Income Taxes (Tables)

12 Months Ended

May 31, 2023

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):

	2023		2022		2021
Current provision
Domestic:
Federal	$	579	$	311	$	199
State and local		157		120		158
Foreign		209		317		284
		945		748		641
Deferred provision
Domestic:
Federal		369		267		667
State and local		37		21		70
Foreign		40		34		65
		446		322		802
	$	1,391	$	1,070	$	1,443

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):

	2023			2022			2021
Taxes computed at federal statutory rate	$	1,126		$	1,028		$	1,401
(Decreases) increases in income tax from:
U.S. and foreign return-to-provision adjustments		(44	)		(142	)		—
State and local income taxes, net of federal benefit	152				116			179
Foreign operations		96			115			138
Non-deductible expenses		40			48			53
Uncertain tax positions		60			(18	)		65
Benefits from share-based payments		(18	)		(13	)		(69	)
Valuation allowance		59			33			14
Foreign tax rate enactments		3			(30	)		(61	)
Benefit from U.S. tax loss carryback to prior years		—			—			(279	)
Goodwill impairment charges		8			—			—
Other, net		(91	)		(67	)		2
Provision for income taxes	$	1,391		$	1,070		$	1,443
Effective Tax Rate		25.9	%		21.9	%		21.6	%

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):

	2023					2022
	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property, equipment, leases, and intangibles	$	4,608		$	10,965	$	4,464		$	10,608
Employee benefits		876			—		1,203			—
Self-insurance accruals		1,085			—		931			—
Other		454			62		524			66
Net operating loss/credit carryforwards		1,149			—		1,079			—
Valuation allowances		(471	)		—		(413	)		—
	$	7,701		$	11,027	$	7,788		$	10,674

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):

	2023			2022
Noncurrent deferred tax assets(1)	$	1,163		$	1,207
Noncurrent deferred tax liabilities		(4,489	)		(4,093	)
	$	(3,326	)	$	(2,886	)

(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):

	2023			2022			2021
Balance at beginning of year	$	169		$	192		$	129
Increases for tax positions taken in the current year		3			14			3
Increases for tax positions taken in prior years		68			8			69
Decreases for tax positions taken in prior years		(7	)		(15	)		(6	)
Settlements		(15	)		(32	)		(6	)
Changes due to currency translation		(6	)		2			3
Balance at end of year	$	212		$	169		$	192