Income Taxes (Tables)

12 Months Ended

Jul. 31, 2012

Schedule of Income (loss) from Continuing Operations Before Income Taxes

The components of (loss) income from continuing operations before income taxes are as follows:

Year ended July 31 (in thousands)	2012			2011			2010
Domestic	$	14,435		$	28,417		$	11,354
Foreign		(21,421	)		(18,475	)		(13,456	)
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	$	(6,986	)	$	9,942		$	(2,102	)

Schedule of Deferred Income Tax Assets and Deferred Income Tax Liabilities

Significant components of the Company’s deferred income tax assets and deferred income tax liabilities consist of the following:

July 31 (in thousands)	2012			2011
Deferred income tax assets:
Bad debt reserve	$	2,751		$	3,893
Accrued expenses		17,666			15,478
Exercise of stock options and lapsing of restrictions on restricted stock		1,342			1,814
Charitable contributions		7,266			12,397
Impairment		25,671			27,552
Depreciation		409			3,900
Unrealized gain		1,102			—
Net operating loss		183,061			142,376
Credits		2,595			2,300
Total deferred income tax assets		241,863			209,710
Deferred income tax liabilities:
Unrealized loss		—			(3,041	)
Valuation allowance		(204,977	)		(206,669	)
DEFERRED INCOME TAX ASSETS, NET	$	36,886		$	—

Schedule of Benefit from Income Taxes

The benefit from income taxes consists of the following:

Year ended July 31 (in thousands)	2012			2011		2010
Current:
Federal	$	1,632		$	4,073	$	10,059
State and local		2,497			2,413		(716	)
Foreign		1,741			3,184		(669	)
		5,870			9,670		8,674
Deferred:
Federal		36,166			2,137		—
State and local		764			677		—
Foreign		(44	)		—		—
		36,886			2,814		—
BENEFIT FROM INCOME TAXES	$	42,756		$	12,484	$	8,674

Schedule of Statutory Income Tax Rate and Income Taxes Provided

The differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows:

Year ended July 31 (in thousands)	2012			2011			2010
U.S. federal income tax at statutory rate	$	2,445		$	(3,480	)	$	736
Valuation allowance		43,637			17,328			14,411
Foreign tax rate differential		(5,800	)		(3,282	)		(5,379	)
Nondeductible expenses		(26	)		(40	)		(44	)
Other		—			49			(399	)
Prior year tax benefit		2,500			2,000			(400	)
State and local income tax, net of federal benefit		—			(91	)		(251	)
BENEFIT FROM INCOME TAXES	$	42,756		$	12,484		$	8,674

Schedule of Change in Valuation Allowance

The change in the valuation allowance is as follows:

Year ended July 31 (in thousands)	Balance at beginning of year		Additions charged to costs and expenses		Deductions			Balance at end of year
2012
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	206,669	$	41,925	$	(43,617	)	$	204,977
2011
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	248,345	$	—	$	(41,676	)	$	206,669
2010
Reserves deducted from deferred income taxes, net:
Valuation allowance	$	192,729	$	55,616	$	—		$	248,345

Summary of Change in Balance of Unrecognized Income Tax Benefits

The table below summarizes the change in the balance of unrecognized income tax benefits:

Year ended July 31 (in thousands)	2012			2011		2010
Balance at beginning of year	$	3,754		$	1,754	$	1,754
Additions based on tax positions related to the current year		—			—		—
Additions for tax positions of prior years		—			2,000		—
Reductions for tax positions of prior years		—			—		—
Settlements		(3,754	)		—		—
Lapses of statutes of limitations		—			—		—
Balance at end of year	$	—		$	3,754	$	1,754