Cash and Cash Equivalents

9 Months Ended

Apr. 30, 2011

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

NOTE 2 - Cash and Cash Equivalents

Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the standard establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level III) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company measures its investments, cash equivalents or marketable securities at fair value. Cash and cash equivalents are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.

As of April 30, 2011, cash and cash equivalents include the following (in thousands):

		Cost		Unrealized Gains		Unrealized Losses Less Than 12 Months		Unrealized Losses 12 Months or Longer		Estimated Fair Value
Cash	$	54,840	$	—	$	—	$	—	$	54,840
Money market funds		137,308		—		—		—		137,308
Total	$	192,148	$	—	$	—	$	—	$	192,148

The Company invests its excess cash in money market funds. The Company's cash and cash equivalents are placed with high credit quality financial institutions.