Cantel Medical (CMD) 10-Q 30 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2018	Nov. 30, 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	Oct. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		41,721,213
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Current assets:
Cash and cash equivalents	$ 64,030	$ 94,097
Accounts receivable, net of allowance for doubtful accounts of $1,378 and $1,149	125,140	118,642
Inventories, net	111,071	107,592
Prepaid expenses and other current assets	17,340	17,912
Total current assets	317,581	338,243
Property and equipment, net	148,584	111,417
Intangible assets, net	137,758	137,361
Goodwill	370,878	368,027
Other assets	5,512	5,749
Deferred income taxes	3,286	2,911
Total assets	983,599	963,708
Current liabilities:
Accounts payable	41,984	34,258
Compensation payable	23,875	30,595
Accrued expenses	31,274	28,525
Deferred revenue	29,280	28,614
Current portion of long-term debt	10,000	10,000
Income taxes payable	7,374	2,791
Total current liabilities	143,787	134,783
Long-term debt	184,940	187,302
Deferred income taxes	27,326	27,624
Other long-term liabilities	5,186	5,132
Total liabilities	361,239	354,841
Commitments and contingencies (Note 11)
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 46,307,058 shares and outstanding 41,721,316 shares as of October 31, 2018; issued 46,243,582 shares and outstanding 41,706,084 shares as of July 31, 2018	4,631	4,624
Additional paid-in capital	187,102	184,212
Retained earnings	511,647	491,540
Accumulated other comprehensive loss	(16,679)	(11,456)
Treasury Stock, at cost; 4,585,742 shares as of October 31, 2018; 4,537,498 shares as of July 31, 2018	(64,341)	(60,053)
Total stockholders’ equity	622,360	608,867
Total liabilities and stockholders' equity	$ 983,599	$ 963,708

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,378	$ 1,149
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)	46,307,058	46,243,582
Common Stock, outstanding (in shares)	41,721,316	41,706,084
Treasury Stock (in shares)	4,585,742	4,537,498

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Net sales
Net sales	$ 225,589	$ 212,766
Cost of sales
Cost of sales	120,340	112,107
Gross profit	105,249	100,659
Expenses:
Selling	33,958	31,600
General and administrative	36,535	32,096
Research and development	7,078	5,329
Total operating expenses	77,571	69,025
Income from operations	27,678	31,634
Interest expense, net	2,026	1,189
Other income	0	(1,138)
Income before income taxes	25,652	31,583
Income taxes	6,410	8,654
Net income	$ 19,242	$ 22,929
Earnings per common share:
Basic (in dollars per share)	$ 0.46	$ 0.55
Diluted (in dollars per share)	0.46	0.55
Dividends declared per common share (in dollars per share)	$ 0	$ 0
Product sales
Net sales
Net sales	$ 195,760	$ 187,965
Cost of sales
Cost of sales	99,310	95,099
Product service
Net sales
Net sales	29,829	24,801
Cost of sales
Cost of sales	$ 21,030	$ 17,008

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 19,242	$ 22,929
Other comprehensive loss:
Foreign currency translation	(5,223)	(1,233)
Total other comprehensive loss	(5,223)	(1,233)
Comprehensive income	$ 14,019	$ 21,696

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Cash flows from operating activities
Net income	$ 19,242	$ 22,929
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,691	4,036
Amortization	6,041	4,048
Stock-based compensation expense	2,576	1,851
Deferred income taxes	(674)	780
Other non-cash items, net	1,236	(67)
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable	(4,087)	8,584
Inventories	(3,359)	(2,629)
Prepaid expenses and other assets	1,089	(6,273)
Accounts payable and other liabilities	1,055	(6,679)
Income taxes	4,459	3,492
Net cash provided by operating activities	32,269	30,072
Cash flows from investing activities
Capital expenditures	(38,834)	(6,492)
Acquisition of businesses, net of cash acquired	(17,000)	(60,345)
Net cash used in investing activities	(55,834)	(66,837)
Cash flows from financing activities
Repayments of long-term debt	(2,500)	0
Borrowings under revolving credit facility	0	61,300
Repayments under revolving credit facility	0	(19,300)
Purchases of treasury stock	(4,288)	(5,822)
Net cash (used in) provided by financing activities	(6,788)	36,178
Effect of exchange rate changes on cash and cash equivalents	286	1,223
(Decrease) increase in cash and cash equivalents	(30,067)	636
Cash and cash equivalents at beginning of period	94,097	36,584
Cash and cash equivalents at end of period	$ 64,030	$ 37,220

Basis of Presentation

Basis of Presentation	3 Months Ended
	Oct. 31, 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. During the first quarter of fiscal 2019, we changed the names of our reportable segments to better align with our key customers and the markets we serve. This decision resulted in a change from a financial reporting perspective as the industrial biological and chemical indicator business has moved from the Dental segment to the Life Sciences segment. Prior year segment disclosures have been recast to conform to the current year presentation. See Note 15, “Reportable Segments.” Cantel is a leading provider of infection prevention products and services in the healthcare market, specializing in the following reportable segments: Medical, Life Sciences, Dental and Dialysis. 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, 2018 (the “2018 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, 2018 was derived from the audited Consolidated Balance Sheet of Cantel at that date. Certain prior year amounts have been reclassified to conform to the current year presentation. Subsequent Events We performed a review of events subsequent to October 31, 2018 through the date of issuance of the accompanying unaudited consolidated interim financial statements. See Note 16, “Subsequent Event.”

Accounting Pronouncements

Accounting Pronouncements	3 Months Ended
	Oct. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Accounting Pronouncements	Accounting Pronouncements Newly Adopted Accounting Standards In May 2017, the FASB issued ASU 2017-09, “ (Topic 718) 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 ASC 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. Accordingly, we adopted ASU 2017-09 on August 1, 2018. The adoption of ASU 2017-09 did not have a material impact on our financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15, “(Topic 230) Classification of Certain Cash Receipts and Cash Payments , ” (“ASU 2016-15”). This guidance makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019). Accordingly, we adopted ASU 2016-15 on August 1, 2018. The adoption of ASU 2016-15 did not have a material impact on our financial position, results of operations and cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) , ” (“ASU 2014-09”), which supersedes 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),” (“ASU 2015-14”), 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. We adopted the collective standard (“ASC 606”) on August 1, 2018. See Note 5, “Revenue Recognition” for a discussion of the impact and required disclosures. Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”) to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021), including interim periods within that reporting period. The adoption of ASU 2018-15 is not expected to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”) to modify the disclosure requirements on fair value measurements in ASC 820, “Fair Value Measurement” . ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021), including interim periods within that reporting period. The adoption of ASU 2018-13 is not expected to have a material impact on our financial position, results of operations or cash flows. 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 material impact on our financial position, results of operations or cash flows. 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. The adoption of ASU 2017-12 is not expected to have a material impact on our financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, “(Topic 350) Simplifying the Test for Goodwill Impairment ,” (“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. 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 31, 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 material impact on our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, “ (Topic 842) Leases ,” (“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. ASU 2016-02 is effective for fiscal years beginning after December 31, 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. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), and ASU 2018-11, “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”), which provide narrow adjustments relating to ASU 2016-02 and improvements to comparative reporting requirements for initial adoption and for separating components of a contract for lessors. We are currently in the process of evaluating the impact of the collective standard (“ASC 842”) on our financial position, results of operations and cash flows.

Acquisitions

Acquisitions	3 Months Ended
	Oct. 31, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions Fiscal 2019 CES business: On August 1, 2018, we acquired certain net assets of Stericycle Inc. related to its controlled environmental solutions business (“CES business”) for total cash consideration, excluding acquisition-related costs, of $17,000 . The CES business is a leading provider of testing and certification, environmental monitoring and decontamination services for clean rooms and other controlled environments to ensure safety, regulatory compliance and quality control, and is included in our Life Sciences segment. Fiscal 2018 Aexis: On March 21, 2018, we purchased all of the issued and outstanding stock of Aexis Medical BVBA (“Aexis”) for total consideration, excluding acquisition-related costs, of $21,600 , consisting of $20,308 of cash 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 specializes in advanced software solutions focused on the tracking and monitoring of instrument reprocessing for hospitals and healthcare professionals, and is included in our Medical 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 $60,216 . 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 Medical segment. 2019 2018 Purchase Price Allocation CES Business (1) Aexis (1) BHT Group (1) (Preliminary) (Preliminary) (Final) Purchase Price: Cash paid $ 17,000 $ 20,308 $ 60,216 Fair value of contingent consideration — 1,292 — Total $ 17,000 $ 21,600 $ 60,216 Allocation: Property and equipment 548 130 835 Amortizable intangible assets: Customer relationships 8,100 1,800 12,500 Technology — 4,600 6,200 Goodwill 6,129 17,092 40,934 Deferred income taxes — (1,639 ) (5,881 ) Other working capital 2,223 909 5,628 Contingent consideration — (1,292 ) — Total $ 17,000 $ 21,600 $ 60,216 _______________________________________________ (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	3 Months Ended
	Oct. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation 2016 Equity Incentive Plan At October 31, 2018 , 281,708 nonvested restricted stock awards were outstanding under the 2016 plan. No options were outstanding under the 2016 plan. At October 31, 2018 , 813,905 shares were 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 October 31, 2018 , options to purchase 40,000 shares of common stock were outstanding, and 114 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 October 31, 2018 2017 Cost of sales $ 237 $ 115 Operating expenses: Selling 571 365 General and administrative 1,710 1,333 Research and development 58 38 Total operating expenses 2,339 1,736 Stock-based compensation expense $ 2,576 $ 1,851 At October 31, 2018 , total unrecognized stock-based compensation expense related to total nonvested stock options and restricted stock awards was $23,664 with a remaining weighted average period of 22 months over which such expense is expected to be recognized. We determined the fair value of our market-based restricted stock awards using a Monte Carlo simulation on the date of grant using the following assumptions: Three Months Ended October 31, 2018 2017 Volatility of common stock 27.54 % 26.60 % Average volatility of peer companies 36.55 % 33.72 % Average correlation coefficient of peer companies 27.18 % 32.26 % Risk-free interest rate 2.93 % 1.62 % A summary of nonvested stock award activity for the three months ended October 31, 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, 2018 168,320 26,076 17,710 212,106 $ 88.87 Granted 117,832 27,336 16,765 161,933 $ 91.91 Vested (1) (80,728 ) (10,235 ) — (90,963 ) $ 76.16 Forfeited (1,254 ) — — (1,254 ) $ 88.01 October 31, 2018 204,170 43,177 34,475 281,822 $ 94.95 _______________________________________________ (1) The aggregate fair value of all nonvested stock awards which vested was approximately $6,930 . A summary of stock option activity for the three months ended October 31, 2018 follows: Number of shares Weighted Average Exercise Price Weighted Average Contractual Life Remaining (Years) Aggregate Intrinsic Value Outstanding at July 31, 2018 70,000 $ 38.60 Exercised (30,000 ) 31.81 Outstanding at October 31, 2018 40,000 $ 43.70 1.32 $ 1,418 Exercisable at October 31, 2018 40,000 $ 43.70 1.32 $ 1,418 During the three months ended October 31, 2018 , 5,000 options vested, with an aggregate fair value of approximately $277 . During the three months ended October 31, 2018 , 30,000 options were exercised, with an aggregate fair value of approximately $1,787 . At October 31, 2018 , all outstanding options were vested. 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. For the three months ended October 31, 2018 , income tax deductions of $3,059 were generated, of which $2,062 were recorded as a reduction in income tax expense over the equity awards’ vesting period and the remaining excess tax benefit of $997 was recorded as a reduction in income tax expense. For the three months ended October 31, 2017 , income tax deductions of $4,125 were generated, of which $1,839 were recorded as a reduction in income tax expense over the equity awards’ vesting period and the remaining excess tax benefit of $2,286 was recorded as a reduction in income tax expense.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Adoption of “Revenue from Contracts with Customers (ASC 606)” We adopted ASC 606, effective August 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of August 1, 2018. Results for reporting beginning after August 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and will continue to be reported in accordance with our historic accounting under ASC 605. Due to the cumulative impact of adopting ASC 606, we recorded a net increase to opening retained earnings, net of tax, as of August 1, 2018, which was not material. The impact is primarily related to the timing of revenue recognition for the shipment of products in both our Medical and Life Sciences segments where risk of loss provisions are present (“synthetic FOB destination”). The new standard does not require us to defer revenue for these products and allows us to recognize revenue at the time of shipment. The cumulative adjustment to retained earnings also includes the impact of the change in timing of revenue recognition associated with software licensing arrangements in our Medical segment. Additionally, revenue related to software renewals was historically recognized on a ratable basis over the license period. Under ASC 606, the license is considered functional intellectual property, and is considered to be transferred to the customer at a point in time, specifically, at the start of each annual renewal period. As a result, revenue related to our annual software license renewals has been accelerated. Revenue Recognition The following table gives information as to the net sales disaggregated by geography and product line: Three Months Ended October 31, Net sales by geography 2018 2017 (1) United States $ 168,938 $ 160,940 Europe/Africa/Middle East 32,014 28,101 Asia/Pacific 15,752 13,607 Canada 7,373 8,476 Latin America/South America 1,512 1,642 Total $ 225,589 $ 212,766 Net sales by product line Capital equipment $ 58,132 $ 59,169 Consumables 136,821 128,359 Product service 29,829 24,801 All other (2) 807 437 Total $ 225,589 $ 212,766 _______________________________________________ (1) As noted above, prior year amounts have not been adjusted under the modified retrospective method. (2) Primarily includes software licensing revenues. A portion of our medical, life sciences and dialysis sales include multiple performance obligations, whereby revenue is allocated to the equipment, installation and consumable components based upon their relative standalone selling prices, which includes comparable historical transactions of similar equipment, installation and consumables sold as stand-alone components. Revenue on capital equipment and consumables is recognized when control of the equipment or consumable transfers to the customer, which is generally driven by the underlying shipping terms of the transaction. Revenue on the installation component is recognized when the installation is complete. The most significant judgments related to these arrangements include (i) identifying the various performance obligations of these arrangements and (ii) determining the relative standalone selling price of each performance obligation. With respect to certain of our customers, rebates are provided. Such rebates, which consist primarily of volume rebates, are provided for as a reduction of sales at the time of revenue recognition. Such allowances are determined based on estimated projections of sales volume for the entire rebate periods. If it becomes known that sales volume to customers will deviate from original projections, the rebate provisions originally established would be adjusted accordingly. We also offer certain volume-based rebates to our distribution customers, which we record as variable consideration when calculating the transaction price. We use information available at the time and our historical experience with each customer to estimate the rebate amount by applying the expected value method. Remaining Performance Obligations At October 31, 2018 , the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $71,549 , primarily within the Medical segment. We expect to recognize revenue on approximately 70% of these remaining performance obligations over the remainder of fiscal 2019 and fiscal 2020. These performance obligations primarily reflect the future product service revenues for multi-period service arrangements. Contract Liabilities Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Our contract liabilities arise primarily in the Medical and Life Sciences segments when payment is received upfront for various multi-period extended service arrangements. We expect to recognize substantially all of this revenue over the next twelve months. A summary of contract liabilities activity for the three months ended October 31, 2018 follows: Contract Liabilities Balance, August 1, 2018 $ 29,015 Revenue deferred in current year 14,524 Deferred revenue recognized (13,547 ) Foreign currency translation (163 ) Balance, October 31, 2018 29,829 Contract liabilities included in Other long-term liabilities (549 ) Deferred revenue $ 29,280 Practical Expedients and Policy Elections As part of the cost to obtain a contract, we may pay incremental commissions to sales employees upon entering into a sales contract. Under ASC 606, we have elected to expense these costs as incurred when the period of benefit is less than one year. For certain multi-period contracts, we capitalize these amounts as contract costs, and amortize them based on the contract duration to which the assets relate, which ranges from two to five years. The amounts at October 31, 2018 , were not material. For certain international contracts with distributors, we recognize a receivable at the point in time in which we have an unconditional right to payment. Most customers are required to pay a portion of the transaction price in advance and the remaining balance within 30 days of receiving the related products. Accordingly, we have elected to use the practical expedient which allows us to ignore the possible existence of a significant financing component within these contracts. As a policy, for shipping and handling costs incurred after the customer has obtained control of a good, we will continue to treat these costs as a fulfillment cost rather than as an additional promised service. Additionally, in certain U.S. states, we are required to collect sales taxes from our customers, and in certain international jurisdictions, we are required to collect value added taxes. The tax collected is recorded as a liability until remitted to the taxing authority.

