Stock Plans

6 Months Ended

Nov. 26, 2023

Stock Plans [Abstract]

Stock Plans

(10) Stock Plans

We have various stock-based compensation programs under which awards, including stock options, restricted stock, restricted stock

units, and performance awards, may be granted to employees and non-employee directors. These programs and related accounting are

described in Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended

May 28, 2023.

Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings was as follows:

Quarter Ended

Six-Month Period Ended

In Millions

Nov. 26, 2023

Nov. 27, 2022

Nov. 26, 2023

Nov. 27, 2022

Compensation expense related to stock-based payments

$

23.1

$

24.1

$

58.5

$

57.6

Windfall tax benefits from stock-based payments in income tax expense in our Consolidated Statements of Earnings were as follows:

Quarter Ended

Six-Month Period Ended

In Millions

Nov. 26, 2023

Nov. 27, 2022

Nov. 26, 2023

Nov. 27, 2022

Windfall tax benefits from stock-based payments

$

0.5

$

5.6

$

8.9

$

18.4

As of November 26, 2023, unrecognized compensation expense related to non-vested stock options, restricted stock units, and

performance share units was $

149.8

 million. This expense will be recognized over

23

 months, on average.

Net cash proceeds from the exercise of stock options less shares used for withholding taxes and the intrinsic value of options exercised

were as follows:

Six-Month Period Ended

In Millions

Nov. 26, 2023

Nov. 27, 2022

Net cash proceeds

$

5.7

$

118.5

Intrinsic value of options exercised

$

2.3

$

55.7

We estimate the fair value of each stock option on the grant date using a Black-Scholes option-pricing model. Black-Scholes option-

pricing models require us to make predictive assumptions regarding future stock price volatility, employee exercise behavior, and

dividend yield. We estimate our future stock price volatility using the historical volatility over the expected term of the option,

excluding time periods of volatility we believe a marketplace participant would exclude in estimating our stock price volatility. We

also have considered, but did not use, implied volatility in our estimate, because trading activity in options on our stock, especially

those with tenors of greater than 6 months, is insufficient to provide a reliable measure of expected volatility. Our method of selecting

the other valuation assumptions is explained in Note 12 to the Consolidated Financial Statements included in our Annual Report on

Form 10-K for the fiscal year ended May 28, 2023.

The estimated fair values of stock options granted and the assumptions used for the Black-Scholes option-pricing model were as

follows:

Six-Month Period Ended

Nov. 26, 2023

Nov. 27, 2022

Estimated fair values of stock options granted 

$

17.47

$

14.16

Assumptions:

Risk-free interest rate

4.0

%

3.3

%

Expected term

8.5

years

8.5

years

Expected volatility

21.4

%

20.9

%

Dividend yield

2.8

%

3.1

%

The total grant date fair value of restricted stock unit awards that vested during the period was as follows:

Six-Month Period Ended

In Millions

Nov. 26, 2023

Nov. 27, 2022

Total grant date fair value

$

87.4

$

102.6