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RISK MANAGEMENT AND DERIVATIVES
 9 Months Ended
Feb. 28, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
RISK MANAGEMENT AND DERIVATIVES
NOTE 8 — RISK MANAGEMENT AND DERIVATIVES
The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. As of and for the three and nine months ended February 28, 2026, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report.
The majority of derivatives outstanding as of February 28, 2026, are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, Chinese Yuan/U.S. Dollar, British Pound/Euro and Japanese Yen/U.S. Dollar currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date.
The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONFEBRUARY 28,MAY 31,
(Dollars in millions)
20262025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$104 $75 
Foreign exchange forwards and optionsDeferred income taxes and other assets25 22 
Interest rate swaps
Deferred income taxes and other assets
85 24 
Total derivatives formally designated as hedging instruments214 121 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets36 10 
Total derivatives not designated as hedging instruments36 10 
TOTAL DERIVATIVE ASSETS$250 $131 
DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONFEBRUARY 28,MAY 31,
(Dollars in millions)
20262025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$354 $216 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities97 142 
Interest rate swaps
Deferred income taxes and other liabilities
— 3 
Total derivatives formally designated as hedging instruments451 361 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities22 10 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities1 — 
Total derivatives not designated as hedging instruments23 10 
TOTAL DERIVATIVE LIABILITIES$474 $371 
The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income:

(Dollars in millions)
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1)
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME(1)
THREE MONTHS ENDED FEBRUARY 28,LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME		THREE MONTHS ENDED FEBRUARY 28,
2026202520262025
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options$(8)$(30)Revenues$3 $(25)
Foreign exchange forwards and options(190)180 Cost of sales(8)67 
Foreign exchange forwards and options(58)66 Other (income) expense, net(20)57 
Interest rate swaps(2)
— — Interest (income) expense, net(2)(2)
TOTAL DESIGNATED CASH FLOW HEDGES $(256)$216 $(27)$97 
(1)For the three months ended February 28, 2026 and 2025, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.
(2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest (income) expense, net over the term of the issued debt.

(Dollars in millions)
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1)
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME(1)
NINE MONTHS ENDED FEBRUARY 28,LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME		NINE MONTHS ENDED FEBRUARY 28,
2026202520262025
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options$39 $(103)Revenues$(1)$(70)
Foreign exchange forwards and options(151)478 Cost of sales42 187 
Foreign exchange forwards and options(51)194 Other (income) expense, net(53)102 
Interest rate swaps(2)
— — Interest (income) expense, net(5)(6)
TOTAL DESIGNATED CASH FLOW HEDGES $(163)$569 $(17)$213 
(1)For the nine months ended February 28, 2026 and 2025, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.
(2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest (income) expense, net over the term of the issued debt.
AMOUNT OF GAIN (LOSS) RECOGNIZED
IN INCOME ON DERIVATIVES		LOCATION OF GAIN (LOSS)
RECOGNIZED IN INCOME
ON DERIVATIVES
THREE MONTHS ENDED FEBRUARY 28,NINE MONTHS ENDED FEBRUARY 28,
(Dollars in millions)
2026202520262025
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options$(61)$3 $(41)$9 Other (income) expense, net
CASH FLOW HEDGES
The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was approximately $17.2 billion and $18.4 billion as of February 28, 2026 and May 31, 2025, respectively. Approximately $222 million of deferred net losses (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) as of February 28, 2026, are expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income. Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts currently outstanding mature. As of February 28, 2026, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 33 months.
FAIR VALUE HEDGES
The total notional amount of outstanding interest rate swap contracts designated as fair value hedges was $2.4 billion as of February 28, 2026 and May 31, 2025, respectively.
UNDESIGNATED DERIVATIVE INSTRUMENTS
The total notional amount of outstanding undesignated derivative instruments was $5.3 billion and $4.0 billion as of February 28, 2026 and May 31, 2025, respectively.
CREDIT RISK
As of February 28, 2026, the Company was in compliance with all credit risk-related contingent features and considers the impact of the risk of counterparty default to be immaterial. For additional information related to the Company's derivative financial instruments and collateral, refer to Note 3 — Fair Value Measurements.