XML 72 R20.htm IDEA: XBRL DOCUMENT v3.20.1
Provision for Income Taxes
9 Months Ended
Apr. 30, 2020
Income Tax Disclosure [Abstract]  
Provision for Income Taxes Provision for Income TaxesThe overall effective income tax rate for the three months ended April 30, 2020 was (7.3)%, and the effective income tax rate for the nine months ended April 30, 2020 was 18.5%. These rates were both favorably impacted by certain foreign rate differences, mix of earnings between foreign and domestic operations, which include certain interest income not subject to corporate income tax, and with respect to the three months ended April 30, 2020, a reduction in forecasted full-year income before income taxes for the fiscal year ending July 31, 2020. The overall effective income tax rate for the three months ended April 30, 2019 was 24.3%, and the effective income tax rate for the nine months ended April 30, 2019 was 46.6%. The effective income tax rate for the three months ended April 30, 2019 was impacted by certain foreign rate differences as a result of the EHG acquisition. Included in the rate for the nine months ended April 30, 2019 were non-deductible foreign currency forward contract losses of $70,777 as discussed in Note 5 to the Condensed Consolidated Financial Statements. Under federal income tax law, the loss recognized for financial statement purposes was not deductible for federal income tax purposes.Within the next 12 months, the Company anticipates a decrease of approximately $4,700 in unrecognized tax benefits, and $1,300 in accrued interest related to unrecognized tax benefits recorded as of April 30, 2020, from expected settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations. Actual results may differ from these estimates.The Company files income tax returns in the U.S. federal jurisdiction and in many U.S. state and foreign jurisdictions. For U.S. federal income tax purposes, fiscal years 2017 and 2018 remain open and could be subject to examination. In major state and major foreign jurisdictions, fiscal years 2016 through 2018 generally remain open and could be subject to examination. The Company is currently under exam by certain U.S. state tax authorities for the fiscal years ended July 31, 2015 through 2017. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions in its liability for unrecognized tax benefits.