SEVERANCE, RESTRUCTURING AND OTHER EMPLOYEE COSTS

12 Months Ended

May 31, 2026

Restructuring and Related Activities [Abstract]

SEVERANCE, RESTRUCTURING AND OTHER EMPLOYEE COSTS


NOTE 18 — SEVERANCE, RESTRUCTURING AND OTHER EMPLOYEE COSTS

Employee severance costs are recognized when a future related expense is considered probable and reasonably estimable. The expected charges are estimates that are subject to a number of assumptions, and actual results may vary from the estimates provided.

2026 SEVERANCE

In fiscal 2026, the Company recognized $385 million of estimated employee severance costs related to organizational changes, of which $231 million were classified within Operating overhead expense and $154 million were classified within Cost of sales on the Consolidated Statements of Income. The majority of these charges were classified within Global Brand Divisions, North America and EMEA.

During fiscal 2026, the Company made cash payments related to employee severance costs of $142 million. As of May 31, 2026, the remaining severance and other employee costs of $243 million are reflected within Accrued liabilities on the Consolidated Balance Sheets, classified within Compensation and benefits, excluding taxes in Note 3 — Accrued Liabilities.

2024 RESTRUCTURING

During fiscal 2024, management streamlined the organization which resulted in a net reduction in the Company's global workforce. In fiscal 2024, the Company recognized restructuring charges of $443 million, all within Corporate, of which $379 million were classified in Operating overhead expense and $64 million were classified in Cost of sales on the Consolidated Statements of Income. The related cash payments were $123 million during fiscal 2024 and $247 million during fiscal 2025.