v3.26.3
Income Taxes
 12 Months Ended
Jul. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is subject to taxation in U.S. federal, state and local jurisdictions and various non-U.S. jurisdictions, including Australia, Canada, the Netherlands and Switzerland. The Company’s effective tax rate is impacted by the tax laws, regulations, practices and interpretations in the jurisdictions in which it operates and may fluctuate significantly from period to period depending on, among other things, the geographic mix of the Company’s profits and losses, changes in tax laws and regulations or their application and interpretation, the outcome of tax audits and changes in valuation allowances associated with the Company’s deferred tax assets.
Provision for Income Taxes
U.S. and foreign components of income before provision for income taxes are as follows (in thousands):
Year Ended July 31,
202620252024
U.S.$105,086 $282,244 $220,067 
Foreign121,870 120,153 119,688 
Income before income taxes$226,956 $402,397 $339,755 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands):
July 31,
  
20262025
Deferred income tax liabilities:
Fixed assets$161,780 $155,279 
Intangible assets194,611 174,587 
Operating lease right of use assets53,004 57,454 
Other20,892 23,033 
Total430,287 410,353 
Deferred income tax assets:
Canyons obligation23,480 18,672 
Stock-based compensation10,359 9,438 
Investment in Partnerships4,332 3,797 
Deferred compensation and other accrued benefits12,319 8,143 
Contingent Consideration24,548 18,190 
Net operating loss carryforwards and other tax credits31,761 24,943 
Operating lease liabilities53,899 59,304 
Other, net28,272 29,844 
Total188,970 172,331 
Valuation allowance for deferred income taxes(20,505)(13,225)
Deferred income tax assets, net of valuation allowance168,465 159,106 
Net deferred income tax liability$261,822 $251,247 
The components of deferred income taxes recognized in the accompanying Consolidated Balance Sheets are as follows (in thousands):
July 31,
20262025
Deferred income tax asset$360 $794 
Deferred income tax liability262,182 252,041 
Net deferred income tax liability$261,822 $251,247 
Significant components of the provision for income taxes are as follows (in thousands):
Year Ended July 31,
  
202620252024
Current:
Federal$26,901 $69,449 $44,218 
State3,813 23,374 10,444 
Foreign27,282 32,550 31,412 
Total current57,996 125,373 86,074 
Deferred:
Federal(2,183)(16,351)6,185 
State(2,518)(2,364)(574)
Foreign2,917 (2,237)1,091 
Total deferred(1,784)(20,952)6,702 
Provision for income taxes$56,212 $104,421 $92,776 
Effective Tax Rate
The Company adopted Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) prospectively. A reconciliation of the items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate for the year ended July 31, 2026, pursuant to the requirements of ASU 2023-09, is as follows (in thousands):
Year Ended July 31, 2026
  
Amount ($)Percent (%)
U.S. federal statutory tax rate$47,660 21.0 %
Effect of:
State and local income taxes, net of federal benefit (1)
1,294 0.6 %
Foreign tax effects:
Canada:
Foreign rate differential5,718 2.5 %
Non-controlling interest(6,410)(2.8)%
Other(2,969)(1.3)%
Switzerland:
Changes in valuation allowance6,100 2.7 %
Other854 0.4 %
Other jurisdictions2,329 1.0 %
Effect of cross-border tax laws2,285 1.0 %
Tax credits(1,008)(0.4)%
Nontaxable or nondeductible items1,261 0.5 %
Changes in unrecognized tax benefits(877)(0.4)%
Other adjustments(25)— %
Effective tax rate$56,212 24.8 %
(1) In fiscal year 2026, state and local income taxes in Colorado and California made up the majority (greater than 50%) of the tax effect in this category.
As previously disclosed for the years ended July 31, 2025 and 2024, prior to the adoption of ASU 2023-09, a reconciliation of the items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate are as follows (in thousands):
Year Ended July 31,
  
