Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 31, 2020 | Feb. 26, 2020 | |
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity File Number | 000-23255 | |
Entity Tax Identification Number | 94-2867490 | |
Entity Address, Address Line One | 14185 Dallas Parkway | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75254 | |
Trading Symbol | CPRT | |
Security Exchange Name | NASDAQ | |
City Area Code | 972 | |
Local Phone Number | 391-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2020 | |
Entity Registrant Name | COPART, INC. | |
Entity Central Index Key | 0000900075 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Smaller reporting company | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 233,705,480 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jan. 31, 2020 | Jul. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 93,511 | $ 186,319 |
Accounts receivable, net | 445,963 | 367,265 |
Vehicle pooling costs | 90,595 | 76,548 |
Inventories | 18,515 | 20,941 |
Income taxes receivable | 68,415 | 19,526 |
Prepaid expenses and other assets | 14,964 | 16,568 |
Total current assets | 731,963 | 687,167 |
Property and equipment, net | 1,789,326 | 1,427,726 |
Operating lease right-of-use assets | 104,360 | 0 |
Intangibles, net | 50,291 | 55,156 |
Goodwill | 338,262 | 333,321 |
Deferred income taxes | 348 | 411 |
Other assets | 34,055 | 43,836 |
Total assets | 3,048,605 | 2,547,617 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 296,977 | 270,918 |
Deferred revenue | 7,603 | 6,466 |
Income taxes payable | 728 | 3,482 |
Current portion of operating lease liabilities | 23,314 | 0 |
Current portion of revolving loan facility and finance lease liabilities | 14,215 | 1,138 |
Total current liabilities | 342,837 | 282,004 |
Deferred income taxes | 55,499 | 48,683 |
Income taxes payable | 43,650 | 35,116 |
Operating lease liabilities, net of current portion | 81,906 | 0 |
Long-term debt, revolving loan facility and finance lease liabilities, net of discount | 399,846 | 400,091 |
Other liabilities | 138 | 3,342 |
Total liabilities | 923,876 | 769,236 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock: $0.0001 par value - 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock: $0.0001 par value - 400,000,000 shares authorized; 233,636,685 and 229,790,268 shares issued and outstanding, respectively. | 23 | 23 |
Additional paid-in capital | 617,714 | 572,559 |
Accumulated other comprehensive loss | (119,870) | (132,529) |
Retained earnings | 1,626,862 | 1,338,328 |
Total stockholders’ equity | 2,124,729 | 1,778,381 |
Total liabilities and stockholders’ equity | $ 3,048,605 | $ 2,547,617 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jan. 31, 2020 | Jul. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 233,636,685 | 229,790,268 |
Common stock, shares outstanding | 233,636,685 | 229,790,268 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Service revenues and vehicle sales: | $ 575,140 | $ 484,898 | $ 1,129,564 | $ 946,266 |
Operating expenses: | ||||
Yard operations | 257,351 | 215,460 | 498,142 | 423,154 |
Cost of vehicle sales | 57,900 | 61,212 | 116,664 | 118,968 |
General and administrative | 49,997 | 43,487 | 99,475 | 87,965 |
Total operating expenses | 365,248 | 320,159 | 714,281 | 630,087 |
Other (expense) income: | ||||
Interest expense | (4,914) | (5,233) | (9,525) | (9,884) |
Interest income | 450 | 678 | 1,035 | 1,638 |
Other (expense) income, net | (354) | 4,782 | 363 | 5,819 |
Total other (expense) income | (4,818) | 227 | (8,127) | (2,427) |
Operating income | 209,892 | 164,739 | 415,283 | 316,179 |
Income before income taxes | 205,074 | 164,966 | 407,156 | 313,752 |
Income tax expense | (36,367) | (33,593) | (20,269) | (68,296) |
Net income | $ 168,707 | $ 131,373 | $ 386,887 | $ 245,456 |
Basic net income per common share | $ 0.73 | $ 0.57 | $ 1.67 | $ 1.06 |
Weighted average common shares outstanding | 232,671 | 230,798 | 231,920 | 232,343 |
Diluted net income per common share | $ 0.71 | $ 0.55 | $ 1.62 | $ 1.01 |
Diluted weighted average common shares outstanding | 238,470 | 240,660 | 238,566 | 242,743 |
Service revenues | ||||
Service revenues and vehicle sales: | $ 510,034 | $ 416,807 | $ 997,890 | $ 811,613 |
Vehicle sales | ||||
Service revenues and vehicle sales: | $ 65,106 | $ 68,091 | $ 131,674 | $ 134,653 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 168,707 | $ 131,373 | $ 386,887 | $ 245,456 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | (580) | 8,423 | 12,659 | 705 |
Comprehensive income, net of tax: | ||||
Comprehensive income | $ 168,127 | $ 139,796 | $ 399,546 | $ 246,161 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balances (in shares) | 233,898,841 | ||||
Stockholders' Equity Attributable to Parent | $ 1,581,099 | $ 23 | $ 526,858 | $ (107,928) | $ 1,162,146 |
Net Income | 114,083 | 114,083 | |||
Currency Translation Adjustment | (7,718) | (7,718) | |||
Options Exercised | 109,321 | ||||
Exercise of stock options, net of repurchased shares | 1,227 | 1,229 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (2) | ||||
Stock-based compensation | 6,021 | 6,021 | |||
Balances (in shares) | 234,008,162 | ||||
Stockholders' Equity Attributable to Parent | 1,671,758 | $ 23 | 534,108 | (115,646) | 1,253,273 |
Net Income | 131,373 | 131,373 | |||
Currency Translation Adjustment | 8,423 | 8,423 | |||
Options Exercised | 241,896 | ||||
Exercise of stock options, net of repurchased shares | 3,966 | 3,991 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (25) | ||||
Stock-based compensation | 5,929 | 5,929 | |||
Shares issued for Employee Stock Purchase Plan (in shares) | 86,208 | ||||
Shares issued for Employee Stock Purchase Plan | 3,501 | 3,501 | |||
Stock Repurchased During Period, Shares | (7,635,596) | ||||
Stock Repurchased During Period, Value | (364,997) | (17,427) | (347,570) | ||
Balances (in shares) | 226,700,670 | ||||
Stockholders' Equity Attributable to Parent | 1,459,953 | $ 23 | 530,102 | (107,223) | 1,037,051 |
Balances (in shares) | 229,790,268 | ||||
Stockholders' Equity Attributable to Parent | 1,778,381 | $ 23 | 572,559 | (132,529) | 1,338,328 |
Net Income | 218,180 | 218,180 | |||
Currency Translation Adjustment | 13,239 | 13,239 | |||
Options Exercised | 2,643,310 | ||||
Exercise of stock options, net of repurchased shares | (88,734) | 9,551 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (98,285) | ||||
Stock-based compensation | $ 5,533 | 5,533 | |||
Options Exercised | 5,852,000 | ||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 101,300 | ||||
Balances (in shares) | 232,433,578 | ||||
Stockholders' Equity Attributable to Parent | 1,926,599 | $ 23 | 587,643 | (119,290) | 1,458,223 |
Net Income | 168,707 | 168,707 | |||
Currency Translation Adjustment | (580) | (580) | |||
Options Exercised | 1,141,040 | ||||
Exercise of stock options, net of repurchased shares | 19,907 | 19,975 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (68) | ||||
Stock-based compensation | 6,141 | 6,141 | |||
Shares issued for Employee Stock Purchase Plan (in shares) | 62,067 | ||||
Shares issued for Employee Stock Purchase Plan | 3,955 | 3,955 | |||
Balances (in shares) | 233,636,685 | ||||
Stockholders' Equity Attributable to Parent | $ 2,124,729 | $ 23 | $ 617,714 | $ (119,870) | $ 1,626,862 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 386,887 | $ 245,456 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, including debt cost | 48,097 | 42,487 |
Allowance for doubtful accounts | 1,301 | 96 |
Equity in losses (earnings) of unconsolidated affiliates | 3,124 | (514) |
Stock-based compensation | 11,674 | 11,950 |
Gain on sale of property and equipment | (1,315) | (3,890) |
Deferred income taxes | 6,719 | 6,632 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (78,510) | (86,125) |
Vehicle pooling costs | (13,921) | (20,218) |
Inventories | 2,765 | (11,640) |
Prepaid expenses and other current and non-current assets | 7,184 | (725) |
Operating Lease, Payments, Use | (331) | 0 |
Accounts payable and accrued liabilities | 24,862 | 7,338 |
Deferred revenue | 1,021 | 2,843 |
Income taxes receivable | (48,722) | 15,286 |
Income taxes payable | 5,794 | 6,890 |
Other liabilities | (371) | (662) |
Net Cash Provided by (Used in) Operating Activities | 356,920 | 215,204 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (400,352) | (136,727) |
Proceeds from sale of property and equipment | 1,639 | 17,488 |
Net Cash Provided by (Used in) Investing Activities | (398,713) | (119,239) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 32,594 | 5,220 |
Proceeds from the issuance of Employee Stock Purchase Plan shares | 3,955 | 3,501 |
Repurchases of common stock | 0 | (364,997) |
Payments for employee stock-based tax withholdings | 101,422 | 27 |
Proceeds from (Repayments of) Lines of Credit | 13,600 | 93,300 |
Net Cash Provided by (Used in) Financing Activities | (51,273) | (263,003) |
Effect of foreign currency translation | 258 | 692 |
Net decrease in cash and cash equivalents | (92,808) | (166,346) |
Cash and cash equivalents at beginning of period | 186,319 | 274,520 |
Cash and cash equivalents at end of period | 93,511 | 108,174 |
Supplemental disclosure of cash flow information: | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 9,007 | 9,018 |
Income taxes paid, net of refunds | $ 57,591 | $ 39,327 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1 – Summary of Significant Accounting Policies Basis of Presentation and Description of Business Copart, Inc. (“the Company”) provides vehicle sellers with a full range of services to process and sell vehicles over the internet through the Company’s Virtual Bidding Third Generation (“VB3”) internet auction-style sales technology. Sellers are primarily insurance companies but also include banks, finance companies, charities, fleet operators, dealers and vehicles sourced directly from individual owners. The Company sells principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters; however, at certain locations, the Company sells directly to the general public. The majority of vehicles sold on behalf of insurance companies are either damaged vehicles deemed a total loss or not economically repairable by the insurance companies or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company offers vehicle sellers a full range of services that expedite each stage of the vehicle sales process, minimize administrative and processing costs and maximize the ultimate sales price through the online auction process. In the United States (“U.S.”), Canada, Brazil, the Republic of Ireland, Finland, the United Arab Emirates (“U.A.E.”), Oman, and Bahrain, the Company sells vehicles primarily as an agent and derives revenue primarily from auction and auction related sales transaction fees charged for vehicle remarketing services as well as fees for services subsequent to the auction, such as delivery and storage. In the United Kingdom (“U.K.”), Germany, and Spain, the Company operates both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for its own account. In Germany and Spain, the Company also derives revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured. Principles of Consolidation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments of a normal recurring nature considered necessary for fair presentation of its financial position as of January 31, 2020 and July 31, 2019 , its consolidated statements of income , comprehensive income and stockholders’ equity for the three and six months ended January 31, 2020 and 2019 , and its cash flows for the six months ended January 31, 2020 and 2019 . Interim results for the three and six months ended January 31, 2020 are not necessarily indicative of the results that may be expected for any future period, or for the entire year ending July 31, 2020 . These consolidated financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . Certain prior year amounts have been reclassified to conform to current year presentation. The consolidated financial statements of the Company include the accounts of the parent company and its wholly-owned subsidiaries. Significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include, but are not limited to, vehicle pooling costs; income taxes; stock-based compensation; purchase price allocations; and contingencies . Actual results could differ from these estimates. Revenue Recognition The Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. Service revenue and vehicle sales revenue are recognized at the date the vehicles are sold at auction, excluding annual registration fees. Costs to prepare the vehicles for auction, including inbound transportation costs and titling fees, are deferred and recognized at the time of revenue recognition at auction. There were no contract liabilities on the consolidated balance sheets at January 31, 2020 and July 31, 2019 . The Company’s disaggregation between service revenues and vehicle sales at the segment level reflects how the nature, timing, amount