Cantel Medical (CMD) 10-Q 1 Jun 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2018	May 31, 2018
Document and Entity Information
Entity Registrant Name	CANTEL MEDICAL CORP
Entity Central Index Key	19,446
Document Type	10-Q
Document Period End Date	Apr. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,709,335
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 51,916	$ 36,584
Accounts receivable, net of allowance for doubtful accounts of $1,505 and $1,808	114,146	110,656
Inventories, net	113,109	98,724
Prepaid expenses and other current assets	17,097	11,407
Income taxes receivable	4,184	0
Total current assets	300,452	257,371
Property and equipment, net	100,759	88,338
Intangible assets, net	145,552	124,512
Goodwill	366,804	311,445
Other assets	8,404	4,707
Total assets	921,971	786,373
Current liabilities:
Accounts payable	36,628	27,469
Compensation payable	28,586	27,468
Accrued expenses	27,930	23,393
Deferred revenue	30,183	25,282
Income taxes payable	0	3,167
Total current liabilities	123,327	106,779
Long-term debt	169,000	126,000
Deferred income taxes	23,097	24,714
Other long-term liabilities	5,241	4,948
Total liabilities	320,665	262,441
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred Stock, par value $1.00 per share; authorized 1,000,000 shares; none issued	0	0
Common Stock, par value $0.10 per share. Authorized 75,000,000 shares; issued 46,239,890 shares and outstanding 41,709,335 shares as of April 30, 2018; issued 46,194,370 shares and outstanding 41,728,934 shares as of July 31, 2017	4,046	4,619
Additional paid-in capital	183,551	174,602
Retained earnings	478,197	407,590
Accumulated other comprehensive income (loss)	(5,292)	(9,900)
Treasury Stock, at cost; 4,530,555 shares as of April 30, 2018; 4,465,440 shares as of July 31, 2017	(59,196)	(52,979)
Total stockholders’ equity	601,306	523,932
Total liabilities and stockholders' equity	$ 921,971	$ 786,373

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,505	$ 1,808
Preferred Stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, authorized (in shares)	1,000,000	1,000,000
Preferred Stock, issued (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common Stock, authorized (in shares)	75,000,000	75,000,000
Common Stock, issued (in shares)	46,239,890	46,194,370
Common Stock, outstanding (in shares)	41,709,335	41,728,934
Treasury Stock (in shares)	4,530,555	4,465,440

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Net sales
Product sales	$ 189,861	$ 170,073	$ 564,310	$ 500,878
Product service	27,407	22,040	78,758	63,777
Total net sales	217,268	192,113	643,068	564,655
Cost of sales
Product sales	93,762	84,681	283,005	250,052
Product service	18,832	15,984	53,495	45,171
Total cost of sales	112,594	100,665	336,500	295,223
Gross profit	104,674	91,448	306,568	269,432
Expenses:
Selling	33,252	30,509	95,774	85,312
General and administrative	37,784	29,204	102,068	87,672
Research and development	6,571	4,291	17,543	13,328
Total operating expenses	77,607	64,004	215,385	186,312
Income from operations	27,067	27,444	91,183	83,120
Interest expense, net	1,498	1,084	3,822	3,303
Other income	0	0	(1,138)	0
Income before income taxes	25,569	26,360	88,499	79,817
Income taxes	6,833	8,849	14,346	25,436
Net income	$ 18,736	$ 17,511	$ 74,153	$ 54,381
Earnings per common share:
Basic (in dollars per share)	$ 0.45	$ 0.42	$ 1.78	$ 1.30
Diluted (in dollars per share)	0.45	0.42	1.77	1.30
Dividends declared per common share (in dollars per share)	$ 0	$ 0	$ 0.09	$ 0.07

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 18,736	$ 17,511	$ 74,153	$ 54,381
Other comprehensive income (loss):
Foreign currency translation	(6,538)	1,384	4,608	(2,549)
Total other comprehensive income (loss)	(6,538)	1,384	4,608	(2,549)
Comprehensive income	$ 12,198	$ 18,895	$ 78,761	$ 51,832

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Cash flows from operating activities
Net income	$ 74,153	$ 54,381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	12,816	10,922
Amortization	12,892	11,930
Stock-based compensation expense	7,033	6,983
Deferred income taxes	(7,499)	(97)
Other non-cash items, net	586	519
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable	892	(13,108)
Inventories	(9,791)	(2,334)
Prepaid expenses and other assets	(7,256)	(2,924)
Accounts payable and other liabilities	13,859	9,220
Income taxes	(7,682)	(2,108)
Net cash provided by operating activities	90,003	73,384
Cash flows from investing activities
Capital expenditures	(23,772)	(20,765)
Proceeds from disposal of fixed assets	0	43
Acquisition of businesses, net of cash acquired	(84,595)	(69,998)
Other, net	0	344
Net cash used in investing activities	(108,367)	(90,376)
Cash flows from financing activities
Borrowings under revolving credit facility	82,300	74,000
Repayments under revolving credit facility	(39,300)	(45,000)
Dividends paid	(3,546)	(2,921)
Purchases of treasury stock	(6,216)	(6,387)
Net cash provided by financing activities	33,238	19,692
Effect of exchange rate changes on cash and cash equivalents	458	(194)
Increase in cash and cash equivalents	15,332	2,506
Cash and cash equivalents at beginning of period	36,584	28,367
Cash and cash equivalents at end of period	$ 51,916	$ 30,873

Basis of Presentation

Basis of Presentation	9 Months Ended
	Apr. 30, 2018
Basis of Presentation
Basis of Presentation	Basis of Presentation Throughout this document, references to “Cantel,” “us,” “we,” “our,” and the “Company” are references to Cantel Medical Corp. and its subsidiaries, except where the context makes it clear the reference is to Cantel itself and not its subsidiaries. Cantel is a leading provider of infection prevention products and services in the healthcare market, specializing in the following reportable segments: Endoscopy, Water Purification and Filtration, Healthcare Disposables and Dialysis. See Note 14, “Reportable Segments.” Most of our equipment, consumables and supplies are used to help prevent the occurrence or spread of infections. The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles for interim financial reporting and the requirements of Form 10-Q and Rule 10.01 of Regulation S-X. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Annual Report of Cantel Medical Corp. on Form 10-K for the fiscal year ended July 31, 2017 (the “2017 Form 10-K”) and Management's Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein. The unaudited interim financial statements reflect all adjustments (of a normal and recurring nature) which management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for the interim periods are not necessarily indicative of the results for the full year. The Condensed Consolidated Balance Sheet at July 31, 2017 was derived from the audited Consolidated Balance Sheet of Cantel at that date. Subsequent Events We performed a review of events subsequent to April 30, 2018 through the date of issuance of the accompanying unaudited consolidated interim financial statements.

Accounting Pronouncements

Accounting Pronouncements	9 Months Ended
	Apr. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Accounting Pronouncements	Accounting Pronouncements Newly Adopted Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”). The new guidance requires an acquirer in a business combination to recognize a measurement-period adjustment during the period in which it determines the amount, and eliminates the requirement for an acquirer to account for measurement-period adjustments retrospectively. The acquirer must also disclose the amounts and reasons for adjustments to the provisional amounts. ASU 2015-16 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Accordingly, we adopted ASU 2015-06 on August 1, 2017. The adoption of ASU 2015-06 did not have a material impact on our financial position and results of operations. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory,” (“ASU 2015-11”). The new guidance requires companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Accordingly, we adopted ASU 2015-11 on August 1, 2017. The adoption of ASU 2015-11 did not have a material impact on our financial position and results of operations. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805)” (“ASU 2017-01”) to clarify the definition of a business. The revised guidance creates a more robust framework to use in determining whether a set of assets and activities is a business. The guidance will be applied on a prospective basis on or after the effective date. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. We early adopted ASU-2017-01 on August 1, 2017. The adoption of ASU 2017-01 did not have a material impact on our financial position and results of operations. Recently Issued Accounting Standards In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”) to allow for the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in December 2017. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. The adoption of ASU 2018-02 is not expected to have a significant impact on our financial position and results of operations. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”) to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2017-12 on our financial position and results of operations. In May 2017, the FASB issued ASU 2017-09, “Scope of Modification Accounting” (“ASU 2017-09”) to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2017-09 on our financial position and results of operations. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other” (“ASU 2017-04”) to simplify the test for goodwill impairment. The revised guidance eliminates the existing Step 2 of the goodwill impairment test which required an entity to compute the implied fair value of its goodwill at the testing date in order to measure the amount of the impairment charge when the fair value of the reporting unit failed Step 1 of the goodwill impairment test. Under the revised guidance, an entity would recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The guidance will be applied on a prospective basis on or after the effective date. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021) and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a significant impact on our financial position and results of operations. In February 2016, FASB issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. Early adoption is permitted as of the beginning of an interim or annual period. We are currently in the process of evaluating the impact of ASU 2016-02 on our financial position and results of operations. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which will supersede the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition” (“ASC 605”). ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606),” which defers the effective date of ASU 2014-09 by one year to fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2016-12”), which provided narrow scope improvements and practical expedients relating to ASU 2014-09. In preparation for our adoption of ASU 2014-09 and ASU 2016-12 on August 1, 2018, we have obtained representative samples of contracts and other forms of agreements with our customers in the United States and in our international locations and continue to evaluate the provisions contained therein in light of the five-step model specified by the new guidance. We continue to evaluate the impact of the new standard on certain common practices currently employed by us and by other health care manufacturers and service providers, such as multiple-element arrangements, deferred revenues, warranties, rebates and other pricing allowances. We anticipate adopting the standard using the modified retrospective method. There may be differences in timing of revenue recognition under the new standard compared to recognition under ASC 605.

Acquisitions

Acquisitions	9 Months Ended
	Apr. 30, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions Fiscal 2018 Aexis Medical On March 21, 2018, we purchased all of the issued and outstanding stock of Aexis Medical BVBA ("Aexis Medical"). Aexis Medical specializes in advanced software solutions focused on the tracking and monitoring of instrument reprocessing for hospitals and healthcare professionals. The total consideration was $22,158 , consisting of $20,308 up-front consideration (net of cash acquired), plus contingent consideration ranging from zero to a maximum of $1,850 , which is payable upon the achievement of certain purchase order targets through March 21, 2020. Aexis Medical is included in our Endoscopy segment. BHT Group On August 23, 2017, we purchased all of the issued and outstanding stock of BHT Hygienetechnik Holding GmbH (“BHT Group”), a leader in the German market in automated endoscope reprocessing and related equipment and services for total consideration (net of cash acquired), excluding acquisition related costs, of $60,787 . The BHT Group consists of a portfolio of high-quality automatic endoscope reprocessors, advanced endoscope storage and drying cabinets (products globally distributed by our Company prior to the acquisition under an agreement with BHT Group), washer-disinfectors for central sterile applications, associated technical service and parts as well as flexible endoscope repair services. BHT Group is included in our Endoscopy segment. Purchase price allocations for Aexis Medical and BHT Group were based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. We anticipate completing the purchase price allocation of the BHT Group during the fourth quarter of fiscal 2018. Fiscal 2017 CR Kennedy On April 1, 2017, we purchased certain endoscopy-related net assets of CR Kennedy & Company Pty Ltd. (“CR Kennedy”) related to its distribution and sale of our Medivators endoscopy products in Australia for total consideration, excluding acquisition related costs, of $11,999 . The CR Kennedy business includes a full sales and service organization and our Medivators-branded automated endoscope reprocessors, chemistries, endoscopy procedure products and other consumables in Australia, and is included in our Endoscopy segment. Vantage Endoscopy Inc.’s Medivators ® Endoscopy Business On September 26, 2016, we acquired certain net assets of Vantage Endoscopy Inc. (“Vantage”) related to its distribution and sale of our Medivators endoscopy products in Canada for total consideration, excluding acquisition-related costs, of $4,044 . Vantage was our exclusive distributor of Medivators capital equipment (e.g., automated endoscope reprocessors) and related consumables and accessories in Canada, and is included in our Endoscopy segment. Accutron, Inc. On August 1, 2016, we acquired all of the issued and outstanding stock of Accutron Inc. (“Accutron”), a Phoenix-based company, for total consideration, excluding acquisition-related costs, of $53,049 . The Accutron business designs, manufactures and sells nitrous oxide conscious sedation equipment and single use nasal masks for use in dental procedures, and is included in our Healthcare Disposables segment. 2018 2017 Purchase Price Allocation Aexis Medical (1) BHT Group (1) CR Kennedy Vantage (1) Accutron (1) (Preliminary) (Preliminary) (Final) (Final) (Final) Purchase Price: Cash paid (net of cash acquired) $ 20,308 $ 60,787 $ 11,999 $ 4,044 $ 53,049 Fair value of contingent consideration 1,292 — — — — Total $ 21,600 $ 60,787 $ 11,999 $ 4,044 $ 53,049 Allocation: Property and equipment 130 835 — 433 1,676 Amortizable intangible assets: Customer relationships — 12,500 4,200 992 12,800 Technology 11,099 6,200 — — 10,000 Brand names — — — — 2,000 Goodwill 12,425 41,357 5,894 2,299 21,989 Deferred income taxes — (5,881 ) — — 112 Other working capital, net (762 ) 5,776 1,905 320 4,472 Contingent consideration (1,292 ) — — — — Total $ 21,600 $ 60,787 $ 11,999 $ 4,044 $ 53,049 _______________________________________________ (1) The excess purchase price over net assets acquired was assigned to goodwill, all of which is deductible for income tax purposes. Unaudited Pro Forma Summary of Operations The acquisitions above, both individually and in the aggregate, were not material to our consolidated results of operations or financial position and, therefore, pro forma financial information is not presented.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Apr. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation 2016 Equity Incentive Plan At April 30, 2018 , 191,708 nonvested restricted stock awards were outstanding under the 2016 plan. No options were outstanding under the 2016 plan. At April 30, 2018 , 972,312 shares are collectively available pursuant to restricted stock and other stock awards, stock options and stock appreciation rights. 2006 Equity Incentive Plan The 2006 Plan was terminated on January 7, 2016 in conjunction with the adoption of the 2016 Plan. At April 30, 2018 , options to purchase 70,000 shares of common stock were outstanding, and 38,295 nonvested restricted stock awards were outstanding under the 2006 Plan. No additional awards will be granted under this plan. The following table shows the components of stock-based compensation expense recognized in the condensed consolidated statements of income: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Cost of sales $ 167 $ 83 $ 463 $ 285 Operating expenses: Selling 559 313 1,188 1,252 General and administrative 1,641 1,520 5,231 5,358 Research and development 76 29 151 88 Total operating expenses 2,276 1,862 6,570 6,698 Stock-based compensation before income taxes $ 2,443 $ 1,945 $ 7,033 $ 6,983 At April 30, 2018 , total unrecognized stock-based compensation expense, before income taxes, related to total nonvested stock options and restricted stock awards was $14,420 with a remaining weighted average period of 20 months over which such expense is expected to be recognized. We determined the fair value of restricted stock awards with market conditions using a Monte Carlo simulation on the date of grant using the following assumptions: 2018 2017 Volatility of common stock 26.60 % 27.75 % Average volatility of peer companies 33.72 % 32.98 % Average correlation coefficient of peer companies 32.26 % 35.35 % Risk-free interest rate 1.62 % 0.96 % A summary of nonvested stock award activity for the nine months ended April 30, 2018 follows: Number of Time-based Awards Number of Performance-based Awards Number of Market-based Awards Number of Total Awards Weighted Average Fair Value July 31, 2017 196,818 16,235 9,245 222,298 $ 66.28 Granted 94,130 18,647 10,465 123,242 $ 101.73 Vested (1) (99,009 ) (6,162 ) — (105,171 ) $ 58.98 Forfeited (6,623 ) (1,743 ) (2,000 ) (10,366 ) $ 91.09 April 30, 2018 185,316 26,977 17,710 230,003 $ 87.55 _______________________________________________ (1) The aggregate fair value of all nonvested stock awards which vested was approximately $6,203 . A summary of stock option activity for the nine months ended April 30, 2018 follows: Number of shares Weighted Average Exercise Price Weighted Average Contractual Life Remaining (Years) Aggregate Intrinsic Value Outstanding at July 31, 2017 122,500 $ 29.36 Granted — — Exercised (52,500 ) 17.04 Outstanding at April 30, 2018 70,000 $ 38.60 1.20 $ 5,143 Exercisable at April 30, 2018 65,000 $ 37.31 1.11 $ 4,859 During the nine months ended April 30, 2018 , 5,000 options vested, with an aggregate fair value of approximately $132 . During the nine months ended April 30, 2018 , 52,500 options were exercised, with an aggregate fair value of approximately $4,049 . As of April 30, 2018 , all of the outstanding options had vested or were expected to vest in future periods. No options were granted during the nine months ended April 30, 2018 . Excess tax benefits arise when the ultimate tax effect of the deduction for tax purposes is greater than the income tax benefit on stock-based compensation described above. For the nine months ended April 30, 2018 , income tax deductions of $3,406 were generated, of which $1,394 were previously recorded as a reduction to income taxes over the equity awards’ vesting period and the remaining excess tax benefit of $2,012 (which includes the state income tax benefit) was recorded as a reduction to income taxes. For the nine months ended April 30, 2017 , income tax deductions of $5,520 were generated, of which $3,329 were previously recorded as a reduction to income taxes over the equity awards’ vesting period and the remaining excess tax benefit of $2,191 was recorded as a reduction to income taxes.

