Stock-Based Awards

Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during fiscal 2014, 2013 and 2012 are as follows:



	Fiscal Year Ended
	2014		2013		2012
	(Dollars in thousands)
Stock-based compensation	$	12,596	$	9,902	$	6,952
Tax benefit recognized in the statement of operations	$	4,819	$	3,782	$	2,412

The actual tax benefit realized for the tax deductions from option exercises and stock vestings totaled $7.1 million, $3.4 million and $2.8 million during fiscal 2014, 2013 and 2012, respectively.

As of July 26, 2014, unrecognized compensation expense related to stock options, RSUs and target Performance RSUs was $3.5 million, $6.5 million and $11.3 million, respectively, based on the Company's estimate of performance goal achievement. This expense will be recognized over a weighted-average period of 2.2 years, 2.6 years and 1.5 years, respectively, which is based on the average remaining service periods of the awards. As of July 26, 2014, the Company may recognize an additional $3.5 million in compensation expense related to Performance RSUs if the maximum amount of restricted share units are earned based on certain performance goals being met.

The following table summarizes the valuation of stock options and restricted share units granted during fiscal 2014, 2013 and 2012 and the significant valuation assumptions:



	Fiscal Year Ended
	2014			2013			2012
Weighted average fair value of RSUs granted	$	27.54		$	18.52		$	19.49
Weighted average fair value of Performance RSUs granted	$	27.66		$	18.08		$	19.47
Weighted average fair value of stock options granted	$	17.43		$	11.66		$	12.51
Stock option assumptions:
Risk-free interest rate	2.7		%	1.6		%	1.8		%
Expected life (years)	8.8			9.3			9.4
Expected volatility	55.1		%	55.4		%	56.1		%
Expected dividends	—			—			—

Stock Options

The following table summarizes stock option award activity during fiscal 2014:



	Stock Options
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
					(In years)	(In thousands)
Outstanding as of July 27, 2013	2,769,132		$	18.27
Granted	89,956		$	27.50
Options exercised	(803,796	)	$	18.12
Forfeited or canceled	(10,399	)	$	27.00
Outstanding as of July 26, 2014	2,044,893		$	18.68	4.8	$	23,545

Exercisable options as of July 26, 2014	1,575,300		$	18.81	3.9	$	18,566

The exercisable options as of July 26, 2014 presented in the above table reflects the approximate amount of options expected to vest after giving effect to estimated forfeitures at an insignificant rate. The aggregate intrinsic values for stock options in the above table are based on the Company’s closing stock price of $28.85 on July 25, 2014. These amounts represent the total intrinsic value that would have been received by the holders of the stock-based awards had the awards been exercised and sold as of that date, before any applicable taxes. The total intrinsic value of stock options exercised was $8.4 million, $6.0 million and $6.4 million for fiscal 2014, 2013 and 2012, respectively. The Company received cash from the exercise of stock options of $14.6 million, $5.3 million and $6.5 million during fiscal 2014, 2013 and 2012, respectively.

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU activity during fiscal 2014:



	Restricted Stock
	RSUs						Performance RSUs
	Share Units		Weighted Average Grant Price		Aggregate Intrinsic Value		Share Units		Weighted Average Grant Price		Aggregate Intrinsic Value
					(In thousands)						(In thousands)
Outstanding as of July 27, 2013	463,318		$	17.78			1,315,138		$	18.44
Granted	101,615		$	27.54			429,485		$	27.66
Share units vested	(158,441	)	$	16.53			(265,025	)	$	18.35
Forfeited or canceled	(7,561	)	$	19.27			(289,414	)	$	18.64
Outstanding as of July 26, 2014	398,931		$	20.61	$	11,509	1,190,184		$	21.73	$	34,337

The granted Performance RSUs in the above table is comprised of 373,465 target shares granted to officers and employees and 56,020 supplemental shares granted to officers. Approximately 265,000 Performance RSUs outstanding as of July 27, 2013 were canceled during the first quarter of fiscal 2014 as a result of the fiscal 2013 performance criteria for attaining supplemental shares not being met. Approximately 48,275 target shares and 248,909 supplemental shares outstanding as of July 26, 2014 will be canceled in fiscal 2015 as a result of the fiscal 2014 performance criteria not being fully met. The total amount of Performance RSUs outstanding as of July 26, 2014 is comprised of 749,751 target shares and 440,433 supplemental shares.

The unvested RSUs reflect the approximate amount of units expected to vest after giving effect to estimated forfeitures. The total fair value of restricted share units vested during fiscal 2014, 2013 and 2012 was $11.7 million, $4.2 million and $1.9 million, respectively.

The aggregate intrinsic values for restricted share units are based on the Company’s closing stock price of $28.85 on July 25, 2014. These amounts represent the total intrinsic value that would have been received by the holders of the stock-based awards had the awards been exercised and sold as of that date, before any applicable taxes.