Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 31, 2023 | Nov. 14, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity Registrant Name | BRADY CORP | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A Nonvoting Common Stock, par value $0.01 per share | |
Trading Symbol | BRC | |
Entity File Number | 1-14959 | |
Entity Interactive Data Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Tax Identification Number | 39-0178960 | |
Entity Address, Address Line One | 6555 West Good Hope Road | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53223 | |
Entity Incorporation, State or Country Code | WI | |
City Area Code | Milwaukee | |
City Area Code | 414 | |
Local Phone Number | 358-6600 | |
Document Period End Date | Oct. 31, 2023 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000746598 | |
Current Fiscal Year End Date | --07-31 | |
Class A Nonvoting Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 44,792,514 | |
Class B Voting Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,538,628 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 175,352 | $ 151,532 |
Accounts receivable, net of allowance for credit losses of $6,923 and $8,467, respectively | 179,970 | 184,420 |
Inventories | 166,916 | 177,078 |
Prepaid expenses and other current assets | 12,827 | 11,790 |
Total current assets | 535,065 | 524,820 |
Assets, Noncurrent | ||
Property, plant and equipment—net | 143,792 | 142,149 |
Goodwill | 583,702 | 592,646 |
Other intangible assets | 58,774 | 62,096 |
Deferred income taxes | 14,931 | 15,716 |
Operating lease assets | 26,860 | 29,688 |
Other assets | 20,289 | 22,142 |
Total | 1,383,413 | 1,389,257 |
Current liabilities: | ||
Accounts payable | 79,512 | 79,855 |
Accrued compensation and benefits | 57,566 | 71,470 |
Taxes, other than income taxes | 14,249 | 13,575 |
Accrued income taxes | 17,970 | 12,582 |
Current operating lease liabilities | 13,225 | 14,726 |
Other current liabilities | 69,172 | 65,828 |
Total current liabilities | 251,694 | 258,036 |
Other Long-Term Debt, Noncurrent | 52,267 | 49,716 |
Long-term operating lease liabilities | 14,483 | 16,217 |
Other liabilities | 69,977 | 74,369 |
Total liabilities | 388,421 | 398,338 |
Stockholders’ equity: | ||
Additional paid-in capital | 352,421 | 351,771 |
Retained earnings | 1,057,773 | 1,021,870 |
Treasury stock—6,393,405 and 6,252,763 shares, respectively, of Class A nonvoting common stock, at cost | (300,467) | (290,209) |
Accumulated other comprehensive loss | (115,283) | (93,061) |
Total stockholders’ equity | 994,992 | 990,919 |
Total | 1,383,413 | 1,389,257 |
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 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 6,923 | $ 8,467 |
Class A Nonvoting Common Stock | ||
Common stock, shares issued | 51,261,487 | 51,261,487 |
Common stock, shares outstanding | 44,868,082 | 45,008,724 |
Treasury Stock, Common, Shares | 6,393,405 | 6,252,763 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Net sales | $ 331,983 | $ 322,569 |
Cost of goods sold | 160,264 | 167,305 |
Gross margin | 171,719 | 155,264 |
Operating expenses: | ||
Research and development | 15,702 | 13,933 |
Selling, general and administrative | 96,287 | 89,945 |
Total operating expenses | 111,989 | 103,878 |
Operating income | 59,730 | 51,386 |
Other income (expense): | ||
Investment and other income (expense) | 438 | (157) |
Interest expense | (766) | (894) |
Income before income taxes | 59,402 | 50,335 |
Income tax expense | 12,161 | 10,894 |
Net income | $ 47,241 | $ 39,441 |
Weighted average common shares outstanding: | ||
Basic | 48,505 | 49,868 |
Diluted | 48,811 | 50,090 |
Class A Nonvoting Common Stock | ||
Earnings Per Share | ||
Basic | $ 0.97 | $ 0.79 |
Diluted | 0.97 | 0.79 |
Class B Voting Common Stock | ||
Earnings Per Share | ||
Basic | 0.96 | 0.78 |
Diluted | $ 0.95 | $ 0.77 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 47,241 | $ 39,441 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (20,364) | (17,672) |
Cash flow hedges: | ||
Net (loss) gain recognized in other comprehensive loss | (294) | 893 |
Reclassification adjustment for gains included in net income | 1,285 | 581 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | (1,579) | 312 |
Pension and other post-retirement benefits: | ||
Pension and other post-retirement benefits actuarial gain amortization | (151) | (143) |
Other comprehensive loss, before tax | (22,094) | (17,503) |
Income tax (expense) benefit related to items of other comprehensive loss | (128) | 66 |
Other comprehensive loss, net of tax | (22,222) | (17,437) |
Comprehensive income | $ 25,019 | $ 22,004 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Nonvoting Common Stock | Class B Voting Common Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Class A Nonvoting Common Stock | Retained Earnings Class B Voting Common Stock | AOCI Attributable to Parent | Treasury Stock, Common |
Beginning Balances at Jul. 31, 2022 | $ 911,298 | $ 548 | $ 345,266 | $ 892,417 | $ (109,077) | $ (217,856) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 39,441 | 39,441 | ||||||||
Other comprehensive loss, net of tax | (17,437) | (17,437) | ||||||||
Issuance of shares of Class A Common Stock under stock plan | 1,155 | 2,226 | 1,071 | |||||||
Tax benefit and withholdings from deferred compensation distributions | 66 | 66 | ||||||||
Repurchase of shares of Class A Common Stock, including excise taxes | (12,070) | |||||||||
Stock-based compensation expense | 2,958 | 2,958 | ||||||||
Dividends, Common Stock, Cash | $ 10,621 | $ 755 | $ 10,621 | $ 755 | ||||||
Ending Balances at Oct. 31, 2022 | 911,725 | 548 | 346,064 | 920,482 | (126,514) | (228,855) | ||||
Beginning Balances at Jul. 31, 2023 | 990,919 | 548 | 351,771 | 1,021,870 | (93,061) | (290,209) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 47,241 | |||||||||
Other comprehensive loss, net of tax | (22,222) | (22,222) | ||||||||
Issuance of shares of Class A Common Stock under stock plan | (265) | 3,662 | 3,927 | |||||||
Tax benefit and withholdings from deferred compensation distributions | 149 | 149 | ||||||||
Repurchase of shares of Class A Common Stock, including excise taxes | (14,185) | |||||||||
Stock-based compensation expense | 4,163 | 4,163 | ||||||||
