Cantel Medical (CMD) 10-Q 9 Jun 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2016	May. 31, 2016
Document and Entity Information
Entity Registrant Name	CANTEL MEDICAL CORP
Entity Central Index Key	19,446
Document Type	10-Q
Document Period End Date	Apr. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--07-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,701,975
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 25,498,000	$ 31,720,000
Accounts receivable, net of allowance for doubtful accounts of $1,998 at April 30 and $2,092 at July 31	91,524,000	69,805,000
Inventories, net	90,947,000	72,078,000
Deferred income taxes	6,254,000	6,233,000
Prepaid expenses and other current assets	11,706,000	8,525,000
Total current assets	225,929,000	188,361,000
Property and equipment, net	72,551,000	62,541,000
Intangible assets, net	119,030,000	85,836,000
Goodwill	284,018,000	241,951,000
Other assets	5,371,000	5,342,000
Total assets	706,899,000	584,031,000
Current liabilities:
Accounts payable	28,276,000	16,184,000
Compensation payable	21,507,000	18,557,000
Accrued expenses	21,536,000	15,092,000
Deferred revenue	19,034,000	18,323,000
Income taxes payable	921,000	2,468,000
Total current liabilities	91,274,000	70,624,000
Long-term debt	132,000,000	78,500,000
Deferred income taxes	31,926,000	23,722,000
Other long-term liabilities	$ 4,061,000	$ 4,552,000
Commitments and contingencies
Stockholders' equity:
Preferred Stock, par value $1.00 per share; authorized 1,000,000 shares; none issued
Common Stock, par value $.10 per share; authorized 75,000,000 shares; issued April 30 - 46,076,820 shares, outstanding April 30 - 41,703,698 shares; issued July 31 - 45,913,154 shares, outstanding July 31 - 41,604,359 shares	$ 4,608,000	$ 4,591,000
Additional paid-in capital	163,456,000	156,050,000
Retained earnings	328,265,000	287,105,000
Accumulated other comprehensive (loss) income	(2,803,000)	1,224,000
Treasury Stock, at cost; April 30 - 4,373,122 shares at cost; July 31 - 4,308,795 shares at cost	(45,888,000)	(42,337,000)
Total stockholders' equity	447,638,000	406,633,000
Total liabilities and stockholders' equity	$ 706,899,000	$ 584,031,000

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2016	Jul. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,998	$ 2,092
Preferred Stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, authorized shares	1,000,000	1,000,000
Preferred Stock, shares issued	0	0
Common Stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common Stock, authorized shares	75,000,000	75,000,000
Common Stock, shares issued	46,076,820	45,913,154
Common Stock, shares outstanding	41,703,698	41,604,359
Treasury Stock, shares	4,373,122	4,308,795

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Net sales
Product sales	$ 153,795,000	$ 123,070,000	$ 426,303,000	$ 361,219,000
Product services	19,908,000	18,438,000	59,450,000	52,530,000
Total net sales	173,703,000	141,508,000	485,753,000	413,749,000
Cost of sales
Product sales	78,902,000	64,664,000	221,022,000	191,833,000
Product services	14,480,000	13,245,000	40,875,000	37,212,000
Total cost of sales	93,382,000	77,909,000	261,897,000	229,045,000
Gross profit	80,321,000	63,599,000	223,856,000	184,704,000
Expenses:
Selling	26,887,000	20,326,000	70,967,000	58,994,000
General and administrative	26,106,000	18,456,000	70,555,000	56,785,000
Research and development	4,065,000	3,536,000	10,899,000	10,296,000
Total operating expenses	57,058,000	42,318,000	152,421,000	126,075,000
Income from operations	23,263,000	21,281,000	71,435,000	58,629,000
Interest expense	890,000	636,000	2,549,000	1,847,000
Interest income	(19,000)	(17,000)	(62,000)	(48,000)
Loss on sale of business		2,206,000		2,206,000
Income before income taxes	22,392,000	18,456,000	68,948,000	54,624,000
Income taxes	8,373,000	6,100,000	25,286,000	19,944,000
Net income	$ 14,019,000	$ 12,356,000	$ 43,662,000	$ 34,680,000
Earnings per common share:
Basic (in dollars per share)	$ 0.34	$ 0.30	$ 1.05	$ 0.84
Diluted (in dollars per share)	$ 0.34	$ 0.30	1.05	0.83
Dividends per common share (in dollars per share)			$ 0.06	$ 0.05

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 14,019	$ 12,356	$ 43,662	$ 34,680
Other comprehensive income (loss):
Foreign currency translation	3,999	1,146	(4,027)	(6,354)
Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period		(1,264)		(1,264)
Total other comprehensive loss	3,999	(118)	(4,027)	(7,618)
Comprehensive income	$ 18,018	$ 12,238	$ 39,635	$ 27,062

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash flows from operating activities
Net income	$ 43,662,000	$ 34,680,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	8,754,000	7,573,000
Amortization	9,737,000	9,648,000
Stock-based compensation expense	5,837,000	4,354,000
Amortization of debt issuance costs	301,000	301,000
Loss on disposal of fixed assets	177,000	209,000
Loss on sale of business		2,206,000
Impairment of assets		1,287,000
Fair value adjustments to acquisition related liabilities	(551,000)	(2,516,000)
Deferred income taxes	(97,000)	(124,000)
Excess tax benefits from stock-based compensation	(1,586,000)	(2,662,000)
Changes in assets and liabilities, net of effects of business acquisitions/divestiture:
Accounts receivable	(10,315,000)	(7,239,000)
Inventories	(13,681,000)	(7,307,000)
Prepaid expenses and other current assets	(5,037,000)	(2,444,000)
Accounts payable and other current liabilities	14,518,000	(5,463,000)
Income taxes	84,000	871,000
Net cash provided by operating activities	51,803,000	33,374,000
Cash flows from investing activities
Capital expenditures	(12,258,000)	(8,329,000)
Proceeds from disposal of fixed assets	55,000	49,000
Proceeds from sale of business, net of cash retained and disposal costs		3,942,000
Acquisitions of businesses, net of cash acquired	(94,624,000)	(43,631,000)
Other, net	(89,000)	336,000
Net cash used in investing activities	(106,916,000)	(47,633,000)
Cash flows from financing activities
Borrowings under revolving credit facility	96,500,000	47,000,000
Repayments under revolving credit facility	(43,000,000)	(36,000,000)
Proceeds from exercises of stock options		393,000
Dividends paid	(2,502,000)	(2,076,000)
Excess tax benefits from stock-based compensation	1,586,000	2,662,000
Purchases of treasury stock	(3,551,000)	(3,536,000)
Net cash provided by financing activities	49,033,000	8,443,000
Effect of exchange rate changes on cash and cash equivalents	(142,000)	(600,000)
Decrease in cash and cash equivalents	(6,222,000)	(6,416,000)
Cash and cash equivalents at beginning of period	31,720,000	31,781,000
Cash and cash equivalents at end of period	$ 25,498,000	$ 25,365,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Apr. 30, 2016
Basis of Presentation
Basis of Presentation	CANTEL MEDICAL CORP . NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Basis of Presentation 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. (“Cantel”) on Form 10-K for the fiscal year ended July 31, 2015 (the “2015 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, 2015 was derived from the audited Consolidated Balance Sheet of Cantel at that date. As more fully described in Note 15 to the Condensed Consolidated Financial Statements, we operate our business through the following four operating segments: Endoscopy, Water Purification and Filtration, Healthcare Disposables and Dialysis. The Specialty Packaging operating segment, which comprised the Other reporting segment for financial reporting purposes, was divested on April 7, 2015, as more fully described in Note 16 to the Condensed Consolidated Financial Statements. We operate our four operating segments through wholly-owned subsidiaries in the United States and internationally. Our principal operating subsidiaries in the United States are Medivators Inc., Mar Cor Purification, Inc., Crosstex International, Inc. and SPS Medical Supply Corp. Internationally, our primary operating subsidiaries include Cantel Medical (UK) Limited, Cantel Medical Asia/Pacific Pte. Ltd., Cantel Medical Devices (China) Co., Ltd., Biolab Equipment Ltd., Medivators B.V., Cantel Medical (Italy) S.r.l. and effective September 14, 2015, Medical Innovations Group Holdings Limited. We acquired North American Science Associates, Inc.’s Sterility Assurance Monitoring Products division (“NAMSA”), on March 1, 2016 (the “NAMSA Acquisition”), as more fully described in Note 3 to the Condensed Consolidated Financial Statements. The business of NAMSA did not have a significant effect on our consolidated results of operations for the three and nine months ended April 30, 2016 due to the size of the business in relation to our overall consolidated results of operations and is not reflected in our consolidated results of operations for the three and nine months ended April 30, 2015. The NAMSA Acquisition is included in our Healthcare Disposables segment. We acquired all of the issued and outstanding stock of Medical Innovations Group Holdings Limited and certain affiliated companies (collectively, “MI”) on September 14, 2015 (the “MI Acquisition”), as more fully described in Note 3 to the Condensed Consolidated Financial Statements. The business of MI did not have a significant effect on our consolidated results of operations for the three and nine months ended April 30, 2016 due to the size of the business in relation to our overall consolidated results of operations and is not reflected in our consolidated results of operations for the three and nine months ended April 30, 2015. The MI Acquisition is included in our Endoscopy segment. In our prior fiscal year, we acquired (i) all of the issued and outstanding stock of MRLB International, Inc. (“MRLB”) on February 20, 2015 (the “DentaPure Acquisition”), (ii) certain net assets of Pure Water Solutions, Inc. (“PWS”) on January 1, 2015 (the “PWS Acquisition”) and (iii) all of the issued and outstanding stock of International Medical Service S.r.l. (“IMS”) on November 3, 2014 (the “IMS Acquisition”), as more fully described in Note 3 to the Condensed Consolidated Financial Statements. The businesses of MRLB (the “DentaPure Business”), PWS (the “PWS Business”) and IMS (the “IMS Business”) did not have a significant effect on our consolidated results of operations for the three and nine months ended April 30, 2016 and 2015 due to the size of the businesses in relation to our overall consolidated results of operations. The DentaPure Business is included in our Healthcare Disposables segment, the PWS Business is included in our Water Purification and Filtration segment and the IMS Business is included in our Endoscopy segment. Subsequent to its acquisition, we changed the name of International Medical Service S.r.l. to Cantel Medical (Italy) S.r.l. 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. Subsequent Events We performed a review of events subsequent to April 30, 2016. Based upon that review, no subsequent events occurred that required updating to our Condensed Consolidated Financial Statements or disclosures.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Apr. 30, 2016
Stock-Based Compensation
Stock-Based Compensation	Note 2. Stock-Based Compensation The following table shows the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income: Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Cost of sales $ $ $ $ Operating expenses: Selling General and administrative Research and development Total operating expenses Stock-based compensation before income taxes Income tax benefits Total stock-based compensation expense, net of tax $ $ $ $ The above stock-based compensation expense before income taxes was recorded in the Condensed Consolidated Financial Statements as stock-based compensation expense and an increase to additional paid-in capital. The related income tax benefits were recorded as either an increase to current deferred income tax assets or long-term deferred income tax assets (which are netted with long-term deferred income tax liabilities) and a reduction to income tax expense. All of our stock options and stock awards (which consist only of restricted shares) are expected to be deductible for tax purposes, except for certain restricted shares granted to employees residing outside of the United States, and were tax-effected using the Company’s estimated U.S. effective tax rate at the time of grant. All of our stock options and stock awards are subject to graded vesting in which portions of the awards vest at different times during the vesting period, as opposed to awards that vest at the end of the vesting period. We recognize compensation expense for awards subject to graded vesting using the straight-line basis over the vesting period, reduced by estimated forfeitures. At April 30, 2016, total unrecognized stock-based compensation expense, before income taxes, related to total nonvested stock options and stock awards was $11,005,000 with a remaining weighted average period of 18 months over which such expense is expected to be recognized. Most of our nonvested awards relate to stock awards. We determine the fair value of each stock award using the closing market price of our common stock on the date of grant. A summary of nonvested stock award activity follows: Weighted Number of Average Shares Fair Value Nonvested stock awards at July 31, 2015 $ Granted Canceled Vested Nonvested stock awards at April 30, 2016 $ The fair value of each option grant was estimated on the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions for options granted during the nine months ended April 30, 2016 and 2015: Weighted-Average Black-Scholes Option Nine Months Ended Nine Months Ended Valuation Assumptions April 30, 2016 April 30, 2015 Dividend yield % % Expected volatility (1) % % Risk-free interest rate (2) % % Expected lives (in years) (3) (1) Volatility was based on historical closing prices of our common stock. (2) The U.S. Treasury rate based on the expected life at the date of grant. (3) Based on historical exercise behavior. Additionally, all options were considered to be deductible for tax purposes in the valuation model. Such non-qualified options were tax-effected using the Company’s estimated U.S. effective tax rate at the time of grant. For the nine months ended April 30, 2016 and 2015, these non-qualified options had a weighted average fair value of $26.49 and $11.54 , respectively. There were no option exercises during the three and nine months ended April 30, 2016. For the three and nine months ended April 30, 2015, the aggregate intrinsic value (i.e. the excess market price over the exercise price) of all options exercised was approximately $383,000 and $2,803,000 , respectiv ely . A summary of stock option activity follows: Weighted Number of Average Shares Exercise Price Outstanding at July 31, 2015 $ Granted Outstanding at April 30, 2016 $ Exercisable at July 31, 2015 $ Exercisable at April 30, 2016 $ If certain criteria are met when options are exercised or restricted stock becomes vested, we are allowed a deduction on our United States income tax return. Accordingly, we account for the income tax effect on such income tax deductions as a reduction of previously recorded deferred income tax assets and as a reduction of income taxes payable. Excess tax benefits arise when the ultimate tax effect of the deduction for tax purposes is greater than the tax benefit on stock compensation expense which was determined based upon the award’s fair value at the time the award was granted. The differences noted above between actual tax deductions and the previously recorded deferred income tax assets are recorded as additional paid-in capital. For the nine months ended April 30, 2016 and 2015, income tax deductions of $3,297,000 and $4,532,000 , respectively, were generated and increased additional paid-in capital by $1,586,000 and $2,662,000 , respectively. We classify the cash flows resulting from excess tax benefits as financing cash flows in our Condensed Consolidated Statements of Cash Flows. In January 2016, the Cantel Medical Corp. 2016 Equity Incentive Plan (the “2016 Plan”) was approved by shareholders. As a result, no further options or awards will be granted under the Cantel Medical Corp. 2006 Equity Incentive Plan. The 2016 Plan provides for the granting of stock options, stock appreciation rights (SARs), restricted stock awards, restricted stock units (RSUs) and performance-based awards to our employees, independent contractors and consultants. It also provides the flexibility to grant equity-based awards to our non-employee directors. The 2016 Plan does not permit the granting of discounted options or discounted stock appreciation rights. The maximum number of shares as to which equity awards may be granted under the 2016 Plan is 1,200,000 shares. Under the 2016 Plan, 5,725 restricted stock awards were granted as of April 30, 2016 . Once granted, restricted stock awards under this plan are subject to risk of forfeiture solely due to an employment length-of-service restriction, with such restriction lapsing as to one -third of the shares on each of the first three anniversaries of the grant date subject to being employed by the Company through such vesting date. The 2016 Plan will terminate on the date of our annual meeting of stockholders following the close of our fiscal year ending in 2025, unless terminated earlier by the Board of Directors.

