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Risk Management and Derivatives (Tables) | 3 Months Ended
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Aug. 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 August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
|  | As of August 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) |  | $ | 476 |  |  | $ | 347 |  |  | $ | 129 |  |  | $ | 99 |  |  | $ | 99 |  |  | $ | — |
Embedded derivatives |  | 9 |  |  | 3 |  |  | 6 |  |  | 12 |  |  | 3 |  |  | 9 |
TOTAL |  | $ | 485 |  |  | $ | 350 |  |  | $ | 135 |  |  | $ | 111 |  |  | $ | 102 |  |  | $ | 9 |
(1) | If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $99 million as of August 31, 2018. As of that date, the Company had received $31 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of August 31, 2018.
|  | 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 on the Condensed 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.
The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2018 and May 31, 2018. Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.
|  | Derivative Assets |  | Derivative Liabilities
(In millions) |  | Balance Sheet Location |  | August 31, 2018 |  | May 31, 2018 |  | Balance Sheet Location |  | August 31, 2018 |  | May 31, 2018
Derivatives formally designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options |  | Prepaid expenses and other current assets |  | $ | 207 |  |  | $ | 118 |  |  | Accrued liabilities |  | $ | 72 |  |  | $ | 156 |
Foreign exchange forwards and options |  | Deferred income taxes and other assets |  | 128 |  |  | 152 |  |  | Deferred income taxes and other liabilities |  | — |  |  | — |
Total derivatives formally designated as hedging instruments |  |  |  | 335 |  |  | 270 |  |  |  |  | 72 |  |  | 156 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options |  | Prepaid expenses and other current assets |  | 140 |  |  | 119 |  |  | Accrued liabilities |  | 27 |  |  | 26 |
Embedded derivatives |  | Prepaid expenses and other current assets |  | 3 |  |  | 3 |  |  | Accrued liabilities |  | 3 |  |  | 2 |
Foreign exchange forwards and options |  | Deferred income taxes and other assets |  | 1 |  |  | — |  |  | Deferred income taxes and other liabilities |  | — |  |  | — |
Embedded derivatives |  | Deferred income taxes and other assets |  | 6 |  |  | 8 |  |  | Deferred income taxes and other liabilities |  | 9 |  |  | 6 |
Total derivatives not designated as hedging instruments |  |  |  | 150 |  |  | 130 |  |  |  |  | 39 |  |  | 34 |
TOTAL DERIVATIVES |  |  |  | $ | 485 |  |  | $ | 400 |  |  |  |  | $ | 111 |  |  | $ | 190 |
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income | The following tables present the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2018 and 2017:
|  | Three Months Ended August 31, 2018
(In millions) |  | Revenues |  | Cost of Sales |  | Demand Creation Expense |  | Other Expense (Income), Net |  | Interest Expense (Income), Net
Total |  | $ | 9,948 |  |  | $ | 5,551 |  |  | $ | 964 |  |  | $ | 53 |  |  | $ | 11 |
Amount of gain (loss) on cash flow hedge activity |  | 5 |  |  | (44 | ) |  | — |  |  | (9 | ) |  | (2 | )
|  | Three Months Ended August 31, 2017
(In millions) |  | Revenues |  | Cost of Sales |  | Demand Creation Expense |  | Other Expense (Income), Net |  | Interest Expense (Income), Net
Total |  | $ | 9,070 |  |  | $ | 5,108 |  |  | $ | 855 |  |  | $ | 18 |  |  | $ | 16 |
Amount of gain (loss) on cash flow hedge activity |  | 2 |  |  | 45 |  |  | — |  |  | 2 |  |  | (2 | )
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2018 and 2017:
(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)
Three Months Ended August 31, |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Three Months Ended August 31,
2018 |  | 2017 |  |  | 2018 |  | 2017
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | 16 |  |  | $ | 55 |  |  | Revenues |  | $ | 5 |  |  | $ | 2 |
Foreign exchange forwards and options | 101 |  |  | (277 | ) |  | Cost of sales |  | (44 | ) |  | 45 |
Foreign exchange forwards and options | — |  |  | 1 |  |  | Demand creation expense |  | — |  |  | — |
Foreign exchange forwards and options | 26 |  |  | (129 | ) |  | Other expense (income), net |  | (9 | ) |  | 2 |
Interest rate swaps(2) | — |  |  | — |  |  | Interest expense (income), net |  | (2 | ) |  | (2 | )
Total designated cash flow hedges | $ | 143 |  |  | $ | (350 | ) |  |  |  | $ | (50 | ) |  | $ | 47 |
(1) | For the three months ended August 31, 2018 and 2017, 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
|  | Three Months Ended August 31, |
(In millions) |  | 2018 |  | 2017 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Foreign exchange forwards and options |  | $ | 114 |  |  | $ | (194 | ) |  | Other expense (income), net
Embedded derivatives |  | (2 | ) |  | (1 | ) |  | Other expense (income), net

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