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RISK MANAGEMENT AND DERIVATIVES (Tables) | 12 Months Ended
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May 31, 2024
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 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
| MAY 31, 2024
| 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) | $ | 343 |  | $ | 299 |  | $ | 44 |  |  | $ | 120 |  | $ | 115 |  | $ | 5 |
Interest rate swaps(1) | — |  | — |  | — |  |  | 31 |  | — |  | 31 |
TOTAL | $ | 343 |  | $ | 299 |  | $ | 44 |  |  | $ | 151 |  | $ | 115 |  | $ | 36 |
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $142 million as of May 31, 2024. As of that date, the Company received $112 million of cash collateral from various counterparties on the derivative asset balance and posted $10 million cash collateral on the derivative liability balance.
| MAY 31, 2023
| 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) | $ | 557 |  | $ | 493 |  | $ | 64 |  |  | $ | 180 |  | $ | 128 |  | $ | 52 |
(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 $178 million as of May 31, 2023. As of that date, the Company had received $36 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 May 31, 2023. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
| DERIVATIVE ASSETS
| BALANCE SHEET LOCATION | MAY 31,
(Dollars in millions) | 2024 | 2023
Derivatives formally designated as hedging instruments: |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 269 |  | $ | 480 |
Foreign exchange forwards and options | Deferred income taxes and other assets | $ | 44 |  | $ | 64 |
Total derivatives formally designated as hedging instruments |  | 313 |  | 544 |
Derivatives not designated as hedging instruments: |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | 30 |  | 13 |
Total derivatives not designated as hedging instruments |  | 30 |  | 13 |
TOTAL DERIVATIVE ASSETS |  | $ | 343 |  | $ | 557 |
| DERIVATIVE LIABILITIES
| BALANCE SHEET LOCATION | MAY 31,
(Dollars in millions) | 2024 | 2023
Derivatives formally designated as hedging instruments: |  |  |
Foreign exchange forwards and options | Accrued liabilities | $ | 110 |  | $ | 93 |
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 5 |  | 52 |
Interest rate swaps | Deferred income taxes and other liabilities | 31 |  | — |
Total derivatives formally designated as hedging instruments |  | 146 |  | 145 |
Derivatives not designated as hedging instruments: |  |  |
Foreign exchange forwards and options | Accrued liabilities | 5 |  | 35 |
Total derivatives not designated as hedging instruments |  | 5 |  | 35 |
TOTAL DERIVATIVE LIABILITIES |  | $ | 151 |  | $ | 180 |
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, 2024, 2023 and 2022:
(Dollars 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)
YEAR ENDED MAY 31, |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | YEAR ENDED MAY 31,
2024 | 2023 | 2022 |  |  | 2024 | 2023 | 2022
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | (66) |  | $ | 16 |  | $ | (39) |  |  | Revenues |  | $ | (24) |  | $ | 26 |  | $ | (82) |
Foreign exchange forwards and options | 231 |  | 305 |  | 889 |  |  | Cost of sales |  | 294 |  | 581 |  | (23) |
Foreign exchange forwards and options | 3 |  | (1) |  | (6) |  |  | Demand creation expense |  | 2 |  | (5) |  | 1 |
Foreign exchange forwards and options | 102 |  | 207 |  | 492 |  |  | Other (income) expense, net |  | 204 |  | 338 |  | 130 |
Interest rate swaps(2) | — |  | — |  | — |  |  | Interest expense (income), net |  | (8) |  | (8) |  | (7) |
Total designated cash flow hedges | $ | 270 |  | $ | 527 |  | $ | 1,336 |  |  |  |  | $ | 468 |  | $ | 932 |  | $ | 19 |
(1)For the fiscal years ended May 31, 2024, 2023, and 2022, 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 |  | LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
| YEAR ENDED MAY 31, |
(Dollars in millions) | 2024 | 2023 | 2022 |
Derivatives not designated as hedging instruments: |  |  |  |  |
Foreign exchange forwards and options and embedded derivatives | $ | 24 |  | $ | 28 |  | $ | 38 |  |  | Other (income) expense, net

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