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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
May 31, 2017
Employee Benefits And Share Based Compensation [Abstract]  
Summary of Restricted Stock Based Award Activity

 

 

Restricted Stock-Based Awards Outstanding

 

(in millions, except fair value)

 

Number of

Shares

 

 

Weighted-Average

Grant Date Fair Value

 

Balance, May 31, 2014

 

 

1

 

 

$

35.29

 

Granted

 

 

28

 

 

$

40.73

 

Canceled

 

 

(1

)

 

$

39.52

 

Balance, May 31, 2015

 

 

28

 

 

$

40.63

 

Granted

 

 

34

 

 

$

38.50

 

Vested and Issued

 

 

(7

)

 

$

40.39

 

Canceled

 

 

(3

)

 

$

39.73

 

Balance, May 31, 2016

 

 

52

 

 

$

39.29

 

Granted

 

 

42

 

 

$

39.40

 

Assumed

 

 

14

 

 

$

37.83

 

Vested and Issued

 

 

(18

)

 

$

40.39

 

Canceled

 

 

(7

)

 

$

39.73

 

Balance, May 31, 2017

 

 

83

 

 

$

39.18

 

 
Summary of Stock Option Activity

 

 

 

Options Outstanding

 

(in millions, except exercise price)

 

Shares Under

Option

 

 

Weighted-Average

Exercise Price

 

Balance, May 31, 2014

 

 

462

 

 

$

27.37

 

Granted

 

 

34

 

 

$

40.54

 

Assumed

 

 

3

 

 

$

21.98

 

Exercised

 

 

(70

)

 

$

24.49

 

Canceled

 

 

(16

)

 

$

33.76

 

Balance, May 31, 2015

 

 

413

 

 

$

28.64

 

Granted(1)

 

 

25

 

 

$

40.34

 

Assumed

 

 

1

 

 

$

4.97

 

Exercised

 

 

(53

)

 

$

25.13

 

Canceled

 

 

(11

)

 

$

35.19

 

Balance, May 31, 2016

 

 

375

 

 

$

29.66

 

Granted(1)

 

 

18

 

 

$

40.90

 

Assumed

 

 

2

 

 

$

13.06

 

Exercised

 

 

(77

)

 

$

26.65

 

Canceled

 

 

(6

)

 

$

36.28

 

Balance, May 31, 2017

 

 

312

 

 

$

29.02

 

 

(1)

Approximately 7 million of the 18 million stock options granted during fiscal 2017 and 7 million of the 25 million stock options granted during fiscal 2016 were to our Chief Executive Officers and Chief Technology Officer and have contractual lives of five years versus the 10-year contractual lives for most of the other stock options granted.

 

 

 

Outstanding

Options

(in millions)

 

 

 

 

Weighted-

Average

Exercise

Price

 

 

 

 

Weighted-

Average

Remaining

Contract Term

(in years)

 

 

 

 

Aggregate

Intrinsic

Value(1)

(in millions)

 

Vested

 

 

238

 

 

 

 

$

29.02

 

 

 

 

$

4.45

 

 

 

 

$

3,908

 

Expected to vest(2)

 

 

68

 

 

 

 

$

36.92

 

 

 

 

$

6.70

 

 

 

 

 

632

 

Total

 

 

306

 

 

 

 

$

30.79

 

 

 

 

$

4.95

 

 

 

 

$

4,540

 

 

(1)

The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of fiscal 2017 of $45.39 and the exercise prices for all “in-the-money” options outstanding, excluding tax effects.

(2)

The unrecognized compensation expense calculated under the fair value method for shares expected to vest (unvested shares net of expected forfeitures) as of May 31, 2017 was approximately $282 million and is expected to be recognized over a weighted-average period of 2.09 years. Approximately 6 million shares outstanding as of May 31, 2017 were not expected to vest.
Valuation of Stock Options

 

 

Year Ended May 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Expected life (in years)

 

 

4.8

 

 

 

4.8

 

 

 

5.1

 

Risk-free interest rate

 

1.0%

 

 

1.6%

 

 

1.7%

 

Volatility

 

23%

 

 

24%

 

 

23%

 

Dividend yield

 

1.5%

 

 

1.5%

 

 

1.2%

 

Weighted-average fair value per share

 

$

8.18

 

 

$

8.49

 

 

$

9.62

 

 
Stock-Based Compensation Expense

 

 

Year Ended May 31,

 

(in millions)

 

2017

 

 

2016

 

 

2015

 

Cloud SaaS

 

$

23

 

 

$

17

 

 

$

10

 

Cloud PaaS and IaaS

 

 

5

 

 

 

4

 

 

 

5

 

Software license updates and product support

 

 

26

 

 

 

23

 

 

 

21

 

Hardware

 

 

11

 

 

 

12

 

 

 

12

 

Services

 

 

44

 

 

 

29

 

 

 

30

 

Sales and marketing

 

 

306

 

 

 

220

 

 

 

180

 

Research and development

 

 

770

 

 

 

609

 

 

 

522

 

General and administrative

 

 

130

 

 

 

120

 

 

 

148

 

Acquisition related and other

 

 

35

 

 

 

3

 

 

 

5

 

Total stock-based compensation

 

 

1,350

 

 

 

1,037

 

 

 

933

 

Estimated income tax benefit included in provision for income taxes

 

 

(423

)

 

 

(322

)

 

 

(294

)

Total stock-based compensation, net of estimated income tax benefit

 

$

927

 

 

$

715

 

 

$

639