Retirement Plans (Tables)

12 Months Ended

May 31, 2018

A summary of our retirement plans costs over the past three years is as follows (in millions):

	2018			2017			2016
Defined benefit pension plans	$	150		$	234		$	214
Defined contribution plans		527			480			416
Postretirement healthcare plans		74			76			82
Retirement plans mark-to-market (gain) loss		(10	)		(24	)		1,498
	$	741		$	766		$	2,210

The components of the MTM adjustments are as follows (in millions):

	2018			2017			2016
Discount rate changes	$	(613	)	$	266		$	1,129
Demographic assumption experience		382			450			(916	)
Annuity contract purchase		210			—			—
Actual versus expected return on assets		11			(740	)		1,285
Total mark-to-market (gain) loss	$	(10	)	$	(24	)	$	1,498

Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

	U.S. Pension Plans									International Pension Plans									Postretirement Healthcare Plans
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Discount rate used to determine benefit obligation		4.27	%		4.08	%		4.13	%		2.37	%		2.43	%		2.46	%		4.33	%		4.32	%		4.43	%
Discount rate used to determine net periodic benefit cost		4.08			4.13			4.42			2.43			2.46			2.95			4.32			4.43			4.62
Rate of increase in future compensation levels used to determine benefit obligation		4.43			4.47			4.46			2.26			2.42			2.82			—			—			—
Rate of increase in future compensation levels used to determine net periodic benefit cost		4.47			4.46			4.62			2.42			2.82			3.19			—			—			—
Expected long-term rate of return on assets		6.50			6.50			6.50			3.09			3.18			3.68			—			—			—

Schedule of Plan Assets at Measurement Date

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and most significant international pension plans at the measurement date are presented in the following table (in millions):

	Plan Assets at Measurement Date
	2018
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽¹⁾	Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	714			3	%	0 - 5%	$	19		$	695
Equities							30 - 50
U.S. large cap equity⁽²⁾		2,449			11				840
International equities⁽²⁾		3,506			16				2,681			172
Global equities⁽²⁾		1,772			8
U.S. SMID cap equity		780			4				780
Fixed income securities							50 - 70
Corporate		5,834			26							5,834
Government⁽²⁾		4,872			22							3,345
Mortgage-backed and other⁽²⁾		626			3							125
Alternative investments⁽²⁾		1,573			7		0 - 10							$	209
Other		(69	)		—				(62	)		(7	)
Total U.S. plan assets	$	22,057			100	%		$	4,258		$	10,164		$	209
Asset Class (International Plans)
Cash and cash equivalents	$	24			2	%		$	2		$	22
Equities
International equities⁽²⁾		146			11							70
Global equities⁽²⁾		228			17
Fixed income securities
Corporate⁽²⁾		306			23							68
Government⁽²⁾		452			34				108			256
Mortgage-backed and other⁽²⁾		168			13
Alternative investments		19			2							19
Other		(23	)		(2	)			(6	)		(17	)
Total international plan assets	$	1,320			100	%		$	104		$	418

⁽¹⁾

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

⁽²⁾

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

	Plan Assets at Measurement Date
	2017
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽¹⁾	Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	1,076			4	%	0 - 5%	$	26		$	1,050
Equities							30 - 50
U.S. large cap equity⁽²⁾		2,415			10				830
International equities⁽²⁾		3,521			14				2,747			157
Global equities⁽²⁾		3,276			13
U.S. SMID cap equity		987			4				987
Fixed income securities							50 - 70
Corporate		8,163			33							8,163
Government⁽²⁾		4,674			19							3,454
Mortgage-backed and other⁽²⁾		603			2							129
Alternative investments⁽²⁾		377			2		0 - 5							$	129
Other		(159	)		(1	)			(161	)		2
Total U.S. plan assets	$	24,933			100	%		$	4,429		$	12,955		$	129
Asset Class (International Plans)
Cash and cash equivalents	$	48			4	%		$	2		$	46
Equities
International equities⁽²⁾		137			11							72
Global equities⁽²⁾		202			17
Fixed income securities
Corporate⁽²⁾		270			22							49
Government⁽²⁾		405			34				95			230
Mortgage-backed and other⁽²⁾		145			12
Alternative investments		17			1							17
Other		(18	)		(1	)			(2	)		(16	)
Total international plan assets	$	1,206			100	%		$	95		$	398

⁽¹⁾

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

⁽²⁾

Schedule of Change in Fair Value of Level 3 Assets

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

	U.S. Pension Plans
	2018		2017
Balance at beginning of year	$	129	$	48
Actual return on plan assets:
Assets held during current year		8		5
Assets sold during the year		4		1
Purchases, sales and settlements		68		75
Balance at end of year	$	209	$	129

Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status

The following table provides a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2018 and a statement of the funded status as of May 31, 2018 and 2017 (in millions):

