Income Taxes (Tables)

12 Months Ended

Jul. 31, 2015

Schedule of (Loss) Earnings from Continuing Operations

Earnings (loss) from continuing operations consists of the following:



	Years Ended July 31,
	2015			2014			2013
United States	$	(582	)	$	(134,596	)	$	(144,941	)
Other Nations	25,577			81,487			49,267
Total	$	24,995		$	(53,109	)	$	(95,674	)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) from continuing operations consists of the following:



	Years Ended July 31,
	2015			2014			2013
Current income tax expense:
United States	$	9,075		$	(1,137	)	$	64
Other Nations	18,806			19,513			19,795
States (U.S.)	(352		)	1,090			1,094
	$	27,529		$	19,466		$	20,953
Deferred income tax expense (benefit):
United States	$	(5,906	)	$	(22,754	)	$	22,882
Other Nations	(1,868		)	(1,803		)	(806		)
States (U.S.)	338			128			(446		)
	$	(7,436	)	$	(24,429	)	$	21,630
Total income tax expense (benefit)	$	20,093		$	(4,963	)	$	42,583

Schedule of Deferred Tax Assets and Liabilities

The approximate tax effects of temporary differences are as follows:



	July 31, 2015
	Assets			Liabilities			Total
Inventories	$	4,387		$	(197	)	$	4,190
Prepaid catalog costs	—			(2,179		)	(2,179		)
Employee benefits	1,612			—			1,612
Accounts receivable	1,136			(14		)	1,122
Other, net	8,524			(1,510		)	7,014
Current	$	15,659		$	(3,900	)	$	11,759
Fixed Assets	3,344			(3,213		)	131
Intangible Assets	1,242			(26,570		)	(25,328		)
Capitalized R&D expenditures	1,140			—			1,140
Deferred compensation	19,549			—			19,549
Postretirement benefits	3,563			—			3,563
Tax credit carry-forwards and net operating losses	66,744			—			66,744
Less valuation allowance	(39,922		)	—			(39,922		)
Other, net	1,014			(10,965		)	(9,951		)
Non-current	$	56,674		$	(40,748	)	$	15,926
Total	$	72,333		$	(44,648	)	$	27,685



	July 31, 2014
	Assets			Liabilities			Total
Inventories	$	5,460		$	(126	)	$	5,334
Prepaid catalog costs	30			(3,180		)	(3,150		)
Employee benefits	1,533			(27		)	1,506
Accounts receivable	852			(9		)	843
Other, net	8,700			(1,015		)	7,685
Current	$	16,575		$	(4,357	)	$	12,218
Fixed Assets	2,431			(4,587		)	(2,156		)
Intangible Assets	1,706			(27,381		)	(25,675		)
Capitalized R&D expenditures	1,425			—			1,425
Deferred compensation	21,733			—			21,733
Postretirement benefits	5,002			(4		)	4,998
Tax credit carry-forwards and net operating losses	58,870			—			58,870
Less valuation allowance	(37,409		)	—			(37,409		)
Other, net	1,411			(6,499		)	(5,088		)
Non-current	$	55,169		$	(38,471	)	$	16,698
Total	$	71,744		$	(42,828	)	$	28,916

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the tax computed by applying the statutory U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes to the total income tax expense is as follows:



	Years Ended July 31,
	2015		2014		2013
Tax at statutory rate	35.0	%	35.0	%	35.0	%
Impairment charges (1)	55.8	%	(40.3	)%	(53.4	)%
State income taxes, net of federal tax benefit (2)	1.6	%	(1.1	)%	(0.2	)%
International rate differential	(2.2	)%	(1.3	)%	(4.6	)%
Non-creditable withholding taxes	—	%	—	%	(1.5	)%
Rate variances arising from foreign subsidiary distributions	(0.3	)%	(7.5	)%	(25.3	)%
Adjustments to tax accruals and reserves (3)	17.8	%	25.5	%	1.0	%
Research and development tax credits and section 199 manufacturer’s deduction	(3.9	)%	3.6	%	3.1	%
Non-deductible divestiture fees and account write-offs	(4.8	)%	(5.2	)%	—	%
Deferred tax and other adjustments (4)	(21.1	)%	0.7	%	2.4	%
Other, net	2.5	%	(0.1	)%	(1.0	)%
Effective tax rate	80.4	%	9.3	%	(44.5	)%

(1)

$39.8 million of the total impairment charge of $46.9 million recorded during the year ended July 31, 2015 is nondeductible for income tax purposes. $61.1 million of the total impairment charge of $148.6 million million recorded during the year ended July 31, 2014 is nondeductible for income tax purposes. $168.9 million of the total impairment charge of $204.4 million recorded during the year ended July 31, 2013 is nondeductible for income tax purposes.


(2)	Includes a $3.1 million increase in valuation allowances against certain state tax credit carry-forwards during the year ended July 31, 2014.


(3)	Includes $4.5 million of current year uncertain tax positions and the reduction of uncertain tax positions resulting from the settlement of certain domestic and foreign income tax audits and lapses in statutes of limitations during the years ended July 31, 2015, 2014, and 2013.


(4)	Includes an additional $1.0 million of federal research and development credit carry-forwards due to re-enacted law and an additional $5.0 million foreign tax credit carryforward included on the fiscal 2014 U.S. tax return.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows:



Balance at July 31, 2012	$	36,532

Additions based on tax positions related to the current year	4,015
Additions for tax positions of prior years (1)	2,809
Reductions for tax positions of prior years	—
Lapse of statute of limitations	(5,613		)
Settlements with tax authorities	(590		)
Cumulative Translation Adjustments and other	422

Balance as of July 31, 2013	$	37,575

Additions based on tax positions related to the current year	4,596
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(14,569		)
Lapse of statute of limitations	(3,711		)
Settlements with tax authorities	(5,832		)
Cumulative Translation Adjustments and other	(210		)

Balance as of July 31, 2014	$	17,849

Additions based on tax positions related to the current year	5,862
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(280		)
Lapse of statute of limitations	(805		)
Settlements with tax authorities	(221		)
Cumulative Translation Adjustments and other	(1,272		)

Balance as of July 31, 2015	$	21,133

Schedule of Open Tax Years by Major Jurisdictions

The Company and its subsidiaries file income tax returns in the U.S., various state, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions:



Jurisdiction		Open Tax Years
United States — Federal		F’13 — F’15
France		F’12 — F’15
Germany		F’09 — F’15
United Kingdom		F’14 — F’15