Capital Stock and Share Repurchase

9 Months Ended

May 31, 2020

Note 11. Earnings per Share and Shareholders' Equity

The Company's Board of Directors authorized the repurchase of shares of the Company's common stock under publicly announced share repurchase programs. Since the inception of the initial share repurchase program in fiscal 2012, the Company has repurchased 22,799,230 shares of common stock for $667.7 million. As of May 31, 2020, the maximum number of shares that may yet be purchased under the programs is 5,200,770 shares. The Company repurchased 503,873 shares for $9.7 million during the three months ended May 31, 2020 (all shares were purchased in March 2020 under a SEC Rule 10b5-1 trading plan, before the repurchase was able to be suspended in response to the COVID-19 pandemic) and 1,343,662 shares for $27.5 million during the nine months ended May 31, 2020.

The reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share amounts):



	Three Months Ended May 31,					Nine Months Ended May 31,
	2020			2019		2020			2019
Numerator:
Net (loss) earnings from continuing operations	$	(4,930	)	$	26,858	$	5,360		$	11,201
Net (loss) earnings from discontinued operations	(69		)	5,560		(6,076		)	6,518
Net (loss) earnings	(4,999		)	32,418		(716		)	17,719

Denominator:
Weighted average common shares outstanding - basic	59,826			61,422		60,012			61,232
Net effect of dilutive securities - stock based compensation plans	—			418		346			469
Weighted average common shares outstanding - diluted	$	59,826		$	61,840	$	60,358		$	61,701

(Loss) earnings per common share from continuing operations:
Basic	$	(0.08	)	$	0.44	$	0.09		$	0.18
Diluted	$	(0.08	)	$	0.43	$	0.09		$	0.18

(Loss) earnings per common share from discontinued operations:
Basic	$	—		$	0.09	$	(0.10	)	$	0.11
Diluted	$	—		$	0.09	$	(0.10	)	$	0.11

(Loss) earnings per common share:
Basic	$	(0.08	)	$	0.53	$	(0.01	)	$	0.29
Diluted	$	(0.08	)	$	0.52	$	(0.01	)	$	0.29

Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation)	2,479			987		1,435			1,164

The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended May 31, 2020 (in thousands):



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
	Issued Shares	Amount		Additional Paid-in Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
Balance at February 29, 2020	82,540	$	16,508	$	189,716		$	(658,017	)	$	923,622		$	(117,464	)	$	(2,434	)	$	2,434	$	354,365
Net loss	—	—		—			—			(4,999		)	—			—			—		(4,999		)
Other comprehensive loss, net of tax	—	—		—			—			—			(6,586		)	—			—		(6,586		)
Stock contribution to employee benefit plans and other	6	1		96			—			—			—			—			—		97
Restricted stock awards	13	3		(3		)	—			—			—			—			—		—
Treasury stock repurchases	—	—		—			(9,715		)	—			—			—			—		(9,715		)
Stock based compensation expense	—	—		3,184			—			—			—			—			—		3,184
Stock option exercises	—	—		—			—			—			—			—			—		—
Tax effect related to net share settlement of equity awards	—	—		(147		)	—			—			—			—			—		(147		)
Stock issued to, acquired for and distributed from rabbi trust	4	1		82			—			—			—			(83		)	83		83
Balance at May 31, 2020	82,563	$	16,513	$	192,928		$	(667,732	)	$	918,623		$	(124,050	)	$	(2,517	)	$	2,517	$	336,282

The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended May 31, 2019 (in thousands):



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
	Issued Shares	Amount		Additional Paid-in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
Balance at February 28, 2019	81,832	$	16,364	$	174,418		$	(617,731	)	$	1,152,331	$	(139,752	)	$	(2,989	)	$	2,989	$	585,630
Net earnings	—	—		—			—			32,418		—			—			—		32,418
Other comprehensive income, net of tax	—	—		—			—			—		(13,800		)	—			—		(13,800		)
Stock contribution to employee benefit plans and other	5	1		114			—			—		—			—			—		115
Restricted stock awards	28	6		(6		)	—			—		—			—			—		—
Stock based compensation expense	—	—		3,091			—			—		—			—			—		3,091
Stock option exercises	10	2		204			—			—		—			—			—		206
Tax effect related to net share settlement of equity awards	—	—		(322		)	—			—		—			—			—		(322		)
Stock issued to, acquired for and distributed from rabbi trust	5	1		85			—			—		—			(86		)	86		86
Balance at May 31, 2019	81,880	$	16,374	$	177,584		$	(617,731	)	$	1,184,749	$	(153,552	)	$	(3,075	)	$	3,075	$	607,424

The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2020 (in thousands):



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability			Total Shareholders’ Equity
	Issued Shares	Amount		Additional Paid-in Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability			Total Shareholders’ Equity
Balance at August 31, 2019	81,919	$	16,384	$	181,213		$	(640,212	)	$	915,466		$	(171,672	)	$	(3,070	)	$	3,070		$	301,179
Net loss	—	—		—			—			(716		)	—			—			—			(716		)
Other comprehensive income, net of tax	—	—		—			—			—			51,289			—			—			51,289
Stock contribution to employee benefit plans and other	17	3		351			—			—			—			—			—			354
Restricted stock awards	462	93		(93		)	—			—			—			—			—			—
Treasury stock repurchases	—	—		—			(27,520		)	—			—			—			—			(27,520		)
Stock based compensation expense	—	—		12,814			—			—			—			—			—			12,814
Stock option exercises	145	29		2,602			—			—			—			—			—			2,631
Tax effect related to net share settlement of equity awards	—	—		(4,210		)	—			—			—			—			—			(4,210		)
Stock issued to, acquired for and distributed from rabbi trust	20	4		251			—			—			—			553			(553		)	255
Adoption of accounting standards (Note 1)	—	—		—			—			3,873			(3,667		)	—			—			206
Balance at May 31, 2020	82,563	$	16,513	$	192,928		$	(667,732	)	$	918,623		$	(124,050	)	$	(2,517	)	$	2,517		$	336,282

The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2019 (in thousands):



	Common Stock			Additional Paid-in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
	Issued Shares	Amount		Additional Paid-in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss			Stock Held in Trust			Deferred Compensation Liability		Total Shareholders’ Equity
Balance at August 31, 2018	81,424	$	16,285	$	167,448		$	(617,731	)	$	1,166,955	$	(174,245	)	$	(2,450	)	$	2,450	$	558,712
Net earnings	—	—		—			—			17,719		—			—			—		17,719
Other comprehensive income, net of tax	—	—		—			—			—		20,693			—			—		20,693
Stock contribution to employee benefit plans and other	15	3		356			—			—		—			—			—		359
Restricted stock awards	366	71		(71		)	—			—		—			—			—		—
Stock based compensation expense	—	—		10,253			—			—		—			—			—		10,253
Stock option exercises	45	9		984			—			—		—			—			—		993
Tax effect related to net share settlement of equity awards	—	—		(1,811		)	—			—		—			—			—		(1,811		)
Stock issued to, acquired for and distributed from rabbi trust	30	6		425			—			—		—			(625		)	625		431
Adoption of accounting standards	—	—		—			—			75		—			—			—		75
Balance at May 31, 2019	81,880	$	16,374	$	177,584		$	(617,731	)	$	1,184,749	$	(153,552	)	$	(3,075	)	$	3,075	$	607,424