v3.24.3
Fair Value Measurements
 3 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2024 and July 31, 2024 (in millions):
October 31, 2024July 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash equivalents:
Money market funds$1,105.3 $— $— $1,105.3 $494.0 $— $— $494.0 
Commercial paper— 228.7 — 228.7 — 299.6 — 299.6 
Corporate debt securities— 34.2 — 34.2 — 18.2 — 18.2 
U.S. government and agency securities— 74.8 — 74.8 — 149.6 — 149.6 
Total cash equivalents1,105.3 337.7 — 1,443.0 494.0 467.4 — 961.4 
Short-term investments:
Certificates of deposit— 15.7 — 15.7 — 20.6 — 20.6 
Commercial paper— 36.1 — 36.1 — 79.9 — 79.9 
Corporate debt securities— 1,037.5 — 1,037.5 — 935.9 — 935.9 
U.S. government and agency securities— 4.2 — 4.2 — 2.7 — 2.7 
Non-U.S. government and agency securities— — — — — 4.2 — 4.2 
Asset-backed securities— 14.7 — 14.7 — 0.3 — 0.3 
Total short-term investments— 1,108.2 — 1,108.2 — 1,043.6 — 1,043.6 
Long-term investments:
Corporate debt securities— 3,095.2 — 3,095.2 — 3,151.3 — 3,151.3 
U.S. government and agency securities— 17.7 — 17.7 — 19.0 — 19.0 
Non-U.S. government and agency securities— 39.1 — 39.1 — 54.4 — 54.4 
Asset-backed securities— 967.7 — 967.7 — 948.5 — 948.5 
Total long-term investments— 4,119.7 — 4,119.7 — 4,173.2 — 4,173.2 
Prepaid expenses and other current assets:
Foreign currency forward contracts— 5.3 — 5.3 — 4.1 — 4.1 
Total prepaid expenses and other current assets— 5.3 — 5.3 — 4.1 — 4.1 
Other assets:
Foreign currency forward contracts— — — — — 0.1 — 0.1 
Total other assets— — — — — 0.1 — 0.1 
Total assets measured at fair value$1,105.3 $5,570.9 $— $6,676.2 $494.0 $5,688.4 $— $6,182.4 
October 31, 2024July 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Accrued and other liabilities:
Foreign currency forward contracts$— $11.8 $— $11.8 $— $15.3 $— $15.3 
Contingent consideration
— — 238.5 238.5 — — — — 
Total accrued and other liabilities— 11.8 238.5 250.3 — 15.3 — 15.3 
Other long-term liabilities:
Foreign currency forward contracts— — — — — 0.9 — 0.9 
Contingent consideration
— — 416.7 416.7 — — — — 
Total other long-term liabilities— — 416.7 416.7 — 0.9 — 0.9 
Total liabilities measured at fair value$— $11.8 $655.2 $667.0 $— $16.2 $— $16.2 
The fair value of contingent consideration liability is estimated using a discounted cash flow valuation technique. We consider the fair value of our contingent consideration liability to be a Level 3 measurement as we use unobservable inputs in determining discounted cash flows to estimate the fair value. The significant unobservable inputs include an estimate of future cash payments related to customers entering into qualified new transactions as well as a risk-adjusted discount rate used to present value the expected cash flows. A significant change in any of these assumptions could have a material impact to the fair value of our contingent consideration liability.
The following table presents a reconciliation of our contingent consideration liability (in millions):
Three Months Ended October 31, 2024
Contingent consideration liability at the beginning of the period
$— 
Initial valuation on the acquisition date
648.9 
Change in fair value
6.3 
Contingent consideration liability at the end of the period
$655.2 
The total estimated fair value of our financing receivables approximates their carrying amounts as of October 31, 2024 and July 31, 2024. We consider the fair value of our financing receivables to be a Level 3 measurement as we use unobservable inputs in determining discounted cash flows to estimate the fair value.
Refer to Note 9. Debt for the carrying amount and estimated fair value of our convertible senior notes as of October 31, 2024 and July 31, 2024.