FEDEX CORP, 10-K filed on 7/16/2019
Annual Report
v3.19.2
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
May 31, 2019
Jul. 12, 2019
Nov. 30, 2018
Document And Entity Information [Abstract]      
Document Type 10-K    
Document Period End Date May 31, 2019    
Amendment Flag false    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Registrant Name FedEx Corporation    
Entity Central Index Key 0001048911    
Current Fiscal Year End Date --05-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Public Float     $ 55.2
Entity Common Stock, Shares Outstanding   260,808,410  
Trading Symbol FDX    
v3.19.2
Consolidated Balance Sheets - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
CURRENT ASSETS    
Cash and cash equivalents $ 2,319 $ 3,265
Receivables, less allowances of $300 and $401 9,116 8,481
Spare parts, supplies and fuel, less allowances of $335 and $268 553 525
Prepaid expenses and other 1,098 1,070
Total current assets 13,086 13,341
PROPERTY AND EQUIPMENT, AT COST    
Aircraft and related equipment 22,793 20,749
Package handling and ground support equipment 10,409 9,727
Information technology 6,268 5,794
Vehicles and trailers 8,339 7,708
Facilities and other 11,702 11,143
Gross property and equipment 59,511 55,121
Less accumulated depreciation and amortization 29,082 26,967
Net property and equipment 30,429 28,154
OTHER LONG-TERM ASSETS    
Goodwill 6,884 6,973
Other assets 4,004 3,862
Total other long-term assets 10,888 10,835
ASSETS [1] 54,403 52,330
CURRENT LIABILITIES    
Current portion of long-term debt 964 1,342
Accrued salaries and employee benefits 1,741 2,177
Accounts payable 3,030 2,977
Accrued expenses 3,278 3,131
Total current liabilities 9,013 9,627
LONG-TERM DEBT, LESS CURRENT PORTION 16,617 15,243
OTHER LONG-TERM LIABILITIES    
Deferred income taxes 2,821 2,867
Pension, postretirement healthcare and other benefit obligations 5,095 2,187
Self-insurance accruals 1,899 1,784
Deferred lease obligations 531 551
Deferred gains, principally related to aircraft transactions 99 121
Other liabilities 571 534
Total other long-term liabilities 11,016 8,044
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of May 31, 2019 and 2018 32 32
Additional paid-in capital 3,231 3,117
Retained earnings 24,648 24,823
Accumulated other comprehensive loss (865) (578)
Treasury stock, at cost (9,289) (7,978)
Total common stockholders’ investment 17,757 19,416
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 54,403 $ 52,330
[1] Segment assets include intercompany receivables.
v3.19.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
CURRENT ASSETS    
Allowances for receivables $ 300 $ 401
Allowances for spare parts, supplies and fuel $ 335 $ 268
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 800,000,000 800,000,000
Common stock, shares issued 318,000,000 318,000,000
v3.19.2
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Income Statement [Abstract]      
REVENUES [1] $ 69,693 $ 65,450 [2] $ 60,319 [2]
OPERATING EXPENSES:      
Salaries and employee benefits 24,776 23,795 21,989
Purchased transportation $ 16,654 $ 15,101 $ 13,630
Type of cost, good or service [extensible list] us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees $ 3,360 $ 3,361 $ 3,240
Depreciation and amortization 3,353 3,095 2,995
Fuel 3,889 3,374 2,773
Maintenance and repairs 2,834 2,622 2,374
Business realignment costs 320    
Goodwill and other asset impairment charges   380  
Other 10,041 9,450 8,752
OPERATING EXPENSES 65,227 61,178 55,753
OPERATING INCOME 4,466 [3] 4,272 [4] 4,566 [5]
OTHER (EXPENSE) INCOME:      
Interest expense (588) (558) (512)
Interest income 59 48 33
Other retirement plans (expense) income (3,251) 598 471
Other, net (31) (7) 21
OTHER INCOME (EXPENSE) (3,811) 81 13
INCOME BEFORE INCOME TAXES 655 4,353 4,579
PROVISION FOR INCOME TAXES (BENEFIT) 115 (219) 1,582
NET INCOME $ 540 $ 4,572 $ 2,997
BASIC EARNINGS PER COMMON SHARE $ 2.06 $ 17.08 $ 11.24
DILUTED EARNINGS PER COMMON SHARE $ 2.03 $ 16.79 $ 11.07
[1] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[2] Prior year amounts have been revised to conform to the current year presentation.
[3] Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[4] Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.
[5] Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.
v3.19.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
 [1],[2]
Feb. 28, 2019
 [1],[2]
Nov. 30, 2018
 [1],[2]
Aug. 31, 2018
 [1],[2]
May 31, 2018
 [3],[4]
Feb. 28, 2018
 [3],[4]
Nov. 30, 2017
 [3],[4]
Aug. 31, 2017
 [3],[4]
May 31, 2019
May 31, 2018
May 31, 2017
Statement Of Income And Comprehensive Income [Abstract]                      
NET INCOME $ (1,969) $ 739 $ 935 $ 835 $ 1,127 $ 2,074 $ 775 $ 596 $ 540 $ 4,572 $ 2,997
OTHER COMPREHENSIVE LOSS:                      
Foreign currency translation adjustments, net of tax benefit of $29 in 2019, tax expense of $16 in 2018 and tax expense of $52 in 2017                 (195) (74) (171)