Dividends, Common Stock, Cash | $ 10,565 | $ 773 | $ 10,565 | $ 773 | ||||||
Ending Balances at Oct. 31, 2023 | $ 994,992 | $ 548 | $ 352,421 | $ 1,057,773 | $ (115,283) | $ (300,467) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Class A Nonvoting Common Stock | ||
Common Stock, Dividends, Per Share, Declared | $ 0.2350 | $ 0.2300 |
Class B Voting Common Stock | ||
Common Stock, Dividends, Per Share, Declared | $ 0.2184 | $ 0.2134 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Operating activities: | ||
Net income | $ 47,241 | $ 39,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,466 | 8,665 |
Stock-based compensation expense | 4,163 | 2,958 |
Deferred income taxes | (2,225) | (1,705) |
Other | 1,137 | (383) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,205) | (627) |
Inventories | 6,152 | (9,582) |
Prepaid expenses and other assets | (1,488) | (2,563) |
Accounts payable and accrued liabilities | (3,725) | (14,150) |
Income taxes | 5,757 | 5,945 |
Net cash provided by operating activities | 62,273 | 27,999 |
Investing activities: | ||
Purchases of property, plant and equipment | (11,279) | (3,861) |
Net cash used in investing activities | (11,279) | (3,861) |
Financing activities: | ||
Payment of dividends | (11,338) | (11,376) |
Proceeds from exercise of stock options | 2,598 | 349 |
Payments for employee taxes withheld from stock-based awards | (2,333) | (1,504) |
Purchase of treasury stock | (14,121) | (12,070) |
Proceeds from borrowing on credit agreement | 38,551 | 36,000 |
Repayment of borrowing on credit agreement | (36,000) | (32,000) |
Other | 1,149 | 66 |
Net cash used in financing activities | (21,494) | (20,535) |
Effect of exchange rate changes on cash and cash equivalents | (5,680) | (3,201) |
Net increase in cash and cash equivalents | 23,820 | 402 |
Cash and cash equivalents, beginning of period | 151,532 | 114,069 |
Cash and cash equivalents, end of period | $ 175,352 | $ 114,471 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements included herein have been prepared by Brady Corporation and subsidiaries (the "Company," "Brady," "we," or "our") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, the foregoing statements contain all adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial position of the Company as of October 31, 2023 and July 31, 2023, its results of operations, cash flows and comprehensive income for the three months ended October 31, 2023 and 2022. The condensed consolidated balance sheet as of July 31, 2023 has been derived from the audited consolidated financial statements as of that date. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from the estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to rules and regulations of the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statement presentation. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2023. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsThe Company did not adopt any new accounting standards in the three months ended October 31, 2023. The Company also assessed recent Accounting Standard Updates issued by the Financial Accounting Standards Board, and the Company does not expect any of the standards to have a material impact on its condensed consolidated financial statements or disclosures. |
Additional Balance Sheet Disclo
Additional Balance Sheet Disclosures (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Inventories Inventories consisted of the following as of October 31, 2023 and July 31, 2023: October 31, 2023 July 31, 2023 Finished products $ 97,311 $ 103,350 Work-in-process 26,960 26,884 Raw materials and supplies 42,645 46,844 Total inventories $ 166,916 $ 177,078 Property, plant and equipment |
Other Intangible Assets (Notes)
Other Intangible Assets (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Other Intangible Assets Other intangible assets as of October 31, 2023 and July 31, 2023 consisted of the following: October 31, 2023 July 31, 2023 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 $ 1,087 $ (970) $ 117 3 $ 1,114 $ (947) $ 167 Customer relationships 9 63,508 (17,491) 46,017 9 64,513 (15,947) 48,566 Technology 5 9,157 (4,650) 4,507 5 9,313 (4,235) 5,078 Unamortized other intangible assets: Tradenames N/A 8,133 — 8,133 N/A 8,285 — 8,285 Total $ 81,885 $ (23,111) $ 58,774 $ 83,225 $ (21,129) $ 62,096 The change in the gross carrying amount of other intangible assets as of October 31, 2023 compared to July 31, 2023 was due to the effect of currency fluctuations during the three-month period. Amortization expense on intangible assets was $2,355 and $3,631 for the three months ended October 31, 2023 and 2022, respectively. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, warehouse and office spaces, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of October 31, 2023, the Company did not have any finance leases. Operating lease expense was $4,065 and $3,780 for the three months ended October 31, 2023 and 2022, respectively, which was recognized in either "Cost of goods sold" or "Selling, general and administrative" expenses in the condensed consolidated statements of income, based on the nature of the lease. Short-term lease expense, variable lease expenses, and sublease income was immaterial to the condensed consolidated statements of income for the three months ended October 31, 2023 and 2022. Supplemental cash flow information related to the Company's operating leases for the three months ended October 31, 2023 and 2022 was as follows: Three months ended October 31, 2023 2022 Operating cash flows from operating leases $ 4,431 $ 4,202 Operating lease assets obtained in exchange for new operating lease liabilities (1) 1,656 102 (1) Includes new leases and remeasurements or modifications of existing leases. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Notes) | 3 Months Ended |
