Cover
Cover - shares | 9 Months Ended | |
Apr. 30, 2024 | May 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2024 | |
Document Transition Report | false | |
Entity Registrant Name | COPART, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-23255 | |
Entity Tax Identification Number | 94-2867490 | |
Entity Address, Address Line One | 14185 Dallas Parkway | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75254 | |
City Area Code | 972 | |
Local Phone Number | 391-5000 | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Trading Symbol | CPRT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 962,297,603 | |
Entity Central Index Key | 0000900075 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2024 | Jul. 31, 2023 |
Current assets: | ||
Cash, cash equivalents, and restricted cash | $ 1,089,995 | $ 957,395 |
Investment in held to maturity securities | 2,000,334 | 1,406,589 |
Accounts receivable, net | 822,650 | 702,038 |
Vehicle pooling costs | 125,001 | 123,725 |
Inventories | 46,764 | 39,973 |
Income taxes receivable | 23,402 | 6,574 |
Prepaid expenses and other assets | 40,983 | 26,310 |
Total current assets | 4,149,129 | 3,262,604 |
Property and equipment, net | 3,073,090 | 2,844,339 |
Operating lease right-of-use assets | 108,859 | 108,139 |
Intangibles, net | 76,786 | 62,702 |
Goodwill | 511,372 | 394,289 |
Other assets | 91,396 | 65,806 |
Total assets | 8,010,632 | 6,737,879 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 506,795 | 440,810 |
Deferred revenue | 28,761 | 26,117 |
Income taxes payable | 7,388 | 4,374 |
Current portion of operating and finance lease liabilities | 20,475 | 21,468 |
Total current liabilities | 563,419 | 492,769 |
Deferred income taxes | 92,014 | 89,492 |
Income taxes payable | 67,455 | 69,193 |
Operating and finance lease liabilities, net of current portion | 91,131 | 88,082 |
Long-term debt and other liabilities | 427 | 10,903 |
Total liabilities | 814,446 | 750,439 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 24,933 | 0 |
Stockholders’ equity: | ||
Preferred stock: $0.0001 par value - 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock: $0.0001 par value - 1,600,000,000 shares authorized; 962,268,657 and 957,344,162 shares issued and outstanding, respectively. | 96 | 96 |
Additional paid-in capital | 1,102,684 | 938,910 |
Accumulated other comprehensive loss | (156,807) | (141,006) |
Retained earnings | 6,225,280 | 5,189,440 |
Total stockholders’ equity | 7,171,253 | 5,987,440 |
Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ 8,010,632 | $ 6,737,879 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Apr. 30, 2024 | Jul. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 962,268,657 | 957,344,162 |
Common stock, shares outstanding (in shares) | 962,268,657 | 957,344,162 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Total service revenues and vehicle sales | $ 1,127,259 | $ 1,021,831 | $ 3,167,824 | $ 2,871,927 |
Operating expenses: | ||||
Yard operations | 438,873 | 378,958 | 1,256,552 | 1,127,232 |
Cost of vehicle sales | 162,881 | 159,443 | 457,596 | 465,282 |
General and administrative | 88,302 | 64,506 | 241,197 | 183,461 |
Total operating expenses | 690,056 | 602,907 | 1,955,345 | 1,775,975 |
Operating income | 437,203 | 418,924 | 1,212,479 | 1,095,952 |
Other income (expense): | ||||
Interest income, net | 36,218 | 17,878 | 102,179 | 36,780 |
Other (expense) income, net | (1,309) | 3,628 | (8,484) | (2,096) |
Total other income | 34,909 | 21,506 | 93,695 | 34,684 |
Income before income taxes | 472,112 | 440,430 | 1,306,174 | 1,130,636 |
Income tax expense | 90,002 | 89,999 | 266,005 | 240,680 |
Net income | 382,110 | 350,431 | 1,040,169 | 889,956 |
Less: Net income/(loss) attributable to redeemable noncontrolling interest | (181) | 0 | (284) | 0 |
Net income attributable to Copart, Inc. | $ 382,291 | $ 350,431 | $ 1,040,453 | $ 889,956 |
Basic net income per common share (in dollars per share) | $ 0.40 | $ 0.37 | $ 1.08 | $ 0.93 |
Weighted average common shares outstanding (in shares) | 961,813 | 953,574 | 960,143 | 952,834 |
Diluted net income per common share (in dollars per share) | $ 0.39 | $ 0.36 | $ 1.07 | $ 0.92 |
Diluted weighted average common shares outstanding (in shares) | 976,445 | 967,380 | 974,226 | 965,436 |
Service revenues | ||||
Total service revenues and vehicle sales | $ 946,630 | $ 847,249 | $ 2,667,911 | $ 2,363,886 |
Vehicle sales | ||||
Total service revenues and vehicle sales | $ 180,629 | $ 174,582 | $ 499,913 | $ 508,041 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Comprehensive income, net of tax: | ||||
Net income | $ 382,110 | $ 350,431 | $ 1,040,169 | $ 889,956 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | (11,528) | 4,048 | (15,801) | 16,906 |
Comprehensive income | 370,582 | 354,479 | 1,024,368 | 906,862 |
Less: Comprehensive income/(loss) attributable to redeemable noncontrolling interest | (181) | 0 | (284) | 0 |
Comprehensive income attributable to Copart, Inc. | $ 370,763 | $ 354,479 | $ 1,024,652 | $ 906,862 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Redeemable Noncontrolling Interest |
Outstanding shares, beginning balance (in shares) at Jul. 31, 2022 | 952,163,896 | ||||||
Stockholders' equity, beginning balance at Jul. 31, 2022 | $ 4,625,599 | $ 96 | $ 838,460 | $ (169,365) | $ 3,956,408 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 245,848 | 245,848 | |||||
Currency translation adjustment | (29,571) | (29,571) | |||||
Exercise of stock options, net of repurchased shares (in shares) | 151,108 | ||||||
Exercise of stock options, net of repurchased shares | 766 | 1,061 | (295) | ||||
Stock-based compensation (in shares) | 76,624 | ||||||
Stock-based compensation | 10,192 | 10,192 | |||||
Outstanding shares, ending balance (in shares) at Oct. 31, 2022 | 952,391,628 | ||||||
Stockholders' equity, ending balance at Oct. 31, 2022 | 4,852,834 | $ 96 | 849,713 | (198,936) | 4,201,961 | ||
Outstanding shares, beginning balance (in shares) at Jul. 31, 2022 | 952,163,896 | ||||||
Stockholders' equity, beginning balance at Jul. 31, 2022 | 4,625,599 | $ 96 | 838,460 | (169,365) | 3,956,408 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | $ 889,956 | ||||||
Currency translation adjustment | 16,906 | ||||||
Outstanding shares, ending balance (in shares) at Apr. 30, 2023 | 954,260,050 | ||||||
Stockholders' equity, ending balance at Apr. 30, 2023 | 5,592,422 | $ 96 | 901,447 | (152,459) | 4,843,338 | ||
Outstanding shares, beginning balance (in shares) at Oct. 31, 2022 | 952,391,628 | ||||||
Stockholders' equity, beginning balance at Oct. 31, 2022 | 4,852,834 | $ 96 | 849,713 | (198,936) | 4,201,961 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 293,677 | 293,677 | |||||
Currency translation adjustment | 42,429 | 42,429 | |||||
Exercise of stock options, net of repurchased shares (in shares) | 446,852 | ||||||
Exercise of stock options, net of repurchased shares | 9,218 | 9,754 | (536) | ||||
Stock-based compensation (in shares) | 60,702 | ||||||
Stock-based compensation | 10,131 | 10,131 | |||||
Shares issued for Employee Stock Purchase Plan (in shares) | 229,114 | ||||||
Shares issued for Employee Stock Purchase Plan | 5,363 | 5,363 | |||||
Outstanding shares, ending balance (in shares) at Jan. 31, 2023 | 953,128,296 | ||||||
Stockholders' equity, ending balance at Jan. 31, 2023 | 5,213,652 | $ 96 | 874,961 | (156,507) | 4,495,102 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 350,431 | 350,431 | 350,431 | ||||
Currency translation adjustment | $ 4,048 | 4,048 | 4,048 | ||||
Exercise of stock options, net of repurchased shares (in shares) | 1,014,218 | ||||||
Exercise of stock options, net of repurchased shares | 14,210 | 16,405 | (2,195) | ||||
Stock-based compensation (in shares) | 117,536 | ||||||
Stock-based compensation | 10,081 | 10,081 | |||||
Outstanding shares, ending balance (in shares) at Apr. 30, 2023 | 954,260,050 | ||||||
Stockholders' equity, ending balance at Apr. 30, 2023 | 5,592,422 | $ 96 | 901,447 | (152,459) | 4,843,338 | ||
Outstanding shares, beginning balance (in shares) at Jul. 31, 2023 | 957,344,162 | 957,344,162 | |||||
Stockholders' equity, beginning balance at Jul. 31, 2023 | $ 5,987,440 | 5,987,440 | $ 96 | 938,910 | (141,006) | 5,189,440 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 332,527 | 332,527 | 5 | ||||
Currency translation adjustment | (36,353) | (36,353) | |||||
Acquisition of noncontrolling interest (in shares) | 2,499,993 | ||||||
Acquisition of noncontrolling interest | 112,075 | 112,075 | 25,217 | ||||
Exercise of stock options, net of repurchased shares (in shares) | 331,358 | ||||||
Exercise of stock options, net of repurchased shares | 7,412 | 8,123 | (711) | ||||
Stock-based compensation (in shares) | 32,761 | ||||||
Stock-based compensation | 8,316 | 8,316 | |||||
Outstanding shares, ending balance (in shares) at Oct. 31, 2023 | 960,208,274 | ||||||
Stockholders' equity, ending balance at Oct. 31, 2023 | 6,411,417 | $ 96 | 1,067,424 | (177,359) | 5,521,256 | 25,222 | |
Outstanding shares, beginning balance (in shares) at Jul. 31, 2023 | 957,344,162 | 957,344,162 | |||||
Stockholders' equity, beginning balance at Jul. 31, 2023 | $ 5,987,440 | 5,987,440 | $ 96 | 938,910 | (141,006) | 5,189,440 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 1,040,169 | ||||||
Currency translation adjustment | $ (15,801) | ||||||
Exercise of stock options, net of repurchased shares (in shares) | 2,047,000 | ||||||
Outstanding shares, ending balance (in shares) at Apr. 30, 2024 | 962,268,657 | 962,268,657 | |||||
Stockholders' equity, ending balance at Apr. 30, 2024 | $ 7,171,253 | 7,171,253 | $ 96 | 1,102,684 | (156,807) | 6,225,280 | 24,933 |
Outstanding shares, beginning balance (in shares) at Oct. 31, 2023 | 960,208,274 | ||||||
Stockholders' equity, beginning balance at Oct. 31, 2023 | 6,411,417 | $ 96 | 1,067,424 | (177,359) | 5,521,256 | 25,222 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 325,635 | 325,635 | (108) | ||||
Currency translation adjustment | 32,080 | 32,080 | |||||
Exercise of stock options, net of repurchased shares (in shares) | 828,799 | ||||||
Exercise of stock options, net of repurchased shares | 3,906 | 5,359 | (1,453) | ||||
Stock-based compensation (in shares) | 119,004 | ||||||
Stock-based compensation | 8,601 | 8,601 | |||||
Shares issued for Employee Stock Purchase Plan (in shares) | 155,419 | ||||||
Shares issued for Employee Stock Purchase Plan | 5,961 | 5,961 | |||||
Outstanding shares, ending balance (in shares) at Jan. 31, 2024 | 961,311,496 | ||||||
Stockholders' equity, ending balance at Jan. 31, 2024 | 6,787,600 | $ 96 | 1,087,345 | (145,279) | 5,845,438 | 25,114 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 382,110 | 382,291 | 382,291 | (181) | |||
Currency translation adjustment | $ (11,528) | (11,528) | (11,528) | ||||
Exercise of stock options, net of repurchased shares (in shares) | 872,081 | ||||||
Exercise of stock options, net of repurchased shares | 4,446 | 6,895 | (2,449) | ||||
Stock-based compensation (in shares) | 85,183 | ||||||
Stock-based compensation | 8,448 | 8,448 | |||||
Shares issued for Employee Stock Purchase Plan (in shares) | (103) | ||||||
Shares issued for Employee Stock Purchase Plan | (4) | (4) | |||||
Outstanding shares, ending balance (in shares) at Apr. 30, 2024 | 962,268,657 | 962,268,657 | |||||
Stockholders' equity, ending balance at Apr. 30, 2024 | $ 7,171,253 | $ 7,171,253 | $ 96 | $ 1,102,684 | $ (156,807) | $ 6,225,280 | $ 24,933 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 1,040,169 | $ 889,956 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, including debt cost | 139,178 | 115,320 |
