x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Wisconsin | 39-0178960 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
6555 West Good Hope Road, Milwaukee, WI | 53223 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Class A Nonvoting Common Stock, Par Value $.01 per share | New York Stock Exchange |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
PART I | Page |
PART II | |
PART III | |
PART IV | |
• | Operational excellence — Continuous productivity improvement and process transformation. |
• | Customer service — Focus on the customer and understanding customer needs. |
• | Innovation advantage — Technologically advanced, internally developed products drive growth and sustain gross profit margins. |
• | Global leadership position in niche markets. |
• | Digital capabilities. |
• | Compliance expertise. |
• | Driving operational efficiency within our manufacturing facilities and throughout the organization to improve profitability. |
• | Focusing on operational excellence and providing the Company's customers with the highest level of customer service. |
• | Enhancing our innovation development process to deliver high-value, innovative products that align with the Company's target markets. |
• | Performing comprehensive product reviews to optimize the Company's product offerings. |
• | Expanding our digital presence with a heightened focus on mobile technologies. |
• | Growing through focused sales and marketing efforts in selected vertical markets and strategic accounts. |
• | Enhancing our global employee development process to attract and retain key talent. |
2016 | 2015 | 2014 | |||||||
IDS | 69.3 | % | 68.8 | % | 67.4 | % | |||
WPS | 30.7 | % | 31.2 | % | 32.6 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
• | Facility identification and protection, which includes safety signs, pipe markers, labeling systems, spill control products, lockout/tagout devices, and software and services for auditing, procedure writing and training. |
• | Product identification, which includes materials and printing systems for product identification, brand protection labeling, work in process labeling, and finished product identification. |
• | Wire identification, which includes hand-held printers, wire markers, sleeves, and tags. |
• | People identification, which includes self-expiring name tags, badges, lanyards, and access control software. |
• | Patient identification, which includes wristbands and labels used in hospitals for tracking and improving the safety of patients. |
• | Custom wristbands used in the leisure and entertainment industry such as theme parks, concerts and festivals. |
• | Safety and compliance signs, tags, and labels. |
• | Informational and architectural signage. |
• | Asset tracking labels. |
• | First aid products. |
• | Industrial warehouse and office equipment. |
• | Labor law compliance posters. |
• | Delays or disruptions in product deliveries and payments in connection with international manufacturing and sales. |
• | Political and economic instability and disruptions. |
• | Imposition of duties and tariffs. |
• | Import, export and economic sanction laws. |
• | Current and changing governmental policies, regulatory, and business environments. |
• | Disadvantages from competing against companies from countries that are not subject to U.S. laws and regulations including the Foreign Corrupt Practices Act. |
• | Local labor market conditions. |
• | Regulations relating to climate change, air emissions, wastewater discharges, handling and disposal of hazardous materials and wastes. |
• | Regulations relating to health, safety and the protection of the environment. |
• | Specific country regulations where our products are manufactured or sold. |
• | Laws and regulations that apply to companies doing business with the government, including audit requirements of government contracts related to procurement integrity, export control, employment practices, and the accuracy of records and recording of costs. |
(a) | Market Information |
2016 | 2015 | 2014 | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
4th Quarter | $ | 32.68 | $ | 26.29 | $ | 26.76 | $ | 23.15 | $ | 30.75 | $ | 24.26 | ||||||||||||
3rd Quarter | $ | 27.82 | $ | 21.13 | $ | 28.91 | $ | 26.03 | $ | 27.89 | $ | 25.15 | ||||||||||||
2nd Quarter | $ | 26.39 | $ | 20.84 | $ | 27.56 | $ | 23.50 | $ | 31.61 | $ | 27.36 | ||||||||||||
1st Quarter | $ | 24.29 | $ | 19.52 | $ | 27.07 | $ | 21.19 | $ | 35.54 | $ | 29.19 |
(b) | Holders |
(c) | Issuer Purchases of Equity Securities |
(i) | Dividends |
2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | ||||||||||||||||||||||||||||
Class A | $ | 0.2050 | $ | 0.2025 | $ | 0.2025 | $ | 0.2025 | $ | 0.2025 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||||||||||
Class B | 0.18835 | 0.18585 | 0.2025 | 0.2025 | 0.2025 | 0.18335 | 0.20 | 0.20 | 0.20 |
(e) | Common Stock Price Performance Graph |
* | $100 invested on July 31, 2011 in stock or index—including reinvestment of dividends. Fiscal years ended July 31: |
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||||||||
Brady Corporation | $ | 100.00 | $ | 91.91 | $ | 118.05 | $ | 95.31 | $ | 88.53 | $ | 125.18 | ||||||||||||
S&P 500 Index | 100.00 | 109.13 | 136.41 | 159.52 | 177.4 | 187.12 | ||||||||||||||||||
S&P SmallCap 600 Index | 100.00 | 103.99 | 140.15 | 155.62 | 174.25 | 184.46 | ||||||||||||||||||
Russell 2000 Index | 100.00 | 100.19 | 135.02 | 146.57 | 164.21 | 164.10 |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Operating data (1) | ||||||||||||||||||||
Net sales | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | $ | 1,157,792 | $ | 1,071,504 | ||||||||||
Gross margin | 558,773 | 558,432 | 609,564 | 609,348 | 590,969 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 35,799 | 36,734 | 35,048 | 33,552 | 34,528 | |||||||||||||||
Selling, general and administrative | 405,096 | 422,704 | 452,164 | 427,858 | 392,694 | |||||||||||||||
Restructuring charges (2) | — | 16,821 | 15,012 | 26,046 | 6,084 | |||||||||||||||
Impairment charges (3) | — | 46,867 | 148,551 | 204,448 | — | |||||||||||||||
Total operating expenses | 440,895 | 523,126 | 650,775 | 691,904 | 433,306 | |||||||||||||||
Operating income (loss) | 117,878 | 35,306 | (41,211 | ) | (82,556 | ) | 157,663 | |||||||||||||
Other income (expense): | ||||||||||||||||||||
Investment and other (expense) income —net | (709 | ) | 845 | 2,402 | 3,523 | 2,082 | ||||||||||||||
Interest expense | (7,824 | ) | (11,156 | ) | (14,300 | ) | (16,641 | ) | (19,090 | ) | ||||||||||
Net other expense | (8,533 | ) | (10,311 | ) | (11,898 | ) | (13,118 | ) | (17,008 | ) | ||||||||||
Earnings (loss) from continuing operations before income taxes | 109,345 | 24,995 | (53,109 | ) | (95,674 | ) | 140,655 | |||||||||||||
Income taxes (4) | 29,235 | 20,093 | (4,963 | ) | 42,583 | 37,162 | ||||||||||||||
Earnings (loss) from continuing operations | $ | 80,110 | $ | 4,902 | $ | (48,146 | ) | $ | (138,257 | ) | $ | 103,493 | ||||||||
(Loss) earnings from discontinued operations, net of income taxes (5) | — | (1,915 | ) | 2,178 | (16,278 | ) | (121,404 | ) | ||||||||||||
Net earnings (loss) | $ | 80,110 | $ | 2,987 | $ | (45,968 | ) | $ | (154,535 | ) | $ | (17,911 | ) | |||||||
Earnings (loss) from continuing operations per Common Share— (Diluted): | ||||||||||||||||||||
Class A nonvoting | $ | 1.58 | $ | 0.10 | $ | (0.93 | ) | $ | (2.70 | ) | $ | 1.95 | ||||||||
Class B voting | $ | 1.56 | $ | 0.08 | $ | (0.95 | ) | $ | (2.71 | ) | $ | 1.94 | ||||||||
(Loss) earnings from discontinued operations per Common Share - (Diluted): | ||||||||||||||||||||
Class A nonvoting | $ | — | $ | (0.04 | ) | $ | 0.04 | $ | (0.32 | ) | $ | (2.29 | ) | |||||||
Class B voting | $ | — | $ | (0.04 | ) | $ | 0.05 | $ | (0.32 | ) | $ | (2.30 | ) | |||||||
Cash Dividends on: | ||||||||||||||||||||
Class A common stock | $ | 0.81 | $ | 0.80 | $ | 0.78 | $ | 0.76 | $ | 0.74 | ||||||||||
Class B common stock | $ | 0.79 | $ | 0.78 | $ | 0.76 | $ | 0.74 | $ | 0.72 | ||||||||||
Balance Sheet at July 31: | ||||||||||||||||||||
Total assets | 1,043,964 | 1,062,897 | 1,438,683 | 1,438,683 | 1,607,719 | |||||||||||||||
Long-term obligations, less current maturities | 211,982 | 200,774 | 201,150 | 201,150 | 254,944 | |||||||||||||||
Stockholders’ investment | 603,598 | 587,688 | 830,797 | 830,797 | 1,009,353 | |||||||||||||||
Cash Flow Data: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 138,976 | $ | 93,348 | $ | 93,420 | $ | 143,503 | $ | 144,705 | ||||||||||
Net cash (used in) provided by investing activities | (15,416 | ) | (14,365 | ) | 10,207 | (325,766 | ) | (64,604 | ) | |||||||||||
Net cash used in financing activities | (99,576 | ) | (32,152 | ) | (115,387 | ) | (33,060 | ) | (147,824 | ) | ||||||||||
Depreciation and amortization | 32,432 | 39,458 | 44,598 | 48,725 | 43,987 | |||||||||||||||
Capital expenditures | (17,140 | ) | (26,673 | ) | (43,398 | ) | (35,687 | ) | (24,147 | ) |
(1) | Operating data has been impacted by the reclassification of the Die-Cut businesses into discontinued operations in fiscal years 2012, 2013, 2014, and 2015. The Company has elected to not separately disclose the cash flows related to discontinued operations. Refer to Note 13 within Item 8 for further information on discontinued operations. The operating data is also impacted by acquisitions with one and three acquisitions being completed in fiscal years ended July 31, 2013 and 2012, respectively. There were no acquisitions in fiscal years 2016, 2015, or 2014. |
(2) | In fiscal 2012, the Company underwent several measures to address its cost structure, including a reduction in its workforce and decreased discretionary spending. During fiscal 2013, the Company executed a business simplification project which included various measures to address its cost structure and resulted in restructuring charges during fiscal 2013 and into fiscal 2014. In addition, in fiscal 2014, the Company approved a plan to consolidate facilities in the Americas, Europe, and Asia in order to enhance customer service, improve efficiency of operations, and reduce operating expenses. This plan resulted in restructuring charges during fiscal 2014 and fiscal 2015. |
(3) | The Company recognized impairment charges of $46.9 million, $148.6 million, and $204.4 million during the fiscal years ended July 31, 2015, 2014, and 2013, respectively. The impairment charges primarily related to the following reporting units: WPS Americas and WPS APAC in fiscal 2015; PeopleID in fiscal 2014; and WPS Americas and IDS APAC in fiscal 2013. Refer to Note 2 within Item 8 for further information regarding the impairment charges. |
(4) | Fiscal 2015 was significantly impacted by the impairment charges of $46.9 million, of which $39.8 million was non-deductible for income tax purposes. Fiscal 2014 was significantly impacted by the impairment charges of $148.6 million, of which $61.1 million was non-deductible for income tax purposes, and a tax charge of $4.0 million in continuing operations associated with the repatriation of the cash proceeds from the sale of the Die-Cut business. Fiscal 2013 was significantly impacted by the impairment charges of $204.4 million, of which $168.9 million was non-deductible for income tax purposes, as well as a tax charge of $26.6 million associated with the funding of the Precision Dynamics Corporation ("PDC") acquisition. |
(5) | The loss from discontinued operations in fiscal 2015 includes a $0.4 million net loss on the sale of the Die-Cut business, recorded during the three months ended October 31, 2014. The earnings from discontinued operations in fiscal 2014 include a $1.2 million net loss on the sale of the Die-Cut business recorded during the three months ended July 31, 2014. The Die-Cut business was sold in two phases. The first phase closed in the fourth quarter of fiscal 2014 and the second and final phase closed in the first quarter of fiscal 2015. The loss from discontinued operations in fiscal 2013 was primarily attributable to a $15.7 million write-down of the Die-Cut business to its estimated fair value less costs to sell. The loss from discontinued operations in fiscal 2012 was primarily attributable to the $115.7 million goodwill impairment charge recorded during the three months ending January 31, 2012, which was related to the Die-Cut disposal group. Refer to Note 13 within Item 8 for further information regarding discontinued operations. |
(Dollars in thousands) | 2016 | % Sales | 2015 | % Sales | 2014 | % Sales | |||||||||||||||
Net sales | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | |||||||||||||||
Gross margin | 558,773 | 49.9 | % | 558,432 | 47.7 | % | 609,564 | 49.8 | % | ||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 35,799 | 3.2 | % | 36,734 | 3.1 | % | 35,048 | 2.9 | % | ||||||||||||
Selling, general & administrative | 405,096 | 36.1 | % | 422,704 | 36.1 | % | 452,164 | 36.9 | % | ||||||||||||
Restructuring charges | — | — | % | 16,821 | 1.4 | % | 15,012 | 1.2 | % | ||||||||||||
Impairment charges | — | — | % | 46,867 | 4.0 | % | 148,551 | 12.1 | % | ||||||||||||
Total operating expenses | 440,895 | 39.3 | % | 523,126 | 44.6 | % | 650,775 | 53.1 | % | ||||||||||||
Operating income (loss) | $ | 117,878 | 10.5 | % | $ | 35,306 | 3.0 | % | $ | (41,211 | ) | (3.4 | )% |
(Dollars in thousands) | 2016 | % Sales | 2015 | % Sales | 2014 | % Sales | |||||||||||||||
Operating income (loss) | $ | 117,878 | 10.5 | % | $ | 35,306 | 3.0 | % | $ | (41,211 | ) | (3.4 | )% | ||||||||
Other (expense) and income: | |||||||||||||||||||||
Investment and other (expense) income | (709 | ) | (0.1 | )% | 845 | 0.1 | % | 2,402 | 0.2 | % | |||||||||||
Interest expense | (7,824 | ) | (0.7 | )% | (11,156 | ) | (1.0 | )% | (14,300 | ) | (1.2 | )% | |||||||||
Earnings (loss) from continuing operations before tax | 109,345 | 9.8 | % | 24,995 | 2.1 | % | (53,109 | ) | (4.3 | )% | |||||||||||
Income taxes | 29,235 | 2.6 | % | 20,093 | 1.7 | % | (4,963 | ) | (0.4 | )% | |||||||||||
Earnings (loss) from continuing operations | 80,110 | 7.1 | % | 4,902 | 0.4 | % | (48,146 | ) | (3.9 | )% | |||||||||||
(Loss) earnings from discontinued operations, net of income taxes | — | — | % | (1,915 | ) | (0.2 | )% | 2,178 | 0.2 | % | |||||||||||
Net earnings (loss) | $ | 80,110 | 7.1 | % | $ | 2,987 | 0.3 | % | $ | (45,968 | ) | (3.8 | )% |
Years ended July 31, | ||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | |||||||||
SALES TO EXTERNAL CUSTOMERS | ||||||||||||
ID Solutions | $ | 776,877 | $ | 806,484 | $ | 825,123 | ||||||
WPS | 343,748 | 365,247 | 399,911 | |||||||||
Total | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | ||||||
SALES GROWTH INFORMATION | ||||||||||||
ID Solutions | ||||||||||||
Organic | (0.7 | )% | 1.7 | % | 2.9 | % | ||||||
Currency | (3.0 | )% | (4.0 | )% | (0.2 | )% | ||||||
Acquisitions | —% | —% | 8.9 | % | ||||||||
Total | (3.7 | )% | (2.3 | )% | 11.6 | % | ||||||
Workplace Safety | ||||||||||||
Organic | (0.8 | )% | (0.4 | )% | (4.6 | )% | ||||||
Currency | (5.1 | )% | (8.3 | )% | 0.1 | % | ||||||
Total | (5.9 | )% | (8.7 | )% | (4.5 | )% | ||||||
Total Company | ||||||||||||
Organic | (0.7 | )% | 1.0 | % | 0.2 | % | ||||||
Currency | (3.7 | )% | (5.4 | )% | (0.1 | )% | ||||||
Acquisitions | —% | —% | 5.7 | % | ||||||||
Total | (4.4 | )% | (4.4 | )% | 5.8 | % | ||||||
SEGMENT PROFIT | ||||||||||||
ID Solutions | $ | 169,776 | $ | 149,840 | $ | 176,129 | ||||||
Workplace Safety | 59,847 | 56,502 | 66,238 | |||||||||
Total | $ | 229,623 | $ | 206,342 | $ | 242,367 | ||||||
SEGMENT PROFIT AS A PERCENT OF SALES | ||||||||||||
ID Solutions | 21.9 | % | 18.6 | % | 21.3 | % | ||||||
Workplace Safety | 17.4 | % | 15.5 | % | 16.6 | % | ||||||
Total | 20.5 | % | 17.6 | % | 19.8 | % |
Years ended: | ||||||||||||
(Dollars in thousands) | July 31, 2016 | July 31, 2015 | July 31, 2014 | |||||||||
Total profit from reportable segments | $ | 229,623 | $ | 206,342 | $ | 242,367 | ||||||
Unallocated costs: | ||||||||||||
Administrative costs | 111,745 | 107,348 | 120,015 | |||||||||
Restructuring charges | — | 16,821 | 15,012 | |||||||||
Impairment charges | — | 46,867 | 148,551 | |||||||||
Investment and other expense (income) | 709 | (845 | ) | (2,402 | ) | |||||||
Interest expense | 7,824 | 11,156 | 14,300 | |||||||||
Earnings (loss) from continuing operations before income taxes | $ | 109,345 | $ | 24,995 | $ | (53,109 | ) |
Years ended July 31, | |||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | ||||||||
Net cash flow provided by (used in): | |||||||||||
Operating activities | $ | 138,976 | $ | 93,348 | $ | 93,420 | |||||
Investing activities | (15,416 | ) | (14,365 | ) | 10,207 | ||||||
Financing activities | (99,576 | ) | (32,152 | ) | (115,387 | ) | |||||
Effect of exchange rate changes on cash | 2,752 | (14,173 | ) | 2,536 | |||||||
Net increase (decrease) in cash and cash equivalents | $ | 26,736 | $ | 32,658 | $ | (9,224 | ) |
Payments Due by Period | ||||||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Uncertain Timeframe | ||||||||||||||||||
Long-term Debt Obligations | $ | 211,982 | $ | 49,794 | $ | — | $ | 162,188 | $ | — | $ | — | ||||||||||||
Operating Lease Obligations | 74,768 | 16,243 | 27,125 | 15,903 | 15,497 | — | ||||||||||||||||||
Purchase Obligations (1) | 32,166 | 32,155 | 10 | 1 | — | — | ||||||||||||||||||
Interest Obligations | 10,640 | 4,247 | 2,131 | 4,262 | — | — | ||||||||||||||||||
Tax Obligations | 15,294 | — | — | — | — | 15,294 | ||||||||||||||||||
Other Obligations (2) | 3,365 | 499 | 826 | 698 | 1,342 | — | ||||||||||||||||||
Total | $ | 348,215 | $ | 102,938 | $ | 30,092 | $ | 183,052 | $ | 16,839 | $ | 15,294 |
(1) | Purchase obligations include all open purchase orders as of July 31, 2016. |
(2) | Other obligations represent expected payments under the Company’s U.S. postretirement medical plan and international pension plans as disclosed in Note 4 to the Consolidated Financial Statements, under Item 8 of this report. |
• | Brady's ability to compete effectively or to successfully execute our strategy |
• | Brady's ability to develop technologically advanced products that meet customer demands |
• | Difficulties in protecting our websites, networks, and systems against security breaches |
• | Deterioration or instability in the global economy and financial markets |
• | Decreased demand for the Company's products |
• | Brady's ability to retain large customers |
• | Risks associated with the loss of key employees |
• | Brady's ability to execute facility consolidations and maintain acceptable operational service metrics |
• | Extensive regulations by U.S. and non-U.S. governmental and self regulatory entities |
• | Litigation, including product liability claims |
• | Divestitures and contingent liabilities from divestitures |
• | Brady's ability to properly identify, integrate, and grow acquired companies |
• | Foreign currency fluctuations |
• | Potential write-offs of Brady's substantial intangible assets |
• | Changes in tax legislation and tax rates |
• | Differing interests of voting and non-voting shareholders |
• | Brady's ability to meet certain financial covenants required by our debt agreements. |
• | Numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of this Form 10-K. |
Page | |
Financial Statements: | |
2016 | 2015 | ||||||
(Dollars in thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 141,228 | $ | 114,492 | |||
Accounts receivable — net | 147,333 | 157,386 | |||||
Inventories: | |||||||
Finished products | 64,313 | 66,700 | |||||
Work-in-process | 16,678 | 16,958 | |||||
Raw materials and supplies | 18,436 | 20,849 | |||||
Total inventories | 99,427 | 104,507 | |||||
Prepaid expenses and other current assets | 19,436 | 19,755 | |||||
Total current assets | 407,424 | 396,140 | |||||
Other assets: | |||||||
Goodwill | 429,871 | 433,199 | |||||
Other intangible assets | 59,806 | 68,888 | |||||
Deferred income taxes | 27,238 | 34,752 | |||||
Other | 17,181 | 18,704 | |||||
Property, plant and equipment: | |||||||
Cost: | |||||||
Land | 5,809 | 5,284 | |||||
Buildings and improvements | 95,355 | 94,423 | |||||
Machinery and equipment | 256,549 | 270,086 | |||||
Construction in progress | 2,842 | 2,164 | |||||
360,555 | 371,957 | ||||||
Less accumulated depreciation | 258,111 | 260,743 | |||||
Property, plant and equipment — net | 102,444 | 111,214 | |||||
Total | $ | 1,043,964 | $ | 1,062,897 | |||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | |||||||
Current liabilities: | |||||||
Notes payable | $ | 4,928 | $ | 10,411 | |||
Accounts payable | 62,245 | 73,020 | |||||
Wages and amounts withheld from employees | 45,998 | 30,282 | |||||
Taxes, other than income taxes | 7,403 | 7,250 | |||||
Accrued income taxes | 6,136 | 7,576 | |||||
Other current liabilities | 40,017 | 37,939 | |||||
Current maturities on long-term debt | — | 42,514 | |||||
Total current liabilities | 166,727 | 208,992 | |||||
Long-term obligations, less current maturities | 211,982 | 200,774 | |||||
Other liabilities | 61,657 | 65,443 | |||||
Total liabilities | 440,366 | 475,209 | |||||
Stockholders’ investment: | |||||||
Class A nonvoting common stock — Issued 51,261,487 and 51,261,487 shares, respectively; (aggregate liquidation preference of $42,803 and $42,803 at July 31, 2016 and 2015, respectively) | 513 | 513 | |||||
Class B voting common stock — Issued and outstanding 3,538,628 shares | 35 | 35 | |||||
Additional paid-in capital | 317,001 | 314,403 | |||||
Earnings retained in the business | 453,371 | 414,069 | |||||
Treasury stock — 4,340,513 and 3,480,303 shares at July 31, 2016 and 2015, respectively of Class A nonvoting common stock, at cost | (108,714 | ) | (93,234 | ) | |||
Accumulated other comprehensive loss | (54,745 | ) | (45,034 | ) | |||
Other | (3,863 | ) | (3,064 | ) | |||
Total stockholders’ investment | 603,598 | 587,688 | |||||
Total | $ | 1,043,964 | $ | 1,062,897 |
2016 | 2015 | 2014 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Net sales | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | |||||
Cost of products sold | 561,852 | 613,299 | 615,470 | ||||||||
Gross margin | 558,773 | 558,432 | 609,564 | ||||||||
Operating expenses: | |||||||||||
Research and development | 35,799 | 36,734 | 35,048 | ||||||||
Selling, general and administrative | 405,096 | 422,704 | 452,164 | ||||||||
Restructuring charges | — | 16,821 | 15,012 | ||||||||
Impairment charges | — | 46,867 | 148,551 | ||||||||
Total operating expenses | 440,895 | 523,126 | 650,775 | ||||||||
Operating income (loss) | 117,878 | 35,306 | (41,211 | ) | |||||||
Other (expense) and income: | |||||||||||
Investment and other (expense) income | (709 | ) | 845 | 2,402 | |||||||
Interest expense | (7,824 | ) | (11,156 | ) | (14,300 | ) | |||||
Earnings (loss) from continuing operations before income taxes | 109,345 | 24,995 | (53,109 | ) | |||||||
Income tax expense (benefit) | 29,235 | 20,093 | (4,963 | ) | |||||||
Earnings (loss) from continuing operations | $ | 80,110 | $ | 4,902 | $ | (48,146 | ) | ||||
(Loss) earnings from discontinued operations, net of income taxes | — | (1,915 | ) | 2,178 | |||||||
Net earnings (loss) | $ | 80,110 | $ | 2,987 | $ | (45,968 | ) | ||||
Earnings (loss) from continuing operations per Class A Nonvoting Common Share | |||||||||||
Basic | $ | 1.59 | $ | 0.10 | $ | (0.93 | ) | ||||
Diluted | $ | 1.58 | $ | 0.10 | $ | (0.93 | ) | ||||
Earnings (loss) from continuing operations per Class B Voting Common Share: | |||||||||||
Basic | $ | 1.57 | $ | 0.08 | $ | (0.95 | ) | ||||
Diluted | $ | 1.56 | $ | 0.08 | $ | (0.95 | ) | ||||
(Loss) earnings from discontinued operations per Class A Nonvoting Common Share: | |||||||||||
Basic | $ | — | $ | (0.04 | ) | $ | 0.04 | ||||
Diluted | $ | — | $ | (0.04 | ) | $ | 0.04 | ||||
(Loss) earnings from discontinued operations per Class B Voting Common Share: | |||||||||||
Basic | $ | — | $ | (0.04 | ) | $ | 0.05 | ||||
Diluted | $ | — | $ | (0.04 | ) | $ | 0.05 | ||||
Net earnings (loss) per Class A Nonvoting Common Share: | |||||||||||
Basic | $ | 1.59 | $ | 0.06 | $ | (0.89 | ) | ||||
Diluted | $ | 1.58 | $ | 0.06 | $ | (0.89 | ) | ||||
Dividends | $ | 0.81 | $ | 0.80 | $ | 0.78 | |||||
Net earnings (loss) per Class B Voting Common Share: | |||||||||||
Basic | $ | 1.57 | $ | 0.04 | $ | (0.90 | ) | ||||
Diluted | $ | 1.56 | $ | 0.04 | $ | (0.90 | ) | ||||
Dividends | $ | 0.79 | $ | 0.78 | $ | 0.76 | |||||
Weighted average common shares outstanding (in thousands): | |||||||||||
Basic | 50,541 | 51,285 | 51,866 | ||||||||
Diluted | 50,769 | 51,383 | 51,866 |
2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net earnings (loss) | $ | 80,110 | $ | 2,987 | $ | (45,968 | ) | ||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Net (loss) gain recognized in other comprehensive (loss) income | (1,405 | ) | (85,622 | ) | 4,543 | ||||||
Reclassification adjustment for (gains) losses included in net earnings (loss) | — | (34,697 | ) | 3,004 | |||||||
(1,405 | ) | (120,319 | ) | 7,547 | |||||||
Net investment hedge translation adjustments | 4,626 | 21,477 | (4,243 | ) | |||||||
Long-term intercompany loan translation adjustments: | |||||||||||
Net (loss) gain recognized in other comprehensive (loss) income | (6,906 | ) | 546 | 211 | |||||||
Reclassification adjustment for (gains) losses included in net (loss) earnings | — | (393 | ) | 865 | |||||||
(6,906 | ) | 153 | 1,076 | ||||||||
Cash flow hedges: | |||||||||||
Net (loss) gain recognized in other comprehensive (loss) income | (1,254 | ) | 1,643 | 8 | |||||||
Reclassification adjustment for gains (losses) included in net earnings (loss) | 196 | (1,325 | ) | (147 | ) | ||||||
