Common Stock and Stock-Based Compensation (Tables)

12 Months Ended

May 31, 2014

The following table summarizes the Company’s total stock-based compensation expense recognized in Total selling and administrative expense:



	Year Ended May 31,
(In millions)	2014		2013		2012
Stock options⁽¹⁾	$	125	$	123	$	96
ESPPs	22		19		16
Restricted stock	30		32		18
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	177	$	174	$	130


(1)	Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for years ended May 31, 2014, 2013, and 2012 was $15 million, $22 million, and $17 million, respectively.

The weighted average assumptions used to estimate these fair values are as follows:



	Year Ended May 31,
	2014		2013		2012
Dividend yield	1.3	%	1.5	%	1.4	%
Expected volatility	27.9	%	35.0	%	29.5	%
Weighted average expected life (in years)	5.3		5.3		5.0
Risk-free interest rate	1.3	%	0.6	%	1.4	%

The following summarizes the stock option transactions under the plan discussed above:



	Shares ⁽¹⁾		Weighted Average Option Price
	(In millions)
Options outstanding May 31, 2011	69.6		$	25.65
Exercised	(18.0	)	22.81
Forfeited	(1.0	)	35.61
Granted	13.7		45.87
Options outstanding May 31, 2012	64.3		$	30.59
Exercised	(9.9	)	24.70
Forfeited	(1.3	)	40.14
Granted	14.6		46.55
Options outstanding May 31, 2013	67.7		$	34.72
Exercised	(11.0	)	28.29
Forfeited	(1.3	)	48.33
Granted	8.1		63.54
Options outstanding May 31, 2014	63.5		$	39.28
Options exercisable at May 31,
2012	33.9		$	24.38
2013	35.9		27.70
2014	37.0		31.42


(1)	Includes stock appreciation rights transactions.