STOCK-BASED COMPENSATION (Tables)

Stock-based compensation expense, which is included as part of Cost of products sold and SG&A in the Consolidated Statement of Earnings, and the related tax benefit were as follows:



Years ended June 30	2017		2016		2015
Stock options	$	216	$	199	$	223
RSUs and PSUs	150		143		114
Total stock-based expense ⁽¹⁾	$	366	$	342	$	337

Income tax benefit ⁽¹⁾	$	111	$	85	$	109


⁽¹⁾	Includes amounts related to discontinued operations, which are not material in any period presented.

Assumptions utilized in the model, which are evaluated and revised to reflect market conditions and experience, were as follows:



Years ended June 30	2017				2016				2015
Interest rate	0.8	-	2.6	%	0.7	-	1.9	%	0.1	-	2.1	%
Weighted average interest rate	2.6			%	1.8			%	2.0			%
Dividend yield	3.2			%	3.2			%	3.1			%
Expected volatility	12	-	16	%	15	-	17	%	11	-	15	%
Weighted average volatility	15			%	16			%	15			%
Expected life in years	9.6				8.3				8.3

A summary of options, RSUs and PSUs outstanding under the plans as of June 30, 2017 and activity during the year then ended is presented below:



Options	Options (in thousands)		Weighted Average Exercise Price		Weighted Average Contract-ual Life in Years	Aggregate Intrinsic Value
Outstanding, beginning of year	230,397		$	68.02
Granted	21,425		90.70
Exercised	(44,070	)	59.11
Canceled	(1,267	)	69.76
OUTSTANDING, END OF YEAR	206,485		$	72.46	5.4	$	3,109
EXERCISABLE	140,803		$	66.71	3.9	$	2,878



	RSUs				PSUs
Other stock-based awards	Units (in thousands)		Weighted Average Grant Date Fair Value		Units (in thousands)		Weighted Average Grant Date Fair Value
Non-vested at July 1, 2016	5,274		$	65.53	1,146		$	75.25
Granted	1,730		89.74		623		91.03
Vested	(1,586	)	66.70		(575	)	77.55
Forfeited	(59	)	69.21		—		—
Non-vested at June 30, 2017	5,359		$	74.98	1,194		$	82.40