Inventories, Net

Inventories, Net	9 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
Inventories, Net	Inventories, Net A summary of inventories is as follows: April 30, 2018 July 31, 2017 Raw materials and parts $ 49,365 $ 45,831 Work-in-process 15,498 13,484 Finished goods 56,297 48,262 Reserve for excess and obsolete inventory (8,051 ) (8,853 ) Total $ 113,109 $ 98,724

Derivatives

Derivatives	9 Months Ended
	Apr. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives In order to hedge against the impact of fluctuations in the value of the Euro, British Pound, Canadian dollar, Australian dollar and Singapore dollar relative to the U.S. dollar on the conversion of such net assets into the functional currencies, we enter into short-term forward contracts to purchase Euros, British Pounds, Canadian dollars, Australian dollars and Singapore dollars, which contracts are one-month in duration. These short-term contracts are designated as fair value hedge instruments. These foreign currency forward contracts are continually replaced with new one -month contracts as long as we have significant net assets that are denominated and ultimately settled in currencies other than each entity’s functional currency. Gains and losses related to hedging contracts to buy Euros, British Pounds, Canadian dollars, Australian dollars and Singapore dollars forward are immediately realized within general and administrative expenses due to the short-term nature of such contracts. We do not currently hedge against the impact of fluctuations in the value of the Chinese Renminbi and Sri Lankan Rupee relative to the U.S. dollar because the overall foreign currency exposure relating to these currencies is currently not deemed significant. There were eight foreign currency forward contracts with an aggregate notional value of $29,897 and $24,762 at April 30, 2018 and July 31, 2017 , respectively, which covered certain assets and liabilities that were denominated in currencies other than each entity’s functional currency. For the three and nine months ended April 30, 2018 and 2017 , the settlements of our forward contracts resulted in immaterial amounts of currency conversion gains and losses on the hedged items in the aggregate.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair Value Hierarchy We apply the provisions of ASC 820, “Fair Value Measurements and Disclosures,” (“ASC 820”), for our financial assets and liabilities that are re-measured and reported at fair value each reporting period and our nonfinancial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. We define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three level fair value hierarchy to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Our financial assets that are re-measured at fair value on a recurring basis include money market funds that are classified as cash and cash equivalents in the consolidated balance sheets. These money market funds are classified within Level 1 of the fair value hierarchy and are valued using quoted market prices for identical assets. For the Aexis Medical acquisition, additional purchase price payments ranging from zero to $1,850 are contingent upon the achievement of certain purchase order targets through March 21, 2020. We estimated the original fair value of the contingent consideration using the weighted probabilities of the possible contingent payments. As of the date of acquisition, we estimated the original fair value of the contingent consideration to be $1,292 . We are required to reassess the fair value of contingent payments on a periodic basis. The significant inputs used in these estimates include numerous possible scenarios for the payments based on the contractual terms of the contingent consideration, for which probabilities are assigned to each scenario. Given the short term nature of the financial instrument, the contingent consideration will not be discounted to present value. Although we believe our assumptions are reasonable, different assumptions or changes in the future may result in different estimated amounts. In connection with the Jet Prep Ltd. ("Jet Prep") acquisition in fiscal 2014, we assumed a contingent obligation payable to the Israeli Government based on future sales. This fair value measurement was based on significant inputs not observed in the market and thus represent Level 3 measurements. In November 2017, the Israeli Government formally notified us that they would forgive any future amounts payable due to our decision to exit the Jet Prep business. During the first quarter of fiscal 2018, we reduced the fair value of this obligation to $0 . See Note 10, "Commitments and Contingencies." The fair values of the Company’s financial instruments measured on a recurring basis were categorized as follows: April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 103 $ — $ — $ 103 Total assets $ 103 $ — $ — $ 103 Liabilities: Long-term debt (1) — 169,000 — 169,000 Other long-term liabilities: Contingent consideration — — 1,262 1,262 Total other long-term liabilities: — — 1,262 1,262 Total liabilities $ — $ 169,000 $ 1,262 $ 170,262 ________________________________________________ (1) Fair value estimated using Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active. July 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 102 $ — $ — $ 102 Total assets $ 102 $ — $ — $ 102 Liabilities: Accrued expenses: Assumed contingent obligation — — 12 12 Total accrued expenses — — 12 12 Long-term debt (1) — 126,000 — 126,000 Other long-term liabilities: Assumed contingent obligation — — 1,126 1,126 Total other long-term liabilities: — — 1,126 1,126 Total liabilities $ — $ 126,000 $ 1,138 $ 127,138 ________________________________________________ (1) Fair value estimated using Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active. The following table summarizes the Level 3 activity of our financial instruments: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Beginning balance $ — $ 1,138 $ 1,138 $ 1,138 Original fair value of contingent consideration (1) 1,292 — 1,292 — Foreign currency translation (30 ) — (30 ) — Net settlements (2) — — (1,138 ) — Ending Balance $ 1,262 $ 1,138 $ 1,262 $ 1,138 ________________________________________________ (1) For the three and nine months ended April 30, 2018, the amounts represent the contingent consideration associated with the Aexis Medical acquisition. (2) For the nine months ended April 30, 2018, the amount represents the resolution of the Jet Prep obligation. Disclosure of Fair Value of Financial Instruments As of April 30, 2018 and July 31, 2017 , the carrying amounts for cash and cash equivalents (excluding money markets), accounts receivable and accounts payable approximated fair value due to the short maturity of these instruments.

Intangibles and Goodwill

Intangibles and Goodwill	9 Months Ended
	Apr. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles and Goodwill	Intangibles and Goodwill The Company’s intangible assets consist of the following: April 30, 2018 July 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $ 133,133 $ (43,145 ) $ 89,988 $ 119,576 $ (34,773 ) $ 84,803 Technology (1) 59,080 (18,663 ) 40,417 39,064 (15,260 ) 23,804 Brand names 8,230 (3,719 ) 4,511 8,188 (3,225 ) 4,963 Non-compete agreements 3,060 (1,571 ) 1,489 3,092 (1,428 ) 1,664 Patents and other registrations 2,767 (1,144 ) 1,623 2,783 (1,053 ) 1,730 206,270 (68,242 ) 138,028 172,703 (55,739 ) 116,964 Trademarks and tradenames 7,524 — 7,524 7,548 — 7,548 Total intangible assets $ 213,794 $ (68,242 ) $ 145,552 $ 180,251 $ (55,739 ) $ 124,512 _______________________________________________ (1) The gross and accumulated amortization amounts previously reported as of July 31, 2017 have been revised to exclude the $3,730 fully amortized technology related intangible asset and associated accumulated amortization related to the Jet Prep business. This did not result in any change to the net technology related intangible asset as of July 31, 2017. Amortization expense related to intangible assets was $4,480 and $3,964 for the three months ended April 30, 2018 and 2017 , respectively, and $12,892 and $11,930 for the nine months ended April 30, 2018 and 2017 , respectively. We expect to recognize an additional $5,253 of amortization expense related to intangible assets for the remainder of fiscal 2018 , and thereafter $18,008 , $16,315 , $16,313 , $15,969 and $15,586 of amortization expense for fiscal years 2019 , 2020 , 2021 , 2022 and 2023 , respectively. Goodwill changed during the nine months ended April 30, 2018 as follows: Endoscopy Water Purification and Filtration Healthcare Disposables Dialysis Total Goodwill Balance, July 31, 2017 $ 129,945 $ 59,088 $ 114,279 $ 8,133 $ 311,445 Acquisitions 53,782 — — — 53,782 Foreign currency translation 1,717 (140 ) — — 1,577 Balance, April 30, 2018 $ 185,444 $ 58,948 $ 114,279 $ 8,133 $ 366,804

