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INCOME TAXES
9 Months Ended
Apr. 30, 2012
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The Company’s effective tax rate on continuing operations for the nine months ended April 30, 2012 and April 30, 2011 was 22.8% and 29.7%, respectively. For the nine months ended April 30, 2012 and April 30, 2011, the effective tax rate on continuing operations varied from the U.S. federal statutory rate primarily due to the benefits of foreign operations, offset by tax costs of $8,409 associated with the establishment of the Company’s Asian headquarters recorded in the third quarter of fiscal year 2011.
At April 30, 2012 and July 31, 2011, the Company had gross unrecognized income tax benefits of $215,798 and $188,380, respectively. During the nine months ended April 30, 2012, the amount of gross unrecognized tax benefits increased by $27,418, 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 April 30, 2012, the amount of net unrecognized income tax benefits that, if recognized, would impact the effective tax rate was $144,360.
At April 30, 2012 and July 31, 2011, the Company had liabilities of $33,557 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 $61,633. 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.