Stock Option Plans

12 Months Ended

Jul. 31, 2015

Share-based Compensation [Abstract]

Stock Option Plans

NOTE I Stock Option Plans

Employee Incentive Plans In November 2010, shareholders approved the 2010 Master Stock Incentive Plan (the Plan). The Plan extends through September 2020 and allows for the granting of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, stock appreciation rights (SAR), dividend equivalents, and other stock-based awards. Options under the Plan are granted to key Employees at market price at the date of grant. Options are generally exercisable for up to 10 years from the date of grant. The Plan also allows for the granting of performance awards to a limited number of key executives. As administered by the Human Resources Committee of the Company’s

Board of Directors to date, these performance awards are payable in common stock and are based on a formula which measures performance of the Company over a three-year period. Performance award expense under these plans totaled $0.1 million in Fiscal 2015, $0.7 million in Fiscal 2014, and $0.1 million in Fiscal 2013.

Stock options for non-executives are exercisable in equal increments over three years. Stock options issued after Fiscal 2010 become exercisable for executives in equal increments over three years. Stock options issued from Fiscal 2005 to Fiscal 2010 became exercisable for most executives immediately upon the date of grant. For Fiscal 2015, the Company recorded pre-tax compensation expense associated with stock options of $9.5 million and recorded $3.1 million of related tax benefit. For Fiscal 2014 and 2013, the Company recorded pre-tax compensation expense associated with stock options of $9.9 million and $8.3 million, respectively, and $3.2 million and $2.7 million, respectively, of related tax benefit.

Stock-based employee compensation cost is recognized using the fair-value based method. The Company determined the fair value of these awards using the Black-Scholes option pricing model, with the following assumptions:

	2015		2014		2013
Risk - free interest rate		0.05 - 2.3%		0.31 - 2.8%		0.02 - 1.7%
Expected volatility		18.6 - 26.7%		18.2 - 28.0%		22.5 - 29.7%
Expected dividend yield		1.6%		1.4 - 1.6%		1.0 - 1.4%
Expected life
Director and officer grants		8 years		8 years		8 years
Non - officer original grants		7 years		7 years		7 years
Reload grants		≤4 years		≤6 years		≤5 years

Black-Scholes is a widely accepted stock option pricing model. The weighted average fair value for options granted during Fiscal 2015, 2014, and 2013, was $9.94, $11.44, and $8.18 per share, respectively, using the Black-Scholes pricing model.

Reload grants are grants made to officers or directors who exercised a reloadable option during the fiscal year and made payment of the purchase price using shares of previously owned Company stock. The reload grant is for the number of shares equal to the shares used in payment of the purchase price and/or withheld for minimum tax withholding. Options with a reload provision were no longer issued to officers with more than five years of service, and all directors beginning in Fiscal 2006. The Company continued to issue options with a reload provision to officers with less than five years of service until Fiscal 2011 when this was discontinued.

The following table summarizes stock option activity:

	Options Outstanding			Weighted Average Exercise Price
Outstanding at July 31, 2012		8,056,327		$	20.97
Granted		965,050			33.91
Exercised		(1,607,081	)		14.79
Canceled		(84,476	)		33.94
Outstanding at July 31, 2013		7,329,820			23.88
Granted		900,073			42.17
Exercised		(1,008,848	)		18.80
Canceled		(23,163	)		34.02
Outstanding at July 31, 2014		7,197,882			26.84
Granted		1,023,836			38.58
Exercised		(916,566	)		18.54
Canceled		(113,710	)		38.67
Outstanding at July 31, 2015		7,191,442			29.38

The total intrinsic value of options exercised during Fiscal 2015, 2014, and 2013, was $18.8 million, $21.5 million, and $33.7 million, respectively.

Shares reserved at July 31, 2015, for outstanding options and future grants were 11,693,263. Shares reserved consist of shares available for grant plus all outstanding options.

The following table summarizes information concerning outstanding and exercisable options as of July 31, 2015:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.00 to $17.69		1,366,763		1.95	$	17.08		1,366,763	$	17.08
$17.70 to $23.69		1,432,795		3.52		21.47		1,432,795		21.47
$23.70 to $29.69		821,268		5.34		29.12		821,268		29.12
$29.70 to $35.69		1,719,689		6.65		34.23		1,463,974		34.32
$35.70 and above		1,850,927		8.67		40.22		349,502		41.76
		7,191,442		5.50		29.38		5,434,302		26.29

At July 31, 2015, the aggregate intrinsic value of shares outstanding and exercisable was $43.7 million and $43.7 million, respectively.

The following table summarizes the status of options which contain vesting provisions:

	Options			Weighted Average Grant Date Fair Value
Non - vested at July 31, 2014		1,720,063		$	10.35
Granted		1,003,750			10.06
Vested		(870,930	)		10.02
Canceled		(95,743	)		10.21
Non - vested at July 31, 2015		1,757,140			10.36

The total fair value of shares vested during Fiscal 2015, 2014, and 2013, was $29.3 million, $35.5 million, and $29.8 million, respectively.

As of July 31, 2015, there was $7.5 million of total unrecognized compensation cost related to non-vested stock options granted under the Plan. This unvested cost is expected to be recognized during Fiscal 2016, Fiscal 2017, and Fiscal 2018.