v3.26.3
Income Taxes (Tables)
 12 Months Ended
Jul. 31, 2026
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,
202620252024
U.S.$226.2 $245.5 $233.4 
Foreign359.6 246.7 301.9 
Total$585.8 $492.2 $535.3 
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,
202620252024
Current
Federal$22.9 $52.0 $47.2 
State7.5 9.2 8.8 
Foreign101.9 88.0 89.6 
Total current132.3 149.2 145.6 
Deferred
Federal0.2 (13.5)(16.1)
State(0.3)(1.3)(1.7)
Foreign(0.2)(9.2)(6.5)
Total deferred(0.3)(24.0)(24.3)
Total provision for income taxes$132.0 $125.2 $121.3 
Schedule of Income Tax Paid
The components of income taxes paid, net of refunds, were as follows (in millions):
Year Ended July 31,
2026
Federal$47.1 
State10.1 
Foreign103.7 
Total$160.9 
Income taxes paid, net of refunds, exceeded 5 percent of total income taxes paid, net of refunds, in the following jurisdictions (in millions):
Year Ended July 31,
2026
Mexico$22.6 
China$12.0 
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 after the adoption of ASU 2023-09 was as follows (in millions):
Year Ended July 31,
2026
U.S. statutory federal income tax rate$123.0 21.0 %
Domestic state and local income taxes, net of federal tax effect (1)
5.3 0.9 %
Foreign tax effects26.4 4.5 %
Effect of changes in tax laws or rates enacted in the current period— — %
Effect of cross-border tax laws
Foreign tax credit on withholding taxes(8.3)(1.4)%
Foreign derived intangible income(4.8)(0.8)%
Other(4.0)(0.7)%
Tax credits(1.9)(0.3)%
Changes in valuation allowances1.1 0.2 %
Nontaxable or nondeductible items
Tax benefits on stock-based compensation(8.1)(1.4)%
Other3.1 0.5 %
Changes in unrecognized tax benefits0.2 — %
Effective income tax rate$132.0 22.5 %
(1)     The state and local jurisdictions comprising the majority (greater than 50 percent) of the tax effect in this category include Illinois, California, Texas and Indiana.
The reconciliation of the U.S. statutory federal income tax rate with the effective income tax rate prior to the adoption of ASU 2023-09 was as follows:
Year Ended July 31,
20252024
U.S. statutory federal income tax rate21.0 %21.0 %
State income taxes1.8 1.2 
Foreign operations2.5 2.7 
Global intangible low tax income0.2 0.2 
Foreign derived intangible income(1.5)(1.3)
Research and development credit(1.0)(0.9)
Change in unrecognized tax benefits0.2 1.2 
Tax benefits on stock-based compensation (0.9)(1.2)
Change in valuation allowance related to impairment2.6 — 
Other0.5 (0.2)
Effective income tax rate25.4 %22.7 %
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,
20262025
Deferred tax assets
Accrued expenses$18.9 $14.6 
Compensation and retirement plans24.5 30.4 
Capitalization of R&D costs44.5 42.1 
Net operating loss (NOL) and tax credit carryforwards33.5 26.7 
Operating lease assets14.5 15.5 
Other10.0 12.6 
Gross deferred tax assets145.9 141.9 
Valuation allowance(32.3)(30.0)
Deferred tax assets, net of valuation allowance113.6 111.9 
Deferred tax liabilities
Depreciation and amortization(80.0)(55.9)
Operating lease liabilities(13.2)(15.1)
Other(5.1)(2.8)
Deferred tax liabilities(98.3)(73.8)
Net deferred tax asset$15.3 $38.1 
Schedule of NOL and Tax Credit Valuation Allowances
The activity in the NOL and tax credit valuation allowances was as follows (in millions):
Year Ended July 31,
202620252024
Balance as of beginning of year$(22.7)$(9.1)$(6.4)
Additions charged to costs and expenses(5.2)(14.0)(3.6)
Deductions from reserves0.3 0.4 0.9 
Balance as of end of year$(27.6)$(22.7)$(9.1)
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,
202620252024
Balance as of beginning of year$22.0 $20.8 $15.0 
Additions for tax positions of the current year4.5 3.3 2.8 
Additions for tax positions of prior years— 0.6 6.2 
Reductions for tax positions of prior years(0.3)— (0.1)
Changes in judgment(0.7)— — 
Settlements(1.0)— — 
Reductions due to lapse of applicable statute of limitations(2.4)(2.7)(3.1)
Balance as of end of year$22.1 $22.0 $20.8