Common Stock and Stock-Based Compensation (Tables)

9 Months Ended

Feb. 28, 2019

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following table summarizes the Company’s total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable:



	Three Months Ended February 28,				Nine Months Ended February 28,
(In millions)	2019		2018		2019		2018
Stock options⁽¹⁾	$	62	$	38	$	145	$	110
ESPPs	10		7		28		24
Restricted stock	21		10		53		24
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	93	$	55	$	226	$	158

(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 was $13 million and $6 million for the three months ended February 28, 2019 and 2018, respectively, and $28 million and $14 million for the nine months ended February 28, 2019 and 2018, respectively.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

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



	Nine Months Ended February 28,
	2019		2018
Dividend yield	1.0	%	1.2	%
Expected volatility	26.6	%	16.4	%
Weighted average expected life (in years)	6.0		6.0
Risk-free interest rate	2.8	%	2.0	%