Income Taxes (Tables)

12 Months Ended

Jul. 31, 2012

Components Of Deferred Tax Liabilities And Assets

Significant components of the Company’s deferred tax liabilities and assets are as follows (in thousands):



	July 31,
	2012			2011
Deferred income tax liabilities:
Fixed assets	$	145,316		$	131,024
Intangible assets	34,859			34,350
Real estate and other investments	3,511			5,326
Total	183,686			170,700
Deferred income tax assets:
Deferred membership revenue	21,056			22,668
Real estate and other investments	—			2,124
Deferred compensation and other accrued benefits	9,196			10,093
Stock-based compensation	15,053			13,436
Unfavorable lease obligation, net	14,855			15,754
Net operating loss carryforwards other tax credits	4,083			2,187
Other, net	7,516			1,985
Total	71,759			68,247
Valuation allowance for deferred income taxes	(1,588		)	(1,588		)
Deferred income tax assets, net of valuation allowance	70,171			66,659
Net deferred income tax liability	$	113,515		$	104,041

Net Current And Non-Current Components Of Deferred Income Taxes

The net current and non-current components of deferred income taxes recognized in the Consolidated Balance Sheets are as follows (in thousands):



	July 31,
	2012		2011
Net current deferred income tax asset	$	24,458	$	29,167
Net non-current deferred income tax asset	1,420		—
Net non-current deferred income tax liability	139,393		133,208
Net deferred income tax liability	$	113,515	$	104,041

Components Of Provision (Benefit) For Income Taxes

Significant components of the provision (benefit) for income taxes are as follows (in thousands):



	Year Ended July 31,
	2012		2011			2010
Current:
Federal	$	1,407	$	(9,886	)	$	19,661
State	51		(1,210		)	2,788
Total current	1,458		(11,096		)	22,449
Deferred:
Federal	7,682		28,087			(3,989		)
State	1,561		4,107			(438		)
Total deferred	9,243		32,194			(4,427		)
Provision for income taxes	$	10,701	$	21,098		$	18,022

Reconciliation Of Effective Income Tax Rate And Effective Rate From Continuing Operation

A reconciliation of the income tax provision from continuing operations and the amount computed by applying the United States Federal statutory income tax rate to income before income taxes is as follows:



	Year Ended July 31,
	2012		2011		2010
At U.S. Federal income tax rate	35.0	%	35.0	%	35.0	%
State income tax, net of Federal benefit	3.1	%	3.1	%	2.8	%
Nondeductible meals or entertainment	0.7	%	0.4	%	0.3	%
Noncontrolling interest	—	%	0.1	%	(3.5	)%
General business credits	(2.3	)%	(1.0	)%	(1.1	)%
Nondeductible compensation	2.2	%	—	%	—	%
Other	0.8	%	0.4	%	—	%
	39.5	%	38.0	%	33.5	%

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions, excluding associated deferred tax benefits and accrued interest and penalties, if applicable, is as follows (in thousands):



	Unrecognized Tax Benefits
Balance as of August 1, 2009	$	27,320
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	—
Lapse of statute of limitations	(272		)
Settlements	—
Balance as of July 31, 2010	$	27,048
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	—
Lapse of statute of limitations	(475		)
Settlements	—
Balance as of July 31, 2011	$	26,573
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	—
Lapse of statute of limitations	(302		)
Settlements	—
Balance as of July 31, 2012	$	26,271

- 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.

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