INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2014

Components of earnings before income taxes

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



	2014		2013		2012
Domestic operations	$	89,598	$	36,127	$	63,018
Foreign operations	361,817		375,499		303,892
	$	451,415	$	411,626	$	366,910

Provisions for income taxes



The provisions for income taxes consist of the following items:
Current:
Federal, state and local	$	27,370		$	1,677	$	32,016
Foreign	53,158			68,673		63,042
	80,528			70,350		95,058
Deferred:
Federal, state and local	14,749			671		(7,187		)
Foreign	(7,818		)	10,643		(1,908		)
	6,931			11,314		(9,095		)
	$	87,459		$	81,664	$	85,963

Reconciliation of the provisions for income taxes

A reconciliation of the provisions for income taxes follows:



	2014		2013		2012
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Foreign income and withholding taxes, net of U.S. foreign tax credits	(10.0	)	(12.3	)	(10.9	)
Net unrecognized tax benefit adjustments	(6.1	)	(2.6	)	(0.8	)
Tax credits	(0.4	)	(0.9	)	(0.4	)
Other, net	0.9		0.6		0.5
Effective tax rate	19.4	%	19.8	%	23.4	%

Components of the net deferred tax asset

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



	2014			2013
Deferred tax asset:
Tax loss and tax credit carry-forwards	$	53,513		$	43,076
Inventories	10,206			8,658
Compensation and benefits	40,393			39,231
Environmental	7,451			6,745
Accrued expenses	16,393			19,425
Amortization	2,657			2,364
Net pensions	58,431			63,144
Other	4,614			21,487
Gross deferred tax asset	193,658			204,130
Valuation allowance	(38,911		)	(25,528		)
Total deferred tax asset	154,747			178,602
Deferred tax liability:
Amortization	(45,475		)	(36,145		)
Plant and equipment	(44,843		)	(35,321		)
Revenue recognition	(3,098		)	(6,948		)
Undistributed foreign earnings	(75,955		)	(78,360		)
Other	(436		)	(419		)
Total deferred tax liability	(169,807		)	(157,193		)
Net deferred tax (liability)/asset	$	(15,060	)	$	21,409

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



	2014			2013
Other current assets	$	39,001		$	37,653
Other non-current assets	16,569			16,998
Accrued liabilities	(3,327		)	(1,718		)
Deferred income taxes	(67,303		)	(31,524		)
Total	$	(15,060	)	$	21,409

Summary of operating loss carryforwards

As of July 31, 2014, the Company had available tax net operating loss and credit carry forwards subject to expiration as follows:



Year of Expiration	Operating Losses		Tax Credits
2015	$	543	$	17
2016-2024	1,739		2,287
2025-2034	2,239		1,565
Subtotal	4,521		3,869
Indefinite	104,251		12,478
Total	$	108,772	$	16,347

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:



	2014			2013			2012
Beginning balance	$	203,376		$	194,829		$	188,380
Increases for tax positions taken during the current year	31,345			40,446			40,413
Increases to tax positions taken in prior years	12,363			385			7,940
Decreases to tax positions taken in prior years	(6,757		)	(23,522		)	(16,965		)
Settlements with tax authorities	(36,138		)	(6,233		)	(15,455		)
Expiration of statutes of limitation	(5,188		)	(1,310		)	(4,885		)
Translation and other	3,563			(1,219		)	(4,599		)
Ending balance	$	202,564		$	203,376		$	194,829