v3.2.0.727
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
May. 31, 2015
Stock-Based Compensation Plans [Abstract]  
Summary of Stock Option Activity

 

 

Options Outstanding

(in millions, except exercise price)

 

Shares Under Option

 

Weighted

Average

Exercise Price

Balance, May 31, 2012

 

422

 

$

22.66

Granted

 

119

 

$

29.90

Assumed

 

9

 

$

32.52

Exercised

 

(83)

 

$

17.38

Canceled

 

(20)

 

$

28.94

Balance, May 31, 2013

 

447

 

$

25.48

Granted

 

131

 

$

31.02

Assumed

 

5

 

$

9.02

Exercised

 

(95)

 

$

21.51

Canceled

 

(26)

 

$

30.60

Balance, May 31, 2014

 

462

 

$

27.37

Granted

 

   34

 

$

40.54

Assumed

 

              3

 

$

21.98

Exercised

 

            (70)

 

$

24.49

Canceled

 

           (16)

 

$

33.76

Balance, May 31, 2015

 

           413

 

$

28.64

 

 

 

 

 

 

 

 

 

Outstanding Options
(in millions)

 

Weighted

 

Weighted Average Remaining Contract Term
(in years)

 

In-the-Money Options as of May 31, 2015
(in millions)

 

Aggregate Intrinsic

Value(1) 
(in millions)

Average

Exercise

Price

Vested

 

223

 

$

25.53

 

5.07

 

222

 

$

4,034

Expected to vest(2)

 

175

 

$

32.17

 

7.77

 

175

 

 

1,986

Total

 

398

 

$

28.45

 

6.26

 

397

 

$

6,020

 

 

 

 

 

 

 

 

 

 

 

 

 

__________

(1)

The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of fiscal 2015 of $43.49 and the exercise prices for all “in-the-money” options outstanding, excluding tax effects.

 

 

(2)

The unrecognized compensation expense calculated under the fair value method for shares expected to vest (unvested shares net of expected forfeitures) as of May 31, 2015 was approximately $804 million and is expected to be recognized over a weighted average period of 2.16 years. Approximately 15 million shares outstanding as of May 31, 2015 were not expected to vest.

 
Summary of Restricted Stock Based Award Activity

 

 

Restricted Stock-Based Awards Outstanding

(in millions, except fair value)

 

Number of Shares

 

Weighted Average

Grant Date

Fair Value

Balance, May 31, 2014

 

1

 

$

35.29

Granted

 

28

 

$

40.73

Canceled

 

  (1)

 

$

39.52

Balance, May 31, 2015

 

28

 

$

40.63

 
Valuation of Stock Options

 

 

Year Ended May 31,

 

 

2015

 

2014

 

2013

Expected life (in years)

 

 

   5.1

 

 

     4.9

 

 

 5.0

Risk-free interest rate

 

 

1.7%

 

 

1.3%

 

 

0.7%

Volatility

 

 

23%

 

 

27%

 

 

31%

Dividend yield

 

 

1.2%

 

 

1.5%

 

 

0.8%

Weighted-average fair value per share

 

$

9.62

 

$

   7.47

 

$

 7.99

 
Stock-Based Compensation Expense

 

 

Year Ended May 31,

(in millions)

 

2015

 

2014

 

2013

Sales and marketing

 

$

180

 

$

165

 

$

137

Cloud software as a service and platform as a service

 

 

10

 

 

8

 

 

10

Cloud infrastructure as a service

 

 

5

 

 

4

 

 

8

Software license updates and product support

 

 

21

 

 

22

 

 

20

Hardware systems products

 

 

6

 

 

5

 

 

3

Hardware systems support

 

 

6

 

 

6

 

 

5

Services

 

 

30

 

 

29

 

 

23

Research and development

 

 

522

 

 

385

 

 

352

General and administrative

 

 

148

 

 

171

 

 

164

Acquisition related and other

 

 

5

 

 

10

 

 

33

Total stock-based compensation

 

 

933

 

 

805

 

 

755

Estimated income tax benefit included in provision for income taxes

 

 

(294)

 

 

(260)

 

 

(243)

Total stock-based compensation, net of estimated income tax benefit

 

$

639

 

$

545

 

$

512