Equity Investment

3 Months Ended

Oct. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Investment

Equity Investment

As discussed in the Company's Fiscal 2019 Form 10-K, in February 2018, the Company formed a joint venture with Tourism Holdings Limited ("thl") called TH2connect, LLC ("TH2"). In July 2019, TH2 was rebranded as "Togo Group."

The Company’s investment in TH2 is accounted for under the equity method of accounting. The Company’s share of the losses of this investment are included in Other income (expense), net in the Condensed Consolidated Statements of Income and Comprehensive Income. The losses recognized in the three-month periods ended October 31, 2019 and October 31, 2018 were $2,095 and $1,483, respectively.

In accordance with the operating agreements between the parties, both thl and the Company will fund TH2's future working capital needs proportionately, and each loaned TH2 $1,534 during the three months ended October 31, 2019. The Company had total loans outstanding with TH2 of $3,691 and $2,157 at October 31, 2019 and July 31, 2019, respectively, and those amounts are included in Other assets on the Condensed Consolidated Balance Sheets.