Acquisitions

Acquisitions	9 Months Ended
	Apr. 30, 2016
Acquisitions
Acquisitions	Note 3. Acquisitions Fiscal 2016 North American Science Associates, Inc. On March 1, 2016, we acquired certain net assets of North American Science Associates, Inc.’s Sterility Assurance Monitoring Products division, a business with pre-acquisition adjusted annual revenues (unaudited) of approximately $5,700,000 (the “NAMSA Business”). The business manufactures a broad suite of high-quality biological and chemical indicators which are used to accurately monitor the effectiveness of sterilization processes primarily for manufacturers of medical device, life science and other products. The total consideration for the transaction, excluding acquisition-related costs, was $13,520,000, subje c t to a final net asset value adjustment . The NAMSA Acquisition is included in our Healthcare Disposables segment. The purchase price was preliminarily allocated to the assets acquired and assumed liabilities based on estimated fair values as follows: Preliminary Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (10 - year weighted average life): Customer relationships (10 - year life) Technology (8 - year life) Current liabilities Net assets acquired $ There were no in-process research and development projects acquired in connection with the acquisition. The excess purchase price of $3,713,000 was assigned to goodwill. Such goodwill, all of which is deductible for income tax purposes, is included in our Healthcare Disposables segment. The principal reasons for the NAMSA Acquisition were (i) the ability to broaden our Healthcare Disposable segment’s presence into the industrial market, (ii) the opportunity to cross-sell our existing Healthcare Disposable products, (iii) the strategic benefit and cost savings to our overall sterility assurance monitoring business, (iv) to enhance our new product development and overall research and development capabilities and (v) the expectation that the acquisition will be accretive to our earnings per share (“EPS”) in fiscal 2017 and beyond. The NAMSA Business is included in our results of operations for the portion of three and nine months ended April 30, 2016 subsequent to its acquisition date and is not included in the three and nine months ended April 30, 2015. This acquisition did not have a significant effect on our consolidated results of operations in the three and nine months ended April 30, 2016 due to the size of the acquisition in relation to our overall consolidated results of operations. Medical Innovations Group Holdings Limited On September 14, 2015, we acquired all of the issued and outstanding stock of MI, a private company with pre-acquisition annual revenues (unaudited) of approximately $28,500,000 providing specialized endoscopy medical devices and products primarily in the United Kingdom (the “MI Business”). Principal products of MI include proprietary short-term and long-term endoscope transport and storage systems, a comprehensive range of endoscopic consumable accessories, OEM mobile medical carts, as well as specialized products for patient warming and patient transfer. With an employee base of approximately 100 individuals, including a complete sales organization and a manufacturing facility in Southend-on-Sea, England, the addition of MI complements our existing endoscopy business in the United States, the United Kingdom and other global markets. The MI Business is included in our Endoscopy segment. The total consideration for the transaction, excluding acquisition-related costs, was $79,597,000 , net of an estimated $212,000 net asset value adjustment to be paid by the sellers, subject to finalization. The purchase price was preliminarily allocated to the assets acquired and assumed liabilities based on estimated fair values as follows: Preliminary Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (15 - year weighted average life): Customer relationships (17 - year life) Technology (10 - year life) Brand names (12 - year life) Current liabilities Deferred income tax liabilities Net assets acquired $ There were no in-process research and development projects acquired in connection with the acquisition. The excess purchase price of $39,513,000 was assigned to goodwill. Such goodwill, none of which is deductible for income tax purposes, is included in our Endoscopy segment. The principal reasons for the MI Acquisition were (i) the global expansion of our infection prevention and control product offerings in Endoscopy, (ii) the opportunity to sell our existing endoscopy products to MI’s installed base, (iii) the ability to combine the MI sales force with our existing United Kingdom organization to create what we believe will be a dominant UK sales force in endoscopy product sales and service, (iv) to achieve cost savings through various operating synergies, (v) the ability to leverage our direct sales force to accelerate the growth of MI products in the U.S. and various international markets, and (vi) the expectation that the acquisition will be accretive to our EPS in fiscal 2017 and beyond. Such reasons constitute the significant factors that contributed to a purchase price that resulted in recognition of goodwill. The MI Acquisition is included in our results of operations for the three months ended April 30, 2016 and the portion of the nine months ended April 30, 2016 subsequent to its acquisition date, and is not reflected in the three and nine months ended April 30, 2015. Fiscal 2015 DentaPure On February 20, 2015, we purchased all of the issued and outstanding stock of MRLB, a private company with pre-acquisition annual revenues (unaudited) of approximately $2,300,000 , to obtain the DentaPure® product line. The DentaPure product line is a proprietary, iodinated resin filter cartridge system used by dentists to maintain safe water quality in dental unit waterlines. It has been integrated into our Crosstex product portfolio. The DentaPure Business is included in our Healthcare Disposables segment. The total consideration for the transaction was $9,980,000 , excluding acquisition-related costs. The purchase price was allocated to the assets acquired and assumed liabilities based on estimated fair values as follows: Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (10 - year weighted average life): Customer relationships (10 - year life) Technology (10 - year life) Brand names (10 - year life) Current liabilities Deferred income tax liabilities Net assets acquired $ There were no in-process research and development projects acquired in connection with the acquisition. The excess purchase price of $6,104,000 was assigned to goodwill. Such goodwill, none of which is deductible for income tax purposes, is included in our Healthcare Disposables segment. The principal reasons for the DentaPure Acquisition were to (i) leverage the sales and marketing infrastructure of our Healthcare Disposables business by adding a branded, technologically differentiated, proprietary product line, (ii) strengthen our leadership position in a rapidly growing area of infection prevention and control, (iii) add a new product line that will provide for opportunities to cross-sell to biological monitoring customers and expand our waterline disinfection products and (iv) the expectation that the acquisition will be accretive to our EPS in fiscal 2016 and beyond. Such reasons constitute the significant factors that contributed to a purchase price that resulted in recognition of goodwill. The DentaPure Business is included in our results of operations for the three and nine months ended April 30, 2016 and the portion of the three and nine months ended April 30, 2015 subsequent to its acquisition date. This acquisition did not have a significant effect on our consolidated results of operations in the three and nine months ended April 30, 2016 and 2015 due to the size of the business in relation to our overall consolidated results of operations. Pure Water Solutions, Inc. On January 1, 2015, we purchased substantially all of the net assets of PWS, a private company based out of Ridgeland, Mississippi with pre-acquisition annual revenues (unaudited) of approximately $8,000,000 that provides water treatment services for commercial and industrial, laboratory and medical customers. The PWS Business is included in our Water Purification and Filtration segment. The total consideration for the transaction, excluding acquisition-related costs, was $11,835,000 . The purchase price was allocated to the assets acquired and assumed liabilities based on estimated fair values as follows: Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (12 - year weighted average life): Customer relationships (12 - year life) Brand names (1 - year life) Other assets Current liabilities Net assets acquired $ There were no in-process research and development projects acquired in connection with the acquisition. The excess purchase price of $2,965,000 was assigned to goodwill. Such goodwill, all of which is deductible for income tax purposes, is included in our Water Purification and Filtration segment. The principal reasons for the PWS Acquisition were (i) to strengthen our sales and service business by adding PWS’s strategic southeastern United States market presence to enable us to better serve our national customers, (ii) to further expand our business into the commercial, laboratory and research segments and (iii) the expectation that the acquisition will be accretive to our EPS in fiscal 2016 and beyond. Such reasons constitute the significant factors that contributed to a purchase price that resulted in recognition of goodwill. The PWS Business is included in our results of operations for the three and nine months ended April 30, 2016, the three months ended April 30, 2015 and the portion of the nine months ended April 30, 2015 subsequent to its acquisition date. This acquisition did not have a significant effect on our consolidated results of operations for the three and nine months ended April 30, 2016 and 2015 due to the size of the business in relation to our overall consolidated results of operations. International Medical Service S.r.l. On November 3, 2014, we acquired all of the issued and outstanding stock of IMS, a privately owned company in Italy with pre-acquisition annual revenues (unaudited) of approximately $13,500,000 that manufactures and sells automated endoscope reprocessors (“AERs”), high-level disinfectant chemistries used in AERs, other infection prevention and control chemistries used in healthcare and dental markets, as well as technical service. The IMS Business is included in our Endoscopy segment. The total consideration for the transaction, excluding acquisition-related costs, was $24,610,000 , which includes assumed debt of $2,498,000 , a significant portion of which was subsequently repaid. The purchase price was allocated to the assets acquired and assumed liabilities based on estimated fair values as follows: Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (9 - year weighted average life): Customer relationships (9 - year life) Technology (9 - year life) Other assets Current liabilities Deferred income tax liabilities Other long-term liabilities Net assets acquired $ There were no in-process research and development projects acquired in connection with the acquisition. The excess purchase price of $11,133,000 was assigned to goodwill. Such goodwill, none of which is deductible for income tax purposes, is included in our Endoscopy segment. Following the acquisition, we changed the name of IMS to Cantel Medical (Italy) S.r.l. The principal reasons for the IMS Acquisition were (i) to add a high quality manufacturing facility in Europe, (ii) the expansion of our product offerings with a broader range of advanced endoscope reprocessing equipment suitable for various international markets, (iii) the opportunity to transition our existing Italy business from a distribution model to a direct sales model, (iv) the opportunity to leverage IMS’s chemistry manufacturing capabilities to enhance and expand our existing product portfolio while reducing freight and logistics expenses related to the export of chemistries from the United States, (v) the ability to expand our footprint and infrastructure in Europe and (vi) the expectation that the acquisition will be accretive to our EPS in fiscal 2016 and beyond. Such reasons constitute the significant factors that contributed to a purchase price that resulted in recognition of goodwill. The IMS Business is included in our results of operations for the three and nine months ended April 30, 2016, the three months ended April 30, 2015 and the portion of the nine months ended April 30, 2015 subsequent to its acquisition date. The IMS Business did not have a significant effect on our consolidated results of operations for the three and nine months ended April 30, 2016 and 2015 due to the size of the business in relation to our overall consolidated results of operations.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Apr. 30, 2016
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 4. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “ Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”), which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements. The new guidance also requires that all tax-related cash flows resulting from share-based payments to be reported as operating activities in the Condensed Consolidated Statements of Cash Flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Early adoption is permitted as of the beginning of an interim or annual period. We are currently in the process of evaluating the impact of ASU 2016-09 on our financial position and results of operations. In February 2016, FASB issued ASU 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for fiscal years beginning after December 31, 2018 (our fiscal year 2019), including interim periods within that reporting period. Early adoption is permitted as of the beginning of an interim or annual period. We are currently in the process of evaluating the impact of ASU 2016-02 on our financial position and results of operations. In November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes (Topic 740) ” (“ASU 2015-17”) , which eliminates the current requirement for companies to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. To simplify the presentation of deferred income taxes, ASU 2015-17 requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. Early adoption is permitted as of the beginning of an interim or annual period. We are currently in the process of evaluating the impact of ASU 2015-17 on our financial position and results of operations. In September 2015, the FASB issued ASU 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”) . The new guidance requires an acquirer in a business combination to recognize a measurement-period adjustment during the period in which it determines the amount, and eliminates the requirement for an acquirer to account for measurement-period adjustments retrospectively. The acquirer must also disclose the amounts and reasons for adjustments to the provisional amounts. ASU 2015-16 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2015-16 on our financial position and results of operations. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory,” (“ASU 2015-11”). The new guidance more closely aligns the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards by requiring companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value, where net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 (our fiscal year 2018), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2015-11 on our financial position and results of operations. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs (Topic 835),” (“ASU 2015-03”). Under the new guidance, debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability and not recorded as a separate asset. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 (our fiscal year 2017), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2015-03 on our financial position and results of operations. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014 ‑09”), which will supersede the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606),” which defers the effective date of ASU 2014-09 by one year to fiscal years beginning after December 15, 2017 (our fiscal year 2019), including interim periods within that reporting period. We are currently in the process of evaluating the impact of ASU 2014-09 on our financial position and results of operations.

