Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2017

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, 2017 and 2016, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of May 31, 2017
	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⁾	$	231	$	216	$	15	$	246	$	166	$	80
Embedded derivatives	10		1		9		8		2		6
Interest rate swaps	—		—		—		—		—		—
TOTAL	$	241	$	217	$	24	$	254	$	168	$	86


(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 $187 million as of May 31, 2017. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments.



	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 in the 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 and liability balances related to its interest rate swap

The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2017 and 2016:



	Asset Derivatives					Liability Derivatives
(In millions)	Balance Sheet Location	2017		2016		Balance Sheet Location	2017		2016
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	113	$	447	Accrued liabilities	$	59	$	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	13		90		Deferred income taxes and other liabilities	73		12
Interest rate swaps	Deferred income taxes and other assets	—		—		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		126		544			132		95
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	103		40		Accrued liabilities	107		76
Embedded derivatives	Prepaid expenses and other current assets	1		2		Accrued liabilities	2		2
Foreign exchange forwards and options	Deferred income taxes and other assets	2		26		Deferred income taxes and other liabilities	7		19
Embedded derivatives	Deferred income taxes and other assets	9		5		Deferred income taxes and other liabilities	6		7
Total derivatives not designated as hedging instruments		115		73			122		104
TOTAL DERIVATIVES		$	241	$	617		$	254	$	199

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2017, 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⁾
	Year Ended May 31,									Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Year Ended May 31,

	2017			2016			2015				2017			2016			2015
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	72		$	90		$	(202	)	Revenues	$	96		$	(88	)	$	(95	)
Foreign exchange forwards and options	43			(57		)	1,109			Cost of sales	339			586			220
Foreign exchange forwards and options	(4		)	—			—			Total selling and administrative expense	—			—			—
Foreign exchange forwards and options	37			(25		)	497			Other (income) expense, net	199			219			136
Interest rate swaps	(54		)	(83		)	76			Interest expense (income), net	(4		)	—			—
Total designated cash flow hedges	94			(75		)	1,480				630			717			261


(1)	For the years ended May 31, 2017, 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
	Year Ended May 31,
(In millions)	2017			2016			2015
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	—		$	2		$	5		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	(44		)	(68		)	611			Other (income) expense, net
Embedded derivatives	$	(2	)	$	(2	)	$	(1	)	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.