Employee Benefit Plans

12 Months Ended

Jul. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company provides postretirement medical benefits (the “Plan”) for eligible regular full and part-time domestic employees (including spouses) as outlined by the Plan. Postretirement benefits are provided only if the employee was hired prior to April 1, 2008, and retires on or after attainment of age 55 with 15 years of credited service. Credited service begins accruing at the later of age 40 or date of hire. All active employees first eligible to retire after July 31, 1992, are covered by an unfunded, contributory postretirement healthcare plan where employer contributions will not exceed a defined dollar benefit amount, regardless of the cost of the program. Employer contributions to the plan are based on the employee’s age and service at retirement.

The accounting guidance on defined benefit pension and other postretirement plans requires full recognition of the funded status of defined benefit and other postretirement plans on the balance sheet as an asset or a liability. The guidance also requires that unrecognized prior service costs/credits, gains/losses, and transition obligations/assets be recorded in Accumulated Other Comprehensive Income, thus not changing the income statement recognition rules for such plans.

The Plan is unfunded and recorded as a liability in the accompanying consolidated balance sheets as of July 31, 2013 and 2012. The following table provides a reconciliation of the changes in the Plan’s accumulated benefit obligations during the years ended July 31:

	2013			2012
Obligation at beginning of year	$	14,225		$	15,011
Service cost	770			644
Interest cost	476			633
Actuarial (gain)/loss	(1,745		)	1,104
Benefit payments	(703		)	(2,062		)
Plan amendments	—			(1,105		)
Obligation at end of fiscal year	$	13,023		$	14,225

Benefit payments were $703 in fiscal 2013 as compared to $2,062 in fiscal 2012. The benefit payments in fiscal 2012 were unusually high as a result of four large claims that were realized within the Company's self-insured retiree population in the year. The plan was amended in fiscal 2012 to exclude dental and vision benefits for retirees over the age of 65, resulting in a reduction of $1,105 in the pension obligation as of July 31, 2012.

As of July 31, 2013 and 2012, amounts recognized as liabilities in the accompanying consolidated balance sheets consist of:

	2013		2012
Current liability	$	677	$	716
Noncurrent liability	12,346		13,509
	$	13,023	$	14,225

As of July 31, 2013 and 2012, pre-tax amounts recognized in accumulated other comprehensive income in the accompanying consolidated balance sheets consist of:

	2013		2012
Net actuarial gain	$	3,534	$	1,837
Prior service credit	1,203		1,405
	$	4,737	$	3,242

Net periodic benefit cost for the Plan for fiscal years 2013, 2012, and 2011 includes the following components:

	Years Ended July 31,
	2013			2012			2011
Net periodic postretirement benefit cost included the following components:
Service cost — benefits attributed to service during the period	$	770		$	644		$	666
Prior service credit	(203		)	(203		)	(82		)
Interest cost on accumulated postretirement benefit obligation	476			633			694
Amortization of unrecognized gain	(47		)	(189		)	(76		)
Periodic postretirement benefit cost	$	996		$	885		$	1,202

The estimated actuarial gain and prior service credit that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost over the next fiscal year are $244 and $203, respectively.

The following assumptions were used in accounting for the Plan:

	2013		2012		2011
Weighted average discount rate used in determining accumulated postretirement benefit obligation liability	4.00	%	3.25	%	4.50	%
Weighted average discount rate used in determining net periodic benefit cost	3.25	%	4.50	%	4.50	%
Assumed health care trend rate used to measure APBO at July 31	8.00	%	8.00	%	8.00	%
Rate to which cost trend rate is assumed to decline (the ultimate trend rate)	5.50	%	5.50	%	5.50	%
Fiscal year the ultimate trend rate is reached	2017		2016		2017

The discount rate utilized in preparing the accumulated postretirement benefit obligation liability was increased to 4.00% in fiscal 2013 from 3.25% in fiscal 2012 as a result of an increase in the bond yield as of the Company’s measurement date of July 31, 2013.

A one-percentage point change in assumed health care cost trend rates would have the following effects on the Plan:

	One-Percentage Point Increase		One-Percentage Point Decrease
Effect on future service and interest cost	$	14	$	(26	)
Effect on accumulated postretirement benefit obligation at July 31, 2013	234		(238		)

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the years ending July 31:

2014	$	677
2015	740
2016	813
2017	926
2018	1,041
2019 through 2023	6,733

The Company sponsors defined benefit pension plans that are primarily unfunded and provide an income benefit upon termination or retirement for certain of its international employees. As of July 31, 2013 and 2012, the accumulated pension obligation related to these plans was $3,977 and $4,021, respectively. As of July 31, 2013 and 2012, pre-tax amounts recognized in accumulated other comprehensive income in the accompanying balance sheets were $(807) and ($828), respectively. The net periodic benefit cost for these plans was $388, $299, and $301 during the years ended July 31, 2013, 2012 and 2011, respectively.

The Company has retirement and profit-sharing plans covering substantially all full-time domestic employees and certain employees of its foreign subsidiaries. Contributions to the plans are determined annually or quarterly, according to the respective plans, based on earnings of the respective companies and employee contributions. Accrued retirement and profit-sharing contributions of $3,615 and $4,371 were included in other long-term liabilities on the accompanying consolidated balance sheets as of July 31, 2013 and 2012, respectively. The amounts charged to expense for these retirement and profit sharing plans were $10,110, $12,569, and $12,875 during the years ended July 31, 2013, 2012 and 2011, respectively.

The Company also has deferred compensation plans for directors, officers and key executives which are discussed below. At July 31, 2013 and 2012, $15,769 and $13,738, respectively, of deferred compensation was included in other long-term liabilities in the accompanying consolidated balance sheets.

During fiscal 1998, the Company adopted a new deferred compensation plan that invests solely in shares of the Company’s Class A Nonvoting Common Stock. Participants in a predecessor phantom stock plan were allowed to convert their balances in the old plan to this new plan. The new plan was funded initially by the issuance of shares of Class A Nonvoting Common Stock to a Rabbi Trust. All deferrals into the new plan result in purchases of Class A Nonvoting Common Stock by the Rabbi Trust. No deferrals are allowed into a predecessor plan. Shares held by the Rabbi Trust are distributed to participants upon separation from the Company as defined in the plan agreement.

During fiscal 2002, the Company adopted a new deferred compensation plan that allows future contributions to be invested in shares of the Company’s Class A Nonvoting Common Stock or in certain other investment vehicles. Prior deferred compensation deferrals must remain in the Company’s Class A Nonvoting Common Stock. All participant deferrals into the new plan result in purchases of Class A Nonvoting Common Stock or certain other investment vehicles by the Rabbi Trust. Balances held by the Rabbi Trust are distributed to participants upon separation from the Company as defined in the plan agreement. On May 1, 2006, the plan was amended to require that deferrals into the Company’s Class A Nonvoting Common Stock must remain in the Company’s Class A Nonvoting Common Stock and be distributed in shares of the Company’s Class A Nonvoting Common Stock.