Income Tax Matters (Tables)

12 Months Ended

Jul. 31, 2012

Income Tax Matters [Abstract]

Deferred income tax assets and liabilities

The Company and its wholly owned subsidiaries file as a single entity for income tax reporting purposes.  The net deferred income tax amounts included in the accompanying consolidated balance sheets as of July 31, 2012 and 2011 include the following amounts as deferred income tax assets and liabilities (dollars in thousands):

	2012		2011
Deferred tax assets:
Accounts receivable	$	85	$	78
Inventories		185		168
Accrued liabilities		165		162
Deferred revenue		6,423		6,265
Other		813		384
Loss on foreign subsidiaries		1,949		1,898
		9,620		8,955
Deferred tax liability
Property and equipment		1,362		915
Other intangible assets		2,923		2,333
		4,285		3,248
	$	5,335	$	5,707

The deferred tax amounts noted above have been classified on the accompanying consolidated balance sheets as of July 31, 2012 and 2011, as follows (dollars in thousands):

	2012		2011
Current assets	$	1,247	$	792
Long-term asset (liability)		4,088		4,915
	$	5,335	$	5,707

Provision for income taxes

The provision for income taxes for the years ended July 31, 2012, 2011 and 2010, consisted of the following (dollars in thousands):

	2012		2011			2010
Current payable	$	2,153	$	8,831		$	3,680
Deferred		153		(6,388	)		(588	)
	$	2,306	$	2,443		$	3,092

Reconciliation of income tax at statutory rate to effective rate

Reconciliation of the Company's income tax at the statutory rate to the Company's effective rate is as follows:

	2012			2011			2010
Computed at the statutory rate		34.0	%		35.0	%		34.0	%
State taxes, net of federal tax benefit		2.4			2.3			3.0
Production deduction for domestic manufacturers		(2.9	)		(2.9	)		(2.0	)
Research and experimentation		(0.8	)		(3.5	)		(0.6	)
Other		(3.2	)		(0.6	)		0.6
		29.5	%		30.3	%		35.0	%