Stock-Based Awards

3 Months Ended

Oct. 24, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company has certain stock-based compensation plans which provide for the grants of stock-based awards, including stock options, restricted shares, performance shares, restricted share units, performance share units, and stock appreciation rights.

Compensation expense for stock-based awards is based on fair value at the measurement date and fluctuates over time as a result of the vesting period of the stock-based awards and Company's performance, as measured by criteria set forth in the performance-based awards. Expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized is based on the number of awards that actually vest. For performance-based restricted share units ("Performance RSUs"), the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if it determines it is probable that performance criteria for the awards will be met. Accordingly, future stock-based compensation expense may vary from fiscal year to fiscal year.

Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during the three months ended October 24, 2015 and October 25, 2014 were as follows:



	For the Three Months Ended
	October 24, 2015		October 25, 2014
	(Dollars in thousands)
Stock-based compensation	$	4,509	$	3,890
Tax benefit recognized in the statement of operations	$	1,729	$	1,464

As of October 24, 2015, the Company had total unrecognized compensation expense of $21.1 million related to stock options, time-based restricted share units ("RSUs") and target Performance RSUs (based on the Company's estimate of performance goal achievement) of $2.6 million, $7.1 million, and $11.4 million, respectively. This expense will be recognized over a weighted-average period of 2.4 years, 2.6 years, and 1.5 years, respectively, based on the average remaining service periods for the awards. Based on the Performance RSUs outstanding as of October 24, 2015, the Company may recognize an additional $2.9 million in compensation expense in future periods if the maximum amount of restricted share units is earned based on certain performance goals being met.

Stock Options

The following table summarizes stock option award activity during the three months ended October 24, 2015:



	Stock Options
	Shares		Weighted Average Exercise Price

Outstanding as of July 25, 2015	915,323		$	16.86
Options exercised	(12,788	)	$	10.84
Canceled	(800	)	$	13.88
Outstanding as of October 24, 2015	901,735		$	16.95

Exercisable options as of October 24, 2015	643,467		$	13.52

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU activity during the three months ended October 24, 2015:



	Restricted Stock
	RSUs				Performance RSUs
	Share Units		Weighted Average Grant Price		Share Units		Weighted Average Grant Price

Outstanding as of July 25, 2015	322,008		$	24.46	945,540		$	26.46
Granted	32,451		$	63.19	33,116		$	75.79
Share units vested	(783	)	$	64.00	(39,190	)	$	22.84
Forfeited or canceled	(1,820	)	$	25.62	(176,008	)	$	21.32
Outstanding as of October 24, 2015	351,856		$	27.94	763,458		$	29.97

The total amount of granted Performance RSUs presented above consists of 16,558 target shares and 16,558 supplemental shares granted to officers. During the three months ended October 24, 2015, the Company canceled approximately 169,790 supplemental shares of Performance RSUs outstanding as of July 25, 2015, as a result of fiscal 2015 performance criteria for attaining supplemental shares not being met. The total amount of Performance RSUs outstanding as of October 24, 2015 consists of 688,453 target shares and 75,005 supplemental shares.