(1,058 | ) | 318 | (139 | ) | |||||||
Pension and other post-retirement benefits: | |||||||||||
Net (loss) gain recognized in other comprehensive (loss) income | (293 | ) | 1,057 | 5,211 | |||||||
Actuarial gain amortization | (612 | ) | (741 | ) | (240 | ) | |||||
Prior service credit amortization | (1,035 | ) | (1,170 | ) | (203 | ) | |||||
Reclassification adjustment for (gains) losses included in net earnings (loss) | — | (1,741 | ) | 131 | |||||||
(1,940 | ) | (2,595 | ) | 4,899 | |||||||
Other comprehensive (loss) income, before tax | (6,683 | ) | (100,966 | ) | 9,140 | ||||||
Income tax (expense) benefit related to items of other comprehensive (loss) income | (3,028 | ) | (8,224 | ) | (1,047 | ) | |||||
Other comprehensive (loss) income, net of tax | (9,711 | ) | (109,190 | ) | 8,093 | ||||||
Comprehensive income (loss) | $ | 70,399 | $ | (106,203 | ) | $ | (37,875 | ) |
Common Stock | Additional Paid-In Capital | Earnings Retained in the Business | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Other | |||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Balances at July 31, 2013 | $ | 548 | $ | 306,191 | $ | 538,512 | $ | (69,797 | ) | $ | 56,063 | $ | (720 | ) | ||||||||||
Net earnings (loss) | — | — | (45,968 | ) | — | — | — | |||||||||||||||||
Other comprehensive (loss) income, net of tax | — | — | — | — | 8,093 | — | ||||||||||||||||||
Issuance of 490,507 shares of Class A Common Stock under stock option plan | — | 847 | — | 11,266 | — | — | ||||||||||||||||||
Other | — | (371 | ) | — | (4,225 | ) | — | (1,439 | ) | |||||||||||||||
Tax benefit from exercise of stock options and deferred compensation distributions | — | (70 | ) | — | — | — | — | |||||||||||||||||
Stock-based compensation expense (Note 7) | — | 5,214 | — | — | — | — | ||||||||||||||||||
Purchase of 1,180,531 shares of Class A Common Stock | — | — | — | (30,581 | ) | — | — | |||||||||||||||||
Cash dividends on Common Stock | ||||||||||||||||||||||||
Class A — $0.78 per share | — | — | (37,786 | ) | — | — | — | |||||||||||||||||
Class B — $0.76 per share | — | — | (2,701 | ) | — | — | — | |||||||||||||||||
Balances at July 31, 2014 | $ | 548 | $ | 311,811 | $ | 452,057 | $ | (93,337 | ) | $ | 64,156 | $ | (2,159 | ) | ||||||||||
Net earnings (loss) | — | — | 2,987 | — | — | — | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | — | — | — | — | (109,190 | ) | — | |||||||||||||||||
Issuance of 102,780 shares of Class A Common Stock under stock plan | — | (1,315 | ) | — | 2,735 | — | — | |||||||||||||||||
Other | — | 2,312 | — | (2,632 | ) | — | (905 | ) | ||||||||||||||||
Tax (shortfall) benefit from exercise of stock options and deferred compensation distributions | — | (2,876 | ) | — | — | — | — | |||||||||||||||||
Stock-based compensation expense (Note 7) | — | 4,471 | — | — | — | — | ||||||||||||||||||
Cash dividends on Common Stock | ||||||||||||||||||||||||
Class A — $0.80 per share | — | — | (38,204 | ) | — | — | — | |||||||||||||||||
Class B — $0.78 per share | — | — | (2,771 | ) | — | — | — | |||||||||||||||||
Balances at July 31, 2015 | $ | 548 | $ | 314,403 | $ | 414,069 | $ | (93,234 | ) | $ | (45,034 | ) | $ | (3,064 | ) | |||||||||
Net earnings (loss) | — | — | 80,110 | — | — | — | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | — | — | — | — | (9,711 | ) | — | |||||||||||||||||
Issuance of 304,471 shares of Class A Common Stock under stock plan | — | (3,830 | ) | — | 8,300 | — | — | |||||||||||||||||
Other | — | (10 | ) | — | (228 | ) | — | (799 | ) | |||||||||||||||
Tax (shortfall) benefit from exercise of stock options, vesting of RSUs, and deferred compensation distributions | — | (1,716 | ) | — | — | — | — | |||||||||||||||||
Stock-based compensation expense (Note 7) | — | 8,154 | — | — | — | — | ||||||||||||||||||
Purchase of 1,153,689 shares of Class A Common Stock | — | — | — | (23,552 | ) | — | — | |||||||||||||||||
Cash dividends on Common Stock | ||||||||||||||||||||||||
Class A — $0.81 per share | — | — | (38,001 | ) | — | — | — | |||||||||||||||||
Class B — $0.79 per share | — | — | (2,807 | ) | — | — | — | |||||||||||||||||
Balances at July 31, 2016 | $ | 548 | $ | 317,001 | $ | 453,371 | $ | (108,714 | ) | $ | (54,745 | ) | $ | (3,863 | ) |
2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Operating activities: | |||||||||||
Net earnings (loss) | $ | 80,110 | $ | 2,987 | $ | (45,968 | ) | ||||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 32,432 | 39,458 | 44,598 | ||||||||
Non-cash portion of restructuring charges | — | 4,164 | 566 | ||||||||
Non-cash portion of stock-based compensation expense | 8,154 | 4,471 | 5,214 | ||||||||
Impairment charges | — | 46,867 | 148,551 | ||||||||
Loss on sales of businesses, net | — | 426 | 1,238 | ||||||||
Deferred income taxes | 2,085 | (7,233 | ) | (27,516 | ) | ||||||
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): | |||||||||||
Accounts receivable | 8,159 | 1,317 | (3,600 | ) | |||||||
Inventories | 4,833 | (763 | ) | (12,608 | ) | ||||||
Prepaid expenses and other assets | 475 | 9,188 | (278 | ) | |||||||
Accounts payable and accrued liabilities | 3,928 | (8,516 | ) | (20,508 | ) | ||||||
Income taxes | (1,200 | ) | 982 | 3,731 | |||||||
Net cash provided by operating activities | 138,976 | 93,348 | 93,420 | ||||||||
Investing activities: | |||||||||||
Purchases of property, plant and equipment | (17,140 | ) | (26,673 | ) | (43,398 | ) | |||||
Sales of businesses, net of cash retained | — | 6,111 | 54,242 | ||||||||
Other | 1,724 | 6,197 | (637 | ) | |||||||
Net cash (used in) provided by investing activities | (15,416 | ) | (14,365 | ) | 10,207 | ||||||
Financing activities: | |||||||||||
Payment of dividends | (40,808 | ) | (40,976 | ) | (40,487 | ) | |||||
Proceeds from issuance of common stock | 5,246 | 1,644 | 12,113 | ||||||||
Purchase of treasury stock | (23,552 | ) | — | (30,581 | ) | ||||||
Proceeds from borrowing on credit facilities | 96,276 | 83,382 | 73,334 | ||||||||
Repayment of borrowing on credit facilities | (91,759 | ) | (32,314 | ) | (62,398 | ) | |||||
Principal payments on debt | (42,514 | ) | (42,514 | ) | (61,264 | ) | |||||
Debt issuance costs | (803 | ) | — | — | |||||||
Income tax on equity-based compensation, and other | (1,662 | ) | (1,374 | ) | (6,104 | ) | |||||
Net cash used in financing activities | (99,576 | ) | (32,152 | ) | (115,387 | ) | |||||
Effect of exchange rate changes on cash | 2,752 | (14,173 | ) | 2,536 | |||||||
Net increase (decrease) in cash and cash equivalents | 26,736 | 32,658 | (9,224 | ) | |||||||
Cash and cash equivalents, beginning of period | 114,492 | 81,834 | 91,058 | ||||||||
Cash and cash equivalents, end of period | $ | 141,228 | $ | 114,492 | $ | 81,834 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 8,528 | $ | 11,164 | $ | 14,594 | |||||
Income taxes paid | 28,497 | 25,024 | 33,043 |
Asset Category | Range of Useful Lives | |
Buildings & Improvements | 10 to 33 Years | |
Computer Systems | 5 Years | |
Machinery & Equipment | 3 to 10 Years |
IDS | WPS | Total | |||||||||
Balance as of July 31, 2014 | $ | 412,289 | $ | 102,715 | $ | 515,004 | |||||
Impairment charge | — | (37,112 | ) | (37,112 | ) | ||||||
Translation adjustments | (29,503 | ) | (15,190 | ) | (44,693 | ) | |||||
Balance as of July 31, 2015 | $ | 382,786 | $ | 50,413 | $ | 433,199 | |||||
Translation adjustments | 1,743 | (5,071 | ) | (3,328 | ) | ||||||
Balance as of July 31, 2016 | $ | 384,529 | $ | 45,342 | $ | 429,871 |
July 31, 2016 | July 31, 2015 | ||||||||||||||||||||||||||
Weighted Average Amortization Period (Years) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Weighted Average Amortization Period (Years) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
Amortized other intangible assets: | |||||||||||||||||||||||||||
Patents | 5 | $ | 12,252 | $ | (11,063 | ) | $ | 1,189 | 5 | $ | 12,073 | $ | (10,641 | ) | $ | 1,432 | |||||||||||
Tradenames and other | 5 | 14,359 | (13,709 | ) | 650 | 5 | 14,375 | (12,471 | ) | 1,904 | |||||||||||||||||
Customer relationships | 7 | 135,795 | (100,830 | ) | 34,965 | 7 | 136,693 | (94,537 | ) | 42,156 | |||||||||||||||||
Non-compete agreements and other | 4 | 9,153 | (9,142 | ) | 11 | 4 | 9,076 | (9,032 | ) | 44 | |||||||||||||||||
Unamortized other intangible assets: | |||||||||||||||||||||||||||
Tradenames | N/A | 22,991 | — | 22,991 | N/A | 23,352 | — | 23,352 | |||||||||||||||||||
Total | $ | 194,550 | $ | (134,744 | ) | $ | 59,806 | $ | 195,569 | $ | (126,681 | ) | $ | 68,888 |
Unrealized gain (loss) on cash flow hedges | Gain on postretirement plans | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | ||||||||||||
Ending balance, July 31, 2014 | $ | (12 | ) | $ | 4,854 | $ | 59,314 | $ | 64,156 | ||||||
Other comprehensive (loss) income before reclassification | 829 | 2,236 | (73,098 | ) | (70,033 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (808 | ) | (3,652 | ) | (34,697 | ) | (39,157 | ) | |||||||
Ending balance, July 31, 2015 | $ | 9 | $ | 3,438 | $ | (48,481 | ) | $ | (45,034 | ) | |||||
Other comprehensive (loss) income before reclassification | (986 | ) | 445 | (7,643 | ) | (8,184 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | 120 | (1,647 | ) | — | (1,527 | ) | |||||||||
Ending balance, July 31, 2016 | $ | (857 | ) | $ | 2,236 | $ | (56,124 | ) | $ | (54,745 | ) |
2016 | 2015 | 2014 | ||||||||||
Income tax (expense) benefit related to items of other comprehensive (loss) income: | ||||||||||||
Net investment hedge translation adjustments | $ | (1,804 | ) | $ | (8,450 | ) | $ | 302 | ||||
Long-term intercompany loan settlements | — | — | 579 | |||||||||
Cash flow hedges | 192 | (308 | ) | 28 | ||||||||
Pension and other post-retirement benefits | 738 | 949 | (1,898 | ) | ||||||||
Other income tax adjustments | (2,154 | ) | (415 | ) | (58 | ) | ||||||
Income tax expense related to items of other comprehensive (loss) income | $ | (3,028 | ) | $ | (8,224 | ) | $ | (1,047 | ) |
2016 | 2015 | |||||||
Obligation at beginning of year | $ | 4,135 | $ | 8,056 | ||||
Service cost | 9 | 210 | ||||||
Interest cost | 114 | 222 | ||||||
Actuarial (gain) loss | (38 | ) | 502 | |||||
Benefit payments | (420 | ) | (365 | ) | ||||
Plan amendments | — | (1,935 | ) | |||||
Curtailment gain | — | (2,555 | ) | |||||
Obligation at end of fiscal year | $ | 3,800 | $ | 4,135 |
2016 | 2015 | |||||||
Current liability | $ | 499 | $ | 659 | ||||
Non-current liability | 3,301 | 3,476 | ||||||
$ | 3,800 | $ | 4,135 |
2016 | 2015 | |||||||
Net actuarial gain | $ | 6,048 | $ | 6,655 | ||||
Prior service credit | — | 1,035 | ||||||
$ | 6,048 | $ | 7,690 |
Years Ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net periodic postretirement benefit (gain) cost included the following components: | ||||||||||||
Service cost | $ | 9 | $ | 210 | $ | 674 | ||||||
Interest cost | 114 | 222 | 534 | |||||||||
Amortization of prior service credit | (1,035 | ) | (1,169 | ) | (203 | ) | ||||||
Amortization of net actuarial gain | (646 | ) | (804 | ) | (265 | ) | ||||||
Curtailment gain | — | (4,296 | ) | — | ||||||||
Periodic postretirement benefit (gain) cost | $ | (1,558 | ) | $ | (5,837 | ) | $ | 740 |
2016 | 2015 | 2014 | |||||||
Weighted average discount rate used in determining accumulated postretirement benefit obligation | 2.50 | % | 3.00 | % | 3.50 | % | |||
Weighted average discount rate used in determining net periodic benefit cost | 3.00 | % | 3.41 | % | 4.00 | % | |||
Assumed health care trend rate used to measure APBO at July 31 | 7.50 | % | 7.00 | % | 7.50 | % | |||
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 | 2018 | 2018 | 2018 |
One-Percentage Point Increase | One-Percentage Point Decrease | |||||||
Effect on future service and interest cost | $ | 3 | $ | (3 | ) | |||
Effect on accumulated postretirement benefit obligation at July 31, 2016 | 17 | (18 | ) |
2017 | $ | 499 | |
2018 | 449 | ||
2019 | 377 | ||
2020 | 359 | ||
2021 | 339 | ||
2022 through 2026 | 1,342 |
Years Ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
United States | $ | 61,349 | $ | (582 | ) | $ | (134,596 | ) | ||||
Other Nations | 47,996 | 25,577 | 81,487 | |||||||||
Total | $ | 109,345 | $ | 24,995 | $ | (53,109 | ) |
Years Ended July 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Current income tax expense (benefit): | ||||||||||||
United States | $ | 5,048 | $ | 9,075 | $ | (1,137 | ) | |||||
Other Nations | 19,929 | 18,806 | 19,513 | |||||||||
States (U.S.) | 1,348 | (352 | ) | 1,090 | ||||||||
$ | 26,325 | $ | 27,529 | $ | 19,466 | |||||||
Deferred income tax expense (benefit): | ||||||||||||
United States | $ | 3,946 | $ | (5,906 | ) | $ | (22,754 | ) | ||||
Other Nations | (1,387 | ) | (1,868 | ) | (1,803 | ) | ||||||
States (U.S.) | 351 | 338 | 128 | |||||||||
$ | 2,910 | $ | (7,436 | ) | $ | (24,429 | ) | |||||
Total income tax expense (benefit) | $ | 29,235 | $ | 20,093 | $ | (4,963 | ) |
July 31, 2016 | ||||||||||||
Assets | Liabilities | Total | ||||||||||
Inventories | $ | 5,142 | $ | (153 | ) | $ | 4,989 | |||||
Prepaid catalog costs | — | (1,577 | ) | (1,577 | ) | |||||||
Employee benefits | 6,347 | — | 6,347 | |||||||||
Accounts receivable | 1,619 | (15 | ) | 1,604 | ||||||||
Fixed Assets | 2,847 | (2,695 | ) | 152 | ||||||||
Intangible Assets | 1,144 | (31,777 | ) | (30,633 | ) | |||||||
Capitalized R&D expenditures | 855 | — | 855 | |||||||||
Deferred compensation | 20,549 | — | 20,549 | |||||||||
Postretirement benefits | 4,152 | — | 4,152 | |||||||||
Tax credit carry-forwards and net operating losses | 56,790 | — | 56,790 | |||||||||
Less valuation allowance | (37,992 | ) | — | (37,992 | ) | |||||||
Other, net | 10,918 | (15,173 | ) | (4,255 | ) | |||||||
Total | $ | 72,371 | $ | (51,390 | ) | $ | 20,981 |
July 31, 2015 | ||||||||||||
Assets | Liabilities | Total | ||||||||||
Inventories | $ | 4,387 | $ | (197 | ) | $ | 4,190 | |||||
Prepaid catalog costs | — | (2,179 | ) | (2,179 | ) | |||||||
Employee benefits | 1,612 | — | 1,612 | |||||||||
Accounts receivable | 1,136 | (14 | ) | 1,122 | ||||||||
Fixed Assets | 3,344 | (3,213 | ) | 131 | ||||||||
Intangible Assets | 1,242 | (26,570 | ) | (25,328 | ) | |||||||
Capitalized R&D expenditures | 1,140 | — | 1,140 | |||||||||
Deferred compensation | 19,549 | — | 19,549 | |||||||||
Postretirement benefits | 3,563 | — | 3,563 | |||||||||
Tax credit carry-forwards and net operating losses | 66,744 | — | 66,744 | |||||||||
Less valuation allowance | (39,922 | ) | — | (39,922 | ) | |||||||
Other, net | 9,538 | (12,475 | ) | (2,937 | ) | |||||||
Total | $ | 72,333 | $ | (44,648 | ) | $ | 27,685 |
• | Foreign net operating loss carry-forwards of $119,874, of which $89,637 have no expiration date and the remainder of which expire within the next eight years. |
• | State net operating loss carry-forwards of $42,095, which expire from 2017 to 2034. |
• | Foreign tax credit carry-forwards of $14,381, which expire from 2021 to 2025. |
• | State research and development credit carry-forwards of $11,526, which expire from 2017 to 2031. |
Years Ended July 31, | |||||||||
2016 | 2015 | 2014 | |||||||
Tax at statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
Impairment charges (1) | — | % | 55.8 | % | (40.3 | )% | |||
State income taxes, net of federal tax benefit (2) | 0.8 | % | 1.6 | % | (1.1 | )% | |||
International rate differential | 0.4 | % | (2.2 | )% | (1.3 | )% | |||
Rate variances arising from foreign subsidiary distributions | 0.5 | % | (0.3 | )% | (7.5 | )% | |||
Adjustments to tax accruals and reserves (3) | (3.7 | )% | 17.8 | % | 25.5 | % | |||
Research and development tax credits and section 199 manufacturer’s deduction | (3.6 | )% | (3.9 | )% | 3.6 | % | |||
Non-deductible divestiture fees and account write-offs | (0.4 | )% | (4.8 | )% | (5.2 | )% | |||
Deferred tax and other adjustments (4) | (1.4 | )% | (21.1 | )% | 0.7 | % | |||
Other, net | (0.9 | )% | 2.5 | % | (0.1 | )% | |||
Effective tax rate | 26.7 | % | 80.4 | % | 9.3 | % |
(1) | For the year ended July 31, 2015, $39.8 million of the total impairment charge of $46.9 million recorded is nondeductible for income tax purposes. For the year ended July 31, 2014, $61.1 million of the total impairment charge of $148.6 million recorded is nondeductible for income tax purposes. |
(2) | The year ended July 31, 2014 includes a $3.1 million increase in valuation allowances against certain state tax credit carryforwards. |
(3) | The years ended July 31, 2014 and 2015 include increases in current year uncertain tax positions, while the year ended July 31, 2016 includes reductions of uncertain tax positions resulting from the closure of audits and lapses in statutes of limitations. |
(4) | The year ended July 31, 2015 includes $5.0 million of foreign tax credit carryforward from the fiscal 2014 U.S. tax return. |
Balance at July 31, 2013 | $ | 37,575 | |
Additions based on tax positions related to the current year | 4,596 | ||
Additions for tax positions of prior years | — | ||
Reductions for tax positions of prior years | (14,569 | ) | |
Lapse of statute of limitations | (3,711 | ) | |
Settlements with tax authorities | (5,832 | ) | |
Cumulative Translation Adjustments and other | (210 | ) | |
Balance as of July 31, 2014 | $ | 17,849 | |
Additions based on tax positions related to the current year | 5,862 | ||
Additions for tax positions of prior years | — | ||
Reductions for tax positions of prior years | (280 | ) | |
Lapse of statute of limitations | (805 | ) | |
Settlements with tax authorities | (221 | ) | |
Cumulative Translation Adjustments and other | (1,272 | ) | |
Balance as of July 31, 2015 | $ | 21,133 | |
Additions based on tax positions related to the current year | 3,093 | ||
Additions for tax positions of prior years | 1,290 | ||
Reductions for tax positions of prior years | (9,369 | ) | |
Lapse of statute of limitations | (344 | ) | |
Settlements with tax authorities | (456 | ) | |
Cumulative Translation Adjustments and other | (53 | ) | |
Balance as of July 31, 2016 | $ | 15,294 |
Jurisdiction | Open Tax Years | |
United States — Federal | F’15 — F’16 | |
France | F’12 — F’16 | |
Germany | F’09 — F’16 | |
United Kingdom | F’14 — F’16 |
2016 | 2015 | |||||||
Euro-denominated notes payable in 2017 at a fixed rate of 3.71% | $ | 33,459 | $ | 32,960 | ||||
Euro-denominated notes payable in 2020 at a fixed rate of 4.24% | 50,188 | 49,442 | ||||||
USD-denominated notes payable through 2016 at a fixed rate of 5.30% | — | 26,143 | ||||||
USD-denominated notes payable through 2017 at a fixed rate of 5.33% | 16,335 | 32,743 | ||||||
USD-denominated borrowing on revolving loan agreement at a weighted average rate of 1.3136% and 1.2740% as of July 31, 2016 and 2015, respectively | 112,000 | 102,000 | ||||||
USD-denominated borrowing on revolving loan agreement at a weighted average rate of 1.9501% as of July 31, 2015. | — | 1,836 | ||||||
CNY-denominated borrowing on revolving loan agreement at a weighted average rate of 4.0042% and 4.6634% as of July 31, 2016 and 2015, respectively (USD equivalent) | 4,928 | 8,575 | ||||||
$ | 216,910 | $ | 253,699 | |||||
Less notes payable | (4,928 | ) | (10,411 | ) | ||||
Total long-term debt | $ | 211,982 | $ | 243,288 |
Years Ending July 31, | |||
2017 | $ | 49,794 | |
2018 | — | ||
2019 | — | ||
2020 | 50,188 | ||
2021 | 112,000 | ||
Total | $ | 211,982 |
July 31, 2016 | July 31, 2015 | |||||||||||||||||||
Shares Authorized | Shares Issued | (thousands) Amount | Shares Authorized | Shares Issued | (thousands) Amount | |||||||||||||||
Preferred Stock, $.01 par value | 5,000,000 | 5,000,000 | ||||||||||||||||||
Cumulative Preferred Stock: 6% Cumulative | 5,000 | 5,000 | ||||||||||||||||||
1972 Series | 10,000 | 10,000 | ||||||||||||||||||
1979 Series | 30,000 | 30,000 | ||||||||||||||||||
Common Stock, $.01 par value: Class A Nonvoting | 100,000,000 | 51,261,487 | $ | 513 | 100,000,000 | 51,261,487 | $ | 513 | ||||||||||||
Class B Voting | 10,000,000 | 3,538,628 | 35 | 10,000,000 | 3,538,628 | 35 | ||||||||||||||
$ | 548 | $ | 548 |
Unearned Restricted Stock | Deferred Compensation | Shares Held in Rabbi Trust, at cost | Total | |||||||||||||
Balances at July 31, 2013 | $ | (1,137 | ) | $ | 11,040 | $ | (10,623 | ) | $ | (720 | ) | |||||
Shares at July 31, 2013 | 469,797 | 469,797 | ||||||||||||||
Sale of shares at cost | — | (1,637 | ) | 1,496 | (141 | ) | ||||||||||
Purchase of shares at cost | — | 821 | (821 | ) | — | |||||||||||
Effect of plan amendment | — | (2,435 | ) | — | (2,435 | ) | ||||||||||
Amortization of restricted stock | 1,137 | — | — | 1,137 | ||||||||||||
Balances at July 31, 2014 | — | $ | 7,789 | $ | (9,948 | ) | (2,159 | ) | ||||||||
Shares at July 31, 2014 | 338,711 | 423,415 | ||||||||||||||
Sale of shares at cost | $ | — | (2,325 | ) | 2,235 | $ | (90 | ) | ||||||||
Purchase of shares at cost | — | 220 | (1,035 | ) | (815 | ) | ||||||||||
Balances at July 31, 2015 | $ | — | $ | 5,684 | $ | (8,748 | ) | $ | (3,064 | ) | ||||||
Shares at July 31, 2015 | 252,261 | 362,025 | ||||||||||||||
Sale of shares at cost | — | (1,238 | ) | 1,278 | 40 | |||||||||||
Purchase of shares at cost | — | 178 | (1,017 | ) | (839 | ) | ||||||||||
Balances at July 31, 2016 | $ | — | $ | 4,624 | $ | (8,487 | ) | $ | (3,863 | ) | ||||||
Shares at July 31, 2016 | 201,418 | 347,081 |
Black-Scholes Option Valuation Assumptions | 2016 | 2015 | 2014 | |||||||||
Expected term (in years) | 6.11 | 6.05 | 5.97 | |||||||||
Expected volatility | 29.95 | % | 34.01 | % | 37.32 | % | ||||||
Expected dividend yield | 2.59 | % | 2.48 | % | 2.35 | % | ||||||
Risk-free interest rate | 1.64 | % | 1.90 | % | 1.80 | % | ||||||
Weighted-average market value of underlying stock at grant date | $ | 20.02 | $ | 22.76 | $ | 30.98 | ||||||
Weighted-average exercise price | $ | 20.02 | $ | 22.76 | $ | 30.98 | ||||||
Weighted-average fair value of options granted during the period | $ | 4.58 | $ | 6.12 | $ | 9.17 |
Option Price | Options Outstanding | Weighted Average Exercise Price | |||||||||||
Balance as of July 31, 2015 | $ | 20.95 | — | $38.31 | 3,500,951 | $ | 29.64 | ||||||
Options granted | 19.96 | — | 25.35 | 881,744 | 20.02 | ||||||||
Options exercised | 20.95 | — | 31.07 | (194,419 | ) | 26.98 | |||||||
Options cancelled | 19.96 | — | 38.31 | (479,570 | ) | 30.89 | |||||||
Balance as of July 31, 2016 | $ | 19.96 | — | $38.31 | 3,708,706 | $ | 27.33 |
Options Outstanding | Options Outstanding and Exercisable | |||||||||||||||||
Range of Exercise Prices | Number of Shares Outstanding at July 31, 2016 | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Shares Exercisable at July 31, 2016 | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | ||||||||||||
$19.96 - $26.99 | 1,433,278 | 8.1 | $ | 21.80 | 291,899 | 5.2 | $ | 20.97 | ||||||||||
$27.00 - $32.99 | 1,696,428 | 4.9 | 29.05 | 1,617,628 | 4.7 | 29.12 | ||||||||||||
$33.00 - $38.31 | 579,000 | 1.3 | 37.78 | 579,000 | 1.3 | 37.78 | ||||||||||||
Total | 3,708,706 | 5.6 | 27.61 | 2,488,527 | 4.0 | $ | 30.18 |
Service-Based Restricted Shares and RSUs | Shares | Weighted Average Grant Date Fair Value | |||||
Balance as of July 31, 2015 | 677,454 | $ | 24.72 | ||||
New grants | 173,394 | 20.07 | |||||
Vested | (113,640 | ) | 24.97 | ||||
Forfeited | (58,827 | ) | 23.81 | ||||
Balance as of July 31, 2016 | 678,381 | $ | 23.57 |
2016 | 2015 | 2014 | ||||||||||
Sales to External Customers: | ||||||||||||
ID Solutions | $ | 776,877 | $ | 806,484 | $ | 825,123 | ||||||
WPS | 343,748 | 365,247 | 399,911 | |||||||||
Total Company | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | ||||||
Depreciation & Amortization: | ||||||||||||
ID Solutions | $ | 21,838 | $ | 25,658 | $ | 28,955 | ||||||
WPS | 4,555 | 6,772 | 7,919 | |||||||||
Corporate | 6,039 | 7,028 | 7,724 | |||||||||
Total Company | $ | 32,432 | $ | 39,458 | $ | 44,598 | ||||||
Segment Profit: | ||||||||||||
ID Solutions | $ | 169,776 | $ | 149,840 | $ | 176,129 | ||||||
WPS | 59,847 | 56,502 | 66,238 | |||||||||
Total Company | $ | 229,623 | $ | 206,342 | $ | 242,367 | ||||||
Assets: | ||||||||||||
ID Solutions | $ | 742,557 | $ | 780,524 | $ | 882,440 | ||||||
WPS | 160,172 | 167,797 | 239,848 | |||||||||
Corporate | 141,235 | 114,576 | 131,377 | |||||||||
Total Company | $ | 1,043,964 | $ | 1,062,897 | $ | 1,253,665 | ||||||
Expenditures for property, plant & equipment: | ||||||||||||
ID Solutions | $ | 11,511 | $ | 18,732 | $ | 28,774 | ||||||
WPS | 5,446 | 3,970 | 10,580 | |||||||||
Corporate | 183 | 3,971 | 4,044 | |||||||||
Total Company | $ | 17,140 | $ | 26,673 | $ | 43,398 |
Years Ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Total profit from reportable segments | $ | 229,623 | $ | 206,342 | $ | 242,367 | |||||
Unallocated costs: | |||||||||||
Administrative costs | 111,745 | 107,348 | 120,015 | ||||||||
Restructuring charges | — | 16,821 | 15,012 | ||||||||
Impairment charges (1) | — | 46,867 | 148,551 | ||||||||
Investment and other expense (income) | 709 | (845 | ) | (2,402 | ) | ||||||
Interest expense | 7,824 | 11,156 | 14,300 | ||||||||
Earnings (loss) from continuing operations before income taxes | $ | 109,345 | $ | 24,995 | $ | (53,109 | ) |
Revenues* Years Ended July 31, | Long-Lived Assets** As of Years Ended July 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||
Geographic information: | ||||||||||||||||||||||||
United States | $ | 663,511 | $ | 677,401 | $ | 675,771 | $ | 376,045 | $ | 389,150 | $ | 425,733 | ||||||||||||
Other | 519,579 | 559,649 | 615,974 | 216,076 | 224,151 | 314,456 | ||||||||||||||||||
Eliminations | (62,465 | ) | (65,319 | ) | (66,711 | ) | — | — | — | |||||||||||||||
