Supplementary Balance Sheet Information

9 Months Ended

Apr. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Supplementary Balance Sheet Information

Supplementary Balance Sheet Information

The composition of property, plant and equipment follows (in thousands):

	April 30, 2021		July 31, 2020		April 30, 2020
Land and land improvements	$	761,367	$	750,714	$	745,275
Buildings and building improvements	1,502,828		1,475,661		1,466,113
Machinery and equipment	1,432,137		1,361,178		1,351,491
Furniture and fixtures	330,530		308,267		335,827
Software	122,586		104,223		130,354
Vehicles	82,375		80,510		81,408
Construction in progress	46,703		81,967		57,462
Gross property, plant and equipment	4,278,526		4,162,520		4,167,930
Accumulated depreciation	(2,161,731)		(1,969,841)		(1,966,127)
Property, plant and equipment, net	$	2,116,795	$	2,192,679	$	2,201,803

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

	April 30, 2021		July 31, 2020		April 30, 2020
Trade payables	$	64,412	$	59,692	$	62,101
Deferred revenue	238,075		256,402		219,395
Accrued salaries, wages and deferred compensation	69,821		25,588		16,184
Accrued benefits	49,958		43,704		44,536
Deposits	35,263		20,070		27,053
Operating lease liability	37,687		36,604		34,996
Other liabilities	72,048		57,048		45,009
Total accounts payable and accrued liabilities	$	567,264	$	499,108	$	449,274

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

	April 30, 2021		July 31, 2020		April 30, 2020
Private club deferred initiation fee revenue	$	104,747	$	105,108	$	107,500
Other long-term liabilities	147,704		165,137		143,964
Total other long-term liabilities	$	252,451	$	270,245	$	251,464

The changes in the net carrying amount of goodwill allocated between the Company’s segments for the nine months ended April 30, 2021 are as follows (in thousands):

	Mountain		Lodging		Goodwill, net
Balance at July 31, 2020	1,666,809		42,211		1,709,020
Effects of changes in foreign currency exchange rates	92,276		—		92,276
Balance at April 30, 2021	$	1,759,085	$	42,211	$	1,801,296

Asset Impairments

The Company recorded asset impairments related to its Colorado resort ground transportation company during the three and nine months ended April 30, 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. The Company’s non-financial assets, such as property, plant and equipment, goodwill and intangible assets, are adjusted when an asset impairment is recognized. These asset impairments encompassed various estimates and assumptions about fair value, which were 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 three and nine months ended April 30, 2020, and the expectation at that time of the 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 and long-lived assets of approximately $25.7 million and $2.7 million, respectively, which were recorded within asset impairments on the Company’s Consolidated Condensed Statements of Operations during the three and nine months ended April 30, 2020. Corresponding reductions were made to goodwill, net of $25.7 million and intangible assets, net and property, plant and equipment, net of $2.7 million.

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 April 30, 2020.