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Guarantees
9 Months Ended
Apr. 30, 2019
Guarantees [Abstract]  
Guarantees
Guarantees
The Company and Caterpillar Inc. equally own the shares of Advanced Filtration Systems Inc. (AFSI), an unconsolidated joint venture, and guarantee certain debt of the joint venture. As of April 30, 2019, AFSI had $38.2 million of outstanding debt, of which the Company guarantees half. In addition, during the three months ended April 30, 2019 and 2018, the Company recorded earnings of $0.4 million and earnings of $0.6 million, respectively, from this equity method investment. During the nine months ended April 30, 2019 and 2018, the Company recorded earnings of $0.1 million and earnings of $1.1 million, respectively, from this equity method investment. During the three months ended April 30, 2019 and 2018, the Company recorded royalty income related to AFSI of $1.5 million and $1.7 million, respectively, in other income, net. During the nine months ended April 30, 2019 and 2018, the Company recorded royalty income related to AFSI of $4.8 million and $5.3 million, respectively, in other income, net.
As of April 30, 2019 and July 31, 2018, the Company had a contingent liability for standby letters of credit totaling $11.2 million and $8.2 million, respectively, that have been issued and are outstanding. The letters of credit guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit. As of April 30, 2019 and July 31, 2018, there were no amounts drawn upon these letters of credit.