INCOME TAXES (Tables)

12 Months Ended

May 31, 2012

Income Taxes [Abstract]

Geographical Breakdown of Income before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2012		2011		2010
Domestic	$	6,284	$	6,378	$	4,282
Foreign		6,678		5,033		3,961
Income before provision for income taxes	$	12,962	$	11,411	$	8,243

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2012		2011		2010
Current provision:
Federal	$	1,611	$	1,817	$	1,307
State		257		263		299
Foreign		1,104		1,037		1,013
Total current provision		2,972		3,117		2,619
Deferred provision (benefit):
Federal		267		(179)		(380)
State		14		14		(76)
Foreign		(272)		(88)		(55)
Total deferred provision (benefit)		9		(253)		(511)
Total provision for income taxes	$	2,981	$	2,864	$	2,108
Effective income tax rate		23.0%		25.1%		25.6%

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

	Year Ended May 31,
(in millions)	2012		2011		2010
Tax provision at statutory rate	$	4,537	$	3,994	$	2,885
Foreign earnings at other than United States rates		(1,474)		(1,125)		(672)
State tax expense, net of federal benefit		171		188		161
Settlements and releases from judicial decisions and statute expirations, net		(132)		(53)		(315)
Domestic production activity deduction		(178)		(206)		(95)
Other, net		57		66		144
Total provision for income taxes	$	2,981	$	2,864	$	2,108

Deferred Tax Assets and Liabilities

	May 31,
(in millions)	2012		2011
Deferred tax liabilities:
Unrealized gain on stock	$	(130)	$	(130)
Acquired intangible assets		(1,974)		(1,816)
Unremitted earnings		(322)		(44)
Total deferred tax liabilities	$	(2,426)	$	(1,990)
Deferred tax assets:
Accruals and allowances	$	609	$	543
Employee compensation and benefits		905		742
Differences in timing of revenue recognition		196		305
Depreciation and amortization		253		483
Tax credit and net operating loss carryforwards		2,537		2,675
Other		50		119
Total deferred tax assets	$	4,550	$	4,867
Valuation allowance	$	(728)	$	(772)
Net deferred tax assets	$	1,396	$	2,105
Recorded as:
Current deferred tax assets	$	877	$	1,189
Non-current deferred tax assets		595		1,076
Current deferred tax liabilities (in other current liabilities)		(28)		(101)
Non-current deferred tax liabilities (in other non-current liabilities)		(48)		(59)
Net deferred tax assets	$	1,396	$	2,105

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2012		2011		2010
Gross unrecognized tax benefits as of June 1	$	3,160	$	2,527	$	2,262
Increases related to tax positions from prior fiscal years		99		128		94
Decreases related to tax positions from prior fiscal years		(169)		(102)		(491)
Increases related to tax positions taken during current fiscal year		522		639		813
Settlements with tax authorities		(187)		(23)		(88)
Lapses of statutes of limitation		(84)		(53)		(48)
Other, net		(65)		44		(15)
Total gross unrecognized tax benefits as of May 31	$	3,276	$	3,160	$	2,527