Amortization of prior service credit and other, net of tax benefits of $28 in 2019, $37 in 2018 and $43 in 2017                 (92) (89) (75)
Other comprehensive income (loss)                 (287) (163) (246)
COMPREHENSIVE INCOME                 $ 253 $ 4,409 $ 2,751
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[3] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
[4] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
v3.19.2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Other Comprehensive Income, Tax Amounts      
Foreign currency translation adjustments, tax expense (benefit) $ (29) $ 16 $ 52
Amortization of prior service credit and other, tax expense/benefit $ 28 $ 37 $ 43
v3.19.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
OPERATING ACTIVITIES      
Net income $ 540 $ 4,572 $ 2,997
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 3,353 3,095 2,995
Provision for uncollectible accounts 295 246 136
Deferred income taxes and other noncash items (233) (231) 909
Stock-based compensation 174 167 154
Retirement plans mark-to-market adjustment 3,882 (10) (24)
Gain from sale of business (8) (85)  
Gain from sale of investment     (35)
Business realignment costs 101    
Goodwill and other asset impairment charges   380  
Changes in assets and liabilities:      
Receivables (873) (1,049) (556)
Other current assets (25) (135) 78
Pension and postretirement healthcare assets and liabilities, net (909) (2,345) (1,688)
Accounts payable and other liabilities (571) 141 103
Other, net (113) (72) (139)
Cash provided by operating activities 5,613 4,674 4,930
INVESTING ACTIVITIES      
Capital expenditures (5,490) (5,663) (5,116)
Business acquisitions, net of cash acquired (66) (179)  
Proceeds from sale of business   123  
Proceeds from asset dispositions and other 83 42 135
Cash used in investing activities (5,473) (5,677) (4,981)
FINANCING ACTIVITIES      
Principal payments on debt (1,436) (38) (82)
Proceeds from debt issuances 2,463 1,480 1,190
Proceeds from stock issuances 101 327 337
Dividends paid (683) (535) (426)
Purchase of treasury stock (1,480) (1,017) (509)
Other, net (4) 10 18
Cash (used in) provided by financing activities (1,039) 227 528
Effect of exchange rate changes on cash (47) 72 (42)
Net (decrease) increase in cash and cash equivalents (946) (704) 435
Cash and cash equivalents at beginning of period 3,265 3,969 3,534
Cash and cash equivalents at end of period $ 2,319 $ 3,265 $ 3,969
v3.19.2
Consolidated Statements of Changes in Common Stockholders' Investment - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Aug. 31, 2018
May 31, 2018
Aug. 31, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Beginning balance   $ 19,416   $ 16,073 $ 19,416 $ 16,073 $ 13,784
Net income $ (1,969) [1],[2] 835 [1],[2] $ 1,127 [3],[4] 596 [3],[4] 540 4,572 2,997
Other comprehensive loss, net of tax         (287) (163) (246)
Purchase of treasury stock         (1,480) (1,017) (509)
Cash dividends declared         (683) (535) (426)
Employee incentive plans and other         251 486 473
Ending balance 17,757   19,416   17,757 19,416 16,073
Common Stock              
Beginning balance   32   32 32 32 32
Ending balance 32   32   32 32 32
Additional Paid-In Capital              
Beginning balance   3,117   3,005 3,117 3,005 2,892
Employee incentive plans and other         114 112 113
Ending balance 3,231   3,117   3,231 3,117 3,005
Retained Earnings              
Beginning balance   24,823   20,833 24,823 20,833 18,371
Net income         540 4,572 2,997
Cash dividends declared         (683) (535) (426)
Employee incentive plans and other         (32) (47) (109)
Ending balance 24,648   24,823   24,648 24,823 20,833
Accumulated Other Comprehensive Loss              
Beginning balance   (578)   (415) (578) (415) (169)
Other comprehensive loss, net of tax         (287) (163) (246)
Ending balance (865)   (578)   (865) (578) (415)
Treasury Stock              
Beginning balance   $ (7,978)   $ (7,382) (7,978) (7,382) (7,342)
Purchase of treasury stock         (1,480) (1,017) (509)
Employee incentive plans and other         169 421 469
Ending balance $ (9,289)   $ (7,978)   $ (9,289) $ (7,978) $ (7,382)
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[3] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
[4] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
v3.19.2
Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Statement Of Stockholders Equity [Abstract]      
Other comprehensive loss, tax $ (57) $ (21) $ (9)
Purchase of treasury stock 6,600,000 4,300,000 3,000,000
Cash dividends declared, per share $ 2.60 $ 2.00 $ 1.60
Employee incentive plans and other, shares issued 1,300,000 3,100,000 3,500,000
v3.19.2
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
May 31, 2019
Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies

NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are Federal Express Corporation (“FedEx Express”), the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight Corporation (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), constitute our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments (FedEx Express, FedEx Ground and FedEx Freight) and other business units. In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”).

FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2019 or ended May 31 of the year referenced.

RECLASSIFICATIONS. Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year’s presentation.

PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity.

REVENUE RECOGNITION. 

Satisfaction of Performance Obligation

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with U.S. generally accepted accounting principles (“GAAP”). To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our contracts, the customer contracts with us to provide distinct services within a single contract, such as transportation services. The majority of our contracts with customers for transportation services include only one performance obligation, the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price.

For transportation services, revenue is recognized over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. If we were unable to complete delivery to the final location, another entity would not need to reperform the transportation service already performed. As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including ancillary or accessorial fees and reductions for estimated customer incentives, are recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer.

We also provide customized customer-specific solutions, such as supply chain management solutions and inventory and service parts logistics, through which we provide the service of integrating a complex set of tasks and components into a single capability. For these arrangements, the majority of which are conducted by our FedEx Logistics, Inc. (“FedEx Logistics” (formerly FedEx Trade Networks, Inc.)) operating segment, the entire contract is accounted for as one performance obligation. For these performance obligations, we typically have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer.

Contract Modification

Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new enforceable rights and obligations or alters the existing arrangement. Contract modifications that add distinct goods or services are treated as separate performance obligations. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are executed.

Variable Consideration

Certain contracts contain customer incentives, guaranteed service refunds and other provisions that can either increase or decrease the transaction price. These incentives are generally awarded based upon achieving certain performance metrics. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current and forecasted) that is reasonably available to us.

Principal vs. Agent Considerations

Transportation services are provided with the use of employees and independent businesses that contract with FedEx. GAAP requires us to evaluate whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. Based on our evaluation of the control model, we determined that FedEx is the principal to the transaction for most of these services and revenue is recognized on a gross basis based on the transfer of control to the customer. Costs associated with independent businesses providing transportation services are recognized as incurred and included in the caption “Purchased transportation” in the consolidated statements of income.

Our contract logistics, global trade services and certain transportation businesses engage in certain transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions and taxes and duties.

Contract Assets and Liabilities

Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions.

