Stock-Based Compensation

3 Months Ended

Aug. 28, 2011

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We grant stock options for a fixed number of shares to certain employees and directors with an exercise price equal to the fair value of the shares at the date of grant. We also grant restricted stock, restricted stock units, and performance stock units with a fair value determined based on our closing stock price on the date of grant. In addition, we also grant cash settled stock units and cash settled performance stock units, which are classified as liabilities and are marked to market as of the end of each period.

The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes option pricing model were as follows:

	Stock Options Granted During the Three Months Ended
	August 28, 2011			August 29, 2010
Weighted-average fair value	$	14.37		$	12.81
Dividend yield	3.53		%	3.01		%
Expected volatility of stock	39.4		%	39.1		%
Risk-free interest rate	2.10		%	2.21		%
Expected option life (in years)	6.5			6.7

The following table presents a summary of our stock-based compensation activity for the three months ended August 28, 2011:

(in millions)	Stock Options		Restricted Stock/ Restricted Stock Units		Darden Stock Units		Performance Stock Units
Outstanding beginning of period	13.0		0.6		1.9		1.0
Awards granted	1.5		—		0.6		0.3
Awards exercised	(0.8	)	(0.1	)	(0.3	)	(0.2	)
Awards forfeited	—		—		—		—
Outstanding end of period	13.7		0.5		2.2		1.1

We recognized expense from stock-based compensation as follows:

	Three Months Ended
(in millions)	August 28, 2011		August 29, 2010
Stock options	$	5.0	$	4.9
Restricted stock/restricted stock units	1.3		2.1
Darden stock units	2.1		2.4
Performance stock units	2.6		3.1
Employee stock purchase plan	0.4		0.4
Director compensation program/other	0.1		0.3
Total stock-based compensation expense	$	11.5	$	13.2