Inventories, Net

Inventories, Net	3 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
Inventories, Net	Inventories, Net A summary of inventories is as follows: October 31, 2018 July 31, 2018 Raw materials and parts $ 53,097 $ 49,054 Work-in-process 14,122 13,189 Finished goods 52,348 53,948 Reserve for excess and obsolete inventory (8,496 ) (8,599 ) Total $ 111,071 $ 107,592

Derivatives

Derivatives	3 Months Ended
	Oct. 31, 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 not material. There were seven foreign currency forward contracts with an aggregate notional value of $37,684 and $30,159 at October 31, 2018 and July 31, 2018 , respectively, which covered certain assets and liabilities that were denominated in currencies other than each entity’s functional currency. For the three months ended October 31, 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	3 Months Ended
	Oct. 31, 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. 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 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. At 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 is not 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 zero. See Note 11, "Commitments and Contingencies." The fair values of our financial instruments measured on a recurring basis were categorized as follows: October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 104 $ — $ — $ 104 Total assets $ 104 $ — $ — $ 104 Liabilities: Other long-term liabilities: Contingent consideration — — 1,320 1,320 Total liabilities $ — $ — $ 1,320 $ 1,320 July 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 104 $ — $ — $ 104 Total assets $ 104 $ — $ — $ 104 Liabilities: Other long-term liabilities: Contingent obligation — — 1,298 1,298 Total liabilities $ — $ — $ 1,298 $ 1,298 A reconciliation of our liabilities that are measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows: Aexis Contingent Consideration Jet Prep Assumed Contingent Obligation Total Balance, July 31, 2018 $ 1,298 $ — $ 1,298 Loss included in general and administrative expense 22 — 22 Net purchases, issuances, sales and settlements — — — Balance, October 31, 2018 $ 1,320 $ — $ 1,320 Disclosure of Fair Value of Financial Instruments At October 31, 2018 and July 31, 2018 , 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. At October 31, 2018 and July 31, 2018 , the carrying value of our outstanding borrowings under our credit facility approximated the fair value of these obligations as the respective borrowings rates reflect prevailing market interest rates.

Intangibles and Goodwill

Intangibles and Goodwill	3 Months Ended
	Oct. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles and Goodwill	Intangibles and Goodwill Our intangible assets consist of the following: October 31, 2018 July 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships (1) $ 134,866 $ (43,177 ) $ 91,689 $ 133,347 $ (45,618 ) $ 87,729 Technology (1) 50,918 (18,724 ) 32,194 54,585 (19,836 ) 34,749 Brand names (1) 6,874 (2,774 ) 4,100 8,141 (3,857 ) 4,284 Non-compete agreements (1) 2,880 (1,505 ) 1,375 3,060 (1,628 ) 1,432 Patents and other registrations 2,855 (1,150 ) 1,705 2,826 (1,179 ) 1,647 198,393 (67,330 ) 131,063 201,959 (72,118 ) 129,841 Trademarks and tradenames 6,695 — 6,695 7,520 — 7,520 Total intangible assets $ 205,088 $ (67,330 ) $ 137,758 $ 209,479 $ (72,118 ) $ 137,361 _______________________________________________ (1) During the first quarter of fiscal 2019, we wrote off $10,335 of fully amortized intangible assets. Amortization expense related to intangible assets was $6,041 and $4,048 for the three months ended October 31, 2018 and 2017 , respectively. We expect to recognize an additional $13,451 of amortization expense related to intangible assets for the remainder of fiscal 2019 , and thereafter $16,288 , $15,949 , $15,948 , $15,576 and $14,476 of amortization expense for fiscal years 2020 , 2021 , 2022 , 2023 and 2024 , respectively. Goodwill changed during the three months ended October 31, 2018 as follows: Medical Life Sciences Dental Dialysis Total Goodwill Balance, July 31, 2018 $ 186,690 $ 58,925 $ 114,279 $ 8,133 $ 368,027 Acquisitions — 6,129 — — 6,129 Foreign currency translation (3,180 ) (98 ) — — (3,278 ) Balance, October 31, 2018 $ 183,510 $ 64,956 $ 114,279 $ 8,133 $ 370,878

Financing Arrangements

Financing Arrangements	3 Months Ended
	Oct. 31, 2018
Debt Disclosure [Abstract]
Financing Arrangements	Financing Arrangements Our long-term debt consists of the following: October 31, 2018 July 31, 2018 Tranche A term loan outstanding $ 197,500 $ 200,000 Unamortized debt issuance costs (2,560 ) (2,698 ) Total long-term debt, net of unamortized debt issuance costs 194,940 197,302 Current portion of long-term debt (10,000 ) (10,000 ) Long-term debt, net of unamortized debt issuance costs and excluding current portion $ 184,940 $ 187,302 On June 28, 2018, we entered into a Fourth Amended and Restated Credit Agreement (the “2018 Credit Agreement”). The 2018 Agreement refinances our credit facility under the Third Amended and Restated Credit Agreement (the “Existing Credit Agreement”) dated March 4, 2014, to include a $200,000 tranche A term loan and a $400,000 revolving credit facility. Subject to the satisfaction of certain conditions precedent, including the consent of the lenders, we may from time to time increase our borrowing capacity under the revolving credit facility or tranche A term loan by an aggregate amount not to exceed $300,000 . The 2018 Credit Agreement expires on June 28, 2023. Additionally, subject to certain restrictions and conditions (i) any of our domestic or foreign subsidiaries may become borrowers and (ii) borrowings may occur in multi-currencies. At October 31, 2018 , we had $197,500 of term loan A borrowings outstanding and no revolver borrowings under the 2018 Credit Agreement. The tranche A term loan is subject to principal amortization, with $10,000 due and payable in each of fiscal 2019, 2020, 2021 and 2022, with the remaining $160,000 due and payable at maturity on June 28, 2023. During the three months ended October 31, 2018 , we made principal payments of $2,500 . Borrowings under the 2018 Credit Agreement bear interest at rates ranging from 0.00% to 1.00% above prime rate for base rate borrowings, or at rates ranging from 1.00% to 2.00% above the London Interbank Offered Rate (“LIBOR”), depending upon our “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 2018 Credit Agreement (“Consolidated EBITDA”). At October 31, 2018 , the lender’s base rate was 5.25% and the LIBOR rate was 2.30% . 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 October 31, 2018 . The 2018 Credit Agreement also provides for fees on the unused portion of our facility at rates ranging from 0.20% to 0.35% , depending upon our Consolidated Leverage Ratio, which was 0.20% at October 31, 2018 . At October 31, 2018 , the tranche A term loan interest rate was approximately 3.55% . The 2018 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 covenants under the 2018 Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingent Consideration and Assumed Contingent Liability At October 31, 2018 , $1,320 was recorded related to the Aexis acquisition, which is for the estimated fair value of contingent consideration payable upon the achievement of certain purchase order targets through March 21, 2020. 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 zero during the first quarter of fiscal 2018, resulting in a benefit through other income for the three months ended October 31, 2017 . Legal Matters 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	3 Months Ended
	Oct. 31, 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 October 31, 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 19,242 $ 22,929 Less income allocated to participating securities (33 ) (124 ) Net income available to common shareholders $ 19,209 $ 22,805 Denominator for basic and diluted earnings per share, adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock 41,640,745 41,521,952 Dilutive effect of stock awards using the treasury stock method and the average market price for the year 65,028 66,233 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,705,773 41,588,185 Earnings per share attributable to common stock: Basic earnings per share $ 0.46 $ 0.55 Diluted earnings per share $ 0.46 $ 0.55 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 our total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table: Three Months Ended October 31, 2018 2017 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,705,773 41,588,185 Participating securities 69,452 225,675 Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities 41,775,225 41,813,860

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 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 (the “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 (beginning with the second quarter) and the new U.S. federal statutory rate of 21% applies to fiscal 2019 and beyond. 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 potential new or interpretative guidance issued by the SEC, the FASB, or the Internal Revenue Service (“IRS”). We continue to analyze the calculations of earnings and profits in certain foreign subsidiaries, including whether those earnings are held in cash or other assets, as well as the state tax impact of the 2017 Tax Act. Furthermore, such analysis includes but is not limited to provisions that take effect in fiscal 2019 and not subject to SAB 118 such as GILTI and certain employee expense deductions. In the fourth quarter ended July 31, 2018, we recorded a benefit of $8,657 due to the impact of the 2017 Tax Act on our deferred tax assets and liabilities on the basis of actual fiscal 2018 results of operations. A reconciliation of the consolidated effective income tax rate from the three months ended October 31, 2017 to the three months ended October 31, 2018 is as follows: Effective Rate, October 31, 2017 27.4 % U.S. federal statutory rate decrease (14.0 )% Foreign operations 5.0 % State taxes 0.9 % Excess tax benefit 3.4 % Other 2.3 % Effective Rate, October 31, 2018 25.0 %

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Oct. 31, 2018
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components and changes in accumulated other comprehensive loss were as follows: Three Months Ended October 31, 2018 2017 Beginning balance $ (11,456 ) $ (9,900 ) Other comprehensive loss for foreign currency translation (5,223 ) (1,233 ) Ending balance $ (16,679 ) $ (11,133 )

Reportable Segments

Reportable Segments	3 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
Reportable Segments	Reportable Segments In accordance with 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 income from operations. During the first quarter of fiscal 2019, we changed the names of our reportable segments to better align with our key customers and the markets we serve. As a result of this change, our industrial biological and chemical indicator business has moved from the Dental segment to the Life Sciences segment. Prior year segment disclosures have been recast to conform to the current year presentation. Our reportable segments are as follows: Medical: 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. Life Sciences: 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 43.9% and 53.4% of our Life Sciences segment net sales for the three months ended October 31, 2018 and 2017 , respectively. Dental: 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 50.2% and 49.1% of our Dental segment net sales for the three months ended October 31, 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 41.4% and 43.1% of our Dialysis segment net sales for the three months ended October 31, 2018 and 2017 , respectively. These customers are the same two customers noted above under our Life Sciences segment. None of our customers accounted for 10% or more of our consolidated net sales for the three months ended October 31, 2018 and 2017 . Information as to reportable segments is summarized below: Three Months Ended October 31, Net sales 2018 2017 Medical $ 127,552 $ 112,385 Life Sciences 53,345 54,770 Dental 36,628 37,677 Dialysis 8,064 7,934 Total net sales $ 225,589 $ 212,766 Three Months Ended October 31, Income from operations 2018 2017 Medical $ 25,211 $ 19,684 Life Sciences 6,331 10,375 Dental 5,925 8,675 Dialysis 1,384 2,099 38,851 40,833 General corporate expenses 11,173 9,199 Total income from operations $ 27,678 $ 31,634

Subsequent Event

Subsequent Event	3 Months Ended
	Oct. 31, 2018
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On November 12, 2018, we entered into a definitive agreement to purchase Omnia S.p.A. (“Omnia”), an Italian-based market leader in dental surgical consumables solutions, for total consideration, excluding acquisition-related costs, of $31,900 , consisting of $26,100 of cash and stock consideration (net of cash acquired), plus contingent consideration ranging from zero to a maximum of $5,800 , which is payable upon the achievement of certain performance-based targets. Omnia’s business consists of a wide-ranging portfolio of sutures, irrigation tubing and customized dental surgical procedure kits, with a focus on procedure room set-up and cross-contamination prevention. Omnia will be included in our Dental segment.

