Share-Based Compensation

9 Months Ended

May 31, 2011

Share-Based Compensation [Abstract]

SHARE-BASED COMPENSATION

NOTE 12 — SHARE-BASED COMPENSATION

The Company recognized share-based compensation expense of $3.2 million for the three months ended May 31, 2011 and $9.2 million and $5.6 million for the nine months ended May 31, 2011 and 2010, respectively, as a component of selling, general and administrative expenses. The Company recognized no share-based compensation expense during the third quarter of 2010 due to a forfeiture adjustment of $2.3 million which offset expense for the quarter. At May 31, 2011, the Company had $23.8 million of total unrecognized pre-tax compensation cost related to non-vested share-based compensation arrangements, of which, $16.4 million related to share-based awards granted during the second quarter of 2011. This cost is expected to be recognized over the next 36 months.

Combined information for shares subject to options and stock appreciation rights (“SARs”) for the nine months ended May 31, 2011 were as follows:

				Weighted
				Average		Price
				Exercise		Range
	Number			Price		Per Share
September 1, 2010
Outstanding		3,922,016		$	23.67	$	7.53 - 35.38
Exercisable		3,503,681			23.38		7.53 - 35.38
Granted		112,000			16.83		16.83
Exercised		(854,023	)		8.03		7.53 - 13.58
Forfeited		(93,564	)		31.96		12.31 - 35.38
May 31, 2011
Outstanding		3,086,429		$	27.50	$	11.00 - 35.38
Exercisable		2,917,429			28.17		11.00 - 35.38

Share information for options and SARs at May 31, 2011:

Outstanding
				Weighted				Exercisable
				Average		Weighted				Weighted
Range of				Remaining		Average				Average
Exercise		Number		Contractual		Exercise		Number		Exercise
Price		Outstanding		Life (Yrs.)		Price		Outstanding		Price
$	11.00 - 14.05		714,215		2.4	$	12.40		658,215	$	12.26
	16.83 - 24.71		544,208		2.7		22.93		432,208		24.51
	31.75 - 35.38		1,828,006		3.0		34.76		1,827,006		34.76
$	11.00 - 35.38		3,086,429		2.8	$	27.50		2,917,429	$	28.17

Of the Company’s previously granted restricted stock awards, 27,727 and 50,154 shares vested during the nine months ended May 31, 2011 and May 31, 2010, respectively.

During the second quarter of 2011, the Compensation Committee (the “Committee”) of the Board of Directors approved a grant to employees of approximately 670,000 restricted stock units. These awards vest over a three-year period in increments of one-third per year. The Committee also approved a grant of performance stock units. The performance awards will vest upon the achievement of certain target levels of the performance goals and objectives of the Company over the performance period of approximately three years. The actual number of performance awards granted will be based on the level of achievement. Upon achievement of any of the performance goals, the awards will be paid out 50% in shares of common stock of the Company and 50% in cash. The Company has accounted for the cash component of the performance award as a liability award and the value is adjusted to fair market value each period. All equity awards are valued at the fair market value at the date of grant. Prior to vesting, the restricted stock unit and the performance stock unit recipients do not receive an amount equivalent to any dividend declared on the Company’s common stock.