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Income Taxes
9 Months Ended
Apr. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16—Income Taxes

 

In the three and nine months ended April 30, 2021, the Company released $24.0 million of its valuation allowance on the portion of the deferred income tax assets that it is more likely than not going to utilize. The Company used the framework of Accounting Standards Codification Income Taxes (Topic 740) to determine whether the valuation allowance should be maintained or reversed. The Company considered the scheduled expiration of its net operating losses included in its deferred tax assets, projected future taxable income, and tax planning strategies in its assessment of the valuation allowance. The primary factors that resulted in the valuation allowance release were the three consecutive years of profitability in the United States and expected future profitability in both the United States and the United Kingdom that will utilize a portion of the net operating losses. The Company’s tax planning strategies were not a significant factor in the analysis.