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Income Taxes (Tables)

12 Months Ended

Jul. 31, 2023

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)						2023						2022						2021
U.S.						$	1,437,126					$	1,241,177					$	1,022,134
International						117,202						99,777						99,712
Total income before taxes						$	1,554,328					$	1,340,954					$	1,121,846

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)						2023						2022						2021
Federal:
Current						$	243,253					$	179,840					$	135,216
Deferred						(4,642)						14,115						(4,259)
						238,611						193,955						130,957
State:
Current						47,507						33,078						34,302
Deferred						813						1,689						(3,489)
						48,320						34,767						30,813
International:
Current						26,150						23,247						23,575
Deferred						3,506						(1,145)						6
						29,656						22,102						23,581
Income tax expense						$	316,587					$	250,824					$	185,351

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)						2023						2022						2021
Federal statutory rate						21.0		%				21.0		%				21.0		%
State income taxes, net of federal income tax benefit						2.0		%				1.3		%				1.5		%
International rate differential						(0.3)		%				(0.5)		%				(0.5)		%
Compensation and fringe benefits (1)						(1.0)		%				(0.6)		%				(1.9)		%
FDII and/or GILTI						(2.8)		%				(2.8)		%				(3.1)		%
Federal return to provision adjustment						(0.1)		%				0.6		%				(1.8)		%
Federal amended return adjustment						—		%				(1.3)		%				—		%
Other differences						1.6		%				1.0		%				1.3		%
Effective tax rate						20.4		%				18.7		%				16.5		%

(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)						2023						2022
Deferred tax assets:
Allowance for credit loss						$	1,505					$	1,210
Accrued compensation and benefits						17,008						16,965
Operating lease liabilities						22,891						24,379
Accrued other						2,212						5,053
Deferred revenue						5,349						4,560
Losses carried forward						41,589						29,936
Federal tax benefit						14,798						14,542
Total gross deferred tax assets						105,352						96,645
Less: Valuation allowance						(40,346)						(29,171)
Net deferred tax assets						65,006						67,474
Deferred tax liabilities:
Vehicle pooling costs						(25,808)						(23,655)
Property and equipment						(70,086)						(72,975)
Operating lease right-of-use assets						(23,169)						(24,369)
Other prepaids						(2,548)						(728)
Intangibles and goodwill						(33,150)						(25,431)
Total gross deferred tax liabilities						(154,761)						(147,158)
Net deferred tax liabilities						$	(89,755)					$	(79,684)

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)						2023						2022						2021
Beginning balance						$	55,754					$	47,061					$	36,123
Increases related to current year tax positions						10,006						14,809						13,122
Prior year tax positions:
Increases recognized during the period						1,388						1,393						8,782
Decreases recognized during the period						(7,623)						(2,163)						(5,749)
Cash settlements during the period						(403)						(3,524)						(3,261)
Lapse of statute of limitations						(1,677)						(1,822)						(1,956)
Ending balance						$	57,445					$	55,754					$	47,061

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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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.

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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.

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