INCOME TAXES (Table)

12 Months Ended

May 31, 2011

Notes to Condensed Consolidated Financial Statements

Geographical Break Down of Income before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2011	2010	2009
Domestic	$6,378	$4,282	$3,745
Foreign	5,033	3,961	4,089
Total income before provision for income taxes	$ 11,411	$8,243	$7,834

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2011	2010	2009
Current provision:
Federal	$1,817	$1,307	$1,341
State	263	299	361
Foreign	1,037	1,013	934
Total current provision	3,117	2,619	2,636
Deferred provision (benefit):
Federal	(179)	(380)	(177)
State	14	(76)	(52)
Foreign	(88)	(55)	(166)
Total deferred benefit	(253)	(511)	(395)
Total provision for income taxes	$2,864	$2,108	$2,241
Effective income tax rate	25.1%	25.6%	28.6%

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

	Year Ended May 31,
(in millions)	2011	2010	2009
Tax provision at statutory rate	$3,994	$2,885	$2,742
Foreign earnings at other than United States rates	(1,125)	(672)	(673)
State tax expense, net of federal benefit	188	161	201
Settlements and releases from judicial decisions and statute expirations, net	(53)	(315)	25
Domestic production activity deduction	(206)	(95)	(82)
Other, net	66	144	28
Total provision for income taxes	$2,864	$2,108	$2,241

Deferred Tax Assets and Liabilities

	May 31,
(in millions)	2011	2010
Deferred tax liabilities:
Unrealized gain on stock	$(130)	$(130)
Acquired intangible assets	(1,816)	(2,128)
Other	(44)	(101)
Total deferred tax liabilities	$(1,990)	$(2,359)
Deferred tax assets:
Accruals and allowances	$543	$629
Employee compensation and benefits	742	649
Differences in timing of revenue recognition	305	67
Depreciation and amortization	483	357
Tax credit and net operating loss carryforwards	2,675	2,916
Other	119	250
Total deferred tax assets	$4,867	$4,868
Valuation allowance	$(772)	$(649)
Net deferred tax assets	$2,105	$1,860
Recorded as:
Current deferred tax assets	$1,189	$1,159
Non-current deferred tax assets	1,076	1,267
Current deferred tax liabilities (in other current liabilities)	(101)	(142)
Non-current deferred tax liabilities	(59)	(424)
Net deferred tax assets	$2,105	$1,860

Unrecognized Tax Benefits

	Year Ended May 31,
(in millions)	2011	2010	2009
Gross unrecognized tax benefits as of June 1	$2,527	$2,262	$1,693
Increases related to tax positions from prior fiscal years	128	94	434
Decreases related to tax positions from prior fiscal years	(102)	(491)	(86)
Increases related to tax positions taken during current fiscal year	639	813	370
Settlements with tax authorities	(23)	(88)	(41)
Lapses of statutes of limitation	(53)	(48)	(25)
Other, net	44	(15)	(83)
Total gross unrecognized tax benefits as of May 31	$3,160	$2,527	$2,262