Risk Management and Derivatives (Tables)

6 Months Ended

Nov. 30, 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 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

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 and six months ended November 30,2014 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 November 30, 2014			Six Months Ended November 30, 2014			Location of Gain (Loss) Reclassified From  Accumulated Other Comprehensive Income into Income(1)	Three Months Ended November 30, 2014			Six Months Ended November 30, 2014
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(4	)	$	(42	)	Revenues	$	(19	)	$	(36	)
Foreign exchange forwards and options	280			399			Cost of sales	21			13
Foreign exchange forwards and options	—			—			Total selling and administrative expense	—			—
Foreign exchange forwards and options	103			140			Other expense (income), net	13			18
Total designated cash flow hedges	$	379		$	497			$	15		$	(5	)

(1) For the three and six months ended November 30,2014, 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 November 30, 2013			Six Months Ended November 30, 2013			Location of Gain (Loss) Reclassified From  Accumulated Other Comprehensive Income into Income(1)	Three Months Ended November 30, 2013		Six Months Ended November 30, 2013
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(16	)	$	(19	)	Revenues	$	7	$	21
Foreign exchange forwards and options	(64		)	(88		)	Cost of sales	7		23
Foreign exchange forwards and options	2			3			Total selling and administrative expense	—		—
Foreign exchange forwards and options	(16		)	(23		)	Other expense (income), net	6		11
Total designated cash flow hedges	$	(94	)	$	(127	)		$	20	$	55

(1) For the three and six months ended November 30,2013, 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 November 30,					Six Months Ended November 30,
(In millions)	2014		2013			2014		2013
Derivatives designated as fair value hedges:
Interest rate swaps(1)	$	1	$	1		$	2	$	2		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	185	$	(24	)	$	278	$	(39	)	Other expense (income), net
Embedded derivatives	$	2	$	(1	)	$	1	$	(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.