Consolidated total | $ | 1,120,625 | $ | 1,171,731 | $ | 1,225,034 | $ | 592,121 | $ | 613,301 | $ | 740,189 | ||||||||||||
* Revenues are attributed based on country of origin. | ||||||||||||||||||||||||
** Long-lived assets consist of property, plant, and equipment, other intangible assets and goodwill. |
Years ended July 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Numerator: (in thousands) | |||||||||||
Earnings (loss) from continuing operations | $ | 80,110 | $ | 4,902 | $ | (48,146 | ) | ||||
Less: | |||||||||||
Restricted stock dividends | — | — | (92 | ) | |||||||
Numerator for basic and diluted earnings (loss) from continuing operations per Class A Nonvoting Common Share | $ | 80,110 | $ | 4,902 | $ | (48,238 | ) | ||||
Less: | |||||||||||
Preferential dividends | (783 | ) | (794 | ) | (813 | ) | |||||
Preferential dividends on dilutive stock options | (1 | ) | (1 | ) | (6 | ) | |||||
Numerator for basic and diluted earnings (loss) from continuing operations per Class B Voting Common Share | $ | 79,326 | $ | 4,107 | $ | (49,057 | ) | ||||
Denominator: (in thousands) | |||||||||||
Denominator for basic earnings from continuing operations per share for both Class A and Class B | 50,541 | 51,285 | 51,866 | ||||||||
Plus: Effect of dilutive stock options | 228 | 98 | — | ||||||||
Denominator for diluted earnings from continuing operations per share for both Class A and Class B | 50,769 | 51,383 | 51,866 | ||||||||
Earnings (loss) from continuing operations per Class A Nonvoting Common Share: | |||||||||||
Basic | $ | 1.59 | $ | 0.10 | $ | (0.93 | ) | ||||
Diluted | $ | 1.58 | $ | 0.10 | $ | (0.93 | ) | ||||
Earnings (loss) from continuing operations per Class B Voting Common Share: | |||||||||||
Basic | $ | 1.57 | $ | 0.08 | $ | (0.95 | ) | ||||
Diluted | $ | 1.56 | $ | 0.08 | $ | (0.95 | ) | ||||
(Loss) earnings from discontinued operations per Class A Nonvoting Common Share: | |||||||||||
Basic | $ | — | $ | (0.04 | ) | $ | 0.04 | ||||
Diluted | $ | — | $ | (0.04 | ) | $ | 0.04 | ||||
(Loss) earnings from discontinued operations per Class B Voting Common Share: | |||||||||||
Basic | $ | — | $ | (0.04 | ) | $ | 0.05 | ||||
Diluted | $ | — | $ | (0.04 | ) | $ | 0.05 | ||||
Net earnings (loss) per Class A Nonvoting Common Share: | |||||||||||
Basic | $ | 1.59 | $ | 0.06 | $ | (0.89 | ) | ||||
Diluted | $ | 1.58 | $ | 0.06 | $ | (0.89 | ) | ||||
Net earnings (loss) per Class B Voting Common Share: | |||||||||||
Basic | $ | 1.57 | $ | 0.04 | $ | (0.90 | ) | ||||
Diluted | $ | 1.56 | $ | 0.04 | $ | (0.90 | ) |
Years ending July 31, | |||
2017 | $ | 16,243 | |
2018 | 14,956 | ||
2019 | 12,169 | ||
2020 | 8,708 | ||
2021 | 7,195 | ||
Thereafter | 15,497 | ||
$ | 74,768 |
Inputs Considered As | |||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Fair Values | Balance Sheet Classifications | ||||||||||
July 31, 2016 | |||||||||||||
Trading securities | $ | 13,834 | $ | — | $ | 13,834 | Other assets | ||||||
Foreign exchange contracts | — | 2,138 | 2,138 | Prepaid expenses and other current assets | |||||||||
Total Assets | $ | 13,834 | $ | 2,138 | $ | 15,972 | |||||||
Foreign exchange contracts | $ | — | $ | 738 | $ | 738 | Other current liabilities | ||||||
Total Liabilities | $ | — | $ | 738 | $ | 738 | |||||||
July 31, 2015 | |||||||||||||
Trading securities | $ | 15,356 | $ | — | $ | 15,356 | Other assets | ||||||
Foreign exchange contracts | — | 685 | 685 | Prepaid expenses and other current assets | |||||||||
Total Assets | $ | 15,356 | $ | 685 | $ | 16,041 | |||||||
Foreign exchange contracts | $ | — | $ | 1,280 | $ | 1,280 | Other current liabilities | ||||||
Total Liabilities | $ | — | $ | 1,280 | $ | 1,280 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||
July 31, 2016 | July 31, 2015 | July 31, 2016 | July 31, 2015 | ||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 265 | Prepaid expenses and other current assets | $ | 518 | Other current liabilities | $ | 670 | Other current liabilities | $ | 737 | |||||||||||
Net investment hedges | |||||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | — | Prepaid expenses and other current assets | $ | — | Other current liabilities | $ | — | Other current liabilities | $ | — | |||||||||||
Foreign currency denominated debt | Prepaid expenses and other current assets | $ | — | Prepaid expenses and other current assets | $ | — | Long term obligations, less current maturities | $ | 116,888 | Long term obligations, less current maturities | $ | 121,514 | |||||||||||
Total derivatives designated as hedging instruments | $ | 265 | $ | 518 | $ | 117,558 | $ | 122,251 | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | 1,873 | Prepaid expenses and other current assets | $ | 168 | Other current liabilities | $ | 68 | Other current liabilities | $ | 543 | |||||||||||
Total derivatives not designated as hedging instruments | $ | 1,873 | $ | 168 | $ | 68 | $ | 543 |
2015 | 2014 | ||||||
Net sales (1) | $ | — | $ | 179,050 | |||
(Loss) earnings from discontinued operations (2) | (1,201 | ) | 6,715 | ||||
Income tax expense | (288 | ) | (3,299 | ) | |||
Loss on sale of discontinued operations (3) | (487 | ) | (1,602 | ) | |||
Income tax benefit on sale of discontinued operations (4) | 61 | 364 | |||||
(Loss) earnings from discontinued operations, net of tax | $ | (1,915 | ) | $ | 2,178 |
(1) | The second and final phase of the Die-Cut divestiture closed on August 1, 2014. Thus, there were no sales from discontinued operations in fiscal 2015. |
(2) | The loss from discontinued operations in fiscal 2015 primarily related to professional fees and restructuring charges associated with the divestiture. |
(3) | The first phase of the Die-Cut divestiture was completed in the fourth quarter of fiscal 2014. A loss on the sale was recorded in the three months ended July 31, 2014 and includes $3.9 million in liabilities retained as part of the divestiture agreement. The second and final closing of the Die-Cut divestiture was completed in the first quarter of fiscal 2015 and an additional loss on the sale was recorded in the three months ended October 31, 2014. |
(4) | The income tax benefit on the sale of discontinued operations in fiscal 2014 was significantly impacted by the release of a reserve for uncertain tax positions of $4.0 million, which was triggered as a result of the Thailand stock sale during the three months ended July 31, 2014. This was offset by $3.6 million in tax expense related to the gain on the sale of the Balkhausen assets. The Thailand stock sale and the Balkhausen asset sale were included in the first phase of the Die-Cut divestiture. |
Quarters | ||||||||||||||||||||
First | Second | Third | Fourth | Total | ||||||||||||||||
2016 | ||||||||||||||||||||
Net sales | $ | 283,073 | $ | 268,630 | $ | 286,816 | $ | 282,106 | $ | 1,120,625 | ||||||||||
Gross margin | 139,349 | 132,892 | 145,443 | 141,089 | 558,773 | |||||||||||||||
Operating income | 30,102 | 23,589 | 30,784 | 33,403 | 117,878 | |||||||||||||||
Earnings from continuing operations | 18,703 | 15,290 | 20,981 | 25,136 | 80,110 | |||||||||||||||
Net earnings from continuing operations per | ||||||||||||||||||||
Class A Common Share: | ||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.30 | $ | 0.42 | $ | 0.50 | $ | 1.59 | ||||||||||
Diluted | $ | 0.37 | $ | 0.30 | $ | 0.42 | $ | 0.49 | $ | 1.58 | ||||||||||
2015 | ||||||||||||||||||||
Net sales | $ | 310,240 | $ | 282,628 | $ | 290,227 | $ | 288,636 | $ | 1,171,731 | ||||||||||
Gross margin | 150,161 | 138,203 | 140,999 | 129,069 | 558,432 | |||||||||||||||
Operating income * | 26,973 | 16,811 | 24,285 | (32,763 | ) | 35,306 | ||||||||||||||
Earnings from continuing operations | 15,499 | 11,584 | 17,213 | (39,394 | ) | 4,902 | ||||||||||||||
Earnings (loss) from discontinued operations, net of income taxes ** | (1,915 | ) | — | — | — | (1,915 | ) | |||||||||||||
Net earnings from continuing operations per | ||||||||||||||||||||
Class A Common Share: | ||||||||||||||||||||
Basic*** | $ | 0.30 | $ | 0.23 | $ | 0.34 | $ | (0.77 | ) | $ | 0.10 | |||||||||
Diluted*** | $ | 0.30 | $ | 0.23 | $ | 0.33 | $ | (0.77 | ) | $ | 0.10 | |||||||||
Net earnings (loss) from discontinued operations per | ||||||||||||||||||||
Class A Common Share: | ||||||||||||||||||||
Basic*** | $ | (0.03 | ) | $ | — | $ | — | $ | — | $ | (0.04 | ) | ||||||||
Diluted*** | $ | (0.04 | ) | $ | — | $ | — | $ | — | $ | (0.04 | ) |
** | In fiscal 2015, the loss from discontinued operations included a net loss on operations of $1,489 primarily related to professional fees associated with the divestiture and a $426 net loss on the sale of Die-Cut, recorded in the first quarter ended October 31, 2014. |
Name | Age | Title | ||
J. Michael Nauman | 54 | President, CEO and Director | ||
Aaron J. Pearce | 45 | Senior V.P., Chief Financial Officer and Chief Accounting Officer | ||
Thomas J. Felmer | 54 | Senior V.P., President - Workplace Safety | ||
Russell R. Shaller | 53 | Senior V.P., President - Identification Solutions | ||
Helena R. Nelligan | 50 | Senior V.P. - Human Resources | ||
Louis T. Bolognini | 60 | Senior V.P., Secretary and General Counsel | ||
Bentley N. Curran | 54 | V.P. - Digital Business and Chief Information Officer | ||
Paul T. Meyer | 47 | Treasurer and Vice President - Tax | ||
Patrick W. Allender | 69 | Director | ||
Gary S. Balkema | 61 | Director | ||
Elizabeth Pungello Bruno | 49 | Director | ||
Nancy L. Gioia | 56 | Director | ||
Conrad G. Goodkind | 72 | Director | ||
Frank W. Harris | 74 | Director | ||
Bradley C. Richardson | 58 | Director | ||
Harold L. Sirkin | 56 | Director |
• | J. Michael Nauman, President, Chief Executive Officer and Director; |
• | Aaron J. Pearce, Senior Vice President, Chief Financial Officer and Chief Accounting Officer; |
• | Louis T. Bolognini, Senior Vice President, General Counsel and Secretary; |
• | Thomas J. Felmer, Senior Vice President and President - Workplace Safety; and |
• | Russell R. Shaller, Senior Vice President and President - Identification Solutions. |
• | On a GAAP basis, our fiscal 2016 net earnings were $80.1 million; |
• | Brady continues to demonstrate adequate cash generation to meet ongoing business needs as we generated $139.0 million of cash flow from operating activities during the year ended July 31, 2016; and |
• | Our sales for the full year were $1.12 billion, down 4.4% from fiscal 2015. Organic sales were down 0.7% and foreign currency translation decreased sales by 3.7%. |
Emphasis on Variable Compensation | Nearly 50% of the named executive officers' possible compensation is tied to Company performance, which is intended to drive shareholder value. | |
Ownership Requirements | Mr. Nauman is required to own shares in the Company at a value equal to five times his base salary. Messrs. Pearce, Felmer and Shaller are required to own shares in the Company at a value equal to three times their base salaries. Mr. Bolognini is required to own shares in the Company at a value equal to two times his base salary. Our NEOs are expected to obtain the required ownership levels within five years and may not sell shares, other than to cover tax withholding requirements associated with the vesting or exercise of the equity award, until such time as they meet the requirements. | |
Clawback Provisions | Following a review and analysis of relevant governance and incentive compensation practices and policies across our compensation peer group and other public companies, the Committee instituted a recoupment policy, effective August 2013, under which incentive compensation payments and/or awards may be recouped by the Company if such payments and/or awards were based on erroneous results. If the Committee determines that an executive officer or other key executive of the Company who participates in any of the Company's incentive plans has engaged in intentional misconduct that results in a material inaccuracy in the Company's financial statements or fraudulent or other willful and deliberate conduct that is detrimental to the Company or there is a material, negative revision of a performance measure for which incentive compensation was paid or awarded, the Committee may take a variety of actions including, among others, seeking repayment of incentive compensation (cash and/or equity) that is greater than what would have been awarded if the payments/awards had been based on accurate results and the forfeiture of incentive compensation. As this policy suggests, the Committee believes that any incentive compensation should be based only on accurate and reliable financial and operational information, and, thus, any inappropriately paid incentive compensation should be returned to the Company for the benefit of shareholders. The Committee expects that the implementation of this policy will serve to enhance the Company's compensation risk mitigation efforts. While the implemented policy affords the Committee discretion regarding the application and enforcement of the policy, the Company and the Committee will conform the policy to any requirements that may be promulgated by the national stock exchanges in the future, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. | |
Performance Thresholds and Caps | We provide cash incentive awards based on achievement of annual performance goals with payouts that range from 0% to 200% of target opportunities. We grant equity compensation that promotes long-term financial and operating performance by delivering incremental value to executive officers to the extent our stock price increases over time. In fiscal 2017, we began granting performance-based restricted stock units to executive officers with the number of shares issued at vesting determined by the achievement of certain performance goals over a three-year period. | |
Securities Trading Policy | Our Insider Trading Policy prohibits executive officers from trading during certain periods at the end of each quarter until after we disclose our financial and operating results. We may impose additional restricted trading periods at any time if we believe trading by executives would not be appropriate because of developments that are, or could be, material and which have not been publicly disclosed. The Insider Trading Policy also prohibits the pledging of Company stock as collateral for loans, holding Company securities in a margin account by officers, directors or employees, and the hedging of Company securities. | |
Annual Risk Reviews | The Company conducts an annual compensation-related risk review and presents findings and suggested risk mitigation actions to both the Audit and Management Development and Compensation Committees. |
No Excessive Change of Control Payments | Mr. Nauman's maximum cash benefit is equal to two times salary and two times target bonus plus a prorated target bonus in the year in which the termination occurs. For all other NEOs, the maximum cash benefit is equal to two times salary and two times the average bonus payment received in the three years immediately prior to the date the change of control occurs. In the event of a change of control, unexercised stock options become fully exercisable or, if canceled, each named executive officer shall be given cash or stock equal to the in-the-money value of the canceled stock options. In the event of a change of control, restricted stock units become unrestricted and fully vested. | |
No Employment Agreements | The Company does not maintain any employment agreements with its executives. Both Mr. Nauman's Offer Letter and Mr. Shaller's Offer Letter provide that each is deemed an at-will employee, but will receive a severance benefit in the event his employment is terminated by the Company without cause or for good reason as described in the respective Offer Letter. | |
No Reloads, Repricing, or Options Issued at a Discount | Stock options issued are not repriced, replaced, or regranted through cancellation or by lowering the option price of a previously granted option. |
• | Allow the Company to compete for, retain and motivate talented executives; |
• | Deliver compensation plans that are both internally equitable when comparing similar roles and levels within the Company and externally competitive when comparing to the external marketplace and the Company’s designated peer group; |
• | Maintain an appropriate balance between base salary and short- and long-term incentive opportunities; |
• | Provide integrated compensation programs aligned to the Company’s annual and long-term financial goals and realized performance; |
• | Recognize and reward individual initiative and achievement with the amount of compensation each executive receives reflective of the executive’s level of proficiency within his or her role/job family and their level of sustained performance; and |
• | Institute a “pay for performance” philosophy where level of rewards are aligned to Company performance. |
Compensation Component | Purpose of Compensation Component | Compensation Component in Relation to Performance | ||
Base salary | A fixed level of income security used to attract and retain employees by compensating them for the primary functions and responsibilities of the position. | The base salary increase an employee receives depends upon the employee's individual performance, the employee's displayed skills and competencies and market competitiveness. | ||
Annual cash incentive award | To attract, retain, motivate and reward employees for achieving or exceeding annual performance goals at Company and platform levels. | Financial performance determines the actual amount of the executive's annual cash incentive award. Award amounts are “self-funded” because they are included in the financial performance results when determining actual financial performance. | ||
Annual equity incentive award: Time-based stock options, time-based RSUs and performance-based RSUs | To attract, retain, motivate and reward top talent for the successful creation of long-term stockholder value. | An assessment of executive leadership, experience and expected future contribution, combined with market competitive grant information, are used to determine the amount of equity granted to each executive. Stock options are inherently performance-based in that the stock price must increase over time to provide compensation value to the executive. Time-based RSUs serve as a strong reward and retention device, while promoting the alignment of executive decisions with Company goals and shareholder interests. Performance-based RSUs serve to align executives with shareholders and reward executives only for results achieved over a 3-year performance period. |
Actuant Corporation | ESCO Technologies Inc. | Myers Industries Inc. |
Acuity Brands, Inc. | Federal Signal Corp. | Nordson Corporation |
A.O. Smith Corporation | Graco Inc. | Plexus Corp. |
Apogee Enterprises, Inc. | HB Fuller Company | Polypore International Inc. |
Barnes Group Inc. | Hexcel Corporation | Powell Industries, Inc. |
Clarcor Inc. | IDEX Corporation | Watts Water Technologies, Inc. |
Curtiss-Wright Corporation | II-VI Incorporated | Zebra Technologies Corporation |
EnPro Industries, Inc. | Modine Manufacturing Company | |
Entegris, Inc. | Mine Safety Appliances Company |
Named Executive Officer | Fiscal 2015 | Fiscal 2016 | Percentage Increase | ||||||||
J. Michael Nauman | $ | 675,000 | $ | 693,750 | 3.7 | % | |||||
Aaron J. Pearce | 288,429 | 315,000 | 6.7 | % | |||||||
Louis T. Bolognini | 329,902 | 333,725 | 1.5 | % | |||||||
Thomas J. Felmer | 386,937 | 386,937 | — | % | |||||||
Russell R. Shaller | 340,000 | 340,000 | — | % |
Performance Metric | Definition | Weighting | NEO | |||
Total Company organic revenue | Total Company organic revenue is measured as total company sales from continuing operations, at actual exchange rates, excluding all acquired and divested sales. Total company organic revenue is also known as “core sales” and “base sales." Total Company organic revenue is reported quarterly and annually in the Company's 10-Q and 10-K SEC filings. | 30% | Messrs. Nauman, Pearce and Bolognini | |||
Pre-tax income | Pre-tax income is defined as total Company revenues from continuing operations at actual exchange rates minus total Company expenses for the cost of doing business before deducting income tax expense. Pre-tax income excludes certain non-routine expenses such as restructuring charges and income or loss from acquisitions or divestitures completed in fiscal 2016. | 50% | Messrs. Nauman, Pearce and Bolognini | |||
Segment organic revenue | Segment organic revenue is measured as segment customer sales from continuing operations, at budgeted exchange rates, excluding all acquired and divested sales. | 30% | Messrs. Felmer and Shaller | |||
Segment income from operations | Segment income from operations is measured as segment sales less the segment's cost of goods sold, selling expenses and expenses of continuing operations, at budgeted exchange rates, for the current year. | 50% | Messrs. Felmer and Shaller | |||
Fiscal year objectives | In fiscal 2016, the Company had seven fiscal year objectives that were established at the beginning of the fiscal year and viewed as critical to the execution of the Company's strategy. The amount funded depends on the number of fiscal year objectives achieved in fiscal 2016 at the total Company level. | 20% | All NEOs |
Performance Measure (weighting) | Threshold | Target | Maximum | Fiscal 2016 Actual Results | |||||||||||||
Organic Revenue (30%)(millions) | $1,130.7 | $1,182.0 | $1,221.7 or more | $1,120.6 | |||||||||||||
Pre-Tax Income (50%)(millions) | $88.3 | $111.0 | $145.0 or more | $109.3 | |||||||||||||
Fiscal Year Objectives (20%) | 0 | % | 100 | % | 125 | % | 118% | ||||||||||
Individual Performance Multiplier | 0 | % | 100 | % | 150 | % | Varies (1) | ||||||||||
Fiscal 2016 Bonus Award | Actual Payout (% of Target) | Actual Payout (% of Salary) | Actual Payout ($) | ||||||||||||||
J.M. Nauman | 0 | % | 100 | % | 200 | % | 76.3 | % | 76.3 | % | $528,984 | ||||||
A.J. Pearce | 0 | % | 60 | % | 120 | % | 76.3 | % | 45.8 | % | $144,113 | ||||||
L.T. Bolognini | 0 | % | 60 | % | 120 | % | 61.0 | % | 36.6 | % | $122,143 |
Performance Measure (weighting) | Threshold | Target | Maximum | Fiscal 2016 Actual Results | |||||||||||||
WPS Segment Organic Revenue (30%)(millions) | $345.8 | $363.0 | $367.6 or more | $342.8 | |||||||||||||
WPS Segment IFO (50%)(millions) | $53.2 | $65.0 | $70.0 or more | $59.6 | |||||||||||||
Fiscal Year Objectives (20%) | 0 | % | 100 | % | 125 | % | 118% | ||||||||||
Individual Performance Multiplier | 0 | % | 100 | % | 150 | % | 100% | ||||||||||
Fiscal 2016 Bonus Award | Actual Payout (% of Target) | Actual Payout (% of Salary) | Actual Payout ($) | ||||||||||||||
T.J. Felmer | 0 | % | 80 | % | 160 | % | 36.0 | % | 28.8 | % | $111,438 |
Performance Measure (weighting) | Threshold | Target | Maximum | Fiscal 2016 Actual Results | |||||||||||||
IDS Segment Organic Revenue (30%)(millions) | $554.7 | $580.0 | $597.0 or more | $548.7 | |||||||||||||
IDS Segment IFO (50%)(millions) | $108.5 | $126.0 | $140.0 or more | $126.8 | |||||||||||||
Fiscal Year Objectives (20%) | 0 | % | 100 | % | 125 | % | 118% | ||||||||||
Individual Performance Multiplier | 0 | % | 100 | % | 150 | % | 125% | ||||||||||
Fiscal 2016 Bonus Award | Actual Payout (% of Target) | Actual Payout (% of Salary) | Actual Payout ($) | ||||||||||||||
R.R. Shaller | 0 | % | 55 | % | 110 | % | 91.9 | % | 50.5 | % | $171,806 |
Named Officers | Number of Time-Based Stock Options | Grant Date Fair Value | Number of Time-Based RSUs | Grant Date Fair Value | ||||||||||
J.M. Nauman | 301,399 | $ | 1,466,668 | 36,741 | $ | 733,350 | ||||||||
A.J. Pearce | 51,375 | 250,001 | 12,526 | 250,019 | ||||||||||
L.T. Bolognini | 33,394 | 162,502 | 8,142 | 162,514 | ||||||||||
T.J. Felmer | 56,513 | 275,004 | 13,778 | 275,009 | ||||||||||
R.R. Shaller | 46,238 | 225,003 | 11,273 | 225,009 |
• | Financial planning and tax preparation; |
• | Car allowance; |
• | Long-term care insurance; and |
• | Personal Liability Insurance |
J.M. Nauman | 5 times base salary | |
A.J. Pearce | 3 times base salary | |
L.T. Bolognini | 2 times base salary | |
T.J. Felmer | 3 times base salary | |
R.R. Shaller | 3 times base salary |
Name and Principal Position | Fiscal Year | Salary ($) | Bonus ($) | Restricted Stock Awards and RSUs ($)(1) | Option Awards ($)(2) | Non-Equity Incentive Plan Compensation ($)(3) | All Other Compensation ($)(4) | Total ($) | ||||||||||||||||||||||
J.M. Nauman, President, CEO, & Director (5) | 2016 | $ | 693,750 | — | $ | 733,350 | $ | 1,466,668 | $ | 528,984 | $ | 89,017 | $ | 3,511,769 | ||||||||||||||||
2015 | 649,039 | — | 2,287,151 | 893,282 | — | 86,716 | 3,916,188 | |||||||||||||||||||||||
A.J. Pearce, Senior VP & CFO (5) | 2016 | $ | 315,000 | $ | — | $ | 250,019 | $ | 250,001 | $ | 144,113 | $ | 49,920 | $ | 1,009,053 | |||||||||||||||
2015 | 290,121 | — | 540,982 | 238,212 | — | 43,418 | 1,112,733 | |||||||||||||||||||||||
L.T. Bolognini, Senior VP, General Counsel and Secretary | 2016 | $ | 333,725 | $ | — | $ | 162,514 | $ | 162,502 | $ | 122,143 | $ | 52,220 | $ | 833,104 | |||||||||||||||
2015 | 329,902 | — | 143,075 | 141,443 | — | 74,950 | 689,370 | |||||||||||||||||||||||
2014 | 327,500 | — | 144,134 | 142,508 | — | 51,649 | 665,791 | |||||||||||||||||||||||
T.J. Felmer, Senior VP, President-Workplace Safety | 2016 | $ | 386,937 | — | $ | 275,009 | $ | 275,004 | $ | 111,438 | $ | 62,934 | $ | 1,111,322 | ||||||||||||||||
2015 | 386,937 | — | 820,304 | 322,580 | — | 57,364 | 1,587,185 | |||||||||||||||||||||||
