Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2016

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,
	2016		2015		2016		2015
Cost of sales	$	120,000	$	64,000	$	320,000	$	226,000
Operating expenses:
Selling		246,000		138,000		684,000		444,000
General and administrative		1,847,000		1,137,000		4,750,000		3,639,000
Research and development		29,000		14,000		83,000		45,000
Total operating expenses		2,122,000		1,289,000		5,517,000		4,128,000
Stock-based compensation before income taxes		2,242,000		1,353,000		5,837,000		4,354,000
Income tax benefits		(797,000)		(479,000)		(2,071,000)		(1,525,000)
Total stock-based compensation expense, net of tax	$	1,445,000	$	874,000	$	3,766,000	$	2,829,000

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	167,990		54.81
Canceled	(4,324)		44.04
Vested	(169,575)		28.49
Nonvested stock awards at April 30, 2016	337,610	$	45.74

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, 2016		April 30, 2015
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 April 30, 2016	122,500	$	29.36
Exercisable at July 31, 2015	45,000	$	20.32
Exercisable at April 30, 2016	80,834	$	22.72