Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Aug. 31, 2023 | Jan. 31, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Entity Registrant Name | BRADY CORP | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000746598 | ||
Document Period End Date | Jul. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --07-31 | ||
Document Fiscal Year Focus | 2023 | ||
Entity Address, Address Line One | 6555 West Good Hope Road | ||
Entity Address, City or Town | Milwaukee | ||
Entity Address, State or Province | WI | ||
City Area Code | 414 | ||
Local Phone Number | 358-6600 | ||
Entity Address, Postal Zip Code | 53223 | ||
Entity File Number | 1-14959 | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-0178960 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Class A Nonvoting Common Stock, par value $0.01 per share | ||
Trading Symbol | BRC | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 2,362,342,797 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Class A Nonvoting Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 44,825,183 | ||
Class B Voting Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,538,628 |
Audit Information
Audit Information | 12 Months Ended |
Jul. 31, 2023 | |
Auditor Information Abstract [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Milwaukee, Wisconsin |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 151,532 | $ 114,069 |
Accounts receivable, net of allowance for credit losses of $8,467 and $7,355, respectively | 184,420 | 183,233 |
Inventories | 177,078 | 190,023 |
Prepaid expenses and other current assets | 11,790 | 10,743 |
Total current assets | 524,820 | 498,068 |
Assets, Noncurrent | ||
Property, plant and equipment—net | 142,149 | 139,511 |
Goodwill | 592,646 | 586,832 |
Other intangible assets | 62,096 | 74,028 |
Deferred income taxes | 15,716 | 15,881 |
Operating lease assets | 29,688 | 31,293 |
Other assets | 22,142 | 21,719 |
Total | 1,389,257 | 1,367,332 |
Current liabilities: | ||
Accounts payable | 79,855 | 81,116 |
Accrued compensation and benefits | 71,470 | 76,764 |
Taxes, other than income taxes | 13,575 | 12,539 |
Accrued income taxes | 12,582 | 8,294 |
Current operating lease liabilities | 14,726 | 15,003 |
Other current liabilities | 65,828 | 61,458 |
Total current liabilities | 258,036 | 255,174 |
Other Long-Term Debt, Noncurrent | 49,716 | 95,000 |
Liabilities, Noncurrent | ||
Long-term operating lease liabilities | 16,217 | 19,143 |
Other liabilities | 74,369 | 86,717 |
Total liabilities | 398,338 | 456,034 |
Stockholders’ equity: | ||
Common Stock, Value, Issued | 548 | 548 |
Additional paid-in capital | 351,771 | 345,266 |
Retained earnings | 1,021,870 | 892,417 |
Treasury stock — 6,252,763 and 4,890,779 shares, respectively, of Class A nonvoting common stock, at cost | (290,209) | (217,856) |
Accumulated other comprehensive loss | (93,061) | (109,077) |
Total stockholders’ equity | 990,919 | 911,298 |
Total | 1,389,257 | 1,367,332 |
Class A Nonvoting Common Stock | ||
Stockholders’ equity: | ||
Common Stock, Value, Issued | 513 | 513 |
Class B Voting Common Stock | ||
Stockholders’ equity: | ||
Common Stock, Value, Issued | $ 35 | $ 35 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 8,467 | $ 7,355 |
Class A Nonvoting Common Stock | ||
Common Stock, Shares, Issued | 51,261,487 | 51,261,487 |
Common stock, shares outstanding | 45,008,724 | 46,370,708 |
Treasury Stock, Common, Shares | 6,252,763 | 4,890,779 |
Common Stock Aggregate Liquidation Preference | $ 42,716 | $ 42,716 |
Class B Voting Common Stock | ||
Common Stock, Shares, Issued | 3,538,628 | 3,538,628 |
Common stock, shares outstanding | 3,538,628 | 3,538,628 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net sales | $ 1,331,863 | $ 1,302,062 | $ 1,144,698 |
Cost of goods sold | 674,588 | 670,510 | 583,252 |
Gross margin | 657,275 | 631,552 | 561,446 |
Operating expenses: | |||
Research and development | 61,365 | 58,548 | 44,551 |
Selling, general and administrative | 370,697 | 379,992 | 349,768 |
Total operating expenses | 432,062 | 438,540 | 394,319 |
Operating income | 225,213 | 193,012 | 167,127 |
Other income (expense): | |||
Investment and other income | 4,022 | 244 | 4,333 |
Interest expense | (3,539) | (1,276) | (437) |
Income before income taxes and losses of unconsolidated affiliate | 225,696 | 191,980 | 171,023 |
Income tax expense | 50,839 | 42,001 | 35,610 |
Income before losses of unconsolidated affiliate | 174,857 | 149,979 | 135,413 |
Equity in losses of unconsolidated affiliate | 0 | 0 | (5,754) |
Net income | $ 174,857 | $ 149,979 | $ 129,659 |
Weighted average common shares outstanding: | |||
Basic | 49,591 | 51,321 | 52,039 |
Diluted | 49,869 | 51,651 | 52,409 |
Class A Nonvoting Common Stock | |||
Earnings per share: | |||
Basic | $ 3.53 | $ 2.92 | $ 2.49 |
Diluted | 3.51 | 2.90 | 2.47 |
Class B Voting Common Stock | |||
Earnings per share: | |||
Basic | 3.51 | 2.91 | 2.48 |
Diluted | $ 3.49 | $ 2.89 | $ 2.46 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 174,857 | $ 149,979 | $ 129,659 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 16,009 | (53,402) | 10,266 |
Cash flow hedges: | |||
Net gain recognized in other comprehensive income (loss) | 2,680 | 1,282 | 1,451 |
Reclassification adjustment for gains included in net income | (2,140) | (909) | (399) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax, Total | 540 | 373 | 1,052 |
Pension and other post-retirement benefits: | |||
Net (loss) gain recognized in other comprehensive income (loss) | (465) | 424 | 0 |
Net actuarial gain amortization | (417) | (1,043) | (388) |
Other Comprehensive (Income) Loss, Pension and other Post-retirement Benefits, after Reclassification Adjustment, before Tax, total | (882) | (619) | (388) |
Other comprehensive income (loss), before tax | 15,667 | (53,648) | 10,930 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 349 | 524 | (406) |
Other comprehensive income (loss), net of tax | 16,016 | (53,124) | 10,524 |
Comprehensive income | $ 190,873 | $ 96,855 | $ 140,183 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] Class A Nonvoting Common Stock | Retained Earnings [Member] Class B Voting Common Stock | Treasury Stock, Common | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balances at Jul. 31, 2020 | $ 548 | $ 331,762 | $ 704,456 | $ (107,216) | $ (66,477) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 129,659 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 10,524 | 10,524 | ||||||
Issuance of shares of Class A Common Stock under stock plan | (2,767) | (1,748) | ||||||
Tax benefit and withholdings from deferred compensation distributions | 32 | |||||||
Stock-based compensation expense (Note 7) | 10,098 | |||||||
Repurchase of shares of Class A Common Stock, including excise taxes | 3,593 | |||||||
Dividends, Common Stock, Cash | $ (42,690) | $ (3,056) | ||||||
Ending Balances at Jul. 31, 2021 | 548 | 339,125 | 788,369 | (109,061) | (55,953) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 149,979 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (53,124) | (53,124) | ||||||
Issuance of shares of Class A Common Stock under stock plan | (4,478) | (434) | ||||||
Tax benefit and withholdings from deferred compensation distributions | 115 | |||||||
Stock-based compensation expense (Note 7) | 10,504 | |||||||
Repurchase of shares of Class A Common Stock, including excise taxes | 109,229 | |||||||
Dividends, Common Stock, Cash | (42,805) | (3,126) | ||||||
Ending Balances at Jul. 31, 2022 | 911,298 | 548 | 345,266 | 892,417 | (217,856) | (109,077) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 174,857 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 16,016 | 16,016 | ||||||
Issuance of shares of Class A Common Stock under stock plan | (1,069) | (3,119) | ||||||
Tax benefit and withholdings from deferred compensation distributions | 66 | |||||||
Stock-based compensation expense (Note 7) | 7,508 | |||||||
Repurchase of shares of Class A Common Stock, including excise taxes | (75,472) | |||||||
Dividends, Common Stock, Cash | $ (42,207) | $ (3,197) | ||||||
Ending Balances at Jul. 31, 2023 | $ 990,919 | $ 548 | $ 351,771 | $ 1,021,870 | $ (290,209) | $ (93,061) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Class A Nonvoting Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.92 | $ 0.90 | $ 0.88 |
Class B Voting Common Stock | |||
Common Stock, Dividends, Per Share, Declared | $ 0.90 | $ 0.88 | $ 0.86 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Operating activities: | |||
Net income | $ 174,857 | $ 149,979 | $ 129,659 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,370 | 34,182 | 25,483 |
Stock-based compensation expense | 7,508 | 10,504 | 10,098 |
Gain on sale of business | (3,770) | 0 | 0 |
Deferred income taxes | (12,472) | (1,645) | (8,965) |
Equity in losses of unconsolidated affiliate | 0 | 0 | 5,754 |
Other | (308) | 1,197 | (831) |
Changes in operating assets and liabilities (net of effects of business acquisitions): | |||
Accounts receivable | 2,380 | (25,330) | (12,614) |
Inventories | 14,972 | (62,907) | 7,298 |
Prepaid expenses and other assets | (1,023) | 807 | (4,498) |
Accounts payable and accrued liabilities | (9,459) | 6,826 | 58,283 |
Income taxes | 4,094 | 4,836 | (4,002) |
Net cash provided by operating activities | 209,149 | 118,449 | 205,665 |
Investing activities: | |||
Purchases of property, plant and equipment | (19,226) | (43,138) | (27,189) |
Sale of business | 8,000 | 0 | 0 |
Acquisition of businesses, net of cash acquired | 0 | 0 | (243,983) |
Other | 12 | 67 | 2,580 |
Net cash used in investing activities | (11,214) | (43,071) | (268,592) |
Financing activities: | |||
Payment of dividends | (45,404) | (45,931) | (45,746) |
Proceeds from exercise of stock options | 4,091 | 1,082 | 1,765 |
Payments for employee taxes withheld from stock-based awards | (2,041) | (5,127) | (2,783) |
Purchase of treasury stock | (74,996) | (109,229) | (3,593) |
Proceeds from borrowing on credit facilities | 127,660 | 243,716 | 101,957 |
Repayments of Lines of Credit | 172,944 | 186,716 | 63,957 |
Other | 66 | 116 | 33 |
Net cash used in financing activities | (163,568) | (102,089) | (12,324) |
Effect of exchange rate changes on cash and cash equivalents | 3,096 | (6,555) | 4,943 |
Net increase (decrease) in cash and cash equivalents | 37,463 | (33,266) | (70,308) |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning Balance | 114,069 | 147,335 | 217,643 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Ending Balance | 151,532 | 114,069 | 147,335 |
Supplemental Cash Flow Information | |||
Interest | 3,408 | 1,082 | 373 |
Income taxes | $ 58,829 | $ 33,834 | $ 46,852 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
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 wholly owned subsidiaries. All intercompany accounts and transactions between consolidated subsidiaries have been eliminated in consolidation. Use of Estimates — The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Acquisitions — The Company recognizes assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred and changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period are recorded in income tax expense. Cash Equivalents — The Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. Concentration of Credit Risk — The Company places temporary cash investments with global financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of its financial institutions and limits the amount of credit exposure with any one financial institution. In addition, the Company has a broad customer base representing many diverse industries throughout the globe. Consequently, no significant concentration of credit risk is considered to exist. Accounts Receivable — The Company's policy for estimating the allowance for credit losses on accounts receivables considers several factors including historical loss experience, the age of delinquent receivable balances due, and economic conditions. Specific customer reserves are made during review of significant outstanding balances due, in which customer creditworthiness and current economic trends may indicate that it is probable the receivable will not be recovered. Accounts receivable are written off after collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in SG&A expense. Equity Method Investment — The equity method of accounting is applied to investments in which the Company has significant influence over the operating and financial decisions of the investee. The Company evaluates its equity method investments each reporting period for evidence of a loss in value that is other than a temporary decline. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company performed this analysis and concluded that its investment in React Mobile, Inc. was other-than-temporarily impaired and recognized an impairment charge of $4,994 for the Company's remaining equity interest in React Mobile, Inc. during the year ended July 31, 2021. Inventories — Inventories are stated at the lower of cost or net realizable value and include material, labor, and overhead. Cost has been determined using the last-in, first-out (“LIFO”) method for certain inventories in the U.S. (9.6% of total inventories at July 31, 2023, and 13.3% of total inventories at July 31, 2022) and the first-in, first-out (“FIFO”) or average cost methods for all 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 $11,312 and $9,900 as of July 31, 2023 and 2022, respectively. Inventories consist of the following as of July 31: 2023 2022 Finished products $ 103,350 $ 112,323 Work-in-process 26,884 29,272 Raw materials and supplies 46,844 48,428 Total inventories $ 177,078 $ 190,023 Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. The estimated useful lives range from 3 to 33 years as shown below. Property, plant and equipment consist of the following as of July 31: Range of Useful Lives 2023 2022 Land $ 12,273 $ 11,916 Buildings and improvements 10 to 33 Years 130,004 123,619 Machinery and equipment 3 to 10 Years 282,870 268,527 Construction in progress 9,682 7,825 Property, plant and equipment—gross 434,829 411,887 Accumulated depreciation (292,680) (272,376) Property, plant and equipment—net $ 142,149 $ 139,511 Depreciation expense was $20,631, $19,216, and $18,406 for the years ended July 31, 2023, 2022 and 2021, respectively. Goodwill — The Company evaluates the carrying amount of goodwill annually or more frequently if events or changes in circumstances have occurred that indicate the goodwill might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. When performing its annual impairment assessment, the Company evaluates the recoverability of goodwill assigned to each of its reporting units by comparing the estimated fair value of the respective reporting unit to the carrying value, including goodwill. The Company estimates fair value utilizing the income approach and the market approach. The income approach requires management to make a number of assumptions and estimates for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows, working capital levels, income tax rates, and a weighted-average cost of capital reflecting the specific risk profile of the respective reporting unit. The market approach estimates fair value using performance multiples of comparable publicly-traded compa nies. In the event the fair value of a reporting unit is less than the carrying value, including goodwill, an impairment loss, if any, is recognized for the difference between the implied fair value and the carrying value of the reporting unit's goodwill. The annual impairment testing performed on May 1, 2023, indicated that all reporting units with goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recognized during the year ended July 31, 2023. Other Intangible and Long-Lived Assets — Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives to reflect the pattern of economic benefits consumed. Intangible assets with indefinite lives as well as goodwill are not subject to amortization. These assets are assessed for impairment on an annual basis or more frequently if events or changes in circumstances have occurred that indicate the asset may not be recoverable or that the remaining estimated useful life may warrant revision. In addition, the Company performs qualitative assessments on a quarterly basis of significant events and circumstances, such as historical and current results, assumptions regarding future performance, and strategic initiatives and overall economic factors. The Company evaluates indefinite-lived intangible assets for impairment by comparing the estimated fair value of the asset to the carrying value. Fair value is estimated using the income approach based upon current sales projections applying the relief from royalty method. