XML 35 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Balance Sheet Components
 12 Months Ended
Jul. 31, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivables, Net
Accounts receivable, net consists of the following (in thousands):
July 31, 2022July 31, 2021
Accounts receivable$144,156 $105,125 
Allowance for credit losses and revenue reserves(359)(1,057)
   Accounts receivable, net$143,797 $104,068 
Allowance for Credit Losses and Revenue Reserves
Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands):
Balance as of July 31, 2021$1,057 
Net changes to credit losses(1)
2,957 
Net changes to revenue reserves(356)
Write-offs, net(1)
(3,299)
Balance as of July 31, 2022$359 
(1)Includes $3.0 million due to a contract termination as a result of United States government sanctions on Russia.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
July 31, 2022July 31, 2021
Prepaid expenses$24,273 $20,330 
Contract costs14,843 13,365 
Deferred costs9,969 9,247 
Deposits and other receivables12,138 9,787 
Prepaid expenses and other current assets$61,223 $52,729 
Property and Equipment, Net
Property and equipment consist of the following (in thousands):
July 31, 2022July 31, 2021
Computer hardware$14,472 $19,256 
Purchased software5,124 6,002 
Capitalized software development costs38,724 24,025 
Equipment and machinery8,248 12,214 
Furniture and fixtures11,467 11,482 
Leasehold improvements59,059 57,960 
   Total property and equipment137,094 130,939 
Less accumulated depreciation(56,354)(50,878)
   Property and equipment, net$80,740 $80,061 
As of July 31, 2022 and 2021, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $14.0 million, $14.0 million and $14.5 million for the fiscal years ended July 31, 2022, 2021, and 2020, respectively.
The Company recognized amortization of capitalized software development costs in cost of subscription and support revenue on the consolidated statements of operations of $6.3 million, $3.4 million and $1.4 million during the fiscal years ended July 31, 2022, 2021, and 2020 respectively.
Goodwill and Intangible Assets, Net
Changes in the carrying amount of goodwill were as follows (in thousands):
Goodwill, July 31, 2021$340,877 
   Addition — HazardHub acquisition31,315 
Goodwill, July 31, 2022$372,192 
The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):
July 31, 2022July 31, 2021
Remaining Weighted-Average Useful Life (in years)CostAccumulated AmortizationNet Book ValueCostAccumulated AmortizationNet Book Value
Acquired technology3.5$38,100 $28,826 9,274 $93,600 $86,367 $7,233 
Customer contracts and related relationships3.523,100 12,653 10,447 35,700 24,432 11,268 
Partner relationships2.7200 141 59 200 119 81 
Trademarks4.13,400 1,819 1,581 2,500 1,339 1,161 
Order backlog—— — — 8,700 8,700 — 
Total3.6$64,800 $43,439 $21,361 $140,700 $120,957 $19,743 
Amortization expense was $14.1 million, $20.0 million, and $26.8 million during the years ended July 31, 2022, 2021, and 2020, respectively. The future amortization expense for existing intangible assets as of July 31, 2022, based on their current useful lives, is as follows (in thousands):
Fiscal year ending July 31,
20236,888 
20245,468 
20255,026 
20263,572 
2027272 
Thereafter135 
Total future amortization expense$21,361 
Other Assets
Other assets consist of the following (in thousands):
July 31, 2022July 31, 2021
Prepaid expenses$3,085 $3,276 
Contract costs29,392 28,870 
Deferred costs1,256 2,777 
Strategic equity investments18,023 3,556 
Other4,976 — 
Other assets$56,732 $38,479 

The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. The Company invested $12.3 million and $2.4 million in new strategic equity investments during the fiscal year ended July 31, 2022 and 2021, respectively. An impairment charge of $10.7 million was recognized during the fiscal year ended July 31, 2020. No impairment charge was recognized during the fiscal years ended July 31, 2022 and 2021.
During the fiscal year ended July 31, 2022, the Company’s convertible debt investment was converted into equity shares due to a qualified equity financing event. The carrying value of the convertible debt investment was $1.1 million comprised of principal and accrued interest. An unrealized gain in the form of implied interest income of $1.6 million was recognized due to the conversion discount on the fair value of the shares. No unrealized gain or loss was recognized during the fiscal years ended July 31, 2021 and 2020.
Accrued Employee Compensation
Accrued employee compensation consists of the following (in thousands):
July 31, 2022July 31, 2021
Bonus$55,206 $48,414 
Commission6,247 11,271 
Vacation(1)
5,728 23,803 
Salaries, payroll taxes, and benefits23,781 18,649 
   Accrued employee compensation$90,962 $102,137 

(1)In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021.
Other Current Liabilities
Other current liabilities consist of the following (in thousands):
July 31, 2022July 31, 2021
Lease liabilities$12,238 $11,624 
Accrued royalties10,575 7,525 
Accrued taxes6,566 6,796 
Other5,961 5,703 
Other current liabilities$35,340 $31,648