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Stock-Based Compensation | 6 Months Ended
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Feb. 29, 2020
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 4. Stock-Based Compensation The Company accounts for all share-based payments in accordance with ASC Topic 718, “Compensation—Stock Compensation,” as subsequently amended. Stock-based compensation expense included in operating expenses for the thirteen and twenty-six-week periods ended February 29, 2020 and March 2, 2019 was as follows:
|  | Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
|  | February 29, |  | March 2, |  | February 29, |  | March 2,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
|  | (Dollars in thousands)
Stock options |  | $ | 754 |  | $ | 1,121 |  | $ | 1,729 |  | $ | 2,326
Restricted share awards |  |  | (21) |  |  | 338 |  |  | 184 |  |  | 870
Restricted stock units |  |  | 3,039 |  |  | 2,364 |  |  | 5,915 |  |  | 4,729
Performance share units |  |  | 168 |  |  | — |  |  | 214 |  |  | —
Associate Stock Purchase Plan |  |  | 77 |  |  | 81 |  |  | 136 |  |  | 153
Total |  |  | 4,017 |  |  | 3,904 |  |  | 8,178 |  |  | 8,078
Deferred income tax benefit |  |  | (1,008) |  |  | (980) |  |  | (2,048) |  |  | (2,028)
Stock-based compensation expense, net |  | $ | 3,009 |  | $ | 2,924 |  | $ | 6,130 |  | $ | 6,050
Stock Options The Company discontinued its grants of stock options in fiscal 2020. For the thirteen and twenty-six-week periods ended March 2, 2019, the fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:
| Thirteen and Twenty-Six Weeks Ended
|  | March 2,
|  | 2019
Expected life (in years) |  | 4.0 |
Risk-free interest rate |  | 2.98 | %
Expected volatility |  | 23.13 | %
Expected dividend yield |  | 2.70 | %
Weighted-average grant-date fair value |  | $14.05 |
A summary of the Company’s stock option activity for the twenty-six-week period ended February 29, 2020 is as follows:
| Options |  | Weighted-Average Exercise Price per Share |  | Weighted-Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding on August 31, 2019 | 1,894 |  | $ | 74.73 |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |
Exercised | (210) |  |  | 63.87 |  |  |  |  |
Canceled/Forfeited | (99) |  |  | 80.56 |  |  |  |  |
Outstanding on February 29, 2020 | 1,585 |  | $ | 75.80 |  | 3.7 |  | $ | 747
Exercisable on February 29, 2020 | 1,056 |  | $ | 73.82 |  | 3.0 |  | $ | 747
The unrecognized share-based compensation cost related to stock option expense at February 29, 2020 was $5,436 and will be recognized over a weighted average period of 1.9 years. The total intrinsic value of options exercised, which represents the difference between the exercise price and market value of common stock measured at each individual exercise date, during the twenty-six-week periods ended February 29, 2020 and March 2, 2019 was $2,574 and $1,617, respectively. Performance Share Units Beginning in fiscal 2020, the Company grants performance share units (“PSU”) as part of its long-term stock-based compensation program. PSUs cliff vest after a three year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. The following table summarizes all transactions related to PSUs under the Company’s 2015 Omnibus Incentive Plan (based on target award amounts) for the twenty-six weeks ended February 29, 2020:
| Shares |  | Weighted-Average Grant-Date Fair Value
Non-vested PSUs at August 31, 2019 | — |  | $ | —
Granted | 31 |  |  | 76.32
Vested | — |  |  | —
Canceled/Forfeited | (3) |  |  | 76.32
Non-vested PSUs at February 29, 2020 (1) | 28 |  | $ | 76.32
(1) Excludes 3 shares of accrued incremental dividend equivalent rights on outstanding PSUs granted under the Company's 2015 Omnibus Incentive Plan.
The fair value of each PSU is the closing stock price on the NYSE of the Company’s Class A common stock on the date of grant. Upon vesting, subject to achievement of performance goals, a portion of the PSU award may be withheld to satisfy the statutory income tax withholding obligation. The remaining PSUs will be settled in shares of the Company’s Class A common stock when vested. These awards accrue dividend equivalents on the underlying PSUs (in the form of additional stock units) based on dividends declared on the Company’s Class A common stock and these dividend equivalents are paid out in unrestricted common stock on the vesting dates of the underlying PSUs, subject to the same performance vesting requirements. The unrecognized share-based compensation cost related to the PSUs at February 29, 2020 was $1,908 and is expected to be recognized over a period of 2.7 years. Restricted Share Awards A summary of the non-vested restricted share award (“RSA”) activity under the Company’s 2005 Omnibus Incentive Plan and 2015 Omnibus Incentive Plan for the twenty-six-week period ended February 29, 2020 is as follows:
| Shares |  | Weighted-Average Grant-Date Fair Value
Non-vested RSAs at August 31, 2019 | 21 |  | $ | 82.00
Granted | — |  |  | —
Vested | (19) |  |  | 82.90
Canceled/Forfeited | (1) |  |  | 70.40
Non-vested RSAs at February 29, 2020 | 1 |  | $ | 72.23
The fair value of each RSA is the closing stock price on the NYSE of the Company’s Class A common stock on the date of grant. Upon vesting, a portion of the RSA award may be withheld to satisfy the statutory income tax withholding obligation. The remaining RSAs will be settled in shares of the Company’s Class A common stock when vested. The unrecognized share-based compensation cost related to RSAs at February 29, 2020 was minimal and the remaining RSAs will vest in March 2020. Restricted Stock Units A summary of the Company’s non-vested Restricted Stock Unit (“RSU”) award activity under the Company’s 2015 Omnibus Incentive Plan for the twenty-six-week period ended February 29, 2020 is as follows:
| Shares |  | Weighted-Average Grant-Date Fair Value
Non-vested RSUs at August 31, 2019 | 416 |  | $ | 76.93
Granted | 237 |  |  | 75.97
Vested | (127) |  |  | 74.72
Canceled/Forfeited | (33) |  |  | 77.23
Non-vested RSUs at February 29, 2020 (1) | 493 |  | $ | 77.02
(1) Excludes approximately 60 shares of accrued incremental dividend equivalent rights on outstanding RSUs granted under the Company's 2015 Omnibus Incentive Plan.
The fair value of each RSU is the closing stock price on the NYSE of the Company’s Class A common stock on the date of grant. Upon vesting, a portion of the RSU award may be withheld to satisfy the statutory income tax withholding obligation. The remaining RSUs will be settled in shares of the Company’s Class A common stock when vested. These awards accrue dividend equivalents on the underlying RSUs (in the form of additional stock units) based on dividends declared on the Company’s Class A common stock and these dividend equivalents are paid out in unrestricted common stock on the vesting dates of the underlying RSUs. The unrecognized share-based compensation cost related to the RSUs at February 29, 2020 was $32,969 and is expected to be recognized over a weighted average period of 3.2 years.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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