INCOME TAXES (Tables)

12 Months Ended

May 31, 2021

Income Tax Disclosure [Abstract]

Geographical Breakdown of Income Before Benefit From (Provision for) Income Taxes

	Year Ended May 31,
(in millions)	2021		2020		2019
Domestic	$	4,375	$	3,890	$	3,774
Foreign		8,624		8,173		8,494
Income before benefit from (provision for) income taxes	$	12,999	$	12,063	$	12,268

Components of Benefit from (Provision for) Income Taxes

	Year Ended May 31,
(Dollars in millions)	2021			2020			2019
Current provision:
Federal	$	(516	)	$	(1,616	)	$	(979	)
State		(233	)		(19	)		(300	)
Foreign		(929	)		(1,144	)		(1,097	)
Total current provision	$	(1,678	)	$	(2,779	)	$	(2,376	)
Deferred benefit:
Federal	$	(8,631	)	$	983		$	(483	)
State		77			(50	)		28
Foreign		10,979			(82	)		1,646
Total deferred benefit	$	2,425		$	851		$	1,191
Total benefit from (provision for) income taxes	$	747		$	(1,928	)	$	(1,185	)
Effective income tax (benefit) expense rate	(5.7%)			16.0%			9.7%

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

	Year Ended May 31,
(Dollars in millions)	2021			2020			2019
U.S. federal statutory tax rate	21.0%			21.0%			21.0%
Tax provision at statutory rate	$	(2,730	)	$	(2,533	)	$	(2,576	)
Impact of the Tax Act of 2017:
One-time transition tax		—			—			529
Deferred tax effects		—			—			(140	)
Foreign earnings at other than United States rates		580			496			1,053
Net impact of intra-entity IP transfer		2,266			—			—
State tax expense, net of federal benefit		(206	)		(172	)		(163	)
Settlements and releases from judicial decisions and statute expirations, net		582			137			132
Tax contingency interest accrual, net		(55	)		(163	)		(245	)
Domestic tax contingency, net		(282	)		(58	)		(183	)
Federal research and development credit		169			151			159
Stock-based compensation		300			166			201
Other, net		123			48			48
Total benefit from (provision for) income taxes	$	747		$	(1,928	)	$	(1,185	)

Components of Deferred Tax Liabilities and Assets

	May 31,
(in millions)	2021			2020
Deferred tax assets:
Accruals and allowances	$	452		$	469
Employee compensation and benefits		755			638
Differences in timing of revenue recognition		547			524
Lease liabilities		524			253
Basis of property, plant and equipment and intangible assets		12,161			1,115
Tax credit and net operating loss carryforwards		3,934			3,871
Total deferred tax assets		18,373			6,870
Valuation allowance		(1,526	)		(1,359	)
Total deferred tax assets, net		16,847			5,511
Deferred tax liabilities:
Unrealized gain on stock		(78	)		(78	)
Acquired intangible assets		(266	)		(561	)
GILTI deferred		(9,883	)		(1,108	)
ROU assets		(488	)		(241	)
Withholding taxes on foreign earnings		(195	)		(171	)
Other		(165	)		(141	)
Total deferred tax liabilities		(11,075	)		(2,300	)
Net deferred tax assets	$	5,772		$	3,211
Recorded as:
Non-current deferred tax assets	$	13,636		$	3,252
Non-current deferred tax liabilities		(7,864	)		(41	)
Net deferred tax assets	$	5,772		$	3,211

Gross Unrecognized Tax Benefits, Including Acquisitions

	Year Ended May 31,
(in millions)	2021			2020			2019
Gross unrecognized tax benefits as of June 1	$	6,972		$	6,348		$	5,592
Increases related to tax positions from prior fiscal years		225			624			772
Decreases related to tax positions from prior fiscal years		(836	)		(298	)		(135	)
Increases related to tax positions taken during current fiscal year		531			628			540
Settlements with tax authorities		(51	)		(177	)		(153	)
Lapses of statutes of limitation		(66	)		(116	)		(202	)
Cumulative translation adjustments and other, net		137			(37	)		(66	)
Total gross unrecognized tax benefits as of May 31	$	6,912		$	6,972		$	6,348