2014 | 384,397 | — | 477,221 | 325,001 | — | 59,842 | 1,246,461 | |||||||||||||||||||||||
R.R. Shaller, Senior VP & President - Identification Solutions (5)(6) | 2016 | $ | 340,000 | $ | — | $ | 225,009 | $ | 225,003 | $ | 171,806 | $ | 188,467 | $ | 1,150,285 | |||||||||||||||
2015 | 26,154 | 115,000 | 524,590 | — | — | 1,749 | 667,493 |
(1) | Represents the grant date fair value computed in accordance with accounting guidance for equity grants made or modified in the applicable year for restricted stock awards and restricted stock units ("RSUs"). The grant date fair value is calculated based on the number of shares of Class A Common Stock underlying the restricted stock awards and RSUs, times the average of the high and low trade prices of Class A Common Stock on the date of grant. The actual value of a restricted stock award or RSU will depend on the market value of the Class A Common Stock on the date the stock is sold. |
(2) | Represents the grant date fair value computed in accordance with accounting guidance for equity grants made or modified in the applicable year for time-based stock options. The assumptions used to determine the value of the awards, including the use of the Black-Scholes method of valuation by the Company, are discussed in Note 1 of the Notes to Consolidated Financial Statements of the Company contained in Item 8 of this Form 10-K, for the fiscal year ended July 31, 2016. The actual value, if any, which an option holder will realize upon the exercise of an option will depend on the excess of the market value of the Class A Common Stock over the exercise price on the date the option is exercised, which cannot be forecasted with any accuracy. |
(3) | Reflects incentive plan compensation earned during the listed fiscal years, which was paid during the next fiscal year. |
(4) | The amounts in this column include: matching contributions to the Company’s Matched 401(k) Plan, Funded Retirement Plan and Restoration Plan, the costs of group term life insurance for each named executive officer, use of a Company car or car allowance, and associated expenses, the cost of long-term care insurance, the cost of personal liability insurance, the cost of disability insurance and other perquisites. The perquisites may include relocation assistance and annual allowances for financial and tax planning. Refer to the table below. |
(5) | Fiscal 2015 was the first year during the terms of Messrs. Nauman, Pearce, and Shaller in which the criteria as a Named Executive Officer were met. |
(6) | Mr. Shaller received a sign-on bonus of $115,000 in fiscal 2015 in conjunction with his appointment as Senior Vice President and President - Identification Solutions, effective June 22, 2015. |
Name | Fiscal Year | Retirement Plan Contributions ($) | Company Car ($) | Group Term Life Insurance ($) | Long-term Care Insurance ($) | Long-Term Disability Insurance ($) | Relocation ($) | Other ($) | Total ($) | |||||||||||||||||||||||||
J.M. Nauman | 2016 | $ | 54,808 | $ | 18,000 | $ | 1,087 | $ | 4,860 | $ | 4,311 | $ | — | $ | 5,951 | $ | 89,017 | |||||||||||||||||
2015 | 23,885 | 17,308 | 975 | 4,860 | 4,282 | 27,676 | 7,730 | 86,716 | ||||||||||||||||||||||||||
A.J. Pearce | 2016 | $ | 24,606 | $ | 13,468 | $ | 505 | $ | 2,893 | $ | 2,800 | $ | — | $ | 5,648 | $ | 49,920 | |||||||||||||||||
2015 | 24,854 | 15,313 | 424 | — | 2,727 | — | 100 | 43,418 | ||||||||||||||||||||||||||
L.T. Bolognini | 2016 | $ | 26,557 | $ | 11,799 | $ | 528 | $ | 3,946 | $ | 4,097 | $ | — | $ | 5,293 | $ | 52,220 | |||||||||||||||||
2015 | 25,428 | 14,997 | 520 | 3,946 | 4,116 | 25,443 | 500 | 74,950 | ||||||||||||||||||||||||||
2014 | 24,462 | 16,201 | 763 | 4,274 | — | — | 5,949 | 51,649 | ||||||||||||||||||||||||||
T.J. Felmer | 2016 | $ | 30,955 | $ | 18,000 | $ | 610 | $ | 3,737 | $ | 3,221 | $ | — | $ | 6,411 | $ | 62,934 | |||||||||||||||||
2015 | 30,955 | 18,000 | 747 | 3,737 | 3,225 | — | 700 | 57,364 | ||||||||||||||||||||||||||
2014 | 30,505 | 20,159 | 1,102 | 4,048 | 4,028 | — | — | 59,842 | ||||||||||||||||||||||||||
R.R. Shaller | 2016 | $ | 29,600 | $ | 18,000 | $ | 537 | $ | 3,427 | $ | 4,103 | $ | 127,244 | $ | 5,556 | $ | 188,467 | |||||||||||||||||
2015 | — | 1,383 | — | — | 91 | 275 | — | 1,749 |
Grant Date | Compensation Committee Approval Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | All Other Option Awards: Number of Securities Underlying Options | All Other Stock Awards: Number of Shares of Stock or Units | Exercise or Base Price of Stock or Option Awards | Grant Date Fair Value of Stock and Option Awards | ||||||||||||||||||||||||
Name | Threshold ($) | Target ($) | Maximum ($) | (#) | (#) | (2) | ($) | |||||||||||||||||||||||
J.M. Nauman | $ | — | $ | 700,000 | $ | 1,400,000 | ||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 301,399 | $ | 19.96 | $ | 1,466,668 | ||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 36,741 | 19.96 | 733,350 | ||||||||||||||||||||||||||
A.J. Pearce | — | 192,000 | 384,000 | |||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 51,375 | 19.96 | 250,001 | ||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 12,526 | 19.96 | 250,019 | ||||||||||||||||||||||||||
L.T. Bolognini | — | 201,000 | 402,000 | |||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 33,394 | 19.96 | 162,502 | ||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 8,142 | 19.96 | 162,514 | ||||||||||||||||||||||||||
T.J. Felmer | — | 309,550 | 619,100 | |||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 56,513 | 19.96 | 275,004 | ||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 13,778 | 19.96 | 275,009 | ||||||||||||||||||||||||||
R.R. Shaller | — | 187,000 | 374,000 | |||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 46,238 | 19.96 | 225,003 | ||||||||||||||||||||||||||
9/25/2015 | 9/9/2015 | 11,273 | 19.96 | 225,009 |
(1) | At its September 2015 meeting, the Management Development and Compensation Compensation Committee approved the values of the annual cash incentive award under the Company's annual cash incentive plan. The structure of the plan is described in the Compensation Discussion and Analysis above and was set prior to the beginning of the fiscal year. Payout levels can range from 0 to 200 percent of base salary. |
(2) | The exercise price and base price is the average of the high and low sale prices of the Company’s Class A Common Stock as reported by the New York Stock Exchange on the date of the grant. |
Option Awards | Stock Awards | ||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Option Exercise Price ($) | Option Expiration Date | Number of Units of Stock That Have Not Vested (#) | Market Value of Units of Stock That Have Not Vested ($) | |||||||||||||
J.M. Nauman | 43,531 | 87,061 | (1) | $ | 22.66 | 9/25/2024 | |||||||||||||
— | 301,399 | (2) | 19.96 | 9/25/2025 | |||||||||||||||
53,668 | (7) | $ | 1,724,890 | ||||||||||||||||
26,584 | (5) | 854,410 | |||||||||||||||||
36,741 | (6) | 1,180,856 | |||||||||||||||||
A.J. Pearce | 5,000 | — | $ | 38.19 | 11/30/2016 | ||||||||||||||
5,000 | — | 38.31 | 12/4/2017 | ||||||||||||||||
20,000 | — | 36.07 | 7/22/2018 | ||||||||||||||||
5,000 | — | 20.95 | 12/4/2018 | ||||||||||||||||
7,000 | — | 28.73 | 9/25/2019 | ||||||||||||||||
10,000 | — | 29.10 | 9/24/2020 | ||||||||||||||||
9,000 | — | 27.00 | 9/30/2021 | ||||||||||||||||
9,000 | — | 30.21 | 9/21/2022 | ||||||||||||||||
3,016 | 1,507 | (3) | 31.07 | 9/20/2023 | |||||||||||||||
11,609 | 23,216 | (1) | 22.66 | 9/25/2024 | |||||||||||||||
— | 51,375 | (2) | 19.96 | 9/25/2025 | |||||||||||||||
434 | (4) | $ | 13,949 | ||||||||||||||||
7,089 | (5) | 227,840 | |||||||||||||||||
10,953 | (11) | 352,029 | |||||||||||||||||
12,526 | (6) | 402,586 | |||||||||||||||||
L.T. Bolognini | 25,000 | $ | 34.64 | 1/7/2023 | |||||||||||||||
9,899 | 4,949 | (3) | 31.07 | 9/20/2023 | |||||||||||||||
6,893 | 13,785 | (1) | 22.66 | 9/25/2024 | |||||||||||||||
— | 33,394 | (2) | 19.96 | 9/25/2025 | |||||||||||||||
1,546 | (4) | $ | 49,688 | ||||||||||||||||
4,209 | (5) | 135,277 | |||||||||||||||||
8,142 | (6) | 261,684 | |||||||||||||||||
T.J. Felmer | 25,000 | — | $ | 38.19 | 11/30/2016 | ||||||||||||||
25,000 | — | 38.31 | 12/4/2017 | ||||||||||||||||
25,000 | — | 20.95 | 12/4/2018 | ||||||||||||||||
23,334 | 29.78 | 8/3/2019 | |||||||||||||||||
35,000 | — | 28.73 | 9/25/2019 | ||||||||||||||||
11,667 | — | 28.35 | 8/2/2020 | ||||||||||||||||
40,000 | — | 29.10 | 9/24/2020 | ||||||||||||||||
35,000 | — | 27.00 | 9/30/2021 | ||||||||||||||||
45,500 | — | 30.21 | 9/21/2022 | ||||||||||||||||
22,575 | 11,287 | (3) | 31.07 | 9/20/2023 | |||||||||||||||
15,720 | 31,439 | (1) | 22.66 | 9/25/2024 |
— | 56,513 | (2) | 19.96 | 9/25/2025 | |||||||||||||||
3,526 | (4) | $ | 113,326 | ||||||||||||||||
9,600 | (5) | 308,544 | |||||||||||||||||
3,333 | (8) | 107,123 | |||||||||||||||||
10,000 | (9) | 321,400 | |||||||||||||||||
13,778 | (6) | 442,825 | |||||||||||||||||
R.R. Shaller | — | 46,238 | (2) | $ | 19.96 | 9/25/2025 | |||||||||||||
16,793 | (10) | $ | 539,727 | ||||||||||||||||
11,273 | (6) | 362,314 |
(1) | One-half of the options vest on September 25, 2016, and the remaining options vest on September 25, 2017. |
(2) | One-third of the options vest on September 25, 2016, one-third of the options vest on September 25, 2017, and one-third of the options vest on September 25, 2018. |
(3) | The remaining options will vest on September 20, 2016. |
(4) | This award represents time-based restricted stock units awarded on September 20, 2013, as part of the annual fiscal 2014 equity grant. The remaining units vest on September 20, 2016. |
(5) | This award represents time-based restricted stock units awarded on September 25, 2014, as part of the annual fiscal 2015 equity grant. One-half of the units vest on September 25, 2016 and the remaining units vest on September 25, 2017. |
(6) | This award represents time-based restricted stock units awarded on September 25, 2015, as part of the annual fiscal 2016 equity grant. One-third of the units vest on September 25, 2016, one-third of the units vest on September 25, 2017, and one-third of the units vest on September 25, 2018. |
(7) | Mr. Nauman was awarded 53,668 shares of time-based restricted stock units on August 4, 2014, the effective date of his appointment as President, Chief Executive Officer, and Director of the Company. One-third of the units vest on August 4, 2017, one-third of the units vest on August 4, 2018, and one-third of the units vest on August 4, 2019. |
(8) | Effective October 1, 2014, Mr. Felmer was awarded 5,000 shares of time-based restricted stock for retention purposes. One-half of the units vest on October 1, 2016, and the remaining units vest on October 1, 2017. |
(9) | Effective November 28, 2014, Mr. Felmer was awarded 10,000 shares of time-based restricted stock for retention purposes. One-third of the units vest on November 28, 2017, one-third of the units vest on November 28, 2018, and one-third of the units vest on November 28, 2019. |
(10) | Mr. Shaller was awarded 20,992 shares of time-based restricted stock units on June 22, 2015, the effective date of his appointment as Senior Vice President and President - Identification Solutions. One-fourth of the units vest on the second, third, fourth, and fifth anniversaries of the grant date, respectively. |
(11) | Mr. Pearce was awarded 12,171 shares of time-based restricted stock units on July 15, 2015, for retention purposes. Twenty percent of the units vest on July 15, 2017, thirty percent of the units vest on July 15, 2018, and fourty percent of the units vest on July 15, 2019. |
Option Awards | Stock Awards | |||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | ||||||||||
J.M. Nauman | — | $ | — | 13,292 | $ | 265,441 | ||||||||
A.J. Pearce | — | — | 5,197 | 118,863 | ||||||||||
L.T. Bolognini | — | — | 3,651 | 73,714 | ||||||||||
T.J. Felmer | — | — | 14,994 | 315,047 | ||||||||||
R.R. Shaller | — | — | 4,199 | 130,305 |
Name | Executive Contributions in Last Fiscal Year ($) | Registrant Contributions in Last Fiscal Year ($) | Aggregate Earnings in Last Fiscal Year ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last Fiscal Year End ($) | |||||||||||||||
J.M. Nauman | $ | 17,131 | $ | 33,608 | $ | 118 | $ | — | $ | 58,733 | ||||||||||
A.J. Pearce | 32,985 | 3,046 | 46,577 | — | 530,421 | |||||||||||||||
L.T. Bolognini | 2,627 | 5,255 | 1,591 | 22,933 | ||||||||||||||||
T.J. Felmer | 4,878 | 9,755 | 208,611 | — | 3,049,448 | |||||||||||||||
R.R. Shaller | 1,846 | 1,600 | 5 | — | 3,452 |
• | The amounts shown in the tables assume that each named executive officer terminated employment on July 31, 2016. Accordingly, the tables reflect amounts earned as of July 31, 2016, and include estimates of amounts that would be paid to the named executive officer upon the termination or occurrence of a change in control. The actual amounts that would be paid to a named executive officer can only be determined at the time of termination. |
• | The tables below include amounts the Company is obligated to pay the named executive officer as a result of the severance agreement and executed change in control agreement. The tables do not include benefits that are paid generally to all salaried employees or a broad group of salaried employees. Therefore, the named executive officers would receive benefits in addition to those set forth in the tables. |
• | A named executive officer is entitled to receive base salary earned during his term of employment regardless of the manner in which the named executive officer’s employment is terminated. As such, this amount is not shown in the tables. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $(3) | Stock Option Acceleration Gain $ (4) | Legal Fee Reimbursement ($) (5) | Total ($) | |||||||||||||||||
$ | 1,400,000 | $ | 1,400,000 | $ | 3,760,155 | $ | 4,496,378 | $ | 25,000 | $ | 11,081,533 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the target bonus amount in effect at July 31, 2016. |
(3) | Represents the closing market price of $32.14 on 116,993 unvested RSUs that would vest due to the change in control. |
(4) | Represents the difference between the closing market price of $32.14 and the exercise price on 388,460 unvested, in-the-money stock options hat would vest due to change in control. |
(5) | Represents the maximum reimbursement of legal fees allowed. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $(3) | Total ($) | |||||||||||
$ | 1,400,000 | $ | 1,400,000 | $ | 1,724,890 | $ | 4,524,890 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the target bonus amount in effect at July 31, 2016. |
(3) | Represents the closing market price of $32.14 on 53,668 unvested RSUs that would vest due to termination without cause. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $(3) | Stock Option Acceleration Gain $ (4) | Legal Fee Reimbursement ($) (5) | Total ($) | ||||||||||||||||||
$ | 640,000 | — | $ | — | $ | 996,404 | $ | 847,448 | $ | 25,000 | $ | 2,508,852 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the average bonus payment received in the last three fiscal year's ended July 31, 2016, 2015 and 2014. |
(3) | Represents the closing market price of $32.14 on 31,002 unvested RSUs that would vest due to the change in control. |
(4) | Represents the difference between the closing market price of $32.14 and the exercise price on 76,098 unvested, in-the-money stock options that would vest due to change in control. |
(5) | Represents the maximum reimbursement of legal fees allowed. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $(3) | Stock Option Acceleration Gain $ (4) | Legal Fee Reimbursement ($) (5) | Total ($) | ||||||||||||||||||
$ | 670,000 | — | $ | — | $ | 446,650 | $ | 542,716 | $ | 25,000 | $ | 1,684,366 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the average bonus payment received in the last three fiscal year's ended July 31, 2016, 2015 and 2014. |
(3) | Represents the closing market price of $32.14 on 13,897 unvested RSUs that would vest due to the change in control. |
(4) | Represents the difference between the closing market price of $32.14 and the exercise price on 52,128 unvested, in-the-money stock options that would vest due to change in control. |
(5) | Represents the maximum reimbursement of legal fees allowed. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $ (3) | Stock Option Acceleration Gain $ (4) | Excise Tax Reimbursement ($) | Legal Fee Reimbursement ($) (5) | Total ($) | ||||||||||||||||||||
$ | 773,874 | $ | — | $ | 1,293,217 | $ | 998,447 | $ | — | $ | 25,000 | $ | 3,090,538 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the average bonus payment received in the last three fiscal year's ended July 31, 2016, 2015 and 2014. |
(3) | Represents the closing market price of $32.14 on 40,237 unvested RSUs that would vest due to the change in control. |
(4) | Represents the difference between the closing market price of $32.14 and the exercise price on 99,239 unvested, in-the-money stock options that would vest due to change in control. |
(5) | Represents the maximum reimbursement of legal fees allowed. |
Base Salary ($)(1) | Bonus ($) (2) | Restricted Stock Unit Acceleration Gain $(3) | Stock Option Acceleration Gain $ (4) | Legal Fee Reimbursement ($) (5) | Total ($) | ||||||||||||||||||
$ | 680,000 | — | $ | — | $ | 902,041 | $ | 438,336 | $ | 25,000 | $ | 2,045,377 |
(1) | Represents two times the base salary in effect at July 31, 2016. |
(2) | Represents two times the average bonus payment received in the last three fiscal year's ended July 31, 2016, 2015 and 2014. |
(3) | Represents the closing market price of $32.14 on 28,066 unvested RSUs that would vest due to the change in control. |
(4) | Represents the difference between the closing market price of $32.14 and the exercise price on 46,238 unvested, in-the-money stock options that would vest due to change in control. |
(5) | Represents the maximum reimbursement of legal fees allowed. |
Base Salary ($)(1) | Bonus ($) (2) | Total ($) | ||||||||
$ | 340,000 | $ | 187,000 | $ | 527,000 |
(1) | Represents one times the base salary in effect at July 31, 2016. |
(2) | Represents one times the target bonus amount in effect at July 31, 2016. |
Name | Unvested Restricted Stock Units as of July 31, 2016 | Restricted Stock Unit Acceleration Gain $ (1) | Unvested, In-the-Money Stock Options as of July 31, 2016 | Stock Option Acceleration Gain $ (2) | ||||||||||
J. Michael Nauman | 116,993 | $ | 3,760,155 | 388,460 | $ | 4,496,378 | ||||||||
A.J. Pearce | 31,002 | 996,404 | 76,098 | 847,448 | ||||||||||
L.T. Bolognini | 13,897 | 446,650 | 52,128 | 542,716 | ||||||||||
T.J. Felmer | 40,237 | 1,293,217 | 99,239 | 998,447 | ||||||||||
R.R. Shaller | 28,066 | 902,041 | 46,238 | 438,336 |
(1) | Represents the closing market price of $32.14 on unvested awards that would vest due to death or disability. |
(2) | Represents the difference between the closing market price of $32.14 and the exercise price on unvested, in-the-money stock options that would vest due to death or disability. |
Name | Unvested Restricted Stock Units as of July 31, 2016 | Restricted Stock Unit Acceleration Gain $ (1) | |||||
J. Michael Nauman | 53,668 | $ | 1,724,890 | ||||
A.J. Pearce | — | — | |||||
L.T. Bolognini | — | — | |||||
T.J. Felmer | 3,333 | 107,123 | |||||
R.R. Shaller | — | — |
(1) | Represents the closing market price of $32.14 on unvested awards that would vest due to termination without cause. |
Name | Fees Earned or Paid in Cash ($) | Option Awards ($) (1) | Stock Awards ($) (2) | Total ($) | ||||||||||||
Patrick W. Allender | $ | 108,500 | $ | — | $ | 83,014 | $ | 191,514 | ||||||||
Gary S. Balkema | 112,000 | — | 83,014 | 195,014 | ||||||||||||
Elizabeth P. Bruno | 95,125 | — | 83,014 | 178,139 | ||||||||||||
Nancy L. Gioia | 95,625 | — | 83,014 | 178,639 | ||||||||||||
Conrad G. Goodkind | 153,250 | — | 83,014 | 236,264 | ||||||||||||
Frank W. Harris | 92,125 | — | 83,014 | 175,139 | ||||||||||||
Bradley C. Richardson | 111,875 | — | 83,014 | 194,889 | ||||||||||||
Harold L. Sirkin | 85,875 | — | 83,014 | 168,889 |
(1) | No stock options were awarded to non-management Directors in fiscal 2016. Outstanding option awards at July 31, 2016, for each individual who served as Director in fiscal 2016 include the following: Mr. Allender, 55,800; Mr. Balkema, 35,400; Ms. Bruno, 51,800; Ms. Gioia, 8,500; Mr. Goodkind, 55,800; Mr. Harris, 51,800; Mr. Richardson, 49,800; and Mr. Sirkin, 4,250 shares. The actual value, if any, which an option holder will realize upon the exercise of an option will depend on the excess of the market value of the Company's common stock over the exercise price on the date the option is exercised, which cannot be forecasted with any accuracy. |
(2) | With the exception of Mr. Sirkin, represents the fair value of shares of Brady Corporation Class A Non-Voting Common Stock granted in fiscal 2016 as compensation for their services. For Mr. Sirkin, represents the fair value of shares of time-based restricted stock units of Class A Common Stock granted in fiscal 2016 as compensation for his services. The shares of unrestricted stock and restricted stock units granted to the non-management directors were valued at the average of the high and low market price of $19.96 on September 25, 2015. Outstanding unvested restricted stock units at July 31, 2016, totaled 5,609 units, all of which were held by Mr. Sirkin. |
Title of Class | Name and Address of Beneficial Owner | Amount of Beneficial Ownership | Percent of Ownership(2) | ||||||
Class B Common Stock | EBL GST Non-Exempt Stock B Trust(1) c/o Elizabeth Pungello Bruno 2002 S. Hawick Ct. Chapel Hill, NC 27516 | 1,769,304 | 50 | % | |||||
William H. Brady III Living Trust dated November 1, 2013 (3) | 1,769,304 | 50 | % | ||||||
c/o William H. Brady III 249 Rosemont Ave. Pasadena, CA 91103 |
(1) | The trustee is Elizabeth Pungello Bruno, who has sole voting and dispositive power and who is the remainder beneficiary. Elizabeth Bruno is the great-granddaughter of William H. Brady and currently serves on the Company’s Board of Directors. |
(2) | An additional 20 shares are owned by a third trust with different trustees. |
(3) | William H. Brady III is grantor of this revocable trust and shares voting and dispositive powers with respect to these shares with his co-trustee. William H. Brady III is the grandson of William H. Brady. |
Title of Class | Name of Beneficial Owner & Nature of Beneficial Ownership | Amount of Beneficial Ownership(3)(4)(5) | Percent of Ownership | |||||
Class A Common Stock | Elizabeth Pungello Bruno (1) | 1,295,922 | 2.8 | % | ||||
Thomas J. Felmer | 412,980 | 0.9 | % | |||||
J. Michael Nauman | 220,085 | 0.5 | % | |||||
Conrad G. Goodkind | 162,390 | 0.3 | % | |||||
Aaron J. Pearce | 134,033 | 0.3 | % | |||||
Patrick W. Allender (2) | 118,867 | 0.3 | % | |||||
Bradley C. Richardson | 85,705 | 0.2 | % | |||||
Frank W. Harris | 80,688 | 0.2 | % | |||||
Louis T. Bolognini | 75,231 | 0.2 | % | |||||
Gary S. Balkema | 45,038 | 0.1 | % | |||||
Russell R. Shaller | 24,214 | 0.1 | % | |||||
Nancy L. Gioia | 12,978 | * | ||||||
Harold L. Sirkin | 4,417 | * | ||||||
All Officers and Directors as a Group (16 persons) | 2,883,586 | 6.1 | % | |||||
Class B Common Stock | Elizabeth Pungello Bruno (1) | 1,769,304 | 50.0 | % |
* | Indicates less than one-tenth of one percent. |
(1) | Ms. Bruno’s holdings of Class A Common Stock include 806,296 shares owned by a trust for which she is a trustee and has sole dispositive and voting authority and 70,530 shares owned by trusts in which she is a co-trustee. Ms. Bruno’s holdings of Class B Common Stock include 1,769,304 shares owned by a trust over which she has sole dispositive and voting authority. |
(2) | Mr. Allender's holdings of Class A Common Stock include 20,000 shares owned by the Patrick and Deborah Allender Irrevocable Trust. |
(3) | The amount shown for all officers and directors individually and as a group (16 persons) includes options to acquire a total of 1,216,505 shares of Class A Common Stock, which are currently exercisable or will be exercisable within 60 days of July 31, 2016, including the following: Ms. Bruno, 50,384 shares; Mr. Felmer, 349,641; Mr. Nauman, 187,529 shares; Mr. Goodkind, 54,384 shares; Mr. Pearce, 114,865 shares; Mr. Allender, 54,384 shares; Mr. Richardson, 48,384 shares; Mr. Harris, 50,384 shares; Mr. Bolognini, 64,766 shares; Mr. Balkema, 33,984 shares; Mr. Shaller, 15,413 shares; Ms. Gioia, 5,668 shares; Mr. Sirkin, 1,417 shares; Mr. Curran, 146,799 shares; Mr. Meyer, 2,581 shares; and Ms. Nelligan, 35,922 shares. It does not include other options for Class A Common Stock which have been granted at later dates and are not exercisable within 60 days of July 31, 2016. |
(4) | The amount shown for all officers and directors individually and as a group (16 persons) includes unvested restricted stock units to acquire 68,065 shares of Class A Common Stock, which will vest within 60 days of July 31, 2016, including the following: Mr. Felmer, 12,919 units; Mr. Nauman, 25,539 units; Mr. Pearce, 8,155 units; Mr. Bolognini, 6,365 units; Mr. Shaller, 3,758 units; Mr. Curran, 3,702 units; Mr. Meyer, 689 units; and Ms. Nelligan, 6,937 units. No unvested restricted stock units were held by directors which will vest within 60 days of July 31, 2016. It does not include other unvested restricted stock awards or restricted stock units to acquire Class A Common Stock which have been granted at later dates and will not vest within 60 days of July 31, 2016. |
