Income Taxes (Tables)

12 Months Ended

Jul. 31, 2013

Reconciliation of Income Taxes at United States Rate to Effective Tax Rate

A reconciliation of income taxes at the U.S. statutory rate to the effective tax rate follows:

	Year Ended July 31,
	2013			2012			2011
U.S. Federal statutory tax rate		35	%		35	%		35	%
State income taxes, net of federal tax benefit		(1	)		(1	)		(2	)
Domestic production benefit		(2	)		(2	)		(2	)
General business credit (U.S. R&D)		(4	)		(1	)		(10	)
Valuation allowance		1			1			0
Effect of international operations		(2	)		(3	)		(3	)
(Decrease) increase in tax reserves		1			(26	)		5
Other items, net		1			0			(2	)
Effective tax rate		29	%		3	%		21	%

Components of Provision (Benefit) for Income Taxes on Continuing Operations

The components of the provision (benefit) for income taxes on continuing operations are as follows:

	July 31,
	2013			2012			2011
Current income taxes provision (benefit):
U.S.:
Federal	$	11,054		$	3,403		$	5,461
State		464			541			534
Non-U.S.		452			232			(37	)
Current income tax provision (benefit)	$	11,970		$	4,176		$	5,958
Deferred income taxes provision (benefit):
U.S.:
Federal	$	12,364		$	(3,337	)	$	(113	)
State		(133	)		25			167
Non-U.S.		(11,225	)		264			(1,700	)
Deferred income tax provision (benefit)		1,006			(3,048	)		(1,646	)
	$	12,976		$	1,128		$	4,312

Income from Continuing Operations Before Income Taxes

Income from continuing operations before income taxes from domestic and foreign operations is as follows:

	July 31,
	2013		2012		2011
Domestic	$	24,901	$	30,249	$	15,676
Foreign		19,196		13,950		5,256
Income from continuing operations before income taxes	$	44,097	$	44,199	$	20,932

Components of Net Deferred Tax Assets

Net deferred taxes, detailed below, recognize the impact of temporary differences between the amounts of assets and liabilities recorded for financial statement purposes and such amounts measured in accordance with tax laws:

	July 31,
	2013			2012
Assets
Compensation	$	11,607		$	14,233
Accruals and reserves		5,082			4,987
Goodwill and intangibles		—			1,110
Comprehensive income		—			1,219
Net operating loss and credit carryforwards		8,909			7,140
Other		3,253			1,705
Deferred tax assets	$	28,851		$	30,394
Valuation allowance		(6,294	)		(5,537	)
Total deferred tax assets	$	22,557		$	24,857
Liabilities
Depreciation related		(5,798	)		(5,299	)
Goodwill and intangibles		(4,329	)		—
Comprehensive income		(176	)		—
Total deferred tax liabilities	$	(10,303	)	$	(5,299	)
Net deferred taxes	$	12,254		$	19,558

Summary of Changes in Unrecognized Income Tax Benefits

The following table summarizes the changes in our unrecognized income tax benefits for fiscal years 2013 and 2012:

	July 31,
	2013			2012
Beginning balance	$	6,756		$	16,250
Increases based on tax positions related to current year		883			790
Increases for tax positions of prior years		157			27
Decreases for tax positions of prior years		—			(180	)
Decreases due to settlements with taxing authorities		—			(9,802	)
Decreases due to lapse of the applicable statute of limitations		(540	)		(303	)
Adjustment due to foreign exchange rate		—			(26	)
Ending balance	$	7,256		$	6,756
Net interest as of end of fiscal year	$	682		$	640