Allowance for credit loss | 2,513 | 1,480 |
Equity in losses of unconsolidated affiliates | 2,580 | 5,446 |
Stock-based compensation | 26,694 | 30,404 |
Gain on sale of property and equipment | (2,169) | (965) |
Deferred income taxes | (3,093) | (3,236) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (152,564) | (115,098) |
Vehicle pooling costs | (1,784) | (7,300) |
Inventories | (7,316) | 14,870 |
Prepaid expenses, other current and non-current assets | (39,815) | (33,830) |
Operating lease right-of-use assets and lease liabilities | 1,377 | 595 |
Accounts payable and accrued liabilities | 40,305 | 30,314 |
Deferred revenue | 2,660 | 5,516 |
Income taxes receivable | (16,846) | 49,430 |
Income taxes payable | 1,454 | 22,731 |
Net cash provided by operating activities | 1,033,343 | 1,005,633 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (373,104) | (346,524) |
Cash acquired in connection with acquisition | 17,662 | 0 |
Proceeds from sale of property and equipment | 3,453 | 20,509 |
Investment in held to maturity securities | (2,478,505) | 0 |
Proceeds from the sale of held to maturity securities | 1,915,000 | 0 |
Investment in unconsolidated affiliate | (1,000) | (2,744) |
Net cash used in investing activities | (916,494) | (328,759) |
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 20,377 | 27,220 |
Proceeds from the issuance of Employee Stock Purchase Plan shares | 5,957 | 5,363 |
Payments for employee stock-based tax withholdings | (4,613) | (3,026) |
Issuance of principal on revolver facility | 0 | 21,481 |
Principal payments on revolver facility | (10,818) | 0 |
Payments of finance lease obligations | (14) | (18) |
Net cash provided by financing activities | 10,889 | 51,020 |
Effect of foreign currency translation | 4,862 | 2,053 |
Net increase in cash, cash equivalents, and restricted cash | 132,600 | 729,947 |
Cash, cash equivalents, and restricted cash at beginning of period | 957,395 | 1,384,236 |
Cash, cash equivalents, and restricted cash at end of period | 1,089,995 | 2,114,183 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 1,946 | 1,586 |
Income taxes paid, net of refunds | $ 266,400 | $ 171,438 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Apr. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Description of Business Copart, Inc. (“the Company”) provides vehicle sellers with a full range of services to process and sell vehicles over the internet through the Company’s Virtual Bidding Third Generation (“VB3”) internet auction-style sales technology. Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The Company sells principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and directly to the general public. The majority of vehicles sold on behalf of insurance companies are either damaged vehicles deemed a total loss or not economically repairable by the insurance companies or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company offers vehicle sellers a full range of services that expedite each stage of the vehicle sales process, minimize administrative and processing costs and maximize the ultimate sales price through the online auction process. In the United States (“U.S.”), Canada, Brazil, the Republic of Ireland, Finland, the United Arab Emirates (“U.A.E.”), Oman, and Bahrain, the Company sells vehicles primarily as an agent and derives revenue primarily from auction and auction related sales transaction fees charged for vehicle remarketing services as well as fees for services subsequent to the auction, such as delivery and storage. In the United Kingdom (“U.K.”), Germany, and Spain, the Company operates both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for its own account. In Germany and Spain, the Company also derives revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured. Principles of Consolidation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments of a normal recurring nature considered necessary for fair presentation of the Company’s financial position as of April 30, 2024 and July 31, 2023, its consolidated statements of income, comprehensive income, changes in redeemable noncontrolling interests and stockholders’ equity for the three and nine months ended April 30, 2024 and 2023, and its cash flows for the nine months ended April 30, 2024 and 2023. Interim results for the three and nine months ended April 30, 2024 are not necessarily indicative of the results that may be expected for any future period, or for the entire year ending July 31, 2024. These consolidated financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023. Certain prior year amounts have been reclassified to conform to current year presentation. The consolidated financial statements of the Company include the accounts of the parent company and its wholly-owned subsidiaries. Significant intercompany transactions and balances have been eliminated in consolidation. On October 3, 2022, the Company’s Board of Directors approved a two-for-one common stock split effected in the form of a stock dividend subject to and contingent upon, among other things, obtaining stockholder approval of an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of common stock. On October 31, 2022, the Company’s stockholders approved such increase at a special meeting of stockholders. As such, on November 3, 2022, the Company effected the two-for-one stock dividend to stockholders of record as of October 6, 2022. On August 4, 2023, the Company’s Board of Directors approved a two-for-one common stock split effected in the form of a stock dividend entitling each stockholder of record to receive one additional share of common stock for every one share owned. On August 21, 2023, the Company effected the two-for-one stock dividend to stockholders of record as of August 14, 2023. Both stock dividends increased the number of shares of common stock outstanding and all share and per share amounts have been retroactively adjusted for the stock dividend, as of the date earliest presented in these financial statements to conform to current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include, but are not limited to, vehicle pooling costs; income taxes; stock-based compensation; and contingencies. Actual results may differ from these estimates. Revenue Recognition The Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. Service revenue and vehicle sales revenue are recognized at the date the vehicles are sold at auction, excluding annual registration fees. Costs to prepare the vehicles for auction, including inbound transportation costs and titling fees, are deferred and recognized at the time of revenue recognition at auction. The Company’s disaggregation between service revenues and vehicle sales at the segment level reflects how the nature, timing, amount and uncertainty of its revenues and cash flows are impacted by economic factors. The Company reports sales taxes on relevant transactions on a net basis in the Company’s consolidated results of operations, and therefore does not include sales taxes in revenues or costs. Service revenues The Company’s service revenue consists of auction and auction related sales transaction fees charged for vehicle remarketing services. Within this revenue category, the Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. These auction and auction related services may include a combination of vehicle purchasing fees, vehicle listing fees, and vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price driven fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle; transportation fees for the cost of transporting the vehicle to or from the Company’s facility; title processing and preparation fees; vehicle storage fees; bidding fees; and vehicle loading fees. These services are not distinct within the context of the contract. Accordingly, revenue for these services is recognized when the single performance obligation is satisfied at the completion of the auction process. The Company does not take ownership of these consigned vehicles, which are stored at the Company’s facilities located throughout the U.S. and at its international locations. These fees are recognized as net revenue (not gross vehicle selling price) at the time of auction in the amount of such fees charged. The Company has a separate performance obligation related to providing access to its online auction platform as the Company charges members an annual registration fee for the right to participate in its online auctions and access the Company’s bidding platform. This fee is recognized ratably over the term of the arrangement, generally one year, as each day of access to the online auction platform represents the best depiction of the transfer of the service. No provision for returns has been established, as all sales are final with no right of return or warranty, except for separately identified vehicles subject to the arbitration policy, although the Company provides for credit loss expense in the case of non-performance by its buyers or sellers. Three months ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Service revenues United States 830,680 $ 752,077 2,349,241 $ 2,109,467 International 115,950 95,172 318,670 254,419 Total service revenues $ 946,630 $ 847,249 $ 2,667,911 $ 2,363,886 Vehicle sales Certain vehicles are purchased and remarketed on the Company’s own behalf. The Company has a single performance obligation related to the sale of these vehicles, which is the completion of the online auction process. Vehicle sales revenue is recognized on the auction date. As the Company acts as a principal in vehicle sales transactions, the gross sales price at auction is recorded as revenue. Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Vehicle sales United States 88,236 $ 81,681 241,307 $ 261,069 International 92,393 92,901 258,606 246,972 Total vehicle sales $ 180,629 $ 174,582 $ 499,913 $ 508,041 Contract assets The Company capitalizes certain contract assets related to obtaining a contract, where the amortization period for the related asset is greater than one year. These assets are amortized over the expected life of the customer relationship. Contract assets are classified as current or long-term other assets, based on the timing of when the Company expects to recognize the related revenues and are amortized as an offset to the associated revenues on a straight-line basis. The Company assesses these costs for impairment at least quarterly and as “triggering” events occur that indicate it is more likely than not that an impairment exists. The contract asset costs where the amortization period for the related asset is one year or less are expensed as incurred and recorded within general and administrative expenses in the accompanying consolidated statements of income. The change in the carrying amount of contract assets was as follows (In thousands): Balance as of July 31, 2023 $ 25,726 Capitalized contract assets during the period 32,260 Costs amortized during the period (6,451) Effect of foreign currency exchange rates (65) Balance as of April 30, 2024 $ 51,470 Vehicle Pooling Costs The Company defers costs that relate directly to the fulfillment of its contracts associated with vehicles consigned to and received by the Company, but not sold as of the end of the period. The Company quantifies the deferred costs using a calculation that includes the number of vehicles at its facilities at the beginning and end of the period, the number of vehicles sold during the period, and an allocation of certain yard operation costs of the period. The primary expenses allocated and deferred are inbound transportation costs, titling fees, certain facility costs, labor, and vehicle processing. If the allocation factors change, then yard operation expenses could increase or decrease correspondingly in the future. These costs are expensed into yard operations expenses as vehicles are sold in subsequent periods on an average cost basis. Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiaries into the U.S. dollar reporting currency. The British pound, Canadian dollar, Brazilian real, European Union euro, U.A.E. dirham, Omani rial, and Bahraini dinar are the functional currencies of the Company’s foreign subsidiaries as they are the primary currencies within the economic environment in which each subsidiary operates. The original equity investment in the respective subsidiaries is translated at historical rates. Assets and liabilities of the respective subsidiary’s operations are translated into U.S. dollars at period-end exchange rates, and revenues and expenses are translated into U.S. dollars at average exchange rates in effect during each reporting period. Adjustments resulting from the translation of each subsidiary’s financial statements are reported in other comprehensive income. The cumulative effects of foreign currency exchange rate fluctuations were as follows (In thousands): Cumulative loss on foreign currency translation as of July 31, 2022 $ (169,365) Gain (Loss) on foreign currency translation 28,359 Cumulative loss on foreign currency translation as of July 31, 2023 $ (141,006) Gain (Loss) on foreign currency translation (15,801) Cumulative loss on foreign currency translation as of April 30, 2024 $ (156,807) Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in U.S. GAAP. In accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , the Company considers fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants under current market conditions. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level I Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level II Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level III Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate. The amounts recorded for financial instruments in the Company’s consolidated financial statements, which included cash, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximated their fair values as of April 30, 2024 and July 31, 2023, due to the short-term nature of those instruments and are classified within Level II of the fair value hierarchy. Cash equivalents are classified within Level II of the fair value hierarchy because they are valued using quoted market prices of the underlying investments. Redeemable Noncontrolling Interest Redeemable noncontrolling interests represent a 20% noncontrolling ownership in Purple Wave, Inc., a consolidated subsidiary of the Company. Redeemable noncontrolling interests are presented outside of permanent equity on the consolidated balance sheet as they are redeemable by the holders of the noncontrolling interest and the redemption is outside the control of the Company. The redeemable noncontrolling interests were initially recorded at their issuance date fair value of $25.2 million. We record the carrying amount of the redeemable noncontrolling interests at the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income or loss and its share of other comprehensive income or loss, and dividends or (ii) the redemption value. For interests that are redeemable in the future, we recognize changes in the redemption value immediately as they occur. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less at the time of purchase to be cash equivalents. Cash, cash equivalents, and restricted cash include cash held in checking, U.S. Treasury Bills, and money market accounts. The Company periodically invests its excess cash in money market funds and U.S. Treasury Bills. The Company’s cash, cash equivalents, and restricted cash are placed with high credit quality financial institutions. The Company has held to maturity securities comprised of U.S. Treasury Bills. These investments are classified as held to maturity as the Company has the intent and ability to hold these investments until they mature. The held to maturity securities mature within the next 12 months. The table below shows the amortized cost, associated gross unrealized gains and associated fair value of held to maturity securities. (In thousands) April 30, 2024 Amortized Cost Gross Unrealized Gains Fair Value Investment in held to maturity securities $ 2,000,334 $ 18,075 $ 2,018,409 (In thousands) July 31, 2023 Amortized Cost Gross Unrealized Gains Fair Value Investment in held to maturity securities $ 1,406,589 $ 8,314 $ 1,414,903 |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2024 Transactions On October 6, 2023, the Company acquired an 80% controlling ownership in Purple Wave, Inc., an online offsite heavy equipment auction company. The Company acquired the controlling ownership by issuing 2.5 million shares of the Company’s common stock which was equal to the $108.0 million acquisition price divided by the 10-day volume average weighted price of the Company’s common stock prior to closing. Under U.S. GAAP, the fair value of the merger consideration paid for Purple Wave, Inc. was $112.1 million and was determined on the basis of the closing price of the Company’s common stock on October 6, 2023. Substantially all of the merger consideration has preliminarily been allocated to intangible assets, including goodwill. The fair value of the 20% redeemable noncontrolling interest in Purple Wave, Inc. was $25.2 million, and was estimated by applying the transaction method. Refer to Note 1 – Summary of Significant Accounting Policies for more details regarding the redeemable noncontrolling interests. Acquisition costs reflected in the general administrative line on the income statement were $1.2 million. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Apr. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net consisted of: (In thousands) April 30, 2024 July 31, 2023 Advance charges receivable $ 616,324 $ 537,261 Trade accounts receivable 193,334 157,083 Other receivables 25,324 16,334 834,982 710,678 Less: Allowance for credit loss (12,332) (8,640) Accounts receivable, net $ 822,650 $ 702,038 Advance charges receivable represents amounts paid to third parties on behalf of insurance companies for which the Company will be reimbursed when the vehicle is sold. As advance charges are recovered within one year, the Company has not adjusted the amount of consideration received from the customer for a significant financing component. Trade accounts receivable includes fees and gross auction proceeds to be collected from insurance companies and buyers. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Apr. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: (In thousands) April 30, 2024 July 31, 2023 Land $ 1,972,821 $ 1,812,001 Buildings and improvements 1,442,039 1,339,820 Transportation and other equipment 560,433 490,136 Office furniture and equipment 95,643 91,031 Software 98,667 89,575 4,169,603 3,822,563 Less: Accumulated depreciation and amortization (1,096,513) (978,224) Property and equipment, net $ 3,073,090 $ 2,844,339 |
Leases
Leases | 9 Months Ended |
Apr. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has both lessee and lessor arrangements. The Company determines whether a contract is or contains a lease at the inception of the contract or at any subsequent modification. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment. Depending on the terms, leases are classified as either operating or finance leases if the Company is the lessee, or as operating, sales-type, or direct financing leases if the Company is the lessor. Certain of the Company’s lessee and lessor leases have renewal options to extend the leases for additional periods at the Company’s discretion. Leases - Lessee The Company leases certain facilities and certain equipment under non-cancelable finance and operating leases, which are recorded as right-of-use assets and lease liabilities. Certain leases provide the Company with either a right of first refusal to acquire or an option to purchase a facility at fair value. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the right-of-use asset and the lease liabilities. The effects of these escalation clauses or concessions have been reflected in lease expense on a straight-line basis over the expected lease term and any variable lease payments subsequent to establishing the lease liability are expensed as incurred. The lease term commences on the date when the Company has the right to control the use of the leased property, which is typically before lease payments are due under the terms of the lease. Certain of the Company’s leases have renewal periods up to 40 years, exercisable at the Company’s option, and generally require the Company to pay property taxes, insurance and maintenance costs, in addition to the lease payments. At lease inception, the Company includes all renewals or option periods that are reasonably certain to exercise when determining the expected lease term, as failure to renew the lease would impose an economic penalty. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the expected lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date, as rates are not implicitly stated in the Company’s leases. Components of lease expense were as follows: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Operating lease expense $ 6,333 $ 6,503 $ 19,445 $ 20,050 Finance lease expense: Amortization of right-of-use assets 3 5 13 17 Interest on finance lease liabilities — 1 — 1 Short-term lease expense 504 1,282 2,829 3,585 Variable lease expense 388 305 960 858 Total lease expense $ 7,228 $ 8,096 $ 23,247 $ 24,511 Supplemental cash flow information related to leases as of April 30, 2024 was as follows: Nine Months Ended April 30, (In thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 18,085 $ 19,507 Operating cash flows related to finance leases — 1 Financing cash flows related to finance leases 14 18 Right-of-use assets obtained in exchange for new operating lease liabilities 23,972 12,872 Right-of-use assets obtained in exchange for new finance lease liabilities — — Leases - Lessor The Company’s lessor arrangements include certain facilities and various land locations, of which each qualifies as an operating lease. