STOCK-BASED AWARDS

12 Months Ended

Jul. 28, 2012

Stock-Based Awards [Abstract]

Stock-Based Awards

14. Stock-Based Awards

Stock-based compensation expense and the related tax benefit recognized during fiscal 2012, 2011 and 2010 were as follows:

	Fiscal Year Ended
	2012		2011		2010
	(Dollars in thousands)
Stock-based compensation expense	$	6,952	$	4,409	$	3,351
Tax benefit recognized in the Statement of Operations	$	2,412	$	1,284	$	806

The actual tax benefit realized for the tax deductions from option exercises and stock vestings totaled $2.8 million, $0.7 million and $0.6 million during fiscal 2012, 2011 and 2010, respectively.

As of July 28, 2012, unrecognized compensation expense related to stock options, RSUs and Performance RSUs was $7.5 million, $2.5 million and $12.9 million, respectively. This expense will be recognized over a weighted-average period of 2.3, 2.7 and 2.1 years, respectively, which is the weighted average remaining contractual term for RSUs and Performance RSUs. For performance based awards, the unrecognized compensation expense is based on the maximum amount of restricted share units that can be earned under outstanding awards. If the performance goals are not met, no compensation expense will be recognized for these share units and compensation expense previously recognized will be reversed.

The following table summarizes the significant assumptions and the valuation of stock options and restricted share units granted during fiscal 2012, 2011 and 2010:

	Fiscal Year Ended
	2012			2011			2010
Weighted average fair value of restricted share units granted	$	19.49		$	13.60		$	8.56
Weighted average fair value of performance restricted share units granted	$	19.47		$	10.60		$	12.25
Weighted average fair value of stock options granted	$	12.51		$	8.15		$	5.06
Stock option assumptions:
Risk-free interest rate		1.8	%		2.3	%		2.7	%
Expected life (years)		9.4			6.8			6.8
Expected volatility		56.1	%		58.6	%		58.4	%
Expected dividends		-			-			-

Stock Options

The following table summarizes stock option award activity during fiscal 2012:

	Stock Options
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
						(In years)		(In thousands)
Outstanding as of July 30, 2011		3,879,555		$	15.91
Granted		124,816		$	19.44
Options Exercised		(617,103	)	$	10.52
Forfeited or cancelled		(88,521	)	$	14.95
Outstanding as of July 28, 2012		3,298,747		$	17.08		5.7	$	15,150
Exercisable options as of July 28, 2012		1,880,936		$	21.05		4.0	$	6,636

Options exercisable presented above reflect 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 $17.68 on July 27, 2012. 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 $6.4 million, $1.1 million and less than $0.1 million for fiscal 2012, 2011 and 2010, respectively. The Company received cash from the exercise of stock options of $6.5 million, $1.3 million and less than $0.1 million during fiscal 2012, 2011 and 2010, respectively.

RSUs and Performance RSUs

RSUs and Performance RSUs will be settled in one share of the Company's common stock upon vesting. RSUs vest ratably over a period of four years. For RSUs, upon each annual vesting, 50% of the newly vested shares (net of any shares used to satisfy tax withholding obligations) are restricted from sale or transferability ("restricted holdings"). The restrictions on sale or transferability of the restricted holdings will end 90 days after termination of employment of the holder. When the holder has accumulated restricted holdings having a value equal to or greater than the holder's annual base salary then in effect, future grants will no longer be subject to the restriction on transferability.

The following table summarizes RSU and Performance RSU activity during fiscal 2012:

	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 30, 2011		215,319		$	11.56			149,552		$	10.49
Granted		95,095		$	19.49			721,596		$	19.47
Share Units Vested		(81,340	)	$	12.30			(17,745	)	$	10.09
Forfeited or cancelled		(6,314	)	$	11.88			(79,139	)	$	11.57
Outstanding as of July 28, 2012		222,760		$	14.49	$               3,938		774,264		$	18.76	$             13,689

The unvested time vesting share units reflect the approximate amount of units expected to vest after giving effect to estimated forfeitures.  The Performance RSUs in the above table represent the maximum number of awards that could vest, which is two hundred percent of the target award. Accordingly, the target amount of Performance RSUs outstanding as of July 28, 2012 was 387,132. Approximately 139,000 Performance RSUs outstanding as of July 28, 2012 will be cancelled in December 2012 as a result of the fiscal 2012 performance criteria. The total fair value of restricted share units vested during fiscal 2012, 2011 and 2010 was $1.9 million, $1.1 million and $1.5 million, respectively.

The aggregate intrinsic values for restricted share units are based on the Company's closing stock price of $17.68 on July 27, 2012. 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.