Fair Value Measurements and Financial Instruments

9 Months Ended

Apr. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

(4)    Fair Value Measurements and Financial Instruments

In accordance with FASB ASC 825, “Financial Instruments,” we determined that, as of April 30, 2014 and July 31, 2013, the fair value of our 3.0% convertible senior notes was approximately $192,648,000 and $208,080,000, respectively, based on quoted market prices in an active market. As discussed in Note (11) –“3.0% Convertible Senior Notes,” as of May 5, 2014, none of our 3.0% convertible senior notes remain outstanding.

As of April 30, 2014 and July 31, 2013, we had approximately $9,428,000 and $50,182,000, respectively, consisting principally of money market mutual funds which are classified as cash and cash equivalents in our Condensed Consolidated Balance Sheets. These money market mutual funds are recorded at their current fair value. FASB ASC 820, “Fair Value Measurements and Disclosures,” requires us to define fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, using the fair value hierarchy described in FASB ASC 820, we valued our money market mutual funds using Level 1 inputs that were based on quoted market prices.

As of April 30, 2014 and July 31, 2013, other than our cash and cash equivalents, we have no other significant assets or liabilities included in our Condensed Consolidated Balance Sheets recorded at current fair value. If we acquire different types of assets or incur different types of liabilities in the future, we might be required to use different FASB ASC fair value methodologies.