(5) | The amount shown for all officers and directors individually and as a group (16 persons) includes Class A Common Stock owned in deferred compensation plans totaling 160,858 shares of Class A Common Stock, including the |
As of July 31, 2016 | ||||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||
Equity compensation plans approved by security holders | 4,387,087 | $ | 27.33 | 2,391,385 | ||||||
Equity compensation plans not approved by security holders | None | None | None | |||||||
Total | 4,387,087 | $ | 27.33 | 2,391,385 |
2016 | 2015 | |||||||
(Dollars in thousands) | ||||||||
Audit, audit-related and tax compliance | ||||||||
Audit fees (1) | $ | 1,966 | $ | 2,426 | ||||
Tax fees — compliance | 507 | — | ||||||
Subtotal audit, audit-related and tax compliance fees | 2,473 | 2,426 | ||||||
Non-audit related | ||||||||
Tax fees — planning and advice | 254 | 359 | ||||||
Subtotal non-audit related fees | 254 | 359 | ||||||
Total fees | $ | 2,727 | $ | 2,785 |
(1) | Audit fees consist of professional services rendered for the audit of the Company’s annual financial statements, attestation of management’s assessment of internal control, reviews of the quarterly financial statements and statutory reporting compliance. |
2016 | 2015 | |||
Ratio of Tax Planning and Advice Fees to Audit Fees, Audit-Related Fees and Tax Compliance Fees | 0.1 to 1 | 0.1 to 1 |
Exhibit Number | Description | |
2.1 | Agreement and Plan of Merger, dated as of December 28, 2012, by and among Brady Corporation, BC I Merger Sub Corporation, Precision Dynamics Corporation, and Precision Dynamics Holding LLC (29) | |
2.2 | Share and Asset Purchase Agreement, dated as of February 24, 2014, by and among Brady Corporation and LTI Flexible Products, Inc. (d/b/a Boyd Corporation) (6) | |
3.1 | Restated Articles of Incorporation of Brady Corporation (1) | |
3.2 | By-laws of Brady Corporation, as amended (23) | |
*10.1 | Form of Change of Control Agreement, amended as of December 23, 2008, entered into with Thomas J. Felmer (12) | |
*10.2 | Brady Corporation BradyGold Plan, as amended (2) | |
*10.3 | Executive Additional Compensation Plan, as amended (2) | |
*10.4 | Executive Deferred Compensation Plan, as amended (16) | |
*10.5 | Directors’ Deferred Compensation Plan, as amended (25) | |
*10.6 | Forms of Non-Qualified Employee Stock Option Agreement, Director Stock Option Agreement, and Employee Performance Stock Option Agreement under 2006 Omnibus Incentive Stock Plan (10) | |
*10.7 | Brady Corporation 2004 Omnibus Incentive Stock Plan, as amended (10) | |
*10.8 | Form of Brady Corporation 2004 Nonqualified Stock Option Agreement under the 2004 Omnibus Incentive Stock Plan, as amended (13) | |
10.9 | Brady Corporation Automatic Dividend Reinvestment Plan (4) | |
*10.10 | Brady Corporation 2005 Nonqualified Plan for Non-employee Directors, as amended (3) | |
*10.11 | Forms of Nonqualified Stock Option Agreements under 2005 Non-qualified Plan for Non-employee Directors, as amended (8) | |
*10.12 | Brady Corporation 1997 Omnibus Incentive Stock Plan, as amended (10) | |
*10.13 | Restricted Stock Unit Agreement, dated as of October 1, 2014, with Thomas J. Felmer (11) | |
*10.14 | Amended and Restated Restricted Stock Unit Agreement, dated as of February 17, 2016, with Harold L. Sirkin (14) | |
*10.15 | Brady Corporation 2006 Omnibus Incentive Stock Plan, as amended (10) | |
*10.16 | Restricted Stock Unit Agreement, dated as of November 28, 2014, with Thomas J. Felmer (20) | |
*10.17 | Change of Control Agreement, dated as of August 28, 2015, with Russell R. Shaller (21) | |
*10.18 | Change of Control Agreement, dated as of September 11, 2015, with Aaron J. Pearce (21) | |
*10.19 | Form of Performance-based Restricted Stock Agreement under Brady Corporation 2006 Omnibus Incentive Stock Plan (7) | |
*10.20 | Amended and Restated Restricted Stock Unit Agreement, dated as of February 17, 2016, with Harold L. Sirkin (14) | |
*10.21 | Restated Brady Corporation Restoration Plan (5) | |
*10.22 | Change of Control Agreement, dated as of February 28, 2013, entered into with Louis T. Bolognini (30) | |
*10.23 | Brady Corporation 2003 Omnibus Incentive Stock Plan, as amended (10) | |
*10.24 | Employment Offer Letter, dated as of June 2, 2015, with Russell Shaller (38) |
*10.25 | Restricted Stock Unit Agreement, dated as of July 15, 2015, with Aaron J. Pearce (39) | |
10.26 | Brady Note Purchase Agreement dated May 13, 2010 (19) | |
*10.27 | Form of Amendment, dated February 17, 2010, to granting agreement for performance-based stock options issued on August 1, 2005 to Thomas J. Felmer (18) | |
*10.28 | Brady Corporation 2010 Omnibus Incentive Stock Plan, as amended (22) | |
*10.29 | Brady Corporation 2010 Nonqualified Stock Option Plan for Non-employee Directors (17) | |
*10.30 | Form of Non-Qualified Employee Stock Option Agreement and Employee Performance Stock Option Agreement under 2010 Omnibus Incentive Stock Plan (17) | |
*10.31 | Form of Director Stock Option Agreement under 2010 Nonqualified Stock Option Plan for Non-employee Directors (17) | |
*10.32 | Brady Corporation Incentive Compensation Plan for Senior Executives (15) | |
*10.33 | Restricted Stock Agreement, dated as of October 7, 2013, with Thomas J. Felmer (36) | |
*10.34 | Change of Control Agreement, dated as of March 3, 2014, with Bentley N. Curran (37) | |
*10.35 | Restricted Stock Unit Agreement, dated as of August 4, 2014, with Thomas J. Felmer (9) | |
*10.36 | Change of Control Agreement, dated as of March 3, 2014, with Helena R. Nelligan (37) | |
*10.37 | Form of Fiscal 2012 Performance Stock Option under the 2010 Omnibus Incentive Stock Plan (26) | |
*10.38 | Brady Corporation 2012 Omnibus Incentive Stock Plan (26) | |
*10.39 | Form of Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (26) | |
*10.40 | Form of Non-Qualified Employee Performance Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (26) | |
*10.41 | Form of Director Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (26) | |
*10.42 | Form of Fiscal 2013 Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (31) | |
*10.43 | Form of Fiscal 2013 Director Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (31) | |
10.44 | Credit Agreement, dated as of September 25, 2015, by and among Brady Corporation and certain of its subsidiaries, the lenders listed therein and Bank of America, N.A., as L/C issuer and administrative agent (24) | |
*10.45 | Employment Offer Letter, dated as of August 1, 2014, with J. Michael Nauman (35) | |
*10.46 | Restricted Stock Unit Agreement, dated as of August 4, 2014, with J. Michael Nauman (35) | |
*10.47 | Change of Control Agreement, dated as of August 4, 2014, with J. Michael Nauman (35) | |
*10.48 | Form of Fiscal 2014 Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (32) | |
*10.49 | Form of Fiscal 2014 Director Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (32) | |
*10.50 | Form of Fiscal 2014 Restricted Stock Unit Agreement under 2012 Omnibus Incentive Stock Plan (32) | |
*10.51 | Form of Fiscal 2016 Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (21) | |
*10.52 | Form of Fiscal 2016 Restricted Stock Unit Agreement under 2012 Omnibus Incentive Stock Plan (21) | |
*10.53 | Form of Fiscal 2015 Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (9) |
*10.54 | Form of Fiscal 2015 Director Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (9) | |
*10.55 | Form of Fiscal 2015 Restricted Stock Unit Agreement under 2012 Omnibus Incentive Stock Plan (9) | |
*10.56 | Restricted Stock Unit Agreement, dated as of June 22, 2015, with Russell R. Shaller | |
*10.57 | Form of Fiscal 2015 Employee Retention Restricted Stock Unit Agreement under 2012 Omnibus Incentive Plan | |
*10.58 | Brady Corporation 2017 Omnibus Incentive Plan (27) | |
*10.59 | Form of Nonqualified Stock Option Agreement under the Brady Corporation 2017 Omnibus Incentive Plan (33) | |
*10.60 | Form of Fiscal 2016 Non-Qualified Employee Stock Option Agreement under 2012 Omnibus Incentive Stock Plan (33) | |
*10.61 | Form of Performance-Based Restricted Stock Unit Agreement under the Brady Corporation 2017 Omnibus Incentive Plan (33) | |
21 | Subsidiaries of Brady Corporation | |
23 | Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of J. Michael Nauman | |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Aaron J. Pearce | |
32.1 | Section 1350 Certification of J. Michael Nauman | |
32.2 | Section 1350 Certification of Aaron J. Pearce | |
101 | Interactive Data File |
* | Management contract or compensatory plan or arrangement |
(1) | Incorporated by reference to Registrant’s Registration Statement No. 333-04155 on Form S-3 |
(2) | Incorporated by reference to Registrant’s Annual Report on Form 10-K filed for the fiscal year ended July 31, 1989 |
(3) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed November 25, 2008 |
(4) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 1992 |
(5) | Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2008 |
(6) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed February 25, 2014 |
(7) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed January 9, 2008 |
(8) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed December 4, 2006 |
(9) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2014 |
(10) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2008 |
(11) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed October 2, 2014 |
(12) | Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2009 |
(13) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2005 |
(14) | Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2016 |
(15) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed September 2, 2011 |
(16) | Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2011 |
(17) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2009 |
(18) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed February 23, 2010 |
(19) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed May 14, 2010 |
(20) | Incorporated by reference to Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2014 |
(21) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015 |
(22) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed September 27, 2010 |
(23) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed July 18, 2014 |
(24) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed September 25, 2015 |
(25) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed September 15, 2011 |
(26) | Incorporated by reference to Registrant’s Annual Report on Form 10-K for the fiscal year ended July 31, 2011 |
(27) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed May 27, 2016 |
(28) | Incorporated by reference to Registrant’s Current Report on Form 8-K filed February 7, 2012 |
(29) | Incorporated by reference to Registrant's Current Report on Form 8-K filed December 31, 2012 |
(30) | Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2013 |
(31) | Incorporated by reference to Registrant's Annual Report on Form 10-K for the fiscal year ended July 31, 2012 |
(32) | Incorporated by reference to Registrants Annual Report of Form 10-K for the fiscal year ended July 31, 2013 |
(33) | Incorporated by reference to Registrant's Current Report on Form 8-K filed July 12, 2016 |
(34) | Incorporated by reference to Registrant's Current Report on Form 8-K filed July 16, 2015 |
(35) | Incorporated by reference to Registrant's Current Report on Form 8-K filed August 4, 2014 |
(36) | Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2013 |
(37) | Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2014 |
(38) | Incorporated by reference to Registrant's Current Report on Form 8-K filed June 5, 2015 |
Year ended July 31, | ||||||||||||
Description | 2016 | 2015 | 2014 | |||||||||
(Dollars in thousands) | ||||||||||||
Valuation accounts deducted in balance sheet from assets to which they apply — Accounts receivable — allowance for doubtful accounts: | ||||||||||||
Balances at beginning of period | $ | 3,585 | $ | 3,069 | $ | 5,093 | ||||||
Additions — Charged to expense | 1,904 | 1,954 | 779 | |||||||||
Reclassified to continuing operations | — | — | 31 | |||||||||
Deductions — Bad debts written off, net of recoveries | (345 | ) | (1,438 | ) | (2,834 | ) | ||||||
Balances at end of period | $ | 5,144 | $ | 3,585 | $ | 3,069 | ||||||
Inventory — Reserve for slow-moving inventory: | ||||||||||||
Balances at beginning of period | $ | 13,269 | $ | 12,259 | $ | 11,317 | ||||||
Additions — Charged to expense | 4,950 | 3,017 | 3,100 | |||||||||
Reclassified to continuing operations | — | — | 461 | |||||||||
Deductions — Inventory write-offs | (3,136 | ) | (2,007 | ) | (2,619 | ) | ||||||
Balances at end of period | $ | 15,083 | $ | 13,269 | $ | 12,259 | ||||||
Valuation allowances against deferred tax assets: | ||||||||||||
Balances at beginning of period | $ | 39,922 | $ | 37,409 | $ | 37,142 | ||||||
Additions during year | 2,614 | 8,111 | 10,182 | |||||||||
Deductions — Valuation allowances reversed/utilized | (4,544 | ) | (5,598 | ) | (9,915 | ) | ||||||
Balances at end of period | $ | 37,992 | $ | 39,922 | $ | 37,409 |
BRADY CORPORATION | ||
By: | /s/ AARON J. PEARCE | |
Aaron J. Pearce | ||
Senior Vice President, Chief Financial Officer, and Chief Accounting Officer | ||
(Principal Financial Officer and Principal Accounting Officer) |
Signature | Title | |
/s/ J. MICHAEL NAUMAN | President and Chief Executive Officer; Director | |
J. Michael Nauman | (Principal Executive Officer) | |
/s/ PATRICK W. ALLENDER | ||
Patrick W. Allender | Director | |
/s/ GARY S. BALKEMA | ||
Gary S. Balkema | Director | |
/s/ NANCY L. GIOIA | ||
Nancy L. Gioia | Director | |
/s/ CONRAD G. GOODKIND | ||
Conrad G. Goodkind | Director | |
/s/ FRANK W. HARRIS | ||
Frank W. Harris | Director | |
/s/ ELIZABETH PUNGELLO BRUNO | ||
Elizabeth Pungello Bruno | Director | |
/s/ BRADLEY C. RICHARDSON | ||
Bradley C. Richardson | Director | |
/s/ HAROLD L. SIRKIN | ||
Harold L. Sirkin | Director |
* | Each of the above signatures is affixed as of September 15, 2016. |
State (Country) | Percentage of Voting | |||
Name of Company | Of Incorporation | Securities Owned | ||
Brady Corporation | Wisconsin | Parent | ||
Tricor Direct, Inc. | Delaware | 100% | ||
Doing Business As: | ||||
Seton | ||||
Seton Name Plate Company | ||||
D&G Sign and Label | ||||
Seton Identification Products | ||||
Emedco | ||||
Champion America | ||||
DAWG, Inc. | ||||
Worldmark of Wisconsin Inc. | Delaware | 100% | ||
AIO Acquisition Inc. | Delaware | 100% | ||
Doing Business As: | ||||
All-In-One Products | ||||
Personnel Concepts | ||||
Personnel Concepts Limited | ||||
Personnel Concepts Ltd. | ||||
PC Limited | ||||
USA Printing & Mailing | ||||
Dual Core LLC | Wisconsin | 100% | ||
Doing Business As: | ||||
Identicard Systems Worldwide | ||||
Brady People ID | ||||
JAM Plastics | ||||
PromoVision Palomino | ||||
Temtec | ||||
BIG Badges | ||||
Brady Holdings Mexico LLC | Delaware | 100% | ||
Clement Communications, Inc. | Pennsylvania | 100% | ||
Brady International Co. | Wisconsin | 100% | ||
Brady Worldwide, Inc. | Wisconsin | 100% | ||
Doing Business As: | ||||
Brandon International | ||||
Sorbent Products Company | ||||
TISCOR | ||||
Electromark | ||||
Precision Dynamics Corporation | California | 100% | ||
Doing Business As: | ||||
Pharmex | ||||
TimeMed Labeling Systems | ||||
PDMX LLC | California | 100% | ||
Idem Indemnity, Inc. | Vermont | 100% | ||
Brady Australia Holdings Pty. Ltd. | Australia | 100% | ||
Brady Australia Pty. Ltd. | Australia | 100% | ||
Doing Business As: | ||||
Scafftag Australia | ||||
Seton Australia | ||||
Trafalgar First Aid | ||||
Visisign | ||||
Accidental Health & Safety Pty. Ltd. | Australia | 100% |
Carroll Australasia Pty. Ltd. | Australia | 100% | ||
ID Warehouse Pty. Ltd. | Australia | 100% | ||
Mix Group Australasia Pty. Ltd. | Australia | 100% | ||
Transposafe Systems Belgium NV/SA | Belgium | 100% | ||
W.H. Brady, N.V. | Belgium | 100% | ||
PDC Belgium Holdings Sprl | Belgium | 100% | ||
PDC Europe Sprl | Belgium | 100% | ||
W.H.B. do Brasil Ltda. | Brazil | 100% | ||
BRC Financial | Canada | 100% | ||
W.H.B. Identification Solutions Inc. | Canada | 100% | ||
Doing Business As: | ||||
Brady | ||||
IDenticard | ||||
IDenticard Systems | ||||
Seton | ||||
Brady Investment Management (Shanghai) Co., Ltd. | China | 100% | ||
Brady Technology (Wuxi) Co. Ltd. | China | 100% | ||
Brady (Beijing) Co. Ltd. | China | 100% | ||
Brady (Shenzhen) Co., Ltd. | China | 100% | ||
Brady Technology (Dongguan) Co., Ltd. | China | 100% | ||
Brady (Xiamen) Co., Ltd. | China | 100% | ||
Brady A/S | Denmark | 100% | ||
Braton Europe S.A.R.L | France | 100% | ||
Brady Groupe S.A.S | France | 100% | ||
Doing Business As: | ||||
Seton | ||||
Signals | ||||
BIG | ||||
Securimed S.A.S. | France | 100% | ||
Brady GmbH | Germany | 100% | ||
Doing Business As: | ||||
Seton | ||||
Transposafe Systems Deutschland GmbH | Germany | 100% | ||
Bakee Metal Manufactory Company Limited | Hong Kong | 100% | ||
Brady Corporation Hong Kong Limited | Hong Kong | 100% | ||
Brady Company India Private Limited | India | 100% | ||
Brady Italia, S.r.l. | Italy | 100% | ||
Nippon Brady K.K. | Japan | 100% | ||
Brady S.à r.l. | Luxembourg | 100% | ||
Brady Luxembourg S.à r.l. | Luxembourg | 100% | ||
Brady Finance Luxembourg S.à r.l. | Luxembourg | 100% | ||
Brady Technology SDN. BHD. | Malaysia | 100% | ||
W. H. Brady S. de R.L. de C.V. | Mexico | 100% | ||
Brady Mexico, S. de R.L. de C.V. | Mexico | 100% | ||
PDC Brazeletes y Productos S.de R.L. de C.V. | Mexico | 100% | ||
Brady B.V. | Netherlands | 100% | ||
Brady Finance B.V. | Netherlands | 100% | ||
Holland Mounting Systems B.V. | Netherlands | 100% | ||
Transposafe Systems Holland B.V. | Netherlands | 100% | ||
Brady AS | Norway | 100% | ||
Pervaco AS | Norway | 100% | ||
Brady Philippines Direct Marketing Inc. | Philippines | 100% | ||
Transposafe Systems Polska Sp. Z.o.o. | Poland | 100% | ||
Brady ID Solutions S.R.L. | Romania | 100% | ||
Brady LLC | Russia | 100% | ||
Brady Corporation Asia Pte. Ltd. | Singapore | 100% | ||
Brady Asia Holding Pte. Ltd. | Singapore | 100% | ||
Brady Corporation Asia Pacific Pte. Ltd. | Singapore | 100% |
Brady Asia Pacific Pte. Ltd. | Singapore | 100% | ||
Brady s.r.o. | Slovakia | 100% | ||
Wiremarkers Africa Pty. Ltd. | South Africa | 100% | ||
Grafo Wiremarkers Pty. Ltd. | South Africa | 100% | ||
Brady IDS Korea LLP | South Korea | 100% | ||
Brady Identificación S.L.U. | Spain | 100% | ||
Brady AB | Sweden | 100% | ||
Brady Sweden Holding AB | Sweden | 100% | ||
Runelandhs Fastighter AB | Sweden | 100% | ||
Runelandhs Försäljnings AB | Sweden | 100% | ||
Brady (Thailand) Co. Ltd. | Thailand | 100% | ||
Brady Etiket ve Isaretleme Ticaret Ltd. Sirketi | Turkey | 100% | ||
Brady Middle East FZE | United Arab Emirates | 100% | ||
B.I. (UK) Limited | United Kingdom | 100% | ||
Brady Corporation Limited | United Kingdom | 100% | ||
Brady European Finance Limited | United Kingdom | 100% | ||
Brady European Holdings Limited | United Kingdom | 100% |
Date: September 15, 2016 | |
/s/ J. MICHAEL NAUMAN | |
J. Michael Nauman | |
President and Chief Executive Officer |
Date: September 15, 2016 | |
/s/ AARON J. PEARCE | |
Aaron J. Pearce | |
Senior Vice President, Chief Financial Officer and Chief Accounting Officer |
Date: September 15, 2016 | |
/s/ J. MICHAEL NAUMAN | |
J. Michael Nauman | |
President and Chief Executive Officer |
Date: September 15, 2016 | |
/s/ AARON J. PEARCE | |
Aaron J. Pearce | |
Senior Vice President, Chief Financial Officer and Chief Accounting Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Sep. 12, 2016 |
Jan. 31, 2016 |
|
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BRC | ||
Entity Registrant Name | BRADY CORP | ||
Entity Central Index Key | 0000746598 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 989,699,158 | ||
Class A Nonvoting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 46,966,421 | ||
Class B Voting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,538,628 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Class A Nonvoting Common Stock [Member] | ||
Common stock, shares issued | 51,261,487 | 51,261,487 |
Common Stock Aggregate Liquidation Preference | $ 42,803 | $ 42,803 |
Treasury stock, shares | 4,340,513 | 3,480,303 |
Class B Voting Common Stock [Member] | ||
Common stock, shares issued | 3,538,628 | 3,538,628 |
Common stock, shares outstanding | 3,538,628 | 3,538,628 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 | |||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations — Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized, and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a world leader in many of its markets. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Brady Corporation and its subsidiaries (“Brady” or the “Company”), all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation. Discontinued Operations — The results of operations of the Die-Cut businesses have been reported as discontinued operations for the years ended July 31, 2015 and 2014. There were no assets held for sale at July 31, 2016 or July 31, 2015 as the second and final phase of the Die-Cut sale closed in the first quarter of fiscal 2015. In accordance with the authoritative literature, the Company has elected to not separately disclose the cash flows related to discontinued operations. See Note 13 for additional information about the Company's discontinued operations. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events — On September 8, 2016, the Company announced an increase in the annual dividend to shareholders of the Company's Class A Common Stock, from $0.81 to $0.82 per share. A quarterly dividend of $0.2050 will be paid on October 31, 2016, to shareholders of record at the close of business on October 10, 2016. This dividend represents an increase of 1.2% and is the 31st consecutive annual increase in dividends. Fair Value of Financial Instruments — The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable and accounts payable) is a reasonable estimate of the fair value of these instruments due to their short-term nature. See Note 6 for more information regarding the fair value of long-term debt and Note 11 for fair value measurements. Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents, which are recorded at cost. Accounts Receivables — Accounts receivables are stated net of allowances for doubtful accounts of $5,144 and $3,585 as of July 31, 2016 and 2015, respectively. No single customer comprised more than 10% of the Company’s consolidated net sales in fiscal 2016, 2015 or 2014, or 10% of the Company’s consolidated accounts receivable as of July 31, 2016 or 2015. Specific customer provisions are made during review of significant outstanding amounts, in which customer creditworthiness and current economic trends may indicate that collection is doubtful. In addition, provisions are made for the remainder of accounts receivable based upon the age of the receivable and the Company’s historical collection experience. Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for certain domestic inventories (14.0% of total inventories at July 31, 2016, and 12.7% of total inventories at July 31, 2015) and the first-in, first-out (“FIFO”) or average cost methods for other inventories. Had all domestic inventories been accounted for on a FIFO basis instead of on a LIFO basis, the carrying value of inventories would have increased by $6,929 and $7,346 as of July 31, 2016 and 2015, respectively. Goodwill — Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. The fair value represents the amount at which a reporting unit could be bought or sold in a current transaction between market participants on an arms-length basis. In estimating the fair value, the Company utilizes a discounted cash flow model and market multiples approach. The estimated fair value is compared with the carrying amount of the reporting unit, including goodwill. The annual impairment testing performed on May 1, 2016, in accordance with ASC 350, "Intangibles - Goodwill and Other" ("Step One") indicated that all reporting units with remaining goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recorded during the year ended July 31, 2016. Long-Lived and Other Intangible Assets — The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line basis, over the estimated periods benefited. Intangible assets with indefinite useful lives as well as goodwill are not subject to amortization. These assets are assessed for impairment annually or more frequently as deemed necessary. The Company evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived and other finite-lived intangible assets may warrant revision or that the remaining balance of an asset may not be recoverable. If impairment is determined to exist, any related impairment loss is calculated by comparing the fair value of the asset to its carrying value. In fiscal 2016, long-lived and other intangible assets were analyzed for potential impairment. As a result of the analysis, no impairment charges were recorded. Refer to Note 2, "Goodwill and Other Intangible Assets" for further information. Property, Plant, and Equipment — Property, plant, and equipment are recorded at cost. The cost of buildings and improvements and machinery and equipment is being depreciated over their estimated useful lives using primarily the straight-line method for financial reporting purposes. The estimated useful lives range from 3 to 33 years as shown below.
Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the net amount, less proceeds from disposal, is charged or credited to operations. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. Depreciation expense was $23,375, $27,355, and $26,727 for the years ended July 31, 2016, 2015 and 2014, respectively. Catalog Costs and Related Amortization — The Company accumulates all direct costs incurred, net of vendor cooperative advertising payments, in the development, production, and circulation of its catalogs on its balance sheet until such time as the related catalog is mailed. The catalog costs are subsequently amortized into selling, general, and administrative expense over the expected sales realization cycle, which is one year or less. Consequently, any difference between the estimated and actual revenue stream for a particular catalog and the related impact on amortization expense is realized within a period of one year or less. The estimate of the expected sales realization cycle for a particular catalog is based on the Company’s historical sales experience with identical or similar catalogs, and an assessment of prevailing economic conditions and various competitive factors. The Company tracks subsequent sales realization, reassesses the marketplace, and compares its findings to the previous estimate, and adjusts the amortization of future catalogs, if necessary. At July 31, 2016 and 2015, $8,290 and $9,547, respectively, of prepaid catalog costs were included in prepaid expenses and other current assets. Revenue Recognition — Revenue is recognized when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, all of which generally occur upon shipment of goods to customers. The majority of the Company’s revenue relates to the sale of inventory to customers, and revenue is recognized when title and the risks and rewards of ownership pass to the customer. Given the nature of the Company’s business and the applicable rules guiding revenue recognition, the Company’s revenue recognition practices do not contain estimates that materially affect the results of operations, with the exception of estimated returns and credit memos. The Company provides for an allowance for estimated product returns and credit memos which is recognized as a deduction from sales at the time of the sale. As of July 31, 2016 and 2015, the Company had a reserve for estimated product returns and credit memos of $3,713 and $3,619, respectively. Sales Incentives — The Company accounts for cash consideration (such as sales incentives and cash discounts) given to its customers or resellers as a reduction of revenue rather than an operating expense. Sales incentives for the years ended July 31, 2016, 2015, and 2014 were $36,084, $36,591, and $36,175, respectively. Shipping and Handling Fees and Costs — Amounts billed to a customer in a sale transaction related to shipping and handling fees are reported as net sales and the related costs incurred for shipping and handling are reported as cost of goods sold. Advertising Costs — Advertising costs are expensed as incurred, except catalog and mailing costs as outlined previously. Advertising expense for the years ended July 31, 2016, 2015, and 2014 was $74,204, $86,090, and $82,561, respectively. Stock-Based Compensation — The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock unit awards ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. The options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant. Restricted shares and RSUs issued under the plan have an issuance price equal to the fair market value of the underlying stock at the date of grant. The Company also grants restricted shares and RSUs to certain executives and key management employees that vest upon meeting certain financial performance conditions. In accordance with ASC 718 "Compensation - Stock Compensation," the Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated grant-date fair values. The Black-Scholes option valuation model is used to determine the fair value of stock option awards on the date of grant. The Company recognizes the compensation cost of all share-based awards at the time it is deemed probable the award will vest. This cost is recognized on a straight-line basis over the vesting period of the award. If it is determined that it is unlikely the award will vest, the expense recognized to date for the award is reversed in the period in which this is evident and the remaining expense is not recorded. The Black-Scholes model requires the use of assumptions which determine the fair value of stock-based awards. The Company uses historical data regarding stock option exercise behaviors to estimate the expected term of options granted based on the period of time that options granted are expected to be outstanding. Expected volatilities are based on the historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s historical dividend payments and historical yield. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for the length of time corresponding to the expected term of the option. The market value is calculated as the average of the high and the low stock price on the date of the grant. The Company includes as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and restricted shares and RSUs vested during the period. See Note 7 “Stockholder’s Investment” for more information regarding the Company’s incentive stock plans. Research and Development — Amounts expended for research and development are expensed as incurred. Other Comprehensive Income — Other comprehensive income consists of foreign currency translation adjustments, net unrealized gains and losses from cash flow hedges and net investment hedges, and the unamortized gain on the post-retirement medical plans net of their related tax effects. Foreign Currency Translation — Foreign currency assets and liabilities are translated into United States dollars at end of period rates of exchange, and income and expense accounts are translated at the weighted average rates of exchange for the period. Resulting translation adjustments are included in other comprehensive income. Risk Management Activities — The Company does not hold or issue derivative financial instruments for trading purposes. Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. Foreign Currency Hedging — The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions and minimize the foreign currency translation impact on the Company’s foreign operations. While the Company’s risk management objectives and strategies are driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in qualify for hedge accounting and result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of foreign currency derivatives to protect against exposure resulting from transactions in a currency differing from the respective functional currency. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) of the derivatives are recorded in the accompanying Consolidated Statements of Earnings as "Investment and other income (expense) - net" or as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income (Loss), as discussed below. The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months. These instruments may or may not qualify as hedges under the accounting guidance for derivative instruments and hedging activities based upon the intended objective of the contract. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. The amount of hedge ineffectiveness was not material for the fiscal years ended July 31, 2016, 2015, and 2014. The Company has designated a portion of its foreign exchange contracts as cash flow hedges. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and in the cash flow hedge section of the Consolidated Statements of Comprehensive Loss, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company has designated a portion of its foreign exchange contracts as net investment hedges of the Company’s net investments in foreign operations. The Company also utilizes Euro-denominated debt and British Pound-denominated intercompany loans designated as hedge instruments to hedge portions of the Company’s net investments in Euro and British- Pound denominated foreign operations. For net investment hedges that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded as cumulative translation within AOCI and are included in the net investment hedge section of the Consolidated Statements of Comprehensive Income (Loss). Any ineffective portions are to be recognized in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. The Company also enters into foreign exchange contracts to create economic hedges to manage foreign exchange risk exposure. The Company has not designated these derivative contracts as hedge transactions, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings. See Note 12 "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. New Accounting Standards — In March 2016, the FASB issued ASU 2016-09, "Stock Compensation: Improvements to Employee Share-Based Payment Accounting," which will simplify several aspects of accounting for share-based payment transactions. The update will require, among other items, that all excess tax deficiencies or benefits be recorded as income tax expense or benefit in the statement of earnings, and not in additional paid-in capital (APIC). This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption of the ASU is permitted and the prospective transition method should be applied. The Company is currently evaluating the impact of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases," which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize the assets and liabilities that arise from most leases on the balance sheet. This guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The ASU must be adopted using a modified retrospective approach and early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach for determining revenue recognition. The new guidance requires revenue recognition when control of the goods or services transfers to the customer, replacing the existing guidance which requires revenue recognition when the risks and rewards transfer to the customer. Under the new guidance, companies should recognize revenues in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)", which amends the principal-versus-agent implementation guidance in ASU 2014-09. ASU 2016-08 clarifies the principal-versus-agent guidance in ASU 2014-09 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on that designation. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients", which amends the transition, collectability, and non-cash consideration guidance in ASU 2014-09. ASU 2016-12 clarifies that, for a contract to be considered completed at transition, substantially all of the revenue must have been recognized under legacy GAAP. The amendments also clarify how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. ASU 2014-09 (and related updates) is effective for the Company beginning in fiscal 2019. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the standard. The Company is currently evaluating the impact of this update on its consolidated financial statements. |
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2016 and 2015, were as follows:
Goodwill at July 31, 2016 and 2015 included $118,637 and $209,392 of accumulated impairment losses within the IDS and WPS segments, respectively, for a total of $328,029. There were no impairment charges recorded during fiscal 2016. The decrease of $3,328 in the carrying amount of goodwill as of July 31, 2016 compared to July 31, 2015 was due to the effect of currency fluctuations during the fiscal year. The annual impairment testing performed on May 1, 2016, in accordance with ASC 350, “Intangibles - Goodwill and Other” (“Step One”) indicated that all of the reporting units with remaining goodwill (IDS Americas & Europe, PeopleID, and WPS Europe) passed Step One of the goodwill impairment test as each had a fair value substantially in excess of its carrying value. During fiscal 2015, goodwill with carrying amounts of $26,246 and $10,866 in the WPS APAC and WPS Americas reporting units, respectively, was written off entirely, resulting in impairment charges of $37,112. Other Intangible Assets Other intangible assets include patents, tradenames, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The net book value of these assets was as follows:
The decrease in the gross carrying amount of other intangible assets as of July 31, 2016 compared to July 31, 2015 was primarily due to the effect of currency fluctuations during the year. In fiscal 2015, tradenames and customer relationships primarily associated with the WPS APAC and WPS Americas reporting units were written down to fair value. As a result, the Company recognized impairment charges of $6,651 during fiscal 2015. Amortization expense on intangible assets during fiscal 2016, 2015, and 2014 was $9,056, $12,103 and $17,871, respectively. The amortization over each of the next five fiscal years is projected to be $7,068, $6,379, $6,101, $5,581 and $5,534 for the fiscal years ending July 31, 2017, 2018, 2019, 2020 and 2021, respectively. |
Other Comprehensive Income Other Comprehensive Income (Notes) |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive (Loss) Income Other comprehensive (loss) income consists of foreign currency translation adjustments, unrealized gains and losses from cash flow hedges and net investment hedges, and the unamortized gain on post-retirement plans, net of their related tax effects. The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the periods presented:
The increase in accumulated other comprehensive loss as of July 31, 2016 compared to July 31, 2015, was primarily due to the appreciation of the U.S. dollar against certain other currencies during the twelve-month period. The foreign currency translation adjustments column in the table above includes foreign currency translation, foreign currency translation on intercompany notes and the impact of settlements of net investment hedges, net of tax. Of the total $1,527 in amounts reclassified from AOCI, the $120 loss on cash flow hedges was reclassified into cost of products sold, and the $1,647 net gain on post-retirement plans was reclassified into SG&A on the Consolidated Statement of Earnings in fiscal 2016. The following table illustrates the income tax (expense) benefit on the components of other comprehensive income:
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Employee Benefit Plans |
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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) who retired prior to January 1, 2016, as outlined by the Plan. Employer contributions to the plan are based on the employee’s age and service at retirement. The Plan was amended effective March 16, 2015 to eliminate postretirement medical benefits for eligible domestic employees retiring on or after January 1, 2016. This amendment resulted in a decrease in the accumulated postretirement benefit obligation of $4,490 and recognition of a curtailment gain of $4,296 in fiscal 2015. The curtailment gain was recorded in SG&A on the Consolidated Statements of Earnings. 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 AOCI, 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, 2016 and 2015. The following table provides a reconciliation of the changes in the Plan’s accumulated benefit obligation during the years ended July 31:
As of July 31, 2016 and 2015, amounts recognized as liabilities in the accompanying Consolidated Balance Sheets consist of:
As of July 31, 2016 and 2015, pre-tax amounts recognized in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets consist of:
Net periodic benefit (gain) cost for the Plan for fiscal years 2016, 2015, and 2014 includes the following components:
The estimated net actuarial gain that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost over the next fiscal year is $544. No prior service credit remains due to the plan amendment to eliminate post-retirement benefits for employees retiring after January 1, 2016. The following assumptions were used in accounting for the Plan:
The discount rate utilized in preparing the accumulated postretirement benefit obligation liability was decreased to 2.50% in fiscal 2016 from 3.00% in fiscal 2015 as a result of a decrease in the bond yield as of the Company’s measurement date of July 31, 2016. A one-percentage point change in assumed health care cost trend rates would have the following effects on the Plan:
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the years ending July 31:
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, 2016 and 2015, the accumulated pension obligation related to these plans was $7,120 and $6,020, respectively. As of July 31, 2016 and 2015, pre-tax amounts recognized in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets were losses of $1,161 and $1,361, respectively. The net periodic benefit cost for these plans was $795, $724, and $286 during the years ended July 31, 2016, 2015 and 2014, 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 $3,380 and $2,743 were included in other current liabilities on the accompanying Consolidated Balance Sheets as of July 31, 2016 and 2015, respectively. The amounts charged to expense for these retirement and profit sharing plans were $10,407, $9,912, and $10,830 during the years ended July 31, 2016, 2015 and 2014, respectively. The Company also has deferred compensation plans for directors, officers and key executives which are discussed below. At July 31, 2016 and 2015, $18,758 and $18,321, 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 for executives and non-employee directors 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. On May 21, 2014, the Director Deferred Compensation Plan was amended to allow participants to transfer funds from other investment funds into the Company’s Class A Nonvoting Common Stock. Funds are not permitted to be transferred from the Company’s Class A Nonvoting Common Stock into other investment funds until six months after the Director resigns from the Board. No such amendment was made to the Executive Deferred Compensation Plan. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Earnings (loss) from continuing operations consists of the following:
Income tax expense (benefit) from continuing operations consists of the following:
Deferred income taxes result from temporary differences in the recognition of revenues and expenses for financial statement and income tax purposes. The approximate tax effects of temporary differences are as follows:
In November 2015, the FASB issued new accounting guidance on the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as non-current on the Consolidated Balance Sheets. In the fourth quarter of fiscal 2016, the Company adopted this guidance and reclassified current deferred tax assets and current deferred tax liabilities from prepaid expenses and other current assets and other current liabilities, respectively, to deferred income taxes and other liabilities, respectively, in prior-period Consolidated Balance Sheets to conform to the current period's presentation. The impact of this reclassification on the July 31, 2015 Consolidated Balance Sheet was a reclassification of $12,442 from prepaid expenses and other current assets to deferred income taxes and $254 from other current liabilities to other liabilities. Tax loss carry-forwards at July 31, 2016 are comprised of:
The valuation allowance decreased by $1,930 during the fiscal year ended July 31, 2016, primarily due to the appreciation of the U.S. Dollar against the Swedish Krona and the utilization of net operating loss carryforwards in China and India. These decreases were partially offset by the increase in valuation allowances in Brazil due to the generation of current year net operating losses. If realized or reversed in future periods, substantially all of the valuation allowance would impact the income tax rate. The valuation allowance increased by $2,513 during the fiscal year ended July 31, 2015, mainly due to increased valuation allowances against state tax credit carryforwards and increased valuation allowances in certain jurisdictions, including Brazil, China, Sweden, and the United Kingdom. These increases were partially offset by reductions in the tax rates applied to valuation allowances in the United Kingdom. Rate Reconciliation A reconciliation of the tax computed by applying the statutory U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes to the total income tax expense is as follows:
Uncertain Tax Positions The Company follows the guidance in ASC 740, "Income Taxes" regarding uncertain tax positions. The guidance requires application of a “more likely than not” threshold to the recognition and de-recognition of tax positions. A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows:
The $15,294 of unrecognized tax benefits, if recognized, would affect the Company's effective income tax rate. The Company has classified $9,304 and $15,402, excluding interest and penalties, of the reserve for uncertain tax positions in Other Liabilities on the Consolidated Balance Sheets as of July 31, 2016 and 2015, respectively. The Company has classified $5,990 and $5,731, excluding interest and penalties, as a reduction of long-term deferred income tax assets on the Consolidated Balance Sheets as of July 31, 2016 and 2015, respectively. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense (benefit) on the Consolidated Statements of Earnings. Interest expense is recognized on the amount of potentially underpaid taxes associated with the Company's tax positions, beginning in the first period in which interest starts accruing under the respective tax law and continuing until the tax positions are settled. The Company recognized an increase of $3 and decreases of $157 and $498 in interest expense during the years ended July 31, 2016, 2015, and 2014, respectively. There was a $66 increase to the reserve for uncertain tax positions for penalties during the year ended July 31, 2016, no changes during the fiscal year ended July 31, 2015, and an increase of $25 for the year ended July 31, 2014. These amounts are net of reversals due to reductions for tax positions of prior years, statute of limitations, and settlements. At July 31, 2016 and 2015, the Company had $1,530 and $1,531, respectively, accrued for interest on unrecognized tax benefits. Penalties are accrued if the tax position does not meet the minimum statutory threshold to avoid the payment of a penalty. At July 31, 2016 and 2015, the Company had $2,730 and $2,664, respectively, accrued for penalties on unrecognized tax benefits. The Company estimates that it is reasonably possible that the unrecognized tax benefits may be reduced by $3,878 within twelve months as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or statute expirations. The maximum amount that would be recognized through the Consolidated Statements of Earnings as an income tax benefit is $3,878. During the year ended July 31, 2016, the Company recognized $428 of tax benefits (including interest and penalties) associated with the lapse of statutes of limitations. The Company also recognized $10,728 of tax benefits (including interest and penalties) associated with the reduction of tax positions for prior years due to the closure of tax audits. The Company and its subsidiaries file income tax returns in the U.S., various state, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions:
Unremitted Earnings The Company does not provide for U.S. deferred taxes on cumulative earnings of non-U.S. affiliates and associated companies that have been reinvested indefinitely. These earnings relate to ongoing operations and at July 31, 2016, were approximately $259,334. These earnings have been reinvested in non-U.S. business operations, and the Company does not intend to repatriate these earnings to fund U.S. operations. It is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. At July 31, 2016, $139,747 of the total $141,228 in cash and cash equivalents was held outside of the U.S. |
Long-Term Obligations |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Obligations | Debt On May 13, 2010, the Company completed a private placement of €75.0 million aggregate principal amount of senior unsecured notes to accredited institutional investors. The €75.0 million of senior notes consists of €30.0 million aggregate principal amount of 3.71% Series 2010-A Senior Notes, due May 13, 2017 and €45.0 million aggregate principal amount of 4.24% Series 2010-A Senior Notes, due May 13, 2020, with interest payable on the notes semiannually. This private placement was exempt from the registration requirements of the Securities Act of 1933. The notes have been fully and unconditionally guaranteed on an unsecured basis by the Company’s domestic subsidiaries. During fiscal 2006 and 2007, the Company completed two private placement note issuances totaling $350 million in ten-year fixed rate notes with varying maturity dates to institutional investors at interest rates varying from 5.30% to 5.33%. The notes must be repaid equally over seven years, with interest payable on the notes due semiannually on various dates throughout the year. The private placements were exempt from the registration requirements of the Securities Act of 1933. The notes were not registered for resale and may not be resold absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The notes have certain prepayment penalties for repaying them prior to the maturity date. Under the debt agreement, the Company made scheduled principal payments of $42.5 million in fiscal years 2016 and 2015, respectively. The final principal payment for the 2006 series of notes was made during fiscal 2016, while the final principal payment for the 2007 series of notes is due in fiscal 2017. The Company intends to utilize our revolving credit facility to fund private placement principal payments due during the fiscal year ended July 31, 2017, and therefore the maturities are included in "Long-term obligations, less current maturities" on the Consolidated Balance Sheets as of July 31, 2016. On September 25, 2015, the Company and certain of its subsidiaries entered into an unsecured $300,000 multi-currency revolving loan agreement with a group of six banks. Under the new revolving loan agreement, which has a final maturity date of September 25, 2020, the Company has the option to select either a base interest rate (based upon the higher of the federal funds rate plus one-half of 1%, the prime rate of Bank of America plus a margin based on the Company’s consolidated leverage ratio, or the one-month LIBOR rate plus 1%) or a Eurocurrency interest rate (at the LIBOR rate plus a margin based on the Company’s consolidated leverage ratio). At the Company’s option, and subject to certain conditions, the available amount under the revolving loan agreement may be increased from $300,000 up to $450,000. During fiscal 2016, the Company drew $10,000 from its revolving loan agreement in order to fund general corporate needs and the maximum amount outstanding throughout the year was $135,000. As of July 31, 2016, the outstanding balance on the credit facility was $112,000 and the Company had outstanding letters of credit under the revolving loan agreement of $4,261. There was $183,739 available for future borrowing under the credit facility, which can be increased to $333,739 at the Company's option, subject to certain conditions. The revolving loan agreement has a final maturity date of September 25, 2020. As such, the borrowing is included in "Long-term obligations, less current maturities" on the Consolidated Balance Sheets. The Company has two multi-currency lines of credit in China with capacity of $10,000 each. These lines of credit support USD-denominated or CNY-denominated borrowing to fund working capital and operations for the Company's Chinese entities and are due on demand. The borrowings under these facilities may be made for a period up to one year from the date of borrowing with interest on the USD-denominated borrowings incurred equal to U.S. dollar LIBOR on the date of borrowing plus a margin based upon duration and on the CNY-denominated borrowings incurred equal to the local China rate based upon duration. There is no ultimate maturity on the facilities and they are subject to periodic review and repricing. The Company is not required to comply with any financial covenants as part of the agreements. The maximum amount outstanding on these facilities was $10,411 and the Company repaid $5,483 during fiscal 2016. As of July 31, 2016, the aggregate outstanding balance on these lines of credit in China was $4,928 and there was $15,072 available for future borrowings. Due to the short-term nature of these credit facilities, the borrowings are classified as "Notes payable" within current liabilities on the Consolidated Balance Sheets. The Company’s debt agreements require it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.5 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of July 31, 2016, the Company was in compliance with these financial covenants, with the ratio of debt to EBITDA, as defined by the agreements, equal to 1.4 to 1.0 and the interest expense coverage ratio equal to 19.9 to 1.0. Total debt consists of the following as of July 31, 2016:
The Company had outstanding letters of credit of $4,261 and 3,327 at July 31, 2016 and July 31, 2015, respectively. The estimated fair value of the Company’s long-term obligations was $218,977 and $252,254 at July 31, 2016 and July 31, 2015, respectively, as compared to the carrying value of $211,982 and $243,288 at July 31, 2016 and July 31, 2015, respectively. The fair value of the long-term obligations, which were determined using the market approach based upon the interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. Due to the short-term nature and variable interest rate pricing of the Company's revolving debt in China, it is determined that the carrying value of the debt equals the fair value of the debt. Maturities on long-term debt are as follows:
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Stockholder's Investments |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder's Investments | Stockholders' Investment Information as to the Company’s capital stock at July 31, 2016 and 2015 is as follows:
Before any dividend may be paid on the Class B Common Stock, holders of the Class A Common Stock are entitled to receive an annual, noncumulative cash dividend of $.01665 per share. Thereafter, any further dividend in that fiscal year must be paid on each share of Class A Common Stock and Class B Common Stock on an equal basis. Other than as required by law, holders of the Class A Common Stock are not entitled to any vote on corporate matters, unless, in each of the three preceding fiscal years, the $.01665 preferential dividend described above has not been paid in full. Holders of the Class A Common Stock are entitled to one vote per share for the entire fiscal year immediately following the third consecutive fiscal year in which the preferential dividend is not paid in full. Holders of Class B Common Stock are entitled to one vote per share for the election of directors and for all other purposes. Upon liquidation, dissolution or winding up of the Company, and after distribution of any amounts due to holders of Preferred Stock, if any, holders of the Class A Common Stock are entitled to receive the sum of $0.835 per share before any payment or distribution to holders of the Class B Common Stock. Thereafter, holders of the Class B Common Stock are entitled to receive a payment or distribution of $0.835 per share. Thereafter, holders of the Class A Common Stock and Class B Common Stock share equally in all payments or distributions upon liquidation, dissolution or winding up of the Company. The preferences in dividends and liquidation rights of the Class A Common Stock over the Class B Common Stock will terminate at any time that the voting rights of Class A Common Stock and Class B Common Stock become equal. The following is a summary of other activity in stockholders’ investment for the fiscal years ended July 31, 2016, 2015, and 2014:
Deferred Compensation Plans The Company has two deferred compensation plans, the Executive Deferred Compensation Plan and the Director Deferred Compensation Plan. Both plans allow for compensation to be deferred into either the Company's Class A Nonvoting Common Stock or in other investment funds. The Executive Deferred Compensation Plan does not allow funds to be transferred between the Company's Class A Nonvoting Common Stock and the other investment funds. The Director Deferred Compensation Plan allows participants to transfer funds from other investment funds into the Company’s Class A Nonvoting Common Stock. Funds are not permitted to be transferred from the Company’s Class A Nonvoting Common Stock into other investment funds until six months after the Director resigns from the Board. At July 31, 2016, the deferred compensation balance in stockholders’ investment represents the investment at the original cost of shares held in the Company’s Class A Nonvoting Common Stock for the deferred compensation plans. The balance of shares held in the Rabbi Trust represents the investment in the Company’s Class A Nonvoting Common Stock at the original cost of all the Company’s Class A Nonvoting Common Stock held in deferred compensation plans. Incentive Stock Plans The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock units ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. As of July 31, 2016, the Company has reserved 4,387,087 shares of Class A Nonvoting Common Stock for outstanding stock options, RSUs and restricted shares and 2,391,385 shares of Class A Nonvoting Common Stock remain for future issuance of stock options, RSUs and restricted and unrestricted shares under the active plans. The Company uses treasury stock or will issue new Class A Nonvoting Common Stock to deliver shares under these plans. Total stock-based compensation expense recognized by the Company during the years ended July 31, 2016, 2015, and 2014 was $8,154 ($5,056 net of taxes), $4,471 ($2,772 net of taxes), and $5,214 ($3,232 net of taxes), respectively. As of July 31, 2016, total unrecognized compensation cost related to share-based compensation awards that are expected to vest was $15,318 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.4 years. Stock options The stock options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and generally vest ratably over a three-year period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. Options issued under the plan, referred to herein as “service-based” options, generally expire 10 years from the date of grant. The Company has estimated the fair value of its service-based stock option awards granted during the years ended July 31, 2016, 2015, and 2014 using the Black-Scholes option valuation model. The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table:
The following is a summary of stock option activity for the fiscal year ended July 31, 2016:
The total fair value of options vested during the fiscal years ended July 31, 2016, 2015, and 2014, was $3,203, $3,950, and $6,605, respectively. The total intrinsic value of options exercised during the fiscal years ended July 31, 2016, 2015, and 2014 was $811, $208, and $2,452, respectively. There were 2,488,527, 2,642,955, and 3,004,348 options exercisable with a weighted average exercise price of $30.18, $30.88, and $31.15 at July 31, 2016, 2015, and 2014, respectively. The cash received from the exercise of options during the fiscal years ended July 31, 2016, 2015, and 2014, was $5,243, $1,644, and $12,113, respectively. The tax benefit on options exercised during the fiscal years ended July 31, 2016, 2015, and 2014 was $308, $79, and $952, respectively. The following table summarizes information about stock options outstanding at July 31, 2016:
As of July 31, 2016, the aggregate intrinsic value (defined as the amount by which the fair value of the underlying stock exceeds the exercise price of an option) of options outstanding and the options exercisable was $21,358 and $8,164, respectively. Restricted Shares and RSUs Restricted shares and RSUs issued under the plan have an issuance price equal to the fair market value of the underlying stock at the date of grant. Beginning in fiscal 2014, the Company awarded RSUs that vest solely upon meeting specified service conditions, referred to herein as “service-based RSUs.” The RSUs issued under the plan generally vest ratably over a three-year period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. In fiscal 2015, the Company also awarded 63,668 service-based RSUs that vest ratably at the end of years 3, 4, and 5 and 395,617 service-based RSUs that vest in increments of 10%, 20%, 30%, and 40% at the end of years 1, 2, 3, and 4, respectively. The following tables summarize the RSU and restricted share activity for the fiscal year ended July 31, 2016:
The aggregate intrinsic value of unvested RSU's expected to vest at July 31, 2016, was $21,803. The total fair value of RSU's vested during the twelve months ended July 31, 2016 and 2015, was $2,797 and $805, respectively. The service-based RSUs granted during the fiscal year ended July 31, 2015, had a weighted-average grant-date fair value of $24.28. |
Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company is organized and managed on a global basis within three business platforms, ID Solutions, Workplace Safety, and PeopleID, which aggregate into two reportable segments: IDS and WPS. The Company evaluates short-term segment performance based on segment profit or loss and customer sales. Segment profit or loss does not include certain administrative costs, such as the cost of finance, information technology, human resources, legal, and executive leadership, which are managed as global functions. Restructuring charges, impairment charges, equity compensation costs, interest expense, investment and other income (expense) and income taxes are also excluded when evaluating segment performance. Each business platform has a President or Vice-President that reports directly to the Company's chief operating decision maker, its Chief Executive Officer. Each platform has its own distinct operations, which are managed locally by its own management team, maintains its own financial reports and is evaluated based on global segment profit. The Company has determined that these business platforms comprise its three operating segments, which aggregate into the two reportable segments based on the information used by the Chief Executive Officer to allocate resources and assess performance. Following is a summary of segment information for the years ended July 31, 2016, 2015 and 2014:
Following is a reconciliation of segment profit to net earnings (loss) for the years ended July 31, 2016, 2015 and 2014:
(1) Of the total $46,867 impairment charges in fiscal 2015, $39,367 was in the WPS segment and $7,500 was in the IDS segment. The impairment charges in 2014 were in the IDS segment.
