Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2012

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

The following table presents the fair values of derivative instruments included within the consolidated balance sheets as of May 31, 2012 and 2011:

	Asset Derivatives						Liability Derivatives
(In millions)	Balance Sheet Location		May 31, 2012		May 31, 2011		Balance Sheet Location		May 31, 2012		May 31, 2011
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options		Prepaid expenses and other current assets	$	203	$	22		Accrued liabilities	$	35	$	170
Interest rate swap contracts		Prepaid expenses and other current assets		0		0		Accrued liabilities		0		0
Foreign exchange forwards and options		Deferred income taxes and other long-term assets		7		7		Deferred income taxes and other long-term liabilities		0		10
Interest rate swap contracts		Deferred income taxes and other long-term assets		15		15		Deferred income taxes and other long-term liabilities		0		0
Total derivatives formally designated as hedging instruments				225		44				35		180
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options		Prepaid expenses and other current assets	$	55	$	9		Accrued liabilities	$	20	$	16
Embedded derivatives		Prepaid expenses and other current assets		1		0		Accrued liabilities		0		0
Foreign exchange forwards and options		Deferred income taxes and other long-term assets		0		0		Deferred income taxes and other long-term liabilities		0		1
Total derivatives not designated as hedging instruments				56		9				20		17
TOTAL DERIVATIVES			$	281	$	53			$	55	$	197

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the consolidated statements of income for years ended May 31, 2012, 2011 and 2010:

Derivatives formally designated (In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives(1)									Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1)
	Year Ended May 31,									Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income Into Income(1)		Year Ended May 31,
	2012			2011			2010					2012			2011			2010
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(29	)	$	(87	)	$	(30	)		Revenue	$	5		$	(30	)	$	51
Foreign exchange forwards and options		253			(152	)		89			Cost of sales		(57	)		103			60
Foreign exchange forwards and options		3			(4	)		5			Selling and administrative expense		(2	)		1			1
Foreign exchange forwards and options		36			(65	)		51			Other expense (income), net		(9	)		34			56
Total designated cash flow hedges	$	263		$	(308	)	$	115				$	(63	)	$	108		$	168
Derivatives designated as net investment hedges:
Foreign exchange forwards and options	$	45		$	(85	)	$	66			Other expense (income), net	$	0		$	0		$	0

(1) For the years ended May 31, 2012, 2011, and 2010, the amounts recorded in other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

	Amount of Gain (Loss) Recognized in Income on Derivatives								Location of Gain (Loss) Recognized in Income on Derivatives
	Year Ended May 31,
(In millions)	2012		2011			2010
Derivatives designated as fair value hedges:
Interest rate swaps(1)	$	6	$	6		$	7			Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options		64		(30	)		(91	)		Other expense (income), net
Embedded derivatives	$	1	$	0		$	0			Other expense (income), net

(1) All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.