INCOME TAXES (Tables)

12 Months Ended

May 31, 2018

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2018		2017		2016
Domestic	$	3,816	$	3,533	$	4,033
Foreign		9,075		7,984		7,409
Income before provision for income taxes	$	12,891	$	11,517	$	11,442

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2018			2017			2016
Current provision:
Federal	$	8,329		$	936		$	1,301
State		264			257			271
Foreign		1,084			1,475			1,074
Total current provision	$	9,677		$	2,668		$	2,646
Deferred benefit:
Federal	$	(614	)	$	(201	)	$	(123	)
State		(13	)		(36	)		(21	)
Foreign		16			(249	)		39
Total deferred benefit	$	(611	)	$	(486	)	$	(105	)
Total provision for income taxes	$	9,066		$	2,182		$	2,541
Effective income tax rate	70.3%			18.9%			22.2%

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

	Year Ended May 31,
(in millions)	2018			2017			2016
U.S. federal statutory tax rate		29.2	%		35.0	%		35.0	%
Tax provision at statutory rate	$	3,765		$	4,031		$	4,005
Impact of the Tax Act of 2017
One-time transition tax		7,781			—			—
Deferred tax effects		(820	)		—			—
Foreign earnings at other than United States rates		(1,006	)		(1,299	)		(1,284	)
State tax expense, net of federal benefit		155			150			176
Settlements and releases from judicial decisions and statute expirations, net		(252	)		(189	)		(150	)
Domestic production activity deduction		(87	)		(119	)		(155	)
Stock-based compensation		(302	)		(149	)		74
Other, net		(168	)		(243	)		(125	)
Total provision for income taxes	$	9,066		$	2,182		$	2,541

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2018			2017
Deferred tax liabilities:
Unrealized gain on stock	$	(78	)	$	(130	)
Acquired intangible assets		(1,254	)		(2,502	)
Unremitted earnings		—			(1,515	)
Depreciation and amortization		(158	)		(180	)
Other		(48	)		(23	)
Total deferred tax liabilities	$	(1,538	)	$	(4,350	)
Deferred tax assets:
Accruals and allowances	$	567		$	532
Employee compensation and benefits		789			1,251
Differences in timing of revenue recognition		310			385
Tax credit and net operating loss carryforwards		2,614			4,029
Total deferred tax assets	$	4,280		$	6,197
Valuation allowance		(1,308	)		(1,164	)
Net deferred tax assets	$	1,434		$	683
Recorded as:
Non-current deferred tax assets	$	1,491		$	1,143
Non-current deferred tax liabilities (in other non-current liabilities)		(57	)		(460	)
Net deferred tax assets	$	1,434		$	683

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2018			2017			2016
Gross unrecognized tax benefits as of June 1	$	4,919		$	4,561		$	4,038
Increases related to tax positions from prior fiscal years		200			128			350
Decreases related to tax positions from prior fiscal years		(65	)		(218	)		(111	)
Increases related to tax positions taken during current fiscal year		833			595			461
Settlements with tax authorities		(42	)		(85	)		(73	)
Lapses of statutes of limitation		(273	)		(47	)		(73	)
Cumulative translation adjustments and other, net		13			(15	)		(31	)
Total gross unrecognized tax benefits as of May 31	$	5,585		$	4,919		$	4,561