Employee Benefit Plans

9 Months Ended

May 02, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Long-Term Incentive Plan

The Company offers a long-term incentive program (“LTIP”) for vice presidents and above under the 2016 Omnibus Incentive Plan. The LTIP entitles the holder to either a cash payment, or a stock payment for certain officers at the Company’s option, equal to a predetermined target amount earned at the end of a performance period and is subject to (a) the grantee’s continuing employment and (b) the Company’s achievement of certain performance goals over a one or three-year performance period. Compensation expense for the LTIP is recognized over the related performance periods based on the expected achievement of the performance goals.

The Company recognized $(1.4) million in compensation expense for the nine months ended May 2, 2020 and $2.1 million for the nine months ended May 4, 2019, which was recorded within Selling, general and administrative expenses in the condensed consolidated financial statements. Amounts included in discontinued operations were not material in either period.

As of May 2, 2020, there was $6.9 million of expected unrecognized compensation cost related to the LTIP, which is expected to be recognized over a remaining weighted-average vesting period of 1.1 years. As of May 2, 2020, the liability for LTIP Awards was $9.3 million of which $3.3 million was classified within Accrued expenses and other current liabilities and $6.0 million was classified within Other non-current liabilities in the condensed consolidated balance sheets. No amounts were paid during the nine months ended May 2, 2020 and May 4, 2019, however amounts were paid in the fourth quarter of Fiscal 2020. Refer to Note 21 for more information.