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Guarantees
 6 Months Ended
Jan. 31, 2020
Guarantees [Abstract]  
Guarantees Guarantees
The Company and Caterpillar Inc. equally own the shares of Advanced Filtration Systems Inc. (AFSI), an unconsolidated joint venture, and guarantee certain debt of the joint venture. The Company accounts for this investment as an equity method investment. In the following table, the outstanding debt relates to the joint venture and the contingent liability for standby letters of credit relate to the Company (in millions):
 
 
January 31,
2020

 
July 31,
2019

Outstanding debt (the Company guarantees half)
 
$
39.5

 
$
38.8

Contingent liability for standby letters of credit (1)
 
$
7.5

 
$
11.0

Amounts drawn for letters of credit
 
$
—

 
$
—

(1) The letters of credit guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit.
The following items relate to the Company’s joint venture (in millions):
 
 
Three Months Ended January 31,
 
Six Months Ended January 31, 2019
 
 
2020

 
2019

 
2020

 
2019

Investment earnings (loss) from AFSI (1)
 
$
0.3

 
$
(0.1
)
 
$
0.4


$
(0.3
)
Royalty income from AFSI (1)
 
$
1.7


$
1.6

 
$
3.6


$
3.3

(1) Recorded in other income, net in the Company’s Condensed Consolidated Statements of Earnings.