Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2018 | Sep. 11, 2018 | Jan. 31, 2018 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BRC | ||
Entity Registrant Name | BRADY CORP | ||
Entity Central Index Key | 746,598 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,733,322,847 | ||
Class A Nonvoting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 48,465,547 | ||
Class B Voting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,538,628 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 181,427 | $ 133,944 |
Accounts receivable — net | 161,282 | 149,638 |
Inventories: | ||
Finished products | 73,133 | 69,760 |
Work-in-process | 19,903 | 18,117 |
Raw materials and supplies | 20,035 | 19,147 |
Total inventories | 113,071 | 107,024 |
Prepaid expenses and other current assets | 15,559 | 17,208 |
Total current assets | 471,339 | 407,814 |
Other assets: | ||
Goodwill | 419,815 | 437,697 |
Other intangible assets | 42,588 | 53,076 |
Deferred income taxes | 7,582 | 35,456 |
Other | 17,662 | 18,077 |
Property, plant and equipment: | ||
Land | 6,994 | 7,470 |
Buildings and improvements | 96,245 | 98,228 |
Machinery and equipment | 270,989 | 261,192 |
Construction in progress | 4,495 | 4,109 |
Property, plant and equipment, gross | 378,723 | 370,999 |
Less accumulated depreciation | 280,778 | 272,896 |
Property, plant and equipment — net | 97,945 | 98,103 |
Total | 1,056,931 | 1,050,223 |
Current liabilities: | ||
Notes payable | 0 | 3,228 |
Accounts payable | 66,538 | 66,817 |
Wages and amounts withheld from employees | 67,619 | 58,192 |
Taxes, other than income taxes | 8,318 | 7,970 |
Accrued income taxes | 3,885 | 7,373 |
Other current liabilities | 44,567 | 43,618 |
Total current liabilities | 190,927 | 187,198 |
Long-term obligations | 52,618 | 104,536 |
Other liabilities | 61,274 | 58,349 |
Total liabilities | 304,819 | 350,083 |
Stockholders’ investment: | ||
Class A nonvoting common stock — Issued 51,261,487 shares at July 31, 2018 and 2017, respectively (aggregate liquidation preference of $42,803 at July 31, 2018 and 2017) | 513 | 513 |
Class B voting common stock — Issued and outstanding 3,538,628 shares | 35 | 35 |
Additional paid-in capital | 325,631 | 322,608 |
Earnings retained in the business | 553,454 | 507,136 |
Treasury stock — 2,867,870 and 3,446,669 shares at July 31, 2018 and 2017, respectively, of Class A nonvoting common stock, at cost | (71,120) | (85,470) |
Accumulated other comprehensive loss | (56,401) | (44,682) |
Total stockholders’ investment | 752,112 | 700,140 |
Total | $ 1,056,931 | $ 1,050,223 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Class A Nonvoting Common Stock [Member] | ||
Common stock, shares issued | 51,261,487 | 51,261,487 |
Common Stock Aggregate Liquidation Preference | $ 42,803 | $ 42,803 |
Treasury stock, shares | 2,867,870 | 3,446,669 |
Class B Voting Common Stock [Member] | ||
Common stock, shares issued | 3,538,628 | 3,538,628 |
Common stock, shares outstanding | 3,538,628 | 3,538,628 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Net sales | $ 1,173,851 | $ 1,113,316 | $ 1,120,625 |
Cost of products sold | 585,560 | 555,024 | 561,852 |
Gross margin | 588,291 | 558,292 | 558,773 |
Operating expenses: | |||
Research and development | 45,253 | 39,624 | 35,799 |
Selling, general and administrative | 390,342 | 387,653 | 405,096 |
Total operating expenses | 435,595 | 427,277 | 440,895 |
Operating income | 152,696 | 131,015 | 117,878 |
Other income (expense): | |||
Investment and other income (expense) | 2,487 | 1,121 | (709) |
Interest expense | (3,168) | (5,504) | (7,824) |
Earnings before income taxes | 152,015 | 126,632 | 109,345 |
Income tax expense | 60,955 | 30,987 | 29,235 |
Net earnings | $ 91,060 | $ 95,645 | $ 80,110 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 51,677 | 51,056 | 50,541 |
Diluted (in shares) | 52,524 | 51,956 | 50,769 |
Class A Nonvoting Common Stock [Member] | |||
Earnings per share: | |||
Earnings (loss) from continuing operations, per basic share | $ 1.76 | $ 1.87 | |
Earnings (loss) from continuing operations, per diluted share | 1.73 | 1.84 | |
Net earnings (loss) per share, basic | 1.76 | 1.87 | $ 1.59 |
Net earnings (loss) per share, diluted | 1.73 | 1.84 | 1.58 |
Dividends | 0.83 | 0.82 | 0.81 |
Class B Voting Common Stock [Member] | |||
Earnings per share: | |||
Net earnings (loss) per share, basic | 1.75 | 1.86 | 1.57 |
Net earnings (loss) per share, diluted | 1.72 | 1.83 | 1.56 |
Dividends | $ 0.81 | $ 0.80 | $ 0.79 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 91,060 | $ 95,645 | $ 80,110 |
Foreign currency translation adjustments: | |||
Net (loss) gain recognized in other comprehensive (loss) income | (11,195) | 8,621 | (1,405) |
Total foreign currency translation adjustments | (11,195) | 8,621 | (1,405) |
Net investment hedge and long-term intercompany loan translation adjustments: | |||
Net loss recognized in other comprehensive (loss) income | (2,480) | (1,404) | (2,280) |
Total long-term intercompany loan translation adjustments | (2,480) | (1,404) | (2,280) |
Cash flow hedges: | |||
Net gain (loss) recognized in other comprehensive (loss) income | 966 | (225) | (1,254) |
Reclassification adjustment for losses included in net earnings | 551 | 486 | 196 |
Total cash flow hedges | 1,517 | 261 | (1,058) |
Pension and other post-retirement benefits: | |||
Net gain (loss) recognized in other comprehensive (loss) income | 446 | 647 | (293) |
Actuarial gain amortization | (576) | (483) | (612) |
Prior service credit amortization | 0 | 0 | (1,035) |
Total pension and other post-retirement benefits | (130) | 164 | (1,940) |
Other comprehensive (loss) income, before tax | (12,288) | 7,642 | (6,683) |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 569 | 2,421 | (3,028) |
Other comprehensive (loss) income, net of tax | (11,719) | 10,063 | (9,711) |
Comprehensive income | $ 79,341 | $ 105,708 | $ 70,399 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common Stock, Value, Issued | $ 548 | $ 548 | $ 548 |
Beginning Balances | 700,140 | ||
Net earnings | 91,060 | 95,645 | 80,110 |
Other comprehensive loss, net of tax | (11,719) | 10,063 | (9,711) |
Stock-based compensation expense | 9,980 | 9,495 | 8,154 |
Stock Repurchased During Period, Value | (1,462) | (23,552) | |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 1,869 | 0 | 0 |
Purchase of shares of Class A Common Stock | (1,462) | 0 | (23,552) |
Ending Balances | 752,112 | 700,140 | |
Additional Paid-in Capital [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances | 322,608 | 317,001 | 314,403 |
Issuance of shares of Class A Common Stock under stock plan | (7,171) | (5,868) | (3,830) |
Stockholder's equity, other | 1,943 | (10) | |
Tax benefit and withholdings from deferred compensation distributions | 214 | 37 | (1,716) |
Stock-based compensation expense | 9,980 | 9,495 | 8,154 |
Ending Balances | 325,631 | 322,608 | 317,001 |
Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances | 507,136 | 453,371 | 414,069 |
Net earnings | 91,060 | 95,645 | 80,110 |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 1,869 | ||
Payment of Ordinary Dividends, Common Stock Class A | (39,998) | (39,037) | (38,001) |
Payment of Ordinary Dividends, Common Stock Class B | (2,875) | (2,843) | (2,807) |
Ending Balances | 553,454 | 507,136 | 453,371 |
Treasury Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances | (85,470) | (108,714) | (93,234) |
Issuance of shares of Class A Common Stock under stock plan | 16,234 | 23,591 | 8,300 |
Stockholder's equity, other | (422) | (347) | (228) |
Ending Balances | (71,120) | (85,470) | (108,714) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances | (44,682) | (54,745) | (45,034) |
Other comprehensive loss, net of tax | (11,719) | 10,063 | (9,711) |
Ending Balances | (56,401) | (44,682) | (54,745) |
Other equity component [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balances | 0 | (3,863) | (3,064) |
Stockholder's equity, other | 3,863 | (799) | |
Ending Balances | $ 0 | $ 0 | $ (3,863) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Operating activities: | |||
Net earnings | $ 91,060 | $ 95,645 | $ 80,110 |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 25,442 | 27,303 | 32,432 |
Non-cash portion of stock-based compensation expense | 9,980 | 9,495 | 8,154 |
Gain on sale of business, net | (4,666) | 0 | 0 |
Deferred income taxes | 33,656 | (8,618) | 2,085 |
Changes in operating assets and liabilities (net of effects of business acquisitions/divestitures): | |||
Accounts receivable | (16,612) | 766 | 8,159 |
Inventories | (7,563) | (5,687) | 4,833 |
Prepaid expenses and other assets | 1,747 | 1,812 | 475 |
Accounts payable and accrued liabilities | 13,091 | 22,255 | 3,928 |
Income taxes | (3,093) | 1,061 | (1,200) |
Net cash provided by operating activities | 143,042 | 144,032 | 138,976 |
Investing activities: | |||
Purchases of property, plant and equipment | (21,777) | (15,167) | (17,140) |
Sale of business, net of cash transferred with business | 19,141 | 0 | 0 |
Other | (269) | (86) | 1,724 |
Net cash used in investing activities | (2,905) | (15,253) | (15,416) |
Financing activities: | |||
Payment of dividends | (42,873) | (41,880) | (40,808) |
Proceeds from exercise of stock options | 12,099 | 19,728 | 5,246 |
Purchase of treasury stock | (1,462) | 0 | (23,552) |
Proceeds from borrowings on line of credit | 23,221 | 180,320 | 96,276 |
Repayment of borrowing on line of credit | (78,419) | (244,268) | (91,759) |
Principal payments on debt | 0 | (49,302) | (42,514) |
Payments of Debt Issuance Costs | 0 | 0 | (803) |
Income tax on equity-based compensation, and other | (3,246) | (839) | (1,662) |
Net cash used in financing activities | (90,680) | (136,241) | (99,576) |
Effect of exchange rate changes on cash and cash equivalents | (1,974) | 178 | 2,752 |
Net increase (decrease) in cash and cash equivalents | 47,483 | (7,284) | 26,736 |
Cash and cash equivalents, beginning of period | 133,944 | 141,228 | 114,492 |
Cash and cash equivalents, end of period | 181,427 | 133,944 | 141,228 |
Cash paid during the period for: | |||
Interest | 2,976 | 5,766 | 8,528 |
Income taxes | $ 33,267 | $ 31,885 | $ 28,497 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations — Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized, and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a world leader in many of its markets. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Brady Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments — The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, notes payable, accounts payable, accrued liabilities and short-term and long-term debt) is a reasonable estimate of the fair value of these instruments due to their short-term nature. See Note 6 for more information regarding the fair value of long-term debt and Note 11 for fair value measurements. Cash Equivalents — The Company considers all highly-liquid investments with original maturities of three months or less when acquired to be cash equivalents, which are recorded at cost. Accounts Receivables — Accounts receivables are stated net of allowances for doubtful accounts of $4,471 and $4,629 as of July 31, 2018 and 2017 , respectively. No single customer comprised more than 10% of the Company’s consolidated net sales in fiscal 2018 , 2017 , or 2016 , or 10% of the Company’s consolidated accounts receivable as of July 31, 2018 or 2017 . Specific customer provisions are made during review of significant outstanding amounts, in which customer creditworthiness and current economic trends may indicate that collection is doubtful. In addition, provisions are made for the remainder of accounts receivable based upon the age of the accounts receivable and the Company’s historical collection experience. Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for certain inventories in the U.S. ( 15.0% of total inventories at July 31, 2018 , and 13.5% of total inventories at July 31, 2017 ) and the first-in, first-out (“FIFO”) or average cost methods for other inventories. Had all inventories been accounted for on a FIFO basis instead of on a LIFO basis, the carrying value of inventories would have increased by $7,015 and $6,807 as of July 31, 2018 and 2017 , respectively. Goodwill — Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. The fair value represents the amount at which a reporting unit could be bought or sold in a current transaction between market participants on an arms-length basis. In estimating the fair value, the Company utilizes a discounted cash flow model and market multiples approach. The estimated fair value is compared with the carrying amount of the reporting unit, including goodwill. The annual impairment testing performed on May 1, 2018 , in accordance with ASC 350, "Intangibles - Goodwill and Other" ("Step One") indicated that all reporting units with remaining goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recorded during the year ended July 31, 2018 . Long-Lived and Other Intangible Assets — The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line basis, over the estimated periods benefited. Intangible assets with indefinite useful lives as well as goodwill are not subject to amortization. These assets are assessed for impairment annually or more frequently as deemed necessary. The Company evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived and other finite-lived intangible assets may warrant revision or that the remaining balance of an asset may not be recoverable. If impairment is determined to exist, any related impairment loss is calculated by comparing the fair value of the asset to its carrying value. In fiscal 2018 , long-lived and other intangible assets were analyzed for potential impairment. As a result of the analysis, no material impairment charges were recorded. Refer to Note 2, "Goodwill and Other Intangible Assets" for further information. Property, Plant, and Equipment — Property, plant, and equipment are recorded at cost. The cost of buildings and improvements, computer systems, and machinery and equipment are depreciated over their estimated useful lives using primarily the straight-line method for financial reporting purposes. The estimated useful lives range from 3 to 33 years as shown below. Asset Category Range of Useful Lives Buildings & Improvements 10 to 33 Years Computer Systems 5 Years Machinery & Equipment 3 to 10 Years Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged to operations. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. Depreciation expense was $19,009 , $20,190 , and $23,375 for the years ended July 31, 2018 , 2017 and 2016 , respectively. Catalog Costs and Related Amortization — The Company accumulates all direct costs incurred, net of vendor cooperative advertising payments, in the development, production, and circulation of its catalogs on its balance sheet until such time as the related catalog is mailed. The catalog costs are subsequently amortized into selling, general, and administrative expense over the expected sales realization cycle, which is one year or less. Consequently, any difference between the estimated and actual revenue stream for a particular catalog and the related impact on amortization expense is realized within a period of one year or less. The estimate of the expected sales realization cycle for a particular catalog is based on the Company’s historical sales experience with similar catalogs, and an assessment of prevailing economic conditions and various competitive factors. The Company tracks subsequent sales realization, reassesses the marketplace, and compares its findings to the previous estimate, and adjusts the amortization of future catalogs, if necessary. At July 31, 2018 and 2017 , $6,154 and $7,299 , respectively, of prepaid catalog costs were included in prepaid expenses and other current assets. Revenue Recognition — Revenue is recognized when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, most of which occur upon shipment of goods to customers. The majority of the Company’s revenue relates to the sale of inventory to customers, and revenue is recognized when title and the risks and rewards of ownership pass to the customer. Given the nature of the Company’s business and the applicable rules guiding revenue recognition, the Company’s revenue recognition practices do not contain estimates that materially affect the results of operations, with the exception of estimated returns and credit memos. The Company provides for an allowance for estimated product returns and credit memos which is recognized as a deduction from net sales at the time of the sale. As of July 31, 2018 and 2017 , the Company had a reserve for estimated product returns and credit memos of $4,546 and $3,873 , respectively. Sales Incentives — The Company accounts for cash consideration (such as sales incentives and cash discounts) given to its customers or resellers as a reduction of revenue rather than an operating expense. Sales incentives for the years ended July 31, 2018 , 2017 , and 2016 were $40,671 , $37,134 , and $36,084 , respectively. Shipping and Handling Fees and Costs — Amounts billed to a customer in a sale transaction related to shipping and handling fees are reported as net sales and the related costs incurred for shipping and handling are reported as cost of goods sold. Advertising Costs — Advertising costs are expensed as incurred, except catalog and mailing costs as outlined previously. Advertising expense for the years ended July 31, 2018 , 2017 , and 2016 was $67,429 , $68,268 , and $74,204 , respectively. Stock-Based Compensation — The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock units ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. Certain awards may be subject to pre-established performance goals. The options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and generally vest over a three-year service period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. Options issued under the plan, referred to herein as “time-based” stock options, generally expire 10 years from the date of grant. Restricted and unrestricted shares and RSUs issued under the plan have a grant date fair value equal to the fair market value of the underlying stock at the date of grant. Shares issued under the plan are referred to herein as either "time-based" or "performance-based" restricted shares and RSUs. The time-based RSUs granted under the plan generally vest over a three-year service period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. The performance-based RSUs granted under the plan vest at the end of a three-year service period provided specified Company financial performance metrics are met. In accordance with ASC 718 "Compensation - Stock Compensation," the Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated grant-date fair values. The Black-Scholes option valuation model is used to determine the fair value of stock option awards on the date of grant. The Company recognizes the compensation cost of all share-based awards at the time it is deemed probable the award will vest. This cost is recognized on a straight-line basis over the vesting period of the award. If it is determined that it is unlikely the award will vest, the expense recognized to date for the award is reversed in the period in which this is evident and the remaining expense is not recorded. The Black-Scholes model requires the use of assumptions which determine the fair value of stock-based awards. The Company uses historical data regarding stock option exercise behaviors to estimate the expected term of options granted based on the period of time that options granted are expected to be outstanding. Expected volatilities are based on the historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s historical dividend payments and historical yield. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for the length of time corresponding to the expected term of the option. The market value is calculated as the average of the high and the low stock price on the date of the grant. The Company includes as part of cash flows from operating activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and restricted shares and RSUs vested during the period. See Note 7 “Stockholders' Investment” for more information regarding the Company’s incentive stock plans. Research and Development — Amounts expended for R&D are expensed as incurred. Other Comprehensive Income — Other comprehensive income consists of foreign currency translation adjustments, net investment hedge and long-term intercompany loan translation adjustments, net unrealized gains and losses from cash flow hedges, and the unamortized gain on defined-benefit pension plans net of their related tax effects. Foreign Currency Translation — Foreign currency assets and liabilities are translated into United States dollars at end of period rates of exchange, and income and expense accounts are translated at the average rates of exchange for the period. Resulting translation adjustments are included in other comprehensive income. Risk Management Activities — The Company does not hold or issue derivative financial instruments for trading purposes. Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. Foreign Currency Hedging — The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions and minimize the foreign currency translation impact on the Company’s foreign operations. While the Company’s risk management objectives and strategies are driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in qualify for hedge accounting and result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of foreign currency derivatives to protect against exposure resulting from transactions in a currency differing from the respective functional currency. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) of the derivatives are recorded in the accompanying Consolidated Statements of Earnings as "Investment and other income (expense)" or as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income, as discussed below. The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months . These instruments may or may not qualify as hedges under the accounting guidance for derivative instruments and hedging activities based upon the intended objective of the contract. