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Share-based Compensation | 12 Months Ended
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Aug. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Share-based Compensation | 12. Share-based Compensation The Company adopted an equity incentive plan (the “2023 Plan”) in October 2023 and reserved 375,000 shares of Common Stock for issuance under the 2023 Plan. The 2023 Plan, which was approved by the Company's shareholders in January 2024, replaced the Company’s 2010 stock incentive plan (the “2010 Plan”). Upon approval of the 2023 Plan by the Company’s shareholders, no further awards may be granted under the 2010 Plan. The 2023 Plan permits the award of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and unrestricted stock (collectively referred to as “Share-Based Awards”) as well as dividend equivalent rights and cash-based awards. As of August 31, 2024, the number of remaining shares available for future grants under the 2023 Plan was 375,000. Share-based compensation expense, which includes expense related to Share-Based Awards, has been recorded in the accompanying Consolidated Statements of Income in selling and administrative expenses. All Share-Based Awards issued to management were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. All Share-Based Awards issued to the Company’s non-employee members of the Board of Directors (the “Directors”) were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. In fiscal 2024, a total of 1,475 shares of fully vested unrestricted stock were granted to non-employee Directors of the Company. In fiscal 2023, a total of 1,575 shares of fully vested unrestricted stock were granted to non-employee Directors of the Company. In fiscal 2022, a total of 1,025 shares of fully vested unrestricted stock were granted to certain non-employee Directors of the Company. Accordingly, compensation expense related to the unrestricted stock granted in each of fiscal 2024, 2023 and 2022 were recognized on the date of grant. In fiscal 2024, the Company granted a total of 5,004 stock appreciation rights to the Company’s non-employee Directors. In fiscal 2023, the Company granted a total of 6,864 stock appreciation rights to the Company’s non-employee Directors. In fiscal 2022, the Company granted a total of 9,750 stock appreciation rights to the Company’s non-employee Directors. Such stock appreciation rights were fully vested upon grant, expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors and must be settled in stock at the time of exercise. Accordingly, compensation expense related to the stock appreciation rights was recognized on the date of grant. As of August 31, 2024, the total compensation cost not yet recognized related to non-vested Share-Based Awards was approximately $16.0 million. The weighted average period over which compensation cost for Share-Based Awards will be recognized is 3.02 years. All stock appreciation rights issued to employees were granted with an exercise price equal to the fair value of the Company’s Common Stock on the date of grant. Stock appreciation rights generally vest 20% on each anniversary of the grant date over a five-year period and expire ten years after the grant date. Share-Based Awards granted to the Company’s non-employee Directors were fully vested as of the date of grant. Non-employee Director Share-Based Award grants in the form of stock appreciation rights expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors. Time-based restricted stock units granted to employees generally vest 20% on each anniversary of the grant date over a five-year period. Generally, performance-based restricted stock units granted to employees are earned based on whether and the extent to which the Company achieves certai n revenue and operating margin targets. The fair value of each stock appreciation right is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used:
Year ended |  | 2024 |  |  | 2023 |  |  | 2022 |
Risk-free interest rate |  |  | 4.85 | % |  |  | 3.97 | % |  |  | 1.27 | %
Expected dividend yield |  |  | 0.80 | % |  |  | 0.62 | % |  |  | 0.60 | %
Expected life (in years) |  |  | 5.54 |  |  |  | 5.43 |  |  |  | 5.17 |
Expected volatility |  |  | 29.4 | % |  |  | 29.3 | % |  |  | 28.4 | %
The weighted average fair value of Share-Based Awards granted in the form of stock appreciation rights during fiscal years 2024, 2023 and 2022 were $55.97, $60.38 and $51.25, respectively. The following table summarizes the Share-Based Awards activity in the form of stock options and stock appreciation rights for fiscal 2024:
|  | Number of Shares |  |  | Weighted Average Exercise Price |
Outstanding at August 26, 2023 |  |  | 347,617 |  |  | $ | 158.47 |
Granted |  |  | 30,499 |  |  |  | 164.58 |
Expired |  |  | (655 | ) |  |  | 191.37 |
Exercised |  |  | (66,104 | ) |  |  | 132.74 |
Forfeited |  |  | (1,306 | ) |  |  | 177.96 |
Outstanding at August 31, 2024 |  |  | 310,051 |  |  | $ | 164.40 |
Exercisable at August 31, 2024 |  |  | 237,992 |  |  | $ | 159.53 |
The following table summarizes the Share-Based Awards activity in the form of restricted stock units for fiscal 2024:
|  | Number of Shares |  |  | Weighted Average Grant Price |
Unvested balance at August 26, 2023 |  |  | 108,755 |  |  | $ | 184.60 |
Granted |  |  | 58,653 |  |  |  | 164.60 |
Vested |  |  | (38,615 | ) |  |  | 183.98 |
Forfeited |  |  | (5,886 | ) |  |  | 176.29 |
Unvested balance at August 31, 2024 |  |  | 122,907 |  |  | $ | 175.65 |

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