XML 58 R42.htm IDEA: XBRL DOCUMENT

INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2023

The sources of income before income taxes are as follows:


	For the Fiscal Year Ended July 31,
	2023		2022		2021
United States	$	315,939	$	1,359,841	$	725,262
Foreign	183,414		100,023		119,319
Total	$	499,353	$	1,459,864	$	844,581

The components of the provision for income taxes are as follows:


	For the Fiscal Year Ended July 31,
Income Taxes:	2023		2022		2021
U.S. Federal	$	102,919	$	296,716	$	148,706
U.S. state and local	14,803		55,159		26,344
Foreign	45,174		17,848		17,571
Total current expense	162,896		369,723		192,621
U.S. Federal	(28,819)		(21,317)		162
U.S. state and local	(3,447)		(2,089)		(365)
Foreign	(5,517)		(24,696)		(8,707)
Total deferred expense (benefit)	(37,783)		(48,102)		(8,910)
Total income tax expense	$	125,113	$	321,621	$	183,711

The differences between income tax expense at the federal statutory rate and the actual income tax expense are as follows:


	For the Fiscal Year Ended July 31,
	2023		2022		2021
Provision at federal statutory rate	$	104,864	$	306,571	$	177,362
Differences between U.S. Federal statutory and foreign tax rates	(41,300)		58,573		(16,857)
Foreign currency remeasurement (gains) losses	33,737		(73,914)		1,595
U.S. state and local income taxes, net of federal benefit	9,524		38,919		20,407
Global Intangible Low-Taxed Income	10,936		2,000		—






Other	7,352		(10,528)		1,204
Total income tax expense	$	125,113	$	321,621	$	183,711

A summary of the deferred income tax balances is as follows:


	July 31,
	2023		2022
Deferred income tax asset (liability):
Inventory basis	$	10,226	$	6,596
Employee benefits	10,306		10,171
Self-insurance reserves	4,968		6,792
Accrued product warranties	71,800		68,083
Accrued incentives	9,110		7,064
Sales returns and allowances	2,282		2,447
Accrued expenses	5,641		4,866
Property, plant and equipment	(49,036)		(44,508)
Operating leases	13,086		11,193
Deferred compensation	29,667		26,924
Intangibles	(212,478)		(219,726)
Net operating loss and other carryforwards	38,064		40,814
Unrealized loss	(8,843)		(17,925)
Unrecognized tax benefits	2,965		4,013
Research and development	10,816		—
Other	2,395		(6,155)
Valuation allowance	(10,867)		(8,630)
Deferred income tax (liability), net	$	(69,898)	$	(107,981)

Changes in the unrecognized tax benefit during fiscal years 2023, 2022 and 2021 were as follows:


	2023		2022		2021
Beginning balance	$	17,998	$	17,025	$	14,238
Tax positions related to prior years:
Additions	649		705		72
Reductions	(1,588)		(1,280)		(277)
Tax positions related to current year:
Additions	974		4,660		4,346
Settlements	(2,531)		(2,453)		(3,363)
Lapses in statute of limitations	(1,790)		(3,010)		(2,701)
Tax positions acquired	—		2,351		4,710
Ending balance	$	13,712	$	17,998	$	17,025

The components of total unrecognized tax benefits are summarized as follows:


	July 31,
	2023		2022
Unrecognized tax benefits	$	13,712	$	17,998
Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards	(414)		(668)
Accrued interest and penalties	2,694		2,867
Total unrecognized tax benefits	$	15,992	$	20,197

Short-term, included in “Income and other taxes”	$	1,157	$	2,954
Long-term	14,835		17,243
Total unrecognized tax benefits	$	15,992	$	20,197

The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: