Income Taxes (Tables)

12 Months Ended

Jul. 31, 2011


	Years Ended July 31,
	2011		2010		2009
United States	$	29,913	$	4,423	$	(383	)
Other Nations		114,145		104,979		97,655

Total	$	144,058	$	109,402	$	97,272

Income Tax Expense


	Years Ended July 31,
	2011			2010			2009
Current income tax expense:
United States	$	5,784		$	474		$	3,486
Other Nations		37,384			32,800			31,223
States (U.S.)		399			1,006			1,081

		43,567			34,280			35,790

Deferred income tax (benefit) expense:
United States		(5,161	)		(4,604	)		(7,633	)
Other Nations		(3,746	)		(1,942	)		(1,693	)
States (U.S.)		746			(288	)		686

		(8,161	)		(6,834	)		(8,640	)

Total	$	35,406		$	27,446		$	27,150

Components of Deferred Tax Assets and Liabilities


	July 31, 2011
	Assets			Liabilities			Total
Inventories	$	5,328		$	(37	)	$	5,291
Prepaid catalog costs		18			(3,038	)		(3,020	)
Employee benefits		892			—			892
Accounts receivable		1,979			(75	)		1,904
Other, net		8,429			(2,363	)		6,066

Current		16,646			(5,513	)		11,133

Fixed Assets		2,189			(7,672	)		(5,483	)
Intangible Assets		1,964			(33,798	)		(31,834	)
Capitalized R&D expenditures		2,807			—			2,807
Deferred compensation		23,654			—			23,654
Postretirement benefits		6,764			—			6,764
Tax credit carry-forwards and net operating losses		62,638			—			62,638
Less valuation allowance		(27,476	)		—			(27,476	)
Other, net		2,453			—			2,453

Noncurrent		74,993			(41,470	)		33,523

Total	$	91,639		$	(46,983	)	$	44,656


	July 31, 2010
	Assets			Liabilities			Total
Inventories	$	6,666		$	—		$	6,666
Prepaid catalog costs		16			(2,299	)		(2,283	)
Employee benefits		1,910			7			1,917
Accounts receivable		2,033			—			2,033
Other, net		6,512			(1,519	)		4,993

Current		17,137			(3,811	)		13,326

Fixed Assets		1,734			(9,270	)		(7,536	)
Intangible Assets		1,970			(26,969	)		(24,999	)
Capitalized R&D expenditures		7,953			—			7,953
Deferred compensation		22,100			—			22,100
Postretirement benefits		7,573			—			7,573
Tax credit carry-forwards and net operating losses		48,140			—			48,140
Less valuation allowance		(27,510	)		—			(27,510	)
Other, net		199			(6,429	)		(6,230	)

Noncurrent		62,159			(42,668	)		19,491

Total	$	79,296		$	(46,479	)	$	32,817

Reconciliation of Effective Income Tax Rate


	Years Ended July 31,
	2011			2010			2009
Tax at statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		0.0	%		0.6	%		1.6	%
International rate differential		(6.3	)%		(9.8	)%		(8.6	)%
Non-creditable withholding taxes		0.8	%		1.8	%		—
Rate variances arising from foreign subsidiary distributions		(6.5	)%		(2.6	)%		(3.4	)%
Adjustments to tax accruals and reserves		3.8	%		(0.5	)%		5.8	%
Research and development tax credits		(1.1	)%		(0.3	)%		(1.5	)%
Other, net		(1.1	)%		0.9	%		(1.0	)%

Effective tax rate		24.6	%		25.1	%		27.9	%

Uncertain Tax Positions


Balance at July 31, 2008	$	16,017
Additions based on tax positions related to the current year		2,526
Additions for tax positions of prior years(1)		4,056
Reductions for tax positions of prior years		(934	)
Lapse of statute of limitations		(944	)
Settlements with tax authorities		60
Cumulative Translation Adjustments and other		(1,319	)

Balance at July 31, 2009	$	19,462

Additions based on tax positions related to the current year		1,989
Additions for tax positions of prior years		3,934
Reductions for tax positions of prior years		(6,672	)
Lapse of statute of limitations		(194	)
Settlements with tax authorities		(1,054	)
Cumulative Translation Adjustments and other		203

Balance at July 31, 2010	$	17,668

Additions based on tax positions related to the current year		5,147
Additions for tax positions of prior years		2,387
Reductions for tax positions of prior years		(291	)
Lapse of statute of limitations		(2,803	)
Settlements with tax authorities		(728	)
Cumulative Translation Adjustments and other		963

Balance at July 31, 2011	$	22,343


(1)		Includes acquisitions.

Open tax years for Company's major jurisdictions


Jurisdiction		Open Tax Years
United States — Federal		F’09 — F’11
France		F’08 — F’11
Germany		F’03 — F’11
United Kingdom		F’09 — F’11

- Definition

The disclosure required for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details