Stockholders' Equity

3 Months Ended

Nov. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

Stockholders’ Equity

The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions):

	Three months ended
	November 30, 2022		November 30, 2021
Restricted stock units	$	38	$	32
Employee stock purchase plan	4		3
Total	$	42	$	35

As of November 30, 2022, the shares available to be issued under the 2021 Equity Incentive Plan were 8,394,608.

Restricted Stock Units

Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards (“restricted stock units”). The time-based restricted stock units generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company. During the three months ended November 30, 2022 and 2021, the Company awarded approximately 0.9 million and 0.7 million time-based restricted stock units, respectively, 0.2 million and 0.2 million performance-based restricted stock units, respectively, and 0.2 million and 0.2 million market-based restricted stock units, respectively.

The following represents the stock-based compensation information as of the period indicated (in millions):

	November 30, 2022
Unrecognized stock-based compensation expense—restricted stock units	$	79
Remaining weighted-average period for restricted stock units expense	1.5 years

Common Stock Outstanding

The following represents the common stock outstanding for the periods indicated:

	Three months ended
	November 30, 2022	November 30, 2021
Common stock outstanding:
Beginning balances	135,493,980	144,496,077
Vesting of restricted stock	1,861,678	2,425,472
Purchases of treasury stock under employee stock plans	(523,407)	(690,555)
Treasury shares purchased(1)(2)	(2,600,951)	(2,064,985)
Ending balances	134,231,300	144,166,009

(1)In July 2021, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2022 Share Repurchase Program”). As of November 30, 2022, 15.0 million shares had been repurchased for $898 million and $102 million remains available under the 2022 Share Repurchase Program.

(2)In September 2022, the Board of Directors approved an authorization for the repurchase of up to $1.0 billion of the Company’s common stock (the “2023 Share Repurchase Program”). As of November 30, 2022, no shares had been repurchased under the 2023 Share Repurchase Program.