Common Stock and Stock-Based Compensation (Tables)

12 Months Ended

May 31, 2012

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:


	Year Ended May 31,
(In millions)	2012	2011		2010
Stock options⁽¹⁾	$96	$	77	$	135
ESPPs	16		14		14
Restricted stock	18		14		10
TOTAL STOCK-BASED COMPENSATION EXPENSE	$130	$	105	$	159

(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. In the first quarter of fiscal 2011, the Company changed the accelerated vesting provisions of its stock option plan. Under the new provisions, accelerated stock option expense for years ended May 31, 2012 and 2011 was $17 million and $12 million, respectively. The accelerated stock option expense for the year ended May 31, 2010 was $74 million.

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

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


	Year Ended May 31,
	2012			2011			2010
Dividend yield		1.4	%		1.6	%		1.9	%
Expected volatility		29.5	%		31.5	%		57.6	%
Weighted average expected life (in years)		5.0			5.0			5.0
Risk-free interest rate		1.4	%		1.7	%		2.5	%

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 May 31, 2009		38.8		$	43.69
Exercised		(8.6	)		37.64
Forfeited		(0.6	)		51.92
Granted		6.4			52.79
Options outstanding May 31, 2010		36.0		$	46.60
Exercised		(7.0	)		42.70
Forfeited		(0.5	)		58.08
Granted		6.3			69.20
Options outstanding May 31, 2011		34.8		$	51.29
Exercised		(9.0	)		45.62
Forfeited		(0.4	)		71.04
Granted		6.8			91.74
Options outstanding May 31, 2012		32.2		$	61.18
Options exercisable at May 31,
2010		20.4			41.16
2011		20.1			44.05
2012		17.0		$	48.75

(1)

Includes stock appreciation rights transactions.