Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Nov. 30, 2021

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

Accumulated Other Comprehensive Income (Loss)

NOTE 9 — 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 August 31, 2021	$	(126)	$	3	$	115	$	(59)	$	(67)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(155)		336		—		6		187
Reclassifications to net income of previously deferred (gains) losses(3)	—		30		—		(5)		25
Total other comprehensive income (loss)	(155)		366		—		1		212
Balance at November 30, 2021	$	(281)	$	369	$	115	$	(58)	$	145

(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, $(27) million, $0 million, $(2) million and $(29) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $(1) million, $0 million, $3 million and $2 million, respectively.

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at August 31, 2020	$	(176)	$	(268)	$	115	$	(72)	$	(401)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	79		(64)		—		(2)		13
Reclassifications to net income of previously deferred (gains) losses(3)	(1)		(39)		—		(1)		(41)
Total other comprehensive income (loss)	78		(103)		—		(3)		(28)
Balance at November 30, 2020	$	(98)	$	(371)	$	115	$	(75)	$	(429)

(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, $0 million and $(4) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $4 million, $0 million, $0 million and $4 million, respectively.

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at May 31, 2021	$	2	$	(435)	$	115	$	(62)	$	(380)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(283)		685		—		14		416
Reclassifications to net income of previously deferred (gains) losses(3)	—		119		—		(10)		109
Total other comprehensive income (loss)	(283)		804		—		4		525
Balance at November 30, 2021	$	(281)	$	369	$	115	$	(58)	$	145

(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, $(66) million, $0 million, $(4) million and $(70) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $(9) million, $0 million, $4 million and $(5) million, respectively.

(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)	397		(590)		—		(15)		(208)
Reclassifications to net income of previously deferred (gains) losses(3)	(1)		(171)		—		7		(165)
Total other comprehensive income (loss)	396		(761)		—		(8)		(373)
Balance at November 30, 2020	$	(98)	$	(371)	$	115	$	(75)	$	(429)

(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, $0 million, $0 million, $1 million and $1 million, respectively.

(3)Net of tax (benefit) expense of $0 million, $7 million, $0 million, $0 million and $7 million, respectively.

The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Unaudited Condensed 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
	THREE MONTHS ENDED NOVEMBER 30,				SIX MONTHS ENDED NOVEMBER 30,
(Dollars in millions)	2021		2020		2021		2020
Gains (losses) on foreign currency translation adjustment	$	—	$	1	$	—	$	1	Other expense (income), net
Total before tax	—		1		—		1
Tax (expense) benefit	—		—		—		—
Gain (loss) net of tax	—		1		—		1
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(20)	$	26	$	(41)	$	40	Revenues
Foreign exchange forwards and options	(30)		31		(96)		145		Cost of sales
Foreign exchange forwards and options	—		—		1		1		Demand creation expense
Foreign exchange forwards and options	20		(13)		11		(5)		Other (income) expense, net
Interest rate swaps	(1)		(1)		(3)		(3)		Interest expense (income), net
Total before tax	(31)		43		(128)		178
Tax (expense) benefit	1		(4)		9		(7)
Gain (loss) net of tax	(30)		39		(119)		171
Gains (losses) on other	8		1		14		(7)		Other (income) expense, net
Total before tax	8		1		14		(7)
Tax (expense) benefit	(3)		—		(4)		—
Gain (loss) net of tax	5		1		10		(7)
Total net gain (loss) reclassified for the period	$	(25)	$	41	$	(109)	$	165