Gross contract assets related to in-transit packages totaled $533 million and $542 million at May 31, 2019 and May 31, 2018, respectively. Contract assets net of deferred unearned revenue were $364 million and $363 million at May 31, 2019 and May 31, 2018, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $11 million and $13 million at May 31, 2019 and May 31, 2018, respectively. Contract liabilities are included within current liabilities in the accompanying consolidated balance sheets.

Payment terms

Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.

Disaggregation of Revenue

See Note 14 for disclosure of disaggregated revenues for the periods ended May 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.

CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic conditions. Historically, credit losses have been within management’s expectations.

ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $468 million in 2019, $442 million in 2018 and $458 million in 2017.

CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value.

SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost.

PROPERTY AND EQUIPMENT. Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal.

For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable.

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2019

 

 

2018

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

11,975

 

 

$

10,463

 

Narrow-body and feeder aircraft and related equipment

 

5 to 18 years

 

 

2,696

 

 

 

2,908

 

Package handling and ground support equipment

 

3 to 30 years

 

 

4,157

 

 

 

4,028

 

Information technology

 

2 to 10 years

 

 

1,553

 

 

 

1,277

 

Vehicles and trailers

 

3 to 15 years

 

 

4,042

 

 

 

3,747

 

Facilities and other

 

2 to 40 years

 

 

6,006

 

 

 

5,731

 

 

Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment. 

Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $3.4 billion in 2019, $3.1 billion in 2018 and $2.9 billion in 2017. Depreciation and amortization expense includes amortization of assets under capital lease.

CAPITALIZED INTEREST. Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $64 million in 2019, $61 million in 2018 and $41 million in 2017.

IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment.

In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2019, we had seven aircraft temporarily idled. These aircraft have been idled for an average of 23 months and are expected to return to revenue service.

SALE OF BUSINESS. On April 30, 2018, we sold a non-core business of TNT Express B.V. (“TNT Express”) and recorded a gain of $85 million in the FedEx Express segment.

GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized.

PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate.

The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” or MTM accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis.

INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets that are not subject to valuation allowances.

We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision.

We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets.

SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

LEASES. We lease certain aircraft, facilities, equipment and vehicles and trailers under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term.

DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions.

DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them.

When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge.

If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow or net investment hedge for any period presented. Accordingly, additional disclosures about these types of financial instruments are excluded from this report.

For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in AOCI at that time remain there until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in AOCI are immediately recognized in the income statement. The financial statement impact of derivative transactions was immaterial for each period presented. Accordingly, additional disclosures have been excluded from this report.

FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of AOCI within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented.

EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of FedEx Express, who are a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. The collective bargaining agreement is scheduled to become amendable in November 2021. Other than the pilots at FedEx Express and drivers at one FedEx Freight facility, our U.S. employees have thus far chosen not to unionize (we acquired FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain”) in 2015, which already had a small number of employees that are members of unions). Additionally, certain of FedEx Express’s non-U.S. employees are unionized, and a union has been certified to represent owner-drivers at a FedEx Freight Canada, Corp. facility.

STOCK-BASED COMPENSATION. The accounting guidance related to share-based payments requires recognition of compensation expense for stock-based awards using a fair value method. We use the Black-Scholes option pricing model to calculate the fair value of stock options. The value of restricted stock awards is based on the stock price of the award on the grant date. We record stock-based compensation expense in the “Salaries and employee benefits” caption in the accompanying consolidated statements of income. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants.

TREASURY SHARES. In January 2016, our Board of Directors authorized a stock repurchase program of up to 25 million shares. During 2019, we repurchased 6.6 million shares of FedEx common stock at an average price of $222.94 per share for a total of $1.5 billion. As of May 31, 2019, 5.1 million shares remained under the stock repurchase authorization. Shares under the current repurchase program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock and general market conditions. No time limit was set for the completion of the program, and the program may be suspended or discontinued at any time.

In 2018, we repurchased 4.3 million shares of FedEx common stock at an average price of $237.45 per share for a total of $1.0 billion. In 2017, we repurchased 3.0 million shares of FedEx common stock at an average price of $172.13 per share for a total of $509 million. 

