Ah, crap. That looks like a pretty big tear (and would probably have been too close to the sidewall to patch up anyway, even if it was smaller), do you know what caused it? Just had to replace the tire on my wife's MDX last Sunday, a nail in nearly the same spot as yours. Of course, that Michelin was "only" $200.00.
No clue what caused it. But it was big enough to put my finger through. Luckily it didn't damage the rim. I did, however, get the price pro-rated. They took off a little over 200 bucks off the price of the new tire.
And yeah, my wifes Michelins on her Lexus were only 180!