Retirement Plans (Tables)

12 Months Ended

May 31, 2017

A summary of our retirement plans costs over the past three years is as follows (in millions):

	2017			2016		2015
Defined benefit pension plans	$	234		$	214	$	(41	)
Defined contribution plans		480			416		385
Postretirement healthcare plans		76			82		81
Retirement plans mark-to-market adjustment		(24	)		1,498		2,190
	$	766		$	2,210	$	2,615

The components of the pre-tax mark-to-market adjustments are as follows (in millions):

	2017			2016			2015
Actual versus expected return on assets	$	(740	)	$	1,285		$	(35	)
Discount rate changes		266			1,129			791
Demographic assumption experience		450			(916	)		1,434
Total mark-to-market (gain) loss	$	(24	)	$	1,498		$	2,190

Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

	U.S. Pension Plans									International Pension Plans									Postretirement Healthcare Plans
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Discount rate used to determine benefit obligation		4.08	%		4.13	%		4.42	%		2.43	%		2.46	%		2.95	%		4.32	%		4.43	%		4.60	%
Discount rate used to determine net periodic benefit cost		4.13			4.42			4.60			2.46			2.95			3.57			4.43			4.62			4.70
Rate of increase in future compensation levels used to determine benefit obligation		4.47			4.46			4.62			2.42			2.82			3.19			—			—			—
Rate of increase in future compensation levels used to determine net periodic benefit cost		4.46			4.62			4.56			2.82			3.19			3.31			—			—			—
Expected long-term rate of return on assets - Consolidated		6.50			6.50			7.75			—			—			—			—			—			—
Expected long-term rate of return on assets - Segment Reporting		6.50			6.50			6.50			3.18			3.68			5.13			—			—			—

Schedule of Plan Assets at Measurement Date

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and most significant international pension plans at the measurement date are presented in the following table (in millions):

	Plan Assets at Measurement Date
	2017
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽²⁾			Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	1,076			4	%		0 - 5	%	$	26		$	1,050
Equities							30 - 50
U.S. large cap equity⁽¹⁾		2,415			10						830
International equities⁽¹⁾		3,521			14						2,747			157
Global equities⁽¹⁾		3,276			13
U.S. SMID cap equity		987			4						987
Fixed income securities							50 - 70
Corporate		8,163			33									8,163
Government⁽¹⁾		4,674			19									3,454
Mortgage-backed and other⁽¹⁾		603			2									129
Alternative investments⁽¹⁾		377			2		0 - 5									$	129
Other		(159	)		(1	)					(161	)		2
Total U.S. plan assets	$	24,933			100	%				$	4,429		$	12,955		$	129
Asset Class (International Plans)
Cash and cash equivalents	$	48			4	%				$	2		$	46
Equities
International equities⁽¹⁾		137			11									72
Global equities⁽¹⁾		202			17
Fixed income securities
Corporate⁽¹⁾		270			22									49
Government⁽¹⁾		405			34						95			230
Mortgage-backed and other⁽¹⁾		145			12
Alternative investments		17			1									17
Other		(18	)		(1	)					(2	)		(16	)
Total International plan assets	$	1,206			100	%				$	95		$	398

⁽¹⁾	Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

⁽²⁾	Target ranges have not been provided for international plan assets as they are managed at an individual country level.

	Plan Assets at Measurement Date
	2016
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽²⁾			Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	568			2	%		0 - 5	%	$	76		$	492
Equities							35 - 55
U.S. large cap equity⁽¹⁾		3,257			14						750
International equities⁽¹⁾		3,381			15						2,685			121
Global equities⁽¹⁾		2,794			12
U.S. SMID cap equity		913			4						913
Fixed income securities							45 - 65
Corporate		6,608			29									6,608
Government		5,148			22									5,148
Mortgage-backed and other⁽¹⁾		347			2									146
Alternative investments⁽¹⁾		322			1		0 - 5									$	48
Other		(321	)		(1	)					(305	)		(16	)
Total U.S. plan assets	$	23,017			100	%				$	4,119		$	12,499		$	48
Asset Class (International Plans)
Cash and cash equivalents	$	211			19	%				$	157		$	54
Equities
International equities⁽¹⁾		124			11									63
Global equities⁽¹⁾		148			14
Fixed income securities
Corporate⁽¹⁾		122			11									44
Government⁽¹⁾		324			30						60			213
Mortgage-backed and other⁽¹⁾		134			12
Alternative investments⁽¹⁾		39			4									18
Other		(10	)		(1	)					(14	)		4
Total International plan assets	$	1,092			100	%				$	203		$	396

⁽¹⁾	Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

⁽²⁾	Target ranges have not been provided for international plan assets as they are managed at an individual country level.

Schedule of Change in Fair Value of Level 3 Assets

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

	U.S. Pension Plans
	2017		2016
Balance at beginning of year	$	48	$	—
Actual return on plan assets:
Assets held during current year		5		2
Assets sold during the year		1		—
Purchases, sales and settlements		75		46
Balance at end of year	$	129	$	48

Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status

The following table provides a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2017 and a statement of the funded status as of May 31, 2017 and 2016 (in millions):