Financing Arrangements

Financing Arrangements	9 Months Ended
	Apr. 30, 2018
Debt Disclosure [Abstract]
Financing Arrangements	Financing Arrangements Borrowings under our Third Amended and Restated Credit Agreement (the “2014 Credit Agreement”) bear interest at rates ranging from 0.25% to 1.25% above the lender’s base rate, or at rates ranging from 1.25% to 2.25% above the London Interbank Offered Rate (“LIBOR”), depending upon the Company’s “Consolidated Leverage Ratio,” which is defined as the consolidated ratio of total funded debt to earnings before interest, taxes, depreciation and amortization, and as further adjusted under the terms of the 2014 Credit Agreement (“Consolidated EBITDA”). At April 30, 2018 , the lender’s base rate was 5.00% and the LIBOR rates ranged from 1.89% to 1.90% . The margins applicable to our outstanding borrowings were 0.25% above the lender’s base rate or 1.25% above LIBOR. All of our outstanding borrowings were under LIBOR contracts at April 30, 2018 . The 2014 Credit Agreement also provides for fees on the unused portion of our facility at rates ranging from 0.20% to 0.40% , depending upon our Consolidated Leverage Ratio, which was 0.20% at April 30, 2018 . The 2014 Credit Agreement contains affirmative and negative covenants reasonably customary for similar credit facilities and is secured by (i) substantially all assets of Cantel and its U.S.-based subsidiaries, (ii) a pledge by Cantel of all of the outstanding shares of its U.S.-based subsidiaries and 65% of the outstanding shares of certain of Cantel’s foreign-based subsidiaries and (iii) a guaranty by Cantel’s domestic subsidiaries. We are in compliance with all financial and other covenants under the 2014 Credit Agreement. As of April 30, 2018 and July 31, 2017 , we had $169,000 and $126,000 , respectively, of outstanding borrowings under the 2014 Credit Agreement. Debt issuance costs associated with our credit facilities are capitalized and amortized to interest expense over the term of the credit facilities. As of April 30, 2018 and July 31, 2017 , such debt issuance costs, net of related amortization, were included in other assets, and amounted to $334 and $580 , respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingent Consideration and Assumed Contingent Liability During fiscal 2017, we decided to exit the Jet Prep business that was acquired in fiscal 2014. At the time of the acquisition, we assumed a contingent obligation payable to the Israeli Government based on future sales. In November 2017, the Israeli Government formally notified us that they would forgive any future amounts payable due to our decision to exit the Jet Prep business. As a result of this formal notification, we reduced the $1,138 contingent obligation to $0 during the first quarter of fiscal 2018, resulting in a benefit through other income for the nine months ended April 30, 2018 . Legal Matters In May 2017, Cantel Medical (UK) Limited and Cantel (UK) Limited filed a lawsuit in the UK High Court of Justice against ARC Medical Design Limited (“ARC”) seeking a judgment of invalidity on two of ARC’s patents and additionally/alternatively a declaration of non-infringement of our AmplifEYE TM Endoscopic device. ARC filed counterclaims alleging that the AmplifEYE TM device infringed the two patents as well as registered community design marks and unregistered design rights that ARC had in its Endocuff TM and Endocuff Vision TM devices. In February 2018, the trial judge entered a judgment in favor of ARC, and we decided not to appeal the decision. We entered into a settlement agreement with ARC in March 2018 under which we agreed not to make, use, sell or offer to sell the AmplifEYE TM device in the European Union until ARC’s rights expire, and reimbursed ARC for a portion of their legal costs. During the third quarter of fiscal 2018, we recorded $2,608 of litigation costs within selling, general and administrative expenses associated with this matter. In the normal course of business, we are subject to pending and threatened legal actions. It is our policy to accrue for amounts related to these legal matters if it is probable that a liability has been incurred and an amount of anticipated exposure can be reasonably estimated. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Apr. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	Earnings Per Common Share Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. We include participating securities (nonvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of nonvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. The following table sets forth the computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities): Three Months Ended Nine Months Ended April 30, April 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 18,736 $ 17,511 $ 74,153 $ 54,381 Less income allocated to participating securities (59 ) (98 ) (281 ) (335 ) Net income available to common shareholders $ 18,677 $ 17,413 $ 73,872 $ 54,046 Denominator for basic and diluted earnings per share, as adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock 41,580,387 41,489,587 41,559,312 41,459,067 Dilutive effect of stock awards using the treasury stock method and the average market price for the year 69,134 75,431 63,642 74,420 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,649,521 41,565,018 41,622,954 41,533,487 Earnings per share attributable to common stock: Basic earnings per share $ 0.45 $ 0.42 $ 1.78 $ 1.30 Diluted earnings per share $ 0.45 $ 0.42 $ 1.77 $ 1.30 Stock options excluded from weighted average dilutive common shares because their inclusion would have been anti-dilutive — — — — A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to the Company’s total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table: Three Months Ended Nine Months Ended April 30, April 30, 2018 2017 2018 2017 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,649,521 41,565,018 41,622,954 41,533,487 Participating securities 133,954 233,501 159,932 259,050 Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities 41,783,475 41,798,519 41,782,886 41,792,537

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the U.S. government enacted wide-ranging tax legislation, the Tax Cuts and Jobs Act (the “2017 Tax Act”). The 2017 Tax Act significantly revises U.S. tax law by, among other provisions, (a) lowering the applicable U.S. federal statutory income tax rate from 35% to 21%, (b) creating a partial territorial tax system that includes imposing a mandatory one-time transition tax on previously deferred foreign earnings, (c) creating provisions regarding the (1) Global Intangible Low Tax Income (“GILTI”), (2) the Foreign Derived Intangible Income (“FDII”) deduction, and (3) the Base Erosion Anti-Abuse Tax (“BEAT”), and (d) eliminating or reducing certain income tax deductions, such as interest expense, executive compensation expenses and certain employee expenses. ASC 740 Income Taxes requires the effects of changes in tax laws to be recognized in the period in which the legislation is enacted. However, due to the complexity and significance of the 2017 Tax Act’s provisions, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allows companies to record the tax effects of the 2017 Tax Act on a provisional basis based on a reasonable estimate and then, if necessary, subsequently adjust such amounts during a limited measurement period as more information becomes available. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year from enactment. Section 15 of the Internal Revenue Code governs rate changes and was not amended by the 2017 Tax Act. Section 15 requires a blended tax rate for fiscal-year taxpayers for their fiscal year that includes the effective date of the rate change, which was January 1, 2018. As a result of the 2017 Tax Act, we revised our estimated annual effective rate to reflect the change in the U.S. federal statutory rate by computing a tentative tax under both rates, and then prorating the tentative tax based on the number of days with and without the rate change to arrive at a blended tax rate of 26.9% , as required by the code. This blended rate was applied for fiscal 2018 and the new U.S. federal statutory rate of 21% will apply to fiscal 2019 and beyond. During the second quarter ended January 31, 2018, we recorded a net benefit of $8,398 to the income tax provision as a provisional estimate of the net accounting impact of the 2017 Tax Act in accordance with SAB 118. The net benefit is comprised of the following: (i) expense of $294 related to the mandatory transition tax for deemed repatriation of deferred foreign income and (ii) a benefit of $8,692 related to a revaluation of our deferred tax assets and liabilities. During the third quarter ended April 30, 2018 , we reduced the mandatory transition tax by $294 . Given the significant complexity of the 2017 Tax Act, anticipated guidance from the U.S. Treasury concerning implementation of the 2017 Tax Act, and the potential for additional guidance from the SEC or the FASB related to the 2017 Tax Act, the provisional estimates we recorded may require adjustment during the measurement period. The provisional estimates were based on our understanding of the 2017 Tax Act and other information available at the time of the estimates, including assumptions and expectations about future events, such as projected financial performance, and are subject to further refinement as additional information becomes available (including our actual full fiscal 2018 results of operations, as well as potential new or interpretative guidance issued by the SEC, the FASB, or the Internal Revenue Service) and as we continue our analysis. We continue to analyze the changes to certain income tax deductions, assess calculations of earnings and profits in certain foreign subsidiaries, including whether those earnings are held in cash or other assets, and gather additional data to compute the full impact of the 2017 Tax Act on our deferred and current tax assets and liabilities. Furthermore, such analysis includes but is not limited to provisions regarding the GILTI and certain employee expense deductions, as well as the state tax impact of the 2017 Tax Act. During the third quarter ended April 30, 2018 , we reduced the mandatory transition tax by $294 . We are currently in the process of further analyzing its structure and estimated future results and, as a result, are not yet able to reasonably estimate the effect of these provisions of the 2017 Tax Act. A reconciliation of the consolidated effective income tax rate from the three and nine months ended April 30, 2017 to the three and nine months ended April 30, 2018 is as follows: Consolidated Effective Income Tax Rate Three Months Ended Nine Months Ended April 30, 2017 33.6 % 31.9 % Difference attributable to: Deferred tax revaluation (0.4 )% (7.0 )% U.S. federal statutory rate decrease (1) (8.1 )% (8.1 )% Foreign operations (1.3 )% (0.3 )% State taxes 3.5 % 1.5 % Excess tax benefit — % (2.3 )% Other (0.6 )% 0.5 % April 30, 2018 26.7 % 16.2 % ___________________________________ (1) The Company revised its estimated annual rate to reflect a blended U.S. federal statutory rate of 26.9% as compared to 35.0%.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Apr. 30, 2018
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive (Loss) Income The components and changes in accumulated other comprehensive (loss) income were as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 1,246 $ (15,728 ) $ (9,900 ) $ (11,795 ) Other comprehensive (loss) income for foreign currency translation (6,538 ) 1,384 4,608 (2,549 ) Ending balance $ (5,292 ) $ (14,344 ) $ (5,292 ) $ (14,344 )

Reportable Segments

Reportable Segments	9 Months Ended
	Apr. 30, 2018
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments In accordance with FASB ASC Topic 280, “ Segment Reporting,” (“ASC 280”), we have determined our reportable business segments based upon an assessment of product types, organizational structure, customers and internally prepared financial statements. The primary factors used by us in analyzing segment performance are net sales and operating income. The Company’s reportable segments are as follows: Endoscopy: designs, develops, manufactures, sells and installs a comprehensive offering of products and services comprising a complete circle of infection prevention solutions. Our products include endoscope reprocessing and endoscopy procedure products. Water Purification and Filtration: designs, develops, manufactures, sells, and installs water purification systems for medical, pharmaceutical and other bacteria controlled applications. We also provide filtration/separation and disinfectant technologies to the medical and life science markets through a worldwide distributor network. Two customers collectively accounted for approximately 50.1% and 50.7% of our Water Purification and Filtration segment net sales for the nine months ended April 30, 2018 and 2017 , respectively. Healthcare Disposables: designs, manufactures, sells, supplies and distributes a broad selection of infection prevention healthcare products, the majority of which are single-use products used by dental practitioners. Three customers collectively accounted for approximately 47.7% and 50.4% of our Healthcare Disposables segment net sales for the nine months ended April 30, 2018 and 2017 , respectively. Dialysis: designs, develops, manufactures, sells and services reprocessing systems and sterilants for dialyzers (a device serving as an artificial kidney), as well as dialysate concentrates and supplies utilized for renal dialysis. Two customers accounted for approximately 39.0% and 38.8% of our Dialysis segment net sales for the nine months ended April 30, 2018 and 2017 , respectively. Information as to reportable segments is summarized below: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Net sales: Endoscopy $ 118,396 $ 100,349 $ 347,446 $ 288,544 Water Purification and Filtration 52,330 47,940 156,828 145,233 Healthcare Disposables 38,522 36,177 114,898 108,256 Dialysis 8,020 7,647 23,896 22,622 Total $ 217,268 $ 192,113 $ 643,068 $ 564,655 None of our customers accounted for 10% or more of our consolidated net sales for the nine months ended April 30, 2018 and 2017 . Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Segment operating income: Endoscopy $ 20,515 $ 18,514 $ 64,662 $ 54,853 Water Purification and Filtration 8,454 7,842 26,753 25,167 Healthcare Disposables 7,588 6,392 23,481 20,857 Dialysis 1,778 2,315 5,795 6,275 38,335 35,063 120,691 107,152 General corporate expenses (1) 11,268 7,619 29,508 24,032 Operating income $ 27,067 $ 27,444 $ 91,183 $ 83,120 _______________________________________________ (1) General corporate expenses relate to unallocated corporate costs primarily related to executive management personnel as well as costs associated with certain facets of our acquisition program and being a publicly traded company.

