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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Aug. 31, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of August 31, 2025 and May 31, 2025, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:


	AUGUST 31, 2025
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	1,409	$	1,409	$	—
Level 1:
U.S. Treasury securities	897		—		897
Level 2:
Commercial paper and bonds	672		35		637
Money market funds	5,309		5,309		—
Time deposits	271		271		—
U.S. Agency securities	17		—		17
Total Level 2	6,269		5,615		654
TOTAL	$	8,575	$	7,024	$	1,551


	MAY 31, 2025
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	1,221	$	1,221	$	—
Level 1:
U.S. Treasury securities	1,046		—		1,046
Level 2:
Commercial paper and bonds	675		45		630
Money market funds	5,902		5,902		—
Time deposits	297		295		2
U.S. Agency securities	10		1		9
Total Level 2	6,884		6,243		641
TOTAL	$	9,151	$	7,464	$	1,687

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:


	AUGUST 31, 2025
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)	$	133	$	107	$	26	$	518	$	348	$	170
Interest rate swaps(1)	55		—		55		—		—		—
TOTAL	$	188	$	107	$	81	$	518	$	348	$	170

(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $188 million as of August 31, 2025. As of that date, the Company posted $175 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.


	MAY 31, 2025
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)	$	107	$	85	$	22	$	368	$	226	$	142
Interest rate swaps(1)	24		—		24		3		—		3
TOTAL	$	131	$	85	$	46	$	371	$	226	$	145

(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $131 million as of May 31, 2025. As of that date, the Company posted $166 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.

The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:


	DERIVATIVE ASSETS
	BALANCE SHEET LOCATION	AUGUST 31,		MAY 31,
(Dollars in millions)		2025		2025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	95	$	75
Foreign exchange forwards and options	Deferred income taxes and other assets	26		22
Interest rate swaps	Deferred income taxes and other assets	55		24
Total derivatives formally designated as hedging instruments		176		121
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	12		10



Total derivatives not designated as hedging instruments		12		10
TOTAL DERIVATIVE ASSETS		$	188	$	131

	DERIVATIVE LIABILITIES
	BALANCE SHEET LOCATION	AUGUST 31,		MAY 31,
(Dollars in millions)		2025		2025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$	339	$	216
Foreign exchange forwards and options	Deferred income taxes and other liabilities	170		142
Interest rate swaps	Deferred income taxes and other liabilities	—		3
Total derivatives formally designated as hedging instruments		509		361
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	9		10



Total derivatives not designated as hedging instruments		9		10
TOTAL DERIVATIVE LIABILITIES		$	518	$	371