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company evaluates long-lived assets, including finite-lived intangible assets, operating lease assets, and property, plant, and equipment, for recoverability by comparing an estimate of undiscounted future cash flows, derived from internal forecasts, over the remaining life of the primary asset to the carrying amount of the asset group. To the extent the undiscounted future cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its fair value. In fiscal 2023 , long-lived and other intangible assets were analyzed for potential impairment. As a result of the analysis, no impairment charges were recorded. Leases — The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842 "Leases." The Company determines whether an arrangement contains a lease at contract inception based on whether the arrangement provides the Company with the right to direct the use of and the right to obtain substantially all of the economic benefits from an identified asset in exchange for consideration. The Company recognizes a right-of-use ("ROU") asset and lease liability for its lease commitments with initial terms greater than one year. The initial measurement of ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the expected lease term. The ROU asset also includes any lease payments made on or before the commencement date, initial direct costs incurred, and is reduced by any lease incentives received. Some of the Company’s leases include options to extend the lease agreement, of which the exercise is at the Company’s sole discretion. The majority of renewal options are not included in the calculation of ROU assets and liabilities as they are not reasonably certain to be exercised. Some of the Company's lease agreements include rental payments that are adjusted periodically for inflation or the change in an index or rate. These variable lease payments are generally excluded from the initial measurement of the ROU asset and lease liability and are recognized in the period in which the obligation for those payments is incurred. The Company has lease agreements that include both lease and non-lease components, which the Company elected to account for as a single lease component. The Company determines the present value of future lease payments using its incremental borrowing rate, as the discount rate implicit within the Company’s leases generally cannot be readily determined. The incremental borrowing rate is estimated based on the sovereign credit rating for the countries in which the Company has its largest operations, adjusted for several factors, such as internal credit spread, lease terms, and other market information available at the lease commencement date. As of July 31, 2023, all leases are accounted for as operating leases, with lease expense being recognized on a straight-line basis over the lease term. Operating leases are reflected in “Operating lease assets,” “Current operating lease liabilities,” and “Long-term operating lease liabilities” in the accompanying Consolidated Balance Sheets. Operating lease expense is recognized in either cost of goods sold or selling, general, and administrative expenses in the Consolidated Statements of Income, based on the nature of the lease. ROU assets are evaluated for impairment in the same manner as long-lived assets. No impairment charges were recognized related to operating lease assets during the year ended July 31, 2023. Revenue Recognition — The majority of the Company’s revenue relates to the sale of identification solutions and workplace safety products to customers. The Company accounts for revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers." Revenue is recognized when control of the product or service transfers to the customer in an amount that represents the consideration expected to be received in exchange for those products and services. The Company considers control to have transferred when legal title, physical possession, and the significant risks and rewards of ownership of the asset have transferred to the customer and the collection of the transaction price is reasonably assured, most of which occur upon shipment or delivery of goods to customers. Given the nature of the Company’s business, revenue recognition practices do not contain estimates that materially affect the results of operations, with the exception of estimated customer returns and credit memos. The Company records an allowance for estimated product returns and credit memos using the expected value method based on historical experience, which is recognized as a deduction from net sales at the time of sale. As of July 31, 2023 and 2022, the Company had a reserve for estimated product returns and credit memos of $4,801 and $4,415, respectively. Sales Incentives — The Company accounts for cash consideration (such as sales incentives, rebates, and cash discounts) given to its customers or resellers as a reduction of revenue. Sales incentives for the years ended July 31, 2023, 2022, and 2021 were $53,867, $50,265, and $38,876, respectively. Shipping and Handling Costs — Shipping and handling fees billed to a customer in a sale transaction are reported as net sales and the related costs incurred for shipping and handling are reported in cost of goods sold. Advertising Costs — Advertising costs are expensed as incurred. Advertising expense for the years ended July 31, 2023, 2022, and 2021 was $53,591, $55,568, and $54,370, respectively. Stock-Based 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, net of estimated forfeitures, of all share-based awards 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 generally 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. Refer to No te 7, “Stockholders' Equity” for more information regarding the Company’s incentive stock plans. Research and Development — Amounts expended for research and development are expensed as incurred. Other Comprehensive Income — Other comprehensive income consists of net unrealized gains and losses from cash flow hedges, the unamortized gain on defined-benefit pension plans net of their related tax effects, and foreign currency translation adjustments, which includes the impact of foreign currency translations, the settlements of net investment hedges, and long-term intercompany loan translation adjustments. Foreign Currency Translation — The assets and liabilities of subsidiaries whose functional currency is a currency other than the U.S. dollar are translated into U.S. 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 foreign currency translation adjustments are included in other comprehensive income. Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes." Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the currently enacted tax laws and rates applicable to the periods in which the differences are expected to be realized or settled. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The Company recognizes the benefit of income tax positions only if those positions are more likely than not to be sustained upon examination by the tax authority. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. Fair Value of Financial Instruments — The Company believes that the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities) approximates fair value due to the short-term nature of these instruments. Refer to Note 6, "Debt" for more information regarding the fair value of long-term debt and Note 13, "Fair Value Measurements" for information regarding fair value measurements. 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 income effect of the hedged item. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Gains and losses resulting from changes in fair value of the derivatives designated as hedges are recorded as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income and are reclassified into the same income statement line item in the period or periods during which the hedged transaction affects income. Refer to Note 14, "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. New Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities (e.g. deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers” as if the acquirer had originated the contracts. The guidance is applied prospectively to acquisitions occurring on or after the effective date. The Company early adopted ASU No. 2021-08 during the quarter ended October 31, 2022. The adoption of the new standard will only have an impact on the Company's consolidated financial statements in the event of future acquisitions. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2023 and 2022, were as follows: IDS WPS Americas & Asia Europe & Australia Total Balance as of July 31, 2021 $ 578,935 $ 35,202 $ — $ — $ 614,137 Working capital adjustment (693) — — — (693) Translation adjustments (22,091) (4,521) — — (26,612) Balance as of July 31, 2022 $ 556,151 $ 30,681 $ — $ — $ 586,832 Translation adjustments 3,319 625 1,079 2,745 7,768 Reallocation due to change in segments (559,470) (31,306) 442,290 148,486 — Divestiture of business — — (1,954) — (1,954) Balance as of July 31, 2023 $ — $ — $ 441,415 $ 151,231 $ 592,646 Effective February 1, 2023, the Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. Prior to February 1, 2023, the Company was organized and managed on a global basis within two business platforms: IDS and WPS. As a result, goodwill was allocated to the new reportable segments in accordance with ASC 350, "Intangibles - Goodwill and Other." Refer to Note 10, "Segment Information," and Management's Discussion and Analysis for additional information regarding the Company's segment change. Goodwill increased $5,814 during the year ended July 31, 2023 mainly due to the positive effects of foreign currency translation, which was partially offset by a reduction due to the sale of our PremiSys business within the Americas & Asia segment. Goodwill declined $27,305 during the year ended July 31, 2022 mainly due to the negative effects of foreign currency translation. In addition, the final working capital adjustment from the acquisition of Code decreased the goodwill balance by $693. The annual impairment testing performed on May 1, 2023, in accordance with ASC 350, “Intangibles - Goodwill and Other” indicated that all of the reporting units with goodwill (North America, Europe and Latin America) had a fair value substantially in excess of its carrying value. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Other Intangible Assets Other intangible assets include customer relationships, tradenames, and technology with finite lives being amortized in accordance with the accounting guidance for other intangible assets. The Company also has unamortized indefinite-lived tradenames that are classified as other intangible assets. Other intangible assets as of July 31, 2023 and 2022 consisted of the following: July 31, 2023 July 31, 2022 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: Tradenames 3 $ 1,114 $ (947) $ 167 3 $ 1,749 $ (1,014) $ 735 Customer relationships 9 64,513 (15,947) 48,566 9 105,404 (48,428) 56,976 Technology 5 9,313 (4,235) 5,078 5 9,136 (2,241) 6,895 Unamortized other intangible assets: Tradenames N/A 8,285 — 8,285 N/A 9,422 — 9,422 Total $ 83,225 $ (21,129) $ 62,096 $ 125,711 $ (51,683) $ 74,028 The decrease in the gross carrying amount of amortized other intangible assets as of July 31, 2023 compared to July 31, 2022 was primarily due to the removal of a fully amortized customer relationship intangible asset as the period of economic benefit related to this asset had lapsed. |
Leases
Leases | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, warehouses and office space, computer equipment, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of July 31, 2023 and 2022, the Company did not have any finance leases. Short-term lease expense, variable lease expenses, and sublease income were immaterial to the Consolidated Statements of Income for the year ended July 31, 2023. The following table summarizes lease expense recognized during the years ended July 31, 2023, 2022 and 2021: Consolidated Statements of Income Location July 31, 2023 July 31, 2022 July 31, 2021 Operating lease cost Cost of goods sold $ 6,589 $ 7,893 $ 8,268 Operating lease cost Selling, general, and administrative expenses 9,424 9,822 8,625 The following table summarizes the maturity of the Company's lease liabilities as of July 31, 2023: Years ending July 31, Operating Leases 2024 $ 15,696 2025 10,503 2026 4,627 2027 885 2028 211 Thereafter 789 Total lease payments $ 32,711 Less: interest (1,768) Present value of lease liabilities $ 30,943 The weighted average remaining lease terms and discount rates for the Company's operating leases as of July 31, 2023 and 2022 were as follows: July 31, 2023 July 31, 2022 Weighted average remaining lease term (in years) 2.6 2.7 Weighted average discount rate 4.3 % 3.9 % Supplemental cash flow information related to the Company's operating leases during the years ended July 31, 2023 and 2022 were as follows: 2023 2022 Operating cash outflows from operating leases $ 17,739 $ 19,005 Operating lease assets obtained in exchange for new operating lease liabilities (1) 12,583 7,607 (1) Includes new leases and remeasurements or modifications of existing leases. The Company evaluates right-of-use assets for impairment in the same manner as long-lived assets. No impairment charges were recorded during the years ended July 31, 2023, 2022 or 2021. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit PlansThe 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 Plan is unfunded, and the liability, unrecognized gain , and associated income statement impact are immaterial. The current portion and non-current portion of the liabilities for postretirement medical benefits are included in “Other current liabilities” and “Other liabilities," respectively, on the accompanying Consolidated Balance Sheets as of July 31, 2023 and 2022. The unrecognized gain is reported as a component of AOCI. 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. The Company has an additional 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 for participation in a qualified 401(k) plan. Deferred compensation of $18,288 and $18,043 was included in "Other liabilities" in the accompanying Consolidated Balance Sheets as of July 31, 2023 and 2022, respectively. 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 plan, based on income of the respective companies and employee contributions. Accrued retirement and profit-sharing contributions of $3,717 and $3,644 were included in "Other current liabilities" in the accompanying Consolidated Balance Sheets as of July 31, 2023 and 2022, respectively. The amounts charged to expense for these retirement and profit sharing plans were $15,089, $15,063, and $13,246 during the years ended July 31, 2023, 2022 and 2021, respectively. |
Debt
Debt | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On August 1, 2019, the Company and certain of its subsidiaries entered into an unsecured $200 million multi-currency credit agreement with a group of five banks. On December 21, 2021, the Company and certain of its subsidiaries entered into an amendment to the credit agreement dated August 1, 2019. The amendment modified the credit agreement to, among other things, (a) change the interest rate under the credit agreement for borrowings (i) denominated in British Pounds from the London Inter-bank Offered Rate ("LIBOR") to a daily simple SONIA-based rate, (ii) denominated in Euro from a LIBOR-based rate to a rate based on the Euro Interbank Offered Rate and (iii) denominated in Japanese Yen from a LIBOR-based rate to a rate based on the Tokyo Interbank Offered Rate, in each of the foregoing cases subject to certain adjustments specified in the credit agreement; and (b) provide mechanics relating to a transition away from U.S. dollar LIBOR (with respect to borrowings denominated in U.S. dollars) and the designated benchmarks for the other eligible currencies as benchmark interest rates and the replacement of any such benchmark by a replacement benchmark rate. The amendment to the credit agreement did not have a material impact on the interest rate or related balances in the Company's consolidated financial statements. On November 14, 2022, the Company and certain of its subsidiaries entered into a Second Amendment to Credit Agreement (“Amendment No. 2”) with a group of six banks, which amended the original credit agreement dated August 1, 2019. Amendment No. 2 amended the credit agreement to, among other items, (a) increase the lending commitments by $100 million for total lending commitments of $300 million, (b) extend the final maturity date to November 14, 2027, (c) increase the interest rate on certain borrowings by 0.125%, and (d) increase the available amount under the credit agreement, at the Company's option and subject to certain conditions, from $300 million up to (i) an amount equal to the incremental borrowing necessary to bring the Company's consolidated net debt-to-EBITDA ratio as defined in the credit agreement to 2.5 to 1.0 plus (ii) $200 million. Borrowings under Amendment No. 2 are unsecured and are guaranteed by certain of the Company's domestic subsidiaries. As of July 31, 2023, the outstanding balance on the credit agreement was $49.7 million. The maximum amount outstanding on the credit agreement during the year ended July 31, 2023 was $103.0 million. As of July 31, 2023, there was $248.3 million available for future borrowing, which can be increased to $1,068.3 million at the Company's option, subject to certain conditions. The credit agreement has a final maturity date of November 14, 2027. As such, borrowings are classified as long-term on the Consolidated Balance Sheets. The Company’s credit agreement requires it to maintain certain financial covenants, including a ratio of debt to trailing twelve months EBITDA, as defined in the agreement, of not more than a 3.5 to 1.0 ratio (leverage ratio) and trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage ratio). As of July 31, 2023, the Company was in compliance with these financial covenants, with a ratio of debt to EBITDA, as defined by the agreements, equal to 0.18 to 1.0 and the interest expense coverage ratio equal to 76.2 to 1.0. As of July 31, 2023 and 2022, borrowings on the credit agreement were as follows: July 31, 2023 July 31, 2022 Amount Outstanding (thousands) Weighted Average Interest Rate Amount Outstanding (thousands) Weighted Average Interest Rate USD-denominated borrowing $ 13,000 6.3 % $ 95,000 2.7 % British Pound-denominated borrowing £ 8,000 5.8 % £ — — % Euro-denominated borrowing € 24,000 4.4 % € — — % Due to the variable interest rate pricing of the Company's revolving debt, it is determined that the carrying value of the debt equals the fair value of the debt. The Company had outstanding letters of credit of $1,995 and $1,643 at July 31, 2023 and 2022, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholder's Equity | Stockholders' Equity Information as to the Company’s capital stock as of July 31, 2023 and 2022 was as follows: July 31, 2023 July 31, 2022 Shares Authorized Shares Issued Amount (thousands) Shares Authorized Shares Issued Amount (thousands) Preferred Stock, $.01 par value 5,000,000 5,000,000 Cumulative Preferred Stock: 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 $0.01665 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 $0.8333 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 $0.8333 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’ equity during the years ended July 31, 2023, 2022, and 2021: Deferred Compensation Shares Held in Rabbi Trust, at cost Total Balances at July 31, 2020 $ 9,339 $ (9,339) $ — Shares at July 31, 2020 292,329 292,329 Sale of shares at cost $ (277) $ 277 $ — Purchase of shares at cost 1,472 (1,472) — Balances at July 31, 2021 $ 10,534 $ (10,534) $ — Shares at July 31, 2021 315,916 315,916 Sale of shares at cost $ (721) $ 721 $ — Purchase of shares at cost 1,242 (1,242) — Balances at July 31, 2022 $ 11,055 $ (11,055) $ — Shares at July 31, 2022 318,285 318,285 Sale of shares at cost $ (739) $ 739 $ — Purchase of shares at cost 1,067 (1,067) — Balances at July 31, 2023 $ 11,383 $ (11,383) $ — Shares at July 31, 2023 318,198 318,198 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 into other investment funds. Neither plan allows funds to be transferred between the Company's Class A Nonvoting Common Stock and the other investment funds. At July 31, 2023, the deferred compensation balance in stockholders’ equity 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"), performance-based restricted stock units ("PRSUs"), 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 majority of the Company’s annual share-based awards are granted in the first quarter of the fiscal year. As of July 31, 2023, the Company has reserved 1,744,099 shares of Class A Nonvoting Common Stock for outstanding stock options and RSUs and 2,477,505 shares of Class A Nonvoting Common Stock remain for future issuance of stock options 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 during the years ended July 31, 2023, 2022, and 2021, was $7,508, $10,504, and $10,098, respectively. The total income tax benefit recognized in the consolidated statements of income was $1,497, $507 and $555 during the years ended July 31, 2023, 2022, and 2021, respectively. 