Stock-Based Compensation

9 Months Ended

May 31, 2012

Stock-Based Compensation

4. Stock-Based Compensation

The Company recognizes stock-based compensation expense, reduced for estimated forfeitures, on a straight-line basis over the requisite service period of the award, which is generally the vesting period for outstanding stock awards. The Company recorded $20.1 million and $59.9 million of stock-based compensation expense before tax benefits, which is included in selling, general and administrative expenses within the Condensed Consolidated Statements of Operations during the three months and nine months ended May 31, 2012, respectively. The Company recorded tax benefits related to the stock-based compensation expense of $0.3 million and $1.2 million, which is included in income tax expense within the Condensed Consolidated Statements of Operations for the three months and nine months ended May 31, 2012, respectively. The Company recorded $20.1 million and $59.9 million of stock-based compensation expense before tax benefits, which is included in selling, general and administrative expenses within the Condensed Consolidated Statements of Operations during the three months and nine months ended May 31, 2011, respectively. The Company recorded tax benefits related to the stock-based compensation expense of $0.8 million and $1.6 million, which is included in income tax expense within the Condensed Consolidated Statements of Operations for the three months and nine months ended May 31, 2011, respectively.

The following table summarizes stock option, stock appreciation right and restricted stock award activity from August 31, 2011 through May 31, 2012:

	Shares Available for Grant			Options Outstanding			Aggregate Intrinsic  Value (in thousands)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (years)
Balance at August 31, 2011		9,164,425			10,473,033		$	4,029	$	24.76		3.70
Options cancelled		477,867			(477,867	)			$	26.52
Options expired		(53,274	)						$	15.23
Restricted stock awards granted(1)		(4,837,763	)
Options exercised					(1,169,662	)			$	16.79
Balance at May 31, 2012		4,751,255			8,825,504		$	2,381	$	25.79		3.14
Exercisable at May 31, 2012					8,806,343		$	2,260	$	25.81		3.13

⁽¹⁾ Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria.

The following table summarizes restricted stock activity from August 31, 2011 through May 31, 2012:

	Shares			Weighted  - Average Grant-Date Fair  Value
Non-vested balance at August 31, 2011		14,097,278		$	12.91
Changes during the period
Shares granted (1)		5,219,122		$	19.42
Shares vested		(5,593,169	)	$	10.00
Shares forfeited		(381,359	)	$	15.56
Non-vested balance at May 31, 2012		13,341,872		$	16.60

⁽¹⁾  For those shares granted that are based on the achievement of certain performance criteria, represents the maximum number of shares that can vest.

During the nine months ended May 31, 2012, the Company awarded approximately 2.1 million time-based restricted stock units, which generally vest on a graded vesting schedule over three years, and 2.1 million performance-based restricted stock units, which entitle recipients to shares of the Company's stock of up to 150% of the number of units granted with the performance measurement generally occurring initially at the end of a three year vesting period and subsequently occurring after a fourth and fifth year (if applicable) depending on the level of achievement of the specified performance conditions.

At May 31, 2012, there was $79.2 million of total unrecognized stock-based compensation expense related to restricted stock awards. This expense is expected to be recognized over a weighted-average period of 1.4 years.