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the straight-line rental income. The effects of these escalation clauses or concessions have been reflected in lease payments receivable on a straight-line basis over the expected lease term and any variable lease income subsequent to establishing the receivable will be recognized as earned. The cost of the leased space as of April 30, 2024 and July 31, 2023 was $50.3 million and $51.2 million, respectively. The accumulated depreciation associated with the leased assets as of April 30, 2024 and July 31, 2023 was $4.4 million and $3.8 million, respectively. Both the leased assets and accumulated depreciation are included in Property and equipment, net on the consolidated balance sheet. Rental income from these operating leases was $4.4 million and $4.0 million for the three months ended April 30, 2024 and 2023, respectively, and $13.0 million and $12.3 million for the nine months ended April 30, 2024 and 2023, respectively, and is included within Service revenues on the consolidated statements of income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth amortizable intangible assets by major asset class: (In thousands) April 30, 2024 July 31, 2023 Amortized intangibles: Supply contracts and customer relationships $ 83,589 $ 84,614 Trade names 18,910 19,304 Licenses and databases 16,562 682 Indefinite-lived intangibles: Trade names 16,718 7,443 Accumulated amortization (58,993) (49,341) Intangibles, net $ 76,786 $ 62,702 Aggregate amortization expense on amortizable intangible assets was $3.3 million and $1.9 million for the three months ended April 30, 2024 and 2023, respectively, and $10 million and $5.6 million for the nine months ended April 30, 2024 and 2023, respectively. The change in the carrying amount of goodwill was as follows: (In thousands) Balance as of July 31, 2023 $ 394,289 Acquisitions during the period 120,634 Effect of foreign currency exchange rates (3,551) Balance as of April 30, 2024 $ 511,372 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Credit Agreement On December 21, 2021, the Company entered into a Second Amended and Restated Credit Agreement by and among the Company, certain subsidiaries of the Company party thereto, the lenders party thereto, and Bank of America, N.A., as administrative agent (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement amends and restates certain terms of the First Amended and Restated Credit Agreement, dated as of July 21, 2020, by and among the Company, the lenders party thereto, and Bank of America, N.A., as administrative agent (as successor in interest to Wells Fargo Bank, National Association) (the “Existing Credit Agreement”). The Second Amended and Restated Credit Agreement provides for, among other things, (a) an increase in the secured revolving credit commitments by $200.0 million, bringing the aggregate principal amount of the revolving credit commitments under the Second Amended and Restated Credit Agreement (the “Revolving Loan Facility”) to $1,250.0 million, (b) an increase in the letter of credit sublimit from $60.0 million to $100.0 million, (c) addition of Copart UK Limited, CPRT GmbH and Copart Autos España, S.L.U., each a wholly-owned direct or indirect foreign subsidiary of the Company, as borrowers, (d) addition of the ability to borrow under the Second and Amended and Restated Credit Agreement in certain foreign currencies including Pounds Sterling, Euro and Canadian Dollars, (e) extension of the maturity date of the revolving credit facility under the Existing Credit Agreement from July 21, 2023 to December 21, 2026, (f) replacing the LIBOR interest rate applicable to U.S. Dollar denominated borrowings with a SOFR-based interest rate, and (g) changing the pricing levels with respect to the revolving loans as further described below. The Second and Amended and Restated Credit Agreement provides for the Revolving Loan Facility of $1,250.0 million maturing on December 21, 2026 (including up to $550.0 million equivalent of borrowings in Pounds Sterling, Euro and Canadian Dollars) with a $150.0 million equivalent sub-facility available to CPRT GmbH, a $150.0 million equivalent sub-facility available to Copart Autos España, S.L.U. and a $250.0 million equivalent sub-facility available to Copart UK Limited. The proceeds may be used for general corporate purposes, including working capital and capital expenditures, potential share repurchases, acquisitions, or other investments relating to the Company’s expansion strategies in domestic and international markets. Borrowings under the Second Amended and Restated Credit Agreement bear interest based on, at our option, either (1) the applicable fixed rate plus 1.00% to 1.75% or (2) the daily rate plus 0.0% to 0.75%, in each case, depending on the Company consolidated total net leverage ratio. Additionally, the unused revolving commitments under the Second Amended and Restated Credit Agreement are subject to the payment of a customary commitment fee at a range of 0.175% to 0.275%, depending on the Company consolidated total net leverage ratio. The applicable fixed rates described above with respect to borrowings denominated in (1) U.S. Dollars is SOFR plus certain “spread adjustments” described in the Second Amended and Restated Credit Agreement, (2) Pounds Sterling is SONIA plus certain “spread adjustments” described in the Second Amended and Restated Credit Agreement, (3) Euro is EURIBOR, and (4) Canadian Dollars is CDOR. The Company had $0.0 million and $11.0 million outstanding borrowings under the Revolving Loan Facility as of April 30, 2024 and July 31, 2023, respectively. The Company’s obligations under the Second Amended and Restated Credit Agreement are guaranteed by certain of the Company’s domestic subsidiaries meeting materiality thresholds set forth in the Second Amended and Restated Credit Agreement. Such obligations, including the guaranties, are secured by substantially all of the assets of the Company and the assets of the subsidiary guarantors pursuant to a Security Documents Confirmation Agreement as part of the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into transactions with affiliates, pay dividends, or make distributions on and repurchase stock, in each case subject to certain exceptions. The Company is also required to maintain compliance, measured at the end of each fiscal quarter, with a consolidated total net leverage ratio and a consolidated interest coverage ratio. The Second Amended and Restated Credit Agreement contains no restrictions on the payment of dividends and other restricted payments, as defined, as long as (1) the consolidated total net leverage ratio, as defined, both before and after giving effect to any such dividend or restricted payment on a pro forma basis, is less than 3.25:1, in an unlimited amount, (2) if clause (1) is not available, so long as the consolidated total net leverage ratio both before and after giving effect to any such dividend on a pro forma basis is less than 3.50:1, in an aggregate amount not to exceed the available amount, as defined, and (3) if clauses (1) and (2) are not available, in an aggregate amount not to exceed $50.0 million; provided, that, minimum liquidity, as defined, shall be not less than $75.0 million both before and after giving effect to any such dividend or restricted payment. As of April 30, 2024, the consolidated total net leverage ratio was (1.61):1. Minimum liquidity available as of April 30, 2024 was $4.3 billion. Accordingly, the Company does not believe that the provisions of the Second Amended and Restated Credit Agreement represent a significant restriction to its ability to pay dividends or to the successful future operations of the business. The Company has not paid a cash dividend since becoming a public company in 1994. The Company was in compliance with all covenants related to the Second Amended and Restated Credit Agreement as of April 30, 2024. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the carrying values and fair values of the Company’s financial instruments that were not carried at fair value in the consolidated balance sheets: April 30, 2024 July 31, 2023 (In thousands) Carrying Value Total Fair Value Total Carrying Value Total Fair Value Total Assets Cash equivalents $ 734,005 $ 736,806 $ 674,980 $ 677,515 Investment in held to maturity securities 2,000,334 2,018,409 1,406,589 1,414,903 Total Assets $ 2,734,339 $ 2,755,215 $ 2,081,569 $ 2,092,418 Liabilities Long-term fixed rate debt, including current portion $ — $ — $ 11,006 $ 11,006 Total Liabilities $ — $ — $ 11,006 $ 11,006 The Company has investments in U.S. Treasury Bills some of which mature over a period greater than 90 days and are classified as short-term investments. The U.S. Treasury Bills are carried at amortized cost and classified as held to maturity as the Company has the intent and the ability to hold them until they mature. The carrying value of the U.S. Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Company’s consolidated statement of income. The U.S. Treasury Bills classified within Level I of the fair value hierarchy. During the nine months ended April 30, 2024, no transfers were made between any levels within the fair value hierarchy. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The table below reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Weighted average common shares outstanding 961,813 953,574 960,143 952,834 Effect of dilutive securities 14,632 13,806 14,083 12,602 Weighted average common and dilutive potential common shares outstanding 976,445 967,380 974,226 965,436 There were no material adjustments to net income required in calculating diluted net income per share. Excluded from the dilutive earnings per share calculation were 631,147 and 3,451,940 options to purchase the Company’s common stock for the three months ended April 30, 2024 and 2023, respectively, and 1,937,294 and 15,946,536 options to purchase the Company’s common stock for the nine months ended April 30, 2024 and 2023, respectively, because their inclusion would have been anti-dilutive. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company recognizes compensation expense for stock option awards without a market condition on a straight-line basis over the requisite service period of the award. The following is a summary of activity for the Company’s stock options for the nine months ended April 30, 2024: (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2023 17,825 $ 15.47 4.67 $ 512,045 Grants of options 1,031 49.60 Exercises (2,047) 10.01 Forfeitures or expirations — Outstanding as of April 30, 2024 16,809 $ 18.23 4.52 $ 606,535 Exercisable as of April 30, 2024 14,279 $ 14.89 3.87 $ 562,931 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock. The number of options that were in-the-money was 22,804,605 at April 30, 2024. The Company grants option awards to certain executives that contain service and market conditions. The options will become exercisable over five years, subject to continued service by the executive, with 20% vesting on the first anniversary of the grant date and the balance vesting monthly over the subsequent four years. Separate and apart from the time-based vesting schedule, the options are also subject to a market condition requiring the trading price of the Company common stock on the Nasdaq Global Select Market to be greater than or equal to 125% of the exercise price of the options, determined both (i) at the time of any exercise, and (ii) based on the closing price on each of the twenty consecutive trading days preceding the date of any exercise. The exercise price of the options is equivalent to the closing price of the Company’s common stock on the grant date. The fair value of the awards is determined at the grant date using either Lattice or Monte Carlo model, risk-free interest rates ranging from 0.71% to 4.37%, estimated volatility ranging from 25.2% to 29.8%, and no expected dividends. The total estimated compensation expense to be recognized by the Company over the five-year service period for these options is $50.1 million and will be recognized using the accelerated attribution method over each vesting tranche of the award. The Company recognized $5.9 million and $9.7 million in compensation expense related to these awards in the nine months ended April 30, 2024 and 2023, respectively. The following is a summary of activity for the Company’s stock option awards subject to market conditions for the nine months ended April 30, 2024: (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2023 5,920 $ 24.37 