Risk Management and Derivatives (Tables)

12 Months Ended

May. 31, 2015

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 May 31, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of May 31, 2015
	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⁾	$	1,554	$	1,034	$	520	$	164	$	160	$	4
Embedded derivatives	7		2		5		11		2		9
Interest rate swaps⁽²⁾	78		78		—		—		—		—
TOTAL	$	1,639	$	1,114	$	525	$	175	$	162	$	13

(1)

If the foreign exchange derivative instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $161 million as of May 31, 2015. As of that date, the Company had received $900 million of cash collateral and $74 million of securities from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2015.


(2)	As of May 31, 2015, the Company had received $68 million of cash collateral related to its interest rate swaps.



	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 swaps	6		—		6		—		—		—
TOTAL	$	133	$	101	$	32	$	85	$	84	$	1


(1)	If the foreign exchange derivative financial instruments had been netted in the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million as of May 31, 2014. 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 Consolidated Balance Sheets as of May 31, 2015 and 2014:



	Asset Derivatives					Liability Derivatives
(In millions)	Balance Sheet Location	2015		2014		Balance Sheet Location	2015		2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	825	$	76	Accrued liabilities	$	140	$	57
Interest rate swaps	Prepaid expenses and other current assets	78		—		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	520		26		Deferred income taxes and other liabilities	4		1
Interest rate swaps	Deferred income taxes and other assets	—		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		1,423		108			144		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	209		25		Accrued liabilities	20		27
Embedded derivatives	Prepaid expenses and other current assets	2		—		Accrued liabilities	2		—
Embedded derivatives	Deferred income taxes and other assets	5		—		Deferred income taxes and other liabilities	9		—
Total derivatives not designated as hedging instruments		216		25			31		27
TOTAL DERIVATIVES		$	1,639	$	133		$	175	$	85

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, 2015, 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⁾
	Year Ended May 31,									Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income Into Income⁽¹⁾	Year Ended May 31,
	2015			2014			2013				2015			2014		2013
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(202	)	$	(48	)	$	42		Revenues	$	(95	)	$	14	$	(19	)
Foreign exchange forwards and options	1,109			(78		)	67			Cost of sales	220			12		113
Foreign exchange forwards and options	—			4			(3		)	Total selling and administrative expense	—			—		2
Foreign exchange forwards and options	497			(21		)	33			Other (income) expense, net	136			10		9
Interest rate swaps	76			—			—			Interest expense (income), net	—			—		—
Total designated cash flow hedges	$	1,480		$	(143	)	$	139			$	261		$	36	$	105
Derivatives designated as net investment hedges:
Foreign exchange forwards and options	$	—		$	—		$	—		Other (income) expense, net	$	—		$	—	$	—


(1)	For the years ended May 31, 2015, 2014 and 2013, the amounts recorded in Other (income) expense, 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)	2015			2014			2013
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	5		$	5		$	5		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	611		$	(75	)	$	51		Other (income) expense, net
Embedded derivatives	$	(1	)	$	(1	)	$	(4	)	Other (income) expense, net


(1)	All interest rate swaps designated as fair value hedges meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps 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.