Accounting Pronouncements (Poli

Accounting Pronouncements (Policies)	3 Months Ended
	Oct. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Newly Adopted And Recently Issued Accounting Standards	Newly Adopted Accounting Standards In May 2017, the FASB issued ASU 2017-09, “ (Topic 718) 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 ASC 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. Accordingly, we adopted ASU 2017-09 on August 1, 2018. The adoption of ASU 2017-09 did not have a material impact on our financial position, results of operations and cash flows. In August 2016, the FASB issued ASU 2016-15, “(Topic 230) Classification of Certain Cash Receipts and Cash Payments , ” (“ASU 2016-15”). This guidance makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 (our fiscal year 2019). Accordingly, we adopted ASU 2016-15 on August 1, 2018. The adoption of ASU 2016-15 did not have a material impact on our financial position, results of operations and cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) , ” (“ASU 2014-09”), which supersedes 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),” (“ASU 2015-14”), 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. We adopted the collective standard (“ASC 606”) on August 1, 2018. See Note 5, “Revenue Recognition” for a discussion of the impact and required disclosures. Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”) to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021), including interim periods within that reporting period. The adoption of ASU 2018-15 is not expected to have a material impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”) to modify the disclosure requirements on fair value measurements in ASC 820, “Fair Value Measurement” . ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 (our fiscal year 2021), including interim periods within that reporting period. The adoption of ASU 2018-13 is not expected to have a material impact on our financial position, results of operations or cash flows. 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 material impact on our financial position, results of operations or cash flows. 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. The adoption of ASU 2017-12 is not expected to have a material impact on our financial position, results of operations or cash flows. In January 2017, the FASB issued ASU 2017-04, “(Topic 350) Simplifying the Test for Goodwill Impairment ,” (“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. 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 31, 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 material impact on our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, “ (Topic 842) Leases ,” (“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. ASU 2016-02 is effective for fiscal years beginning after December 31, 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. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), and ASU 2018-11, “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”), which provide narrow adjustments relating to ASU 2016-02 and improvements to comparative reporting requirements for initial adoption and for separating components of a contract for lessors. We are currently in the process of evaluating the impact of the collective standard (“ASC 842”) on our financial position, results of operations and cash flows.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Oct. 31, 2018
Business Combinations [Abstract]
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	2019 2018 Purchase Price Allocation CES Business (1) Aexis (1) BHT Group (1) (Preliminary) (Preliminary) (Final) Purchase Price: Cash paid $ 17,000 $ 20,308 $ 60,216 Fair value of contingent consideration — 1,292 — Total $ 17,000 $ 21,600 $ 60,216 Allocation: Property and equipment 548 130 835 Amortizable intangible assets: Customer relationships 8,100 1,800 12,500 Technology — 4,600 6,200 Goodwill 6,129 17,092 40,934 Deferred income taxes — (1,639 ) (5,881 ) Other working capital 2,223 909 5,628 Contingent consideration — (1,292 ) — Total $ 17,000 $ 21,600 $ 60,216 _______________________________________________ (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)	3 Months Ended
	Oct. 31, 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 October 31, 2018 2017 Cost of sales $ 237 $ 115 Operating expenses: Selling 571 365 General and administrative 1,710 1,333 Research and development 58 38 Total operating expenses 2,339 1,736 Stock-based compensation expense $ 2,576 $ 1,851
Schedule of weighted-average assumptions used to estimate fair value of stock options	We determined the fair value of our market-based restricted stock awards using a Monte Carlo simulation on the date of grant using the following assumptions: Three Months Ended October 31, 2018 2017 Volatility of common stock 27.54 % 26.60 % Average volatility of peer companies 36.55 % 33.72 % Average correlation coefficient of peer companies 27.18 % 32.26 % Risk-free interest rate 2.93 % 1.62 %
Summary of nonvested stock award activity	A summary of nonvested stock award activity for the three months ended October 31, 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, 2018 168,320 26,076 17,710 212,106 $ 88.87 Granted 117,832 27,336 16,765 161,933 $ 91.91 Vested (1) (80,728 ) (10,235 ) — (90,963 ) $ 76.16 Forfeited (1,254 ) — — (1,254 ) $ 88.01 October 31, 2018 204,170 43,177 34,475 281,822 $ 94.95 _______________________________________________ (1) The aggregate fair value of all nonvested stock awards which vested was approximately $6,930 .
Summary of stock option activity	A summary of stock option activity for the three months ended October 31, 2018 follows: Number of shares Weighted Average Exercise Price Weighted Average Contractual Life Remaining (Years) Aggregate Intrinsic Value Outstanding at July 31, 2018 70,000 $ 38.60 Exercised (30,000 ) 31.81 Outstanding at October 31, 2018 40,000 $ 43.70 1.32 $ 1,418 Exercisable at October 31, 2018 40,000 $ 43.70 1.32 $ 1,418

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of net sales disaggregated by geography and product line	The following table gives information as to the net sales disaggregated by geography and product line: Three Months Ended October 31, Net sales by geography 2018 2017 (1) United States $ 168,938 $ 160,940 Europe/Africa/Middle East 32,014 28,101 Asia/Pacific 15,752 13,607 Canada 7,373 8,476 Latin America/South America 1,512 1,642 Total $ 225,589 $ 212,766 Net sales by product line Capital equipment $ 58,132 $ 59,169 Consumables 136,821 128,359 Product service 29,829 24,801 All other (2) 807 437 Total $ 225,589 $ 212,766 _______________________________________________ (1) As noted above, prior year amounts have not been adjusted under the modified retrospective method. (2) Primarily includes software licensing revenues.
Schedule of contract liabilities activity	A summary of contract liabilities activity for the three months ended October 31, 2018 follows: Contract Liabilities Balance, August 1, 2018 $ 29,015 Revenue deferred in current year 14,524 Deferred revenue recognized (13,547 ) Foreign currency translation (163 ) Balance, October 31, 2018 29,829 Contract liabilities included in Other long-term liabilities (549 ) Deferred revenue $ 29,280

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
Summary of inventories	A summary of inventories is as follows: October 31, 2018 July 31, 2018 Raw materials and parts $ 53,097 $ 49,054 Work-in-process 14,122 13,189 Finished goods 52,348 53,948 Reserve for excess and obsolete inventory (8,496 ) (8,599 ) Total $ 111,071 $ 107,592

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of fair values of financial instruments measured on a recurring basis	The fair values of our financial instruments measured on a recurring basis were categorized as follows: October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 104 $ — $ — $ 104 Total assets $ 104 $ — $ — $ 104 Liabilities: Other long-term liabilities: Contingent consideration — — 1,320 1,320 Total liabilities $ — $ — $ 1,320 $ 1,320 July 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ 104 $ — $ — $ 104 Total assets $ 104 $ — $ — $ 104 Liabilities: Other long-term liabilities: Contingent obligation — — 1,298 1,298 Total liabilities $ — $ — $ 1,298 $ 1,298
Level 3 activity of financial liabilities	A reconciliation of our liabilities that are measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows: Aexis Contingent Consideration Jet Prep Assumed Contingent Obligation Total Balance, July 31, 2018 $ 1,298 $ — $ 1,298 Loss included in general and administrative expense 22 — 22 Net purchases, issuances, sales and settlements — — — Balance, October 31, 2018 $ 1,320 $ — $ 1,320

Intangibles and Goodwill (Table

Intangibles and Goodwill (Tables)	3 Months Ended
	Oct. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Our intangible assets consist of the following: October 31, 2018 July 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships (1) $ 134,866 $ (43,177 ) $ 91,689 $ 133,347 $ (45,618 ) $ 87,729 Technology (1) 50,918 (18,724 ) 32,194 54,585 (19,836 ) 34,749 Brand names (1) 6,874 (2,774 ) 4,100 8,141 (3,857 ) 4,284 Non-compete agreements (1) 2,880 (1,505 ) 1,375 3,060 (1,628 ) 1,432 Patents and other registrations 2,855 (1,150 ) 1,705 2,826 (1,179 ) 1,647 198,393 (67,330 ) 131,063 201,959 (72,118 ) 129,841 Trademarks and tradenames 6,695 — 6,695 7,520 — 7,520 Total intangible assets $ 205,088 $ (67,330 ) $ 137,758 $ 209,479 $ (72,118 ) $ 137,361 _______________________________________________ (1) During the first quarter of fiscal 2019, we wrote off $10,335 of fully amortized intangible assets.
Schedule of changes in goodwill	Goodwill changed during the three months ended October 31, 2018 as follows: Medical Life Sciences Dental Dialysis Total Goodwill Balance, July 31, 2018 $ 186,690 $ 58,925 $ 114,279 $ 8,133 $ 368,027 Acquisitions — 6,129 — — 6,129 Foreign currency translation (3,180 ) (98 ) — — (3,278 ) Balance, October 31, 2018 $ 183,510 $ 64,956 $ 114,279 $ 8,133 $ 370,878