7.43 $ 117,389 Grants of options 75 50.89 Exercises — — Forfeitures or expirations — — Outstanding as of April 30, 2024 5,995 $ 24.70 6.72 $ 177,526 Exercisable as of April 30, 2024 3,864 $ 23.14 6.45 $ 120,445 The table below sets forth the stock-based compensation recognized by the Company for stock options, restricted stock, and restricted unit awards: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 General and administrative $ 7,201 $ 7,830 $ 21,693 $ 25,366 Yard operations 1,817 2,251 5,001 5,038 Total stock-based compensation $ 9,018 $ 10,081 $ 26,694 $ 30,404 Additionally, Purple Wave, Inc. maintains an equity-based compensation plan for certain executives. Compensation cost attributable to Purple Wave, Inc. equity-based compensation plan was $1.3 million and $0 included in stock based compensation for the nine months ended April 30, 2024 and 2023, respectively. The Company’s restricted stock awards (“RSA”) and restricted stock unit awards (“RSU”), and performance stock units (“PSU”) have generally been issued with vesting periods ranging from two years to five years. RSA and RSU vest solely on service conditions while PSU will vest over five years, when and if certain financial performance targets are met. Accordingly, the Company recognizes compensation expense for RSA and RSU awards on a straight-line basis over the requisite service period of the award. Compensation expense for PSU is recognized on an accelerated attribution method when the achievement of certain financial performance targets appear probable and is recognized over the remaining requisite service period. The following is a summary of activity for the Company’s RSA, RSU and PSU for the nine months ended April 30, 2024: (In thousands, except per share data) Restricted and Performance Shares Weighted Average Grant Date Fair Value Outstanding as of July 31, 2023 800 $ 31.77 Grants 1,382 51.73 Vested (278) 31.07 Forfeitures or expirations (13) 34.02 Outstanding as of April 30, 2024 1,891 $ 46.45 |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Stock Repurchases | Stock Repurchases On September 22, 2011, the Company’s Board of Directors approved a 320 million share increase in the stock repurchase program, bringing the total current authorization to 784 million shares. The repurchases may be effected through solicited or unsolicited transactions in the open market or in privately negotiated transactions. No time limit has been placed on the duration of the stock repurchase program. Subject to applicable securities laws, such repurchases will be made at such times and in such amounts as the Company deems appropriate and may be discontinued at any time. The Company did not repurchase any shares of its common stock under the program during the nine months ended April 30, 2024 or 2023. As of April 30, 2024, the total number of shares repurchased under the program was 458 million, and subject to applicable limitations under Delaware law, 326 million shares were available for repurchase under the program. |
Income Taxes
Income Taxes | 9 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rates were 20.4% and 21.3% for the nine months ended April 30, 2024 and 2023, respectively, which differs from the U.S. statutory rate of 21% primarily due to state income taxes, deduction for Foreign Derived Intangible Income, and excess tax benefits associated with equity-based compensation. The Company applies the provisions of the accounting standard for uncertain tax positions to its income taxes. For benefits to be realized, a tax position must be more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Apr. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pending In March 2023 the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), which allows the option for reporting entities to elect to account for their tax equity investments, using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company’s adoption of ASU 2023-02 is not expected to have a material impact on the Company’s consolidated results of operations and financial position. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. On December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject to threats of litigation and is involved in actual litigation and damage claims arising in the ordinary course of business, such as actions related to injuries, property damage, contract disputes, and handling or disposal of vehicles. Except as otherwise noted in this Note 13, there are no material pending legal proceedings to which the Company is a party, or with respect to which any of the Company’s property is subject. The Company provides for an accrual for matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of any such matters on the Company’s future consolidated results of operations and cash flows cannot be predicted because any such effect depends on future results of operations and the amount and timing of the resolution of any such matters. The Company believes that any ultimate liability regarding existing litigation and claims would not have a material effect on its consolidated results of operations, financial position, or cash flows. However, legal and regulatory proceedings are inherently unpredictable, and the amount of the liabilities associated with claims, if any, cannot be determined with certainty. If one or more matters were resolved against us for amounts in excess of the Company’s expectations, the impact on the Company’s consolidated results of operations, financial position, or cash flow could be material. The Company maintains insurance which may or may not provide coverage for claims made against the Company. There is no assurance that there will be insurance coverage available when and if needed. Additionally, the insurance that the Company carries requires that the Company pay for costs and/or claims exposure up to the amount of the insurance deductibles. The U.S. Department of Justice, Consumer Protection Branch (DOJ) is conducting an ongoing investigation into potential violations by the Company of certain money laundering laws related to its practices and procedures for preventing and detecting money-laundering activity by its members. In connection with this investigation, the Company received a letter from the DOJ in October 2023 in which they indicated the Company may have exposure as a result of potential violations to such money laundering statutes and regulations. The Company is cooperating with the DOJ’s investigation. At this time, we are unable to predict the duration, scope, or result of any potential governmental, criminal, or civil proceeding that may result, the imposition of fines and penalties, and/or other remedies, and as a result, are unable to predict the range of possible loss. |
Segments and Other Geographic R
Segments and Other Geographic Reporting | 9 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Segments and Other Geographic Reporting | Segments and Other Geographic Reporting The Company’s U.S. and International regions are considered two separate operating segments and are disclosed as two reportable segments. The segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results, including total revenues and operating income. The following table presents financial information by segment: Three Months Ended April 30, 2024 Three Months Ended April 30, 2023 (In thousands) United States International Total United States International Total Service revenues 830,680 115,950 $ 946,630 $ 752,077 $ 95,172 $ 847,249 Vehicle sales 88,236 92,393 180,629 81,681 92,901 174,582 Total service revenues and vehicle sales 918,916 208,343 1,127,259 833,758 188,073 1,021,831 Yard operations 369,577 69,296 438,873 323,426 55,532 378,958 Cost of vehicle sales 81,312 81,569 162,881 74,951 84,492 159,443 General and administrative 75,096 13,206 $ 88,302 50,590 13,916 64,506 Operating income $ 392,931 $ 44,272 $ 437,203 $ 384,791 $ 34,133 $ 418,924 Depreciation and amortization $ 43,477 $ 7,256 $ 50,733 $ 32,918 $ 4,453 $ 37,371 Capital expenditures and acquisitions 72,186 15,629 87,815 79,633 10,172 89,805 Nine Months Ended April 30, 2024 Nine Months Ended April 30, 2023 (In thousands) United States International Total United States International Total Service revenues 2,349,241 318,670 $ 2,667,911 $ 2,109,467 $ 254,419 $ 2,363,886 Vehicle sales 241,307 258,606 499,913 261,069 246,972 508,041 Total service revenues and vehicle sales 2,590,548 577,276 3,167,824 2,370,536 501,391 2,871,927 Yard operations 1,062,859 193,693 1,256,552 973,067 154,165 1,127,232 Cost of vehicle sales 223,462 234,134 457,596 246,431 218,851 465,282 General and administrative 201,667 39,530 241,197 147,456 36,005 183,461 Operating income $ 1,102,560 $ 109,919 $ 1,212,479 $ 1,003,582 $ 92,370 $ 1,095,952 Depreciation and amortization $ 118,756 $ 20,402 $ 139,158 $ 101,974 $ 12,869 $ 114,843 Capital expenditures and acquisitions 372,178 95,339 467,517 305,344 41,180 346,524 April 30, 2024 July 31, 2023 (In thousands) United States International Total United States International Total Total assets $ 7,034,960 $ 975,672 $ 8,010,632 $ 5,825,064 $ 912,815 $ 6,737,879 Goodwill 390,903 120,469 511,372 270,269 124,020 394,289 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 382,291 | $ 350,431 | $ 1,040,453 | $ 889,956 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Apr. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business Copart, Inc. (“the Company”) provides vehicle sellers with a full range of services to process and sell vehicles over the internet through the Company’s Virtual Bidding Third Generation (“VB3”) internet auction-style sales technology. Vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The Company sells principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and directly to the general public. The majority of vehicles sold on behalf of insurance companies are either damaged vehicles deemed a total loss or not economically repairable by the insurance companies or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company offers vehicle sellers a full range of services that expedite each stage of the vehicle sales process, minimize administrative and processing costs and maximize the ultimate sales price through the online auction process. In the United States (“U.S.”), Canada, Brazil, the Republic of Ireland, Finland, the United Arab Emirates (“U.A.E.”), Oman, and Bahrain, the Company sells vehicles primarily as an agent and derives revenue primarily from auction and auction related sales transaction fees charged for vehicle remarketing services as well as fees for services subsequent to the auction, such as delivery and storage. In the United Kingdom (“U.K.”), Germany, and Spain, the Company operates both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for its own account. In Germany and Spain, the Company also derives revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured. |
