Guarantees

6 Months Ended

Jan. 31, 2021

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 and banking services, including credit and debit cards, merchant processing and treasury management services, of the joint venture. The Company accounts for AFSI as an equity method investment.

The outstanding debt relating to the joint venture and the contingent liability for standby letters of credit relating to the Company are as follows (in millions):

	January 31, 2021		July 31, 2020
Outstanding debt (the Company guarantees half)	$	33.7	$	40.0
Contingent liability for standby letters of credit	$	7.7	$	7.5
Amounts drawn for letters of credit	$	—	$	—

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.

Items relating to the Company’s joint venture in AFSI are as follows (in millions):

	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
Investment earnings from AFSI	$	0.2	$	0.3	$	0.5	$	0.4
Royalty income from AFSI	$	1.7	$	1.7	$	3.2	$	3.6

Items relating to the Company’s joint venture in AFSI are recorded in other (income) expense, net on the Company’s Condensed Consolidated Statements of Earnings.