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Risk Management and Derivatives (Tables) | 9 Months Ended
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Feb. 28, 2019
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 February 28, 2019 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
|  | As of February 28, 2019
|  | 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) |  | $ | 481 |  |  | $ | 414 |  |  | $ | 67 |  |  | $ | 83 |  |  | $ | 83 |  |  | $ | — |
Embedded derivatives |  | 7 |  |  | 1 |  |  | 6 |  |  | 6 |  |  | 4 |  |  | 2 |
TOTAL |  | $ | 488 |  |  | $ | 415 |  |  | $ | 73 |  |  | $ | 89 |  |  | $ | 87 |  |  | $ | 2 |
(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 $82 million as of February 28, 2019. As of that date, the Company had received $137 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 February 28, 2019.
|  | 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 February 28, 2019 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 |  | February 28, 2019 |  | May 31, 2018 |  | Balance Sheet Location |  | February 28, 2019 |  | May 31, 2018
Derivatives formally designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options |  | Prepaid expenses and other current assets |  | $ | 343 |  |  | $ | 118 |  |  | Accrued liabilities |  | $ | 58 |  |  | $ | 156 |
Foreign exchange forwards and options |  | Deferred income taxes and other assets |  | 67 |  |  | 152 |  |  | Deferred income taxes and other liabilities |  | — |  |  | — |
Total derivatives formally designated as hedging instruments |  |  |  | 410 |  |  | 270 |  |  |  |  | 58 |  |  | 156 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options |  | Prepaid expenses and other current assets |  | 71 |  |  | 119 |  |  | Accrued liabilities |  | 25 |  |  | 26 |
Embedded derivatives |  | Prepaid expenses and other current assets |  | 1 |  |  | 3 |  |  | Accrued liabilities |  | 4 |  |  | 2 |
Foreign exchange forwards and options |  | Deferred income taxes and other assets |  | — |  |  | — |  |  | Deferred income taxes and other liabilities |  | — |  |  | — |
Embedded derivatives |  | Deferred income taxes and other assets |  | 6 |  |  | 8 |  |  | Deferred income taxes and other liabilities |  | 2 |  |  | 6 |
Total derivatives not designated as hedging instruments |  |  |  | 78 |  |  | 130 |  |  |  |  | 31 |  |  | 34 |
TOTAL DERIVATIVES |  |  |  | $ | 488 |  |  | $ | 400 |  |  |  |  | $ | 89 |  |  | $ | 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 and nine months ended February 28, 2019 and 2018:
|  | Three Months Ended February 28, 2019 |  | Three Months Ended February 28, 2018
(In millions) |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity
Revenues |  | $ | 9,611 |  |  | $ | 1 |  |  | $ | 8,984 |  |  | $ | 9 |
Cost of sales |  | 5,272 |  |  | 34 |  |  | 5,046 |  |  | (41 | )
Other (income) expense, net |  | (55 | ) |  | 18 |  |  | (1 | ) |  | (15 | )
Interest expense (income), net |  | 12 |  |  | (2 | ) |  | 13 |  |  | (1 | )
|  | Nine Months Ended February 28, 2019 |  | Nine Months Ended February 28, 2018
(In millions) |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity
Revenues |  | $ | 28,933 |  |  | $ | 9 |  |  | $ | 26,608 |  |  | $ | 24 |
Cost of sales |  | 16,092 |  |  | — |  |  | 15,030 |  |  | (17 | )
Other (income) expense, net |  | (50 | ) |  | 9 |  |  | 35 |  |  | (33 | )
Interest expense (income), net |  | 37 |  |  | (5 | ) |  | 42 |  |  | (5 | )
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 and nine months ended February 28, 2019 and 2018:
(In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives(1) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income(1)
Three Months Ended February 28, |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income |  | Three Months Ended February 28,
2019 |  | 2018 |  |  | 2019 |  | 2018
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | (50 | ) |  | $ | 7 |  |  | Revenues |  | $ | 1 |  |  | $ | 9 |
Foreign exchange forwards and options | (1 | ) |  | (118 | ) |  | Cost of sales |  | 34 |  |  | (41 | )
Foreign exchange forwards and options | 2 |  |  | — |  |  | Demand creation expense |  | — |  |  | — |
Foreign exchange forwards and options | 7 |  |  | (47 | ) |  | Other (income) expense, net |  | 18 |  |  | (15 | )
Interest rate swaps(2) | — |  |  | — |  |  | Interest expense (income), net |  | (2 | ) |  | (1 | )
Total designated cash flow hedges | $ | (42 | ) |  | $ | (158 | ) |  |  |  | $ | 51 |  |  | $ | (48 | )
(1) | For the three months ended February 28, 2019 and 2018, the amounts recorded in Other (income) expense, net as a result of 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 (loss), will be released through Interest expense (income), net over the term of the issued debt.
(In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives(1) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income(1)
Nine Months Ended February 28, |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income |  | Nine Months Ended February 28,
2019 |  | 2018 |  |  | 2019 |  | 2018
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | (31 | ) |  | $ | 26 |  |  | Revenues |  | $ | 9 |  |  | $ | 24 |
Foreign exchange forwards and options | 273 |  |  | (382 | ) |  | Cost of sales |  | — |  |  | (17 | )
Foreign exchange forwards and options | 2 |  |  | 1 |  |  | Demand creation expense |  | — |  |  | — |
Foreign exchange forwards and options | 112 |  |  | (169 | ) |  | Other (income) expense, net |  | 9 |  |  | (33 | )
Interest rate swaps(2) | — |  |  | — |  |  | Interest expense (income), net |  | (5 | ) |  | (5 | )
Total designated cash flow hedges | $ | 356 |  |  | $ | (524 | ) |  |  |  | $ | 13 |  |  | $ | (31 | )
(1) | For the nine months ended February 28, 2019 and 2018, the amounts recorded in Other (income) expense, net as a result of 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 (loss), will be released through Interest expense (income), net over the term of the issued debt.
|  | Amount of Gain (Loss) Recognized in Income on Derivatives |  |
|  | Three Months Ended February 28, |  | Nine Months Ended February 28, |  | Location of Gain (Loss) Recognized in Income on Derivatives
(In millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options |  | $ | (59 | ) |  | $ | (101 | ) |  | $ | 129 |  |  | $ | (270 | ) |  | Other (income) expense, net
Embedded derivatives |  | (2 | ) |  | 1 |  |  | 2 |  |  | (3 | ) |  | Other (income) expense, net

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