Stock-Based Compensation

9 Months Ended

Feb. 24, 2019

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

The Company’s stock-based awards include stock option grants and restricted stock units (“RSUs”). The Company records compensation expense for stock-based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods, generally the vesting period.

The following table summarizes the stock-based compensation for stock options and RSUs (in thousands):



	Three Months Ended				Nine Months Ended
	February 24, 2019		February 25, 2018		February 24, 2019		February 25, 2018
Options	$	245	$	380	$	689	$	1,057
RSUs	571		767		1,793		2,155
Total stock-based compensation	$	816	$	1,147	$	2,482	$	3,212

The following table summarizes the stock-based compensation by income statement line item (in thousands):



	Three Months Ended				Nine Months Ended
	February 24, 2019		February 25, 2018		February 24, 2019		February 25, 2018
Cost of sales	$	116	$	137	$	334	$	398
Research and development	29		41		84		82
Selling, general and administrative	671		969		2,064		2,732
Total stock-based compensation	$	816	$	1,147	$	2,482	$	3,212

The estimated fair value for stock options, which determines the Company’s calculation of stock-based compensation expense, is based on the Black-Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the grant date. The Company uses the straight-line method to recognize the fair value of stock-based compensation arrangements.

As of February 24, 2019, there was $5.0 million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec incentive stock plans. Total expense is expected to be recognized over the weighted-average period of 1.75 years for stock options and 1.96 years for RSUs.