Convertible Senior Notes (Tables)
|
6 Months Ended |
Jan. 31, 2022 |
|---|
| Debt Instrument [Line Items] |
|
| Net Proceeds from Notes |
The total net proceeds from the issuance of the 2023 Notes were as follows:
|
|
|
|
|
|
|
|
Amount |
|
|
|
(in thousands) |
|
Principal amount |
|
$ |
575,000 |
|
Less: initial purchasers' discount |
|
|
(10,781 |
) |
Less: cost of the bond hedges |
|
|
(143,175 |
) |
Add: proceeds from the sale of warrants |
|
|
87,975 |
|
Less: other issuance costs |
|
|
(707 |
) |
Net proceeds |
|
$ |
508,312 |
|
|
| 2023 Convertible Senior Notes |
|
| Debt Instrument [Line Items] |
|
| Components of Notes |
The 2023 Notes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
July 31,
2021 |
|
|
January 31,
2022 |
|
|
|
(in thousands) |
|
Principal amounts: |
|
|
|
|
|
|
Principal |
|
$ |
575,000 |
|
|
$ |
145,704 |
|
Unamortized debt discount (1) |
|
|
(48,616 |
) |
|
|
— |
|
Unamortized debt issuance costs (1) |
|
|
(2,713 |
) |
|
|
(544 |
) |
Net carrying amount |
|
$ |
523,671 |
|
|
$ |
145,160 |
|
Carrying amount of equity component (2) |
|
$ |
148,598 |
|
|
$ |
— |
|
(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2023 Notes using the effective interest rate method. As of July 31, 2021, the effective interest rate was 6.62%. As of January 31, 2022, the effective interest rate was 0.41%. (2)Included in the consolidated balance sheet as of July 31, 2021 within additional paid-in capital, net of $3.0 million in equity issuance costs.
|
| Interest Expense Recognized |
The following table sets forth the total interest expense recognized related to the 2023 Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31, |
|
|
Six Months Ended
January 31, |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
(in thousands) |
|
Interest expense related to amortization of debt discount |
|
$ |
7,854 |
|
|
$ |
— |
|
|
$ |
15,579 |
|
|
$ |
— |
|
Interest expense related to amortization of debt issuance
costs |
|
|
438 |
|
|
|
148 |
|
|
|
869 |
|
|
|
548 |
|
Total interest expense |
|
$ |
8,292 |
|
|
$ |
148 |
|
|
$ |
16,448 |
|
|
$ |
548 |
|
|
| 2026 Convertible Senior Notes |
|
| Debt Instrument [Line Items] |
|
| Components of Notes |
The 2026 Notes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
July 31,
2021 |
|
|
January 31,
2022 |
|
|
|
(in thousands) |
|
Principal amounts: |
|
|
|
|
|
|
Principal |
|
$ |
750,000 |
|
|
$ |
750,000 |
|
Non-cash interest expense converted to principal |
|
|
8,906 |
|
|
|
18,393 |
|
Unamortized debt discount (conversion feature) (1) |
|
|
(203,619 |
) |
|
|
(186,829 |
) |
Unamortized debt issuance costs (1) |
|
|
(23,264 |
) |
|
|
(21,346 |
) |
Net carrying amount |
|
$ |
532,023 |
|
|
$ |
560,218 |
|
(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.
|
| Interest Expense Recognized |
The following table sets forth the total interest expense recognized related to the 2026 Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31, |
|
|
Six Months Ended
January 31, |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
(in thousands) |
|
Interest expense related to amortization of debt discount |
|
$ |
7,894 |
|
|
$ |
8,469 |
|
|
$ |
11,081 |
|
|
$ |
16,789 |
|
Interest expense related to amortization of debt issuance costs |
|
|
902 |
|
|
|
968 |
|
|
|
1,267 |
|
|
|
1,919 |
|
Non-cash interest expense |
|
|
4,663 |
|
|
|
4,802 |
|
|
|
6,615 |
|
|
|
9,575 |
|
Total interest expense |
|
$ |
13,459 |
|
|
$ |
14,239 |
|
|
$ |
18,963 |
|
|
$ |
28,283 |
|
|
| 2027 Convertible Senior Notes |
|
| Debt Instrument [Line Items] |
|
| Components of Notes |
The 2027 Notes consisted of the following:
|
|
|
|
|
|
|
|
As of January 31, 2022 |
|
|
|
(in thousands) |
|
Principal amounts: |
|
|
|
Principal |
|
$ |
575,000 |
|
Unamortized debt issuance costs (1) |
|
|
(8,757 |
) |
Net carrying amount |
|
$ |
566,243 |
|
(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2027 Notes using the effective interest rate method. The effective interest rate is 0.52%.
|
| Interest Expense Recognized |
The following table sets forth the total interest expense recognized related to the 2027 Notes:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31, |
|
|
Six Months Ended
January 31, |
|
|
|
2022 |
|
|
2022 |
|
|
|
(in thousands) |
|
Contractual interest expense |
|
$ |
359 |
|
|
$ |
540 |
|
Interest expense related to amortization of debt issuance costs |
|
|
380 |
|
|
|
511 |
|
Total interest expense |
|
$ |
739 |
|
|
$ |
1,051 |
|
|