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RISK MANAGEMENT AND DERIVATIVES (Tables) | 9 Months Ended
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Feb. 29, 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:
| FEBRUARY 29, 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) | $ | 390 |  | $ | 324 |  | $ | 66 |  |  | $ | 149 |  | $ | 132 |  | $ | 17 |
Interest rate swap contracts(1) | 2 |  | — |  | 2 |  |  | 4 |  | — |  | 4 |
TOTAL | $ | 392 |  | $ | 324 |  | $ | 68 |  |  | $ | 153 |  | $ | 132 |  | $ | 21 |
(1)If the derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $149 million as of February 29, 2024. As of that date, the Company received $48 million of cash collateral from counterparties related to derivative instruments. No amount of collateral was posted on the derivative liability balance as of February 29, 2024.
| 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 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 received $36 million of cash collateral from counterparties related to derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:
| DERIVATIVE ASSETS
| BALANCE SHEET LOCATION | FEBRUARY 29, |  | MAY 31,
(Dollars in millions) | 2024 |  | 2023
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 312 |  |  | $ | 480 |
Foreign exchange forwards and options | Deferred income taxes and other assets | 66 |  |  | 64 |
Interest rate swap contracts | Deferred income taxes and other assets | 2 |  |  | — |
Total derivatives formally designated as hedging instruments |  | 380 |  |  | 544 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | 12 |  |  | 13 |
Total derivatives not designated as hedging instruments |  | 12 |  |  | 13 |
TOTAL DERIVATIVE ASSETS |  | $ | 392 |  |  | $ | 557 |
| DERIVATIVE LIABILITIES
| BALANCE SHEET LOCATION | FEBRUARY 29, |  | MAY 31,
(Dollars in millions) | 2024 |  | 2023
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | $ | 121 |  |  | $ | 93 |
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 17 |  |  | 52 |
Interest rate swap contracts | Deferred income taxes and other liabilities | 4 |  |  | — |
Total derivatives formally designated as hedging instruments |  | 142 |  |  | 145 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | 11 |  |  | 35 |
Total derivatives not designated as hedging instruments |  | 11 |  |  | 35 |
TOTAL DERIVATIVE LIABILITIES |  | $ | 153 |  |  | $ | 180 |
Schedule of Derivative Instruments, Gain (Loss) In Statement of Income | The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income:
(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)
THREE MONTHS ENDED |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | THREE MONTHS ENDED
FEBRUARY 29, 2024 | FEBRUARY 28, 2023 |  |  | FEBRUARY 29, 2024 | FEBRUARY 28, 2023
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | (32) |  | $ | 30 |  |  | Revenues |  | $ | (10) |  | $ | 14 |
Foreign exchange forwards and options | 135 |  | (141) |  |  | Cost of sales |  | 70 |  | 182 |
Foreign exchange forwards and options | — |  | 1 |  |  | Demand creation expense |  | 1 |  | (1) |
Foreign exchange forwards and options | 49 |  | (65) |  |  | Other (income) expense, net |  | 52 |  | 90 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (2) |  | (2) |
TOTAL DESIGNATED CASH FLOW HEDGES | $ | 152 |  | $ | (175) |  |  |  |  | $ | 111 |  | $ | 283 |
(1)For the three months ended February 29, 2024 and February 28, 2023, 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.
(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)
NINE MONTHS ENDED |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | NINE MONTHS ENDED
FEBRUARY 29, 2024 | FEBRUARY 28, 2023 |  |  | FEBRUARY 29, 2024 | FEBRUARY 28, 2023
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | (55) |  | $ | 52 |  |  | Revenues |  | $ | (7) |  | $ | 9 |
Foreign exchange forwards and options | 154 |  | 245 |  |  | Cost of sales |  | 221 |  | 464 |
Foreign exchange forwards and options | 2 |  | (2) |  |  | Demand creation expense |  | 1 |  | (4) |
Foreign exchange forwards and options | 78 |  | 181 |  |  | Other (income) expense, net |  | 138 |  | 297 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (6) |  | (6) |
TOTAL DESIGNATED CASH FLOW HEDGES | $ | 179 |  | $ | 476 |  |  |  |  | $ | 347 |  | $ | 760 |
(1)For the nine months ended February 29, 2024 and February 28, 2023, 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
| THREE MONTHS ENDED |  | NINE MONTHS ENDED
(Dollars in millions) | FEBRUARY 29, 2024 | FEBRUARY 28, 2023 |  | FEBRUARY 29, 2024 | FEBRUARY 28, 2023
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Foreign exchange forwards and options and embedded derivatives | $ | 9 |  | $ | (26) |  |  | $ | (1) |  | $ | 52 |  | Other (income) expense, net

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