STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Aug. 26, 2018


			Weighted-		Weighted-
			Average		Average		Aggregate
			Exercise		Remaining		Intrinsic
			Price		Contractual		Value (a)
	Shares		(per share)		Term (Years)		(in millions)
Outstanding at May 27, 2018		651,606	$	29.08
Granted		—		—
Exercised		(25,522)		28.73
Forfeited/cancelled		(408)		30.67
Outstanding at August 26, 2018		625,676	$	29.09		7.0	$	23.7

Exercisable at August 26, 2018		480,847	$	27.31		6.7	$	19.1

(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 2018 first quarter, or August 24, 2018, 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 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 27, 2018		581,875	$	36.84		285,652	$	28.54		160,270	$	39.82
Granted (a)		184,461		69.77		—		—		85,851		69.77
Performance condition adjustment (b)		—		—		—		—		97,803		40.35
Vested (c)		(103,343)		26.83		(148,774)		28.51		(41,833)		26.84
Forfeited/expired/cancelled		(3,800)		53.17		—		—		—		—
Outstanding at August 26, 2018		659,193	$	47.53		136,878	$	28.58		302,091	$	50.30

(a)

Granted represents new grants and dividend equivalents accrued.

(b)

Amount represents adjustment for performance results attained on Performance Shares during the thirteen weeks ended August 26, 2018.

(c)

The aggregate fair value of awards that vested during the thirteen weeks ended August 26, 2018 was $20.8 million, which represents the market value of our common stock on the date that the RSUs and Performance Shares vested. The number of RSUs and Performance Shares vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

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

Consolidated Statements of Earnings, net of forfeitures, was as follows (dollars in millions):


	Thirteen Weeks Ended
	August 26,		August 27,
	2018		2017
Stock options	$	0.1	$	0.6
Stock-settled RSUs		2.1		1.9
Performance Shares		2.0		0.1
Stock-settled compensation expense		4.2		2.6
Cash-settled RSUs (a)		2.1		0.9
Total compensation expense		6.3		3.5
Income tax benefit (b)		(1.5)		(1.3)
Total compensation expense, net of tax benefit	$	4.8	$	2.2

(a)

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

(b)

Income tax benefit represents the marginal tax rate.

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

Based on estimates at August 26, 2018, total unrecognized compensation expense related to share-based payments was as follows (dollars in millions):


			Remaining
			Weighted
	Unrecognized		Average
	Compensation		Recognition
	Expense		Period (in years)
Stock options	$	0.3		1.0
Stock-settled RSUs		21.9		2.4
Cash-settled RSUs		2.6		0.9
Performance shares		15.5		2.3
Total unrecognized compensation expense	$	40.3		2.3