Common Stock and Stock-Based Compensation (Tables)

12 Months Ended

May 31, 2022

Share-based Payment Arrangement, Noncash Expense [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

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

	YEAR ENDED MAY 31,
(Dollars in millions)	2022		2021		2020
Stock options(1)	$	297	$	323	$	237
ESPPs	60		63		53
Restricted stock and restricted stock units(1)(2)	281		225		139
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	638	$	611	$	429

(1)Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements and was $57 million, $67 million and $53 million for the fiscal years ended May 31, 2022, 2021 and 2020, respectively. During fiscal 2022 and 2021, an immaterial amount of accelerated stock option and restricted stock unit expense was also recorded for certain employees impacted by the Company's organizational realignment. For more information, see Note 21 — Restructuring.

(2)Restricted stock units includes RSUs and PSUs.

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

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

	YEAR ENDED MAY 31,
	2022		2021		2020
Dividend yield	0.8	%	0.9	%	1.0	%
Expected volatility	24.9	%	27.3	%	23.0	%
Weighted average expected life (in years)	5.8		6.0		6.0
Risk-free interest rate	0.9	%	0.4	%	1.5	%

Schedule of Share-based Compensation, Stock Options, Activity

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

	SHARES(1)	WEIGHTED AVERAGE OPTION PRICE
	(In millions)
Options outstanding as of May 31, 2021	78.3	$	72.88
Exercised	(17.1)	54.32
Forfeited	(2.5)	114.89
Granted	9.3	164.91
Options outstanding as of May 31, 2022	68.0	$	88.66

(1)Includes stock appreciation rights transactions.

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following summarizes the restricted stock and restricted stock unit activity under the plan discussed above: 

	SHARES	WEIGHTED AVERAGE GRANT DATE FAIR VALUE
	(In millions)
Nonvested as of May 31, 2021	6.6	$	99.70
Vested	(2.3)	93.70
Forfeited	(0.7)	123.54
Granted(1)	3.1	168.04
Nonvested as of May 31, 2022	6.7	$	130.88

(1)Includes 0.5 million PSUs, which are presented assuming issuance at the original target award amount (100%).