| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of February 28, 2014 and May 31, 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. | | | | | | | | | | | | | | | | | | | | | | As of February 28, 2014 | | | Fair Value Measurements Using | | Assets/Liabilities at Fair Value | | | (In millions) | | Level 1 | | Level 2 | | Level 3 | | Balance Sheet Classification | ASSETS | | | | | | | | | | | Derivatives: | | | | | | | | | | | Foreign exchange forwards and options(1) | | $ | — |
| | $ | 120 |
| | $ | — |
| | $ | 120 |
| | Other current assets and other long-term assets | Embedded derivatives | | — |
| | 1 |
| | — |
| | 1 |
| | Other current assets | Interest rate swap contracts | | — |
| | 7 |
| | — |
| | 7 |
| | Other long-term assets | Total derivatives | | — |
| | 128 |
| | — |
| | 128 |
| | | Available-for-sale securities: | | | | | | | | | | | U.S. Treasury securities | | — |
| | — |
| | — |
| | — |
| | Cash and equivalents | U.S. Agency securities | | — |
| | — |
| | — |
| | — |
| | Cash and equivalents | Commercial paper and bonds | | — |
| | 150 |
| | — |
| | 150 |
| | Cash and equivalents | Money market funds | | — |
| | 870 |
| | — |
| | 870 |
| | Cash and equivalents | U.S. Treasury securities | | 1,474 |
| | — |
| | — |
| | 1,474 |
| | Short-term investments | U.S. Agency securities | | — |
| | 868 |
| | — |
| | 868 |
| | Short-term investments | Commercial paper and bonds | | — |
| | 823 |
| | — |
| | 823 |
| | Short-term investments | Non-marketable preferred stock | | — |
| | — |
| | 6 |
| | 6 |
| | Other long-term assets | Total available-for-sale securities | | 1,474 |
| | 2,711 |
| | 6 |
| | 4,191 |
| | | TOTAL ASSETS | | $ | 1,474 |
| | $ | 2,839 |
| | $ | 6 |
| | $ | 4,319 |
| | | LIABILITIES | | | | | | | | | | | Derivatives: | | | | | | | | | | | Foreign exchange forwards and options(1) | | $ | — |
| | $ | 116 |
| | $ | — |
| | $ | 116 |
| | Accrued liabilities and other long-term liabilities | Embedded derivatives | | — |
| | 1 |
| | — |
| | 1 |
| | Accrued liabilities | TOTAL LIABILITIES | | $ | — |
| | $ | 117 |
| | $ | — |
| | $ | 117 |
| | |
| | (1) | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the consolidated balance sheets. If the derivative financial instruments had been netted in the consolidated balance sheets, the asset and liability positions each would have been reduced by $70 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of February 28, 2014. |
| | | | | | | | | | | | | | | | | | | | | | As of May 31, 2013 | | | Fair Value Measurements Using | | Assets/Liabilities at Fair Value | | | (In millions) | | Level 1 | | Level 2 | | Level 3 | | Balance Sheet Classification | ASSETS | | | | | | | | | | | Derivatives: | | | | | | | | | | | Foreign exchange forwards and options(1) | | $ | — |
| | $ | 278 |
| | $ | — |
| | $ | 278 |
| | Other current assets and other long-term assets | Interest rate swap contracts | | — |
| | 11 |
| | — |
| | 11 |
| | Other current assets and other long-term assets | Total derivatives | | — |
| | 289 |
| | — |
| | 289 |
| | | Available-for-sale securities: | | | | | | | | | | | U.S. Treasury securities | | 425 |
| | — |
| | — |
| | 425 |
| | Cash and equivalents | U.S. Agency securities(2) | | — |
| | 395 |
| | — |
| | 395 |
| | Cash and equivalents | Commercial paper and bonds(2) | | — |
| | 660 |
| | — |
| | 660 |
| | Cash and equivalents | Money market funds | | — |
| | 836 |
| | — |
| | 836 |
| | Cash and equivalents | U.S. Treasury securities | | 1,583 |
| | — |
| | — |
| | 1,583 |
| | Short-term investments | U.S. Agency securities(2) | | — |
| | 631 |
| | — |
| | 631 |
| | Short-term investments | Commercial paper and bonds(2) | | — |
| | 414 |
| | — |
| | 414 |
| | Short-term investments | Non-marketable preferred stock | | — |
| | — |
| | 5 |
| | 5 |
| | Other long-term assets | Total available-for-sale securities | | 2,008 |
| | 2,936 |
| | 5 |
| | 4,949 |
| | | TOTAL ASSETS | | $ | 2,008 |
| | $ | 3,225 |
| | $ | 5 |
| | $ | 5,238 |
| | | LIABILITIES | | | | | | | | | | | Derivatives: | | | | | | | | | | | Foreign exchange forwards and options(1) | | $ | — |
| | $ | 34 |
| | $ | — |
| | $ | 34 |
| | Accrued liabilities and other long-term liabilities | TOTAL LIABILITIES | | $ | — |
| | $ | 34 |
| | $ | — |
| | $ | 34 |
| | |
| | (1) | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the consolidated balance sheets. If the derivative financial instruments had been netted in the consolidated balance sheets, the asset and liability positions each would have been reduced by $34 million. No material amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2013. |
| | (2) | Amounts have been revised to reflect proper classification between U.S. Agency securities and commercial paper and bonds. |
|
| Available-for-sale Securities |
Short-term investments classified as available-for-sale consist of the following at fair value: | | | | | | | | | | | | As of February 28, | | As of May 31, | (In millions) | | 2014 | | 2013 | Available-for-sale securities: | | | | | U.S. Treasury and Agency | | $ | 2,342 |
| | $ | 2,214 |
| Commercial paper and bonds | | 823 |
| | 414 |
| TOTAL AVAILABLE-FOR-SALE SECURITIES | | $ | 3,165 |
| | $ | 2,628 |
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