Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



	As of May 31, 2014
		Asset Derivatives						Liability Derivatives
(In millions)		Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾		$	127	$	101	$	26	$	85	$	84	$	1
Interest rate swap contracts		6		—		6		—		—		—
TOTAL		$	133	$	101	$	32	$	85	$	84	$	1

(1)

The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the Consolidated Balance Sheets. If the derivative financial instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.



	As of May 31, 2013
		Asset Derivatives						Liability Derivatives
(In millions)		Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾		$	278	$	199	$	79	$	34	$	34	$	—
Interest rate swap contracts		11		—		11		—		—		—
TOTAL		$	289	$	199	$	90	$	34	$	34	$	—

(1)

The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the Consolidated Balance Sheets. If the derivative financial instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $34 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2013.

The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2014 and 2013:



	Asset Derivatives					Liability Derivatives
(In millions)	Balance Sheet Location	2014		2013		Balance Sheet Location	2014		2013
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	76	$	141	Accrued liabilities	$	57	$	12
Foreign exchange forwards and options	Deferred income taxes and other assets	26		79		Deferred income taxes and other liabilities	1		—
Interest rate swap contracts	Deferred income taxes and other assets	6		11		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		108		231			58		12
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	25		58		Accrued liabilities	27		22
Total derivatives not designated as hedging instruments		25		58			27		22
TOTAL DERIVATIVES		$	133	$	289		$	85	$	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 years ended May 31, 2014, 2013 and 2012:



(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⁾
	Year Ended May 31,									Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income Into Income⁽¹⁾	Year Ended May 31,
	2014			2013			2012				2014		2013			2012
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(48	)	$	42		$	(29	)	Revenues	$	14	$	(19	)	$	5
Foreign exchange forwards and options	(78		)	67			253			Cost of sales	12		113			(57		)
Foreign exchange forwards and options	4			(3		)	3			Total selling and administrative expense	—		2			(2		)
Foreign exchange forwards and options	(21		)	33			36			Other expense (income), net	10		9			(9		)
Total designated cash flow hedges	$	(143	)	$	139		$	263			$	36	$	105		$	(63	)
Derivatives designated as net investment hedges:
Foreign exchange forwards and options	$	—		$	—		$	45		Other expense (income), net	$	—	$	—		$	—


(1)	For the years ended May 31, 2014, 2013, and 2012, 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
	Year Ended May 31,
(In millions)	2014			2013			2012
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	5		$	5		$	6	Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(75	)	$	51		$	64	Other expense (income), net
Embedded derivatives	$	(1	)	$	(4	)	$	1	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.