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Stockholder's Investments | 12 Months Ended
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Jul. 31, 2014
Equity [Abstract] |
Stockholder's Investments | Stockholder's Investment Information as to the Company’s capital stock at July 31, 2014 and 2013 is as follows:
|  | July 31, 2014 |  | July 31, 2013
|  | 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 $.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 Cumulative Preferred Stock, 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, 2014, 2013, and 2012:
|  | Unearned Restricted Stock |  | Deferred Compensation |  | Shares Held in Rabbi Trust, at cost |  | Total
Balances at July 31, 2011 |  | $ | (5,362 | ) |  | $ | 12,093 |  |  | $ | (11,595 | ) |  | $ | (4,864 | )
Shares at July 31, 2011 |  |  |  | 560,078 |  |  | 560,078 |  |  |
Sale of shares at cost |  | — |  |  | (1,407 | ) |  | 1,368 |  |  | (39 | )
Purchase of shares at cost |  | — |  |  | 924 |  |  | (924 | ) |  | — |
Amortization of restricted stock |  | 1,599 |  |  | — |  |  | — |  |  | 1,599 |
Balances at July 31, 2012 |  | (3,763 | ) |  | 11,610 |  |  | (11,151 | ) |  | (3,304 | )
Shares at July 31, 2012 |  |  |  | $ | 517,105 |  |  | $ | 517,105 |  |  |
Sale of shares at cost |  | $ | — |  |  | (1,461 | ) |  | 1,419 |  |  | $ | (42 | )
Purchase of shares at cost |  | — |  |  | 891 |  |  | (891 | ) |  | — |
Forfeitures of restricted stock |  | 838 |  |  | — |  |  | — |  |  | 838 |
Amortization of restricted stock |  | 1,788 |  |  | — |  |  | — |  |  | 1,788 |
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 |  |  |
Deferred Compensation Plans Prior to 2002, all Brady Corporation deferred compensation was invested in the Company’s Class A Nonvoting Common Stock. In 2002, the Company adopted a new deferred compensation plan for both executives and directors which allowed investing in other investment funds in addition to the Company’s Class A Nonvoting Common Stock. Under this plan, participants were allowed to transfer funds between the Company’s Class A Nonvoting Common Stock and the other investment funds. On May 1, 2006 the plan was amended with the provision 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. At July 31, 2014, 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 plan prior to 2002 and the investment at the cost of shares held in the Company’s Class A Nonvoting Common Stock for the plan subsequent to 2002, adjusted for the plan amendments on May 1, 2006 and May 21, 2014. 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. 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 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 also grants stock options to certain executives and key management employees that vest upon meeting certain financial performance conditions over the vesting schedule described above. These options are referred to herein as “performance-based” options. Performance-based stock options expire 10 years from 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 restricted shares awarded in fiscal 2008 were amended in fiscal 2011 to allow for vesting after either a five-year period or a seven-year period based upon both performance and service conditions. The restricted shares awarded in fiscal 2011 vest ratably at the end of years 3, 4 and 5 upon meeting certain performance and service conditions. These shares are referred to herein as “performance-based restricted shares.” Restricted shares awarded in fiscal 2013 vest at the end of a three-year period based upon service conditions. These shares are referred to herein as “cliff-vested restricted shares.” The restricted shares awarded in fiscal 2014 were issued to the Interim President and Chief Executive Officer in recognition of the increased duties upon appointment and are service-based. The shares vest upon the earlier of the end of the individual's term as Interim President and CEO or the Board appointment of a permanent President and CEO. These shares are referred to herein as “service-based cliff-vested restricted shares.” The RSUs granted in fiscal 2014 vest ratably over a three-year period, with one-third vesting one year after the grant date and one-third additional in each of the succeeding two years. The Company also grants RSUs to certain executives and key management employees that vest upon meeting certain financial performance conditions over a specified vesting period, referred to herein as “performance-based RSUs.” The performance-based RSUs granted in fiscal 2013 vest over a two-year period upon meeting both performance and service conditions. As of July 31, 2014, the Company has reserved 4,389,117 shares of Class A Nonvoting Common Stock for outstanding stock options, RSUs and restricted and unrestricted shares and 4,022,854 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. 