Risk Management and Derivatives (Tables)

9 Months Ended

Feb. 28, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair values of derivative instruments included within the consolidated balance sheets as of February 28, 2014 and May 31, 2013:



	Asset Derivatives					Liability Derivatives
(In millions)	Balance Sheet Location	February 28, 2014		May 31, 2013		Balance Sheet Location	February 28, 2014		May 31, 2013
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	79	$	141	Accrued liabilities	$	82	$	12
Foreign exchange forwards and options	Deferred income taxes and other long-term assets	20		79		Deferred income taxes and other long-term liabilities	6		—
Interest rate swap contracts	Deferred income taxes and other long-term assets	7		11		Deferred income taxes and other long-term liabilities	—		—
Total derivatives formally designated as hedging instruments		106		231			88		12
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	21		58		Accrued liabilities	28		22
Embedded derivatives	Prepaid expenses and other current assets	1		—		Accrued liabilities	1		—
Total derivatives not designated as hedging instruments		22		58			29		22
TOTAL DERIVATIVES		$	128	$	289		$	117	$	34

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the consolidated statements of income for the three and nine months ended February 28, 2014 and 2013:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
	Three Months Ended February 28,			Nine Months Ended February 28,			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾	Three Months Ended February 28,			Nine Months Ended February 28,
	2014			2014				2014			2014
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(20	)	$	(39	)	Revenue	$	(1	)	$	20
Foreign exchange forwards and options	(12		)	(100		)	Cost of sales	(5		)	18
Foreign exchange forwards and options	1			4			Selling and administrative expense	—			—
Foreign exchange forwards and options	(5		)	(28		)	Other expense (income), net	(5		)	6
Total designated cash flow hedges	$	(36	)	$	(163	)		$	(11	)	$	44
Derivatives designated as net investment hedges:
Foreign exchange forwards and options	$	—		$	—		Other expense (income), net	$	—		$	—


(1)	For the three and nine months ended February 28, 2014, the amounts recorded in other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
	Three Months Ended February 28,			Nine Months Ended February 28,			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾	Three Months Ended February 28,			Nine Months Ended February 28,
	2013			2013				2013			2013
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	37		$	41		Revenue	$	(3	)	$	(28	)
Foreign exchange forwards and options	60			17			Cost of sales	26			109
Foreign exchange forwards and options	(1		)	(3		)	Selling and administrative expense	1			2
Foreign exchange forwards and options	25			15			Other expense (income), net	(4		)	9
Total designated cash flow hedges	$	121		$	70			$	20		$	92
Derivatives designated as net investment hedges:
Foreign exchange forwards and options	$	—		$	—		Other expense (income), net	$	—		$	—


(1)	For the three and nine months ended February 28, 2013, the amounts recorded in other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



	Amount of Gain (Loss) Recognized in Income on Derivatives											Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended February 28,					Nine Months Ended February 28,
(In millions)	2014			2013		2014			2013
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	1		$	1	$	3		$	4		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(11	)	$	37	$	(50	)	$	(14	)	Other expense (income), net
Embedded derivatives	$	1		$	—	$	—		$	(3	)	Other expense (income), net


(1)	All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.