Stock-Based Compensation

9 Months Ended

Aug. 31, 2012

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

Stock-Based Compensation

Stock-Based Compensation

The Company measures and recognizes compensation expense associated with its grants of equity-based awards in accordance with Accounting Standards Codification Topic No. 718, “Compensation — Stock Compensation” (“ASC 718”). ASC 718 requires that public companies measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted under compensation arrangements over the vesting period.

Stock Options

In accordance with ASC 718, the Company estimates the grant-date fair value of its stock options using the Black-Scholes option-pricing model, which takes into account assumptions regarding an expected dividend yield, a risk-free interest rate, an expected volatility factor for the market price of the Company’s common stock and an expected term of the stock options. The following table summarizes the stock options outstanding and stock options exercisable as of August 31, 2012, as well as stock options activity during the nine months then ended:

	Options		Weighted Average Exercise Price
Options outstanding at beginning of period	10,160,396		$	21.27
Granted	30,000		9.08
Exercised	—		—
Cancelled	(50,946	)	12.18
Options outstanding at end of period	10,139,450		$	21.28
Options exercisable at end of period	7,286,213		$	26.16

As of August 31, 2012, the weighted average remaining contractual life of stock options outstanding and stock options exercisable was 6.6 years and 5.8 years, respectively. There was $2.4 million of total unrecognized compensation cost related to unvested stock option awards as of August 31, 2012. For the three months ended August 31, 2012 and 2011, stock-based compensation expense associated with stock options totaled $1.1 million and $1.5 million, respectively. For the nine months endedAugust 31, 2012 and 2011, stock-based compensation expense associated with stock options totaled $3.5 million and $4.2 million, respectively. The aggregate intrinsic value of stock options outstanding was $7.9 million at August 31, 2012. Stock options exercisable had no aggregate intrinsic value at August 31, 2012. (The intrinsic value of a stock option is the amount by which the market value of a share of the underlying common stock exceeds the exercise price of the stock option.)

Other Stock-Based Awards

From time to time, the Company grants restricted common stock, phantom shares and stock appreciation rights (“SARs”) to various employees. In some cases, the Company has granted phantom shares and SARs that can be settled only in cash and are therefore accounted for as liability awards. The Company recognized total compensation expense of $.4 million in the three months ended August 31, 2012 and total compensation income of $.5 million in the three months ended August 31, 2011 related to restricted common stock and phantom shares. The Company recognized total compensation expense of $1.2 million in the nine months endedAugust 31, 2012 and $.9 million in the nine months endedAugust 31, 2011 related to these stock-based awards.