Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2017

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

Summary of Stock-based Awards Outstanding by Award Type

As of April 30, 2017, the following stock-based awards, by award type, were outstanding:

Stock options	1,900,975
Performance shares	252,089
RSUs and restricted stock	304,116
Share units	7,759
Total	2,464,939

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,
	2017			2016		2017		2016
Cost of sales	$	56,000		70,000		162,000		233,000
Selling, general and administrative expenses	862,000			875,000		2,591,000		2,630,000
Research and development expenses	73,000			96,000		227,000		303,000
Stock-based compensation expense before income tax benefit	991,000			1,041,000		2,980,000		3,166,000
Estimated income tax benefit	(349,000		)	(391,000	)	(1,051,000	)	(1,103,000	)
Net stock-based compensation expense	$	642,000		650,000		1,929,000		2,063,000

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,
	2017			2016		2017		2016
Stock options	$	368,000		591,000		1,000,000		1,803,000
Performance shares	361,000			369,000		1,227,000		1,093,000
RSUs and restricted stock	221,000			46,000		633,000		152,000
ESPP	41,000			35,000		120,000		118,000
Stock-based compensation expense before income tax benefit	991,000			1,041,000		2,980,000		3,166,000
Estimated income tax benefit	(349,000		)	(391,000	)	(1,051,000	)	(1,103,000	)
Net stock-based compensation expense	$	642,000		650,000		1,929,000		2,063,000

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,
	2017		2016
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	352,000	150,000
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	274,000		127,000
Excess income tax benefit from settled equity-classified stock-based awards recorded as an increase to additional paid-in capital and reported as a cash inflow from financing activities in our Condensed Consolidated Statements of Cash Flows	$	78,000	23,000

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, 2017:

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2016	2,256,679		$	28.87
Expired/canceled	(118,505	)	27.34
Outstanding at October 31, 2016	2,138,174		28.96
Expired/canceled	(227,598	)	32.06
Outstanding at January 31, 2017	1,910,576		28.59
Expired/canceled	(9,601	)	26.11
Outstanding at April 30, 2017	1,900,975		$	28.60	5.76	$	—
Exercisable at April 30, 2017	1,173,564		$	28.54	4.96	$	—
Vested and expected to vest at April 30, 2017	1,847,340		$	28.60	5.72	$	—

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, 2016 was $3.95 and $5.55, respectively, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

	Three months ended		Nine months ended
	April 30, 2016		April 30, 2016
Expected dividend yield	5.58	%	4.42	%
Expected volatility	35.80	%	34.39	%
Risk-free interest rate	1.39	%	1.53	%
Expected life (years)	5.04		5.15

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, 2016	217,213		$	28.32
Granted	418,684		13.10
Converted to common stock	(38,706	)	14.75
Forfeited	(5,155	)	25.10
Outstanding at October 31, 2016	592,036		17.80
Granted	2,632		11.40
Converted to common stock	(19,866	)	29.41
Forfeited	(6,826	)	19.65
Outstanding at January 31, 2017	567,976		17.34
Granted	5,836		11.04
Forfeited	(9,848	)	13.64
Outstanding at April 30, 2017	563,964		$	17.34	$	7,901,000
Vested at April 30, 2017	35,400		$	26.94	$	496,000
Vested and expected to vest at April 30, 2017	540,161		$	17.34	$	7,568,000