Risk Management and Derivatives: (Tables)

9 Months Ended

Feb. 29, 2012

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

The following table presents the fair values of derivative instruments included within the unaudited condensed consolidated balance sheet as of February 29, 2012 and May 31, 2011:


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	February 29, 2012		May 31, 2011		Balance Sheet Location	February 29, 2012		May 31, 2011
	(in millions)
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets		93		22	Accrued liabilities		40		170
Interest rate swap contracts	Prepaid expenses and other current assets		1		0	Accrued liabilities		0		0
Foreign exchange forwards and options	Deferred income taxes and other long- term assets		22		7	Deferred income taxes and other long- term liabilities		0		10
Interest rate swap contracts	Deferred income taxes and other long- term assets		15		15	Deferred income taxes and other long- term liabilities		0		0

Total derivatives formally designated as hedging instruments			131		44			40		180

Derivatives not formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets		26		9	Accrued liabilities		34		16
Foreign exchange forwards and options	Deferred income taxes and other long- term assets		0		0	Deferred income taxes and other long- term liabilities		1		1

Total derivatives not formally designated as hedging instruments			26		9			35		17

Total derivatives			157		53			75		197

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the unaudited condensed consolidated statements of income for the three and nine month periods ended February 29, 2012 and February 28, 2011:


	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾					Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
Derivatives designated as hedges	Three Months Ended February 29, 2012			Nine Months Ended February 29, 2012		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income⁽¹⁾	Three Months Ended February 29, 2012			Nine Months Ended February 29, 2012
	(in millions)						(in millions)
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options		(12	)		5	Revenue		0			14
Foreign exchange forwards and options		3			146	Cost of sales		(1	)		(74	)
Foreign exchange forwards and options		0			0	Selling and administrative expense		(1	)		(3	)
Foreign exchange forwards and options		(3	)		8	Other (income) expense, net		4			(14	)

Total designated cash flow hedges		(12	)		159			2			(77	)
Derivatives designated as net investment hedges:
Foreign exchange forwards and options		(2	)		35	Other (income) expense, net		0			0

⁽¹⁾	For the three and nine month periods ended February 29, 2012, the Company recognized an immaterial amount of ineffectiveness from cash flow hedges.


	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives ⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income ⁽¹⁾
Derivatives designated as hedges	Three Months Ended February 28, 2011			Nine Months Ended February 28, 2011			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income ⁽¹⁾	Three Months Ended February 28, 2011			Nine Months Ended February 28, 2011
	(in millions)							(in millions)
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options		(52	)		(48	)	Revenue		(7	)		(30	)
Foreign exchange forwards and options		(45	)		(131	)	Cost of sales		14			101
Foreign exchange forwards and options		(2	)		(3	)	Selling and administrative expense		0			1
Foreign exchange forwards and options		(17	)		(47	)	Other (income) expense, net		4			42

Total designated cash flow hedges		(116	)		(229	)			11			114
Derivatives designated as net investment hedges:
Foreign exchange forwards and options		(34	)		(58	)	Other (income) expense, net		0			0

⁽¹⁾	For the three and nine month periods ended February 28, 2011, the Company recognized an immaterial amount of ineffectiveness from cash flow hedges.


	Amount of Gain (Loss) Recognized in Income on Derivatives											Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended February 29 and 28,					Nine Months Ended February 29 and 28,
	2012			2011		2012			2011
	(in millions)
Derivatives designated as fair value hedges:
Interest rate swaps ⁽¹⁾	$	1		$	2	$	5		$	5		Interest (income) expense, net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(17	)	$	3	$	(14	)	$	(28	)	Other (income) expense, net

⁽¹⁾

All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to section “Fair Value Hedges” below for additional detail.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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