Stock-Based Compensation (Tables)

6 Months Ended

Nov. 24, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Nonvested Share Activity

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

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

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

Non-qualified Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

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

Equity-Settled Performance Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

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.