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Stock-based Compensation
 6 Months Ended
Jan. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
The Company recognizes compensation expense for stock option awards without a market condition on a straight-line basis over the requisite service period of the award. The following is a summary of activity for the Company’s stock options for the six months ended January 31, 2023:
(In thousands, except per share and term data)SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (In years)Aggregate Intrinsic Value
Outstanding as of July 31, 202211,394 $29.31 5.50$398,331 
Grants of options294 65.49 
Exercises(299)36.15 
Forfeitures or expirations(263)54.34 
Outstanding as of January 31, 202311,126 $29.49 5.01$414,798 
Exercisable as of January 31, 20238,910 $24.46 4.33$377,288 
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock. The number of options that were in-the-money was 13,689,922 at January 31, 2023.
The Company grants option awards to certain executives that contain service and market conditions. The options will become exercisable over five years, subject to continued service by the executive, with 20% vesting on the first anniversary of the grant date and the balance vesting monthly over the subsequent four years. Separate and apart from the time-based vesting schedule, the options are also subject to a market condition requiring the trading price of Copart, Inc. common stock on the NASDAQ Global Select Market to be greater than or equal to 125% of the exercise price of the options, determined both (i) at the time of any exercise, and (ii) based on the closing price on each of the twenty consecutive trading days preceding the date of any exercise. The exercise price of the options is equivalent to the closing price of the Company’s common stock on the grant date. The fair value of the awards is determined at the grant date using either Lattice or Monte Carlo model, risk-free interest rates ranging from 0.71% to 3.57%, estimated volatility ranging from 25.2% to 29.3%, and no expected dividends. The total estimated compensation expense to be recognized by the Company over the five-year service period for these options is $48.4 million and will be recognized using the accelerated attribution method over each vesting tranche of the award. The Company recognized $6.5 million and $4.6 million in compensation expense related to these awards in the six months ended January 31, 2023 and 2022, respectively.

The following is a summary of activity for the Company’s stock option awards subject to market conditions for the six months ended January 31, 2023:
(In thousands, except per share and term data)SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (In years)Aggregate Intrinsic Value
Outstanding as of July 31, 20222,810 $47.83 8.33$45,590 
Grants of options150 65.70 
Exercises— — 
Forfeitures or expirations— — 
Outstanding as of January 31, 20232,960 $48.73 7.92$52,920 
Exercisable as of January 31, 20231,092 $43.09 7.40$25,682 

The table below sets forth the stock-based compensation recognized by the Company for stock options, restricted stock, and restricted unit awards:
Three Months Ended January 31,Six Months Ended January 31,
(In thousands)2023202220232022
General and administrative$8,789 $8,247 $17,536 $16,718 
Yard operations1,342 1,415 2,787 2,396 
Total stock-based compensation$10,131 $9,662 $20,323 $19,114 
The Company’s restricted stock awards (“RSA”) and restricted stock unit awards (“RSU”) have generally been issued with vesting periods ranging from two years to five years and vest solely on service conditions. Accordingly, the Company recognizes compensation expense for RSA and RSU awards on a straight-line basis over the requisite service period of the award.
The following is a summary of activity for the Company’s RSA and RSU for the six months ended January 31, 2023:
(In thousands, except per share data)Restricted SharesWeighted Average Grant Date Fair Value
Outstanding as of July 31, 2022354 $60.28 
Grants 263 64.01 
Vested(59)57.67 
Forfeitures or expirations(8)53.99 
Outstanding as of January 31, 2023550 $62.44