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
	Oct. 31, 2018
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Our long-term debt consists of the following: October 31, 2018 July 31, 2018 Tranche A term loan outstanding $ 197,500 $ 200,000 Unamortized debt issuance costs (2,560 ) (2,698 ) Total long-term debt, net of unamortized debt issuance costs 194,940 197,302 Current portion of long-term debt (10,000 ) (10,000 ) Long-term debt, net of unamortized debt issuance costs and excluding current portion $ 184,940 $ 187,302

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Oct. 31, 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 October 31, 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 19,242 $ 22,929 Less income allocated to participating securities (33 ) (124 ) Net income available to common shareholders $ 19,209 $ 22,805 Denominator for basic and diluted earnings per share, adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock 41,640,745 41,521,952 Dilutive effect of stock awards using the treasury stock method and the average market price for the year 65,028 66,233 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,705,773 41,588,185 Earnings per share attributable to common stock: Basic earnings per share $ 0.46 $ 0.55 Diluted earnings per share $ 0.46 $ 0.55 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 our total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table: Three Months Ended October 31, 2018 2017 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock 41,705,773 41,588,185 Participating securities 69,452 225,675 Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities 41,775,225 41,813,860

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Oct. 31, 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 months ended October 31, 2017 to the three months ended October 31, 2018 is as follows: Effective Rate, October 31, 2017 27.4 % U.S. federal statutory rate decrease (14.0 )% Foreign operations 5.0 % State taxes 0.9 % Excess tax benefit 3.4 % Other 2.3 % Effective Rate, October 31, 2018 25.0 %

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Oct. 31, 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 were as follows: Three Months Ended October 31, 2018 2017 Beginning balance $ (11,456 ) $ (9,900 ) Other comprehensive loss for foreign currency translation (5,223 ) (1,233 ) Ending balance $ (16,679 ) $ (11,133 )

Reportable Segments (Tables)

Reportable Segments (Tables)	3 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
Information as to reportable segments	Information as to reportable segments is summarized below: Three Months Ended October 31, Net sales 2018 2017 Medical $ 127,552 $ 112,385 Life Sciences 53,345 54,770 Dental 36,628 37,677 Dialysis 8,064 7,934 Total net sales $ 225,589 $ 212,766 Three Months Ended October 31, Income from operations 2018 2017 Medical $ 25,211 $ 19,684 Life Sciences 6,331 10,375 Dental 5,925 8,675 Dialysis 1,384 2,099 38,851 40,833 General corporate expenses 11,173 9,199 Total income from operations $ 27,678 $ 31,634

Acquisitions Acquisitions - CES

Acquisitions Acquisitions - CES Business (Details) - USD ($) $ in Thousands	Aug. 01, 2018	Oct. 31, 2018
CES Business
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 17,000	$ 17,000

Acquisitions - Aexis Medical (D

Acquisitions - Aexis Medical (Details) - USD ($)	Mar. 21, 2018	Oct. 31, 2018	Oct. 31, 2017	Jul. 31, 2018
Business Acquisition [Line Items]
Acquisition of businesses, net of cash acquired		$ 17,000,000	$ 60,345,000
Aexis
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 21,600,000			$ 21,600,000
Acquisition of businesses, net of cash acquired	20,308,000
Contingent consideration	1,292,000			$ 1,292,000
Minimum | Aexis
Business Acquisition [Line Items]
Contingent consideration	0
Maximum | Aexis
Business Acquisition [Line Items]
Contingent consideration	$ 1,850,000

Acquisitions - BHT Group (Detai

Acquisitions - BHT Group (Details) - USD ($) $ in Thousands	Aug. 23, 2018	Jul. 31, 2018
BHT Group
Business Acquisition [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 60,216	$ 60,216

Acquisitions - Summary of Acqui

Acquisitions - Summary of Acquisitions (Details) - USD ($) $ in Thousands	Aug. 23, 2018	Aug. 01, 2018	Mar. 21, 2018	Oct. 31, 2018	Jul. 31, 2018
Business Acquisition [Line Items]
Goodwill				$ 370,878	$ 368,027
CES Business
Business Acquisition [Line Items]
Cash paid				17,000
Fair value of contingent consideration				0
Total		$ 17,000		17,000
Property and equipment				548
Goodwill				6,129
Deferred income taxes				0
Other working capital				2,223
Contingent consideration				0
Total				17,000
CES Business | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:				8,100
CES Business | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:				$ 0
Aexis
Business Acquisition [Line Items]
Cash paid					20,308
Fair value of contingent consideration					1,292
Total			$ 21,600		21,600
Property and equipment					130
Goodwill					17,092
Deferred income taxes					(1,639)
Other working capital					909
Contingent consideration			$ (1,292)		(1,292)
Total					21,600
Aexis | Customer relationships
Business Acquisition [Line Items]
Amortizable intangible assets:					1,800
Aexis | Technology
Business Acquisition [Line Items]
Amortizable intangible assets:					4,600
BHT Group
Business Acquisition [Line Items]
Cash paid					60,216
Fair value of contingent consideration					0
Total	$ 60,216				60,216
Property and equipment					835
Goodwill					40,934
Deferred income taxes					(5,881)
Other working capital					5,628
Contingent consideration					0
Total					60,216
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

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Jul. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	281,822		212,106
Outstanding options (in shares)	40,000		70,000
Total unrecognized stock-based compensation cost	$ 23,664
Remaining weighted average period for unrecognized compensation cost	22 months
Number of options exercised (in shares)	30,000
Deduction in income tax due to exercise of options and vesting of restricted stock	$ 3,059	$ 4,125
Reduction in income tax expense over the equity awards' vesting period	2,062	1,839
Excess tax benefit	$ 997	$ 2,286
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	$ 277
Number of options exercised (in shares)	30,000
Aggregate fair value of exercised options	$ 1,787
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	281,708
Outstanding options (in shares)	0
Shares available under Plan (in shares)	813,905
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested restricted stock shares (in shares)	114
Outstanding options (in shares)	40,000

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	$ 2,576	$ 1,851
Cost of sales
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	237	115
Total operating expenses
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	2,339	1,736
Selling
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	571	365
General and administrative
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	1,710	1,333
Research and development
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation expense	$ 58	$ 38

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Monte Carlo Simulation (Details) - Restricted Stock	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility of common stock	27.54%	26.60%
Average volatility of peer companies	36.55%	33.72%
Average correlation coefficient of peer companies	27.18%	32.26%
Risk-free interest rate	2.93%	1.62%

