Income Taxes (Tables)

12 Months Ended

May 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes is as follows:

	Year Ended May 31,
(In millions)	2013		2012		2011
Income before income taxes:
United States	$	1,240	$	804	$	1,040
Foreign	2,032		2,221		1,822
TOTAL INCOME BEFORE INCOME TAXES	$	3,272	$	3,025	$	2,862

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:

	Year Ended May 31,
(In millions)	2013			2012			2011
Current:
United States
Federal	$	434		$	289		$	298
State	69			51			57
Foreign	398			488			435
Total	901			828			790
Deferred:
United States
Federal	1			(48		)	(62		)
State	(4		)	5			—
Foreign	(90		)	(29		)	(38		)
Total	(93		)	(72		)	(100		)
TOTAL INCOME TAX EXPENSE	$	808		$	756		$	690

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:

	Year Ended May 31,
	2013		2012		2011
Federal income tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	1.4	%	1.3	%	1.3	%
Foreign earnings	-11.8	%	-11.9	%	-11.4	%
Other, net	0.1	%	0.6	%	-0.8	%
EFFECTIVE INCOME TAX RATE	24.7	%	25.0	%	24.1	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and (liabilities) comprise the following:

	As of May 31,
(In millions)	2013			2012
Deferred tax assets:
Allowance for doubtful accounts	$	20		$	17
Inventories	40			37
Sales return reserves	101			84
Deferred compensation	197			186
Stock-based compensation	140			126
Reserves and accrued liabilities	66			66
Foreign loss carry-forwards	19			35
Foreign tax credit carry-forwards	106			216
Undistributed earnings of foreign subsidiaries	162			82
Other	47			62
Total deferred tax assets	898			911
Valuation allowance	(5		)	(27		)
Total deferred tax assets after valuation allowance	893			884
Deferred tax liabilities:
Property, plant and equipment	(241		)	(191		)
Intangibles	(96		)	(98		)
Other	(20		)	(22		)
Total deferred tax liability	(357		)	(311		)
NET DEFERRED TAX ASSET	$	536		$	573

Unrecognized Tax Benefits Reconciliation

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits:

	As of May 31,
(In millions)	2013			2012			2011
Unrecognized tax benefits, as of the beginning of the period	$	285		$	212		$	282
Gross increases related to prior period tax positions	77			48			13
Gross decreases related to prior period tax positions	(3		)	(25		)	(98		)
Gross increases related to current period tax positions	130			91			59
Gross decreases related to current period tax positions	(9		)	(1		)	(6		)
Settlements	—			(20		)	(43		)
Lapse of statute of limitations	(21		)	(9		)	(8		)
Changes due to currency translation	(12		)	(11		)	13
UNRECOGNIZED TAX BENEFITS, AS OF THE END OF THE PERIOD	$	447		$	285		$	212

Summary of Operating Loss Carryforwards

The Company has available domestic and foreign loss carry-forwards of $58 million at May 31, 2013. Such losses will expire as follows:

	Year Ending May 31,
(In millions)	2014		2015	2016	2017	2018- 2032	Indefinite	Total
Net Operating Losses	$	—	—	2	—	52	4	$	58