Accounting Pronouncements (Poli

Accounting Pronouncements (Policies)	9 Months Ended
	Apr. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Newly Adopted And Recently Issued Accounting Standards	Newly Adopted Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”). The new guidance requires an acquirer in a business combination to recognize a measurement-period adjustment during the period in which it determines the amount, and eliminates the requirement for an acquirer to account for measurement-period adjustments retrospectively. The acquirer must also disclose the amounts and reasons for adjustments to the provisional amounts. ASU 2015-16 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Accordingly, we adopted ASU 2015-06 on August 1, 2017. The adoption of ASU 2015-06 did not have a material impact on our financial position and results of operations. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory,” (“ASU 2015-11”). The new guidance requires companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Accordingly, we adopted ASU 2015-11 on August 1, 2017. The adoption of ASU 2015-11 did not have a material impact on our financial position and results of operations. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805)” (“ASU 2017-01”) to clarify the definition of a business. The revised guidance creates a more robust framework to use in determining whether a set of assets and activities is a business. The guidance will be applied on a prospective basis on or after the effective date. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. We early adopted ASU-2017-01 on August 1, 2017. The adoption of ASU 2017-01 did not have a material impact on our financial position and results of operations. Recently Issued Accounting Standards In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”) to allow for the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in December 2017. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. The adoption of ASU 2018-02 is not expected to have a significant impact on our financial position and results of operations. In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”) to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2017-12 on our financial position and results of operations. In May 2017, the FASB issued ASU 2017-09, “Scope of Modification Accounting” (“ASU 2017-09”) to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2017-09 on our financial position and results of operations. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other” (“ASU 2017-04”) to simplify the test for goodwill impairment. The revised guidance eliminates the existing Step 2 of the goodwill impairment test which required an entity to compute the implied fair value of its goodwill at the testing date in order to measure the amount of the impairment charge when the fair value of the reporting unit failed Step 1 of the goodwill impairment test. Under the revised guidance, an entity would recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The guidance will be applied on a prospective basis on or after the effective date. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021) and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a significant impact on our financial position and results of operations. In February 2016, FASB issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (our fiscal year 2020), including interim periods within that reporting period. Early adoption is permitted as of the beginning of an interim or annual period. We are currently in the process of evaluating the impact of ASU 2016-02 on our financial position and results of operations. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which will supersede the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition” (“ASC 605”). ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606),” which defers the effective date of ASU 2014-09 by one year to fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2016-12”), which provided narrow scope improvements and practical expedients relating to ASU 2014-09. In preparation for our adoption of ASU 2014-09 and ASU 2016-12 on August 1, 2018, we have obtained representative samples of contracts and other forms of agreements with our customers in the United States and in our international locations and continue to evaluate the provisions contained therein in light of the five-step model specified by the new guidance. We continue to evaluate the impact of the new standard on certain common practices currently employed by us and by other health care manufacturers and service providers, such as multiple-element arrangements, deferred revenues, warranties, rebates and other pricing allowances. We anticipate adopting the standard using the modified retrospective method. There may be differences in timing of revenue recognition under the new standard compared to recognition under ASC 605.

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Apr. 30, 2018
Business Combinations [Abstract]
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	2018 2017 Purchase Price Allocation Aexis Medical (1) BHT Group (1) CR Kennedy Vantage (1) Accutron (1) (Preliminary) (Preliminary) (Final) (Final) (Final) Purchase Price: Cash paid (net of cash acquired) $ 20,308 $ 60,787 $ 11,999 $ 4,044 $ 53,049 Fair value of contingent consideration 1,292 — — — — Total $ 21,600 $ 60,787 $ 11,999 $ 4,044 $ 53,049 Allocation: Property and equipment 130 835 — 433 1,676 Amortizable intangible assets: Customer relationships — 12,500 4,200 992 12,800 Technology 11,099 6,200 — — 10,000 Brand names — — — — 2,000 Goodwill 12,425 41,357 5,894 2,299 21,989 Deferred income taxes — (5,881 ) — — 112 Other working capital, net (762 ) 5,776 1,905 320 4,472 Contingent consideration (1,292 ) — — — — Total $ 21,600 $ 60,787 $ 11,999 $ 4,044 $ 53,049 _______________________________________________ (1) The excess purchase price over net assets acquired was assigned to goodwill, all of which is deductible for income tax purposes.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income	The following table shows the components of stock-based compensation expense recognized in the condensed consolidated statements of income: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Cost of sales $ 167 $ 83 $ 463 $ 285 Operating expenses: Selling 559 313 1,188 1,252 General and administrative 1,641 1,520 5,231 5,358 Research and development 76 29 151 88 Total operating expenses 2,276 1,862 6,570 6,698 Stock-based compensation before income taxes $ 2,443 $ 1,945 $ 7,033 $ 6,983
Schedule of weighted-average assumptions used to estimate fair value of stock options	We determined the fair value of restricted stock awards with market conditions using a Monte Carlo simulation on the date of grant using the following assumptions: 2018 2017 Volatility of common stock 26.60 % 27.75 % Average volatility of peer companies 33.72 % 32.98 % Average correlation coefficient of peer companies 32.26 % 35.35 % Risk-free interest rate 1.62 % 0.96 %
Summary of nonvested stock award activity	A summary of nonvested stock award activity for the nine months ended April 30, 2018 follows: Number of Time-based Awards Number of Performance-based Awards Number of Market-based Awards Number of Total Awards Weighted Average Fair Value July 31, 2017 196,818 16,235 9,245 222,298 $ 66.28 Granted 94,130 18,647 10,465 123,242 $ 101.73 Vested (1) (99,009 ) (6,162 ) — (105,171 ) $ 58.98 Forfeited (6,623 ) (1,743 ) (2,000 ) (10,366 ) $ 91.09 April 30, 2018 185,316 26,977 17,710 230,003 $ 87.55 _______________________________________________ (1) The aggregate fair value of all nonvested stock awards which vested was approximately $6,203 .
Summary of stock option activity	A summary of stock option activity for the nine months ended April 30, 2018 follows: Number of shares Weighted Average Exercise Price Weighted Average Contractual Life Remaining (Years) Aggregate Intrinsic Value Outstanding at July 31, 2017 122,500 $ 29.36 Granted — — Exercised (52,500 ) 17.04 Outstanding at April 30, 2018 70,000 $ 38.60 1.20 $ 5,143 Exercisable at April 30, 2018 65,000 $ 37.31 1.11 $ 4,859

Inventories, Net (Tables)

Inventories, Net (Tables)	9 Months Ended
	Apr. 30, 2018
Inventory Disclosure [Abstract]
Summary of inventories	A summary of inventories is as follows: April 30, 2018 July 31, 2017 Raw materials and parts $ 49,365 $ 45,831 Work-in-process 15,498 13,484 Finished goods 56,297 48,262 Reserve for excess and obsolete inventory (8,051 ) (8,853 ) Total $ 113,109 $ 98,724

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair values of financial instruments measured on a recurring basis	The fair values of the Company’s financial instruments measured on a recurring basis were categorized as follows: April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 103 $ — $ — $ 103 Total assets $ 103 $ — $ — $ 103 Liabilities: Long-term debt (1) — 169,000 — 169,000 Other long-term liabilities: Contingent consideration — — 1,262 1,262 Total other long-term liabilities: — — 1,262 1,262 Total liabilities $ — $ 169,000 $ 1,262 $ 170,262 ________________________________________________ (1) Fair value estimated using Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active. July 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 102 $ — $ — $ 102 Total assets $ 102 $ — $ — $ 102 Liabilities: Accrued expenses: Assumed contingent obligation — — 12 12 Total accrued expenses — — 12 12 Long-term debt (1) — 126,000 — 126,000 Other long-term liabilities: Assumed contingent obligation — — 1,126 1,126 Total other long-term liabilities: — — 1,126 1,126 Total liabilities $ — $ 126,000 $ 1,138 $ 127,138 ________________________________________________ (1) Fair value estimated using Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active.
Level 3 activity of financial liabilities	The following table summarizes the Level 3 activity of our financial instruments: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Beginning balance $ — $ 1,138 $ 1,138 $ 1,138 Original fair value of contingent consideration (1) 1,292 — 1,292 — Foreign currency translation (30 ) — (30 ) — Net settlements (2) — — (1,138 ) — Ending Balance $ 1,262 $ 1,138 $ 1,262 $ 1,138 ________________________________________________ (1) For the three and nine months ended April 30, 2018, the amounts represent the contingent consideration associated with the Aexis Medical acquisition. (2) For the nine months ended April 30, 2018, the amount represents the resolution of the Jet Prep obligation.

