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Stock-Based Compensation
 6 Months Ended
Nov. 24, 2019
Share-based Payment Arrangement, Noncash Expense [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 grant cash settled stock units (Darden 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 24, 2019
 
November 25, 2018
Weighted-average fair value
$
19.94

 
$
18.78

Dividend yield
3.0
%
 
3.2
%
Expected volatility of stock
22.5
%
 
22.6
%
Risk-free interest rate
1.9
%
 
2.9
%
Expected option life (in years)
6.3

 
6.4

Weighted-average exercise price per share
$
124.24

 
$
107.05




The weighted-average grant date fair value of performance-based restricted stock units and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows:
  
Granted in Fiscal Year Ended
 
Six Months Ended
 
November 24, 2019
 
November 25, 2018
Dividend yield (1)
0.0
%
 
0.0
%
Expected volatility of stock
23.1
%
 
23.4
%
Risk-free interest rate
1.8
%
 
2.7
%
Expected option life (in years)
2.9

 
2.9

Weighted-average grant date fair value per unit
$
124.41

 
$
115.07

(1)
Assumes a reinvestment of dividends.
The following table presents a summary of our stock-based compensation activity for the three months ended November 24, 2019.
(in millions)
 
Stock
Options
 
Restricted
Stock/
Restricted
Stock
Units
 
Equity-Settled
Performance
Stock Units
 
Cash-Settled Darden
Stock
Units
Outstanding beginning of period
 
2.60

 
0.28

 
0.60

 
1.20

Awards granted
 
0.31

 
0.06

 
0.18

 
0.19

Awards exercised/vested
 
(0.25
)
 
(0.04
)
 
(0.22
)
 
(0.28
)
Awards forfeited
 
—

 
(0.01
)
 
(0.01
)
 
(0.04
)
Outstanding end of period
 
2.66

 
0.29

 
0.55

 
1.07


We recognized expense from stock-based compensation as follows: 
 
 
Three Months Ended
 
Six Months Ended
(in millions)
 
November 24,
2019
 
November 25,
2018
 
November 24,
2019
 
November 25,
2018
Stock options
 
$
1.5

 
$
1.3

 
$
2.8

 
$
2.5

Restricted stock/restricted stock units
 
1.7

 
1.7

 
3.5

 
3.0

Equity-settled performance stock units
 
3.9

 
3.5

 
7.7

 
6.0

Cash-settled Darden stock units
 
5.8

 
6.5

 
12.4

 
18.8

Employee stock purchase plan
 
0.5

 
0.4

 
0.9

 
0.7

Director compensation program/other
 
0.4

 
0.3

 
0.7

 
0.6

Total stock-based compensation expense
 
$
13.8

 
$
13.7

 
$
28.0

 
$
31.6