Income Taxes (Tables)

12 Months Ended

Jul. 31, 2012

Schedule of Components of Provision (Benefit) for Income Taxes

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

Income Taxes:	2012		2011		2010
Federal	$	57,736	$	48,943	$	55,462
State and local		4,658		250		9,337
Foreign		–		–		(11)
Total current expense		62,394		49,193		64,788
Federal		(3,387)		(2,989)		(3,430)
State and local		(55)		150		(29)
Total deferred benefit		(3,442)		(2,839)		(3,459)
Total income tax expense	$	58,952	$	46,354	$	61,329

Schedule of Components of Total Current Income Tax Expense

The table below shows the components of the total current income tax expense for fiscal 2012, 2011 and 2010:

	2012		2011		2010
Federal tax expense at statutory rates	$	63,242	$	53,420	$	59,988
State tax expense at various state tax rates (net of federal benefit)		1,054		956		5,153
Current tax expense effect of accrued product warranties		2,371		1,698		3,622
Current tax expense effect of other temporary items		(270)		1,989		(407)
Federal income tax credits and incentives		(980)		(2,421)		(1,069)
Domestic production activities deduction		(5,645)		(5,236)		(3,745)
Executive compensation limitation		38		–		1,578
Change in uncertain tax positions		2,540		(1,426)		(1,931)
Adjustments to current tax payable		(301)		(1,169)		807
Other permanent items		345		1,382		792
Total Current Income Taxes	$	62,394	$	49,193	$	64,788

Schedule of Differences Between Income Taxes at Federal Statutory Rate and Actual Income Taxes

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

	2012		2011		2010
Provision at federal statutory rate	$	63,242	$	53,420	$	59,988
State and local income taxes (net of federal benefit)		975		978		5,124
Federal income tax credits and incentives		(980)		(2,421)		(1,069)
Domestic production activities deduction		(5,645)		(5,236)		(3,745)
Change in uncertain tax positions		1,619		(1,124)		(278)
Executive compensation limitation		38		–		1,578
Reduction of excess current tax payable and deferred tax liabilities		(642)		(645)		(1,061)
Other permanent Items		345		1,382		792
Income Taxes	$	58,952	$	46,354	$	61,329

Schedule of Deferred Income Taxes

A summary of deferred income taxes is as follows:	July 31,		July 31,
	2012		2011
Current deferred tax asset (liability):
Inventory basis	$	(589)	$	(251)
Employee benefits		2,026		3,102
Self-insurance reserves		8,556		8,036
Accrued product warranties		26,690		24,443
Accrued incentives		2,369		2,948
Sales returns and allowances		1,145		1,231
Accrued expenses		1,399		2,938
Unrecognized tax benefits		963		597
Other		(1,662)		(1,456)
Total current net deferred tax asset		40,897		41,588

Long-term deferred tax asset (liability):
Property basis		(4,482)		(5,166)
Investments		(433)		(898)
Deferred compensation		5,069		4,836
Intangibles		(35,524)		(37,513)
Unrecognized tax benefits		14,436		13,882
Total net long-term deferred tax liability		(20,934)		(24,859)
Net deferred tax asset	$	19,963	$	16,729

Schedule of Changes in Unrecognized Tax Benefit

Changes in the unrecognized tax benefit during fiscal year 2012, 2011 and 2010 were as follows:

	2012			2011			2010
Beginning balance		$	32,174		$	31,039		$	30,235
Tax positions related to prior years:
Additions			562			1,817			760
Reductions			(284)			(1,062)			(1,883)
Tax positions related to current year:
Additions			3,995			3,713			4,095
Settlements			(1,364)			(2,642)			(817)
Lapses in statute of limitations			(1,183)			(691)			(1,351)
Ending balance		$	33,900		$	32,174		$	31,039

Components of Total Unrecognized Tax Benefits

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

	2012			2011			2010
Unrecognized tax benefits		$	33,900		$	32,174		$	31,039
Accrued interest and penalties			13,265			12,533			13,326
Total unrecognized tax benefits		$	47,165		$	44,707		$	44,365
Short-term, included in “Income and other taxes”		$	2,649		$	1,683		$	8,679
Long-term			44,516			43,024			35,686
Total unrecognized tax benefits		$	47,165		$	44,707		$	44,365