Income Taxes (Tables)

12 Months Ended

Jul. 31, 2017

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,
	2017				2016			2015
	(in thousands)
Domestic		$	5,432		$	4,558		$	3,500
Foreign			(7	)		(191	)		4,469
		$	5,425		$	4,367		$	7,969

Components of Income Tax Provision

The income tax provision is summarized in the following table.

	Fiscal Year Ended July 31,
	2017			2016		2015
	(in thousands)
Current:
Federal	$	(149	)	$	1,155	$	488
State		42			177		80
Foreign		655			730		2,047
Total current		548			2,062		2,615
Deferred:
Federal		2,075			587		1,379
State		308			269		172
Foreign		(459	)		841		(397	)
Total deferred		1,924			1,697		1,154
Total income tax provision	$	2,472		$	3,759	$	3,769

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,
	2017			2016			2015
	(in thousands)
Income tax provision at the U.S. federal statutory income tax rate	$	1,845		$	1,485		$	2,709
Foreign dividend income		240			263			508
State taxes, net of federal benefit		200			312			166
Brazil valuation allowance		137			1,582			---
Other permanent differences		54			88			209
Peru non-deductible expenses		53			59			167
Other foreign taxes, net of federal benefit		14			153			161
International rate differences		2			(145	)		(338	)
Income from "pass-through" entities taxable to noncontrolling partners		(1	)		(39	)		31
Re-evaluation and settlements of tax contingencies		(33	)		---			---
Canada and China valuation allowance		(39	)		1			156
Income tax provision, as reported on the consolidated statements of operations	$	2,472		$	3,759		$	3,769

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,
	2017			2016
	(in thousands)
Deferred tax assets:
Contract and other reserves	$	520		$	3,023
Accrued compensation and expenses		752			734
Net operating loss carryforwards		1,470			1,265
Foreign and state income taxes		17			59
Foreign tax credit		296			296
Federal benefit from foreign tax audits		---			157
Other		714			(26	)
Deferred tax assets		3,769			5,508
Less: valuation allowance		(2,020	)		(2,278	)
Net deferred tax assets	$	1,749		$	3,230
Deferred tax liabilities:
Federal expense on state deferred taxes	$	(73	)	$	(133	)
Fixed assets and intangibles		(144	)		(759	)
Federal expense from foreign accounting differences		(332	)		(213	)
Net deferred tax liabilities	$	(549	)	$	(1,105	)

Summary of Valuation Allowance

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

	Fiscal Year Ended July 31,
	2017			2016
	(in thousands)
Balance at beginning of period	$	2,278		$	560
Additions during the period		2			1,765
Reductions during period		(260	)		(47	)
Balance at end of period	$	2,020		$	2,278