Supplementary Balance Sheet Information

12 Months Ended

Jul. 31, 2021

Balance Sheet Related Disclosures [Abstract]

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


	July 31,
	2021		2020
Land and land improvements	$	756,517	$	750,714
Buildings and building improvements	1,496,402		1,475,661
Machinery and equipment	1,417,705		1,361,178
Furniture and fixtures	308,432		308,267
Software	122,778		104,223
Vehicles	80,328		80,510
Construction in progress	67,710		81,967
Gross property, plant and equipment	4,249,872		4,162,520
Accumulated depreciation	(2,181,996)		(1,969,841)
Property, plant and equipment, net	$	2,067,876	$	2,192,679

Depreciation expense, which included depreciation of assets recorded under finance leases, for the years ended July 31, 2021, 2020 and 2019 totaled $247.2 million, $243.1 million, and $210.7 million, respectively.

The following table summarizes the composition of property, plant and equipment recorded under finance leases as of July 31, 2021 and 2020 (in thousands):


	July 31,
	2021		2020
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	(75,545)		(65,792)
Property, plant and equipment, net	$	108,045	$	117,798

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


	July 31,
	2021		2020
Goodwill
Goodwill	$	1,824,089	$	1,752,062
Accumulated impairments	(25,688)		(25,688)
Accumulated amortization	(17,354)		(17,354)
Goodwill, net	$	1,781,047	$	1,709,020

Indefinite-lived intangible assets
Trademarks	$	239,786	$	230,000
Other	41,561		41,667
Total gross indefinite-lived intangible assets	281,347		271,667
Accumulated amortization	(24,713)		(24,713)
Indefinite-lived intangible assets, net	$	256,634	$	246,954
Amortizable intangible assets
Trademarks	$	38,008	$	38,208
Other	69,397		70,772
Total gross amortizable intangible assets	107,405		108,980
Accumulated amortization	(44,929)		(41,158)
Amortizable intangible assets, net	62,476		67,822
Total gross intangible assets	388,752		380,647
Total accumulated amortization	(69,642)		(65,871)
Total intangible assets, net	$	319,110	$	314,776

Amortization expense for intangible assets subject to amortization for the years ended July 31, 2021, 2020 and 2019 totaled $5.4 million, $6.5 million and $7.4 million, respectively, and is estimated to be approximately $4.1 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, 2021 and 2020 are as follows (in thousands):


	Mountain		Lodging		Goodwill, net
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


Effects of changes in foreign currency exchange rates	72,027		—		72,027
Balance at July 31, 2021	$	1,738,836	$	42,211	$	1,781,047

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 encompassed various estimates and assumptions about fair value, which were based predominately on significant unobservable inputs.

As a result of COVID-19 and the impact it had on the Company’s operations during the year ended July 31, 2020, 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 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,
	2021		2020
Trade payables	$	98,261	$	59,692
Deferred revenue	456,457		256,402
Accrued salaries, wages and deferred compensation	54,286		25,588
Accrued benefits	47,368		43,704
Deposits	35,263		20,070
Operating lease liabilities	34,668		36,604
Other accruals	89,169		57,048
Total accounts payable and accrued liabilities	$	815,472	$	499,108