Oct. 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 three months ended October 31, 2023: Unrealized gain (loss) on cash flow hedges Unamortized gain on post-retirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Beginning balance, July 31, 2023 $ 1,641 $ 756 $ (95,458) $ (93,061) Other comprehensive loss before reclassification (744) — (20,364) (21,108) Amounts reclassified from accumulated other comprehensive loss (963) (151) — (1,114) Ending balance, October 31, 2023 $ (66) $ 605 $ (115,822) $ (115,283) The increase in accumulated other comprehensive loss as of October 31, 2023 compared to July 31, 2023 was primarily due to the appreciation of the U.S. dollar against certain other currencies during the three-month period. The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended October 31, 2022 were as follows: Unrealized gain on cash flow hedges Unamortized gain on post-retirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Beginning balance, July 31, 2022 $ 954 $ 1,436 $ (111,467) $ (109,077) Other comprehensive income (loss) before reclassification 813 — (17,672) (16,859) Amounts reclassified from accumulated other comprehensive loss (435) (143) — (578) Ending balance, October 31, 2022 $ 1,332 $ 1,293 $ (129,139) $ (126,514) The increase in the accumulated other comprehensive loss as of October 31, 2022 compared to July 31, 2022 was primarily due to the appreciation of the U.S. dollar against certain other currencies during the three-month period. Of the amounts reclassified from accumulated other comprehensive loss during the three months ended October 31, 2023 and 2022, unrealized gains on cash flow hedges were reclassified to "Cost of goods sold" and unamortized gains on post-retirement plans were reclassified into "Investment and other income (expense)" on the condensed consolidated statements of income. The following table illustrates the income tax (expense) benefit on the components of other comprehensive loss for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Income tax (expense) benefit related to items of other comprehensive loss: Cash flow hedges $ (128) $ 66 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Oct. 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. 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 condensed consolidated statements of income. See Note H, “Segment Information,” for the Company’s disaggregated revenue disclosure. The Company offers extended warranty coverage that is included in the sales price of certain products, which it accounts for as service warranties. The Company accounts for the deferred revenue associated with extended service warranties as a contract liability. The balance of contract liabilities associated with service warranty performance obligations was $2,870 and $2,757 as of October 31, 2023 and July 31, 2023, respectively. The current portion and non-current portion of contract liabilities are included in “Other current liabilities” and “Other liabilities," respectively, on the condensed consolidated balance sheets. The Company recognized revenue of $314 and $306 during the three months ended October 31, 2023 and 2022, respectively, that was included in the contract liability balance at the beginning of the respective period from the amortization of extended service warranties. Of the contract liability balance outstanding at October 31, 2023, the Company expects to recognize 31% by the end of fiscal 2024, an additional 30% by the end of fiscal 2025, and the remaining balance thereafter. |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. The following is a summary of net sales by segment and geographic region for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Net sales: Americas & Asia Americas $ 196,286 $ 191,329 Asia 25,340 27,166 Total $ 221,626 $ 218,495 Europe & Australia Europe 96,333 90,192 Australia 14,024 13,882 Total $ 110,357 $ 104,074 Total Company $ 331,983 $ 322,569 The following is a summary of segment profit for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Segment profit: Americas & Asia $ 49,897 $ 41,145 Europe & Australia 16,744 16,758 Total Company $ 66,641 $ 57,903 The following is a reconciliation of segment profit to income before income taxes for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Total profit from reportable segments $ 66,641 $ 57,903 Unallocated amounts: Administrative costs (6,911) (6,517) Investment and other income (expense) 438 (157) Interest expense (766) (894) Income before income taxes $ 59,402 $ 50,335 |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stock-Based Compensation 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. Total stock-based compensation expense recognized during the three months ended October 31, 2023 and 2022 was $4,163 and $2,958, respectively. The total income tax benefit recognized in the condensed consolidated statements of income was $425 and $192 during the three months ended October 31, 2023 and 2022, respectively. Stock Options The stock options issued under the plan have an exercise price equal to the market price of the Company's stock at the date of the grant and generally vest ratably over three years, with one-third becoming exercisable one year after the grant date and one-third additional in each of the succeeding two years. Options issued under the plan, referred to herein as “time-based” options, generally expire ten years from the date of grant. The Company has estimated the fair value of its time-based options granted during the three months ended October 31, 2023 and 2022, using the Black-Scholes option valuation model. The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table: Three months ended October 31, Black-Scholes Option Valuation Assumptions 2023 2022 Expected term (in years) 5.4 5.7 Expected volatility 30.2 % 29.6 % Expected dividend yield 1.9 % 2.0 % Risk-free interest rate 4.7 % 3.7 % The following is a summary of stock option activity for the three months ended October 31, 2023: Time-Based Options Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at July 31, 2023 1,546,783 $ 42.05 Granted 52,097 54.80 Exercised (174,370) 36.57 Forfeited (5,433) 48.82 Outstanding at October 31, 2023 1,419,077 $ 43.17 6.0 $ 12,727 Exercisable at October 31, 2023 1,195,029 $ 42.17 5.4 $ 11,851 The following table summarizes additional stock option information: Three months ended October 31, 2023 2022 Weighted-average fair value of options granted during the period $ 16.42 $ 12.06 Intrinsic value of options exercised during the period (in thousands) 3,410 364 Fair value of options vested during the period (in thousands) 1,729 2,458 Cash received from