Inventories, Net

Inventories, Net	9 Months Ended
	Apr. 30, 2016
Inventories
Inventories, Net	Note 5. Inventories, Net A summary of inventories is as follows: April 30, July 31, 2016 2015 Raw materials and parts $ $ Work-in-process Finished goods Reserve for excess and obsolete inventory Total $ $

Derivatives

Derivatives	9 Months Ended
	Apr. 30, 2016
Derivatives
Derivatives	Note 6. Derivatives We recognize all derivatives on the balance sheet at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in the fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of the change in fair value of a derivative that is designated as a hedge will be recognized immediately in earnings. As of April 30, 2016, all of our derivatives were designated as hedges. We do not hold any derivative financial instruments for speculative or trading purposes. Changes in the value of the Euro, British Pound, Singapore dollar, Canadian dollar and the Chinese Renminbi against the United States dollar affect our results of operations because certain cash bank accounts, accounts receivable, and liabilities of Cantel and its subsidiaries are denominated and ultimately settled in United States dollars or these foreign currencies, but must be converted into each entity’s functional currency. In order to hedge against the impact of fluctuations in the value of the Euro, British Pound and Singapore dollar relative to the United States dollar on the conversion of such net assets into the functional currencies, we enter into short-term contracts to purchase Euros, British Pounds and Singapore dollars forward, which contracts are one -month in duration. These short-term contracts are designated as fair value hedge instruments. There were five foreign currency forward contracts with an aggregate value of $11,617,000 at April 30, 2016, which covered certain assets and liabilities that were denominated in currencies other than each entity’s functional currency. Such contracts expired on May 31, 2016. 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. Such forward contracts partially offset the impact on operations relating to certain assets and liabilities that were denominated in currencies other than each entity’s functional currency resulting in net currency conversion loss, net of tax, of $53,000 and $359,000 , respectively, for the three and nine months ended April 30, 2016 on the items hedged. For the prior year periods, our forward contracts substantially offset this foreign currency impact on operations resulting in a net currency conversion loss, net of tax, of $12,000 and $61,000 respectively, for the three months and nine months ended ended April 30, 2015 on the items hedged. Gains and losses related to hedging contracts to buy Euros, British Pounds 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 Canadian dollar or Chinese Renminbi relative to the United States dollar because the overall foreign currency exposures relating to those currencies are currently not deemed significant. Additionally, we do not hedge transactions associated with the funding of international acquisitions due to the short-term nature of the foreign currency exposure.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2016
Fair Value Measurements
Fair Value Measurements	Note 7. Fair Value Measurements Fair Value Hierarchy We apply the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” (“ASC 820”), for our financial assets and liabilities that are re-measured and reported at fair value each reporting period and our nonfinancial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. We define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three level fair value hierarchy to prioritize the inputs used in valuations, as defined below: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Our financial assets that are re-measured at fair value on a recurring basis include money market funds that are classified as cash and cash equivalents in the Condensed 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. In connection with our June 2014 acquisition of a UK endoscopy company (“Cantel Medical (UK)”), we acquired a contingent guaranteed obligation to reimburse an endoscope service company for endoscope repair costs it incurs when servicing its customers’ endoscopes that are damaged by one of Cantel Medical (UK)’s discontinued endoscope reprocessing machine models. Although the terms of the guarantee provide for no limit to the maximum potential future payments, we estimated the fair value of the liability on the date of the acquisition to be approximately $1,414,000 . This fair value measurement was based on significant inputs not observed in the market and thus represents a Level 3 measurement. The fair value of the contingent guaranteed obligation was based on the estimated cost to repair endoscopes that may be damaged by one of Cantel Medical (UK)’s discontinued endoscope reprocessing machine models that remain in the marketplace, the historical frequency of claims and the likely timeframe that each machine will continue to be used. As such, the determination of the fair value of this contingent guaranteed obligation is subjective in nature and can be impacted by significant changes in third party service repair rates, the frequency of claims and a change in the expected life of these discontinued machines. At the date of the acquisition, the cash flow projection relating to this contingent guaranteed obligation was discounted using a rate of 10.1% , which was based on the weighted average cost of capital of the acquired business plus a credit risk premium for non-performance risk. This liability is adjusted periodically by the reimbursement of repair costs, as well as recording changes in the fair value through our Condensed Consolidated Statements of Income driven by the time value of money and changes in the assumptions that were initially used in the valuation. Given the subjective nature of the assumptions used in the determination of fair value, we may potentially have earnings volatility in our future results of operations. However, the largest factor for the decrease in the initial fair value from $1,414,000 at June 30, 2014 to $569,000 at April 30, 2016 was the reimbursement of repair costs. On November 5, 2013, we recorded a $2,490,000 liability for the estimated fair value of contingent consideration and a $1,720,000 liability for the estimated fair value of an assumed contingent obligation payable to the Israeli Government relating to the acquisition of a private Israeli company that developed the Jet Prep ® Endoscopic Flushing Device, a novel single-use irrigation and aspiration catheter to improve visualization during colonoscopy procedures (“Jet Prep”). These fair value measurements were based on significant inputs not observed in the market and thus represent Level 3 measurements. The fair values of the contingent consideration liability and assumed contingent obligation were based on percentages of future sales projections of Jet Prep’s business, above a minimum threshold with respect to the contingent consideration, under various potential scenarios over a seven year period ending November 4, 2020 and weighting the probability of these outcomes. As such, the determinations of fair values of these contingent liabilities are subjective in nature and highly dependent on future sales projections. At the date of the acquisition, the cash flow projections relating to the contingent consideration and assumed contingent obligation were discounted using rates of 12.6% and 2.5% , respectively. The discount rate relating to the contingent consideration was based on the weighted average cost of capital of the acquired business plus a credit risk premium for non-performance risk. Since payment of the assumed contingent obligation to the Israeli Government is highly probable, the discount rate relating to this government obligation was based on a risk free rate plus a premium for non-performance risk. These two liabilities will be adjusted periodically by recording changes in the fair value through our Condensed Consolidated Statements of Income driven by the time value of money and changes in the assumptions that were initially used in the valuations. Due to the structure of the acquisition, any such adjustments through our Condensed Consolidated Statements of Income will not be tax effected, except for amounts in excess of $810,000 with respect to the assumed contingent obligation, therefore impacting our effective tax rate. The actual contingent consideration and assumed contingent obligation have the potential of being between zero and a percentage of unlimited sales that could occur until the completion of the seven year period with respect to the contingent consideration liability and until the assumed contingent obligation is satisfied in full, or until the sales of the Jet Prep products no longer exist. However, with respect to the contingent consideration, the different likely scenarios of future sales projections used in our fair value determination at April 30, 2016 resulted in total potential contingent consideration payments ranging between zero and approximately $452,000 and the weighted average present value of such scenarios plus the accretion of interest for the passing of time resulted in a fair value of $148,000 at April 30, 2016. The decrease in the initial fair value from $2,490,000 at November 5, 2013 to $148,000 at April 30, 2016 was primarily due to changes in probability factors and future sales projections based on the results of several market research analyses, product modification plans, updated pricing models and the remaining years in the seven year measurement period. With respect to the assumed contingent obligation, the different likely scenarios of future sales projections used in our fair value determination at April 30, 2016 along with the requirement to repay at least the original seed funding with interest to the Israeli Government resulted in a fair value of $1,138,000 at April 30, 2016. Given the subjective nature of the assumptions used in the determinations of fair value, we may potentially have further earnings volatility in our future results of operations related to these Jet Prep obligations. The fair values of the Company’s financial instruments measured on a recurring basis were categorized as follows: April 30, 2016 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ $ — $ — $ Total assets $ $ — $ — $ Liabilities: Accrued expenses: Assumed contingent obligation $ — $ — $ $ Contingent guaranteed obligation — — Total accrued expenses — — Other long-term liabilities: Contingent consideration — — Assumed contingent obligation — — Contingent guaranteed obligation — — Total other long-term liabilities: — — Total liabilities $ — $ — $ $ July 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ $ — $ — $ Total assets $ $ — $ — $ Liabilities: Accrued expenses: Assumed contingent obligation $ — $ — $ $ Contingent guaranteed obligation — — Total accrued expenses — — Other long-term liabilities: Contingent consideration — — Assumed contingent obligation — — Contingent guaranteed obligation — — Total other long-term liabilities: — — Total liabilities $ — $ — $ $ A reconciliation of our liabilities that are measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the last seven quarters is as follows: Jet Prep Cantel Medical (UK) Jet Prep Assumed Contingent Contingent Contingent Guaranteed Consideration Obligation Obligation Total Balance, July 31, 2014 $ $ $ $ Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, October 31, 2014 Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, January 31, 2015 Total net unrealized (gains) losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, April 30, 2015 Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, July 31, 2015 Total net unrealized (gains) losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, October 31, 2015 Total net unrealized losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, January 31, 2016 Total net unrealized losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, April 30, 2016 $ $ $ $ Assets Measured and Recorded at Fair Value on a Nonrecurring Basis We re-measure the fair value of certain assets, such as intangible assets, goodwill and long-lived assets, including property, equipment and other assets, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and goodwill and intangible assets with indefinite lives are reviewed for impairment at least annually. In performing a review for goodwill impairment, management first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount before proceeding to step one of the two-step quantitative goodwill impairment test, if necessary. For our quantitative test, we use a two-step process that begins with an estimation of the fair value of the related operating segments by using fair value results of the discounted cash flow methodology, as well as the market multiple and comparable transaction methodologies, where appropriate. The first step is a review for potential impairment, and the second step measures the amount of impairment, if any. In performing our annual review for indefinite lived intangibles, management performs a qualitative assessment, and if a quantitative assessment is necessary, we compare the current fair value of such assets to their carrying values. With respect to amortizable intangible assets when impairment indicators are present, management determines whether expected future non-discounted cash flows are sufficient to recover the carrying value of the assets; if not, the carrying value of the assets is adjusted to their fair value. With respect to long-lived assets, an assessment is made to determine if the sum of the expected future non-discounted cash flows from the use of the assets and eventual disposition is less than the carrying value. If the sum of the expected non-discounted cash flows is less than the carrying value, an impairment loss is recognized based on fair value. As the inputs utilized for our periodic impairment assessments are not based on observable market data, but are based on management’s assumptions and estimates, our goodwill, intangibles and long-lived assets are classified within Level 3 of the fair value hierarchy on a non-recurring basis. Management concluded on July 31, 2015 that none of our long-lived assets, including goodwill and intangibles with indefinite-lives, were impaired and no other events or changes in circumstances have occurred during the nine months ended April 30, 2016 that would indicate that the carrying amount of our long-lived assets may not be recoverable. Disclosure of Fair Value of Financial Instruments As of April 30, 2016 and July 31, 2015, 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. We believe that as of April 30, 2016 and July 31, 2015, the fair value of our outstanding borrowings under our credit facility approximated the carrying value of those obligations since the borrowing rates were at prevailing market interest rates.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Apr. 30, 2016
Intangible Assets and Goodwill
Intangible Assets and Goodwill	Note 8. Intangible Assets and Goodwill Our intangible assets with definite lives consist primarily of customer relationships, technology, brand names, non-compete agreements and patents. These intangible assets are being amortized on the straight-line method over the estimated useful lives of the assets ranging from 3 - 20 years and have a weighted average amortization period of 12 years. Amortization expense related to intangible assets was $3,346,000 and $9,737,000 for the three and nine months ended April 30, 2016, respectively, and $3,460,000 and $9,648,000 for the three and nine months ended April 30, 2015, respectively. Our intangible assets that have indefinite useful lives, and therefore are not amortized, consist of trademarks and trade names. The Company’s intangible assets consist of the following: April 30, 2016 Accumulated Gross Amortization Net Intangible assets with finite lives: Customer relationships $ $ $ Technology Brand names Non-compete agreements Patents and other registrations Trademarks and tradenames — Total intangible assets $ $ $ July 31, 2015 Accumulated Gross Amortization Net Intangible assets with finite lives: Customer relationships $ $ $ Technology Brand names Non-compete agreements Patents and other registrations Trademarks and tradenames — Total intangible assets $ $ $ Estimated annual amortization expense of our intangible assets for the remainder for fiscal 2016 and the next five years is as follows: Three month period ending July 31, 2016 $ 2017 2018 2019 2020 2021 Goodwill changed during fiscal 2015 and the nine months ended April 30, 2016 as follows: Water Purification Healthcare Total Endoscopy and Filtration Disposables Dialysis Other Goodwill Balance, July 31, 2014 $ $ $ $ $ $ Acquisitions — — Foreign currency translation — — Sale of business — — — — Balance, July 31, 2015 — Acquisitions — — — Foreign currency translation — — — Balance, April 30, 2016 $ $ $ $ $ — $ On July 31, 2015, we performed impairment studies of the Company’s goodwill and indefinite lived trademarks and trade names and concluded that such assets were not impaired. While the results of these annual reviews have historically not indicated impairment, impairment reviews are highly dependent on management’s projections of our future operating results and cash flows (which management believes to be reasonable), discount rates based on the Company’s weighted average cost of capital and appropriate benchmark peer companies. Assumptions used in determining future operating results and cash flows include current and expected market conditions and future sales forecasts. Subsequent changes in these assumptions and estimates could result in future impairment. Although we consistently use the same methods in developing the assumptions and estimates underlying the fair value calculations, such estimates are uncertain by nature and can vary from actual results. At July 31, 2015, the fair value of all of our reporting units exceeded book value by substantial amounts, except our Dialysis segment, which had an estimated fair value that exceeded book value by approximately 17% . We believe the most significant assumptions impacting the impairment assessment of our Dialysis segment relate to the assumed projected annual sales and future operating efficiencies included in our projections of future operating results and cash flows of this segment. If future operating results and cash flows are substantially less than our projections, future impairment charges may be recorded. On April 30, 2016, management concluded that no events or changes in circumstances have occurred during the nine months ended April 30, 2016 that would indicate that the carrying amount of our intangible assets and goodwill may not be recoverable.

