v3.26.1
RISK MANAGEMENT AND DERIVATIVES (Tables)
 12 Months Ended
May 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
MAY 31, 2026
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$184 $140 $44 $333 $271 $62 
Interest rate swaps(1)
6 — 6 10 — 10 
TOTAL
$190 $140 $50 $343 $271 $72 
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $175 million as of May 31, 2026. As of that date, the Company posted $119 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.
MAY 31, 2025
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$107 $85 $22 $368 $226 $142 
Interest rate swaps(1)
24 — 24 3 — 3 
TOTAL
$131 $85 $46 $371 $226 $145 
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $131 million as of May 31, 2025. As of that date, the Company posted $166 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.
The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20262025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$111 $75 
Foreign exchange forwards and optionsDeferred income taxes and other assets44 22 
Interest rate swaps
Deferred income taxes and other assets
6 24 
Total derivatives formally designated as hedging instruments161 121 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options
Prepaid expenses and other current assets29 10 
Total derivatives not designated as hedging instruments29 10 
TOTAL DERIVATIVE ASSETS$190 $131 
 DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20262025
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$253 $216 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities62 142 
Interest rate swapsDeferred income taxes and other liabilities10 3 
Total derivatives formally designated as hedging instruments325 361 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options
Accrued liabilities18 10 
Total derivatives not designated as hedging instruments18 10 
TOTAL DERIVATIVE LIABILITIES$343 $371 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2026, 2025 and 2024:

(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)
YEAR ENDED MAY 31,LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME		YEAR ENDED MAY 31,
202620252024202620252024
Derivatives designated as
cash flow hedges:
Foreign exchange forwards
and options
$9 $(67)$(66)Revenues$— $(93)$(24)
Foreign exchange forwards
and options
(51)(55)231 Cost of sales20 295 294 
Foreign exchange forwards
and options
— 1 3 Demand creation expense1 1 2 
Foreign exchange forwards
and options
(14)(6)102 Other (income) expense, net(68)145 204 
Interest rate swaps(2)
— — — Interest (income) expense, net(6)(8)(8)
TOTAL DESIGNATED CASH FLOW HEDGES
$(56)$(127)$270 $(53)$340 $468 
(1)For the fiscal years ended May 31, 2026, 2025 and 2024, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.
(2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest (income) expense, net over the term of the issued debt.
AMOUNT OF GAIN (LOSS) RECOGNIZED
IN INCOME ON DERIVATIVES
LOCATION OF GAIN (LOSS)
RECOGNIZED IN INCOME
ON DERIVATIVES
YEAR ENDED MAY 31,
(Dollars in millions)
202620252024
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivatives$(35)$2 $24 Other (income) expense, net