Stock-Based Awards

3 Months Ended

Oct. 25, 2014

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-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 the fair value at the measurement date and is included in general and administrative expenses in the condensed consolidated statements of operations. The total amount of stock-based compensation expense ultimately recognized is based on the number of awards that actually vest and fluctuates as a result of performance criteria for performance-based awards, as well as the vesting period of all stock-based awards. For performance share units ("Performance RSUs"), the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if management determines it is probable that the performance criteria for the awards will be met. Accordingly, the amount of compensation expense recognized during any fiscal year may not be representative of future stock-based compensation expense.

Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during the three months ended October 25, 2014 and October 26, 2013 are as follows:

	For the Three Months Ended
	October 25, 2014		October 26, 2013
	(Dollars in thousands)
Stock-based compensation	$	3,890	$	3,506
Tax benefit recognized in the statement of operations	$	1,464	$	1,299

As of October 25, 2014, unrecognized compensation expense related to stock options, time-based restricted share units ("RSUs") and target Performance RSUs was $2.7 million, $5.8 million and $9.7 million, respectively, based on the Company's estimate of performance goal achievement. This expense will be recognized over a weighted-average period of 2.2 years, 2.4 years and 1.5 years, respectively, which is based on the average remaining service periods of the awards. As of October 25, 2014, the Company may recognize an additional $4.5 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.

Stock Options

The following table summarizes stock option award activity during the three months ended October 25, 2014:

	Stock Options
	Shares		Weighted Average Exercise Price
Outstanding as of July 26, 2014	2,044,893		$	18.68
Granted	—		$	—
Options exercised	(39,525	)	$	14.35
Forfeited or canceled	(5,966	)	$	27.80
Outstanding as of October 25, 2014	1,999,402		$	18.74
Exercisable options as of October 25, 2014	1,531,775		$	18.89

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU activity during the three months ended October 25, 2014:

	Restricted Stock
	RSUs				Performance RSUs
	Share Units		Weighted Average Grant Price		Share Units		Weighted Average Grant Price
Outstanding as of July 26, 2014	398,931		$	20.61	1,190,184		$	21.73
Granted	984		$	28.44	68,418		$	28.84
Share units vested	(984	)	$	28.44	(37,512	)	$	19.83
Forfeited or canceled	(291	)	$	19.26	(323,687	)	$	19.79
Outstanding as of October 25, 2014	398,640		$	20.61	897,403		$	23.05

The granted Performance RSUs in the above table is comprised of 34,209 target shares and 34,209 supplemental shares granted to officers. Approximately 312,163 Performance RSUs outstanding as of July 26, 2014, including 48,313 target shares and 263,850 supplemental shares, were canceled during the first quarter of fiscal 2015 as a result of the fiscal 2014 performance criteria not being fully met. The total amount of Performance RSUs outstanding as of October 25, 2014 is comprised of 690,342 target shares and 207,061 supplemental shares.