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Stock-Based Awards
 3 Months Ended
Oct. 28, 2017
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 common stock, stock options, restricted share units, and performance-based restricted share units (“Performance RSUs”) 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. It fluctuates over time as a function of the duration of vesting periods of the stock-based awards and the Company’s performance, as measured by criteria set forth in 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 quantity of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period.

The performance criteria for the Company’s performance-based equity awards utilize 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 (adjusted for certain amounts). Additionally, certain awards include three-year performance goals that, if met, result in supplemental shares awarded. For 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.

Stock-based compensation expense and the related tax benefit recognized related to stock options and restricted share units during the three months ended October 28, 2017 and October 29, 2016 were as follows (dollars in thousands):
 
For the Three Months Ended
 
October 28, 2017
 
October 29, 2016
Stock-based compensation
$
7,380

 
$
5,707

Related tax benefit for stock-based compensation
$
2,882

 
$
2,183


In addition, as a result of the Company’s adoption of ASU 2016-09, the Company recognized approximately $0.9 million of certain tax benefits from share-based award activities during the three months ended October 28, 2017.

As of October 28, 2017, 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 $3.2 million, $9.5 million, and $22.1 million, respectively. This expense will be recognized over a weighted-average number of years of 2.5, 2.7, and 2.1, respectively, based on the average remaining service periods for the awards. As of October 28, 2017, the Company may recognize an additional $8.7 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 28, 2017:
 
Stock Options
 
Shares
 
Weighted Average Exercise Price
Outstanding as of July 29, 2017
670,350

 
$
25.24

Granted
18,933

 
$
85.15

Options exercised
(21,325
)
 
$
9.57

Canceled
—

 
$
—

Outstanding as of October 28, 2017
667,958

 
$
27.44

 
 
 
 
Exercisable options as of October 28, 2017
518,053

 
$
18.70



RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU award activity during the three months ended October 28, 2017:
 
Restricted Stock
 
RSUs
 
Performance RSUs
 
Share Units
 
Weighted Average Grant Price
 
Share Units
 
Weighted Average Grant Price
Outstanding as of July 29, 2017
187,465

 
$
60.71

 
553,882

 
$
67.46

Granted
25,227

 
$
85.31

 
138,261

 
$
84.13

Share units vested
(9,218
)
 
$
62.66

 
(36,121
)
 
$
56.08

Forfeited or canceled
—

 
$
—

 
(24,753
)
 
$
57.32

Outstanding as of October 28, 2017
203,474

 
$
63.67

 
631,269

 
$
72.16



The total amount of granted Performance RSUs presented above consists of 99,627 target shares and 38,634 supplemental shares. During the three months ended October 28, 2017, the Company canceled 21,139 supplemental shares of Performance RSUs, as a result of the fiscal 2017 performance criteria for attaining those supplemental shares being partially met. The total amount of Performance RSUs outstanding as of October 28, 2017 consists of 487,635 target shares and 143,634 supplemental shares.