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Stock-Based Compensation
6 Months Ended
Nov. 29, 2015
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 generally 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.

Separation-Related Adjustments
Pursuant to the provisions of our stock plans, in connection with the separation of Four Corners we made certain adjustments to the exercise price and number of our share-based compensation awards, with the intention of preserving the intrinsic value of the awards immediately prior to the separation. These adjustments are reflected in the activity tables below. The separation-related adjustments did not have a material impact on either compensation expense or the potentially dilutive securities to be considered in the calculation of diluted earnings per share of common stock.
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. For the six months ended November 29, 2015, all stock option grants occurred prior to the separation of Four Corners.
 
Stock Options Granted
 
Six Months Ended
 
November 29, 2015
 
November 23, 2014
Weighted-average fair value (1)
$
12.72

 
$
9.20

Dividend yield
3.3
%
 
4.5
%
Expected volatility of stock
28.0
%
 
37.3
%
Risk-free interest rate
1.9
%
 
2.1
%
Expected option life (in years)
6.5

 
6.5

Weighted-average exercise price per share (1)
$
64.85

 
$
39.55


 (1) Weighted averages were adjusted for the impact of the separation of Four Corners.
The following table presents a summary of our stock-based compensation activity for the six months ended November 29, 2015: 
(in millions)
 
Stock
Options
 
Restricted
Stock/
Restricted
Stock
Units
 
Darden
Stock
Units
 
Cash-Settled
Performance
Stock Units
 
Equity-Settled
Performance
Stock Units
Outstanding beginning of period
 
7.71

 
0.10

 
1.37

 
0.38

 

Awards issued in conversion as a result of the separation of Four Corners
 
0.97

 

 
0.18

 
0.05

 

Awards granted
 
0.43

 
0.04

 
0.32

 

 
0.19

Awards exercised
 
(1.70
)
 
(0.02
)
 
(0.33
)
 
(0.10
)
 

Awards forfeited
 
(0.13
)
 

 
(0.05
)
 
(0.10
)
 

Performance unit adjustment
 

 

 

 
0.04

 

Outstanding end of period
 
7.28

 
0.12

 
1.49

 
0.27

 
0.19


We recognized expense from stock-based compensation as follows: 
 
 
Three Months Ended
 
Six Months Ended
(in millions)
 
November 29,
2015
 
November 23,
2014
 
November 29,
2015
 
November 23,
2014
Stock options
 
$
2.4

 
$
11.5

 
$
4.9

 
$
14.7

Restricted stock/restricted stock units
 
0.5

 
0.7

 
0.9

 
1.1

Darden stock units
 
2.6

 
3.5

 
6.8

 
4.8

Cash-settled performance stock units
 
0.2

 
7.1

 
2.0

 
8.0

Equity-settled performance stock units
 
0.8

 

 
1.1

 

Employee stock purchase plan
 
0.3

 
0.3

 
0.6

 
0.7

Director compensation program/other
 
0.3

 
0.6

 
1.0

 
0.6

Total stock-based compensation expense
 
$
7.1

 
$
23.7

 
$
17.3

 
$
29.9