Guarantees

3 Months Ended

Oct. 31, 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. The Company accounts for this investment as an equity method investment. In the following table, the Outstanding debt relates to the joint venture and the Contingent liability for stand by letters of credit relate to the Company (in millions):

	October 31, 2019		July 31, 2019
Outstanding debt (the Company guarantees half)	$	40.0	$	38.8
Contingent liability for standby letters of credit (1)	10.7		11.0
Amounts drawn for letters of credit	$	—	$	—

(1) 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.

The following items relate to the Company’s joint venture (in millions):

	Three Months Ended October 31,
	2019			2018
Investment earnings (loss) (1)	$	0.1	300	$	(0.3	)
Royalty income (1)	$	1.9	1,700	$	1.7

(1) Recorded in other income, net.