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PART II
NOTE 6 — Fair Value Measurements
The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2013 and
2012, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Refer to Note 1 – Summary of
Significant Accounting Policies for additional detail regarding the Company’s fair value measurement methodology.
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 $ — $ 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 — 20 — 20 Cash and equivalents
Commercial paper and bonds — 1,035 — 1,035 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 — 401 — 401 Short-term investments
Commercial paper and bonds — 644 — 644 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 $ — $ 34 $ — $ 34 Accrued liabilities and other long-term liabilities
TOTAL LIABILITIES $—$34$—$ 34
As of May 31, 2012
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 $ — $ 265 $ — $ 265 Other current assets and other long-term assets
Embedded derivatives — 1 — 1 Other current assets
Interest rate swap contracts — 15 — 15 Other current assets and other long-term assets
Total derivatives — 281 — 281
Available-for-sale securities:
U.S. Treasury securities 226 — — 226 Cash and equivalents
U.S. Agency securities — 254 — 254 Cash and equivalents
Commercial paper and bonds — 159 — 159 Cash and equivalents
Money market funds — 770 — 770 Cash and equivalents
U.S. Treasury securities 927 — — 927 Short-term investments
U.S. Agency securities — 230 — 230 Short-term investments
Commercial paper and bonds — 283 — 283 Short-term investments
Non-marketable preferred stock — — 3 3 Other long-term assets
Total available-for-sale securities 1,153 1,696 3 2,852
TOTAL ASSETS $ 1,153 $ 1,977 $ 3 $ 3,133
LIABILITIES
Derivatives:
Foreign exchange forwards and options $ — $ 55 $ — $ 55 Accrued liabilities and other long-term liabilities
TOTAL LIABILITIES $—$55$—$ 55
100