Balance Sheet Components

12 Months Ended

Jul. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 4. BALANCE SHEET COMPONENTS

Short-Term Investments

The amortized cost of our short-term investments approximates their fair value. Unrealized losses related to our short-term investments are generally due to interest rate fluctuations, as opposed to credit quality. However, we review individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses that would result in a decline in fair value. As of July 31, 2021 and 2022, unrealized gains and losses from our short-term investments were not material and were not the result of a decline in credit quality. As a result, at July 31, 2021 and 2022, we did not record any credit losses for these investments.

The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:


	As of July 31, 2022
	(in thousands)
Due within one year	$	770,454
Due in one to two years		150,975
Total	$	921,429

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of July 31,
	2021		2022
	(in thousands)
Prepaid operating expenses	$	36,455	$	48,842
VAT receivables		8,290		7,514
Other current assets		12,071		37,431
Total prepaid expenses and other current assets	$	56,816	$	93,787

The increase in other current assets from July 31, 2021 to July 31, 2022 was due primarily to the addition of a receivable for the estimated recovery of our settlement offer and certain legal fees and professional expenses payable under our applicable insurance policies related to certain litigation matters, as well as the addition of tenant improvement allowances receivable within the next 12 months.

Property and Equipment, Net

Property and equipment, net consists of the following:


	Estimated	As of July 31,
	Useful Life	2021			2022
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	300,583		$	341,536
Demonstration units	12		68,992			61,914
Leasehold improvements	(1)		62,676			61,443
Furniture and fixtures	60		16,518			16,508
Total property and equipment, gross			448,769			481,401
Less: accumulated depreciation (2)			(317,148	)		(367,961	)
Total property and equipment, net		$	131,621		$	113,440

(1)

Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

(2)

Includes a $0.9 million write-off related to the impairment of certain leasehold improvements during the fiscal year ended July 31, 2021. For additional information on this lease-related impairment, refer to Note 6.

Depreciation expense related to our property and equipment was $76.4 million, $76.5 million and $69.3 million for the fiscal years ended July 31, 2020, 2021 and 2022, respectively.

Intangible Assets, Net

Intangible assets, net consists of the following:


	As of July 31,
	2021			2022
	(in thousands)
Developed technology	$	79,300		$	79,300
Customer relationships		8,860			8,860
Trade name		4,170			4,170
Total intangible assets, gross		92,330			92,330
Less:
Accumulated amortization of developed technology		(50,764	)		(64,344	)
Accumulated amortization of customer relationships		(6,513	)		(8,074	)
Accumulated amortization of trade name		(3,041	)		(4,083	)
Total accumulated amortization		(60,318	)		(76,501	)
Total intangible assets, net	$	32,012		$	15,829

Amortization expense related to our intangible assets is being recognized in our consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name.

The changes in the net book value of intangible assets, net are as follows:


	As of July 31,
	2021			2022
	(in thousands)
Intangible assets, net—beginning balance	$	49,392		$	32,012
Amortization of intangible assets (1)		(17,380	)		(16,183	)
Intangible assets, net—ending balance	$	32,012		$	15,829

(1)

Represents amortization expense related to intangible assets recognized during the year in our consolidated statements of operations, within product cost of revenue and sales and marketing expense.

The estimated future amortization expense of our intangible assets is as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2023	$	10,856
2024		3,210
2025		1,763
Total	$	15,829

Goodwill

There was no change in the carrying amount of goodwill during the fiscal years ended July 31, 2021 or 2022.

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of July 31,
	2021		2022
	(in thousands)
Accrued commissions	$	48,321	$	32,886
Accrued vacation		26,961		23,140
Payroll taxes payable		21,603		21,060
Accrued wages and taxes		1,675		20,807
Contributions to ESPP withheld		26,735		19,174
Accrued benefits		10,243		11,774
Accrued bonus		14,878		9,782
Other		11,921		11,188
Total accrued compensation and benefits	$	162,337	$	149,811

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of July 31,
	2021		2022
	(in thousands)
Income taxes payable	$	13,309	$	13,206
Accrued professional services		3,541		5,499
Other		22,554		30,527
Total accrued expenses and other current liabilities	$	39,404	$	49,232