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Stock-Based Compensation (Tables)
 12 Months Ended
Jul. 31, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of the components of stock-based compensation expense recognized in the 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,
 
2019
 
2018
 
2017
Cost of sales
$
1,010

 
$
663

 
$
371

Operating expenses:
 

 
 

 
 

Selling
2,428

 
1,458

 
1,582

General and administrative
11,828

 
7,292

 
6,774

Research and development
296

 
202

 
117

Total operating expenses
14,552

 
8,952

 
8,473

Stock-based compensation before income taxes
$
15,562

 
$
9,615

 
$
8,844
Schedule of weighted-average assumuptions used to estimate fair value of stock options
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:
 
 
2019
 
2018
Volatility of common stock
 
27.54
%
 
26.60
%
Average volatility of peer companies
 
36.55
%
 
33.72
%
Average correlation coefficient of peer companies
 
27.18
%
 
32.26
%
Risk-free interest rate
 
2.93
%
 
1.62
%
Summary of nonvested stock award activity
A summary of nonvested stock award activity for fiscal 2019, 2018 and 2017 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, 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

Granted
 
188,431

 
35,981

 
25,320

 
249,732

 
$
85.16

Vested(1)
 
(105,516
)
 
(13,327
)
 
(5,265
)
 
(124,108
)
 
$
80.44

Forfeited
 
(16,371
)
 
(8,520
)
 
(5,686
)
 
(30,577
)
 
$
96.54

July 31, 2019
 
234,864

 
40,210

 
32,079

 
307,153

 
$
88.99


_______________________________________________
(1)
The aggregate fair value of all nonvested stock awards which vested was approximately $9,985, $7,338 and $9,431 in fiscal 2019, 2018 and 2017, respectively.
Summary of stock option activity
A summary of stock option activity for fiscal 2019, 2018 and 2017 follows:
 
Number of shares
 
Weighted Average Exercise Price
 
Weighted Average Contractual Life Remaining
 
Aggregate Intrinsic Value
Outstanding at August 1, 2016
122,500

 
$
29.36

 
 
 
 
Exercised
—

 
$
—

 
 
 
 
Outstanding at July 31, 2017
122,500

 
$
29.36

 
 
 
 
Exercised
(52,500
)
 
$
17.04

 
 
 
 
Outstanding at July 31, 2018
70,000

 
$
38.60

 
 
 
 
Exercised
(30,000
)
 
$
31.81

 
 
 
 
Outstanding at July 31, 2019
40,000

 
$
43.70

 
0.57 years
 
$
1,943

Exercisable at July 31, 2019
40,000

 
$
43.70

 
0.57 years
 
$
1,943