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 The Company has estimated the fair value of its time-based stock option awards granted during the years ended July 31, 2023, 2022, and 2021, 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 2023 2022 2021 Expected term (in years) 5.71 6.23 6.21 Expected volatility 29.64 % 30.04 % 30.71 % Expected dividend yield 2.01 % 2.26 % 2.49 % Risk-free interest rate 3.66 % 1.27 % 0.38 % The following is a summary of stock option activity for the year ended July 31, 2023: Time-Based Options Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of July 31, 2022 1,591,525 $ 41.57 Granted 158,416 43.82 Exercised (125,800) 35.60 Forfeited (77,358) 46.16 Outstanding as of July 31, 2023 1,546,783 $ 42.05 5.8 $ 14,787 Exercisable as of July 31, 2023 1,201,223 41.08 5.1 $ 12,783 The following table summarizes additional stock option information: 2023 2022 2021 Weighted-average fair value of options granted during the period $ 12.14 $ 11.55 $ 8.65 Intrinsic value of options exercised during the period (in thousands) 1,822 4,269 1,477 Fair value of options vested during the period (in thousands) 3,384 2,446 2,371 Cash received from the exercise of stock options during the period (in thousands) 4,091 1,082 1,765 Tax benefit on options exercised during the period (in thousands) 455 1,067 369 As of July 31, 2023, total unrecognized compensation cost related to options that are expected to vest was $1,192 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 1.9 years. RSUs RSUs issued under the plan have a grant date fair value equal to the market price of the Company's stock at the date of grant and generally vest ratably over three years, with one-third vesting one year after the grant date and one-third additional in each of the succeeding two years. The following tables summarize the RSU activity during the year ended July 31, 2023: RSUs Shares Weighted Average Grant Date Non-vested RSUs as of July 31, 2022 173,230 $ 47.45 Granted 68,624 45.22 Vested (83,155) 47.25 Forfeited (24,831) 46.81 Non-vested RSUs as of July 31, 2023 133,868 $ 46.55 The RSUs granted during the years ended July 31, 2022 and 2021, had a weighted-average grant-date fair value of $48.96 and $40.82, respectively. The total fair value of time-based RSUs vested during the years ended July 31, 2023, 2022 and 2021, was $3,734, $3,669, and $2,894, respectively. As of July 31, 2023, total unrecognized compensation cost related to RSUs that are expected to vest was $2,511 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 1.9 years. PRSUs PRSUs are contingent on the achievement of predetermined market and performance targets. The PRSUs granted under the plan vest at the end of a three The PRSUs granted during the year ended July 31, 2023 had a fair value determined by a third-party valuation utilizing a Monte Carlo simulation for the portion of the grant with a market value condition and the portion of the grant with a performance condition had a fair value determined by the average of the high and low stock price on the date of grant. Monte Carlo Valuation Assumptions 2023 2022 2021 Expected volatility 34.8 % 34.7 % 32.6 % Risk-free interest rate 2.8 % 0.3 % 0.1 % The following tables summarize the PRSU activity during the year ended July 31, 2023: PRSUs Shares Weighted Average Grant Date Non-vested PRSUs as of July 31, 2022 79,134 $ 66.79 Granted 44,110 55.77 Vested (18,959) 75.00 Forfeited (40,837) 64.12 Non-vested PRSUs as of July 31, 2023 63,448 $ 58.39 The PRSUs granted during the year ended July 31, 2022 and 2021, had a weighted-average grant-date fair value of $61.76 and $60.73, respectively. The total fair value of PRSUs vested during the years ended July 31, 2023, 2022 and 2021, was $889, $4,098, and $3,273, respectively. As of July 31, 2023, total unrecognized compensation cost related to PRSUs that are expected to vest was $1,236 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.0 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Other comprehensive loss consists of foreign currency translation adjustments which includes net investment hedges and long-term intercompany loan translation adjustments, unrealized gains from cash flow hedges, and the unamortized gain on post-retirement 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 on cash flow hedges Unamortized gain on postretirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Ending balance, July 31, 2021 $ 729 $ 1,888 $ (58,570) $ (55,953) Other comprehensive income (loss) before reclassification 907 326 (52,897) (51,664) Amounts reclassified from accumulated other comprehensive loss (682) (778) — (1,460) Ending balance, July 31, 2022 $ 954 $ 1,436 $ (111,467) $ (109,077) Other comprehensive income (loss) before reclassification 2,292 (352) 16,009 17,949 Amounts reclassified from accumulated other comprehensive loss (1,605) (328) — (1,933) Ending balance, July 31, 2023 $ 1,641 $ 756 $ (95,458) $ (93,061) The decrease in accumulated other comprehensive loss as of July 31, 2023 compared to July 31, 2022 was primarily due to the depreciation of the U.S. dollar against certain other currencies during the fiscal year. Of the amounts reclassified from accumulated other comprehensive loss during the years ended July 31, 2023 and 2022, unrealized gains on cash flow hedges were reclassified into "Cost of goods sold" and net unamortized gains on post-retirement plans were reclassified into "Investment and other income" on the Consolidated Statements of Income. The following table illustrates the income tax benefit (expense) on the components of other comprehensive (loss) income: Years Ended July 31, 2023 2022 2021 Income tax benefit (expense) related to items of other comprehensive income (loss): Cash flow hedges $ 147 $ (148) $ (123) Pension and other post-retirement benefits 202 167 95 Other income tax adjustments and currency translation — 505 (378) Income tax benefit (expense) related to items of other comprehensive income (loss) $ 349 $ 524 $ (406) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jul. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the product or service transfers to the customer at an amount that represents the consideration expected to be received in exchange for those products and services. Nature of Products The Company’s revenues are primarily from the sale of identification solutions and workplace safety products that are shipped and billed to customers. All revenue is from contracts with customers and is included in “Net sales” on the Consolidated Statements of Income. See Note 10 “Segment Information” for the Company’s disaggregated revenue disclosure. Performance Obligations The Company’s contracts with customers consist of purchase orders, which in some cases are governed by master supply or distributor agreements. For each contract, the Company considers the commitment to transfer tangible products, which are generally capable of being distinct, to be separate performance obligations. The majority of the Company's revenue is earned and recognized at a point in time through ship-and-bill performance obligations where the customer typically obtains control of the product upon shipment or delivery, depending on freight terms. The Company considers control to have transferred if legal title, physical possession, and the significant risks and rewards of ownership of the asset have transferred to the customer and the Company has a present right to payment. In almost all cases, control transfers once a product is shipped or delivered, as this is when the customer is able to direct and obtain substantially all of the remaining benefits associated with use of the asset. Transaction Price and Variable Consideration Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for the transfer of product to a customer. The transaction price is generally the price stated in the contract specific for each item sold, adjusted for all applicable variable considerations. Variable consideration generally includes discounts, returns, credits, rebates, or other allowances that reduce the transaction price. Certain discounts and price assurances are fixed and known at the time of sale. The Company estimates the amount of variable consideration and reduces the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The expected value method is used to estimate expected returns and allowances based on historical experience. The most likely amount method is used to estimate customer rebates, which are offered retrospectively and typically defined in the master supply or distributor agreement. Payment Terms While the Company’s standard payment terms are net 30 days, the specific payment terms and conditions in its contracts with customers vary by type and location of the customer. Cash discounts may be offered to certain customers. The Company has payment terms in its contracts with customers of less than one year, and therefore, does not recognize the time value of money or any financing component of such contracts. Warranties The Company offers standard warranty coverage on substantially all products which provides the customer with assurance that the product will function as intended. This standard warranty coverage is accounted for as an assurance warranty and is not considered to be a separate performance obligation. The Company records a liability for product warranty obligations at the time of sale based on historical warranty experience that is included in cost of goods sold. The Company also offers extended warranty coverage for certain products, which it accounts for as service warranties. In most cases, the extended service warranty is included in the sales price of the product and is not sold separately. The Company considers the extended service warranty to be a separate performance obligation and allocates a portion of the transaction price to the service warranty based on the estimated stand-alone selling price. At the time of sale, the extended warranty transaction price is recorded as deferred revenue on the Consolidated Balance Sheets and is recognized on a straight-line basis over the life of the service warranty period. The deferred revenue is considered a contract liability as the Company has a right to payment at the time the product with the related extended service warranty is shipped or delivered and therefore, payment is received in advance of the Company's performance. Contract Balances The balance of contract liabilities associated with service warranty performance obligations was $2,757 and $2,675 as of July 31, 2023 and 2022, respectively. This also represents the amount of unsatisfied performance obligations related to contracts that extend beyond one year. The current portion and non-current portion of contract liabilities are included in “Other current liabilities” and “Other liabilities," respectively, on the accompanying Consolidated Balance Sheets. During the year ended July 31, 2023, the Company recognized revenue of $1,244 that was included in the contract liability balance at the beginning of the period from the amortization of extended service warranties. Of the contract liability balance outstanding at July 31, 2023, the Company expects to recognize 41% by the end of fiscal 2024, an additional 27% by the end of fiscal 2025, and the balance thereafter. Costs of Obtaining a Contract The Company expenses incremental direct costs of obtaining a contract (e.g., sales commissions) when incurred because the amortization period is generally twelve months or less. Contract costs are included in "Selling, general and administrative expense" on the Consolidated Statements of Income. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Effective February 1, 2023, the Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. Prior to February 1, 2023, the Company was organized and managed on a global basis within three operating segments: Identification Solutions and People Identification (“PDC”), which aggregated into the IDS reportable segment, and Workplace Safety, which was the WPS reportable segment. As such, all segment-related data has been recast to the new reportable segments. The Company evaluates short-term segment performance based on segment profit and customer sales. Gain or loss on sale of businesses, interest expense, investment and other income, income taxes, equity in losses of unconsolidated affiliate, and certain corporate administrative expenses are excluded when evaluating segment performance. The following is a summary of segment information as of and for the years ended July 31, 2023, 2022 and 2021: 2023 2022 2021 Net sales: Americas & Asia: Americas $ 787,426 $ 750,391 $ 635,714 Asia 101,431 110,693 99,868 Total $ 888,857 $ 861,084 $ 735,582 Europe & Australia: Europe 387,743 388,618 355,096 Australia 55,263 52,360 54,020 Total $ 443,006 $ 440,978 $ 409,116 Total Company $ 1,331,863 $ 1,302,062 $ 1,144,698 Depreciation & amortization: Americas & Asia $ 25,269 $ 26,950 $ 20,649 Europe & Australia 7,101 7,232 4,834 Total Company $ 32,370 $ 34,182 $ 25,483 Segment profit: Americas & Asia $ 180,503 $ 157,307 $ 136,635 Europe & Australia 65,742 63,058 55,357 Total Company $ 246,245 $ 220,365 $ 191,992 Assets: Americas & Asia $ 829,562 $ 868,922 $ 829,278 Europe & Australia 408,163 384,341 401,143 Corporate 151,532 114,069 147,335 Total Company $ 1,389,257 $ 1,367,332 $ 1,377,756 Expenditures for property, plant & equipment: Americas & Asia $ 13,256 $ 24,051 $ 20,344 Europe & Australia 5,970 19,087 6,845 Total Company $ 19,226 $ 43,138 $ 27,189 The following is a reconciliation of segment profit to income before income taxes and losses of unconsolidated affiliate for the years ended July 31, 2023, 2022 and 2021: Years Ended July 31, 2023 2022 2021 Total profit from reportable segments $ 246,245 $ 220,365 $ 191,992 Unallocated costs: Administrative costs (24,802) (27,353) (24,865) Gain on sale of business 3,770 — — Investment and other income 4,022 244 4,333 Interest expense (3,539) (1,276) (437) Income before income taxes and losses of unconsolidated affiliate $ 225,696 $ 191,980 $ 171,023 The following is a summary of sales by business platform for the years ended July 31, 2023, 2022 and 2021: Years Ended July 31, 2023 2022 2021 IDS $ 1,045,891 $ 1,010,883 $ 841,508 WPS 285,972 291,179 303,190 Total Company $ 1,331,863 $ 1,302,062 $ 1,144,698 The following is a summary of sales and long-lived assets by geographic region for the years ended July 31, 2023, 2022 and 2021: Revenues* Long-Lived Assets** 2023 2022 2021 2023 2022 2021 Geographic information: United States $ 790,596 $ 764,930 $ 642,268 $ 524,258 $ 543,187 $ 560,405 Other 610,553 613,433 565,956 302,321 288,477 309,686 Eliminations (69,286) (76,301) (63,526) — — — Consolidated total $ 1,331,863 $ 1,302,062 $ 1,144,698 $ 826,579 $ 831,664 $ 870,091 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant and equipment, goodwill, other intangible assets, and operating lease assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes and losses of unconsolidated affiliate consists of the following: Years Ended July 31, 2023 2022 2021 United States $ 92,053 $ 92,985 $ 59,504 Other Nations 133,643 98,995 111,519 Total $ 225,696 $ 191,980 $ 171,023 The increase in income before income taxes and losses of unconsolidated affiliates in Other Nations to $133,643 in fiscal 2023 from $98,995 in fiscal 2022 was primarily due to intercompany royalty payments to the United States that occurred in fiscal 2022 which reduced Other Nations income before income taxes and losses of unconsolidated affiliate by $32,857. The decrease in income before income taxes and losses of unconsolidated affiliate in Other Nations to $98,995 in fiscal 2022 from $111,519 in fiscal 2021 was primarily due to intercompany royalty payments to the United States that occurred in fiscal 2022 which reduced Other Nations income before income taxes and losses of unconsolidated affiliate by $32,857. This