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Stock-Based Awards | 6 Months Ended
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Jul. 26, 2025
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 annual 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. During the three months ended July 27, 2024, the Company announced its CEO succession plan and transition. In connection with this transition, the Company incurred approximately $11.4 million of incremental stock-based compensation modification expense in fiscal 2025 related to previously issued equity awards. Of this total, approximately $2.2 million was recognized during the three months ended July 27, 2024. Stock-based compensation expense and the related tax benefit recognized during the three and six months ended July 26, 2025 and July 27, 2024 were as follows (dollars in thousands):
| For the Three Months Ended |  | For the Six Months Ended
| July 26, 2025 |  | July 27, 2024 |  | July 26, 2025 |  | July 27, 2024
Stock-based compensation | $ | 8,100 |  |  | $ | 9,482 |  |  | $ | 17,199 |  |  | $ | 17,305 |
Income tax effect of stock-based compensation | $ | 1,998 |  |  | $ | 2,330 |  |  | $ | 4,237 |  |  | $ | 4,269 |
During the three months ended July 26, 2025 and July 27, 2024, the Company realized $0.6 million and $0.1 million of net excess tax benefits, respectively, related to the vesting and exercise of share-based awards. During the six months ended July 26, 2025 and July 27, 2024, the Company realized approximately $2.8 million and $6.0 million of net excess tax benefits, respectively, related to the vesting and exercise of share-based awards. As of July 26, 2025, 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 $0.9 million, $41.0 million, and $18.4 million, respectively. This expense will be recognized over a weighted-average number of years of 2.2, 2.5, and 1.4, respectively, based on the average remaining service periods for the awards. We may recognize an additional $11.8 million in compensation expense in future periods after July 26, 2025 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 six months ended July 26, 2025:
| Stock Options
| Shares |  | Weighted Average Exercise Price
Outstanding as of January 25, 2025 | 111,311 |  |  | $ | 106.13 |
Granted | — |  |  | $ | — |
Options exercised | (39,071) |  |  | $ | 99.79 |
Outstanding as of July 26, 2025 | 72,240 |  |  | $ | 109.55 |
Exercisable options as of July 26, 2025 | 24,147 |  |  | $ | 97.91 |
RSUs and Performance RSUs The following table summarizes RSU and Performance RSU award activity during the six months ended July 26, 2025:
| 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, 2025 | 300,826 |  |  | $ | 121.35 |  |  | 366,433 |  |  | $ | 118.51 |
Granted | 149,031 |  |  | $ | 164.13 |  |  | 95,514 |  |  | $ | 161.57 |
Share units vested | (98,992) |  |  | $ | 112.31 |  |  | (144,159) |  |  | $ | 109.43 |
Forfeited or cancelled | (2,241) |  |  | $ | 122.08 |  |  | (43,487) |  |  | $ | 109.37 |
Outstanding as of July 26, 2025 | 348,624 |  |  | $ | 142.20 |  |  | 274,301 |  |  | $ | 139.73 |
The total number of granted Performance RSUs presented above consists of 47,757 target shares and 47,757 supplemental shares. The total number of Performance RSUs outstanding as of July 26, 2025 consists of 170,721 target shares and 103,580 supplemental shares. With respect to the Company’s Performance Year ended January 25, 2025, the Company added 17,287 supplemental shares and cancelled 41,466 supplemental shares during the six months ended July 26, 2025, as a result of the performance period criteria not being met.

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