XML 75 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-Based Awards (Notes)
 6 Months Ended
Jan. 26, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Awards
Stock-Based Awards

The Company has certain stock-based compensation plans which provide for the grants of stock options, time based restricted share units (“RSUs”), and performance based restricted share units (“Performance RSUs”).

On November 20, 2012, the shareholders of the Company approved the Dycom Industries, Inc. 2012 Long-Term Incentive Plan (the "2012 Plan"). The 2012 Plan authorizes 3,000,000 shares of common stock for grants of stock options, RSUs and Performance RSUs to key employees and officers of the Company. No new awards will be made under the Company's previous 2003 Long-Term Incentive Plan. As of January 26, 2013, the number of shares available for grant under the 2012 Plan was 1,845,244.

Compensation expense for stock-based awards is based on the fair value at the measurement date and is included in general and administrative expenses in the condensed consolidated statements of operations. Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during the three and six months ended January 26, 2013 and January 28, 2012 were as follows:
 
For the Three Months Ended
 
For the Six Months Ended
 
January 26, 2013
 
January 28, 2012
 
January 26, 2013
 
January 28, 2012
 
(Dollars in thousands)
Stock-based compensation
$
2,496

 
$
1,642

 
$
4,762

 
$
2,968

Tax benefit recognized
$
(1,063
)
 
$
(729
)
 
$
(1,827
)
 
$
(1,101
)


As of January 26, 2013, unrecognized compensation expense related to stock options, RSUs and target Performance RSUs was $7.1 million, $7.7 million and $10.9 million, respectively. The Company may recognize an additional $12.2 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. Any compensation expense previously recognized with respect to Performance RSUs will be reversed to the extent the performance goals are not met. Unrecognized compensation expense related to stock options, RSUs and Performance RSUs will be recognized over a weighted-average period of 2.4, 3.4 and 1.7 years, respectively, which is the weighted average remaining contractual term for RSUs and Performance RSUs.

 Stock Options - The following table summarizes stock option award activity during the six months ended January 26, 2013:
 
 
Stock Options
 
Shares
 
Weighted Average Exercise Price
 
 
 
 
Outstanding as of July 28, 2012
3,298,747

 
$17.08
Granted
144,155

 
$18.47
Options exercised
(276,106
)
 
$10.47
Forfeited or cancelled
(108,545
)
 
$23.86
Outstanding as of January 26, 2013
3,058,251

 
$17.51
 
 
 
 
Exercisable options as of January 26, 2013
2,161,871

 
$19.00


RSUs and Performance RSUs - The following table summarizes RSU and Performance RSU activity during the six months ended January 26, 2013:

 
Restricted Stock
 
RSUs
Performance RSUs
 
Share Units
 
Weighted Average Grant Price
 
Share Units
 
Weighted Average Grant Price
 
 
 
 
 
 
 
 
 
 
Outstanding as of July 28, 2012
222,760

 
$14.49
 
774,264

 
$18.76
 
Granted
327,603

 
$18.36
 
831,390

 
$18.08
 
Share units vested
(88,619
)
 
$12.79
 
(137,432
)
 
$18.23
 
Forfeited or cancelled
(4,281
)
 
$10.14
 
(149,854
)
 
$18.34
 
Outstanding as of January 26, 2013
457,463

 
$17.60
 
1,318,368

 
$18.44
 

 
Included in the RSU shares granted during the six months ended January 26, 2013 was approximately 219,000 shares at an average grant price of $18.29 to employees of the Acquired Subsidiaries as of the date of acquisition. The Performance RSUs in the above table represent the maximum number of awards that could vest, which is two hundred percent of the target awards. Accordingly, the target amount of Performance RSUs outstanding as of January 26, 2013 was 659,184. During the six months ended January 26, 2013, 137,432 Performance RSUs outstanding as of July 28, 2012 were cancelled due to certain fiscal 2012 performance criteria not being met.