INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2013

Components of earnings before income taxes

The components of earnings from continuing operations before income taxes are as follows:



	2013		2012		2011
Domestic operations	$	36,127	$	63,018	$	64,213
Foreign operations	375,499		303,892		304,506
	$	411,626	$	366,910	$	368,719

Provisions for income taxes



The provisions for income taxes consist of the following items:
Current:
Federal, state and local	$	1,677	$	32,016		$	2,779
Foreign	68,673		63,042			76,231
	70,350		95,058			79,010
Deferred:
Federal, state and local	671		(7,187		)	246
Foreign	10,643		(1,908		)	10,266
	11,314		(9,095		)	10,512
	$	81,664	$	85,963		$	89,522

Reconciliation of the provisions for income taxes

A reconciliation of the provisions for income taxes follows:



	2013		2012		2011
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Foreign income and withholding taxes, net of U.S. foreign tax credits	(12.3	)	(10.9	)	(3.3	)
Net unrecognized tax benefit adjustments	(2.6	)	(0.8	)	(6.8	)
Tax credits	(0.9	)	(0.4	)	(1.0	)
Other, net	0.6		0.5		0.4
Effective tax rate	19.8	%	23.4	%	24.3	%

Components of the net deferred tax asset

The components of the net deferred tax asset at July 31, are as follows:



	2013			2012
Deferred tax asset:
Tax loss and tax credit carry-forwards	$	43,076		$	67,428
Inventories	8,658			8,728
Compensation and benefits	39,231			40,046
Environmental	6,745			4,354
Accrued expenses	19,425			29,514
Amortization	2,364			3,271
Net pensions	63,144			80,901
Other	21,487			31,688
Gross deferred tax asset	204,130			265,930
Valuation allowance	(25,528		)	(20,536		)
Total deferred tax asset	178,602			245,394
Deferred tax liability:
Amortization	(36,145		)	(46,320		)
Plant and equipment	(35,321		)	(34,798		)
Revenue recognition	(6,948		)	(1,754		)
Undistributed foreign earnings	(78,360		)	(10,799		)
Other	(419		)	(2,817		)
Total deferred tax liability	(157,193		)	(96,488		)
Net deferred tax asset	$	21,409		$	148,906

Deferred tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the consolidated balance sheet at July 31:



	2013			2012
Other current assets	$	37,653		$	63,656
Other non-current assets	16,998			95,182
Accrued liabilities	(1,718		)	(1,052		)
Deferred income taxes	(31,524		)	(8,880		)
Total	$	21,409		$	148,906

Summary of operating loss carryforwards

As of July 31, 2013, the Company had available tax net operating loss and credit carry forwards subject to expiration as follows:



Year of Expiration	Operating Losses		Tax Credits
2014	$	1,033	$	11
2015-2023	2,577		2,377
2024-2033	10,754		2,083
Subtotal	14,364		4,471
Indefinite	71,465		10,729
Total	$	85,829	$	15,200

Reconciliation of the total amounts of gross unrecognized tax benefits

The following is a tabular reconciliation of the total amounts of gross unrecognized tax benefits at July 31:



	2013			2012			2011
Beginning balance	$	194,829		$	188,380		$	227,256
Increases for tax positions taken during the current year	40,446			40,413			51,327
Increases to tax positions taken in prior years	385			7,940			1,516
Decreases to tax positions taken in prior years	(23,522		)	(16,965		)	(13,998		)
Settlements with tax authorities	(6,233		)	(15,455		)	(72,307		)
Expiration of statutes of limitation	(1,310		)	(4,885		)	(8,662		)
Translation and other	(1,219		)	(4,599		)	3,248
Ending balance	$	203,376		$	194,829		$	188,380