Stock-Based Awards

Stock-based compensation expense and the related tax benefit recognized and realized related to stock options and restricted share units during fiscal 2016, 2015, and 2014 were as follows (dollars in thousands):



	Fiscal Year Ended
	2016		2015		2014
Stock-based compensation	$	16,850	$	13,923	$	12,596
Tax benefit recognized in the statement of operations	$	6,436	$	5,458	$	4,819
Cash tax benefit realized from option exercises and stock vestings	$	18,097	$	13,976	$	7,116

During fiscal 2016 and 2015, the Company recognized approximately $10.4 million and $8.5 million, respectively, in stock-based compensation expense in connection with certain performance-based target awards related to the fiscal 2016 performance criteria. In addition, during fiscal 2016, the Company recognized approximately $0.6 million in stock-based compensation expense in connection with supplemental shares for the three-year performance period ending fiscal 2016. The Company did not recognize any stock-based compensation expense in connection with supplemental shares during fiscal 2015 or 2014.

As of July 30, 2016, the Company had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs (based on the Company’s estimate of performance goal achievement) of $2.9 million, $8.0 million, and $15.4 million, respectively. This expense will be recognized over a weighted-average number of years of 2.6, 2.7, and 1.4, respectively, based on the average remaining service periods for the awards. As of July 30, 2016, the Company may recognize an additional $4.3 million in compensation expense in future periods if the maximum amount of Performance RSUs is earned based on certain performance measures being met.

The following table summarizes the valuation of stock options and restricted share units granted during fiscal 2016, 2015, and 2014 and the significant valuation assumptions:



	Fiscal Year Ended
	2016			2015			2014
Weighted average fair value of RSUs granted	$	72.41		$	31.42		$	27.54
Weighted average fair value of Performance RSUs granted	$	77.86		$	31.03		$	27.66
Weighted average fair value of stock options granted	$	78.20		$	19.48		$	17.43
Stock option assumptions:
Risk-free interest rate	2.0		%	2.1		%	2.7		%
Expected life (in years)	7.3			8.8			8.8
Expected volatility	55.0		%	54.5		%	55.1		%
Expected dividends	—			—			—

Stock Options

The following table summarizes stock option award activity during fiscal 2016:



	Stock Options
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding as of July 25, 2015	915,323		$	16.86
Granted	35,863		$	78.20
Options exercised	(212,619	)	$	12.91
Canceled	(1,300	)	$	13.88
Outstanding as of July 30, 2016	737,267		$	20.99	5.5	$	53,862

Exercisable options as of July 30, 2016	553,495		$	15.63	4.7	$	43,405

The total amount of exercisable options as of July 30, 2016 presented above reflects 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 presented above are based on the Company’s closing stock price of $94.05 on July 29, 2016. 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, excluding applicable taxes. The total intrinsic value of stock options exercised was $15.0 million, $24.9 million, and $8.4 million for fiscal 2016, 2015, and 2014, respectively. The Company received cash from the exercise of stock options of $2.7 million, $8.9 million, and $14.6 million during fiscal 2016, 2015, and 2014, respectively.

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU award activity during fiscal 2016:



	Restricted Stock
	RSUs						Performance RSUs
	Share Units		Weighted Average Grant Price		Aggregate Intrinsic Value (In thousands)		Share Units		Weighted Average Grant Price		Aggregate Intrinsic Value (In thousands)
Outstanding as of July 25, 2015	322,008		$	24.46			945,540		$	26.46
Granted	92,429		$	72.41			238,209		$	77.86
Share units vested	(139,921	)	$	23.67			(361,998	)	$	25.28
Forfeited or canceled	(23,252	)	$	24.28			(195,780	)	$	23.40
Outstanding as of July 30, 2016	251,264		$	42.56	$	23,631	625,971		$	47.66	$	58,873

The total amount of granted Performance RSUs presented above consists of 170,304 target shares granted to officers and employees and 67,905 supplemental shares granted to officers of the Company and its subsidiaries. During fiscal 2016, the Company canceled approximately 169,790 supplemental shares of Performance RSUs outstanding as of July 25, 2015, as a result of fiscal 2015 performance criteria for attaining supplemental shares not being met. The total amount of Performance RSUs outstanding as of July 30, 2016 consists of 500,681 target shares and 125,290 supplemental shares. Of the supplemental shares outstanding as of July 30, 2016, approximately 11,043 shares will vest and approximately 49,797 will be canceled in fiscal 2017 as a result of the fiscal 2016 performance criteria for attaining supplemental shares being partially met.

The unvested RSUs reflect the approximate amount of units expected to vest after giving effect to estimated forfeitures at an insignificant rate. The total fair value of restricted share units vested during fiscal 2016, 2015, and 2014 was $39.1 million, $15.2 million, and $11.7 million, respectively.

The aggregate intrinsic values presented above for restricted share units are based on the Company’s closing stock price of $94.05 on July 29, 2016. 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, excluding applicable taxes.