DIVIDENDS DECLARED PER COMMON SHARE. On June 10, 2019, our Board of Directors declared a quarterly dividend of $0.65 per share of common stock. The dividend was paid on July 8, 2019 to stockholders of record as of the close of business on June 24, 2019. Each quarterly dividend payment is subject to review and approval by our Board of Directors, and we evaluate our dividend payment amount on an annual basis at the end of each fiscal year. There are no material restrictions on our ability to declare dividends, nor are there any material restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances.

BUSINESS REALIGNMENT COSTS. In December 2018, we announced cost-reduction programs primarily through initiatives at FedEx Services and FedEx Express in response to current business and economic conditions that included the following:

 

•

A U.S.-based voluntary employee buyout program for eligible employees;

 

•

Limited hiring in staff functions; and

 

•

Reductions in discretionary spending.

During 2019, we conducted a program to offer voluntary cash buyouts to eligible U.S.-based employees in certain staff functions. The U.S.-based voluntary employee buyout program includes voluntary severance payments and funding to healthcare reimbursement accounts, with the voluntary severance payment calculated based on four weeks of gross base salary for every year of continuous service up to a maximum payment of two years of pay. This program was completed in the fourth quarter of 2019, and approximately 1,500 employees have left or will be leaving during 2020. Costs of the benefits provided under the U.S.-based voluntary employee buyout program were recognized as special termination benefits in the period that eligible employees accepted their offers.

We incurred costs of $320 million ($243 million, net of tax, or $0.91 per diluted share) during 2019 associated with our business realignment activities. These costs related primarily to severance for employees who accepted voluntary buyouts in the third and fourth quarters of 2019. Payments are made at the time of departure. Approximately $220 million was paid under this program during 2019. The cost of the U.S.-based voluntary employee buyout program is included in the caption “Business realignment costs” in our consolidated statements of income. Also included in that caption are other incremental, external costs directly attributable to our business realignment activities, such as professional fees.

USE OF ESTIMATES. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations.

v3.19.2
Recent Accounting Guidance
 12 Months Ended
May 31, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
Recent Accounting Guidance

NOTE 2: RECENT ACCOUNTING GUIDANCE

New accounting rules and disclosure requirements can significantly impact our reported results and the comparability of our financial statements. We believe the following new accounting guidance is relevant to the readers of our financial statements.

Recently Adopted Accounting Standards

In 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board issued a new accounting standard that supersedes virtually all existing revenue recognition guidance under GAAP. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five-step approach for the recognition of revenue. We adopted this standard as of June 1, 2018 (fiscal 2019) using the modified retrospective method of adoption as permitted by the standard. The new guidance did not have an impact on our revenue recognition policies, practices or systems; therefore, there was no cumulative-effect adjustment to retained earnings as of June 1, 2018.

In March 2017, the FASB issued an Accounting Standards Update (ASU 2017-07) that changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. This new guidance requires entities to report the service cost component in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component outside of income from operations. This standard impacts our operating income but has no impact on our net income or earnings per share. We adopted this standard effective June 1, 2018 (fiscal 2019) and applied these changes retrospectively. As such, prior year financial results are recast to conform to these new rules.

The following table presents our results under our historical method of accounting and as adjusted to reflect our adoption of ASU 2017-07 (in millions):

 

 

May 31, 2018

 

 

May 31, 2017

 

 

 

Reported

 

 

Effect of Adoption of ASU 2017-07

 

 

As Adjusted

 

 

Reported

 

 

Effect of Adoption of ASU 2017-07

 

 

As Adjusted

 

Revenue

 

$

65,450

 

 

$

—

 

 

$

65,450

 

 

$

60,319

 

 

$

—

 

 

$

60,319

 

Operating income

 

 

4,870

 

 

 

(598

)

 

 

4,272

 

 

 

5,037

 

 

 

(471

)

 

 

4,566

 

Other income (expense), net

 

 

(517

)

 

 

598

 

 

 

81

 

 

 

(458

)

 

 

471

 

 

 

13

 

Net income

 

 

4,572

 

 

 

—

 

 

 

4,572

 

 

 

2,997

 

 

 

—

 

 

 

2,997

 

In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-14) that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant. This new guidance had a minimal impact on our financial reporting. We adopted these new rules in the fourth quarter of 2019 and applied them retrospectively.

