v3.26.3
Stock Plans
3 Months Ended
Aug. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock Plans 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 31, 2026.
Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings was as follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Compensation expense related to stock-based payments
$21.8
$15.1
Shortfall tax expense from stock-based payments in income tax expense in our Consolidated Statements of Earnings were as follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Shortfall tax expense from stock-based payments
$(5.5)
$(1.5)
As of August 30, 2026, unrecognized compensation expense related to non-vested stock options, restricted stock units, and
performance share units was $184.4 million. This expense will be recognized over 29 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. 30, 2026
Aug. 24, 2025
Net cash proceeds
$
$0.2
Intrinsic value of options exercised
$
$
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 31, 2026.
The estimated fair values of stock options granted and the assumptions used for the Black-Scholes option-pricing model were as
follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Estimated fair values of stock options granted
$4.79
$9.45
Assumptions:
Risk-free interest rate
4.5%
4.2%
Expected term
8.0 years
8.0 years
Expected volatility
22.6%
22.3%
Dividend yield
6.8%
4.7%
The total grant date fair value of restricted stock unit awards that vested during the period was as follows:
Quarter Ended
In Millions
Aug. 30, 2026
Aug. 24, 2025
Total grant date fair value
$91.6
$98.6