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Balance Sheet Components
 12 Months Ended
Jul. 31, 2020
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivables, Net
Accounts receivable, net consist of the following (in thousands):
July 31, 2020July 31, 2019
Accounts receivable$115,518 $139,884 
Allowance for doubtful accounts and revenue reserves(1,276)(1,441)
Accounts receivable, net$114,242 $138,443 
Allowance for Doubtful Accounts and Revenue Reserves
Changes to the allowance for doubtful accounts and revenue reserves consists of the following (in thousands):
Allowance, July 31, 2019$1,441 
Charges to bad debt and revenue reserves367 
Write-offs, net(532)
Allowance, July 31, 2020$1,276 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
July 31, 2020July 31, 2019
Prepaid expenses$16,969 $11,926 
Contract costs9,588 7,015 
Deferred costs8,399 7,030 
Deposits and other receivables11,033 9,595 
Prepaid expenses and other current assets$45,989 $35,566 
Property and Equipment, net
Property and equipment consist of the following (in thousands):
July 31, 2020July 31, 2019
Computer hardware$16,791 $17,799 
Purchased software5,445 6,741 
Capitalized software development costs11,620 7,374 
Equipment and machinery11,438 10,455 
Furniture and fixtures9,792 8,137 
Leasehold improvements46,165 48,191 
    Total property and equipment101,251 98,697 
Less accumulated depreciation(36,016)(32,888)
    Property and equipment, net$65,235 $65,809 
As of July 31, 2020 and 2019, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of software development costs, was $14.5 million, $9.7 million, and $7.7 million for the fiscal years ended July 31, 2020, 2019, and 2018, respectively.
The Company capitalizes software development costs for technology applications that the Company will offer solely as cloud-based subscription service, which is primarily comprised of compensation for employees who are directly associated with the software development projects. The Company begins amortizing the capitalized software development costs once the technology applications are available for general release and amortizes those costs over the estimated lives of the applications, which typically ranges from three to five years. The Company recognized approximately $1.4 million, $1.0 million, and $0.4 million in amortization expense in cost of revenue - subscription and support on the accompanying consolidated statements of operations during the fiscal years ended July 31, 2020, 2019, and 2018 respectively.
Goodwill and Intangible Assets
There was no change to the carrying amount of goodwill of $340.9 million for fiscal years ending July 31, 2020, 2019, and 2018 respectively.
The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):
July 31, 2020July 31, 2019
Remaining Weighted-Average Useful Life (in years)CostAccumulated AmortizationNet Book ValueCostAccumulated AmortizationNet Book Value
Acquired technology1.7$93,600 $73,191 20,409 $93,600 $53,970 $39,630 
Customer contracts and related relationships3.835,700 18,500 17,200 35,700 12,566 23,134 
Partner relationships4.7200 96 104 200 74 126 
Trademarks4.32,500 982 1,518 2,500 625 1,875 
Order backlog0.68,700 8,223 477 8,700 6,923 1,777 
Total2.7$140,700 $100,992 $39,708 $140,700 $74,158 $66,542 
Amortization expense was $26.8 million, $29.1 million, and $27.5 million during the years ended July 31, 2020, 2019, and 2018, respectively. The future amortization expense for existing intangible assets as of July 31, 2020, based on their current useful lives, is as follows (in thousands):
Fiscal year ending July 31,
2021$19,965 
202211,143 
20233,799 
20242,379 
20251,938 
Thereafter484 
Total future amortization expense$39,708 
Other Assets
Other assets consist of the following (in thousands):
July 31, 2020July 31, 2019
Prepaid expenses$2,830 $2,640 
Contract costs25,221 23,375 
Deferred costs5,729 8,867 
Strategic investments1,164 10,672 
Other assets$34,944 $45,554 
The Company’s other assets include strategic investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. In the fourth fiscal quarter of 2020, the Company invested in two new strategic investments in the amount of $1.2 million. In the third fiscal quarter of
2020, the Company recognized an impairment charge related to one of its strategic investments of $10.7 million primarily due to liquidity constraints in the current economic environment.
Accrued Employee Compensation
Accrued employee compensation consists of the following (in thousands):
July 31, 2020July 31, 2019
Bonus$20,188 $37,628 
Commission7,201 10,317 
Vacation20,637 14,511 
Salaries, payroll taxes and benefits10,521 10,909 
     Total$58,547 $73,365 
Other Current Liabilities
Other current liabilities consist of the following (in thousands):
July 31, 2020July 31, 2019
Lease liabilities$10,936 $— 
Accrued royalties6,651 5,573 
Accrued taxes3,817 4,413 
Other4,302 6,362 
Other current liabilities$25,706 $16,348