Retirement Plans (Tables)

12 Months Ended

May 31, 2019

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

	2019		2018			2017
Defined benefit pension plans	$	111	$	150		$	234
Defined contribution plans		561		527			480
Postretirement healthcare plans		75		74			76
Retirement plans mark-to-market loss (gain)		3,882		(10	)		(24	)
	$	4,629	$	741		$	766

The components of the MTM adjustments are as follows (in millions):

	2019		2018			2017
Discount rate change	$	1,780	$	(613	)	$	266
Demographic experience:
Current year actuarial loss		739		419			268
Change in future assumptions		887		(37	)		182
Actual versus expected return on assets		476		11			(740	)
Annuity contract purchase		—		210			—
Total mark-to-market loss (gain)	$	3,882	$	(10	)	$	(24	)

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
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Discount rate used to determine benefit obligation		3.85	%		4.27	%		4.08	%		1.92	%		2.37	%		2.43	%		3.70	%		4.33	%		4.32	%
Discount rate used to determine net periodic benefit cost		4.27			4.08			4.13			2.34			2.43			2.46			4.33			4.32			4.43
Rate of increase in future compensation levels used to determine benefit obligation		5.10			4.43			4.47			2.27			2.26			2.42			—			—			—
Rate of increase in future compensation levels used to determine net periodic benefit cost		4.43			4.47			4.46			2.22			2.42			2.82			—			—			—
Expected long-term rate of return on assets		6.75			6.50			6.50			3.12			3.09			3.18			—			—			—
Interest crediting rate used to determine net periodic benefit cost		4.00			4.00			4.00			2.20			2.20			2.30			—			—			—
Interest crediting rate used to determine benefit obligation		4.00			4.00			4.00			2.20			2.20			2.30			—			—			—

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 our most significant international pension plans at the measurement date are presented in the following table (in millions):

	Plan Assets at Measurement Date
	2019
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽¹⁾	Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	570			2	%	0 - 5%	$	50		$	520
Equities							30 - 50
U.S. large cap equity⁽²⁾		2,546			11				875
International equities⁽²⁾		3,306			14				2,700
Global equities⁽²⁾		1,451			6
U.S. SMID cap equity		731			3				730			1
Fixed income securities							50 - 70
Corporate		6,794			29							6,794
Government⁽²⁾		5,384			23							3,742
Mortgage-backed and other⁽²⁾		622			3							175
Alternative investments⁽²⁾		1,963			9		0 - 15							$	302
Other		(47	)		—				(45	)		(2	)
Total U.S. plan assets	$	23,320			100	%		$	4,310		$	11,230		$	302
Asset Class (International Plans)
Cash and cash equivalents	$	57			4			$	57
Equities
International equities⁽²⁾		72			5
Global equities⁽²⁾		206			15
Fixed income securities
Corporate⁽²⁾		322			24
Government⁽²⁾		438			32				290
Mortgage-backed and other⁽²⁾		167			12
Other⁽²⁾		112			8				10			17
Total international plan assets	$	1,374			100	%		$	357		$	17

⁽¹⁾

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

⁽²⁾

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.

	Plan Assets at Measurement Date
	2018
Asset Class (U.S. Plans)	Fair Value			Actual %			Target Range %⁽¹⁾	Quoted Prices in Active Markets Level 1			Other Observable Inputs Level 2			Unobservable Inputs Level 3
Cash and cash equivalents	$	714			3	%	0 - 5%	$	19		$	695
Equities							30 - 50
U.S. large cap equity⁽²⁾		2,449			11				840
International equities⁽²⁾		3,506			16				2,681			172
Global equities⁽²⁾		1,772			8
U.S. SMID cap equity		780			4				780
Fixed income securities							50 - 70
Corporate		5,834			26							5,834
Government⁽²⁾		4,872			22							3,345
Mortgage-backed and other⁽²⁾		626			3							125
Alternative investments⁽²⁾		1,573			7		0 - 10							$	209
Other		(69	)		—				(62	)		(7	)
Total U.S. plan assets	$	22,057			100	%		$	4,258		$	10,164		$	209
Asset Class (International Plans)
Cash and cash equivalents	$	24			2	%		$	2		$	22
Equities
International equities⁽²⁾		146			11							70
Global equities⁽²⁾		228			17
Fixed income securities
Corporate⁽²⁾		306			23							68
Government⁽²⁾		452			34				108			256
Mortgage-backed and other⁽²⁾		168			13
Alternative investments		19			2							19
Other		(23	)		(2	)			(6	)		(17	)
Total international plan assets	$	1,320			100	%		$	104		$	418

⁽¹⁾

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

⁽²⁾

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
	2019		2018
Balance at beginning of year	$	209	$	129
Actual return on plan assets:
Assets held during current year		11		8
Assets sold during the year		13		4
Purchases, sales and settlements		69		68
Balance at end of year	$	302	$	209

