Share-based Compensation Plans

6 Months Ended

Feb. 28, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based compensation plans

NOTE 11. SHARE-BASED COMPENSATION PLANS

The Company's share-based compensation plans are described, and informational disclosures provided, in Note 15, Share-Based Compensation Plans, to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2013. During the six months ended February 28, 2014 and 2013, restricted stock units ("RSUs") and performance stock units ("PSUs") totaling 1.2 million and 1.6 million, respectively, were granted at a weighted-average fair value of $16.89 and $13.44, respectively. Stock appreciation rights ("SARs") were not granted during the six months ended February 28, 2014. The Company granted 0.2 million in SARs at a weighted average exercise price of $14.25 during the six months ended February 28, 2013.

During the six months ended February 28, 2014 and 2013, the Company granted 59,565 equivalent shares of cash-settled RSUs and PSUs and 234,109 equivalent shares of cash-settled RSUs, PSUs and SARs, respectively. The fair value of these cash-settled awards is remeasured each reporting period and is recognized ratably over the service period. As of February 28, 2014, the Company had 1,722,173 equivalent shares in awards outstanding. The Company expects 1,637,113 equivalent shares to vest.

In general, the RSUs and PSUs granted during fiscal 2014 will vest over a period of three years; however, certain RSUs granted during fiscal 2014 will vest over a period of four years. The RSUs granted during fiscal 2013 will vest over a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of CMC's Board of Directors, the PSUs granted during fiscal 2014 and fiscal 2013 will vest after a period of three years. The SARs granted during fiscal 2013 vest ratably over a period of three years. The SARs have a contractual term of seven years.

Share-based compensation expense for the three and six months ended February 28, 2014 of $5.3 million and $10.8 million, respectively, and for the three and six months ended February 28, 2013 of $3.6 million and $7.2 million, respectively, is included in selling, general and administrative expenses on the Company's consolidated statements of operations.