STOCK-BASED COMPENSATION PLANS

6 Months Ended

Feb. 28, 2017

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

Stock-based compensation plans

NOTE 12. STOCK-BASED COMPENSATION PLANS

The Company's stock-based compensation plans are described, and informational disclosures provided, in Note 16, Stock-Based Compensation Plans, to the audited consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2016. During the six months ended February 28, 2017 and February 29, 2016, restricted stock units and performance stock units accounted for under the equity method totaling 0.9 million and 1.6 million, respectively, were granted at a weighted-average fair value of $16.04 and $15.83, respectively.

Additionally, during the six months ended February 28, 2017 and February 29, 2016, the Company granted 0.9 million and 0.5 million equivalent shares, respectively, of performance stock units and restricted stock units accounted for under the liability method. During the first quarter of fiscal 2017, certain restricted stock units and performance stock units that were previously accounted for under the equity method were modified to allow optionality related to the net share settlement feature, which resulted in accounting for these awards under the liability method. The fair value of liability awards is remeasured each reporting period and is recognized ratably over the service period. The Company incurred expenses of $0.8 million and $4.7 million as a result of the modification and the impact of the increased stock value on liability-treated awards during the three and six months ended February 28, 2017, respectively, compared to immaterial mark-to-market adjustments for the three and six months ended February 29, 2016. As of February 28, 2017, the Company had 2.2 million equivalent shares accounted for under the liability method outstanding. The Company expects 2.1 million equivalent shares to vest.

In general, the restricted stock units granted during fiscal 2017 vest ratably over a period of three years. However, certain restricted stock units granted during fiscal 2017 cliff vest after a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of CMC's Board of Directors, the performance stock units granted during fiscal 2017 will vest after a period of three years.

Total stock-based compensation expense, including fair value remeasurements, for the three and six months ended February 28, 2017 of $8.0 million and $16.2 million, respectively, and $6.8 million and $13.1 million for the three and six months ended February 29, 2016, respectively, was included in selling, general and administrative expenses on the Company's unaudited condensed consolidated statements of earnings.