INCOME TAXES (Tables)

12 Months Ended

May 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes is as follows:

	YEAR ENDED MAY 31,
(Dollars in millions)	2024		2023		2022
Income before income taxes:
United States	$	5,588	$	4,663	$	6,020
Foreign	1,112		1,538		631
TOTAL INCOME BEFORE INCOME TAXES	$	6,700	$	6,201	$	6,651

Schedule of Components of Income Tax Expense

The provision for income taxes is as follows:

	YEAR ENDED MAY 31,
(Dollars in millions)	2024		2023		2022
Current:
United States
Federal	$	782	$	430	$	231
State	201		184		98
Foreign	514		634		926
Total Current	1,497		1,248		1,255
Deferred:
United States
Federal	(422)		(162)		(522)
State	(61)		(25)		(16)
Foreign	(14)		70		(112)
Total Deferred	(497)		(117)		(650)
TOTAL INCOME TAX EXPENSE	$	1,000	$	1,131	$	605

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:

	YEAR ENDED MAY 31,
	2024		2023		2022
Federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	1.4	%	1.5	%	1.4	%
Foreign earnings	-2.5	%	1.7	%	-1.8	%
Subpart F deferred tax benefit	0.0	%	0.0	%	-4.7	%
Foreign-derived intangible income benefit	-4.8	%	-6.1	%	-4.1	%
Excess tax benefits from stock-based compensation	-0.5	%	-1.1	%	-4.9	%
Income tax audits and contingency reserves	1.8	%	1.0	%	1.5	%
U.S. research and development tax credit	-2.1	%	-1.2	%	-1.0	%
Other, net	0.6	%	1.4	%	1.7	%
EFFECTIVE INCOME TAX RATE	14.9	%	18.2	%	9.1	%

Schedule of Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities comprise the following as of: 

	MAY 31,
(Dollars in millions)	2024		2023
Deferred tax assets:
Inventories	$	69	$	79
Sales return reserves	125		89
Deferred compensation	347		321
Stock-based compensation	290		261
Reserves and accrued liabilities	113		144
Operating lease liabilities	474		511
Intangibles	236		255
Capitalized research and development expenditures	878		548
Net operating loss carry-forwards	21		15
Subpart F deferred tax	409		374
Other	214		183
Total deferred tax assets	3,176		2,780
Valuation allowance	(29)		(22)
Total deferred tax assets after valuation allowance	3,147		2,758
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(131)		(186)
Property, plant and equipment	(290)		(276)
Right-of-use assets	(397)		(441)
Other	(9)		(56)
Total deferred tax liabilities	(827)		(959)
NET DEFERRED TAX ASSET (1)	$	2,320	$	1,799

(1)Of the total $2,320 million net deferred tax asset for the period ended May 31, 2024, $2,465 million was included within Deferred income taxes and other assets and $(145) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. Of the total $1,799 million net deferred tax asset for the period ended May 31, 2023, $2,026 million was included within Deferred income taxes and other assets and $(227) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.

Unrecognized Tax Benefits Reconciliation

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:

	MAY 31,
(Dollars in millions)	2024		2023		2022
Unrecognized tax benefits, beginning of the period	$	936	$	848	$	896
Gross increases related to prior period tax positions	35		95		71
Gross decreases related to prior period tax positions	(13)		(17)		(145)
Gross increases related to current period tax positions	77		50		62
Settlements	(22)		(18)		(17)
Lapse of statute of limitations	(24)		(7)		(10)
Changes due to currency translation	1		(15)		(9)
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD	$	990	$	936	$	848