Provision for Income Taxes

3 Months Ended

Oct. 31, 2021

Income Tax Disclosure [Abstract]

Provision for Income Taxes

Provision for Income Taxes

The overall effective income tax rate for the three months ended October 31, 2021 was 21.7%. This rate was favorably impacted by certain foreign tax rate differences which include certain interest income not subject to corporate income tax. The Company also recognized a tax benefit from the vesting of share-based compensation awards during the three months ended October 31, 2021. The overall effective income tax rate for the three months ended October 31, 2020 was 21.0%. This rate was favorably impacted by certain foreign tax rate differences, which include certain interest income not subject to corporate income tax.

Within the next 12 months, the Company anticipates a decrease of approximately $3,900 in unrecognized tax benefits, and $670 in accrued interest related to unrecognized tax benefits recorded as of October 31, 2021, 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 2018 through 2020 remain open and could be subject to examination. In major state jurisdictions, fiscal years 2018 through 2020 generally remain open and could be subject to examination. In major foreign jurisdictions, fiscal years 2015 through 2020 remain open and subject to examination. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions in its liability for unrecognized tax benefits.