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Stock-Based Compensation (Tables)
 12 Months Ended
Jul. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income
The following table shows the components of stock-based compensation expense recognized in the consolidated statements of income:
 
Year Ended July 31,
 
2018
 
2017
 
2016
Cost of sales
$
663

 
$
371

 
$
438

Operating expenses:
 

 
 

 
 

Selling
1,458

 
1,582

 
929

General and administrative
7,292

 
6,774

 
6,881

Research and development
202

 
117

 
113

Total operating expenses
8,952

 
8,473

 
7,923

Stock-based compensation before income taxes
$
9,615

 
$
8,844

 
$
8,361
Summary of nonvested stock award activity
A summary of nonvested stock award activity for fiscal 2018, 2017 and 2016 follows:
 
 
Number of Time-based Shares
 
Number of Performance-based Shares
 
Number of Market-based Shares
 
Number of Total Shares
 
Weighted Average Fair Value
August 1, 2015
 
343,519

 
—

 
—

 
343,519

 
$
32.77

Granted
 
175,700

 
—

 
—

 
175,700

 
$
55.40

Vested(1)
 
(183,045
)
 
—

 
—

 
(183,045
)
 
$
30.06

Forfeited
 
(4,807
)
 
—

 
—

 
(4,807
)
 
$
45.06

July 31, 2016
 
331,367

 
—

 
—

 
331,367

 
$
46.09

Granted
 
86,305

 
16,960

 
9,800

 
113,065

 
$
81.77

Vested(1)
 
(214,932
)
 
(725
)
 
(555
)
 
(216,212
)
 
$
43.62

Forfeited
 
(5,922
)
 
—

 
—

 
(5,922
)
 
$
59.40

July 31, 2017
 
196,818

 
16,235

 
9,245

 
222,298

 
$
66.28

Granted
 
94,309

 
17,486

 
10,465

 
122,260

 
$
101.74

Vested(1)
 
(115,943
)
 
(5,845
)
 
—

 
(121,788
)
 
$
60.25

Forfeited
 
(6,864
)
 
(1,800
)
 
(2,000
)
 
(10,664
)
 
$
95.09

July 31, 2018
 
168,320

 
26,076

 
17,710

 
212,106

 
$
88.87


_______________________________________________
(1)
The aggregate fair value of all nonvested stock awards which vested was approximately $7,338, $9,431 and $5,503 in fiscal 2018, 2017 and 2016, respectively.
Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model
We determine the fair value of each stock award with market conditions using a Monte Carlo simulation on the date of grant using the following assumptions:
 
 
2018
 
2017
Volatility of common stock
 
26.60
%
 
27.75
%
Average volatility of peer companies
 
33.72
%
 
32.98
%
Average correlation coefficient of peer companies
 
32.26
%
 
35.35
%
Risk-free interest rate
 
1.62
%
 
0.96
%
The fair value of each option grant in fiscal 2016 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions:
 
 
2016
Dividend yield
 
0.22
%
Expected volatility(1)
 
55.90
%
Risk-free interest rate(2)
 
1.41
%
Expected lives (in years)(3)
 
5.00

________________________________________________
(1)
Volatility was based on historical closing prices of our common stock.
(2)
The U.S. Treasury rate based on the expected life at the date of grant.
(3)
Based on historical exercise behavior.
Summary of stock option activity
A summary of stock option activity for fiscal 2018 follows:
 
Number of shares
 
Weighted Average Exercise Price
 
Weighted Average Contractual Life Remaining (Years)
 
Aggregate Intrinsic Value
Outstanding at August 1, 2017
122,500

 
$
29.36

 
 
 
 
Granted
—

 
—

 
 
 
 
Exercised
(52,500
)
 
17.04

 
 
 
 
Outstanding at July 31, 2018
70,000

 
$
38.60

 
0.95
 
$
3,788

Exercisable at July 31, 2018
65,000

 
$
37.31

 
0.86
 
$
3,601