Stock-Based Compensation (Tables)

12 Months Ended

Jul. 31, 2015

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

Summary of Stock-based Awards Outstanding by Award Type

As of July 31, 2015, the following stock-based awards, by award type, were outstanding:

	July 31, 2015
Stock options	2,119,683
Performance shares	170,841
RSUs and restricted stock	44,821
Share units	8,503
Total	2,343,848

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

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

	Fiscal Years Ended July 31,
	2015			2014		2013
Cost of sales	$	245,000		252,000		174,000
Selling, general and administrative expenses	3,507,000			3,403,000		2,470,000
Research and development expenses	611,000			608,000		486,000
Stock-based compensation expense before income tax benefit	4,363,000			4,263,000		3,130,000
Estimated income tax benefit	(1,523,000		)	(1,550,000	)	(1,198,000	)
Net stock-based compensation expense	$	2,840,000		2,713,000		1,932,000

Summary of net stock-based compensation expense by award type

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

	Fiscal Years Ended July 31,
	2015			2014		2013
Stock options	$	2,842,000		2,752,000		2,400,000
Performance shares	890,000			976,000		382,000
ESPP	206,000			184,000		189,000
RSUs and restricted stock	397,000			293,000		140,000
Share units	28,000			41,000		24,000
Equity-classified stock-based compensation expense	4,363,000			4,246,000		3,135,000
Liability-classified stock-based compensation expense (benefit) (SARs)	—			17,000		(5,000	)
Stock-based compensation expense before income tax benefit	4,363,000			4,263,000		3,130,000
Estimated income tax benefit	(1,523,000		)	(1,550,000	)	(1,198,000	)
Net stock-based compensation expense	$	2,840,000		2,713,000		1,932,000

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 Consolidated Statements of Cash Flows:

	Fiscal Years Ended July 31,
	2015		2014		2013
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	1,108,000	$	2,339,000	$	420,000
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	960,000		1,540,000		155,000
Excess income tax benefit recorded as an increase to additional paid-in capital	148,000		799,000		265,000
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	—		61,000		—
Excess income tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Consolidated Statements of Cash Flows	$	148,000	738,000		265,000

Summary of the Plan's activity relating to stock options (including SARs)

The following table summarizes the Plan's activity (including SARs):

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2012	3,458,403		$	31.61
Granted	296,525		26.07
Expired/canceled	(616,135	)	39.96
Exercised	(90,883	)	13.01
Outstanding at July 31, 2013	3,047,910		29.94
Granted	458,110		29.14
Expired/canceled	(492,060	)	42.90
Exercised	(881,064	)	26.55
Outstanding at July 31, 2014	2,132,896		28.17
Granted	416,525		33.78
Expired/canceled	(46,400	)	30.20
Exercised	(383,338	)	27.61
Outstanding at July 31, 2015	2,119,683		$	29.33	6.99	$	1,638,000
Exercisable at July 31, 2015	963,625		$	28.27	5.62	$	744,000
Vested and expected to vest at July 31, 2015	1,901,782		$	29.27	6.89	$	1,436,000

Certain weighted average assumptions used to estimate initial fair value of stock options

The estimated per-share weighted average grant-date fair value of stock options granted during fiscal 2015, 2014 and 2013 was $6.12, $5.35 and $4.45, respectively, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

	Fiscal Years Ended July 31,
	2015		2014		2013
Expected dividend yield	3.55	%	3.94	%	4.22	%
Expected volatility	28.19	%	30.36	%	30.09	%
Risk-free interest rate	1.61	%	1.47	%	1.02	%
Expected life (years)	5.44		5.32		5.39

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, 2012	48,081		$	26.28
Granted	54,253		25.37
Outstanding at July 31, 2013	102,334		25.80
Granted	95,326		26.48
Converted to common stock	(7,857	)	26.18
Forfeited	(9,706	)	24.83
Outstanding at July 31, 2014	180,097		26.20
Granted	66,294		33.96
Converted to common stock	(18,422	)	27.79
Forfeited	(3,804	)	32.47
Outstanding at July 31, 2015	224,165		$	28.26	$	6,458,000
Vested at July 31, 2015	33,796		$	27.13	$	974,000
Vested and expected to vest at July 31, 2015	172,305		$	28.27	$	4,964,000