Stock-Based Compensation (Tables)

3 Months Ended

Oct. 31, 2016

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

Summary of Stock-based Awards Outstanding by Award Type

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

Stock options	2,138,174
Performance shares	270,054
RSUs and restricted stock	313,479
Share units	8,503
Total	2,730,210

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 October 31,
	2016			2015
Cost of sales	$	48,000		63,000
Selling, general and administrative expenses	851,000			874,000
Research and development expenses	71,000			114,000
Stock-based compensation expense before income tax benefit	970,000			1,051,000
Estimated income tax benefit	(341,000		)	(365,000	)
Net stock-based compensation expense	$	629,000		686,000

Summary of net stock-based compensation expense by award type

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

	Three months ended October 31,
	2016			2015
Stock options	$	246,000		603,000
Performance shares	494,000			334,000
RSUs and restricted stock	188,000			71,000
ESPP	42,000			43,000
Stock-based compensation expense before income tax benefit	970,000			1,051,000
Estimated income tax benefit	(341,000		)	(365,000	)
Net stock-based compensation expense	$	629,000		686,000

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:

	Three months ended October 31,
	2016		2015
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards	$	245,000	93,000
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	195,000		89,000
Excess income tax benefit from settled equity-classified stock-based awards recorded as an increase to additional paid-in capital and reported as a cash inflow from financing activities in our Condensed Consolidated Statements of Cash Flows	$	50,000	$	4,000

Summary of the Plan's activity relating to stock options

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

	Awards (in Shares)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at July 31, 2016	2,256,679		$	28.87
Expired/canceled	(118,505	)	27.34
Outstanding at October 31, 2016	2,138,174		$	28.96	5.79	$	—
Exercisable at October 31, 2016	1,391,070		$	29.15	4.82	$	—
Vested and expected to vest at October 31, 2016	2,072,008		$	28.96	5.73	$	—

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 months ended October 31, 2015 was $5.73, which was determined using the Black-Scholes option pricing model, and included the following weighted average assumptions:

Expected dividend yield	4.29	%
Expected volatility	34.26	%
Risk-free interest rate	1.54	%
Expected life (years)	5.16

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, 2016	217,213		$	28.32
Granted	418,684		13.10
Converted to common stock	(38,706	)	14.75
Forfeited	(5,155	)	25.10
Outstanding at October 31, 2016	592,036		$	17.80	$	6,157,000
Vested at October 31, 2016	39,260		$	27.16	$	408,000
Vested and expected to vest at October 31, 2016	567,117		$	17.82	$	5,898,000