Common Stock and Stock-Based Compensation (Tables)

9 Months Ended

Feb. 28, 2018

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)	2018		2017		2018		2017
Stock options⁽¹⁾	$	38	$	35	$	110	$	110
ESPPs	7		7		24		27
Restricted stock	10		9		24		25
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	55	$	51	$	158	$	162

(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 $3 million for the three months ended February 28, 2018 and 2017, respectively, and $14 million and $11 million for the nine months ended February 28, 2018 and 2017, 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,
	2018		2017
Dividend yield	1.2	%	1.1	%
Expected volatility	16.4	%	17.4	%
Weighted average expected life (in years)	6.0		6.0
Risk-free interest rate	2.0	%	1.3	%