INCOME TAXES (Tables)

12 Months Ended

May 31, 2025

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)	2025		2024		2023
Income before income taxes:
United States	$	3,220	$	5,588	$	4,663
Foreign	665		1,112		1,538
TOTAL INCOME BEFORE INCOME TAXES	$	3,885	$	6,700	$	6,201

Schedule of Components of Income Tax Expense

The provision for income taxes is as follows:

	YEAR ENDED MAY 31,
(Dollars in millions)	2025		2024		2023
Current:
United States
Federal	$	358	$	782	$	430
State	121		201		184
Foreign	475		514		634
Total Current	954		1,497		1,248
Deferred:
United States
Federal	(135)		(422)		(162)
State	(12)		(61)		(25)
Foreign	(141)		(14)		70
Total Deferred	(288)		(497)		(117)
TOTAL INCOME TAX EXPENSE	$	666	$	1,000	$	1,131

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,
	2025		2024		2023
Federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.0	%	1.4	%	1.5	%
Foreign earnings	1.1	%	-2.5	%	1.7	%
U.S. tax regulations - foreign currency losses	-3.4	%	0.0	%	0.0	%
Foreign-derived intangible income benefit	-5.3	%	-4.8	%	-6.1	%
Stock-based compensation	1.5	%	-0.5	%	-1.1	%
Income tax audits and contingency reserves	2.7	%	1.8	%	1.0	%
U.S. research and development tax credit	-2.1	%	-2.1	%	-1.2	%
Other, net	-0.4	%	0.6	%	1.4	%
EFFECTIVE INCOME TAX RATE	17.1	%	14.9	%	18.2	%

Schedule of Deferred Income Tax Assets and Liabilities

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

	MAY 31,
(Dollars in millions)	2025		2024
Deferred tax assets:
Inventories	$	98	$	69
Sales return reserves	205		125
Deferred compensation	387		347
Stock-based compensation	285		290
Reserves and accrued liabilities	143		113
Operating lease liabilities	458		474
Intangibles	217		236
Capitalized research and development expenditures	923		878
Net operating loss carry-forwards	75		21
Subpart F deferred tax	315		409
Other	212		214
Total deferred tax assets	3,318		3,176
Valuation allowance	(51)		(29)
Total deferred tax assets after valuation allowance	3,267		3,147
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(119)		(131)
Property, plant and equipment	(225)		(290)
Right-of-use assets	(377)		(397)
Other	(4)		(9)
Total deferred tax liabilities	(725)		(827)
NET DEFERRED TAX ASSET (1)	$	2,542	$	2,320

(1)Of the total $2,542 million net deferred tax asset for the period ended May 31, 2025, $2,668 million was included within Deferred income taxes and other assets and $(126) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. 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.

Schedule of Unrecognized Tax Benefits Roll Forward

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

	MAY 31,
(Dollars in millions)	2025		2024		2023
Unrecognized tax benefits, beginning of the period	$	990	$	936	$	848
Gross increases related to prior period tax positions	11		35		95
Gross decreases related to prior period tax positions	(10)		(13)		(17)
Gross increases related to current period tax positions	81		77		50
Settlements	(5)		(22)		(18)
Lapse of statute of limitations	(45)		(24)		(7)
Changes due to currency translation	4		1		(15)
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD	$	1,026	$	990	$	936