Fair Value Measurements (Tables)

3 Months Ended

Aug. 31, 2016

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, 2016 and May 31, 2016, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2016
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	779	$	779	$	—	$	—
Level 1:
U.S. Treasury securities	1,045		200		845		—
Level 2:
Time deposits	767		756		11		—
U.S. Agency securities	707		—		707		—
Commercial paper and bonds	671		106		565		—
Money market funds	818		818		—		—
Total Level 2:	2,963		1,680		1,283		—
Level 3:
Non-marketable preferred stock	10		—		—		10
TOTAL	$	4,797	$	2,659	$	2,128	$	10



	As of May 31, 2016
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	774	$	774	$	—	$	—
Level 1:
U.S. Treasury securities	1,265		100		1,165		—
Level 2:
Time deposits	831		827		4		—
U.S. Agency securities	679		—		679		—
Commercial paper and bonds	733		262		471		—
Money market funds	1,175		1,175		—		—
Total Level 2:	3,418		2,264		1,154		—
Level 3:
Non-marketable preferred stock	10		—		—		10
TOTAL	$	5,467	$	3,138	$	2,319	$	10

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, 2016 and May 31, 2016, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2016
	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⁾	$	480	$	389	$	91	$	230	$	199	$	31
Embedded derivatives	7		1		6		9		3		6
Interest rate swaps⁽²⁾	—		—		—		129		129		—
TOTAL	$	487	$	390	$	97	$	368	$	331	$	37

(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 $180 million as of August 31, 2016. As of that date, the Company had posted $23 million of cash collateral to various counterparties related to these foreign exchange derivative instruments. No amount of collateral was received on the Company’s derivative asset balance as of August 31, 2016.


(2)	As of August 31, 2016, the Company had posted $8 million of cash collateral related to its interest rate swaps.



	As of May 31, 2016
	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⁾	$	603	$	487	$	116	$	145	$	115	$	30
Embedded derivatives	7		2		5		9		2		7
Interest rate swaps⁽²⁾	7		7		—		45		45		—
TOTAL	$	617	$	496	$	121	$	199	$	162	$	37

(1)

If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $136 million as of May 31, 2016. As of that date, the Company had received $105 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 May 31, 2016.


(2)	As of May 31, 2016, no amount of cash collateral had been received or posted on the derivative asset or liability balance related to the Company's 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, 2016 and May 31, 2016:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2016		May 31, 2016		Balance Sheet Location	August 31, 2016		May 31, 2016
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	332	$	447	Accrued liabilities	$	77	$	38
Interest rate swaps	Prepaid expenses and other current assets	—		7		Accrued liabilities	129		45
Foreign exchange forwards and options	Deferred income taxes and other assets	76		90		Deferred income taxes and other liabilities	27		12
Total derivatives formally designated as hedging instruments		408		544			233		95
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	57		40		Accrued liabilities	122		76
Embedded derivatives	Prepaid expenses and other current assets	1		2		Accrued liabilities	3		2
Foreign exchange forwards and options	Deferred income taxes and other assets	15		26		Deferred income taxes and other liabilities	4		19
Embedded derivatives	Deferred income taxes and other assets	6		5		Deferred income taxes and other liabilities	6		7
Total derivatives not designated as hedging instruments		79		73			135		104
TOTAL DERIVATIVES		$	487	$	617		$	368	$	199