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Stock-Based Compensation | 3 Months Ended
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Oct. 31, 2018
Share-based Arrangements with Employees and Nonemployees [Abstract] |
Stock-Based Compensation | 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 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. 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 over a three-year service 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” stock options, generally expire 10 years from the date of grant. Restricted and unrestricted shares and 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 or as determined using a Monte Carlo simulation. Shares issued under the plan are referred to herein as either "service-based" or "performance-based" restricted shares and RSUs. The service-based RSUs granted under the plan generally vest over a three-year service 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. As of October 31, 2018, the Company has reserved 2,682,634 shares of Class A Nonvoting Common Stock for outstanding stock options, RSUs, and restricted shares and 3,655,246 shares of Class A Nonvoting Common Stock remain for future issuance of stock options, RSUs, and restricted and unrestricted shares under the active plan. The Company uses treasury stock or will issue new Class A Nonvoting Common Stock to deliver shares under the plan. 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 three months ended October 31, 2018 and 2017, was $4,965 ($4,319 net of taxes) and $3,744 ($2,321 net of taxes), respectively. As of October 31, 2018, total unrecognized compensation cost related to stock-based compensation awards was $16,245 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.1 years. The Company has estimated the fair value of its service-based stock option awards granted during the three months ended October 31, 2018 and 2017, using the Black-Scholes option valuation model. The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table:
|  | Three months ended October 31,
Black-Scholes Option Valuation Assumptions |  | 2018 |  | 2017
Expected term (in years) |  | 6.20 |  |  | 6.07 |
Expected volatility |  | 25.83 | % |  | 28.19 | %
Expected dividend yield |  | 2.71 | % |  | 2.72 | %
Risk-free interest rate |  | 3.01 | % |  | 1.96 | %
Weighted-average market value of underlying stock at grant date |  | $ | 43.96 |  |  | $ | 36.85 |
Weighted-average exercise price |  | $ | 43.96 |  |  | $ | 36.85 |
Weighted-average fair value of options granted during the period |  | $ | 9.70 |  |  | $ | 7.96 |
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. A summary of stock option activity under the Company’s share-based compensation plans for the three months ended October 31, 2018, is presented below:
Service-Based Options |  | Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at July 31, 2018 |  | 2,504,633 |  | $ | 28.23 |  |  |  |  |
New grants |  | 276,238 |  | 43.96 |  |  |  |  |
Exercised |  | (551,919) |  | 26.88 |  |  |  |  |
Forfeited or expired |  | (5,407) |  | 36.24 |  |  |  |  |
Outstanding at October 31, 2018 |  | 2,223,545 |  | $ | 30.50 |  |  | 6.5 |  | $ | 23,842 |
Exercisable at October 31, 2018 |  | 1,621,317 |  | $ | 27.06 |  |  | 5.6 |  | $ | 22,340 |
There were 1,621,317 and 2,229,350 options exercisable with a weighted average exercise price of $27.06 and $27.39 at October 31, 2018 and 2017, respectively. The total fair value of stock options vested during the three months ended October 31, 2018 and 2017, was $2,798 and $2,974, respectively. The cash received from the exercise of options during the three months ended October 31, 2018 and 2017, was $12,138 and $3,249. The tax benefit from the exercise of options during the three months ended October 31, 2018 and 2017, was $2,356 and $478, respectively. The total intrinsic value of options exercised during the three months ended October 31, 2018 and 2017, based upon the average market price at the time of exercise during the period, was $9,423 and $1,257, respectively. The following tables summarize the RSU activity under the Company's share-based compensation plans for the three months ended October 31, 2018:
Service-Based RSUs |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding at July 31, 2018 |  | 342,856 |  |  | $ | 29.05 |
New grants |  | 76,356 |  |  | 44.04 |
Vested |  | (111,194 | ) |  | 28.15 |
Forfeited |  | (7,339 | ) |  | 29.97 |
Outstanding at October 31, 2018 |  | 300,679 |  |  | $ | 33.16 |
The service-based RSUs granted during the three months ended October 31, 2017, had a weighted-average grant date fair value of $35.14. The total fair value of service-based RSUs vested during the three months ended October 31, 2018 and 2017, was $4,795 and $4,736, respectively.
Performance-Based RSUs |  | Shares |  | Weighted Average Grant Date Fair Value
Outstanding at July 31, 2018 |  | 108,097 |  |  | $ | 32.57 |
New grants |  | 50,313 |  |  | 50.70 |
Vested |  | — |  |  | — |
Forfeited |  | — |  |  | — |
Outstanding at October 31, 2018 |  | 158,410 |  |  | $ | 38.33 |
The performance-based RSUs granted during the three months ended October 31, 2017, had a weighted-average grant date fair value of $33.12. The aggregate intrinsic value of unvested service-based and performance-based RSUs outstanding at October 31, 2018 and expected to vest was $18,497.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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