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

The following tables provide 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, 2019 and a statement of the funded status as of May 31, 2019 and 2018 (in millions):

	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2019			2018			2019			2018			2019			2018
Accumulated Benefit Obligation (“ABO”)	$	25,915		$	22,029		$	2,084		$	1,956
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)
PBO/APBO at the beginning of year	$	22,653		$	27,870		$	2,167		$	2,043		$	955		$	927
Service cost		689			679			94			97			35			36
Interest cost		951			1,115			49			49			40			39
Actuarial loss		3,016			21			127			(34	)		266			(9	)
Benefits paid		(755	)		(854	)		(38	)		(46	)		(123	)		(80	)
Settlements		—			(6,178	)		(13	)		(5	)		—			—
Other		—			—			(85	)		63			48			42
PBO/APBO at the end of year	$	26,554		$	22,653		$	2,301		$	2,167		$	1,221		$	955
Change in Plan Assets
Fair value of plan assets at the beginning of year	$	22,057		$	24,933		$	1,509		$	1,379		$	—		$	—
Actual return on plan assets		984			1,609			94			49			—			—
Company contributions		1,034			2,547			91			84			73			42
Benefits paid		(755	)		(854	)		(38	)		(46	)		(123	)		(80	)
Settlements		—			(6,178	)		(13	)		(5	)		—			—
Other		—			—			(65	)		48			50			38
Fair value of plan assets at the end of year	$	23,320		$	22,057		$	1,578		$	1,509		$	—		$	—
Funded Status of the Plans	$	(3,234	)	$	(596	)	$	(723	)	$	(658	)	$	(1,221	)	$	(955	)
Amount Recognized in the Balance Sheet at May 31:
Noncurrent asset	$	—		$	—		$	82		$	73		$	—		$	—
Current pension, postretirement healthcare and other benefit obligations		(70	)		(22	)		(16	)		(16	)		(87	)		(62	)
Noncurrent pension, postretirement healthcare and other benefit obligations		(3,164	)		(574	)		(789	)		(715	)		(1,134	)		(893	)
Net amount recognized	$	(3,234	)	$	(596	)	$	(723	)	$	(658	)	$	(1,221	)	$	(955	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:
Prior service (credit) cost and other	$	(173	)	$	(292	)	$	(6	)	$	(10	)	$	1		$	2

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
2019
Qualified	$	26,300	$	23,320	$	(2,980	)
Nonqualified		254		—		(254	)
International Plans		2,301		1,578		(723	)
Total	$	28,855	$	24,898	$	(3,957	)
2018
Qualified	$	22,413	$	22,057	$	(356	)
Nonqualified		240		—		(240	)
International Plans		2,167		1,509		(658	)
Total	$	24,820	$	23,566	$	(1,254	)

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 tables present 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
	2019			2018
U.S. Pension Benefits
Fair value of plan assets	$	23,320		$	22,057
PBO		(26,554	)		(22,653	)
Net funded status	$	(3,234	)	$	(596	)
International Pension Benefits
Fair value of plan assets	$	1,125		$	1,060
PBO		(1,929	)		(1,791	)
Net funded status	$	(804	)	$	(731	)

	ABO Exceeds the Fair Value of Plan Assets
	2019			2018
U.S. Pension Benefits
ABO⁽¹⁾	$	(25,915	)	$	(1,134	)
Fair value of plan assets		23,320			859
PBO		(26,554	)		(1,214	)
Net funded status	$	(3,234	)	$	(355	)
International Pension Benefits
ABO⁽¹⁾	$	(1,709	)	$	(1,581	)
Fair value of plan assets		1,120			1,060
PBO		(1,925	)		(1,791	)
Net funded status	$	(805	)	$	(731	)

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

Schedule of Contributions to Pension Plans

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

	2019		2018
Required	$	—	$	22
Voluntary		1,000		2,478
	$	1,000	$	2,500

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
	2019			2018			2017			2019			2018			2017			2019		2018			2017
Service cost	$	689		$	679		$	638		$	94		$	97		$	83		$	35	$	36		$	36
Interest cost		951			1,115			1,128			49			49			43			40		39			39
Expected return on plan assets		(1,505	)		(1,624	)		(1,501	)		(47	)		(46	)		(38	)		—		—			—
Amortization of prior service credit		(118	)		(118	)		(118	)		(2	)		(2	)		(2	)		—		(1	)		—
Actuarial losses (gains) and other		3,537			37			(95	)		80			(38	)		87			265		(9	)		(14	)
Net periodic benefit cost	$	3,554		$	89		$	52		$	174		$	60		$	173		$	340	$	65		$	61

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
2020	$	1,027	$	45	$	87
2021		971		46		98
2022		1,051		47		109
2023		1,138		55		117
2024		1,230		61		121
2025-2029		7,515		396		473