INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2016

Schedule of Components of Provision (Benefit) for Income Taxes

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

	July 31,
Income Taxes:	2016		2015		2014
Federal	$	126,846	$	98,504	$	83,374
State and local		12,716		1,222		(1,383)
Total current expense		139,562		99,726		81,991
Federal		(13,079)		(7,785)		(3,805)
State and local		(1,192)		(1,055)		(883)
Total deferred (benefit)		(14,271)		(8,840)		(4,688)
Total income tax expense	$	125,291	$	90,886	$	77,303

Schedule of Differences Between Income Taxes at Federal Statutory Rate and Actual Income Taxes

The differences between income taxes at the federal statutory rate and the actual income taxes are as follows:
	July 31,
	2016		2015		2014
Provision at federal statutory rate	$	134,160	$	102,513	$	88,487
State and local income taxes, net of federal benefit		6,599		5,144		3,748
Federal income tax credits and incentives		(4,194)		(2,207)		(772)
Domestic production activities deduction		(12,609)		(9,519)		(7,947)
Change in uncertain tax positions		611		(5,650)		(6,631)
Change in current tax payable and deferred tax liabilities		103		218		125
Other permanent items		621		387		293
Total income tax expense	$	125,291	$	90,886	$	77,303

Schedule of Deferred Income Taxes

A summary of deferred income taxes is as follows:

	July 31,
	2016		2015
Current deferred income tax asset (liability):
Inventory basis	$	–	$	467
Employee benefits		–		3,625
Self-insurance reserves		–		10,411
Accrued product warranties		–		39,486
Accrued incentives		–		3,959
Sales returns and allowances		–		1,520
Accrued expenses		–		2,067
Unrecognized tax benefits		–		367
Other		–		(2,038)
Total net current deferred income tax asset	$	–	$	59,864

	July 31,
	2016		2015
Long-term deferred income tax asset (liability):
Inventory basis	$	1,196	$	–
Employee benefits		4,587		–
Self-Insurance Reserves		10,504		–
Accrued product warranties		43,388		–
Accrued incentives		5,154		–
Sales returns and allowances		1,642		–
Accrued expenses		2,607		–
Property, plant and equipment		(4,164)		(707)
Deferred compensation		9,145		6,367
Tax credit carry forward		256		110
Intangibles		(22,308)		(30,246)
Unrecognized tax benefits		4,105		3,913
Other		(2,695)		–
Total net long-term deferred income tax (liability)		–		(20,563)
Net deferred tax asset	$	53,417	$	39,301

Schedule of Changes in Unrecognized Tax Benefit

Changes in the unrecognized tax benefit during fiscal year 2016, 2015 and 2014 were as follows:

	2016		2015		2014
Beginning balance	$	13,156	$	20,813	$	32,733
Tax positions related to prior years:
Additions		1,546		126		9
Reductions		(920)		(7,695)		(9,281)
Tax positions related to current year:
Additions		3,123		2,858		3,804
Settlements		(956)		(1,898)		(5,002)
Lapses in statute of limitations		(2,680)		(1,048)		(1,450)
Ending balance	$	13,269	$	13,156	$	20,813

Components of Total Unrecognized Tax Benefits

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

	July 31,
	2016		2015		2014
Unrecognized tax benefits	$	13,269	$	13,156	$	20,813
Reduction to unrecognized tax benefits for tax credit carry forward		(2,255)		(2,109)		(657)
Accrued interest and penalties		1,547		1,895		5,200
Total unrecognized tax benefits	$	12,561	$	12,942	$	25,356
Short-term, included in “Income and other taxes”	$	2,586	$	997	$	1,667
Long-term		9,975		11,945		23,689
Total unrecognized tax benefits	$	12,561	$	12,942	$	25,356