STOCK-BASED COMPENSATION

3 Months Ended

Aug. 25, 2019

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

12.   STOCK-BASED COMPENSATION

We have a stock plan that is administered by the Compensation Committee (“the Committee”) of the Board of Directors. The Committee authorizes the grants of restricted stock, restricted stock units (“RSUs”), performance awards payable upon the attainment of specified performance goals (“Performance Shares”), dividend equivalents, and other stock-based awards at the discretion of the Committee. During the thirteen weeks ended August 25, 2019, we granted 0.2 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $67.49. As of August 25, 2019, 7.6 million shares were available for future grant under the plan.

Our share-based compensation expense is recorded in “Selling, general and administrative expenses.” Compensation expense for share-based awards recognized in the Consolidated Statements of Earnings, net of forfeitures, was as follows (dollars in millions):

	Thirteen Weeks Ended
	August 25,		August 26,
	2019		2018
Stock-settled RSUs	$	2.8	$	2.1
Performance Shares		2.5		2.0
Stock options		0.1		0.1
Stock-settled compensation expense		5.4		4.2
Cash-settled RSUs (a)		1.0		2.1
Total compensation expense		6.4		6.3
Income tax benefit (b)		(1.5)		(1.5)
Total compensation expense, net of tax benefit	$	4.9	$	4.8

(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.

Based on estimates at August 25, 2019, total unrecognized compensation expense related to stock-based awards was as follows (dollars in millions):

			Remaining
			Weighted
	Unrecognized		Average
	Compensation		Recognition
	Expense		Period (in years)
Stock-settled RSUs	$	25.5		2.3
Performance Shares		17.2		2.0
Total unrecognized compensation expense	$	42.7		2.2