Warranties

Warranties	9 Months Ended
	Apr. 30, 2016
Warranties
Warranties	Note 9. Warranties A summary of activity in the warranty reserves follows: Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Beginning balance $ $ $ $ Acquisitions — Provisions Settlements Foreign currency translation Ending balance $ $ $ $ The warranty provisions for the three and nine months ended April 30, 2016 and 2015 relate principally to the Company’s endoscope reprocessing and water purification equipment. Warranty reserves are included in accrued expenses in the Condensed Consolidated Balance Sheets.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Apr. 30, 2016
Financing Arrangements
Financing Arrangements	Note 10. Financing Arrangements On March 4, 2014, we entered into a $250,000,000 Third Amended and Restated Credit Agreement (the “2014 Credit Agreement”). The 2014 Credit Agreement includes a five -year $250,000,000 senior secured revolving facility with sublimits of up to $100,000,000 for borrowings in foreign currencies, $30,000,000 for letters of credit and $10,000,000 for swing line loans (the “2014 Revolving Credit Facility”). Subject to the satisfaction of certain conditions precedent including the consent of the lenders, the Company may from time to time increase the 2014 Revolving Credit Facility by an aggregate amount not to exceed $100,000,000 . The senior lenders include Bank of America N.A. (the lead bank and administrative agent), PNC Bank, National Association and Wells Fargo Bank, National Association. The 2014 Credit Agreement expires on March 4, 2019. 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. Furthermore, we incurred debt issuance costs of $1,318,000 relating to the 2014 Credit Agreement which was recorded in other assets along with the remaining unamortized debt issuance costs of $512,000 relating to our former revolving credit facility. The total of these two amounts is being amortized over the life of the 2014 Credit Agreement. At April 30, 2016, unamortized debt issuance costs recorded in other assets amounted to $1,037,000 . Borrowings under the 2014 Credit Agreement bear interest at rates ranging from 0.25% to 1.25% above the lender’s base rate, or at rates ranging from 1.25% to 2.25% above the London Interbank Offered Rate (“LIBOR”), depending upon the Company’s “Consolidated Leverage Ratio,” which is defined as the consolidated ratio of total funded debt to earnings before interest, taxes, depreciation and amortization, and as further adjusted under the terms of the 2014 Credit Agreement (“Consolidated EBITDA”). At April 30, 2016, the lender’s base rate was 3.50% and the LIBOR rates ranged from 0.44% to 0.90% . The margins applicable to our outstanding borrowings were 0.50% above the lender’s base rate or 1.50% above LIBOR . All of our outstanding borrowings were under LIBOR contracts at April 30, 2016. The 2014 Credit Agreement also provides for fees on the unused portion of our facility at rates ranging from 0.20% to 0.40% , depending upon our Consolidated Leverage Ratio; such rate was 0.25% at April 30, 2016. The 2014 Credit Agreement contains affirmative and negative covenants reasonably customary for similar credit facilities and is secured by (i) substantially all assets of Cantel and its United States-based subsidiaries, (ii) a pledge by Cantel of all of the outstanding shares of its United States-based subsidiaries and 65% of the outstanding shares of certain of Cantel’s foreign-based subsidiaries and (iii) a guaranty by Cantel’s domestic subsidiaries. We are in compliance with all financial and other covenants under the 2014 Credit Agreement. On April 30, 2016, we had $132,000,000 of outstanding borrowings under the 2014 Credit Agreement. Subsequent to April 30, 2016, we repaid $3,500,000 resulting in total outstanding borrowings of $128,500,000 at June 9, 2016, none of which is required to be repaid until March 2019.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Apr. 30, 2016
Earnings Per Common Share
Earnings Per Common Share	Note 11. Earnings Per Common Share Basic EPS is computed based upon the weighted average number of common shares outstanding during the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding during 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 (unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of unvested 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 shareholders of common stock (excluding participating securities): Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ $ $ $ Less income allocated to participating securities Net income available to common shareholders $ $ $ $ Denominator for basic and diluted earnings per share, as adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock Dilutive effect of stock options using the treasury stock method and the average market price for the year Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock Earnings per share attributable to common stock: Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $ Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive — — — — A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to the Company’s total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table: Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock Participating securities Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2016
Income Taxes
Income Taxes	Note 12. Income Taxes The consolidated effective tax rate was 36.7% and 36.5% for the nine months ended April 30, 2016 and 2015, respectively. Almost all of our income before income taxes for both periods was generated from our United States operations, which had an overall effective tax rate of 36.5% and 36.7% , respectively. We record liabilities for an unrecognized tax benefit when a tax benefit for an uncertain tax position is taken or expected to be taken on a tax return, but is not recognized in our Condensed Consolidated Financial Statements because it does not meet the more-likely-than-not recognition threshold that the uncertain tax position would be sustained upon examination by the applicable taxing authority. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the tax authorities. Any adjustments upon resolution of income tax uncertainties are recognized in our results of operations. At April 30, 2016 and July 31, 2015, we do not have any uncertain tax positions in which a liability would be recorded. We concluded an audit by the Internal Revenue Service for fiscal years 2013 and 2012. With respect to state or foreign income tax examinations, we are generally no longer subject to examinations for fiscal years ended prior to July 31, 2008. Upon recording a liability relating to uncertain tax positions, our policy is to record potential interest and penalties related to income tax positions in interest expense and general and administrative expense, respectively, in our Condensed Consolidated Financial Statements. However, such amounts have historically been insignificant due to the minimal amount of our unrecognized tax benefits relating to uncertain tax positions.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	Note 13. Commitments and Contingencies Long-Term Contractual Obligations As of April 30, 2016, aggregate annual required payments over the remaining fiscal year, the next four years and thereafter under our contractual obligations that have long-term components are as follows: Three Months Year Ending July 31, Ending July 31, (Amounts in thousands) 2016 2017 2018 2019 2020 Thereafter Total Maturity of the credit facility $ — $ — $ — $ $ — $ — $ Expected interest payments under the credit facility (1) — — Minimum commitments under noncancelable operating leases Compensation agreements Contingent consideration (2) — — — Assumed contingent liability (3) Contingent guaranteed obligation (4) — — Other long-term obligations Total contractual obligations $ $ $ $ $ $ $ (1) The expected interest payments under our credit facility reflect an interest rate of 2.04% , which was our weighted average interest rate on outstanding borrowings at April 30, 2016. (2) These future potential payments of contingent consideration relate to the Jet Prep Acquisition, as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $148,000 using a discount rate of 12.6% . (3) These future potential payments of an assumed contingent liability relate to the Jet Prep Acquisition, as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $1,138,000 using a discount rate of 2.5%. (4) These future potential payments of a contingent guaranteed obligation relate to Cantel Medical (UK), as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $569,000 using a discount rate of 10.1% . Operating Leases Minimum commitments under operating leases include minimum rental commitments for our leased manufacturing facilities, warehouses, office space and equipment. Contingent Liabilities In relation to the acquisition of Jet Prep, we have recorded at April 30, 2016 a $148,000 liability for the estimated fair value of contingent consideration payable to the sellers and a $1,138,000 liability for the estimated fair value of an assumed contingent obligation payable to the Israeli Government, as further described in Note 7 to the Condensed Consolidated Financial Statements, which will be payable based on future sales of Jet Prep’s business (above a minimum threshold with respect to the contingent consideration liability). Additionally, in connection with Cantel Medical (UK), we assumed a contingent guaranteed obligation to reimburse an endoscope service company for endoscope repair costs it incurs when servicing its customers’ endoscopes that are damaged by one of Cantel Medical (UK)’s discontinued endoscope reprocessing machine models, which has an estimated fair value of $569,000 at April 30, 2016, as further described in Note 7 to the Condensed Consolidated Financial Statements. As such, the estimates of the annual required payments, as well as the fair value of these contingent liabilities are subjective in nature and highly dependent on future sales projections. Additionally, since we will be continually re-measuring these liabilities at each balance sheet date and recording changes in the respective fair values through our Condensed Consolidated Statements of Income, we may potentially have earnings volatility in our future results of operations until the completion of the seven year period with respect to the contingent consideration liability and until the assumed contingent obligation and contingent guaranteed obligation are satisfied, or until the sales of the Jet Prep products no longer exist. Compensation Agreements We have previously entered into various severance contracts with executives of the Company, including our Corporate executive officers and our subsidiary Chief Executive Officers, which define certain compensation arrangements relating to various employment termination scenarios, and multi-year employment agreements with certain executive officers of businesses we have acquired. Additionally, in March 2016 we entered into a succession plan agreement due to the planned retirement of our Chief Executive Officer in which he will be succeeded as Chief Executive Officer on July 31, 2016 and remain employed as a Senior Advisor until his October 15, 2016 retirement date. This succession plan agreement requires future annual payments to our Chief Executive Officer beginning in fiscal 2017 for transition-related services. The majority of those future payments are being recorded in general and administrative expenses from March 17, 2016 through his October 15, 2016 retirement date. Other Long-Term Obligations In relation to the IMS Acquisition on November 3, 2014, we assumed an $843,000 liability to the Bank of Italy as part of funding provided by an Italian government agency, of which $187,000 and $656,000 were recorded in accrued expenses and other long-term liabilities, respectively. Such amount was a portion of the financial support obtained from the Italian government’s Ministry of Education, Universities and Research to fund research and development activity relating to IMS’s automated endoscope reprocessors. The liability is payable in semi-annual installments, bears interest at 0.25% per annum and has a maturity date of January 1, 2019. At April 30, 2016, $510,000 is outstanding, of which $169,000 is recorded in accrued expense and $341,000 is recorded in other long-term liabilities. Additionally, other long-term obligations include deferred compensation arrangements for certain former Medivators directors and officers and is recorded in other long-term liabilities.