was partially offset by improved profitability in Other Nations in fiscal 2022 compared to fiscal 2021. Income tax expense consists of the following: Years Ended July 31, 2023 2022 2021 Current income tax expense: United States $ 26,324 $ 8,639 $ 16,322 Other Nations 31,093 31,851 26,141 States (U.S.) 5,894 3,156 2,112 $ 63,311 $ 43,646 $ 44,575 Deferred income tax (benefit) expense: United States $ (10,577) $ 970 $ (2,662) Other Nations 251 (2,377) (5,938) States (U.S.) (2,146) (238) (365) $ (12,472) $ (1,645) $ (8,965) Total income tax expense $ 50,839 $ 42,001 $ 35,610 The tax effects of temporary differences are as follows as of July 31, 2023 and 2022: July 31, 2023 Assets Liabilities Total Inventories $ 8,526 $ (64) $ 8,462 Employee compensation and benefits 8,556 — 8,556 Accounts receivable 2,202 — 2,202 Fixed assets 3,118 (9,238) (6,120) Intangible assets 760 (49,267) (48,507) Capitalized R&D expenditures 9,986 — 9,986 Deferred and equity-based compensation 9,937 — 9,937 Postretirement benefits 2,683 (100) 2,583 Tax credit and net operating loss carry-forwards 51,387 — 51,387 Valuation allowances (52,750) — (52,750) Other, net 19,826 (4,798) 15,028 Total $ 64,231 $ (63,467) $ 764 July 31, 2022 Assets Liabilities Total Inventories $ 8,112 $ (54) $ 8,058 Employee compensation and benefits 8,146 — 8,146 Accounts receivable 2,105 — 2,105 Fixed assets 3,177 (9,618) (6,441) Intangible assets 859 (50,095) (49,236) Deferred and equity-based compensation 9,221 — 9,221 Postretirement benefits 2,301 — 2,301 Tax credit and net operating loss carry-forwards 49,006 — 49,006 Valuation allowances (47,276) — (47,276) Other, net 17,919 (5,226) 12,693 Total $ 53,570 $ (64,993) $ (11,423) Tax credit carry-forwards as of July 31, 2023 consist of the following: • Foreign net operating loss carry-forwards of $95,141, of which $76,902 have no expiration date and the remainder of which expire from fiscal 2024 to fiscal 2040. • State net operating loss carry-forwards of $22,424, which expire in fiscal 2032. • Foreign tax credit carry-forwards of $20,153, which expire from fiscal 2024 to fiscal 2033. • State credit carry-forwards of $13,151, which expire from fiscal 2024 to fiscal 2038. Rate Reconciliation A reconciliation of the income tax rate computed by applying the statutory U.S. federal income tax rate to income before income taxes and losses of unconsolidated affiliate to the total income tax expense is as follows: Years Ended July 31, 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % International rate differential (1) 1.7 % 4.2 % 2.3 % Adjustments to tax accruals and reserves 0.2 % (0.1) % 3.3 % Research and development tax credits (1.3) % (1.6) % (1.6) % Valuation allowance against foreign tax credits and foreign net operating loss carry-forwards 1.2 % (1.2) % (4.8) % Deferred tax and other adjustments, net (0.3) % (0.4) % 0.6 % Income tax rate 22.5 % 21.9 % 20.8 % (1) Represents the foreign income tax rate differential when compared to the U.S. statutory income tax rate for the years ended July 31, 2023, 2022, and 2021. 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 as of July 31, 2020 $ 13,622 Additions based on tax positions related to the current year 4,664 Additions for tax positions of prior years (1) 3,940 Reductions for tax positions of prior years (365) Lapse of statute of limitations (159) Cumulative translation adjustments and other 210 Balance as of July 31, 2021 $ 21,912 Additions based on tax positions related to the current year 3,233 Additions for tax positions of prior years 435 Reductions for tax positions of prior years (122) Lapse of statute of limitations (3,226) Settlements with tax authorities (1,129) Cumulative translation adjustments and other (539) Balance as of July 31, 2022 $ 20,564 Additions based on tax positions related to the current year 2,902 Additions for tax positions of prior years 792 Reductions for tax positions of prior years (19) Lapse of statute of limitations (2,682) Settlements with tax authorities (782) Cumulative translation adjustments and other 124 Balance as of July 31, 2023 $ 20,899 (1) Includes acquisitions. Of the $20,899 of unrecognized tax benefits, if recognized, $17,811 would affect the Company's income tax rate. The Company has classified $17,587 and $17,689, excluding interest and penalties, of the reserve for uncertain tax positions in "Other liabilities" on the Consolidated Balance Sheets as of July 31, 2023 and 2022, respectively. The Company has classified $3,312 and $2,875, excluding interest and penalties, as a reduction of long-term deferred income tax assets on the accompanying Consolidated Balance Sheets as of July 31, 2023 and 2022, 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 interest expense of $700, $701, and $596 on the reserve for uncertain tax positions during the years ended July 31, 2023, 2022, and 2021, respectively. The Company also recognized benefits and (expenses) related to penalties of $281, $82, and ($595) during the years ended July 31, 2023, 2022, and 2021, respectively. These amounts are net of reversals due to reductions for tax positions of prior years, statute of limitations, and settlements. At July 31, 2023 and 2022, the Company had $3,581 and $2,878, 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, 2023 and 2022, the Company had $1,674 and $1,925, 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 Income. The Company estimates that it is reasonably possible that the unrecognized tax benefits may be reduced by $2,608 during the year ending July 31, 2023 as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or the expiration of statute of limitations, all of which, if recognized, would result in an income tax benefit in the Consolidated Statements of Income. During the year ended July 31, 2023, the Company recognized $3,771 of tax benefits (including interest and penalties) associated with the lapse of statutes of limitations. The Company and its subsidiaries file income tax returns in the U.S., various states, 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’20 — F’23 |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings per Common Share | Net Income per Common 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, 2023 2022 2021 Numerator (in thousands): Net Income (Numerator for basic and diluted income per Class A Nonvoting Common Share) $ 174,857 $ 149,979 $ 129,659 Less: Preferential dividends (769) (803) (807) Preferential dividends on dilutive stock options (3) (8) (5) Numerator for basic and diluted income per Class B Voting Common Share $ 174,085 $ 149,168 $ 128,847 Denominator (in thousands): Denominator for basic income per share for both Class A and Class B 49,591 51,321 52,039 Plus: Effect of dilutive equity awards 278 330 370 Denominator for diluted income per share for both Class A and Class B 49,869 51,651 52,409 Net income per Class A Nonvoting Common Share: Basic $ 3.53 $ 2.92 $ 2.49 Diluted $ 3.51 $ 2.90 $ 2.47 Net income per Class B Voting Common Share: Basic $ 3.51 $ 2.91 $ 2.48 Diluted $ 3.49 $ 2.89 $ 2.46 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with fair value accounting guidance, the Company determines fair value based on the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The inputs used to measure fair value are classified into the following hierarchy: Level 1 — Unadjusted quoted prices in active markets for identical instruments that are accessible as of the reporting date. Level 2 — Other significant pricing inputs that are either directly or indirectly observable. Level 3 — Significant unobservable pricing inputs, which result in the use of management's own assumptions. The following table summarizes the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2023 and July 31, 2022, according to the valuation techniques the Company used to determine their fair values. July 31, 2023 July 31, 2022 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 18,288 $ 18,037 Level 1 Foreign exchange contracts 492 489 Level 2 Liabilities: Foreign exchange contracts $ 189 $ 32 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Deferred compensation plan assets : The Company’s deferred compensation investments consist of investments in mutual funds, which are included in "Other assets" on the accompanying Consolidated Balance Sheets. These investments were classified as Level 1 as the shares of these investments trade with sufficient frequency and volume to enable us 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 14 , “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 years ended July 31, 2023 and July 31, 2022. See Note 6 for information regarding the fair value of the Company's long-term debt. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities 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, 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. Main foreign currency exposures are related to transactions denominated in the British Pound, 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. The U.S. dollar equivalent notional amounts of outstanding forward exchange contracts were as follows as of July 31, 2023 and 2022: July 31, 2023 July 31, 2022 Designated as cash flow hedges $ 39,661 $ 25,276 Non-designated hedges 4,803 4,057 Total foreign exchange contracts $ 44,464 $ 29,333 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 on the accompanying Consolidated Balance Sheets. For these instruments, the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into income in the same period or periods during which the hedged transaction affects income. At July 31, 2023 and 2022, unrealized gains of $1,580 and $1,040 have been included in AOCI, respectively. Net Investment Hedges The Company has designated certain third party foreign currency denominated debt borrowed under its credit agreement as net investment hedges. These debt obligations, denominated in Euros and British Pounds, were designated as net investment hedges to hedge portions of the Company's net investment in its European operations. The Company’s foreign currency denominated debt obligations are valued under a market approach using publicized spot prices, and the net gains or losses attributable to the changes in spot prices are recorded as cumulative translation within AOCI and are included in the foreign currency translation adjustments section of the consolidated statements of comprehensive income. As of July 31, 2023 and July 31, 2022, the cumulative balance recognized in accumulated other comprehensive income were losses of $1,746 and $0, respectively, on any outstanding foreign currency denominated debt obligations. The following table summarizes the amount of pre-tax gains and losses related to derivatives designated as hedging instruments: July 31, 2023 July 31, 2022 July 31, 2021 Gains (losses) recognized in OCI: Forward exchange contracts (cash flow hedges) $ 2,680 $ 1,282 $ 1,451 Foreign currency denominated debt (net investment hedges) (1,746) — — Gains reclassified from OCI into cost of goods sold: Forward exchange contracts (cash flow hedges) 2,140 909 399 Fair values of derivative and hedging instruments in the accompanying Consolidated Balance Sheets were as follows: July 31, 2023 July 31, 2022 Prepaid expenses and other current assets Other current liabilities Long-term obligations Prepaid expenses and other current assets Other current liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (cash flow hedges) $ 485 $ 189 $ — $ 489 $ 30 Foreign currency denominated debt (net investment hedges) — — 36,716 — — Derivatives not designated as hedging instruments: Foreign exchange contracts (non-designated hedges) 7 — — — 2 Total derivative instruments $ 492 $ 189 $ 36,716 $ 489 $ 32 |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The Company did not complete any business acquisitions during the years ended July 31, 2023 and 2022 and completed three business acquisitions during the year ended July 31, 2021. All of these transactions were accounted for using business combination accounting. The results of the operations of the acquired businesses have been included since the date of acquisition in the accompanying consolidated financial statements. Fiscal 2021 On May 21, 2021, the Company acquired Magicard Holdings Limited (“Magicard”), based in Weymouth, United Kingdom, for $56,694, net of cash received. Magicard is a manufacturer of identification card printers with high-resolution, full-color image capabilities, built-in security features and the ability to encode smart cards. Magicard was initially included in the Company’s IDS segment. As a result of the regional reorganization effective February 1, 2023, Magicard operates within both of our reportable segments. On May 21, 2021, the Company acquired Nordic ID Oyj (“Nordic ID”), based in Salo, Finland for $9,804 plus the assumption of debt of $4,668. Nordic ID specializes in RFID readers, scanners, and the associated software to power track-and-trace applications in industrial manufacturing. Nordic ID was initially included in the Company’s IDS segment. As a result of the regional reorganization effective February 1, 2023, Nordic ID operates within both of our reportable segments. On June 16, 2021, the Company acquired The Code Corporation (“Code”), based in Salt Lake City, Utah, for $172,815, net of cash received. Code specializes in high-quality barcode scanners and the associated software to power track and trace applications in a variety of industries. Code was initially included in the Company’s IDS segment. As a result of the regional reorganization effective February 1, 2023, Code operates within both of our reportable segments. Acquisition-related expenses of $3,164 were recognized in SG&A during the year ended July 31, 2021. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ContingenciesIn the normal course of business, the Company is subject to a variety of investigations, claims, suits, and other legal proceedings, including but not limited to, intellectual property, employment, unclaimed property, tort, and breach of contract matters. Any legal proceedings are subject to inherent uncertainties, and these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated. The Company currently believes that the outcomes of such proceedings will not have a material adverse impact on its business, financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On September 4, 2023, the Company announced an increase in the annual dividend to shareholders of the Company's Class A Common Stock, from $0.92 to $0.94 per share. A quarterly dividend of $0.235 will be paid on October 31, 2023, to shareholders of record at the close of business on October 10, 2023. This dividend represents an increase of 2.2% and is the 38th consecutive annual increase in dividends. On August 30, 2023, the Company's Board of Directors authorized an increase in the Company's share repurchase program, authorizing the repurchase of an additional $100.0 million of the Company's Class A Nonvoting Common Stock. The share repurchase program may be implemented from time to time on the open market or in privately negotiated transactions and has no expiration date. The repurchased shares will be available for use in connection with the Company's stock-based plans and for other corporate purposes. |
Schedule II Valuation of Qualif
Schedule II Valuation of Qualifying Accounts | 12 Months Ended |
Jul. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Year ended July 31, Description 2023 2022 2021 (Dollars in thousands) Valuation accounts deducted in balance sheet from assets to which they apply — Accounts receivable — allowance for credit losses: Balances at beginning of period $ 7,355 $ 7,306 $ 7,157 Additions — Due to acquired businesses — — 388 Additions — Charged to expense 1,433 859 803 Deductions — Bad debts written off, net of recoveries (321) (810) (1,042) Balances at end of period $ 8,467 $ 7,355 $ 7,306 Inventory — Reserve for slow-moving inventory: Balances at beginning of period $ 29,877 $ 23,009 $ 16,309 Additions — Due to acquired businesses — — 2,957 Additions — Charged to expense 9,580 10,198 4,908 Deductions — Inventory write-offs (3,602) (3,330) (1,165) Balances at end of period $ 35,855 $ 29,877 $ 23,009 Valuation allowances against deferred tax assets: Balances at beginning of period $ 47,276 $ 51,069 $ 58,809 Additions — Due to acquired businesses — — 1,351 Additions — Charged to expense 5,852 48 4,168 Deductions — Valuation allowances reversed/utilized (378) (3,841) (13,259) Balances at end of period $ 52,750 $ 47,276 $ 51,069 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Pay vs Performance Disclosure | |||
Pay vs Performance Disclosure, Table | Pay Versus Performance Table (1) (2) Summary Compensation Table Total for PEO ($) Compensation Actually Paid to PEO ($) (3) Avg. Summary Compensation Table total for non-PEO NEOs ($) Avg. Compensation Actually Paid to non-PEO NEOs ($) (3) Value of Initial Fixed $100 Investment Based On: Net Income (in thousands) Operating Income (in thousands) Year Russell R. Shaller J. Michael Nauman Russell R. Shaller J. Michael Nauman Total Shareholder Return ($) (4) Peer Group Total Shareholder Return ($) (4) 2023 $ 3,242,497 $ — $ 3,538,707 $ — $ 1,451,355 $ 1,168,258 $ 119 $ 179 $ 174,857 $ 225,213 2022 3,968,554 5,196,015 3,495,286 1,943,107 1,033,900 737,420 108 151 149,979 193,012 2021 — 6,006,185 — 7,053,521 1,454,883 1,664,845 121 151 129,659 167,127 | ||
Company Selected Measure Name | Operating Income | ||
Named Executive Officers, Footnote | The Company's non-PEO NEOs for each fiscal year were as follows: 2023: Ann E. Thornton, Olivier Bojarski, Bentley N. Curran, Andrew T. Gorman, Pascal Deman, and Aaron J. Pearce 2022: Aaron J. Pearce, Bentley N. Curran, Pascal Deman, Andrew T. Gorman, and Helena R. Nelligan 2021: Aaron J. Pearce, Bentley N. Curran, Helena R. Nelligan, and Russell R. Shaller | ||
