Risk Management and Derivatives (Tables)

3 Months Ended

Aug. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.

	As of August 31, 2014
		Derivative Assets						Derivative Liabilities
(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	$	219	$	59	$	65	$	60	$	5
Embedded derivatives		—		—		—		1		1		—
Interest rate swap contracts		5		—		5		—		—		—
TOTAL		$	283	$	219	$	64	$	66	$	61	$	5

(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 Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted in the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $61 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of August 31, 2014.

	As of May 31, 2014
		Derivative Assets						Derivative Liabilities
(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.

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

	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2014		May 31, 2014		Balance Sheet  Location	August 31, 2014		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	169	$	76	Accrued liabilities	$	53	$	57
Foreign exchange forwards and options	Deferred income taxes and other assets	59		26		Deferred income taxes and other liabilities	5		1
Interest rate swap contracts	Deferred income taxes and other assets	5		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		233		108			58		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	50		25		Accrued liabilities	7		27
Embedded derivatives	Prepaid expenses and other current assets	—		—		Accrued liabilities	1		—
Total derivatives not designated as hedging instruments		50		25			8		27
TOTAL DERIVATIVES		$	283	$	133		$	66	$	85

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

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31,2014 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 August 31,						Location of Gain (Loss) Reclassified From  Accumulated Other Comprehensive Income into Income(1)	Three Months Ended August 31,
	2014			2013				2014			2013
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(38	)	$	(3	)	Revenues	$	(17	)	$	14
Foreign exchange forwards and options	119			(24		)	Cost of sales	(8		)	16
Foreign exchange forwards and options	—			1			Total selling and administrative expense	—			—
Foreign exchange forwards and options	37			(7		)	Other expense (income), net	5			5
Total designated cash flow hedges	$	118		$	(33	)		$	(20	)	$	35

(1) For the three months ended August 31,2014, 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.

	Amount of Gain (Loss) Recognized in Income on Derivatives						Location of Gain (Loss)  Recognized in Income on Derivatives
	Three Months Ended August 31,
(In millions)	2014			2013
Derivatives designated as fair value hedges:
Interest rate swaps(1)	$	1		$	1		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	93		$	(15	)	Other expense (income), net
Embedded derivatives	$	(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.