Stock-Based Compensation - Nonv

Stock-Based Compensation - Nonvested Stock Award Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018USD ($)$ / sharesshares
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	212,106
Granted (in shares)	161,933
Vested (in shares)	(90,963)
Forfeited (in shares)	(1,254)
Nonvested stock awards at the end of the period (in shares)	281,822
Weighted Average Fair Value
Nonvested stock awards at the beginning of the period (in dollars per share) | $ / shares	$ 88.87
Granted (in dollars per share) | $ / shares	91.91
Vested (in dollars per share) | $ / shares	76.16
Forfeited (in dollars per share) | $ / shares	88.01
Nonvested stock awards at the end of the period (in dollars per share) | $ / shares	$ 94.95
Aggregate fair value of nonvested stock awards that vested | $	$ 6,930
Number of Time-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	168,320
Granted (in shares)	117,832
Vested (in shares)	(80,728)
Forfeited (in shares)	(1,254)
Nonvested stock awards at the end of the period (in shares)	204,170
Number of Performance-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	26,076
Granted (in shares)	27,336
Vested (in shares)	(10,235)
Forfeited (in shares)	0
Nonvested stock awards at the end of the period (in shares)	43,177
Number of Market-based Awards
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)	17,710
Granted (in shares)	16,765
Vested (in shares)	0
Forfeited (in shares)	0
Nonvested stock awards at the end of the period (in shares)	34,475

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018USD ($)$ / sharesshares
Number of shares
Outstanding at July 31, 2018 (in shares) | shares	70,000
Exercised (in shares) | shares	(30,000)
Outstanding at October 31, 2018 (in shares) | shares	40,000
Weighted Average Exercise Price
Outstanding at July 31, 2018 (in dollars per share) | $ / shares	$ 38.60
Exercised (in dollars per share) | $ / shares	31.81
Outstanding at October 31, 2018 (in dollars per share) | $ / shares	$ 43.70
Stock Option Activity, Additional Disclosures
Options outstanding, Weighted average contractual life remaining (in years)	12 months 118 days
Options outstanding, Aggregate intrinsic value (in dollars) | $	$ 1,418
Options exercisable, number of options (in shares) | shares	40,000
Options exercisable, Weighted average exercise price (in dollars per share) | $ / shares	$ 43.70
Options exercisable, Weighted average contractual life remaining (in years)	12 months 118 days
Options exercisable, Aggregate intrinsic value (in dollars) | $	$ 1,418

Revenue Recognition - Summary o

Revenue Recognition - Summary of net sales by geography and product line (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 225,589	$ 212,766
United States
Disaggregation of Revenue [Line Items]
Net sales	168,938	160,940
Europe/Africa/Middle East
Disaggregation of Revenue [Line Items]
Net sales	32,014	28,101
Asia/Pacific
Disaggregation of Revenue [Line Items]
Net sales	15,752	13,607
Canada
Disaggregation of Revenue [Line Items]
Net sales	7,373	8,476
Latin America/South America
Disaggregation of Revenue [Line Items]
Net sales	1,512	1,642
Capital equipment
Disaggregation of Revenue [Line Items]
Net sales	58,132	59,169
Consumables
Disaggregation of Revenue [Line Items]
Net sales	136,821	128,359
Product service
Disaggregation of Revenue [Line Items]
Net sales	29,829	24,801
All other
Disaggregation of Revenue [Line Items]
Net sales	$ 807	$ 437

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Thousands	Oct. 31, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 71,549
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-11-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, percentage	70.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year 9 months

Revenue Recognition - Summary_2

Revenue Recognition - Summary of contract liabilities activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Contract Liabilities
Beginning Balance	$ 29,015
Revenue deferred in current year	14,524
Deferred revenue recognized	(13,547)
Foreign currency translation	(163)
Ending Balance	29,829
Contract liabilities included in Other long-term liabilities	(549)
Deferred revenue	$ 29,280	$ 28,614

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and parts	$ 53,097	$ 49,054
Work-in-process	14,122	13,189
Finished goods	52,348	53,948
Reserve for excess and obsolete inventory	(8,496)	(8,599)
Total	$ 111,071	$ 107,592

Derivatives (Details)

Derivatives (Details) - Foreign currency forward contracts - Designated as hedging instrument - Fair value hedge instruments $ in Thousands	3 Months Ended
	Oct. 31, 2018USD ($)instrument	Jul. 31, 2018USD ($)instrument
Derivatives
Term of contracts	1 month
Number of contracts | instrument	7	8
Aggregate value of contracts | $	$ 37,684	$ 30,159

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - Aexis - USD ($)	Jul. 31, 2018	Mar. 21, 2018
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

Fair Value Measurements - Hiera

Fair Value Measurements - Hierarchy Levels (Details) - Recurring basis - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018
Assets:
Total assets	$ 104	$ 104
Other long-term liabilities:
Contingent consideration	1,320	1,298
Total liabilities	1,320	1,298
Money markets
Assets:
Money markets	104	104
Level 1
Assets:
Total assets	104	104
Other long-term liabilities:
Contingent consideration	0	0
Total liabilities	0	0
Level 1 | Money markets
Assets:
Money markets	104	104
Level 2
Assets:
Total assets	0	0
Other long-term liabilities:
Contingent consideration	0	0
Total liabilities	0	0
Level 2 | Money markets
Assets:
Money markets	0	0
Level 3
Assets:
Total assets	0	0
Other long-term liabilities:
Contingent consideration	1,320	1,298
Total liabilities	1,320	1,298
Level 3 | Money markets
Assets:
Money markets	$ 0	$ 0

Fair Value Measurements - Level

Fair Value Measurements - Level 3 Rollforward (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2018USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,298
Loss included in general and administrative expense	22
Net purchases, issuances, sales and settlements	0
Ending Balance	1,320
Aexis
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	1,298
Loss included in general and administrative expense	22
Net purchases, issuances, sales and settlements	0
Ending Balance	1,320
Jet Prep Ltd.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0
Loss included in general and administrative expense	0
Net purchases, issuances, sales and settlements	0
Ending Balance	$ 0

Intangibles and Goodwill - Inta

Intangibles and Goodwill - Intangible Assets Summary (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Intangible assets with finite lives:
Gross	$ 198,393	$ 201,959
Accumulated Amortization	(67,330)	(72,118)
Net	131,063	129,841
Intangible assets with indefinite lives:
Trademarks and tradenames	6,695	7,520
Total intangible assets
Gross	205,088	209,479
Accumulated Amortization	(67,330)	(72,118)
Net	137,758	137,361
Write-off of fully impaired customer relationships and brand names	10,335
Customer relationships
Intangible assets with finite lives:
Gross	134,866	133,347
Accumulated Amortization	(43,177)	(45,618)
Net	91,689	87,729
Total intangible assets
Accumulated Amortization	(43,177)	(45,618)
Technology
Intangible assets with finite lives:
Gross	50,918	54,585
Accumulated Amortization	(18,724)	(19,836)
Net	32,194	34,749
Total intangible assets
Accumulated Amortization	(18,724)	(19,836)
Brand names
Intangible assets with finite lives:
Gross	6,874	8,141
Accumulated Amortization	(2,774)	(3,857)
Net	4,100	4,284
Total intangible assets
Accumulated Amortization	(2,774)	(3,857)
Non-compete agreements
Intangible assets with finite lives:
Gross	2,880	3,060
Accumulated Amortization	(1,505)	(1,628)
Net	1,375	1,432
Total intangible assets
Accumulated Amortization	(1,505)	(1,628)
Patents and other registrations
Intangible assets with finite lives:
Gross	2,855	2,826
Accumulated Amortization	(1,150)	(1,179)
Net	1,705	1,647
Total intangible assets
Accumulated Amortization	$ (1,150)	$ (1,179)

