Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2017


	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2017		2016		2017		2016

Cost of sales	$	92,000	$	121,000	$	202,000	$	200,000
Operating expenses:
Selling		310,000		248,000		939,000		438,000
General and administrative		1,685,000		1,478,000		3,838,000		2,903,000
Research and development		29,000		28,000		59,000		54,000
Total operating expenses		2,024,000		1,754,000		4,836,000		3,395,000
Stock-based compensation before income taxes		2,116,000		1,875,000		5,038,000		3,595,000
Income tax benefits		(731,000)		(661,000)		(1,770,000)		(1,274,000)
Excess tax benefits		(45,000)		—		(2,286,000)		—
Total stock-based compensation expense, net of tax	$	1,340,000	$	1,214,000	$	982,000	$	2,321,000



	Number of	Number of	Number of	Total	Weighted
	Shares	Shares	Shares	Number of	Average
	Time-Based	Sales-Based	TSR Based	Shares	Fair Value

Nonvested stock awards at July 31, 2016	331,367	—	—	331,367	$	46.09
Granted	75,385	12,810	9,800	97,995		82.47
Canceled	(3,658)	—	—	(3,658)		55.74
Vested	(191,181)	—	—	(191,181)		41.84
Nonvested stock awards at January 31, 2017	211,913	12,810	9,800	234,523	$	64.60

(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.


Performance Share Unit	Six Months Ended
Valuation Assumption	January 31, 2017

Volatility of common stock	27.75	%
Average volatility of peer companies	32.98	%
Average correlation coefficient of peer companies	35.35	%
Risk-free interest rate	0.96	%