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Stock-Based Compensation
 6 Months Ended
Nov. 23, 2014
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 (Darden 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
 
Six Months Ended
 
November 23, 2014
 
November 24, 2013
Weighted-average fair value
$
10.36

 
$
12.05

Dividend yield
4.5
%
 
4.4
%
Expected volatility of stock
37.3
%
 
39.6
%
Risk-free interest rate
2.1
%
 
1.9
%
Expected option life (in years)
6.5

 
6.4


 
The following table presents a summary of our stock-based compensation activity for the six months ended November 23, 2014: 
(in millions)
 
Stock
Options
 
Restricted
Stock/
Restricted
Stock
Units
 
Darden
Stock
Units
 
Performance
Stock Units
Outstanding beginning of period
 
11.2

 
0.2

 
2.1

 
0.3

Awards granted
 
1.1

 
—

 
0.5

 
0.1

Awards exercised
 
(1.4
)
 
(0.1
)
 
(0.4
)
 
(0.1
)
Awards forfeited
 
(0.3
)
 
—

 
(0.7
)
 
(0.2
)
Performance unit adjustment
 
—

 
—

 
—

 
0.4

Outstanding end of period
 
10.6

 
0.1

 
1.5

 
0.5


We recognized expense from stock-based compensation as follows: 
 
 
Three Months Ended
 
Six Months Ended
(in millions)
 
November 23,
2014
 
November 24,
2013
 
November 23,
2014
 
November 24,
2013
Stock options (1)
 
$
11.5

 
$
7.3

 
$
14.7

 
$
11.5

Restricted stock/restricted stock units (1)
 
0.7

 
0.4

 
1.1

 
0.8

Darden stock units
 
3.5

 
6.1

 
4.8

 
7.9

Performance stock units (1)
 
7.1

 
2.3

 
8.0

 
4.1

Employee stock purchase plan
 
0.3

 
0.4

 
0.7

 
0.9

Director compensation program/other
 
0.6

 
1.7

 
0.6

 
1.7

Total stock-based compensation expense
 
$
23.7

 
$
18.2

 
$
29.9

 
$
26.9


(1)
The increase for the periods ended November 23, 2014 is primarily attributable to the workforce reduction efforts further discussed in Note 12.
As of the effective date of the Red Lobster sale, all outstanding, unvested stock options, restricted stock and Darden stock units held by Darden employees that transferred to Red Lobster were either vested on a pro-rata basis or canceled. Approximately 23.7 thousand performance stock units remain outstanding and are expected to be settled on a pro-rata basis on the scheduled dates in the first quarter of fiscal 2016 and 2017 when the applicable performance factors are determined.
Our stock plan award agreements in place prior to October 2014 contain a change-in-control provision, where, following a change-in-control, the awards fully vest upon a qualifying termination. Following our 2014 annual meeting of shareholders, qualifying terminations during the 24-month period ending October 2016 will require all unvested awards granted prior to the 2014 annual meeting to be immediately vested.