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Credit Losses
6 Months Ended
Nov. 30, 2024
Credit Loss [Abstract]  
Credit Losses

NOTE 2: Credit Losses

We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly.

Credit losses were $121 million for the three-month period ended November 30, 2024 and $250 million for the six-month period ended November 30, 2024. Credit losses were $113 million for the three-month period ended November 30, 2023 and $216 million for the six-month period ended November 30, 2023. Our allowance for credit losses was $385 million at November 30, 2024 and $436 million at May 31, 2024.