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	9 Months Ended
	Apr. 30, 2016
Accumulated Other Comprehensive (Loss) Income
Accumulated other comprehensive (loss) income	Note 14. Accumulated Other Comprehensive (Loss) Income The components and changes in accumulated other comprehensive (loss) income were as follows: Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Foreign currency translation adjustments: Beginning balance $ $ $ $ Other comprehensive income (loss) Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period — — Ending balance $ $ $ $

Operating Segments

Operating Segments	9 Months Ended
	Apr. 30, 2016
Operating Segments
Operating Segments	Note 15. Operating Segments Cantel is a leading global company dedicated to delivering innovative infection prevention and control products and services for patients, caregivers, and other healthcare providers which improve outcomes, enhance safety and help save lives. Our products include specialized medical device reprocessing systems for endoscopy and renal dialysis, advanced water purification equipment, sterilants, disinfectants and cleaners, sterility assurance monitoring products for hospitals and dental clinics, disposable infection control products primarily for dental and GI endoscopy markets, dialysate concentrates and hollow fiber membrane filtration and separation products. Additionally, we provide technical service for our products. In accordance with FASB ASC Topic 280, “ Segment Reporting,” (“ASC 280”), we have determined our reportable business segments based upon an assessment of product types, organizational structure, customers and internally prepared financial statements. The primary factors used by us in analyzing segment performance are net sales and operating income. None of our customers accounted for 10% or more of our consolidated net sales for the nine months ended April 30, 2016 and 2015. The Company’s segments are as follows: Endoscopy , which includes medical device reprocessing systems, disinfectants, detergents and other supplies used to high-level disinfect flexible endoscopes and disposable infection control products intended to reduce the challenges with proper cleaning and high-level disinfection of numerous reusable components used in GI endoscopy procedures. This segment recently commenced the sale of endoscope transport and storage systems, a comprehensive range of endoscopy consumable accessories, and OEM mobile medical carts. Additionally, this segment includes technical maintenance service on its products. Water Purification and Filtration , which includes water purification equipment and services, filtration and separation products and disinfectants, sterilization and decontamination products and services for the medical, pharmaceutical, biotech, beverage and commercial industrial markets. Two customers collectively accounted for approximately 43.9% of our Water Purification and Filtration segment net sales for the nine months ended April 30, 2016. Healthcare Disposables , which includes single-use, infection prevention and control healthcare products including face masks, sterilization pouches, towels and bibs, tray covers, saliva ejectors, germicidal wipes, plastic cups and disinfectants, as well as a filter system for maintaining safe dental unit waterlines. This segment also manufactures and sells biological and chemical indicators for sterility assurance monitoring services in the acute-care, alternate-care, dental and industrial markets. Four customers collectively accounted for approximately 50.2% of our Healthcare Disposables segment net sales for the nine months ended April 30, 2016. Dialysis , which includes medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates and other supplies for renal dialysis. Additionally, this segment includes technical maintenance service on its products. Two customers accounted for approximately 42.3% of our Dialysis segment net sales for the nine months ended April 30, 2016. Other, which included specialty packaging and thermal control products, as well as related compliance training, for the transport of infectious and biological specimens and thermally sensitive pharmaceutical, medical and other products. The Specialty Packaging operating segment, which comprised the Other reporting segment for financial reporting purposes, was divested on April 7, 2015 as further described in Note 16 to the Condensed Consolidated Financial Statements. The operating segments follow the same accounting policies used for our Condensed Consolidated Financial Statements as described in Note 2 to the 2015 Form 10-K. Information as to operating segments is summarized below: Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Net sales: Endoscopy $ $ $ $ Water Purification and Filtration Healthcare Disposables Dialysis Other — — Total $ $ $ $ Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Operating income: Endoscopy $ $ $ $ Water Purification and Filtration Healthcare Disposables Dialysis Other — — General corporate expenses Income from operations Interest expense, net Other expense — — Income before income taxes $ $ $ $

Disposition of Business

Disposition of Business	9 Months Ended
	Apr. 30, 2016
Disposition of Business
Disposition of Business	Note 16. Disposition of Business In fiscal 2015, we conducted a strategic review of our Specialty Packaging business and evaluated its potential value in the marketplace relative to the business’s historic and expected returns and concluded that the business was not part of our core strategy and could return a higher value to stockholders by its divestiture. Accordingly, our Specialty Packaging business (reported in the Other reporting segment) was classified as held-for-sale within our Condensed Consolidated Balance Sheet beginning October 31, 2014. Since the operating results of the Specialty Packaging segment, as shown in Note 15 to the Condensed Consolidated Financial Statements, were not significant in relation to our overall consolidated operating results, the lack of operating results from this business due to its divestiture has not had a major effect on our operations and financial results, and accordingly, has not been classified as a discontinued operation for any of the periods presented. On April 7, 2015, we completed the sale of our Specialty Packaging business to a global packaging and service company by selling all the issued and outstanding stock of our Specialty Packaging subsidiary in exchange for $7,531,000 in cash proceeds, of which $660,000 is held in escrow for indemnity obligations, if any, until October 7, 2016 and is recorded in prepaid expenses and other current assets in our Condensed Consolidated Balance Sheet at April 30, 2016. Overall, this transaction, including costs associated with the disposition and the recognition of a foreign currency translation gain, resulted in a $2,206,000 loss, or $0.04 in diluted earnings per share, which was recorded in loss on sale of business in our Condensed Consolidated Statements of Income in our third quarter of fiscal 2015. Such amount is subject to further adjustments upon finalization of taxes or indemnity obligations, if any.

Legal Proceedings

Legal Proceedings	9 Months Ended
	Apr. 30, 2016
Legal Proceedings
Legal Proceedings	Note 17. Legal Proceedings 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.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2016
Stock-Based Compensation
Schedule of the income statement components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Income	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Cost of sales $ $ $ $ Operating expenses: Selling General and administrative Research and development Total operating expenses Stock-based compensation before income taxes Income tax benefits Total stock-based compensation expense, net of tax $ $ $ $
Summary of nonvested stock award activity	Weighted Number of Average Shares Fair Value Nonvested stock awards at July 31, 2015 $ Granted Canceled Vested Nonvested stock awards at April 30, 2016 $
Weighted-average assumptions used to estimate fair value of stock options granted using the Black-Scholes option valuation model	Weighted-Average Black-Scholes Option Nine Months Ended Nine Months Ended Valuation Assumptions April 30, 2016 April 30, 2015 Dividend yield % % Expected volatility (1) % % Risk-free interest rate (2) % % Expected lives (in years) (3) (1) Volatility was based on historical closing prices of our common stock. (2) The U.S. Treasury rate based on the expected life at the date of grant. (3) Based on historical exercise behavior.
Summary of stock option activity	Weighted Number of Average Shares Exercise Price Outstanding at July 31, 2015 $ Granted Outstanding at April 30, 2016 $ Exercisable at July 31, 2015 $ Exercisable at April 30, 2016 $

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Apr. 30, 2016
North American Science Associates Inc
Acquisitions
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	Preliminary Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (10 - year weighted average life): Customer relationships (10 - year life) Technology (8 - year life) Current liabilities Net assets acquired $
Medical Innovations Group Holdings Limited
Acquisitions
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	Preliminary Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (15 - year weighted average life): Customer relationships (17 - year life) Technology (10 - year life) Brand names (12 - year life) Current liabilities Deferred income tax liabilities Net assets acquired $
DentaPure
Acquisitions
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (10 - year weighted average life): Customer relationships (10 - year life) Technology (10 - year life) Brand names (10 - year life) Current liabilities Deferred income tax liabilities Net assets acquired $
Pure Water Solutions, Inc.
Acquisitions
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (12 - year weighted average life): Customer relationships (12 - year life) Brand names (1 - year life) Other assets Current liabilities Net assets acquired $
International Medical Service S.r.l.
Acquisitions
Schedule of purchase price allocated to the assets acquired and assumed liabilities based on estimated fair values	Final Net Assets Allocation Current assets $ Property, plant and equipment Amortizable intangible assets (9 - year weighted average life): Customer relationships (9 - year life) Technology (9 - year life) Other assets Current liabilities Deferred income tax liabilities Other long-term liabilities Net assets acquired $

Inventories, Net (Tables)

Inventories, Net (Tables)	9 Months Ended
	Apr. 30, 2016
Inventories
Summary of inventories	April 30, July 31, 2016 2015 Raw materials and parts $ $ Work-in-process Finished goods Reserve for excess and obsolete inventory Total $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2016
Fair Value Measurements
Schedule of fair values of financial instruments measured on a recurring basis	April 30, 2016 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ $ — $ — $ Total assets $ $ — $ — $ Liabilities: Accrued expenses: Assumed contingent obligation $ — $ — $ $ Contingent guaranteed obligation — — Total accrued expenses — — Other long-term liabilities: Contingent consideration — — Assumed contingent obligation — — Contingent guaranteed obligation — — Total other long-term liabilities: — — Total liabilities $ — $ — $ $ July 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money markets $ $ — $ — $ Total assets $ $ — $ — $ Liabilities: Accrued expenses: Assumed contingent obligation $ — $ — $ $ Contingent guaranteed obligation — — Total accrued expenses — — Other long-term liabilities: Contingent consideration — — Assumed contingent obligation — — Contingent guaranteed obligation — — Total other long-term liabilities: — — Total liabilities $ — $ — $ $
Reconciliation of liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3)	Jet Prep Cantel Medical (UK) Jet Prep Assumed Contingent Contingent Contingent Guaranteed Consideration Obligation Obligation Total Balance, July 31, 2014 $ $ $ $ Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, October 31, 2014 Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, January 31, 2015 Total net unrealized (gains) losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, April 30, 2015 Total net unrealized losses included in general and administrative expense in earnings Settlements — — Foreign currency translation — — Balance, July 31, 2015 Total net unrealized (gains) losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, October 31, 2015 Total net unrealized losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, January 31, 2016 Total net unrealized losses included in general and administrative expense in earnings — Settlements — — Foreign currency translation — — Balance, April 30, 2016 $ $ $ $

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Apr. 30, 2016
Intangible Assets and Goodwill
Schedule of intangible assets	April 30, 2016 Accumulated Gross Amortization Net Intangible assets with finite lives: Customer relationships $ $ $ Technology Brand names Non-compete agreements Patents and other registrations Trademarks and tradenames — Total intangible assets $ $ $ July 31, 2015 Accumulated Gross Amortization Net Intangible assets with finite lives: Customer relationships $ $ $ Technology Brand names Non-compete agreements Patents and other registrations Trademarks and tradenames — Total intangible assets $ $ $
Schedule of estimated amortization expense of intangible assets for the remainder for fiscal 2016 and the next five years	Three month period ending July 31, 2016 $ 2017 2018 2019 2020 2021
Schedule of changes in goodwill	Water Purification Healthcare Total Endoscopy and Filtration Disposables Dialysis Other Goodwill Balance, July 31, 2014 $ $ $ $ $ $ Acquisitions — — Foreign currency translation — — Sale of business — — — — Balance, July 31, 2015 — Acquisitions — — — Foreign currency translation — — — Balance, April 30, 2016 $ $ $ $ $ — $