and uncertainty of its revenues and cash flows are impacted by economic factors. The Company reports sales taxes on relevant transactions on a net basis in the Company’s consolidated results of operations, and therefore does not include sales taxes in revenues or costs. Service revenues The Company’s service revenue consists of auction and auction related sales transaction fees charged for vehicle remarketing services. Within this revenue category, the Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. These auction and auction related services may include a combination of vehicle purchasing fees, vehicle listing fees, and vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price driven fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle; transportation fees for the cost of transporting the vehicle to or from the Company’s facility; title processing and preparation fees; vehicle storage fees; bidding fees; and vehicle loading fees. These services are not distinct within the context of the contract. Accordingly, revenue for these services is recognized when the single performance obligation is satisfied at the completion of the auction process. The Company does not take ownership of these consigned vehicles, which are stored at the Company’s facilities located throughout the U.S. and at its international locations. These fees are recognized as net revenue (not gross vehicle selling price) at the time of auction in the amount of such fees charged. The Company has a separate performance obligation related to providing access to its online auction platform as the Company charges members an annual registration fee for the right to participate in its online auctions and access the Company’s bidding platform. This fee is recognized ratably over the term of the arrangement, generally one year, as each day of access to the online auction platform represents the best depiction of the transfer of the service. No provision for returns has been established, as all sales are final with no right of return or warranty, although the Company provides for bad debt expense in the case of non-performance by its buyers or sellers. Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Service revenues United States $ 447,345 $ 362,023 $ 878,148 $ 705,596 International 62,689 54,784 119,742 106,017 Total service revenues $ 510,034 $ 416,807 $ 997,890 $ 811,613 Vehicle sales Certain vehicles are purchased and remarketed on the Company’s own behalf. The Company has a single performance obligation related to the sale of these vehicles, which is the completion of the online auction process. Vehicle sales revenue is recognized on the auction date. As the Company acts as a principal in vehicle sales transactions, the gross sales price at auction is recorded as revenue. Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Vehicle sales United States $ 35,392 $ 28,049 $ 68,753 $ 55,685 International 29,714 40,042 62,921 78,968 Total vehicle sales $ 65,106 $ 68,091 $ 131,674 $ 134,653 Contract assets The Company capitalizes certain contract assets related to obtaining a contract, where the amortization period for the related asset is greater than one year. These assets are amortized over the expected life of the customer relationship. Contract assets are classified as current or long-term other assets, based on the timing of when the Company expects to recognize the related revenues and are amortized as an offset to the associated revenues on a straight-line basis. The Company assesses these costs for impairment at least quarterly and as “triggering” events occur that indicate it is more likely than not that an impairment exists. The contract asset costs where the amortization period for the related asset is one year or less are expensed as incurred and recorded within general and administrative expenses in the accompanying statements of income. The change in the carrying amount of contract assets was as follows (in thousands): Balance as of July 31, 2019 $ 10,574 Capitalized contract assets during the period 100 Costs amortized during the period (1,748 ) Effect of foreign currency exchange rates 356 Balance as of January 31, 2020 $ 9,282 Vehicle Pooling Costs The Company defers costs that relate directly to the fulfillment of its contracts associated with vehicles consigned to and received by the Company, but not sold as of the end of the period. The Company quantifies the deferred costs using a calculation that includes the number of vehicles at its facilities at the beginning and end of the period, the number of vehicles sold during the period and an allocation of certain yard operation costs of the period. The primary expenses allocated and deferred are inbound transportation costs, titling fees, certain facility costs, labor, and vehicle processing. If the allocation factors change, then yard operation expenses could increase or decrease correspondingly in the future. These costs are expensed into yard operations expenses as vehicles are sold in subsequent periods on an average cost basis. Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiaries into the U.S. dollar reporting currency. The Canadian dollar, British pound, Brazilian real, European Union euro, U.A.E. dirham, Omani rial, Bahraini dinar, and Indian rupee are the functional currencies of the Company’s foreign subsidiaries as they are the primary currencies within the economic environment in which each subsidiary operates. The original equity investment in the respective subsidiaries is translated at historical rates. Assets and liabilities of the respective subsidiary’s operations are translated into U.S. dollars at period-end exchange rates, and revenues and expenses are translated into U.S. dollars at average exchange rates in effect during each reporting period. Adjustments resulting from the translation of each subsidiary’s financial statements are reported in other comprehensive income. The cumulative effects of foreign currency exchange rate fluctuations were as follows (in thousands): Cumulative loss on foreign currency translation as of July 31, 2018 $ (107,928 ) Loss on foreign currency translation (24,601 ) Cumulative loss on foreign currency translation as of July 31, 2019 $ (132,529 ) Gain on foreign currency translation 12,659 Cumulative loss on foreign currency translation as of January 31, 2020 $ (119,870 ) Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in U.S. GAAP. In accordance with ASC 820, Fair Value Measurements and Disclosures , as amended by Accounting Standards Update (“ASU”) 2011-04, the Company considers fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants under current market conditions. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level I Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level II Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level III Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate. The amounts recorded for financial instruments in the Company’s consolidated financial statements, which included cash, accounts receivable, accounts payable, accrued liabilities and Revolving Loan Facility approximated their fair values as of January 31, 2020 and July 31, 2019 , due to the short-term nature of those instruments, and are classified within Level II of the fair value hierarchy. Cash equivalents are classified within Level II of the fair value hierarchy because they are valued using quoted market prices of the underlying investments. See Note 6 – Long-Term Debt , and Note 7 – Fair Value Measures . Income Taxes and Deferred Tax Assets Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, their respective tax basis, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company considers the need to maintain a valuation allowance on deferred tax assets based on an assessment of whether it is more likely than not that the Company would realize those deferred tax assets based on future reversals of existing taxable temporary differences and the ability to generate sufficient taxable income within the carryforward period available under the applicable tax law. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Excess tax benefits and deficiencies related to exercises of stock options are recognized as expense or benefit in the consolidated statements of income as discrete items in the reporting period in which they occur. The Company recognizes and measures uncertain tax positions in accordance with ASC 740, Income Taxes , pursuant to which the Company only recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. ASC 740 further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the quarter in which such change occurs. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The Company files annual income tax returns in multiple taxing jurisdictions. A number of years may elapse before an uncertain tax position is audited by the relevant tax authorities and finally resolved. The Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, where appropriate in light of changing facts and circumstances. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents include cash held in checking, domestic certificates of deposit, and money market accounts. The Company periodically invests its excess cash in money market funds and U.S. Treasury Bills. The Company’s cash and cash equivalents are placed with high credit quality financial institutions. 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 and operating income. Capitalized Software Costs The Company capitalizes system development costs and website development costs related to the enterprise computing services during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, generally three to seven years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that impact the recoverability of these assets. Total gross capitalized software as of January 31, 2020 and July 31, 2019 was $46.3 million and $39.4 million , respectively. Accumulated amortization expense related to software as of January 31, 2020 and July 31, 2019 totaled $28.5 million and $23.6 million , respectively. Acquisitions The Company recognizes and measures identifiable assets acquired and liabilities assumed in acquired entities in accordance with ASC 805, Business Combinations . The allocation of the purchase consideration for acquisitions can require extensive use of accounting estimates and judgments to allocate the purchase consideration to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill. Critical estimates in valuing certain identifiable assets include but are not limited to expected long-term revenues; future expected operating expenses; cost of capital; appropriate attrition; and discount rates. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jan. 31, 2020 | |
Accounts Receivable [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 2 — Accounts Receivable, Net Accounts receivable, net consisted of: (In thousands) January 31, 2020 July 31, 2019 Advance charges receivable $ 349,517 $ 280,835 Trade accounts receivable 98,529 89,274 Other receivables 4,233 2,098 452,279 372,207 Less: Allowance for doubtful accounts (6,316 ) (4,942 ) Accounts receivable, net $ 445,963 $ 367,265 Advance charges receivable represents amounts paid to third parties on behalf of insurance companies for which the Company will be reimbursed when the vehicle is sold. As advance charges are recovered within one year, the Company has not adjusted the amount of consideration received from the customer for a significant financing component. Trade accounts receivable includes fees and gross auction proceeds to be collected from insurance companies and buyers. |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net | 6 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 3 — Property and Equipment, Net Property and equipment, net consisted of the following: (In thousands) January 31, 2020 July 31, 2019 Land $ 1,131,553 $ 939,817 Buildings and improvements 864,245 686,615 Transportation and other equipment 260,237 236,282 Office furniture and equipment 66,605 63,200 Software 46,342 39,434 2,368,982 1,965,348 Less: Accumulated depreciation and amortization (579,656 ) (537,622 ) Property and equipment, net $ 1,789,326 $ 1,427,726 Depreciation expense on property and equipment was $22.0 million and $17.8 million for the three months ended January 31, 2020 and 2019 , respectively, and $42.5 million and $36.7 million for the six months ended January 31, 2020 and 2019 , respectively. |
Leases