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. The amount of hedge ineffectiveness was not material for the fiscal years ended July 31, 2018 , 2017 , and 2016 . The Company has designated a portion of its foreign exchange contracts as cash flow hedges. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and in the cash flow hedge section of the Consolidated Statements of Comprehensive Income, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining portion of its foreign exchange contracts are not designated as hedge transactions, and accordingly, the mark-to-market impact of these derivative contracts is recorded each period in current earnings. The Company also utilizes Euro-denominated debt designated as a hedge instrument to hedge portions of the Company’s net investments in Euro-denominated foreign operations. For net investment hedges that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded as cumulative translation within AOCI and are included in the net investment hedge section of the Consolidated Statements of Comprehensive Income. Any ineffective portions are to be recognized in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. See Note 12 "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. New Accounting Standards — In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-02, "Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income," which allows for reclassification of stranded tax effects on items resulting from the Tax Reform Act from AOCI to retained earnings. The guidance is effective for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt this standard and during the three months ended July 31, 2018, the Company recorded an increase in AOCI and a decrease in retained earnings of $1,869 , which was a result of reduced future tax benefits from the reduction in the U.S. federal corporate tax rate. Refer to Note 3 "Other Comprehensive (Loss) Income" for more information regarding the impact to the individual components of AOCI. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which simplifies and reduces the complexity of the hedge accounting requirements and better aligns an entity's financial reporting for hedging relationships with its risk management activities. The guidance is effective for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. This new guidance will require a modified retrospective adoption approach to existing hedging relationships as of the adoption date. The Company is currently evaluating the impact of this update on its consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component of net benefit cost is eligible for capitalization. This guidance is effective for annual periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Goodwill and Other, Simplifying the Test for Goodwill Impairment," which simplifies the accounting for goodwill impairment. The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. However, early adoption is permitted for any impairment tests performed after January 1, 2017. This guidance will only impact the Company's consolidated financial statements if there is a future impairment of goodwill. In February 2016, the FASB issued ASU 2016-02, "Leases," which replaces the current lease accounting standards. The update requires, among other items, lessees to recognize the assets and liabilities that arise from most leases on the balance sheet. This guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The ASU allows for either a full retrospective or a modified retrospective approach and early adoption is permitted. The Company expects the new lease standard to increase its total assets and liabilities; however, it is evaluating the magnitude of the impact on its consolidated financial statements. The Company has formed a team to implement the new lease standard and has selected a third-party software program to track and store its leases. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach for determining revenue recognition. The new guidance requires revenue recognition when control of the goods or services transfers to the customer, replacing the existing guidance which requires revenue recognition when the risks and rewards transfer to the customer. Under the new guidance, companies should recognize revenues in amounts reflecting the payment to which a company expects to be entitled in exchange for those goods or services. The Company adopted the new revenue standard on August 1, 2018, and assessed all potential impacts of this standard. The Company determined key factors from the five-step process to recognize revenue as prescribed by the new standard that may be applicable to each of the Company's operating businesses that roll up into its two segments. Significant customers and contracts were identified and the Company completed the review of these contracts. The Company's assessment determined certain transactions with customers will require a change in the timing of when revenue and related expense is recognized. The standard allows for either a full retrospective or a modified retrospective adoption approach. The Company has elected the modified retrospective method which will require a cumulative adjustment to retained earnings instead of retrospectively adjusting prior periods. The impact of the cumulative adjustment is a reduction of $2,850 to retained earnings in fiscal 2019. |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2018 | |
Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Divestiture On May 31, 2018, the Company sold Runelandhs Försäljnings AB (“Runelandhs”), a business based in Kalmar, Sweden. Runelandhs is a direct marketer of industrial and office equipment. Its products include lifting, transporting, and warehouse equipment; workbenches and material handling supplies; products for environmental protection; and entrance, reception, and office furnishings. The Runelandhs business was part of the Company’s WPS segment and its earnings were not material. The Company received proceeds of $19,141 , net of cash transferred with the business. The transaction resulted in a pre-tax and after-tax gain of $4,666 , which was included in SG&A expenses on the Consolidated Statements of Earnings for the year ended July 31, 2018. The divestiture of the Runelandhs business was part of the Company’s continued long-term growth strategy to focus the Company’s energies and resources on growth of the Company’s core businesses. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2018 and 2017 , were as follows: IDS WPS Total Balance as of July 31, 2016 $ 384,529 $ 45,342 $ 429,871 Translation adjustments 4,845 2,981 7,826 Realignment of businesses between segments 2,490 (2,490 ) — Balance as of July 31, 2017 $ 391,864 $ 45,833 $ 437,697 Translation adjustments (6,340 ) (1,487 ) (7,827 ) Current year divestiture — (10,055 ) (10,055 ) Balance as of July 31, 2018 $ 385,524 $ 34,291 $ 419,815 Goodwill at July 31, 2018 and 2017 , is net of $118,637 and $209,392 of accumulated impairment losses within the IDS and WPS segments, respectively, for a total of $328,029 . There were no impairment charges recorded during fiscal 2018. The decrease of $17,882 in the carrying amount of goodwill as of July 31, 2018 , compared to July 31, 2017 , was primarily due to the sale of our Runelandhs business within the WPS segment in May 2018 and the effect of currency fluctuations during the fiscal year. The annual impairment testing performed on May 1, 2018 , in accordance with ASC 350, “Intangibles - Goodwill and Other” (“Step One”) indicated that all of the reporting units with remaining goodwill (IDS Americas & Europe, People ID, and WPS Europe) passed Step One of the goodwill impairment test as each had a fair value substantially in excess of its carrying value. Other Intangible Assets Other intangible assets include patents, tradenames, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The net book value of these assets was as follows: July 31, 2018 July 31, 2017 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Amortized other intangible assets: Patents 5 $ 1,448 $ (942 ) $ 506 5 $ 1,358 $ (471 ) $ 887 Tradenames and other 9 4,497 (4,395 ) 102 9 4,528 (4,229 ) 299 Customer relationships 9 55,999 (33,535 ) 22,464 8 60,759 (31,909 ) 28,850 Unamortized other intangible assets: Tradenames N/A 19,516 — 19,516 N/A 23,040 — 23,040 Total $ 81,460 $ (38,872 ) $ 42,588 $ 89,685 $ (36,609 ) $ 53,076 The decrease in the gross carrying amount of other intangible assets as of July 31, 2018, compared to July 31, 2017, was primarily due to the elimination of $7,360 in certain intangible assets related to the sale of the Runelandhs business in the year ended July 31, 2018. The remaining decrease was due to the effect of currency translations during the fiscal year. Amortization expense on intangible assets during the fiscal years ended July 31, 2018 , 2017 , and 2016 was $ 6,433 , $ 7,113 and $ 9,056 , respectively. Amortization expense over each of the next five fiscal years is projected to be $ 5,724 , $ 5,198 , $ 5,157 , $ 5,009 and $ 2,025 for the fiscal years ending July 31, 2019 , 2020 , 2021 , 2022 and 2023 , respectively. |
Other Comprehensive Income Othe
Other Comprehensive Income Other Comprehensive Income (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive (Loss) Income Other comprehensive (loss) income consists of foreign currency translation adjustments, net investment hedge and long-term intercompany loan translation adjustments, net unrealized gains and losses from cash flow hedges, and the unamortized gain on defined-benefit pension plans net of their related tax effects. The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the periods presented: Unrealized gain (loss) on cash flow hedges Gain on postretirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Ending balance, July 31, 2016 $ (857 ) $ 2,236 $ (56,124 ) $ (54,745 ) Other comprehensive income before reclassification 670 867 8,713 10,250 Amounts reclassified from accumulated other comprehensive loss 296 (483 ) — (187 ) Ending balance, July 31, 2017 $ 109 $ 2,620 $ (47,411 ) $ (44,682 ) Other comprehensive income (loss) before reclassification 465 382 (14,242 ) (13,395 ) Amounts reclassified from accumulated other comprehensive loss 383 (576 ) — (193 ) Adoption of accounting standard ASU 2018-02 $ (94 ) $ 876 $ 1,087 1,869 Ending balance, July 31, 2018 $ 863 $ 3,302 $ (60,566 ) $ (56,401 ) The increase in accumulated other comprehensive loss as of July 31, 2018 , compared to July 31, 2017 , was primarily due to the appreciation of the U.S. dollar against certain other currencies during the fiscal year. This was partially offset by the impact of early adopting ASU 2018-02 during the three months ended July 31, 2018, in which stranded tax effects from items related to the Tax Reform Act were reclassified from AOCI to retained earnings. The foreign currency translation adjustments column in the table above includes foreign currency translation, foreign currency translation on intercompany notes and the impact of settlements of net investment hedges, net of tax. Of the $193 reclassified from AOCI, the $383 loss on cash flow hedges was reclassified into cost of products sold, and the $576 net gain on post-retirement plans was reclassified into selling, general, and administrative expense on the Consolidated Statement of Earnings in fiscal 2018 . The following table illustrates the income tax benefit (expense) on the components of other comprehensive (loss) income: 2018 2017 2016 Income tax benefit (expense) related to items of other comprehensive (loss) income: Net investment hedge translation adjustments $ (55 ) $ 1,170 $ (1,804 ) Cash flow hedges (669 ) 705 192 Pension and other post-retirement benefits (64 ) (4 ) 738 Other income tax adjustments (512 ) 550 (2,154 ) Adoption of accounting standard ASU 2018-02 1,869 — — Income tax benefit (expense) related to items of other comprehensive (loss) income $ 569 $ 2,421 $ (3,028 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides postretirement medical benefits (the “Plan”) for eligible regular full and part-time domestic employees (including spouses) who retired prior to January 1, 2016, as outlined by the Plan. The accounting guidance on defined benefit pension and other postretirement plans requires full recognition of the funded status of defined benefit and other postretirement plans on the balance sheet as an asset or a liability. The guidance also requires that unrecognized prior service costs/credits, gains/losses, and transition obligations/assets be recorded in AOCI, thus not changing the income statement recognition rules for such plans. The Plan is unfunded and recorded as a liability in the accompanying Consolidated Balance Sheets as of July 31, 2018 and 2017 . The following table provides a reconciliation of the changes in the Plan’s accumulated benefit obligation during the years ended July 31: 2018 2017 Obligation at beginning of fiscal year $ 3,390 $ 3,800 Interest cost 79 89 Benefit payments (449 ) (499 ) Obligation at end of fiscal year $ 3,020 $ 3,390 As of July 31, 2018 and 2017 , amounts recognized as liabilities in the accompanying Consolidated Balance Sheets consist of: 2018 2017 Current liability $ 377 $ 449 Non-current liability 2,643 2,941 $ 3,020 $ 3,390 As of July 31, 2018 and 2017 , pre-tax amounts recognized in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets consist of net actuarial gains of $4,984 and $5,504 , respectively. Net periodic benefit gain for the Plan for fiscal years ended July 31, 2018 , 2017 , and 2016 , includes the following components: Years Ended July 31, 2018 2017 2016 Net periodic postretirement benefit gain included the following components: Service cost $ — $ — $ 9 Interest cost 79 89 114 Amortization of prior service credit — — (1,035 ) Amortization of net actuarial gain (520 ) (544 ) (646 ) Periodic postretirement benefit gain $ (441 ) $ (455 ) $ (1,558 ) The estimated net actuarial gain that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost over the next fiscal year is $497 . No prior service credit remains due to the plan amendment to eliminate post-retirement benefits for employees retiring after January 1, 2016. The following assumptions were used in accounting for the Plan: 2018 2017 2016 Weighted average discount rate used in determining accumulated postretirement benefit obligation 2.50 % 2.50 % 2.50 % Weighted average discount rate used in determining net periodic benefit cost 2.50 % 2.50 % 3.00 % Assumed health care trend rate used to measure accumulated postretirement benefit obligation at July 31 7.00 % 7.25 % 7.50 % Rate to which cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.50 % 5.50 % Fiscal year the ultimate trend rate is reached 2024 2024 2018 A one-percentage point change in assumed health care cost trend rates would have the following effects on the Plan: One-Percentage Point Increase One-Percentage Point Decrease Effect on future service and interest cost $ 4 $ (5 ) Effect on accumulated postretirement benefit obligation at July 31, 2018 17 (18 ) The following benefit payments are expected to be paid during the years ending July 31: 2019 $ 377 2020 359 2021 339 2022 309 2023 289 2024 through 2028 1,140 The Company sponsors statutory defined benefit pension plans that are primarily unfunded and provide an income benefit upon termination or retirement for certain of its international employees. As of July 31, 2018 and 2017 , the accumulated pension obligation related to these plans was $5,383 and $6,075 , respectively. As of July 31, 2018 and 2017 , pre-tax amounts recognized in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets were losses of $194 and $641 , respectively. The net periodic benefit cost for these plans was $341 , $665 , and $795 during the years ended July 31, 2018 , 2017 and 2016 , respectively. The Company also has two deferred compensation plans, the Executive Deferred Compensation Plan and the Director Deferred Compensation Plan which allow for compensation to be deferred into either the Company's Class A Nonvoting Common Stock or in other investment funds. Neither plan allows funds to be transferred between the Company's Class A Nonvoting Common Stock and the other investment funds. Additionally, the Company has a non-qualified deferred compensation plan, the Brady Restoration Plan, which allows an equivalent benefit to the Matched 401(k) Plan and the Funded Retirement Plan for executives' income exceeding the IRS limits of participation in a qualified 401(k) plan. At July 31, 2018 and 2017 , $14,383 and $14,121 , respectively, of deferred compensation was included in other long-term liabilities in the accompanying Consolidated Balance Sheets. The Company has retirement and profit-sharing plans covering substantially all full-time domestic employees and certain employees of its foreign subsidiaries. Contributions to the plans are determined annually or quarterly, according to the respective plans, based on earnings of the respective companies and employee contributions. Accrued retirement and profit-sharing contributions of $3,844 and $3,327 were included in other current liabilities on the accompanying Consolidated Balance Sheets as of July 31, 2018 and 2017 , respectively. The amounts charged to expense for these retirement and profit sharing plans were $14,395 , $13,750 , and $10,407 during the years ended July 31, 2018 , 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income taxes consists of the following: Years Ended July 31, 2018 2017 2016 United States $ 48,903 $ 43,561 $ 61,349 Other Nations 103,112 83,071 47,996 Total $ 152,015 $ 126,632 $ 109,345 Earnings before income taxes in the United States increased to $48,903 in fiscal 2018 from $43,561 in fiscal 2017 primarily due to increased organic sales and expense management in the U.S. The increase in earnings before income taxes in Other Nations to $103,112 in fiscal 2018 from $83,071 in fiscal 2017 was primarily due to increased organic sales and improved profitability in fiscal 2018 in both the Company's European and Asian-based businesses. The decrease in earnings before income taxes in the United States to $43,561 in fiscal 2017 from $61,349 in fiscal 2016 was primarily due to intercompany royalty transactions that occurred in fiscal 2016 which increased U.S. earnings before income taxes by $21,003 . The increase in earnings before income taxes in Other Nations to $83,071 in fiscal 2017 from $47,996 in fiscal 2016 was primarily due to intercompany royalty transactions that occurred in fiscal 2016 which decreased earnings before income taxes by $21,003 , as well as improved profitability in fiscal 2017 in both the Company's European and Asian-based businesses. Income tax expense consists of the following: Years Ended July 31, 2018 2017 2016 Current income tax expense: United States $ 2,830 $ 15,279 $ 5,048 Other Nations 26,593 23,826 19,929 States (U.S.) 910 1,163 1,348 $ 30,333 $ 40,268 $ 26,325 Deferred income tax (benefit) expense: United States $ 30,267 $ (8,173 ) $ 3,946 Other Nations (1,462 ) (1,329 ) (1,387 ) States (U.S.) 1,817 221 351 $ 30,622 $ (9,281 ) $ 2,910 Total income tax expense $ 60,955 $ 30,987 $ 29,235 On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Reform Act reduces the U.S. federal corporate income tax rate from 35.0% to 21.0% , imposes a one-time tax on deemed repatriated earnings of foreign subsidiaries, eliminates the domestic manufacturing deduction and moves to a partial territorial system by providing a 100% dividend received deduction on certain qualified dividends from foreign subsidiaries. As the Company has a July 31 fiscal year end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal income tax rate of 26.9% for the fiscal year ended July 31, 2018, and 21.0% for subsequent fiscal years. The tax effects of temporary differences are as follows as of July 31, 2018 and 2017 : July 31, 2018 Assets Liabilities Total Inventories $ 3,095 $ (53 ) $ 3,042 Prepaid catalog costs — (978 ) (978 ) Employee benefits 3,772 (91 ) 3,681 Accounts receivable 828 (1 ) 827 Fixed assets 2,959 (4,911 ) (1,952 ) Intangible assets 1,073 (29,630 ) (28,557 ) Deferred and equity-based compensation 10,656 — 10,656 Postretirement benefits 3,280 — 3,280 Tax credit and net operating loss carry-forwards 64,348 — 64,348 Less valuation allowance (56,866 ) — (56,866 ) Other, net 8,548 (8,962 ) (414 ) Total $ 41,693 $ (44,626 ) $ (2,933 ) July 31, 2017 Assets Liabilities Total Inventories $ 4,516 $ (1 ) $ 4,515 Prepaid catalog costs — (1,107 ) (1,107 ) Employee benefits 8,932 — 8,932 Accounts receivable 1,141 (11 ) 1,130 Fixed assets 2,819 (3,884 ) (1,065 ) Intangible assets 1,187 (37,681 ) (36,494 ) Deferred and equity-based compensation 16,743 — 16,743 Postretirement benefits 4,144 — 4,144 Tax credit and net operating loss carry-forwards 70,128 — 70,128 Less valuation allowance (38,563 ) — (38,563 ) Other, net 12,630 (10,798 ) 1,832 Total $ 83,677 $ (53,482 ) $ 30,195 Tax carry-forwards at July 31, 2018 are comprised of: • Foreign net operating loss carry-forwards of $108,540 , of which $88,197 have no expiration date and the remainder of which expire within the next five years . • State net operating loss carry-forwards of $35,231 , which expire from 2022 to 2038 . • Foreign tax credit carry-forwards of $25,115 , which expire from 2021 to 2027 . • State R&D credit carry-forwards of $11,448 , which expire from 2019 to 2033 . The reduction in the U.S. federal income tax rate as a result of the Tax Reform Act requires the Company to remeasure its U.S. deferred tax assets and liabilities to the income tax rate at which the deductible or taxable event is expected to be realized. The Tax Reform Act also changes the statutory U.S. federal tax rate from 35.0% to 26.9% for the entire year ended July 31, 2018. Additionally, the Company established a valuation allowance against its deferred tax assets related to foreign tax credit carryforwards, primarily related to the impact