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INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2024

The sources of income before income taxes are as follows:


	For the Fiscal Year Ended July 31,
	2024		2023		2022
United States	$	115,618	$	315,939	$	1,359,841
Foreign	233,226		183,414		100,023
Total	$	348,844	$	499,353	$	1,459,864

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


	For the Fiscal Year Ended July 31,
Income Taxes:	2024		2023		2022
U.S. Federal	$	52,832	$	102,919	$	296,716
U.S. state and local	10,372		14,803		55,159
Foreign	48,242		45,174		17,848
Total current expense	111,446		162,896		369,723
U.S. Federal	(22,236)		(28,819)		(21,317)
U.S. state and local	(4,116)		(3,447)		(2,089)
Foreign	(1,650)		(5,517)		(24,696)
Total deferred expense (benefit)	(28,002)		(37,783)		(48,102)
Total income tax expense	$	83,444	$	125,113	$	321,621

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,
	2024		2023		2022
Provision at federal statutory rate	$	73,257	$	104,864	$	306,571
Differences between U.S. Federal statutory and foreign tax rates	3,821		(41,300)		58,573
Foreign currency remeasurement (gains) losses	(7,621)		33,737		(73,914)
U.S. state and local income taxes, net of federal benefit	4,840		9,524		38,919
Nondeductible compensation	3,976		4,413		5,438
Contingent liability accrual and settlement	(7,456)		—		6,300
Global Intangible Low-Taxed Income	12,068		10,936		2,000






Other	559		2,939		(22,266)
Total income tax expense	$	83,444	$	125,113	$	321,621

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


	July 31,
	2024		2023
Deferred income tax asset (liability):
Inventory basis	$	10,019	$	10,226
Employee benefits	10,146		10,306
Self-insurance reserves	5,021		4,968
Accrued product warranties	62,687		71,800
Accrued incentives	7,335		9,110
Sales returns and allowances	2,544		2,282
Accrued expenses	6,409		5,641
Property, plant and equipment	(45,494)		(49,036)
Operating leases	10,970		13,086
Deferred compensation	31,359		29,667
Intangibles	(197,012)		(212,478)
Net operating loss and other carryforwards	30,861		38,064
Unrealized (gain) loss	737		(8,843)
Unrecognized tax benefits	2,161		2,965
Research and development	20,237		10,816
Other	8,709		2,395
Valuation allowance	(12,676)		(10,867)
Deferred income tax (liability), net	$	(45,987)	$	(69,898)

Changes in the unrecognized tax benefit during fiscal years 2024, 2023 and 2022 were as follows:


	2024		2023		2022
Beginning balance	$	13,712	$	17,998	$	17,025
Tax positions related to prior years:
Additions	1,692		649		705
Reductions	(1,977)		(1,588)		(1,280)
Tax positions related to current year:
Additions	386		974		4,660
Settlements	(2,133)		(2,531)		(2,453)
Lapses in statute of limitations	(1,246)		(1,790)		(3,010)
Tax positions acquired	—		—		2,351
Ending balance	$	10,434	$	13,712	$	17,998

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


	July 31,
	2024		2023
Unrecognized tax benefits	$	10,434	$	13,712
Reduction to unrecognized tax benefits which offset tax credit carryforwards	(605)		(414)
Accrued interest and penalties	2,576		2,694
Total unrecognized tax benefits	$	12,405	$	15,992

Short-term, included in “Income and other taxes”	$	—	$	1,157
Long-term	12,405		14,835
Total unrecognized tax benefits	$	12,405	$	15,992

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