INCOME TAXES (Tables)

12 Months Ended

May 31, 2013

Income Taxes [Abstract]

Geographical Breakdown of Income Before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2013		2012		2011
Domestic	$	6,614	$	6,284	$	6,378
Foreign		7,284		6,678		5,033
Income before provision for income taxes	$	13,898	$	12,962	$	11,411

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2013		2012		2011
Current provision:
Federal	$	1,720	$	1,611	$	1,817
State		254		257		263
Foreign		1,116		1,104		1,037
Total current provision	$	3,090	$	2,972	$	3,117
Deferred (benefit) provision:
Federal	$	(179)	$	267	$	(179)
State		82		14		14
Foreign		(20)		(272)		(88)
Total deferred (benefit) provision	$	(117)	$	9	$	(253)
Total provision for income taxes	$	2,973	$	2,981	$	2,864
Effective income tax rate		21.4%		23.0%		25.1%

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

	Year Ended May 31,
(in millions)	2013		2012		2011
Tax provision at statutory rate	$	4,865	$	4,537	$	3,994
Foreign earnings at other than United States rates		(1,637)		(1,474)		(1,125)
State tax expense, net of federal benefit		299		171		188
Settlements and releases from judicial decisions and statute expirations, net		(144)		(132)		(53)
Domestic production activity deduction		(155)		(178)		(206)
Other, net		(255)		57		66
Total provision for income taxes	$	2,973	$	2,981	$	2,864

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2013		2012
Deferred tax liabilities:
Unrealized gain on stock	$	(130)	$	(130)
Acquired intangible assets		(1,795)		(1,974)
Unremitted earnings		(249)		(322)
Total deferred tax liabilities	$	(2,174)	$	(2,426)
Deferred tax assets:
Accruals and allowances	$	481	$	609
Employee compensation and benefits		997		905
Differences in timing of revenue recognition		158		196
Depreciation and amortization		243		253
Tax credit and net operating loss carryforwards		2,706		2,537
Other		44		50
Total deferred tax assets	$	4,629	$	4,550
Valuation allowance	$	(999)	$	(728)
Net deferred tax assets	$	1,456	$	1,396
Recorded as:
Current deferred tax assets	$	974	$	877
Non-current deferred tax assets		766		595
Current deferred tax liabilities (in other current liabilities)		(111)		(28)
Non-current deferred tax liabilities (in other non-current liabilities)		(173)		(48)
Net deferred tax assets	$	1,456	$	1,396

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2013		2012		2011
Gross unrecognized tax benefits as of June 1	$	3,276	$	3,160	$	2,527
Increases related to tax positions from prior fiscal years		279		99		128
Decreases related to tax positions from prior fiscal years		(125)		(169)		(102)
Increases related to tax positions taken during current fiscal year		312		522		639
Settlements with tax authorities		(71)		(187)		(23)
Lapses of statutes of limitation		(71)		(84)		(53)
Other, net		1		(65)		44
Total gross unrecognized tax benefits as of May 31	$	3,601	$	3,276	$	3,160