Retirement Plans (Tables)

12 Months Ended

May 31, 2020

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

	2020		2019		2018
Defined benefit pension plans	$	148	$	111	$	150
Defined contribution plans		574		561		527
Postretirement healthcare plans		85		75		74
Retirement plans MTM loss (gain)		794		3,882		(10	)
	$	1,601	$	4,629	$	741

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

	2020			2019		2018
Discount rate change	$	2,997		$	1,780	$	(613	)
Demographic experience:
Current year actuarial loss		50			739		419
Change in future assumptions		(229	)		887		(37	)
Actual versus expected return on assets		(2,024	)		476		11
Annuity contract purchase		—			—		210
Total MTM loss (gain)	$	794		$	3,882	$	(10	)

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
	2020			2019			2018			2020			2019			2018			2020			2019			2018
Discount rate used to determine benefit obligation		3.14	%		3.85	%		4.27	%		1.79	%		1.92	%		2.37	%		2.95	%		3.70	%		4.33	%
Discount rate used to determine net periodic benefit cost		3.85			4.27			4.08			1.92			2.34			2.43			3.70			4.33			4.32
Rate of increase in future compensation levels used to determine benefit obligation		5.17			5.10			4.43			2.19			2.27			2.26			—			—			—
Rate of increase in future compensation levels used to determine net periodic benefit cost		5.10			4.43			4.47			2.43			2.22			2.42			—			—			—
Expected long-term rate of return on assets		6.75			6.75			6.50			3.26			3.12			3.09			—			—			—
Interest crediting rate used to determine net periodic benefit cost		4.00			4.00			4.00			2.20			2.20			2.20			—			—			—
Interest crediting rate used to determine benefit obligation		4.00			4.00			4.00			2.00			2.20			2.20			—			—			—

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
	2020
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	$	709		3	%	0 - 5%	$	278	$	431
Equities						30 - 50
U.S. large cap equity⁽²⁾		3,070		11				1,172
International equities⁽²⁾		3,314		12				2,738
Global equities⁽²⁾		1,350		5
U.S. SMID cap equity		673		3				673
Fixed income securities						50 - 70
Corporate		7,983		30						7,983
Government⁽²⁾		6,928		26						4,652
Mortgage-backed and other⁽²⁾		634		2						170
Alternative investments⁽²⁾		2,264		8		0 - 15						$	416
Other		53		—				57		(3	)
Total U.S. plan assets	$	26,978		100	%		$	4,918	$	13,233		$	416
Asset Class (International Plans)
Cash and cash equivalents	$	9		1	%		$	9
Equities
International equities⁽²⁾		72		5
Global equities⁽²⁾		218		15
Fixed income securities
Corporate⁽²⁾		342		23
Government⁽²⁾		510		34
Mortgage-backed and other⁽²⁾		188		12				318
Other⁽²⁾		158		10				13	$	63
Total international plan assets	$	1,497		100	%		$	340	$	63

⁽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
	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.}

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
	2020		2019
Balance at beginning of year	$	302	$	209
Actual return on plan assets:
Assets held during current year		19		11
Assets sold during the year		16		13
Purchases, sales and settlements		79		69
Balance at end of year	$	416	$	302

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, 2020 and a statement of the funded status as of May 31, 2020 and 2019 (in millions):

