Income Taxes (Tables)

12 Months Ended

Jul. 31, 2017

Schedule of (Loss) Earnings from Continuing Operations

Earnings from continuing operations before income taxes consists of the following:



	Years Ended July 31,
	2017		2016		2015
United States	$	43,561	$	61,349	$	(582	)
Other Nations	83,071		47,996		25,577
Total	$	126,632	$	109,345	$	24,995

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense from continuing operations consists of the following:



	Years Ended July 31,
	2017			2016			2015
Current income tax expense (benefit):
United States	$	15,279		$	5,048		$	9,075
Other Nations	23,826			19,929			18,806
States (U.S.)	1,163			1,348			(352		)
	$	40,268		$	26,325		$	27,529
Deferred income tax (benefit) expense:
United States	$	(8,173	)	$	3,946		$	(5,906	)
Other Nations	(1,329		)	(1,387		)	(1,868		)
States (U.S.)	221			351			338
	$	(9,281	)	$	2,910		$	(7,436	)
Total income tax expense	$	30,987		$	29,235		$	20,093

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences are as follows:



	July 31, 2017
	Assets			Liabilities			Total
Inventories	$	4,516		$	(1	)	$	4,515
Prepaid catalog costs	—			(1,107		)	(1,107		)
Employee benefits	8,932			—			8,932
Accounts receivable	1,141			(11		)	1,130
Fixed assets	2,819			(3,884		)	(1,065		)
Intangible assets	1,187			(37,681		)	(36,494		)
Capitalized R&D expenditures	570			—			570
Deferred compensation	16,743			—			16,743
Postretirement benefits	4,144			—			4,144
Tax credit and net operating loss carry-forwards	70,128			—			70,128
Less valuation allowance	(38,563		)	—			(38,563		)
Other, net	12,060			(10,798		)	1,262
Total	$	83,677		$	(53,482	)	$	30,195



	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 and net operating loss carry-forwards	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

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 from continuing operations before income taxes to the total income tax expense is as follows:



	Years Ended July 31,
	2017		2016		2015
Tax at statutory rate	35.0	%	35.0	%	35.0	%
Impairment charges (1)	—	%	—	%	55.8	%
State income taxes, net of federal tax benefit	1.0	%	0.8	%	1.6	%
International rate differential	(6.3	)%	0.4	%	(2.2	)%
Rate variances arising from foreign subsidiary distributions (2)	(5.9	)%	0.5	%	(0.3	)%
Adjustments to tax accruals and reserves (3)	3.6	%	(3.7	)%	17.8	%
Research and development tax credits and section 199 manufacturer’s deduction	(1.8	)%	(3.6	)%	(3.9	)%
Non-deductible divestiture fees and account write-offs	(0.6	)%	(0.4	)%	(4.8	)%
Deferred tax and other adjustments (4)	(0.6	)%	(1.4	)%	(21.1	)%
Other, net	0.1	%	(0.9	)%	2.5	%
Effective tax rate	24.5	%	26.7	%	80.4	%


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


(2)	The year ended July 31, 2017, includes the generation of foreign tax credit carry-forwards from cash repatriations that occurred during the fiscal year.


(3)	The years ended July 31, 2017 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 the generation $5.0 million of foreign tax credit carry-forwards from the fiscal 2014 U.S. tax return.

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Schedule of Unrecognized Tax Benefits Roll Forward

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



Balance at 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
Additions based on tax positions related to the current year	3,093
Additions for tax positions of prior years	1,290
Reductions for tax positions of prior years	(9,369		)
Lapse of statute of limitations	(344		)
Settlements with tax authorities	(456		)
Cumulative Translation Adjustments and other	(53		)
Balance as of July 31, 2016	$	15,294
Additions based on tax positions related to the current year	2,500
Additions for tax positions of prior years	1,124
Reductions for tax positions of prior years	(62		)
Lapse of statute of limitations	(663		)
Settlements with tax authorities	(118		)
Cumulative Translation Adjustments and other	287
Balance as of July 31, 2017	$	18,362

Schedule of Open Tax Years by Major Jurisdictions

pany 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’17
France		F’14 — F’17
Germany		F’09 — F’17
United Kingdom		F’16 — F’17

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