Leases | 6 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | NOTE 4 – Leases The Company has both lessee and lessor arrangements. The Company determines whether a contract is or contains a lease at the inception of the contract or at any subsequent modification. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment. Depending on the terms, leases are classified as either operating or finance leases if the Company is the lessee, or as operating, sales-type, or direct financing leases if the Company is the lessor. Certain of the Company’s lessee and lessor leases have renewal options to extend the leases for additional periods at the Company’s discretion. Leases - Lessee The Company leases certain facilities and certain equipment under non-cancelable capital and operating leases, which are recorded as right-of-use assets and lease liabilities. Certain leases provide the Company with either a right of first refusal to acquire or an option to purchase a facility at fair value. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the right-of-use asset and the lease liabilities. The effects of these escalation clauses or concessions have been reflected in lease expense on a straight-line basis over the expected lease term and any variable lease payments subsequent to establishing the lease liability are expensed as incurred. The lease term commences on the date when the Company has the right to control the use of the leased property, which is typically before lease payments are due under the terms of the lease. Certain of the Company’s leases have renewal periods up to 40 years, exercisable at the Company’s option, and generally require the Company to pay property taxes, insurance and maintenance costs, in addition to the lease payments. At lease inception, the Company includes all renewals or option periods that are reasonably certain to exercise when determining the expected lease term, as failure to renew the lease would impose an economic penalty. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the expected lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date, as rates are not implicitly stated in the Company’s leases. Components of lease expense for the six months ended January 31, 2020 were as follows: Six Months Ended January 31, (In thousands) 2020 Operating lease expense $ 15,682 Finance lease expense: Amortization of right-of-use assets 312 Interest on finance lease liabilities 14 Short-term lease expense 3,292 Variable lease expense 819 Total lease expense $ 20,119 The components of right-of-use assets and lease liabilities on the consolidated balance sheet are as follows (in thousands): Lease Asset and Liabilities Balance Sheet Classification (In thousands) January 31, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 104,360 Finance lease right-of-use assets Property and equipment, net 1,406 Total lease assets, net $ 105,766 Operating lease liabilities - current Current portion of operating lease liabilities $ 23,314 Finance lease liabilities - current Current portion of revolving loan facility and finance lease liabilities 615 Operating lease liabilities - non-current Operating lease liabilities, net of current portion 81,906 Finance lease liabilities - non-current Long-term debt, revolving loan facility and finance lease liabilities, net of discount 800 Total lease liabilities $ 106,635 The weighted-average remaining lease terms and discount rates as of January 31, 2020 are as follows: (in thousands) Weighted-Average Remaining Lease Term (in years) Weighted-Average Discount Rate (1) Operating leases 9.30 2.99 % Finance leases 2.30 1.73 % (1) The Company cannot determine the interest rate implicit in the Company’s leases. Therefore, the discount rate represents the Company’s incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to the Company’s corporate credit rating for a secured or collateralized instrument. Supplemental cash flow information related to leases as of January 31, 2020 are as follows: (in thousands) Six Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 14,797 Operating cash flows related to finance leases 14 Financing cash flows related to finance leases 312 Right-of-use assets obtained in exchange for new operating lease liabilities 13,601 Right-of-use assets obtained in exchange for new finance lease liabilities — The annual maturities of the Company’s lease liabilities as of January 31, 2020 are as follows: Fiscal year (In thousands) Finance leases Operating leases 2020 (remaining six months) $ 318 $ 13,636 2021 619 22,806 2022 505 17,891 2023 — 14,892 2024 — 10,549 Thereafter — 43,919 Total future lease commitments $ 1,442 $ 123,693 Less: imputed interest (27 ) (18,474 ) Present value of lease liabilities $ 1,415 $ 105,219 Leases - Lessor The Company’s lessor arrangements include certain facilities and various land locations, of which each qualifies as an operating lease. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the straight-line rental income. The effects of these escalation clauses or concessions have been reflected in lease payments receivable on a straight-line basis over the expected lease term and any variable lease income subsequent to establishing the receivable will be recognized as incurred. Future lease payments receivable under operating leases with terms greater than one year as of January 31, 2020 are as follows: Fiscal year (In thousands) Operating leases 2020 (remaining six months) $ 2,989 2021 6,398 2022 5,691 2023 4,842 2024 4,904 Thereafter 21,888 Total future lease payments receivable $ 46,712 The cost of the leased space was $57.7 million as of January 31, 2020 . The accumulated depreciation associated with the leased assets was $0.1 million as of January 31, 2020 . Both the leased assets and accumulated depreciation are included in Property and equipment, net on the consolidated balance sheet . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 5 – Goodwill and Intangible Assets The following table sets forth amortizable intangible assets by major asset class: (In thousands) January 31, 2020 July 31, 2019 Amortized intangibles: Supply contracts and customer relationships $ 49,006 $ 49,109 Trade names 23,506 23,501 Licenses and databases 7,691 7,688 Accumulated amortization (29,912 ) (25,142 ) Net intangibles $ 50,291 $ 55,156 Aggregate amortization expense on amortizable intangible assets was $2.3 million and $2.6 million for the three months ended January 31, 2020 and 2019 , respectively, and $4.8 million and $5.5 million for the six months ended January 31, 2020 and 2019 , respectively. The change in the carrying amount of goodwill was as follows (in thousands): Balance as of July 31, 2019 $ 333,321 Effect of foreign currency exchange rates 4,941 Balance as of January 31, 2020 $ 338,262 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 6 – Long-Term Debt Credit Agreement On December 3, 2014 , the Company entered into a Credit Agreement (as amended from time to time, the “Credit Amendment”) with Wells Fargo Bank, National Association, as administrative agent, and Bank of America, N.A., as syndication agent. The Credit Agreement provided for (a) a secured revolving loan facility in an aggregate principal amount of up to $300.0 million (the “Revolving Loan Facility”), and (b) a secured term loan facility in an aggregate principal amount of $300.0 million (the “Term Loan”), which was fully drawn at closing. The Term Loan amortized $18.8 million per quarter. On March 15, 2016 , the Company entered into a First Amendment to Credit Agreement (the “Amendment to Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and Bank of America, N.A. The Amendment to Credit Agreement amended certain terms of the Credit Agreement, dated as of December 3, 2014 . The Amendment to Credit Agreement provided for (a) an increase in the secured revolving credit commitments by $50.0 million , bringing the aggregate principal amount of the revolving credit commitments under the Credit Agreement to $350.0 million , (b) a new secured term loan (the “Incremental Term Loan”) in the aggregate principal amount of $93.8 million having a maturity date of March 15, 2021 , and (c) an extension of the termination date of the Revolving Loan Facility and the maturity date of the Term Loan from December 3, 2019 to March 15, 2021 . The Amendment to Credit Agreement extended the amortization period for the Term Loan and decreased the quarterly amortization payments for that loan to $7.5 million per quarter. The Amendment to Credit Agreement additionally reduced the pricing levels under the Credit Agreement to a range of 0.15% to 0.30% in the case of the commitment fee, 1.125% to 2.0% in the case of the applicable margin for LIBOR loans, and 0.125% to 1.0% in the case of the applicable margin for base rate loans, based on the Company’s consolidated total net leverage ratio during the preceding fiscal quarter. The Company borrowed the entire $93.8 million principal amount of the Incremental Term Loan concurrent with the closing of the Amendment to Credit Agreement. On July 21, 2016 , the Company entered into a Second Amendment to Credit Agreement (the “Second Amendment to Credit Agreement”) with Wells Fargo Bank, National Association, SunTrust Bank, and Bank of America, N.A., as administrative agent (as successor in interest to Wells Fargo Bank). The Second Amendment to Credit Agreement amends certain terms of the Credit Agreement, dated as of December 3, 2014 as amended by the Amendment to Credit Agreement, dated as of March 15, 2016 . The Second Amendment to Credit Agreement provides for, among other things, (a) an increase in the secured revolving credit commitments by $500.0 million , bringing the aggregate principal amount of the revolving credit commitments under the Credit Agreement to $850.0 million , (b) the repayment of existing term loans outstanding under the Credit Agreement, (c) an extension of the termination date of the revolving credit facility under the Credit Agreement from March 15, 2021 to July 21, 2021 , and (d) increased covenant flexibility. Concurrent with the closing of the Second Amendment to Credit Agreement, the Company prepaid in full the outstanding $242.5 million principal amount of the Term Loan and Incremental Term Loan under the Credit Agreement without premium or penalty. The Second Amendment to Credit Agreement reduced the pricing levels under the Credit Agreement to a range of 0.125% to 0.20% in the case of the commitment fee, 1.00% to 1.75% in the case of the applicable margin for LIBOR loans, and 0.0% to 0.75% in the case of the applicable margin for base rate loans, in each case depending on the Company’s consolidated total net leverage ratio during the preceding fiscal quarter. The principal purposes of these financing transactions were to increase the size and availability under the Company’s Revolving Loan Facility and to provide additional long-term financing. The proceeds are being used for general corporate purposes, including working capital and capital expenditures, potential share repurchases, acquisitions, or other investments relating to the Company’s expansion strategies in domestic and international markets. The Revolving Loan Facility under the Credit Agreement bears interest, at the election of the Company, at either (a) the Base Rate, which is defined as a fluctuating rate per annum equal to the greatest of (i) the Prime Rate in effect on such day; (ii) the Federal Funds Rate in effect on such date plus 0.50% ; or (iii) the LIBOR rate plus 1.0% , in each case plus an applicable margin ranging from 0.0% to 0.75% based on the Company’s consolidated total net leverage ratio during the preceding fiscal quarter; or (b) the LIBOR rate plus an applicable margin ranging from 1.00% to 1.75% depending on the Company’s consolidated total net leverage ratio during the preceding fiscal quarter. Interest is due and payable quarterly, in arrears, for loans bearing interest at the Base Rate, and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the LIBOR rate. The interest rate as of January 31, 2020 on the Company’s Revolving Loan Facility was the Prime Rate of 4.75% plus an applicable margin of 0.00%. The carrying amount of the Credit Agreement is comprised of borrowings under which interest accrues under a fluctuating interest rate structure. Accordingly, the carrying value approximates fair value at January 31, 2020 , and was classified within Level II of the fair value hierarchy. Amounts borrowed under the Revolving Loan Facility may be repaid and reborrowed until the maturity date of July 21, 2021 . The Company is obligated to pay a commitment fee on the unused portion of the Revolving Loan Facility. The commitment fee rate ranges from 0.125% to 0.20% , depending on the Company’s consolidated total net leverage ratio during the preceding fiscal quarter, on the average daily unused portion of the revolving credit commitment under the Credit Agreement. The Company had $13.6 million of outstanding borrowings under the Revolving Loan Facility as of January 31, 2020 and no outstanding borrowings under the Revolving Loan Facility as of July 31, 2019 . The Company’s obligations under the Credit Agreement are guaranteed by certain of the Company’s domestic subsidiaries meeting materiality thresholds set forth in the Credit Agreement. Such obligations, including the guaranties, are secured by substantially all of the assets of the Company and the assets of the subsidiary guarantors pursuant to a Security Agreement as part of the Second Amendment to Credit