Warranties (Tables)

Warranties (Tables)	9 Months Ended
	Apr. 30, 2016
Warranties
Summary of activity in warranty reserves	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Beginning balance $ $ $ $ Acquisitions — Provisions Settlements Foreign currency translation Ending balance $ $ $ $

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Apr. 30, 2016
Earnings Per Common Share
Schedule of computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities)	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ $ $ $ Less income allocated to participating securities Net income available to common shareholders $ $ $ $ Denominator for basic and diluted earnings per share, as adjusted for participating securities: Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock Dilutive effect of stock options using the treasury stock method and the average market price for the year Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock Earnings per share attributable to common stock: Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $ Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive — — — —
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	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock Participating securities Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Apr. 30, 2016
Commitments and Contingencies
Schedule of aggregate annual required payments over the remaining fiscal year, the next four years and thereafter under contractual obligations that have long-term components	Three Months Year Ending July 31, Ending July 31, (Amounts in thousands) 2016 2017 2018 2019 2020 Thereafter Total Maturity of the credit facility $ — $ — $ — $ $ — $ — $ Expected interest payments under the credit facility (1) — — Minimum commitments under noncancelable operating leases Compensation agreements Contingent consideration (2) — — — Assumed contingent liability (3) Contingent guaranteed obligation (4) — — Other long-term obligations Total contractual obligations $ $ $ $ $ $ $ (1) The expected interest payments under our credit facility reflect an interest rate of 2.04% , which was our weighted average interest rate on outstanding borrowings at April 30, 2016. (2) These future potential payments of contingent consideration relate to the Jet Prep Acquisition, as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $148,000 using a discount rate of 12.6% . (3) These future potential payments of an assumed contingent liability relate to the Jet Prep Acquisition, as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $1,138,000 using a discount rate of 2.5%. (4) These future potential payments of a contingent guaranteed obligation relate to Cantel Medical (UK), as further explained below, and are reflected in the April 30, 2016 Condensed Consolidated Balance Sheet at its net present value of $569,000 using a discount rate of 10.1% .

Accumulated Other Comprehensi32

Accumulated Other Comprehensive (Loss) Income (Tables)	9 Months Ended
	Apr. 30, 2016
Accumulated Other Comprehensive (Loss) Income
Schedule of the components and changes in accumulated other comprehensive (loss) income	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Foreign currency translation adjustments: Beginning balance $ $ $ $ Other comprehensive income (loss) Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period — — Ending balance $ $ $ $

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Apr. 30, 2016
Operating Segments
Information as to operating segments	Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Net sales: Endoscopy $ $ $ $ Water Purification and Filtration Healthcare Disposables Dialysis Other — — Total $ $ $ $ Three Months Ended Nine Months Ended April 30, April 30, 2016 2015 2016 2015 Operating income: Endoscopy $ $ $ $ Water Purification and Filtration Healthcare Disposables Dialysis Other — — General corporate expenses Income from operations Interest expense, net Other expense — — Income before income taxes $ $ $ $

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Apr. 30, 2016segment
Basis of Presentation
Number of operating segments	4

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	$ 2,242,000	$ 1,353,000	$ 5,837,000	$ 4,354,000
Income tax benefits	(797,000)	(479,000)	(2,071,000)	(1,525,000)
Total stock-based compensation expense, net of tax	1,445,000	874,000	3,766,000	2,829,000
Cost of sales
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	120,000	64,000	320,000	226,000
Operating expenses: Selling
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	246,000	138,000	684,000	444,000
Operating expenses: General and administrative
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	1,847,000	1,137,000	4,750,000	3,639,000
Operating expenses: Research and development
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	29,000	14,000	83,000	45,000
Total operating expenses
Income statement components of stock-based compensation expense recognized in Consolidated Statements of Income
Stock-based compensation before income taxes	$ 2,122,000	$ 1,289,000	$ 5,517,000	$ 4,128,000

Stock-Based Compensation - Acti

Stock-Based Compensation - Activity (Details)	1 Months Ended	3 Months Ended		4 Months Ended	9 Months Ended
	Jan. 31, 2016itemshares	Apr. 30, 2016USD ($)$ / sharesshares	Apr. 30, 2015USD ($)	Apr. 30, 2016USD ($)$ / sharesshares	Apr. 30, 2016USD ($)$ / sharesshares	Apr. 30, 2015USD ($)$ / shares	Jul. 31, 2015$ / sharesshares
Stock-Based Compensation
Total unrecognized stock-based compensation expense, before income taxes, related to total nonvested stock options and stock awards (in dollars) | $		$ 11,005,000		$ 11,005,000	$ 11,005,000
Remaining weighted average period over which unrecognized stock-based compensation expense is expected to be recognized					18 months
Number of Shares
Outstanding at the beginning of the period (in shares)					107,500
Granted (in shares)					15,000
Outstanding at the end of the period (in shares)		122,500		122,500	122,500
Exercisable at the end of the period (in shares)		80,834		80,834	80,834		45,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares					$ 25.73
Granted (in dollars per share) | $ / shares					55.36
Outstanding at the end of the period (in dollars per share) | $ / shares		$ 29.36		$ 29.36	29.36
Exercisable at the end of the period (in dollars per share) | $ / shares		$ 22.72		$ 22.72	$ 22.72		$ 20.32
Stock-based awards, additional disclosure
Deduction in income tax due to exercise of options and vesting of restricted stock (in dollars) | $					$ 3,297,000	$ 4,532,000
Increase in additional paid-in capital due to excess tax benefit on stock-based compensation expense (in dollars) | $					$ 1,586,000	$ 2,662,000
2006 Plan
Stock-based awards, additional disclosure
Shares available for grant	0
2016 Plan
Stock-based awards, additional disclosure
Maximum number of shares authorized for issuance	1,200,000
Restricted shares
Number of Shares
Nonvested stock awards at the beginning of the period (in shares)					343,519
Granted (in shares)					167,990
Cancelled (in shares)					(4,324)
Vested (in shares)					(169,575)
Nonvested stock awards at the end of the period (in shares)		337,610		337,610	337,610
Weighted Average Fair Value
Nonvested stock awards at the beginning of the period (in dollars per share) | $ / shares					$ 32.77
Granted (in dollars per share) | $ / shares					54.81
Cancelled (in dollars per share) | $ / shares					44.04
Vested (in dollars per share) | $ / shares					28.49
Nonvested stock awards at the end of the period (in dollars per share) | $ / shares		$ 45.74		$ 45.74	$ 45.74
Restricted shares | 2016 Plan
Number of Shares
Granted (in shares)				5,725
Stock-based awards, additional disclosure
Number of anniversaries of grant date on which awards vest | item	3
Restricted shares | 2016 Plan | First anniversary vesting
Stock-based awards, additional disclosure
Vesting percentage	33.30%
Vesting period	1 year
Restricted shares | 2016 Plan | Second anniversary vesting
Stock-based awards, additional disclosure
Vesting percentage	33.30%
Vesting period	2 years
Restricted shares | 2016 Plan | Third anniversary vesting
Stock-based awards, additional disclosure
Vesting percentage	33.30%
Vesting period	3 years
Stock options
Weighted-Average Black-Scholes Option Valuation Assumptions
Dividend yield (as a percent)					0.22%	0.25%
Expected volatility (as a percent)					55.90%	33.90%
Risk-free interest rate (as a percent)					1.41%	1.55%
Expected lives					5 years	5 years
Stock options, additional disclosure
Weighted average fair value of all options granted (in dollars per share) | $ / shares					$ 26.49	$ 11.54
Aggregate intrinsic value of all options exercised (in dollars) | $		$ 0	$ 383,000		$ 0	$ 2,803,000

Acquisitions - NAMSA (Details)

Acquisitions - NAMSA (Details)	Mar. 01, 2016USD ($)project	Apr. 30, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)
Net Assets
Goodwill		$ 284,018,000	$ 241,951,000	$ 231,647,000
North American Science Associates Inc
Acquisitions
Pre-acquisition annual revenues	$ 5,700,000
Total consideration for the transaction, excluding acquisition-related costs	13,520,000
Net Assets
Current assets	2,233,000
Property, plant and equipment	437,000
Current liabilities	(123,000)
Net assets acquired	$ 9,807,000
Amortizable intangible assets, useful life	10 years
Number of in-process research and development projects acquired | project	0
Goodwill	$ 3,713,000
Goodwill deductible for income tax purposes	3,713,000
North American Science Associates Inc | Customer relationships
Net Assets
Amortizable intangible assets	$ 5,940,000
Amortizable intangible assets, useful life	10 years
North American Science Associates Inc | Technology
Net Assets
Amortizable intangible assets	$ 1,320,000
Amortizable intangible assets, useful life	8 years

Acquisitions - MI (Details)

Acquisitions - MI (Details)	Sep. 14, 2015USD ($)employeeproject	Apr. 30, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)
Net Assets
Goodwill		$ 284,018,000	$ 241,951,000	$ 231,647,000
Medical Innovations Group Holdings Limited
Acquisitions
Pre-acquisition annual revenues	$ 28,500,000
Number of individuals in employee base | employee	100
Total consideration for the transaction, excluding acquisition-related costs	$ 79,597,000
Estimated net asset value adjustment	212,000
Net Assets
Current assets	7,491,000
Property, plant and equipment	6,464,000
Current liabilities	(2,730,000)
Deferred income tax liabilities	(8,530,000)
Net assets acquired	$ 40,084,000
Amortizable intangible assets, useful life	15 years
Number of in-process research and development projects acquired | project	0
Goodwill	$ 39,513,000
Goodwill deductible for income tax purposes	0
Medical Innovations Group Holdings Limited | Customer relationships
Net Assets
Amortizable intangible assets	$ 24,430,000
Amortizable intangible assets, useful life	17 years
Medical Innovations Group Holdings Limited | Technology
Net Assets
Amortizable intangible assets	$ 10,930,000
Amortizable intangible assets, useful life	10 years
Medical Innovations Group Holdings Limited | Brand names
Net Assets
Amortizable intangible assets	$ 2,029,000
Amortizable intangible assets, useful life	12 years

Acquisitions - DentaPure (Detai

Acquisitions - DentaPure (Details)	Feb. 20, 2015USD ($)project	Apr. 30, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)
Net Assets
Goodwill		$ 284,018,000	$ 241,951,000	$ 231,647,000
DentaPure
Acquisitions
Pre-acquisition annual revenues	$ 2,300,000
Total consideration for the transaction, excluding acquisition-related costs	9,980,000
Net Assets
Current assets	566,000
Property, plant and equipment	50,000
Current liabilities	(248,000)
Deferred income tax liabilities	(2,172,000)
Net assets acquired	$ 3,876,000
Amortizable intangible assets, useful life	10 years
Number of in-process research and development projects acquired | project	0
Goodwill	$ 6,104,000
Goodwill deductible for income tax purposes	0
DentaPure | Customer relationships
Net Assets
Amortizable intangible assets	$ 4,640,000
Amortizable intangible assets, useful life	10 years
DentaPure | Technology
Net Assets
Amortizable intangible assets	$ 780,000
Amortizable intangible assets, useful life	10 years
DentaPure | Brand names
Net Assets
Amortizable intangible assets	$ 260,000
Amortizable intangible assets, useful life	10 years

Acquisitions - Pure Water Solut

Acquisitions - Pure Water Solutions (Details)	Jan. 01, 2015USD ($)project	Apr. 30, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)
Net Assets
Goodwill		$ 284,018,000	$ 241,951,000	$ 231,647,000
Pure Water Solutions, Inc.
Acquisitions
Pre-acquisition annual revenues	$ 8,000,000
Total consideration for the transaction, excluding acquisition-related costs	11,835,000
Net Assets
Current assets	1,417,000
Property, plant and equipment	1,966,000
Other assets	20,000
Current liabilities	(503,000)
Net assets acquired	$ 8,870,000
Amortizable intangible assets, useful life	12 years
Number of in-process research and development projects acquired | project	0
Goodwill	$ 2,965,000
Goodwill deductible for income tax purposes	2,965,000
Pure Water Solutions, Inc. | Customer relationships
Net Assets
Amortizable intangible assets	$ 5,940,000
Amortizable intangible assets, useful life	12 years
Pure Water Solutions, Inc. | Brand names
Net Assets
Amortizable intangible assets	$ 30,000
Amortizable intangible assets, useful life	1 year

