Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock-based Awards Outstanding by Award Type

As of April 30, 2015, the following stock-based awards, by award type, were outstanding:

	April 30, 2015
Stock options	2,164,433
Performance shares	170,841
RSUs and restricted stock	50,675
Share units	8,503
Total	2,394,452

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

Stock-based compensation for awards issued is reflected in the following line items in our Condensed Consolidated Statements of Operations:

	Three months ended April 30,					Nine months ended April 30,
	2015			2014		2015		2014
Cost of sales	$	71,000		57,000		204,000		194,000
Selling, general and administrative expenses	1,005,000			860,000		2,963,000		2,463,000
Research and development expenses	168,000			153,000		475,000		429,000
Stock-based compensation expense before income tax benefit	1,244,000			1,070,000		3,642,000		3,086,000
Estimated income tax benefit	(432,000		)	(394,000	)	(1,283,000	)	(1,143,000	)
Net stock-based compensation expense	$	812,000		676,000		2,359,000		1,943,000

Summary of net stock-based compensation expense by award type

Stock-based compensation expense, by award type, is summarized as follows:

	Three months ended April 30,					Nine months ended April 30,
	2015			2014		2015		2014
Stock options	$	778,000		668,000		2,267,000		2,035,000
Performance shares	308,000			264,000		883,000		671,000
ESPP	52,000			47,000		158,000		135,000
RSUs and restricted stock	106,000			67,000		306,000		203,000
Share units	—			15,000		28,000		27,000
Equity-classified stock-based compensation expense	1,244,000			1,061,000		3,642,000		3,071,000
Liability-classified stock-based compensation expense (SARs)	—			9,000		—		15,000
Stock-based compensation expense before income tax benefit	1,244,000			1,070,000		3,642,000		3,086,000
Estimated income tax benefit	(432,000		)	(394,000	)	(1,283,000	)	(1,143,000	)
Net stock-based compensation expense	$	812,000		676,000		2,359,000		1,943,000

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

The following table reconciles the actual income tax benefit recognized for tax deductions relating to the settlement of stock-based awards to the excess income tax benefit reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows:

	Nine months ended April 30,
	2015		2014
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	1,032,000	342,000
Less: Tax benefit initially recognized on settled stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards	892,000		280,000
Excess income tax benefit recorded as an increase to additional paid-in capital	140,000		62,000
Less: Tax benefit initially disclosed but not previously recognized on settled equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards	—		13,000
Excess income tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows	$	140,000	49,000

Summary of the Plan's activity relating to stock options

The following table summarizes the Plan's activity during the nine months ended April 30, 2015:

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2014	2,132,896		$	28.17
Granted	253,000		33.94
Expired/canceled	(9,900	)	29.10
Exercised	(146,963	)	26.43
Outstanding at October 31, 2014	2,229,033		28.94
Granted	154,025		33.76
Expired/canceled	(10,800	)	29.20
Exercised	(137,525	)	28.06
Outstanding at January 31, 2015	2,234,733		29.32
Granted	3,000		29.31
Expired/canceled	(14,600	)	32.71
Exercised	(58,700	)	28.80
Outstanding at April 30, 2015	2,164,433		$	29.31	7.13	$	1,763,000
Exercisable at April 30, 2015	671,335		$	28.20	5.28	$	537,000
Vested and expected to vest at April 30, 2015	2,021,995		$	29.30	7.09	$	1,621,000

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

The estimated per-share weighted average grant-date fair value of stock options granted during the three and nine months ended April 30, 2015 was $4.53 and $6.13, respectively, and $5.91 and $5.51, respectively, during the three and nine months ended April 30, 2014, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

	Three months ended April 30,				Nine months ended April 30,
	2015		2014		2015		2014
Expected dividend yield	4.09	%	3.98	%	3.55	%	4.03	%
Expected volatility	27.00	%	32.00	%	28.12	%	32.83	%
Risk-free interest rate	1.37	%	1.49	%	1.61	%	1.39	%
Expected life (years)	5.22		5.31		5.45		5.43

Summary of the Plan's activity relating to performance shares, RSUs, restricted stock and share units

The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock and share units:

	Awards (in Shares)		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding at July 31, 2014	180,097		$	26.20
Granted	60,378		33.97
Converted to common stock	(13,376	)	27.75
Forfeited	(248	)	31.44
Outstanding at October 31, 2014	226,851		28.17
Granted	5,916		33.94
Converted to common stock	—		—
Forfeited	(248	)	31.44
Outstanding at January 31, 2015	232,519		28.31
Granted	—		—
Converted to common stock	—		—
Forfeited	(2,500	)	33.94
Outstanding at April 30, 2015	230,019		$	28.25	$	6,648,000
Vested at April 30, 2015	23,308		$	27.09	$	674,000
Vested and expected to vest at April 30, 2015	202,491		$	28.26	$	5,852,000