of the Tax Reform Act on the Company's ability to utilize these foreign tax credit carryforwards. The provisional impact of the Tax Reform Act related to the remeasurement of deferred tax assets and liabilities, the impact on the Company’s fiscal 2018 earnings from the reduced tax rate, and the establishment of the valuation allowance discussed above resulted in net income tax expense of $16,761 for the year ended July 31, 2018. The valuation allowance increased by $18,303 during the fiscal year ended July 31, 2018, primarily due to the establishment of a valuation allowance on a significant portion of foreign tax credit carryforwards as a result of the Tax Reform Act. The net increase was partially offset by valuation allowance decreases in China, India, Sweden, Brazil, and South Africa primarily due to the utilization of net operating loss carryforwards that had valuation allowances applied to them. If reversed in future periods, substantially all of the valuation allowance would impact the income tax rate. Rate Reconciliation A reconciliation of the tax computed by applying the statutory U.S. federal income tax rate to earnings from continuing operations before income taxes to the total income tax expense is as follows: Years Ended July 31, 2018 2017 2016 Tax at statutory rate 26.9 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.6 % 1.0 % 0.8 % International rate differential (1.1 )% (6.3 )% 0.4 % Rate variances arising from foreign subsidiary distributions (1) 0.8 % (5.9 )% 0.5 % Foreign tax credit carryforward valuation allowance (2) 14.1 % — % — % Divestiture of business (3) (0.8 )% — % — % Adjustments to tax accruals and reserves (4) 2.2 % 3.6 % (3.7 )% Research and development tax credits and domestic manufacturer’s deduction (2.0 )% (1.8 )% (3.6 )% Deferred tax and other adjustments, net (1.6 )% (1.1 )% (2.7 )% Effective tax rate 40.1 % 24.5 % 26.7 % (1) The year ended July 31, 2017, includes the generation of foreign tax credit carryforwards from cash repatriations that occurred during the fiscal year. (2) The year ended July 31, 2018, includes the establishment of a valuation allowance against foreign tax credit carryforwards as a result of the Tax Reform Act. (3) The year ended July 31, 2018, includes the divestiture of the Company's Runelandhs business based in Sweden. Refer to Note 13 - Divestitures for additional information. (4) The years ended July 31, 2018 and 2017, include increases in current year uncertain tax positions, while the year ended July 31, 2016, includes reductions of uncertain tax positions resulting from the closure of audits and lapses in statutes of limitations. Uncertain Tax Positions The Company follows the guidance in ASC 740, "Income Taxes" regarding uncertain tax positions. The guidance requires application of a more likely than not threshold to the recognition and de-recognition of income tax positions. A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows: Balance at July 31, 2015 $ 21,133 Additions based on tax positions related to the current year 3,093 Additions for tax positions of prior years 1,290 Reductions for tax positions of prior years (9,369 ) Lapse of statute of limitations (344 ) Settlements with tax authorities (456 ) Cumulative Translation Adjustments and other (53 ) Balance as of July 31, 2016 $ 15,294 Additions based on tax positions related to the current year 2,500 Additions for tax positions of prior years 1,124 Reductions for tax positions of prior years (62 ) Lapse of statute of limitations (663 ) Settlements with tax authorities (118 ) Cumulative Translation Adjustments and other 287 Balance as of July 31, 2017 $ 18,362 Additions based on tax positions related to the current year 2,467 Additions for tax positions of prior years 1,586 Reductions for tax positions of prior years (23 ) Lapse of statute of limitations (489 ) Settlements with tax authorities (1,277 ) Cumulative Translation Adjustments and other (196 ) Balance as of July 31, 2018 $ 20,430 The $20,430 of unrecognized tax benefits, if recognized, would affect the Company's effective income tax rate. The Company has classified $13,238 and $11,725 , excluding interest and penalties, of the reserve for uncertain tax positions in Other Liabilities on the Consolidated Balance Sheets as of July 31, 2018 and 2017 , respectively. The Company has classified $7,192 and $6,637 , excluding interest and penalties, as a reduction of long-term deferred income tax assets on the Consolidated Balance Sheets as of July 31, 2018 and 2017 , respectively. Interest expense is recognized on the amount of potentially underpaid taxes associated with the Company's tax positions, beginning in the first period in which interest starts accruing under the respective tax law and continuing until the tax positions are settled. The Company recognized an increase of $556 , an increase of $674 , and an increase of $3 in interest expense during the years ended July 31, 2018 , 2017 , and 2016 , respectively. There was an $83 increase to the reserve for uncertain tax positions for penalties during the year ended July 31, 2018 , an increase of $218 during the year ended July 31, 2017 , and an increase of $66 during the year end July 31, 2016 . These amounts are net of reversals due to reductions for tax positions of prior years, statute of limitations, and settlements. At July 31, 2018 and 2017 , the Company had $2,762 and $2,239 , respectively, accrued for interest on unrecognized tax benefits. Penalties are accrued if the tax position does not meet the minimum statutory threshold to avoid the payment of a penalty. At July 31, 2018 and 2017 , the Company had $3,027 and $2,948 , respectively, accrued for penalties on unrecognized tax benefits. Interest expense and penalties are recorded as a component of income tax expense in the Consolidated Statements of Earnings. The Company estimates that it is reasonably possible that the unrecognized tax benefits may be reduced by $9,686 within 12 months as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or statute expirations. The maximum amount that would be recognized in the Consolidated Statements of Earnings as an income tax benefit is $9,686 during the next twelve months. During the year ended July 31, 2018 , the Company recognized $675 of tax benefits (including interest and penalties) associated with the lapse of statutes of limitations. The Company also recognized $1,742 of tax benefits (including interest and penalties) associated with the reduction of tax positions for prior years due to the closure of certain tax audits. The Company and its subsidiaries file income tax returns in the U.S., various state, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions: Jurisdiction Open Tax Years United States — Federal F’15 — F’18 France F’15 — F’18 Unremitted Earnings As part of the transition to the partial territorial tax system, the Tax Reform Act imposes a one-time tax on the mandatory deemed repatriation of historical earnings of foreign subsidiaries. Companies can claim certain credits for foreign taxes deemed paid on foreign earnings subject to the mandatory deemed repatriation. The Company’s provisional calculations resulted in an income tax charge of $3,327 related to the deemed repatriation of the historical earnings of foreign subsidiaries during the year ended July 31, 2018. Existing foreign tax credit carryforwards were used to fully offset this tax, resulting in no cash payments related to this charge. As a result of the Tax Reform Act, the Company expects that it will repatriate certain historical and future foreign earnings periodically, which in certain jurisdictions may be subject to withholding and income taxes. These additional withholding and income taxes are recorded as a deferred tax liability associated with the basis difference in such jurisdictions. During the year ended July 31, 2018, the Company recorded a provisional income tax expense of $984 related to the recording of a deferred tax liability for future withholding and income taxes on the distribution of foreign earnings. The uncertainty related to the taxation of such withholding and income taxes on distributions under the Tax Reform Act and the finalization of future cash repatriation plans make the deferred tax liability a provisional amount. Provisional Disclosure The Company continues to review the anticipated impacts of the global intangible low taxed income (“GILTI”), foreign derived intangible income ("FDII") and base erosion anti-abuse tax (“BEAT”) enacted under the Tax Reform Act, which are not effective until fiscal year 2019. The consolidated financial statements for the year ended July 31, 2018, do not include a provisional estimate associated with either GILTI, FDII or BEAT. The final enactment impacts of the Tax Reform Act may differ from the above estimates due to changes in interpretation, legislative action to address questions that arise, changes in accounting standards for income taxes or related interpretations in response to the Tax Reform Act, or any updates or changes to information the Company has utilized to develop the estimates, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries. The U.S. Securities and Exchange Commission has issued rules that would allow for a measurement period of up to one year after the enactment date of the Tax Reform Act to finalize the recording of the related tax impacts. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Debt On September 25, 2015, the Company and certain of its subsidiaries entered into an unsecured $300,000 multi-currency revolving loan agreement with a group of six banks. Under this revolving loan agreement, which has a final maturity date of September 25, 2020, the Company has the option to select either a base interest rate (based upon the higher of the federal funds rate plus one-half of 1%, the prime rate of Bank of America plus a margin based on the Company’s consolidated leverage ratio, or the one-month LIBOR rate plus 1%) or a Eurocurrency interest rate (at the LIBOR rate plus a margin based on the Company’s consolidated leverage ratio). At the Company’s option, and subject to certain conditions, the available amount under the revolving loan agreement may be increased from $300,000 up to $450,000 . During fiscal 2018 , the Company repaid $51,941 of its revolving loan agreement and the maximum amount outstanding throughout the year was $57,235 . As of July 31, 2018 , there were no borrowings outstanding on the credit facility. There was $296,957 available for future borrowing under the credit facility, which can be increased to $446,957 at the Company's option, subject to certain conditions. The revolving loan agreement has a final maturity date of September 25, 2020. As such, the borrowing is included in "Long-term obligations" on the Consolidated Balance Sheets. The Company has a multi-currency line of credit in China with capacity of $10,000 . This line of credit supports USD-denominated or CNY-denominated borrowing to fund working capital and operations for the Company's Chinese entities and is due on demand. The borrowings under this facility may be made for a period up to one year from the date of borrowing with interest on the USD-denominated borrowings incurred equal to U.S. dollar LIBOR on the date of borrowing plus a margin based upon duration and on the CNY-denominated borrowings incurred equal to the local China rate based upon duration. There is no ultimate maturity on the facility and it is subject to periodic review and repricing. The Company is not required to comply with any financial covenants as part of this agreement. The maximum amount outstanding on this facility was $3,228 and the Company repaid $3,257 during fiscal 2018 . As of July 31, 2018 , there were no borrowings outstanding on this line of credit in China and there was $10,000 available for future borrowings. Due to the short-term nature of this credit facility, the borrowings are classified as "Notes payable" within current liabilities in the accompanying Consolidated Balance Sheets. On May 13, 2010, the Company completed a private placement of €75.0 million aggregate principal amount of senior unsecured notes to accredited institutional investors. The €75.0 million of senior notes consisted of €30.0 million aggregate principal amount of 3.71% Series 2010-A Senior Notes, which were repaid during fiscal 2017, and €45.0 million aggregate principal amount of 4.24% Series 2010-A Senior Notes, due May 13, 2020, with interest payable on the notes semiannually. This private placement was exempt from the registration requirements of the Securities Act of 1933. The notes have been fully and unconditionally guaranteed on an unsecured basis by the Company’s domestic subsidiaries. During fiscal 2006 and 2007, the Company completed two private placement note issuances totaling $350 million in ten-year fixed rate notes with varying maturity dates to institutional investors at interest rates varying from 5.30% to 5.33% . Under the terms of the notes, the notes were required to be repaid equally over seven years, with interest payable on the notes due semiannually on various dates throughout the year. The private placements were exempt from the registration requirements of the Securities Act of 1933. The notes were not registered for resale and may not be resold absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The notes had certain prepayment penalties for repaying them prior to the maturity date. Under the debt agreement, the Company made scheduled principal payments of $16.4 million and $42.5 million in fiscal years 2017 and 2016, respectively. The final principal payment for the 2006 series of notes was made during fiscal 2016, while the final principal payment for the 2007 series of notes was made during fiscal 2017. The Company’s debt agreements require it to maintain certain financial covenants, including a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.25 to 1.0 ratio (leverage ratio) and the trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of July 31, 2018 , the Company was in compliance with these financial covenants, with the ratio of debt to EBITDA, as defined by the agreements, equal to 0.3 to 1.0 and the interest expense coverage ratio equal to 58.7 to 1.0 . Total debt consists of the following as of July 31: 2018 2017 Euro-denominated notes payable in 2020 at a fixed rate of 4.24% $ 52,618 $ 53,202 USD-denominated borrowing on revolving loan agreement at a weighted average rate of 0.00% and 1.94% as of July 31, 2018 and 2017, respectively — 16,998 EUR-denominated borrowing on revolving loan agreement at a weighted average rate of 0.00% and 0.75% as of July 31, 2018 and 2017, respectively — 34,336 CNY-denominated borrowing on China revolving loan agreement at a weighted average rate of 0.00% and 3.92% as of July 31, 2018 and 2017, respectively — 2,228 USD-denominated borrowing on China revolving loan agreement at a weighted average rate of 0.00% and 2.63% as of July 31, 2018 and 2017, respectively — 1,000 $ 52,618 $ 107,764 Less notes payable — (3,228 ) Total long-term debt $ 52,618 $ 104,536 The Company had outstanding letters of credit of $3,043 and $4,067 at July 31, 2018 and 2017 , respectively. The estimated fair value of the Company’s long-term obligations was $55,707 and $109,303 at July 31, 2018 and 2017 , respectively, as compared to the carrying value of $52,618 and $104,536 at July 31, 2018 and 2017 , respectively. The fair value of the long-term obligations, which was determined using the market approach based upon the interest rates available to the Company for borrowings with similar terms and maturities, was determined to be Level 2 under the fair value hierarchy. Due to the short-term nature and variable interest rate pricing of the Company's revolving debt in China, it is determined that the carrying value of the debt equals the fair value of the debt. Maturities on long-term debt are as follows: Years Ending July 31, 2019 $ — 2020 52,618 Total $ 52,618 |
Stockholder's Investments
Stockholder's Investments | 12 Months Ended |
Jul. 31, 2018 | |
Equity [Abstract] | |
Stockholder's Investments | Stockholders' Investment Information as to the Company’s capital stock at July 31, 2018 and 2017 is as follows: July 31, 2018 July 31, 2017 Shares Authorized Shares Issued (thousands) Amount Shares Authorized Shares Issued (thousands) Amount Preferred Stock, $.01 par value 5,000,000 5,000,000 Cumulative Preferred Stock: 6% Cumulative 5,000 5,000 1972 Series 10,000 10,000 1979 Series 30,000 30,000 Common Stock, $.01 par value: Class A Nonvoting 100,000,000 51,261,487 $ 513 100,000,000 51,261,487 $ 513 Class B Voting 10,000,000 3,538,628 35 10,000,000 3,538,628 35 $ 548 $ 548 Before any dividend may be paid on the Class B Common Stock, holders of the Class A Common Stock are entitled to receive an annual, noncumulative cash dividend of $0.01665 per share. Thereafter, any further dividend in that fiscal year must be paid on each share of Class A Common Stock and Class B Common Stock on an equal basis. Other than as required by law, holders of the Class A Common Stock are not entitled to any vote on corporate matters, unless, in each of the three preceding fiscal years, the $.01665 preferential dividend described above has not been paid in full. Holders of the Class A Common Stock are entitled to one vote per share for the entire fiscal year immediately following the third consecutive fiscal year in which the preferential dividend is not paid in full. Holders of Class B Common Stock are entitled to one vote per share for the election of directors and for all other purposes. Upon liquidation, dissolution or winding up of the Company, and after distribution of any amounts due to holders of Preferred Stock, if any, holders of the Class A Common Stock are entitled to receive the sum of $0.835 per share before any payment or distribution to holders of the Class B Common Stock. Thereafter, holders of the Class B Common Stock are entitled to receive a payment or distribution of $0.835 per share. Thereafter, holders of the Class A Common Stock and Class B Common Stock share equally in all payments or distributions upon liquidation, dissolution or winding up of the Company. The preferences in dividends and liquidation rights of the Class A Common Stock over the Class B Common Stock will terminate at any time that the voting rights of Class A Common Stock and Class B Common Stock become equal. The following is a summary of other activity in stockholders’ investment for the fiscal years ended July 31, 2018 , 2017 , and 2016 : Deferred Compensation Shares Held in Rabbi Trust, at cost Total Balances at July 31, 2015 $ 5,684 $ (8,748 ) $ (3,064 ) Shares at July 31, 2015 252,261 362,025 Sale of shares at cost $ (1,238 ) $ 1,278 $ 40 Purchase of shares at cost 178 (1,017 ) (839 ) Balances at July 31, 2016 $ 4,624 $ (8,487 ) $ (3,863 ) Shares at July 31, 2016 201,418 347,081 Sale of shares at cost $ (1,247 ) $ 1,288 $ 41 Purchase of shares at cost 315 (925 ) (610 ) Effect of plan amendment 4,432 — 4,432 Balances at July 31, 2017 $ 8,124 $ (8,124 ) $ — Shares at July 31, 2017 314,082 314,082 Sale of shares at cost $ (977 ) $ 977 $ — Purchase of shares at cost 1,075 (1,075 ) — Balances at July 31, 2018 $ 8,222 $ (8,222 ) $ — Shares at July 31, 2018 299,916 299,916 Deferred Compensation Plans The Company has two deferred compensation plans, the Executive Deferred Compensation Plan and the Director Deferred Compensation Plan that allow for compensation to be deferred into either the Company's Class A Nonvoting Common Stock or in other investment funds. Both the Director Deferred Compensation Plan and the Executive Deferred Compensation Plan disallow transfers from other investment funds into the Company's Class A Nonvoting Common Stock. At July 31, 2018 , the deferred compensation balance in stockholders’ investment represents the investment at the original cost of shares held in the Company’s Class A Nonvoting Common Stock for the deferred compensation plans. The balance of shares held in the Rabbi Trust represents the investment in the Company’s Class A Nonvoting Common Stock at the original cost of all the Company’s Class A Nonvoting Common Stock held in deferred compensation plans. Incentive Stock Plans The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock units ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. Certain awards may be subject to pre-established performance goals. As of July 31, 2018 , the Company has reserved 2,955,586 shares of Class A Nonvoting Common Stock for outstanding stock options, RSUs and restricted shares and 4,049,563 shares of Class A Nonvoting Common Stock remain for future issuance of stock options, RSUs and restricted and unrestricted shares under the active plans. The Company uses treasury stock or will issue new Class A Nonvoting Common Stock to deliver shares under these plans. Total stock-based compensation expense recognized by the Company during the years ended July 31, 2018 , 2017 , and 2016 , was $9,980 ( $7,485 net of taxes), $9,495 ( $5,887 net of taxes), and $8,154 ( $5,056 net of taxes), respectively. As of July 31, 2018 , total unrecognized compensation cost related to share-based compensation awards that are expected to vest was $10,898 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 1.6 years . Stock Options The stock options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and generally vest ratably over a three -year period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. Options issued under the plan, referred to herein as “time-based” options, generally expire 10 years from the date of grant. The Company has estimated the fair value of its time-based stock option awards granted during the years ended July 31, 2018 , 2017 , and 2016 , using the Black-Scholes option valuation model. The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table: Black-Scholes Option Valuation Assumptions 2018 2017 2016 Expected term (in years) 6.07 6.11 6.11 Expected volatility 28.19 % 29.55 % 29.95 % Expected dividend yield 2.72 % 2.70 % 2.59 % Risk-free interest rate 1.96 % 1.26 % 1.64 % Weighted-average