Income Taxes (Tables)
|
12 Months Ended |
Jul. 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income Before Taxes |
Income before taxes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended July 31, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
U.S. |
|
$ |
1,607,425 |
|
|
$ |
1,686,794 |
|
|
$ |
1,593,381 |
|
International |
|
|
227,552 |
|
|
|
208,787 |
|
|
|
121,220 |
|
Total income before taxes |
|
$ |
1,834,977 |
|
|
$ |
1,895,581 |
|
|
$ |
1,714,601 |
|
|
| Schedule of Income Tax Expense (Benefit) from Continuing Operations |
Income tax expense (benefit) from continuing operations consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended July 31, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Federal: |
|
|
|
|
|
|
|
|
|
Current |
|
$ |
234,126 |
|
|
$ |
272,836 |
|
|
$ |
271,820 |
|
Deferred |
|
|
51,982 |
|
|
|
(12,654 |
) |
|
|
(1,174 |
) |
|
|
|
286,108 |
|
|
|
260,182 |
|
|
|
270,646 |
|
State: |
|
|
|
|
|
|
|
|
|
Current |
|
|
15,248 |
|
|
|
37,487 |
|
|
|
49,539 |
|
Deferred |
|
|
(5,180 |
) |
|
|
(2,576 |
) |
|
|
(1,611 |
) |
|
|
|
10,068 |
|
|
|
34,911 |
|
|
|
47,928 |
|
International: |
|
|
|
|
|
|
|
|
|
Current |
|
|
59,657 |
|
|
|
51,113 |
|
|
|
34,179 |
|
Deferred |
|
|
(1,253 |
) |
|
|
1,012 |
|
|
|
(499 |
) |
|
|
|
58,404 |
|
|
|
52,125 |
|
|
|
33,680 |
|
Income tax expense |
|
$ |
354,580 |
|
|
$ |
347,218 |
|
|
$ |
352,254 |
|
|
| Schedule of Cash Paid for Income Taxes |
A summary of the cash paid for income taxes is as follows:
|
|
|
|
|
(In thousands) |
|
July 31, 2026 |
|
Income Taxes Paid |
|
|
|
Federal Taxes |
|
$ |
292,999 |
|
State Taxes |
|
|
61,492 |
|
Foreign Taxes |
|
|
|
United Kingdom |
|
|
30,967 |
|
Other Foreign Jurisdictions |
|
|
12,922 |
|
Total Cash Paid |
|
$ |
398,380 |
|
|
| Schedule of Reconciliation of Expected U.S. Statutory Tax Rate |
A reconciliation of the expected U.S. statutory tax rate to the actual effective income tax rate for fiscal year 2026 is as follows:
|
|
|
|
|
|
|
|
|
(In thousands) |
|
July 31, 2026 |
|
US Federal Statutory Tax Rate |
|
$ |
385,345 |
|
|
|
21.0 |
% |
State and Local Income Taxes, Net of Federal Income Tax Effect (1) |
|
|
21,493 |
|
|
|
1.2 |
% |
Foreign Tax Effects |
|
|
10,618 |
|
|
|
0.6 |
% |
Effect of Changes in Tax Laws or Rate Enacted in the Current Period |
|
|
— |
|
|
|
0.0 |
% |
Effect of Cross-Border Tax Laws |
|
|
(45,948 |
) |
|
|
-2.5 |
% |
Foreign-Derived Intangible Income Deduction |
|
|
(46,712 |
) |
|
|
-2.5 |
% |
Other Effects of Cross-Border Tax Laws |
|
|
764 |
|
|
|
0.0 |
% |
Tax Credits |
|
|
(5,129 |
) |
|
|
-0.3 |
% |
Changes in Valuation Allowance |
|
|
— |
|
|
|
0.0 |
% |
Nontaxable or Nondeductible Items |
|
|
2,250 |
|
|
|
0.1 |
% |
Changes in Unrecognized Tax Benefits |
|
|
(14,049 |
) |
|
|
-0.8 |
% |
Effective tax rate |
|
$ |
354,580 |
|
|
|
19.3 |
% |
(1) New Jersey, Tennessee, Pennsylvania, Florida, Minnesota, Illinois A reconciliation of the expected U.S. statutory tax rate to the actual effective income tax rate for fiscal years 2025 and 2024 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended July 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
State income taxes, net of federal income tax benefit |
|
|
2.1 |
% |
|
|
2.4 |
% |
International rate differential |
|
|
0.3 |
% |
|
|
0.1 |
% |
Compensation and fringe benefits |
|
|
-1.6 |
% |
|
|
-0.7 |
% |
FDII and/or GILTI (1) |
|
|
-2.8 |
% |
|
|
-2.8 |
% |
Federal return to provision adjustment |
|
|
-0.1 |
% |
|
|
0.0 |
% |
Other differences |
|
|
-0.6 |
% |
|
|
0.5 |
% |
Effective tax rate |
|
|
18.3 |
% |
|
|
20.5 |
% |
(1) The Company has elected to account for Global Intangible Low-Taxed Income (GILTI) as a period cost and therefore does not recognize deferred taxes for basis differences expected to reverse as GILTI.
