INCOME TAXES (Tables)

12 Months Ended

May 31, 2019

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2019		2018		2017
Domestic	$	3,774	$	3,366	$	3,674
Foreign		8,494		9,058		8,006
Income before provision for income taxes	$	12,268	$	12,424	$	11,680

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2019			2018			2017
Current provision:
Federal	$	979		$	8,320		$	936
State		300			264			257
Foreign		1,097			1,100			1,475
Total current provision	$	2,376		$	9,684		$	2,668
Deferred benefit:
Federal	$	483		$	(827	)	$	(158	)
State		(28	)		(26	)		(29	)
Foreign		(1,646	)		6			(253	)
Total deferred benefit	$	(1,191	)	$	(847	)	$	(440	)
Total provision for income taxes	$	1,185		$	8,837		$	2,228
Effective income tax rate	9.7%			71.1%			19.1%

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

	Year Ended May 31,
(Dollars in millions)	2019			2018			2017
U.S. federal statutory tax rate	21.0%			29.2%			35.0%
Tax provision at statutory rate	$	2,576		$	3,629		$	4,088
Impact of the Tax Act of 2017:
One-time transition tax		(529	)		7,781			—
Deferred tax effects		140			(911	)		—
Foreign earnings at other than United States rates		(789	)		(995	)		(1,312	)
State tax expense, net of federal benefit		197			142			150
Settlements and releases from judicial decisions and statute expirations, net		(132	)		(252	)		(189	)
Domestic production activity deduction		—			(87	)		(119	)
Federal research and development credit		(158	)		(174	)		(127	)
Stock-based compensation		(201	)		(302	)		(149	)
Other, net		81			6			(114	)
Total provision for income taxes	$	1,185		$	8,837		$	2,228

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2019			2018
Deferred tax assets:
Accruals and allowances	$	541		$	567
Employee compensation and benefits		646			664
Differences in timing of revenue recognition		322			338
Basis of property, plant and equipment and intangible assets		1,238			—
Tax credit and net operating loss carryforwards		3,717			2,614
Total deferred tax assets		6,464			4,183
Valuation allowance		(1,266	)		(1,308	)
Total deferred tax assets, net		5,198			2,875
Deferred tax liabilities:
Unrealized gain on stock		(78	)		(78	)
Acquired intangible assets		(973	)		(1,254	)
GILTI deferred		(1,515	)		—
Basis of property, plant and equipment and intangible assets		—			(158	)
Other		(200	)		(48	)
Total deferred tax liabilities		(2,766	)		(1,538	)
Net deferred tax assets	$	2,432		$	1,337
Recorded as:
Non-current deferred tax assets	$	2,696		$	1,395
Non-current deferred tax liabilities (in other non-current liabilities)		(264	)		(58	)
Net deferred tax assets	$	2,432		$	1,337

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2019			2018			2017
Gross unrecognized tax benefits as of June 1	$	5,592		$	4,919		$	4,561
Increases related to tax positions from prior fiscal years		772			200			128
Decreases related to tax positions from prior fiscal years		(135	)		(65	)		(218	)
Increases related to tax positions taken during current fiscal year		540			840			595
Settlements with tax authorities		(153	)		(42	)		(85	)
Lapses of statutes of limitation		(202	)		(273	)		(47	)
Cumulative translation adjustments and other, net		(66	)		13			(15	)
Total gross unrecognized tax benefits as of May 31	$	6,348		$	5,592		$	4,919