STOCK-BASED COMPENSATION

6 Months Ended

Nov. 28, 2021

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

10.   STOCK-BASED COMPENSATION

The Compensation and Human Capital 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 twenty-six weeks ended November 28, 2021, we granted 0.3 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $66.00. As of November 28, 2021, 7.1 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:

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	November 28,		November 29,		November 28,		November 29,
(in millions)	2021		2020		2021		2020
Total compensation expense	$	4.4	$	5.3	$	9.6	$	11.3
Income tax benefit (a)		(0.9)		(0.9)		(1.8)		(2.0)
Total compensation expense, net of tax benefit	$	3.5	$	4.4	$	7.8	$	9.3

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

Based on estimates at November 28, 2021, total unrecognized compensation expense related to stock-based awards was as follows:

			Remaining
			Weighted
	Unrecognized		Average
	Compensation		Recognition
(dollars in millions)	Expense		Period (in years)
Stock-settled RSUs	$	29.3		2.1
Performance Shares		7.5		1.9
Total unrecognized compensation expense	$	36.8		2.1