market value of underlying stock at grant date $ 36.85 $ 35.14 $ 20.02 Weighted-average exercise price $ 36.85 $ 35.14 $ 20.02 Weighted-average fair value of options granted during the period $ 7.96 $ 7.56 $ 4.58 The following is a summary of stock option activity for the fiscal year ended July 31, 2018 : Option Price Options Outstanding Weighted Average Exercise Price Balance as of July 31, 2017 $ 19.96 — $38.83 2,879,801 $ 27.40 Options granted 36.85 — 36.85 364,046 36.85 Options exercised 19.96 — 38.31 (622,916 ) 28.84 Options cancelled 19.96 — 38.31 (116,298 ) 31.42 Balance as of July 31, 2018 $ 19.96 — $38.83 2,504,633 $ 28.23 The total fair value of options vested during the fiscal years ended July 31, 2018 , 2017 , and 2016 , was $3,006 , $2,911 , and $3,203 , respectively. The total intrinsic value of options exercised during the fiscal years ended July 31, 2018 , 2017 , and 2016 , was $6,208 , $7,901 , and $811 , respectively. There were 1,722,229 , 1,859,959 , and 2,488,527 options exercisable with a weighted average exercise price of $26.82 , $28.20 , and $30.18 at July 31, 2018 , 2017 , and 2016 , respectively. The cash received from the exercise of stock options during the fiscal years ended July 31, 2018 , 2017 , and 2016 , was $12,099 , $19,728 , and $5,246 , respectively. The tax benefit on options exercised during the fiscal years ended July 31, 2018 , 2017 , and 2016 , was $1,893 , $3,002 , and $308 , respectively. The following table summarizes information about stock options outstanding at July 31, 2018 : Options Outstanding Options Outstanding and Exercisable Range of Exercise Prices Number of Shares Outstanding at July 31, 2018 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Shares Exercisable at July 31, 2018 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $19.96 - $26.99 846,353 6.7 $ 20.84 611,735 6.5 $ 21.16 $27.00 - $32.99 978,233 3.3 29.24 977,506 3.3 29.24 $33.00 - $38.83 680,047 8.4 35.97 132,988 7.2 35.13 Total 2,504,633 5.8 $ 28.23 1,722,229 4.7 $ 26.82 As of July 31, 2018 , the aggregate intrinsic value (defined as the amount by which the fair value of the underlying stock exceeds the exercise price of an option) of options outstanding and the options exercisable was $24,033 and $18,945 , respectively. Restricted Shares and RSUs Restricted and unrestricted shares and RSUs issued under the plan have a grant date fair value equal to the fair market value of the underlying stock at the date of grant. Shares issued under the plan are referred to herein as either "time-based" or "performance-based" restricted shares and RSUs. The time-based RSUs issued under the plan generally vest ratably over a three -year period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. The performance-based RSUs granted under the plan vest at the end of a three-year service period provided specified Company financial performance metrics are met. The following tables summarize the RSU and restricted share activity for the fiscal year ended July 31, 2018 : Time-Based RSUs and Restricted Shares Shares Weighted Average Grant Date Fair Value Balance as of July 31, 2017 517,108 $ 25.61 New grants 94,457 36.80 Vested (219,389 ) 24.76 Forfeited (49,320 ) 26.94 Balance as of July 31, 2018 342,856 $ 29.05 The time-based RSUs granted during the fiscal year ended July 31, 2017 , had a weighted-average grant-date fair value of $35.15 . The total fair value of time-based RSU's vested during the years ended July 31, 2018 and 2017 , was $8,237 and $6,512 , respectively. Performance-Based RSUs Shares Weighted Average Grant Date Balance as of July 31, 2017 58,206 $ 32.03 New grants 56,290 33.12 Vested — — Forfeited (6,399 ) 32.57 Balance as of July 31, 2018 108,097 $ 32.57 The performance-based RSUs granted during the year ended July 31, 2017 , had a weighted-average grant-date fair value of $32.03 . The aggregate intrinsic value of unvested time-based and performance-based RSU's outstanding at July 31, 2018 and 2017 , and expected to vest, was $17,249 and $19,100 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized and managed on a global basis within three operating segments, Identification Solutions ("IDS"), Workplace Safety ("WPS"), and People Identification ("People ID"), which aggregate into two reportable segments that are organized around businesses with consistent products and services: IDS and WPS. The Identification Solutions and People ID operating segments aggregate into the IDS reporting segment, while the WPS reporting segment is comprised solely of the Workplace Safety operating segment. The Company's internal measure of segment profit and loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing performance includes certain administrative costs, such as the cost of finance, information technology, human resources, and certain other administrative costs. However, interest expense, investment and other income (expense), income tax expense, and certain corporate administrative expenses are excluded when evaluating segment performance. Following is a summary of segment information for the years ended July 31, 2018 , 2017 and 2016 : 2018 2017 2016 Sales to External Customers: ID Solutions $ 846,087 $ 800,392 $ 795,511 WPS 327,764 312,924 325,114 Total Company $ 1,173,851 $ 1,113,316 $ 1,120,625 Depreciation & Amortization: ID Solutions $ 22,075 $ 23,092 $ 27,285 WPS 3,367 4,211 5,147 Total Company $ 25,442 $ 27,303 $ 32,432 Segment Profit: ID Solutions $ 143,411 $ 130,572 $ 112,276 WPS 31,712 25,554 30,792 Total Company $ 175,123 $ 156,126 $ 143,068 Assets: ID Solutions $ 737,174 $ 761,448 $ 748,408 WPS 138,329 154,827 154,321 Corporate 181,428 133,948 141,235 Total Company $ 1,056,931 $ 1,050,223 $ 1,043,964 Expenditures for property, plant & equipment: ID Solutions $ 17,283 $ 12,347 $ 11,640 WPS 4,494 2,820 5,500 Total Company $ 21,777 $ 15,167 $ 17,140 Following is a reconciliation of segment profit to earnings before income taxes for the years ended July 31, 2018 , 2017 and 2016 : Years Ended July 31, 2018 2017 2016 Total segment profit $ 175,123 $ 156,126 $ 143,068 Unallocated costs: Administrative costs 27,093 25,111 25,190 Gain on sale of business (1) (4,666 ) — — Investment and other (income) expense (2,487 ) (1,121 ) 709 Interest expense 3,168 5,504 7,824 Earnings before income taxes $ 152,015 $ 126,632 $ 109,345 (1) Gain on sale of business relates to the WPS segment during the year ended July 31, 2018. Revenues* Years Ended July 31, Long-Lived Assets** As of July 31, 2018 2017 2016 2018 2017 2016 Geographic information: United States $ 663,935 $ 651,294 $ 663,511 $ 366,638 $ 367,418 $ 376,045 Other 573,652 521,791 519,579 193,710 221,458 216,076 Eliminations (63,736 ) (59,769 ) (62,465 ) — — — Consolidated total $ 1,173,851 $ 1,113,316 $ 1,120,625 $ 560,348 $ 588,876 $ 592,121 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant, and equipment, other intangible assets and goodwill. Segment Information The Company is organized and managed on a global basis within three operating segments, Identification Solutions ("IDS"), Workplace Safety ("WPS"), and People Identification ("People ID"), which aggregate into two reportable segments that are organized around businesses with consistent products and services: IDS and WPS. The Identification Solutions and People ID operating segments aggregate into the IDS reporting segment, while the WPS reporting segment is comprised solely of the Workplace Safety operating segment. The Company's internal measure of segment profit and loss reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing performance includes certain administrative costs, such as the cost of finance, information technology, human resources, and certain other administrative costs. However, interest expense, investment and other income (expense), income tax expense, and certain corporate administrative expenses are excluded when evaluating segment performance. Following is a summary of segment information for the years ended July 31, 2018 , 2017 and 2016 : 2018 2017 2016 Sales to External Customers: ID Solutions $ 846,087 $ 800,392 $ 795,511 WPS 327,764 312,924 325,114 Total Company $ 1,173,851 $ 1,113,316 $ 1,120,625 Depreciation & Amortization: ID Solutions $ 22,075 $ 23,092 $ 27,285 WPS 3,367 4,211 5,147 Total Company $ 25,442 $ 27,303 $ 32,432 Segment Profit: ID Solutions $ 143,411 $ 130,572 $ 112,276 WPS 31,712 25,554 30,792 Total Company $ 175,123 $ 156,126 $ 143,068 Assets: ID Solutions $ 737,174 $ 761,448 $ 748,408 WPS 138,329 154,827 154,321 Corporate 181,428 133,948 141,235 Total Company $ 1,056,931 $ 1,050,223 $ 1,043,964 Expenditures for property, plant & equipment: ID Solutions $ 17,283 $ 12,347 $ 11,640 WPS 4,494 2,820 5,500 Total Company $ 21,777 $ 15,167 $ 17,140 Following is a reconciliation of segment profit to earnings before income taxes for the years ended July 31, 2018 , 2017 and 2016 : Years Ended July 31, 2018 2017 2016 Total segment profit $ 175,123 $ 156,126 $ 143,068 Unallocated costs: Administrative costs 27,093 25,111 25,190 Gain on sale of business (1) (4,666 ) — — Investment and other (income) expense (2,487 ) (1,121 ) 709 Interest expense 3,168 5,504 7,824 Earnings before income taxes $ 152,015 $ 126,632 $ 109,345 (1) Gain on sale of business relates to the WPS segment during the year ended July 31, 2018. Revenues* Years Ended July 31, Long-Lived Assets** As of July 31, 2018 2017 2016 2018 2017 2016 Geographic information: United States $ 663,935 $ 651,294 $ 663,511 $ 366,638 $ 367,418 $ 376,045 Other 573,652 521,791 519,579 193,710 221,458 216,076 Eliminations (63,736 ) (59,769 ) (62,465 ) — — — Consolidated total $ 1,173,851 $ 1,113,316 $ 1,120,625 $ 560,348 $ 588,876 $ 592,121 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant, and equipment, other intangible assets and goodwill. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings per Common Share | Net Earnings per Common Share Basic net earnings per common share is computed by dividing net earnings (after deducting the applicable preferential Class A Common Stock dividends) by the weighted average Common Shares outstanding of 51,677 for fiscal 2018 , 51,056 for fiscal 2017 , and 50,541 for fiscal 2016 . The Company utilizes the two-class method to calculate earnings per share. Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows: Years ended July 31, 2018 2017 2016 Numerator (in thousands): Earnings (Numerator for basic and diluted earnings per Class A Nonvoting Common Share) $ 91,060 $ 95,645 $ 80,110 Less: Preferential dividends (799 ) (788 ) (783 ) Preferential dividends on dilutive stock options (14 ) (14 ) (1 ) Numerator for basic and diluted earnings per Class B Voting Common Share $ 90,247 $ 94,843 $ 79,326 Denominator (in thousands): Denominator for basic earnings per share for both Class A and Class B 51,677 51,056 50,541 Plus: Effect of dilutive equity awards 847 900 228 Denominator for diluted earnings per share for both Class A and Class B 52,524 51,956 50,769 Net earnings per Class A Nonvoting Common Share: Basic $ 1.76 $ 1.87 $ 1.59 Diluted $ 1.73 $ 1.84 $ 1.58 Net earnings per Class B Voting Common Share: Basic $ 1.75 $ 1.86 $ 1.57 Diluted $ 1.72 $ 1.83 $ 1.56 Options to purchase 751,200 , 669,036 , and 3,172,755 shares of Class A Nonvoting Common Stock for the fiscal years ended July 31, 2018 , 2017 , and 2016 , respectively, were not included in the computation of diluted net earnings per share as the impact of the inclusion of the options would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has entered into various non-cancellable operating lease agreements. Rental expense charged to operating expenses on a straight-line basis was $15,938 , $17,495 , and $17,253 for the years ended July 31, 2018 , 2017 , and 2016 , respectively. Future minimum lease payments required under such leases in effect at July 31, 2018 , were as follows: Years ending July 31, 2019 $ 14,826 2020 10,270 2021 8,456 2022 7,419 2023 6,192 Thereafter 4,047 $ 51,210 In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may ultimately result from lawsuits are not expected to have a material effect on the consolidated financial statements of the Company. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company follows the guidance in ASC 820, "Fair Value Measurements and Disclosures" as it relates to its financial and non-financial assets and liabilities. The accounting guidance applies to other accounting pronouncements that require or permit fair value measurements, defines fair value based upon an exit price model, establishes a framework for measuring fair value, and expands the applicable disclosure requirements. The accounting guidance indicates, among other things, that a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The accounting guidance on fair value measurements establishes a fair market value hierarchy for the pricing inputs used to measure fair market value. The Company’s assets and liabilities measured at fair market value are classified in one of the following categories: Level 1 — Assets or liabilities for which fair value is based on unadjusted quoted prices in active markets for identical instruments that are accessible as of the measurement date. Level 2 — Assets or liabilities for which fair value is based on other significant pricing inputs that are either directly or indirectly observable. Level 3 — Assets or liabilities for which fair value is based on significant unobservable pricing inputs to the extent little or no market data is available, which result in the use of management's own assumptions. The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2018 and July 31, 2017 , according to the valuation techniques the Company used to determine their fair values. Inputs Considered As Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Fair Values Balance Sheet Classifications July 31, 2017 Trading securities $ 13,994 $ — $ 13,994 Other assets Foreign exchange contracts — 1,354 1,354 Prepaid expenses and other current assets Total Assets $ 13,994 $ 1,354 $ 15,348 Foreign exchange contracts $ — $ 1,577 $ 1,577 Other current liabilities Total Liabilities $ — $ 1,577 $ 1,577 July 31, 2018 Trading securities $ 14,383 $ — $ 14,383 Other assets Foreign exchange contracts — 1,077 1,077 Prepaid expenses and other current assets Total Assets $ 14,383 $ 1,077 $ 15,460 Foreign exchange contracts $ — $ 3 $ 3 Other current liabilities Total Liabilities $ — $ 3 $ 3 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Trading securities: The Company’s deferred compensation investments consist of investments in mutual funds. These investments were classified as Level 1 as the shares of these investments trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. Foreign exchange contracts: The Company’s foreign exchange contracts were classified as Level 2, as the fair value was based on the present value of the future cash flows using external models that use observable inputs, such as interest rates, yield curves and foreign exchange rates. See Note 12, “Derivatives and Hedging Activities” for additional information. There have been no transfers of assets or liabilities between the fair value hierarchy levels, outlined above, during the fiscal years ended July 31, 2018 and July 31, 2017 . The Company’s financial instruments, other than those presented in the disclosures above, include cash and cash equivalents, accounts receivable, notes payable, accounts payable, accrued liabilities and short-term and long-term debt. The fair values of cash and cash equivalents, accounts receivable, notes payable, accounts payable, and accrued liabilities approximated carrying values because of the short-term nature of these instruments. See Note 6 for information regarding the fair value of the Company's short-term and long-term debt. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company utilizes forward foreign exchange contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months , which qualify as cash flow hedges or net investment hedges under the accounting guidance for derivative instruments and hedging activities. The primary objective of the Company’s foreign currency exchange risk management program is to minimize the impact of currency movements due to transactions in other than the respective subsidiaries’ functional currency and to minimize the impact of currency movements on the Company’s net investment denominated in a currency other than the U.S. dollar. To achieve this objective, the Company hedges a portion of known exposures using forward foreign exchange contracts. As of July 31, 2018 and 2017 , the notional amount of outstanding forward foreign exchange contracts was $ 32,667 and $ 81,195 , respectively. The Company hedges a portion of known exposures using forward foreign exchange contracts. Main exposures are related to transactions denominated in the British Pound, the Euro, Canadian dollar, Australian dollar, Mexican Peso, Chinese Yuan, Malaysian Ringgit and Singapore dollar. Generally, these risk management transactions will involve the use of foreign currency derivatives to minimize the impact of currency movements on non-functional currency transactions. Hedge effectiveness is determined by how closely the changes in fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. Cash Flow Hedges The Company has designated a portion of its forward foreign exchange contracts as cash flow hedges and recorded these contracts at fair value in the accompanying Consolidated Balance Sheets. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. At July 31, 2018 and July 31, 2017 , unrealized gain of $ 1,017 and loss of $ 500 have been included in OCI, respectively. These balances are expected to be reclassified from OCI to earnings during the next twelve months when the hedged transactions impact earnings. For the years ended July 31, 2018 , 2017 , and 2016 , the Company reclassified losses of $551 , $486 , and $199 from OCI into cost of goods sold, respectively. As of July 31, 2018 and 2017 , the notional amount of outstanding forward foreign exchange contracts designated as cash flow hedges was $27,150 and $30,016 , respectively. Net Investment Hedges The Company has also designated certain third party-foreign currency denominated debt instruments as net investment hedges. On May 13, 2010, the Company completed the private placement of €75.0 million aggregate principal amount of senior unsecured notes to accredited institutional investors. The €75.0 million of senior notes consisted of €30.0 million aggregate principal amount of 3.71% Series 2010-A Senior Notes, which were repaid during fiscal 2017, and €45.0 million aggregate principal amount of 4.24% Series 2010-A Senior Notes, due May 13, 2020. This Euro-denominated debt obligation was designated as a net investment hedge to selectively hedge portions of the Company's net investment in European foreign operations. As of July 31, 2018 and 2017 , the cumulative balance recognized in accumulated other comprehensive income were gains of $9,961 and $9,348 , respectively, on the Euro-denominated debt obligations. The changes recognized in other comprehensive income during the years ended July 31, 2018 , 2017 and 2016 , were gains of $612 , losses of $1,792 , and $1,372 , respectively, on the Euro-denominated debt obligations. The Company’s foreign denominated debt obligations are valued under a market approach using publicized spot prices. Non-Designated Hedges During the fiscal years ended July 31, 2018 , 2017 , and 2016 , the Company recognized gains of $24 , losses of $2,508 , and gains of $2,162 , respectively, in “Investment and other income (expense)” in the accompanying Consolidated Statements of Earnings related to non-designated hedges. Fair values of derivative and hedging instruments in the accompanying Consolidated Balance Sheets were as follows: Asset Derivatives Liability Derivatives July 31, 2018 July 31, 2017 July 31, 2018 July 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Prepaid expenses and other current assets $ 1,076 Prepaid expenses and other current assets $ 1,067 Other current liabilities $ — Other current liabilities $ 1,569 Net investment hedges Foreign currency denominated debt Prepaid expenses and other current assets $ — Prepaid expenses and other current assets $ — Long term obligations, less current maturities $ 52,668 Long term obligations, less current maturities $ 53,280 Total derivatives designated as hedging instruments $ 1,076 $ 1,067 $ 52,668 $ 54,849 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 1 Prepaid expenses and other current assets $ 287 Other current liabilities $ 3 Other current liabilities $ 7 Total derivatives not designated as hedging instruments $ 1 $ 287 $ 3 $ 7 |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | Unaudited Quarterly Financial Information Quarters First Second Third Fourth Total Fiscal 2017 Net sales $ 280,176 $ 268,001 $ 275,927 $ 289,212 $ 1,113,316 Gross margin 140,358 134,158 139,909 143,867 558,292 Operating income 33,208 29,962 31,550 36,295 131,015 Net earnings 22,553 25,297 22,553 25,242 95,645 Net earnings per Class A Nonvoting Common Share: Basic * $ 0.45 $ 0.50 $ 0.44 $ 0.49 $ 1.87 Diluted $ 0.44 $ 0.49 $ 0.43 $ 0.48 $ 1.84 Fiscal 2018 Net sales $ 290,151 $ 287,780 $ 298,421 $ 297,499 $ 1,173,851 Gross margin 146,065 143,692 151,082 147,452 588,291 Operating income 35,411 34,796 37,709 44,780 152,696 Net earnings 25,836 4,273 26,000 34,951 91,060 Net earnings per Class A Nonvoting Common Share: Basic * $ 0.50 $ 0.08 $ 0.50 $ 0.67 $ 1.76 Diluted * $ 0.49 $ 0.08 $ 0.49 $ 0.66 $ 1.73 * The sum of the quarters does not equal the year-to-date total for fiscal 2017 or 2018 due to the quarterly changes in weighted-average shares outstanding. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Notes) | 12 Months Ended |
Jul. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On September 12, 2018 , the Company announced an increase in the annual dividend to shareholders of the Company's Class A Common Stock, from $0.83 to $0.85 per share. A quarterly dividend of $0.2125 will be paid on October 31, 2018 , to shareholders of record at the close of business on October 10, 2018 . This dividend represents an increase of 2.4% and is the 33rd consecutive annual increase in dividends. |
