Income Taxes (Tables)

12 Months Ended

Jul. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income from continuing operations before taxes

Income before taxes consisted of the following:

	Year Ended July 31,
(In thousands)	2020		2019		2018
U.S.	$	740,171	$	634,874	$	501,961
International	60,668		70,077		60,550
Total income before taxes	$	800,839	$	704,951	$	562,511

Schedule of income tax expense (benefit) from continuing operations

Income tax expense (benefit) from continuing operations consisted of the following:

	Year Ended July 31,
(In thousands)	2020		2019		2018
Federal:
Current	$	53,942	$	59,848	$	109,804
Deferred	21,019		27,779		17,094
	74,961		87,627		126,898
State:
Current	12,095		12,720		9,100
Deferred	565		702		(111)
	12,660		13,422		8,989
International:
Current	13,333		12,508		8,820
Deferred	(22)		(299)		(203)
	13,311		12,209		8,617
Income tax expense	$	100,932	$	113,258	$	144,504

Schedule of reconciliation of Income tax

A reconciliation of the expected U.S. statutory tax rate to the actual effective income tax rate is as follows:

	Year Ended July 31,
(In thousands)	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	26.9	%
State income taxes, net of federal income tax benefit	1.6	%	1.4	%	1.3	%
International rate differential	0.1	%	0.3	%	(0.8)	%
Compensation and fringe benefits (1)	(11.2)	%	(6.4)	%	(3.5)	%
GILTI, FDII, and transition tax	(0.3)	%	(0.7)	%	2.2	%
Deferred tax remeasurement	—	%	—	%	(0.8)	%
Other differences	1.4	%	0.5	%	0.4	%
Effective tax rate	12.6	%	16.1	%	25.7	%

(1)Included in the compensation and fringe benefits rate reconciliation is the impact of the Company’s adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. Under this standard, all excess tax benefits and tax deficiencies related to exercises of stock options are recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur.

Schedule of tax effects on deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) are presented below:

	July 31,
(In thousands)	2020		2019
Deferred tax assets:
Allowance for doubtful accounts	$	1,141	$	919
Accrued compensation and benefits	13,217		18,397
State taxes	460		559
Accrued other	4,763		3,312
Deferred revenue	1,950		1,322
Losses carried forward	15,092		7,631
Federal tax benefit	9,872		7,998
Total gross deferred tax assets	46,495		40,138
Less: Valuation allowance	(15,429)		(8,578)
Net deferred tax assets	31,066		31,560
Deferred tax liabilities:
Vehicle pooling costs	(15,291)		(15,731)
Property and equipment	(62,123)		(38,475)
Prepaid insurance	(1,411)		(987)
Intangibles and goodwill	(23,714)		(24,639)
Total gross deferred tax liabilities	(102,539)		(79,832)
Net deferred tax liabilities	$	(71,473)	$	(48,272)

Schedule of net deferred tax liability

The above net deferred tax assets and liabilities have been reflected in the accompanying consolidated balance sheets as follows:

	July 31,
(In thousands)	2020		2019
U.S. non-current liabilities	$	(66,082)	$	(44,499)
International non-current liabilities	(5,391)		(3,773)
Net deferred tax liabilities	$	(71,473)	$	(48,272)

Schedule of unrecognized tax benefits

The following table summarizes the activities related to the Company’s unrecognized tax benefits resulting from uncertain tax positions:

	July 31,
(In thousands)	2020		2019		2018
Beginning balance	$	27,537	$	21,322	$	19,269
Increases related to current year tax position	8,196		6,588		5,169
Prior year tax positions:
Prior year increase	6,390		800		554
Prior year decrease	(1,603)		(305)		(2,079)
Cash settlement	(1,182)		(534)		(519)
Lapse of statute of limitations	(3,215)		(334)		(1,072)
Ending balance	$	36,123	$	27,537	$	21,322