Stockholders' Equity

3 Months Ended

Oct. 31, 2015

Stockholders' Equity

14. Stockholders’ Equity

Stock-Based Compensation

During fiscal 2013, the Compensation and Development Committee of the Board (“the Committee”) approved a program to award restricted stock units to certain employees at the operating subsidiary and corporate levels. Under this program, the Committee approved awards that were granted in fiscal 2015 related to fiscal year 2014 performance and approved additional awards that were granted in fiscal 2016 related to fiscal 2015 performance. The employee restricted stock units vest, and shares of common stock will be issued, in equal installments on the first, second and third anniversaries of the date of grant. In fiscal 2016 and fiscal 2015, the Nominating and Governance Committee of the Board awarded restricted stock units to Board members that will vest, and shares of common stock will be issued, on the first anniversary of the date of the grant.

Total expense recognized in the three months ended October 31, 2015 and October 31, 2014 for these restricted stock unit awards and other stock-based compensation was $2,279 and $1,565, respectively.

For the restricted stock units that vested during the three month period ended October 31, 2015, a certain portion of the vested shares awarded were withheld as treasury shares to cover the recipients’ estimated withholding taxes. The total related taxes withheld of $2,484, to be paid by the Company on behalf of the recipients of these awards, is included in accrued compensation and related items as of October 31, 2015 in the Condensed Consolidated Balance Sheet and is expected to be paid in the second quarter of fiscal 2016.

Retained Earnings

The components of the change in retained earnings are as follows:

Balance as of July 31, 2015	$	1,172,432
Net income		50,497
Dividends declared and paid		(15,743	)
Balance as of October 31, 2015	$	1,207,186

The dividends declared and paid total of $15,743 represents the regular quarterly dividend of $0.30 per share for the first quarter of fiscal 2016.