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. Total stock-based compensation expense recognized by the Company during the years ended July 31, 2014, 2013, and 2012 was $5,214 ($3,232 net of taxes), $1,736 ($1,059 net of taxes), and $9,735 ($5,939 net of taxes), respectively. The increase in expense from fiscal 2013 to fiscal 2014 was due to the reversal of stock-based compensation expense of $7,883 in fiscal 2013 primarily related to performance awards that would not meet the financial performance conditions to vest. As of July 31, 2014, total unrecognized compensation cost related to share-based compensation awards that are expected to vest was $5,507 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 1.3 years. The following is a summary of stock option activity for the fiscal years ended July 31, 2014, 2013, and 2012:
|  | Option Price |  | Options Outstanding |  | Weighted Average Exercise Price
Balance as of July 31, 2011 |  | $ | 13.31 |  | — | $40.37 |  | 5,726,017 |  |  | $ | 29.24 |
Options granted |  | 27.00 |  | — | 33.54 |  | 1,212,450 |  |  | 27.91 |
Options exercised |  | 13.31 |  | — | 29.78 |  | (266,991 | ) |  | 20.21 |
Options cancelled |  | 16.00 |  | — | 38.31 |  | (417,725 | ) |  | 31.16 |
Balance as of July 31, 2012 |  | $ | 13.31 |  | — | $40.37 |  | 6,253,751 |  |  | $ | 29.24 |
Options granted |  | 30.21 |  | — | 36.25 |  | 828,450 |  |  | 30.58 |
Options exercised |  | 13.31 |  | — | 31.54 |  | (1,080,089 | ) |  | 22.79 |
Options cancelled |  | 16.39 |  | — | 38.31 |  | (895,527 | ) |  | 30.02 |
Balance as of July 31, 2013 |  | $ | 17.23 |  | — | $40.37 |  | 5,106,585 |  |  | $ | 30.68 |
Options granted |  | 29.28 |  | — | 31.07 |  | 375,272 |  |  | 30.98 |
Options exercised |  | 17.33 |  | — | 30.21 |  | (490,507 | ) |  | 26.45 |
Options cancelled |  | 20.95 |  | — | 38.31 |  | (787,090 | ) |  | 32.71 |
Balance as of July 31, 2014 |  | $ | 17.23 |  | — | $40.37 |  | 4,204,260 |  |  | $ | 30.82 |
The total fair value of options vested during the fiscal years ended July 31, 2014, 2013, and 2012 was $6,605, $11,086, and $8,016, respectively. The total intrinsic value of options exercised during the fiscal years ended July 31, 2014, 2013, and 2012 was $2,452, $10,728, and $3,096, respectively. There were 3,004,348, 3,311,043, and 3,503,963 options exercisable with a weighted average exercise price of $31.15, $31.46, and $29.69 at July 31, 2014, 2013, and 2012, respectively. The cash received from the exercise of options during the fiscal years ended July 31, 2014, 2013, and 2012 was $12,113, $20,324, and $3,864, respectively. The tax benefit on options exercised during the fiscal years ended July 31, 2014, 2013, and 2012 was $952, $1,964, and $777, respectively. The following table summarizes information about stock options outstanding at July 31, 2014:
|  | Options Outstanding |  | Options Outstanding and Exercisable
Range of Exercise Prices |  | Number of Shares Outstanding at July 31, 2014 |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price |  | Shares Exercisable at July 31, 2014 |  | Weighted Average Remaining Contractual Life (in years) |  | Weighted Average Exercise Price
$17.00 - $27.99 |  | 664,383 |  |  | 6.2 |  | $ | 25.00 |  |  | 504,258 |  |  | 5.8 |  | $ | 24.32 |
$28.00 - $37.99 |  | 2,956,377 |  |  | 5.7 |  | 30.66 |  |  | 1,916,590 |  |  | 4.4 |  | 30.77 |
$38.00 - $40.99 |  | 583,500 |  |  | 2.8 |  | 38.26 |  |  | 583,500 |  |  | 2.8 |  | 38.26 |
Total |  | 4,204,260 |  |  | 5.4 |  | 30.82 |  |  | 3,004,348 |  |  | 4.3 |  | $ | 31.15 |
As of July 31, 2014, 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 $1,145 and $1,145, respectively. The following tables summarize the RSU and restricted share activity for the fiscal years ended July 31, 2014, 2013, and 2012:
Service-Based RSUs and Restricted Shares |  | Shares |  | Weighted Average Grant Date Fair Value
Balance as of July 31, 2012 |  | — |  |  | $ | — |
New grants |  | 5,000 |  |  | 32.99 |
Vested |  | — |  |  | — |
Forfeited |  | — |  |  | — |
Balance as of July 31, 2013 |  | 5,000 |  |  | $ | 32.99 |
New grants |  | 108,055 |  |  | 30.93 |
Vested |  | — |  |  | — |
Forfeited |  | (8,198 | ) |  | 31.05 |
Balance as of July 31, 2014 |  | 104,857 |  |  | $ | 31.02 |
Performance-Based RSUs and Restricted Shares |  | Shares |  | Weighted Average Grant Date Fair Value
Balance as of July 31, 2012 |  | 310,000 |  |  | $ | 31.38 |
New grants |  | 10,000 |  |  | 30.21 |
Vested |  | (33,333 | ) |  | 28.35 |
Forfeited |  | (55,000 | ) |  | 32.83 |
Balance as of July 31, 2013 |  | 231,667 |  |  | $ | 31.43 |
New grants |  | — |  |  | — |
Vested |  | (35,001 | ) |  | 28.35 |
Forfeited |  | (116,666 | ) |  | 31.61 |
Balance as of July 31, 2014 |  | 80,000 |  |  | $ | 32.50 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 + Details
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