XML 65 R40.htm IDEA: XBRL DOCUMENT v3.19.2
Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
May 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income
The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)

CASH FLOW HEDGES

NET INVESTMENT HEDGES(1)

OTHER

TOTAL

Balance at May 31, 2018
$
(173
)
$
17

$
115

$
(51
)
$
(92
)
Other comprehensive income (loss):
 
 
 
 
 
Other comprehensive gains (losses) before reclassifications(2)
(173
)
573

—

10

410

Reclassifications to net income of previously deferred (gains) losses(3)
—

(70
)
—

(17
)
(87
)
Total other comprehensive income (loss)
(173
)
503

—

(7
)
323

Balance at May 31, 2019
$
(346
)
$
520

$
115

$
(58
)
$
231

(1)
The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.
(2)
Net of tax benefit (expense) of $0 million, $(4) million, $0 million, $1 million and $(3) million, respectively.
(3)
Net of tax (benefit) expense of $0 million, $6 million, $0 million, $0 million and $6 million, respectively.
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)

CASH FLOW HEDGES

NET INVESTMENT HEDGES(1)

OTHER

TOTAL

Balance at May 31, 2017
$
(191
)
$
(52
)
$
115

$
(85
)
$
(213
)
Other comprehensive income (loss):
 
 
 
 
 
Other comprehensive gains (losses) before reclassifications(2)
(6
)
(52
)
—

2

(56
)
Reclassifications to net income of previously deferred (gains) losses(3)
—

128

—

32

160

Total other comprehensive income (loss)
(6
)
76

—

34

104

Reclassifications to retained earnings in accordance with ASU 2018-02(4)
24

(7
)
—

—

17

Balance at May 31, 2018
$
(173
)
$
17

$
115

$
(51
)
$
(92
)
(1)
The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.
(2)
Net of tax benefit (expense) of $(24) million, $(3) million, $0 million, $(4) million and $(31) million, respectively.
(3)
Net of tax (benefit) expense of $0 million, $(3) million, $0 million, $0 million and $(3) million, respectively.
(4)
Refer to Note 1 — Summary of Significant Accounting Policies for additional information on the adoption of ASU 2018-02 during the third quarter of fiscal 2018.
Reclassification out of Accumulated Other Comprehensive Income
The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income:
 
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
 
YEAR ENDED MAY 31,
(Dollars in millions)
2019
2018
Gains (losses) on cash flow hedges:
 
 
 
Foreign exchange forwards and options
$
(5
)
$
34

Revenues
Foreign exchange forwards and options
53

(90
)
Cost of sales
Foreign exchange forwards and options
—

1

Demand creation expense
Foreign exchange forwards and options
35

(69
)
Other (income) expense, net
Interest rate swaps
(7
)
(7
)
Interest expense (income), net
Total before tax
76

(131
)
 
Tax (expense) benefit
(6
)
3

 
Gain (loss) net of tax
70

(128
)
 
Gains (losses) on other
17

(32
)
Other (income) expense, net
Total before tax
17

(32
)
 
Tax (expense) benefit
—

—

 
Gain (loss) net of tax
17

(32
)
 
Total net gain (loss) reclassified for the period
$
87

$
(160
)