Acquisitions - International Me

Acquisitions - International Medical Service (Details)	Nov. 03, 2014USD ($)project	Apr. 30, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)
Net Assets
Goodwill		$ 284,018,000	$ 241,951,000	$ 231,647,000
International Medical Service S.r.l.
Acquisitions
Pre-acquisition annual revenues	$ 13,500,000
Total consideration for the transaction, excluding acquisition-related costs	24,610,000
Amount of assumed debt	2,498,000
Net Assets
Current assets	8,111,000
Property, plant and equipment	7,922,000
Other assets	177,000
Current liabilities	(5,735,000)
Deferred income tax liabilities	(3,028,000)
Other long-term liabilities	(1,020,000)
Net assets acquired	$ 13,477,000
Amortizable intangible assets, useful life	9 years
Number of in-process research and development projects acquired | project	0
Goodwill	$ 11,133,000
Goodwill deductible for income tax purposes	0
International Medical Service S.r.l. | Customer relationships
Net Assets
Amortizable intangible assets	$ 5,669,000
Amortizable intangible assets, useful life	9 years
International Medical Service S.r.l. | Technology
Net Assets
Amortizable intangible assets	$ 1,381,000
Amortizable intangible assets, useful life	9 years

Inventories, Net (Details)

Inventories, Net (Details) - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Inventories
Raw materials and parts	$ 45,266,000	$ 36,585,000
Work-in-process	12,907,000	10,017,000
Finished goods	38,440,000	29,371,000
Reserve for excess and obsolete inventory	(5,666,000)	(3,895,000)
Total inventories	$ 90,947,000	$ 72,078,000

Derivatives (Details)

Derivatives (Details) - Foreign currency forward contracts - Designated as hedging instrument - Fair value hedge instruments	3 Months Ended		9 Months Ended
	Apr. 30, 2016USD ($)contract	Apr. 30, 2015USD ($)	Apr. 30, 2016USD ($)contract	Apr. 30, 2015USD ($)
Derivatives
Term of contracts			1 month
Number of contracts | contract	5		5
Aggregate value of contracts	$ 11,617,000		$ 11,617,000
Term of renewed contracts			1 month
Net currency conversion gains (losses), net of tax	$ (53,000)	$ (12,000)	$ (359,000)	$ (61,000)

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($)	Jun. 30, 2014	Nov. 05, 2013	Apr. 30, 2016
Jet Prep Ltd.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Contingent consideration			$ 148,000
Assumed contingent obligation			1,138,000
Contingent consideration period		7 years
Cantel Medical (UK)
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Contingent guaranteed obligation			569,000
Level 3 | Jet Prep Ltd. | Minimum
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Assumed contingent obligation		$ 810,000
Level 3 | Recurring basis | Jet Prep Ltd.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Contingent consideration		2,490,000	148,000
Assumed contingent obligation		$ 1,720,000	1,138,000
Contingent consideration period		7 years
Level 3 | Recurring basis | Jet Prep Ltd. | Contingent Consideration
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Discount rate of cash flow projections (as a percent)		12.60%
Total potential contingent consideration payments, low end of range			0
Total potential contingent consideration payments, high end of range			452,000
Level 3 | Recurring basis | Jet Prep Ltd. | Assumed contingent liability
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Discount rate of cash flow projections (as a percent)		2.50%
Level 3 | Recurring basis | Cantel Medical (UK)
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Contingent guaranteed obligation	$ 1,414,000		$ 569,000
Discount rate of cash flow projections (as a percent)	10.10%

Fair Value Measurements - Hiera

Fair Value Measurements - Hierarchy Levels (Details) - Recurring basis - USD ($)	Apr. 30, 2016	Jul. 31, 2015
Assets:
Total assets	$ 880,000	$ 1,680,000
Liabilities:
Total liabilities	1,855,000	2,777,000
Accrued expenses
Liabilities:
Assumed contingent obligation	12,000	12,000
Contingent guaranteed obligation	414,000	566,000
Total accrued expenses	426,000	578,000
Other long-term liabilities
Liabilities:
Contingent consideration	148,000	751,000
Assumed contingent obligation	1,126,000	1,126,000
Contingent guaranteed obligation	155,000	322,000
Total other long-term liabilities	1,429,000	2,199,000
Money markets | Cash and cash equivalents
Assets:
Money markets	880,000	1,680,000
Level 1
Assets:
Total assets	880,000	1,680,000
Level 1 | Money markets | Cash and cash equivalents
Assets:
Money markets	880,000	1,680,000
Level 3
Liabilities:
Total liabilities	1,855,000	2,777,000
Level 3 | Accrued expenses
Liabilities:
Assumed contingent obligation	12,000	12,000
Contingent guaranteed obligation	414,000	566,000
Total accrued expenses	426,000	578,000
Level 3 | Other long-term liabilities
Liabilities:
Contingent consideration	148,000	751,000
Assumed contingent obligation	1,126,000	1,126,000
Contingent guaranteed obligation	155,000	322,000
Total other long-term liabilities	$ 1,429,000	$ 2,199,000

Fair Value Measurements - Level

Fair Value Measurements - Level 3 Liabilities (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Jan. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014
Reconciliation of liability measured and recorded at fair value on a recurring basis using Level 3
Beginning balance	$ 1,918,000	$ 2,050,000	$ 2,777,000	$ 2,774,000	$ 5,701,000	$ 5,807,000	$ 5,869,000
Total net unrealized (gains) losses included in general and administrative expense in earnings	20,000	21,000	(592,000)	52,000	(2,790,000)	127,000	147,000
Settlements	(95,000)	(100,000)	(120,000)	(109,000)	(161,000)	(164,000)	(132,000)
Foreign currency translation	12,000	(53,000)	(15,000)	60,000	24,000	(69,000)	(77,000)
Ending balance	1,855,000	1,918,000	2,050,000	2,777,000	2,774,000	5,701,000	5,807,000
Contingent Consideration | Jet Prep Ltd.
Reconciliation of liability measured and recorded at fair value on a recurring basis using Level 3
Beginning balance	143,000	139,000	751,000	729,000	2,888,000	2,804,000	2,722,000
Total net unrealized (gains) losses included in general and administrative expense in earnings	5,000	4,000	(612,000)	22,000	(2,159,000)	84,000	82,000
Ending balance	148,000	143,000	139,000	751,000	729,000	2,888,000	2,804,000
Assumed contingent liability | Jet Prep Ltd.
Reconciliation of liability measured and recorded at fair value on a recurring basis using Level 3
Beginning balance	1,138,000	1,138,000	1,138,000	1,131,000	1,773,000	1,763,000	1,752,000
Total net unrealized (gains) losses included in general and administrative expense in earnings				7,000	(642,000)	10,000	11,000
Ending balance	1,138,000	1,138,000	1,138,000	1,138,000	1,131,000	1,773,000	1,763,000
Contingent guaranteed obligation | Cantel Medical (UK)
Reconciliation of liability measured and recorded at fair value on a recurring basis using Level 3
Beginning balance	637,000	773,000	888,000	914,000	1,040,000	1,240,000	1,395,000
Total net unrealized (gains) losses included in general and administrative expense in earnings	15,000	17,000	20,000	23,000	11,000	33,000	54,000
Settlements	(95,000)	(100,000)	(120,000)	(109,000)	(161,000)	(164,000)	(132,000)
Foreign currency translation	12,000	(53,000)	(15,000)	60,000	24,000	(69,000)	(77,000)
Ending balance	$ 569,000	$ 637,000	$ 773,000	$ 888,000	$ 914,000	$ 1,040,000	$ 1,240,000

Intangible Assets and Goodwil47

Intangible Assets and Goodwill - Intangible Assets Summary (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015	Jul. 31, 2015
Intangible assets with finite lives:
Amortization expense	$ 3,346,000	$ 3,460,000	$ 9,737,000	$ 9,648,000
Gross	149,684,000		149,684,000		$ 142,539,000
Accumulated Amortization	(38,199,000)		(38,199,000)		(64,855,000)
Net	111,485,000		111,485,000		77,684,000
Intangible assets with indefinite lives:
Trademarks and tradenames	7,545,000		7,545,000		8,152,000
Total intangible assets
Gross	157,229,000		157,229,000		150,691,000
Accumulated Amortization	(38,199,000)		(38,199,000)		(64,855,000)
Net	119,030,000		$ 119,030,000		85,836,000
Minimum
Intangible assets with finite lives:
Estimated useful lives			3 years
Maximum
Intangible assets with finite lives:
Estimated useful lives			20 years
Weighted average
Intangible assets with finite lives:
Estimated useful lives			12 years
Customer relationships
Intangible assets with finite lives:
Gross	103,721,000		$ 103,721,000		97,697,000
Accumulated Amortization	(22,905,000)		(22,905,000)		(39,549,000)
Net	80,816,000		80,816,000		58,148,000
Total intangible assets
Accumulated Amortization	(22,905,000)		(22,905,000)		(39,549,000)
Technology
Intangible assets with finite lives:
Gross	34,049,000		34,049,000		26,508,000
Accumulated Amortization	(11,048,000)		(11,048,000)		(12,656,000)
Net	23,001,000		23,001,000		13,852,000
Total intangible assets
Accumulated Amortization	(11,048,000)		(11,048,000)		(12,656,000)
Brand names
Intangible assets with finite lives:
Gross	6,379,000		6,379,000		12,970,000
Accumulated Amortization	(2,237,000)		(2,237,000)		(10,865,000)
Net	4,142,000		4,142,000		2,105,000
Total intangible assets
Accumulated Amortization	(2,237,000)		(2,237,000)		(10,865,000)
Non-compete agreements
Intangible assets with finite lives:
Gross	3,092,000		3,092,000		3,129,000
Accumulated Amortization	(1,134,000)		(1,134,000)		(997,000)
Net	1,958,000		1,958,000		2,132,000
Total intangible assets
Accumulated Amortization	(1,134,000)		(1,134,000)		(997,000)
Patents and other registrations
Intangible assets with finite lives:
Gross	2,443,000		2,443,000		2,235,000
Accumulated Amortization	(875,000)		(875,000)		(788,000)
Net	1,568,000		1,568,000		1,447,000
Total intangible assets
Accumulated Amortization	$ (875,000)		$ (875,000)		$ (788,000)

Intangible Assets and Goodwil48

Intangible Assets and Goodwill - Estimated Annual Amortization Expense (Details)	Apr. 30, 2016USD ($)
Estimated annual amortization expense of intangible assets for next five years
Three month period ending July 31, 2016	$ 3,405,000
2,017	13,458,000
2,018	13,157,000
2,019	12,833,000
2,020	11,077,000
2,021	$ 10,720,000

Intangible Assets and Goodwil49

Intangible Assets and Goodwill - Goodwill Rollforward (Details) - USD ($)	9 Months Ended	12 Months Ended
	Apr. 30, 2016	Jul. 31, 2015
Changes in Goodwill
Balance at the beginning of the period	$ 241,951,000	$ 231,647,000
Acquisitions	43,889,000	20,162,000
Foreign currency translation	(1,822,000)	(4,118,000)
Sale of business		(5,740,000)
Balance at the end of the period	284,018,000	241,951,000
Endoscopy
Changes in Goodwill
Balance at the beginning of the period	87,007,000	78,274,000
Acquisitions	39,513,000	11,093,000
Foreign currency translation	(2,020,000)	(2,360,000)
Balance at the end of the period	124,500,000	87,007,000
Water Purification and Filtration
Changes in Goodwill
Balance at the beginning of the period	58,872,000	56,838,000
Acquisitions		2,965,000
Foreign currency translation	198,000	(931,000)
Balance at the end of the period	59,070,000	58,872,000
Healthcare Disposables
Changes in Goodwill
Balance at the beginning of the period	87,939,000	81,835,000
Acquisitions	4,376,000	6,104,000
Balance at the end of the period	92,315,000	87,939,000
Dialysis
Changes in Goodwill
Balance at the beginning of the period	8,133,000	8,133,000
Balance at the end of the period	$ 8,133,000	$ 8,133,000
Percentage of estimated fair value exceeding book value		17.00%
Other.
Changes in Goodwill
Balance at the beginning of the period		$ 6,567,000
Foreign currency translation		(827,000)
Sale of business		$ (5,740,000)

