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Income Taxes
6 Months Ended
Jan. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

At January 31, 2020 and July 31, 2019, total unrecognized tax benefits were $8,114,000 and $7,215,000, respectively, including interest of $51,000 and $12,000, respectively. At January 31, 2020 and July 31, 2019, $2,874,000 and $325,000, respectively, of our unrecognized tax benefits were recorded as non-current income taxes payable on our Condensed Consolidated Balance Sheets. The remaining unrecognized tax benefits of $5,240,000 and $6,890,000 at January 31, 2020 and July 31, 2019, respectively, were presented as an offset to the associated non-current deferred tax assets on our Condensed Consolidated Balance Sheets. Of the total unrecognized tax benefits, $7,498,000 and $6,670,000, at January 31, 2020 and July 31, 2019, respectively, net of the reversal of the federal benefit recognized as a deferred tax asset relating to state reserves, would favorably impact our effective tax rate, if recognized. Unrecognized tax benefits result from income tax positions taken or expected to be taken on our income tax returns for which a tax benefit has not been recorded in our condensed consolidated financial statements. We do not expect that there will be any significant changes to our total unrecognized tax benefits within the next twelve months.

Our federal income tax returns for fiscal 2017 and 2018 are subject to potential future Internal Revenue Service ("IRS") audit. None of our state income tax returns prior to fiscal 2015 are subject to audit. TCS's federal income tax return for the tax period from January 1, 2016 to February 23, 2016, the date we acquired TCS, is subject to potential future IRS audit. None of TCS's state income tax returns prior to calendar year 2015 are subject to audit. Future tax assessments or settlements could have a material adverse effect on our consolidated results of operations and financial condition.