the exercise of stock options during the period (in thousands) 2,598 349 Tax benefit on options exercised during the period (in thousands) 841 91 As of October 31, 2023, total unrecognized compensation cost related to stock options was $1,608 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.1 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 is a summary of RSU activity for the three months ended October 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested RSUs as of July 31, 2023 133,868 $ 46.55 Granted 86,286 54.80 Vested (53,888) 45.23 Forfeited (1,483) 48.92 Non-vested RSUs as of October 31, 2023 164,783 $ 51.28 The RSUs granted during the three months ended October 31, 2022 had a weighted-average grant date fair value of $44.70. The total fair value of RSUs vested during three months ended October 31, 2023 and 2022 was $2,974 and $2,608, respectively. As of October 31, 2023, total unrecognized compensation cost related to RSUs was $4,504 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.3 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 three months ended October 31, 2023 had a fair value determined by the average of the high and low stock price on the date of the grant. For unvested awards with a market value condition, a third-party valuation is utilized to determine the fair value using a Monte Carlo simulation for that portion of the award. The following is a summary of PRSU activity for the three months ended October 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested PRSUs as of July 31, 2023 63,448 $ 58.39 Granted 65,956 51.16 Vested (2,786) 60.73 Forfeited (19,436) 60.73 Non-vested PRSUs as of October 31, 2023 107,182 $ 53.46 The PRSUs granted during the three months ended October 31, 2022 had a weighted-average grant date fair value of $55.77. The total fair value of PRSUs vested during three months ended October 31, 2023 and 2022 was $141 and $889, respectively. As of October 31, 2023, total unrecognized compensation cost related to PRSUs was $4,167 pre-tax, net of estimated forfeitures, which the Company expects to recognize over a weighted-average period of 2.5 years. |
Net Income per Common Share (No
Net Income per Common Share (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income 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: Three months ended October 31, 2023 2022 Numerator (in thousands): Net income (Numerator for basic and diluted income per Class A Nonvoting Common Share) $ 47,241 $ 39,441 Less: Preferential dividends (748) (769) Preferential dividends on dilutive stock options (5) (4) Numerator for basic and diluted income per Class B Voting Common Share $ 46,488 $ 38,668 Denominator (in thousands): Denominator for basic income per share for both Class A and Class B 48,505 49,868 Plus: Effect of dilutive equity awards 306 222 Denominator for diluted income per share for both Class A and Class B 48,811 50,090 Net income per Class A Nonvoting Common Share: Basic $ 0.97 $ 0.79 Diluted $ 0.97 $ 0.79 Net income per Class B Voting Common Share: Basic $ 0.96 $ 0.78 Diluted $ 0.95 $ 0.77 Potentially dilutive securities attributable to outstanding stock options and restricted stock units were excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value were greater than the average market price of the Company's Class A Nonvoting Common Stock because the effect would have been anti-dilutive. The amount of anti-dilutive shares were 313,787 and 583,533 for the three months ended October 31, 2023 and 2022, respectively. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Oct. 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 October 31, 2023 and July 31, 2023: October 31, 2023 July 31, 2023 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 16,584 $ 18,288 Level 1 Foreign exchange contracts 247 492 Level 2 Liabilities: Foreign exchange contracts 488 189 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 condensed 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 L, “Derivatives and Hedging Activities,” for additional information. The fair values of cash and cash equivalents, accounts receivable, accounts payable, and other liabilities approximated carrying values due to their short-term nature. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Notes) | 3 Months Ended |
Oct. 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 on 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 currency 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: October 31, 2023 July 31, 2023 Designated as cash flow hedges $ 63,760 $ 39,661 Non-designated hedges 4,485 4,803 Total foreign exchange contracts $ 68,245 $ 44,464 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 condensed consolidated balance sheets. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income ("OCI") and reclassified into income in the same period or periods during which the hedged transaction affects income. As of October 31, 2023 and July 31, 2023, unrealized gains of $2 and $1,580 have been included in OCI, 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 condensed consolidated statements of comprehensive income. As of October 31, 2023 and July 31, 2023, the cumulative balance recognized in accumulated other comprehensive income were losses of $238 and $1,746, 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: Three months ended October 31, 2023 2022 (Losses) gains recognized in OCI: Forward exchange contracts (cash flow hedges) $ (294) $ 893 Foreign currency denominated debt (net investment hedges) 1,508 — Gains reclassified from OCI into cost of goods sold: Forward exchange contracts (cash flow hedges) 1,285 581 Fair values of derivative instruments in the condensed consolidated balance sheets were as follows: October 31, 2023 July 31, 2023 Prepaid expenses and other current assets Other current liabilities Long-term Obligations Prepaid expenses and other current assets Other current liabilities Long-term Obligations Derivatives designated as hedging instruments: Foreign exchange contracts (cash flow hedges) $ 235 $ 488 $ — $ 485 $ 189 $ — Foreign currency denominated debt (net investment hedges) — — 36,267 — — 36,716 Derivatives not designated as hedging instruments: Foreign exchange contracts (non-designated hedges) 12 — — 7 — — Total derivative instruments $ 247 $ 488 $ 36,267 $ 492 $ 189 $ 36,716 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe income tax rate for the three months ended October 31, 2023 and 2022 was 20.5% and 21.6%, respectively. The decrease in income tax rate for three months ended October 31, 2023 was primarily due to tax benefits from stock-based compensation and other permanent adjustments. The Company expects its ongoing annual income tax rate to be approximately 22% based on its current global business mix and based on tax laws and statutory rates currently in effect. |
