual Maturity Date

The following table summarizes the contractual maturities of the Company’s investments measured at fair value as of October 31, 2016:



	Less Than 12 Months		12 to 36 Months		Total
	(in thousands)
U.S. agency securities	$	29,957	$	17,069	$	47,026
Commercial paper	168,345		—		168,345
Corporate bonds	196,192		94,639		290,831
U.S. government bonds	40,541		41,729		82,270
Foreign government bonds	—		2,419		2,419
Money market funds	41,308		—		41,308
Certificates of deposit	22,509		—		22,509
Total	$	498,852	$	155,856	$	654,708

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows:

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and

Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions.

Fair Value, Assets Measured on Recurring Basis

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis, by level within the fair value hierarchy as of October 31, 2016 and July 31, 2016:



	October 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Commercial paper	$	—	$	58,265	$	—	$	58,265
Money market funds	41,308		—		—		41,308
Short-term investments:
U.S. agency securities	—		29,957		—		29,957
Commercial paper	—		110,080		—		110,080
U.S. government bonds	—		40,541		—		40,541
Corporate bonds	—		196,192		—		196,192
Certificates of deposit	—		22,509		—		22,509
Long-term investments:
U.S. agency securities	—		17,069		—		17,069
Corporate bonds	—		94,639		—		94,639
U.S. government bonds	—		41,729		—		41,729
Foreign government bonds	—		2,419		—		2,419
Total assets	$	41,308	$	613,400	$	—	$	654,708



	July 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Commercial paper	$	—	$	66,206	$	—	$	66,206
Money market funds	114,833		—		—		114,833
Short-term investments:
U.S. agency securities	—		51,539		—		51,539
Commercial paper	—		86,117		—		86,117
U. S. government bonds	—		61,565		—		61,565
Corporate bonds	—		205,434		—		205,434
Long-term investments:
U.S. agency securities	—		6,549		—		6,549
Corporate bonds	—		69,505		—		69,505
U.S. government bonds	—		29,084		—		29,084
Foreign government bonds	—		2,427		—		2,427
Total assets	$	114,833	$	578,426	$	—	$	693,259

The Company’s equity investment in a privately-held company was accounted for under the cost method of accounting, and reported in long term other assets on the Company’s condensed consolidated balance sheet. The fair value of the investment is not readily available as there is no quoted market prices for the investment. The Company assesses the investment for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. As of October 31, 2016 and July 31, 2016, the investment with a carrying value of $6.0 million was not impaired.