Capital Stock and Share Repurchase

6 Months Ended

Feb. 28, 2021

Note 11. Earnings per Share and Shareholders' Equity

The Company's Board of Directors has 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 February 28, 2021, the maximum number of shares that may yet be purchased under the programs is 5,200,770 shares. The Company did not repurchase shares in the six months ended February 28, 2021. During the six months ended February 29, 2020, the Company repurchased 839,789 shares for $17.8 million. No shares were repurchased in the three months ended February 29, 2020.

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


	Three Months Ended				Six Months Ended
	February 28, 2021		February 29, 2020		February 28, 2021		February 29, 2020
Numerator:
Net earnings from continuing operations	$	3,584	$	3,918	$	8,406	$	10,290
Net loss from discontinued operations	(402)		(1,756)		(626)		(6,007)
Net earnings	$	3,182	$	2,162	7,780		4,283

Denominator:
Weighted average common shares outstanding - basic	59,938		60,130		59,874		60,106
Net effect of dilutive securities - stock based compensation plans	331		383		306		451
Weighted average common shares outstanding - diluted	60,269		60,513		60,180		60,557

Earnings per common share from continuing operations:
Basic	$	0.06	$	0.07	$	0.14	$	0.17
Diluted	$	0.06	$	0.06	$	0.14	$	0.17

Loss per common share from discontinued operations:
Basic	$	(0.01)	$	(0.03)	$	(0.01)	$	(0.10)
Diluted	$	(0.01)	$	(0.03)	$	(0.01)	$	(0.10)

Earnings per common share:
Basic	$	0.05	$	0.04	$	0.13	$	0.07
Diluted	$	0.05	$	0.04	$	0.13	$	0.07

Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation)	932		1,024		1,211		1,046

The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended February 28, 2021 (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
Balance at November 30, 2020	82,625	$	16,525	$	195,979	$	(667,732)	$	922,269	$	(99,095)	$	(2,643)	$	2,643	$	367,946
Net earnings	—	—		—		—		3,182		—		—		—		3,182
Other comprehensive income, net of tax	—	—		—		—		—		9,157		—		—		9,157
Stock contribution to employee benefit plans and other	4	1		80		—		—		—		—		—		81
Vesting of restricted stock awards	235	47		(47)		—		—		—		—		—		—
Stock based compensation expense	—	—		2,647		—		—		—		—		—		2,647
Tax effect related to net share settlement of equity awards	—	—		(1,706)		—		—		—		—		—		(1,706)
Stock issued to, acquired for and distributed from rabbi trust	15	3		83		—		—		—		(353)		353		86
Balance at February 28, 2021	82,879	$	16,576	$	197,036	$	(667,732)	$	925,451	$	(89,938)	$	(2,996)	$	2,996	$	381,393

The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended February 29, 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
Balance at November 30, 2019	82,248	$	16,450	$	187,772	$	(658,017)	$	921,460	$	(114,412)	$	(3,157)	$	3,157	$	353,253
Net earnings	—	—		—		—		2,162		—		—		—		2,162
Other comprehensive income, net of tax	—	—		—		—		—		(3,052)		—		—		(3,052)
Stock contribution to employee benefit plans and other	5	1		125		—		—		—		—		—		126
Vesting of restricted stock awards	259	52		(52)		—		—		—		—		—		—
Stock based compensation expense	—	—		3,093		—		—		—		—		—		3,093
Stock option exercises	17	3		119		—		—		—		—		—		122
Tax effect related to net share settlement of equity awards	—	—		(1,425)		—		—		—		—		—		(1,425)
Stock issued to, acquired for and distributed from rabbi trust	11	2		84		—		—		—		723		(723)		86
Balance at February 29, 2020	82,540	$	16,508	$	189,716	$	(658,017)	$	923,622	$	(117,464)	$	(2,434)	$	2,434	$	354,365

The following table illustrates the changes in the balances of each component of shareholders' equity for the six months ended February 28, 2021 (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
Balance at August 31, 2020	82,594	$	16,519	$	193,492	$	(667,732)	$	917,671	$	(100,724)	$	(2,562)	$	2,562	$	359,226
Net earnings	—	—		—		—		7,780		—		—		—		7,780
Other comprehensive income, net of tax	—	—		—		—		—		10,786		—		—		10,786
Stock contribution to employee benefit plans and other	10	2		180		—		—		—		—		—		182
Vesting of restricted stock awards	255	51		(51)		—		—		—		—		—		—
Stock based compensation expense	—	—		5,227		—		—		—		—		—		5,227
Tax effect related to net share settlement of equity awards	—	—		(1,981)		—		—		—		—		—		(1,981)
Stock issued to, acquired for and distributed from rabbi trust	20	4		169		—		—		—		(434)		434		173
Balance at February 28, 2021	82,879	16,576		$	197,036	$	(667,732)	$	925,451	$	(89,938)	$	(2,996)	$	2,996	$	381,393

The following table illustrates the changes in the balances of each component of shareholders' equity for the six months ended February 29, 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
Balance at August 31, 2019	81,919	$	16,384	$	181,213	$	(640,212)	$	915,466	$	(171,672)	$	(3,070)	$	3,070	$	301,179
Net earnings	—	—		—		—		4,283		—		—		—		4,283
Other comprehensive income, net of tax	—	—		—		—		—		57,875		—		—		57,875
Stock contribution to employee benefit plans and other	11	2		255		—		—		—		—		—		257
Vesting of restricted stock awards	449	90		(90)		—		—		—		—		—		—
Treasury stock repurchases	—	—		—		(17,805)		—		—		—		—		(17,805)
Stock based compensation expense	—	—		9,630		—		—		—		—		—		9,630
Stock option exercises	145	29		2,602		—		—		—		—		—		2,631
Tax effect related to net share settlement of equity awards	—	—		(4,063)		—		—		—		—		—		(4,063)
Stock issued to, acquired for and distributed from rabbi trust	16	3		169		—		—		—		636		(636)		172
Adoption of accounting standards	—	—		—		—		3,873		(3,667)		—		—		206
Balance at February 29, 2020	82,540	$	16,508	$	189,716	$	(658,017)	$	923,622	$	(117,464)	$	(2,434)	$	2,434	$	354,365