New Accounting Standards and Accounting Standards Not Yet Adopted

In 2016, the FASB issued a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. The new standard will also require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements as well as additional information about the amounts recorded in the financial statements.

We are adopting the new leasing standard using a modified retrospective transition method as of the beginning of the period of adoption; therefore, we will not adjust the comparative periods presented but will record a cumulative effect adjustment to retained earnings effective as of June 1, 2019. We will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption and to not separate lease and non-lease components for certain classes of assets. We will make an accounting policy election not to recognize leases with an initial term of 12 months or less on the consolidated balance sheets.

Based on our lease portfolio, we anticipate recognizing a lease liability and related right-of-use asset on our balance sheet of approximately $14 billion, with an immaterial impact on our income statement compared to the current lease accounting model. In addition, we expect to de-recognize existing deferred gains on sale leasebacks of aircraft of approximately $56 million as a cumulative-effect adjustment to retained earnings effective as of June 1, 2019. The majority of our existing lease arrangements are classified as operating leases, which will continue to be classified as operating under the new standard. In connection with the adoption of these new rules, we implemented changes to our policies, processes, information systems and internal controls to ensure we meet the standard’s reporting and disclosure requirements.

In June 2016, the FASB issued an Accounting Standards Update (ASU 2016-13) that changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. These changes will be effective June 1, 2020 (fiscal 2021). We are assessing the impact of this new standard on our consolidated financial statements and related disclosures.

In February 2018, the FASB issued an Accounting Standards Update (ASU 2018-02) that will permit companies to reclassify the income tax effect of the Tax Cuts and Jobs Act (“TCJA”) on items within AOCI to retained earnings. We are adopting this standard as of June 1, 2019 (fiscal 2020) and are electing to reclassify these tax effects, which are immaterial to our financial statements.

In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-15) that reduces the complexity for accounting for costs of implementing a cloud computing service arrangement and aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. These changes will be effective June 1, 2020 (fiscal 2021). We are assessing the impact of this new standard on our consolidated financial statements and related disclosures.

v3.19.2
Business Combinations
 12 Months Ended
May 31, 2019
Business Combinations [Abstract]  
Business Combinations

NOTE 3: BUSINESS COMBINATIONS

On May 1, 2019, we acquired the international express division of FC (Flying Cargo) Express Ltd. (“Flying Cargo”) for $67 million in cash from operations. The majority of the purchase price was allocated to goodwill. The financial results of this acquired business are included in the FedEx Express segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided.

On October 1, 2018, we acquired the controlling interest in an existing joint venture with Swiss Post, which operates a Swiss-wide transport system with connections to TNT Express’s global network. The controlling interest was acquired through the noncash contribution of a complementary Swiss business into the venture, resulting in the recognition of an immaterial gain. The majority of the purchase price was allocated to goodwill and other intangibles. The financial results of this acquired business are included in the FedEx Express segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided. 

On March 23, 2018, we acquired P2P Mailing Limited (“P2P”), a leading provider of worldwide, low-cost e-commerce transportation solutions, for £92 million ($135 million) in cash from operations. The majority of the purchase price was allocated to goodwill. The financial results of this acquired business are included in the FedEx Logistics operating segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided.

On October 13, 2017, we acquired Northwest Research, Inc. (“Northwest Research”), a leader in inventory research and management, for $50 million in cash from operations. The majority of the purchase price was allocated to property and equipment. The financial results of this acquired business are included in the FedEx Services segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided.
v3.19.2
Goodwill and Other Intangible Assets
 12 Months Ended
May 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill And Other Intangible Assets

NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):

 

 

 

FedEx Express

Segment

 

 

FedEx Ground

Segment

 

 

FedEx Freight

Segment

 

 

FedEx Services

Segment

 

 

Corporate, Other and Eliminations

 

 

Total

 

