INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2014

Schedule of Components of Provision (Benefit) for Income Taxes

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

Income Taxes:	2014		2013		2012
Federal	$	83,374	$	74,610	$	52,665
State and local		(1,383)		4,187		4,250
Total current expense (benefit)		81,991		78,797		56,915
Federal		(3,805)		(7,712)		(2,888)
State and local		(883)		(789)		(74)
Total deferred expense (benefit)		(4,688)		(8,501)		(2,962)
Total income tax expense	$	77,303	$	70,296	$	53,953

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:

	2014		2013		2012
Provision at federal statutory rate	$	88,487	$	77,691	$	57,886
State and local income taxes, net of federal benefit		3,748		2,815		846
Federal income tax credits and incentives		(772)		(2,468)		(831)
Domestic production activities deduction		(7,947)		(7,303)		(5,145)
Change in uncertain tax positions		(6,631)		(718)		1,879
Executive compensation limitation		–		–		38
Change in current tax payable and deferred tax liabilities		125		13		(1,018)
Other permanent items		293		266		298
Total income tax expense	$	77,303	$	70,296	$	53,953

Schedule of Deferred Income Taxes

A summary of deferred income taxes is as follows:	July 31,
	2014		2013
Current deferred tax asset (liability):
Inventory basis	$	(183)	$	(314)
Employee benefits		2,543		2,215
Self-insurance reserves		10,139		8,333
Accrued product warranties		33,629		30,802
Accrued incentives		3,553		2,672
Sales returns and allowances		1,419		1,381
Accrued expenses		1,523		2,145
Unrecognized tax benefits		614		984
Other		(1,840)		(1,700)
Total net current deferred tax asset	$	51,397	$	46,518
Long-term deferred tax asset (liability):
Property basis		(983)		(2,007)
Investments		–		(121)
Deferred compensation		4,811		3,349
Tax credit carry forward		790		547
Intangibles		(31,681)		(33,464)
Unrecognized tax benefits		7,675		13,136
Total net long-term deferred tax asset (liability)		(19,388)		(18,560)
Net deferred tax asset	$	32,009	$	27,958

Schedule of Changes in Unrecognized Tax Benefit

Changes in the unrecognized tax benefit during fiscal year 2014, 2013 and 2012 were as follows:

	2014			2013			2012
Beginning balance		$	32,733		$	33,900		$	32,174
Tax positions related to prior years:
Additions			9			436			562
Reductions			(9,281)			(113)			(284)
Tax positions related to current year:
Additions			3,804			5,348			3,995
Settlements			(5,002)			(5,593)			(1,364)
Lapses in statute of limitations			(1,450)			(1,245)			(1,183)
Ending balance		$	20,813		$	32,733		$	33,900

Components of Total Unrecognized Tax Benefits

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

	July 31,
	2014			2013			2012
Unrecognized tax benefits		$	20,813		$	32,733		$	33,900
Reduction to unrecognized tax benefits for tax credit carry forward			(657)			(440)			–
Accrued interest and penalties			5,200			11,671			13,265
Total unrecognized tax benefits		$	25,356		$	43,964		$	47,165
Short-term, included in “Income and other taxes”		$	1,667		$	2,745		$	2,649
Long-term unrecognized tax benefits			23,689			41,219			44,516
Total unrecognized tax benefits		$	25,356		$	43,964		$	47,165