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Fair Value Measurements | 12 Months Ended
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May 31, 2018
Fair Value Disclosures [Abstract] |
Fair Value Measurements |
NOTE 6 — Fair Value Measurements
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2018 and 2017, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Refer to Note 1 — Summary of Significant Accounting Policies for additional detail regarding the Company’s fair value measurement methodology.
|  | As of May 31, 2018
(In millions) |  | Assets at Fair Value |  | Cash Equivalents |  | Short-term Investments |  | Other Long-term Assets
Cash |  | $ | 415 |  |  | $ | 415 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | 1,178 |  |  | 500 |  |  | 678 |  |  | — |
Level 2: |  |  |  |  |  |  |  |
Time deposits |  | 925 |  |  | 907 |  |  | 18 |  |  | — |
U.S. Agency securities |  | 102 |  |  | 100 |  |  | 2 |  |  | — |
Commercial paper and bonds |  | 451 |  |  | 153 |  |  | 298 |  |  | — |
Money market funds |  | 2,174 |  |  | 2,174 |  |  | — |  |  | — |
Total level 2 |  | 3,652 |  |  | 3,334 |  |  | 318 |  |  | — |
Level 3: |  |  |  |  |  |  |  |
Non-marketable preferred stock |  | 11 |  |  | — |  |  | — |  |  | 11 |
TOTAL |  | $ | 5,256 |  |  | $ | 4,249 |  |  | $ | 996 |  |  | $ | 11 |
|  | As of May 31, 2017
(In millions) |  | Assets at Fair Value |  | Cash Equivalents |  | Short-term Investments |  | Other Long-term Assets
Cash |  | $ | 505 |  |  | $ | 505 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | 1,545 |  |  | 159 |  |  | 1,386 |  |  | — |
Level 2: |  |  |  |  |  |  |  |
Time deposits |  | 813 |  |  | 769 |  |  | 44 |  |  | — |
U.S. Agency securities |  | 522 |  |  | 150 |  |  | 372 |  |  | — |
Commercial paper and bonds |  | 820 |  |  | 251 |  |  | 569 |  |  | — |
Money market funds |  | 1,974 |  |  | 1,974 |  |  | — |  |  | — |
Total level 2 |  | 4,129 |  |  | 3,144 |  |  | 985 |  |  | — |
Level 3: |  |  |  |  |  |  |  |
Non-marketable preferred stock |  | 10 |  |  | — |  |  | — |  |  | 10 |
TOTAL |  | $ | 6,189 |  |  | $ | 3,808 |  |  | $ | 2,371 |  |  | $ | 10 |
The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Consolidated Balance Sheets. 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. Any amounts of cash collateral received related to these instruments associated with the Company’s credit-related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company’s derivative asset balance (refer to Note 16 — Risk Management and Derivatives). Any amounts of cash collateral posted related to these instruments associated with the Company’s credit-related contingent features are recorded in Prepaid expenses and other current assets, which would further offset against the Company’s derivative liability balance (refer to Note 16 — Risk Management and Derivatives). Cash collateral received or posted related to the Company’s credit related contingent features is presented in the Cash provided by operations component of the Consolidated Statements of Cash Flows. Any amounts of non-cash collateral received, such as securities, are not recorded on the Consolidated Balance Sheets pursuant to U.S. GAAP. The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of May 31, 2018 and 2017, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
|  | As of May 31, 2018
|  | 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) |  | $ | 389 |  |  | $ | 237 |  |  | $ | 152 |  |  | $ | 182 |  |  | $ | 182 |  |  | $ | — |
Embedded derivatives |  | 11 |  |  | 3 |  |  | 8 |  |  | 8 |  |  | 2 |  |  | 6 |
TOTAL |  | $ | 400 |  |  | $ | 240 |  |  | $ | 160 |  |  | $ | 190 |  |  | $ | 184 |  |  | $ | 6 |
(1) | If the foreign exchange derivative instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2018.
|  | As of May 31, 2017
|  | 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) |  | $ | 231 |  |  | $ | 216 |  |  | $ | 15 |  |  | $ | 246 |  |  | $ | 166 |  |  | $ | 80 |
Embedded derivatives |  | 10 |  |  | 1 |  |  | 9 |  |  | 8 |  |  | 2 |  |  | 6 |
TOTAL |  | $ | 241 |  |  | $ | 217 |  |  | $ | 24 |  |  | $ | 254 |  |  | $ | 168 |  |  | $ | 86 |
(1) | If the foreign exchange derivative instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $187 million as of May 31, 2017. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balance related to these foreign exchange derivative instruments.
Available-for-sale securities comprise investments in U.S. Treasury and Agency securities, time deposits, money market funds, corporate commercial paper and bonds. These securities are valued using market prices on both active markets (Level 1) and less active markets (Level 2). As of May 31, 2018, the Company held $960 million of available-for-sale securities with maturity dates within one year and $36 million with maturity dates over one year and less than five years within Short-term investments on the Consolidated Balance Sheets. The gross realized gains and losses on sales of available-for-sale securities were immaterial for the fiscal years ended May 31, 2018 and 2017. Unrealized gains and losses on available-for-sale securities included in Accumulated other comprehensive income were immaterial as of May 31, 2018 and 2017. The Company regularly reviews its available-for-sale securities for other-than-temporary impairment. For the years ended May 31, 2018 and 2017, the Company did not consider its securities to be other-than-temporarily impaired, and accordingly, did not recognize any impairment losses. Included in Interest expense (income), net was interest income related to the Company’s available-for-sale securities of $70 million, $27 million and $12 million for the years ended May 31, 2018, 2017 and 2016, respectively. The Company’s Level 3 assets comprise investments in certain non-marketable preferred stock. These Level 3 investments are an immaterial portion of the Company’s portfolio. Changes in Level 3 investment assets were immaterial during the years ended May 31, 2018 and 2017. No transfers among the levels within the fair value hierarchy occurred during the years ended May 31, 2018 or 2017. For additional information related to the Company’s derivative financial instruments, refer to Note 16 — Risk Management and Derivatives. For fair value information regarding Notes Payable and Long-term debt, refer to Note 7 — Short-Term Borrowings and Credit Lines and Note 8 — Long-Term Debt, respectively. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value. As of May 31, 2018 and 2017, assets or liabilities required to be measured at fair value on a non-recurring basis were immaterial.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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