Schedule II Valuation of Qualif
Schedule II Valuation of Qualifying Accounts | 12 Months Ended |
Jul. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Year ended July 31, Description 2018 2017 2016 (Dollars in thousands) Valuation accounts deducted in balance sheet from assets to which they apply — Accounts receivable — allowance for doubtful accounts: Balances at beginning of period $ 4,629 $ 5,144 $ 3,585 Additions — Charged to expense 752 732 1,904 Deductions — Bad debts written off, net of recoveries (910 ) (1,247 ) (345 ) Balances at end of period $ 4,471 $ 4,629 $ 5,144 Inventory — Reserve for slow-moving inventory: Balances at beginning of period $ 14,322 $ 15,083 $ 13,269 Additions — Charged to expense 2,797 4,608 4,950 Deductions — Inventory write-offs (4,537 ) (5,369 ) (3,136 ) Balances at end of period $ 12,582 $ 14,322 $ 15,083 Valuation allowances against deferred tax assets: Balances at beginning of period $ 38,563 $ 37,992 $ 39,922 Additions during year 24,184 2,004 2,614 Deductions — Valuation allowances reversed/utilized (5,881 ) (1,433 ) (4,544 ) Balances at end of period $ 56,866 $ 38,563 $ 37,992 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Nature of Operations — Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized, and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a world leader in many of its markets. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Brady Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments — The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, notes payable, accounts payable, accrued liabilities and short-term and long-term debt) is a reasonable estimate of the fair value of these instruments due to their short-term nature. See Note 6 for more information regarding the fair value of long-term debt and Note 11 for fair value measurements. Cash Equivalents — The Company considers all highly-liquid investments with original maturities of three months or less when acquired to be cash equivalents, which are recorded at cost. Accounts Receivables — Accounts receivables are stated net of allowances for doubtful accounts of $4,471 and $4,629 as of July 31, 2018 and 2017 , respectively. No single customer comprised more than 10% of the Company’s consolidated net sales in fiscal 2018 , 2017 , or 2016 , or 10% of the Company’s consolidated accounts receivable as of July 31, 2018 or 2017 . Specific customer provisions are made during review of significant outstanding amounts, in which customer creditworthiness and current economic trends may indicate that collection is doubtful. In addition, provisions are made for the remainder of accounts receivable based upon the age of the accounts receivable and the Company’s historical collection experience. Inventories — Inventories are stated at the lower of cost or market. Cost has been determined using the last-in, first-out (“LIFO”) method for certain inventories in the U.S. ( 15.0% of total inventories at July 31, 2018 , and 13.5% of total inventories at July 31, 2017 ) and the first-in, first-out (“FIFO”) or average cost methods for other inventories. Had all inventories been accounted for on a FIFO basis instead of on a LIFO basis, the carrying value of inventories would have increased by $7,015 and $6,807 as of July 31, 2018 and 2017 , respectively. Goodwill — Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. The fair value represents the amount at which a reporting unit could be bought or sold in a current transaction between market participants on an arms-length basis. In estimating the fair value, the Company utilizes a discounted cash flow model and market multiples approach. The estimated fair value is compared with the carrying amount of the reporting unit, including goodwill. The annual impairment testing performed on May 1, 2018 , in accordance with ASC 350, "Intangibles - Goodwill and Other" ("Step One") indicated that all reporting units with remaining goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recorded during the year ended July 31, 2018 . Long-Lived and Other Intangible Assets — The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line basis, over the estimated periods benefited. Intangible assets with indefinite useful lives as well as goodwill are not subject to amortization. These assets are assessed for impairment annually or more frequently as deemed necessary. The Company evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived and other finite-lived intangible assets may warrant revision or that the remaining balance of an asset may not be recoverable. If impairment is determined to exist, any related impairment loss is calculated by comparing the fair value of the asset to its carrying value. In fiscal 2018 , long-lived and other intangible assets were analyzed for potential impairment. As a result of the analysis, no material impairment charges were recorded. Refer to Note 2, "Goodwill and Other Intangible Assets" for further information. Property, Plant, and Equipment — Property, plant, and equipment are recorded at cost. The cost of buildings and improvements, computer systems, and machinery and equipment are depreciated over their estimated useful lives using primarily the straight-line method for financial reporting purposes. The estimated useful lives range from 3 to 33 years as shown below. Asset Category Range of Useful Lives Buildings & Improvements 10 to 33 Years Computer Systems 5 Years Machinery & Equipment 3 to 10 Years Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Upon disposal, assets and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds from disposal, is charged to operations. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. Depreciation expense was $19,009 , $20,190 , and $23,375 for the years ended July 31, 2018 , 2017 and 2016 , respectively. Catalog Costs and Related Amortization — The Company accumulates all direct costs incurred, net of vendor cooperative advertising payments, in the development, production, and circulation of its catalogs on its balance sheet until such time as the related catalog is mailed. The catalog costs are subsequently amortized into selling, general, and administrative expense over the expected sales realization cycle, which is one year or less. Consequently, any difference between the estimated and actual revenue stream for a particular catalog and the related impact on amortization expense is realized within a period of one year or less. The estimate of the expected sales realization cycle for a particular catalog is based on the Company’s historical sales experience with similar catalogs, and an assessment of prevailing economic conditions and various competitive factors. The Company tracks subsequent sales realization, reassesses the marketplace, and compares its findings to the previous estimate, and adjusts the amortization of future catalogs, if necessary. At July 31, 2018 and 2017 , $6,154 and $7,299 , respectively, of prepaid catalog costs were included in prepaid expenses and other current assets. Revenue Recognition — Revenue is recognized when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, most of which occur upon shipment of goods to customers. The majority of the Company’s revenue relates to the sale of inventory to customers, and revenue is recognized when title and the risks and rewards of ownership pass to the customer. Given the nature of the Company’s business and the applicable rules guiding revenue recognition, the Company’s revenue recognition practices do not contain estimates that materially affect the results of operations, with the exception of estimated returns and credit memos. The Company provides for an allowance for estimated product returns and credit memos which is recognized as a deduction from net sales at the time of the sale. As of July 31, 2018 and 2017 , the Company had a reserve for estimated product returns and credit memos of $4,546 and $3,873 , respectively. Sales Incentives — The Company accounts for cash consideration (such as sales incentives and cash discounts) given to its customers or resellers as a reduction of revenue rather than an operating expense. Sales incentives for the years ended July 31, 2018 , 2017 , and 2016 were $40,671 , $37,134 , and $36,084 , respectively. Shipping and Handling Fees and Costs — Amounts billed to a customer in a sale transaction related to shipping and handling fees are reported as net sales and the related costs incurred for shipping and handling are reported as cost of goods sold. Advertising Costs — Advertising costs are expensed as incurred, except catalog and mailing costs as outlined previously. Advertising expense for the years ended July 31, 2018 , 2017 , and 2016 was $67,429 , $68,268 , and $74,204 , respectively. Stock-Based Compensation — The Company has an incentive stock plan under which the Board of Directors may grant nonqualified stock options to purchase shares of Class A Nonvoting Common Stock, restricted stock units ("RSUs"), or restricted and unrestricted shares of Class A Nonvoting Common Stock to employees and non-employee directors. Certain awards may be subject to pre-established performance goals. The options issued under the plan have an exercise price equal to the fair market value of the underlying stock at the date of grant and generally vest over a three-year service period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. Options issued under the plan, referred to herein as “time-based” stock options, generally expire 10 years from the date of grant. Restricted and unrestricted shares and RSUs issued under the plan have a grant date fair value equal to the fair market value of the underlying stock at the date of grant. Shares issued under the plan are referred to herein as either "time-based" or "performance-based" restricted shares and RSUs. The time-based RSUs granted under the plan generally vest over a three-year service period, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. The performance-based RSUs granted under the plan vest at the end of a three-year service period provided specified Company financial performance metrics are met. In accordance with ASC 718 "Compensation - Stock Compensation," the Company measures and recognizes the compensation expense for all share-based awards made to employees and directors based on estimated grant-date fair values. The Black-Scholes option valuation model is used to determine the fair value of stock option awards on the date of grant. The Company recognizes the compensation cost of all share-based awards at the time it is deemed probable the award will vest. This cost is recognized on a straight-line basis over the vesting period of the award. If it is determined that it is unlikely the award will vest, the expense recognized to date for the award is reversed in the period in which this is evident and the remaining expense is not recorded. The Black-Scholes model requires the use of assumptions which determine the fair value of stock-based awards. The Company uses historical data regarding stock option exercise behaviors to estimate the expected term of options granted based on the period of time that options granted are expected to be outstanding. Expected volatilities are based on the historical volatility of the Company’s stock. The expected dividend yield is based on the Company’s historical dividend payments and historical yield. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for the length of time corresponding to the expected term of the option. The market value is calculated as the average of the high and the low stock price on the date of the grant. The Company includes as part of cash flows from operating activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and restricted shares and RSUs vested during the period. See Note 7 “Stockholders' Investment” for more information regarding the Company’s incentive stock plans. Research and Development — Amounts expended for R&D are expensed as incurred. Other Comprehensive Income — Other comprehensive income consists of foreign currency translation adjustments, net investment hedge and long-term intercompany loan translation adjustments, net unrealized gains and losses from cash flow hedges, and the unamortized gain on defined-benefit pension plans net of their related tax effects. Foreign Currency Translation — Foreign currency assets and liabilities are translated into United States dollars at end of period rates of exchange, and income and expense accounts are translated at the average rates of exchange for the period. Resulting translation adjustments are included in other comprehensive income. Risk Management Activities — The Company does not hold or issue derivative financial instruments for trading purposes. Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. The Company recognizes the effect of income tax positions only if sustaining those positions is more likely than not. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. Foreign Currency Hedging — The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions and minimize the foreign currency translation impact on the Company’s foreign operations. While the Company’s risk management objectives and strategies are driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in qualify for hedge accounting and result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of foreign currency derivatives to protect against exposure resulting from transactions in a currency differing from the respective functional currency. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) of the derivatives are recorded in the accompanying Consolidated Statements of Earnings as "Investment and other income (expense)" or as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income, as discussed below. The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months . These instruments may or may not qualify as hedges under the accounting guidance for derivative instruments and hedging activities based upon the intended objective of the contract. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the hedge and on an on-going basis. Gains or losses on the derivative related to hedge ineffectiveness are recognized in current earnings. The amount of hedge ineffectiveness was not material for the fiscal years ended July 31, 2018 , 2017 , and 2016 . The Company has designated a portion of its foreign exchange contracts as cash flow hedges. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and in the cash flow hedge section of the Consolidated Statements of Comprehensive Income, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining portion of its foreign exchange contracts are not designated as hedge transactions, and accordingly, the mark-to-market impact of these derivative contracts is recorded each period in current earnings. The Company also utilizes Euro-denominated debt designated as a hedge instrument to hedge portions of the Company’s net investments in Euro-denominated foreign operations. For net investment hedges that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded as cumulative translation within AOCI and are included in the net investment hedge section of the Consolidated Statements of Comprehensive Income. Any ineffective portions are to be recognized in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. See Note 12 "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. New Accounting Standards — In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-02, "Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income," which allows for reclassification of stranded tax effects on items resulting from the Tax Reform Act from AOCI to retained earnings. The guidance is effective for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company elected to early adopt this standard and during the three months ended July 31, 2018, the Company recorded an increase in AOCI and a decrease in retained earnings of $1,869 , which was a result of reduced future tax benefits from the reduction in the U.S. federal corporate tax rate. Refer to Note 3 "Other Comprehensive (Loss) Income" for more information regarding the impact to the individual components of AOCI. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which simplifies and reduces the complexity of the hedge accounting requirements and better aligns an entity's financial reporting for hedging relationships with its risk management activities. The guidance is effective for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. This new guidance will require a modified retrospective adoption approach to existing hedging relationships as of the adoption date. The Company is currently evaluating the impact of this update on its consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires entities to present the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the income statement line items where they report compensation cost. Entities will present all other components of net benefit cost outside operating income, if this subtotal is presented. The amendment only impacts where those costs are reflected within the income statement. In addition, only the service cost component of net benefit cost is eligible for capitalization. This guidance is effective for annual periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company does not expect the adoption of this update to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Goodwill and Other, Simplifying the Test for Goodwill Impairment," which simplifies the accounting for goodwill impairment. The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods thereafter. However, early adoption is permitted for any impairment tests performed after January 1, 2017. This guidance will only impact the Company's consolidated financial statements if there is a future impairment of goodwill. In February 2016, the FASB issued ASU 2016-02, "Leases," which replaces the current lease accounting standards. The update requires, among other items, lessees to recognize the assets and liabilities that arise from most leases on the balance sheet. This guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The ASU allows for either a full retrospective or a modified retrospective approach and early adoption is permitted. The Company expects the new lease standard to increase its total assets and liabilities; however, it is evaluating the magnitude of the impact on its consolidated financial statements. The Company has formed a team to implement the new lease standard and has selected a third-party software program to track and store its leases. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which eliminates the transaction-and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach for determining revenue recognition. The new guidance requires revenue recognition when control of the goods or services transfers to the customer, replacing the existing guidance which requires revenue recognition when the risks and rewards transfer to the customer. Under the new guidance, companies should recognize revenues in amounts reflecting the payment to which a company expects to be entitled in exchange for those goods or services. The Company adopted the new revenue standard on August 1, 2018, and assessed all potential impacts of this standard. The Company determined key factors from the five-step process to recognize revenue as prescribed by the new standard that may be applicable to each of the Company's operating businesses that roll up into its two segments. Significant customers and contracts were identified and the Company completed the review of these contracts. The Company's assessment determined certain transactions with customers will require a change in the timing of when revenue and related expense is recognized. The standard allows for either a full retrospective or a modified retrospective adoption approach. The Company has elected the modified retrospective method which will require a cumulative adjustment to retained earnings instead of retrospectively adjusting prior periods. The impact of the cumulative adjustment is a reduction of $2,850 to retained earnings in fiscal 2019. |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets Schedule of Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2018 and 2017 , were as follows: IDS WPS Total Balance as of July 31, 2016 $ 384,529 $ 45,342 $ 429,871 Translation adjustments 4,845 2,981 7,826 Realignment of businesses between segments 2,490 (2,490 ) — Balance as of July 31, 2017 $ 391,864 $ 45,833 $ 437,697 Translation adjustments (6,340 ) (1,487 ) (7,827 ) Current year divestiture — (10,055 ) (10,055 ) Balance as of July 31, 2018 $ 385,524 $ 34,291 $ 419,815 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets Schedule of Other Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Other Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other Intangible Assets Other intangible assets include patents, tradenames, customer relationships, non-compete agreements and other intangible assets with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The net book value of these assets was as follows: July 31, 2018 July 31, 2017 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Amortized other intangible assets: Patents 5 $ 1,448 $ (942 ) $ 506 5 $ 1,358 $ (471 ) $ 887 Tradenames and other 9 4,497 (4,395 ) 102 9 4,528 (4,229 ) 299 Customer relationships 9 55,999 (33,535 ) 22,464 8 60,759 (31,909 ) 28,850 Unamortized other intangible assets: Tradenames N/A 19,516 — 19,516 N/A 23,040 — 23,040 Total $ 81,460 $ (38,872 ) $ 42,588 $ 89,685 $ (36,609 ) $ 53,076 |
Other Comprehensive Income Ot27
