Guarantees

9 Months Ended

Apr. 30, 2020

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 AFSI as an equity method investment. In the following table, the outstanding debt relates to the joint venture and the contingent liability for standby letters of credit relate to the Company (in millions):

	April 30, 2020		July 31, 2019
Outstanding debt (the Company guarantees half)	$	39.6	$	38.8
Contingent liability for standby letters of credit (1)	$	7.5	$	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 AFSI (in millions):

	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
Investment earnings from AFSI (1)	$	0.8	$	0.4	$	1.2	$	0.1
Royalty income from AFSI (1)	$	1.6	$	1.5	$	5.2	$	4.8

(1) Recorded in other income, net in the Company’s Condensed Consolidated Statements of Earnings.