Stock-Based Compensation (Tables)

12 Months Ended

Jul. 31, 2016

Stock-Based Compensation

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

	Year Ended July 31,
	2016		2015		2014
Cost of sales	$	438,000	$	270,000	$	337,000
Operating expenses:
Selling		929,000		608,000		665,000
General and administrative		6,881,000		4,897,000		4,339,000
Research and development		113,000		92,000		68,000
Total operating expenses		7,923,000		5,597,000		5,072,000
Stock-based compensation before income taxes		8,361,000		5,867,000		5,409,000
Income tax benefits		(2,956,000)		(2,026,000)		(1,909,000)
Total stock-based compensation expense, net of tax	$	5,405,000	$	3,841,000	$	3,500,000

Summary of nonvested stock award activity

		Weighted
	Number of	Average
	Shares	Fair Value
Nonvested stock awards at July 31, 2013	605,767	$	11.96
Granted	258,760		31.95
Canceled	(10,066)		15.70
Vested	(328,619)		11.13
Nonvested stock awards at July 31, 2014	525,842		22.25
Granted	144,278		39.77
Canceled	(12,804)		26.20
Vested	(313,797)		18.62
Nonvested stock awards at July 31, 2015	343,519	$	32.77
Granted	175,700		55.40
Canceled	(4,807)		45.06
Vested	(183,045)		30.06
Nonvested stock awards at July 31, 2016	331,367	$	46.09

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

Weighted-Average
Black-Scholes Option	Year Ended		Year Ended
Valuation Assumptions	July 31, 2016		July 31, 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, 2013	403,831	$	8.25
Granted	30,000		31.81
Canceled	(211,339)		6.82
Outstanding at July 31, 2014	222,492		12.78
Granted	25,000		36.70
Exercised	(139,992)		7.11
Outstanding at July 31, 2015	107,500		25.73
Granted	15,000		55.36
Outstanding at July 31, 2016	122,500	$	29.36
Exercisable at July 31, 2014	157,492	$	8.21
Exercisable at July 31, 2015	45,000	$	20.32
Exercisable at July 31, 2016	80,834	$	22.72

Summary of additional information related to stock options outstanding

	Options Outstanding					Options Exercisable
			Weighted					Weighted
			Average					Average
			Remaining	Weighted				Remaining	Weighted
	Number		Contractual	Average		Number		Contractual	Average
Range of Exercise	Outstanding		Life	Exercise		Exercisable		Life	Exercise
Prices	at July 31, 2016		(Months)	Price		at July 31, 2016		(Months)	Price
$17.04		52,500	15	$	17.04		52,500	15	$	17.04
$31.81 - $36.70		55,000	32	$	34.03		28,334	31	$	33.25
$55.36		15,000	51	$	55.36		—	—	$	—
		122,500		$	29.36		80,834		$	22.72
Total Intrinsic Value	$	4,605,000				$	3,575,000