v3.25.2
Income Taxes (Tables)
12 Months Ended
Jul. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Earnings Before Income Taxes
The components of earnings before income taxes were as follows (in millions):
Year Ended July 31,
202520242023
U.S.$245.5 $233.4 $178.0 
Foreign246.7 301.9 290.7 
Total$492.2 $535.3 $468.7 
Schedule of Components of the Provision For Income Taxes
The components of the provision for income taxes were as follows (in millions):
Year Ended July 31,
202520242023
Current
Federal$52.0 $47.2 $38.1 
State9.2 8.8 7.3 
Foreign88.0 89.6 79.8 
Total current149.2 145.6 125.2 
Deferred
Federal(13.5)(16.1)(13.3)
State(1.3)(1.7)(1.8)
Foreign(9.2)(6.5)(0.2)
Total deferred(24.0)(24.3)(15.3)
Total provision for income taxes$125.2 $121.3 $109.9 
Schedule of Reconciliation of the U.S. Statutory Income Tax Rate with the Effective Income Tax Rate
The reconciliation of the U.S. statutory federal income tax rate with the effective income tax rate was as follows:
Year Ended July 31,
202520242023
U.S. statutory federal income tax rate21.0 %21.0 %21.0 %
State income taxes1.8 1.2 0.9 
Foreign operations2.5 2.7 3.8 
Global intangible low tax income
0.2 0.2 0.2 
Foreign derived intangible income
(1.5)(1.3)(1.6)
Research and development credit(1.0)(0.9)(0.7)
Change in unrecognized tax benefits0.2 1.2 — 
Tax benefits on stock-based compensation (0.9)(1.2)(0.7)
Change in valuation allowance related to impairment
2.6 — — 
Other0.5 (0.2)0.5 
Effective income tax rate25.4 %22.7 %23.4 %
Schedule of the Tax Effects of Temporary Differences that Give Rise to Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to deferred tax assets and liabilities were as follows (in millions):
July 31,
20252024
Deferred tax assets
Accrued expenses$14.6 $14.3 
Compensation and retirement plans30.4 26.6 
Capitalization of R&D costs42.1 32.9 
Net operating loss (NOL) and tax credit carryforwards26.7 17.6 
Operating lease assets15.5 15.6 
Other12.6 6.2 
Gross deferred tax assets141.9 113.2 
Valuation allowance(30.0)(9.1)
Deferred tax assets, net of valuation allowance111.9 104.1 
Deferred tax liabilities
Depreciation and amortization(55.9)(74.5)
Operating lease liabilities(15.1)(14.9)
Other(2.8)(3.8)
Deferred tax liabilities(73.8)(93.2)
Net deferred tax asset (liability)
$38.1 $10.9 
Schedule of NOL and Tax Credit Valuation Allowances
The activity in the NOL and tax credit valuation allowances was as follows (in millions):
Year Ended July 31,
202520242023
Balance as of beginning of year$(9.1)$(6.4)$(3.4)
Additions charged to costs and expenses(14.0)(3.6)(3.0)
Deductions from reserves0.4 0.9 — 
Balance as of end of year$(22.7)$(9.1)$(6.4)
Schedule of Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits
The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in millions):
Year Ended July 31,
202520242023
Balance as of beginning of year$20.8 $15.0 $15.2 
Additions for tax positions of the current year3.3 2.8 2.5 
Additions for tax positions of prior years0.6 6.2 — 
Reductions for tax positions of prior years— (0.1)0.1 
Reductions due to lapse of applicable statute of limitations(2.7)(3.1)(2.8)
Balance as of end of year$22.0 $20.8 $15.0