Peer Group Issuers, Footnote | The Peer Group TSR set forth in this table utilizes the S&P SmallCap 600 Industrials Index, which we also utilize in the stock performance graph required by Item 201(e) of Regulation S-K included in Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities above. The comparison assumes $100 was invested for the period starting July 31, 2019, through the end of the listed year in the Company and in the S&P SmallCap 600 Industrials Index, respectively. Historical stock performance is not necessarily indicative of future stock performance. | ||
Adjustment To PEO Compensation, Footnote | Reconciliation of PEO SCT Total to CAP Reconciliation Year PEO Name SCT Total Less: Reported Value of Equity Awards (1) Plus: Equity Award Adjustments (2) CAP to PEO 2023 Russell R. Shaller $ 3,242,497 $ 1,164,390 $ 1,460,600 $ 3,538,707 2022 Russell R. Shaller 3,968,554 2,608,892 2,135,624 3,495,286 2022 J. Michael Nauman 5,196,015 3,319,962 67,054 1,943,107 2021 J. Michael Nauman 6,006,185 3,303,853 4,351,189 7,053,521 (1) The reported value of equity awards represents the grant date fair value of equity-based awards granted each year. The total of the amounts reported in this column are the totals from the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for each applicable year. (2) The equity award adjustments reflects the value of equity calculated in accordance with the SEC methodology for determining CAP for each year shown. These equity award adjustments are set forth in the PEO Equity Award Adjustments table below. For the equity values included in the below table, the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of the grant. PEO Equity Award Adjustments Year PEO Name Fair Value of Outstanding and Unvested Equity Awards Granted in the Year Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year Fair Value of Awards Granted in Prior Years that were Forfeited During the Year Incremental Fair Value of Awards Modified During the Year Equity Award Adjustments 2023 Russell R. Shaller $ 1,097,234 $ 278,966 $ 84,400 $ — $ — $ 1,460,600 2022 Russell R. Shaller 2,561,417 (326,071) (99,722) — — 2,135,624 2022 J. Michael Nauman 1,854,533 (1,058,794) (385,483) (343,202) — 67,054 2021 J. Michael Nauman 4,429,964 286,408 (365,183) — — 4,351,189 | ||
Non-PEO NEO Average Total Compensation Amount | $ 1,451,355 | $ 1,033,900 | $ 1,454,883 |
Non-PEO NEO Average Compensation Actually Paid Amount | $ 1,168,258 | 737,420 | 1,664,845 |
Adjustment to Non-PEO NEO Compensation Footnote | Reconciliation of non-PEO NEOs (average) SCT Total to CAP Reconciliation Year SCT Total Less: Reported Value of Equity Awards (1) Plus: Equity Award Adjustments (2) CAP to NEO (average) 2023 $ 1,451,355 $ 660,855 $ 377,758 $ 1,168,258 2022 1,033,900 381,363 84,883 737,420 2021 1,454,883 571,339 781,301 1,664,845 (1) The reported value of equity awards represents the grant date fair value of equity-based awards granted each year. The total of the amounts reported in this column are the totals from the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for each applicable year. (2) The equity award adjustments reflects the value of equity calculated in accordance with the SEC methodology for determining CAP for each year shown. These equity award adjustments are set forth in the PEO Equity Award Adjustments table below. For the equity values included in the below table, the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of the grant. Non-PEO NEOs (average) Equity Award Adjustments Year Fair Value of Outstanding and Unvested Equity Awards Granted in the Year Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year Fair Value of Awards Granted in Prior Years that were Forfeited During the Year Incremental Fair Value of Awards Modified During the Year Equity Award Adjustments 2023 $ 217,810 $ 12,409 $ (8,435) $ (108,981) $ 264,955 $ 377,758 2022 307,242 (128,663) (50,433) (43,263) — 84,883 2021 766,068 86,768 (71,535) — — 781,301 | ||
Compensation Actually Paid vs. Total Shareholder Return | Description of Relationship Between NEO CAP and Company TSR The following chart sets forth the relationship between CAP to our PEO, the average of CAP to our other NEOs, and the Company’s cumulative TSR over the three-year period from fiscal 2021 through fiscal 2023. | ||
Compensation Actually Paid vs. Net Income | Description of Relationship Between NEO CAP and Net Income The following chart sets forth the relationship between CAP to our PEO, the average of CAP to our other NEOs, and our net income during fiscal 2021 through 2023. | ||
Compensation Actually Paid vs. Company Selected Measure | Description of Relationship Between NEO CAP and Operating Income The following chart sets forth the relationship between CAP to our PEO, the average of CAP to our other NEOs, and our operating income during fiscal 2021 through 2023. | ||
Total Shareholder Return Vs Peer Group | Description of Relationship Between Company TSR and Peer Group TSR The following chart compares our cumulative TSR over the three-year period from 2020 through 2022 to that of the S&P SmallCap 600 Industrials Index. | ||
Tabular List, Table | Most Important Performance Measures Operating Income Organic Sales Growth Total Shareholder Return Earnings Per Share | ||
Total Shareholder Return Amount | $ 119 | 108 | 121 |
Peer Group Total Shareholder Return Amount | 179 | 151 | 151 |
Net income | $ 174,857,000 | $ 149,979,000 | $ 129,659,000 |
Company Selected Measure Amount | 225,213,000 | 193,012,000 | 167,127,000 |
Measure:: 1 | |||
Pay vs Performance Disclosure | |||
Name | Operating Income | ||
Measure:: 2 | |||
Pay vs Performance Disclosure | |||
Name | Organic Sales Growth | ||
Measure:: 3 | |||
Pay vs Performance Disclosure | |||
Name | Total Shareholder Return | ||
Measure:: 4 | |||
Pay vs Performance Disclosure | |||
Name | Earnings Per Share | ||
Russell R. Shaller [Member] | |||
Pay vs Performance Disclosure | |||
PEO Total Compensation Amount | $ 3,242,497 | $ 3,968,554 | $ 0 |
PEO Actually Paid Compensation Amount | $ 3,538,707 | 3,495,286 | 0 |
PEO Name | Russell R. Shaller | ||
J. Michael Nauman [Member] | |||
Pay vs Performance Disclosure | |||
PEO Total Compensation Amount | $ 0 | 5,196,015 | 6,006,185 |
PEO Actually Paid Compensation Amount | $ 0 | 1,943,107 | 7,053,521 |
PEO Name | J. Michael Nauman | ||
PEO | Russell R. Shaller [Member] | Reported Value of Equity Awards [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | $ 1,164,390 | 2,608,892 | |
PEO | Russell R. Shaller [Member] | Equity Award Adjustments [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | 1,460,600 | 2,135,624 | |
PEO | J. Michael Nauman [Member] | Reported Value of Equity Awards [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | 3,319,962 | 3,303,853 | |
PEO | J. Michael Nauman [Member] | Equity Award Adjustments [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | 67,054 | 4,351,189 | |
Non-PEO NEO | Reported Value of Equity Awards [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | 660,855 | 381,363 | 571,339 |
Non-PEO NEO | Equity Award Adjustments [Member] | |||
Pay vs Performance Disclosure | |||
Adjustment to Compensation, Amount | $ 377,758 | $ 84,883 | $ 781,301 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | 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 | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Brady Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions between consolidated subsidiaries have been eliminated in consolidation. |
Use of Estimates | Use of Estimates — The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Acquisitions | Acquisitions — The Company recognizes assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisition-related costs are expensed as incurred and changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period are recorded in income tax expense. |
Cash Equivalents | Cash Equivalents — The Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk — The Company places temporary cash investments with global financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of its financial institutions and limits the amount of credit exposure with any one financial institution. In addition, the Company has a broad customer base representing many diverse industries throughout the globe. Consequently, no significant concentration of credit risk is considered to exist. |
Accounts Receivables | Accounts Receivable — The Company's policy for estimating the allowance for credit losses on accounts receivables considers several factors including historical loss experience, the age of delinquent receivable balances due, and economic conditions. Specific customer reserves are made during review of significant outstanding balances due, in which customer creditworthiness and current economic trends may indicate that it is probable the receivable will not be recovered. Accounts receivable are written off after collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in SG&A expense. |
Equity Method Investment | Equity Method Investment — The equity method of accounting is applied to investments in which the Company has significant influence over the operating and financial decisions of the investee. The Company evaluates its equity method investments each reporting period for evidence of a loss in value that is other than a temporary decline. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. The Company performed this analysis and concluded that its investment in React Mobile, Inc. was other-than-temporarily impaired and recognized an impairment charge of $4,994 for the Company's remaining equity interest in React Mobile, Inc. during the year ended July 31, 2021. |
Inventories | Inventories — Inventories are stated at the lower of cost or net realizable value and include material, labor, and overhead. Cost has been determined using the last-in, first-out (“LIFO”) method for certain inventories in the U.S. (9.6% of total inventories at July 31, 2023, and 13.3% of total inventories at July 31, 2022) and the first-in, first-out (“FIFO”) or average cost methods for all 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 $11,312 and $9,900 as of July 31, 2023 and 2022, respectively. Inventories consist of the following as of July 31: 2023 2022 Finished products $ 103,350 $ 112,323 Work-in-process 26,884 29,272 Raw materials and supplies 46,844 48,428 Total inventories $ 177,078 $ 190,023 |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the respective asset. The estimated useful lives range from 3 to 33 years as shown below. Property, plant and equipment consist of the following as of July 31: Range of Useful Lives 2023 2022 Land $ 12,273 $ 11,916 Buildings and improvements 10 to 33 Years 130,004 123,619 Machinery and equipment 3 to 10 Years 282,870 268,527 Construction in progress 9,682 7,825 Property, plant and equipment—gross 434,829 411,887 Accumulated depreciation (292,680) (272,376) Property, plant and equipment—net $ 142,149 $ 139,511 |
Goodwill, Other Intangible and Long-Lived Assets | Goodwill — The Company evaluates the carrying amount of goodwill annually or more frequently if events or changes in circumstances have occurred that indicate the goodwill might be impaired. The Company completes impairment reviews for its reporting units using a fair-value method based on management's judgments and assumptions. When performing its annual impairment assessment, the Company evaluates the recoverability of goodwill assigned to each of its reporting units by comparing the estimated fair value of the respective reporting unit to the carrying value, including goodwill. The Company estimates fair value utilizing the income approach and the market approach. The income approach requires management to make a number of assumptions and estimates for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows, working capital levels, income tax rates, and a weighted-average cost of capital reflecting the specific risk profile of the respective reporting unit. The market approach estimates fair value using performance multiples of comparable publicly-traded compa nies. In the event the fair value of a reporting unit is less than the carrying value, including goodwill, an impairment loss, if any, is recognized for the difference between the implied fair value and the carrying value of the reporting unit's goodwill. The annual impairment testing performed on May 1, 2023, indicated that all reporting units with goodwill had a fair value substantially in excess of its carrying value. No goodwill impairment charges were recognized during the year ended July 31, 2023. Other Intangible and Long-Lived Assets — Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives to reflect the pattern of economic benefits consumed. Intangible assets with indefinite lives as well as goodwill are not subject to amortization. These assets are assessed for impairment on an annual basis or more frequently if events or changes in circumstances have occurred that indicate the asset may not be recoverable or that the remaining estimated useful life may warrant revision. In addition, the Company performs qualitative assessments on a quarterly basis of significant events and circumstances, such as historical and current results, assumptions regarding future performance, and strategic initiatives and overall economic factors. The Company evaluates indefinite-lived intangible assets for impairment by comparing the estimated fair value of the asset to the carrying value. Fair value is estimated using the income approach based upon current sales projections applying the relief from royalty method. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company evaluates long-lived assets, including finite-lived intangible assets, operating lease assets, and property, plant, and equipment, for recoverability by comparing an estimate of undiscounted future cash flows, derived from internal forecasts, over the remaining life of the primary asset to the carrying amount of the asset group. To the extent the undiscounted future cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its fair value. In fiscal 2023 |
Leases | Leases — The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842 "Leases." The Company determines whether an arrangement contains a lease at contract inception based on whether the arrangement provides the Company with the right to direct the use of and the right to obtain substantially all of the economic benefits from an identified asset in exchange for consideration. The Company recognizes a right-of-use ("ROU") asset and lease liability for its lease commitments with initial terms greater than one year. The initial measurement of ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the expected lease term. The ROU asset also includes any lease payments made on or before the commencement date, initial direct costs incurred, and is reduced by any lease incentives received. Some of the Company’s leases include options to extend the lease agreement, of which the exercise is at the Company’s sole discretion. The majority of renewal options are not included in the calculation of ROU assets and liabilities as they are not reasonably certain to be exercised. Some of the Company's lease agreements include rental payments that are adjusted periodically for inflation or the change in an index or rate. These variable lease payments are generally excluded from the initial measurement of the ROU asset and lease liability and are recognized in the period in which the obligation for those payments is incurred. The Company has lease agreements that include both lease and non-lease components, which the Company elected to account for as a single lease component. The Company determines the present value of future lease payments using its incremental borrowing rate, as the discount rate implicit within the Company’s leases generally cannot be readily determined. The incremental borrowing rate is estimated based on the sovereign credit rating for the countries in which the Company has its largest operations, adjusted for several factors, such as internal credit spread, lease terms, and other market information available at the lease commencement date. As of July 31, 2023, all leases are accounted for as operating leases, with lease expense being recognized on a straight-line basis over the lease term. Operating leases are reflected in “Operating lease assets,” “Current operating lease liabilities,” and “Long-term operating lease liabilities” in the accompanying Consolidated Balance Sheets. Operating lease expense is recognized in either cost of goods sold or selling, general, and administrative expenses in the Consolidated Statements of Income, based on the nature of the lease. ROU assets are evaluated for impairment in the same manner as long-lived assets. No impairment charges were recognized related to operating lease assets during the year ended July 31, 2023. |
Revenue Recongition | Revenue Recognition — The majority of the Company’s revenue relates to the sale of identification solutions and workplace safety products to customers. The Company accounts for revenue in accordance with ASC Topic 606 "Revenue from Contracts with Customers." |
Shipping and Handling Costs | Shipping and Handling Costs — Shipping and handling fees billed to a customer in a sale transaction are reported as net sales and the related costs incurred for shipping and handling are reported in cost of goods sold. |
Advertising Costs | Advertising Costs — Advertising costs are expensed as incurred. Advertising expense for the years ended July 31, 2023, 2022, and 2021 was $53,591, $55,568, and $54,370, respectively. |
Stock-Based Compensation | Stock-Based 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, net of estimated forfeitures, of all share-based awards 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 generally 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. Refer to No te 7, “Stockholders' Equity” for more information regarding the Company’s incentive stock plans. |
Research and Development | Research and Development — Amounts expended for research and development are expensed as incurred. |
