STOCK-BASED COMPENSATION

9 Months Ended

Feb. 23, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

12.   STOCK-BASED COMPENSATION

The Compensation Committee (“the Committee”) of our Board of Directors administers our stock compensation plan. The Committee, in its discretion, authorizes grants of restricted stock units (“RSUs”), performance awards payable upon the attainment of specified performance goals (“Performance Shares”), dividend equivalents, and other stock-based awards. During the thirty-nine weeks ended February 23, 2020, we granted 0.2 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $68.47. As of February 23, 2020, 7.6 million shares were available for future grant under the plan.

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

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	February 23,		February 24,		February 23,		February 24,
	2020		2019		2020		2019
Stock-settled RSUs	$	3.2	$	2.5	$	9.5	$	7.4
Performance Shares		2.4		2.0		8.6		6.1
Stock options		—		—		0.1		0.2
Stock-settled compensation expense		5.6		4.5		18.2		13.7
Cash-settled RSUs (a)		—		—		1.0		3.7
Total compensation expense		5.6		4.5		19.2		17.4
Income tax benefit (b)		(1.1)		(0.9)		(3.6)		(3.4)
Total compensation expense, net of tax benefit	$	4.5	$	3.6	$	15.6	$	14.0

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

(b) Income tax benefit represents the marginal tax rate, excluding non-deductible compensation.

Based on estimates at February 23, 2020, 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	$	19.5		1.9
Performance Shares		13.2		1.8
Total unrecognized stock-based expense	$	32.7		1.9