Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2015

Stock-Based Compensation

Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income

	Three Months Ended						Nine Months Ended
	April 30,						April 30,
	2015			2014			2015			2014
Cost of sales	$	64,000		$	109,000		$	226,000		$	280,000
Operating expenses:
Selling	138,000			190,000			444,000			491,000
General and administrative	1,137,000			1,104,000			3,639,000			3,158,000
Research and development	14,000			19,000			45,000			49,000
Total operating expenses	1,289,000			1,313,000			4,128,000			3,698,000
Stock-based compensation before income taxes	1,353,000			1,422,000			4,354,000			3,978,000
Income tax benefits	(479,000		)	(499,000		)	(1,525,000		)	(1,404,000		)
Total stock-based compensation expense, net of tax	$	874,000		$	923,000		$	2,829,000		$	2,574,000

Summary of nonvested stock award activity

			Weighted
	Number of		Average
	Shares		Fair Value
Nonvested stock awards at July 31, 2014	525,842		$	22.25
Granted	120,599		37.84
Canceled	(12,210	)	25.93
Vested	(292,177	)	17.82
Nonvested stock awards at April 30, 2015	342,054		$	31.39

Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model

Weighted-Average
Black-Scholes Option	Nine Months Ended		Nine Months Ended
Valuation Assumptions	April 30, 2015		April 30, 2014
Dividend yield	0.25	%	0.28	%
Expected volatility (1)	33.90	%	42.70	%
Risk-free interest rate (2)	1.55	%	1.44	%
Expected lives (in years) (3)	5.00		5.00

(1) Volatility was based on historical closing prices of our common stock.

(2) The U.S. Treasury rate on the expected life at the date of grant.

(3) Based on historical exercise behavior.

Summary of stock option activity

			Weighted
	Number of		Average
	Shares		Exercise Price
Outstanding at July 31, 2014	222,492		$	12.78
Granted	25,000		36.70
Exercised	(89,367	)	7.14
Outstanding at April 30, 2015	158,125		$	19.75
Exercisable at July 31, 2014	157,492		$	8.21
Exercisable at April 30, 2015	95,625		$	13.30