
	July 31, 2020						July 31, 2019
	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

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 $0.01665 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 $0.01665 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 $0.833 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 $0.833 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.


	Deferred Compensation		Shares Held in Rabbi Trust, at cost		Total
Balances at July 31, 2017	$	8,124	$	(8,124)	$	—
Shares at July 31, 2017	314,082		314,082
Sale of shares at cost	$	(977)	$	977	$	—
Purchase of shares at cost	1,075		(1,075)		—
Balances at July 31, 2018	$	8,222	$	(8,222)	$	—
Shares at July 31, 2018	299,916		299,916
Sale of shares at cost	$	(928)	$	928	$	—
Purchase of shares at cost	1,212		(1,212)		—
Balances at July 31, 2019	$	8,506	$	(8,506)	$	—
Shares at July 31, 2019	285,533		285,533
Sale of shares at cost	$	(460)	$	460	$	—
Purchase of shares at cost	1,293		(1,293)		—
Balances at July 31, 2020	$	9,339	$	(9,339)	$	—
Shares at July 31, 2020	292,329		292,329

The Company has two deferred compensation plans, the Executive Deferred Compensation Plan and the Director Deferred Compensation Plan that allow for compensation to be deferred into either the Company's Class A Nonvoting Common Stock or into other investment funds. Neither plan allows funds to be transferred between the Company's Class A Nonvoting Common Stock and the other investment funds.

At July 31, 2020, the deferred compensation balance in stockholders’ equity 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.

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. Certain awards may be subject to pre-established performance goals.

As of July 31, 2020, the Company has reserved 1,554,402 shares of Class A Nonvoting Common Stock for outstanding stock options and RSUs and 3,348,834 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, 2020, 2019, and 2018, was $8,843 ($8,048 net of taxes), $12,092 ($10,628 net of taxes), and $9,980 ($7,485 net of taxes), respectively. As of July 31, 2020, total unrecognized compensation cost related to share-based compensation awards that are expected to vest was $9,334 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 1.8 years.

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 “time-based” options, generally expire 10 years from the date of grant.

The Company has estimated the fair value of its time-based stock option awards granted during the fiscal years ended July 31, 2020, 2019, and 2018, using the Black-Scholes option valuation model. The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table:


Black-Scholes Option Valuation Assumptions	2020			2019			2018
Expected term (in years)	6.20			6.20			6.07
Expected volatility	26.07		%	26.05		%	28.19		%
Expected dividend yield	2.63		%	2.71		%	2.72		%
Risk-free interest rate	1.64		%	3.01		%	1.96		%
Weighted-average market value of underlying stock at grant date	$	54.05		$	43.96		$	36.85
Weighted-average exercise price	$	54.05		$	43.96		$	36.85
Weighted-average fair value of options granted during the period	$	10.63		$	9.70		$	7.96


Time-Based Options	Option Price					Options Outstanding		Weighted Average Exercise Price
Balance as of July 31, 2019	$	19.96	—	$43.98	1,594,716	$	31.63
New grants	54.05					247,297		54.05
Exercised	19.96		—	43.98	(556,143)	27.21
Forfeited	22.66		—	54.05	(12,488)	39.59
Balance as of July 31, 2020	$	19.96	—	$54.05	1,273,382	$	37.84

The total fair value of options vested during the fiscal years ended July 31, 2020, 2019, and 2018, was $2,800, $2,864, and $3,006, respectively. The total intrinsic value of options exercised during the fiscal years ended July 31, 2020, 2019, and 2018, was $14,692, $20,969, and $6,208, respectively.

There were 776,273, 1,025,811, and 1,722,229 options exercisable with a weighted average exercise price of $31.50, $27.06, and $26.82 at July 31, 2020, 2019, and 2018, respectively. The cash received from the exercise of stock options during the fiscal years ended July 31, 2020, 2019, and 2018, was $5,511, $23,466, and $12,099, respectively. The tax benefit on options exercised during the fiscal years ended July 31, 2020, 2019, and 2018, was $3,673, $5,242, and $1,893, respectively.


	Options Outstanding						Options Outstanding and Exercisable
Range of Exercise Prices	Number of Shares Outstanding at July 31, 2020	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price		Shares Exercisable at July 31, 2020	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price
$19.96 - $29.99	265,600	4.1	$	22.07	265,600	4.1	$	22.07
$30.00 - $39.99	519,870	6.2	35.36		433,576	6.0	35.07
$40.00 - $54.05	487,912	8.7	49.06		77,097	8.2	43.96
Total	1,273,382	6.7	$	37.84	776,273	5.5	$	31.50

As of July 31, 2020, 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 $11,964 and $10,940, respectively.

RSUs issued under the plan have a grant date fair value equal to the fair market value of the underlying stock at the date of grant. Shares issued under the plan are referred to herein as either "time-based" or "performance-based" RSUs. The time-based 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. The performance-based RSUs granted under the plan vest at the end of a three-year service period provided specified financial performance metrics are met.


Time-Based RSUs	Shares	Weighted Average Grant Date Fair Value
Balance as of July 31, 2019	188,638	$	38.15
New grants	76,358	53.38
Vested	(107,187)	35.49
Forfeited	(2,849)	43.73
Balance as of July 31, 2020	154,960	$	47.39

The time-based RSUs granted during the fiscal year ended July 31, 2019, had a weighted-average grant-date fair value of $44.20. The total fair value of time-based RSUs vested during the years ended July 31, 2020 and 2019, was $9,776 and $9,859, respectively.


Performance-Based RSUs	Shares	Weighted Average Grant Date Fair Value
Balance as of July 31, 2019	158,410	$	38.33
New grants (1)	71,921	75.00


Vested	(87,928)	32.03
Forfeited	(16,343)	52.16
Balance as of July 31, 2020	126,060	$	50.61

(1) Includes 32,975 shares resulting from the payout of performance-based RSUs granted in fiscal year 2018 due to achievement of performance metrics exceeding the target payout.

The performance-based RSUs granted during the fiscal year ended July 31, 2020, had a weighted-average grant-date fair value determined by a third-party valuation involving the use of a Monte Carlo simulation. The performance-based RSUs granted during the fiscal year ended July 31, 2019, had a weighted-average grant-date fair value of $50.70. The aggregate intrinsic value of unvested time-based and performance-based RSUs outstanding at July 31, 2020 and 2019, and expected to vest, was $14,013 and $17,953, respectively.