Other Comprehensive Income Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the periods presented: Unrealized gain (loss) on cash flow hedges Gain on postretirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Ending balance, July 31, 2016 $ (857 ) $ 2,236 $ (56,124 ) $ (54,745 ) Other comprehensive income before reclassification 670 867 8,713 10,250 Amounts reclassified from accumulated other comprehensive loss 296 (483 ) — (187 ) Ending balance, July 31, 2017 $ 109 $ 2,620 $ (47,411 ) $ (44,682 ) Other comprehensive income (loss) before reclassification 465 382 (14,242 ) (13,395 ) Amounts reclassified from accumulated other comprehensive loss 383 (576 ) — (193 ) Adoption of accounting standard ASU 2018-02 $ (94 ) $ 876 $ 1,087 1,869 Ending balance, July 31, 2018 $ 863 $ 3,302 $ (60,566 ) $ (56,401 ) |
Other Comprehensive Income, Tax [Table Text Block] | The following table illustrates the income tax benefit (expense) on the components of other comprehensive (loss) income: 2018 2017 2016 Income tax benefit (expense) related to items of other comprehensive (loss) income: Net investment hedge translation adjustments $ (55 ) $ 1,170 $ (1,804 ) Cash flow hedges (669 ) 705 192 Pension and other post-retirement benefits (64 ) (4 ) 738 Other income tax adjustments (512 ) 550 (2,154 ) Adoption of accounting standard ASU 2018-02 1,869 — — Income tax benefit (expense) related to items of other comprehensive (loss) income $ 569 $ 2,421 $ (3,028 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | The following table provides a reconciliation of the changes in the Plan’s accumulated benefit obligation during the years ended July 31: 2018 2017 Obligation at beginning of fiscal year $ 3,390 $ 3,800 Interest cost 79 89 Benefit payments (449 ) (499 ) Obligation at end of fiscal year $ 3,020 $ 3,390 |
Schedule of Amounts Recognized in Balance Sheet | As of July 31, 2018 and 2017 , amounts recognized as liabilities in the accompanying Consolidated Balance Sheets consist of: 2018 2017 Current liability $ 377 $ 449 Non-current liability 2,643 2,941 $ 3,020 $ 3,390 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Net periodic benefit gain for the Plan for fiscal years ended July 31, 2018 , 2017 , and 2016 , includes the following components: Years Ended July 31, 2018 2017 2016 Net periodic postretirement benefit gain included the following components: Service cost $ — $ — $ 9 Interest cost 79 89 114 Amortization of prior service credit — — (1,035 ) Amortization of net actuarial gain (520 ) (544 ) (646 ) Periodic postretirement benefit gain $ (441 ) $ (455 ) $ (1,558 ) |
Schedule of Assumptions Used | The following assumptions were used in accounting for the Plan: 2018 2017 2016 Weighted average discount rate used in determining accumulated postretirement benefit obligation 2.50 % 2.50 % 2.50 % Weighted average discount rate used in determining net periodic benefit cost 2.50 % 2.50 % 3.00 % Assumed health care trend rate used to measure accumulated postretirement benefit obligation at July 31 7.00 % 7.25 % 7.50 % Rate to which cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.50 % 5.50 % Fiscal year the ultimate trend rate is reached 2024 2024 2018 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects on the Plan: One-Percentage Point Increase One-Percentage Point Decrease Effect on future service and interest cost $ 4 $ (5 ) Effect on accumulated postretirement benefit obligation at July 31, 2018 17 (18 ) |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid during the years ending July 31: 2019 $ 377 2020 359 2021 339 2022 309 2023 289 2024 through 2028 1,140 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Earnings from Continuing Operations | Earnings before income taxes consists of the following: Years Ended July 31, 2018 2017 2016 United States $ 48,903 $ 43,561 $ 61,349 Other Nations 103,112 83,071 47,996 Total $ 152,015 $ 126,632 $ 109,345 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following: Years Ended July 31, 2018 2017 2016 Current income tax expense: United States $ 2,830 $ 15,279 $ 5,048 Other Nations 26,593 23,826 19,929 States (U.S.) 910 1,163 1,348 $ 30,333 $ 40,268 $ 26,325 Deferred income tax (benefit) expense: United States $ 30,267 $ (8,173 ) $ 3,946 Other Nations (1,462 ) (1,329 ) (1,387 ) States (U.S.) 1,817 221 351 $ 30,622 $ (9,281 ) $ 2,910 Total income tax expense $ 60,955 $ 30,987 $ 29,235 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences are as follows as of July 31, 2018 and 2017 : July 31, 2018 Assets Liabilities Total Inventories $ 3,095 $ (53 ) $ 3,042 Prepaid catalog costs — (978 ) (978 ) Employee benefits 3,772 (91 ) 3,681 Accounts receivable 828 (1 ) 827 Fixed assets 2,959 (4,911 ) (1,952 ) Intangible assets 1,073 (29,630 ) (28,557 ) Deferred and equity-based compensation 10,656 — 10,656 Postretirement benefits 3,280 — 3,280 Tax credit and net operating loss carry-forwards 64,348 — 64,348 Less valuation allowance (56,866 ) — (56,866 ) Other, net 8,548 (8,962 ) (414 ) Total $ 41,693 $ (44,626 ) $ (2,933 ) July 31, 2017 Assets Liabilities Total Inventories $ 4,516 $ (1 ) $ 4,515 Prepaid catalog costs — (1,107 ) (1,107 ) Employee benefits 8,932 — 8,932 Accounts receivable 1,141 (11 ) 1,130 Fixed assets 2,819 (3,884 ) (1,065 ) Intangible assets 1,187 (37,681 ) (36,494 ) Deferred and equity-based compensation 16,743 — 16,743 Postretirement benefits 4,144 — 4,144 Tax credit and net operating loss carry-forwards 70,128 — 70,128 Less valuation allowance (38,563 ) — (38,563 ) Other, net 12,630 (10,798 ) 1,832 Total $ 83,677 $ (53,482 ) $ 30,195 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the tax computed by applying the statutory U.S. federal income tax rate to earnings from continuing operations before income taxes to the total income tax expense is as follows: Years Ended July 31, 2018 2017 2016 Tax at statutory rate 26.9 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.6 % 1.0 % 0.8 % International rate differential (1.1 )% (6.3 )% 0.4 % Rate variances arising from foreign subsidiary distributions (1) 0.8 % (5.9 )% 0.5 % Foreign tax credit carryforward valuation allowance (2) 14.1 % — % — % Divestiture of business (3) (0.8 )% — % — % Adjustments to tax accruals and reserves (4) 2.2 % 3.6 % (3.7 )% Research and development tax credits and domestic manufacturer’s deduction (2.0 )% (1.8 )% (3.6 )% Deferred tax and other adjustments, net (1.6 )% (1.1 )% (2.7 )% Effective tax rate 40.1 % 24.5 % 26.7 % (1) The year ended July 31, 2017, includes the generation of foreign tax credit carryforwards from cash repatriations that occurred during the fiscal year. (2) The year ended July 31, 2018, includes the establishment of a valuation allowance against foreign tax credit carryforwards as a result of the Tax Reform Act. (3) The year ended July 31, 2018, includes the divestiture of the Company's Runelandhs business based in Sweden. Refer to Note 13 - Divestitures for additional information. (4) The years ended July 31, 2018 and 2017, include increases in current year uncertain tax positions, while the year ended July 31, 2016, includes reductions of uncertain tax positions resulting from the closure of audits and lapses in statutes of limitations. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows: Balance at July 31, 2015 $ 21,133 Additions based on tax positions related to the current year 3,093 Additions for tax positions of prior years 1,290 Reductions for tax positions of prior years (9,369 ) Lapse of statute of limitations (344 ) Settlements with tax authorities (456 ) Cumulative Translation Adjustments and other (53 ) Balance as of July 31, 2016 $ 15,294 Additions based on tax positions related to the current year 2,500 Additions for tax positions of prior years 1,124 Reductions for tax positions of prior years (62 ) Lapse of statute of limitations (663 ) Settlements with tax authorities (118 ) Cumulative Translation Adjustments and other 287 Balance as of July 31, 2017 $ 18,362 Additions based on tax positions related to the current year 2,467 Additions for tax positions of prior years 1,586 Reductions for tax positions of prior years (23 ) Lapse of statute of limitations (489 ) Settlements with tax authorities (1,277 ) Cumulative Translation Adjustments and other (196 ) Balance as of July 31, 2018 $ 20,430 |
Schedule of Open Tax Years by Major Jurisdictions | Company and its subsidiaries file income tax returns in the U.S., various state, and foreign jurisdictions. The following table summarizes the open tax years for the Company's major jurisdictions: Jurisdiction Open Tax Years United States — Federal F’15 — F’18 France F’15 — F’18 Unr |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Total debt consists of the following as of July 31: 2018 2017 Euro-denominated notes payable in 2020 at a fixed rate of 4.24% $ 52,618 $ 53,202 USD-denominated borrowing on revolving loan agreement at a weighted average rate of 0.00% and 1.94% as of July 31, 2018 and 2017, respectively — 16,998 EUR-denominated borrowing on revolving loan agreement at a weighted average rate of 0.00% and 0.75% as of July 31, 2018 and 2017, respectively — 34,336 CNY-denominated borrowing on China revolving loan agreement at a weighted average rate of 0.00% and 3.92% as of July 31, 2018 and 2017, respectively — 2,228 USD-denominated borrowing on China revolving loan agreement at a weighted average rate of 0.00% and 2.63% as of July 31, 2018 and 2017, respectively — 1,000 $ 52,618 $ 107,764 Less notes payable — (3,228 ) Total long-term debt $ 52,618 $ 104,536 |
Schedule of Maturities of Long-term Debt | Maturities on long-term debt are as follows: Years Ending July 31, 2019 $ — 2020 52,618 Total $ 52,618 |
Stockholder's Investments (Tabl
Stockholder's Investments (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Equity [Abstract] | |
Schedule of Capital Stock | Information as to the Company’s capital stock at July 31, 2018 and 2017 is as follows: July 31, 2018 July 31, 2017 Shares Authorized Shares Issued (thousands) Amount Shares Authorized Shares Issued (thousands) Amount Preferred Stock, $.01 par value 5,000,000 5,000,000 Cumulative Preferred Stock: 6% Cumulative 5,000 5,000 1972 Series 10,000 10,000 1979 Series 30,000 30,000 Common Stock, $.01 par value: Class A Nonvoting 100,000,000 51,261,487 $ 513 100,000,000 51,261,487 $ 513 Class B Voting 10,000,000 3,538,628 35 10,000,000 3,538,628 35 $ 548 $ 548 |
Schedule of Other Activity in Stockholders' Investment | The following is a summary of other activity in stockholders’ investment for the fiscal years ended July 31, 2018 , 2017 , and 2016 : Deferred Compensation Shares Held in Rabbi Trust, at cost Total Balances at July 31, 2015 $ 5,684 $ (8,748 ) $ (3,064 ) Shares at July 31, 2015 252,261 362,025 Sale of shares at cost $ (1,238 ) $ 1,278 $ 40 Purchase of shares at cost 178 (1,017 ) (839 ) Balances at July 31, 2016 $ 4,624 $ (8,487 ) $ (3,863 ) Shares at July 31, 2016 201,418 347,081 Sale of shares at cost $ (1,247 ) $ 1,288 $ 41 Purchase of shares at cost 315 (925 ) (610 ) Effect of plan amendment 4,432 — 4,432 Balances at July 31, 2017 $ 8,124 $ (8,124 ) $ — Shares at July 31, 2017 314,082 314,082 Sale of shares at cost $ (977 ) $ 977 $ — Purchase of shares at cost 1,075 (1,075 ) — Balances at July 31, 2018 $ 8,222 $ (8,222 ) $ — Shares at July 31, 2018 299,916 299,916 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Black-Scholes Option Valuation Assumptions 2018 2017 2016 Expected term (in years) 6.07 6.11 6.11 Expected volatility 28.19 % 29.55 % 29.95 % Expected dividend yield 2.72 % 2.70 % 2.59 % Risk-free interest rate 1.96 % 1.26 % 1.64 % Weighted-average market value of underlying stock at grant date $ 36.85 $ 35.14 $ 20.02 Weighted-average exercise price $ 36.85 $ 35.14 $ 20.02 Weighted-average fair value of options granted during the period $ 7.96 $ 7.56 $ 4.58 |
Summary of Stock Option Activity under Company's Share-Based Compensation Plans | for the fiscal year ended July 31, 2018 : Option Price Options Outstanding Weighted Average Exercise Price Balance as of July 31, 2017 $ 19.96 — $38.83 2,879,801 $ 27.40 Options granted 36.85 — 36.85 364,046 36.85 Options exercised 19.96 — 38.31 (622,916 ) 28.84 Options cancelled 19.96 — 38.31 (116,298 ) 31.42 Balance as of July 31, 2018 $ 19.96 — $38.83 2,504,633 $ 28.23 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding at July 31, 2018 : Options Outstanding Options Outstanding and Exercisable Range of Exercise Prices Number of Shares Outstanding at July 31, 2018 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Shares Exercisable at July 31, 2018 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $19.96 - $26.99 846,353 6.7 $ 20.84 611,735 6.5 $ 21.16 $27.00 - $32.99 978,233 3.3 29.24 977,506 3.3 29.24 $33.00 - $38.83 680,047 8.4 35.97 132,988 7.2 35.13 Total 2,504,633 5.8 $ 28.23 1,722,229 4.7 $ 26.82 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following tables summarize the RSU and restricted share activity for the fiscal year ended July 31, 2018 : Time-Based RSUs and Restricted Shares Shares Weighted Average Grant Date Fair Value Balance as of July 31, 2017 517,108 $ 25.61 New grants 94,457 36.80 Vested (219,389 ) 24.76 Forfeited (49,320 ) 26.94 Balance as of July 31, 2018 342,856 $ 29.05 The time-based RSUs granted during the fiscal year ended July 31, 2017 , had a weighted-average grant-date fair value of $35.15 . The total fair value of time-based RSU's vested during the years ended July 31, 2018 and 2017 , was $8,237 and $6,512 , respectively. Performance-Based RSUs Shares Weighted Average Grant Date Balance as of July 31, 2017 58,206 $ 32.03 New grants 56,290 33.12 Vested — — Forfeited (6,399 ) 32.57 Balance as of July 31, 2018 108,097 $ 32.57 The performance-based RSUs granted during the year ended July 31, 2017 , had a weighted-average grant-date fair value of $32.03 . The aggregate intrinsic value of unvested time-based and performance-based RSU's outstanding at July 31, 2018 and 2017 , and expected to vest, was $17,249 and $19,100 , respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Following is a summary of segment information for the years ended July 31, 2018 , 2017 and 2016 : 2018 2017 2016 Sales to External Customers: ID Solutions $ 846,087 $ 800,392 $ 795,511 WPS 327,764 312,924 325,114 Total Company $ 1,173,851 $ 1,113,316 $ 1,120,625 Depreciation & Amortization: ID Solutions $ 22,075 $ 23,092 $ 27,285 WPS 3,367 4,211 5,147 Total Company $ 25,442 $ 27,303 $ 32,432 Segment Profit: ID Solutions $ 143,411 $ 130,572 $ 112,276 WPS 31,712 25,554 30,792 Total Company $ 175,123 $ 156,126 $ 143,068 Assets: ID Solutions $ 737,174 $ 761,448 $ 748,408 WPS 138,329 154,827 154,321 Corporate 181,428 133,948 141,235 Total Company $ 1,056,931 $ 1,050,223 $ 1,043,964 Expenditures for property, plant & equipment: ID Solutions $ 17,283 $ 12,347 $ 11,640 WPS 4,494 2,820 5,500 Total Company $ 21,777 $ 15,167 $ 17,140 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Following is a reconciliation of segment profit to earnings before income taxes for the years ended July 31, 2018 , 2017 and 2016 : Years Ended July 31, 2018 2017 2016 Total segment profit $ 175,123 $ 156,126 $ 143,068 Unallocated costs: Administrative costs 27,093 25,111 25,190 Gain on sale of business (1) (4,666 ) — — Investment and other (income) expense (2,487 ) (1,121 ) 709 Interest expense 3,168 5,504 7,824 Earnings before income taxes $ 152,015 $ 126,632 $ 109,345 (1) Gain on sale of business relates to the WPS segment during the year ended July 31, 2018. Revenues* Years Ended July 31, Long-Lived Assets** As of July 31, 2018 2017 2016 2018 2017 2016 Geographic information: United States $ 663,935 $ 651,294 $ 663,511 $ 366,638 $ 367,418 $ 376,045 Other 573,652 521,791 519,579 193,710 221,458 216,076 Eliminations (63,736 ) (59,769 ) (62,465 ) — — — Consolidated total $ 1,173,851 $ 1,113,316 $ 1,120,625 $ 560,348 $ 588,876 $ 592,121 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant, and equipment, other intangible assets and goodwill. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Revenues* Years Ended July 31, Long-Lived Assets** As of July 31, 2018 2017 2016 2018 2017 2016 Geographic information: United States $ 663,935 $ 651,294 $ 663,511 $ 366,638 $ 367,418 $ 376,045 Other 573,652 521,791 519,579 193,710 221,458 216,076 Eliminations (63,736 ) (59,769 ) (62,465 ) — — — Consolidated total $ 1,173,851 $ 1,113,316 $ 1,120,625 $ 560,348 $ 588,876 $ 592,121 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant, and equipment, other intangible assets and goodwill. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliations of Numerator and Denominator of Basic and Diluted Per Share | Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows: Years ended July 31, 2018 2017 2016 Numerator (in thousands): Earnings (Numerator for basic and diluted earnings per Class A Nonvoting Common Share) $ 91,060 $ 95,645 $ 80,110 Less: Preferential dividends (799 ) (788 ) (783 ) Preferential dividends on dilutive stock options (14 ) (14 ) (1 ) Numerator for basic and diluted earnings per Class B Voting Common Share $ 90,247 $ 94,843 $ 79,326 Denominator (in thousands): Denominator for basic earnings per share for both Class A and Class B 51,677 51,056 50,541 Plus: Effect of dilutive equity awards 847 900 228 Denominator for diluted earnings per share for both Class A and Class B 52,524 51,956 50,769 Net earnings per Class A Nonvoting Common Share: Basic $ 1.76 $ 1.87 $ 1.59 Diluted $ 1.73 $ 1.84 $ 1.58 Net earnings per Class B Voting Common Share: Basic $ 1.75 $ 1.86 $ 1.57 Diluted $ 1.72 $ 1.83 $ 1.56 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments required under such leases in effect at July 31, 2018 , were as follows: Years ending July 31, 2019 $ 14,826 2020 10,270 2021 8,456 2022 7,419 2023 6,192 Thereafter 4,047 $ 51,210 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis | The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2018 and July 31, 2017 , according to the valuation techniques the Company used to determine their fair values. Inputs Considered As Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Fair Values Balance Sheet Classifications July 31, 2017 Trading securities $ 13,994 $ — $ 13,994 Other assets Foreign exchange contracts — 1,354 1,354 Prepaid expenses and other current assets Total Assets $ 13,994 $ 1,354 $ 15,348 Foreign exchange contracts $ — $ 1,577 $ 1,577 Other current liabilities Total Liabilities $ — $ 1,577 $ 1,577 July 31, 2018 Trading securities $ 14,383 $ — $ 14,383 Other assets Foreign exchange contracts — 1,077 1,077 Prepaid expenses and other current assets Total Assets $ 14,383 $ 1,077 $ 15,460 Foreign exchange contracts $ — $ 3 $ 3 Other current liabilities Total Liabilities $ — $ 3 $ 3 |
Derivatives and Hedging Activ36
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments in Consolidated Balance Sheets | During the fiscal years ended July 31, 2018 , 2017 , and 2016 , the Company recognized gains of $24 , losses of $2,508 , and gains of $2,162 , respective |
Unaudited Quarterly Financial37
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Jul. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarters First Second Third Fourth Total Fiscal 2017 Net sales $ 280,176 $ 268,001 $ 275,927 $ 289,212 $ 1,113,316 Gross margin 140,358 134,158 139,909 143,867 558,292 Operating income 33,208 29,962 31,550 36,295 131,015 Net earnings 22,553 25,297 22,553 25,242 95,645 Net earnings per Class A Nonvoting Common Share: Basic * $ 0.45 $ 0.50 $ 0.44 $ 0.49 $ 1.87 Diluted $ 0.44 $ 0.49 $ 0.43 $ 0.48 $ 1.84 Fiscal 2018 Net sales $ 290,151 $ 287,780 $ 298,421 $ 297,499 $ 1,173,851 Gross margin 146,065 143,692 151,082 147,452 588,291 Operating income 35,411 34,796 37,709 44,780 152,696 Net earnings 25,836 4,273 26,000 34,951 91,060 Net earnings per Class A Nonvoting Common Share: Basic * $ 0.50 $ 0.08 $ 0.50 $ 0.67 $ 1.76 Diluted * $ 0.49 $ 0.08 $ 0.49 $ 0.66 $ 1.73 * The sum of the quarters does not equal the year-to-date total for fiscal 2017 or 2018 due to the quarterly changes in weighted-average shares outstanding. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2018 | |
Subsequent Event [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (2,850) | ||||
Document Period End Date | Jul. 31, 2018 | ||||
Class A Nonvoting Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Percentage Increase In Dividend | 2.40% | ||||
Dividends | $ 0.85 | $ 0.83 | $ 0.82 | $ 0.81 | |
Dividends Payable | $ 0.2125 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies Accounts Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Receivables [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 4,471 | $ 4,629 |
Entity-Wide Revenue, Major Customer, Percentage | 10.00% | |
Percentage Of Maximum Customers Shares In Companys Consolidated Accounts Receivable | 10.00% |
Summary of Significant Accoun40
Summary of Significant Accounting Policies Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 15.00% | 13.50% |
Inventory, LIFO Reserve, Effect on Income, Net | $ 7,015 | $ 6,807 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 19,009 | $ 20,190 | $ 23,375 |
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 33 years | ||
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Catalog Costs and Related Amortization (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Accounting Policies [Abstract] | ||
Prepaid Catalog Costs Included In Prepaid Expenses And Other Current Assets | $ 6,154 | $ 7,299 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Accounting Policies [Abstract] | ||
Revenue Recognition Sales Return Reserve For Sales Returns | $ 4,546 | $ 3,873 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Sales Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Accounting Policies [Abstract] | |||
Sales Incentives | $ 40,671 | $ 37,134 | $ 36,084 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 67,429 | $ 68,268 | $ 74,204 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies Foreign Currency Hedging (Details) | 12 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative maturity | 18 months |
Acquisitions - Pro Forma Operat
Acquisitions - Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 297,499 | $ 298,421 | $ 287,780 | $ 290,151 | $ 289,212 | $ 275,927 | $ 268,001 | $ 280,176 | $ 1,173,851 | $ 1,113,316 | $ 1,120,625 |
(Loss) earnings from continuing operations, as reported | $ 34,951 | $ 26,000 | $ 4,273 | $ 25,836 | $ 25,242 | $ 22,553 | $ 25,297 | $ 22,553 | $ 91,060 | $ 95,645 | $ 80,110 |
