Retirement Plans (Tables)

12 Months Ended

May 31, 2016

	2016		2015		2014
Defined benefit pension plans	$	214	$	(41)	$	99
Defined contribution plans		416		385		363
Postretirement healthcare plans		82		81		78
Retirement plans mark-to-market adjustment		1,498		2,190		15
	$	2,210	$	2,615	$	555

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

	2016		2015		2014
Actual versus expected return on assets	$	1,285	$	(35)	$	(1,013)
Discount rate changes		1,129		791		705
Demographic assumption experience		(916)		1,434		323
Total mark-to-market loss	$	1,498	$	2,190	$	15

Schedule of Weighted-Average Actuarial Assumptions for Primary U.S. Retirement Plans

Weighted-average actuarial assumptions for our primary U.S. retirement plans, which represent substantially all of our PBO and accumulated postretirement benefit obligation ("APBO"), are as follows:
		Pension Plans						Postretirement Healthcare Plans
		2016		2015		2014		2016		2015		2014

Discount rate used to determine benefit obligation		4.13	%	4.42	%	4.60	%	4.41	%	4.60	%	4.70	%
Discount rate used to determine net periodic benefit cost		4.42		4.60		4.79		4.60		4.70		4.91
Rate of increase in future compensation levels
	used to determine benefit obligation	4.46		4.62		4.56		-		-		-
Rate of increase in future compensation levels
	used to determine net periodic benefit cost	4.62		4.56		4.54		-		-		-
Expected long-term rate of return on assets -
	Consolidated	6.50		7.75		7.75		-		-		-
Expected long-term rate of return on assets - Segment
	Reporting	6.50		6.50		6.50		-		-		-

Schedule of Plan Assets at Measurement Date

		Plan Assets at Measurement Date
		2016
						Target		Quoted Prices in Active Markets		Other Observable Inputs		Unobservable Inputs
Asset Class		Fair Value		Actual %		Range %		Level 1		Level 2		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)
		$	23,017	100	%			$	4,119	$	12,499	$	48
⁽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.
		2015
						Target		Quoted Prices in Active Markets		Other Observable Inputs
Asset Class		Fair Value		Actual %		Range %		Level 1		Level 2
Cash and cash equivalents		$	738	3	%	0-5	%	$	36	$	702
Equities						35-55
	U.S. large cap equity⁽¹⁾		4,291	19					302
	International equities⁽¹⁾		3,064	14					2,429		1
	Global equities⁽¹⁾		2,579	11
	U.S. SMID cap equity		979	4					979
Fixed income securities						45-65
	Corporate		6,455	28							6,455
	Government		4,645	20							4,645
	Mortgage backed and other⁽¹⁾		213	1							153
Alternative investments⁽¹⁾			226	1		0-5
Other			(184)	(1)					(181)		(3)
		$	23,006	100	%			$	3,565	$	11,953
⁽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.

Schedule of Change in Fair Value of Level 3 Assets

		2016
Balance at beginning of year⁽¹⁾		$	-
Actual return on plan assets:
	Assets held during current year		2
	Assets sold during the year		-
Purchases, sales and settlements			46

Balance at end of year		$	48

⁽¹⁾	Investments classified in prior years as Level 3 that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been removed from the fair value hierarchy in accordance with retrospective adoption of recently updated accounting standards. See Note 2 for additional information.

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

			Pension Plans				Postretirement Healthcare Plans
			2016		2015		2016		2015
Accumulated Benefit Obligation ("ABO")			$	28,845	$	26,793
Changes in Projected Benefit Obligation ("PBO") and
	Accumulated Postretirement Benefit Obligation ("APBO")
PBO/APBO at the beginning of year			$	27,512	$	24,578	$	929	$	883
	Service cost			662		653		40		40
	Interest cost			1,180		1,096		42		41
	Actuarial loss			277		2,231		(64)		6
	Benefits paid			(912)		(815)		(78)		(73)
	Business acquisition			907		-		-		-
	Other			(24)		(231)		36		32
PBO/APBO at the end of year			$	29,602	$	27,512	$	905	$	929

Change in Plan Assets
Fair value of plan assets at the beginning of year			$	23,505	$	21,907	$	-	$	-
	Actual return on plan assets			223		1,718		-		-
	Company contributions			726		746		42		37
	Benefits paid			(912)		(815)		(78)		(73)
	Business acquisition			761		-		-		-
	Other			(32)		(51)		36		36
Fair value of plan assets at the end of year			$	24,271	$	23,505	$	-	$	-

Funded Status of the Plans			$	(5,331)	$	(4,007)	$	(905)	$	(929)

Amount Recognized in the Balance Sheet at May 31:
	Noncurrent asset		$	53	$	26	$	-	$	-
	Current pension, postretirement healthcare and other
		benefit obligations		(31)		(34)		(40)		(42)
	Noncurrent pension, postretirement healthcare and other
		benefit obligations		(5,353)		(3,999)		(865)		(887)
Net amount recognized			$	(5,331)	$	(4,007)	$	(905)	$	(929)

Amounts Recognized in AOCI and not yet reflected in
	Net Periodic Benefit Cost:
		Prior service credit and other	$	(546)	$	(668)	$	-	$	-

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	$	(121)	$	(121)	$	-	$	-

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

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)

2015
	Qualified	$	26,365	$	23,006	$	(3,359)
	Nonqualified		271		-		(271)
	International Plans		876		499		(377)
	Total	$	27,512	$	23,505	$	(4,007)

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

		PBO Exceeds the Fair Value of Plan Assets
		2016		2015

Pension Benefits
	Fair value of plan assets	$	23,867	$	23,099
	PBO		(29,251)		(27,132)
	Net funded status	$	(5,384)	$	(4,033)

		ABO Exceeds the Fair Value of Plan Assets
		2016		2015

Pension Benefits
	ABO⁽¹⁾	$	(28,493)	$	(26,413)

	Fair value of plan assets		23,865		23,099
	PBO		(29,249)		(27,132)
	Net funded status	$	(5,384)	$	(4,033)

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

Schedule of Net Periodic Benefit Cost

	Pension Plans						Postretirement Healthcare Plans
	2016		2015		2014		2016		2015		2014

Service cost	$	662	$	653	$	657	$	40	$	40	$	38
Interest cost		1,180		1,096		1,055		42		41		40
Expected return on plan assets		(1,508)		(1,678)		(1,495)		-		-		-
Amortization of prior service credit		(121)		(115)		(115)		-		-		-
Actuarial losses (gains) and other		1,562		2,190		7		(64)		6		5
Net periodic benefit cost	$	1,775	$	2,146	$	109	$	18	$	87	$	83

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):

		2016								2015
		Pension Plans				Postretirement Healthcare Plans				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

Prior service cost
	arising during period	$	-	$	-	$	-	$	-	$	(113)	$	(72)	$	(1)	$	-

Amortizations:
	Prior services credit		121		76		-		-		115		72		-		-
Total recognized in OCI		$	121	$	76	$	-	$	-	$	2	$	-	$	(1)	$	-

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 (millions):

	Pension Plans		Postretirement Healthcare Plans
2017	$	982	$	40
2018		1,010		41
2019		1,091		43
2020		1,201		42
2021		1,287		43
2022-2026		8,424		240