Income Taxes (Tables)

12 Months Ended

Jul. 31, 2016

Schedule of (Loss) Earnings from Continuing Operations

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



	Years Ended July 31,
	2016		2015			2014
United States	$	61,349	$	(582	)	$	(134,596	)
Other Nations	47,996		25,577			81,487
Total	$	109,345	$	24,995		$	(53,109	)

Schedule of Components of Income Tax Expense (Benefit)

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



	Years Ended July 31,
	2016			2015			2014
Current income tax expense (benefit):
United States	$	5,048		$	9,075		$	(1,137	)
Other Nations	19,929			18,806			19,513
States (U.S.)	1,348			(352		)	1,090
	$	26,325		$	27,529		$	19,466
Deferred income tax expense (benefit):
United States	$	3,946		$	(5,906	)	$	(22,754	)
Other Nations	(1,387		)	(1,868		)	(1,803		)
States (U.S.)	351			338			128
	$	2,910		$	(7,436	)	$	(24,429	)
Total income tax expense (benefit)	$	29,235		$	20,093		$	(4,963	)

Schedule of Deferred Tax Assets and Liabilities

The approximate tax effects of temporary differences are as follows:



	July 31, 2016
	Assets			Liabilities			Total
Inventories	$	5,142		$	(153	)	$	4,989
Prepaid catalog costs	—			(1,577		)	(1,577		)
Employee benefits	6,347			—			6,347
Accounts receivable	1,619			(15		)	1,604
Fixed Assets	2,847			(2,695		)	152
Intangible Assets	1,144			(31,777		)	(30,633		)
Capitalized R&D expenditures	855			—			855
Deferred compensation	20,549			—			20,549
Postretirement benefits	4,152			—			4,152
Tax credit carry-forwards and net operating losses	56,790			—			56,790
Less valuation allowance	(37,992		)	—			(37,992		)
Other, net	10,918			(15,173		)	(4,255		)
Total	$	72,371		$	(51,390	)	$	20,981



	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
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	9,538			(12,475		)	(2,937		)
Total	$	72,333		$	(44,648	)	$	27,685

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,
	2016		2015		2014
Tax at statutory rate	35.0	%	35.0	%	35.0	%
Impairment charges (1)	—	%	55.8	%	(40.3	)%
State income taxes, net of federal tax benefit (2)	0.8	%	1.6	%	(1.1	)%
International rate differential	0.4	%	(2.2	)%	(1.3	)%
Rate variances arising from foreign subsidiary distributions	0.5	%	(0.3	)%	(7.5	)%
Adjustments to tax accruals and reserves (3)	(3.7	)%	17.8	%	25.5	%
Research and development tax credits and section 199 manufacturer’s deduction	(3.6	)%	(3.9	)%	3.6	%
Non-deductible divestiture fees and account write-offs	(0.4	)%	(4.8	)%	(5.2	)%
Deferred tax and other adjustments (4)	(1.4	)%	(21.1	)%	0.7	%
Other, net	(0.9	)%	2.5	%	(0.1	)%
Effective tax rate	26.7	%	80.4	%	9.3	%


(1)	For the year ended July 31, 2015, $39.8 million of the total impairment charge of $46.9 million recorded is nondeductible for income tax purposes. For the year ended July 31, 2014, $61.1 million of the total impairment charge of $148.6 million recorded is nondeductible for income tax purposes.


(2)	The year ended July 31, 2014 includes a $3.1 million increase in valuation allowances against certain state tax credit carryforwards.


(3)	The years ended July 31, 2014 and 2015 include increases in current year uncertain tax positions, while the year ended July 31, 2016 includes reductions of uncertain tax positions resulting from the closure of audits and lapses in statutes of limitations.


(4)	The year ended July 31, 2015 includes $5.0 million of foreign tax credit carryforward from 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:

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’15 — F’16
France		F’12 — F’16
Germany		F’09 — F’16
United Kingdom		F’14 — F’16