Nonvoting Common Stock [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Basic (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.67 | $ 0.50 | $ 0.08 | $ 0.50 | $ 0.49 | $ 0.44 | $ 0.50 | $ 0.45 | $ 1.76 | $ 1.87 | |
Diluted (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.66 | $ 0.49 | $ 0.08 | $ 0.49 | $ 0.48 | $ 0.43 | $ 0.49 | $ 0.44 | $ 1.73 | $ 1.84 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 19,141 | ||
Gain (Loss) on Disposition of Business | (4,666,000) | $ 0 | $ 0 |
Interest expense | 3,168,000 | 5,504,000 | 7,824,000 |
Income tax expense (benefit) | 60,955,000 | 30,987,000 | 29,235,000 |
Pre-tax amortization of intangible assets | $ 6,433,000 | $ 7,113,000 | $ 9,056,000 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 437,697 | $ 429,871 |
Goodwill, Foreign Currency Translation Gain (Loss) | (7,827) | (7,826) |
Goodwill, Ending Balance | 419,815 | 437,697 |
Goodwill, Period Increase (Decrease) | (17,882) | |
Goodwill, Written off Related to Sale of Business Unit | (10,055) | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Goodwill, Impaired, Accumulated Impairment Loss | 328,029 | |
Goodwill, Impaired [Abstract] | ||
Goodwill, Transfers | 0 | |
Identification Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 391,864 | 384,529 |
Goodwill, Foreign Currency Translation Gain (Loss) | (6,340) | (4,845) |
Goodwill, Ending Balance | 385,524 | 391,864 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Goodwill, Impaired, Accumulated Impairment Loss | 118,637 | |
Workplace Safety | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 45,833 | 45,342 |
Goodwill, Foreign Currency Translation Gain (Loss) | (1,487) | (2,981) |
Goodwill, Ending Balance | 34,291 | 45,833 |
Goodwill, Written off Related to Sale of Business Unit | 10,055 | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Goodwill, Impaired, Accumulated Impairment Loss | 209,392 | |
Goodwill, Impaired [Abstract] | ||
Goodwill, Transfers | (2,490) | |
Id Solutions [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Written off Related to Sale of Business Unit | $ 0 | |
Goodwill, Impaired [Abstract] | ||
Goodwill, Transfers | $ 2,490 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | $ 7,360 | ||
Intangible Assets, Gross (Excluding Goodwill) | 81,460 | $ 89,685 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (38,872) | (36,609) | |
Intangible Assets, Net (Excluding Goodwill) | 42,588 | 53,076 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization of Intangible Assets | 6,433 | $ 7,113 | $ 9,056 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 5,724 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 5,198 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 5,157 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 5,009 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 2,025 | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |
Intangible Assets, Gross (Excluding Goodwill) | $ 1,448 | $ 1,358 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (942) | (471) | |
Intangible Assets, Net (Excluding Goodwill) | $ 506 | $ 887 | |
Tradenames and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |
Intangible Assets, Gross (Excluding Goodwill) | $ 4,497 | $ 4,528 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,395) | (4,229) | |
Intangible Assets, Net (Excluding Goodwill) | $ 102 | $ 299 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | 8 years | |
Intangible Assets, Gross (Excluding Goodwill) | $ 55,999 | $ 60,759 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (33,535) | (31,909) | |
Intangible Assets, Net (Excluding Goodwill) | 22,464 | 28,850 | |
Tradenames and Other - Indefinite Life [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 19,516 | 23,040 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | $ 19,516 | $ 23,040 |
Other Comprehensive Income Sche
Other Comprehensive Income Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive (loss) income, Beginning Balance | $ (44,682) | $ (54,745) | |
Other comprehensive income (loss) before reclassification | (13,395) | 10,250 | |
Amounts reclassified from accumulated other comprehensive loss | 193 | 187 | |
Accumulated other comprehensive (loss) income, Ending Balance | (56,401) | (44,682) | $ (54,745) |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 1,869 | 0 | 0 |
Cash Flow Hedging [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive (loss) income, Beginning Balance | 109 | (857) | |
Other comprehensive income (loss) before reclassification | 465 | 670 | |
Amounts reclassified from accumulated other comprehensive loss | 383 | (296) | |
Accumulated other comprehensive (loss) income, Ending Balance | 863 | 109 | (857) |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | (94) | ||
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive (loss) income, Beginning Balance | (47,411) | (56,124) | |
Other comprehensive income (loss) before reclassification | (14,242) | 8,713 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Accumulated other comprehensive (loss) income, Ending Balance | (60,566) | (47,411) | (56,124) |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 1,087 | ||
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive (loss) income, Beginning Balance | 2,620 | 2,236 | |
Other comprehensive income (loss) before reclassification | 382 | 867 | |
Amounts reclassified from accumulated other comprehensive loss | (576) | 483 | |
Accumulated other comprehensive (loss) income, Ending Balance | 3,302 | $ 2,620 | $ 2,236 |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | $ 876 |
Other Comprehensive Income Ot52
Other Comprehensive Income Other Comprehensive Income, Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Other Comprehensive Income, Tax [Abstract] | |||
Net investment hedge translation adjustments | $ (55) | $ 1,170 | $ (1,804) |
Cash flow hedges | (669) | 705 | 192 |
Pension and other post-retirement benefits | (64) | (4) | 738 |
Other income tax adjustments | (512) | 550 | (2,154) |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 1,869 | 0 | 0 |
Income tax benefit (expense) related to items of other comprehensive (loss) income | $ 569 | $ 2,421 | $ (3,028) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Accumulated Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at beginning of fiscal year | $ 3,390 | $ 3,800 | |
Service cost | 0 | 0 | $ 9 |
Interest cost | 79 | 89 | 114 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 449 | 499 | |
Obligation at end of fiscal year | $ 3,020 | $ 3,390 | $ 3,800 |
Employee Benefit Plans - Sche54
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Retirement Benefits [Abstract] | |||
Current liability | $ 377 | $ 449 | |
Non-current liability | 2,643 | 2,941 | |
Defined Benefit Plan, Benefit Obligation | $ 3,020 | $ 3,390 | $ 3,800 |
Employee Benefit Plans - Sche55
Employee Benefit Plans - Schedule of Amounts Recognized in OCI (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Retirement Benefits [Abstract] | ||
Net actuarial gain | $ 4,984 | $ 5,504 |
Employee Benefit Plans - Sche56
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Net periodic postretirement benefit gain included the following components: | |||
Service cost | $ 0 | $ 0 | $ 9 |
Interest cost | 79 | 89 | 114 |
Amortization of prior service credit | 0 | 0 | (1,035) |
Amortization of net actuarial gain | (520) | (544) | (646) |
Periodic postretirement benefit gain | $ (441) | $ (455) | $ (1,558) |
Employee Benefit Plans - Sche57
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Jul. 31, 2018Rate | Jul. 31, 2017Rate | Jul. 31, 2016Rate | |
Retirement Benefits [Abstract] | |||
Weighted average discount rate used in determining accumulated postretirement benefit obligation | 2.50% | 2.50% | 2.50% |
Weighted average discount rate used in determining net periodic benefit cost | 2.50% | 2.50% | 3.00% |
Assumed health care trend rate used to measure accumulated postretirement benefit obligation at July 31 | 7.00% | 7.25% | 7.50% |
Rate to which cost trend rate is assumed to decline (the ultimate trend rate) | 5.50% | 5.50% | 5.50% |
Fiscal year the ultimate trend rate is reached | 2,024 | 2,024 | 2,018 |
Employee Benefit Plans - Sche58
Employee Benefit Plans - Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 4 |
Effect of One Percentage Point Decrease on Service and Interest Cost Components | (5) |
Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 17 |
Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (18) |
Employee Benefit Plans - Sche59
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2,016 | $ 377 | $ 449 |
2,017 | 359 | |
2,018 | 339 | |
2,019 | 309 | |
2,020 | 289 | |
2024 through 2028 | $ 1,140 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ 4,984 | $ 5,504 | |
Actuarial gain that will be amortized from AOCI into net periodic postretirement benefit cost over the next fiscal year | $ (497) | ||
Weighted average discount rate used in determining accumulated postretirement benefit obligation | 2.50% | 2.50% | 2.50% |
Accumulated pension obligation | $ 3,020 | $ 3,390 | $ 3,800 |
Periodic postretirement benefit cost | (441) | (455) | (1,558) |
Retirement and Profit Sharing Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefit expense | 14,395 | 13,750 | 10,407 |
Accrued retirement and profit-sharing contributions | 3,844 | 3,327 | |
Deferred Compensation Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation arrangement with individual, recorded liability | 14,383 | 14,121 | |
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated pension obligation | 5,383 | 6,075 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 194 | 641 | |
Periodic postretirement benefit cost | $ 341 | $ 665 | $ 795 |
Income Taxes - Schedule of (Los
Income Taxes - Schedule of (Loss) Earnings from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 48,903 | $ 43,561 | $ 61,349 |
Intercompany Royalty Transaction | 21,003 | ||
Other Nations | 103,112 | 83,071 | 47,996 |
Earnings before income taxes | $ 152,015 | $ 126,632 | $ 109,345 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Current income tax expense: | |||
United States | $ 2,830 | $ 15,279 | $ 5,048 |
Other Nations | 26,593 | 23,826 | 19,929 |
States (U.S.) | 910 | 1,163 | 1,348 |
Total current income tax expense | 30,333 | 40,268 | 26,325 |
Deferred income tax (benefit) expense: | |||
United States | 30,267 | (8,173) | 3,946 |
Other Nations | (1,462) | (1,329) | (1,387) |
States (U.S.) | 1,817 | 221 | 351 |
Total deferred income tax (benefit) expense | 30,622 | (9,281) | 2,910 |
Income Tax Expense (Benefit), Continuing Operations | $ 60,955 | $ 30,987 | $ 29,235 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Tax Benefits Associated with Closure of Tax Audits | $ 1,742 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2,850 | ||
Deferred Tax Assets, Inventory | 3,095 | $ 4,516 | |
Deferred Tax Asset Prepaid Catalog Costs | 0 | 0 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 3,772 | 8,932 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 828 | 1,141 | |
Deferred Tax Assets, Property, Plant and Equipment | 2,959 | 2,819 | |
Deferred Tax Assets, Goodwill and Intangible Assets | 1,073 | 1,187 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 10,656 | 16,743 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 3,280 | 4,144 | |
Deferred Tax Assets, Valuation Allowance | (56,866) | (38,563) | |
Deferred Tax Assets, Tax Deferred Expense, Other | 8,548 | 12,630 | |
Deferred Tax Assets, Gross | 41,693 | 83,677 | |
Deferred Tax Liabilities, Inventory | (53) | (1) | |
Deferred Tax Liabilities, Prepaid Expenses | (978) | (1,107) | |
Deferred Tax Liabilities Tax Deferred Expense Compensation And Benefits Employee Benefits | (91) | 0 | |
Deferred Tax Liabilities Accounts Receivable | (1) | (11) | |
Deferred Tax Liabilities, Property, Plant and Equipment | (4,911) | (3,884) | |
Deferred Tax Liabilities, Intangible Assets | (29,630) | (37,681) | |
Deferred Tax Liability, Deferred Expense, Deferred Compensation | 0 | 0 | |
Deferred Tax Liabilities, Deferred Tax Expense, Postretirement Benefits | 0 | 0 | |
Deferred Tax Liabilities Tax Credit Carryforwards And Net Operating Losses | 0 | 0 | |
Deferred Tax Liability, Valuation Allowance | 0 | 0 | |
Deferred Tax Liabilities, Other | (8,962) | (10,798) | |
Deferred Tax Liabilities, Gross | (44,626) | (53,482) | |
Deferred Tax Assets, Net, Deferred Expense, Compensation and Benefits, Postretirement Benefits | 4,144 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 64,348 | 70,128 | |
Deferred Tax Assets, Net | 30,195 | ||
Net of liabilities [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Inventory | 3,042 | 4,515 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 3,681 | 8,932 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 827 | 1,130 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 3,280 | ||
Deferred Tax Liabilities, Intangible Assets | (36,494) | ||
Deferred Tax Assets, Tax Credit Carryforwards | 64,348 | 70,128 | |
Deferred Tax Liabilities, Net | (2,933) | ||
Net of assets [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Liabilities, Prepaid Expenses | (978) | (1,107) | |
Deferred Tax Liabilities, Property, Plant and Equipment | (1,952) | (1,065) | |
Deferred Tax Liabilities, Intangible Assets | (28,557) | ||
Deferred Tax Liabilities, Other | $ (414) | $ 1,832 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | ||||
Income Tax Disclosure [Abstract] | |||||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 83 | $ 218 | $ 66 | ||||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||
Tax at statutory rate | 21.00% | 26.90% | 35.00% | 35.00% | |||
State income taxes, net of federal tax benefit | 1.60% | [1] | 1.00% | [1] | 0.80% | ||
International rate differential | (1.10%) | (6.30%) | 0.40% | ||||
Rate variances arising from foreign subsidiary distributions(1) | 0.80% | (5.90%) | 0.50% | ||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 14.10% | 0.00% | 0.00% | ||||
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent | (0.80%) | 0.00% | 0.00% | ||||
Adjustments to tax accruals and reserves(4) | [2] | 2.20% | 3.60% | (3.70%) | |||
Research and development tax credits and domestic manufacturer’s deduction | (2.00%) | (1.80%) | (3.60%) | ||||
Deferred tax and other adjustments, net | (1.60%) | (1.10%) | (2.70%) | ||||
Effective tax rate | 40.10% | 24.50% | 26.70% | ||||
[1] | Years Ended July 31, 2018 2017 2016Tax at statutory rate 26.9 % 35.0 % 35.0 %State income taxes, net of federal tax benefit 1.6 % 1.0 % 0.8 %International rate differential (1.1)% (6.3)% 0.4 %Rate variances arising from foreign subsidiary distributions(1) 0.8 % (5.9)% 0.5 %Foreign tax credit carryforward valuation allowance(2) 14.1 % — % — %Divestiture of business(3) (0.8)% — % — %Adjustments to tax accruals and reserves(4) 2.2 % 3.6 % (3.7)%Research and development tax credits and domestic manufacturer’s deduction (2.0)% (1.8)% (3.6)%Deferred tax and other adjustments, net (1.6)% (1.1)% (2.7)%Effective tax rate 40.1 % 24.5 % 26.7 % | ||||||
[2] | tain tax positions resulting from the closure of audits and lapses in statutes of limitation |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Unrecognized Tax Benefits: | |||
Beginning balance | $ 18,362 | $ 15,294 | $ 21,133 |
Additions based on tax positions related to the current year | 2,467 | 2,500 | 3,093 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1,586 | 1,124 | 1,290 |
Reductions for tax positions of prior years | (23) | (62) | (9,369) |
Lapse of statute of limitations | (489) | (663) | (344) |
Settlements with tax authorities | (1,277) | (118) | (456) |
Cumulative Translation Adjustments and other | 287 | ||
Ending balance | 20,430 | $ 18,362 | 15,294 |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | $ (196) | $ (53) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Provisional Income Tax Expense Resulting from Changes in Tax Legislation (repatriation) | $ 3,327 | |||
Provisional Income Tax Expense Resulting from Changes in Tax Legislation (net of other disclosures) | 16,761 | |||
Unrecognized Tax Benefits | $ 20,430 | $ 18,362 | $ 15,294 | $ 21,133 |
Foreign Net Operating Loss Carryforwards Expiration Dates | five years | |||
State Net Operating Loss Carryforwards Expiration Dates | 2022 to 2038 | |||
Foreign Tax Credit Carryforward Expiration Dates | 2021 to 2027 | |||
State Research And Development Tax Credit Carryforward Expiration Dates | 2019 to 2033 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 556 | 674 | 3 | |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 83 | 218 | 66 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 2,762 | 2,239 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 3,027 | 2,948 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 9,686 | |||
Unrecognized Tax Benefits Recognized In Other Liabilities | 13,238 | 11,725 | ||
Reduction Of Longterm Deferred Income Tax Assets Excluding Interest and Penalties | 7,192 | 6,637 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 675 | |||
Cash and cash equivalents | 181,427 | $ 133,944 | $ 141,228 | $ 114,492 |
Provisional Income Tax Expense Resulting from Changes in Tax Legislation (APB 23) | 984 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 108,540 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 88,197 | |||
Other Tax Carryforward, Gross Amount | 25,115 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 35,231 | |||
Other Tax Carryforward, Gross Amount | 11,448 | |||
Maximum recorded through earnings [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 9,686 | |||
United States, Federal [Member] | Low end of range [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2,015 | |||
United States, Federal [Member] | High end of range [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2,018 | |||
FRANCE | Low end of range [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2,015 | |||
FRANCE | High end of range [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2,018 |
Long-Term Obligations - Schedul
Long-Term Obligations - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt, long-term and short-term | $ 52,618 | $ 107,764 |
Notes payable | 0 | (3,228) |
Long-term debt | 52,618 | 104,536 |
USD-denominated China line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 0 | (34,336) |
CNY-denominated China line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 0 | (2,228) |
USD-Denominated Borrowing Credit Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 0 | |
Euro-denominated notes payable in 2020 at a fixed rate of 4.24% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 52,618 | 53,202 |
USD-Denominated Borrowing Credit Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 16,998 |
Long-Term Obligations - Sched68
Long-Term Obligations - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 52,618 | |
Long-term debt | $ 52,618 | $ 104,536 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Details) € in Millions | 12 Months Ended | 36 Months Ended | ||||
Jul. 31, 2018USD ($)Rate | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2007USD ($) | May 13, 2010USD ($) | May 13, 2010EUR (€) | |
Line of Credit Facilities [Line Items] | ||||||
Repayments on line of credit | $ (78,419,000) | $ (244,268,000) | $ (91,759,000) | |||
Debt Instruments [Abstract] | ||||||
Letters of credit outstanding | $ 3,043,000 | 4,067,000 | ||||
Ratio Of debt to EBITDA | equal to 0.3 to 1.0 | |||||
Interest expense coverage ratio | equal to 58.7 to 1.0 | |||||
Long-term debt, fair value | $ 55,707,000 | 109,303,000 | ||||
Long-term debt less notes payable | 52,618,000 | $ 104,536,000 | ||||
Private Placement [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt face amount | $ 75,000,000 | |||||
Debt instrument aggregate face amount during period | $ 350,000,000 | |||||
Debt instrument, interest rate terms | from 5.30% to 5.33% | |||||
Repayments of long-term debt | $ 42,500,000 | |||||
Euro-denominated notes payable in 2017 at a fixed rate of 3.71% [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt face amount | € | € 30 | |||||
Long-term debt, fixed interest rate percentage | Rate | 3.71% | |||||
Euro-denominated notes payable in 2020 at a fixed rate of 4.24% [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt face amount | € | € 45 | |||||
Long-term debt, fixed interest rate percentage | Rate | 4.24% | |||||
USD-Denominated Borrowing Credit Revolver [Member] | ||||||
Line of Credit Facilities [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 300,000,000 | |||||
Line of credit, maximum borrowing capacity | 450,000,000 | |||||
Line of credit facility, maximum amount outstanding during period | 57,235,000 | |||||
Repayments on line of credit | (51,941,000) | |||||
Line of credit, remaining borrowing capacity | 296,957,000 | |||||
Line of credit facility, maximum remaining borrowing capacity | 446,957,000 | |||||
China line of credit facility [Member] | ||||||
Line of Credit Facilities [Line Items] | ||||||
Line of credit facility, maximum amount outstanding during period | 3,228,000 | |||||
Repayments on line of credit | (3,257,000) | |||||
Line of credit, remaining borrowing capacity | 10,000,000 | |||||
Lender 1 [Member] | China line of credit facility [Member] | ||||||
Line of Credit Facilities [Line Items] | ||||||
Line of credit, current borrowing capacity | $ 10,000,000 |
Stockholder's Investments - Sch
Stockholder's Investments - Schedule of Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Class of Stock [Line Items] | ||||
Noncumulative Cash Dividend | $ 0.01665 | |||
Common Stock, Value, Issued | $ 548 | $ 548 | $ 548 | $ 548 |
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 51,261,487 | 51,261,487 | ||
Common Stock, Value, Issued | $ 513 | $ 513 | ||
Class B Voting Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Common Stock, Shares, Issued | 3,538,628 | 3,538,628 | ||
Common Stock, Value, Issued | $ 35 | $ 35 | ||
Noncumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||
6% Cumulative [Member] | Cumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 5,000 | 5,000 | ||
1972 Series [Member] | Cumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 10,000 | 10,000 | ||
