Schedule II - Valuation and Qualifying Accounts

12 Months Ended

May 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - Valuation and Qualifying Aaccounts

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(Dollars in millions)	BALANCE AT BEGINNING OF PERIOD		CHARGED TO  COSTS AND  EXPENSES		CHARGED  TO OTHER  ACCOUNTS(1)		WRITE-OFFS, NET		BALANCE AT END OF PERIOD
Sales returns reserve
For the fiscal year ended May 31, 2019(2)(3)	$	734	$	2,209	$	(30)	$	(2,070)	$	843
For the fiscal year ended May 31, 2020(3)	843		2,227		(31)		(2,357)		682
For the fiscal year ended May 31, 2021	682		2,571		41		(2,699)		595

(1)Amounts included in this column primarily relate to foreign currency translation.

(2)As a result of the adoption of ASC Topic 606 during the first quarter of fiscal 2019, an asset for the estimated cost of inventory for expected product returns is now recognized separately from the liability for sales returns reserves, which is presented above.

(3)During the fourth quarter of fiscal 2021, management identified misstatements related to the amounts disclosed within Charged to Costs and Expenses and Write-offs, net. Specifically, Charged to Costs and Expenses was understated by $286 million and $250 million for fiscal 2020 and fiscal 2019, respectively, with a corresponding understatement of Write-offs, net. The Company assessed the materiality of these misstatements on prior period financial statements in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality, codified in ASC 250, Presentation of Financial Statements, and concluded these misstatements were not material to any prior period. As such, the Company has revised the amounts disclosed within Charged to Costs and Expenses and Write-offs, net for the fiscal years 2020 and 2019. These misstatements did not impact the Consolidated Balance Sheets, Consolidated Statements of Income, or Consolidated Statements of Cash Fl