INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2019

Components of Loss from Continuing Operations before Provision for Income Taxes

The components of loss from continuing operations before provision for income taxes are as follows:



	Twelve Months Ended July 31,
	2019			2018
	(In thousands)
Income (loss) from operations before income taxes:
U.S.	$	(68,959	)	$	(60,574	)
Foreign	6,860			25,286
Total loss from operations before income taxes	$	(62,099	)	$	(35,288	)

Components of Income Tax Expense

The components of income tax expense have been recorded in the Company's consolidated financial statements as follows:



	Twelve Months Ended July 31,
	2019		2018
	(In thousands)
Income tax expense (benefit) from operations	$	4,670	$	(71,202	)
Total income tax expense (benefit)	$	4,670	$	(71,202	)

Components of Income Tax Expense from Operations

The components of income tax expense from operations consist of the following:



	Twelve Months Ended July 31,
	2019		2018
	(In thousands)
Current provision
Federal	$	—	$	—
State	288		—
Foreign	1,525		7,592
	1,813		7,592
Deferred provision:
Federal	1,563		(76,168		)
State	753		(2,352		)
Foreign	541		(274		)
	2,857		(78,794		)
Total tax provision	$	4,670	$	(71,202	)

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:



	July 31, 2019			July 31, 2018
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	21,297		$	16,070
Tax basis in excess of financial basis of investments in affiliates	6,534			6,232
Tax basis in excess of financial basis for intangible and fixed assets	187			311
Net operating loss and capital loss carry forwards	469,735			468,129
Total gross deferred tax assets	497,753			490,742
Less: valuation allowance	(451,189		)	(438,467		)
Net deferred tax assets	$	46,564		$	52,275
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets	$	(43,885	)	$	(50,141	)
Convertible Debt	(1,761		)	(634		)
Total gross deferred tax liabilities	(45,646		)	(50,775		)
Net deferred tax asset	$	918		$	1,500

Reconciliation of Income Tax Expense Attributable to Income from Continuing Operations

Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 21.0% to income (loss) from continuing operations before income taxes as a result of the following:



	Twelve Months Ended July 31,
	2019			2018
	(In thousands)
Computed "expected" income tax expense (benefit)	$	(13,041	)	$	(9,467	)
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance	16,158			(329,415		)
Foreign dividends	—			7,379
Foreign tax rate differential	(593		)	(1,948		)
Federal rate change	—			280,438
Nondeductible goodwill impairment	—			191
Nondeductible expenses	2,484			(15,852		)
Foreign withholding taxes	336			1,961
Addition (reversal) of uncertain tax position reserves	645			(48		)
State benefit of U.S. Loss	—			(4,654		)
State income taxes, net of federal benefit	113			—
Other	(1,432		)	213
Actual income tax expense	$	4,670		$	(71,202	)

Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:



	Twelve Months Ended July 31,
	2019			2018
	(In thousands)
Balance as of beginning of year	$	1,525		$	681
Additions for current year tax positions	704			903
Currency translation	(22		)	—
Reductions for lapses in statute of limitations	—			(59		)
Balance as of end of year	$	2,207		$	1,525