20252024
At U.S. federal income tax rate21.0 %21.0 %
State income tax, net of federal benefit4.1 %2.9 %
Change in uncertain tax positions(0.1)%0.1 %
Stock-based compensation0.3 %0.4 %
Noncontrolling interests(0.9)%(1.0)%
Foreign taxes2.5 %3.6 %
Taxes related to prior year filings(0.7)%0.3 %
Other(0.3)%— %
Effective tax rate25.9 %27.3 %
Income taxes paid, net of refunds, pursuant to the disclosure requirements of ASU 2023-09 are as follows (in thousands):
July 31, 2026
Federal $27,404 
State:
Colorado4,163 
Other5,727 
Foreign:
Australia 8,866 
Canada23,520 
Other258 
Income taxes paid, net of refunds$69,938 
Uncertain Tax Positions
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions, excluding associated deferred tax benefits and accrued interest and penalties, if applicable, is as follows (in thousands):
Year Ended July 31,
  
202620252024
Balance, beginning of year$50,276 $50,988 $51,680 
Additions for tax positions of prior years
10,536 10,703 10,866 
Lapse of statute of limitations
(11,267)(11,415)(11,558)
Balance, end of year$49,545 $50,276 $50,988 
As of July 31, 2026, the Company’s unrecognized tax benefits associated with uncertain tax positions relate to the treatment of the Talisker lease payments as payments of debt obligations and that the tax basis in Canyons goodwill is deductible, and are included within other long-term liabilities in the accompanying Consolidated Balance Sheets.
As of July 31, 2026, the Company had recorded $49.5 million of uncertain tax positions as well as $6.4 million of accrued interest and penalties. During the year ended July 31, 2026, the Company experienced a reduction in the uncertain tax positions due to the lapse of the statute of limitations of $11.3 million, which was partially offset with an increase to the uncertain tax position of $10.5 million. The Company also had additional net interest income of $0.1 million from a net increase in accrued interest and penalties during the year ended July 31, 2026. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Additionally, the Company expects a reduction to its uncertain tax positions for the fiscal year ending July 31, 2027, due to the lapse of the statute of limitations.
The Company’s major tax jurisdictions in which it files income tax returns are the U.S. federal jurisdiction, various state jurisdictions, Australia, Canada and Switzerland. The Company’s U.S. federal and state income tax returns are generally subject to tax examinations for the tax years 2021 through the current period. The Company’s Australian and Canadian income tax returns are generally subject to examination for the tax years 2020 through the current period, and Swiss income tax returns are generally subject to examination for the tax years 2020 through the current period. Additionally, to the extent the Company has net operating losses (“NOLs”) that have been carried back or are available for carryforward, the tax years to which the NOL was carried back or in which the NOL was generated may still be adjusted by the taxing authorities to the extent the NOLs are utilized.
The Company has NOL carryforwards totaling $133.5 million, primarily comprised of $13.0 million of state NOLs that will expire beginning July 31, 2039 and non-U.S. NOLs of $120.5 million (for which a portion will begin expiring July 31, 2026). In connection with Peak Resorts’ initial public offering in November 2014, as well as the Company’s acquisition of Peak Resorts in September 2019, Peak Resorts had two ownership changes pursuant to the provisions of the Tax Reform Act of 1986. As a result, the Company’s usage of its eligible Federal NOL carryforwards will be limited each year by these ownership changes; however, management believes the full benefit of those carryforwards will be realized prior to their respective expiration dates. As of July 31, 2026, the Company has recorded a valuation allowance of $16.5 million on non-U.S. NOL carryforwards, as the Company has determined that it is more likely than not that the associated NOL carryforwards will not be
realized. The Company has also recorded a valuation allowance of $4.0 million on foreign tax credit carryforwards, as the Company has determined that it is more likely than not that these foreign tax credit carryforwards will not be realized.
The Company may be required to record additional valuation allowances if, among other things, adverse economic conditions negatively impact the Company’s ability to realize its deferred tax assets. Evaluating and estimating the Company’s tax provision, current and deferred tax assets and liabilities and other tax accruals requires significant management judgment. The Company intends to indefinitely reinvest undistributed earnings, if any, in its foreign subsidiaries. It is not practical at this time to determine the income tax liability related to any remaining undistributed earnings.