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Income Taxes
9 Months Ended
Apr. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 11 – Income Taxes
The Company applies the provisions of the accounting standard for uncertain tax positions to its income taxes. For benefits to be realized, a tax position must be more likely than not to be sustained upon examination. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.
The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently under examination by certain taxing authorities in the U.S. for fiscal years between 2014 and 2018. At this time, the Company does not believe that the outcome of any examination will have a material impact on the Company’s consolidated results of operations and financial position.
The Company’s effective income tax rates were 23.1% and 5.6% for the three months ended April 30, 2020 and 2019, respectively, and 10.8% and 15.4% for the nine months ended April 30, 2020 and 2019, respectively. The effective tax rates in the current and prior year were impacted from the result of recognizing excess tax benefits from the exercise of employee stock options of $8.8 million and $29.1 million for the three months ended April 30, 2020 and 2019, respectively, and $86.0 million and $34.1 million for the nine months ended April 30, 2020 and 2019, respectively.