Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Feb. 28, 2022

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

Accumulated Other Comprehensive Income (Loss)

NOTE 10 — 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 November 30, 2021	$	(281)	$	369	$	115	$	(58)	$	145
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(6)		4		—		(7)		(9)
Reclassifications to net income of previously deferred (gains) losses(3)	—		(33)		—		(4)		(37)
Total other comprehensive income (loss)	(6)		(29)		—		(11)		(46)
Balance at February 28, 2022	$	(287)	$	340	$	115	$	(69)	$	99

(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, $2 million and $8 million, respectively.

(3)Net of tax (benefit) expense of $0 million, $5 million, $0 million, $1 million and $6 million, respectively.

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at November 30, 2020	$	(98)	$	(371)	$	115	$	(75)	$	(429)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	99		(163)		—		(6)		(70)
Reclassifications to net income of previously deferred (gains) losses(3)	(1)		46		—		8		53
Total other comprehensive income (loss)	98		(117)		—		2		(17)
Balance at February 28, 2021	$	—	$	(488)	$	115	$	(73)	$	(446)

(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, $(3) million, $0 million, $1 million and $(2) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $0 million, $0 million, $0 million and $0 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)	(289)		689		—		7		407
Reclassifications to net income of previously deferred (gains) losses(3)	—		86		—		(14)		72
Total other comprehensive income (loss)	(289)		775		—		(7)		479
Balance at February 28, 2022	$	(287)	$	340	$	115	$	(69)	$	99

(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, $(60) million, $0 million, $(2) million and $(62) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $(4) million, $0 million, $5 million and $1 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)	496		(753)		—		(21)		(278)
Reclassifications to net income of previously deferred (gains) losses(3)	(2)		(125)		—		15		(112)
Total other comprehensive income (loss)	494		(878)		—		(6)		(390)
Balance at February 28, 2021	$	—	$	(488)	$	115	$	(73)	$	(446)

(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, $(3) million, $0 million, $2 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 FEBRUARY 28,				NINE MONTHS ENDED FEBRUARY 28,
(Dollars in millions)	2022		2021		2022		2021
Gains (losses) on foreign currency translation adjustment	$	—	$	1	$	—	$	2	Other expense (income), net
Total before tax	—		1		—		2
Tax (expense) benefit	—		—		—		—
Gain (loss) net of tax	—		1		—		2
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(22)	$	16	$	(63)	$	56	Revenues
Foreign exchange forwards and options	17		(35)		(79)		110		Cost of sales
Foreign exchange forwards and options	—		1		1		2		Demand creation expense
Foreign exchange forwards and options	45		(26)		56		(31)		Other (income) expense, net
Interest rate swaps	(2)		(2)		(5)		(5)		Interest expense (income), net
Total before tax	38		(46)		(90)		132
Tax (expense) benefit	(5)		—		4		(7)
Gain (loss) net of tax	33		(46)		(86)		125
Gains (losses) on other	5		(8)		19		(15)		Other (income) expense, net
Total before tax	5		(8)		19		(15)
Tax (expense) benefit	(1)		—		(5)		—
Gain (loss) net of tax	4		(8)		14		(15)
Total net gain (loss) reclassified for the period	$	37	$	(53)	$	(72)	$	112