	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2020			2019			2020			2019			2020			2019
Accumulated Benefit Obligation (“ABO”)	$	29,272		$	25,915		$	2,012		$	2,084
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)
PBO/APBO at the beginning of year	$	26,554		$	22,653		$	2,301		$	2,167		$	1,221		$	955
Service cost		768			689			96			94			42			35
Interest cost		1,000			951			43			49			44			40
Actuarial loss (gain)		2,817			3,016			(87	)		127			85			266
Benefits paid		(940	)		(755	)		(41	)		(38	)		(127	)		(123	)
Settlements		—			—			(6	)		(13	)		—			—
Other		—			—			(64	)		(85	)		49			48
PBO/APBO at the end of year	$	30,199		$	26,554		$	2,242		$	2,301		$	1,314		$	1,221
Change in Plan Assets
Fair value of plan assets at the beginning of year	$	23,320		$	22,057		$	1,578		$	1,509		$	—		$	—
Actual return on plan assets		3,530			984			146			94			—			—
Company contributions		1,068			1,034			86			91			77			73
Benefits paid		(940	)		(755	)		(41	)		(38	)		(127	)		(123	)
Settlements		—			—			(6	)		(13	)		—			—
Other		—			—			(50	)		(65	)		50			50
Fair value of plan assets at the end of year	$	26,978		$	23,320		$	1,713		$	1,578		$	—		$	—
Funded Status of the Plans	$	(3,221	)	$	(3,234	)	$	(529	)	$	(723	)	$	(1,314	)	$	(1,221	)
Amount Recognized in the Balance Sheet at May 31:
Noncurrent asset	$	—		$	—		$	142		$	82		$	—		$	—
Current pension, postretirement healthcare and other benefit obligations		(38	)		(70	)		(17	)		(16	)		(104	)		(87	)
Noncurrent pension, postretirement healthcare and other benefit obligations		(3,183	)		(3,164	)		(654	)		(789	)		(1,210	)		(1,134	)
Net amount recognized	$	(3,221	)	$	(3,234	)	$	(529	)	$	(723	)	$	(1,314	)	$	(1,221	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:
Prior service (credit) cost and other	$	(68	)	$	(173	)	$	(7	)	$	(6	)	$	1		$	1

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
2020
Qualified	$	30,004	$	26,978	$	(3,026	)
Nonqualified		195		—		(195	)
International Plans		2,242		1,713		(529	)
Total	$	32,441	$	28,691	$	(3,750	)
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	)

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
	2020			2019
U.S. Pension Benefits
Fair value of plan assets	$	26,978		$	23,320
PBO		(30,199	)		(26,554	)
Net funded status	$	(3,221	)	$	(3,234	)
International Pension Benefits
Fair value of plan assets	$	205		$	1,125
PBO		(876	)		(1,929	)
Net funded status	$	(671	)	$	(804	)

	ABO Exceeds the Fair Value of Plan Assets
	2020			2019
U.S. Pension Benefits
ABO⁽¹⁾	$	(29,272	)	$	(25,915	)
Fair value of plan assets		26,978			23,320
PBO		(30,199	)		(26,554	)
Net funded status	$	(3,221	)	$	(3,234	)
International Pension Benefits
ABO⁽¹⁾	$	(637	)	$	(1,709	)
Fair value of plan assets		175			1,120
PBO		(840	)		(1,925	)
Net funded status	$	(665	)	$	(805	)

⁽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):

	2020		2019
Required	$	—	$	—
Voluntary		1,000		1,000
	$	1,000	$	1,000

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
	2020			2019			2018			2020			2019			2018			2020		2019		2018
Service cost	$	768		$	689		$	679		$	96		$	94		$	97		$	42	$	35	$	36
Interest cost		1,000			951			1,115			43			49			49			44		40		39
Expected return on plan assets		(1,601	)		(1,505	)		(1,624	)		(52	)		(47	)		(46	)		—		—		—
Amortization of prior service credit		(105	)		(118	)		(118	)		(2	)		(2	)		(2	)		—		—		(1	)
Actuarial losses (gains) and other		888			3,537			37			(179	)		80			(38	)		85		265		(9	)
Net periodic benefit cost	$	950		$	3,554		$	89		$	(94	)	$	174		$	60		$	171	$	340	$	65

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
2021	$	1,008	$	50	$	104
2022		1,093		46		113
2023		1,154		51		121
2024		1,242		57		126
2025		1,331		62		120
2026-2030		7,967		414		433