INCOME TAXES (Tables)

12 Months Ended

May 31, 2020

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Provision for Income Taxes

	Year Ended May 31,
(in millions)	2020		2019		2018
Domestic	$	3,890	$	3,774	$	3,366
Foreign		8,173		8,494		9,058
Income before provision for income taxes	$	12,063	$	12,268	$	12,424

Components of Provision for Income Taxes

	Year Ended May 31,
(Dollars in millions)	2020			2019			2018
Current provision:
Federal	$	1,616		$	979		$	8,320
State		19			300			264
Foreign		1,144			1,097			1,100
Total current provision	$	2,779		$	2,376		$	9,684
Deferred benefit:
Federal	$	(983	)	$	483		$	(827	)
State		50			(28	)		(26	)
Foreign		82			(1,646	)		6
Total deferred benefit	$	(851	)	$	(1,191	)	$	(847	)
Total provision for income taxes	$	1,928		$	1,185		$	8,837
Effective income tax rate	16.0%			9.7%			71.1%

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

	Year Ended May 31,
(Dollars in millions)	2020			2019			2018
U.S. federal statutory tax rate	21.0%			21.0%			29.2%
Tax provision at statutory rate	$	2,533		$	2,576		$	3,629
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		(496	)		(1,053	)		(1,132	)
State tax expense, net of federal benefit		172			163			121
Settlements and releases from judicial decisions and statute expirations, net		(137	)		(132	)		(252	)
Tax contingency interest accrual, net		163			245			105
Domestic production activity deduction		—			—			(87	)
Federal research and development credit		(151	)		(159	)		(174	)
Stock-based compensation		(166	)		(201	)		(302	)
Other, net		10			135			59
Total provision for income taxes	$	1,928		$	1,185		$	8,837

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2020			2019
Deferred tax assets:
Accruals and allowances	$	469		$	541
Employee compensation and benefits		638			646
Differences in timing of revenue recognition		524			322
Lease liabilities		253			—
Basis of property, plant and equipment and intangible assets		1,115			1,238
Tax credit and net operating loss carryforwards		3,871			3,717
Total deferred tax assets		6,870			6,464
Valuation allowance		(1,359	)		(1,266	)
Total deferred tax assets, net		5,511			5,198
Deferred tax liabilities:
Unrealized gain on stock		(78	)		(78	)
Acquired intangible assets		(561	)		(973	)
GILTI deferred		(1,108	)		(1,515	)
ROU assets		(241	)		—
Withholding taxes on foreign earnings		(171	)		(91	)
Other		(141	)		(109	)
Total deferred tax liabilities		(2,300	)		(2,766	)
Net deferred tax assets	$	3,211		$	2,432
Recorded as:
Non-current deferred tax assets	$	3,252		$	2,696
Non-current deferred tax liabilities (in other non-current liabilities)		(41	)		(264	)
Net deferred tax assets	$	3,211		$	2,432

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2020			2019			2018
Gross unrecognized tax benefits as of June 1	$	6,348		$	5,592		$	4,919
Increases related to tax positions from prior fiscal years		624			772			200
Decreases related to tax positions from prior fiscal years		(298	)		(135	)		(65	)
Increases related to tax positions taken during current fiscal year		628			540			840
Settlements with tax authorities		(177	)		(153	)		(42	)
Lapses of statutes of limitation		(116	)		(202	)		(273	)
Cumulative translation adjustments and other, net		(37	)		(66	)		13
Total gross unrecognized tax benefits as of May 31	$	6,972		$	6,348		$	5,592