INCOME TAXES (Tables)

12 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Income Taxes

	Year Ended May 31,
(in millions)	2023		2022			2021
Domestic	$	1,492	$	(629	)	$	4,375
Foreign		7,634		8,278			8,624
Income before income taxes	$	9,126	$	7,649		$	12,999

Components of (Provision for) Benefit from Income Taxes

	Year Ended May 31,
(Dollars in millions)	2023			2022			2021
Current provision:
Federal	$	(625	)	$	(709	)	$	(516	)
State		(398	)		(186	)		(233	)
Foreign		(1,767	)		(1,183	)		(929	)
Total current provision	$	(2,790	)	$	(2,078	)	$	(1,678	)
Deferred benefit:
Federal	$	2,193		$	1,661		$	(8,631	)
State		398			139			77
Foreign		(424	)		(654	)		10,979
Total deferred benefit	$	2,167		$	1,146		$	2,425
Total (provision for) benefit from income taxes	$	(623	)	$	(932	)	$	747
Effective income tax expense (benefit) rate	6.8%			12.2%			(5.7%)

Reconciliation of Differences Between Federal Statutory Tax Rate and Effective Tax Rate

	Year Ended May 31,
(Dollars in millions)	2023			2022			2021
U.S. federal statutory tax rate	21.0%			21.0%			21.0%
Tax provision at statutory rate	$	(1,917	)	$	(1,606	)	$	(2,730	)
Foreign earnings at other than United States rates		357			536			580
Net impact of intra-entity IP transfer		—			—			2,266
State tax expense, net of federal benefit		(41	)		(132	)		(206	)
Settlements and releases from judicial decisions and statute expirations, net		552			263			582
Tax contingency interest accrual, net		(101	)		(44	)		(55	)
Domestic tax contingency, net		(28	)		(441	)		(282	)
Federal research and development credit		280			222			169
Stock-based compensation		322			263			300
Other, net		(47	)		7			123
Total (provision for) benefit from income taxes	$	(623	)	$	(932	)	$	747

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2023			2022
Deferred tax assets:
Accruals and allowances	$	928		$	493
Employee compensation and benefits		811			818
Differences in timing of revenue recognition		662			623
Lease liabilities		1,036			688
Basis of property, plant and equipment and intangible assets		9,989			11,362
Capitalized research and development		1,421			—
Tax credit and net operating loss carryforwards		4,941			4,409
Other		189			141
Total deferred tax assets		19,977			18,534
Valuation allowance		(1,940	)		(1,742	)
Total deferred tax assets, net		18,037			16,792
Deferred tax liabilities:
Unrealized gain on stock		(79	)		(78	)
Acquired intangible assets		(2,124	)		(126	)
GILTI deferred		(8,124	)		(8,937	)
ROU assets		(1,000	)		(668	)
Withholding taxes on foreign earnings		(256	)		(232	)
Total deferred tax liabilities		(11,583	)		(10,041	)
Net deferred tax assets	$	6,454		$	6,751
Recorded as:
Non-current deferred tax assets	$	12,226		$	12,782
Non-current deferred tax liabilities		(5,772	)		(6,031	)
Net deferred tax assets	$	6,454		$	6,751

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2023			2022			2021
Gross unrecognized tax benefits as of June 1	$	7,284		$	6,912		$	6,972
Increases related to tax positions from prior fiscal years		709			66			225
Decreases related to tax positions from prior fiscal years		(45	)		(24	)		(836	)
Increases related to tax positions taken during current fiscal year		669			919			531
Settlements with tax authorities		(212	)		(117	)		(51	)
Lapses of statutes of limitation		(631	)		(333	)		(66	)
Cumulative translation adjustments and other, net		(59	)		(139	)		137
Total gross unrecognized tax benefits as of May 31	$	7,715		$	7,284		$	6,912