Agreement, dated July 21, 2016, among the Company, the subsidiary guarantors from time to time party thereto, and Bank of America, N.A., as collateral agent. The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends, or make distributions on and repurchase stock, in each case subject to certain exceptions. The Company is also required to maintain compliance, measured at the end of each fiscal quarter, with a consolidated total net leverage ratio and a consolidated interest coverage ratio. The Credit Agreement contains no restrictions on the payment of dividends and other restricted payments, as defined, as long as (1) the consolidated total net leverage ratio, as defined, both before and after giving effect to any such dividend or restricted payment on a pro forma basis, is less than 3.25 :1, in an unlimited amount, (2) if clause (1) is not available, so long as the consolidated total net leverage ratio both before and after giving effect to any such dividend on a pro forma basis is less than 3.50 :1, in an aggregate amount not to exceed the available amount, as defined, and (3) if clauses (1) and (2) are not available, in an aggregate amount not to exceed $50.0 million ; provided, that, minimum liquidity, as defined, shall be not less than $75.0 million both before and after giving effect to any such dividend or restricted payment. As of January 31, 2020 , the consolidated total net leverage ratio was 0.38 :1. Minimum liquidity as of January 31, 2020 was $895.3 million . Accordingly, the Company does not believe that the provisions of the Credit Agreement represent a significant restriction to its ability to pay dividends or to the successful future operations of the business. The Company has not paid a cash dividend since becoming a public company in 1994. The Company was in compliance with all covenants related to the Credit Agreement as of January 31, 2020 . Note Purchase Agreement On December 3, 2014 , the Company entered into a Note Purchase Agreement and sold to certain purchasers (collectively, the “Purchasers”) $400.0 million in aggregate principal amount of senior secured notes (the “Senior Notes”) consisting of (i) $100.0 million aggregate principal amount of 4.07% Senior Notes, Series A, due December 3, 2024 ; (ii) $100.0 million aggregate principal amount of 4.19% Senior Notes, Series B, due December 3, 2026 ; (iii) $100.0 million aggregate principal amount of 4.25% Senior Notes, Series C, due December 3, 2027 ; and (iv) $100.0 million aggregate principal amount of 4.35% Senior Notes, Series D, due December 3, 2029 . Interest is due and payable quarterly, in arrears, on each of the Senior Notes. Proceeds from the Note Purchase Agreement are being used for general corporate purposes. On July 21, 2016 , the Company entered into Amendment No. 1 to Note Purchase Agreement (the “First Amendment to Note Purchase Agreement”) which amended certain terms of the Note Purchase Agreement, including providing for increased flexibility substantially consistent with the changes included in the Second Amendment to Credit Agreement, including among other things increased covenant flexibility. The Company may prepay the Senior Notes, in whole or in part, at any time, subject to certain conditions, including minimum amounts and payment of a make-whole amount equal to the discounted value of the remaining scheduled interest payments under the Senior Notes. The Company’s obligations under the Note Purchase Agreement are guaranteed by certain of the Company’s domestic subsidiaries meeting materiality thresholds set forth in the Note Purchase Agreement. Such obligations, including the guaranties, are secured by substantially all of the assets of the Company and assets of the subsidiary guarantors. The obligations of the Company and its subsidiary guarantors under the Note Purchase Agreement will be treated on a pari passu basis with the obligations of those entities under the Credit Agreement as well as any additional debt the Company may obtain. The Note Purchase Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends, or make distributions and repurchase stock, in each case subject to certain exceptions. The Company is also required to maintain compliance, measured at the end of each fiscal quarter, with a consolidated total net leverage ratio and a consolidated interest coverage ratio. The Note Purchase Agreement contains no restrictions on the payment of dividends and other restricted payments, as defined, as long as (1) the consolidated total net leverage ratio, as defined, both before and after giving effect to any such dividend or restricted payment on a pro forma basis, is less than 3.25 :1, in an unlimited amount, (2) if clause (1) is not available, so long as the consolidated total net leverage ratio both before and after giving effect to any such dividend on a pro forma basis is less than 3.50 :1, in an aggregate amount not to exceed the available amount, as defined, and (3) if clauses (1) and (2) are not available, in an aggregate amount not to exceed $50.0 million ; provided, that, minimum liquidity, as defined, shall be not less than $75.0 million both before and after giving effect to any such dividend or restricted payment on a pro forma basis. As of January 31, 2020 , the consolidated total net leverage ratio was 0.38 :1. Minimum liquidity as of January 31, 2020 was $895.3 million . Accordingly, the Company does not believe that the provisions of the Note Purchase Agreement represent a significant restriction to its ability to pay dividends or to the successful future operations of the business. The Company has not paid a cash dividend since becoming a public company in 1994. The Company was in compliance with all covenants related to the Note Purchase Agreement as of January 31, 2020 . |
Fair Value Measures
Fair Value Measures | 6 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | NOTE 7 – Fair Value Measures The following table summarizes the fair value of the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis based on inputs used to derive their fair values: January 31, 2020 July 31, 2019 (In thousands) Fair Value Total Significant Observable Inputs (Level II) Fair Value Total Significant Observable Inputs (Level II) Assets Cash equivalents $ 12,376 $ 12,376 $ 12,389 $ 12,389 Total Assets $ 12,376 $ 12,376 $ 12,389 $ 12,389 Liabilities Long-term fixed rate debt, including current portion $ 424,854 $ 424,854 $ 411,510 $ 411,510 Revolving loan facility 13,600 13,600 — — Total Liabilities $ 438,454 $ 438,454 $ 411,510 $ 411,510 During the six months ended January 31, 2020 , no transfers were made between any levels within the fair value hierarchy. See Note 1 – Summary of Significant Accounting Policies , and Note 6 – Long-Term Debt . |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE 8 – Net Income Per Share The table below reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding: Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Weighted average common shares outstanding 232,671 230,798 231,920 232,343 Effect of dilutive securities — stock options 5,799 9,862 6,646 10,400 Weighted average common and dilutive potential common shares outstanding 238,470 240,660 238,566 242,743 There were no material adjustments to net income required in calculating diluted net income per share. Excluded from the dilutive earnings per share calculation were 150,000 and 425,000 options to purchase the Company’s common stock for the three months ended January 31, 2020 and 2019 , respectively, and 200,000 and 460,000 options to purchase the Company’s common stock for the six months ended January 31, 2020 and 2019 , respectively, because their inclusion would have been anti-dilutive. |
Stock-based Payment Compensatio
Stock-based Payment Compensation | 6 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Payment Compensation | NOTE 9 – Stock-based Compensation The Company recognizes compensation expense for stock option 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 stock options for the six months ended January 31, 2020 : (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2019 14,552 $ 26.29 6.04 $ 745,592 Grants of options 150 88.58 Exercises (5,852 ) 17.74 Forfeitures or expirations (3 ) 17.69 Outstanding as of January 31, 2020 8,847 $ 33.01 6.56 $ 605,592 Exercisable as of January 31, 2020 5,315 $ 23.53 5.53 $ 414,187 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 8,846,693 at January 31, 2020 . The Company recognizes compensation expense for restricted stock 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 restricted stock for the six months ended January 31, 2020 : (In thousands, except per share data) Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of July 31, 2019 134 $ 56.62 Grants of restricted stock 69 82.33 Vested restricted stock (3 ) 47.18 Forfeited restricted stock (2 ) 63.07 Outstanding as of January 31, 2020 198 $ 65.58 The table below sets forth the stock-based compensation recognized by the Company for stock options and restricted stock awards: Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 General and administrative $ 4,704 $ 4,691 $ 9,145 $ 9,680 Yard operations 1,437 1,238 2,529 2,270 Total stock-based compensation $ 6,141 $ 5,929 $ 11,674 $ 11,950 In accordance with ASC 718 , Compensation – Stock Compensation , the Company made an estimate of expected forfeitures and recognized compensation cost only for those equity awards expected to vest. |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Common Stock Repurchases | NOTE 10 – Stock Repurchases On September 22, 2011 , the Company’s Board of Directors approved an 80 million share increase in the stock repurchase program, bringing the total current authorization to 196 million shares. The repurchases may be effected through solicited or unsolicited transactions in the open market or in privately negotiated transactions. No time limit has been placed on the duration of the stock repurchase program. Subject to applicable securities laws, such repurchases will be made at such times and in such amounts as the Company deems appropriate and may be discontinued at any time. The Company did not repurchase any shares of its common stock under the program during the six months ended January 31, 2020 . During fiscal 2019, the Company repurchased 7,635,596 shares of its common stock under the program at a weighted average price of $47.81 per share totaling $365.0 million . As of January 31, 2020 , the total number of shares repurchased under the program was 114,549,198 , and 81,450,802 shares were available for repurchase under the program. In fiscal 2020, the Company's Chief Executive Officer exercised all of his vested stock options through a cashless exercise. A portion of the options exercised were net settled in satisfaction of the exercise price. The Company remitted $101.3 million for the six months ended January 31, 2020 to the proper taxing authorities in satisfaction of the employee’s statutory withholding requirements. The exercised stock options, utilizing a cashless exercise, are summarized in the following table: Period Options Exercised Weighted Average Exercise Price Shares Net Settled for Exercise Shares Withheld for Taxes (1) Net Shares to Employee Weighted Average Share Price for Withholding Employee Stock-Based Tax Withholding (in 000s) FY 2020—Q1 4,000,000 $ 17.81 865,719 1,231,595 1,902,686 $ 82.29 $ 101,348 (1) Shares withheld for taxes are treated as a repurchase of shares for accounting purposes but do not count against the Company’s stock repurchase program. |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 – Income Taxes The Company applies the provisions of the accounting standard for uncertain tax positions to its income taxes. For benefits to be realized, a tax position must be more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently under examination by certain taxing authorities in the U.S. for fiscal years between 2014 and 2018. At this time, the Company does not believe that the outcome of any examination will have a material impact on the Company’s consolidated results of operations and financial position. The Company’s effective income tax rates were 17.7% and 20.4% for the three months ended January 31, 2020 and 2019 , respectively, and 5.0% and 21.8% for the six months ended January 31, 2020 and 2019 , respectively. The effective tax rates in the current and prior year were impacted from the result of recognizing excess tax benefits from the exercise of employee stock options of $14.8 million and $4.8 million for the three months ended January 31, 2020 and 2019 , respectively, and $77.2 million and $5.0 million for the six months ended January 31, 2020 and 2019 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jan. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | NOTE 12 – Recent Accounting Pronouncements Pending In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). ASU 2017-04 amends the requirement that entities compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, entities should perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment if the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for annual periods beginning after December 15, 2019. The Company’s adoption of ASU 2017-04 will not have a material impact on the Company’s consolidated results of operations and financial position. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and must be applied on a modified retrospective basis. The Company is continuing its assessment, which may identify additional impacts of ASU 2016-13 on the Company’s consolidated results of operations, financial position, and related disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company’s adoption of ASU 2019-12 will not have a material impact on the Company’s consolidated results of operations and financial position. Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The current standard, ASC Topic 740 - Income Taxes , requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. This includes the tax effects of items in accumulated other comprehensive income ("AOCI") that were originally recognized in other comprehensive income, subsequently creating stranded tax effects. ASU 2018-02 allows a reclassification from AOCI to retained earnings for stranded tax effects specifically resulting from the U.S. federal government's recently enacted tax bill, the Tax Cuts and Jobs Act. The adoption of ASU 2018-02, in the first quarter of fiscal 2020, did not result in a reclassification from AOCI to retained earnings and did not have an impact on the Company’s consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , that supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for annual and interim periods within those annual reporting periods beginning after December 15, 2018 and adoption is to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. Most of the Company’s operating lease commitments are subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on the Company’s consolidated balance sheets. The Company implemented the policy elections and practical expedients as part of adopting ASU 2016-02 included: (i) excluding from the balance sheet leases with terms that are less than one year; (ii) for agreements that contain both lease and non-lease components, combining these components together and accounting for them as a single lease; (iii) the package of practical expedients, which allowed the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy U.S. GAAP; and (iv) the policy election that eliminated the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance. The adoption of ASU 2016-02 resulted in the recording of a right-of-use asset and a lease liability in the first quarter of fiscal 2020, as a result of the application of the standard and did not have a material impact to the Company’s consolidated results of operations. See Note 4 – Leases for additional disclosures as a result of the adoption of the standard. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | NOTE 13 – Legal Proceedings The Company is subject to threats of litigation and is involved in actual litigation and damage claims arising in the ordinary course of business, such as actions related to injuries, property damage, contract disputes, and handling or disposal of vehicles. There are no material pending legal proceedings to which the Company is a party, or with respect to which any of the Company’s property is subject. |
Segments and Other Geographic R
Segments and Other Geographic Reporting Segment Reporting | 6 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 14 – 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. Intercompany income (expense) is primarily related to charges for services provided by the U.S. segment. The following table presents financial information by segment: Three Months Ended January 31, 2020 Three Months Ended January 31, 2019 (In thousands) United States International Total United States International Total Service revenues $ 447,345 $ 62,689 $ 510,034 $ 362,023 $ 54,784 $ 416,807 Vehicle sales 35,392 29,714 65,106 28,049 40,042 68,091 Total service revenues and vehicle sales 482,737 92,403 575,140 390,072 94,826 484,898 Yard operations 219,278 38,073 257,351 181,335 34,125 215,460 Cost of vehicle sales 33,887 24,013 57,900 26,883 34,329 61,212 General and administrative 39,487 10,510 49,997 36,452 7,035 43,487 Operating income $ 190,085 $ 19,807 $ 209,892 $ 145,402 $ 19,337 $ 164,739 Depreciation and amortization $ 21,698 $ 2,584 $ 24,282 $ 17,877 $ 2,522 $ 20,399 Capital expenditures 261,157 7,402 268,559 66,901 7,490 74,391 Six Months Ended January 31, 2020 Six Months Ended January 31, 2019 (In thousands) United States International Total United States International Total Service revenues $ 878,148 $ 119,742 $ 997,890 $ 705,596 $ 106,017 $ 811,613 Vehicle sales 68,753 62,921 131,674 55,685 78,968 134,653 Total service revenues and vehicle sales 946,901 182,663 1,129,564 761,281 184,985 946,266 Yard operations 424,108 74,034 498,142 358,977 64,177 423,154 Cost of vehicle sales 64,959 51,705 116,664 52,826 66,142 118,968 General and administrative 78,699 20,776 99,475 73,784 14,181 87,965 Operating income $ 379,135 $ 36,148 $ 415,283 $ 275,694 $ 40,485 $ 316,179 Depreciation and amortization $ 42,265 $ 5,031 $ 47,296 $ 37,269 $ 4,999 $ 42,268 Capital expenditures 374,423 25,929 400,352 102,154 34,573 136,727 January 31, 2020 July 31, 2019 (In thousands) United States International Total United States International Total Total assets $ 2,526,943 $ 521,662 $ 3,048,605 $ 2,094,592 $ 453,025 $ 2,547,617 Goodwill 256,998 81,264 338,262 256,998 76,323 333,321 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments of a normal recurring nature considered necessary for fair presentation of its financial position as of January 31, 2020 and July 31, 2019 , its consolidated statements of income , comprehensive income and stockholders’ equity for the three and six months ended January 31, 2020 and 2019 , and its cash flows for the six months ended January 31, 2020 and 2019 . Interim results for the three and six months ended January 31, 2020 are not necessarily indicative of the results that may be expected for any future period, or for the entire year ending July 31, 2020 . These consolidated financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include, but are not limited to, vehicle pooling costs; income taxes; stock-based compensation; purchase price allocations; and contingencies |
Revenue Recognition | Revenue Recognition The Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. Service revenue and vehicle sales revenue are recognized at the date the vehicles are sold at auction, excluding annual registration fees. Costs to prepare the vehicles for auction, including inbound transportation costs and titling fees, are deferred and recognized at the time of revenue recognition at auction. There were no contract liabilities on the consolidated balance sheets at January 31, 2020 and July 31, 2019 . The Company’s disaggregation between service revenues and vehicle sales at the segment level reflects how the nature, timing, amount and uncertainty of its revenues and cash flows are impacted by economic factors. The Company reports sales taxes on relevant transactions on a net basis in the Company’s consolidated results of operations, and therefore does not include sales taxes in revenues or costs. Service revenues The Company’s service revenue consists of auction and auction related sales transaction fees charged for vehicle remarketing services. Within this revenue category, the Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. These auction and auction related services may include a combination of vehicle purchasing fees, vehicle listing fees, and vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price driven fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle; transportation fees for the cost of transporting the vehicle to or from the Company’s facility; title processing and preparation fees; vehicle storage fees; bidding fees; and vehicle loading fees. These services are not distinct within the context of the contract. Accordingly, revenue for these services is recognized when the single performance obligation is satisfied at the completion of the auction process. The Company does not take ownership of these consigned vehicles, which are stored at the Company’s facilities located throughout the U.S. and at its international locations. These fees are recognized as net revenue (not gross vehicle selling price) at the time of auction in the amount of such fees charged. The Company has a separate performance obligation related to providing access to its online auction platform as the Company charges members an annual registration fee for the right to participate in its online auctions and access the Company’s bidding platform. This fee is recognized ratably over the term of the arrangement, generally one year, as each day of access to the online auction platform represents the best depiction of the transfer of the service. No provision for returns has been established, as all sales are final with no right of return or warranty, although the Company provides for bad debt expense in the case of non-performance by its buyers or sellers. Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Service revenues United States $ 447,345 $ 362,023 $ 878,148 $ 705,596 International 62,689 54,784 119,742 106,017 Total service revenues $ 510,034 $ 416,807 $ 997,890 $ 811,613 Vehicle sales Certain vehicles are purchased and remarketed on the Company’s own behalf. The Company has a single performance obligation related to the sale of these vehicles, which is the completion of the online auction process. Vehicle sales revenue is recognized on the auction date. As the Company acts as a principal in vehicle sales transactions, the gross sales price at auction is recorded as revenue. Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Vehicle sales United States $ 35,392 $ 28,049 $ 68,753 $ 55,685 International 29,714 40,042 62,921 78,968 Total vehicle sales $ 65,106 $ 68,091 $ 131,674 $ 134,653 Contract assets |
Vehicle Pooling Costs | Vehicle Pooling Costs The Company defers costs that relate directly to the fulfillment of its contracts associated with vehicles consigned to and received by the Company, but not sold as of the end of the period. The Company quantifies the deferred costs using a calculation that includes the number of vehicles at its facilities at the beginning and end of the period, the number of vehicles sold during the period and an allocation of certain yard operation costs of the period. The primary expenses allocated and deferred are inbound transportation costs, titling fees, certain facility costs, labor, and vehicle processing. If the allocation factors change, then yard operation expenses could increase or decrease correspondingly in the future. These costs are expensed into yard operations expenses as vehicles are sold in subsequent periods on an average cost basis. |
Foreign Currency Translation | Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiaries into the U.S. dollar reporting currency. The Canadian dollar, British pound, Brazilian real, European Union euro, U.A.E. dirham, Omani rial, Bahraini dinar, and Indian rupee are the functional currencies of the Company’s foreign subsidiaries as they are the primary currencies within the economic environment in which each subsidiary operates. The original equity investment in the respective subsidiaries is translated at historical rates. Assets and liabilities of the respective subsidiary’s operations are translated into U.S. dollars at period-end exchange rates, and revenues and expenses are translated into U.S. dollars at average exchange rates in effect during each reporting period. Adjustments resulting from the translation of each subsidiary’s financial statements are reported in other comprehensive income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in U.S. GAAP. In accordance with ASC 820, Fair Value Measurements and Disclosures , as amended by Accounting Standards Update (“ASU”) 2011-04, the Company considers fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants under current market conditions. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level I Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level II Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level III Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate. The amounts recorded for financial instruments in the Company’s consolidated financial statements, which included cash, accounts receivable, accounts payable, accrued liabilities and Revolving Loan Facility approximated their fair values as of January 31, 2020 and July 31, 2019 , due to the short-term nature of those instruments, and are classified within Level II of the fair value hierarchy. Cash equivalents are classified within Level II of the fair value hierarchy because they are valued using quoted market prices of the underlying investments. See Note 6 – Long-Term Debt , and Note 7 – Fair Value Measures . |
