v3.25.2
Stock Plans
 3 Months Ended
Aug. 24, 2025
Stock Plans [Abstract]  
Stock Plans
 
(10) Stock Plans
We
have various
 
stock-based compensation
 
programs under
 
which awards,
 
including stock
 
options, restricted
 
stock, restricted
 
stock
units, and performance
 
awards, may be granted
 
to employees and non-employee
 
directors. These programs
 
and related accounting
 
are
described in Note
 
12 to the
 
Consolidated Financial
 
Statements included
 
in our Annual
 
Report on Form
 
10-K for the
 
fiscal year ended
May 25, 2025.
Compensation expense related to stock-based payments recognized
 
in the Consolidated Statements of Earnings was as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
In Millions
Aug. 24, 2025
Aug. 25, 2024
Compensation expense related to stock-based payments
$
15.1
$
20.3
(Shortfall) windfall
 
tax impacts
 
of stock-based
 
payments in
 
income tax
 
expense in
 
our Consolidated
 
Statements of
 
Earnings were
 
as
follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
In Millions
Aug. 24, 2025
Aug. 25, 2024
(Shortfall) windfall tax impacts of stock-based payments
$
(1.5)
$
2.8
As
 
of
 
August
 
24,
 
2025,
 
unrecognized
 
compensation
 
expense
 
related
 
to
 
non-vested
 
stock
 
options,
 
restricted
 
stock
 
units,
 
and
performance share units was $
181.6
 
million. This expense will be recognized over
28
 
months on average.
Net cash proceeds from the exercise of stock options
 
less shares used for withholding taxes and the intrinsic
 
value of options exercised
were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
In Millions
Aug. 24, 2025
Aug. 25, 2024
Net cash proceeds
$
0.2
$
9.4
Intrinsic value of options exercised
$
-
$
1.9
We
 
estimate the
 
fair value
 
of each
 
option on
 
the grant
 
date using
 
a Black-Scholes
 
option-pricing
 
model, which
 
requires us
 
to make
predictive assumptions
 
regarding future
 
stock price volatility,
 
employee exercise
 
behavior, dividend
 
yield, and
 
the forfeiture
 
rate. We
estimate our future
 
stock price volatility
 
using the historical
 
volatility over
 
the expected term
 
of the option,
 
excluding time
 
periods of
volatility we believe a marketplace participant would
 
exclude in estimating our stock price volatility.
 
We also have
 
considered, but did
not use, implied
 
volatility in our estimate,
 
because trading activity in
 
options on our stock,
 
especially those with
 
tenors of greater than
6 months, is
 
insufficient to
 
provide a reliable
 
measure of expected
 
volatility.
 
Our method of
 
selecting the other
 
valuation assumptions
is
 
explained
 
in
 
Note
 
12
 
to
 
the
 
Consolidated
 
Financial
 
Statements
 
included
 
in
 
our
 
Annual
 
Report
 
on
 
Form
 
10-K
 
for
 
the
 
fiscal
 
year
ended May 25, 2025.
The
 
estimated
 
fair
 
values
 
of
 
stock
 
options
 
granted
 
and
 
the
 
assumptions
 
used
 
for
 
the
 
Black-Scholes
 
option-pricing
 
model
 
were
 
as
follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
Aug. 24, 2025
Aug. 25, 2024
Estimated fair values of stock options granted
 
$
9.45
$
13.20
Assumptions:
Risk-free interest rate
4.2
%
4.5
%
Expected term
8.0
years
8.5
years
Expected volatility
22.3
%
21.6
%
Dividend yield
4.7
%
3.8
%
The total grant date fair value of restricted stock unit awards that vested during
 
the period was as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
In Millions
Aug. 24, 2025
Aug. 25, 2024
Total grant date fair
 
value
$
98.6
$
90.8