XML 44 R26.htm IDEA: XBRL DOCUMENT v3.21.2
Convertible Senior Notes (Tables)
12 Months Ended
Jul. 31, 2021
Debt Instrument [Line Items]  
Net Proceeds from Notes The total net proceeds from the 2023 Notes are as follows:

 

 

 

Amount

 

 

 

(in thousands)

 

Principal amount

 

$

575,000

 

Less: initial purchasers' discount

 

 

(10,781

)

Less: cost of the bond hedges

 

 

(143,175

)

Add: proceeds from the sale of warrants

 

 

87,975

 

Less: other issuance costs

 

 

(707

)

Net proceeds

 

$

508,312

 

2023 Convertible Senior Notes  
Debt Instrument [Line Items]  
Components of Notes

The 2023 Notes consisted of the following:

 

 

 

As of July 31,

 

 

 

2020

 

 

2021

 

 

 

(in thousands)

 

Principal amounts:

 

 

 

 

 

 

Principal

 

$

575,000

 

 

$

575,000

 

Unamortized debt discount (1)

 

 

(80,298

)

 

 

(48,616

)

Unamortized debt issuance costs (1)

 

 

(4,480

)

 

 

(2,713

)

Net carrying amount

 

$

490,222

 

 

$

523,671

 

Carrying amount of equity component (2)

 

$

148,598

 

 

$

148,598

 

 

 

(1)
Included in the consolidated balance sheets within "convertible senior notes, net" and amortized over the remaining life of the 2023 Notes using the effective interest rate method. The effective interest rate is 6.62%.
(2)
Included in the consolidated balance sheets within additional paid-in capital, net of $3.0 million in equity issuance costs.
Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2023 Notes:

 

 

 

Fiscal Year Ended July 31,

 

 

 

2019

 

 

2020

 

 

2021

 

 

 

(in thousands)

 

Interest expense related to amortization of debt discount

 

$

27,764

 

 

$

29,658

 

 

$

31,682

 

Interest expense related to amortization of debt issuance
   costs

 

 

1,549

 

 

 

1,654

 

 

 

1,767

 

Total interest expense

 

$

29,313

 

 

$

31,312

 

 

$

33,449

 

2026 Convertible Senior Notes  
Debt Instrument [Line Items]  
Components of Notes

The 2026 Notes consisted of the following:

 

 

 

As of July 31, 2021

 

 

 

(in thousands)

 

Principal amounts:

 

 

 

Principal

 

$

750,000

 

Non-cash interest expense converted to principal

 

 

8,906

 

Unamortized debt discount (conversion feature) (1)

 

 

(203,619

)

Unamortized debt issuance costs (1)

 

 

(23,264

)

Net carrying amount

 

$

532,023

 

 

(1)
Included in the consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.
Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the 2026 Notes:

 

 

 

Fiscal Year Ended July 31, 2021

 

 

 

(in thousands)

 

Interest expense related to amortization of debt discount

 

$

27,291

 

Interest expense related to amortization of debt issuance costs

 

 

3,119

 

Non-cash interest expense

 

 

16,074

 

Total interest expense

 

$

46,484