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INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2011

Components of earnings before income taxes

	2011		2010		2009
Domestic operations	$	108,072	$	15,331	$	(9,193	)
Foreign operations		311,450		312,390		279,979
	$	419,522	$	327,721	$	270,786

Provisions for income taxes

The provisions for income taxes consist of the following
items:
Current:
Federal, state and local	$	18,570	$	11,109		$	2,843
Foreign		74,944		80,340			82,966
	$	93,514		91,449			85,809
Deferred:
Federal, state and local		246		(3,050	)		(11,623	)
Foreign		10,266		(1,926	)		981
		10,512		(4,976	)		(10,642	)
	$	104,026	$	86,473		$	75,167

Reconciliation of the provisions for income taxes

	2011		2010		2009
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%

Foreign income and withholding taxes,
net of U.S. foreign tax credits	(3.7	)	(3.0	)	(6.9	)
Net unrecognized tax benefit adjustments	(6.0	)	(6.4	)	(0.5	)
Tax credits	(0.9	)	(0.2	)	(0.9	)
Other, net	0.4		1.0		1.1
Effective tax rate	24.8	%	26.4	%	27.8	%

Components of the net deferred tax asset

	2011			2010
Deferred tax asset:
Tax loss and tax credit carry-forwards	$	45,375		$	41,393
Inventories		22,476			32,954
Compensation and benefits		39,220			37,651
Environmental		5,616			4,714
Accrued expenses		27,123			25,999
Amortization		4,767			6,335
Net pensions		58,245			67,970
Other		31,393			20,492
Gross deferred tax asset		234,215			237,508
Valuation allowance		(22,814	)		(23,474	)
Total deferred tax asset		211,401			214,034
Deferred tax liability:
Amortization		(12,213	)		(12,549	)
Plant and equipment		(29,222	)		(25,990	)
Revenue recognition		(5,692	)		(16,591	)
Undistributed foreign earnings		(7,270	)		(3,570	)
Other		(4,096	)		(2,222	)
Total deferred tax liability		(58,493	)		(60,922	)
Net deferred tax asset	$	152,908		$	153,112

Deferred tax assets and liabilities, after netting by taxing jurisdiction

	2011			2010
Other current assets	$	67,140		$	62,797
Other non-current assets		97,767			98,282
Accrued liabilities		(1,188	)		(103	)
Deferred income taxes		(10,811	)		(7,864	)
Total	$	152,908		$	153,112

Summary of operating loss carryforwards

As of July 31, 2011, the Company had available tax net operating loss and tax credit carry forwards subject to expiration as follows:

	Operating
Year of Expiration	Losses
2012	$	–
2013-2021		3,709
2022-2031		–
Subtotal		3,709
Indefinite		89,033
Total	$	92,742

Summary of tax credit carryforward

As of July 31, 2011, the Company had available tax net operating loss and tax credit carry forwards subject to expiration as follows:


Year of Expiration	Tax Credits
2012	$	153
2013-2021		16,444
2022-2031		6,075
Subtotal		22,672
Indefinite		–
Total	$	22,672

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:

	2011			2010			2009
Beginning balance	$	227,256		$	240,683		$	242,287
Increases for tax positions taken during the current year		51,327			31,645			17,753
Increases to tax positions taken in prior years		1,516			3,189			8,203
Decreases to tax positions taken in prior years		(13,998	)		(31,344	)		(16,951	)
Settlements with tax authorities		(72,307	)		(6,260	)		(643	)
Expiration of statutes of limitation		(8,662	)		(6,785	)		–
Translation and other		3,248			(3,872	)		(9,966	)
Ending balance	$	188,380		$	227,256		$	240,683

- Definition

Tabular disclosure of 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

- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

+ References+ Details