Stock-Based Awards

9 Months Ended

Apr. 25, 2015

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 fair value at the measurement date and fluctuates over time as a result of the Company's performance, as measured by the criteria set forth in the performance-based awards, as well as the vesting period of all stock-based awards. The expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized is based on the number of awards that actually vest. 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 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 and nine months endedApril 25, 2015 and April 26, 2014 were as follows:

	For the Three Months Ended				For the Nine Months Ended
	April 25, 2015		April 26, 2014		April 25, 2015		April 26, 2014
	(Dollars in thousands)
Stock-based compensation	$	3,219	$	2,671	$	10,773	$	9,721
Tax benefit recognized in the statement of operations	$	1,248	$	1,071	$	4,221	$	3,736

As of April 25, 2015, unrecognized compensation expense related to stock options, time-based restricted share units ("RSUs") and target Performance RSUs (based on the Company's estimate of performance goal achievement) was $3.5 million, $6.9 million, and $15.5 million, respectively. This expense will be recognized over a weighted-average period of 2.7 years, 2.5 years and 1.6 years, respectively, which is based on the average remaining service periods of the awards. As of April 25, 2015, the Company may recognize an additional $5.3 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 nine months endedApril 25, 2015:

	Stock Options
	Shares		Weighted Average Exercise Price
Outstanding as of July 26, 2014	2,044,893		$	18.68
Granted	90,686		$	31.46
Options exercised	(536,538	)	$	12.75
Forfeited or canceled	(484,126	)	$	34.48
Outstanding as of April 25, 2015	1,114,915		$	15.72
Exercisable options as of April 25, 2015	856,647		$	12.77

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU activity during the nine months ended April 25, 2015:

	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	100,360		$	31.15	416,987		$	31.03
Share units vested	(134,764	)	$	19.55	(317,908	)	$	21.59
Forfeited or canceled	(13,781	)	$	19.27	(333,977	)	$	19.98
Outstanding as of April 25, 2015	350,746		$	24.09	955,286		$	26.45

The granted Performance RSUs in the above table is comprised of 357,331 target shares, granted to officers and employees, and 59,656 supplemental shares granted to officers. During fiscal 2015, the Company canceled 312,163 Performance RSUs outstanding as of July 26, 2014, including 48,313 target shares and 263,850 supplemental shares, as a result of the fiscal 2014 performance criteria not being fully met. The total amount of Performance RSUs outstanding as of April 25, 2015 is comprised of 725,438 target shares and 229,848 supplemental shares.