v3.25.2
RISK MANAGEMENT AND DERIVATIVES (Tables)
 12 Months Ended
May 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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:
MAY 31, 2025
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER 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.
MAY 31, 2024
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$343 $299 $44 $120 $115 $5 
Interest rate swaps(1)
— — — 31 — 31 
TOTAL
$343 $299 $44 $151 $115 $36 
(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 $142 million as of May 31, 2024. As of that date, the Company received $112 million of cash collateral from various counterparties on the derivative asset balance and posted $10 million cash collateral on the derivative liability balance.
The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20252024
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$75 $269 
Foreign exchange forwards and optionsDeferred income taxes and other assets22 44 
Interest rate swaps
Deferred income taxes and other assets
24 — 
Total derivatives formally designated as hedging instruments121 313 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options
Prepaid expenses and other current assets10 30 
Total derivatives not designated as hedging instruments10 30 
TOTAL DERIVATIVE ASSETS$131 $343 


 DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20252024
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$216 $110 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities142 5 
Interest rate swapsDeferred income taxes and other liabilities3 31 
Total derivatives formally designated as hedging instruments361 146 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options
Accrued liabilities10 5 
Total derivatives not designated as hedging instruments10 5 
TOTAL DERIVATIVE LIABILITIES$371 $151 
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, 2025, 2024 and 2023:

(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,
202520242023202520242023
Derivatives designated as
cash flow hedges:
Foreign exchange forwards
and options
$(67)$(66)$16 Revenues$(93)$(24)$26 
Foreign exchange forwards
and options
(55)231 305 Cost of sales295 294 581 
Foreign exchange forwards
and options
1 3 (1)Demand creation expense1 2 (5)
Foreign exchange forwards
and options
(6)102 207 Other (income) expense, net145 204 338 
Interest rate swaps(2)
— — — Interest expense (income), net(8)(8)(8)
TOTAL DESIGNATED CASH FLOW HEDGES
$(127)$270 $527 $340 $468 $932 
(1)For the fiscal years ended May 31, 2025, 2024, and 2023, 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)
202520242023
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivatives$2 $24 $28 Other (income) expense, net