Stock-Based Compensation

3 Months Ended

Feb. 29, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

2. Stock-Based Compensation

The Company measures and recognizes compensation expense associated with its grant of equity-based awards in accordance with Accounting Standards Codification Topic No. 718, “Compensation – Stock Compensation” (“ASC 718”). ASC 718 requires that 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 February 29, 2012, as well as stock options activity during the three months then ended:

	Options			Weighted Average Exercise Price
Options outstanding at beginning of period		10,160,396		$	21.27
Granted		15,000			9.70
Exercised		—			—
Cancelled		(6,000	)		16.83
Options outstanding at end of period		10,169,396			21.26
Options exercisable at end of period		7,241,732			26.27

As of February 29, 2012, the weighted average remaining contractual life of stock options outstanding and stock options exercisable was 7.1 years and 6.3 years, respectively. There was $4.6 million of total unrecognized compensation cost related to unvested stock option awards as of February 29, 2012. For the three months ended February 29, 2012 and February 28, 2011, stock-based compensation expense associated with stock options totaled $1.2 million and $1.4 million, respectively. The aggregate intrinsic value of stock options outstanding and stock options exercisable was $9.0 million and $.2 million, respectively, as of February 29, 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 February 29, 2012 and $1.0 million in the three months ended February 28, 2011 related to restricted common stock, phantom shares and SARs awards.