Income Taxes (Tables)

12 Months Ended

Jul. 31, 2016

Income Taxes [Abstract]

Income (Loss) Before Income Tax Provision

Income (loss) before income tax provision is summarized in the following table.

	Fiscal Year Ended July 31,
	2016			2015		2014
	(in thousands)
Domestic	$	4,558		$	3,500	$	(4,305	)
Foreign		(191	)		4,469		3,858
	$	4,367		$	7,969	$	(447	)

Components of Income Tax Provision

The income tax provision is summarized in the following table.

	Fiscal Year Ended July 31,
	2016		2015			2014
	(in thousands)
Current:
Federal	$	1,155	$	488		$	86
State		177		80			63
Foreign		730		2,047			1,012
Total current		2,062		2,615			1,161
Deferred:
Federal		587		1,379			(975	)
State		269		172			24
Foreign		841		(397	)		133
Total deferred		1,697		1,154			(818	)
Total income tax provision	$	3,759	$	3,769		$	343

Reconciliation of Income Tax Provision to Effective Tax Rate

A reconciliation of the income tax provision using the statutory U.S. income tax rate compared with the actual income tax provision reported on the consolidated statements of operations is summarized in the following table.

	Fiscal Year Ended July 31,
	2016			2015			2014
	(in thousands)
Income tax (benefit) provision at the U.S. federal statutory income tax rate	$	1,485		$	2,709		$	(152	)
Brazil valuation allowance		1,582			---			---
Income from "pass-through" entities taxable to noncontrolling partners		(39	)		31			35
International rate differences		(145	)		(338	)		(144	)
Other foreign taxes, net of federal benefit		153			161			(34	)
Foreign dividend income		263			508			597
State taxes, net of federal benefit		312			166			28
Re-evaluation and settlements of tax contingencies		---			---			(20	)
Peru non-deductible expenses		59			167			44
Canada and China valuation allowance		1			156			(83	)
Other permanent differences		88			209			72
Income tax provision, as reported on the consolidated statements of operations	$	3,759		$	3,769		$	343

Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities are summarized in the following table.

	Balance at July 31,
	2016			2015
	(in thousands)
Deferred tax assets:
Contract and other reserves	$	3,023		$	3,257
Accrued compensation and expenses		734			836
Net operating loss carryforwards		1,265			737
Foreign and state income taxes		59			57
Foreign tax credit		296			296
Federal benefit from foreign tax audits		157			212
Other		(26	)		454
Deferred tax assets		5,508			5,849
Less: valuation allowance		(2,278	)		(560	)
Net deferred tax assets	$	3,230		$	5,289
Deferred tax liabilities:
Federal expense on state deferred taxes	$	(133	)	$	(225	)
Fixed assets and intangibles		(759	)		(341	)
Federal expense from foreign accounting differences		(213	)		(542	)
Net deferred tax liabilities	$	(1,105	)	$	(1,108	)

Summary of Valuation Allowance

Activity within the deferred tax asset valuation allowance is summarized in the following table.

	Fiscal Year Ended July 31,
	2016			2015
	(in thousands)
Balance at beginning of period	$	560		$	398
Additions during the period		1,765			176
Reductions during period		(47	)		(14	)
Balance at end of period	$	2,278		$	560