Other Comprehensive Income | Other Comprehensive Income — |
Foreign Currency Translation | Foreign Currency Translation — The assets and liabilities of subsidiaries whose functional currency is a currency other than the U.S. dollar are translated into U.S. 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 foreign currency translation adjustments are included in other comprehensive income. |
Income Taxes | Income Taxes — The Company accounts for income taxes in accordance with ASC 740 "Income Taxes." Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the currently enacted tax laws and rates applicable to the periods in which the differences are expected to be realized or settled. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The Company recognizes the benefit of income tax positions only if those positions are more likely than not to be sustained upon examination by the tax authority. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company believes that the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities) approximates fair value due to the short-term nature of these instruments. Refer to Note 6, "Debt" for more information regarding the fair value of long-term debt and Note 13, "Fair Value Measurements" for information regarding fair value measurements. |
Foreign Currency Hedging | 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 income effect of the hedged item. The Company recognizes derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. Gains and losses resulting from changes in fair value of the derivatives designated as hedges are recorded as a component of Accumulated Other Comprehensive Income ("AOCI") in the accompanying Consolidated Balance Sheets and in the Consolidated Statements of Comprehensive Income and are reclassified into the same income statement line item in the period or periods during which the hedged transaction affects income. Refer to Note 14, "Derivatives and Hedging Activities" for more information regarding the Company’s derivative instruments and hedging activities. |
New Accounting Standards | New Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities (e.g. deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers” as if the acquirer had originated the contracts. The guidance is applied prospectively to acquisitions occurring on or after the effective date. The Company early adopted ASU No. 2021-08 during the quarter ended October 31, 2022. The adoption of the new standard will only have an impact on the Company's consolidated financial statements in the event of future acquisitions. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Inventories (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | Inventories consist of the following as of July 31: 2023 2022 Finished products $ 103,350 $ 112,323 Work-in-process 26,884 29,272 Raw materials and supplies 46,844 48,428 Total inventories $ 177,078 $ 190,023 |
Property, Plant and Equipment | Property, plant and equipment consist of the following as of July 31: Range of Useful Lives 2023 2022 Land $ 12,273 $ 11,916 Buildings and improvements 10 to 33 Years 130,004 123,619 Machinery and equipment 3 to 10 Years 282,870 268,527 Construction in progress 9,682 7,825 Property, plant and equipment—gross 434,829 411,887 Accumulated depreciation (292,680) (272,376) Property, plant and equipment—net $ 142,149 $ 139,511 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2023 and 2022, were as follows: IDS WPS Americas & Asia Europe & Australia Total Balance as of July 31, 2021 $ 578,935 $ 35,202 $ — $ — $ 614,137 Working capital adjustment (693) — — — (693) Translation adjustments (22,091) (4,521) — — (26,612) Balance as of July 31, 2022 $ 556,151 $ 30,681 $ — $ — $ 586,832 Translation adjustments 3,319 625 1,079 2,745 7,768 Reallocation due to change in segments (559,470) (31,306) 442,290 148,486 — Divestiture of business — — (1,954) — (1,954) Balance as of July 31, 2023 $ — $ — $ 441,415 $ 151,231 $ 592,646 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Other intangible assets as of July 31, 2023 and 2022 consisted of the following: July 31, 2023 July 31, 2022 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: Tradenames 3 $ 1,114 $ (947) $ 167 3 $ 1,749 $ (1,014) $ 735 Customer relationships 9 64,513 (15,947) 48,566 9 105,404 (48,428) 56,976 Technology 5 9,313 (4,235) 5,078 5 9,136 (2,241) 6,895 Unamortized other intangible assets: Tradenames N/A 8,285 — 8,285 N/A 9,422 — 9,422 Total $ 83,225 $ (21,129) $ 62,096 $ 125,711 $ (51,683) $ 74,028 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table summarizes lease expense recognized during the years ended July 31, 2023, 2022 and 2021: Consolidated Statements of Income Location July 31, 2023 July 31, 2022 July 31, 2021 Operating lease cost Cost of goods sold $ 6,589 $ 7,893 $ 8,268 Operating lease cost Selling, general, and administrative expenses 9,424 9,822 8,625 |
Schedule of Lessee Operating Lease Liability Maturity | The following table summarizes the maturity of the Company's lease liabilities as of July 31, 2023: Years ending July 31, Operating Leases 2024 $ 15,696 2025 10,503 2026 4,627 2027 885 2028 211 Thereafter 789 Total lease payments $ 32,711 Less: interest (1,768) Present value of lease liabilities $ 30,943 |
Schedule of Weighted-Average Lease | The weighted average remaining lease terms and discount rates for the Company's operating leases as of July 31, 2023 and 2022 were as follows: July 31, 2023 July 31, 2022 Weighted average remaining lease term (in years) 2.6 2.7 Weighted average discount rate 4.3 % 3.9 % |
Schedule of Supplemental Cash Flow Information - Leases | Supplemental cash flow information related to the Company's operating leases during the years ended July 31, 2023 and 2022 were as follows: 2023 2022 Operating cash outflows from operating leases $ 17,739 $ 19,005 Operating lease assets obtained in exchange for new operating lease liabilities (1) 12,583 7,607 (1) Includes new leases and remeasurements or modifications of existing leases. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | As of July 31, 2023 and 2022, borrowings on the credit agreement were as follows: July 31, 2023 July 31, 2022 Amount Outstanding (thousands) Weighted Average Interest Rate Amount Outstanding (thousands) Weighted Average Interest Rate USD-denominated borrowing $ 13,000 6.3 % $ 95,000 2.7 % British Pound-denominated borrowing £ 8,000 5.8 % £ — — % Euro-denominated borrowing € 24,000 4.4 % € — — % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Capital Stock | Information as to the Company’s capital stock as of July 31, 2023 and 2022 was as follows: July 31, 2023 July 31, 2022 Shares Authorized Shares Issued Amount (thousands) Shares Authorized Shares Issued Amount (thousands) Preferred Stock, $.01 par value 5,000,000 5,000,000 Cumulative Preferred Stock: 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' Equity | The following is a summary of other activity in stockholders’ equity during the years ended July 31, 2023, 2022, and 2021: Deferred Compensation Shares Held in Rabbi Trust, at cost Total Balances at July 31, 2020 $ 9,339 $ (9,339) $ — Shares at July 31, 2020 292,329 292,329 Sale of shares at cost $ (277) $ 277 $ — Purchase of shares at cost 1,472 (1,472) — Balances at July 31, 2021 $ 10,534 $ (10,534) $ — Shares at July 31, 2021 315,916 315,916 Sale of shares at cost $ (721) $ 721 $ — Purchase of shares at cost 1,242 (1,242) — Balances at July 31, 2022 $ 11,055 $ (11,055) $ — Shares at July 31, 2022 318,285 318,285 Sale of shares at cost $ (739) $ 739 $ — Purchase of shares at cost 1,067 (1,067) — Balances at July 31, 2023 $ 11,383 $ (11,383) $ — Shares at July 31, 2023 318,198 318,198 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table: Black-Scholes Option Valuation Assumptions 2023 2022 2021 Expected term (in years) 5.71 6.23 6.21 Expected volatility 29.64 % 30.04 % 30.71 % Expected dividend yield 2.01 % 2.26 % 2.49 % Risk-free interest rate 3.66 % 1.27 % 0.38 % |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the year ended July 31, 2023: Time-Based Options Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of July 31, 2022 1,591,525 $ 41.57 Granted 158,416 43.82 Exercised (125,800) 35.60 Forfeited (77,358) 46.16 Outstanding as of July 31, 2023 1,546,783 $ 42.05 5.8 $ 14,787 Exercisable as of July 31, 2023 1,201,223 41.08 5.1 $ 12,783 The following table summarizes additional stock option information: 2023 2022 2021 Weighted-average fair value of options granted during the period $ 12.14 $ 11.55 $ 8.65 Intrinsic value of options exercised during the period (in thousands) 1,822 4,269 1,477 Fair value of options vested during the period (in thousands) 3,384 2,446 2,371 Cash received from the exercise of stock options during the period (in thousands) 4,091 1,082 1,765 Tax benefit on options exercised during the period (in thousands) 455 1,067 369 |
Schedule of RSU Activity | The following tables summarize the RSU activity during the year ended July 31, 2023: RSUs Shares Weighted Average Grant Date Non-vested RSUs as of July 31, 2022 173,230 $ 47.45 Granted 68,624 45.22 Vested (83,155) 47.25 Forfeited (24,831) 46.81 Non-vested RSUs as of July 31, 2023 133,868 $ 46.55 |
Schedule of Share-Based Payment Award, Performance Shares, Valuation Assumptions | The PRSUs granted during the year ended July 31, 2023 had a fair value determined by a third-party valuation utilizing a Monte Carlo simulation for the portion of the grant with a market value condition and the portion of the grant with a performance condition had a fair value determined by the average of the high and low stock price on the date of grant. Monte Carlo Valuation Assumptions 2023 2022 2021 Expected volatility 34.8 % 34.7 % 32.6 % Risk-free interest rate 2.8 % 0.3 % 0.1 % |
Schedule of PRSU Activity | The following tables summarize the PRSU activity during the year ended July 31, 2023: PRSUs Shares Weighted Average Grant Date Non-vested PRSUs as of July 31, 2022 79,134 $ 66.79 Granted 44,110 55.77 Vested (18,959) 75.00 Forfeited (40,837) 64.12 Non-vested PRSUs as of July 31, 2023 63,448 $ 58.39 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | 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 on cash flow hedges Unamortized gain on postretirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Ending balance, July 31, 2021 $ 729 $ 1,888 $ (58,570) $ (55,953) Other comprehensive income (loss) before reclassification 907 326 (52,897) (51,664) Amounts reclassified from accumulated other comprehensive loss (682) (778) — (1,460) Ending balance, July 31, 2022 $ 954 $ 1,436 $ (111,467) $ (109,077) Other comprehensive income (loss) before reclassification 2,292 (352) 16,009 17,949 Amounts reclassified from accumulated other comprehensive loss (1,605) (328) — (1,933) Ending balance, July 31, 2023 $ 1,641 $ 756 $ (95,458) $ (93,061) |
Schedule of Other Comprehensive Income, Tax | The following table illustrates the income tax benefit (expense) on the components of other comprehensive (loss) income: Years Ended July 31, 2023 2022 2021 Income tax benefit (expense) related to items of other comprehensive income (loss): Cash flow hedges $ 147 $ (148) $ (123) Pension and other post-retirement benefits 202 167 95 Other income tax adjustments and currency translation — 505 (378) Income tax benefit (expense) related to items of other comprehensive income (loss) $ 349 $ 524 $ (406) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | The following is a summary of segment information as of and for the years ended July 31, 2023, 2022 and 2021: 2023 2022 2021 Net sales: Americas & Asia: Americas $ 787,426 $ 750,391 $ 635,714 Asia 101,431 110,693 99,868 Total $ 888,857 $ 861,084 $ 735,582 Europe & Australia: Europe 387,743 388,618 355,096 Australia 55,263 52,360 54,020 Total $ 443,006 $ 440,978 $ 409,116 Total Company $ 1,331,863 $ 1,302,062 $ 1,144,698 Depreciation & amortization: Americas & Asia $ 25,269 $ 26,950 $ 20,649 Europe & Australia 7,101 7,232 4,834 Total Company $ 32,370 $ 34,182 $ 25,483 Segment profit: Americas & Asia $ 180,503 $ 157,307 $ 136,635 Europe & Australia 65,742 63,058 55,357 Total Company $ 246,245 $ 220,365 $ 191,992 Assets: Americas & Asia $ 829,562 $ 868,922 $ 829,278 Europe & Australia 408,163 384,341 401,143 Corporate 151,532 114,069 147,335 Total Company $ 1,389,257 $ 1,367,332 $ 1,377,756 Expenditures for property, plant & equipment: Americas & Asia $ 13,256 $ 24,051 $ 20,344 Europe & Australia 5,970 19,087 6,845 Total Company $ 19,226 $ 43,138 $ 27,189 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following is a reconciliation of segment profit to income before income taxes and losses of unconsolidated affiliate for the years ended July 31, 2023, 2022 and 2021: Years Ended July 31, 2023 2022 2021 Total profit from reportable segments $ 246,245 $ 220,365 $ 191,992 Unallocated costs: Administrative costs (24,802) (27,353) (24,865) Gain on sale of business 3,770 — — Investment and other income 4,022 244 4,333 Interest expense (3,539) (1,276) (437) Income before income taxes and losses of unconsolidated affiliate $ 225,696 $ 191,980 $ 171,023 |
Revenue from External Customers by Products and Services | The following is a summary of sales by business platform for the years ended July 31, 2023, 2022 and 2021: Years Ended July 31, 2023 2022 2021 IDS $ 1,045,891 $ 1,010,883 $ 841,508 WPS 285,972 291,179 303,190 Total Company $ 1,331,863 $ 1,302,062 $ 1,144,698 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following is a summary of sales and long-lived assets by geographic region for the years ended July 31, 2023, 2022 and 2021: Revenues* Long-Lived Assets** 2023 2022 2021 2023 2022 2021 Geographic information: United States $ 790,596 $ 764,930 $ 642,268 $ 524,258 $ 543,187 $ 560,405 Other 610,553 613,433 565,956 302,321 288,477 309,686 Eliminations (69,286) (76,301) (63,526) — — — Consolidated total $ 1,331,863 $ 1,302,062 $ 1,144,698 $ 826,579 $ 831,664 $ 870,091 * Revenues are attributed based on country of origin. ** Long-lived assets consist of property, plant and equipment, goodwill, other intangible assets, and operating lease assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Earnings from Continuing Operations | Income before income taxes and losses of unconsolidated affiliate consists of the following: Years Ended July 31, 2023 2022 2021 United States $ 92,053 $ 92,985 $ 59,504 Other Nations 133,643 98,995 111,519 Total $ 225,696 $ 191,980 $ 171,023 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following: Years Ended July 31, 2023 2022 2021 Current income tax expense: United States $ 26,324 $ 8,639 $ 16,322 Other Nations 31,093 31,851 26,141 States (U.S.) 5,894 3,156 2,112 $ 63,311 $ 43,646 $ 44,575 Deferred income tax (benefit) expense: United States $ (10,577) $ 970 $ (2,662) Other Nations 251 (2,377) (5,938) States (U.S.) (2,146) (238) (365) $ (12,472) $ (1,645) $ (8,965) Total income tax expense $ 50,839 $ 42,001 $ 35,610 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences are as follows as of July 31, 2023 and 2022: July 31, 2023 Assets Liabilities Total Inventories $ 8,526 $ (64) $ 8,462 Employee compensation and benefits 8,556 — 8,556 Accounts receivable 2,202 — 2,202 Fixed assets 3,118 (9,238) (6,120) Intangible assets 760 (49,267) (48,507) Capitalized R&D expenditures 9,986 — 9,986 Deferred and equity-based compensation 9,937 — 9,937 Postretirement benefits 2,683 (100) 2,583 Tax credit and net operating loss carry-forwards 51,387 — 51,387 Valuation allowances (52,750) — (52,750) Other, net 19,826 (4,798) 15,028 Total $ 64,231 $ (63,467) $ 764 July 31, 2022 Assets Liabilities Total Inventories $ 8,112 $ (54) $ 8,058 Employee compensation and benefits 8,146 — 8,146 Accounts receivable 2,105 — 2,105 Fixed assets 3,177 (9,618) (6,441) Intangible assets 859 (50,095) (49,236) Deferred and equity-based compensation 9,221 — 9,221 Postretirement benefits 2,301 — 2,301 Tax credit and net operating loss carry-forwards 49,006 — 49,006 Valuation allowances (47,276) — (47,276) Other, net 17,919 (5,226) 12,693 Total $ 53,570 $ (64,993) $ (11,423) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax rate computed by applying the statutory U.S. federal income tax rate to income before income taxes and losses of unconsolidated affiliate to the total income tax expense is as follows: Years Ended July 31, 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % International rate differential (1) 1.7 % 4.2 % 2.3 % Adjustments to tax accruals and reserves 0.2 % (0.1) % 3.3 % Research and development tax credits (1.3) % (1.6) % (1.6) % Valuation allowance against foreign tax credits and foreign net operating loss carry-forwards 1.2 % (1.2) % (4.8) % Deferred tax and other adjustments, net (0.3) % (0.4) % 0.6 % Income tax rate 22.5 % 21.9 % 20.8 % (1) Represents the foreign income tax rate differential when compared to the U.S. statutory income tax rate for the years ended July 31, 2023, 2022, and 2021. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of unrecognized tax benefits (excluding interest and penalties) is as follows: Balance as of July 31, 2020 $ 13,622 Additions based on tax positions related to the current year 4,664 Additions for tax positions of prior years (1) 3,940 Reductions for tax positions of prior years (365) Lapse of statute of limitations (159) Cumulative translation adjustments and other 210 Balance as of July 31, 2021 $ 21,912 Additions based on tax positions related to the current year 3,233 Additions for tax positions of prior years 435 Reductions for tax positions of prior years (122) Lapse of statute of limitations (3,226) Settlements with tax authorities (1,129) Cumulative translation adjustments and other (539) Balance as of July 31, 2022 $ 20,564 Additions based on tax positions related to the current year 2,902 Additions for tax positions of prior years 792 Reductions for tax positions of prior years (19) Lapse of statute of limitations (2,682) Settlements with tax authorities (782) Cumulative translation adjustments and other 124 Balance as of July 31, 2023 $ 20,899 |
