INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2025

The sources of income before income taxes are as follows:


	For the Fiscal Years Ended July 31,
	2025		2024		2023
United States	$	180,390	$	115,618	$	315,939
Foreign	115,801		233,226		183,414
Total	$	296,191	$	348,844	$	499,353

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


	For the Fiscal Years Ended July 31,
Income Taxes:	2025		2024		2023
U.S. Federal	$	37,250	$	52,832	$	102,919
U.S. state and local	10,660		10,372		14,803
Foreign	20,750		48,242		45,174
Total current expense	68,660		111,446		162,896
U.S. Federal	(4,997)		(22,236)		(28,819)
U.S. state and local	268		(4,116)		(3,447)
Foreign	(24,331)		(1,650)		(5,517)
Total deferred expense (benefit)	(29,060)		(28,002)		(37,783)
Total income tax expense	$	39,600	$	83,444	$	125,113

The differences between income tax expense at the federal statutory rate and the actual income tax expense are as follows:


	For the Fiscal Years Ended July 31,
	2025		2024		2023
Provision at federal statutory rate	$	62,200	$	73,257	$	104,864
Differences between U.S. Federal statutory and foreign tax rates	(38,152)		3,821		(41,300)
Foreign currency remeasurement (gains) losses	21,522		(7,621)		33,737
U.S. state and local income taxes, net of federal benefit	7,779		4,840		9,524
Nondeductible compensation	4,133		3,976		4,413
Effect of foreign tax law change	(15,314)		—		—
Contingent liability accrual and settlement	—		(7,456)		—
Global Intangible Low-Taxed Income	—		12,068		10,936






Other	(2,568)		559		2,939
Total income tax expense	$	39,600	$	83,444	$	125,113

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


	July 31,
	2025		2024
Deferred income tax asset (liability):
Inventory basis	$	11,550	$	10,019
Employee benefits	14,040		10,146
Self-insurance reserves	4,531		5,021
Accrued product warranties	59,008		62,687
Accrued incentives	6,340		7,335
Sales returns and allowances	2,942		2,544
Accrued expenses	6,030		6,409
Property, plant and equipment	(43,112)		(45,494)
Operating leases	9,998		10,970
Deferred compensation	32,591		31,359
Intangibles	(182,057)		(197,012)
Net operating loss and other carryforwards	37,049		30,861
Unrealized (gain) loss	5,711		737
Unrecognized tax benefits	2,684		2,161
Research and development	22,021		20,237
Other	6,280		8,709
Valuation allowance	(14,342)		(12,676)
Deferred income tax (liability), net	$	(18,736)	$	(45,987)

Changes in the unrecognized tax benefit during fiscal years 2025, 2024 and 2023 were as follows:


	2025		2024		2023
Beginning balance	$	10,434	$	13,712	$	17,998
Tax positions related to prior years:
Additions	1,201		1,692		649
Reductions	(648)		(1,977)		(1,588)
Tax positions related to current year:
Additions	10,598		386		974
Settlements	—		(2,133)		(2,531)
Lapses in statute of limitations	(1,410)		(1,246)		(1,790)

Ending balance	$	20,175	$	10,434	$	13,712

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


	July 31,
	2025		2024
Unrecognized tax benefits	$	20,175	$	10,434
Reduction to unrecognized tax benefits for deferred tax assets	(10,263)		(605)
Accrued interest and penalties	3,776		2,576
Total unrecognized tax benefits	$	13,688	$	12,405

Short-term, included in “Income and other taxes”	$	1,513	$	—
Long-term	12,175		12,405
Total unrecognized tax benefits	$	13,688	$	12,405

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

THOR INDUSTRIES INC 10-K