Warranties (Details)

Warranties (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Summary of activity in warranty reserves
Beginning balance	$ 1,967,000	$ 1,697,000	$ 1,740,000	$ 1,589,000
Acquisitions		1,000	28,000	118,000
Provisions	1,505,000	452,000	3,264,000	1,758,000
Settlements	(887,000)	(552,000)	(2,365,000)	(1,833,000)
Foreign currency translation	9,000	5,000	(73,000)	(29,000)
Ending balance	$ 2,594,000	$ 1,603,000	$ 2,594,000	$ 1,603,000

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($)	Mar. 04, 2014	Jun. 09, 2016	Apr. 30, 2016
Credit Agreement
Financing Arrangements
Maximum borrowing capacity	$ 250,000,000
Debt issuance costs	1,318,000
Fees on unused portion of credit facilities (as a percent)			0.25%
Shares of foreign subsidiaries pledged as security (as a percent)			65.00%
Outstanding borrowings		$ 128,500,000	$ 132,000,000
Repayment of borrowings		$ 3,500,000
Credit Agreement | Minimum
Financing Arrangements
Fees on unused portion of credit facilities (as a percent)			0.20%
Credit Agreement | Maximum
Financing Arrangements
Fees on unused portion of credit facilities (as a percent)			0.40%
Credit Agreement | Lender's base rate
Financing Arrangements
Margin on reference rate (as a percent)			0.50%
Reference rate (as a percent)			3.50%
Credit Agreement | Lender's base rate | Minimum
Financing Arrangements
Margin on reference rate (as a percent)			0.25%
Credit Agreement | Lender's base rate | Maximum
Financing Arrangements
Margin on reference rate (as a percent)			1.25%
Credit Agreement | LIBOR
Financing Arrangements
Margin on reference rate (as a percent)			1.50%
Credit Agreement | LIBOR | Minimum
Financing Arrangements
Margin on reference rate (as a percent)			1.25%
Reference rate (as a percent)			0.44%
Credit Agreement | LIBOR | Maximum
Financing Arrangements
Margin on reference rate (as a percent)			2.25%
Reference rate (as a percent)			0.90%
Revolving Credit Facility
Financing Arrangements
Maximum borrowing capacity	$ 250,000,000
Term of line of credit facility	5 years
Maximum additional borrowing capacity available at the entity's option	$ 100,000,000
Unamortized debt issuance costs	512,000
Borrowings of foreign currency
Financing Arrangements
Maximum borrowing capacity	100,000,000
Letters of credit
Financing Arrangements
Maximum borrowing capacity	30,000,000
Swing line loans
Financing Arrangements
Maximum borrowing capacity	$ 10,000,000
Other assets
Financing Arrangements
Unamortized debt issuance costs			$ 1,037,000

Earnings Per Common Share - Com

Earnings Per Common Share - Computation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Numerator for basic and diluted earnings per share:
Net income	$ 14,019,000	$ 12,356,000	$ 43,662,000	$ 34,680,000
Less income allocated to participating securities, basic	(115,000)	(105,000)	(359,000)	(323,000)
Net income available to common shareholders, basic	13,904,000	12,251,000	43,303,000	34,357,000
Less income allocated to participating securities, diluted	(115,000)	(105,000)	(359,000)	(323,000)
Net income available to common shareholders, diluted	$ 13,904,000	$ 12,251,000	$ 43,303,000	$ 34,357,000
Denominator for basic and diluted earnings per share, as adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock	41,363,548	41,187,720	41,335,488	41,114,830
Dilutive effect of stock options using the treasury stock method and the average market price for the period (in shares)	47,164	60,837	44,817	68,479
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	41,410,712	41,248,557	41,380,305	41,183,309
Earnings per share attributable to common stock:
Basic earnings per share (in dollars per share)	$ 0.34	$ 0.30	$ 1.05	$ 0.84
Diluted earnings per share (in dollars per share)	$ 0.34	$ 0.30	$ 1.05	$ 0.83

Earnings Per Common Share - Wei

Earnings Per Common Share - Weighted Average Shares (Details) - shares	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
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	41,410,712	41,248,557	41,380,305	41,183,309
Participating securities (in shares)	340,708	342,850	342,746	390,449
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	41,751,420	41,591,407	41,723,051	41,573,758

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Tax Rate (Details)	9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Reconciliation of consolidated income tax rate
Consolidated effective tax rate (as a percent)	36.70%	36.50%
United States
Reconciliation of consolidated income tax rate
Consolidated effective tax rate (as a percent)	36.50%	36.70%

Commitments and Contingencies -

Commitments and Contingencies - Annual Required Payments (Details) - USD ($)	9 Months Ended
	Apr. 30, 2016	Jun. 09, 2016
Minimum commitments under noncancelable operating leases
Remaining fiscal year	$ 1,422,000
2,017	5,163,000
2,018	3,918,000
2,019	3,055,000
2,020	2,026,000
Thereafter	4,553,000
Total	20,137,000
Total contractual obligations
Remaining fiscal year	3,637,000
2,017	16,907,000
2,018	7,672,000
2,019	137,580,000
2,020	2,914,000
Thereafter	6,276,000
Total	174,986,000
Jet Prep Ltd.
Total contractual obligations
Contingent consideration	148,000
Assumed contingent obligation	1,138,000
Cantel Medical (UK)
Total contractual obligations
Contingent guaranteed obligation	569,000
Compensation agreements
Other commitments
Remaining fiscal year	1,350,000
2,017	8,562,000
2,018	616,000
2,019	498,000
2,020	498,000
Thereafter	961,000
Total	12,485,000
Contingent consideration
Other commitments
2,019	36,000
2,020	132,000
Thereafter	40,000
Total	208,000
Contingent consideration | Jet Prep Ltd.
Total contractual obligations
Contingent consideration	$ 148,000
Discount rate of potential payments (as a percent)	12.60%
Assumed contingent liability
Other commitments
Remaining fiscal year	$ 1,000
2,017	19,000
2,018	93,000
2,019	188,000
2,020	246,000
Thereafter	719,000
Total	$ 1,266,000
Assumed contingent liability | Jet Prep Ltd.
Total contractual obligations
Discount rate of potential payments (as a percent)	2.50%
Assumed contingent obligation	$ 1,138,000
Contingent guaranteed obligation
Other commitments
Remaining fiscal year	90,000
2,017	197,000
2,018	147,000
2,019	135,000
Total	$ 569,000
Contingent guaranteed obligation | Cantel Medical (UK)
Total contractual obligations
Discount rate of potential payments (as a percent)	10.10%
Contingent guaranteed obligation	$ 569,000
Other long-term obligations
Other commitments
Remaining fiscal year	101,000
2,017	273,000
2,018	205,000
2,019	98,000
2,020	12,000
Thereafter	3,000
Total	692,000
Credit Agreement
Maturity of the credit facility
2,019	132,000,000
Total	132,000,000	$ 128,500,000
Expected interest payments under the credit facility
Remaining fiscal year	673,000
2,017	2,693,000
2,018	2,693,000
2,019	1,570,000
Total	$ 7,629,000
Total contractual obligations
Weighted average interest rate on outstanding borrowings (as a percent)	2.04%

Commitments and Contingencies56

Commitments and Contingencies - Other Long-Term Obligations (Details) - USD ($)	Nov. 05, 2013	Apr. 30, 2016	Nov. 03, 2014
Jet Prep Ltd.
Commitments and Contingencies
Contingent consideration liability		$ 148,000
Assumed contingent obligation		1,138,000
Period over which potential cash contingent consideration is payable	7 years
Cantel Medical (UK)
Commitments and Contingencies
Contingent guaranteed obligation		569,000
International Medical Service S.r.l.
Commitments and Contingencies
Other long-term liabilities			$ 1,020,000
International Medical Service S.r.l. | Central bank of Italy
Commitments and Contingencies
Liabilities assumed		510,000	$ 843,000
Interest rate per annum (as a percent)			0.25%
International Medical Service S.r.l. | Central bank of Italy | Accrued expenses
Commitments and Contingencies
Liabilities assumed		169,000	$ 187,000
International Medical Service S.r.l. | Central bank of Italy | Other long-term liabilities
Commitments and Contingencies
Liabilities assumed		$ 341,000	$ 656,000

Accumulated Other Comprehensi57

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Components and changes in accumulated other comprehensive (loss) income
Balance			$ 406,633,000
Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period		$ 2,206,000		$ 2,206,000
Balance	$ 447,638,000		447,638,000
Accumulated Other Comprehensive Income
Components and changes in accumulated other comprehensive (loss) income
Balance	(6,802,000)	2,052,000	1,224,000	9,552,000
Balance	(2,803,000)	1,934,000	(2,803,000)	1,934,000
Foreign Currency Translation Adjustments
Components and changes in accumulated other comprehensive (loss) income
Other comprehensive income before reclassifications, net of tax	$ 3,999,000	1,146,000	$ (4,027,000)	(6,354,000)
Foreign Currency Translation Adjustments | Reclassification adjustments
Components and changes in accumulated other comprehensive (loss) income
Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period		$ (1,264,000)		$ (1,264,000)

Operating Segments - Concentrat

Operating Segments - Concentration Risk (Details) - Segment sales - Customer concentration	9 Months Ended
	Apr. 30, 2016customer
Water Purification and Filtration | Two customers
Concentration risk
Number of customers accounting for a percentage of segment net sales	2
Concentration risk within segment (as a percent)	43.90%
Healthcare Disposables | Four customers
Concentration risk
Number of customers accounting for a percentage of segment net sales	4
Concentration risk within segment (as a percent)	50.20%
Dialysis | Two customers
Concentration risk
Number of customers accounting for a percentage of segment net sales	2
Concentration risk within segment (as a percent)	42.30%

Operating Segments - Results (D

Operating Segments - Results (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Information as to operating segments
Net sales	$ 173,703,000	$ 141,508,000	$ 485,753,000	$ 413,749,000
Operating income	23,263,000	21,281,000	71,435,000	58,629,000
Interest expense, net	(871,000)	(619,000)	(2,487,000)	(1,799,000)
Other expense		(2,206,000)		(2,206,000)
Income before income taxes	22,392,000	18,456,000	68,948,000	54,624,000
Operating Segment
Information as to operating segments
Operating income	31,170,000	25,781,000	90,149,000	72,073,000
General corporate
Information as to operating segments
Operating income	(7,907,000)	(4,500,000)	(18,714,000)	(13,444,000)
Endoscopy
Information as to operating segments
Net sales	91,892,000	63,734,000	244,992,000	178,636,000
Endoscopy | Operating Segment
Information as to operating segments
Operating income	16,279,000	12,978,000	43,402,000	28,832,000
Water Purification and Filtration
Information as to operating segments
Net sales	44,645,000	44,975,000	132,609,000	129,699,000
Water Purification and Filtration | Operating Segment
Information as to operating segments
Operating income	6,934,000	7,540,000	22,336,000	23,317,000
Healthcare Disposables
Information as to operating segments
Net sales	29,779,000	24,754,000	83,157,000	79,288,000
Healthcare Disposables | Operating Segment
Information as to operating segments
Operating income	6,162,000	3,432,000	18,195,000	14,255,000
Dialysis
Information as to operating segments
Net sales	7,387,000	6,970,000	24,995,000	21,770,000
Dialysis | Operating Segment
Information as to operating segments
Operating income	$ 1,795,000	1,620,000	$ 6,216,000	4,551,000
Other.
Information as to operating segments
Net sales		1,075,000		4,356,000
Other. | Operating Segment
Information as to operating segments
Operating income		$ 211,000		$ 1,118,000

Disposition of Business (Detail

Disposition of Business (Details) - USD ($)	Apr. 07, 2015	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2016	Apr. 30, 2015
Disposition of Business
Proceeds from sale of business, net of cash retained and disposal costs					$ 3,942,000
Reclassification adjustment to loss on sale of business for foreign currency translation gain included in net income during the period			$ 1,264,000		1,264,000
Loss on sale of business			$ 2,206,000		$ 2,206,000
Diluted earnings per share (in dollars per share)		$ 0.34	$ 0.30	$ 1.05	$ 0.83
Specialty Packaging business | Other. | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposition of Business
Proceeds from sale of business, net of cash retained and disposal costs	$ 7,531,000
Amount held in escrow	$ 660,000
Loss on sale of business			$ 2,206,000
Diluted earnings per share (in dollars per share)			$ (0.04)