Principles of Consolidation | Principles of Consolidation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments of a normal recurring nature considered necessary for fair presentation of the Company’s financial position as of April 30, 2024 and July 31, 2023, its consolidated statements of income, comprehensive income, changes in redeemable noncontrolling interests and stockholders’ equity for the three and nine months ended April 30, 2024 and 2023, and its cash flows for the nine months ended April 30, 2024 and 2023. Interim results for the three and nine months ended April 30, 2024 are not necessarily indicative of the results that may be expected for any future period, or for the entire year ending July 31, 2024. These consolidated financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023. Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition The Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. Service revenue and vehicle sales revenue are recognized at the date the vehicles are sold at auction, excluding annual registration fees. Costs to prepare the vehicles for auction, including inbound transportation costs and titling fees, are deferred and recognized at the time of revenue recognition at auction. The Company’s disaggregation between service revenues and vehicle sales at the segment level reflects how the nature, timing, amount and uncertainty of its revenues and cash flows are impacted by economic factors. The Company reports sales taxes on relevant transactions on a net basis in the Company’s consolidated results of operations, and therefore does not include sales taxes in revenues or costs. Service revenues The Company’s service revenue consists of auction and auction related sales transaction fees charged for vehicle remarketing services. Within this revenue category, the Company’s primary performance obligation is the auctioning of consigned vehicles through an online auction process. These auction and auction related services may include a combination of vehicle purchasing fees, vehicle listing fees, and vehicle selling fees that can be based on a predetermined percentage of the vehicle sales price, tiered vehicle sales price driven fees, or at a fixed fee based on the sale of each vehicle regardless of the selling price of the vehicle; transportation fees for the cost of transporting the vehicle to or from the Company’s facility; title processing and preparation fees; vehicle storage fees; bidding fees; and vehicle loading fees. These services are not distinct within the context of the contract. Accordingly, revenue for these services is recognized when the single performance obligation is satisfied at the completion of the auction process. The Company does not take ownership of these consigned vehicles, which are stored at the Company’s facilities located throughout the U.S. and at its international locations. These fees are recognized as net revenue (not gross vehicle selling price) at the time of auction in the amount of such fees charged. The Company has a separate performance obligation related to providing access to its online auction platform as the Company charges members an annual registration fee for the right to participate in its online auctions and access the Company’s bidding platform. This fee is recognized ratably over the term of the arrangement, generally one year, as each day of access to the online auction platform represents the best depiction of the transfer of the service. No provision for returns has been established, as all sales are final with no right of return or warranty, except for separately identified vehicles subject to the arbitration policy, although the Company provides for credit loss expense in the case of non-performance by its buyers or sellers. Three months ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Service revenues United States 830,680 $ 752,077 2,349,241 $ 2,109,467 International 115,950 95,172 318,670 254,419 Total service revenues $ 946,630 $ 847,249 $ 2,667,911 $ 2,363,886 Vehicle sales Certain vehicles are purchased and remarketed on the Company’s own behalf. The Company has a single performance obligation related to the sale of these vehicles, which is the completion of the online auction process. Vehicle sales revenue is recognized on the auction date. As the Company acts as a principal in vehicle sales transactions, the gross sales price at auction is recorded as revenue. Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Vehicle sales United States 88,236 $ 81,681 241,307 $ 261,069 International 92,393 92,901 258,606 246,972 Total vehicle sales $ 180,629 $ 174,582 $ 499,913 $ 508,041 Contract assets |
Vehicle Pooling Costs | Vehicle Pooling Costs |
Foreign Currency Translation | Foreign Currency Translation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value in U.S. GAAP. In accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , the Company considers fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants under current market conditions. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level I Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level II Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level III Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest Redeemable noncontrolling interests represent a 20% noncontrolling ownership in Purple Wave, Inc., a consolidated subsidiary of the Company. Redeemable noncontrolling interests are presented outside of permanent equity on the consolidated balance sheet as they are redeemable by the holders of the noncontrolling interest and the redemption is outside the control of the Company. The redeemable noncontrolling interests were initially recorded at their issuance date fair value of $25.2 million. We record the carrying amount of the redeemable noncontrolling interests at the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income or loss and its share of other comprehensive income or loss, and dividends or (ii) the redemption value. For interests that are redeemable in the future, we recognize changes in the redemption value immediately as they occur. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less at the time of purchase to be cash equivalents. Cash, cash equivalents, and restricted cash include cash held in checking, U.S. Treasury Bills, and money market accounts. The Company periodically invests its excess cash in money market funds and U.S. Treasury Bills. The Company’s cash, cash equivalents, and restricted cash are placed with high credit quality financial institutions. |
Segments and Other Geographic Reporting | The Company’s U.S. and International regions are considered two separate operating segments and are disclosed as two reportable segments. The segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results, including total revenues and operating income. |
Recent Accounting Pronouncements | In March 2023 the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), which allows the option for reporting entities to elect to account for their tax equity investments, using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company’s adoption of ASU 2023-02 is not expected to have a material impact on the Company’s consolidated results of operations and financial position. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. On December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue Service Revenues | Three months ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Service revenues United States 830,680 $ 752,077 2,349,241 $ 2,109,467 International 115,950 95,172 318,670 254,419 Total service revenues $ 946,630 $ 847,249 $ 2,667,911 $ 2,363,886 Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Vehicle sales United States 88,236 $ 81,681 241,307 $ 261,069 International 92,393 92,901 258,606 246,972 Total vehicle sales $ 180,629 $ 174,582 $ 499,913 $ 508,041 |
Contract with Customer, Asset and Liability | The change in the carrying amount of contract assets was as follows (In thousands): Balance as of July 31, 2023 $ 25,726 Capitalized contract assets during the period 32,260 Costs amortized during the period (6,451) Effect of foreign currency exchange rates (65) Balance as of April 30, 2024 $ 51,470 |
Schedule of Foreign Currency Translation | The cumulative effects of foreign currency exchange rate fluctuations were as follows (In thousands): Cumulative loss on foreign currency translation as of July 31, 2022 $ (169,365) Gain (Loss) on foreign currency translation 28,359 Cumulative loss on foreign currency translation as of July 31, 2023 $ (141,006) Gain (Loss) on foreign currency translation (15,801) Cumulative loss on foreign currency translation as of April 30, 2024 $ (156,807) |
Cash, Cash Equivalents and Investments | The table below shows the amortized cost, associated gross unrealized gains and associated fair value of held to maturity securities. (In thousands) April 30, 2024 Amortized Cost Gross Unrealized Gains Fair Value Investment in held to maturity securities $ 2,000,334 $ 18,075 $ 2,018,409 (In thousands) July 31, 2023 Amortized Cost Gross Unrealized Gains Fair Value Investment in held to maturity securities $ 1,406,589 $ 8,314 $ 1,414,903 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net consisted of: (In thousands) April 30, 2024 July 31, 2023 Advance charges receivable $ 616,324 $ 537,261 Trade accounts receivable 193,334 157,083 Other receivables 25,324 16,334 834,982 710,678 Less: Allowance for credit loss (12,332) (8,640) Accounts receivable, net $ 822,650 $ 702,038 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following: (In thousands) April 30, 2024 July 31, 2023 Land $ 1,972,821 $ 1,812,001 Buildings and improvements 1,442,039 1,339,820 Transportation and other equipment 560,433 490,136 Office furniture and equipment 95,643 91,031 Software 98,667 89,575 4,169,603 3,822,563 Less: Accumulated depreciation and amortization (1,096,513) (978,224) Property and equipment, net $ 3,073,090 $ 2,844,339 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Leases [Abstract] | |
Summary of Lease Cost | Components of lease expense were as follows: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Operating lease expense $ 6,333 $ 6,503 $ 19,445 $ 20,050 Finance lease expense: Amortization of right-of-use assets 3 5 13 17 Interest on finance lease liabilities — 1 — 1 Short-term lease expense 504 1,282 2,829 3,585 Variable lease expense 388 305 960 858 Total lease expense $ 7,228 $ 8,096 $ 23,247 $ 24,511 |
Schedule of Cash Flow Information Related to Leases | Supplemental cash flow information related to leases as of April 30, 2024 was as follows: Nine Months Ended April 30, (In thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 18,085 $ 19,507 Operating cash flows related to finance leases — 1 Financing cash flows related to finance leases 14 18 Right-of-use assets obtained in exchange for new operating lease liabilities 23,972 12,872 Right-of-use assets obtained in exchange for new finance lease liabilities — — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Aggregate Amortization Expense on Intangible Assets | The following table sets forth amortizable intangible assets by major asset class: (In thousands) April 30, 2024 July 31, 2023 Amortized intangibles: Supply contracts and customer relationships $ 83,589 $ 84,614 Trade names 18,910 19,304 Licenses and databases 16,562 682 Indefinite-lived intangibles: Trade names 16,718 7,443 Accumulated amortization (58,993) (49,341) Intangibles, net $ 76,786 $ 62,702 |