Goodwill at May 31, 2017

 

$

4,953

 

 

$

827

 

 

$

764

 

 

$

1,525

 

 

$

395

 

 

$

8,464

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,177

)

 

 

—

 

 

 

(1,310

)

Balance as of May 31, 2017

 

 

4,953

 

 

 

827

 

 

 

631

 

 

 

348

 

 

 

395

 

 

 

7,154

 

Goodwill acquired(1)

 

 

76

 

 

 

14

 

 

 

3

 

 

 

—

 

 

 

32

 

 

 

125

 

Purchase adjustments and other(2)

 

 

71

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

68

 

Impairment charges(3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(374

)

 

 

(374

)

Balance as of May 31, 2018

 

 

5,100

 

 

 

840

 

 

 

634

 

 

 

348

 

 

 

51

 

 

 

6,973

 

Goodwill acquired(4)

 

 

126

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

126

 

Purchase adjustments and other(2)

 

 

(210

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

 

 

(215

)

Balance as of May 31, 2019

 

$

5,016

 

 

$

840

 

 

$

634

 

 

$

348

 

 

$

46

 

 

$

6,884

 

Accumulated goodwill impairment charges

   as of May 31, 2019

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,177

)

 

$

(374

)

 

$

(1,684

)

 

 

(1)

Goodwill acquired relates to the acquisitions of Northwest Research and P2P. See Note 3 for more information.

 

(2)

Primarily purchase price allocation-related adjustments, currency translation adjustments and acquired goodwill related to immaterial acquisitions.

 

(3)

Impairment charges related to the goodwill impairment of FedEx Supply Chain described below.

 

(4)

Goodwill acquired relates to the acquisitions of Flying Cargo and the controlling interest in an existing joint venture with Swiss Post. See Note 3 for more information.

Our reporting units with significant recorded goodwill include FedEx Express, FedEx Ground, FedEx Freight and FedEx Office (reported in the FedEx Services segment). We evaluated these reporting units during the fourth quarter of 2019. The estimated fair value of each of these reporting units exceeded their carrying values in 2019, and we do not believe that any of these reporting units were impaired as of May 31, 2019.

In 2018, we incurred a goodwill impairment charge of $374 million related to FedEx Supply Chain, eliminating substantially all of the goodwill attributable to this reporting unit. In our evaluation of the goodwill of this reporting unit, we compared the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value was estimated using standard valuation methodologies (principally the income and market approach) incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. The key factors contributing to the goodwill impairment were underperformance of the FedEx Supply Chain business during 2018, including base business erosion, and the failure to attain the level of operating synergies and revenue and profit growth anticipated at the time of the acquisition. Based on these factors, our outlook for the business and industry changed in the fourth quarter of 2018. No other impairments of goodwill were recognized during 2019, 2018 or 2017.

OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2019 and 2018 is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

Customer relationships

 

$

685

 

 

$

(293

)

 

$

392

 

 

$

676

 

 

$

(250

)

 

$

426

 

Technology

 

 

66

 

 

 

(51

)

 

 

15

 

 

 

68

 

 

 

(39

)

 

 

29

 

Trademarks and other

 

 

137

 

 

 

(128

)

 

 

9

 

 

 

141

 

 

 

(116

)

 

 

25

 

Total

 

$

888

 

 

$

(472

)

 

$

416

 

 

$

885

 

 

$

(405

)

 

$

480

 

 

Amortization expense for intangible assets was $82 million in 2019, $87 million in 2018 and $91 million in 2017.