Schedule of Open Tax Years by Major Jurisdictions | The following table summarizes the open tax years for the Company's major jurisdictions: Jurisdiction Open Tax Years United States — Federal F’20 — F’23 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
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, 2023 2022 2021 Numerator (in thousands): Net Income (Numerator for basic and diluted income per Class A Nonvoting Common Share) $ 174,857 $ 149,979 $ 129,659 Less: Preferential dividends (769) (803) (807) Preferential dividends on dilutive stock options (3) (8) (5) Numerator for basic and diluted income per Class B Voting Common Share $ 174,085 $ 149,168 $ 128,847 Denominator (in thousands): Denominator for basic income per share for both Class A and Class B 49,591 51,321 52,039 Plus: Effect of dilutive equity awards 278 330 370 Denominator for diluted income per share for both Class A and Class B 49,869 51,651 52,409 Net income per Class A Nonvoting Common Share: Basic $ 3.53 $ 2.92 $ 2.49 Diluted $ 3.51 $ 2.90 $ 2.47 Net income per Class B Voting Common Share: Basic $ 3.51 $ 2.91 $ 2.48 Diluted $ 3.49 $ 2.89 $ 2.46 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis | The following table summarizes the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2023 and July 31, 2022, according to the valuation techniques the Company used to determine their fair values. July 31, 2023 July 31, 2022 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 18,288 $ 18,037 Level 1 Foreign exchange contracts 492 489 Level 2 Liabilities: Foreign exchange contracts $ 189 $ 32 Level 2 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The U.S. dollar equivalent notional amounts of outstanding forward exchange contracts were as follows as of July 31, 2023 and 2022: July 31, 2023 July 31, 2022 Designated as cash flow hedges $ 39,661 $ 25,276 Non-designated hedges 4,803 4,057 Total foreign exchange contracts $ 44,464 $ 29,333 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table summarizes the amount of pre-tax gains and losses related to derivatives designated as hedging instruments: July 31, 2023 July 31, 2022 July 31, 2021 Gains (losses) recognized in OCI: Forward exchange contracts (cash flow hedges) $ 2,680 $ 1,282 $ 1,451 Foreign currency denominated debt (net investment hedges) (1,746) — — Gains reclassified from OCI into cost of goods sold: Forward exchange contracts (cash flow hedges) 2,140 909 399 |
Schedule of the Fair Value by Balance Sheet Grouping | Fair values of derivative and hedging instruments in the accompanying Consolidated Balance Sheets were as follows: July 31, 2023 July 31, 2022 Prepaid expenses and other current assets Other current liabilities Long-term obligations Prepaid expenses and other current assets Other current liabilities Derivatives designated as hedging instruments: Foreign exchange contracts (cash flow hedges) $ 485 $ 189 $ — $ 489 $ 30 Foreign currency denominated debt (net investment hedges) — — 36,716 — — Derivatives not designated as hedging instruments: Foreign exchange contracts (non-designated hedges) 7 — — — 2 Total derivative instruments $ 492 $ 189 $ 36,716 $ 489 $ 32 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Accounting Policies [Abstract] | ||
Finished products | $ 103,350 | $ 112,323 |
Work-in-process | 26,884 | 29,272 |
Raw materials and supplies | 46,844 | 48,428 |
Inventories | $ 177,078 | $ 190,023 |
Percentage of LIFO Inventory | 9.60% | 13.30% |
Inventory, LIFO Reserve, Effect on Income, Net | $ 11,312 | $ 9,900 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 12,273 | $ 11,916 | |
Buildings and improvements | 130,004 | 123,619 | |
Machinery and equipment | 282,870 | 268,527 | |
Construction in progress | 9,682 | 7,825 | |
Property, plant and equipment—gross | 434,829 | 411,887 | |
Accumulated depreciation | (292,680) | (272,376) | |
Property, plant and equipment—net | 142,149 | 139,511 | |
Depreciation | $ 20,631 | $ 19,216 | $ 18,406 |
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 | ||
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 Accoun_6
Summary of Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Accounting Policies [Abstract] | ||
Contract with Customer, Refund Liability | $ 4,801 | $ 4,415 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Sales Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Accounting Policies [Abstract] | |||
Sales Incentives | $ 53,867 | $ 50,265 | $ 38,876 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 53,591 | $ 55,568 | $ 54,370 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 586,832 | $ 614,137 |
Goodwill, Foreign Currency Translation Gain (Loss) | 7,768 | (26,612) |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Purchase Accounting Adjustments | (693) | |
Goodwill, Written off Related to Sale of Business Unit | (1,954) | |
Goodwill, Ending Balance | 592,646 | 586,832 |
Goodwill, Period Increase (Decrease) | $ 5,814 | (27,305) |
Goodwill, Change in Goodwill Allocation, Description | Effective February 1, 2023, the Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. Prior to February 1, 2023, the Company was organized and managed on a global basis within two business platforms: IDS and WPS. As a result, goodwill was allocated to the new reportable segments in accordance with ASC 350, "Intangibles - Goodwill and Other." Refer to Note 10, "Segment Information," and Management's Discussion and Analysis for additional information regarding the Company's segment change. | |
Identification Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 556,151 | 578,935 |
Goodwill, Foreign Currency Translation Gain (Loss) | 3,319 | (22,091) |
Goodwill, Other Increase (Decrease) | (559,470) | |
Goodwill, Purchase Accounting Adjustments | (693) | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Goodwill, Ending Balance | 0 | 556,151 |
Workplace Safety | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 30,681 | 35,202 |
Goodwill, Foreign Currency Translation Gain (Loss) | 625 | (4,521) |
Goodwill, Other Increase (Decrease) | (31,306) | |
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Goodwill, Ending Balance | 0 | 30,681 |
Americas & Asia | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 0 | 0 |
Goodwill, Foreign Currency Translation Gain (Loss) | 1,079 | 0 |
Goodwill, Other Increase (Decrease) | 442,290 | |
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill, Written off Related to Sale of Business Unit | (1,954) | |
Goodwill, Ending Balance | 441,415 | 0 |
Europe & Australia | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 0 | 0 |
Goodwill, Foreign Currency Translation Gain (Loss) | 2,745 | 0 |
Goodwill, Other Increase (Decrease) | 148,486 | |
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Goodwill, Ending Balance | $ 151,231 | $ 0 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 83,225 | $ 125,711 |
Finite-Lived Intangible Assets, Accumulated Amortization | 21,129 | 51,683 |
Intangible Assets, Net (Excluding Goodwill), Total | 62,096 | 74,028 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 8,285 | $ 9,422 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years |
Finite-Lived Intangible Assets, Gross | $ 1,114 | $ 1,749 |
Finite-Lived Intangible Assets, Accumulated Amortization | 947 | 1,014 |
Finite-Lived Intangible Assets, Net | $ 167 | $ 735 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years |
Finite-Lived Intangible Assets, Gross | $ 64,513 | $ 105,404 |
Finite-Lived Intangible Assets, Accumulated Amortization | 15,947 | 48,428 |
Finite-Lived Intangible Assets, Net | $ 48,566 | $ 56,976 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Finite-Lived Intangible Assets, Gross | $ 9,313 | $ 9,136 |
Finite-Lived Intangible Assets, Accumulated Amortization | 4,235 | 2,241 |
Finite-Lived Intangible Assets, Net | $ 5,078 | $ 6,895 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 11,739 | $ 14,966 | $ 7,077 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 9,481 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 9,156 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 8,279 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 7,769 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 7,360 |
Operating Lease Cost (Details)
Operating Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Leased Assets [Line Items] | |||
Operating cash outflows from operating leases | $ 17,739 | $ 19,005 | |
Operating lease assets obtained in exchange for new operating lease liabilities (1) | $ 12,583 | $ 7,607 | |
Weighted average remaining lease term (in years) | 2 years 7 months 6 days | 2 years 8 months 12 days | |
Weighted average discount rate | 4.30% | 3.90% | |
Cost of Sales [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Cost | $ 6,589 | $ 7,893 | $ 8,268 |
Selling, General and Administrative Expenses [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease Cost | $ 9,424 | $ 9,822 | $ 8,625 |
Lease Maturity Disclosure (Deta
Lease Maturity Disclosure (Details) $ in Thousands | Jul. 31, 2023 USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 15,696 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 10,503 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 4,627 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 885 |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 211 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 789 |
Lessee, Operating Lease, Liability, to be Paid | 32,711 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,768) |
Operating Lease, Liability | $ 30,943 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Deferred compensation arrangement with individual, recorded liability | $ 18,288 | $ 18,043 | |
Accrued retirement and profit-sharing contributions | 3,717 | 3,644 | |
Pension and other postretirement benefit expense | $ 15,089 | $ 15,063 | $ 13,246 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) € in Thousands, £ in Thousands, $ in Thousands | Jul. 31, 2023 USD ($) | Jul. 31, 2023 GBP (£) | Jul. 31, 2023 EUR (€) | Jul. 31, 2022 USD ($) | Jul. 31, 2022 GBP (£) | Jul. 31, 2022 EUR (€) |
Line of Credit Facilities [Line Items] | ||||||
Long-term Line of Credit | $ 49,700 | |||||
United States of America, Dollars | ||||||
Line of Credit Facilities [Line Items] | ||||||
Long-term Line of Credit | $ 13,000 | $ 95,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 6.30% | 6.30% | 6.30% | 2.70% | 2.70% | 2.70% |
United Kingdom, Pounds | ||||||
Line of Credit Facilities [Line Items] | ||||||
Long-term Line of Credit | £ | £ 8,000 | £ 0 | ||||
Line of Credit Facility, Interest Rate at Period End | 5.80% | 5.80% | 5.80% | 0% | 0% | 0% |
Euro Member Countries, Euro | ||||||
Line of Credit Facilities [Line Items] | ||||||
Long-term Line of Credit | € | € 24,000 | € 0 | ||||
Line of Credit Facility, Interest Rate at Period End | 4.40% | 4.40% | 4.40% | 0% | 0% | 0% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Line of Credit Facility [Abstract] | ||
Line of credit, current borrowing capacity | $ 300,000 | |
Line of credit, maximum borrowing capacity | 1,068,300 | |
Line of credit facility, maximum amount outstanding during period | 103,000 | |
Line of credit, remaining borrowing capacity | $ 248,300 | |
Debt to EBITDA Ratio | 0.18 to 1.0 | |
Interest Expense Coverage Ratio | 76.2 to 1.0 | |
Letters of credit outstanding | $ 1,995 | $ 1,643 |
Line of Credit Facility, Interest Rate Description | On December 21, 2021, the Company and certain of its subsidiaries entered into an amendment to the credit agreement dated August 1, 2019. The amendment modified the credit agreement to, among other things, (a) change the interest rate under the credit agreement for borrowings (i) denominated in British Pounds from the London Inter-bank Offered Rate ("LIBOR") to a daily simple SONIA-based rate, (ii) denominated in Euro from a LIBOR-based rate to a rate based on the Euro Interbank Offered Rate and (iii) denominated in Japanese Yen from a LIBOR-based rate to a rate based on the Tokyo Interbank Offered Rate, in each of the foregoing cases subject to certain adjustments specified in the credit agreement; and (b) provide mechanics relating to a transition away from U.S. dollar LIBOR (with respect to borrowings denominated in U.S. dollars) and the designated benchmarks for the other eligible currencies as benchmark interest rates and the replacement of any such benchmark by a replacement benchmark rate. The amendment to the credit agreement did not have a material impact on the interest rate or related balances in the Company's consolidated financial statements. |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Class of Stock [Line Items] | ||
Noncumulative Cash Dividend | $ 0.01665 | |
Common Stock, Value, Issued | $ 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 | ||
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 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Other Activity in Stockholders' Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | $ 0 | $ 0 | $ 0 | |
Purchase Of Shares At Cost | 0 | 0 | 0 | |
Ending Balance, Other Stockholders Equity | 0 | 0 | 0 | $ 0 |
Shares Held Rabbi Trust At Cost [Member] | ||||
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | (739) | (721) | (277) | |
Purchase Of Shares At Cost | (1,067) | (1,242) | (1,472) | |
Ending Balance, Other Stockholders Equity | $ (11,383) | $ (11,055) | $ (10,534) | $ (9,339) |
Ending Balance, Other Stockholders Equity Shares | 318,198 | 318,285 | 315,916 | 292,329 |
Deferred Compensation [Member] | ||||
Class of Stock [Line Items] | ||||
Sale Of Shares At Cost | $ (739) | $ (721) | $ (277) | |
Purchase Of Shares At Cost | (1,067) | (1,242) | (1,472) | |
Ending Balance, Other Stockholders Equity | $ 11,383 | $ 11,055 | $ 10,534 | $ 9,339 |
Ending Balance, Other Stockholders Equity Shares | 318,198 | 318,285 | 315,916 | 292,329 |
Stockholders' Equity - Valuatio
Stockholders' Equity - Valuation Assumptions (Details) | 12 Months Ended | ||
Jul. 31, 2023 Rate | Jul. 31, 2022 Rate | Jul. 31, 2021 Rate | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 8 months 15 days | 6 years 2 months 23 days | 6 years 2 months 15 days |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 29.64% | 30.04% | 30.71% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.01% | 2.26% | 2.49% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.66% | 1.27% | 0.38% |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.80% | 34.70% | 32.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.80% | 0.30% | 0.10% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days | ||
Options Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | ||
Options Outstanding, Intrinsic Value | $ 14,787 | ||
Options Exercisable, Intrinsic Value | $ 12,783 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.14 | $ 11.55 | $ 8.65 |
Options, Exercised in Period, Aggregate Intrinsic Value | $ 1,822 | $ 4,269 | $ 1,477 |
Options, Vested in Period, Fair Value | 3,384 | 2,446 | 2,371 |
Options, Exercised in Period, Proceeds from Issuance of Shares | 4,091 | 1,082 | 1,765 |
Options Exercised, Tax Benefit | $ 455 | $ 1,067 | $ 369 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares Outstanding, Beginning Balance | 1,591,525 | ||
Options Granted | 158,416 | ||
Options Exercised | (125,800) | ||
Options Forfeited or Expired | (77,358) | ||
Shares Outstanding, Ending Balance | 1,546,783 | 1,591,525 | |
Options Exercisable | 1,201,223 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 41.57 | ||
Options Granted, Weighted Average Exercise Price | 43.82 | ||
Options Exercised, Weighted Average Exercise Price | 35.60 | ||
Options Forfeited or Expired, Weighted Average Exercise Price | 46.16 | ||
Options Outstanding, Ending Balance, Weighted Average Exercise Price | 42.05 | $ 41.57 | |
Options Exercisable, Weighted Average Exercise Price | $ 41.08 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of RSU and PRSU Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 173,230 | ||
Equity Instruments Other than Options, Grants in Period | 68,624 | ||
Equity Instruments Other than Options, Vested in Period | (83,155) | ||
Equity Instruments Other than Options, Forfeited in Period | (24,831) | ||
Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 133,868 | 173,230 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 47.45 | ||
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 45.22 | $ 48.96 | $ 40.82 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 47.25 | ||
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 46.81 | ||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 46.55 | $ 47.45 | |
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 3,734 | $ 3,669 | $ 2,894 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 79,134 | ||
Equity Instruments Other than Options, Grants in Period | 44,110 | ||
Equity Instruments Other than Options, Vested in Period | (18,959) | ||
Equity Instruments Other than Options, Forfeited in Period | (40,837) | ||
Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 63,448 | 79,134 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 66.79 | ||
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 55.77 | $ 61.76 | $ 60.73 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 75 | ||
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 64.12 | ||
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 58.39 | $ 66.79 | |
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 889 | $ 4,098 | $ 3,273 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
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 | $ 0.8333 | ||
Class A Nonvoting Common Stock Shares Reserved for Outstanding Share-Based Awards | 1,744,099 | ||
Number of Shares Remaining for Future Issuance of Share-Based Awards | 2,477,505 | ||
Share-based Compensation Expense | $ 7,508 | $ 10,504 | $ 10,098 |
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 1,497 | $ 507 | $ 555 |
Stock Option | |||
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% | ||
Award Vesting Period | 3 years | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||
