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Table of Contents
The Compensation Committee of the Board of Directors reviews and approves the organization-wide stock-based award grants to selected
employees, all stock-based award grants to executive officers and any individual grant of stock-based awards in excess of 100,000 stock option
equivalent shares. A separate Plan Committee, which is an executive officer committee, approves individual stock-based award grants of up to
100,000 stock option equivalent shares to non-executive officers and employees. Stock option and restricted stock-based award activity from
June 1, 2012 through May 31, 2015 is summarized as follows (shares in millions):
Our Compensation Committee approves the annual organization-wide stock-based award grants to certain employees. These annual stock-based
award grants are generally made during the ten business day period following the second trading day after the announcement of our fiscal fourth
quarter earnings report.
Recent Accounting Pronouncements
For information with respect to recent accounting pronouncements and the impact of these pronouncements on our consolidated financial
statements, see Note 1 of Notes to Consolidated Financial Statements included elsewhere in this Annual Report.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Cash, Cash Equivalents, Marketable Securities and Interest Income Risk
Our bank deposits and time deposits are generally held with large, diverse financial institutions worldwide with high investment grade credit
ratings or financial institutions that meet investment grade ratings criteria, which we believe mitigates credit risk and certain other risks. In
addition, as of May 31, 2015, substantially all of our marketable securities are high quality with approximately 28% having maturity dates within
one year and 72% having maturity dates within one to six years (see a description of our marketable securities held in Note 3 and Note 4 of
Notes to Consolidated Financial Statements included elsewhere in this Annual Report and
“Liquidity and Capital Resources” above). We hold a
mix of both fixed and floating rate debt securities. Our floating rate debt securities serve to lower the overall risk to our investments portfolio
associated with the risk of rising interest rates. The fair values of our fixed rate debt securities are impacted by interest rate movements and if
interest rates increased by 50 basis points as of May 31, 2015, we estimate the change would decrease the fair
76
Stock options and restricted stock
-
based awards outstanding at May 31, 2012
425
Stock options and restricted stock
-
based awards granted
312
Stock options and restricted stock
-
based awards assumed
20
Stock options exercised and restricted stock
-
based awards vested
(250
)
Forfeitures, cancellations and other, net
(66
)
Stock options and restricted stock
-
based awards outstanding at May 31, 2015
441
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations
89
Weighted average annualized stock repurchases
(274
)
Shares outstanding at May 31, 2015
4,343
Basic weighted average shares outstanding from June 1, 2012 through May 31, 2015
4,567
Stock options and restricted stock
-
based awards outstanding as a percent of shares outstanding at May 31, 2015
10.2%
In the money stock options and total restricted stock-based awards outstanding (based on the closing price of our common stock on
the last trading day of our fiscal period presented) as a percent of shares outstanding at May 31, 2015
10.1%
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations and before stock repurchases, as a percent of weighted average shares outstanding from June 1, 2012 through
May 31, 2015
1.9%
Weighted average annualized stock options and restricted stock-based awards granted and assumed, net of forfeitures and
cancellations and after stock repurchases, as a percent of weighted average shares outstanding from June 1, 2012 through May 31,
2015
-
4.0%