Stock-Based Compensation (Tables)

3 Months Ended

Oct. 31, 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
	October 31,
	2015			2014
Cost of sales	$	79,000		$	99,000
Operating expenses:
Selling	190,000			186,000
General and administrative	1,425,000			1,279,000
Research and development	26,000			17,000
Total operating expenses	1,641,000			1,482,000
Stock-based compensation before income taxes	1,720,000			1,581,000
Income tax benefits	(613,000		)	(539,000		)
Total stock-based compensation expense, net of tax	$	1,107,000		$	1,042,000

Summary of nonvested stock award activity

			Weighted
	Number of		Average
	Shares		Fair Value
Nonvested stock awards at July 31, 2015	343,519		$	32.77
Granted	161,923		54.23
Canceled	(522	)	31.81
Vested	(152,601	)	28.60
Nonvested stock awards at October 31, 2015	352,319		$	44.44

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

Weighted-Average
Black-Scholes Option	Three Months Ended		Three Months Ended
Valuation Assumptions	October 31, 2015		October 31, 2014
Dividend yield	0.22	%	0.25	%
Expected volatility (1)	55.90	%	33.90	%
Risk-free interest rate (2)	1.41	%	1.55	%
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 based 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, 2015	107,500	$	25.73
Granted	15,000	55.36
Outstanding at October 31, 2015	122,500	$	29.36
Exercisable at July 31, 2015	45,000	$	20.32
Exercisable at October 31, 2015	80,834	$	22.72