Accumulated Other Comprehensive Income (Loss)

12 Months Ended

May 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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, 2020	$	(494)	$	390	$	115	$	(67)	$	(56)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	499		(788)		—		(8)		(297)
Reclassifications to net income of previously deferred (gains) losses(3)	(3)		(37)		—		13		(27)
Total other comprehensive income (loss)	496		(825)		—		5		(324)
Balance at May 31, 2021	$	2	$	(435)	$	115	$	(62)	$	(380)

(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, $(6) million, $0 million, $(1) million and $(7) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $8 million, $0 million, $0 million and $8 million, respectively.

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at May 31, 2019	$	(346)	$	520	$	115	$	(58)	$	231
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(149)		387		—		(8)		230
Reclassifications to net income of previously deferred (gains) losses(3)	1		(517)		—		(1)		(517)
Total other comprehensive income (loss)	(148)		(130)		—		(9)		(287)
Balance at May 31, 2020	$	(494)	$	390	$	115	$	(67)	$	(56)

(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, $(15) million, $0 million, $1 million and $(14) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $2 million, $0 million, $0 million and $2 million, respectively.

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)	2021		2020
Gains (losses) on foreign currency translation adjustment	$	3	$	(1)	Other (income) expense, net
Total before tax	3		(1)
Tax (expense) benefit	—		—
Gain (loss) net of tax	3		(1)
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	45	(17)		Revenues
Foreign exchange forwards and options	51		364		Cost of sales
Foreign exchange forwards and options	3		(2)		Demand creation expense
Foreign exchange forwards and options	(47)		181		Other (income) expense, net
Interest rate swaps	(7)		(7)		Interest expense (income), net
Total before tax	45		519
Tax (expense) benefit	(8)		(2)
Gain (loss) net of tax	37		517
Gains (losses) on other	(13)		1		Other (income) expense, net
Total before tax	(13)		1
Tax (expense) benefit	—		—
Gain (loss) net of tax	(13)		1
Total net gain (loss) reclassified for the period	$	27	$	517