Income Taxes (Tables)

12 Months Ended

Jul. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of earnings before income taxes

The components of earnings before income taxes are as follows (in millions):

	Year Ended July 31,
	2018		2017		2016
Earnings before income taxes:
United States	$	103.2	$	109.8	$	90.7
Foreign	260.4		212.2		166.7
Total	$	363.6	$	322.0	$	257.4

Schedule of components of the provision for income taxes

The components of the provision for income taxes are as follows (in millions):

	Year Ended July 31,
	2018		2017			2016
Income tax provision (benefit):
Current
Federal	$	100.0	$	38.9		$	19.9
State	5.3		4.3			3.1
Foreign	71.0		56.6			46.9
	176.3		99.8			69.9
Deferred
Federal	6.5		(7.7		)	(0.3		)
State	0.2		(0.4		)	(0.2		)
Foreign	0.3		(2.5		)	(2.8		)
	7.0		(10.6		)	(3.3		)
Total	$	183.3	$	89.2		$	66.6

Schedule of reconciliation of the U.S. statutory income tax rate with the effective income tax rate

The following table reconciles the U.S. statutory income tax rate with the effective income tax rate:

	Year Ended July 31,
	2018		2017		2016
Statutory U.S. federal rate	26.9	%	35.0	%	35.0	%
State income taxes	0.9	%	0.9	%	0.8	%
Foreign operations	1.7	%	(8.3	)%	(8.1	)%
Export, manufacturing and research credits	(1.0	)%	(1.1	)%	(1.6	)%
Change in unrecognized tax benefits	(0.3	)%	1.0	%	(1.0	)%
Tax benefits on stock-based compensation	(1.2	)%	—	%	—	%
Impact of U.S. Tax Cuts and Jobs Act	23.2	%	—	%	—	%
Other	0.2	%	0.2	%	0.8	%
Effective income tax rate	50.4	%	27.7	%	25.9	%

Schedule of the tax effects of temporary differences that give rise to deferred tax assets and liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in millions):

	July 31,
	2018			2017
Deferred tax assets:
Accrued expenses	$	13.2		$	16.5
Compensation and retirement plans	29.6			56.2
NOL and tax credit carryforwards	7.2			8.5
LIFO and inventory reserves	2.3			3.0
Other	3.6			6.9
Gross deferred tax assets	55.9			91.1
Valuation allowance	(6.2		)	(5.2		)
Deferred tax assets, net of valuation allowance	49.7			85.9
Deferred tax liabilities:
Depreciation and amortization	(33.6		)	(58.8		)
Other	(1.1		)	(0.4		)
Deferred tax liabilities	(34.7		)	(59.2		)
Net deferred tax asset	$	15.0		$	26.7

Summary of reconciliation of the beginning and ending amount of gross unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):

	Year Ended July 31,
	2018			2017			2016
Gross unrecognized tax benefits at beginning of fiscal year	$	18.8		$	15.7		$	18.2
Additions for tax positions of the current year	4.4			3.9			3.4
Additions for tax positions of prior years	0.2			0.1			0.1
Reductions for tax positions of prior years	(3.1		)	(0.1		)	(4.9		)
Settlements	(0.4		)	0.3			(0.1		)
Reductions due to lapse of applicable statute of limitations	(1.4		)	(1.1		)	(1.0		)
Gross unrecognized tax benefits at end of fiscal year	$	18.5		$	18.8		$	15.7