Stock-Based Compensation (Tables)

9 Months Ended

Feb. 28, 2013

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 selling and administrative expense:


	Three Months Ended				Nine Months Ended
	February 28 and 29,				February 28 and 29,
(In millions)	2013		2012		2013		2012
Stock options⁽¹⁾	$	32	$	26	$	90	$	70
ESPPs		4		4		14		12
Restricted stock		9		4		24		13
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	45	$	34	$	128	$	95

(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 $6 million and $4 million for the three month periods ended February 28, 2013 and February 29, 2012, respectively, and $16 million and $12 million for the nine month periods ended February 28, 2013 and February 29, 2012, respectively.

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

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


	Nine Months Ended
	February 28 and 29,
	2013			2012
Dividend yield		1.5	%		1.4	%
Expected volatility		35.0	%		29.5	%
Weighted average expected life (in years)		5.3			5.0
Risk-free interest rate		0.6	%		1.4	%