XML 58 R44.htm IDEA: XBRL DOCUMENT v3.22.2.2
INCOME TAXES (Tables)
 12 Months Ended
Jul. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Loss from Continuing Operations before Provision for Income Taxes The components of (loss) income before provision for income taxes are as follows:
Fiscal Year Ended
July 31,
20222021
(In thousands)
Income (loss) from operations before income taxes:
U.S.$(5,189)$(9,590)
Foreign7,321 6,592 
Total income (loss) from operations before income taxes$2,132 $(2,998)
Components of Income Tax Expense from Operations
The components of income tax expense from operations consist of the following:
Fiscal Year Ended
July 31,
20222021
(In thousands)
Current provision:
Federal$— $— 
State429 574 
Foreign1,918 1,033 
2,347 1,607 
Deferred provision:
Federal8,849 6,102 
State76 1,032 
Foreign116 96 
9,041 7,230 
Total tax provision$11,388 $8,837 
Components of Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities are as follows:
July 31,
20222021
(In thousands)
Deferred tax assets:
Accruals and reserves$4,295 $18,104 
Tax basis in excess of financial basis for intangible and fixed assets901 181 
Lease liability2,288 9,544 
Interest expense disallowance2,357 7,764 
Credit carry forwards25 28 
Net operating loss and capital loss carry forwards478,530 459,008 
Total gross deferred tax assets488,396 494,629 
Less: valuation allowance(485,212)(456,610)
Net deferred tax assets$3,184 $38,019 
Deferred tax liabilities:
Financial basis in excess of tax basis for intangible and fixed assets$(69)$(28,593)
Right of use asset(2,154)(9,015)
Convertible debt(917)(1,342)
Total gross deferred tax liabilities(3,140)(38,950)
Net deferred tax liabilities$44 $(931)
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 (loss) income from continuing operations before income taxes as a result of the following:
Fiscal Year Ended
July 31,
20222021
(In thousands)
Computed "expected" income tax expense (benefit)$448 $(630)
Increase (decrease) in income tax expense resulting from:
Change in valuation allowance25,737 4,085 
Foreign tax rate differential56 (33)
Goodwill impairment— 5,388 
Nondeductible expenses159 126 
Foreign withholding taxes134 (1,310)
Foreign other adjustments951 347 
GILTI4,775 — 
Addition of uncertain tax position reserves58 (74)
Worthless stock deduction(20,455)— 
State income taxes, net of federal benefit(1,042)317 
Deferred true-up751 — 
Other(184)621 
Actual income tax expense$11,388 $8,837 
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:
Fiscal Year Ended
July 31,
20222021
(In thousands)
Balance as of beginning of year$2,140 $2,460 
Additions for current year tax positions— 52 
Currency translation(4)(3)
Reductions for lapses in statute of limitations(67)(369)
Reductions for member leaving consolidated group(1,498)— 
Balance as of end of year$571 $2,140