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Share-Based Compensation
 9 Months Ended
May 26, 2012
Share-Based Compensation [Abstract]  
Share-Based Compensation

NOTE 5 – SHARE-BASED COMPENSATION

We utilize various share-based compensation plans as integral components of our overall compensation and associate retention strategy. The compensation cost of our share-based compensation plans is included in selling, general, and administrative expenses in the accompanying condensed consolidated income statements. The total cost of our share-based compensation plans was as follows for the periods indicated (in thousands):

  Quarter Ended Three Quarters Ended
  May 26,
2012		 May 28,
2011		 May 26,
2012		 May 28,
2011
Performance awards $ 949 $ 103 $ 2,822 $ 256
Stock options   -   251   168   568
Unvested share awards   87   87   252   292
Employee stock purchase plan   20   15   59   44
Fully vested share awards   -   -   -   104
  $ 1,056 $ 456 $ 3,301 $ 1,264

 

The following is a description of recent developments in our share-based compensation plans.

Performance Awards

There were no performance awards granted, modified, or vested during the quarter ended May 26, 2012. Compensation expense recognized during the quarter and three quarters ended May 26, 2012 for performance awards includes expense related to awards granted in previous periods.

Stock Options

We have an incentive stock option plan whereby options to purchase shares of our common stock are issued to key employees at an exercise price not less than the fair market value of our common stock on the date of grant. During the quarter and three quarters ended May 26, 2012 we did not grant any new stock options or modify existing awards and there were no significant changes to the stock option information disclosed as of August 31, 2011. At May 26, 2012 we had no remaining unrecognized compensation expense related to our stock option awards.

Unvested Share Awards

Our annual unvested share awards granted to non-employee members of our Board of Directors is administered under the terms of the Franklin Covey Co. Second Amended and Restated 1992 Stock Incentive Plan, and is designed to provide our non-employee directors, who are not eligible to participate in our employee stock incentive plan, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock. The annual unvested award is generally granted in January (following the Annual Shareholders' Meeting) of each year. In fiscal 2012, each eligible director was entitled to receive a whole-share grant equal to $50,000 with a one-year vesting period, which resulted in a total of 37,275 shares issued to members of the Board of Directors under this program. At May 26, 2012, there was approximately $0.2 million of unrecognized compensation expense associated with the fiscal 2012 Board of Director unvested share award. The fiscal 2011 Board of Director unvested share award vested in January 2012.

Employee Stock Purchase Plan

We have an employee stock purchase plan (ESPP) that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of the calendar month in each fiscal quarter. During the quarter and three quarters ended May 26, 2012, a total of 14,827 shares and 40,832 shares were issued to participants in the ESPP.