Intangibles and Goodwill (Table

Intangibles and Goodwill (Tables)	9 Months Ended
	Apr. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The Company’s intangible assets consist of the following: April 30, 2018 July 31, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $ 133,133 $ (43,145 ) $ 89,988 $ 119,576 $ (34,773 ) $ 84,803 Technology (1) 59,080 (18,663 ) 40,417 39,064 (15,260 ) 23,804 Brand names 8,230 (3,719 ) 4,511 8,188 (3,225 ) 4,963 Non-compete agreements 3,060 (1,571 ) 1,489 3,092 (1,428 ) 1,664 Patents and other registrations 2,767 (1,144 ) 1,623 2,783 (1,053 ) 1,730 206,270 (68,242 ) 138,028 172,703 (55,739 ) 116,964 Trademarks and tradenames 7,524 — 7,524 7,548 — 7,548 Total intangible assets $ 213,794 $ (68,242 ) $ 145,552 $ 180,251 $ (55,739 ) $ 124,512 _______________________________________________ (1) The gross and accumulated amortization amounts previously reported as of July 31, 2017 have been revised to exclude the $3,730 fully amortized technology related intangible asset and associated accumulated amortization related to the Jet Prep business. This did not result in any change to the net technology related intangible asset as of July 31, 2017.
Schedule of changes in goodwill	Goodwill changed during the nine months ended April 30, 2018 as follows: Endoscopy Water Purification and Filtration Healthcare Disposables Dialysis Total Goodwill Balance, July 31, 2017 $ 129,945 $ 59,088 $ 114,279 $ 8,133 $ 311,445 Acquisitions 53,782 — — — 53,782 Foreign currency translation 1,717 (140 ) — — 1,577 Balance, April 30, 2018 $ 185,444 $ 58,948 $ 114,279 $ 8,133 $ 366,804

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Apr. 30, 2018
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities)	The following table sets forth the computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities): Three Months Ended Nine Months Ended April 30, April 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 18,736 $ 17,511 $ 74,153 $ 54,381 Less income allocated to participating securities (59 ) (98 ) (281 ) (335 ) Net income available to common shareholders $ 18,677 $ 17,413 $ 73,872 $ 54,046 Denominator for basic and diluted earnings per share, as adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock 41,580,387 41,489,587 41,559,312 41,459,067 Dilutive effect of stock awards using the treasury stock method and the average market price for the year 69,134 75,431 63,642 74,420 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,649,521 41,565,018 41,622,954 41,533,487 Earnings per share attributable to common stock: Basic earnings per share $ 0.45 $ 0.42 $ 1.78 $ 1.30 Diluted earnings per share $ 0.45 $ 0.42 $ 1.77 $ 1.30 Stock options excluded from weighted average dilutive common shares because their inclusion would have been anti-dilutive — — — —
Schedule of reconciliation of weighted average number of shares and common stock equivalents attributable to common stock to the Company's total weighted average number of shares and common stock equivalents including participating securities	A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to the Company’s total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table: Three Months Ended Nine Months Ended April 30, April 30, 2018 2017 2018 2017 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,649,521 41,565,018 41,622,954 41,533,487 Participating securities 133,954 233,501 159,932 259,050 Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities 41,783,475 41,798,519 41,782,886 41,792,537

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Apr. 30, 2018
Income Tax Disclosure [Abstract]
Reconciliation of consolidated effective income tax rate between periods	A reconciliation of the consolidated effective income tax rate from the three and nine months ended April 30, 2017 to the three and nine months ended April 30, 2018 is as follows: Consolidated Effective Income Tax Rate Three Months Ended Nine Months Ended April 30, 2017 33.6 % 31.9 % Difference attributable to: Deferred tax revaluation (0.4 )% (7.0 )% U.S. federal statutory rate decrease (1) (8.1 )% (8.1 )% Foreign operations (1.3 )% (0.3 )% State taxes 3.5 % 1.5 % Excess tax benefit — % (2.3 )% Other (0.6 )% 0.5 % April 30, 2018 26.7 % 16.2 % ___________________________________ (1) The Company revised its estimated annual rate to reflect a blended U.S. federal statutory rate of 26.9% as compared to 35.0%.

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Apr. 30, 2018
Accumulated Other Comprehensive Income (Loss)
Schedule of the components and changes in accumulated other comprehensive income (loss)	The components and changes in accumulated other comprehensive (loss) income were as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Beginning balance $ 1,246 $ (15,728 ) $ (9,900 ) $ (11,795 ) Other comprehensive (loss) income for foreign currency translation (6,538 ) 1,384 4,608 (2,549 ) Ending balance $ (5,292 ) $ (14,344 ) $ (5,292 ) $ (14,344 )

Reportable Segments (Tables)

Reportable Segments (Tables)	9 Months Ended
	Apr. 30, 2018
Segment Reporting [Abstract]
Information as to reportable segments	Information as to reportable segments is summarized below: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Net sales: Endoscopy $ 118,396 $ 100,349 $ 347,446 $ 288,544 Water Purification and Filtration 52,330 47,940 156,828 145,233 Healthcare Disposables 38,522 36,177 114,898 108,256 Dialysis 8,020 7,647 23,896 22,622 Total $ 217,268 $ 192,113 $ 643,068 $ 564,655 None of our customers accounted for 10% or more of our consolidated net sales for the nine months ended April 30, 2018 and 2017 . Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Segment operating income: Endoscopy $ 20,515 $ 18,514 $ 64,662 $ 54,853 Water Purification and Filtration 8,454 7,842 26,753 25,167 Healthcare Disposables 7,588 6,392 23,481 20,857 Dialysis 1,778 2,315 5,795 6,275 38,335 35,063 120,691 107,152 General corporate expenses (1) 11,268 7,619 29,508 24,032 Operating income $ 27,067 $ 27,444 $ 91,183 $ 83,120 _______________________________________________ (1) General corporate expenses relate to unallocated corporate costs primarily related to executive management personnel as well as costs associated with certain facets of our acquisition program and being a publicly traded company.

Acquisitions - Aexis Medical (D

Acquisitions - Aexis Medical (Details) - USD ($)	Mar. 21, 2018	Apr. 30, 2018	Apr. 30, 2017
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired		$ 84,595,000	$ 69,998,000
Aexis Medical
Business Acquisition [Line Items]
Consideration transferred	$ 22,158,000
Acquisition of businesses, net of cash acquired	20,308,000
Contingent consideration, low end of range	0
Contingent consideration, high end of range	$ 1,850,000

Acquisitions - BHT Group (Detai

Acquisitions - BHT Group (Details) - USD ($) $ in Thousands	Aug. 23, 2017	Apr. 30, 2018
BHT Group
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 60,787	$ 60,787

Acquisitions - CR Kennedy & Com

Acquisitions - CR Kennedy & Company (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Jul. 31, 2017
CR Kennedy
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 11,999	$ 11,999

Acquisitions - Vantage (Details

Acquisitions - Vantage (Details) - USD ($) $ in Thousands	Sep. 26, 2016	Jul. 31, 2017
Vantage
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 4,044	$ 4,044

Acquisitions - Accutron (Detail

Acquisitions - Accutron (Details) - USD ($) $ in Thousands	Aug. 01, 2016	Jul. 31, 2017
Accutron
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 53,049	$ 53,049