1979 Series [Member] | Cumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 30,000 | 30,000 |
Stockholder's Investments Stock
Stockholder's Investments Stockholder's Investment - Schedule of Stock Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 26 days | 6 years 1 month 10 days | 6 years 1 month 10 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 28.19% | 29.55% | 29.95% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.72% | 2.70% | 2.59% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.96% | 1.26% | 1.64% |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Market Value Of Underlying Stock at Grant Date | $ 36.85 | $ 35.14 | $ 20.02 |
Black-Scholes Option Valuation Assumptions, Weighted-Average Exercise Price | 36.85 | 35.14 | 20.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.96 | $ 7.56 | $ 4.58 |
Stockholder's Investments - S72
Stockholder's Investments - Schedule of Other Activity in Stockholders' Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | $ 0 | $ 41 | $ 40 | |
Purchase Of Shares At Cost | 0 | (610) | (839) | |
Ending Balance, Other Stockholders Equity | 0 | 0 | (3,863) | $ (3,064) |
Shares Held Rabbi Trust At Cost [Member] | ||||
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | 977 | 1,288 | 1,278 | |
Purchase Of Shares At Cost | (1,075) | (925) | (1,017) | |
Ending Balance, Other Stockholders Equity | $ (8,222) | $ (8,124) | $ (8,487) | $ (8,748) |
Ending Balance, Other Stockholders Equity Shares | 299,916 | 314,082 | 347,081 | 362,025 |
Deferred Compensation [Member] | ||||
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | $ (977) | $ (1,247) | $ (1,238) | |
Purchase Of Shares At Cost | 1,075 | 315 | 178 | |
Ending Balance, Other Stockholders Equity | $ 8,222 | $ 8,124 | $ 4,624 | $ 5,684 |
Ending Balance, Other Stockholders Equity Shares | 299,916 | 314,082 | 201,418 | 252,261 |
Stockholder's Investments - Sum
Stockholder's Investments - Summary of Activity under Company's Share-Based Compensation Plans (Detail) - USD ($) | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 17,249 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 8,237 | $ 6,512 | |
Options Outstanding, Beginning Balance, Price Lower Range | $ 19.96 | ||
Options Outstanding, Beginning Balance, Price Upper Range | 38.83 | ||
Options Granted, Price Lower Range | 36.85 | ||
Options Granted, Price Upper Range | 36.85 | ||
Options Exercised, Price Lower Range | 19.96 | ||
Options Exercised, Price Upper Range | 38.31 | ||
Options Cancelled, Price Lower Range | 19.96 | ||
Options Cancelled, Price Upper Range | 38.31 | ||
Options Outstanding, Ending Balance, Price Lower Range | 19.96 | $ 19.96 | |
Options Outstanding, Ending Balance, Price Upper Range | $ 38.83 | $ 38.83 | |
Options, Outstanding [Roll Forward] | |||
Shares Outstanding, Beginning Balance | 2,879,801 | ||
Options Granted | 364,046 | ||
Options Exercised | (622,916) | ||
Options Cancelled | (116,298) | ||
Shares Outstanding, Ending Balance | 2,504,633 | 2,879,801 | |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 27.40 | ||
Options Granted, Weighted Average Exercise Price | 36.85 | $ 35.14 | $ 20.02 |
Options Exercised, Weighted Average Exercise Price | 28.84 | ||
Options Cancelled, Weighted Average Exercise Price | 31.42 | ||
Options Outstanding, Ending Balance, Weighted Average Exercise Price | $ 28.23 | 27.40 | |
Options Outstanding, Range of Exercise Prices [Abstract] | |||
Exercise Price Range, Number of Outstanding Options | 2,504,633 | ||
Exercise Price Range, Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days | ||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 28.23 | ||
Exercise Price Range, Number of Exercisable Options | 1,722,229 | ||
Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 4 years 8 months 12 days | ||
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 26.82 | ||
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Restricted Shares and RSUs, Grants in Period, Weighted Average Grant Date Fair Value | $ 35.15 | ||
$20.95 - $26.99 [Member] | |||
Options Outstanding, Range of Exercise Prices [Abstract] | |||
Exercise Price Range, Number of Outstanding Options | 846,353 | ||
Exercise Price Range, Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 8 months 12 days | ||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 20.84 | ||
Exercise Price Range, Number of Exercisable Options | 611,735 | ||
Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 6 years 6 months | ||
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 21.16 | ||
$27.00 - $32.99 [Member] | |||
Options Outstanding, Range of Exercise Prices [Abstract] | |||
Exercise Price Range, Number of Outstanding Options | 978,233 | ||
Exercise Price Range, Options Outstanding, Weighted Average Remaining Contractual Term | 3 years 3 months 18 days | ||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 29.24 | ||
Exercise Price Range, Number of Exercisable Options | 977,506 | ||
Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 3 years 3 months 18 days | ||
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 29.24 | ||
$33.00 - $38.31 [Member] | |||
Options Outstanding, Range of Exercise Prices [Abstract] | |||
Exercise Price Range, Number of Outstanding Options | 680,047 | ||
Exercise Price Range, Options Outstanding, Weighted Average Remaining Contractual Term | 8 years 4 months 24 days | ||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 35.97 | ||
Exercise Price Range, Number of Exercisable Options | 132,988 | ||
Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | ||
Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 35.13 | ||
Service Based Restricted Shares and Restricted Stock Units [Member] | |||
Restricted Shares and RSUs, Nonvested, Number of Shares [Roll Forward] | |||
Restricted Shares and RSUs, Nonvested, Number | 517,108 | ||
Restricted Shares and RSUs, Grants in Period | 94,457 | ||
Restricted Shares and RSUs, Vested in Period | (219,389) | ||
Restricted Shares and RSUs, Forfeited in Period | (49,320) | ||
Restricted Shares and RSUs, Nonvested, Number | 342,856 | 517,108 | |
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value | $ 25.61 | ||
Restricted Shares and RSUs, Grants in Period, Weighted Average Grant Date Fair Value | 36.80 | ||
Restricted Shares and RSUs, Vested in Period, Weighted Average Grant Date Fair Value | 24.76 | ||
Restricted Shares and RSUs, Forfeitures, Weighted Average Grant Date Fair Value | 26.94 | ||
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value | $ 29.05 | $ 25.61 | |
Performance Based Restricted Shares and Restricted Stock Units [Member] | |||
Restricted Shares and RSUs, Nonvested, Number of Shares [Roll Forward] | |||
Restricted Shares and RSUs, Nonvested, Number | 58,206 | ||
Restricted Shares and RSUs, Grants in Period | 56,290 | ||
Restricted Shares and RSUs, Vested in Period | 0 | ||
Restricted Shares and RSUs, Forfeited in Period | (6,399) | ||
Restricted Shares and RSUs, Nonvested, Number | 108,097 | 58,206 | |
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value | $ 32.03 | ||
Restricted Shares and RSUs, Grants in Period, Weighted Average Grant Date Fair Value | 33.12 | ||
Restricted Shares and RSUs, Vested in Period, Weighted Average Grant Date Fair Value | 0 | ||
Restricted Shares and RSUs, Forfeitures, Weighted Average Grant Date Fair Value | 32.57 | ||
Restricted Shares and RSUs, Nonvested, Weighted Average Grant Date Fair Value | $ 32.57 | $ 32.03 |
Stockholder's Investments - Add
Stockholder's Investments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Noncumulative Cash Dividend | $ 0.01665 | ||
Annual Amount Entitled to be Received by Class A Common Stock shareholders | $ 0.835 | ||
Class A Nonvoting Common Stock Shares Reserved for Outstanding Share-Based Awards | 2,955,586 | ||
Number of Shares Remaining for Future Issuance of Share-Based Awards | 4,049,563 | ||
Share-based Compensation Expense | $ 9,980 | $ 9,495 | $ 8,154 |
Share-based Compensation Expense, Net of Tax | 7,485 | $ 5,887 | 5,056 |
Share-Based Compensation Cost Not yet Recognized | $ 10,898 | ||
Share-Based Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 17 days | ||
Restricted Shares and RSUs, Grants in Period, Weighted Average Grant Date Fair Value | $ 35.15 | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||
Options, Award Vesting Period | 3 years | ||
Options, Expiration Period | 10 years | ||
Options, Vested in Period, Fair Value | $ 3,006 | $ 2,911 | 3,203 |
Options, Exercised in Period, Aggregate Intrinsic Value | $ 6,208 | $ 7,901 | $ 811 |
Options Exercisable, Number | 1,722,229 | 1,859,959 | 2,488,527 |
Options Exercisable, Weighted Average Exercise Price | $ 26.82 | $ 28.20 | $ 30.18 |
Options, Exercised in Period, Proceeds from Issuance of Shares | $ 12,099 | $ 19,728 | $ 5,246 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 1,893 | $ 3,002 | $ 308 |
Options Outstanding, Aggregate Intrinsic Value | 24,033 | ||
Options Exercisable, Aggregate Intrinsic Value | $ 18,945 | ||
Service-Based RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Award Vesting Period | 3 years |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information By Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | $ 297,499 | $ 298,421 | $ 287,780 | $ 290,151 | $ 289,212 | $ 275,927 | $ 268,001 | $ 280,176 | $ 1,173,851 | $ 1,113,316 | $ 1,120,625 |
Depreciation and amortization | 25,442 | 27,303 | 32,432 | ||||||||
Segment profit | 175,123 | 156,126 | 143,068 | ||||||||
Assets | 1,056,931 | 1,050,223 | 1,056,931 | 1,050,223 | 1,043,964 | ||||||
Payments to Acquire Property, Plant, and Equipment | 21,777 | 15,167 | 17,140 | ||||||||
Identification Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | 846,087 | 800,392 | 795,511 | ||||||||
Depreciation and amortization | 22,075 | 23,092 | 27,285 | ||||||||
Segment profit | 143,411 | 130,572 | 112,276 | ||||||||
Assets | 737,174 | 761,448 | 737,174 | 761,448 | 748,408 | ||||||
Payments to Acquire Property, Plant, and Equipment | 17,283 | 12,347 | 11,640 | ||||||||
Workplace Safety | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues to external customers | 327,764 | 312,924 | 325,114 | ||||||||
Depreciation and amortization | 3,367 | 4,211 | 5,147 | ||||||||
Segment profit | 31,712 | 25,554 | 30,792 | ||||||||
Assets | 138,329 | 154,827 | 138,329 | 154,827 | 154,321 | ||||||
Payments to Acquire Property, Plant, and Equipment | 4,494 | 2,820 | 5,500 | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 181,428 | $ 133,948 | $ 181,428 | $ 133,948 | $ 141,235 |
Segment Information - Net Incom
Segment Information - Net Income Reconciliation (Detail) - USD ($) | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total profit from reportable segments | $ 175,123,000 | $ 156,126,000 | $ 143,068,000 |
Unallocated amounts: | |||
Administrative costs | 27,093,000 | 25,111,000 | 25,190,000 |
Gain (Loss) on Disposition of Business | (4,666,000) | 0 | 0 |
Investment and other income | (2,487,000) | (1,121,000) | 709,000 |
Interest Expense | 3,168,000 | 5,504,000 | 7,824,000 |
Earnings before income taxes | 152,015,000 | 126,632,000 | 109,345,000 |
Workplace Safety | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total profit from reportable segments | 31,712,000 | 25,554,000 | 30,792,000 |
Identification Solutions | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total profit from reportable segments | $ 143,411,000 | $ 130,572,000 | $ 112,276,000 |
Segment Information - Schedul77
Segment Information - Schedule of Revenues and Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 297,499 | $ 298,421 | $ 287,780 | $ 290,151 | $ 289,212 | $ 275,927 | $ 268,001 | $ 280,176 | $ 1,173,851 | $ 1,113,316 | $ 1,120,625 |
Long-Lived Assets | 560,348 | 588,876 | 560,348 | 588,876 | 592,121 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 663,935 | 651,294 | 663,511 | ||||||||
Long-Lived Assets | 366,638 | 367,418 | 366,638 | 367,418 | 376,045 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 573,652 | 521,791 | 519,579 | ||||||||
Long-Lived Assets | 193,710 | 221,458 | 193,710 | 221,458 | 216,076 | ||||||
Intersegment Elimination [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | (63,736) | (59,769) | (62,465) | ||||||||
Long-Lived Assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income per Common Share - R
Net Income per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Earnings Per Share [Line Items] | |||||||||||
Earnings from continuing operations | $ 34,951 | $ 26,000 | $ 4,273 | $ 25,836 | $ 25,242 | $ 22,553 | $ 25,297 | $ 22,553 | $ 91,060 | $ 95,645 | $ 80,110 |
Cash dividends on Common Stock | $ 42,873 | $ 41,880 | $ 40,808 | ||||||||
Denominator for basic earnings per share for both Class A and Class B | 51,677 | 51,056 | 50,541 | ||||||||
Plus: Effect of dilutive stock options | 847 | 900 | 228 | ||||||||
Denominator for diluted earnings per share for both Class A and Class B | 52,524 | 51,956 | 50,769 | ||||||||
Class A Nonvoting Common Stock [Member] | |||||||||||
Earnings Per Share [Line Items] | |||||||||||
Earnings (loss) from continuing operations, per basic share | $ 0.67 | $ 0.50 | $ 0.08 | $ 0.50 | $ 0.49 | $ 0.44 | $ 0.50 | $ 0.45 | $ 1.76 | $ 1.87 | |
Earnings (loss) from continuing operations, per diluted share | $ 0.66 | $ 0.49 | $ 0.08 | $ 0.49 | $ 0.48 | $ 0.43 | $ 0.49 | $ 0.44 | 1.73 | 1.84 | |
Net earnings (loss) per share, basic | 1.76 | 1.87 | $ 1.59 | ||||||||
Net earnings (loss) per share, diluted | $ 1.73 | $ 1.84 | $ 1.58 | ||||||||
Class B Voting Common Stock [Member] | |||||||||||
Earnings Per Share [Line Items] | |||||||||||
Earnings from continuing operations | $ 90,247 | $ 94,843 | $ 79,326 | ||||||||
Net earnings (loss) per share, basic | $ 1.75 | $ 1.86 | $ 1.57 | ||||||||
Net earnings (loss) per share, diluted | $ 1.72 | $ 1.83 | $ 1.56 | ||||||||
Preferential Dividends on Class A Nonvoting Common Stock [Member] | |||||||||||
Earnings Per Share [Line Items] | |||||||||||
Cash dividends on Common Stock | $ 799 | $ 788 | $ 783 | ||||||||
Preferential Dividends on Dilutive Shares [Member] | |||||||||||
Earnings Per Share [Line Items] | |||||||||||
Cash dividends on Common Stock | $ 14 | $ 14 | $ 1 |
Net Income per Common Share - A
Net Income per Common Share - Additional Informations (Detail) - shares | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from computations of diluted earnings per share | 751,200 | 669,036 | |
Class A Nonvoting Common Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from computations of diluted earnings per share | 3,172,755 |
Commitments and Contingencies80
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 15,938 | $ 17,495 | $ 17,253 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 14,826 | ||
2,017 | 10,270 | ||
2,018 | 8,456 | ||
2,019 | 7,419 | ||
2,020 | 6,192 | ||
Thereafter | 4,047 | ||
Total future minimum payments due | $ 51,210 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 15,460 | $ 15,348 |
Total Liabilities | 3 | 1,577 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 14,383 | 13,994 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 14,383 | 13,994 |
Fair Value, Inputs, Level 1 [Member] | Prepaid expenses and other current assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 1,077 | 1,354 |
Total Liabilities | 3 | 1,577 |
Fair Value, Inputs, Level 2 [Member] | Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Prepaid expenses and other current assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,077 | 1,354 |
Fair Value, Inputs, Level 2 [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 3 | $ 1,577 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $ 419,815 | $ 437,697 | $ 429,871 |
Property, Plant and Equipment, Net | 97,945 | 98,103 | |
Identification Solutions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 385,524 | 391,864 | 384,529 |
Workplace Safety | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | $ 34,291 | $ 45,833 | $ 45,342 |
Derivatives and Hedging Activ83
Derivatives and Hedging Activities - Additional Information (Detail) € in Thousands, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2017EUR (€) | May 13, 2010EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Derivative maturity | 18 months | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | ||||
Reclassification adjustment for (gains) losses included in net income | $ 551 | $ 486 | $ 196 | ||
Accumulated other comprehensive (loss) income | (56,401) | (44,682) | (54,745) | ||
Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | $ 32,667 | 81,195 | |||
Foreign exchange contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative maturity | 18 months | ||||
Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | $ 27,150 | 30,016 | |||
Not designated as hedging Instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 24 | (2,508) | |||
Derivative Liability, Fair Value, Gross Liability | 3 | 7 | |||
Asset Derivatives | 1 | 287 | |||
Designated as hedging instruments [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 52,668 | 54,849 | |||
Asset Derivatives | 1,076 | 1,067 | |||
Designated as hedging instruments [Member] | Net Investment Hedging [Member] | EUR denominated unsecured debt [Domain] | |||||
Derivatives, Fair Value [Line Items] | |||||
Net investment hedges to hedge portions of net investment | € | € 75,000 | ||||
Accumulated other comprehensive (loss) income | 9,961 | € 9,348 | |||
Foreign exchange contracts | 612 | 1,792 | 1,372 | ||
Designated as hedging instruments [Member] | Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Reclassification adjustment for (gains) losses included in net income | (551) | (486) | $ (199) | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (1,017) | 500 | |||
Other current liabilities [Member] | Not designated as hedging Instruments [Member] | Foreign exchange contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 3 | 7 | |||
Prepaid expenses and other current assets [Member] | Not designated as hedging Instruments [Member] | Foreign exchange contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 1 | 287 | |||
Cash Flow Hedging [Member] | Other current liabilities [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 1,569 | |||
Cash Flow Hedging [Member] | Prepaid expenses and other current assets [Member] | Designated as hedging instruments [Member] | Foreign exchange contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 1,076 | $ 1,067 |
Derivatives and Hedging Activ84
Derivatives and Hedging Activities - Fair Values of Derivative Instruments in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jul. 31, 2018 | Jul. 31, 2017 |
Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | $ 1,076 | $ 1,067 |
Liability Derivatives | 52,668 | 54,849 |
Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 1 | 287 |
Liability Derivatives | 3 | 7 |
Prepaid expenses and other current assets [Member] | Foreign exchange contract [Member] | Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 1 | 287 |
Other current liabilities [Member] | Foreign exchange contract [Member] | Not designated as hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | 3 | 7 |
Cash flow hedging [Member] | Prepaid expenses and other current assets [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 1,076 | 1,067 |
Cash flow hedging [Member] | Other current liabilities [Member] | Foreign exchange contract [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | 0 | 1,569 |
Net investment hedging [Member] | Prepaid expenses and other current assets [Member] | Foreign currency denominated debt [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Asset Derivatives | 0 | 0 |
Net investment hedging [Member] | Long term obligations less current maturities [Member] | Foreign currency denominated debt [Member] | Designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liability Derivatives | $ 52,668 | $ 53,280 |
Unaudited Quarterly Financial85
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Net sales | $ 297,499 | $ 298,421 | $ 287,780 | $ 290,151 | $ 289,212 | $ 275,927 | $ 268,001 | $ 280,176 | $ 1,173,851 | $ 1,113,316 | $ 1,120,625 |
Gross margin | 147,452 | 151,082 | 143,692 | 146,065 | 143,867 | 139,909 | 134,158 | 140,358 | 588,291 | 558,292 | 558,773 |
Operating income | 44,780 | 37,709 | 34,796 | 35,411 | 36,295 | 31,550 | 29,962 | 33,208 | 152,696 | 131,015 | 117,878 |
Net earnings | $ 34,951 | $ 26,000 | $ 4,273 | $ 25,836 | $ 25,242 | $ 22,553 | $ 25,297 | $ 22,553 | $ 91,060 | $ 95,645 | $ 80,110 |
Class A Nonvoting Common Stock [Member] | |||||||||||
Net earnings (loss) from continuing operations per Class A Common Share: | |||||||||||
Earnings (loss) from continuing operations, per basic share | $ 0.67 | $ 0.50 | $ 0.08 | $ 0.50 | $ 0.49 | $ 0.44 | $ 0.50 | $ 0.45 | $ 1.76 | $ 1.87 | |
Diluted (loss) earnings from continuing operations per Class A Common Share, as reported | $ 0.66 | $ 0.49 | $ 0.08 | $ 0.49 | $ 0.48 | $ 0.43 | $ 0.49 | $ 0.44 | $ 1.73 | $ 1.84 |
Subsequent Events Subsequent 86
Subsequent Events Subsequent Events (Details) - Nonvoting Common Stock [Member] - $ / shares | 12 Months Ended | ||||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | Oct. 31, 2018 | |
Subsequent Event [Line Items] | |||||
Dividends | $ 0.85 | $ 0.83 | $ 0.82 | $ 0.81 | |
Dividends Payable, Amount Per Share | $ 0.2125 | ||||
Percentage Increase In Dividend | 2.40% |
Schedule II Valuation of Qual87
Schedule II Valuation of Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | $ 4,629 | $ 5,144 | $ 3,585 |
Additions — Charged to expense | 752 | 732 | 1,904 |
Deductions - written off | (910) | (1,247) | (345) |
Balances at end of period | 4,471 | 4,629 | 5,144 |
Inventory Valuation Reserve [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 14,322 | 15,083 | 13,269 |
Additions — Charged to expense | 2,797 | 4,608 | 4,950 |
Deductions - written off | (4,537) | (5,369) | (3,136) |
Balances at end of period | 12,582 | 14,322 | 15,083 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 38,563 | 37,992 | 39,922 |
Additions — Charged to expense | 24,184 | 2,004 | 2,614 |
Deductions - written off | (5,881) | (1,433) | (4,544) |
Balances at end of period | $ 56,866 | $ 38,563 | $ 37,992 |