Income Taxes (Tables)

12 Months Ended

May 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes for the years ended May 31 were as follows (in millions):

	2022		2021		2020
Current provision (benefit)
Domestic:
Federal	$	311	$	199	$	(230	)
State and local		120		158		67
Foreign		317		284		198
		748		641		35
Deferred provision (benefit)
Domestic:
Federal		267		667		475
State and local		21		70		1
Foreign		34		65		(128	)
		322		802		348
	$	1,070	$	1,443	$	383

Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Income Taxes

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax to income before income taxes for the years ended May 31 is as follows (dollars in millions):

	2022			2021			2020
Taxes computed at federal statutory rate	$	1,028		$	1,401		$	350
(Decreases) increases in income tax from:
U.S. and foreign return-to-provision adjustments		(142	)		—			—
State and local income taxes, net of federal benefit	116				179			53
Foreign operations		115			138			38
Non-deductible expenses		48			53			70
Uncertain tax positions		(18	)		65			(14	)
Benefits from share-based payments		(13	)		(69	)		(5	)
Valuation allowance		33			14			(129	)
Foreign tax rate enactments		(30	)		(61	)		(10	)
Benefit from U.S. tax loss carryback to prior years		—			(279	)		(71	)
Goodwill impairment charges		—			—			75
U.S. deferred tax adjustments related to foreign operations		—			—			51
Other, net		(67	)		2			(25	)
Provision for income taxes	$	1,070		$	1,443		$	383
Effective Tax Rate		21.9	%		21.6	%		23.0	%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):

	2022					2021
	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property, equipment, leases, and intangibles	$	4,464		$	10,608	$	4,248		$	9,731
Employee benefits		1,203			—		1,178			—
Self-insurance accruals		931			—		785			—
Other		524			66		511			52
Net operating loss/credit carryforwards		1,079			—		934			—
Valuation allowances		(413	)		—		(382	)		—
	$	7,788		$	10,674	$	7,274		$	9,783

Schedule of Net Deferred Tax Liabilities

The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions):

	2022			2021
Noncurrent deferred tax assets(1)	$	1,207		$	1,418
Noncurrent deferred tax liabilities		(4,093	)		(3,927	)
	$	(2,886	)	$	(2,509	)

(1)Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying consolidated balance sheets.

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended May 31 is as follows (in millions):

	2022			2021			2020
Balance at beginning of year	$	192		$	129		$	164
Increases for tax positions taken in the current year		14			3			3
Increases for tax positions taken in prior years		8			69			4
Decreases for tax positions taken in prior years		(15	)		(6	)		(10	)
Settlements		(32	)		(6	)		(31	)
Changes due to currency translation		2			3			(1	)
Balance at end of year	$	169		$	192		$	129