Employees' Stock Incentive Plans and Management Incentive Plans

6 Months Ended

Oct. 26, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employees' Stock Incentive Plans and Management Incentive Plans

Employees’ Stock Incentive Plans and Management Incentive Plans

At October 26, 2011, the Company had outstanding stock option awards, restricted stock units and restricted stock awards issued pursuant to various shareholder-approved plans and a shareholder-authorized employee stock purchase plan, as described on pages 62 to 67 of the Company’s Annual Report on Form 10-K for the fiscal year ended April 27, 2011. The compensation cost related to these plans recognized in SG&A and the related tax benefit were $12.5 million and $4.4 million for the second quarter ended October 26, 2011, and $18.5 million and $6.1 million for the six months endedOctober 26, 2011, respectively. In Fiscal 2011, the compensation cost related to these plans recognized in SG&A and the related tax benefit were $10.7 million and $3.5 million for the second quarter ended October 27, 2010, and $15.9 million and $5.1 million for the six months endedOctober 27, 2010, respectively.

The Company granted 1,649,119 and 1,730,515 option awards to employees during the second quarters ended October 26, 2011 and October 27, 2010, respectively. The weighted average fair value per share of the options granted during the six months endedOctober 26, 2011 and October 27, 2010, as computed using the Black-Scholes pricing model, was $5.80 and $5.36, respectively. The awards granted in the second quarter ended October 26, 2011 were sourced from the Fiscal Year 2003 Stock Incentive Plan. The awards granted in the second quarter ended October 27, 2010 were sourced from the 2000 Stock Option Plan and the Fiscal 2003 Stock Incentive Plan. The weighted average assumptions used to estimate the fair values are as follows:

	Six Months Ended
	October 26, 2011	October 27, 2010
Dividend yield	3.7%	3.9%
Expected volatility	20.9%	20.5%
Weighted-average expected life (in years)	5.0	5.5
Risk-free interest rate	1.0%	1.7%

The Company granted 426,629 and 448,323 restricted stock units to employees during the six months endedOctober 26, 2011 and October 27, 2010 at weighted average grant prices of $52.19 and $46.38, respectively.

In the first quarter of Fiscal 2012, the Company granted performance awards as permitted in the Fiscal Year 2003 Stock Incentive Plan, subject to the achievement of certain performance goals. These performance awards are tied to the Company’s Relative Total Shareholder Return (“Relative TSR”) Ranking within the defined Long-term Performance Program (“LTPP”) peer group and the two-year average after-tax Return on Invested Capital (“ROIC”) metrics. The Relative TSR metric is based on the two-year cumulative return to shareholders from the change in stock price and dividends paid between the starting and ending dates. The starting value was based on the average of each LTPP peer group company stock price for the 60 trading days prior to and including April 27, 2011. The ending value will be based on the average stock price for the 60 trading days prior to and including the close of the Fiscal 2013 year end, plus dividends paid over the two year performance period. The compensation cost related to LTPP awards recognized in SG&A and the related tax benefit was $5.4 million and $2.0 million for the second quarter ended October 26, 2011, and $11.0 million and $3.9 million for the six months endedOctober 26, 2011, respectively. In Fiscal 2011, the compensation cost related to LTPP awards recognized in SG&A and the related tax benefit was $9.8 million and $3.5 million for the second quarter ended October 27, 2010, and $12.6 million and $4.4 million for the six months endedOctober 27, 2010, respectively.