Commitment and Contingencies (N
Commitment and Contingencies (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | 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 (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Oct. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn November 14, 2023, the Board of Directors declared a quarterly cash dividend to shareholders of the Company’s Class A and Class B Common Stock of $0.235 per share payable on January 31, 2024 to shareholders of record at the close of business on January 10, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 47,241 | $ 39,441 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Revenue Recognition and Deferre
Revenue Recognition and Deferred Revenue (Policies) | 3 Months Ended |
Oct. 31, 2023 | |
Revenue Recognition and Deferred Revenue [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. 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 condensed consolidated statements of income. See Note H, “Segment Information,” for the Company’s disaggregated revenue disclosure. The Company offers extended warranty coverage that is included in the sales price of certain products, which it accounts for as service warranties. The Company accounts for the deferred revenue associated with extended service warranties as a contract liability. The balance of contract liabilities associated with service warranty performance obligations was $2,870 and $2,757 as of October 31, 2023 and July 31, 2023, respectively. The current portion and non-current portion of contract liabilities are included in “Other current liabilities” and “Other liabilities," respectively, on the condensed consolidated balance sheets. The Company recognized revenue of $314 and $306 during the three months ended October 31, 2023 and 2022, respectively, that was included in the contract liability balance at the beginning of the respective period from the amortization of extended service warranties. Of the contract liability balance outstanding at October 31, 2023, the Company expects to recognize 31% by the end of fiscal 2024, an additional 30% by the end of fiscal 2025, and the remaining balance thereafter. |
Additional Balance Sheet Disc_2
Additional Balance Sheet Disclosures (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventories consisted of the following as of October 31, 2023 and July 31, 2023: October 31, 2023 July 31, 2023 Finished products $ 97,311 $ 103,350 Work-in-process 26,960 26,884 Raw materials and supplies 42,645 46,844 Total inventories $ 166,916 $ 177,078 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets as of October 31, 2023 and July 31, 2023 consisted of the following: October 31, 2023 July 31, 2023 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 $ 1,087 $ (970) $ 117 3 $ 1,114 $ (947) $ 167 Customer relationships 9 63,508 (17,491) 46,017 9 64,513 (15,947) 48,566 Technology 5 9,157 (4,650) 4,507 5 9,313 (4,235) 5,078 Unamortized other intangible assets: Tradenames N/A 8,133 — 8,133 N/A 8,285 — 8,285 Total $ 81,885 $ (23,111) $ 58,774 $ 83,225 $ (21,129) $ 62,096 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Schedule of Cash Flow, Supplemental Lease Disclosures | Supplemental cash flow information related to the Company's operating leases for the three months ended October 31, 2023 and 2022 was as follows: Three months ended October 31, 2023 2022 Operating cash flows from operating leases $ 4,431 $ 4,202 Operating lease assets obtained in exchange for new operating lease liabilities (1) 1,656 102 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the three months ended October 31, 2023: Unrealized gain (loss) on cash flow hedges Unamortized gain on post-retirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Beginning balance, July 31, 2023 $ 1,641 $ 756 $ (95,458) $ (93,061) Other comprehensive loss before reclassification (744) — (20,364) (21,108) Amounts reclassified from accumulated other comprehensive loss (963) (151) — (1,114) Ending balance, October 31, 2023 $ (66) $ 605 $ (115,822) $ (115,283) | The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended October 31, 2022 were as follows: Unrealized gain on cash flow hedges Unamortized gain on post-retirement plans Foreign currency translation adjustments Accumulated other comprehensive loss Beginning balance, July 31, 2022 $ 954 $ 1,436 $ (111,467) $ (109,077) Other comprehensive income (loss) before reclassification 813 — (17,672) (16,859) Amounts reclassified from accumulated other comprehensive loss (435) (143) — (578) Ending balance, October 31, 2022 $ 1,332 $ 1,293 $ (129,139) $ (126,514) |
Schedule of Income Tax Benefit on the Components of Other Comprehensive Loss | The following table illustrates the income tax (expense) benefit on the components of other comprehensive loss for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Income tax (expense) benefit related to items of other comprehensive loss: Cash flow hedges $ (128) $ 66 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following is a summary of net sales by segment and geographic region for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Net sales: Americas & Asia Americas $ 196,286 $ 191,329 Asia 25,340 27,166 Total $ 221,626 $ 218,495 Europe & Australia Europe 96,333 90,192 Australia 14,024 13,882 Total $ 110,357 $ 104,074 Total Company $ 331,983 $ 322,569 |
Schedule of Segment Reporting Information by Segment | The following is a summary of segment profit for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Segment profit: Americas & Asia $ 49,897 $ 41,145 Europe & Australia 16,744 16,758 Total Company $ 66,641 $ 57,903 |
