Guarantees

12 Months Ended

Jul. 31, 2020

Product Warranties Disclosures [Abstract]

Guarantees

GuaranteesThe Company and Caterpillar Inc. equally own the shares of Advanced Filtration Systems Inc. (AFSI), an unconsolidated joint venture, and guarantee certain debt and banking services, including credit and debit cards, merchant processing and treasury management services, of the joint venture. The Company accounts for AFSI 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 (in millions):

	July 31,
	2020		2019
AFSI outstanding debt (the Company guarantees half)	$	40.0	$	38.8
Contingent liability for standby letters of credit	7.5		11.0
Amounts drawn for letters of credit	—		—

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 AFSI (in millions):

	Year Ended July 31,
	2020		2019		2018
Investment earnings from AFSI (1)	$	2.2	$	(0.3)	$	1.3
Royalty income from AFSI (1)	6.8		6.5		7.0

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