Income Taxes and Deferred Tax Assets | Income Taxes and Deferred Tax Assets Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, their respective tax basis, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company considers the need to maintain a valuation allowance on deferred tax assets based on an assessment of whether it is more likely than not that the Company would realize those deferred tax assets based on future reversals of existing taxable temporary differences and the ability to generate sufficient taxable income within the carryforward period available under the applicable tax law. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Excess tax benefits and deficiencies related to exercises of stock options are recognized as expense or benefit in the consolidated statements of income as discrete items in the reporting period in which they occur. The Company recognizes and measures uncertain tax positions in accordance with ASC 740, Income Taxes , pursuant to which the Company only recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. ASC 740 further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the quarter in which such change occurs. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Segments and Other Geographic Reporting | 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 and operating income. |
Capitalized Software Costs | Capitalized Software Costs |
Acquisitions | Acquisitions The Company recognizes and measures identifiable assets acquired and liabilities assumed in acquired entities in accordance with ASC 805, Business Combinations . The allocation of the purchase consideration for acquisitions can require extensive use of accounting estimates and judgments to allocate the purchase consideration to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill. Critical estimates in valuing certain identifiable assets include but are not limited to expected long-term revenues; future expected operating expenses; cost of capital; appropriate attrition; and discount rates. |
Recent Accounting Pronouncements | Pending In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). ASU 2017-04 amends the requirement that entities compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, entities should perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment if the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for annual periods beginning after December 15, 2019. The Company’s adoption of ASU 2017-04 will not have a material impact on the Company’s consolidated results of operations and financial position. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and must be applied on a modified retrospective basis. The Company is continuing its assessment, which may identify additional impacts of ASU 2016-13 on the Company’s consolidated results of operations, financial position, and related disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company’s adoption of ASU 2019-12 will not have a material impact on the Company’s consolidated results of operations and financial position. Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The current standard, ASC Topic 740 - Income Taxes , requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. This includes the tax effects of items in accumulated other comprehensive income ("AOCI") that were originally recognized in other comprehensive income, subsequently creating stranded tax effects. ASU 2018-02 allows a reclassification from AOCI to retained earnings for stranded tax effects specifically resulting from the U.S. federal government's recently enacted tax bill, the Tax Cuts and Jobs Act. The adoption of ASU 2018-02, in the first quarter of fiscal 2020, did not result in a reclassification from AOCI to retained earnings and did not have an impact on the Company’s consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , that supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for annual and interim periods within those annual reporting periods beginning after December 15, 2018 and adoption is to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. Most of the Company’s operating lease commitments are subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a significant increase in the assets and liabilities on the Company’s consolidated balance sheets. The Company implemented the policy elections and practical expedients as part of adopting ASU 2016-02 included: (i) excluding from the balance sheet leases with terms that are less than one year; (ii) for agreements that contain both lease and non-lease components, combining these components together and accounting for them as a single lease; (iii) the package of practical expedients, which allowed the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy U.S. GAAP; and (iv) the policy election that eliminated the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance. The adoption of ASU 2016-02 resulted in the recording of a right-of-use asset and a lease liability in the first quarter of fiscal 2020, as a result of the application of the standard and did not have a material impact to the Company’s consolidated results of operations. See Note 4 – Leases for additional disclosures as a result of the adoption of the standard. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Contract with Customer, Asset and Liability | The change in the carrying amount of contract assets was as follows (in thousands): Balance as of July 31, 2019 $ 10,574 Capitalized contract assets during the period 100 Costs amortized during the period (1,748 ) Effect of foreign currency exchange rates 356 Balance as of January 31, 2020 $ 9,282 |
Schedule of Foreign Currency Translation | The cumulative effects of foreign currency exchange rate fluctuations were as follows (in thousands): Cumulative loss on foreign currency translation as of July 31, 2018 $ (107,928 ) Loss on foreign currency translation (24,601 ) Cumulative loss on foreign currency translation as of July 31, 2019 $ (132,529 ) Gain on foreign currency translation 12,659 Cumulative loss on foreign currency translation as of January 31, 2020 $ (119,870 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable, net consisted of: (In thousands) January 31, 2020 July 31, 2019 Advance charges receivable $ 349,517 $ 280,835 Trade accounts receivable 98,529 89,274 Other receivables 4,233 2,098 452,279 372,207 Less: Allowance for doubtful accounts (6,316 ) (4,942 ) Accounts receivable, net $ 445,963 $ 367,265 |
Property and Equipment, Net P_2
Property and Equipment, Net Property and Equipment, Net (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment, net consisted of the following: (In thousands) January 31, 2020 July 31, 2019 Land $ 1,131,553 $ 939,817 Buildings and improvements 864,245 686,615 Transportation and other equipment 260,237 236,282 Office furniture and equipment 66,605 63,200 Software 46,342 39,434 2,368,982 1,965,348 Less: Accumulated depreciation and amortization (579,656 ) (537,622 ) Property and equipment, net $ 1,789,326 $ 1,427,726 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The weighted-average remaining lease terms and discount rates as of January 31, 2020 are as follows: (in thousands) Weighted-Average Remaining Lease Term (in years) Weighted-Average Discount Rate (1) Operating leases 9.30 2.99 % Finance leases 2.30 1.73 % (1) The Company cannot determine the interest rate implicit in the Company’s leases. Therefore, the discount rate represents the Company’s incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to the Company’s corporate credit rating for a secured or collateralized instrument. Components of lease expense for the six months ended January 31, 2020 were as follows: Six Months Ended January 31, (In thousands) 2020 Operating lease expense $ 15,682 Finance lease expense: Amortization of right-of-use assets 312 Interest on finance lease liabilities 14 Short-term lease expense 3,292 Variable lease expense 819 Total lease expense $ 20,119 |
Lessee, Operating Leases [Text Block] | The components of right-of-use assets and lease liabilities on the consolidated balance sheet are as follows (in thousands): Lease Asset and Liabilities Balance Sheet Classification (In thousands) January 31, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 104,360 Finance lease right-of-use assets Property and equipment, net 1,406 Total lease assets, net $ 105,766 Operating lease liabilities - current Current portion of operating lease liabilities $ 23,314 Finance lease liabilities - current Current portion of revolving loan facility and finance lease liabilities 615 Operating lease liabilities - non-current Operating lease liabilities, net of current portion 81,906 Finance lease liabilities - non-current Long-term debt, revolving loan facility and finance lease liabilities, net of discount 800 Total lease liabilities $ 106,635 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information related to leases as of January 31, 2020 are as follows: (in thousands) Six Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 14,797 Operating cash flows related to finance leases 14 Financing cash flows related to finance leases 312 Right-of-use assets obtained in exchange for new operating lease liabilities 13,601 Right-of-use assets obtained in exchange for new finance lease liabilities — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The annual maturities of the Company’s lease liabilities as of January 31, 2020 are as follows: Fiscal year (In thousands) Finance leases Operating leases 2020 (remaining six months) $ 318 $ 13,636 2021 619 22,806 2022 505 17,891 2023 — 14,892 2024 — 10,549 Thereafter — 43,919 Total future lease commitments $ 1,442 $ 123,693 Less: imputed interest (27 ) (18,474 ) Present value of lease liabilities $ 1,415 $ 105,219 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Future lease payments receivable under operating leases with terms greater than one year as of January 31, 2020 are as follows: Fiscal year (In thousands) Operating leases 2020 (remaining six months) $ 2,989 2021 6,398 2022 5,691 2023 4,842 2024 4,904 Thereafter 21,888 Total future lease payments receivable $ 46,712 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of aggregate amortization expense on intangible assets | The following table sets forth amortizable intangible assets by major asset class: (In thousands) January 31, 2020 July 31, 2019 Amortized intangibles: Supply contracts and customer relationships $ 49,006 $ 49,109 Trade names 23,506 23,501 Licenses and databases 7,691 7,688 Accumulated amortization (29,912 ) (25,142 ) Net intangibles $ 50,291 $ 55,156 |
Schedule of change in carrying amount of goodwill (in thousands) | The change in the carrying amount of goodwill was as follows (in thousands): Balance as of July 31, 2019 $ 333,321 Effect of foreign currency exchange rates 4,941 Balance as of January 31, 2020 $ 338,262 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Financial Assets and Liabilities | The following table summarizes the fair value of the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis based on inputs used to derive their fair values: January 31, 2020 July 31, 2019 (In thousands) Fair Value Total Significant Observable Inputs (Level II) Fair Value Total Significant Observable Inputs (Level II) Assets Cash equivalents $ 12,376 $ 12,376 $ 12,389 $ 12,389 Total Assets $ 12,376 $ 12,376 $ 12,389 $ 12,389 Liabilities Long-term fixed rate debt, including current portion $ 424,854 $ 424,854 $ 411,510 $ 411,510 Revolving loan facility 13,600 13,600 — — Total Liabilities $ 438,454 $ 438,454 $ 411,510 $ 411,510 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic weighted shares outstanding to diluted weighted average shares outstanding | The table below reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding: Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 Weighted average common shares outstanding 232,671 230,798 231,920 232,343 Effect of dilutive securities — stock options 5,799 9,862 6,646 10,400 Weighted average common and dilutive potential common shares outstanding 238,470 240,660 238,566 242,743 |
Stock-based Payment Compensat_2
Stock-based Payment Compensation (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of option activity for stock options | The following is a summary of activity for the Company’s stock options for the six months ended January 31, 2020 : (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2019 14,552 $ 26.29 6.04 $ 745,592 Grants of options 150 88.58 Exercises (5,852 ) 17.74 Forfeitures or expirations (3 ) 17.69 Outstanding as of January 31, 2020 8,847 $ 33.01 6.56 $ 605,592 Exercisable as of January 31, 2020 5,315 $ 23.53 5.53 $ 414,187 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following is a summary of activity for the Company’s restricted stock for the six months ended January 31, 2020 : (In thousands, except per share data) Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of July 31, 2019 134 $ 56.62 Grants of restricted stock 69 82.33 Vested restricted stock (3 ) 47.18 Forfeited restricted stock (2 ) 63.07 Outstanding as of January 31, 2020 198 $ 65.58 |
