Stock-Based Compensation (Tables)

6 Months Ended

Jan. 31, 2016

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

Summary of Stock-based Awards Outstanding by Award Type

As of January 31, 2016, the following stock-based awards, by award type, were outstanding:

	January 31, 2016
Stock options	2,350,258
Performance shares	174,665
RSUs and restricted stock	41,237
Share units	8,503
Total	2,574,663

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 January 31,					Six months ended January 31,
	2016			2015		2016		2015
Cost of sales	$	100,000		66,000		163,000		133,000
Selling, general and administrative expenses	881,000			856,000		1,755,000		1,958,000
Research and development expenses	93,000			139,000		207,000		307,000
Stock-based compensation expense before income tax benefit	1,074,000			1,061,000		2,125,000		2,398,000
Estimated income tax benefit	(347,000		)	(383,000	)	(712,000	)	(851,000	)
Net stock-based compensation expense	$	727,000		678,000		1,413,000		1,547,000

Summary of net stock-based compensation expense by award type

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

	Three months ended January 31,					Six months ended January 31,
	2016			2015		2016		2015
Stock options	$	609,000		731,000		1,212,000		1,489,000
Performance shares	390,000			167,000		724,000		575,000
ESPP	40,000			53,000		83,000		106,000
RSUs and restricted stock	35,000			96,000		106,000		200,000
Share units	—			14,000		—		28,000
Stock-based compensation expense before income tax benefit	1,074,000			1,061,000		2,125,000		2,398,000
Estimated income tax benefit	(347,000		)	(383,000	)	(712,000	)	(851,000	)
Net stock-based compensation expense	$	727,000		678,000		1,413,000		1,547,000

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:

	Six months ended January 31,
	2016		2015
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	132,000	941,000
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	127,000		803,000
Excess income tax benefit recorded as an increase to additional paid-in capital	5,000		138,000
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	—		—
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	$	5,000	138,000

Summary of the Plan's activity relating to stock options

The following table summarizes the Plan's activity during the six months ended January 31, 2016:

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2015	2,119,683		$	29.33
Granted	480,265		28.00
Expired/canceled	(182,250	)	29.84
Exercised	(19,200	)	27.24
Outstanding at October 31, 2015	2,398,498		29.04
Granted	10,000		20.90
Expired/canceled	(58,240	)	28.84
Outstanding at January 31, 2016	2,350,258		$	29.01	6.89	$	—
Exercisable at January 31, 2016	1,050,880		$	28.59	5.42	$	—
Vested and expected to vest at January 31, 2016	2,259,510		$	28.99	6.84	$	—

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

The estimated per-share weighted average grant-date fair value of stock options granted during the three and six months ended January 31, 2016 was $3.69 and $5.69, respectively, and $6.46 and $6.14, respectively, during the three and six months ended January 31, 2015, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

	Three months ended January 31,				Six months ended January 31,
	2016		2015		2016		2015
Expected dividend yield	5.74	%	3.55	%	4.32	%	3.54	%
Expected volatility	34.76	%	29.98	%	34.27	%	28.13	%
Risk-free interest rate	1.64	%	1.36	%	1.54	%	1.61	%
Expected life (years)	5.04		5.48		5.16		5.45

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, 2015	224,165		$	28.26
Granted	62,440		28.35
Converted to common stock	(6,988	)	25.28
Forfeited	(45,154	)	28.14
Outstanding at October 31, 2015	234,463		28.39
Converted to common stock	(4,725	)	26.77
Forfeited	(5,333	)	29.07
Outstanding at January 31, 2016	224,405		$	28.41	$	4,380,000
Vested at January 31, 2016	31,181		$	27.15	$	609,000
Vested and expected to vest at January 31, 2016	214,373		$	28.40	$	4,185,000