Income taxes (Tables)

12 Months Ended

Jul. 31, 2012

Reconciliation of Income Taxes at United States Rate to Effective Tax Rate

A reconciliation of income taxes at the United States statutory rate to the effective tax rate follows:

	Year Ended July 31,
	2012			2011			2010
U.S. Federal statutory tax rate		35	%		35	%		35	%
State income taxes, net of federal tax benefit		-1	%		-2	%		-1	%
Domestic production benefit		-2	%		-2	%		-2	%
General business credit		-1	%		-10	%		-2	%
Valuation allowance		1	%		0	%		3	%
Effect of international operations		-3	%		-3	%		-4	%
(Decrease) increase in tax reserves		-26	%		5	%		-3	%
Other items, net		0	%		-2	%		0	%
Effective tax rate		3	%		21	%		26	%

Components of Provision (Benefit) for Income Taxes on Continuing Operations

The components of the provision (benefit) for income taxes on continuing operations are as follows:

	July 31,
	2012			2011			2010
Current income taxes (benefit):
Federal	$	3,403		$	5,461		$	7,723
State		541			534			344
Foreign		232			(37	)		(183	)
		4,176			5,958			7,884
Deferred income taxes (benefit):
Federal	$	(3,339	)		(113	)		(2,361	)
State		25			167			107
Foreign		264			(1,700	)		38
		(3,050	)		(1,646	)		(2,216	)
	$	1,126		$	4,312		$	5,668

Income from Continuing Operations Before Income Taxes

Income from continuing operations before income taxes from domestic and foreign operations is as follows:

	July 31,
	2012		2011		2010
Domestic	$	30,249	$	15,676	$	16,336
Foreign		13,950		5,256		5,131
	$	44,199	$	20,932	$	21,467

Components of Net Deferred Tax Assets

Net deferred taxes, detailed below, recognize the impact of temporary differences between the amounts of assets and liabilities recorded for financial statement purposes and such amounts measured in accordance with tax laws:

	July 31,
	2012			2011
Depreciation related	$	(5,299	)	$	(4,523	)
Goodwill and intangibles		1,110			2,168
Compensation		14,233			9,863
Accruals and reserves		4,987			4,149
Comprehensive income		1,219			2,849
Net operating loss and credit carryforwards		7,140			6,730
Other		1,705			538
	$	25,095		$	21,774
Valuation allowance		(5,537	)		(5,167	)
Total deferred taxes	$	19,558		$	16,607

Summary of Changes in Unrecognized Income Tax Benefits

The following table summarizes the changes in the Company’s unrecognized income tax benefits for fiscal years 2012 and 2011:

	2012			2011
Balance as of beginning of fiscal year	$	16,250		$	12,124
Increases based on tax positions related to current year		790			1,180
Increases for tax positions of prior years		27			3,455
Decreases for tax positions of prior years		(180	)		(37	)
Decreases due to settlements with taxing authorities		(9,802	)		(111	)
Decreases due to lapse of the applicable statute of limitations		(303	)		(387	)
Adjustment due to foreign exchange rate		(26	)		26
Balance as of end of fiscal year	$	6,756		$	16,250
Net interest as of end of fiscal year	$	640		$	1,485