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Income Taxes | 12 Months Ended
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Jul. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes U.S. and foreign components of income before provision for income taxes is as follows (in thousands):
| Year Ended July 31,
| 2017 | 2016 | 2015
U.S. | $ | 251,478 |  | $ | 231,756 |  | $ | 142,190 |
Foreign | 96,971 |  | 10,863 |  | 7,138 |
Income before income taxes | $ | 348,449 |  | $ | 242,619 |  | $ | 149,328 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands):
| July 31,
| 2017 | 2016
Deferred income tax liabilities: |  |
Fixed assets | $ | 180,480 |  | $ | 180,267 |
Intangible assets | 65,614 |  | 59,009 |
Other | 31,191 |  | 7,933 |
Total | 277,285 |  | 247,209 |
Deferred income tax assets: |  |
Canyons obligation | 19,276 |  | 18,984 |
Stock-based compensation | 17,862 |  | 17,287 |
Investment in Partnerships | 17,511 |  | 8,108 |
Deferred compensation and other accrued benefits | 15,215 |  | 17,426 |
Contingent Consideration | 10,472 |  | 4,244 |
Unfavorable lease obligation, net | 9,542 |  | 10,904 |
Net operating loss carryforwards and other tax credits | 12,783 |  | 8,268 |
Other, net | 19,468 |  | 35,635 |
Total | 122,129 |  | 120,856 |
Valuation allowance for deferred income taxes | (6,955 | ) | (3,641 | )
Deferred income tax assets, net of valuation allowance | 115,174 |  | 117,215 |
Net deferred income tax liability | $ | 162,111 |  | $ | 129,994 |
The components of deferred income taxes recognized in the Consolidated Balance Sheets are as follows (in thousands):
| July 31,
| 2017 | 2016
Non-current deferred income tax asset | $ | 9,331 |  | $ | — |
Net non-current deferred income tax liability | 171,442 |  | 129,994 |
Net deferred income tax liability | $ | 162,111 |  | $ | 129,994 |
Significant components of the provision for income taxes are as follows (in thousands):
| Year Ended July 31,
| 2017 | 2016 | 2015
Current: |  |  |
Federal | $ | 55,887 |  | $ | 70,553 |  | $ | 12,668 |
State | 8,096 |  | 10,555 |  | 5,501 |
Foreign | 16,311 |  | 4,431 |  | 3,581 |
Total current | 80,294 |  | 85,539 |  | 21,750 |
Deferred: |  |  |
Federal | 29,065 |  | 7,603 |  | 11,534 |
State | 3,601 |  | 1,051 |  | 1,623 |
Foreign | 3,771 |  | (1,028 | ) | (189 | )
Total deferred | 36,437 |  | 7,626 |  | 12,968 |
Provision for income taxes | $ | 116,731 |  | $ | 93,165 |  | $ | 34,718 |
A reconciliation of the income tax provision from continuing operations and the amount computed by applying the United States federal statutory income tax rate to income before income taxes is as follows:
| Year Ended July 31,
| 2017 | 2016 | 2015
At U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | %
State income tax, net of federal benefit | 2.2 | % | 3.1 | % | 3.2 | %
IRS settlement on NOL utilization | — | % | — | % | (16.0 | )%
Change in valuation allowance | 0.9 | % | 0.1 | % | 0.5 | %
Noncontrolling interests | (2.1 | )% | — | % | — | %
Foreign rate differential | (1.8 | )% | (0.2 | )% | — | %
Other | (0.7 | )% | 0.4 | % | 0.5 | %
Effective tax rate | 33.5 | % | 38.4 | % | 23.2 | %
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions, excluding associated deferred tax benefits and accrued interest and penalties, if applicable, is as follows (in thousands):
| Year Ended July 31,
| 2017 | 2016 | 2015
Balance, beginning of year | $ | 57,032 |  | $ | 38,572 |  | $ | 46,973 |
Additions based on tax positions related to the current year | — |  | — |  | — |
Additions for tax positions of prior years | 19,079 |  | 18,460 |  | 17,443 |
Reductions for tax positions of prior years | — |  | — |  | (21,574 | )
Lapse of statute of limitations | — |  | — |  | — |
Settlements | — |  | — |  | (4,270 | )
Balance, end of year | $ | 76,111 |  | $ | 57,032 |  | $ | 38,572 |
As of July 31, 2017, the Company’s unrecognized tax benefits associated with uncertain tax positions relate to the treatment of the Talisker lease payments as payments of debt obligations and that the tax basis in Canyons goodwill is deductible, and are included within “other long-term liabilities” in the accompanying Consolidated Balance Sheets. The Company does not anticipate a significant change to its unrecognized tax benefits recorded as of July 31, 2017 during the year ending July 31, 2018. As of July 31, 2017 and 2016, accrued interest and penalties, net of tax, was $3.6 million and $1.6 million, respectively. For the years ended July 31, 2017, 2016 and 2015, the Company recognized as income tax expense (benefit) $2.0 million, $1.1 million and $(1.4 million) of interest expense (income) and penalties, net of tax, respectively. The Company had federal NOL carryforwards that expired in the year ended July 31, 2008 and were limited in deductibility each year under Section 382 of the Internal