Acquisitions - Purchase Price A

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Aug. 23, 2017	Apr. 01, 2017	Sep. 26, 2016	Aug. 01, 2016	Apr. 30, 2018	Jul. 31, 2017	Mar. 21, 2018
Business Acquisition [Line Items]
Goodwill					$ 366,804	$ 311,445
Aexis Medical
Business Acquisition [Line Items]
Cash paid (net of cash acquired)					20,308
Fair value of contingent consideration					1,292
Total					21,600
Property and equipment					130
Goodwill					12,425
Deferred income taxes					0
Other working capital, net					(762)
Contingent consideration					(1,292)		$ (1,292)
Total					21,600
Aexis Medical | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:					0
Aexis Medical | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:					11,099
Aexis Medical | Brand names
Business Acquisition [Line Items]
Amortizable intangible assets:					0
BHT Group
Business Acquisition [Line Items]
Cash paid (net of cash acquired)					60,787
Fair value of contingent consideration					0
Total	$ 60,787				60,787
Property and equipment					835
Goodwill					41,357
Deferred income taxes					(5,881)
Other working capital, net					5,776
Contingent consideration					0
Total					60,787
BHT Group | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:					12,500
BHT Group | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:					6,200
BHT Group | Brand names
Business Acquisition [Line Items]
Amortizable intangible assets:					$ 0
CR Kennedy
Business Acquisition [Line Items]
Cash paid (net of cash acquired)						11,999
Fair value of contingent consideration						0
Total		$ 11,999				11,999
Property and equipment						0
Goodwill						5,894
Deferred income taxes						0
Other working capital, net						1,905
Contingent consideration						0
Total						11,999
CR Kennedy | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:						4,200
CR Kennedy | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:						0
CR Kennedy | Brand names
Business Acquisition [Line Items]
Amortizable intangible assets:						0
Vantage
Business Acquisition [Line Items]
Cash paid (net of cash acquired)						4,044
Fair value of contingent consideration						0
Total			$ 4,044			4,044
Property and equipment						433
Goodwill						2,299
Deferred income taxes						0
Other working capital, net						320
Contingent consideration						0
Total						4,044
Vantage | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:						992
Vantage | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:						0
Vantage | Brand names
Business Acquisition [Line Items]
Amortizable intangible assets:						0
Accutron
Business Acquisition [Line Items]
Cash paid (net of cash acquired)						53,049
Fair value of contingent consideration						0
Total				$ 53,049		53,049
Property and equipment						1,676
Goodwill						21,989
Deferred income taxes						112
Other working capital, net						4,472
Contingent consideration						0
Total						53,049
Accutron | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:						12,800
Accutron | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:						10,000
Accutron | Brand names
Business Acquisition [Line Items]
Amortizable intangible assets:						$ 2,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	230,003		222,298
Outstanding options (in shares)	70,000		122,500
Total unrecognized stock-based compensation cost	$ 14,420
Remaining weighted average period for unrecognized compensation cost	20 months
Number of options exercised (in shares)	52,500
Options granted in period (in shares)	0
Deduction in income tax due to exercise of options and vesting of restricted stock	$ 3,406	$ 5,520
Reduction in income tax expense over the equity awards' vesting period	1,394	3,329
Excess tax benefit	$ 2,012	$ 2,191
Employee and directors stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested during period (in shares)	5,000
Aggregate fair value of all options vested	$ 132
Number of options exercised (in shares)	52,500
Aggregate fair value of exercised options	$ 4,049
Options granted in period (in shares)	0
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	191,708
Outstanding options (in shares)	0
Shares available under Plan (in shares)	972,312
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	38,295
Outstanding options (in shares)	70,000

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	$ 2,443	$ 1,945	$ 7,033	$ 6,983
Cost of sales
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	167	83	463	285
Total operating expenses
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	2,276	1,862	6,570	6,698
Operating expenses: Selling
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	559	313	1,188	1,252
Operating expenses: General and administrative
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	1,641	1,520	5,231	5,358
Operating expenses: Research and development
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	$ 76	$ 29	$ 151	$ 88

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Monte Carlo Simulation (Details) - Restricted Stock	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility of common stock	26.60%	27.75%
Average volatility of peer companies	33.72%	32.98%
Average correlation coefficient of peer companies	32.26%	35.35%
Risk-free interest rate	1.62%	0.96%

Stock-Based Compensation - Nonv

Stock-Based Compensation - Nonvested Stock Award Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Apr. 30, 2018USD ($)$ / sharesshares
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	222,298
Granted (in shares)	123,242
Vested (in shares)	(105,171)
Forfeited (in shares)	(10,366)
Nonvested stock awards at the end of the period (in shares)	230,003
Weighted Average Fair Value
Nonvested stock awards at the beginning of the period (in dollars per share) | $ / shares	$ 66.28
Granted (in dollars per share) | $ / shares	101.73
Vested (in dollars per share) | $ / shares	58.98
Forfeited (in dollars per share) | $ / shares	91.09
Nonvested stock awards at the end of the period (in dollars per share) | $ / shares	$ 87.55
Aggregate fair value of nonvested stock awards that vested | $	$ 6,203
Number of Time-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	196,818
Granted (in shares)	94,130
Vested (in shares)	(99,009)
Forfeited (in shares)	(6,623)
Nonvested stock awards at the end of the period (in shares)	185,316
Number of Performance-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	16,235
Granted (in shares)	18,647
Vested (in shares)	(6,162)
Forfeited (in shares)	(1,743)
Nonvested stock awards at the end of the period (in shares)	26,977
Number of Market-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	9,245
Granted (in shares)	10,465
Vested (in shares)	0
Forfeited (in shares)	(2,000)
Nonvested stock awards at the end of the period (in shares)	17,710

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Apr. 30, 2018USD ($)$ / sharesshares
Number of shares
Outstanding at July 31, 2017 (in shares) | shares	122,500
Granted (in shares) | shares	0
Exercised (in shares) | shares	(52,500)
Outstanding at April 30, 2018 (in shares) | shares	70,000
Weighted Average Exercise Price
Outstanding at July 31, 2017 (in dollars per share) | $ / shares	$ 29.36
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	17.04
Outstanding at April 30, 2018 (in dollars per share) | $ / shares	$ 38.60
Stock Option Activity, Additional Disclosures
Options outstanding, Weighted average contractual life remaining (in years)	1 year 2 months 12 days
Options outstanding, Aggregate intrinsic value (in dollars) | $	$ 5,143
Options exercisable, number of options (in shares) | shares	65,000
Options exercisable, Weighted average exercise price (in dollars per share) | $ / shares	$ 37.31
Options exercisable, Weighted average contractual life remaining (in years)	1 year 1 month 9 days
Options exercisable, Aggregate intrinsic value (in dollars) | $	$ 4,859

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and parts	$ 49,365	$ 45,831
Work-in-process	15,498	13,484
Finished goods	56,297	48,262
Reserve for excess and obsolete inventory	(8,051)	(8,853)
Total	$ 113,109	$ 98,724

Derivatives (Details)

Derivatives (Details) - Foreign currency forward contracts - Designated as hedging instrument - Fair value hedge instruments $ in Thousands	9 Months Ended
	Apr. 30, 2018USD ($)instrument	Jul. 31, 2017USD ($)instrument
Derivatives
Term of contracts	1 month
Number of contracts | instrument	8	8
Aggregate value of contracts | $	$ 29,897	$ 24,762

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	Apr. 30, 2018	Mar. 21, 2018	Oct. 31, 2017	Jul. 31, 2017
Aexis Medical
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Contingent consideration, low end of range		$ 0
Contingent consideration, high end of range		1,850,000
Contingent consideration	$ 1,292,000	$ 1,292,000
Level 3 | Recurring basis | Jet Prep Ltd.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Assumed contingent obligation			$ 0	$ 1,138,000

Fair Value Measurements - Hiera

Fair Value Measurements - Hierarchy Levels (Details) - Recurring basis - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Assets:
Total assets	$ 103	$ 102
Liabilities:
Assumed contingent obligation		12
Total accrued expenses		12
Long-term debt	169,000	126,000
Contingent consideration	1,262	1,126
Total other long-term liabilities:	1,262	1,126
Total liabilities	170,262	127,138
Money markets
Assets:
Money markets	103	102
Level 1
Assets:
Total assets	103	102
Liabilities:
Assumed contingent obligation		0
Total accrued expenses		0
Long-term debt	0	0
Contingent consideration	0	0
Total other long-term liabilities:	0	0
Total liabilities	0	0
Level 1 | Money markets
Assets:
Money markets	103	102
Level 2
Assets:
Total assets	0	0
Liabilities:
Assumed contingent obligation		0
Total accrued expenses		0
Long-term debt	169,000	126,000
Contingent consideration	0	0
Total other long-term liabilities:	0	0
Total liabilities	169,000	126,000
Level 2 | Money markets
Assets:
Money markets	0	0
Level 3
Assets:
Total assets	0	0
Liabilities:
Assumed contingent obligation		12
Total accrued expenses		12
Long-term debt	0	0
Contingent consideration	1,262	1,126
Total other long-term liabilities:	1,262	1,126
Total liabilities	1,262	1,138
Level 3 | Money markets
Assets:
Money markets	$ 0	$ 0

Fair Value Measurements - Level

Fair Value Measurements - Level 3 Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0	$ 1,138	$ 1,138	$ 1,138
Original fair value of contingent consideration	1,292	0	1,292	0
Foreign currency translation	(30)	0	(30)	0
Net settlements	0	0	(1,138)	0
Ending Balance	$ 1,262	$ 1,138	$ 1,262	$ 1,138

