NOTE 12 – Segments and Other Geographic Reporting

The Company’s U.S. and International regions are considered two separate operating segments and are disclosed as two reportable segments. The segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results, including total revenues, operating income and income before income taxes. The segments continue to share similar business models, services and economic characteristics. Intercompany income (expense) is primarily related to charges for services provided by the U.S. segment.

The following tables present financial information by segment:



	Three Months Ended January 31, 2018									Three Months Ended January 31, 2017
(In thousands)	United States			International			Total			United States			International			Total
Total service revenues and vehicle sales	$	385,135		$	73,971		$	459,106		$	286,911		$	62,621		$	349,532
Yard operations	189,378			27,806			217,184			146,195			22,886			169,081
Cost of vehicle sales	28,794			21,519			50,313			14,473			19,213			33,686
General and administrative	33,953			6,709			40,662			32,651			5,234			37,885
Operating income	133,010			17,937			150,947			93,592			15,288			108,880
Interest (expense) income, net	(5,628		)	67			(5,561		)	(6,063		)	303			(5,760		)
Other (expense) income, net	(490		)	(458		)	(948		)	334			(3,355		)	(3,021		)
Intercompany income (expense)	53,610			(53,610		)	—			2,947			(2,947		)	—
Income before income taxes	180,502			(36,064		)	144,438			90,810			9,289			100,099
Income tax expense (benefit)	37,677			3,460			41,137			31,677			2,356			34,033
Net income	$	142,825		$	(39,524	)	$	103,301		$	59,133		$	6,933		$	66,066

Depreciation and amortization	$	14,054		$	3,817		$	17,871		$	12,667		$	2,548		$	15,215
Capital expenditures, including acquisitions	56,804			12,617			69,421			51,541			2,662			54,203



	Six Months Ended January 31, 2018									Six Months Ended January 31, 2017
(In thousands)	United States			International			Total			United States			International			Total
Total service revenues and vehicle sales	$	736,240		$	142,034		$	878,274		$	571,973		$	123,550		$	695,523
Yard operations	382,211			52,580			434,791			292,548			44,144			336,692
Cost of vehicle sales	47,554			41,056			88,610			28,722			38,051			66,773
General and administrative	67,446			12,538			79,984			68,129			10,225			78,354
Operating income	239,029			35,860			274,889			182,574			31,130			213,704
Interest (expense) income, net	(11,116		)	157			(10,959		)	(11,924		)	542			(11,382		)
Other (expense) income, net	(4,601		)	(763		)	(5,364		)	89			222			311
Intercompany income (expense)	55,914			(55,914		)	—			5,655			(5,655		)	—
Income before income taxes	279,226			(20,660		)	258,566			176,394			26,239			202,633
Income tax expense (benefit)	71,262			6,443			77,705			(36,626		)	5,913			(30,713		)
Net income	$	207,964		$	(27,103	)	$	180,861		$	213,020		$	20,326		$	233,346

Depreciation and amortization	$	27,583		$	6,190		$	33,773		$	25,053		$	4,871		$	29,924
Capital expenditures, including acquisitions	95,709			15,073			110,782			88,062			4,350			92,412



	January 31, 2018						July 31, 2017
(In thousands)	United States		International		Total		United States		International		Total
Total assets	$	1,659,901	$	483,640	$	2,143,541	$	1,514,018	$	468,483	$	1,982,501
Goodwill	257,896		86,603		344,499		259,162		81,081		340,243