Schedule of Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill was as follows: (In thousands) Balance as of July 31, 2023 $ 394,289 Acquisitions during the period 120,634 Effect of foreign currency exchange rates (3,551) Balance as of April 30, 2024 $ 511,372 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Financial Assets and Liabilities | The following table summarizes the carrying values and fair values of the Company’s financial instruments that were not carried at fair value in the consolidated balance sheets: April 30, 2024 July 31, 2023 (In thousands) Carrying Value Total Fair Value Total Carrying Value Total Fair Value Total Assets Cash equivalents $ 734,005 $ 736,806 $ 674,980 $ 677,515 Investment in held to maturity securities 2,000,334 2,018,409 1,406,589 1,414,903 Total Assets $ 2,734,339 $ 2,755,215 $ 2,081,569 $ 2,092,418 Liabilities Long-term fixed rate debt, including current portion $ — $ — $ 11,006 $ 11,006 Total Liabilities $ — $ — $ 11,006 $ 11,006 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic Weighted Shares Outstanding to Diluted Weighted Average Shares Outstanding | The table below reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 Weighted average common shares outstanding 961,813 953,574 960,143 952,834 Effect of dilutive securities 14,632 13,806 14,083 12,602 Weighted average common and dilutive potential common shares outstanding 976,445 967,380 974,226 965,436 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Option Activity for Stock Options | The following is a summary of activity for the Company’s stock options for the nine months ended April 30, 2024: (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2023 17,825 $ 15.47 4.67 $ 512,045 Grants of options 1,031 49.60 Exercises (2,047) 10.01 Forfeitures or expirations — Outstanding as of April 30, 2024 16,809 $ 18.23 4.52 $ 606,535 Exercisable as of April 30, 2024 14,279 $ 14.89 3.87 $ 562,931 The following is a summary of activity for the Company’s stock option awards subject to market conditions for the nine months ended April 30, 2024: (In thousands, except per share and term data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value Outstanding as of July 31, 2023 5,920 $ 24.37 7.43 $ 117,389 Grants of options 75 50.89 Exercises — — Forfeitures or expirations — — Outstanding as of April 30, 2024 5,995 $ 24.70 6.72 $ 177,526 Exercisable as of April 30, 2024 3,864 $ 23.14 6.45 $ 120,445 |
Recognized Stock-based Compensation Expense | The table below sets forth the stock-based compensation recognized by the Company for stock options, restricted stock, and restricted unit awards: Three Months Ended April 30, Nine Months Ended April 30, (In thousands) 2024 2023 2024 2023 General and administrative $ 7,201 $ 7,830 $ 21,693 $ 25,366 Yard operations 1,817 2,251 5,001 5,038 Total stock-based compensation $ 9,018 $ 10,081 $ 26,694 $ 30,404 |
Share Based Payment Arrangement Restricted Stock and Restricted Stock Unit Activity | The following is a summary of activity for the Company’s RSA, RSU and PSU for the nine months ended April 30, 2024: (In thousands, except per share data) Restricted and Performance Shares Weighted Average Grant Date Fair Value Outstanding as of July 31, 2023 800 $ 31.77 Grants 1,382 51.73 Vested (278) 31.07 Forfeitures or expirations (13) 34.02 Outstanding as of April 30, 2024 1,891 $ 46.45 |
Segments and Other Geographic_2
Segments and Other Geographic Reporting (Tables) | 9 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by segment: Three Months Ended April 30, 2024 Three Months Ended April 30, 2023 (In thousands) United States International Total United States International Total Service revenues 830,680 115,950 $ 946,630 $ 752,077 $ 95,172 $ 847,249 Vehicle sales 88,236 92,393 180,629 81,681 92,901 174,582 Total service revenues and vehicle sales 918,916 208,343 1,127,259 833,758 188,073 1,021,831 Yard operations 369,577 69,296 438,873 323,426 55,532 378,958 Cost of vehicle sales 81,312 81,569 162,881 74,951 84,492 159,443 General and administrative 75,096 13,206 $ 88,302 50,590 13,916 64,506 Operating income $ 392,931 $ 44,272 $ 437,203 $ 384,791 $ 34,133 $ 418,924 Depreciation and amortization $ 43,477 $ 7,256 $ 50,733 $ 32,918 $ 4,453 $ 37,371 Capital expenditures and acquisitions 72,186 15,629 87,815 79,633 10,172 89,805 Nine Months Ended April 30, 2024 Nine Months Ended April 30, 2023 (In thousands) United States International Total United States International Total Service revenues 2,349,241 318,670 $ 2,667,911 $ 2,109,467 $ 254,419 $ 2,363,886 Vehicle sales 241,307 258,606 499,913 261,069 246,972 508,041 Total service revenues and vehicle sales 2,590,548 577,276 3,167,824 2,370,536 501,391 2,871,927 Yard operations 1,062,859 193,693 1,256,552 973,067 154,165 1,127,232 Cost of vehicle sales 223,462 234,134 457,596 246,431 218,851 465,282 General and administrative 201,667 39,530 241,197 147,456 36,005 183,461 Operating income $ 1,102,560 $ 109,919 $ 1,212,479 $ 1,003,582 $ 92,370 $ 1,095,952 Depreciation and amortization $ 118,756 $ 20,402 $ 139,158 $ 101,974 $ 12,869 $ 114,843 Capital expenditures and acquisitions 372,178 95,339 467,517 305,344 41,180 346,524 April 30, 2024 July 31, 2023 (In thousands) United States International Total United States International Total Total assets $ 7,034,960 $ 975,672 $ 8,010,632 $ 5,825,064 $ 912,815 $ 6,737,879 Goodwill 390,903 120,469 511,372 270,269 124,020 394,289 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Aug. 04, 2023 | Oct. 03, 2022 | Apr. 30, 2024 | Oct. 06, 2023 USD ($) |
Accounting Policies [Abstract] | ||||
Common stock split, conversion ratio | 2 | 2 | ||
Purple Wave Inc | ||||
Business Acquisition [Line Items] | ||||
Percentage of noncontrolling interest | 20% | 20% | ||
Redeemable noncontrolling interest, fair value | $ 25.2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | $ 1,127,259 | $ 1,021,831 | $ 3,167,824 | $ 2,871,927 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | 946,630 | 847,249 | 2,667,911 | 2,363,886 |
Service revenues | United States | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | 830,680 | 752,077 | 2,349,241 | 2,109,467 |
Service revenues | International | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | 115,950 | 95,172 | 318,670 | 254,419 |
Vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | 180,629 | 174,582 | 499,913 | 508,041 |
Vehicle sales | United States | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | 88,236 | 81,681 | 241,307 | 261,069 |
Vehicle sales | International | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total service revenues and vehicle sales | $ 92,393 | $ 92,901 | $ 258,606 | $ 246,972 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Carrying Amount of Contract Assets (Details) $ in Thousands | 9 Months Ended |
Apr. 30, 2024 USD ($) | |
Contract with Customer, Asset, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 25,726 |
Capitalized contract assets during the period | 32,260 |
Costs amortized during the period | (6,451) |
Effect of foreign currency exchange rates | (65) |
Ending balance | $ 51,470 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 30, 2024 | Jul. 31, 2023 | |
Cumulative Translation Adjustment Summary [Roll Forward] | ||
Cumulative loss on foreign currency translation, beginning balance | $ (141,006) | $ (169,365) |
Gain (Loss) on foreign currency translation | (15,801) | 28,359 |
Cumulative loss on foreign currency translation, ending balance | $ (156,807) | $ (141,006) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Investments in HTM Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jul. 31, 2023 |
Accounting Policies [Abstract] | ||
Amortized Cost | $ 2,000,334 | $ 1,406,589 |
Gross Unrealized Gains | 18,075 | 8,314 |
Fair Value | $ 2,018,409 | $ 1,414,903 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Oct. 06, 2023 | Apr. 30, 2024 |
Purple Wave Inc | ||
Business Acquisition [Line Items] | ||
Percentage of noncontrolling interest | 20% | 20% |
Redeemable noncontrolling interest, fair value | $ 25.2 | |
Purple Wave Inc | ||
Business Acquisition [Line Items] | ||
Percentage of voting interests acquired | 80% | |
Number of shares issued (in shares) | 2.5 | |
Acquisition price | $ 108 | |
Merger consideration, fair value | 112.1 | |
Acquisition costs | $ 1.2 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jul. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | $ 834,982 | $ 710,678 |
Less: Allowance for credit loss | (12,332) | (8,640) |
Accounts receivable, net | 822,650 | 702,038 |
Advance charges receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | 616,324 | 537,261 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | 193,334 | 157,083 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | $ 25,324 | $ 16,334 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | Jul. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | $ 4,169,603 | $ 4,169,603 | $ 3,822,563 | ||
Less: Accumulated depreciation and amortization | (1,096,513) | (1,096,513) | (978,224) | ||
Property and equipment, net | 3,073,090 | 3,073,090 | 2,844,339 | ||
Depreciation | 47,400 | $ 35,500 | 129,200 | $ 109,200 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 1,972,821 | 1,972,821 | 1,812,001 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 1,442,039 | 1,442,039 | 1,339,820 | ||
Transportation and other equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 560,433 | 560,433 | 490,136 | ||
Office furniture and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | 95,643 | 95,643 | 91,031 | ||
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment | $ 98,667 | $ 98,667 | $ 89,575 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Leases [Abstract] | ||||
Renewal term | 40 years | 40 years | ||
Operating lease expense | $ 6,333 | $ 6,503 | $ 19,445 | $ 20,050 |
Amortization of right-of-use assets | 3 | 5 | 13 | 17 |
Interest on finance lease liabilities | 0 | 1 | 0 | 1 |
Short-term lease expense | 504 | 1,282 | 2,829 | 3,585 |
Variable lease expense | 388 | 305 | 960 | 858 |
Total lease expense | $ 7,228 | $ 8,096 | $ 23,247 | $ 24,511 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Leases [Abstract] | ||
Operating cash flows related to operating leases | $ 18,085 | $ 19,507 |
Operating cash flows related to finance leases | 0 | 1 |
Financing cash flows related to finance leases | 14 | 18 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 23,972 | 12,872 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 |
Leases - Lessor (Details)
Leases - Lessor (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | Jul. 31, 2023 | |
Leases [Abstract] | |||||
Property subject to or available for operating lease gross | $ 50.3 | $ 50.3 | $ 51.2 | ||
Property subject to or available for operating lease accumulated depreciation | 4.4 | 4.4 | $ 3.8 | ||
Operating lease income | $ 4.4 | $ 4 | $ 13 | $ 12.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jul. 31, 2023 |
Amortized intangibles: | ||
Accumulated amortization | $ (58,993) | $ (49,341) |
Intangibles, net | 76,786 | 62,702 |
Trade names | ||
Amortized intangibles: | ||
Indefinite-lived intangibles | 16,718 | 7,443 |
Supply contracts and customer relationships | ||
Amortized intangibles: | ||
Gross carrying amount | 83,589 | 84,614 |
Trade names | ||
Amortized intangibles: | ||
Gross carrying amount | 18,910 | 19,304 |
Licenses and databases | ||
Amortized intangibles: | ||
Gross carrying amount | $ 16,562 | $ 682 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Aggregate amortization expense | $ 3.3 | $ 1.9 | $ 10 | $ 5.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Change in Goodwill (Details) $ in Thousands | 9 Months Ended |
Apr. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 394,289 |
Acquisitions during the period | 120,634 |
Effect of foreign currency exchange rates | (3,551) |
Ending balance | $ 511,372 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 9 Months Ended | |||
Dec. 21, 2021 USD ($) | Apr. 30, 2024 USD ($) | Jul. 31, 2023 USD ($) | Dec. 20, 2021 USD ($) | |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt offering costs | $ 2,700,000 | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | $ 11,000,000 | ||
Maximum leverage | 50,000,000 | |||
Minimum liquidity | $ 75,000,000 | |||
