Fair value measurements

6 Months Ended

Jan. 31, 2018

Fair Value Disclosures [Abstract]

Fair value measurements

6. Fair value measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. We use a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:

• Level 1 – Quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables provide the assets and liabilities carried at fair value and measured on a recurring basis at January 31, 2018 and July 31, 2017:

	Fair Value Measurement as of January 31, 2018
(in millions)	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	53.5	$	-	$	-		$	53.5	$	53.5	$	-
Level 1:
Money market funds		34.2		-		-			34.2		34.2		-
Subtotal	$	87.7	$	-	$	-		$	87.7	$	87.7	$	-
Level 2:
U.S. agency securities	$	4.0	$	-	$	-		$	4.0	$	-	$	4.0
Non-U.S. government securities		11.5		-		-			11.5		-		11.5
Commercial paper		23.6		-		-			23.6		13.2		10.4
Corporate securities		47.3		-					47.3		-		47.3
Asset-backed securities		28.3		-		(0.1	)		28.2		1.0		27.2
Subtotal	$	114.7	$	-	$	(0.1	)	$	114.6	$	14.2	$	100.4
Total	$	202.4	$	-	$	(0.1	)	$	202.3	$	101.9	$	100.4

	Fair Value Measurement as of July 31, 2017
(in millions)	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	46.7	$	-	$	-		$	46.7	$	46.7	$	-
Level 1:
Money market funds		38.4		-		-			38.4		38.4		-
Subtotal	$	85.1	$	-	$	-		$	85.1	$	85.1	$	-
Level 2:
U.S. Treasury securities	$	10.0	$	-	$	-		$	10.0	$	10.0	$	-
U.S. agency securities		7.0		-		-			7.0		7.0		-
Non-U.S. government securities		3.9		-		-			3.9		-		3.9
Commercial paper		30.1		-		-			30.1		27.2		2.9
Corporate securities		28.0		-		(0.01	)		28.0		-		28.0
Asset-backed securities		10.2		-		-			10.2		-		10.2
Subtotal	$	89.2	$	-	$	(0.01	)	$	89.2	$	44.2	$	45.0
Total	$	174.3	$	-	$	(0.01	)	$	174.3	$	129.3	$	45.0

Plan assets for deferred compensation	As of		As of
	January 31,		July 31,
(in millions)	2018		2017
Level 1:
Plan assets for deferred compensation		5.1		4.7
Total	$	5.1	$	4.7

Assets held in the deferred compensation plan will be used to pay benefits under our non-qualified deferred compensation plan. The investments primarily consist of mutual funds that are publicly traded on stock exchanges. Accordingly, the fair value of these assets is categorized as Level 1 within the fair value hierarchy.

Foreign currency forward contracts	As of		As of
	January 31,		July 31,
(in millions)	2018		2017
Level 2:
Foreign currency forward contracts asset		0.5		0.6
Total	$	0.5	$	0.6

The fair value of the liabilities arising from our foreign currency forward contracts is determined by valuation models based on market observable inputs, including forward and spot prices for currencies. Accordingly, the fair value of these liabilities is categorized as Level 2 within the fair value hierarchy.