Fair Value Measurements (Tables)

3 Months Ended

Aug. 31, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of August 31, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2014
(In millions)		Assets at Fair Value		Cash and Cash Equivalents		Short-term Investments		Other Long-term Assets
Cash		$	976	$	976	$	—	$	—
Level 1:
U.S. Treasury securities		985		150		835		—
Level 2:
Time deposits		244		244		—		—
U.S. Agency securities		785		48		737		—
Commercial paper and bonds		779		75		704		—
Money market funds		810		810		—		—
Total Level 2:		2,618		1,177		1,441		—
Level 3:
Non-marketable preferred stock		7		—		—		7
TOTAL		$	4,586	$	2,303	$	2,276	$	7



	As of May 31, 2014
(In millions)		Assets at Fair Value		Cash and Cash Equivalents		Short-term Investments		Other Long-term Assets
Cash		$	780	$	780	$	—	$	—
Level 1:
U.S. Treasury securities		1,137		151		986		—
Level 2:
Time deposits		227		227		—		—
U.S. Agency securities		1,027		25		1,002		—
Commercial paper and bonds		959		25		934		—
Money market funds		1,012		1,012		—		—
Total Level 2:		3,225		1,289		1,936		—
Level 3:
Non-marketable preferred stock		7		—		—		7
TOTAL		$	5,149	$	2,220	$	2,922	$	7

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2014
		Derivative Assets						Derivative Liabilities
(In millions)		Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾		$	278	$	219	$	59	$	65	$	60	$	5
Embedded derivatives		—		—		—		1		1		—
Interest rate swap contracts		5		—		5		—		—		—
TOTAL		$	283	$	219	$	64	$	66	$	61	$	5

(1)

The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted in the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $61 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of August 31, 2014.



	As of May 31, 2014
		Derivative Assets						Derivative Liabilities
(In millions)		Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾		$	127	$	101	$	26	$	85	$	84	$	1
Interest rate swap contracts		6		—		6		—		—		—
TOTAL		$	133	$	101	$	32	$	85	$	84	$	1

(1)

The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the Consolidated Balance Sheets. If the derivative financial instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2014 and May 31, 2014:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2014		May 31, 2014		Balance Sheet Location	August 31, 2014		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	169	$	76	Accrued liabilities	$	53	$	57
Foreign exchange forwards and options	Deferred income taxes and other assets	59		26		Deferred income taxes and other liabilities	5		1
Interest rate swap contracts	Deferred income taxes and other assets	5		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		233		108			58		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	50		25		Accrued liabilities	7		27
Embedded derivatives	Prepaid expenses and other current assets	—		—		Accrued liabilities	1		—
Total derivatives not designated as hedging instruments		50		25			8		27
TOTAL DERIVATIVES		$	283	$	133		$	66	$	85