Stock-Based Compensation (Tables)
 6 Months Ended
Jan. 31, 2016
Stock-Based Compensation  
Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

January 31,

 

January 31,

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$
121,000

 

$
63,000

 

$
200,000

 

$
162,000

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling

 
248,000

 
120,000

 
438,000

 
306,000

 

General and administrative

 
1,478,000

 
1,223,000

 
2,903,000

 
2,502,000

 

Research and development

 
28,000

 
14,000

 
54,000

 
31,000

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 
1,754,000

 
1,357,000

 
3,395,000

 
2,839,000

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation before income taxes

 
1,875,000

 
1,420,000

 
3,595,000

 
3,001,000

 

Income tax benefits

 
(661,000

)
(507,000

)
(1,274,000

)
(1,046,000

)

 

 

 

 

 

 

 

 

 

 

Total stock-based compensation expense, net of tax

 

$
1,214,000

 

$
913,000

 

$
2,321,000

 

$
1,955,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of nonvested stock award activity

 

 

 

 

Weighted

 

 

 

Number of

 

Average

 

 

 

Shares

 

Fair Value

 

 

 

 

 

 

 

Nonvested stock awards at July 31, 2015

 
343,519

 

$
32.77

 

Granted

 
162,265

 
54.25

 

Canceled

 
(1,823

)
37.57

 

Vested

 
(163,297

)
27.99

 

 

 

 

 

 

 

Nonvested stock awards at January 31, 2016

 
340,664

 

$
45.27

 

 

 

 

 

 

 

 

 

Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model

Weighted-Average

 

 

 

 

 

Black-Scholes Option

 

Six Months Ended

 

Six Months Ended

 

Valuation Assumptions

 

January 31, 2016

 

January 31, 2015

 

 

 

 

 

 

 

Dividend yield

 
0.22 

%
0.25 

%

Expected volatility (1)

 
55.90 

%
33.90 

%

Risk-free interest rate (2)

 
1.41 

%
1.55 

%

Expected lives (in years) (3)

 
5.00 

 
5.00 

 

 

(1)

Volatility was based on historical closing prices of our common stock.

(2)

The U.S. Treasury rate based on the expected life at the date of grant.

(3)

Based on historical exercise behavior.

 

Summary of stock option activity

 

 

 

 

Weighted

 

 

 

Number of

 

Average

 

 

 

Shares

 

Exercise Price

 

Outstanding at July 31, 2015

 
107,500 

 

$
25.73 

 

Granted

 
15,000 

 
55.36 

 

 

 

 

 

 

 

Outstanding at January 31, 2016

 
122,500 

 

$
29.36 

 

 

 

 

 

 

 

 

Exercisable at July 31, 2015

 
45,000 

 

$
20.32 

 

 

 

 

 

 

 

 

Exercisable at January 31, 2016

 
80,834 

 

$
22.72