STOCK-BASED COMPENSATION (Tables)

12 Months Ended

May 28, 2017

Schedule of weighted average Black-Scholes assumptions for stock options


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

The Schedule of stock option 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		(22,896)		21.90
Forfeited/cancelled		(10,211)		30.68
Outstanding at May 28, 2017		720,827	$	25.90		7.4	$	14.2

Exercisable at May 28, 2017		310,247	$	20.42		5.6	$	7.8

(a)

The aggregate intrinsic values represent the total pre-tax intrinsic value (the difference between the closing price of our common stock on the last trading day of our fiscal 2017 fourth quarter, or May 26, 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 fiscal year. The amount changes based on the fair market value of our common stock.

The schedule of RSU and Performance Share activity


	Stock-Settled				Cash-Settled				Performance Shares
			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)		86,642		33.96		—		—		1,640		25.84
Vested (b)		(17,753)		18.68		(1,503)		23.70		—		—
Forfeited/expired/cancelled		(38,751)		24.24		(5,722)		26.73		—		—
Outstanding at May 28, 2017		489,604	$	26.92		462,612	$	25.33		57,690	$	25.84

(a)

Granted represents stock awards granted by us after the Separation and dividend equivalents accrued.

(b)

The aggregate fair value of awards that vested in fiscal 2017 was $0.7 million, which represents the market value of our common stock on the date that the RSUs vested. The number of RSUs vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated future forfeitures.

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

Compensation expense for stock-based awards recognized in the Combined and Consolidated Statements of Earnings, net of forfeitures, was as follows (dollars in millions):


	For the Fiscal Years Ended May
	2017		2016		2015
Stock options	$	0.6	$	0.4	$	0.4
Stock-settled RSUs		4.0		2.4		2.0
Cash-settled RSUs (a)		9.7		5.7		4.4
Performance Shares		1.1		0.4		0.1
Total compensation expense		15.4		8.9		6.9
Income tax benefit (b)		(5.7)		(3.3)		(2.5)
Total compensation expense, net of tax benefit	$	9.7	$	5.6	$	4.4

(a)

All cash-settled RSUs are marked-to-market and presented within “Accrued liabilities” and “Other noncurrent liabilities” in our Combined and Consolidated Balance Sheets.

(b)

Income tax benefit determined using our marginal tax rate.

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

Based on estimates at May 28, 2017, total unrecognized compensation expense related to stock-based payments was as follows (dollars in millions):


			Remaining
			Weighted
	Unrecognized		Average
	Compensation		Recognition
	Expense		Period (in years)
Stock options	$	1.2		1.6
Stock-settled RSUs		7.1		2.0
Cash-settled RSUs		7.3		1.7
Performance Shares		0.9		1.7
Total unrecognized stock-based compensation expense	$	16.5		1.8