Income Taxes (Tables)

12 Months Ended

Jul. 31, 2011

Income Taxes [Abstract]

Income before provision for income taxes

	Fiscal Years Ended July 31,
	2011	2010	2009
U.S.	$  102,159,000	97,217,000	72,384,000
Foreign	(355,000)	85,000	885,000
	$  101,804,000	97,302,000	73,269,000

Provision for income taxes

	Fiscal Years Ended July 31,
	2011	2010	2009
Federal – current	$  29,735,000	39,448,000	26,487,000
Federal – deferred	683,000	(7,180,000)	(1,881,000)
State and local – current	3,683,000	5,448,000	1,513,000
State and local – deferred	62,000	(651,000)	(170,000)
Foreign – current	(270,000)	(406,000)	(227,000)
Foreign – deferred	16,000	13,000	22,000
	$  33,909,000	36,672,000	25,744,000

Provision for income taxes differed from amounts computed by the U.S. Federal income tax rate

	Fiscal Years Ended July 31,
	2011		2010		2009
	Amount	Rate	Amount	Rate	Amount	Rate
Computed "expected" tax expense	$ 35,632,000	35.0%	34,056,000	35.0%	25,644,000	35.0%
Increase (reduction) in income taxes resulting from:
State and local income taxes, net of Federal benefit	2,614,000	2.6	3,118,000	3.2	871,000	1.2
Impairment of goodwill	-	-	1,666,000	1.7	-	-
In-process research &      development	-	-	-	-	2,170,000	3.0
Nondeductible stock-based compensation	94,000	0.1	167,000	0.2	419,000	0.6
Domestic production activities deduction	(2,873,000)	(2.8)	(2,086,000)	(2.2)	(1,117,000)	(1.5)
Research and experimentation credits	(1,255,000)	(1.3)	(137,000)	(0.1)	(2,351,000)	(3.2)
Change in the beginning of the year valuation allowance for deferred tax assets	-	-	(50,000)	(0.1)	(50,000)	(0.1)
Foreign income taxes	151,000	0.2	9,000	0.1	(49,000)	(0.1)
Other	(454,000)	(0.5)	(71,000)	(0.1)	207,000	0.2
	$ 33,909,000	33.3%	36,672,000	37.7%	25,744,000	35.1%

Tax effects of temporary differences

	2011	2010
Deferred tax assets:
Allowance for doubtful accounts receivable	$      436,000	389,000
Inventory and warranty reserves	6,998,000	8,478,000
Compensation and commissions	1,273,000	1,121,000
State research and experimentation credits	1,449,000	1,404,000
Stock-based compensation	10,606,000	10,516,000
Net operating losses	663,000	873,000
Other	4,970,000	6,874,000
Less valuation allowance	(1,162,000)	(1,162,000)
Total deferred tax assets	25,233,000	28,493,000
Deferred tax liabilities:
Plant and equipment	(3,261,000)	(2,782,000)
Intangibles	(12,544,000)	(13,737,000)
Total deferred tax liabilities	(15,805,000)	(16,519,000)
Net deferred tax assets	$    9,428,000	11,974,000

Summary of unrecognized tax benefits

	2011	2010
Balance as of July 31	$       7,056,000	6,613,000
Increase related to fiscal 2011	639,000	470,000
Increase related to prior periods	601,000	1,651,000
Expiration of statute of limitations	(1,087,000)	(756,000)
Decrease related to prior periods	(446,000)	(590,000)
Settlements with taxing authorities	-	(332,000)
Balance as of July 31	$       6,763,000	7,056,000