Stockholders' Equity

9 Months Ended

May 31, 2023

Share-Based Payment Arrangement [Abstract]

Stockholders’ Equity

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


	Three months ended				Nine months ended
	May 31, 2023		May 31, 2022		May 31, 2023		May 31, 2022
Restricted stock units	$	14	$	13	$	68	$	57
Employee stock purchase plan	4		3		12		10

Total	$	18	$	16	$	80	$	67

As of May 31, 2023, the shares available to be issued under the 2021 Equity Incentive Plan were 8,473,317.

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 nine months ended May 31, 2023 and 2022, 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):


	May 31, 2023
Unrecognized stock-based compensation expense—restricted stock units	$	51
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		Nine months ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Common stock outstanding:
Beginning balances	133,238,368	142,392,135	135,493,980	144,496,077

Shares issued under employee stock purchase plan	1,730	1,686	631,066	522,169
Vesting of restricted stock	3,372	13,609	2,013,768	2,467,324
Purchases of treasury stock under employee stock plans	(700)	(3,766)	(571,349)	(704,040)
Treasury shares purchased(1)(2)	(1,890,906)	(3,552,475)	(6,215,601)	(7,930,341)
Ending balances	131,351,864	138,851,189	131,351,864	138,851,189

(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 February 28, 2023, 16.5 million shares had been repurchased for $1.0 billion and no authorization remained 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 May 31, 2023, 2.2 million shares had been repurchased for $179 million, excluding excise tax, and $821 million remains available under the 2023 Share Repurchase Program.