Stock-Based Compensation (Tables)

12 Months Ended

Jul. 31, 2016

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

Summary of Stock-based Awards Outstanding by Award Type

As of July 31, 2016, the following stock-based awards, by award type, were outstanding:

	July 31, 2016
Stock options	2,256,679
Performance shares	173,852
RSUs and restricted stock	34,858
Share units	8,503
Total	2,473,892

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,
	2016			2015		2014
Cost of sales	$	296,000		245,000		252,000
Selling, general and administrative expenses	3,407,000			3,507,000		3,403,000
Research and development expenses	414,000			611,000		608,000
Stock-based compensation expense before income tax benefit	4,117,000			4,363,000		4,263,000
Estimated income tax benefit	(1,434,000		)	(1,523,000	)	(1,550,000	)
Net stock-based compensation expense	$	2,683,000		2,840,000		2,713,000

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,
	2016			2015		2014
Stock options	$	2,353,000		2,842,000		2,752,000
Performance shares	1,374,000			890,000		976,000
ESPP	163,000			206,000		184,000
RSUs and restricted stock	227,000			397,000		293,000
Share units	—			28,000		41,000
Equity-classified stock-based compensation expense	4,117,000			4,363,000		4,246,000
Liability-classified stock-based compensation expense (SARs)	—			—		17,000
Stock-based compensation expense before income tax benefit	4,117,000			4,363,000		4,263,000
Estimated income tax benefit	(1,434,000		)	(1,523,000	)	(1,550,000	)
Net stock-based compensation expense	$	2,683,000		2,840,000		2,713,000

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,
	2016		2015	2014
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	196,000	1,108,000	$	2,339,000
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	168,000		960,000	1,540,000
Excess income tax benefit recorded as an increase to additional paid-in capital	28,000		148,000	799,000
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	$	28,000	148,000	738,000

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, 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
Granted	552,806		27.15
Expired/canceled	(396,610	)	28.99
Exercised	(19,200	)	27.24
Outstanding at July 31, 2016	2,256,679		$	28.87	6.67	$	1,000
Exercisable at July 31, 2016	1,154,882		$	28.60	5.42	$	—
Vested and expected to vest at July 31, 2016	2,174,225		$	28.86	6.62	$	1,000

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 2016, 2015 and 2014 was $5.50, $6.12 and $5.35, respectively, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

	Fiscal Years Ended July 31,
	2016		2015		2014
Expected dividend yield	4.46	%	3.55	%	3.94	%
Expected volatility	34.44	%	28.19	%	30.36	%
Risk-free interest rate	1.52	%	1.61	%	1.47	%
Expected life (years)	5.15		5.44		5.32

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, 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
Granted	71,605		27.45
Converted to common stock	(16,439	)	26.35
Forfeited	(62,118	)	27.62
Outstanding at July 31, 2016	217,213		$	28.32	$	2,839,000
Vested at July 31, 2016	35,855		$	27.24	$	469,000
Vested and expected to vest at July 31, 2016	209,521		$	28.26	$	2,738,000