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Stock-Based Awards
 3 Months Ended
Oct. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Awards
Stock-Based Awards

The Company has certain stock-based compensation plans under which it grants stock-based awards, including stock options, restricted share units, and performance share units to attract, retain, and reward talented employees, officers and directors, and to align stockholder and employee interests.

Compensation expense for stock-based awards is based on fair value at the measurement date and fluctuates over time as a result of the vesting period of the stock-based awards and the Company’s performance, as measured by criteria set forth in the performance-based awards. This expense is included in general and administrative expenses in the condensed consolidated statements of operations and the amount of expense ultimately recognized depends on the number of awards that actually vest. Accordingly, stock-based compensation expense may vary from fiscal year to fiscal year.

The performance criteria for target awards are based on the Company’s fiscal year operating earnings (adjusted for certain amounts) as a percentage of contract revenues and its fiscal year operating cash flow level. Additionally, certain awards include three-year performance goals that, if met, result in supplemental shares awarded. For performance-based restricted share units (“Performance RSUs”), the Company evaluates compensation expense quarterly and recognizes expense for performance-based awards only if it determines it is probable that performance criteria for the awards will be met. In the event the Company determines it is no longer probable that it will achieve certain performance criteria for the awards, it would reverse the associated stock-based compensation expense that it had previously recognized in the period such determination is made.

Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during the three months ended October 29, 2016 and October 24, 2015 were as follows (dollars in thousands):
 
For the Three Months Ended
 
October 29, 2016
 
October 24, 2015
Stock-based compensation
$
5,707

 
$
4,509

Tax benefit recognized in the statement of operations
$
2,183

 
$
1,729


As of October 29, 2016, the Company had 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) of $2.5 million, $7.0 million, and $13.0 million, respectively. This expense will be recognized over a weighted-average number of years of 2.5, 2.5, and 1.5, respectively, based on the average remaining service periods for the awards. As of October 29, 2016, the Company may recognize an additional $4.5 million in compensation expense in future periods if the maximum amount of Performance RSUs is earned based on certain performance measures being met.

Stock Options

The following table summarizes stock option award activity during the three months ended October 29, 2016:

 
Stock Options
 
Shares
 
Weighted Average Exercise Price
Outstanding as of July 30, 2016
737,267

 
$
20.99

Granted
—

 
$
—

Options exercised
(22,284
)
 
$
9.08

Canceled
(1,000
)
 
$
6.83

Outstanding as of October 29, 2016
713,983

 
$
21.39

 
 
 
 
Exercisable options as of October 29, 2016
530,211

 
$
15.92



RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU award activity during the three months ended October 29, 2016:
 
Restricted Stock
 
RSUs
 
Performance RSUs
 
Share Units
 
Weighted Average Grant Price
 
Share Units
 
Weighted Average Grant Price
Outstanding as of July 30, 2016
251,264

 
$
42.56

 
625,971

 
$
47.66

Granted
571

 
$
93.78

 
31,564

 
$
85.64

Share units vested
(8,396
)
 
$
65.25

 
(30,518
)
 
$
42.15

Forfeited or canceled
(785
)
 
$
25.79

 
(51,145
)
 
$
40.44

Outstanding as of October 29, 2016
242,654

 
$
41.95

 
575,872

 
$
50.67



The total amount of granted Performance RSUs presented above consists of 15,782 target shares and 15,782 supplemental shares granted to officers of the Company. During the three months ended October 29, 2016, the Company canceled 49,797 supplemental shares of Performance RSUs outstanding as of July 30, 2016, as a result of the fiscal 2016 performance criteria for attaining those supplemental shares not being met. The total amount of Performance RSUs outstanding as of October 29, 2016 consists of 487,333 target shares and 88,539 supplemental shares.