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Net Income per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings per Common Share | Net Earnings (Loss) per Common Share Net earnings (loss) per common share is computed by dividing net earnings (loss) (after deducting restricted stock dividends and the applicable preferential Class A Common Stock dividends) by the weighted average Common Shares outstanding of 50,541 for fiscal 2016, 51,285 for fiscal 2015, and 51,866 for fiscal 2014. The Company utilizes the two-class method to calculate earnings per share. Dividends on the Company’s performance-based restricted shares are reconciling items in the basic and diluted earnings per share calculations for the respective periods presented. Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows:
Options to purchase approximately 3,172,755 and 3,568,264 shares of Class A Nonvoting Common Stock for the fiscal years ended July 31, 2016 and 2015, respectively, were not included in the computation of diluted net earnings (loss) per share as the impact of the inclusion of the options would have been anti-dilutive. In accordance with ASC 260, “Earnings per Share,” all options to purchase Class A Nonvoting Common Stock were not included in the computation of diluted loss per share for fiscal 2014 since to do so would be anti-dilutive. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company has entered into various non-cancellable operating lease agreements. Rental expense charged to continuing operations on a straight-line basis was $17,253, $19,029, and $17,344 for the years ended July 31, 2016, 2015, and 2014, respectively. Future minimum lease payments required under such leases in effect at July 31, 2016 were as follows:
In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may ultimately result from lawsuits are not expected to have a material effect on the consolidated financial statements of the Company. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company follows the guidance in ASC 820, "Fair Value Measurements and Disclosures" as it relates to its financial and non-financial assets and liabilities. The accounting guidance applies to other accounting pronouncements that require or permit fair value measurements, defines fair value based upon an exit price model, establishes a framework for measuring fair value, and expands the applicable disclosure requirements. The accounting guidance indicates, among other things, that a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The accounting guidance on fair value measurements establishes a fair market value hierarchy for the pricing inputs used to measure fair market value. The Company’s assets and liabilities measured at fair market value are classified in one of the following categories: Level 1 — Assets or liabilities for which fair value is based on unadjusted quoted prices in active markets for identical instruments that are accessible as of the measurement date. Level 2 — Assets or liabilities for which fair value is based on other significant pricing inputs that are either directly or indirectly observable. Level 3 — Assets or liabilities for which fair value is based on significant unobservable pricing inputs to the extent little or no market data is available, which result in the use of management's own assumptions. The following tables set forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2016 and July 31, 2015, according to the valuation techniques the Company used to determine their fair values.
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Trading securities: The Company’s deferred compensation investments consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these investments trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Foreign exchange contracts: The Company’s foreign exchange contracts were classified as Level 2, as the fair value was based on the present value of the future cash flows using external models that use observable inputs, such as interest rates, yield curves and foreign exchange rates. See Note 12, “Derivatives and Hedging Activities” for additional information. There have been no transfers of assets or liabilities between the fair value hierarchy levels, outlined above, during the fiscal years ended July 31, 2016 and July 31, 2015. The Company’s financial instruments, other than those presented in the disclosures above, include cash and cash equivalents, accounts receivable, notes payable, accounts payable, accrued liabilities and short-term and long-term debt. The fair values of cash and cash equivalents, accounts receivable, notes payable, accounts payable, and accrued liabilities approximated carrying values because of the short-term nature of these instruments. See Note 6 for information regarding the fair value of the Company's short-term and long-term debt. The Company completes its annual goodwill impairment analysis on May 1st of each fiscal year and evaluates its reporting units for potential triggering events on a quarterly basis in accordance with ASC 350, "Intangibles - Goodwill and Other." The annual impairment testing performed on May 1, 2016, indicated that all of the reporting units passed Step One of the goodwill impairment test as each had a fair value substantially in excess of its carrying value. The Company evaluates whether events and circumstances have occurred that indicate that the remaining estimated useful life of other intangible assets may warrant revision or that the remaining balance of an asset may not be recoverable. Management completed an assessment of other indefinite-lived and other finite-lived intangible assets in fiscal 2016 and concluded that no long-lived assets were impaired. During fiscal 2015, goodwill with carrying amounts of $26,246 and $10,866 in the WPS APAC and WPS Americas reporting units, respectively, was written off entirely, resulting in impairment charges of $37,112. In order to arrive at the implied fair value of goodwill, the Company calculated the fair value of all of the assets and liabilities of the reporting unit as if it had been acquired in a business combination. After assigning fair value to the assets and liabilities of the reporting unit, it was determined there was no excess fair value of the reporting units over the implied fair value of goodwill and thus, the remaining goodwill balances were impaired in fiscal 2015. The goodwill balances represented a Level 3 asset measured at fair value on a nonrecurring basis subsequent to its original recognition. During fiscal 2015, management evaluated other indefinite-lived intangible assets for recoverability using the income approach. The valuation was based upon current sales projections and profitability for each asset group, and the relief from royalty method was applied. Management evaluated other finite-lived intangible assets for recoverability using an undiscounted cash flow analysis based upon current sales projections and profitability for each asset group. This analysis resulted in an amount that was less than the carrying value of certain finite-lived intangible assets. Management measured the impairment loss of both indefinite and finite-lived intangible assets as the amount by which the carrying amount of the assets exceeded their fair value. As a result, other intangible assets with a carrying amount of $26,194 were written down to their estimated fair value of $19,543. These represented Level 3 assets measured at fair value on a nonrecurring basis subsequent to their original recognition. These items resulted in a total impairment charge of $6,651 in fiscal 2015. During fiscal 2014, goodwill with a carrying amount of $193,689 in the People ID reporting unit was written down to its estimated implied fair value of $93,277, resulting in an impairment charge of $100,412. In order to arrive at the implied fair value of goodwill, the Company calculated the fair value of all of the assets and liabilities of the reporting unit as if it had been acquired in a business combination. After assigning fair value to the assets and liabilities of the reporting unit, the result was the implied fair value of goodwill of $93,277, which represented a Level 3 asset measured at fair value on a nonrecurring basis subsequent to its original recognition. During fiscal 2014, management completed an assessment of other finite-lived intangible assets primarily associated with the PeopleID reporting unit and concluded that the assets were impaired. These assets were primarily associated with the acquisition of Precision Dynamics Corporation ("PDC"). Organic sales in the PDC business declined in the low single-digit percentages from fiscal 2013 to fiscal 2014. U.S. hospital admission rates are a primary driver of PDC's sales under its existing strategy, and there was a decline of approximately 2% in these rates during fiscal 2014. Therefore, management revisited its planned growth and profit for the PDC business and concluded that the growth may not materialize as expected given slower than anticipated industry growth and fewer sales synergies than originally planned. Management evaluated other finite-lived intangible assets for recoverability using an undiscounted cash flow analysis based upon sales projections and concluded there was an indicator of impairment. Management measured the impairment loss as the amount by which the carrying amount of the customer relationships exceeded their fair value, which represented Level 3 assets measured at fair value on a nonrecurring basis subsequent to their original recognition. This resulted in an impairment charge of $48,139 recognized in fiscal 2014, which was classified within the "Impairment charges" line item on the Consolidated Statements of Earnings and was part of the IDS reportable segment. |
Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company utilizes forward foreign exchange contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months, which qualify as cash flow hedges or net investment hedges under the accounting guidance for derivative instruments and hedging activities. The primary objective of the Company’s foreign currency exchange risk management program is to minimize the impact of currency movements due to transactions in other than the respective subsidiaries’ functional currency and to minimize the impact of currency movements on the Company’s net investment denominated in a currency other than the U.S. dollar. To achieve this objective, the Company hedges a portion of known exposures using forward foreign exchange contracts. As of July 31, 2016 and July 31, 2015, the notional amount of outstanding forward foreign exchange contracts was $186,093 and $139,300, respectively. The Company hedges a portion of known exposures using forward foreign exchange contracts. Main exposures are related to transactions denominated in the British Pound, the Euro, Canadian dollar, Australian dollar, Mexican Peso, Malaysian Ringgit and Singapore dollar. Generally, these risk management transactions will involve the use of foreign currency derivatives to minimize the impact of currency movements on non-functional currency transactions. Hedge effectiveness is determined by how closely the changes in fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. Cash Flow Hedges The Company has designated a portion of its forward foreign exchange contracts as cash flow hedges and recorded these contracts at fair value on the Consolidated Balance Sheets. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. At July 31, 2016 and July 31, 2015, unrealized losses of $761 and unrealized gains of $297 have been included in OCI, respectively. These balances are expected to be reclassified from OCI to earnings during the next twelve months when the hedged transactions impact earnings. For the years ended July 31, 2016, 2015, and 2014, the Company reclassified losses of $199, and gains of $1,325 and $147 from OCI into cost of goods sold, respectively. As of July 31, 2016 and 2015, the notional amount of outstanding forward foreign exchange contracts designated as cash flow hedges was $34,540 and $33,223, respectively. Net Investment Hedges The Company has also designated intercompany and third party foreign currency denominated debt instruments as net investment hedges. At July 31, 2016, the Company designated £25,000 of intercompany loans as net investment hedges to hedge portions of its net investment in British foreign operations. As of July 31, 2016 and 2015, the Company recognized in OCI gains of $6,887 and $889, respectively, on its intercompany loans designated as net investment hedges. On May 13, 2010, the Company completed the private placement of €75.0 million aggregate principal amount of senior unsecured notes to accredited institutional investors. This Euro-denominated debt obligation was designated as a net investment hedge to selectively hedge portions of its net investment in European foreign operations. As of July 31, 2016 and 2015, the cumulative balance recognized in accumulated other comprehensive income were gains of $11,140 and $12,512, respectively, on the Euro-denominated debt obligation. The changes recognized in other comprehensive income during the years ended July 31, 2016, 2015 and 2014 were losses of $1,372, gains of $18,008 and losses of $660, respectively, on the Euro-denominated debt obligation. The Company’s foreign denominated debt obligations are valued under a market approach using publicized spot prices. Non-Designated Hedges During the fiscal years ended July 31, 2016 and 2015, the Company recognized gains of $2,162 and losses of $1,705, respectively, in “Investment and other income” on the Consolidated Statements of Earnings related to non-designated hedges. Fair values of derivative and hedging instruments in the Consolidated Balance Sheets were as follows:
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations The Company entered into an agreement with LTI Flexible Products, Inc. (d/b/a Boyd Corporation) on February 24, 2014, for the sale of the Die-Cut business. The first phase of this divestiture closed on May 1, 2014 and included the Die-Cut businesses in Korea, Thailand and Malaysia, and the Balkhausen business in Europe. The remainder of the Die-Cut business was located in China and it was divested on August 1, 2014. The operating results have been reported as discontinued operations for the fiscal years ending July 31, 2015 and 2014. The following table summarizes the operating results of discontinued operations for the fiscal years ending July 31, 2015 and 2014:
There were no assets or liabilities held for sale as of July 31, 2015. In accordance with authoritative literature, accumulated other comprehensive income of $34,697 was reclassified to the statement of earnings upon the closing of the second phase of the Die-Cut divestiture during the three months ended October 31, 2014. |
Unaudited Quarterly Financial Information (Notes) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Information | Unaudited Quarterly Financial Information
* In fiscal 2015, the Company recorded before tax impairment charges of $46,867 in the fourth quarter ended July 31, 2015 and before tax restructuring charges of $4,278, $4,879, $4,834 and $2,830 in the first, second, third, and fourth quarters of fiscal 2015, respectively, for a total of $16,821.
*** The sum of the quarters does not equal the year-to-date total for fiscal 2015 due to the quarterly changes in weighted-average shares outstanding. |
Schedule II Valuation of Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) |
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Nature of Operations — Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized, and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a world leader in many of its markets. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Brady Corporation and its subsidiaries (“Brady” or the “Company”), all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation. Discontinued Operations — The results of operations of the Die-Cut businesses have been reported as discontinued operations for the years ended July 31, 2015 and 2014. There were no assets held for sale at July 31, 2016 or July 31, 2015 as the second and final phase of the Die-Cut sale closed in the first quarter of fiscal 2015. In accordance with the authoritative literature, the Company has elected to not separately disclose the cash flows related to discontinued operations. See Note 13 for additional information about the Company's discontinued operations. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events — On September 8, 2016, the Company announced an increase in the annual dividend to shareholders of the Company's Class A Common Stock, from $0.81 to $0.82 per share. A quarterly dividend of $0.2050 will be paid on October 31, 2016, to shareholders of record at the close of business on October 10, 2016. This dividend represents an increase of 1.2% and is the 31st consecutive annual increase in dividends. Fair Value of Financial Instruments — The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable and accounts payable) is a reasonable estimate of the fair value of these instruments due to their short-term nature. See Note 6 for more information regarding the fair value of long-term debt and Note 11 for fair value measurements. Cash Equivalents — The Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents, which are recorded at cost. Accounts Receivables — Accounts receivables are stated net of allowances for doubtful accounts of $5,144 and $3,585 as of July 31, 2016 and 2015, respectively. No single customer comprised more than 10% of the Company’s consolidated net sales in fiscal 2016, 2015 or 2014, or 10% of the Company’s consolidated accounts receivable as of July 31, 2016 or 2015. Specific customer provisions are made during review of significant outstanding amounts, in which customer creditworthiness and current economic trends may indicate that collection is doubtful. In addition, provisions are made for the remainder of accounts receivable based upon the age of the receivable and the Company’s historical collection experience. Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for certain domestic inventories (14.0% of total inventories at July 31, 2016, and 12.7% of total inventories at July 31, 2015) and the first-in, first-out (“FIFO”) or average cost methods for other inventories. Had all domestic inventories been accounted for on a FIFO basis instead of on a LIFO basis, the carrying value of inventories would have increased by $6,929 and $7,346 as of July 31, 2016 and 2015, respectively. Goodwill — Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. The fair value represents the amount at which a reporting unit could be bought or sold in a current transaction between market participants on an arms-length basis. In estimating the fair value, the Company utilizes a discounted cash flow model and market multiples approach. The estimated fair value is compared with the carrying amount of the reporting unit, including goodwill. The annual impairment testing performed on May 1, 2016, in accordance with ASC 350, "Intangibles - Goodwill and Other" ("Step One") indicated that all reporting units with remaining goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recorded during the year ended July 31, 2016. Long-Lived and Other Intangible Assets — The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line basis, over the estimated periods benefited. Intangible assets with indefinite useful lives as well as goodwill are not subject to amortization. These assets are assessed for impairment annually or more frequently as deemed necessary. The Company evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived and other finite-lived intangible assets may warrant revision or that the remaining balance of an asset may not be recoverable. If impairment is determined to exist, any related impairment loss is calculated by comparing the fair value of the asset to its carrying value. In fiscal 2016, long-lived and other intangible assets were analyzed for potential impairment. As a result of the analysis, no impairment charges were recorded. Refer to Note 2, "Goodwill and Other Intangible Assets" for further information. Property, Plant, and Equipment — Property, plant, and equipment are recorded at cost. The cost of buildings and improvements and machinery and equipment is being depreciated over their estimated useful lives using primarily the straight-line method for financial reporting purposes. The estimated useful lives range from 3 to 33 years as shown below.
Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the net amount, less proceeds from disposal, is charged or credited to operations. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. Depreciation expense was $23,375, $27,355, and $26,727 for the years ended July 31, 2016, 2015 and 2014, respectively. Catalog Costs and Related Amortization — The Company accumulates all direct costs incurred, net of vendor cooperative advertising payments, in the development, production, and circulation of its catalogs on its balance sheet until such time as the related catalog is mailed. The catalog costs are subsequently amortized into selling, general, and administrative expense over the expected sales realization cycle, which is one year or less. Consequently, any difference between the estimated and actual revenue stream for a particular catalog and the related impact on amortization expense is realized within a period of one year or less. The estimate of the expected sales realization cycle for a particular catalog is based on the Company’s historical sales experience with identical or similar catalogs, and an assessment of prevailing economic conditions and various competitive factors. The Company tracks subsequent sales realization, reassesses the marketplace, and compares its findings to the previous estimate, and adjusts the amortization of future catalogs, if necessary. At July 31, 2016 and 2015, $8,290 and $9,547, respectively, of prepaid catalog costs were included in prepaid expenses and other current assets. Revenue Recognition — Revenue is recognized when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, all of which generally occur upon shipment of goods to customers. The majority of the Company’s revenue relates to the sale of inventory to customers, and revenue is recognized when title and the risks and rewards of ownership pass to the customer. Given the nature of the Company’s business and the applicable rules guiding revenue recognition, the Company’s revenue recognition practices do not contain estimates that materially affect the results of operations, with the exception of estimated returns and credit memos. The Company provides for an allowance for estimated product returns and credit memos which is recognized as a deduction from sales at the time of the sale. As of July 31, 2016 and 2015, the Company had a reserve for estimated product returns and credit memos of $3,713 and $3,619, respectively. Sales Incentives — The Company accounts for cash consideration (such as sales incentives and cash discounts) given to its customers or resellers as a reduction of revenue rather than an operating expense. Sales incentives for the years ended July 31, 2016, 2015, and 2014 were $36,084, $36,591, and $36,175, respectively. Shipping and Handling Fees and Costs — Amounts billed to a customer in a sale transaction related to shipping and handling fees are reported as net sales and the related costs incurred for shipping and handling are reported as cost of goods sold. Advertising Costs — Advertising costs are expensed as incurred, except catalog and mailing costs as outlined previously. Advertising expense for the years ended July 31, 2016, 2015, and 2014 was $74,204, $86,090, and $82,561, respectively. Stock-Based Compensation — The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock unit awards ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. The options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant. Restricted shares and RSUs issued under the plan have an issuance price equal to the fair market value of the underlying stock at the date of grant. The Company also grants restricted shares and RSUs to certain executives and key management employees that vest upon meeting certain financial performance conditions. In accordance with ASC 718 "Compensation - Stock Compensation," the Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated grant-date fair values. The Black-Scholes option valuation model is used to determine the fair value of stock option awards on the date of grant. The Company recognizes the compensation cost of all share-based awards at the time it is deemed probable the award will vest. This cost is recognized on a straight-line basis over the vesting period of the award. If it is determined that it is unlikely the award will vest, the expense recognized to date for the award is reversed in the period in which this is evident and the remaining expense is not recorded. The Black-Scholes model requires the use of assumptions which determine the fair value of stock-based awards. The Company uses historical data regarding stock option exercise behaviors to estimate the expected term of options granted based on the period of time that options granted are expected to be outstanding. Expected volatilities are based on the historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s historical dividend payments and historical yield. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for the length of time corresponding to the expected term of the option. The market value is calculated as the average of the high and the low stock price on the date of the grant. The Company includes as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and restricted shares and RSUs vested during the period. See Note 7 “Stockholder’s Investment” for more information regarding the Company’s incentive stock plans. Research and Development — Amounts expended for research and development are expensed as incurred. Other Comprehensive Income — Other comprehensive income consists of foreign currency translation adjustments, net unrealized gains and losses from cash flow hedges and net investment hedges, and the unamortized gain on the post-retirement medical plans net of their related tax effects. Foreign Currency Translation — Foreign currency assets and liabilities are translated into United States dollars at end of period rates of exchange, and income and expense accounts are translated at the weighted average rates of exchange for the period. Resulting translation adjustments are included in other comprehensive income. Risk Management Activities — The Company does not hold or issue derivative financial instruments for trading purposes. Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. Foreign Currency Hedging — The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions and minimize the foreign currency translation impact on the Company’s foreign operations. While the Company’s risk management objectives and strategies are driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in qualify for hedge accounting and result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of foreign currency derivatives to protect against exposure resulting from transactions in a currency differing from the respective functional currency. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) of the derivatives are recorded in the accompanying Consolidated Statements of Earnings as "Investment and other income (expense) - net" or as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income (Loss), as discussed below. The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months. These instruments may or may not qualify as hedges under the accounting guidance for derivative instruments and hedging activities based upon the intended objective of the contract. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. The amount of hedge ineffectiveness was not material for the fiscal years ended July 31, 2016, 2015, and 2014. The Company has designated a portion of its foreign exchange contracts as cash flow hedges. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and in the cash flow hedge section of the Consolidated Statements of Comprehensive Loss, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The Company has designated a portion of its foreign exchange contracts as net investment hedges of the Company’s net investments in foreign operations. The Company also utilizes Euro-denominated debt and British Pound-denominated intercompany loans designated as hedge instruments to hedge portions of the Company’s net investments in Euro and British- Pound denominated foreign operations. For net investment hedges that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded as cumulative translation within AOCI and are included in the net investment hedge section of the Consolidated Statements of Comprehensive Income (Loss). Any ineffective portions are to be recognized in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. The Company also enters into foreign exchange contracts to create economic hedges to manage foreign exchange risk exposure. The Company has not designated these derivative contracts as hedge transactions, and accordingly, the mark-to-market impact of these derivatives is recorded each period in current earnings. See Note 12 "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. New Accounting Standards — In March 2016, the FASB issued ASU 2016-09, "Stock Compensation: Improvements to Employee Share-Based Payment Accounting," which will simplify several aspects of accounting for share-based payment transactions. The update will require, among other items, that all excess tax deficiencies or benefits be recorded as income tax expense or benefit in the statement of earnings, and not in additional paid-in capital (APIC). This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption of the ASU is permitted and the prospective transition method should be applied. The Company is currently evaluating the impact of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases," which replaces the current lease accounting standard. The update will require, among other items, lessees to recognize the assets and liabilities that arise from most leases on the balance sheet. This guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The ASU must be adopted using a modified retrospective approach and early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach for determining revenue recognition. The new guidance requires revenue recognition when control of the goods or services transfers to the customer, replacing the existing guidance which requires revenue recognition when the risks and rewards transfer to the customer. Under the new guidance, companies should recognize revenues in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)", which amends the principal-versus-agent implementation guidance in ASU 2014-09. ASU 2016-08 clarifies the principal-versus-agent guidance in ASU 2014-09 and requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on that designation. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients", which amends the transition, collectability, and non-cash consideration guidance in ASU 2014-09. ASU 2016-12 clarifies that, for a contract to be considered completed at transition, substantially all of the revenue must have been recognized under legacy GAAP. The amendments also clarify how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. ASU 2014-09 (and related updates) is effective for the Company beginning in fiscal 2019. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the standard. The Company is currently evaluating the impact of this update on its consolidated financial statements. |
Goodwill and Other Intangible Assets Schedule of Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2016 and 2015, were as follows:
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Goodwill and Other Intangible Assets Schedule of Other Intangible Assets (Tables) |
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Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other Intangible Assets Other intangible assets include patents, tradenames, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The net book value of these assets was as follows:
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Other Comprehensive Income Other Comprehensive Income (Tables) |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the periods presented:
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Other Comprehensive Income, Tax [Table Text Block] | The following table illustrates the income tax (expense) benefit on the components of other comprehensive income:
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Employee Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Postemployment Benefit Obligations | The following table provides a reconciliation of the changes in the Plan’s accumulated benefit obligation during the years ended July 31:
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Schedule of Amounts Recognized in Balance Sheet | As of July 31, 2016 and 2015, amounts recognized as liabilities in the accompanying Consolidated Balance Sheets consist of:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | As of July 31, 2016 and 2015, pre-tax amounts recognized in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets consist of:
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Schedule of Net Periodic Benefit Cost Not yet Recognized | Net periodic benefit (gain) cost for the Plan for fiscal years 2016, 2015, and 2014 includes the following components:
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Schedule of Assumptions Used | The following assumptions were used in accounting for the Plan:
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects on the Plan:
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Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the years ending July 31:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of (Loss) Earnings from Continuing Operations | Earnings (loss) from continuing operations consists of the following:
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Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations consists of the following:
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Schedule of Deferred Tax Assets and Liabilities | The approximate tax effects of temporary differences are as follows:
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the tax computed by applying the statutory U.S. federal income tax rate to earnings (loss) from continuing operations before income taxes to the total income tax expense is as follows:
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Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows: |
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Schedule of Open Tax Years by Major Jurisdictions | The Company and its subsidiaries file income tax returns in the U.S., various state, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions:
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Long-Term Obligations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Total debt consists of the following as of July 31, 2016:
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Schedule of Maturities of Long-term Debt | Maturities on long-term debt are as follows:
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Stockholder's Investments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Stock | Information as to the Company’s capital stock at July 31, 2016 and 2015 is as follows:
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Schedule of Other Activity in Stockholders' Investment | The following is a summary of other activity in stockholders’ investment for the fiscal years ended July 31, 2016, 2015, and 2014:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
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Summary of Stock Option Activity under Company's Share-Based Compensation Plans | for the fiscal year ended July 31, 2016:
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Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding at July 31, 2016:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following tables summarize the RSU and restricted share activity for the fiscal year ended July 31, 2016:
The aggregate intrinsic value of unvested RSU's expected to vest at July 31, 2016, was $21,803. The total fair value of RSU's vested during the twelve months ended July 31, 2016 and 2015, was $2,797 and $805, respectively. The service-based RSUs granted during the fiscal year ended July 31, 2015, had a weighted-average grant-date fair value of $24.28. |
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information by Segment | Following is a summary of segment information for the years ended July 31, 2016, 2015 and 2014:
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Following is a reconciliation of segment profit to net earnings (loss) for the years ended July 31, 2016, 2015 and 2014:
(1) Of the total $46,867 impairment charges in fiscal 2015, $39,367 was in the WPS segment and $7,500 was in the IDS segment. The impairment charges in 2014 were in the IDS segment. |
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas |
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Net Income per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations of Numerator and Denominator of Basic and Diluted Per Share | Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments required under such leases in effect at July 31, 2016 were as follows:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis | The following tables set forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2016 and July 31, 2015, according to the valuation techniques the Company used to determine their fair values.
