Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 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.

The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2018 and 2017:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	2018		2017		Balance Sheet Location	2018		2017
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	118	$	113	Accrued liabilities	$	156	$	59
Foreign exchange forwards and options	Deferred income taxes and other assets	152		13		Deferred income taxes and other liabilities	—		73
Total derivatives formally designated as hedging instruments		270		126			156		132
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	119		103		Accrued liabilities	26		107
Embedded derivatives	Prepaid expenses and other current assets	3		1		Accrued liabilities	2		2
Foreign exchange forwards and options	Deferred income taxes and other assets	—		2		Deferred income taxes and other liabilities	—		7
Embedded derivatives	Deferred income taxes and other assets	8		9		Deferred income taxes and other liabilities	6		6
Total derivatives not designated as hedging instruments		130		115			34		122
TOTAL DERIVATIVES		$	400	$	241		$	190	$	254

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2018, 2017 and 2016:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾									Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income⁽¹⁾
	Year Ended May 31,									Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Year Ended May 31,

	2018			2017			2016				2018			2017			2016
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	19		$	72		$	90		Revenues	$	34		$	96		$	(88	)
Foreign exchange forwards and options	(50		)	43			(57		)	Cost of sales	(90		)	339			586
Foreign exchange forwards and options	1			(4		)	—			Total selling and administrative expense	1			—			—
Foreign exchange forwards and options	(19		)	37			(25		)	Other expense (income), net	(69		)	199			219
Interest rate swaps⁽²⁾	—			(54		)	(83		)	Interest expense (income), net	(7		)	(4		)	—
Total designated cash flow hedges	$	(49	)	$	94		$	(75	)		$	(131	)	$	630		$	717


(1)	For the years ended May 31, 2018, 2017 and 2016, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.


(2)	Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income, will be released through Interest expense (income), net over the term of the issued debt.



	Amount of Gain (Loss) Recognized in Income on Derivatives									Location of Gain (Loss) Recognized in Income on Derivatives
	Year Ended May 31,
(In millions)	2018			2017			2016
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	—		$	—		$	2		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	(57		)	(44		)	(68		)	Other expense (income), net
Embedded derivatives	$	(4	)	$	(2	)	$	(2	)	Other expense (income), net


(1)	All interest rate swaps designated as fair value hedges meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.