Share-Based Compensation Cost Not yet Recognized | $ 1,192 | ||
Share-Based Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 3 years | ||
Share-Based Compensation Cost Not yet Recognized | $ 2,511 | ||
Share-Based Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 3 years | ||
Share-Based Compensation Cost Not yet Recognized | $ 1,236 | ||
Share-Based Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (109,077) | $ (55,953) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 17,949 | (51,664) |
Amounts reclassified from accumulated other comprehensive loss | (1,933) | 1,460 |
Ending balance | (93,061) | (109,077) |
Unrealized gain (loss) on cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 954 | 729 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2,292 | 907 |
Amounts reclassified from accumulated other comprehensive loss | (1,605) | 682 |
Ending balance | 1,641 | 954 |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (111,467) | (58,570) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 16,009 | (52,897) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (95,458) | (111,467) |
Gain on post-retirement plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,436 | 1,888 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (352) | 326 |
Amounts reclassified from accumulated other comprehensive loss | (328) | 778 |
Ending balance | $ 756 | $ 1,436 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Cash flow hedges | $ 147 | $ (148) | $ (123) |
Pension and other post-retirement benefits | 202 | 167 | 95 |
Other income tax adjustments and currency translation | 0 | (505) | 378 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | $ 349 | $ 524 | $ (406) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2025 | Jul. 31, 2024 | Jul. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Contract with Customer, Liability, Revenue Recognized | $ 1,244 | |||
Contract with Customer, Liability | $ 2,757 | $ 2,675 | ||
Forecast [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Percentage | 27% | 41% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information By Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,331,863 | $ 1,302,062 | $ 1,144,698 |
Depreciation and amortization | 32,370 | 34,182 | 25,483 |
Segment profit | 246,245 | 220,365 | 191,992 |
Assets | 1,389,257 | 1,367,332 | 1,377,756 |
Expenditures for property, plant & equipment | 19,226 | 43,138 | 27,189 |
Americas & Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 888,857 | 861,084 | 735,582 |
Depreciation and amortization | 25,269 | 26,950 | 20,649 |
Segment profit | 180,503 | 157,307 | 136,635 |
Assets | 829,562 | 868,922 | 829,278 |
Expenditures for property, plant & equipment | 13,256 | 24,051 | 20,344 |
Americas & Asia | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 787,426 | 750,391 | 635,714 |
Americas & Asia | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 101,431 | 110,693 | 99,868 |
Europe & Australia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 443,006 | 440,978 | 409,116 |
Depreciation and amortization | 7,101 | 7,232 | 4,834 |
Segment profit | 65,742 | 63,058 | 55,357 |
Assets | 408,163 | 384,341 | 401,143 |
Expenditures for property, plant & equipment | 5,970 | 19,087 | 6,845 |
Europe & Australia | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 387,743 | 388,618 | 355,096 |
Europe & Australia | AUSTRALIA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 55,263 | 52,360 | 54,020 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 151,532 | $ 114,069 | $ 147,335 |
Segment Information - Net Incom
Segment Information - Net Income Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Segment Reconciliation [Abstract] | |||
Total profit from reportable segments | $ 246,245 | $ 220,365 | $ 191,992 |
Unallocated amounts: | |||
Administrative costs | (24,802) | (27,353) | (24,865) |
Gain (Loss) on Disposition of Business | 3,770 | 0 | 0 |
Investment and other income | 4,022 | 244 | 4,333 |
Interest expense | (3,539) | (1,276) | (437) |
Income before income taxes and losses of unconsolidated affiliate | $ 225,696 | $ 191,980 | $ 171,023 |
Segment Information Net Sales b
Segment Information Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 1,331,863 | $ 1,302,062 | $ 1,144,698 |
Identification Solutions | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,045,891 | 1,010,883 | 841,508 |
Workplace Safety | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 285,972 | $ 291,179 | $ 303,190 |
Schedule of Revenue from Extern
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,331,863 | $ 1,302,062 | $ 1,144,698 |
Long-Lived Assets | 826,579 | 831,664 | 870,091 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 790,596 | 764,930 | 642,268 |
Long-Lived Assets | 524,258 | 543,187 | 560,405 |
OtherCountries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 610,553 | 613,433 | 565,956 |
Long-Lived Assets | 302,321 | 288,477 | 309,686 |
Intersegment Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | (69,286) | (76,301) | (63,526) |
Long-Lived Assets | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of (Los
Income Taxes - Schedule of (Loss) Earnings from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 92,053 | $ 92,985 | $ 59,504 |
Other Nations | 133,643 | 98,995 | 111,519 |
Income before income taxes and losses of unconsolidated affiliate | $ 225,696 | 191,980 | $ 171,023 |
Intercompany Royalty Transactions | $ 32,857 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Current income tax expense: | |||
United States | $ 26,324 | $ 8,639 | $ 16,322 |
Other Nations | 31,093 | 31,851 | 26,141 |
States (U.S.) | 5,894 | 3,156 | 2,112 |
Total current income tax expense | 63,311 | 43,646 | 44,575 |
Deferred income tax (benefit) expense: | |||
United States | (10,577) | 970 | (2,662) |
Other Nations | 251 | (2,377) | (5,938) |
States (U.S.) | (2,146) | (238) | (365) |
Total deferred income tax (benefit) expense | (12,472) | (1,645) | (8,965) |
Income Tax Expense (Benefit), Continuing Operations | $ 50,839 | $ 42,001 | $ 35,610 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Gross | $ 64,231 | $ 53,570 |
Deferred Tax Liabilities, Gross | 63,467 | 64,993 |
Deferred Tax Liabilities, Other | 4,798 | 5,226 |
Deferred Tax Assets, Tax Deferred Expense, Other | 19,826 | 17,919 |
Deferred Tax Liability, Valuation Allowance | 0 | 0 |
Deferred Tax Assets, Valuation Allowance | 52,750 | 47,276 |
Deferred Tax Liabilities Tax Credit Carryforwards And Net Operating Losses | 0 | 0 |
Deferred Tax Assets, Tax Credit Carryforwards | 51,387 | 49,006 |
Deferred tax liabilities, deferred tax expense, postretirement benefits | 100 | 0 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 2,683 | 2,301 |
Deferred Tax Liability, Deferred Expense, Deferred Compensation | 0 | 0 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 9,937 | 9,221 |
Deferred Tax Liabilities, Intangible Assets | 49,267 | 50,095 |
Deferred Tax Assets, Goodwill and Intangible Assets | 760 | 859 |
Deferred Tax Assets, in Process Research and Development | 9,986 | |
Deferred Tax Liabilities, Property, Plant and Equipment | 9,238 | 9,618 |
Deferred Tax Assets, Property, Plant and Equipment | 3,118 | 3,177 |
Deferred Tax Liabilities Accounts Receivable | 0 | 0 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 2,202 | 2,105 |
Deferred Tax Liabilities Tax Deferred Expense Compensation And Benefits Employee Benefits | 0 | 0 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 8,556 | 8,146 |
Deferred Tax Liabilities, Inventory | 64 | 54 |
Deferred Tax Assets, Inventory | 8,526 | 8,112 |
Deferred Tax Liabilities, In Process Research and Development | 0 | |
Net of liabilities [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Assets, Tax Deferred Expense, Other | 15,028 | 12,693 |
Deferred income taxes | 764 | |
Deferred Tax Assets, Valuation Allowance | 52,750 | 47,276 |
Deferred Tax Assets, Tax Credit Carryforwards | 51,387 | 49,006 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 2,583 | 2,301 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 9,937 | 9,221 |
Deferred Tax Assets, in Process Research and Development | 9,986 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 2,202 | 2,105 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 8,556 | 8,146 |
Deferred Tax Assets, Inventory | 8,462 | 8,058 |
Net of assets [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Deferred Tax Liabilities, Net | 11,423 | |
Deferred Tax Liabilities, Intangible Assets | 48,507 | 49,236 |
Deferred Tax Liabilities, Property, Plant and Equipment | $ 6,120 | $ 6,441 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Unrecognized Tax Benefits: | |||
Beginning balance | $ 20,564 | $ 21,912 | $ 13,622 |
Additions based on tax positions related to the current year | 2,902 | 3,233 | 4,664 |
Additions for tax positions of prior years (1) | 792 | 435 | 3,940 |
Reductions for tax positions of prior years | (19) | (122) | (365) |
Lapse of statute of limitations | (2,682) | (3,226) | (159) |
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 124 | 210 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (782) | (1,129) | |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (539) | ||
Ending balance | $ 20,899 | $ 20,564 | $ 21,912 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Tax at statutory rate | 21% | 21% | 21% | |
International rate differential (1) | 1.70% | 4.20% | 2.30% | |
Adjustments to tax accruals and reserves | 0.20% | (0.10%) | 3.30% | |
Research and development tax credits | (1.30%) | (1.60%) | (1.60%) | |
Valuation allowance against foreign tax credits and foreign net operating loss carry-forwards | 1.20% | (1.20%) | (4.80%) | |
Deferred tax and other adjustments, net | (0.30%) | (0.40%) | 0.60% | |
Income tax rate | 22.50% | 21.90% | 20.80% | |
Operating Loss Carryforwards [Line Items] | ||||
Foreign operating loss-carryforward expiration dates | 2024 to fiscal 2040 | |||
State Net Operating Loss Carryforwards Expiration Dates | 2032 | |||
Foreign Tax Credit Carryforward Expiration Dates | 2024 to fiscal 2033 | |||
State Research And Development Tax Credit Carryforward Expiration Dates | 2024 to fiscal 2038 | |||
Unrecognized Tax Benefits | $ 20,899 | $ 20,564 | $ 21,912 | $ 13,622 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 17,811 | |||
Unrecognized Tax Benefits Recognized In Other Liabilities | 17,587 | 17,689 | ||
Reduction Of Longterm Deferred Income Tax Assets Excluding Interest and Penalties | 3,312 | 2,875 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | (700) | (701) | (596) | |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 281 | 82 | (595) | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 3,581 | 2,878 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 1,674 | 1,925 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 2,608 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 3,771 | |||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 281 | $ 82 | $ (595) | |
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2020 | |||
Internal Revenue Service (IRS) [Member] | Tax Year 2019 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Open Tax Year | 2023 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | $ 95,141 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 76,902 | |||
Other Tax Carryforward, Gross Amount | 20,153 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 22,424 | |||
Other Tax Carryforward, Gross Amount | $ 13,151 |
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 | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings Per Share [Line Items] | |||
Net income | $ 174,857 | $ 149,979 | $ 129,659 |
Denominator for basic earnings per share for both Class A and Class B | 49,591 | 51,321 | 52,039 |
Plus: Effect of dilutive stock options | 278 | 330 | 370 |
Denominator for diluted earnings per share for both Class A and Class B | 49,869 | 51,651 | 52,409 |
Class A Nonvoting Common Stock | |||
Earnings Per Share [Line Items] | |||
Basic | $ 3.53 | $ 2.92 | $ 2.49 |
Diluted | $ 3.51 | $ 2.90 | $ 2.47 |
Class B Voting Common Stock | |||
Earnings Per Share [Line Items] | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ 174,085 | $ 149,168 | $ 128,847 |
Cash dividends on Common Stock | 769 | 803 | 807 |
Preferential dividends on dilutive stock options | $ 3 | $ 8 | $ 5 |
Basic | $ 3.51 | $ 2.91 | $ 2.48 |
Diluted | $ 3.49 | $ 2.89 | $ 2.46 |
Net Income per Common Share - A
Net Income per Common Share - Additional Informations (Detail) - shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from computations of diluted earnings per share | 549,031 | 497,307 | 511,189 |
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, 2023 | Jul. 31, 2022 |
Fair Value, Inputs, Level 1 [Member] | Other assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | $ 18,288 | $ 18,037 |
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 | 492 | 489 |
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 | $ 189 | $ 32 |
Derivative Notional Amounts (De
Derivative Notional Amounts (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 44,464 | $ 29,333 |
Designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 39,661 | 25,276 |
Not designated as hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4,803 | $ 4,057 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Impact on OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain recognized in other comprehensive income (loss) | $ 2,680 | $ 1,282 | $ 1,451 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 2,140 | 909 | 399 |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | $ (1,746) | $ 0 | $ 0 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Value Balance Sheet Disclosure (Detail) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 492 | |
Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 189 | $ 32 |
Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | 489 | |
Foreign Line of Credit | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Long-Term Debt, Noncurrent | |
Not designated as hedging Instruments [Member] | Foreign Line of Credit | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Long-Term Debt, Noncurrent | |
Designated as hedging instruments [Member] | Other current liabilities [Member] | Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0 | 0 |
Designated as hedging instruments [Member] | Prepaid expenses and other current assets [Member] | Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 0 | 0 |
Designated as hedging instruments [Member] | Foreign Line of Credit | Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Long-Term Debt, Noncurrent | |
Foreign Exchange Contract [Member] | Not designated as hedging Instruments [Member] | Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0 | 2 |
Foreign Exchange Contract [Member] | Not designated as hedging Instruments [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | 7 | 0 |
Foreign Exchange Contract [Member] | Designated as hedging instruments [Member] | Other current liabilities [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 189 | 30 |
Foreign Exchange Contract [Member] | Designated as hedging instruments [Member] | Prepaid expenses and other current assets [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 485 | $ 489 |
Foreign Exchange Contract [Member] | Designated as hedging instruments [Member] | Foreign Line of Credit | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Long-Term Debt, Noncurrent |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (93,061) | $ (109,077) | $ (55,953) |
Derivative maturity | 18 months | ||
Designated as hedging instruments [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ (1,580) | 1,040 | |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (1,746) | $ 0 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Business Acquisition [Line Items] | |||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | $ 3,164 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 0 | 243,983 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 4,668 | ||
Code Acquisition | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 172,815 | ||
Magicard Acquisition | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 56,694 | ||
Nordic ID Acquisition | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 9,804 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Oct. 31, 2023 | Oct. 10, 2023 | Sep. 04, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Sep. 01, 2023 | |
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends Payable, Date Declared | Sep. 04, 2023 | |||||||
Dividends Payable, Date to be Paid | Oct. 31, 2023 | |||||||
Dividends Payable, Date of Record | Oct. 10, 2023 | |||||||
Percentage Increase In Dividend | 2.20% | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.94 | |||||||
Dividends Payable, Amount Per Share | $ 0.2350 | |||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||||
Class A Nonvoting Common Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.92 | $ 0.90 | $ 0.88 |
Schedule II Valuation of Qual_2
Schedule II Valuation of Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | $ 7,355 | $ 7,306 | $ 7,157 |
Additions — Due to acquired businesses | 0 | 0 | 388 |
Additions — Charged to expense | 1,433 | 859 | 803 |
Deductions - written off | (321) | (810) | (1,042) |
Balances at end of period | 8,467 | 7,355 | 7,306 |
SEC Schedule, 12-09, Reserve, Inventory [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 29,877 | 23,009 | 16,309 |
Additions — Due to acquired businesses | 0 | 0 | 2,957 |
Additions — Charged to expense | 9,580 | 10,198 | 4,908 |
Deductions - written off | (3,602) | (3,330) | (1,165) |
Balances at end of period | 35,855 | 29,877 | 23,009 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balances at beginning of period | 47,276 | 51,069 | 58,809 |
Additions — Due to acquired businesses | 0 | 0 | 1,351 |
Additions — Charged to expense | 5,852 | 48 | 4,168 |
Deductions - written off | (378) | (3,841) | (13,259) |
Balances at end of period | $ 52,750 | $ 47,276 | $ 51,069 |