The Company adopted a stock incentive plan (the “1996 Plan”) in November 1996 and reserved 1,500,000 shares of Common Stock for issuance under the 1996 Plan. The 1996 Plan provided for the issuance of stock options and stock appreciation rights. The Company ceased granting new awards under the 1996 Plan as of January 21, 2011, and the 1996 Plan expired in accordance with its terms on January 8, 2012. The Company adopted a stock incentive plan (the “2010 Plan”) in October 2010 and reserved 600,000 shares of Common Stock for issuance under the 2010 Plan. The 2010 Plan replaced the Company’s 1996 Plan. The 2010 Plan permits the award of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock and performance shares (collectively referred to as “Share-Based Awards”) as well as dividend equivalent rights and cash-based awards. On October 27, 2014, the Board of Directors, subject to the approval of the Company’s shareholders, which was received at the 2015 annual meeting of shareholders, adopted an amendment to the 2010 Plan to, among other matters, reserve for issuance an additional 750,000 shares and extend to 2025 the time period awards may be granted under the 2010 Plan. As of August 29, 2020, the number of remaining shares available for future grants under the 2010 Plan was 311,055. Share-based compensation, which includes expense related to Share-Based Awards, has been recorded in the accompanying Consolidated Statements of Income in selling and administrative expenses.

All Share-Based Awards issued to management were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. All Share-Based Awards issued to the Company’s non-employee members of the Board of Directors (the “Directors”) under the 2010 Plan were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. Share-Based Awards granted to non-employee Directors are granted on the third business day following the annual shareholders’ meeting.

In fiscal 2019 and 2018, a total of 291 and 234 shares of fully vested unrestricted stock, respectively, were granted to certain non-employee Directors of the Company. No such shares were granted during fiscal 2020. Accordingly, compensation expense related to the 2019 and 2018 unrestricted stock was recognized on the date of grant.

In each of fiscal 2020, 2019 and 2018, the Company granted a total of 5,000 stock appreciation rights under the 2010 Plan to the Company’s non-employee Directors. Such stock appreciation rights were fully vested upon grant, expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors and must be settled in stock at the time of exercise. Accordingly, compensation expense related to the stock appreciation rights was recognized on the date of grant.

As of August 29, 2020, the total compensation cost not yet recognized related to non-vested Share-Based Awards was approximately $13.7 million. The weighted average period over which compensation cost for Share-Based Awards will be recognized is 2.2 years.

All stock appreciation rights issued to employees were granted with an exercise price equal to the fair net realizable value of the Company’s Common Stock on the date of grant. Other than certain stock appreciation rights which vest 20% on each anniversary of the grant date over a five-year period and beginning in fiscal 2020, certain stock appreciation rights which vest 60% on the third anniversary of the grant date and 20% on each of the fourth and fifth anniversaries of the grant date, stock appreciation rights are subject to a five-year cliff-vesting schedule under which the awards become fully vested or exercisable after five years from the date of grant and expire ten years after the grant date. Share-Based Awards granted to the Company’s non-employee Directors were fully vested as of the date of grant. Beginning in fiscal 2009, non-employee Director Share-Based Award grants in the form of stock options and stock appreciation rights expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors.

Time-based restricted stock units granted to employees vest either 20% on each anniversary of the grant date over a five-year period, 33% on each anniversary of the grant date over a three-year period or on a five-year cliff vesting schedule under which the awards become fully vested after five years from the date of grant. Beginning in fiscal 2020, certain time-based restricted stock units granted to employees vest 60% on the third anniversary of the grant date and 20% on each of the fourth and fifth anniversaries of the grant date. Generally, performance-based restricted stock units granted to employees are earned based on whether and the extent to which the Company achieves certain consolidated revenues and adjusted operating margins.

The fair value of each stock appreciation right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used:

Fiscal year ended August	2020			2019			2018
Risk-free interest rate		1.69	%		3.07	%		2.23	%
Expected dividend yield		0.50	%		0.48	%		0.18	%
Expected life in years		5.60			7.24			7.41
Expected volatility		22.4	%		22.9	%		23.1	%

The weighted average fair values of Share-Based Awards granted in the form of stock appreciation rights during fiscal years 2020, 2019 and 2018 were $46.58, $46.20 and $47.51, respectively.

The following table summarizes the Share-Based Awards activity in the form of stock options and stock appreciation rights for fiscal 2020:

	Number of Shares			Weighted Average Exercise Price
Outstanding, August 31, 2019		570,250		$	122.03
Granted		35,396			203.04
Exercised		(92,501	)		98.96
Forfeited		(18,212	)		121.83
Outstanding, August 29, 2020		494,933		$	132.14

Exercisable, August 29, 2020		150,099		$	113.69

The following table summarizes the Share-Based Awards activity in the form of restricted stock units for fiscal 2020:

	Number of Shares			Weighted Average Grant Price
Unvested balance at August 31, 2019		28,533		$	153.96
Granted		36,421			201.29
Vested		(6,434	)		156.99
Forfeited		(600	)		201.24
Unvested balance at August 29, 2020		57,920		$	183.90