Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2013

Stock-based compensation for awards detailing where recorded in Statement of Operations



	Three months ended January 31,					Six months ended January 31,
	2013			2012		2013		2012
Cost of sales	$	74,000		125,000		119,000		178,000
Selling, general and administrative expenses	614,000			795,000		1,215,000		1,440,000
Research and development expenses	118,000			116,000		217,000		291,000
Stock-based compensation expense before income tax benefit	806,000			1,036,000		1,551,000		1,909,000
Income tax benefit	(346,000		)	(394,000	)	(610,000	)	(701,000	)
Net stock-based compensation expense	$	460,000		642,000		941,000		1,208,000

Summary of stock-based compensation expense before income tax benefit by award type



	Three months ended January 31,				Six months ended January 31,
	2013		2012		2013		2012
Stock options	$	638,000	991,000		1,211,000		1,783,000
ESPP	48,000		59,000		101,000		120,000
RSUs with performance measures	86,000		—		172,000		—
RSUs without performance measures	28,000		—		60,000		—
Stock units	6,000		—		12,000		—
SARs	—		(14,000	)	(5,000	)	6,000
Stock-based compensation expense before income tax benefit	$	806,000	1,036,000		1,551,000		1,909,000

Certain weighted average assumptions used to estimate the fair value of stock-based awards



	Three months ended January 31,				Six months ended January 31,
	2013		2012		2013		2012
Expected dividend yield	4.29	%	3.68	%	4.29	%	4.00	%
Expected volatility	37.00	%	37.70	%	37.00	%	36.20	%
Risk-free interest rate	0.61	%	0.42	%	0.61	%	0.83	%
Expected life (years)	5.31		3.81		5.31		5.24

Components of actual Income tax benefit recognized for tax deductions relating to exercise of stock-based awards



	Six months ended January 31,
	2013		2012
Actual income tax benefit recorded for the tax deductions relating to the exercise of stock-based awards	$	79,000	235,000
Less: Tax benefit initially recognized on exercised stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls	60,000		151,000
Excess income tax benefit recorded as an increase to additional paid-in capital	19,000		84,000
Less: Tax benefit initially disclosed but not previously recognized on exercised equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards	—		2,000
Excess income tax benefit from exercised equity-classified stock-based awards reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows	$	19,000	82,000

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details