Income Taxes (Tables)

12 Months Ended

May 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes is as follows:

	Year Ended May 31,
(In millions)	2017		2016		2015
Income before income taxes:
United States	$	1,240	$	956	$	1,967
Foreign	3,646		3,667		2,238
TOTAL INCOME BEFORE INCOME TAXES	$	4,886	$	4,623	$	4,205

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:

	Year Ended May 31,
(In millions)	2017			2016			2015
Current:
United States
Federal	$	398		$	304		$	596
State	82			71			80
Foreign	439			568			369
Total	919			943			1,045
Deferred:
United States
Federal	(279		)	(57		)	(66		)
State	(9		)	(16		)	(11		)
Foreign	15			(7		)	(36		)
Total	(273		)	(80		)	(113		)
TOTAL INCOME TAX EXPENSE	$	646		$	863		$	932

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:

	Year Ended May 31,
	2017		2016		2015
Federal income tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal benefit	1.1	%	1.1	%	0.9	%
Foreign earnings	-20.7	%	-18.2	%	-14.8	%
Resolution of a U.S. tax matter	-3.2	%	—	%	—	%
Other, net	1.0	%	0.8	%	1.1	%
EFFECTIVE INCOME TAX RATE	13.2	%	18.7	%	22.2	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities comprise the following:

	As of May 31,
(In millions)	2017			2016
Deferred tax assets:
Allowance for doubtful accounts	$	4		$	5
Inventories	90			88
Sales return reserves	130			182
Deferred compensation	348			274
Stock-based compensation	225			206
Reserves and accrued liabilities	84			78
Net operating loss carry-forwards	84			44
Foreign tax credit carry-forwards	208			—
Undistributed earnings of foreign subsidiaries	173			179
Other	106			72
Total deferred tax assets	1,452			1,128
Valuation allowance	(82		)	(52		)
Total deferred tax assets after valuation allowance	1,370			1,076
Deferred tax liabilities:
Property, plant and equipment	(254		)	(268		)
Intangibles	(90		)	(92		)
Other	(2		)	(4		)
Total deferred tax liability	(346		)	(364		)
NET DEFERRED TAX ASSET	$	1,024		$	712

Unrecognized Tax Benefits Reconciliation

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits:

	As of May 31,
(In millions)	2017			2016			2015
Unrecognized tax benefits, beginning of the period	$	506		$	438		$	506
Gross increases related to prior period tax positions	31			49			32
Gross decreases related to prior period tax positions	(163		)	(20		)	(123		)
Gross increases related to current period tax positions	115			81			82
Gross decreases related to current period tax positions	—			—			(9		)
Settlements	(12		)	(13		)	(27		)
Lapse of statute of limitations	(21		)	(17		)	(10		)
Changes due to currency translation	5			(12		)	(13		)
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD	$	461		$	506		$	438

Summary of Operating Loss Carryforwards

The Company has available domestic and foreign loss carry-forwards of $266 million at May 31, 2017. Such losses will expire as follows:

	Year Ending May 31,
(In millions)	2018		2019		2020		2021		2022-2035		Indefinite		Total
Net operating losses	$	5	$	1	$	1	$	1	$	62	$	196	$	266