Total consolidated net leverage ratio | (1.61) | |||
Minimum liquidity | $ 4,300,000,000 | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Scenario 1 | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, covenant terms | 3.25 | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Scenario 2 | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, covenant terms | 3.50 | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.175% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 1% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Minimum | Daily Rate | ||||
Line of Credit Facility [Line Items] | ||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.275% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 1.75% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Maximum | Daily Rate | ||||
Line of Credit Facility [Line Items] | ||||
Applicable interest rate added to reference rate in order to compute variable interest rate | 0.75% | |||
Revolving Credit Facility | Second Amended and Restated Credit Agreement | Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Santander Bank N.A., and Bank of America, N.A. | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, increase (decrease), net | $ 200,000,000 | |||
Maximum borrowing capacity | 1,250,000,000 | |||
Outstanding borrowings | 100,000,000 | $ 60,000,000 | ||
Letter of Credit | Second Amended and Restated Credit Agreement | Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Santander Bank N.A., and Bank of America, N.A. | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 550,000,000 | |||
Letter of Credit | Second Amended and Restated Credit Agreement | Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Santander Bank N.A., and Bank of America, N.A. | CPRT GmbH | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 150,000,000 | |||
Letter of Credit | Second Amended and Restated Credit Agreement | Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Santander Bank N.A., and Bank of America, N.A. | Copart Autos España, S.L.U. | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 150,000,000 | |||
Letter of Credit | Second Amended and Restated Credit Agreement | Wells Fargo, National Association, Truist Bank, BMO Harris Bank N.A., Santander Bank N.A., and Bank of America, N.A. | Copart UK Limited | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jul. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 734,005 | $ 674,980 |
Cash equivalents | 736,806 | 677,515 |
Investment in held to maturity securities | 2,000,334 | 1,406,589 |
Investment in held to maturity securities | 2,018,409 | 1,414,903 |
Assets, carrying value | 2,734,339 | 2,081,569 |
Assets, fair value | 2,755,215 | 2,092,418 |
Liabilities, carrying value | 0 | 11,006 |
Total Liabilities | 0 | 11,006 |
Fixed Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 11,006 |
Long-term fixed rate debt, including current portion | $ 0 | $ 11,006 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Basic Weighted Shares Outstanding to Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 961,813 | 953,574 | 960,143 | 952,834 |
Effect of dilutive securities (in shares) | 14,632 | 13,806 | 14,083 | 12,602 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 976,445 | 967,380 | 974,226 | 965,436 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options excluded from the calculation of dilutive earnings (in shares) | 631,147 | 3,451,940 | 1,937,294 | 15,946,536 |
Stock-based Compensation - Opti
Stock-based Compensation - Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 30, 2024 USD ($) $ / shares shares | Jul. 31, 2023 USD ($) $ / shares shares | |
Shares | ||
Outstanding, beginning balance (in shares) | shares | 17,825 | |
Grants of options (in shares) | shares | 1,031 | |
Exercises (in shares) | shares | (2,047) | |
Forfeitures or expirations (in shares) | shares | 0 | |
Outstanding, ending balance (in shares) | shares | 16,809 | 17,825 |
Exercisable (in shares) | shares | 14,279 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 15.47 | |
Grants of options (in dollars per share) | $ / shares | 49.60 | |
Exercises (in dollars per share) | $ / shares | 10.01 | |
Forfeitures (in dollars per share) | $ / shares | ||
Outstanding, ending balance (in dollars per share) | $ / shares | 18.23 | $ 15.47 |
Exercisable (in dollars per share) | $ / shares | $ 14.89 | |
Weighted Average Remaining Contractual Term (In years) | ||
Outstandiing | 4 years 6 months 7 days | 4 years 8 months 1 day |
Exercisable | 3 years 10 months 13 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ | $ 512,045 | |
Outstanding, ending balance | $ | 606,535 | $ 512,045 |
Exercisable | $ | $ 562,931 | |
Employee Stock Option | ||
Shares | ||
Outstanding, beginning balance (in shares) | shares | 5,920 | |
Grants of options (in shares) | shares | 75 | |
Exercises (in shares) | shares | 0 | |
Forfeitures or expirations (in shares) | shares | 0 | |
Outstanding, ending balance (in shares) | shares | 5,995 | 5,920 |
Exercisable (in shares) | shares | 3,864 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 24.37 | |
Grants of options (in dollars per share) | $ / shares | 50.89 | |
Exercises (in dollars per share) | $ / shares | 0 | |
Forfeitures (in dollars per share) | $ / shares | 0 | |
Outstanding, ending balance (in dollars per share) | $ / shares | 24.70 | $ 24.37 |
Exercisable (in dollars per share) | $ / shares | $ 23.14 | |
Weighted Average Remaining Contractual Term (In years) | ||
Outstandiing | 6 years 8 months 19 days | 7 years 5 months 4 days |
Exercisable | 6 years 5 months 12 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ | $ 117,389 | |
Outstanding, ending balance | $ | 177,526 | $ 117,389 |
Exercisable | $ | $ 120,445 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2024 USD ($) day shares | Apr. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for calculating intrinsic value (in shares) | shares | 22,804,605 | |||
Total stock-based compensation | $ 9,018 | $ 10,081 | $ 26,694 | $ 30,404 |
Purple Wave Inc | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 1,300 | 0 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred compensation arrangement with individual - requisite service period | 5 years | |||
Award vesting rights, percentage | 20% | |||
Award vesting period | 4 years | |||
Percentage of trading price compared to exercise price | 125% | |||
Consecutive trading days | day | 20 | |||
Award requisite service period | 5 years | |||
Total compensation expense to be recognized per grant | $ 50,100 | $ 50,100 | ||
Total stock-based compensation | $ 5,900 | $ 9,700 | ||
Employee Stock Option | Valuation Technique, Option Pricing Model | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk free interest rate, minimum | 0.71% | |||
Risk free interest rate, maximum | 4.37% | |||
Expected volatility, minimum | 25.20% | |||
Expected volatility, maximum | 29.80% | |||
Expected dividend rate | 0% | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Apr. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 9,018 | $ 10,081 | $ 26,694 | $ 30,404 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 7,201 | 7,830 | 21,693 | 25,366 |
Yard operations | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 1,817 | $ 2,251 | $ 5,001 | $ 5,038 |
Stock-based Compensation - Comp
Stock-based Compensation - Company RSA's and RSU's (Details) shares in Thousands | 9 Months Ended |
Apr. 30, 2024 $ / shares shares | |
Restricted and Performance Shares | |
Outstanding, beginning balance (in shares) | shares | 800 |
Grants (in shares) | shares | 1,382 |
Vested (in shares) | shares | (278) |
Forfeitures or expirations (in shares) | shares | (13) |
Outstanding, ending balance (in shares) | shares | 1,891 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 31.77 |
Grants (in dollars per share) | $ / shares | 51.73 |
Vested (in dollars per share) | $ / shares | 31.07 |
Forfeitures or expirations (in dollars per share) | $ / shares | 34.02 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 46.45 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 9 Months Ended | 151 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 30, 2024 | Sep. 22, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock authorized for repurchase (in shares) | 784,000,000 | |||
Stock Repurchase Program 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program additional number of shares authorized approved (in shares) | 320,000,000 | |||
Stock repurchased (in shares) | 0 | 0 | 458,000,000 | |
Number of shares available for repurchase under stock repurchase program (in shares) | 326,000,000 | 326,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 20.40% | 21.30% |
Segments and Other Geographic_3
Segments and Other Geographic Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2024 USD ($) segment | Apr. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 2 | ||||
Number of reportable segments | segment | 2 | ||||
Total service revenues and vehicle sales | $ 1,127,259 | $ 1,021,831 | $ 3,167,824 | $ 2,871,927 | |
Yard operations | 438,873 | 378,958 | 1,256,552 | 1,127,232 | |
Cost of vehicle sales | 162,881 | 159,443 | 457,596 | 465,282 | |
General and administrative | 88,302 | 64,506 | 241,197 | 183,461 | |
Operating income | 437,203 | 418,924 | 1,212,479 | 1,095,952 | |
Depreciation and amortization | 50,733 | 37,371 | 139,158 | 114,843 | |
Capital expenditures and acquisitions | 87,815 | 89,805 | 467,517 | 346,524 | |
Total assets | 8,010,632 | 8,010,632 | $ 6,737,879 | ||
Goodwill | 511,372 | 511,372 | 394,289 | ||
Service revenues | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 946,630 | 847,249 | 2,667,911 | 2,363,886 | |
Service revenues | United States | US | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 830,680 | 752,077 | 2,349,241 | 2,109,467 | |
Service revenues | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 115,950 | 95,172 | 318,670 | 254,419 | |
Vehicle sales | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 180,629 | 174,582 | 499,913 | 508,041 | |
Vehicle sales | United States | US | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 88,236 | 81,681 | 241,307 | 261,069 | |
Vehicle sales | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 92,393 | 92,901 | 258,606 | 246,972 | |
Operating Segments | United States | US | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 918,916 | 833,758 | 2,590,548 | 2,370,536 | |
Yard operations | 369,577 | 323,426 | 1,062,859 | 973,067 | |
Cost of vehicle sales | 81,312 | 74,951 | 223,462 | 246,431 | |
General and administrative | 75,096 | 50,590 | 201,667 | 147,456 | |
Operating income | 392,931 | 384,791 | 1,102,560 | 1,003,582 | |
Depreciation and amortization | 43,477 | 32,918 | 118,756 | 101,974 | |
Capital expenditures and acquisitions | 72,186 | 79,633 | 372,178 | 305,344 | |
Total assets | 7,034,960 | 7,034,960 | 5,825,064 | ||
Goodwill | 390,903 | 390,903 | 270,269 | ||
Operating Segments | International | International | |||||
Segment Reporting Information [Line Items] | |||||
Total service revenues and vehicle sales | 208,343 | 188,073 | 577,276 | 501,391 | |
Yard operations | 69,296 | 55,532 | 193,693 | 154,165 | |
Cost of vehicle sales | 81,569 | 84,492 | 234,134 | 218,851 | |
General and administrative | 13,206 | 13,916 | 39,530 | 36,005 | |
Operating income | 44,272 | 34,133 | 109,919 | 92,370 | |
Depreciation and amortization | 7,256 | 4,453 | 20,402 | 12,869 | |
Capital expenditures and acquisitions | 15,629 | $ 10,172 | 95,339 | $ 41,180 | |
Total assets | 975,672 | 975,672 | 912,815 | ||
Goodwill | $ 120,469 | $ 120,469 | $ 124,020 |