	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2018			2017			2018			2017			2018			2017
Accumulated Benefit Obligation (“ABO”)	$	22,029		$	27,244		$	1,956		$	1,842
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)
PBO/APBO at the beginning of year	$	27,870		$	27,804		$	2,043		$	1,798		$	927		$	905
Service cost		679			638			97			83			36			36
Interest cost		1,115			1,128			49			43			39			39
Actuarial loss		21			571			(34	)		161			(9	)		(14	)
Benefits paid		(854	)		(2,271	)		(46	)		(38	)		(80	)		(72	)
Settlements		(6,178	)		—			(5	)		(7	)		—			—
Purchase accounting adjustment		—			—			—			26			—			—
Other		—			—			63			(23	)		42			33
PBO/APBO at the end of year	$	22,653		$	27,870		$	2,167		$	2,043		$	955		$	927
Change in Plan Assets
Fair value of plan assets at the beginning of year	$	24,933		$	23,017		$	1,379		$	1,254		$	—		$	—
Actual return on plan assets		1,609			2,167			49			112			—			—
Company contributions		2,547			2,020			84			95			42			36
Benefits paid		(854	)		(2,271	)		(46	)		(38	)		(80	)		(72	)
Settlements		(6,178	)		—			(5	)		(7	)		—			—
Other		—			—			48			(37	)		38			36
Fair value of plan assets at the end of year	$	22,057		$	24,933		$	1,509		$	1,379		$	—		$	—
Funded Status of the Plans	$	(596	)	$	(2,937	)	$	(658	)	$	(664	)	$	(955	)	$	(927	)
Amount Recognized in the Balance Sheet at May 31:
Noncurrent asset	$	—		$	—		$	73		$	40		$	—		$	—
Current pension, postretirement healthcare and other benefit obligations		(22	)		(33	)		(16	)		(17	)		(62	)		(39	)
Noncurrent pension, postretirement healthcare and other benefit obligations		(574	)		(2,904	)		(715	)		(687	)		(893	)		(888	)
Net amount recognized	$	(596	)	$	(2,937	)	$	(658	)	$	(664	)	$	(955	)	$	(927	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:
Prior service (credit) cost and other	$	(292	)	$	(410	)	$	(10	)	$	(13	)	$	2		$	(4	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost:
Prior service credit and other	$	(118	)	$	(118	)	$	(2	)	$	(2	)	$	—		$	—

Schedule of Components of Pension Plans

Our pension plans included the following components at May 31 (in millions):

	PBO		Fair Value of Plan Assets		Funded Status
2018
Qualified	$	22,413	$	22,057	$	(356	)
Nonqualified		240		—		(240	)
International Plans		2,167		1,509		(658	)
Total	$	24,820	$	23,566	$	(1,254	)
2017
Qualified	$	27,600	$	24,933	$	(2,667	)
Nonqualified		270		—		(270	)
International Plans		2,043		1,379		(664	)
Total	$	29,913	$	26,312	$	(3,601	)

Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets

The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following table presents our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

	PBO Exceeds the Fair Value of Plan Assets
	2018			2017
U.S. Pension Benefits
Fair value of plan assets	$	22,057		$	24,933
PBO		(22,653	)		(27,870	)
Net funded status	$	(596	)	$	(2,937	)
International Pension Benefits
Fair value of plan assets	$	1,060		$	952
PBO		(1,791	)		(1,656	)
Net funded status	$	(731	)	$	(704	)

	ABO Exceeds the Fair Value of Plan Assets
	2018			2017
U.S. Pension Benefits
ABO⁽¹⁾	$	(1,134	)	$	(27,244	)
Fair value of plan assets		859			24,933
PBO		(1,214	)		(27,870	)
Net funded status	$	(355	)	$	(2,937	)
International Pension Benefits
ABO⁽¹⁾	$	(1,581	)	$	(1,433	)
Fair value of plan assets		1,060			928
PBO		(1,791	)		(1,626	)
Net funded status	$	(731	)	$	(698	)

⁽¹⁾	ABO not used in determination of funded status.

Schedule of Contributions to Pension Plans

Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions):

	2018		2017
Required	$	22	$	459
Voluntary		2,478		1,541
	$	2,500	$	2,000

Schedule of Net Periodic Benefit Cost

Net periodic benefit cost for the three years ended May 31 were as follows (in millions):

	U.S. Pension Plans									International Pension Plans									Postretirement Healthcare Plans
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	679		$	638		$	622		$	97		$	83		$	40		$	36		$	36		$	40
Interest cost		1,115			1,128			1,155			49			43			25			39			39			42
Expected return on plan assets		(1,624	)		(1,501	)		(1,490	)		(46	)		(38	)		(18	)		—			—			—
Amortization of prior service credit		(118	)		(118	)		(118	)		(2	)		(2	)		(3	)		(1	)		—			—
Actuarial losses (gains) and other		37			(95	)		1,563			(38	)		87			(1	)		(9	)		(14	)		(64	)
Net periodic benefit cost	$	89		$	52		$	1,732		$	60		$	173		$	43		$	65		$	61		$	18

Schedule of Amounts Recognized in Other Comprehensive Income for All Plans

Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions):

	2018												2017
	U.S. Pension Plans				International Pension Plans				Postretirement Healthcare Plans				U.S. Pension Plans				International Pension Plans				Postretirement Healthcare Plans
	Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount			Net of Tax Amount
Prior service cost (credit) arising during period	$	—	$	—	$	—	$	—	$	5	$	4	$	—	$	—	$	1	$	1	$	(3	)	$	(2	)
Amortizations:
Prior services credit		118		83		2		1		1		1		118		74		2		2		—			—
Total recognized in OCI	$	118	$	83	$	2	$	1	$	6	$	5	$	118	$	74	$	3	$	3	$	(3	)	$	(2	)

Schedule of Expected Future Benefit Payments

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

	U.S. Pension Plans		International Pension Plans		Postretirement Healthcare Plans
2019	$	680	$	48	$	62
2020		781		48		65
2021		846		54		69
2022		951		71		73
2023		1,071		79		76
2024-2028		7,325		428		369