Shareholders' Equity

9 Months Ended

Jun. 01, 2013

Shareholders' Equity [Abstract]

Shareholders' Equity

NOTE 6 – SHAREHOLDERS’ EQUITY

Management Common Stock Loan Program

During fiscal 2000, certain members of our management team purchased shares of our common stock under the Management Common Stock Loan Program.  Subsequent to a modification to the loans in fiscal 2004, the loans were accounted for as non-recourse stock compensation instruments.  Following a modification in fiscal 2006, approximately 94 percent of the remaining shares outstanding under the loan program were placed into an escrow account.  Under the terms of the fiscal 2006 modification, the Company had the right to purchase and redeem from loan participants the number of loan program shares necessary to satisfy the participant’s obligation if the Company’s share price reached the breakeven price.

During the second quarter of fiscal 2013, we determined that the breakeven price for management stock loans with shares held in escrow was achieved.  Accordingly, we transferred 3.3 million shares of common stock held by management loan participants in escrow to our transfer agent as full payment on the loans.  These shares were valued at the closing market price of our common stock on the date the breakeven price was achieved and were added to our treasury stock with a corresponding increase to additional paid-in capital.

Common Stock Warrants

Our common stock warrants with an exercise price of $8.00 per share expired on March 8, 2013.  Over the life of the warrants, we issued 2.3million shares of our common stock, including 1.7million shares issued in fiscal 2013, and paid $0.1 million for net cash exercises.  Knowledge Capital Investment Group, a related entity that originally held a warrant to purchase 5,913,402 shares of our common stock, exercised its warrant at various dates on a net share settlement basis according to terms of an exercise agreement, and received a total of 2,197,803 shares of our common stock.