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Stock-Based Compensation
 6 Months Ended
Nov. 27, 2016
Share-based Compensation [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
We grant stock options for a fixed number of shares to certain employees 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.

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 27, 2016
 
November 29, 2015
Weighted-average fair value (1)
$
9.08

 
$
12.72

Dividend yield
3.5
%
 
3.3
%
Expected volatility of stock
24.3
%
 
28.0
%
Risk-free interest rate
1.4
%
 
1.9
%
Expected option life (in years)
6.5

 
6.5

Weighted-average exercise price per share (1)
$
59.70

 
$
64.85


 (1) Weighted averages for the three months ended November 29, 2015 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 27, 2016: 
(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
 
6.32

 
0.11

 
1.43

 
0.21

 
0.17

Awards granted
 
0.58

 
0.05

 
0.31

 
—

 
0.19

Awards exercised/vested
 
(1.12
)
 
(0.01
)
 
(0.27
)
 
(0.10
)
 
—

Awards forfeited
 
(0.15
)
 
(0.01
)
 
(0.05
)
 
(0.03
)
 
(0.03
)
Performance unit adjustment
 
—

 
—

 
—

 
0.01

 
—

Outstanding end of period
 
5.63

 
0.14

 
1.42

 
0.09

 
0.33


We recognized expense from stock-based compensation as follows: 
 
 
Three Months Ended
 
Six Months Ended
(in millions)
 
November 27,
2016
 
November 29,
2015
 
November 27,
2016
 
November 29,
2015
Stock options
 
$
1.6

 
$
2.4

 
$
3.1

 
$
4.9

Restricted stock/restricted stock units
 
0.3

 
0.5

 
0.7

 
0.9

Darden stock units
 
6.7

 
2.6

 
9.3

 
6.8

Cash-settled performance stock units
 
1.3

 
0.2

 
1.3

 
2.0

Equity-settled performance stock units
 
1.3

 
0.8

 
2.4

 
1.1

Employee stock purchase plan
 
0.3

 
0.3

 
0.6

 
0.6

Director compensation program/other
 
0.3

 
0.3

 
0.6

 
1.0

Total stock-based compensation expense
 
$
11.8

 
$
7.1

 
$
18.0

 
$
17.3