Revenue Code. The Company had only been able to use these NOL carryforwards to the extent of approximately $8.0 million per year through December 31, 2007. However, during the year ended July 31, 2005, the Company amended previously filed tax returns (for tax years 1997-2002) in an effort to remove the restrictions under Section 382 of the Internal Revenue Code on approximately $73.8 million of NOL carryforwards to reduce future taxable income. As a result, the Company requested a refund related to the amended returns in the amount of $6.2 million and reduced its federal tax liability in the amount of $19.6 million in subsequent returns. These NOL carryforwards relate to fresh start accounting from the Company’s reorganization in 1992. During the year ended July 31, 2006, the Internal Revenue Service (“IRS”) completed its examination of the Company’s filing position in these amended returns and disallowed the Company’s request for refund and its position to remove the restrictions under Section 382 of the Internal Revenue Code. The Company appealed the examiner’s disallowance of these NOL carryforwards to the Office of Appeals. In December 2008, the Office of Appeals denied the Company’s appeal, as well as a request for mediation. The Company disagreed with the IRS interpretation disallowing the utilization of the NOL’s and in August 2009, the Company filed a complaint in the United States District Court for the District of Colorado against the United States of America seeking a refund of approximately $6.2 million in federal income taxes paid, plus interest. On July 1, 2011, the District Court granted the Company summary judgment, concluding that the IRS’s decision disallowing the utilization of the NOLs was inappropriate. The computations themselves, however, remained in dispute, and the District Court’s ruling was subject to appeal by the IRS. Subsequently, the District Court proceedings were continued pending settlement discussions between the parties. The Company also filed two related tax proceedings in the United States Tax Court regarding calculation of NOL carryover deductions for tax years 2006, 2007 and 2008. The two proceedings involved substantially the same issues as the litigation in the District Court for tax years 2000 and 2001 in which the Company disagreed with the IRS as to the utilization of NOLs. Like the District Court proceedings, the Tax Court proceedings were continued pending settlement discussions between the parties. On January 29, 2015, the parties completed the execution of a comprehensive settlement agreement resolving all issues and computations in the above mentioned pending proceedings, which allowed the Company to utilize a significant portion of the NOLs. As a result, the Company reversed $27.7 million of other long-term liabilities related to uncertain tax benefits, and recorded income tax benefits of $23.8 million for the utilization of the NOLs, including the reversal of accrued interest and penalties, within its Consolidated Statements of Operations for the year ended July 31, 2015. The Company’s major tax jurisdictions in which it files income tax returns is the U.S. federal jurisdiction, various state jurisdictions, Australia, and Canada. As discussed above, on January 29, 2015, all issues and computations were resolved upon the completion of a comprehensive settlement agreement with the IRS in regards to the federal NOL carryforward dispute. The Company is no longer subject to U.S. federal examinations for tax years prior to 2014. With few exceptions, the Company is no longer subject to examination by various state jurisdictions for tax years prior to 2012. The Company has NOL carryforwards totaling $34.5 million which are primarily comprised of state net operating loss (“NOL”) carryforwards that expire by the year ending July 31, 2031. As of July 31, 2017, the Company recorded a valuation allowance on $29.5 million of these NOL carryforwards as the Company has determined that it is more likely than not that these NOL carryforwards will not be realized. Additionally, the Company has foreign tax credit carryforwards of $9.9 million which expire by the year ending July 31, 2027. As of July 31, 2017, the Company has recorded a valuation allowance of $4.2 million on foreign tax credit carryforwards as the Company has determined that it is more likely than not that these foreign tax credit carryforwards will not be realized. The Company intends to indefinitely reinvest undistributed earnings, if any, in its Canadian foreign subsidiary. As of July 31, 2017, there are no unremitted earnings in our Canadian foreign subsidiary, and therefore no additional tax due to the extent of eventual remittance.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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