Fair Value Measurements (Tables)

6 Months Ended

Nov. 30, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of November 30, 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 November 30, 2014
(In millions)		Assets at Fair Value		Cash and Cash Equivalents		Short-term Investments		Other Long-term Assets
Cash		$	780	$	780	$	—	$	—
Level 1:
U.S. Treasury securities		873		25		848		—
Level 2:
Time deposits		302		302		—		—
U.S. Agency securities		788		—		788		—
Commercial paper and bonds		854		50		804		—
Money market funds		1,116		1,116		—		—
Total Level 2:		3,060		1,468		1,592		—
Level 3:
Non-marketable preferred stock		6		—		—		6
TOTAL		$	4,719	$	2,273	$	2,440	$	6



	As of May 31, 2014
(In millions)		Assets at Fair Value		Cash and Cash Equivalents		Short-term Investments		Other Long-term Assets
Cash		$	780	$	780	$	—	$	—
Level 1:
U.S. Treasury securities		1,137		151		986		—
Level 2:
Time deposits		227		227		—		—
U.S. Agency securities		1,027		25		1,002		—
Commercial paper and bonds		959		25		934		—
Money market funds		1,012		1,012		—		—
Total Level 2:		3,225		1,289		1,936		—
Level 3:
Non-marketable preferred stock		7		—		—		7
TOTAL		$	5,149	$	2,220	$	2,922	$	7

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 November 30, 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 November 30, 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⁾		$	635	$	465	$	170	$	58	$	55	$	3
Embedded derivatives		1		1		—		—		—		—
Interest rate swap contracts		4		4		—		—		—		—
TOTAL		$	640	$	470	$	170	$	58	$	55	$	3

(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 on the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $58 million. At November 30, 2014, the Company had received from various counterparties $170 million of cash collateral; this amount has been recorded in Cash and equivalents and Accrued liabilities, the latter of which would also net against the Company's derivative asset balance. No amount of collateral was posted on the Company’s derivative liability balance.



	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 on the Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No 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 November 30, 2014 and May 31, 2014:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	November 30, 2014		May 31, 2014		Balance Sheet Location	November 30, 2014		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	382	$	76	Accrued liabilities	$	38	$	57
Interest rate swap contracts	Prepaid expenses and other current assets	4		—		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	170		26		Deferred income taxes and other liabilities	3		1
Interest rate swap contracts	Deferred income taxes and other assets	—		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		556		108			41		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	83		25		Accrued liabilities	17		27
Embedded derivatives	Prepaid expenses and other current assets	1		—		Accrued liabilities	—		—
Total derivatives not designated as hedging instruments		84		25			17		27
TOTAL DERIVATIVES		$	640	$	133		$	58	$	85