v3.26.1
Income Taxes
 12 Months Ended
Jul. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes consists of the following:
Years Ended July 31,
202620252024
United States$100,655 $120,323 $111,647 
Other Nations158,760 116,774 136,194 
Total$259,415 $237,097 $247,841 
Income tax expense consists of the following:
Years Ended July 31,
202620252024
Current income tax expense:
United States$10,391 $21,573 $22,637 
Other Nations39,888 29,576 32,121 
States (U.S.)1,397 4,315 5,267 
$51,676 $55,464 $60,025 
Deferred income tax expense (benefit):
United States$3,815 $(2,667)$(7,999)
Other Nations(2,588)(3,640)(133)
States (U.S.)1,134 (1,316)(1,267)
$2,361 $(7,623)$(9,399)
Total income tax expense$54,037 $47,841 $50,626 
The tax effects of temporary differences are as follows as of July 31, 2026 and 2025:
20262025
Deferred tax assets:
Inventories$9,142 $9,147 
Employee compensation and benefits11,205 8,982 
Accounts receivable1,281 1,772 
Fixed assets9,251 8,610 
Capitalized R&D expenditures19,863 30,525 
Deferred and equity-based compensation11,555 9,413 
Postretirement benefits2,671 3,336 
Tax credit and net operating loss carry-forwards88,104 84,160 
Other, net28,110 27,681 
Valuation allowances(83,955)(82,180)
Total$97,227 $101,446 
20262025
Deferred tax liabilities:
Fixed assets$10,080 $8,085 
Intangible assets60,012 63,886 
Other, net13,322 14,378 
Total$83,414 $86,349 
Tax credit carry-forwards as of July 31, 2026 consist of the following:
•Foreign net operating loss carry-forwards of $205,127, of which $178,747 have no expiration date and the remainder of which expire from fiscal 2027 to fiscal 2036.
•State net operating loss carry-forwards of $22,423, all of which expire in fiscal 2032.
•Foreign tax credit carry-forwards of $19,810, which expire from fiscal 2027 to fiscal 2036.
•State credit carry-forwards of $14,466, which expire from fiscal 2027 to fiscal 2041.
Rate Reconciliation
A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for the years ended July 31, 2026, 2025, and 2024 are as follows:
202620252024
AmountPercentAmountPercentAmountPercent
U.S. federal statutory tax rate$54,477 21.0 %$49,790 21.0 %$52,047 21.0 %
United States:
State and local income taxes (1)
3,212 1.2 %1,625 0.7 %2,361 1.0 %
Federal:
Effect of cross-border tax laws
93 — %118 — %(1,711)(0.7)%
Tax Credits
Research and development credit
(4,100)(1.6)%(4,600)(1.9)%(3,850)(1.6)%
Changes in valuation allowances353 0.1 %785 0.3 %709 0.3 %
Nontaxable or nondeductible items
Loss on sale of business (2)
— — %— — %(3,268)(1.3)%
Other
228 0.1 %481 0.2 %(539)(0.2)%
Other adjustments(370)(0.1)%(13)— %(787)(0.3)%
Foreign jurisdictions:
Mexico
Foreign rate difference
3,011 1.2 %2,599 1.1 %2,645 1.1 %
Foreign permanent items
(4,451)(1.7)%(6,092)(2.6)%(6,535)(2.6)%
Other foreign jurisdictions tax effects3,824 1.5 %5,289 2.2 %7,204 2.9 %
Changes in unrecognized tax benefits(2,240)(0.9)%(2,141)(0.9)%2,350 0.9 %
Income tax rate$54,037 20.8 %$47,841 20.2 %$50,626 20.4 %
(1)The following states make up the majority (greater than 50%) of the tax effect for the respective fiscal year as follows:
2026: California, Texas, Pennsylvania, and Illinois
2025: Illinois, New Jersey, Florida, and Pennsylvania
2024: New Jersey, Illinois, Pennsylvania, and Indiana
(2)The loss on sale of business relates to a non-core business divested in fiscal 2024.

A summary of income taxes paid (net of refunds) by jurisdiction for the years July 31, 2026, 2025, and 2024 are as follows:
202620252024
Federal$13,590 $28,625 $23,600 
State3,292 4,595 5,564 
Foreign36,203 37,857 32,909 
Total$53,085 $71,077 $62,073 
Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions for the July 31, 2026, 2025, and 2024:
202620252024
Foreign
Mexico$5,881 **
France4,215 6,774 7,264 
Singapore3,514 **
China2,848 **
Canada2,828 **
Germany*4,870 *
Netherlands**3,124 
*Jurisdiction below the threshold for the period presented
Uncertain Tax Positions
The Company follows the guidance in ASC 740, “Income Taxes” regarding uncertain tax positions. The guidance requires application of a more-likely-than-not threshold to the recognition and de-recognition of income tax positions. A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows:
202620252024
Balance at beginning of period$21,802 $22,590 $20,899 
Additions based on tax positions related to the current year3,128 3,583 3,130 
Additions for tax positions of prior years (1)
126 1,035 1,594 
Reductions for tax positions of prior years(1,230)(1,616)(43)
Lapse of statute of limitations(4,029)(4,111)(2,666)
Settlements with tax authorities— (88)(257)
Cumulative translation adjustments and other(253)409 (67)
Balance at end of period (2)
$19,544 $21,802 $22,590 
(1)Includes acquisitions.
(2)Of the $19,544 of unrecognized tax benefits as of July 31, 2026, $15,951, if recognized, would affect the Company’s income tax rate.
The following table summarizes the classification of the reserve for uncertain tax positions, excluding interest and penalties, within the accompanying consolidated balance sheets as of July 31, 2026 and 2025, respectively:
20262025
Reserve classified in “Other liabilities”$16,201 $18,502 
Reserve classified as a reduction of long-term deferred income tax assets3,343 3,300 
Reserve for uncertain tax positions$19,544 $21,802 
Interest expense is recognized on the amount of potentially underpaid taxes associated with the Company's tax positions, beginning in the first period in which interest starts accruing under the respective tax law and continuing until the tax positions are settled. Interest expense and penalties are recorded as a component of “Income tax expense” in the consolidated statements of income. The following table summarizes the amount of recognized interest expense and benefits related to penalties on the reserve, net of reversals due to reduction for tax positions of prior years, statute of limitations, and settlements, for uncertain tax positions during the years ended July 31, 2026, 2025, and 2024.
202620252024
Interest (benefit) expense$(267)$299 $893 
(Benefit) expense related to penalties(276)120 (38)
The following table summarizes the amounts accrued for interest and penalties on unrecognized tax benefits as of July 31, 2026 and 2025.
20262025
Accrued interest$4,313 $4,740 
Accrued penalties (1)
1,598 1,893 
(1) Penalties are accrued if the tax position does not meet the minimum statutory threshold to avoid the payment of a penalty.
During the year ended July 31, 2026, the Company recognized $6,137 of tax benefits (including interest and penalties) associated with the lapse of statutes of limitations.
The Company and its subsidiaries file income tax returns in the U.S., various states, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions:
JurisdictionOpen Tax Years
United States — FederalF’23 — F’26