Risk Management and Derivatives (Tables)

6 Months Ended

Nov. 30, 2016

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, 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 November 30, 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⁾	$	844	$	657	$	187	$	92	$	86	$	6
Embedded derivatives	10		4		6		9		2		7
TOTAL	$	854	$	661	$	193	$	101	$	88	$	13

(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 $92 million as of November 30, 2016. As of that date, the Company had received $369 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 November 30, 2016.



	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 November 30, 2016 and May 31, 2016:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	November 30, 2016		May 31, 2016		Balance Sheet Location	November 30, 2016		May 31, 2016
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	490	$	447	Accrued liabilities	$	26	$	38
Interest rate swaps	Prepaid expenses and other current assets	—		7		Accrued liabilities	—		45
Foreign exchange forwards and options	Deferred income taxes and other assets	165		90		Deferred income taxes and other liabilities	3		12
Total derivatives formally designated as hedging instruments		655		544			29		95
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	167		40		Accrued liabilities	60		76
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	22		26		Deferred income taxes and other liabilities	3		19
Embedded derivatives	Deferred income taxes and other assets	6		5		Deferred income taxes and other liabilities	7		7
Total derivatives not designated as hedging instruments		199		73			72		104
TOTAL DERIVATIVES		$	854	$	617		$	101	$	199

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, 2016 and 2015:



(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,						Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Three Months Ended November 30,
	2016			2015				2016		2015
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(13	)	$	(39	)	Revenues	$	39	$	(29	)
Foreign exchange forwards and options	302			309			Cost of sales	69		125
Foreign exchange forwards and options	2			—			Total selling and administrative expense	—		—
Foreign exchange forwards and options	160			187			Other (income) expense, net	31		39
Interest rate swaps	37			(50		)	Interest expense (income), net	—		—
Total designated cash flow hedges	$	488		$	407			$	139	$	135


(1)	For the three months ended November 30, 2016 and 2015, 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.



(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⁾
	Six Months Ended November 30,						Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Six Months Ended November 30,
	2016			2015				2016		2015
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	40		$	(10	)	Revenues	$	72	$	(75	)
Foreign exchange forwards and options	250			205			Cost of sales	173		298
Foreign exchange forwards and options	2			—			Total selling and administrative expense	—		—
Foreign exchange forwards and options	144			122			Other (income) expense, net	74		100
Interest rate swaps	(54		)	(50		)	Interest expense (income), net	—		—
Total designated cash flow hedges	$	382		$	267			$	319	$	323


(1)	For the six months ended November 30, 2016 and 2015, 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
	Three Months Ended November 30,				Six Months Ended November 30,
(In millions)	2016		2015		2016			2015
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	—	$	1	$	—		$	2	Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	202		63		167			34		Other (income) expense, net
Embedded derivatives	2		—		(1		)	—		Other (income) expense, net


(1)	All interest rate swaps designated as fair value hedges meet the shortcut method requirements under U.S. GAAP. 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.