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Stock-Based Compensation | 6 Months Ended
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Nov. 30, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Stock-Based Compensation |
NOTE 7 — STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION The NIKE, Inc. Stock Incentive Plan (the “Stock Incentive Plan”) provides for the issuance of up to 798 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards. In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under employee stock purchase plans (ESPPs). Refer to Note 11 — Common Stock and Stock-Based Compensation of the Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for further information. 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 NOVEMBER 30, |  | SIX MONTHS ENDED NOVEMBER 30,
(Dollars in millions) | 2020 | 2019 |  | 2020 | 2019
Stock options(1) | $ | 107 |  | $ | 64 |  |  | $ | 177 |  | $ | 106 |
ESPPs | 17 |  | 11 |  |  | 35 |  | 24 |
Restricted stock | 65 |  | 35 |  |  | 113 |  | 60 |
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 189 |  | $ | 110 |  |  | $ | 325 |  | $ | 190 |
(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 certain employees impacted by the Company's organizational realignment. For more information see Note 14 — Restructuring. The income tax benefit related to stock-based compensation expense was $108 million and $77 million for the three months ended November 30, 2020 and 2019, respectively, and $189 million and $114 million for the six months ended November 30, 2020 and 2019, respectively. STOCK OPTIONS The weighted average fair value per share of the options granted during the six months ended November 30, 2020 and 2019, computed as of the grant date using the Black-Scholes pricing model, was $26.75 and $18.46, respectively. The weighted average assumptions used to estimate these fair values were as follows:
| SIX MONTHS ENDED NOVEMBER 30,
| 2020 | 2019
Dividend yield | 0.9 | % | 1.0 | %
Expected volatility | 27.3 | % | 23.0 | %
Weighted average expected life (in years) | 6.0 | 6.0
Risk-free interest rate | 0.4 | % | 1.5 | %
Expected volatilities are based on the historical volatility of the Company's common stock, the implied volatility in market traded options on the Company's common stock with a term greater than one year, as well as other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options. As of November 30, 2020, the Company had $589 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.7 years. RESTRICTED STOCK AND RESTRICTED STOCK UNITS The weighted average fair value per share of restricted stock and restricted stock units granted for the six months ended November 30, 2020 and 2019, computed as of the grant date, was $109.36 and $84.85, respectively. As of November 30, 2020, the Company had $513 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.9 years.

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