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INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2022

The sources of income before income taxes are as follows:


	For the Fiscal Year Ended July 31,
	2022		2021		2020
United States	$	1,359,841	$	725,262	$	258,483
Foreign	100,023		119,319		14,413
Total	$	1,459,864	$	844,581	$	272,896

The components of the provision for income taxes are as follows:


	For the Fiscal Year Ended July 31,
Income Taxes:	2022		2021		2020
U.S. Federal	$	296,716	$	148,706	$	49,494
U.S. state and local	55,159		26,344		9,891
Foreign	17,848		17,571		1,842
Total current expense	369,723		192,621		61,227
U.S. Federal	(21,317)		162		6,472
U.S. state and local	(2,089)		(365)		(197)
Foreign	(24,696)		(8,707)		(15,990)
Total deferred expense (benefit)	(48,102)		(8,910)		(9,715)
Total income tax expense	$	321,621	$	183,711	$	51,512

The differences between income tax expense at the federal statutory rate and the actual income tax expense are as follows:


	For the Fiscal Year Ended July 31,
	2022		2021		2020
Provision at federal statutory rate	$	306,571	$	177,362	$	57,308
Differences between U.S. federal statutory and foreign tax rates	58,573		(16,857)		(50,898)
Foreign currency remeasurement (gains) losses	(73,914)		1,595		30,246
U.S. state and local income taxes, net of federal benefit	38,919		20,407		7,616







Other	(8,528)		1,204		7,240
Total income tax expense	$	321,621	$	183,711	$	51,512

A summary of the deferred income tax balances is as follows:


	July 31,
	2022		2021
Deferred income tax asset (liability):
Inventory basis	$	6,596	$	3,158
Employee benefits	10,171		10,485
Self-insurance reserves	6,792		6,949
Accrued product warranties	68,083		53,258
Accrued incentives	7,064		4,403
Sales returns and allowances	2,447		934
Accrued expenses	4,866		7,496
Property, plant and equipment	(44,508)		(36,662)
Operating leases	11,193		10,615
Deferred compensation	26,924		19,260
Intangibles	(219,726)		(173,360)
Net operating loss and other carryforwards	40,814		38,669
Unrealized loss	(17,925)		609
Unrecognized tax benefits	4,013		3,946
Other	(6,155)		(4,949)
Valuation allowance	(8,630)		(17,193)
Deferred income tax (liability), net	$	(107,981)	$	(72,382)

Changes in the unrecognized tax benefit during fiscal years 2022, 2021 and 2020 were as follows:


	2022		2021		2020
Beginning balance	$	17,025	$	14,238	$	13,848
Tax positions related to prior years:
Additions	705		72		73
Reductions	(1,280)		(277)		(129)
Tax positions related to current year:
Additions	4,660		4,346		1,966
Settlements	(2,453)		(3,363)		—
Lapses in statute of limitations	(3,010)		(2,701)		(1,520)
Tax positions acquired	2,351		4,710		—
Ending balance	$	17,998	$	17,025	$	14,238

The components of total unrecognized tax benefits are summarized as follows:


	July 31,
	2022		2021
Unrecognized tax benefits	$	17,998	$	17,025
Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards	(668)		(725)
Accrued interest and penalties	2,867		2,967
Total unrecognized tax benefits	$	20,197	$	19,267

Short-term, included in “Income and other taxes”	$	2,954	$	3,423
Long-term	17,243		15,844
Total unrecognized tax benefits	$	20,197	$	19,267

The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: