Risk Management and Derivatives (Tables)
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12 Months Ended |
May 31, 2019 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| 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 as of May 31, 2019 and 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | | | | | | | | | | | | | | | | | | | | | | AS OF MAY 31, 2019 | | 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) | $ | 611 |
| $ | 611 |
| $ | — |
| | $ | 51 |
| $ | 51 |
| $ | — |
| Embedded derivatives | 11 |
| 5 |
| 6 |
| | 3 |
| 1 |
| 2 |
| TOTAL | $ | 622 |
| $ | 616 |
| $ | 6 |
| | $ | 54 |
| $ | 52 |
| $ | 2 |
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| | (1) | If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $50 million as of May 31, 2019. As of that date, the Company had received $289 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2019. |
| | | | | | | | | | | | | | | | | | | | | | AS OF MAY 31, 2018 | | 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) | $ | 389 |
| $ | 237 |
| $ | 152 |
| | $ | 182 |
| $ | 182 |
| $ | — |
| Embedded derivatives | 11 |
| 3 |
| 8 |
| | 8 |
| 2 |
| 6 |
| TOTAL | $ | 400 |
| $ | 240 |
| $ | 160 |
| | $ | 190 |
| $ | 184 |
| $ | 6 |
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| | (1) | If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2018. |
The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2019 and 2018. Refer to Note 6 — Fair Value Measurements for a description of how the financial instruments in the table below are valued. | | | | | | | | | | | | | | | | | | DERIVATIVE ASSETS | | DERIVATIVE LIABILITIES | | BALANCE SHEET LOCATION | AS OF MAY 31, | | BALANCE SHEET LOCATION | AS OF MAY 31, | (Dollars in millions) | 2019 | 2018 | | 2019 | 2018 | Derivatives formally designated as hedging instruments: | | | | | | | | Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 509 |
| $ | 118 |
| | Accrued liabilities | $ | 5 |
| $ | 156 |
| Foreign exchange forwards and options | Deferred income taxes and other assets | — |
| 152 |
| | Deferred income taxes and other liabilities | — |
| — |
| Total derivatives formally designated as hedging instruments | | 509 |
| 270 |
| | | 5 |
| 156 |
| Derivatives not designated as hedging instruments: | | | | | | | | Foreign exchange forwards and options | Prepaid expenses and other current assets | 102 |
| 119 |
| | Accrued liabilities | 46 |
| 26 |
| Embedded derivatives | Prepaid expenses and other current assets | 5 |
| 3 |
| | Accrued liabilities | 1 |
| 2 |
| Embedded derivatives | Deferred income taxes and other assets | 6 |
| 8 |
| | Deferred income taxes and other liabilities | 2 |
| 6 |
| Total derivatives not designated as hedging instruments | | 113 |
| 130 |
| | | 49 |
| 34 |
| TOTAL DERIVATIVES | | $ | 622 |
| $ | 400 |
| | | $ | 54 |
| $ | 190 |
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| Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income |
The following tables present the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the years ended May 31, 2019, 2018 and 2017: | | | | | | | | | | | | | | | | | | | | | | | YEAR ENDED MAY 31, | | 2019 | | 2018 | | 2017 | (Dollars in millions) | TOTAL |
| AMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY |
| | TOTAL |
| AMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY |
| | TOTAL |
| AMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY |
| Revenues | $ | 39,117 |
| $ | (5 | ) | | $ | 36,397 |
| $ | 34 |
| | $ | 34,350 |
| $ | 96 |
| Cost of sales | 21,643 |
| 53 |
| | 20,441 |
| (90 | ) | | 19,038 |
| 339 |
| Demand creation expense | 3,753 |
| — |
| | 3,577 |
| 1 |
| | 3,341 |
| — |
| Other (income) expense, net | (78 | ) | 35 |
| | 66 |
| (69 | ) | | (196 | ) | 199 |
| Interest expense (income), net | 49 |
| (7 | ) | | 54 |
| (7 | ) | | 59 |
| (4 | ) |
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| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2019, 2018 and 2017: | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in millions) | AMOUNT OF GAIN (LOSS)
RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) | | AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME(1) | YEAR ENDED MAY 31, | | LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME | | YEAR ENDED MAY 31, | 2019 | 2018 | 2017 | | | 2019 | 2018 | 2017 | Derivatives designated as
cash flow hedges: | | | | | | | | | | Foreign exchange forwards
and options | $ | 14 |
| $ | 19 |
| $ | 72 |
| | Revenues | | $ | (5 | ) | $ | 34 |
| $ | 96 |
| Foreign exchange forwards
and options | 405 |
| (50 | ) | 43 |
| | Cost of sales | | 53 |
| (90 | ) | 339 |
| Foreign exchange forwards
and options | 2 |
| 1 |
| (4 | ) | | Demand creation expense | | — |
| 1 |
| — |
| Foreign exchange forwards
and options | 156 |
| (19 | ) | 37 |
| | Other (income) expense, net | | 35 |
| (69 | ) | 199 |
| Interest rate swaps(2) | — |
| — |
| (54 | ) | | Interest expense (income), net | | (7 | ) | (7 | ) | (4 | ) | Total designated cash
flow hedges | $ | 577 |
| $ | (49 | ) | $ | 94 |
| | | | $ | 76 |
| $ | (131 | ) | $ | 630 |
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| | (1) | For the years ended May 31, 2019, 2018 and 2017, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. |
| | (2) | Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt. |
| | | | | | | | | | | | | | AMOUNT OF GAIN (LOSS) RECOGNIZED
IN INCOME ON DERIVATIVES | | LOCATION OF GAIN (LOSS)
RECOGNIZED IN INCOME
ON DERIVATIVES | | YEAR ENDED MAY 31, | | (Dollars in millions) | 2019 | 2018 | 2017 | | Derivatives not designated as hedging instruments: | | | | | | Foreign exchange forwards and options | $ | 166 |
| $ | (57 | ) | $ | (44 | ) | | Other (income) expense, net | Embedded derivatives | 7 |
| (4 | ) | (2 | ) | | Other (income) expense, net |
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