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

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. 23, 2025	Nov. 24, 2024	Nov. 23, 2025	Nov. 24, 2024
Compensation expense related to stock-based payments	$24.2	$26.3	$39.3	$46.6

Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings includes amounts

recognized in restructuring, transformation, impairment, and other exit costs in fiscal 2026.

(Shortfall) windfall tax benefits from stock-based payments in income tax expense in our Consolidated Statements of Earnings were as


	Quarter Ended		Six-Month Period Ended
In Millions	Nov. 23, 2025	Nov. 24, 2024	Nov. 23, 2025	Nov. 24, 2024
(Shortfall) windfall tax benefits from stock-based payments	$(0.1)	$2.0	$(1.6)	$4.8

As of November 23, 2025, unrecognized compensation expense related to non-vested stock options, restricted stock units, and

performance share units was $158.8 million. This expense will be recognized over 26 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


	Six-Month Period Ended
In Millions	Nov. 23, 2025	Nov. 24, 2024
Net cash proceeds	$0.3	$33.8
Intrinsic value of options exercised	$—	$10.0

We estimate the fair value of each option on the grant date using a Black-Scholes option-pricing model, which requires us to make

predictive assumptions regarding future stock price volatility, employee exercise behavior, dividend yield, and the forfeiture rate. 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

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


	Six-Month Period Ended
	Nov. 23, 2025	Nov. 24, 2024
Estimated fair values of stock options granted	$9.45	$13.26
Assumptions:
Risk-free interest rate	4.2%	4.5%
Expected term	8.0 years	8.5 years
Expected volatility	22.3%	21.6%
Dividend yield	4.7%	3.8%

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