XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.21.4

Fair Value Measurements | 6 Months Ended
--- | ---
Nov. 30, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements |
NOTE 4 — FAIR VALUE MEASUREMENTS
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. For additional information about the Company's fair value policies, refer to Note 1 — Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the fiscal year ended May 31, 2021. The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of November 30, 2021 and May 31, 2021, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
| NOVEMBER 30, 2021
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS
Cash | $ | 840 |  | $ | 840 |  | $ | — |
Level 1: |  |  |
U.S. Treasury securities | 3,878 |  | 224 |  | 3,654 |
Level 2: |  |  |
Commercial paper and bonds | 738 |  | 44 |  | 694 |
Money market funds | 8,732 |  | 8,732 |  | — |
Time deposits | 915 |  | 911 |  | 4 |
Total Level 2 | 10,385 |  | 9,687 |  | 698 |
TOTAL | $ | 15,103 |  | $ | 10,751 |  | $ | 4,352 |
| MAY 31, 2021
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS
Cash | $ | 840 |  | $ | 840 |  | $ | — |
Level 1: |  |  |
U.S. Treasury securities | 2,892 |  | — |  | 2,892 |
Level 2: |  |  |
Commercial paper and bonds | 748 |  | 57 |  | 691 |
Money market funds | 7,701 |  | 7,701 |  | — |
Time deposits | 1,293 |  | 1,291 |  | 2 |
U.S. Agency securities | 2 |  | — |  | 2 |
Total Level 2 | 9,744 |  | 9,049 |  | 695 |
TOTAL | $ | 13,476 |  | $ | 9,889 |  | $ | 3,587 |
As of November 30, 2021, the Company held $3,622 million of available-for-sale debt securities with maturity dates within one year and $730 million with maturity dates over one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost. Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $18 million and $6 million for the three months ended November 30, 2021 and 2020, respectively, and $35 million and $13 million for the six months ended November 30, 2021 and 2020, respectively. The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
| NOVEMBER 30, 2021
| DERIVATIVE ASSETS |  | DERIVATIVE LIABILITIES
(Dollars 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) | $ | 546 |  | $ | 444 |  | $ | 102 |  |  | $ | 75 |  | $ | 71 |  | $ | 4 |
Embedded derivatives | 1 |  | 1 |  | — |  |  | 4 |  | 4 |  | — |
TOTAL | $ | 547 |  | $ | 445 |  | $ | 102 |  |  | $ | 79 |  | $ | 75 |  | $ | 4 |
(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 $75 million as of November 30, 2021. As of that date, the Company received $141 million of cash collateral from various counterparties related to the foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of November 30, 2021.
| MAY 31, 2021
| DERIVATIVE ASSETS |  | DERIVATIVE LIABILITIES
(Dollars 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) | $ | 92 |  | $ | 76 |  | $ | 16 |  |  | $ | 456 |  | $ | 415 |  | $ | 41 |
Embedded derivatives | — |  | — |  | — |  |  | 1 |  | 1 |  | — |
TOTAL | $ | 92 |  | $ | 76 |  | $ | 16 |  |  | $ | 457 |  | $ | 416 |  | $ | 41 |
(1)If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $93 million as of May 31, 2021. As of that date, the Company had posted $39 million of cash collateral to various counterparties related to foreign exchange derivative instruments. No amount of collateral was received on the Company's derivative asset balance as of May 31, 2021. For additional information related to the Company's derivative financial instruments and credit risk, refer to Note 8 — Risk Management and Derivatives. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value. FINANCIAL ASSETS AND LIABILITIES NOT RECORDED AT FAIR VALUE The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $10,438 million at November 30, 2021 and $10,275 million at May 31, 2021. The carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration