Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2017


	Three Months Ended				Nine Months Ended
	April 30,				April 30,
	2017		2016		2017		2016

Cost of sales	$	83,000	$	120,000	$	285,000	$	320,000
Operating expenses:
Selling		313,000		246,000		1,252,000		684,000
General and administrative		1,520,000		1,847,000		5,358,000		4,750,000
Research and development		29,000		29,000		88,000		83,000
Total operating expenses		1,862,000		2,122,000		6,698,000		5,517,000
Stock-based compensation before income taxes		1,945,000		2,242,000		6,983,000		5,837,000
Income tax benefits		(743,000)		(797,000)		(2,513,000)		(2,071,000)
Excess tax benefits		95,000		—		(2,191,000)		—
Total stock-based compensation expense, net of tax	$	1,297,000	$	1,445,000	$	2,279,000	$	3,766,000



	Number of	Number of	Number of	Total	Weighted
	Shares	Shares	Shares	Number of	Average
	Time-Based	Sales-Based	TSR Based	Shares	Fair Value

Nonvested stock awards at July 31, 2016	331,367	—	—	331,367	$	46.09
Granted	80,591	12,810	9,800	103,201		78.31
Canceled	(4,794)	—	—	(4,794)		58.24
Vested	(197,313)	—	—	(197,313)		42.22
Nonvested stock awards at April 30, 2017	209,851	12,810	9,800	232,461	$	65.20

(1)

Volatility was based on historical closing prices of our common stock.

(2)

The U.S. Treasury rate based on the expected life at the date of grant.

(3)

Based on historical exercise behavior.


Performance Share Unit	Nine Months Ended
Valuation Assumption	April 30, 2017

Volatility of common stock	27.75	%
Average volatility of peer companies	32.98	%
Average correlation coefficient of peer companies	35.35	%
Risk-free interest rate	0.96	%