Stock-Based Compensation (Tables)

9 Months Ended

Apr. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock-based Awards Outstanding by Award Type

As of April 30, 2014, the following stock-based awards, by award type, were outstanding:

	April 30, 2014
Stock options	2,606,180
Performance shares	120,696
RSUs and restricted stock	37,326
Share units	7,323
SARs	7,000
Total	2,778,525

Stock-based compensation for awards detailing where recorded in Condensed Consolidated Statement of Operations

Stock-based compensation for awards issued is reflected in the following line items in our Condensed Consolidated Statements of Operations:

	Three months ended April 30,					Nine months ended April 30,
	2014			2013		2014		2013
Cost of sales	$	57,000		15,000		194,000		134,000
Selling, general and administrative expenses	860,000			568,000		2,463,000		1,783,000
Research and development expenses	153,000			111,000		429,000		328,000
Stock-based compensation expense before income tax benefit	1,070,000			694,000		3,086,000		2,245,000
Estimated income tax benefit	(394,000		)	(255,000	)	(1,143,000	)	(865,000	)
Net stock-based compensation expense	$	676,000		439,000		1,943,000		1,380,000

Summary of net stock-based compensation expense by award type

Stock-based compensation expense, by award type, is summarized as follows:

	Three months ended April 30,					Nine months ended April 30,
	2014			2013		2014		2013
Stock options	$	668,000		533,000		2,035,000		1,744,000
Performance shares	264,000			84,000		671,000		256,000
ESPP	47,000			44,000		135,000		145,000
RSUs and restricted stock	67,000			27,000		203,000		87,000
Share units	15,000			6,000		27,000		18,000
Equity-classified stock-based compensation expense	1,061,000			694,000		3,071,000		2,250,000
Liability-classified stock-based compensation expense (benefit) (SARs)	9,000			—		15,000		(5,000	)
Stock-based compensation expense before income tax benefit	1,070,000			694,000		3,086,000		2,245,000
Estimated income tax benefit	(394,000		)	(255,000	)	(1,143,000	)	(865,000	)
Net stock-based compensation expense	$	676,000		439,000		1,943,000		1,380,000

Components of actual Income tax benefit recognized for tax deductions relating to settlement of stock-based awards

The following table reconciles the actual income tax benefit recognized for tax deductions relating to the settlement of stock-based awards to the excess income tax benefit reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows:

	Nine months ended April 30,
	2014		2013
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	342,000	159,000
Less: Tax benefit initially recognized on settled stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls	280,000		69,000
Excess income tax benefit recorded as an increase to additional paid-in capital	62,000		90,000
Less: Tax benefit initially disclosed but not previously recognized on settled equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls	13,000		—
Excess income tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Condensed Consolidated Statements of Cash Flows	$	49,000	90,000

Summary of the Plan's activity relating to stock options (including SARs)

The following table summarizes the Plan's activity (including SARs) during the nine months ended April 30, 2014:

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2013	3,047,910		$	29.94
Granted	247,000		27.23
Expired/canceled	(413,240	)	45.66
Exercised	(4,050	)	19.54
Outstanding at October 31, 2013	2,877,620		27.46
Granted	11,000		31.29
Expired/canceled	(52,800	)	27.80
Exercised	(91,375	)	27.14
Outstanding at January 31, 2014	2,744,445		27.48
Granted	8,460		30.12
Expired/canceled	(15,220	)	30.72
Exercised	(124,505	)	27.61
Outstanding at April 30, 2014	2,613,180		$	27.46	5.47	$	11,220,000
Exercisable at April 30, 2014	1,281,048		$	27.11	2.99	$	5,964,000
Vested and expected to vest at April 30, 2014	2,554,057		$	27.45	5.42	$	10,998,000

Certain weighted average assumptions used to estimate the fair value of stock-based awards

	Three months ended April 30,			Nine months ended April 30,
	2014		2013	2014		2013
Expected dividend yield	3.98	%	N/A	4.03	%	4.29	%
Expected volatility	32.00	%	N/A	32.83	%	37.00	%
Risk-free interest rate	1.49	%	N/A	1.39	%	0.61	%
Expected life (years)	5.31		N/A	5.43		5.31

Summary of the Plan's activity relating to performance shares, RSUs, restricted stock and share units

The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock and share units:

	Awards (in Shares)		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Outstanding at July 31, 2013	102,334		$	25.80
Granted	68,167		24.58
Converted to common stock	(4,509	)	26.25
Outstanding at October 31, 2013	165,992		25.28
Granted	4,988		31.32
Forfeited	(9,570	)	24.82
Outstanding at January 31, 2014	161,410		25.50
Granted	3,935		30.34
Outstanding at April 30, 2014	165,345		$	25.61	$	5,250,000
Vested at April 30, 2014	12,978		$	27.10	$	412,000
Vested and expected to vest at April 30, 2014	159,807		$	25.62	$	5,074,000