Intangibles and Goodwill - Narr

Intangibles and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 6,041	$ 4,048
Future amortization - remainder of 2019	13,451
Future amortization - 2020	16,288
Future amortization - 2021	15,949
Future amortization - 2022	15,948
Future amortization - 2023	15,576
Future amortization - 2024	$ 14,476

Intangibles and Goodwill - Good

Intangibles and Goodwill - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2018USD ($)
Changes in Goodwill
Balance at the beginning of the period	$ 368,027
Acquisitions	6,129
Foreign currency translation	(3,278)
Balance at the end of the period	370,878
Medical
Changes in Goodwill
Balance at the beginning of the period	186,690
Acquisitions	0
Foreign currency translation	(3,180)
Balance at the end of the period	183,510
Life Sciences
Changes in Goodwill
Balance at the beginning of the period	58,925
Acquisitions	6,129
Foreign currency translation	(98)
Balance at the end of the period	64,956
Dental
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 - Schedu

Financing Arrangements - Schedule of long-term debt (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jul. 31, 2018	Jun. 28, 2018
Debt Instrument [Line Items]
Total long-term debt, net of unamortized debt issuance costs	$ 194,940	$ 197,302
Current portion of long-term debt	(10,000)	(10,000)
Long-term debt, net of unamortized debt issuance costs and excluding current portion	184,940	187,302
Line of Credit
Debt Instrument [Line Items]
Unamortized debt issuance costs	(2,560)	(2,698)
Tranche A term loan | Line of Credit
Debt Instrument [Line Items]
Loans outstanding	$ 197,500	$ 200,000	$ 200,000

Financing Arrangements - Narrat

Financing Arrangements - Narrative (Details) - Line of Credit - USD ($)	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018	Jun. 28, 2018
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 300,000,000
Fees on unused portion of credit facilities (as a percent)	0.20%
Shares of foreign subsidiaries pledged as security (as a percent)	65.00%
Minimum
Debt Instrument [Line Items]
Fees on unused portion of credit facilities (as a percent)	0.20%
Maximum
Debt Instrument [Line Items]
Fees on unused portion of credit facilities (as a percent)	0.35%
Lender's base rate
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	0.25%
Reference rate (as a percent)	5.25%
Lender's base rate | Minimum
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	0.00%
Lender's base rate | Maximum
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	1.00%
LIBOR
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	1.25%
LIBOR | Minimum
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	1.00%
Reference rate (as a percent)	2.302%
LIBOR | Maximum
Debt Instrument [Line Items]
Margin on reference rate (as a percent)	2.00%
Tranche A term loan
Debt Instrument [Line Items]
Loans outstanding	$ 197,500,000	$ 200,000,000	200,000,000
Term loan borrowings outstanding	197,500,000
Principal amortization, periodic payment due 2019, 2020, 2021, and 2022	10,000,000
Balance due and payable at maturity in 2023	160,000,000
Principal payment made	$ 2,500,000
Interest rate (as a percent)	3.55%
Revolving credit loan
Debt Instrument [Line Items]
Loans outstanding	$ 0		$ 400,000,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Oct. 31, 2017	Jul. 31, 2017
Aexis
Business Acquisition [Line Items]
Assumed contingent obligation	$ 1,320
Jet Prep Ltd.
Business Acquisition [Line Items]
Assumed contingent obligation		$ 0	$ 1,138

Earnings Per Common Share - Com

Earnings Per Common Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Numerator for basic and diluted earnings per share:
Net income	$ 19,242	$ 22,929
Less income allocated to participating securities	(33)	(124)
Net income available to common shareholders	$ 19,209	$ 22,805
Denominator for basic and diluted earnings per share, adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock (in shares)	41,640,745	41,521,952
Dilutive effect of stock awards using the treasury stock method and the average market price for the year (in shares)	65,028	66,233
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock (in shares)	41,705,773	41,588,185
Earnings per share attributable to common stock:
Basic earnings per share (in dollars per share)	$ 0.46	$ 0.55
Diluted earnings per share (in dollars per share)	$ 0.46	$ 0.55
Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been anti-dilutive (in shares)	0	0

Earnings Per Common Share - Wei

Earnings Per Common Share - Weighted Average Shares (Details) - shares	3 Months Ended
	Oct. 31, 2018	Oct. 31, 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)	41,705,773	41,588,185
Participating securities (in shares)	69,452	225,675
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities (in shares)	41,775,225	41,813,860

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Jul. 31, 2018
Income Tax Disclosure [Abstract]
Effective blended tax rate	26.90%
TCJA, Revaluation of deferred tax assets and liabilities, provisional income tax expense (benefit)		$ 8,657

Income Taxes - Reconciliation (

Income Taxes - Reconciliation (Details)	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Income Tax Disclosure [Abstract]
Effective Rate	25.00%	27.40%
U.S. federal statutory rate decrease	(14.00%)
Foreign operations	5.00%
State taxes	0.90%
Excess tax benefit	3.40%
Other	2.30%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Components and changes in accumulated other comprehensive (loss) income
Beginning balance	$ (11,456)	$ (9,900)
Other comprehensive loss for foreign currency translation	(5,223)	(1,233)
Ending balance	$ (16,679)	$ (11,133)

Reportable Segments - Concentra

Reportable Segments - Concentration Risk (Details) - Segment sales - Customer concentration	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Life Sciences | Two customers
Concentration risk
Concentration risk within segment (as a percent)	43.90%	53.40%
Dental | Three customers
Concentration risk
Concentration risk within segment (as a percent)	50.20%	49.10%
Dialysis | Two customers
Concentration risk
Concentration risk within segment (as a percent)	41.40%	43.10%

Reportable Segments - Results (

Reportable Segments - Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Information as to operating segments
Net sales	$ 225,589	$ 212,766
Segment operating income	27,678	31,634
General corporate expenses	36,535	32,096
Operating Segment
Information as to operating segments
Segment operating income	38,851	40,833
Medical
Information as to operating segments
Net sales	127,552	112,385
Medical | Operating Segment
Information as to operating segments
Segment operating income	25,211	19,684
Life Sciences
Information as to operating segments
Net sales	53,345	54,770
Life Sciences | Operating Segment
Information as to operating segments
Segment operating income	6,331	10,375
Dental
Information as to operating segments
Net sales	36,628	37,677
Dental | Operating Segment
Information as to operating segments
Segment operating income	5,925	8,675
Dialysis
Information as to operating segments
Net sales	8,064	7,934
Dialysis | Operating Segment
Information as to operating segments
Segment operating income	1,384	2,099
General corporate | Segment reconciling items
Information as to operating segments
General corporate expenses	$ 11,173	$ 9,199

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	Nov. 12, 2018	Oct. 31, 2018	Oct. 31, 2017
Subsequent Event [Line Items]
Acquisition of businesses, net of cash acquired		$ 17,000,000	$ 60,345,000
Omnia | Subsequent Event
Subsequent Event [Line Items]
Total consideration for the transaction, excluding acquisition-related costs	$ 31,900,000
Acquisition of businesses, net of cash acquired	26,100,000
Contingent consideration, low end of range	0
Contingent consideration, high end of range	$ 5,800,000