Stock Compensation Plans (Tables)

12 Months Ended

Aug. 31, 2015

A summary of the equity awards authorized and available for future grants under the Omnibus Plan follows:

Available for future grants at August 31, 2014	48,352,242
Newly authorized options	-
Granted	(8,649,296	)
Cancellation and forfeitures	5,059,061
Plan termination	1,409,063
Available for future grants at August 31, 2015	46,171,070

A summary of the Company’s stock options outstanding under the Omnibus Plan follows:

Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in millions)
Outstanding at August 31, 2014		31,916,824		$	39.28		6.40	$	674
Granted		4,119,972			64.19
Exercised		(10,007,975	)		35.22
Expired/Forfeited		(3,754,248	)		53.72
Outstanding at August 31, 2015		22,274,573			43.52		6.29		959
Vested or expected to vest at August 31, 2015		21,879,917			43.20		6.25		948
Exercisable at August 31, 2015		8,825,638			32.42		4.03		478

Assumptions Used to Determined Fair Value of Each Option Grant Using the Black-Scholes Option Pricing Model

The fair value of each option grant was determined using the Black-Scholes option pricing model with the following weighted-average assumptions used in fiscal 2015, 2014 and 2013:

	2015			2014			2013
Risk-free interest rate⁽¹⁾		1.97	%		1.98	%		1.15	%
Average life of option (years)⁽²⁾		6.6			6.9			7.0
Volatility⁽³⁾		25.58	%		26.27	%		24.94	%
Dividend yield⁽⁴⁾		1.79	%		2.48	%		2.44	%
Weighted-average grant-date fair value	$	14.62		$	12.88		$	6.75

⁽¹⁾	Represents the U.S. Treasury security rates for the expected term of the option.

⁽²⁾	Represents the period of time that options granted are expected to be outstanding. The Company analyzed separate groups of employees with similar exercise behavior to determine the expected term.

⁽³⁾	Volatility was based on historical and implied volatility of the Company’s common stock.

⁽⁴⁾	Represents the Company’s forecasted cash dividend for the expected term.

Summary of Information Relative to the Restricted Stock

A summary of information relative to the Company’s restricted stock units follows:

Outstanding Shares	Shares			Weighted-Average Grant-Date Fair Value
Outstanding at August 31, 2014		3,280,067		$	45.40
Granted		1,157,312			66.26
Dividends		64,796			-
Forfeited		(636,244	)		52.68
Vested		(531,479	)		52.29
Outstanding at August 31, 2015		3,334,452		$	50.85

Summary of Information Relative to the Performance Shares

A summary of information relative to the Company's performance shares follows:

Outstanding Shares	Shares			Weighted-Average Grant-Date Fair Value
Outstanding at August 31, 2014		2,063,132		$	44.85
Granted		483,174			65.31
Performance adjustment⁽¹⁾		(615,445	)		35.30
Forfeited		(444,961	)		55.00
Vested		(40,120	)		44.00
Outstanding at August 31, 2015		1,445,780		$	50.78

⁽¹⁾	Represents the adjustment to previously granted shares based on performance criteria.

Stock-based Compensation Expense

A summary of total stock-based compensation expense follows (in millions):

	2015		2014		2013
Stock options	$	24	$	52	$	51
Restricted stock units		68		48		33
Performance shares		11		8		15
Other		6		6		5
	$	109	$	114	$	104