Stock-Based Awards

Stock-based compensation expense and the related tax benefit recognized and realized during the 2018 transition period and fiscal 2017, 2016, and 2015 were as follows (dollars in thousands):



	Six Months Ended		Fiscal Year Ended
	January 27, 2018		July 29, 2017		July 30, 2016		July 25, 2015
Stock-based compensation	$	13,277	$	20,805	$	16,850	$	13,923
Income tax effect of stock-based compensation	$	4,793	$	7,996	$	6,436	$	5,458

In addition, as a result of the Company’s application of ASU 2016-09, the Company recognized approximately $7.8 million of certain tax benefits from share-based award activities during the 2018 transition period.

As of January 27, 2018, 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 $2.8 million, $8.6 million, and $18.3 million, respectively. This expense will be recognized over a weighted-average number of years of 2.5, 2.5, and 1.9, respectively, based on the average remaining service periods for the awards. As of January 27, 2018, the Company may recognize an additional $7.9 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 the 2018 transition period and fiscal 2017, 2016, and 2015 and the significant valuation assumptions:



	Six Months Ended			Fiscal Year Ended
	January 27, 2018			July 29, 2017			July 30, 2016			July 25, 2015
Weighted average fair value of RSUs granted	$	87.34		$	79.04		$	72.41		$	31.42
Weighted average fair value of Performance RSUs granted	$	84.13		$	79.29		$	77.86		$	31.03
Weighted average fair value of stock options granted	$	42.60		$	39.90		$	45.13		$	19.48
Stock option assumptions:
Risk-free interest rate	2.3		%	2.3		%	2.0		%	2.1		%
Expected life (in years)	7.6			7.6			7.3			8.8
Expected volatility	43.4		%	44.7		%	55.0		%	54.5		%
Expected dividends	—			—			—			—

Stock Options

The following table summarizes stock option award activity during the 2018 transition period:



	Stock Options
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (In years)	Aggregate Intrinsic Value (In thousands)
Outstanding as of July 29, 2017	670,350		$	25.24
Granted	18,933		$	85.15
Options exercised	(52,553	)	$	14.17
Canceled	—		$	—
Outstanding as of January 27, 2018	636,730		$	27.93	4.8	$	58,176

Exercisable options as of January 27, 2018	549,507		$	21.63	4.2	$	53,670

The total amount of exercisable options as of January 27, 2018 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 presented above represent the total pre-tax intrinsic values (the difference between the Company’s closing stock price of $119.30 on the last trading day of the 2018 transition period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the 2018 transition period. The amount of aggregate intrinsic value will change based on the price of the Company’s common stock. The total intrinsic value of stock options exercised was $4.5 million, $7.8 million, $15.0 million, and $24.9 million for the 2018 transition period and fiscal 2017, 2016, and 2015, respectively. The Company received cash from the exercise of stock options of $0.7 million, $1.4 million, $2.7 million, and $8.9 million during the 2018 transition period and fiscal 2017, 2016, and 2015, respectively.

RSUs and Performance RSUs

The following table summarizes RSU and Performance RSU award activity during the 2018 transition period:



	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	29,672		$	87.34	138,261		$	84.13
Share units vested	(80,884	)	$	51.49	(272,466	)	$	57.98
Forfeited or canceled	(2,357	)	$	81.62	(29,350	)	$	60.32
Outstanding as of January 27, 2018	133,896		$	71.81	390,327		$	80.52

The total amount of granted Performance RSUs presented above consists of 99,627 target shares and 38,634 supplemental shares. During the 2018 transition period, 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 January 27, 2018 consists of 278,963 target shares and 111,364 supplemental shares.

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 the 2018 transition period and fiscal 2017, 2016, and 2015 was $37.7 million, $33.2 million, $39.1 million, and $15.2 million, respectively.