Income taxes (Tables)

12 Months Ended

Jul. 31, 2017

Income Tax Disclosure [Abstract]

Provision for Income Taxes and Effective Tax Rate

The following table presents the provision for income taxes and our effective tax rate for the fiscal years ended July 31, 2017, 2016 and 2015:

	For the Year ended
	July 31,
(in millions except percentages)	2017			2016			2015
Provision for income taxes	$	8.0		$	8.2		$	7.6
Effective tax rate		-12	%		40	%		18	%

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

A reconciliation of income taxes at the U.S. statutory rate to the effective tax rate follows:

	For the Year ended
	July 31,
(in %)	2017			2016			2015
U.S. Federal statutory tax rate (%)		35			35			35
State income taxes, net of federal tax benefit		1			(2	)		(1	)
Domestic production benefit		-			-			1
General business credit (U.S. R&D)		2			(5	)		(2	)
Valuation allowance		(25	)		2			-
Asset impairment		(27	)
Effect of international operations		3			(3	)		(11	)
Increase (decrease) in tax reserves		2			8			(6	)
Non-deductible royalty		-			2			-
Other items, net		(3	)		3			2
Effective tax rate (%)		(12	)		40			18

Components of Provision (Benefit from) for Income Taxes

The components of the provision (benefit from) for income taxes are as follows:

	For the Year ended
	July 31,
(in millions)	2017			2016			2015
Current income taxes provision (benefit):
U.S.:
Federal	$	(0.2	)	$	2.5		$	(2.8	)
State		0.2			(0.2	)		-
Non-U.S.		2.9			6.4			6.0
Current income tax provision	$	2.9		$	8.7		$	3.2
Deferred income taxes provision (benefit):
U.S.:
Federal	$	2.7		$	(2.9	)	$	1.9
State		-			(0.1	)		0.2
Non-U.S.		2.4			2.5			2.3
Deferred income taxes provision (benefit)	$	5.1		$	(0.5	)	$	4.4
Provision for income taxes	$	8.0		$	8.2		$	7.6

(Loss) Income Before Income Taxes

(Loss) income before income taxes from domestic and foreign operations is as follows:

	For the Year ended
	July 31,
(in millions)	2017			2016		2015
Domestic	$	(37.1	)	$	7.9	$	7.5
Foreign		(29.1	)		12.4		33.5
(Loss) income before income taxes	$	(66.2	)	$	20.3	$	41.0

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:

	As of			As of
	July 31,			July 31,
(in millions)	2017			2016
Assets
Compensation	$	8.3		$	10.0
Accruals and reserves		8.7			5.5
Comprehensive income		1.2			2.0
Net operating  losses and credit carryforwards		17.5			17.0
Goodwill and intangibles		3.3			-
Other		0.8			0.9
Deferred tax assets	$	39.8		$	35.4
Valuation allowance		(28.3	)		(11.4	)
Total deferred tax assets	$	11.5		$	24.0
Liabilities
Depreciation related	$	(6.3	)	$	(8.0	)
Goodwill and intangibles		-			(5.3	)
Total deferred tax liabilities	$	(6.3	)	$	(13.3	)
Net deferred tax assets	$	5.2		$	10.7

Summary of Changes in Unrecognized Income Tax Benefits

The following table summarizes the changes in our unrecognized income tax benefits for fiscal years 2017 and 2016:

	July 31,
(in millions)	2017			2016
Beginning balance	$	7.6		$	6.0
Increases based on tax positions related to current year		0.2			1.8
Increases for tax positions of prior years		0.9			0.2
Decreases for tax positions of prior years		(1.5	)		-
Decreases due to settlements with taxing authorities		(0.2	)		-
Decreases due to lapse of applicable statute of limitations		(0.7	)		(0.4	)
Adjustments due to foreign exchange rate		-			-
Ending balance	$	6.3		$	7.6
Net interest as of end of fiscal year	$	0.1		$	0.4