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Balance Sheet Components
 3 Months Ended
Oct. 31, 2020
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivables, Net
Accounts receivable, net consists of the following (in thousands):
October 31, 2020July 31, 2020
Accounts receivable$79,528 $115,518 
Allowance for credit losses and revenue reserves(1,233)(1,276)
Accounts receivable, net$78,295 $114,242 
Allowance for Credit Losses and Revenue Reserves
Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands):
Allowance, July 31, 2020$1,276 
Net changes to credit losses— 
Net changes to revenue reserves(43)
Write-offs, net— 
Allowance, October 31, 2020$1,233 

Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
October 31, 2020July 31, 2020
Prepaid expenses$16,363 $16,969 
Contract costs10,011 9,588 
Deferred costs7,881 8,399 
Deposits and other receivables11,496 11,033 
Prepaid expenses and other current assets$45,751 $45,989 

Property and Equipment, Net
Property and equipment consist of the following (in thousands):
October 31, 2020July 31, 2020
Computer hardware$17,051 $16,791 
Purchased software5,843 5,445 
Capitalized software development costs14,746 11,620 
Equipment and machinery11,545 11,438 
Furniture and fixtures9,762 9,792 
Leasehold improvements48,682 46,165 
      Total property and equipment107,629 101,251 
Less accumulated depreciation(40,213)(36,016)
      Property and equipment, net$67,416 $65,235 
As of October 31, 2020 and July 31, 2020, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $3.6 million and $3.5 million for the three months ended October 31, 2020 and 2019, respectively.
The Company capitalizes software development costs for technology applications that the Company will offer solely as cloud-based subscriptions, 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 $0.6 million and $0.3 million in amortization expense in cost of subscription and support revenue on the condensed consolidated statements of operations during the three months ended October 31, 2020 and 2019 respectively.
Goodwill and Intangible Assets, Net
There has been no change to the $340.9 million carrying amount of goodwill since July 31, 2020.
The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands):
October 31, 2020July 31, 2020
Remaining Weighted-Average Useful Life (in years)CostAccumulated AmortizationNet Book ValueCostAccumulated AmortizationNet Book Value
Intangible assets:
Acquired technology1.6$93,600 $77,717 $15,883 $93,600 $73,191 $20,409 
Customer contracts and related relationships3.635,700 19,983 15,717 35,700 18,500 17,200 
Partner relationships4.4200 102 98 200 96 104 
Trademarks4.02,500 1,071 1,429 2,500 982 1,518 
Order backlog0.38,700 8,442 258 8,700 8,223 477 
Total2.6$140,700 $107,315 $33,385 $140,700 $100,992 $39,708 

Amortization expense was $6.3 million and $7.2 million for the three months ended October 31, 2020 and 2019 respectively. The future amortization expense for existing intangible assets as of October 31, 2020, based on their current useful lives, is as follows (in thousands):
Fiscal year ending July 31,
2021 (remainder of fiscal year)$13,642 
202211,143 
20233,799 
20242,379 
20251,938 
Thereafter484 
     Total future amortization expense$33,385 

Other assets
Other assets consist of the following (in thousands):
October 31, 2020July 31, 2020
Prepaid expenses$4,577 $2,830 
Contract costs23,838 25,221 
Deferred costs4,916 5,729 
Strategic equity investments3,181 1,164 
Other assets$36,512 $34,944 

The Company’s other assets include strategic equity 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 first fiscal quarter of 2021, the Company invested $2.0 million in new strategic equity investments. No impairment charges were recognized during the three months ended October 31, 2020 and 2019, respectively.
Accrued Employee Compensation
Accrued employee compensation consists of the following (in thousands):
October 31, 2020July 31, 2020
Bonus$10,858 $20,188 
Commission1,116 7,201 
Vacation22,143 20,637 
Salaries, payroll taxes and benefits10,883 10,521 
     Accrued employee compensation$45,000 $58,547 

Other Current Liabilities
Other current liabilities consist of the following (in thousands):
October 31, 2020July 31, 2020
Lease liabilities$11,580 $10,936 
Accrued royalties5,725 6,651 
Accrued taxes2,116 3,817 
Other3,417 4,302 
Other current liabilities$22,838 $25,706