INCOME TAXES (Tables)

12 Months Ended

May 31, 2024

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Income Taxes

	Year Ended May 31,
(in millions)	2024		2023		2022
Domestic	$	3,023	$	1,492	$	(629	)
Foreign		8,718		7,634		8,278
Income before income taxes	$	11,741	$	9,126	$	7,649

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2024			2023			2022
Current provision:
Federal	$	999		$	625		$	709
State		420			398			186
Foreign		1,994			1,767			1,183
Total current provision	$	3,413		$	2,790		$	2,078
Deferred benefit:
Federal	$	(2,020	)	$	(2,193	)	$	(1,661	)
State		(280	)		(398	)		(139	)
Foreign		161			424			654
Total deferred benefit	$	(2,139	)	$	(2,167	)	$	(1,146	)
Total provision for income taxes	$	1,274		$	623		$	932
Effective income tax rate	10.9%			6.8%			12.2%

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

	Year Ended May 31,
(Dollars in millions)	2024			2023			2022
U.S. federal statutory tax rate	21.0%			21.0%			21.0%
Tax provision at statutory rate	$	2,466		$	1,917		$	1,606
Foreign earnings at other than U.S. rates		(262	)		(357	)		(536	)
State tax expense, net of federal benefit		81			41			132
Settlements and releases from judicial decisions and statute expirations, net		(124	)		(552	)		(263	)
Tax contingency interest accrual, net		157			101			44
Domestic tax contingency, net		131			28			441
Federal research and development credit		(372	)		(280	)		(222	)
Stock-based compensation		(624	)		(322	)		(263	)
Realization of a one-time tax attribute		(235	)		—			—
Other, net		56			47			(7	)
Total provision for income taxes	$	1,274		$	623		$	932

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2024			2023
Deferred tax assets:
Accruals and allowances	$	708		$	928
Employee compensation and benefits		929			811
Differences in timing of revenue recognition		781			662
Lease liabilities		1,553			1,036
Basis of property, plant and equipment and intangible assets		9,315			9,989
Capitalized research and development		2,574			1,421
Tax credit and net operating loss carryforwards		5,695			4,941
Other		15			189
Total deferred tax assets		21,570			19,977
Valuation allowance		(1,898	)		(1,940	)
Total deferred tax assets, net		19,672			18,037
Deferred tax liabilities:
Unrealized gain on stock		(79	)		(79	)
Acquired intangible assets		(1,425	)		(2,124	)
GILTI deferred		(7,759	)		(8,124	)
ROU assets		(1,503	)		(1,000	)
Withholding taxes on foreign earnings		(325	)		(256	)
Total deferred tax liabilities		(11,091	)		(11,583	)
Net deferred tax assets	$	8,581		$	6,454
Recorded as:
Non-current deferred tax assets	$	12,273		$	12,226
Non-current deferred tax liabilities		(3,692	)		(5,772	)
Net deferred tax assets	$	8,581		$	6,454

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2024			2023			2022
Gross unrecognized tax benefits as of June 1	$	7,715		$	7,284		$	6,912
Increases related to tax positions from prior fiscal years		492			709			66
Decreases related to tax positions from prior fiscal years		(128	)		(45	)		(24	)
Increases related to tax positions taken during current fiscal year		889			669			919
Settlements with tax authorities		(46	)		(212	)		(117	)
Lapses of statutes of limitation		(129	)		(631	)		(333	)
Cumulative translation adjustments and other, net		(8	)		(59	)		(139	)
Total gross unrecognized tax benefits as of May 31	$	8,785		$	7,715		$	7,284