INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The sources of earnings before income taxes are as follows:

	For the Fiscal Year Ended July 31,
	2019			2018		2017
United States	$	200,859		$	633,029	$	556,386
Foreign		(16,193	)		–		–
Total	$	184,666		$	633,029	$	556,386

Schedule of Components of Provision (Benefit) for Income Taxes

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

	For the Fiscal Year Ended July 31,
Income Taxes:	2019			2018			2017
U.S. Federal	$	48,757		$	166,402		$	200,370
U.S. state and local		5,921			21,025			20,941
Foreign		6,611
Total current expense		61,289			187,427			221,311
U.S. Federal		10,862			17,820			(37,033	)
U.S. state and local		(36	)		(2,369	)		(2,146	)
Foreign		(19,914	)		–			–
Total deferred expense (benefit)		(9,088	)		15,451			(39,179	)
Total income tax expense	$	52,201		$	202,878		$	182,132

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

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,
	2019			2018			2017
Provision at federal statutory rate	$	38,779		$	170,095		$	194,735
Differences between U.S. federal statutory and foreign tax rates		1,478
U.S. state and local income taxes, net of federal benefit		4,642			14,255			11,021
Nondeductible compensation		2,401			–			–
Nondeductible acquisition costs		3,031			–			–
Nondeductible foreign currency forward contract loss on acquisition		14,863			–			–
Nontaxable foreign currency remeasurement gains		(12,942	)
Federal income tax credits and incentives		(3,373	)		(3,518	)		(3,228	)
Domestic production activities deduction		–			(16,175	)		(19,527	)
Change in uncertain tax positions		1,279			396			375
Effect of the U.S. Tax Act		–			38,620			–
Other		2,043			(795	)		(1,244	)
Total income tax expense	$	52,201		$	202,878		$	182,132

Schedule of Deferred Income Taxe Balances

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

	July 31,
	2019			2018
Deferred income tax asset (liability):
Inventory basis	$	807		$	922
Employee benefits		5,272			3,427
Self-insurance reserves		5,185			6,368
Accrued product warranties		62,563			62,332
Accrued incentives		6,144			5,235
Sales returns and allowances		1,516			1,741
Accrued expenses		3,617			1,905
Property, plant and equipment		(22,699	)		(9,060	)
Deferred compensation		15,247			12,864
Intangibles		(143,861	)		(9,151	)
Net operating loss and other carryforwards		15,725			–
Unrealized gain/loss		(4,546	)		–
Unrecognized tax benefits		2,689			2,581
Other		2,759			(720	)
Valuation allowance		(12,945	)	$	–
Deferred income tax asset (liability), net	$	(62,527	)	$	78,444

Schedule of Total Deferred Tax Assets And Liabilities

Total deferred tax assets and deferred tax liabilities at July 31, 2019 and 2018 are as follows:

	July 31,
	2019			2018
Deferred tax assets	$	273,273		$	97,375
Deferred tax liabilities		(322,855	)		(18,931	)
Valuation allowance		(12,945	)		–
Net deferred tax assets / (liabilities)	$	(62,527	)	$	78,444

Schedule of Changes in Unrecognized Tax Benefit

Changes in the unrecognized tax benefit during fiscal years 2019, 2018 and 2017 were as follows:

	2019			2018			2017
Beginning balance	$	13,004		$	12,671		$	13,269
Tax positions related to prior years:
Additions		–			353			75
Reductions		(263	)		(2,203	)		(1,510	)
Tax positions related to current year:
Additions		2,062			3,629			3,853
Settlements		(773	)		(192	)		(1,450	)
Lapses in statute of limitations		(918	)		(1,254	)		(1,566	)
Tax positions acquired from EHG		736			–			–
Ending balance	$	13,848		$	13,004		$	12,671

Components of Total Unrecognized Tax Benefits

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

	July 31,
	2019			2018
Unrecognized tax benefits	$	13,848		$	13,004
Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards		(1,916	)		(955	)
Accrued interest and penalties		1,758			1,290
Total unrecognized tax benefits	$	13,690		$	13,339
Short-term, included in “Income and other taxes”	$	2,891		$	893
Long-term		10,799			12,446
Total unrecognized tax benefits	$	13,690		$	13,339

Summary of Income Tax Examinations

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

Major Tax Jurisdiction	Tax Years Subject to Exam
United States – Federal	Fiscal 2016 – Fiscal 2018
United States – State	Fiscal 2016 – Fiscal 2018
Germany	Fiscal 2016 – Fiscal 2018
France	Fiscal 2016 – Fiscal 2018
Italy	Fiscal 2015 – Fiscal 2018
United Kingdom	Fiscal 2018