Capital Stock and Share Repurchase |
Note 11. Earnings per Share and Shareholders' Equity
The Company's Board of Directors has authorized the repurchase of shares of the Company's common stock under publicly announced share repurchase programs. Since the inception of the initial share repurchase program in fiscal 2012, the Company has repurchased 24,554,305 shares of common stock for $704.0 million. The Company suspended the share repurchase program in response to the COVID-19 pandemic in the third quarter of fiscal 2020 and, accordingly, did not repurchase shares in the nine months ended May 31, 2021. Subsequently, in the three months ended May 31, 2022, the Company started repurchasing shares in market transactions following the Company's Board of Directors rescinding its prior share repurchase authorization and authorizing the repurchase of a total of 10,000,000 shares. The Company repurchased 1,755,075 shares for $36.3 million during the three months ended May 31, 2022. As of May 31, 2022, the maximum number of shares that may yet be purchased under the programs is 8,244,925 shares.
The reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share amounts):
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Three Months Ended May 31, |
|
|
Nine Months Ended May 31, |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Numerator: |
|
|
|
|
|
|
|
|
Net earnings from continuing operations |
$ |
4,061 |
|
|
$ |
25,257 |
|
|
|
$ |
9,367 |
|
|
$ |
33,663 |
|
Net loss from discontinued operations |
(2,418) |
|
|
(226) |
|
|
|
(3,715) |
|
|
(852) |
|
Net earnings |
$ |
1,643 |
|
|
$ |
25,031 |
|
|
|
5,652 |
|
|
32,811 |
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
60,227 |
|
|
60,144 |
|
|
|
60,292 |
|
|
59,964 |
|
Net effect of dilutive securities - stock based compensation plans |
383 |
|
|
430 |
|
|
|
348 |
|
|
348 |
|
Weighted average common shares outstanding - diluted |
60,610 |
|
|
60,574 |
|
|
|
60,640 |
|
|
60,312 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share from continuing operations: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
|
|
$ |
0.42 |
|
|
|
$ |
0.16 |
|
|
$ |
0.56 |
|
Diluted |
$ |
0.07 |
|
|
$ |
0.42 |
|
|
|
$ |
0.15 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
Loss per common share from discontinued operations: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.04) |
|
|
$ |
(0.00) |
|
|
|
$ |
(0.06) |
|
|
$ |
(0.01) |
|
Diluted |
$ |
(0.04) |
|
|
$ |
(0.00) |
|
|
|
$ |
(0.06) |
|
|
$ |
(0.01) |
|
|
|
|
|
|
|
|
|
|
Earnings per common share:* |
|
|
|
|
|
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
0.42 |
|
|
|
$ |
0.09 |
|
|
$ |
0.55 |
|
Diluted |
$ |
0.03 |
|
|
$ |
0.41 |
|
|
|
$ |
0.09 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation) |
951 |
|
|
548 |
|
|
|
945 |
|
|
990 |
|
|
|
|
|
|
|
|
|
|
*The total of Earnings per share from continuing operations and Loss per share from discontinued operations may not equal Earnings per share due to rounding. |
The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2022 (in thousands):
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|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
Additional Paid-in Capital |
|
Treasury Stock |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Stock Held in Trust |
|
Deferred Compensation Liability |
|
Total Shareholders’ Equity |
|
Issued Shares |
|
Amount |
|
Balance at August 31, 2021 |
83,022 |
|
|
$ |
16,604 |
|
|
$ |
202,971 |
|
|
$ |
(667,732) |
|
|
$ |
953,339 |
|
|
$ |
(92,984) |
|
|
$ |
(3,067) |
|
|
$ |
3,067 |
|
|
$ |
412,198 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,788 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,788 |
|
Other comprehensive loss, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(10,044) |
|
|
— |
|
|
— |
|
|
(10,044) |
|
Stock contribution to employee benefit plans and other |
2 |
|
|
1 |
|
|
84 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
85 |
|
Vesting of equity awards |
67 |
|
|
17 |
|
|
(17) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
|
6,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,147 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(1,393) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,393) |
|
Stock issued to, acquired for and distributed from rabbi trust |
1 |
|
|
— |
|
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
(25) |
|
|
25 |
|
|
25 |
|
Balance at November 30, 2021 |
83,092 |
|
|
$ |
16,622 |
|
|
$ |
207,817 |
|
|
$ |
(667,732) |
|
|
$ |
956,127 |
|
|
$ |
(103,028) |
|
|
$ |
(3,092) |
|
|
$ |
3,092 |
|
|
$ |
409,806 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,221 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,221 |
|
Other comprehensive income, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,744 |
|
|
— |
|
|
— |
|
|
1,744 |
|
Stock contribution to employee benefit plans and other |
5 |
|
|
1 |
|
|
64 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
65 |
|
Vesting of equity awards |
247 |
|
|
46 |
|
|
(46) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
|
2,142 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,142 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(1,980) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,980) |