|
| Schedule of Deferred Tax Assets (Liabilities) |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) are presented below:
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Allowance for credit loss |
|
$ |
3,253 |
|
|
$ |
2,794 |
|
Accrued compensation and benefits |
|
|
27,518 |
|
|
|
24,868 |
|
Operating lease liabilities |
|
|
15,498 |
|
|
|
21,213 |
|
Accrued other |
|
|
3,103 |
|
|
|
3,233 |
|
Deferred revenue |
|
|
6,077 |
|
|
|
5,989 |
|
Losses carried forward/interest disallowance |
|
|
56,329 |
|
|
|
52,256 |
|
Federal tax benefit |
|
|
834 |
|
|
|
7,974 |
|
Total gross deferred tax assets |
|
|
112,612 |
|
|
|
118,327 |
|
Less: Valuation allowance |
|
|
(54,059 |
) |
|
|
(50,311 |
) |
Net deferred tax assets |
|
|
58,553 |
|
|
|
68,016 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Vehicle pooling costs |
|
|
(24,424 |
) |
|
|
(25,018 |
) |
Property and equipment |
|
|
(101,948 |
) |
|
|
(58,782 |
) |
Operating lease right-of-use assets |
|
|
(15,911 |
) |
|
|
(21,655 |
) |
Other prepaids |
|
|
(2,535 |
) |
|
|
(2,420 |
) |
Intangibles and goodwill |
|
|
(38,487 |
) |
|
|
(38,586 |
) |
Total gross deferred tax liabilities |
|
|
(183,305 |
) |
|
|
(146,461 |
) |
Net deferred tax liabilities |
|
$ |
(124,752 |
) |
|
$ |
(78,445 |
) |
|
| Schedule of Unrecognized Tax Benefits |
The following table summarizes the activities related to the Company’s unrecognized tax benefits resulting from uncertain tax positions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
Beginning balance |
|
$ |
25,226 |
|
|
$ |
45,725 |
|
|
$ |
57,445 |
|
Increases related to current year tax positions |
|
|
— |
|
|
|
— |
|
|
|
2,955 |
|
Prior year tax positions: |
|
|
|
|
|
|
|
|
|
Increases recognized during the period |
|
|
224 |
|
|
|
126 |
|
|
|
11 |
|
Decreases recognized during the period |
|
|
(9,014 |
) |
|
|
(9,724 |
) |
|
|
(7,070 |
) |
Cash settlements during the period |
|
|
(11,211 |
) |
|
|
(8,951 |
) |
|
|
(6,062 |
) |
Lapse of statute of limitations |
|
|
(2,525 |
) |
|
|
(1,950 |
) |
|
|
(1,554 |
) |
Ending balance |
|
$ |
2,700 |
|
|
$ |
25,226 |
|
|
$ |
45,725 |
|
|