Convertible Senior Notes (Tables)

6 Months Ended

Jan. 31, 2023

The net carrying amount of the liability component of the Notes consisted of the following:


	January 31,		July 31,
	2023		2022

	(in thousands)
Principal amount	$	1,149,993	$	1,149,995
Less:
Unamortized debt discount (1)	—		172,169
Unamortized debt issuance costs (1)	9,477		9,152
Net carrying amount	$	1,140,516	$	968,674

(1) Effective August 1, 2022, we adopted ASU 2020-06 using the modified retrospective method under which prior period amounts have not been adjusted. The adoption of this standard resulted in the elimination of the debt discount and related amortization as interest expense and the classification of the portion of the debt issuance costs initially allocated to equity within the carrying amount of our senior convertible notes, which is recognized as interest expense post adoption of the standard.

The following table sets forth total interest expense recognized related to the Notes:


	Three Months Ended January 31,				Six Months Ended January 31,
	2023		2022		2023		2022

	(in thousands)
Contractual interest expense	$	360	$	359	$	719	$	719
Amortization of debt discount (1)	—		12,990		—		25,785
Amortization of debt issuance costs (1)	973		691		1,945		1,371
Total	$	1,333	$	14,040	$	2,664	$	27,875

(1) The decrease in total interest expense for the three and six months ended January 31, 2023, was due to the derecognition of unamortized debt discount partially offset by the increase in the amortization of issuance costs previously recognized in equity. These changes were the result of adoption of ASU 2020-06, as described in Note 1, Business and Summary of Significant Accounting Policies.