Reconciliation of Segment Profit | The following is a reconciliation of segment profit to income before income taxes for the three months ended October 31, 2023 and 2022: Three months ended October 31, 2023 2022 Total profit from reportable segments $ 66,641 $ 57,903 Unallocated amounts: Administrative costs (6,911) (6,517) Investment and other income (expense) 438 (157) Interest expense (766) (894) Income before income taxes $ 59,402 $ 50,335 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Weighted-Average Assumptions to Estimate Option Grant Date Fair Values | The weighted-average assumptions used in the Black-Scholes valuation model are reflected in the following table: Three months ended October 31, Black-Scholes Option Valuation Assumptions 2023 2022 Expected term (in years) 5.4 5.7 Expected volatility 30.2 % 29.6 % Expected dividend yield 1.9 % 2.0 % Risk-free interest rate 4.7 % 3.7 % |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the three months ended October 31, 2023: Time-Based Options Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at July 31, 2023 1,546,783 $ 42.05 Granted 52,097 54.80 Exercised (174,370) 36.57 Forfeited (5,433) 48.82 Outstanding at October 31, 2023 1,419,077 $ 43.17 6.0 $ 12,727 Exercisable at October 31, 2023 1,195,029 $ 42.17 5.4 $ 11,851 The following table summarizes additional stock option information: Three months ended October 31, 2023 2022 Weighted-average fair value of options granted during the period $ 16.42 $ 12.06 Intrinsic value of options exercised during the period (in thousands) 3,410 364 Fair value of options vested during the period (in thousands) 1,729 2,458 Cash received from the exercise of stock options during the period (in thousands) 2,598 349 Tax benefit on options exercised during the period (in thousands) 841 91 |
Schedule of RSU Activity | The following is a summary of RSU activity for the three months ended October 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested RSUs as of July 31, 2023 133,868 $ 46.55 Granted 86,286 54.80 Vested (53,888) 45.23 Forfeited (1,483) 48.92 Non-vested RSUs as of October 31, 2023 164,783 $ 51.28 |
Schedule of PRSU Activity | The following is a summary of PRSU activity for the three months ended October 31, 2023: Number of Shares Weighted Average Grant Date Fair Value Non-vested PRSUs as of July 31, 2023 63,448 $ 58.39 Granted 65,956 51.16 Vested (2,786) 60.73 Forfeited (19,436) 60.73 Non-vested PRSUs as of October 31, 2023 107,182 $ 53.46 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of the Reconciliation for the 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: Three months ended October 31, 2023 2022 Numerator (in thousands): Net income (Numerator for basic and diluted income per Class A Nonvoting Common Share) $ 47,241 $ 39,441 Less: Preferential dividends (748) (769) Preferential dividends on dilutive stock options (5) (4) Numerator for basic and diluted income per Class B Voting Common Share $ 46,488 $ 38,668 Denominator (in thousands): Denominator for basic income per share for both Class A and Class B 48,505 49,868 Plus: Effect of dilutive equity awards 306 222 Denominator for diluted income per share for both Class A and Class B 48,811 50,090 Net income per Class A Nonvoting Common Share: Basic $ 0.97 $ 0.79 Diluted $ 0.97 $ 0.79 Net income per Class B Voting Common Share: Basic $ 0.96 $ 0.78 Diluted $ 0.95 $ 0.77 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 October 31, 2023 and July 31, 2023: October 31, 2023 July 31, 2023 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 16,584 $ 18,288 Level 1 Foreign exchange contracts 247 492 Level 2 Liabilities: Foreign exchange contracts 488 189 Level 2 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Forward Exchange Contracts | The U.S. dollar equivalent notional amounts of outstanding forward exchange contracts were as follows: October 31, 2023 July 31, 2023 Designated as cash flow hedges $ 63,760 $ 39,661 Non-designated hedges 4,485 4,803 Total foreign exchange contracts $ 68,245 $ 44,464 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Loss | The following table summarizes the amount of pre-tax gains and losses related to derivatives designated as hedging instruments: Three months ended October 31, 2023 2022 (Losses) gains recognized in OCI: Forward exchange contracts (cash flow hedges) $ (294) $ 893 Foreign currency denominated debt (net investment hedges) 1,508 — Gains reclassified from OCI into cost of goods sold: Forward exchange contracts (cash flow hedges) 1,285 581 |
Schedule of Fair Values of Derivative Instruments in the Condensed Consolidated Balance Sheets | Fair values of derivative instruments in the condensed consolidated balance sheets were as follows: October 31, 2023 July 31, 2023 Prepaid expenses and other current assets Other current liabilities Long-term Obligations Prepaid expenses and other current assets Other current liabilities Long-term Obligations Derivatives designated as hedging instruments: Foreign exchange contracts (cash flow hedges) $ 235 $ 488 $ — $ 485 $ 189 $ — Foreign currency denominated debt (net investment hedges) — — 36,267 — — 36,716 Derivatives not designated as hedging instruments: Foreign exchange contracts (non-designated hedges) 12 — — 7 — — Total derivative instruments $ 247 $ 488 $ 36,267 $ 492 $ 189 $ 36,716 |
Additional Balance Sheet Disc_3
Additional Balance Sheet Disclosures - (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 97,311 | $ 103,350 |
Work-in-process | 26,960 | 26,884 |
Raw materials and supplies | 42,645 | 46,844 |
Total inventories | 166,916 | 177,078 |
Property, Plant and Equipment, Gross [Abstract] | ||
Accumulated Depreciation of PPE | $ (293,708) | $ (292,680) |
Other Intangible Assets (Detail
Other Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Other Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 81,885 | $ 83,225 |
Accumulated Amortization | (23,111) | (21,129) |
Net Book Value | 58,774 | 62,096 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 8,133 | $ 8,285 |
Tradenames [Member] | ||
Other Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 3 years | 3 years |
Finite-Lived Intangible Assets, Gross | $ 1,087 | $ 1,114 |
Accumulated Amortization | (970) | (947) |
Finite-Lived Intangible Assets, Net | $ 117 | $ 167 |
