Fair Value Measurements (Tables)

3 Months Ended

Aug. 31, 2015

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



	As of August 31, 2015
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	746	$	746	$	—	$	—
Level 1:
U.S. Treasury securities	1,050		275		775		—
Level 2:
Time deposits	616		616		—		—
U.S. Agency securities	872		15		857		—
Commercial paper and bonds	685		155		530		—
Money market funds	1,439		1,439		—		—
Total Level 2:	3,612		2,225		1,387		—
Level 3:
Non-marketable preferred stock	9		—		—		9
TOTAL	$	5,417	$	3,246	$	2,162	$	9



	As of May 31, 2015
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	615	$	615	$	—	$	—
Level 1:
U.S. Treasury securities	869		225		644		—
Level 2:
Time deposits	684		684		—		—
U.S. Agency securities	976		110		866		—
Commercial paper and bonds	914		352		562		—
Money market funds	1,866		1,866		—		—
Total Level 2:	4,440		3,012		1,428		—
Level 3:
Non-marketable preferred stock	8		—		—		8
TOTAL	$	5,932	$	3,852	$	2,072	$	8

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



	As of August 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⁾	$	1,070	$	771	$	299	$	135	$	116	$	19
Embedded derivatives	8		4		4		12		2		10
Interest rate swaps⁽²⁾	76		76		—		—		—		—
TOTAL	$	1,154	$	851	$	303	$	147	$	118	$	29

(1)

If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $135 million as of August 31, 2015. As of that date, the Company had received $417 million of cash collateral 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 August 31, 2015.


(2)	As of August 31, 2015, the Company had received $51 million of cash collateral related to its interest rate swaps.



	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 on 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.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2015 and May 31, 2015:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2015		May 31, 2015		Balance Sheet Location	August 31, 2015		May 31, 2015
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	662	$	825	Accrued liabilities	$	90	$	140
Interest rate swaps	Prepaid expenses and other current assets	76		78		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	298		520		Deferred income taxes and other liabilities	10		4
Total derivatives formally designated as hedging instruments		1,036		1,423			100		144
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	109		209		Accrued liabilities	26		20
Embedded derivatives	Prepaid expenses and other current assets	4		2		Accrued liabilities	2		2
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—		Deferred income taxes and other liabilities	9		—
Embedded derivatives	Deferred income taxes and other assets	4		5		Deferred income taxes and other liabilities	10		9
Total derivatives not designated as hedging instruments		118		216			47		31
TOTAL DERIVATIVES		$	1,154	$	1,639		$	147	$	175