SHARE-BASED PAYMENTS (Tables)

9 Months Ended

Feb. 26, 2017

SHARE-BASED PAYMENTS

Schedule of weighted average Black-Scholes assumptions for stock options

The weighted average Black-Scholes assumptions for stock options granted during the thirteen-weeks ended February 26, 2017 were:

Expected volatility (%)	23.94
Dividend yield (%)	2.18
Risk-free interest rate (%)	1.57
Expected life of stock option (years)	3.4

Schedule of stock option, restricted stock units and performance-based restricted stock unit activity

			Weighted-		Weighted-
			Average		Average		Aggregate
			Exercise		Remaining		Intrinsic
			Price		Contractual		Value (a)
	Shares		(per share)		Term (Years)		(in millions)
Outstanding at May 29, 2016		—		—
Converted on November 9, 2016		607,420	$	23.60
Granted		146,514		35.15
Exercised		(15,819)		21.87
Forfeited/cancelled		(10,211)		30.68
Outstanding at February 26, 2017		727,904	$	25.86		7.60	$	10.0
Exercisable at February 26, 2017		317,324	$	20.45		5.75	$	6.1

(a) The aggregate intrinsic values represent the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of our fiscal 2017 third quarter, or February 24, 2017, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at the end of the quarter. The amount changes based on the fair market value of our stock.

The following table summarizes restricted stock unit and performance-based restricted stock unit activity for the thirty-nine weeks ended February 26, 2017:  

	Stock-Settled				Cash-Settled				Performance Units
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
			Grant-				Grant-				Grant-
			Date Fair				Date Fair				Date Fair
	Shares		Value		Shares		Value		Shares		Value
Outstanding at May 29, 2016		—		—		—		—		—		—
Converted on November 9, 2016		459,466	$	25.05		469,837	$	25.33		56,050	$	25.84
Granted (a)		85,073		33.88		—		—		1,372		25.84
Vested		(10,130)		19.31		—		—		—		—
Forfeited/expired/cancelled		(31,706)		23.92		(3,378)		25.63		—		—
Outstanding at February 26, 2017		502,703	$	26.73		466,459	$	25.33		57,422	$	25.84

Granted represents new grants and dividend equivalents accrued.

Schedule of compensation expenses for share-based awards recognized, net of forfeitures

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	February 26,		February 28,		February 26,		February 28,
	2017		2016		2017		2016
Stock options	$	0.1	$	0.1	$	0.4	$	0.3
Stock-settled restricted stock units		1.0		0.7		2.7		1.9
Performance-based restricted stock units		0.3		—		0.3		—
Cash-settled restricted stock units (a)		3.1		1.1		6.4		4.0
Total compensation expense		4.5		1.9		9.8		6.2
Income tax benefit (b)		(1.7)		(0.7)		(3.6)		(2.3)
Total compensation expense, net of tax benefit	$	2.8	$	1.2	$	6.2	$	3.9

(a) All cash-settled restricted stock units are marked-to-market and presented within “Accrued liabilities” and “Other noncurrent liabilities” in our Condensed Combined and Consolidated Balance Sheets.

(b) Income tax benefit represents the marginal tax rate.

Schedule of total unrecognized compensation expense, net of estimated forfeitures, related to share-based payments

			Remaining
			Weighted
	Unrecognized		Average
	Compensation		Recognition
	Expense		Period (in years)
Stock options	$	1.4		1.6
Cash-settled restricted stock units		7.9		1.9
Stock-settled restricted stock units		8.5		2.1
Performance units		1.0		1.8
Total unrecognized share-based compensation expense	$	18.8		2.0