Customer Relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 9 years | 9 years |
Finite-Lived Intangible Assets, Gross | $ 63,508 | $ 64,513 |
Accumulated Amortization | (17,491) | (15,947) |
Finite-Lived Intangible Assets, Net | $ 46,017 | $ 48,566 |
Technology [Member] | ||
Other Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 5 years | 5 years |
Finite-Lived Intangible Assets, Gross | $ 9,157 | $ 9,313 |
Accumulated Amortization | (4,650) | (4,235) |
Finite-Lived Intangible Assets, Net | $ 4,507 | $ 5,078 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 2,355 | $ 3,631 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 4,065 | $ 3,780 |
Operating cash flows from operating leases | 4,431 | 4,202 |
Operating lease assets obtained in exchange for new operating lease liabilities (1) | $ 1,656 | $ 102 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (93,061) | $ (109,077) |
Other comprehensive income (loss) before reclassification | (21,108) | (16,859) |
Amounts reclassified from accumulated other comprehensive loss | (1,114) | (578) |
Ending balance | (115,283) | (126,514) |
Unrealized gain (loss) on cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,641 | 954 |
Other comprehensive income (loss) before reclassification | (744) | 813 |
Amounts reclassified from accumulated other comprehensive loss | (963) | (435) |
Ending balance | (66) | 1,332 |
Unamortized gain on post-retirement plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 756 | 1,436 |
Other comprehensive income (loss) before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (151) | (143) |
Ending balance | 605 | 1,293 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (95,458) | (111,467) |
Other comprehensive income (loss) before reclassification | (20,364) | (17,672) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | $ (115,822) | $ (129,139) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income, Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Cash flow hedges | $ (128) | $ 66 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2023 | |
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | $ 2,870 | $ 2,757 | |
Deferred Revenue, Revenue Recognized | $ 314 | $ 306 | |
Remaining Performance Obligations Expected as Revenue During the Remainder of the Current Fiscal Year | 31% | ||
Remaining Performance Obligations Expected as Revenue Over the Next Full Fiscal Year | 30% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information By Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 331,983 | $ 322,569 |
Segment Profit | 66,641 | 57,903 |
Americas & Asia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 221,626 | 218,495 |
Segment Profit | 49,897 | 41,145 |
Europe & Australia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 110,357 | 104,074 |
Segment Profit | 16,744 | 16,758 |
Americas | Americas & Asia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 196,286 | 191,329 |
Asia | Americas & Asia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 25,340 | 27,166 |
Europe | Europe & Australia | ||
Segment Reporting Information [Line Items] | ||
Net sales | 96,333 | 90,192 |
Australia | Europe & Australia | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 14,024 | $ 13,882 |
Segment Information - Net Incom
Segment Information - Net Income Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Segment Reconciliation [Abstract] | ||
Total profit from reportable segments | $ 66,641 | $ 57,903 |
Unallocated amounts: | ||
Administrative costs | (6,911) | (6,517) |
Investment and other income (expense) | 438 | (157) |
Interest expense | (766) | (894) |
Income before income taxes | $ 59,402 | $ 50,335 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 4,163 | $ 2,958 |
Share-based Payment Arrangement, Expense, Tax Benefit | 425 | $ 192 |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrealized compensation cost related to share-based compensation, pre tax | $ 1,608 | |
Weighted average period remaining | 2 years 1 month 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrealized compensation cost related to share-based compensation, pre tax | $ 4,504 | |
Weighted average period remaining | 2 years 3 months 18 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrealized compensation cost related to share-based compensation, pre tax | $ 4,167 | |
Weighted average period remaining | 2 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Assumptions (Detail) - Stock Option [Member] | 3 Months Ended | |
Oct. 31, 2023 Rate | Oct. 31, 2022 Rate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 4 months 24 days | 5 years 8 months 12 days |
Expected volatility | 30.20% | 29.60% |
Expected dividend yield | 1.90% | 2% |
Risk-free interest rate | 4.70% | 3.70% |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Options Outstanding (Details) | 3 Months Ended |
Oct. 31, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |
Options Outstanding, Beginning Balance | 1,546,783 |
Options, Grants in Period | 52,097 |
Options, Exercised in Period | (174,370) |
Options, Forfeited or expired in Period | 5,433 |
Options Outstanding, Ending Balance | 1,419,077 |
Options Exercisable | 1,195,029 |
Stock-Based Compensation Stoc_2
Stock-Based Compensation Stock Options Weighted Average Exercise Price (Details) | 3 Months Ended |
Oct. 31, 2023 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Options Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 42.05 |
Options, Grants in Period, Weighted Average Exercise Price | 54.80 |
Options, Exercises in Period, Weighted Average Exercise Price | 36.57 |
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 48.82 |
Options Outstanding, Ending Balance, Weighted Average Exercise Price | 43.17 |
Options Exercisable, Weighted Average Exercise Price | $ 42.17 |
Stock-Based Compensation Stoc_3
Stock-Based Compensation Stock Options - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years | |
Options Exercisable, Weighted Average Remaining Contractual Term | 5 years 4 months 24 days | |
Options, Outstanding, Intrinsic Value | $ 12,727 | |
Options, Exercisable, Intrinsic Value | 11,851 | |
Proceeds from exercise of stock options | $ 2,598 | $ 349 |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of options granted during the period | $ 16.42 | $ 12.06 |