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Derivatives and Hedging Activities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments in Consolidated Balance Sheets | Fair values of derivative and hedging instruments in the Consolidated Balance Sheets were as follows:
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Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the operating results of discontinued operations for the fiscal years ending July 31, 2015 and 2014:
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Unaudited Quarterly Financial Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
* In fiscal 2015, the Company recorded before tax impairment charges of $46,867 in the fourth quarter ended July 31, 2015 and before tax restructuring charges of $4,278, $4,879, $4,834 and $2,830 in the first, second, third, and fourth quarters of fiscal 2015, respectively, for a total of $16,821.
*** The sum of the quarters does not equal the year-to-date total for fiscal 2015 due to the quarterly changes in weighted-average shares outstanding. |
Summary of Significant Accounting Policies Subsequent Events (Details) - $ / shares |
12 Months Ended | ||||
---|---|---|---|---|---|
Jul. 31, 2017 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
Oct. 31, 2015 |
|
Subsequent Event [Line Items] | |||||
Document Period End Date | Jul. 31, 2016 | ||||
Class A Nonvoting Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Percentage Increase In Dividend | 1.20% | ||||
Dividends | $ 0.82 | $ 0.81 | $ 0.80 | $ 0.78 | |
Dividends Payable | $ 0.2050 |
Summary of Significant Accounting Policies Accounts Receivables (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Receivables [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 5,144 | $ 3,585 |
Entity-Wide Revenue, Major Customer, Percentage | 10.00% | |
Percentage Of Maximum Customers Shares In Companys Consolidated Accounts Receivable | 10.00% |
Summary of Significant Accounting Policies Inventories (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 14.00% | 12.70% |
Inventory, LIFO Reserve, Effect on Income, Net | $ 6,929 | $ 7,346 |
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 23,375 | $ 27,355 | $ 26,727 |
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 33 years | ||
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accounting Policies Catalog Costs and Related Amortization (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Prepaid Catalog Costs Included In Prepaid Expenses And Other Current Assets | $ 8,290 | $ 9,547 |
Summary of Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Revenue Recognition Sales Return Reserve For Sales Returns | $ 3,713 | $ 3,619 |
Summary of Significant Accounting Policies Sales Incentives (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Sales Incentives | $ 36,084 | $ 36,591 | $ 36,175 |
Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Advertising Expense | $ 74,204 | $ 86,090 | $ 82,561 |
Summary of Significant Accounting Policies Foreign Currency Hedging (Details) |
12 Months Ended |
---|---|
Jul. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative maturity | 18 months |
Acquisitions - Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Net sales | $ 282,106 | $ 286,816 | $ 268,630 | $ 283,073 | $ 288,636 | $ 290,227 | $ 282,628 | $ 310,240 | $ 1,120,625 | $ 1,171,731 | $ 1,225,034 | ||||||||||
(Loss) earnings from continuing operations, as reported | $ 25,136 | $ 20,981 | $ 15,290 | $ 18,703 | $ (39,394) | $ 17,213 | $ 11,584 | $ 15,499 | 80,110 | 4,902 | (48,146) | ||||||||||
Nonvoting Common Stock [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
(Loss) earnings from continuing operations, as reported | $ 80,110 | $ 4,902 | $ (48,238) | ||||||||||||||||||
Basic (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.50 | [1] | $ 0.42 | [1] | $ 0.30 | [1] | $ 0.37 | [1] | $ (0.77) | [1] | $ 0.34 | [1] | $ 0.23 | [1] | $ 0.30 | [1] | $ 1.59 | $ 0.10 | $ (0.93) | ||
Diluted (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.49 | [1] | $ 0.42 | [1] | $ 0.30 | [1] | $ 0.37 | [1] | $ (0.77) | [1] | $ 0.33 | [1] | $ 0.23 | [1] | $ 0.30 | [1] | $ 1.58 | $ 0.10 | $ (0.93) | ||
|
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items] | |||
Interest expense | $ 7,824 | $ 11,156 | $ 14,300 |
Income tax expense (benefit) | 29,235 | 20,093 | (4,963) |
Pre-tax amortization of intangible assets | $ 9,056 | $ 12,103 | $ 17,871 |
Other Comprehensive Income Other Comprehensive Income, Tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Other Comprehensive Income, Tax [Abstract] | |||
Net investment hedge translation adjustments | $ (1,804) | $ (8,450) | $ 302 |
Long-term intercompany loan settlements | 0 | 0 | 579 |
Cash flow hedges | 192 | (308) | 28 |
Pension and other post-retirement benefits | 738 | 949 | (1,898) |
Other income tax adjustments | (2,154) | (415) | (58) |
Income tax expense related to items of other comprehensive (loss) income | $ (3,028) | $ (8,224) | $ (1,047) |
Employee Benefit Plans - Schedule of Changes in Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of year | $ 4,135 | $ 8,056 | |
Service cost | 9 | 210 | $ 674 |
Interest cost | 114 | 222 | 534 |
Actuarial (gain) loss | (38) | 502 | |
Benefit payments | (420) | (365) | |
Plan amendments | 0 | (1,935) | |
Curtailment gain | 0 | (2,555) | |
Obligation at end of fiscal year | $ 3,800 | $ 4,135 | $ 8,056 |
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
---|---|---|---|
Compensation and Retirement Disclosure [Abstract] | |||
Current liability | $ 499 | $ 659 | |
Non-current liability | 3,301 | 3,476 | |
Defined Benefit Plan, Benefit Obligation | $ 3,800 | $ 4,135 | $ 8,056 |
Employee Benefit Plans - Schedule of Amounts Recognized in OCI (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Compensation and Retirement Disclosure [Abstract] | ||
Net actuarial gain | $ 6,048 | $ 6,655 |
Prior service credit | 0 | 1,035 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | $ 6,048 | $ 7,690 |
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Net periodic postretirement benefit (gain) cost included the following components: | |||
Service cost | $ 9 | $ 210 | $ 674 |
Interest cost | 114 | 222 | 534 |
Amortization of prior service credit | (1,035) | (1,169) | (203) |
Amortization of net actuarial gain | (646) | (804) | (265) |
Curtailment gain | 0 | (4,296) | 0 |
Periodic postretirement benefit (gain) cost | $ (1,558) | $ (5,837) | $ 740 |
Employee Benefit Plans - Schedule of Assumptions Used (Details) |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016
Rate
|
Jul. 31, 2015
Rate
|
Jul. 31, 2014
Rate
|
|
Compensation and Retirement Disclosure [Abstract] | |||
Weighted average discount rate used in determining accumulated postretirement benefit obligation | 2.50% | 3.00% | 3.50% |
Weighted average discount rate used in determining net periodic benefit cost | 3.00% | 3.41% | 4.00% |
Assumed health care trend rate used to measure APBO at July 31 | 7.50% | 7.00% | 7.50% |
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 | 2018 | 2018 | 2018 |
Employee Benefit Plans - Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Thousands |
12 Months Ended |
---|---|
Jul. 31, 2016
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 3 |
Effect of One Percentage Point Decrease on Service and Interest Cost Components | (3) |
Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 17 |
Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (18) |
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2016 | $ 499 | $ 659 |
2017 | 449 | |
2018 | 377 | |
2019 | 359 | |
2020 | 339 | |
2022 through 2026 | $ 1,342 |
Income Taxes - Schedule of (Loss) Earnings from Continuing Operations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 61,349 | $ (582) | $ (134,596) |
Other Nations | 47,996 | 25,577 | 81,487 |
Earnings (loss) from continuing operations before income taxes | $ 109,345 | $ 24,995 | $ (53,109) |
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Current income tax expense (benefit): | |||
United States | $ 5,048 | $ 9,075 | $ (1,137) |
Other Nations | 19,929 | 18,806 | 19,513 |
States (U.S.) | 1,348 | (352) | 1,090 |
Total current income tax expense | 26,325 | 27,529 | 19,466 |
Deferred income tax expense (benefit): | |||
United States | 3,946 | (5,906) | (22,754) |
Other Nations | (1,387) | (1,868) | (1,803) |
States (U.S.) | 351 | 338 | 128 |
Total deferred income tax (benefit) expense | 2,910 | (7,436) | (24,429) |
Income Tax Expense (Benefit), Continuing Operations | $ 29,235 | $ 20,093 | $ (4,963) |
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 0 | $ 25 | ||||||||||||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||||||||||||
Tax at statutory rate | 35.00% | 35.00% | 35.00% | |||||||||||
Impairment charges (1) | [1] | 0.00% | 55.80% | (40.30%) | ||||||||||
State income taxes, net of federal tax benefit (2) | 0.80% | [2] | 1.60% | [2] | (1.10%) | |||||||||
International rate differential | 0.40% | (2.20%) | (1.30%) | |||||||||||
Rate variances arising from foreign subsidiary distributions | 0.50% | (0.30%) | (7.50%) | |||||||||||
Adjustments to tax accruals and reserves (3) | [3] | (3.70%) | 17.80% | 25.50% | ||||||||||
Research and development tax credits and section 199 manufacturer’s deduction | (3.60%) | (3.90%) | 3.60% | |||||||||||
Non-deductible divestiture fees and account write-offs | (0.40%) | (4.80%) | (5.20%) | |||||||||||
Deferred tax and other adjustments (4) | (1.40%) | [4] | (21.10%) | [4] | 0.70% | |||||||||
Other, net | (0.90%) | 2.50% | (0.10%) | |||||||||||
Effective tax rate | 26.70% | 80.40% | 9.30% | |||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||||
Goodwill, Impairment Loss | $ 37,112 | |||||||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 39,800 | $ 61,100 | ||||||||||||
Impairment charges | $ 0 | $ 46,867 | 148,551 | |||||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 3,100 | |||||||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | $ 5,000 | |||||||||||||
|
Income Taxes - Schedule of Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Unrecognized Tax Benefits: | |||
Beginning balance | $ 21,133 | $ 17,849 | $ 37,575 |
Additions based on tax positions related to the current year | 3,093 | 5,862 | 4,596 |
Additions for tax positions of prior years (1) | 1,290 | 0 | 0 |
Reductions for tax positions of prior years | (9,369) | (280) | (14,569) |
Lapse of statute of limitations | (344) | (805) | (3,711) |
Settlements with tax authorities | (456) | (221) | (5,832) |
Cumulative Translation Adjustments and other | (53) | (1,272) | (210) |
Ending balance | $ 15,294 | $ 21,133 | $ 17,849 |
Long-Term Obligations - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 49,794 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 50,188 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 112,000 | |
Long-term debt | $ 211,982 | $ 243,288 |
Segment Information - Schedule of Segment Reporting Information By Segment (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | $ 282,106 | $ 286,816 | $ 268,630 | $ 283,073 | $ 288,636 | $ 290,227 | $ 282,628 | $ 310,240 | $ 1,120,625 | $ 1,171,731 | $ 1,225,034 |
Depreciation and amortization | 32,432 | 39,458 | 44,598 | ||||||||
Segment profit | 229,623 | 206,342 | 242,367 | ||||||||
Assets | 1,043,964 | 1,062,897 | 1,043,964 | 1,062,897 | 1,253,665 | ||||||
Payments to Acquire Property, Plant, and Equipment | 17,140 | 26,673 | 43,398 | ||||||||
Identification Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | 776,877 | 806,484 | 825,123 | ||||||||
Depreciation and amortization | 21,838 | 25,658 | 28,955 | ||||||||
Segment profit | 169,776 | 149,840 | 176,129 | ||||||||
Assets | 742,557 | 780,524 | 742,557 | 780,524 | 882,440 | ||||||
Payments to Acquire Property, Plant, and Equipment | 11,511 | 18,732 | 28,774 | ||||||||
Workplace Safety | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | 343,748 | 365,247 | 399,911 | ||||||||
Depreciation and amortization | 4,555 | 6,772 | 7,919 | ||||||||
Segment profit | 59,847 | 56,502 | 66,238 | ||||||||
Assets | 160,172 | 167,797 | 160,172 | 167,797 | 239,848 | ||||||
Payments to Acquire Property, Plant, and Equipment | 5,446 | 3,970 | 10,580 | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 6,039 | 7,028 | 7,724 | ||||||||
Assets | $ 141,235 | $ 114,576 | 141,235 | 114,576 | 131,377 | ||||||
Payments to Acquire Property, Plant, and Equipment | $ 183 | $ 3,971 | $ 4,044 |
Segment Information - Schedule of Revenues and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 282,106 | $ 286,816 | $ 268,630 | $ 283,073 | $ 288,636 | $ 290,227 | $ 282,628 | $ 310,240 | $ 1,120,625 | $ 1,171,731 | $ 1,225,034 |
Long-Lived Assets | 592,121 | 613,301 | 592,121 | 613,301 | 740,189 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 663,511 | 677,401 | 675,771 | ||||||||
Long-Lived Assets | 376,045 | 389,150 | 376,045 | 389,150 | 425,733 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 519,579 | 559,649 | 615,974 | ||||||||
Long-Lived Assets | 216,076 | 224,151 | 216,076 | 224,151 | 314,456 | ||||||
Intersegment Elimination [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | (62,465) | (65,319) | (66,711) | ||||||||
Long-Lived Assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income per Common Share - Additional Informations (Detail) - shares |
12 Months Ended | |
---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
|
Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from computations of diluted earnings per share | 3,172,755 | 3,568,264 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 17,253 | $ 19,029 | $ 17,344 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2016 | 16,243 | ||
2017 | 14,956 | ||
2018 | 12,169 | ||
2019 | 8,708 | ||
2020 | 7,195 | ||
Thereafter | 15,497 | ||
Total future minimum payments due | $ 74,768 |
Fair Value Measurements - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 15,972 | $ 16,041 |
Total Liabilities | 738 | 1,280 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 13,834 | 15,356 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 13,834 | 15,356 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 2,138 | 685 |
Total Liabilities | 738 | 1,280 |
Fair Value, Inputs, Level 2 [Member] | Prepaid expenses and other current assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 2,138 | 685 |
Fair Value, Inputs, Level 2 [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 738 | $ 1,280 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $ 429,871 | $ 433,199 | $ 515,004 |
Goodwill, Impairment Loss | 37,112 | ||
Other Intangible Assets, Net | 26,194 | ||
Other Intangible Assets, Estimated Fair Value | 19,543 | ||
Impairment of Other Intangible Assets (Excluding Goodwill) | 6,651 | 6,651 | |
Property, Plant and Equipment, Net | 102,444 | 111,214 | |
WPS APAC [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 26,246 | ||
WPS Americas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 10,866 | ||
Global PeopleID [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 193,689 | ||
Goodwill, Estimated Fair Value | 93,277 | ||
Goodwill, Impairment Loss | 100 | ||
Identification Solutions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 384,529 | 382,786 | 412,289 |
Goodwill, Impairment Loss | 0 | ||
Impairment of Other Intangible Assets (Excluding Goodwill) | 48,139 | ||
Workplace Safety | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $ 45,342 | 50,413 | $ 102,715 |
Goodwill, Impairment Loss | $ 37,112 |
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Restructuring Charges | |||
Restructuring charges | $ 0 | $ 16,821 | $ 15,012 |
Restructuring - Restructuring Reserve Roll Forward (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 0 | $ 16,821 | $ 15,012 |
Derivatives and Hedging Activities - Additional Information (Detail) € in Thousands, £ in Thousands, $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jul. 31, 2016
USD ($)
|
Jul. 31, 2015
USD ($)
|
Jul. 31, 2014
USD ($)
|
Jul. 31, 2016
GBP (£)
|
Jul. 31, 2015
EUR (€)
|
May 13, 2010
EUR (€)
|
|
Derivatives, Fair Value [Line Items] | ||||||
Derivative maturity | 18 months | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |||||
Reclassification adjustment for (gains) losses included in net income | $ 196 | $ (1,325) | $ (147) | |||
Accumulated other comprehensive (loss) income | (54,745) | (45,034) | 64,156 | |||
Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 186,093 | 139,300 | ||||
Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative maturity | 18 months | |||||
Cash Flow Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 34,540 | 33,223 | ||||
Not designated as hedging Instruments [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 2,162 | 1,705 | ||||
Derivative Liability, Fair Value, Gross Liability | 68 | 543 | ||||
Asset Derivatives | 1,873 | 168 | ||||
Designated as hedging instruments [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 117,558 | 122,251 | ||||
Asset Derivatives | 265 | 518 | ||||
Designated as hedging instruments [Member] | Net Investment Hedging [Member] | GBP-denominated interco debt [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net investment hedges to hedge portions of net investment | £ | £ 25,000 | |||||
Foreign exchange contracts | 6,887 | 889 | ||||
Designated as hedging instruments [Member] | Net Investment Hedging [Member] | EUR denominated unsecured debt [Domain] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net investment hedges to hedge portions of net investment | € | € 75,000 | |||||
Accumulated other comprehensive (loss) income | 11,140 | € 12,512 | ||||
Foreign exchange contracts | 1,372 | 18,008 | (660) | |||
Designated as hedging instruments [Member] | Cash Flow Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Reclassification adjustment for (gains) losses included in net income | (199) | (1,325) | $ (147) | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (761) | 297 | ||||
Other current liabilities [Member] | Not designated as hedging Instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 68 | 543 | ||||
Prepaid expenses and other current assets [Member] | Not designated as hedging Instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Asset Derivatives | 1,873 | 168 | ||||
Cash Flow Hedging [Member] | Other current liabilities [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 670 | 737 | ||||
Cash Flow Hedging [Member] | Prepaid expenses and other current assets [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Asset Derivatives | 265 | 518 | ||||
Net Investment Hedging [Member] | Other current liabilities [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||||
Net Investment Hedging [Member] | Prepaid expenses and other current assets [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Asset Derivatives | $ 0 | $ 0 |
Derivatives and Hedging Activities - Fair Values of Derivative Instruments in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands |
Jul. 31, 2016 |
Jul. 31, 2015 |
---|---|---|
Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | $ 265 | $ 518 |
Liability Derivatives | 117,558 | 122,251 |
Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 1,873 | 168 |
Liability Derivatives | 68 | 543 |
Prepaid expenses and other current assets [Member] | Foreign exchange contract [Member] | Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 1,873 | 168 |
Other current liabilities [Member] | Foreign exchange contract [Member] | Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | 68 | 543 |
Cash flow hedging [Member] | Prepaid expenses and other current assets [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 265 | 518 |
Cash flow hedging [Member] | Other current liabilities [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | 670 | 737 |
Net investment hedging [Member] | Prepaid expenses and other current assets [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 0 | 0 |
Net investment hedging [Member] | Prepaid expenses and other current assets [Member] | Foreign currency denominated debt [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 0 | 0 |
Net investment hedging [Member] | Other current liabilities [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | 0 | 0 |
Net investment hedging [Member] | Long term obligations less current maturities [Member] | Foreign currency denominated debt [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | $ 116,888 | $ 121,514 |
Discontinued Operations Operating Results, Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2015 |
[3] | Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||||
Net sales (1) | $ 0 | $ 179,050 | |||||||||||||
(Loss) earnings from discontinued operations (2) | (1,201) | 6,715 | |||||||||||||
Income tax expense | (288) | (3,299) | |||||||||||||
Loss on sale of discontinued operations (3) | (487) | [1] | (1,602) | ||||||||||||
Income tax benefit on sale of discontinued operations (4) | 61 | [2] | 364 | ||||||||||||
(Loss) earnings from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (1,915) | $ 0 | (1,915) | $ 2,178 | ||||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |||||||||||||||
Discontinued Operations, Accumulated Other Comprehensive Income Reclassified to Earnings | $ 34,697 | ||||||||||||||
|
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2016 |
Oct. 31, 2015 |
Jul. 31, 2015 |
Apr. 30, 2015 |
Jan. 31, 2015 |
Oct. 31, 2014 |
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|||||||||||||||
Net sales | $ 282,106 | $ 286,816 | $ 268,630 | $ 283,073 | $ 288,636 | $ 290,227 | $ 282,628 | $ 310,240 | $ 1,120,625 | $ 1,171,731 | $ 1,225,034 | ||||||||||||||
Gross margin | 141,089 | 145,443 | 132,892 | 139,349 | 129,069 | 140,999 | 138,203 | 150,161 | 558,773 | 558,432 | 609,564 | ||||||||||||||
Operating income | 33,403 | [1] | 30,784 | [1] | 23,589 | [1] | 30,102 | [1] | (32,763) | [1] | 24,285 | [1] | 16,811 | [1] | 26,973 | [1] | 117,878 | 35,306 | (41,211) | ||||||
Earnings from continuing operations | $ 25,136 | $ 20,981 | $ 15,290 | $ 18,703 | (39,394) | 17,213 | 11,584 | 15,499 | 80,110 | 4,902 | (48,146) | ||||||||||||||
(Loss) earnings from discontinued operations, net of income taxes | $ 0 | [2] | $ 0 | $ 0 | $ (1,915) | 0 | (1,915) | 2,178 | |||||||||||||||||
Class A Nonvoting Common Stock [Member] | |||||||||||||||||||||||||
Earnings from continuing operations | $ 80,110 | $ 4,902 | $ (48,238) | ||||||||||||||||||||||
Net earnings (loss) from continuing operations per Class A Common Share: | |||||||||||||||||||||||||
Earnings (loss) from continuing operations, per basic share | $ 0.50 | [3] | $ 0.42 | [3] | $ 0.30 | [3] | $ 0.37 | [3] | $ (0.77) | [3] | $ 0.34 | [3] | $ 0.23 | [3] | $ 0.30 | [3] | $ 1.59 | $ 0.10 | $ (0.93) | ||||||
Diluted (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.49 | [3] | $ 0.42 | [3] | $ 0.30 | [3] | $ 0.37 | [3] | (0.77) | [3] | 0.33 | [3] | 0.23 | [3] | 0.30 | [3] | 1.58 | 0.10 | (0.93) | ||||||
Earnings (loss) from discontinued operations per Class A Common Share: | |||||||||||||||||||||||||
Basic (in dollars per share) | 0.00 | [3] | 0.00 | [3] | 0.00 | [3] | (0.03) | [3] | 0.00 | (0.04) | 0.04 | ||||||||||||||
Diluted (in dollars per share) | $ 0.00 | [3] | $ 0.00 | [3] | $ 0.00 | [3] | $ (0.04) | [3] | $ 0.00 | $ (0.04) | $ 0.04 | ||||||||||||||
|
Schedule II Valuation of Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 31, 2016 |
Jul. 31, 2015 |
Jul. 31, 2014 |
|
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | $ 3,585 | $ 3,069 | $ 5,093 |
Additions — Charged to expense | 1,904 | 1,954 | 779 |
Reclassified to continuing operations | 0 | 0 | 31 |
Deductions - written off | (345) | (1,438) | (2,834) |
Balances at end of period | 5,144 | 3,585 | 3,069 |
Inventory Valuation Reserve [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 13,269 | 12,259 | 11,317 |
Additions — Charged to expense | 4,950 | 3,017 | 3,100 |
Reclassified to continuing operations | 0 | 0 | 461 |
Deductions - written off | (3,136) | (2,007) | (2,619) |
Balances at end of period | 15,083 | 13,269 | 12,259 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 39,922 | 37,409 | 37,142 |
Additions — Charged to expense | 2,614 | 8,111 | 10,182 |
Deductions - written off | (4,544) | (5,598) | (9,915) |
Balances at end of period | $ 37,992 | $ 39,922 | $ 37,409 |
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