Recognized stock-based compensation expense | The table below sets forth the stock-based compensation recognized by the Company for stock options and restricted stock awards: Three Months Ended January 31, Six Months Ended January 31, (In thousands) 2020 2019 2020 2019 General and administrative $ 4,704 $ 4,691 $ 9,145 $ 9,680 Yard operations 1,437 1,238 2,529 2,270 Total stock-based compensation $ 6,141 $ 5,929 $ 11,674 $ 11,950 |
Stock Repurchases (Tables)
Stock Repurchases (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Summary of stock options exercised | The exercised stock options, utilizing a cashless exercise, are summarized in the following table: Period Options Exercised Weighted Average Exercise Price Shares Net Settled for Exercise Shares Withheld for Taxes (1) Net Shares to Employee Weighted Average Share Price for Withholding Employee Stock-Based Tax Withholding (in 000s) FY 2020—Q1 4,000,000 $ 17.81 865,719 1,231,595 1,902,686 $ 82.29 $ 101,348 (1) Shares withheld for taxes are treated as a repurchase of shares for accounting purposes but do not count against the Company’s stock repurchase program. |
Segments and Other Geographic_2
Segments and Other Geographic Reporting Segment Reporting (Tables) | 6 Months Ended |
Jan. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents financial information by segment: Three Months Ended January 31, 2020 Three Months Ended January 31, 2019 (In thousands) United States International Total United States International Total Service revenues $ 447,345 $ 62,689 $ 510,034 $ 362,023 $ 54,784 $ 416,807 Vehicle sales 35,392 29,714 65,106 28,049 40,042 68,091 Total service revenues and vehicle sales 482,737 92,403 575,140 390,072 94,826 484,898 Yard operations 219,278 38,073 257,351 181,335 34,125 215,460 Cost of vehicle sales 33,887 24,013 57,900 26,883 34,329 61,212 General and administrative 39,487 10,510 49,997 36,452 7,035 43,487 Operating income $ 190,085 $ 19,807 $ 209,892 $ 145,402 $ 19,337 $ 164,739 Depreciation and amortization $ 21,698 $ 2,584 $ 24,282 $ 17,877 $ 2,522 $ 20,399 Capital expenditures 261,157 7,402 268,559 66,901 7,490 74,391 Six Months Ended January 31, 2020 Six Months Ended January 31, 2019 (In thousands) United States International Total United States International Total Service revenues $ 878,148 $ 119,742 $ 997,890 $ 705,596 $ 106,017 $ 811,613 Vehicle sales 68,753 62,921 131,674 55,685 78,968 134,653 Total service revenues and vehicle sales 946,901 182,663 1,129,564 761,281 184,985 946,266 Yard operations 424,108 74,034 498,142 358,977 64,177 423,154 Cost of vehicle sales 64,959 51,705 116,664 52,826 66,142 118,968 General and administrative 78,699 20,776 99,475 73,784 14,181 87,965 Operating income $ 379,135 $ 36,148 $ 415,283 $ 275,694 $ 40,485 $ 316,179 Depreciation and amortization $ 42,265 $ 5,031 $ 47,296 $ 37,269 $ 4,999 $ 42,268 Capital expenditures 374,423 25,929 400,352 102,154 34,573 136,727 January 31, 2020 July 31, 2019 (In thousands) United States International Total United States International Total Total assets $ 2,526,943 $ 521,662 $ 3,048,605 $ 2,094,592 $ 453,025 $ 2,547,617 Goodwill 256,998 81,264 338,262 256,998 76,323 333,321 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jul. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Service revenues and vehicle sales: | $ 575,140 | $ 484,898 | $ 1,129,564 | $ 946,266 | |
Cumulative Translation Adjustment Summary [Roll Forward] | |||||
Cumulative loss on foreign currency translation, beginning balance | (132,529) | (107,928) | $ (107,928) | ||
(Loss) Gain on foreign currency translation | 12,659 | (24,601) | |||
Cumulative loss on foreign currency translation, ending balance | (119,870) | (119,870) | $ (132,529) | ||
Service revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Service revenues and vehicle sales: | 510,034 | 416,807 | 997,890 | 811,613 | |
Vehicle sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Service revenues and vehicle sales: | $ 65,106 | $ 68,091 | $ 131,674 | $ 134,653 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Details Textual) | 6 Months Ended | |
Jan. 31, 2020USD ($) | Jul. 31, 2019USD ($) | |
Description Of Business and Summary Of Significant Accounting Policies [Line Items] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 10,574,000 | |
Capitalized Contract Cost, Gross | 100,000 | |
Capitalized Contract Cost, Amortization | (1,748,000) | |
Indefinite-lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 356,000 | |
Contract with Customer, Asset, after Allowance for Credit Loss | 9,282,000 | |
Contract with Customer, Liability | 0 | |
Capitalized software costs | 46,300,000 | $ 39,400,000 |
Accumulated amortization expense | $ 28,500,000 | $ 23,600,000 |
Number of operating segments | 2 | |
Number of reportable segment | 2 |
Accounts Receivable Accounts Re
Accounts Receivable Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2020 | Jul. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenue, Practical Expedient, Financing Component [true false] | false | |
Accounts Receivable, before Allowance for Credit Loss, Current | $ 452,279 | $ 372,207 |
Less: Allowance for doubtful accounts | 6,316 | 4,942 |
Accounts receivable, net | 445,963 | 367,265 |
Advance charges receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss, Current | 349,517 | 280,835 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss, Current | 98,529 | 89,274 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 4,233 | $ 2,098 |
Property and Equipment, Net P_3
Property and Equipment, Net Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jul. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | $ 2,368,982 | $ 2,368,982 | $ 1,965,348 | ||
Less: Accumulated depreciation and amortization | (579,656) | (579,656) | (537,622) | ||
Property, Plant and Equipment, Net | 1,789,326 | 1,789,326 | 1,427,726 | ||
Depreciation | 22,000 | $ 17,800 | 42,500 | $ 36,700 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 1,131,553 | 1,131,553 | 939,817 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 864,245 | 864,245 | 686,615 | ||
Transportation and other equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 260,237 | 260,237 | 236,282 | ||
Office furniture and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 66,605 | 66,605 | 63,200 | ||
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | $ 46,342 | $ 46,342 | $ 39,434 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) $ in Thousands | 6 Months Ended |
Jan. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease expense | $ 15,682 |
Amortization of right-of-use assets | 312 |
Interest on finance lease liabilities | 14 |
Short-term lease expense | 3,292 |
Variable lease expense | 819 |
Total lease expense | $ 20,119 |
Leases Balance Sheet Presentati
Leases Balance Sheet Presentation of Operating and Financing Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jul. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 104,360 | $ 0 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | 1,406 | |
Lease Assets, net | 105,766 | |
Current portion of operating lease liabilities | 23,314 | 0 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | 615 | |
Operating lease liabilities, net of current portion | 81,906 | $ 0 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | 800 | |
Lease liabilities | $ 106,635 |
Leases Weighted Average Term an
Leases Weighted Average Term and Discount Rate (Details) | Jan. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 3 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 2.99% |
Finance Lease, Weighted Average Discount Rate, Percent | 1.73% |
Leases Supplemental Cash Flow D
Leases Supplemental Cash Flow Disclosures (Details) $ in Thousands | 6 Months Ended |
Jan. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating cash flows related to operating leases | $ 14,797 |
Operating cash flows related to finance leases | 14 |
Financing cash flows related to finance leases | 312 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 13,601 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 |
Leases Lessee, Operating and Fi
Leases Lessee, Operating and Financing Lease Maturity (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 (remaining six months) | $ 318 |
2021 | 619 |
2022 | 505 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total future lease commitments | 1,415 |
Less: imputed interest | (27) |
Present value of lease liabilities | 1,415 |
2020 (remaining six months) | 13,636 |
2021 | 22,806 |
2022 | 17,891 |
2023 | 14,892 |
2024 | 10,549 |
Thereafter | 43,919 |
Total future lease commitments | 105,219 |
Less: imputed interest | (18,474) |
Present value of lease liabilities | 105,219 |
Finance Lease, Liability | 1,442 |
Operating Lease, Liability | $ 123,693 |
Leases Lessor (Details)
Leases Lessor (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
2020 (remaining six months) | $ 2,989 |
2021 | 6,398 |
2022 | 5,691 |
2023 | 4,842 |
2024 | 4,904 |
Thereafter | 21,888 |
Total future lease payments receivable | 46,712 |
Property Subject to or Available for Operating Lease, Net | 57,700 |
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 100 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jul. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 2,300 | $ 2,600 | $ 4,800 | $ 5,500 | |
Amortized intangibles: | |||||
Accumulated amortization | (29,912) | (29,912) | $ (25,142) | ||
Net intangibles | 50,291 | 50,291 | 55,156 | ||
Supply contracts and customer relationships | |||||
Amortized intangibles: | |||||
Gross carrying amount | 49,006 | 49,006 | 49,109 | ||
Trade names | |||||
Amortized intangibles: | |||||
Gross carrying amount | 23,506 | 23,506 | 23,501 | ||
Licenses and databases | |||||
Amortized intangibles: | |||||
Gross carrying amount | $ 7,691 | $ 7,691 | $ 7,688 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) $ in Thousands | 6 Months Ended |
Jan. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of July 31, 2019 | $ 333,321 |
Effect of foreign currency exchange rates | 4,941 |
Balance as of January 31, 2020 | $ 338,262 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Aggregate amortization expense | $ 2.3 | $ 2.6 | $ 4.8 | $ 5.5 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Jul. 21, 2016 | Jul. 21, 2016 | Jan. 31, 2020 | Mar. 14, 2016 | Jul. 31, 2019 | Jan. 31, 2017 | Mar. 15, 2016 | Dec. 03, 2014 |
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Mar. 15, 2021 | |||||||
Scenario 3 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Long-term Debt | not to exceed $50.0 million | |||||||
Scenario 4 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Long-term Debt | not less than $75.0 million | |||||||
Credit Agreement | Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Dec. 3, 2019 | |||||||
Note Purchase Agreement | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 400 | |||||||
Note Purchase Agreement | Senior Notes, Series A | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 4.07% | |||||||
Note Purchase Agreement | Senior Notes, Series B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 4.19% | |||||||
Note Purchase Agreement | Senior Notes, Series C | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 4.25% | |||||||
Note Purchase Agreement | Senior Notes, Series D | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, interest rate | 4.35% | |||||||
Senior Notes, Series A [Member] | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 100 | |||||||
Senior Notes, Series B [Member] | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Face Amount | 100 | |||||||
Senior Notes, Series C [Member] | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Face Amount | 100 | |||||||
Senior Notes, Series D [Member] | Senior Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Face Amount | 100 | |||||||
Wells Fargo and Bank of America, N.A. | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Repayments of Lines of Credit | $ 242.5 | |||||||
Wells Fargo and Bank of America, N.A. | Revolving Credit Facility | Line of Credit | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.15% | |||||||
Wells Fargo and Bank of America, N.A. | Revolving Credit Facility | Line of Credit | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | |||||||
Wells Fargo and Bank of America, N.A. | Term Loan Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Quarterly amortization for term loan | $ 7.5 | |||||||
Wells Fargo and Bank of America, N.A. | Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 300 | |||||||
Wells Fargo and Bank of America, N.A. | Credit Agreement | Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 300 | |||||||
Wells Fargo and Bank of America, N.A. | Credit Agreement | Term Loan Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Quarterly amortization for term loan | $ 18.8 | |||||||
