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Income Taxes
 12 Months Ended
Jul. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes consists of the following:
 Years Ended July 31,
 202520242023
United States$120,323 $111,647 $92,053 
Other Nations116,774 136,194 133,643 
Total$237,097 $247,841 $225,696 
Income tax expense consists of the following:
 Years Ended July 31,
 202520242023
Current income tax expense:
United States$21,573 $22,637 $26,324 
Other Nations29,576 32,121 31,093 
States (U.S.)4,315 5,267 5,894 
$55,464 $60,025 $63,311 
Deferred income tax (benefit) expense:
United States$(2,667)$(7,999)$(10,577)
Other Nations(3,640)(133)251 
States (U.S.)(1,316)(1,267)(2,146)
$(7,623)$(9,399)$(12,472)
Total income tax expense$47,841 $50,626 $50,839 
The tax effects of temporary differences are as follows as of July 31, 2025 and 2024:
 July 31, 2025
 AssetsLiabilitiesTotal
Inventories$9,147 $(59)$9,088 
Employee compensation and benefits8,982 — 8,982 
Accounts receivable1,772 — 1,772 
Fixed assets8,610 (8,085)525 
Intangible assets722 (63,886)(63,164)
Capitalized R&D expenditures30,525 — 30,525 
Deferred and equity-based compensation9,413 — 9,413 
Postretirement benefits3,336 (252)3,084 
Tax credit and net operating loss carry-forwards84,160 — 84,160 
Valuation allowances(82,180)— (82,180)
Other, net26,959 (14,067)12,892 
Total$101,446 $(86,349)$15,097 
 July 31, 2024
 AssetsLiabilitiesTotal
Inventories$7,462 $(59)$7,403 
Employee compensation and benefits9,248 — 9,248 
Accounts receivable1,828 — 1,828 
Fixed assets3,507 (8,148)(4,641)
Intangible assets639 (48,248)(47,609)
Capitalized R&D expenditures20,252 — 20,252 
Deferred and equity-based compensation9,071 — 9,071 
Postretirement benefits2,463 (52)2,411 
Tax credit and net operating loss carry-forwards43,929 — 43,929 
Valuation allowances(47,224)— (47,224)
Other, net20,346 (5,462)14,884 
Total$71,521 $(61,969)$9,552 
Tax credit carry-forwards as of July 31, 2025 consist of the following:
•Foreign net operating loss carry-forwards of $204,016, of which $178,936 have no expiration date and the remainder of which expire from fiscal 2026 to fiscal 2035.
•State net operating loss carry-forwards of $22,423, all of which expire in fiscal 2032.
•Foreign tax credit carry-forwards of $16,919, which expire from fiscal 2026 to fiscal 2035.
•State credit carry-forwards of $13,955, which expire from fiscal 2026 to fiscal 2040.
Rate Reconciliation
A reconciliation of the income tax rate computed by applying the statutory U.S. federal income tax rate to income before income taxes to the total income tax expense is as follows:
 Years Ended July 31,
 202520242023
Tax at statutory rate21.0 %21.0 %21.0 %
International rate differential (1)
0.8 %0.7 %1.7 %
Adjustments to tax accruals and reserves(0.9)%0.2 %0.2 %
Research and development tax credits(1.9)%(1.6)%(1.3)%
Valuation allowance against foreign tax credits and foreign net operating loss carry-forwards0.3 %0.2 %1.2 %
Other adjustments, net0.9 %(0.1)%(0.3)%
Income tax rate20.2 %20.4 %22.5 %
(1)Represents the foreign income tax rate differential when compared to the U.S. statutory income tax rate for the years ended July 31, 2025, 2024, and 2023.
Uncertain Tax Positions
The Company follows the guidance in ASC 740, “Income Taxes” regarding uncertain tax positions. The guidance requires application of a more-likely-than-not threshold to the recognition and de-recognition of income tax positions. A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows:
Balance as of July 31, 2022$20,564 
Additions based on tax positions related to the current year2,902 
Additions for tax positions of prior years792 
Reductions for tax positions of prior years(19)
Lapse of statute of limitations(2,682)
Settlements with tax authorities(782)
Cumulative translation adjustments and other124 
Balance as of July 31, 2023$20,899 
Additions based on tax positions related to the current year3,130 
Additions for tax positions of prior years1,594 
Reductions for tax positions of prior years(43)
Lapse of statute of limitations(2,666)
Settlements with tax authorities(257)
Cumulative translation adjustments and other(67)
Balance as of July 31, 2024$22,590 
Additions based on tax positions related to the current year3,583 
Additions for tax positions of prior years (1)
1,035 
Reductions for tax positions of prior years(1,616)
Lapse of statute of limitations(4,111)
Settlements with tax authorities(88)
Cumulative translation adjustments and other409 
Balance as of July 31, 2025$21,802 
(1) Includes acquisitions.
Of the $21,802 of unrecognized tax benefits, if recognized, $18,318 would affect the Company's income tax rate. The Company has classified $18,502 and $19,527, excluding interest and penalties, of the reserve for uncertain tax positions in “Other liabilities” on the consolidated balance sheets as of July 31, 2025 and 2024, respectively. The Company has classified $3,300 and $3,063, excluding interest and penalties, as a reduction of long-term deferred income tax assets on the accompanying consolidated balance sheets as of July 31, 2025 and 2024, respectively.
Interest expense is recognized on the amount of potentially underpaid taxes associated with the Company's tax positions, beginning in the first period in which interest starts accruing under the respective tax law and continuing until the tax positions are settled. The Company recognized interest expense of $299, $893, and $700 on the reserve for uncertain tax positions during the years ended July 31, 2025, 2024, and 2023, respectively. The Company also recognized benefits related to penalties of $120, $38, and $281 during the years ended July 31, 2025, 2024, and 2023, respectively. These amounts are net of reversals due to reductions for tax positions of prior years, statute of limitations, and settlements. At July 31, 2025 and 2024, the Company had $4,740 and $4,448, respectively, accrued for interest on unrecognized tax benefits. Penalties are accrued if the tax position does not meet the minimum statutory threshold to avoid the payment of a penalty. At July 31, 2025 and 2024, the Company had $1,893 and $1,631, respectively, accrued for penalties on unrecognized tax benefits. Interest expense and penalties are recorded as a component of “Income tax expense” in the consolidated statements of income.
The Company estimates that it is reasonably possible that the unrecognized tax benefits may be reduced by up to $3,117 in the next 12 months as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or the expiration of statute of limitations, all of which, if recognized, would result in an income tax benefit in the consolidated statements of income.
During the year ended July 31, 2025, the Company recognized $6,033 of tax benefits (including interest and penalties) associated with the lapse of statutes of limitations.
The Company and its subsidiaries file income tax returns in the U.S., various states, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions:
JurisdictionOpen Tax Years
United States — FederalF’22 — F’25