Intangibles and Goodwill - Inta

Intangibles and Goodwill - Intangible Assets Summary (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Intangible assets with finite lives:
Gross	$ 206,270	$ 172,703
Accumulated Amortization	(68,242)	(55,739)
Net	138,028	116,964
Intangible assets with indefinite lives:
Trademarks and tradenames	7,524	7,548
Total intangible assets
Gross	213,794	180,251
Accumulated Amortization	(68,242)	(55,739)
Net	145,552	124,512
Customer relationships
Intangible assets with finite lives:
Gross	133,133	119,576
Accumulated Amortization	(43,145)	(34,773)
Net	89,988	84,803
Total intangible assets
Accumulated Amortization	(43,145)	(34,773)
Technology
Intangible assets with finite lives:
Gross	59,080	39,064
Accumulated Amortization	(18,663)	(15,260)
Net	40,417	23,804
Total intangible assets
Accumulated Amortization	(18,663)	(15,260)
Technology | Jet Prep Ltd.
Intangible assets with finite lives:
Gross		3,730
Accumulated Amortization		(3,730)
Total intangible assets
Accumulated Amortization		(3,730)
Brand names
Intangible assets with finite lives:
Gross	8,230	8,188
Accumulated Amortization	(3,719)	(3,225)
Net	4,511	4,963
Total intangible assets
Accumulated Amortization	(3,719)	(3,225)
Non-compete agreements
Intangible assets with finite lives:
Gross	3,060	3,092
Accumulated Amortization	(1,571)	(1,428)
Net	1,489	1,664
Total intangible assets
Accumulated Amortization	(1,571)	(1,428)
Patents and other registrations
Intangible assets with finite lives:
Gross	2,767	2,783
Accumulated Amortization	(1,144)	(1,053)
Net	1,623	1,730
Total intangible assets
Accumulated Amortization	$ (1,144)	$ (1,053)

Intangibles and Goodwill - Narr

Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4,480	$ 3,964	$ 12,892	$ 11,930
Future amortization - remainder of 2018	5,253		5,253
Future amortization - 2019	18,008		18,008
Future amortization - 2020	16,315		16,315
Future amortization - 2021	16,313		16,313
Future amortization - 2022	15,969		15,969
Future amortization - 2023	$ 15,586		$ 15,586

Intangibles and Goodwill - Good

Intangibles and Goodwill - Goodwill Rollforward (Details) $ in Thousands	9 Months Ended
	Apr. 30, 2018USD ($)
Changes in Goodwill
Balance at the beginning of the period	$ 311,445
Acquisitions	53,782
Foreign currency translation	1,577
Balance at the end of the period	366,804
Endoscopy
Changes in Goodwill
Balance at the beginning of the period	129,945
Acquisitions	53,782
Foreign currency translation	1,717
Balance at the end of the period	185,444
Water Purification and Filtration
Changes in Goodwill
Balance at the beginning of the period	59,088
Acquisitions	0
Foreign currency translation	(140)
Balance at the end of the period	58,948
Healthcare Disposables
Changes in Goodwill
Balance at the beginning of the period	114,279
Acquisitions	0
Foreign currency translation	0
Balance at the end of the period	114,279
Dialysis
Changes in Goodwill
Balance at the beginning of the period	8,133
Acquisitions	0
Foreign currency translation	0
Balance at the end of the period	$ 8,133

Financing Arrangements (Details

Financing Arrangements (Details) - Credit Agreement - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Jul. 31, 2017
Financing Arrangements
Fees on unused portion of credit facilities (as a percent)	0.20%
Shares of foreign subsidiaries pledged as security (as a percent)	65.00%
Outstanding borrowings	$ 169,000	$ 126,000
Other assets
Financing Arrangements
Unamortized debt issuance costs	$ 334	$ 580
Minimum
Financing Arrangements
Fees on unused portion of credit facilities (as a percent)	0.20%
Maximum
Financing Arrangements
Fees on unused portion of credit facilities (as a percent)	0.40%
Lender's base rate
Financing Arrangements
Margin on reference rate (as a percent)	0.25%
Reference rate (as a percent)	5.00%
Lender's base rate | Minimum
Financing Arrangements
Margin on reference rate (as a percent)	0.25%
Lender's base rate | Maximum
Financing Arrangements
Margin on reference rate (as a percent)	1.25%
LIBOR
Financing Arrangements
Margin on reference rate (as a percent)	1.25%
LIBOR | Minimum
Financing Arrangements
Margin on reference rate (as a percent)	1.25%
Reference rate (as a percent)	1.89%
LIBOR | Maximum
Financing Arrangements
Margin on reference rate (as a percent)	2.25%
Reference rate (as a percent)	1.90%

Commitments and Contingencies -

Commitments and Contingencies - Contingent Consideration and Assumed Contingent Liability (Details) - USD ($) $ in Thousands	Oct. 31, 2017	Jul. 31, 2017
Recurring basis | Level 3 | Jet Prep Ltd.
Business Acquisition [Line Items]
Assumed contingent obligation	$ 0	$ 1,138

Commitments and Contingencies52

Commitments and Contingencies - Legal Matters (Details) - ARC Medical Design $ in Thousands	1 Months Ended	3 Months Ended
	May 31, 2017patent	Apr. 30, 2018USD ($)
Loss Contingencies [Line Items]
Number of patents allegedly infringed (in patents) | patent	2
Legal settlement costs | $		$ 2,608

Earnings Per Common Share - Com

Earnings Per Common Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Numerator for basic and diluted earnings per share:
Net income	$ 18,736	$ 17,511	$ 74,153	$ 54,381
Less income allocated to participating securities	(59)	(98)	(281)	(335)
Net income available to common shareholders	$ 18,677	$ 17,413	$ 73,872	$ 54,046
Denominator for basic and diluted earnings per share, as adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock (in shares)	41,580,387	41,489,587	41,559,312	41,459,067
Dilutive effect of stock awards using the treasury stock method and the average market price for the year (in shares)	69,134	75,431	63,642	74,420
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock (in shares)	41,649,521	41,565,018	41,622,954	41,533,487
Earnings per share attributable to common stock:
Basic earnings per share (in dollars per share)	$ 0.45	$ 0.42	$ 1.78	$ 1.30
Diluted earnings per share (in dollars per share)	$ 0.45	$ 0.42	$ 1.77	$ 1.30
Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been anti-dilutive (in shares)	0	0	0	0

Earnings Per Common Share - Wei

Earnings Per Common Share - Weighted Average Shares (Details) - shares	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, to the entity's total weighted average number of shares and common stock equivalents, including participating securities
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock (in shares)	41,649,521	41,565,018	41,622,954	41,533,487
Participating securities (in shares)	133,954	233,501	159,932	259,050
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities (in shares)	41,783,475	41,798,519	41,782,886	41,792,537

Income Taxes - Reconciliation (

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Income Tax Disclosure [Abstract]
Effective blended tax rate				26.90%
Revaluation benefit due to TCJA		$ 8,398
TCJA expenses related to deemed repatriation of deferred foreign income		294
TCJA, Revaluation of deferred tax assets and liabilities, provisional income tax expense (benefit)		$ (8,692)
Measurement period adjustment - transition tax expense (benefit)	$ (294)
Consolidated effective income tax rate (as a percent)	26.70%		33.60%	16.20%	31.90%
Difference attributable to:
Deferred tax revaluation	(0.40%)			(7.00%)
U.S. federal statutory rate decrease	(8.10%)			(8.10%)
Foreign operations	(1.30%)			(0.30%)
State taxes	3.50%			1.50%
Excess tax benefit	0.00%			(2.30%)
Other	(0.60%)			0.50%

Accumulated Other Comprehensi56

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Components and changes in accumulated other comprehensive (loss) income
Beginning Balance			$ 523,932
Other comprehensive (loss) income for foreign currency translation	$ (6,538)	$ 1,384	4,608	$ (2,549)
Ending Balance	601,306		601,306
AOCI Attributable to Parent
Components and changes in accumulated other comprehensive (loss) income
Beginning Balance	1,246	(15,728)	(9,900)	(11,795)
Ending Balance	$ (5,292)	$ (14,344)	$ (5,292)	$ (14,344)

Reportable Segments - Concentra

Reportable Segments - Concentration Risk (Details) - Segment sales - Customer concentration	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Water Purification and Filtration | Two customers
Concentration risk
Concentration risk within segment (as a percent)	50.10%	50.70%
Healthcare Disposables | Three customers
Concentration risk
Concentration risk within segment (as a percent)	47.70%	50.40%
Dialysis | Two customers
Concentration risk
Concentration risk within segment (as a percent)	39.00%	38.80%

Reportable Segments - Results (

Reportable Segments - Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Information as to operating segments
Net sales	$ 217,268	$ 192,113	$ 643,068	$ 564,655
Segment operating income	27,067	27,444	91,183	83,120
General corporate expenses	37,784	29,204	102,068	87,672
Operating Segment
Information as to operating segments
Segment operating income	38,335	35,063	120,691	107,152
Endoscopy
Information as to operating segments
Net sales	118,396	100,349	347,446	288,544
Endoscopy | Operating Segment
Information as to operating segments
Segment operating income	20,515	18,514	64,662	54,853
Water Purification and Filtration
Information as to operating segments
Net sales	52,330	47,940	156,828	145,233
Water Purification and Filtration | Operating Segment
Information as to operating segments
Segment operating income	8,454	7,842	26,753	25,167
Healthcare Disposables
Information as to operating segments
Net sales	38,522	36,177	114,898	108,256
Healthcare Disposables | Operating Segment
Information as to operating segments
Segment operating income	7,588	6,392	23,481	20,857
Dialysis
Information as to operating segments
Net sales	8,020	7,647	23,896	22,622
Dialysis | Operating Segment
Information as to operating segments
Segment operating income	1,778	2,315	5,795	6,275
General corporate | Segment reconciling items
Information as to operating segments
General corporate expenses	$ 11,268	$ 7,619	$ 29,508	$ 24,032