	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2017			2016			2017			2016			2017			2016
Accumulated Benefit Obligation (“ABO”)	$	27,244		$	27,236		$	1,842		$	1,609
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)
PBO/APBO at the beginning of year	$	27,804		$	26,636		$	1,798		$	876		$	905		$	929
Service cost		638			622			83			40			36			40
Interest cost		1,128			1,155			43			25			39			42
Actuarial loss		571			284			161			(7	)		(14	)		(64	)
Benefits paid		(2,271	)		(893	)		(38	)		(19	)		(72	)		(78	)
Business acquisition		—			—			—			907			—			—
Purchase accounting adjustment		—			—			26			—			—			—
Other		—			—			(30	)		(24	)		33			36
PBO/APBO at the end of year	$	27,870		$	27,804		$	2,043		$	1,798		$	927		$	905
Change in Plan Assets
Fair value of plan assets at the beginning of year	$	23,017		$	23,006		$	1,254		$	499		$	—		$	—
Actual return on plan assets		2,167			211			112			12			—			—
Company contributions		2,020			693			95			33			36			42
Benefits paid		(2,271	)		(893	)		(38	)		(19	)		(72	)		(78	)
Business acquisition		—			—			—			761			—			—
Other		—			—			(44	)		(32	)		36			36
Fair value of plan assets at the end of year	$	24,933		$	23,017		$	1,379		$	1,254		$	—		$	—
Funded Status of the Plans	$	(2,937	)	$	(4,787	)	$	(664	)	$	(544	)	$	(927	)	$	(905	)
Amount Recognized in the Balance Sheet at May 31:
Noncurrent asset	$	—		$	—		$	40		$	53		$	—		$	—
Current pension, postretirement healthcare and other benefit obligations		(33	)		(19	)		(17	)		(12	)		(39	)		(40	)
Noncurrent pension, postretirement healthcare and other benefit obligations		(2,904	)		(4,768	)		(687	)		(585	)		(888	)		(865	)
Net amount recognized	$	(2,937	)	$	(4,787	)	$	(664	)	$	(544	)	$	(927	)	$	(905	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:
Prior service credit and other	$	(410	)	$	(528	)	$	(13	)	$	(18	)	$	(4	)	$	—
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost:
Prior service credit and other	$	(118	)	$	(118	)	$	(2	)	$	(3	)	$	—		$	—

Schedule of Components of Pension Plans

Our pension plans included the following components at May 31 (in millions):

	PBO		Fair Value of Plan Assets		Funded Status
2017
Qualified	$	27,600	$	24,933	$	(2,667	)
Nonqualified		270		—		(270	)
International Plans		2,043		1,379		(664	)
Total	$	29,913	$	26,312	$	(3,601	)
2016
Qualified	$	27,543	$	23,017	$	(4,526	)
Nonqualified		261		—		(261	)
International Plans		1,798		1,254		(544	)
Total	$	29,602	$	24,271	$	(5,331	)

Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets

The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following table presents our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

	PBO Exceeds the Fair Value of Plan Assets
	2017			2016
U.S. Pension Benefits
Fair value of plan assets	$	24,933		$	23,017
PBO		(27,870	)		(27,804	)
Net funded status	$	(2,937	)	$	(4,787	)
International Pension Benefits
Fair value of plan assets	$	952		$	850
PBO		(1,656	)		(1,447	)
Net funded status	$	(704	)	$	(597	)

	ABO Exceeds the Fair Value of Plan Assets
	2017			2016
U.S. Pension Benefits
ABO⁽¹⁾	$	(27,244	)	$	(27,236	)
Fair value of plan assets		24,933			23,017
PBO		(27,870	)		(27,804	)
Net funded status	$	(2,937	)	$	(4,787	)
International Pension Benefits
ABO⁽¹⁾	$	(1,433	)	$	(1,257	)
Fair value of plan assets		928			848
PBO		(1,626	)		(1,445	)
Net funded status	$	(698	)	$	(597	)

⁽¹⁾	ABO not used in determination of funded status.

Schedule Of Pension Plans Contributions

Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions):

	2017		2016
Required	$	459	$	8
Voluntary		1,541		652
	$	2,000	$	660

Schedule of Net Periodic Benefit Cost

Net periodic benefit cost for the three years ended May 31 were as follows (in millions):

	U.S. Pension Plans									International Pension Plans									Postretirement Healthcare Plans
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Service cost	$	638		$	622		$	615		$	83		$	40		$	38		$	36		$	40		$	40
Interest cost		1,128			1,155			1,068			43			25			28			39			42			41
Expected return on plan assets		(1,501	)		(1,490	)		(1,655	)		(38	)		(18	)		(23	)		—			—			—
Amortization of prior service credit		(118	)		(118	)		(112	)		(2	)		(3	)		(3	)		—			—			—
Actuarial losses (gains) and other		(95	)		1,563			2,154			87			(1	)		36			(14	)		(64	)		6
Net periodic benefit cost	$	52		$	1,732		$	2,070		$	173		$	43		$	76		$	61		$	18		$	87

Schedule of Amounts Recognized in Other Comprehensive Income for All Plans

Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions):

	2017														2016
	U.S. Pension Plans				International Pension Plans				Postretirement Healthcare Plans						U.S. Pension Plans				International Pension Plans				Postretirement Healthcare Plans
	Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount			Net of Tax Amount			Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount		Gross Amount		Net of Tax Amount
Prior service cost (credit) arising during period	$	—	$	—	$	1	$	1	$	(3	)	$	(2	)	$	—	$	—	$	—	$	—	$	—	$	—
Amortizations:
Prior services credit		118		74		2		2		—			—			118		74		3		2		—		—
Total recognized in OCI	$	118	$	74	$	3	$	3	$	(3	)	$	(2	)	$	118	$	74	$	3	$	2	$	—	$	—

Schedule of Expected Future Benefit Payments

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

	U.S. Pension Plans		International Pension Plans		Postretirement Healthcare Plans
2018	$	1,013	$	44	$	39
2019		1,070		43		40
2020		1,169		48		42
2021		1,233		53		42
2022		1,345		59		43
2023-2027		8,565		789		246