Share-Based Compensation

3 Months Ended

Nov. 30, 2011

Share-Based Compensation [Abstract]

SHARE-BASED COMPENSATION

NOTE 12 — SHARE-BASED COMPENSATION

The Company recognizes share-based compensation at fair value in the financial statements. The fair value of each share-based award is estimated at the date of grant using either the Black-Scholes pricing model or a binomial model. Total compensation cost is amortized over the requisite service period using the accelerated method of amortization for grants with graded vesting or using the straight-line method for grants with cliff vesting. The Company recognized share-based compensation of $3.9 million and $2.1 million for the three months ended November 30, 2011 and 2010, respectively, as a component of selling, general and administrative expenses. At November 30, 2011, the Company had $38.3 million of total unrecognized pre-tax compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over three years.

Combined information for shares subject to options and stock appreciation rights (“SARs”), excluding the cash component, for the three months ended November 30, 2011 was as follows:

	Number			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding at September 1, 2011		2,807,498		$	27.45
Granted		825,655			11.60
Forfeited/Expired		(17,730	)		28.28
Outstanding at November 30, 2011		3,615,423		$	23.83		3.5
Exercisable at November 30, 2011		2,621,768		$	28.19		2.3

Information for restricted stock awards and performance-based restricted units (“PSUs”), excluding the cash component, for the three months ended November 30, 2011 was as follows:

	Number			Weighted  Average Grant-Date Fair Value
Outstanding at September 1, 2011		2,394,140		$	13.44
Granted		412,821		$	10.17
Vested		(8,717	)		14.98
Forfeited		(24,301	)		12.49
Outstanding at November 30, 2011		2,773,943		$	12.96

During the first quarter of 2012, the Compensation Committee (the “Committee”) of the Board of Directors approved a grant of restricted stock units (“RSUs”), SARs and PSUs to employees. The PSUs 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 PSUs granted will be based on the level of achievement. Upon achievement of any of the performance goals, the awards will be paid out in cash. Additionally, a portion of the RSUs and SARs are settled in cash. The Company accounts for the cash component of stock awards as a liability award and the liability is adjusted at each reporting period based on the share price of Company’s common stock.