STOCK-BASED COMPENSATION

9 Months Ended

Feb. 27, 2022

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 thirty-nine weeks ended February 27, 2022, we granted 0.4 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $65.99. As of February 27, 2022, 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				Thirty-Nine Weeks Ended
	February 27,		February 28,		February 27,		February 28,
(in millions)	2022		2021		2022		2021
Total compensation expense	$	5.9	$	6.3	$	15.5	$	17.6
Income tax benefit (a)		(1.0)		(1.1)		(2.8)		(3.1)
Total compensation expense, net of tax benefit	$	4.9	$	5.2	$	12.7	$	14.5

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

Based on estimates at February 27, 2022, 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	$	27.7		2.0
Performance Shares		7.4		1.9
Total unrecognized compensation expense	$	35.1		2.0