XML 35 R24.htm IDEA: XBRL DOCUMENT
v3.20.2

Stock-Based Awards | 9 Months Ended
--- | ---
Oct. 24, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Awards | Stock-Based Awards We have certain stock-based compensation plans under which we grant stock-based awards, including common stock, stock options, time-based restricted share units (“RSUs”), and performance-based restricted share units (“Performance RSUs”) to attract, retain, and reward talented employees, officers, and directors, and to align stockholder and employee interests. Compensation expense for stock-based awards is based on fair value at the measurement date. This expense fluctuates over time as a function of the duration of vesting periods of the stock-based awards and the Company’s performance, as measured by criteria set forth in performance-based awards. Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized depends on the quantity of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period. The performance criteria for the Company’s performance-based equity awards utilize the Company’s operating earnings (adjusted for certain amounts) as a percentage of contract revenues for the applicable four-quarter period (a “Performance Year”) and its Performance Year operating cash flow level (adjusted for certain amounts). Additionally, certain awards include three-year performance measures that, if met, result in supplemental shares awarded. For 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. Stock-based compensation expense and the related tax benefit recognized during the three and nine months ended October 24, 2020 and October 26, 2019 were as follows (dollars in thousands):
| For the Three Months Ended |  | For the Nine Months Ended
| October 24, 2020 |  | October 26, 2019 |  | October 24, 2020 |  | October 26, 2019
Stock-based compensation | $ | 3,796 |  |  | $ | 2,694 |  |  | $ | 10,490 |  |  | $ | 8,450 |
Income tax effect of stock-based compensation | $ | 944 |  |  | $ | 669 |  |  | $ | 2,606 |  |  | $ | 2,098 |
In addition, during the three months ended October 24, 2020 and October 26, 2019, the Company realized a nominal amount of excess tax benefits and approximately $0.2 million of net tax deficiencies, respectively, related to the vesting and exercise of share-based awards. During the nine months ended October 24, 2020 and October 26, 2019, the Company realized approximately $0.2 million of net excess tax benefits and $0.8 million of net tax deficiencies, respectively. As of October 24, 2020, we had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs (based on the Company’s expected achievement of performance measures) of $1.9 million, $16.6 million, and $7.2 million, respectively. This expense will be recognized over a weighted-average number of years of 2.5, 2.7, and 1.2, respectively, based on the average remaining service periods for the awards. As of October 24, 2020, we may recognize an additional $11.2 million in compensation expense in future periods if the maximum number of Performance RSUs is earned based on certain performance measures being met. Stock Options The following table summarizes stock option award activity during the nine months ended October 24, 2020:
| Stock Options
| Shares |  | Weighted Average Exercise Price
Outstanding as of January 25, 2020 | 577,309 |  |  | $ | 36.85 |
Granted | 63,304 |  |  | $ | 25.15 |
Options exercised | (275,275) |  |  | $ | 19.71 |
Canceled | — |  |  | $ | — |
Outstanding as of October 24, 2020 | 365,338 |  |  | $ | 47.74 |
Exercisable options as of October 24, 2020 | 244,215 |  |  | $ | 48.49 |
RSUs and Performance RSUs The following table summarizes RSU and Performance RSU award activity during the nine months ended October 24, 2020:
| Restricted Stock
| RSUs |  | Performance RSUs
| Share Units |  | Weighted Average Grant Date Fair Value |  | Share Units |  | Weighted Average Grant Date Fair Value
Outstanding as of January 25, 2020 | 174,917 |  |  | $ | 65.05 |  |  | 639,738 |  |  | $ | 62.60 |
Granted | 537,618 |  |  | $ | 25.74 |  |  | 65,538 |  |  | $ | 25.15 |
Share units vested | (53,072) |  |  | $ | 65.48 |  |  | (17,134) |  |  | $ | 70.14 |
Forfeited or canceled | (13,206) |  |  | $ | 47.21 |  |  | (258,524) |  |  | $ | 66.79 |
Outstanding as of October 24, 2020 | 646,257 |  |  | $ | 32.68 |  |  | 429,618 |  |  | $ | 54.06 |
The total number of granted Performance RSUs presented above consists of 32,769 target shares and 32,769 supplemental shares. The total number of Performance RSUs outstanding as of October 24, 2020 consists of 286,151 target shares and 143,467 supplemental shares. With respect to the Company’s Performance Year ended July 25, 2020, the Company canceled 23,141 target shares and 11,336 supplemental shares during the three months ended October 24, 2020 as a result of the performance period criteria being partially met.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration