Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2020

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, 2020 and 2019 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.

	MAY 31, 2020
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars 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)	$	94	$	91	$	3	$	205	$	188	$	17
Embedded derivatives	1		1		—		2		2		—
TOTAL	$	95	$	92	$	3	$	207	$	190	$	17

(1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions would have been reduced by $76 million as of May 31, 2020. 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.

	MAY 31, 2019
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars 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)	$	611	$	611	$	—	$	51	$	51	$	—
Embedded derivatives	11		5		6		3		1		2
TOTAL	$	622	$	616	$	6	$	54	$	52	$	2

(1)

If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $50 million as of May 31, 2019. As of that date, the Company had received $289 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2019.

The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2020 and 2019:

	DERIVATIVE ASSETS
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)		2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	43	$	509
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—
Total derivatives formally designated as hedging instruments		44		509
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	48		102
Embedded derivatives	Prepaid expenses and other current assets	1		5
Foreign exchange forwards and options	Deferred income taxes and other assets	2		—
Embedded derivatives	Deferred income taxes and other assets	—		6
Total derivatives not designated as hedging instruments		51		113
TOTAL DERIVATIVE ASSETS		$	95	$	622

	DERIVATIVE LIABILITIES
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)		2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$	173	$	5
Foreign exchange forwards and options	Deferred income taxes and other liabilities	17		—
Total derivatives formally designated as hedging instruments		190		5
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	15		46
Embedded derivatives	Accrued liabilities	2		1
Embedded derivatives	Deferred income taxes and other liabilities	—		2
Total derivatives not designated as hedging instruments		17		49
TOTAL DERIVATIVE LIABILITIES		$	207	$	54

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income

The following table presents the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the fiscal years ended May 31, 2020, 2019 and 2018:

	YEAR ENDED MAY 31,
	2020					2019						2018
(Dollars in millions)	TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL			AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues	$	37,403	$	(17	)	$	39,117		$	(5	)	$	36,397	$	34
Cost of sales	21,162		364			21,643			53			20,441		(90		)
Demand creation expense	3,592		(2		)	3,753			—			3,577		1
Other (income) expense, net	139		181			(78		)	35			66		(69		)
Interest expense (income), net	89		(7		)	49			(7		)	54		(7		)

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, 2020, 2019 and 2018:

(Dollars in millions)	AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1)							AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1)
	YEAR ENDED MAY 31,							LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	YEAR ENDED MAY 31,
	2020		2019		2018				2020			2019			2018
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	28	$	14	$	19		Revenues	$	(17	)	$	(5	)	$	34
Foreign exchange forwards and options	283		405		(50		)	Cost of sales	364			53			(90		)
Foreign exchange forwards and options	1		2		1			Demand creation expense	(2		)	—			1
Foreign exchange forwards and options	90		156		(19		)	Other (income) expense, net	181			35			(69		)
Interest rate swaps(2)	—		—		—			Interest expense (income), net	(7		)	(7		)	(7		)
Total designated cash flow hedges	$	402	$	577	$	(49	)		$	519		$	76		$	(131	)

(1) For the fiscal years ended May 31, 2020, 2019 and 2018, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

(2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt.

	AMOUNT OF GAIN (LOSS) RECOGNIZED  IN INCOME ON DERIVATIVES								LOCATION OF GAIN (LOSS)   RECOGNIZED IN INCOME   ON DERIVATIVES
	YEAR ENDED MAY 31,
(Dollars in millions)	2020			2019		2018
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	76		$	166	$	(57	)	Other (income) expense, net
Embedded derivatives	(1		)	7		(4		)	Other (income) expense, net