Options, Exercises in Period, Intrinsic Value | $ 3,410 | $ 364 |
Fair value of options vested | 1,729 | 2,458 |
Proceeds from exercise of stock options | 2,598 | 349 |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 841 | $ 91 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSU and PRSU Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested as of July 31, 2023 | 133,868 | |
Equity Instruments Other than Options, Grants in Period | 86,286 | |
Equity Instruments Other than Options, Vested in Period | (53,888) | |
Equity Instruments Other than Options, Forfeited in Period | (1,483) | |
Non-vested as of October 31, 2023 | 164,783 | |
Non-vested as of July 31, 2023, Weighted Average Grant Date Fair Value | $ 46.55 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 54.80 | $ 44.70 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 45.23 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 48.92 | |
Non-vested as of October 31, 2023, Weighted Average Grant Date Fair Value | $ 51.28 | |
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,974 | $ 2,608 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested as of July 31, 2023 | 63,448 | |
Equity Instruments Other than Options, Grants in Period | 65,956 | |
Equity Instruments Other than Options, Vested in Period | (2,786) | |
Equity Instruments Other than Options, Forfeited in Period | (19,436) | |
Non-vested as of October 31, 2023 | 107,182 | |
Non-vested as of July 31, 2023, Weighted Average Grant Date Fair Value | $ 58.39 | |
Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 51.16 | $ 55.77 |
Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 60.73 | |
Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 60.73 | |
Non-vested as of October 31, 2023, Weighted Average Grant Date Fair Value | $ 53.46 | |
Equity Instruments Other than Options, Vested in Period, Fair Value | $ 141 | $ 889 |
Net Income per Common Share - R
Net Income per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Earnings Per Share [Line Items] | ||
Net income | $ 47,241 | $ 39,441 |
Denominator for basic income per share for both Class A and Class B | 48,505 | 49,868 |
Plus: Effect of dilutive equity awards | 306 | 222 |
Denominator for diluted income per share for both Class A and Class B | 48,811 | 50,090 |
Class A Nonvoting Common Stock | ||
Earnings Per Share [Line Items] | ||
Basic | $ 0.97 | $ 0.79 |
Diluted | $ 0.97 | $ 0.79 |
Class B Voting Common Stock | ||
Earnings Per Share [Line Items] | ||
Preferential dividends | $ (748) | $ (769) |
Preferential dividends on dilutive stock options | (5) | (4) |
Numerator for basic and diluted income per Class B Voting Common Share | $ 46,488 | $ 38,668 |
Basic | $ 0.96 | $ 0.78 |
Diluted | $ 0.95 | $ 0.77 |
Net Income per Common Share - A
Net Income per Common Share - Additional Information (Detail) - shares | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive Shares | 313,787 | 583,533 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 16,584 | $ 18,288 |
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 exchange contracts | 247 | 492 |
Fair Value, Inputs, Level 2 [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange contracts | $ 488 | $ 189 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities Notional Amount of Derivative Contracts (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 68,245 | $ 44,464 |
Designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 63,760 | 39,661 |
Not designated as hedging Instruments [Member | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 4,485 | $ 4,803 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities Pre-Tax Gains and Losses related to Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net (loss) gain recognized in other comprehensive loss | $ (294) | $ 893 |
Foreign currency denominated debt (net investment hedges) | 1,508 | 0 |
Forward exchange contracts (cash flow hedges) | $ 1,285 | $ 581 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Values of Derivative Instruments in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 |
Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 247 | $ 492 |
Other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liabilities | $ 488 | $ 189 |
Foreign Line of Credit | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Long-Term Debt, Noncurrent | Other Long-Term Debt, Noncurrent |
Designated as hedging instruments [Member] | Prepaid expenses and other current assets [Member] | Foreign Exchange Contract | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 235 | $ 485 |
Designated as hedging instruments [Member] | Other current liabilities [Member] | Foreign Exchange Contract | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liabilities | $ 488 | $ 189 |
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 | Other Long-Term Debt, Noncurrent |
Not designated as hedging Instruments [Member | Prepaid expenses and other current assets [Member] | Foreign Exchange Contract | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets | $ 12 | $ 7 |
Not designated as hedging Instruments [Member | Other current liabilities [Member] | Foreign Exchange Contract | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Liabilities | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 31, 2023 | Jul. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 |
Derivative [Line Items] | ||||
Derivative maturity | 18 months | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 2 | $ 1,580 | ||
Accumulated other comprehensive loss | (115,283) | (93,061) | $ (126,514) | $ (109,077) |
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ (238) | $ (1,746) |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate (Details) | 3 Months Ended | |
Oct. 31, 2023 Rate | Oct. 31, 2022 Rate | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 20.50% | 21.60% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - $ / shares | Jan. 31, 2024 | Jan. 10, 2024 | Nov. 14, 2023 |
Subsequent Event [Line Items] | |||
Dividends Payable, Amount Per Share | $ 0.235 | ||
Dividends Payable, Date Declared | Nov. 14, 2023 | ||
Dividends Payable, Date to be Paid | Jan. 31, 2024 | ||
Dividends Payable, Date of Record | Jan. 10, 2024 |