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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jul. 31, 2022
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) |  | 2022 |  | 2021 |  | 2020
U.S. |  | $ | 1,241,177 |  |  | $ | 1,022,134 |  |  | $ | 740,171 |
International |  | 99,777 |  |  | 99,712 |  |  | 60,668 |
Total income before taxes |  | $ | 1,340,954 |  |  | $ | 1,121,846 |  |  | $ | 800,839 |
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) |  | 2022 |  | 2021 |  | 2020
Federal: |  |  |  |  |  |
Current |  | $ | 179,840 |  |  | $ | 135,216 |  |  | $ | 53,942 |
Deferred |  | 14,115 |  |  | (4,259) |  |  | 21,019 |
|  | 193,955 |  |  | 130,957 |  |  | 74,961 |
State: |  |  |  |  |  |
Current |  | 33,078 |  |  | 34,302 |  |  | 12,095 |
Deferred |  | 1,689 |  |  | (3,489) |  |  | 565 |
|  | 34,767 |  |  | 30,813 |  |  | 12,660 |
International: |  |  |  |  |  |
Current |  | 23,247 |  |  | 23,575 |  |  | 13,333 |
Deferred |  | (1,145) |  |  | 6 |  |  | (22) |
|  | 22,102 |  |  | 23,581 |  |  | 13,311 |
Income tax expense |  | $ | 250,824 |  |  | $ | 185,351 |  |  | $ | 100,932 |
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) |  | 2022 |  | 2021 |  | 2020
Federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit |  | 1.3 | % |  | 1.5 | % |  | 1.6 | %
International rate differential |  | (0.5) | % |  | (0.5) | % |  | 0.1 | %
Compensation and fringe benefits (1) |  | (0.6) | % |  | (1.9) | % |  | (11.2) | %
FDII and/or GILTI |  | (2.8) | % |  | (3.1) | % |  | (0.3) | %
Federal return to provision adjustment |  | 0.6 | % |  | (1.8) | % |  | — | %
Federal amended return adjustment |  | (1.3) | % |  | — | % |  | — | %
Other differences |  | 1.0 | % |  | 1.3 | % |  | 1.4 | %
Effective tax rate |  | 18.7 | % |  | 16.5 | % |  | 12.6 | %
(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) |  | 2022 |  | 2021
Deferred tax assets: |  |  |  |
Allowance for credit loss |  | $ | 1,210 |  |  | $ | 942 |
Accrued compensation and benefits |  | 16,965 |  |  | 15,541 |
State taxes |  | — |  |  | — |
Operating lease liabilities |  | 24,379 |  |  | 25,176 |
Accrued other |  | 5,053 |  |  | 4,551 |
Deferred revenue |  | 4,560 |  |  | 4,239 |
Losses carried forward |  | 29,936 |  |  | 24,384 |
Federal tax benefit |  | 14,542 |  |  | 12,242 |
Total gross deferred tax assets |  | 96,645 |  |  | 87,075 |
Less: Valuation allowance |  | (29,171) |  |  | (24,987) |
Net deferred tax assets |  | 67,474 |  |  | 62,088 |
Deferred tax liabilities: |  |  |  |
Vehicle pooling costs |  | (23,655) |  |  | (20,241) |
Property and equipment |  | (72,975) |  |  | (55,047) |
Operating lease right-of-use assets |  | (24,369) |  |  | (25,253) |
Other prepaids |  | (728) |  |  | (461) |
Intangibles and goodwill |  | (25,431) |  |  | (24,602) |
Total gross deferred tax liabilities |  | (147,158) |  |  | (125,604) |
Net deferred tax liabilities |  | $ | (79,684) |  |  | $ | (63,516) |
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) |  | 2022 |  | 2021 |  | 2020
Beginning balance |  | $ | 47,061 |  |  | $ | 36,123 |  |  | $ | 27,537 |
Increases related to current year tax positions |  | 14,809 |  |  | 13,122 |  |  | 8,196 |
Prior year tax positions: |  |  |  |  |  |
Increases recognized during the period |  | 1,393 |  |  | 8,782 |  |  | 6,390 |
Decreases recognized during the period |  | (2,163) |  |  | (5,749) |  |  | (1,603) |
Cash settlements during the period |  | (3,524) |  |  | (3,261) |  |  | (1,182) |
Lapse of statute of limitations |  | (1,822) |  |  | (1,956) |  |  | (3,215) |
Ending balance |  | $ | 55,754 |  |  | $ | 47,061 |  |  | $ | 36,123 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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