|
Stock issued to, acquired for and distributed from rabbi trust |
1 |
|
|
— |
|
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
(3) |
|
|
25 |
|
Balance at February 28, 2022 |
83,345 |
|
|
$ |
16,669 |
|
|
$ |
208,022 |
|
|
$ |
(667,732) |
|
|
$ |
957,348 |
|
|
$ |
(101,284) |
|
|
$ |
(3,089) |
|
|
$ |
3,089 |
|
|
$ |
413,023 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,643 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,643 |
|
Other comprehensive loss, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(16,030) |
|
|
— |
|
|
— |
|
|
(16,030) |
|
Stock contribution to employee benefit plans and other |
4 |
|
|
1 |
|
|
65 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
66 |
|
Treasury stock repurchases |
— |
|
|
— |
|
|
— |
|
|
(36,295) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(36,295) |
|
Stock based compensation expense |
— |
|
|
— |
|
|
3,828 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,828 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(3) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3) |
|
Stock issued to, acquired for and distributed from rabbi trust |
1 |
|
|
— |
|
|
40 |
|
|
— |
|
|
— |
|
|
— |
|
|
(59) |
|
|
59 |
|
|
40 |
|
Balance at May 31, 2022 |
83,350 |
|
|
$ |
16,670 |
|
|
$ |
211,952 |
|
|
$ |
(704,027) |
|
|
$ |
958,991 |
|
|
$ |
(117,314) |
|
|
$ |
(3,148) |
|
|
$ |
3,148 |
|
|
$ |
366,272 |
|
The following table illustrates the changes in the balances of each component of shareholders' equity for the nine months ended May 31, 2021 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
Additional Paid-in Capital |
|
Treasury Stock |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Stock Held in Trust |
|
Deferred Compensation Liability |
|
Total Shareholders’ Equity |
|
Issued Shares |
|
Amount |
|
Balance at August 31, 2020 |
82,594 |
|
|
$ |
16,519 |
|
|
$ |
193,492 |
|
|
$ |
(667,732) |
|
|
$ |
917,671 |
|
|
$ |
(100,724) |
|
|
$ |
(2,562) |
|
|
$ |
2,562 |
|
|
$ |
359,226 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,598 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,598 |
|
Other comprehensive income, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,629 |
|
|
— |
|
|
— |
|
|
1,629 |
|
Stock contribution to employee benefit plans and other |
6 |
|
|
1 |
|
|
100 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
101 |
|
Vesting of equity awards |
20 |
|
|
4 |
|
|
(4) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
|
2,581 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,581 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(275) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(275) |
|
Stock issued to, acquired for and distributed from rabbi trust |
5 |
|
|
1 |
|
|
85 |
|
|
— |
|
|
— |
|
|
— |
|
|
(81) |
|
|
81 |
|
|
86 |
|
Balance at November 30, 2020 |
82,625 |
|
|
$ |
16,525 |
|
|
$ |
195,979 |
|
|
$ |
(667,732) |
|
|
$ |
922,269 |
|
|
$ |
(99,095) |
|
|
$ |
(2,643) |
|
|
$ |
2,643 |
|
|
$ |
367,946 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,182 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,182 |
|
Other comprehensive income, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,157 |
|
|
— |
|
|
— |
|
|
9,157 |
|
Stock contribution to employee benefit plans and other |
4 |
|
|
1 |
|
|
80 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
81 |
|
Vesting of equity awards |
235 |
|
|
47 |
|
|
(47) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
|
2,647 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,647 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(1,706) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,706) |
|
Stock issued to, acquired for and distributed from rabbi trust |
15 |
|
|
3 |
|
|
83 |
|
|
— |
|
|
— |
|
|
— |
|
|
(353) |
|
|
353 |
|
|
86 |
|
Balance at February 28, 2021 |
82,879 |
|
|
$ |
16,576 |
|
|
$ |
197,036 |
|
|
$ |
(667,732) |
|
|
$ |
925,451 |
|
|
$ |
(89,938) |
|
|
$ |
(2,996) |
|
|
$ |
2,996 |
|
|
$ |
381,393 |
|
Net earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
25,031 |
|
|
— |
|
|
— |
|
|
— |
|
|
25,031 |
|
Other comprehensive income, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,538 |
|
|
— |
|
|
— |
|
|
6,538 |
|
Stock contribution to employee benefit plans and other |
5 |
|
|
1 |
|
|
96 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
97 |
|
Vesting of equity awards |
17 |
|
|
3 |
|
|
(3) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
|
2,157 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,157 |
|
Stock option exercises |
89 |
|
|
18 |
|
|
2,008 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,026 |
|
Tax effect related to net share settlement of equity awards |
— |
|
|
— |
|
|
(356) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(356) |
|
Stock issued to, acquired for and distributed from rabbi trust |
1 |
|
|
— |
|
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
(3) |
|
|
3 |
|
|
25 |
|
Balance at May 31, 2021 |
82,991 |
|
|
$ |
16,598 |
|
|
$ |
200,963 |
|
|
$ |
(667,732) |
|
|
$ |
950,482 |
|
|
$ |
(83,400) |
|
|
$ |
(2,999) |
|
|
$ |
2,999 |
|
|
$ |
416,911 |
|
|