Supplementary Balance Sheet Information

12 Months Ended

Jul. 31, 2020

Balance Sheet Related Disclosures [Abstract]

The composition of property, plant and equipment, including capital lease assets, follows (in thousands):



	July 31,
	2020			2019
Land and land improvements	$	750,714		$	619,561
Buildings and building improvements	1,475,661			1,284,438
Machinery and equipment	1,361,178			1,160,817
Furniture and fixtures	308,267			309,271
Software	104,223			118,815
Vehicles	80,510			65,556
Construction in progress	81,967			79,282
Gross property, plant and equipment	4,162,520			3,637,740
Accumulated depreciation	(1,969,841		)	(1,795,240		)
Property, plant and equipment, net	$	2,192,679		$	1,842,500

Depreciation expense, which included depreciation of assets recorded under capital leases, for the years ended July 31, 2020, 2019 and 2018 totaled $243.1 million, $210.7 million and $199.2 million, respectively.

The following table summarizes the composition of property, plant and equipment recorded under finance leases as of July 31, 2020 and 2019 (in thousands):



	July 31,
	2020			2019
Land	$	31,818		$	31,818
Land improvements	49,228			49,228
Buildings and building improvements	42,160			42,160
Machinery and equipment	60,384			60,384
Gross property, plant and equipment	183,590			183,590
Accumulated depreciation	(65,792		)	(56,040		)
Property, plant and equipment, net	$	117,798		$	127,550

The composition of goodwill and intangible assets follows (in thousands):



	July 31,
	2020			2019
Goodwill
Goodwill	$	1,752,062		$	1,625,560
Accumulated impairments	(25,688		)	—
Accumulated amortization	(17,354		)	(17,354		)
Goodwill, net	$	1,709,020		$	1,608,206

Indefinite-lived intangible assets
Trademarks	$	230,000		$	215,905
Other	41,667			42,166
Total gross indefinite-lived intangible assets	271,667			258,071
Accumulated amortization	(24,713		)	(24,713		)
Indefinite-lived intangible assets, net	$	246,954		$	233,358
Amortizable intangible assets
Trademarks	$	38,208		$	42,108
Other	70,772			67,538
Total gross amortizable intangible assets	108,980			109,646
Accumulated amortization	(41,158		)	(36,831		)
Amortizable intangible assets, net	67,822			72,815
Total gross intangible assets	380,647			367,717
Total accumulated amortization	(65,871		)	(61,544		)
Total intangible assets, net	$	314,776		$	306,173

Amortization expense for intangible assets subject to amortization for the years ended July 31, 2020, 2019 and 2018 totaled $6.5 million, $7.4 million and $5.3 million, respectively, and is estimated to be approximately $4.3 million annually, on average, for the next five fiscal years.

The changes in the net carrying amount of goodwill allocated between the Company’s segments for the years ended July 31, 2020 and 2019 are as follows (in thousands):



	Mountain			Lodging			Goodwill, net
Balance at July 31, 2018	$	1,407,787		$	67,899		$	1,475,686
Acquisitions (including measurement period adjustments)	152,049			—			152,049
Effects of changes in foreign currency exchange rates	(19,529		)	—			(19,529		)
Balance at July 31, 2019	1,540,307			67,899			1,608,206
Acquisitions (including measurement period adjustments)	135,987			—			135,987
Asset impairments	—			(25,688		)	(25,688		)
Effects of changes in foreign currency exchange rates	(9,485		)	—			(9,485		)
Balance at July 31, 2020	$	1,666,809		$	42,211		$	1,709,020

Asset Impairments

The Company recorded asset impairments during the year ended July 31, 2020 of $28.4 million, with corresponding reductions to goodwill, net of $25.7 million and intangible assets, net and property, plant and equipment, net of $2.7 million. These asset impairments encompass various estimates and assumptions about fair value, which are based predominately on significant unobservable inputs.

As a result of the COVID-19 pandemic and the impact it has had on the Company’s operations during the year ended July 31, 2020, and the expected continuing impact of the pandemic on future operations, the Company determined that the estimated fair value of its Colorado resort ground transportation company reporting unit within its Lodging segment no longer exceeded its carrying value. Additionally, the Company determined that certain long-lived assets of its Colorado resort ground transportation company were not recoverable. As a result, the Company recognized impairments of goodwill of approximately $25.7 million and intangible assets and long-lived assets of $2.7 million, which were recorded within asset impairments on the Company’s Consolidated Statement of Operations during the year ended July 31, 2020.

The Company estimated the fair value of its Colorado resort ground transportation company reporting unit based on an analysis of the present value of future cash flows (an income approach). The significant estimates used in the discounted cash flow model included the Company’s weighted average cost of capital for the reporting unit, projected cash flows and the long-term rate of growth, all of which are significant unobservable (Level 3) inputs. The Company’s assumptions were based on the actual historical performance of the reporting unit, taking into account the recent weakening of operating results and the expected continuation of operating results for transportation services. As a result of this impairment, the Company’s Colorado ground transportation company had no remaining goodwill recorded as of July 31, 2020.

The composition of accounts payable and accrued liabilities follows (in thousands):



	July 31,
	2020		2019
Trade payables	$	59,692	$	96,377
Deferred revenue	256,402		335,669
Accrued salaries, wages and deferred compensation	25,588		50,318
Accrued benefits	43,704		37,797
Deposits	20,070		32,108
Operating lease liabilities	36,604		—
Other accruals	57,048		55,588
Total accounts payable and accrued liabilities	$	499,108	$	607,857

The composition of other long-term liabilities follows (in thousands):



	July 31,
	2020		2019
Private club deferred initiation fee revenue	$	105,108	$	109,749
Unfavorable lease obligation, net	1,651		19,017
Other long-term liabilities	163,486		154,835
Total other long-term liabilities	$	270,245	$	283,601