Fair Value Measurements (Tables)

9 Months Ended

Feb. 28, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of February 28, 2019 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2019
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments
Cash	$	540	$	540	$	—
Level 1:
U.S. Treasury securities	417		100		317
Level 2:
Commercial paper and bonds	31		1		30
Money market funds	1,379		1,379		—
Time deposits	1,678		1,675		3
U.S. Agency securities	1		—		1
Total Level 2:	3,089		3,055		34
TOTAL	$	4,046	$	3,695	$	351



	As of May 31, 2018
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments
Cash	$	415	$	415	$	—
Level 1:
U.S. Treasury securities	1,178		500		678
Level 2:
Commercial paper and bonds	451		153		298
Money market funds	2,174		2,174		—
Time deposits	925		907		18
U.S. Agency securities	102		100		2
Total Level 2:	3,652		3,334		318
TOTAL	$	5,245	$	4,249	$	996

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of February 28, 2019 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2019
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	481	$	414	$	67	$	83	$	83	$	—
Embedded derivatives	7		1		6		6		4		2
TOTAL	$	488	$	415	$	73	$	89	$	87	$	2

(1)

If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $82 million as of February 28, 2019. As of that date, the Company had received $137 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of February 28, 2019.



	As of May 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	389	$	237	$	152	$	182	$	182	$	—
Embedded derivatives	11		3		8		8		2		6
TOTAL	$	400	$	240	$	160	$	190	$	184	$	6

(1)

If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2018.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of February 28, 2019 and May 31, 2018. Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	February 28, 2019		May 31, 2018		Balance Sheet Location	February 28, 2019		May 31, 2018
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	343	$	118	Accrued liabilities	$	58	$	156
Foreign exchange forwards and options	Deferred income taxes and other assets	67		152		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		410		270			58		156
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	71		119		Accrued liabilities	25		26
Embedded derivatives	Prepaid expenses and other current assets	1		3		Accrued liabilities	4		2
Foreign exchange forwards and options	Deferred income taxes and other assets	—		—		Deferred income taxes and other liabilities	—		—
Embedded derivatives	Deferred income taxes and other assets	6		8		Deferred income taxes and other liabilities	2		6
Total derivatives not designated as hedging instruments		78		130			31		34
TOTAL DERIVATIVES		$	488	$	400		$	89	$	190