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Income Taxes
3 Months Ended
Oct. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
At October 31, 2022 and July 31, 2022, total unrecognized tax benefits were $10,254,000 and $10,008,000, respectively, including interest of $377,000 and $330,000, respectively. At October 31, 2022 and July 31, 2022, $3,236,000 and $3,007,000, respectively, of our unrecognized tax benefits were recorded as non-current income taxes payable on our Condensed Consolidated Balance Sheets. The remaining unrecognized tax benefits of $7,018,000 and $7,001,000 at October 31, 2022 and July 31, 2022, respectively, were presented as an offset to the associated non-current deferred tax assets on our Condensed Consolidated Balance Sheets. Of the total unrecognized tax benefits, $9,228,000 and $9,034,000 at October 31, 2022 and July 31, 2022, respectively, net of the reversal of the federal benefit recognized as a deferred tax asset relating to state reserves, would favorably impact our effective tax rate, if recognized. Unrecognized tax benefits result from income tax positions taken or expected to be taken on our income tax returns for which a tax benefit has not been recorded in our condensed consolidated financial statements. The amount by which the gross unrecognized tax benefits could decrease by in the next twelve months did not significantly change during the first quarter of fiscal 2023.

Our U.S. federal income tax returns for fiscal 2019 through 2021 are subject to potential future Internal Revenue Service ("IRS") audit. None of our state income tax returns prior to fiscal 2018 are subject to audit. Future tax assessments or settlements could have a material adverse effect on our consolidated results of operations and financial condition.