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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
May 31, 2018
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, 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

 

Granted

 

 

44

 

 

$

47.42

 

Vested and Issued

 

 

(27

)

 

$

39.10

 

Canceled

 

 

(11

)

 

$

41.97

 

Balance, May 31, 2018

 

 

89

 

 

$

42.93

 

 
Summary of Stock Option Activity

 

 

 

Options Outstanding

 

(in millions, except exercise price)

 

Shares Under

Stock Option

 

 

Weighted-Average

Exercise Price

 

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

 

Granted(2)

 

 

77

 

 

$

50.95

 

Exercised

 

 

(78

)

 

$

28.78

 

Canceled

 

 

(7

)

 

$

45.70

 

Balance, May 31, 2018

 

 

304

 

 

$

36.11

 

 

(1)

7 million SOs were granted in total during each of fiscal 2017 and 2016 to our Chief Executive Officers and Chief Technology Officer and have contractual lives of five years versus the ten-year contractual lives for most of the other SOs granted.

(2)

Awards granted in fiscal 2018 included 69 million PSOs granted in total to our Chief Executive Officers, Chief Technology Officer, and President, Product Development, the contractual terms of which are described in greater detail above.

 

 

 

Outstanding

Stock Options

(in millions)

 

 

 

 

Weighted-

Average

Exercise

Price

 

 

 

 

Weighted-

Average

Remaining

Contract Term

(in years)

 

 

 

 

Aggregate

Intrinsic

Value(1)

(in millions)

 

Vested

 

 

201

 

 

 

 

$

30.06

 

 

 

 

 

3.89

 

 

 

 

$

3,344

 

Expected to vest(2)

 

 

60

 

 

 

 

$

45.91

 

 

 

 

 

6.90

 

 

 

 

 

202

 

Total

 

 

261

 

 

 

 

$

33.74

 

 

 

 

 

4.59

 

 

 

 

$

3,546

 

 

(1)

The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of fiscal 2018 of $46.72 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, 2018 was approximately $375 million and is expected to be recognized over a weighted-average period of 3.33 years. Approximately 43 million shares outstanding as of May 31, 2018 were not expected to vest.
Valuation of Stock Options

 

 

Year Ended May 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Expected life (in years)

 

 

4.7

 

 

 

4.8

 

 

 

4.8

 

Risk-free interest rate

 

2.0%

 

 

1.0%

 

 

1.6%

 

Volatility

 

22%

 

 

23%

 

 

24%

 

Dividend yield

 

1.5%

 

 

1.5%

 

 

1.5%

 

Weighted-average fair value per share

 

$

9.34

 

 

$

8.18

 

 

$

8.49

 

 
Stock-Based Compensation Expense

 

 

Year Ended May 31,

 

(in millions)

 

2018

 

 

2017

 

 

2016

 

Cloud services and license support

 

$

82

 

 

$

54

 

 

$

44

 

Hardware

 

 

10

 

 

 

11

 

 

 

12

 

Services

 

 

52

 

 

 

44

 

 

 

29

 

Sales and marketing

 

 

361

 

 

 

306

 

 

 

220

 

Research and development

 

 

921

 

 

 

770

 

 

 

609

 

General and administrative

 

 

180

 

 

 

130

 

 

 

120

 

Acquisition related and other

 

 

1

 

 

 

35

 

 

 

3

 

Total stock-based compensation

 

 

1,607

 

 

 

1,350

 

 

 

1,037

 

Estimated income tax benefit included in provision for income taxes

 

 

(451

)

 

 

(423

)

 

 

(322

)

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

 

$

1,156

 

 

$

927

 

 

$

715