Wells Fargo and Bank of America, N.A. | First Amendment To Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 350 | |||||||
Line of Credit, Maximum Borrowing Capacity, Increase | 50 | |||||||
Wells Fargo and Bank of America, N.A. | First Amendment To Credit Agreement | Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 93.8 | |||||||
Outstanding borrowings | $ 93.8 | |||||||
Wells Fargo and Bank of America, N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR One | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0.125% | |||||||
Wells Fargo and Bank of America, N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR One | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 1.00% | |||||||
Wells Fargo and Bank of America, N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR Two | Revolving Credit Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 1.125% | |||||||
Wells Fargo and Bank of America, N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR Two | Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 2.00% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Jul. 21, 2021 | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Revolving Credit Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings | $ 13.6 | $ 0 | ||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Scenario 3 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Covenant Terms | not to exceed $50.0 million | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Scenario 4 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Covenant Terms | not less than $75.0 million | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Credit Agreement | Term Loan Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
LIBOR variable interest rate | Prime Rate of 4.75% plus an applicable margin of 0.00%. | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Second Amendment To Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500 | $ 500 | $ 850 | |||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | Federal Funds Effective Swap Rate | Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0.50% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | London Interbank Offered Rate (LIBOR) | Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 1.00% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR One | Revolving Credit Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0.00% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR One | Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0.75% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR Two | Revolving Credit Facility | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 1.00% | |||||||
WellsFargo,NationalAssociation,SunTrustBankandBankofAmerica,N.A. | London Interbank Offered Rate (LIBOR), Adjusted LIBOR Two | Revolving Credit Facility | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 1.75% |
Long-Term Debt Leverage Ratios
Long-Term Debt Leverage Ratios (Details) $ in Millions | 6 Months Ended |
Jan. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Total Consolidated Net Leverage Ratio | 38.00% |
Minimum Liquidity | $ 895.3 |
Scenario 1 | |
Line of Credit Facility [Line Items] | |
Note Agreement, Covenant Terms | 325.00% |
Line of Credit Facility, Covenant Terms 1 | 325.00% |
Scenario 2 | |
Line of Credit Facility [Line Items] | |
Note Agreement, Covenant Terms | 350.00% |
Line of Credit Facility, Covenant Terms 1 | 350.00% |
Fair Value Measures (Details)
Fair Value Measures (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2020 | Jul. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 12,376 | $ 12,389 |
Assets, Fair Value Disclosure | 12,376 | 12,389 |
Total Liabilities | 438,454 | 411,510 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,376 | 12,389 |
Assets, Fair Value Disclosure | 12,376 | 12,389 |
Total Liabilities | 438,454 | 411,510 |
Fixed Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term variable rate debt, including current portion | 424,854 | 411,510 |
Long-term fixed rate debt, including current portion | 424,854 | 411,510 |
Fixed Rate Debt | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term variable rate debt, including current portion | 424,854 | 411,510 |
Long-term fixed rate debt, including current portion | 424,854 | 411,510 |
Variable Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving loan facility | $ 13,600 | 0 |
Variable Rate Debt | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving loan facility | $ 0 |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding | 232,671 | 230,798 | 231,920 | 232,343 |
Effect of dilutive securities — stock options | 5,799 | 9,862 | 6,646 | 10,400 |
Weighted average common and dilutive potential common shares outstanding | 238,470 | 240,660 | 238,566 | 242,743 |
Net Income Per Share (Details T
Net Income Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from the calculation of dilutive earnings per share | 150,000 | 425,000 | 200,000 | 460,000 |
Stock-based Payment Compensat_3
Stock-based Payment Compensation (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jan. 31, 2020USD ($)$ / sharesshares | Jul. 31, 2019USD ($)$ / sharesshares | |
Shares | ||
Outstanding as of July 31, 2019 | shares | 14,552,000 | |
Grants of options (in shares) | shares | 150,000 | |
Exercises (in shares) | shares | (5,852,000) | |
Forfeitures or expirations (in shares) | shares | (3,000) | |
Outstanding as of January 31, 2020 | shares | 8,847,000 | 14,552,000 |
Exercisable as of January 31, 2020 | shares | 5,315,000 | |
Weighted Average Exercise Price | ||
Outstanding as of July 31, 2019 | $ / shares | $ 26.29 | |
Grants of options (in dollars per share) | $ / shares | 88.58 | |
Exercises (in dollars per share) | $ / shares | 17.74 | |
Forfeitures (in dollars per share) | $ / shares | (17.69) | |
Outstanding as of January 31, 2020 | $ / shares | 33.01 | $ 26.29 |
Exercisable as of January 31, 2020 | $ / shares | $ 23.53 | |
Weighted Average Remaining Contractual Term (In years) | ||
Outstanding as of July 31, 2019 | 6 years 14 days | |
Outstanding as of January 31, 2020 | 6 years 6 months 21 days | |
Exercisable as of January 31, 2020 | 5 years 6 months 10 days | |
Aggregate Intrinsic Value | ||
Outstanding as of July 31, 2019 | $ | $ 745,592 | |
Outstanding as of January 31, 2020 | $ | 605,592 | $ 745,592 |
Exercisable as of January 31, 2020 | $ | $ 414,187 | |
Restricted Shares | ||
Outstanding as of July 31, 2019 | shares | 134,000 | |
Grants of restricted stock (in shares) | shares | 69,000 | |
Vested restricted stock (in shares) | shares | (3,000) | |
Forfeited restricted stock (in shares) | shares | (2,000) | |
Outstanding as of January 31, 2020 | shares | 198,000 | 134,000 |
Outstanding as of July 31, 2019, Weighted Average Grant Date Fair Value | $ / shares | $ 56.62 | |
Granted restricted stock, Weighted Average Grant Date Fair Value | $ / shares | 82.33 | |
Vested restricted stock, Weighted Average Grant Date Fair Value | $ / shares | 47.18 | |
Forfeited restricted stock, Weighted Average Grant Date Fair Value | $ / shares | 63.07 | |
Outstanding as of January 31, 2020, Weighted Average Grant Date Fair Value | $ / shares | $ 65.58 | $ 56.62 |
Stock-based Payment Compensat_4
Stock-based Payment Compensation (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 6,141 | $ 5,929 | $ 11,674 | $ 11,950 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 4,704 | 4,691 | 9,145 | 9,680 |
Yard Operations | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,437 | $ 1,238 | $ 2,529 | $ 2,270 |
Stock-based Payment Compensat_5
Stock-based Payment Compensation (Details Textual) | 6 Months Ended |
Jan. 31, 2020shares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of stock options exercised | 5,852,000 |
Stock Based Compensation (Textual) | |
Shares available for calculating intrinsic value (in shares) | 8,846,693 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Oct. 31, 2019 | Jan. 31, 2020 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options Exercisable [Abstract] | ||
Options Exercised | 5,852,000 | |
Weighted Average Exercise Price | $ 17.74 | |
Chief Executive Officer [Member] | Common Stock | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options Exercisable [Abstract] | ||
Options Exercised | 4,000,000 | |
Weighted Average Exercise Price | $ 17.81 | |
Shares Net Settled for Exercise | 865,719 | |
Shares Withheld for Taxes(1) | 1,231,595 | |
Net Shares to Employee | 1,902,686 | |
Weighted Average Share Price for Withholding | $ 82.29 | |
Employee Stock-Based Tax Withholding (in 000s) | $ 101,348 |
Stock Repurchases (Details Text
Stock Repurchases (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | 100 Months Ended | |
Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | Sep. 22, 2011 | |
Stock Repurchased and Retired During Period, Shares | 7,635,596 | |||
Stock Repurchased and Retired During Period, Value | $ 365 | |||
Stock Repurchased and Retired During Period Cost Per Share | $ 47.81 | |||
Remittance to taxing authorities under statutory withholding | $ 101.3 | |||
Number of stock options exercised | 5,852,000 | |||
Stock Repurchase Program 2011 | ||||
Stock Repurchase Program Additional Number Of Shares Authorized Approved | 80,000,000 | |||
Stock Repurchased and Retired During Period, Shares | 114,549,198 | |||
Number of shares available for repurchase under stock repurchase program | 81,450,802 | 81,450,802 | ||
Common Stock | Stock Repurchase Program 2011 | ||||
Common stock authorized for repurchase (in shares) | 196,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Tax benefits recognized provided percentage of likelihood of realization is more than | 50.00% | |||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 14.8 | $ 4.8 | $ 77.2 | $ 5 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 17.70% | 20.40% | 5.00% | 21.80% |
Segments and Other Geographic_3
Segments and Other Geographic Reporting Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jul. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Operating Segments | 2 | ||||
Number of Reportable Segments | 2 | ||||
Service revenues and vehicle sales: | $ 575,140 | $ 484,898 | $ 1,129,564 | $ 946,266 | |
Yard operations | 257,351 | 215,460 | 498,142 | 423,154 | |
Cost of vehicle sales | 57,900 | 61,212 | 116,664 | 118,968 | |
General and administrative | 49,997 | 43,487 | 99,475 | 87,965 | |
Operating income | 209,892 | 164,739 | 415,283 | 316,179 | |
Depreciation and amortization | 24,282 | 20,399 | 47,296 | 42,268 | |
Capital expenditures, including acquisitions | 268,559 | 74,391 | 400,352 | 136,727 | |
Total assets | 3,048,605 | 3,048,605 | $ 2,547,617 | ||
Goodwill | 338,262 | 338,262 | 333,321 | ||
Operating Segments | United States | United States | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 482,737 | 390,072 | 946,901 | 761,281 | |
Yard operations | 219,278 | 181,335 | 424,108 | 358,977 | |
Cost of vehicle sales | 33,887 | 26,883 | 64,959 | 52,826 | |
General and administrative | 39,487 | 36,452 | 78,699 | 73,784 | |
Operating income | 190,085 | 145,402 | 379,135 | 275,694 | |
Depreciation and amortization | 21,698 | 17,877 | 42,265 | 37,269 | |
Capital expenditures, including acquisitions | 261,157 | 66,901 | 374,423 | 102,154 | |
Total assets | 2,526,943 | 2,526,943 | 2,094,592 | ||
Goodwill | 256,998 | 256,998 | 256,998 | ||
Operating Segments | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 92,403 | 94,826 | 182,663 | 184,985 | |
Yard operations | 38,073 | 34,125 | 74,034 | 64,177 | |
Cost of vehicle sales | 24,013 | 34,329 | 51,705 | 66,142 | |
General and administrative | 10,510 | 7,035 | 20,776 | 14,181 | |
Operating income | 19,807 | 19,337 | 36,148 | 40,485 | |
Depreciation and amortization | 2,584 | 2,522 | 5,031 | 4,999 | |
Capital expenditures, including acquisitions | 7,402 | 7,490 | 25,929 | 34,573 | |
Total assets | 521,662 | 521,662 | 453,025 | ||
Goodwill | 81,264 | 81,264 | $ 76,323 | ||
Service revenues | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 510,034 | 416,807 | 997,890 | 811,613 | |
Service revenues | Operating Segments | United States | United States | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 447,345 | 362,023 | 878,148 | 705,596 | |
Service revenues | Operating Segments | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 62,689 | 54,784 | 119,742 | 106,017 | |
Vehicle sales | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 65,106 | 68,091 | 131,674 | 134,653 | |
Vehicle sales | Operating Segments | United States | United States | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | 35,392 | 28,049 | 68,753 | 55,685 | |
Vehicle sales | Operating Segments | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Service revenues and vehicle sales: | $ 29,714 | $ 40,042 | $ 62,921 | $ 78,968 |
Uncategorized Items - cprt01312
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (22,954,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (22,954,000) |