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INCOME TAXES
6 Months Ended
Jan. 31, 2012
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The Company’s effective tax rate for the six months ended January 31, 2012 and January 31, 2011 was 24.7% and 27.0%, respectively. For the six months ended January 31, 2012 and January 31, 2011, the effective tax rate varied from the U.S. federal statutory rate primarily due to the benefits of foreign operations.
At January 31, 2012 and July 31, 2011, the Company had gross unrecognized income tax benefits of $196,243 and $188,380, respectively. During the six months ended January 31, 2012, the amount of gross unrecognized tax benefits increased by $7,863, primarily due to tax positions taken during the fiscal year, partially offset by the impact of foreign currency translation and the expiration of various statutes of limitations. As of January 31, 2012, the amount of net unrecognized income tax benefits that, if recognized, would impact the effective tax rate was $136,397.
At January 31, 2012 and July 31, 2011, the Company had liabilities of $30,503 and $29,652, respectively, for potential payment of interest and penalties.
Based on recent discussion with various tax authorities and due to the expiration of various statutes of limitations, the Company believes that it is reasonably possible that the gross amount of unrecognized tax benefits may decrease within the next twelve months by a range of zero to $61,496. As a result, the Company has reclassified $57,126 of income taxes payable and $17,870 of interest payable from non-current liabilities to current liabilities, respectively.