Income Taxes (Tables)

12 Months Ended

Jul. 31, 2016

Schedule of Income before Income Tax, Domestic and Foreign

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



	Year Ended July 31,
	2016		2015		2014
Earnings before income taxes:
United States	$	90.7	$	92.4	$	131.4
Foreign	166.7		196.2		229.3
Total	$	257.4	$	288.6	$	360.7

Schedule of Components of Income Tax Expense (Benefit)

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



	Year Ended July 31,
	2016			2015			2014
Income tax provision (benefit):
Current
Federal	$	19.9		$	28.5		$	49.0
State	3.1			2.9			4.7
Foreign	46.9			54.7			54.6
	69.9			86.1			108.3
Deferred
Federal	(0.3		)	(4.2		)	(9.5		)
State	(0.2		)	0.1			0.4
Foreign	(2.8		)	(1.5		)	1.3
	(3.3		)	(5.6		)	(7.8		)
Total	$	66.6		$	80.5		$	100.5

Schedule of Effective Income Tax Rate Reconciliation

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



	Year Ended July 31,
	2016		2015		2014
Statutory U.S. federal rate	35.0	%	35.0	%	35.0	%
State income taxes	0.8	%	0.9	%	1.1	%
Foreign operations	(8.1	)%	(7.9	)%	(6.1	)%
Export, manufacturing, and research credits	(1.6	)%	(1.1	)%	(0.8	)%
Change in unrecognized tax benefits	(1.0	)%	1.3	%	(1.1	)%
Other	0.8	%	(0.3	)%	(0.2	)%
Effective income tax rate	25.9	%	27.9	%	27.9	%

Schedule of 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,
	2016			2015
Deferred tax assets:
Accrued expenses	$	12.1		$	10.6
Compensation and retirement plans	59.5			39.1
NOL and tax credit carryforwards	6.5			4.3
LIFO and inventory reserves	5.4			6.9
Other	4.0			5.0
Gross deferred tax assets	87.5			65.9
Valuation allowance	(3.3		)	(2.7		)
Net deferred tax assets	84.2			63.2
Deferred tax liabilities:
Depreciation and amortization	(57.5		)	(50.6		)
Other	(1.2		)	(2.4		)
Deferred tax liabilities	(58.7		)	(53.0		)
Prepaid tax assets	4.2			4.4
Net tax asset	$	29.7		$	14.6

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that in the Company’s judgment is greater than 50% likely to be realized. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):



	Year Ended July 31,
	2016			2015			2014
Gross unrecognized tax benefits at beginning of fiscal year	$	18.2		$	15.0		$	18.4
Additions for tax positions of the current year	3.4			4.7			2.9
Additions for tax positions of prior years	0.1			0.1			1.7
Reductions for tax positions of prior years	(4.9		)	(0.6		)	(7.1		)
Settlements	(0.1		)	—			(0.2		)
Reductions due to lapse of applicable statute of limitations	(1.0		)	(1.0		)	(0.7		)
Gross unrecognized tax benefits at end of fiscal year	$	15.7		$	18.2		$	15.0