Stock-Based Compensation (Tables)

12 Months Ended

May 26, 2019

Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items]

Recognized Stock-Based Compensation Expense

Stock-based compensation expense and the associated income tax benefit included in continuing operations was as follows:  

	Fiscal Year Ended
(in millions)	May 26, 2019		May 27, 2018		May 28, 2017
Stock options	$	5.0	$	4.6	$	6.0
Restricted stock/restricted stock units	6.1		3.9		1.9
Darden stock units	33.0		20.1		20.9
Cash-settled performance stock units	—		—		4.2
Equity-settled performance-based restricted stock units	12.9		11.7		5.3
Employee stock purchase plan	1.5		1.3		1.1
Director compensation program/other	1.3		1.2		1.3
Total	$	59.8	$	42.8	$	40.7
Income tax benefits (1)	$	19.5	$	12.0	$	—

(1) In accordance with the fiscal 2018 adoption of ASU 2016-09, excess tax benefits are recognized in our provision for income taxes rather than in equity as previously recognized.

Summary Of Stock Option Activity

The following table presents a summary of our stock option activity as of and for the year ended May 26, 2019:

	Options (in millions)	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Life (Yrs)	Aggregate Intrinsic Value (in millions)
Outstanding beginning of period	3.53	$41.87	5.89	$130.6
Options granted	0.37	107.05
Options exercised	(1.24)	42.14
Options canceled	(0.06)	76.32
Outstanding end of period	2.60	$62.50	6.22	$149.9
Exercisable	1.28	$45.12	4.54	$95.8

Summary Of Restricted Stock And RSU Activity

The following table presents a summary of our restricted stock and RSU activity as of and for the fiscal year ended May 26, 2019:

	Shares (in millions)	Weighted-Average Grant Date Fair Value Per Share
Outstanding beginning of period	0.24	$71.99
Shares granted	0.09	108.36
Shares vested	(0.04)	56.93
Shares canceled	(0.01)	87.99
Outstanding end of period	0.28	$85.67

Summary Of Darden Stock Unit Activity

The following table presents a summary of our Darden stock unit activity as of and for the fiscal year ended May 26, 2019:

(All units settled in cash)	Units (in millions)	Weighted-Average Fair Value Per Unit
Outstanding beginning of period	1.39	$87.88
Units granted	0.23	107.05
Units vested	(0.33)	109.84
Units canceled	(0.09)	79.32
Outstanding end of period	1.20	$120.13

Non-qualified stock options

Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items]

Stock-Based Compensation

The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes model to record stock-based compensation are as follows:

	Granted in Fiscal Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Weighted-average fair value	$	18.78		$	14.63		$	9.08
Dividend yield	3.2		%	3.0		%	3.5		%
Expected volatility of stock	22.6		%	23.5		%	24.3		%
Risk-free interest rate	2.9		%	2.0		%	1.4		%
Expected option life (in years)	6.4			6.4			6.5
Weighted-average exercise price per share	$	107.05		$	85.83		$	59.70

Equity-settled performance-based restricted stock units

Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items]

Stock-Based Compensation

The weighted-average grant date fair value of PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows:

	Granted in Fiscal Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Dividend yield (1)	0.0		%	0.0		%	0.0		%
Expected volatility of stock	23.4		%	21.5		%	22.5		%
Risk-free interest rate	2.7		%	1.5		%	0.8		%
Expected option life (in years)	2.9			2.9			2.8
Weighted-average grant date fair value per unit	$	100.72		$	90.51		$	60.05

(1)

Assumes a reinvestment of dividends.

Summary Of Performance Stock Unit Activity

The following table presents a summary of our equity-settled PRSU activity as of and for the fiscal year ended May 26, 2019:

	Units (in millions)	Weighted-Average Grant Date Fair Value Per Unit
Outstanding beginning of period	0.55	$74.04
Units granted	0.21	100.72
Units vested	(0.11)	63.91
Units canceled	(0.05)	85.09
Outstanding end of period	0.60	$84.11