Expected amortization expense for the next five years is as follows (in millions):

 

2020

$

64

 

2021

 

52

 

2022

 

45

 

2023

 

43

 

2024

 

42

 

 
v3.19.2
Selected Current Liabilities
 12 Months Ended
May 31, 2019
Accounts Payable And Accrued Liabilities Fair Value Disclosure [Abstract]  
Selected Current Liabilities

NOTE 5: SELECTED CURRENT LIABILITIES

The components of selected current liability captions at May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

Accrued Salaries and Employee Benefits

 

 

 

 

 

 

 

 

Salaries

 

$

425

 

 

$

498

 

Employee benefits, including variable compensation

 

 

552

 

 

 

933

 

Compensated absences

 

 

764

 

 

 

746

 

 

 

$

1,741

 

 

$

2,177

 

Accrued Expenses

 

 

 

 

 

 

 

 

Self-insurance accruals

 

$

1,104

 

 

$

957

 

Taxes other than income taxes

 

 

304

 

 

 

334

 

Other

 

 

1,870

 

 

 

1,840

 

 

 

$

3,278

 

 

$

3,131

 

 
v3.19.2
Long-Term Debt and Other Financing Arrangements
 12 Months Ended
May 31, 2019
Debt And Capital Lease Obligations [Abstract]  
Long-term Debt and Other Financing Arrangements

NOTE 6: LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS

The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2019, are as follows (in millions):

 

 

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Interest Rate%

 

 

Maturity

 

 

 

 

 

 

 

 

Senior unsecured debt:

 

 

8.00

 

 

2019

 

$

—

 

 

$

750

 

 

 

 

2.30

 

 

2020

 

 

400

 

 

 

399

 

 

 

 

3.40

 

 

2022

 

 

497

 

 

 

—

 

 

 

2.625-2.70

 

 

2023

 

 

747

 

 

 

746

 

 

 

 

4.00

 

 

2024

 

 

746

 

 

 

746

 

 

 

 

3.20

 

 

2025

 

 

696

 

 

 

695

 

 

 

 

3.25

 

 

2026

 

 

745

 

 

 

744

 

 

 

 

3.30

 

 

2027

 

 

446

 

 

 

445

 

 

 

 

3.40

 

 

2028

 

 

495

 

 

 

495

 

 

 

 

4.20

 

 

2029

 

 

396

 

 

 

—

 

 

 

 

4.90

 

 

2034

 

 

495

 

 

 

495

 

 

 

 

3.90

 

 

2035

 

 

494

 

 

 

493

 

 

 

3.875-4.10

 

 

2043

 

 

984

 

 

 

983

 

 

 

 

5.10

 

 

2044

 

 

742

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

640

 

 

 

4.55-4.75

 

 

2046

 

 

2,460

 

 

 

2,459

 

 

 

 

4.40

 

 

2047

 

 

735

 

 

 

735

 

 

 

 

4.05

 

 

2048

 

 

986

 

 

 

986

 

 

 

 

4.95

 

 

2049

 

 

835

 

 

 

—

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

floating-rate

 

 

2019

 

 

—

 

 

 

582

 

 

 

 

0.50

 

 

2020

 

 

559

 

 

 

581

 

 

 

 

0.70

 

 

2022

 

 

713

 

 

 

—

 

 

 

 

1.00

 

 

2023

 

 

836

 

 

 

869

 

 

 

 

1.625

 

 

2027

 

 

1,387

 

 

 

1,442

 

Total senior unsecured debt

 

 

 

 

 

 

 

 

17,518

 

 

 

16,510

 

Other debt

 

 

 

 

 

 

 

 

1

 

 

 

4

 

Capital lease obligations

 

 

 

 

 

 

 

 

62

 

 

 

71

 

 

 

 

 

 

 

 

 

 

17,581

 

 

 

16,585

 

Less current portion

 

 

 

 

 

 

 

 

964

 

 

 

1,342

 

 

 

 

 

 

 

 

 

$

16,617

 

 

$

15,243

 

 

Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our euro fixed-rate notes is paid annually. The weighted average interest rate on long-term debt was 3.5% as of May 31, 2019. Long-term debt, including current maturities and exclusive of capital leases, had estimated fair values of $17.8 billion at May 31, 2019 and $16.6 billion at May 31, 2018. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.

We have a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock.

During January 2019, we issued $1.2 billion of senior unsecured debt under our current shelf registration statement, comprised of €640 million of 0.7% fixed-rate notes due in May 2022 and $500 million of 3.4% fixed-rate notes due in January 2022. We used the net proceeds to pay the €500 million aggregate principal amount of floating-rate notes that matured on April 11, 2019, and for general corporate purposes.

During October 2018, we issued $1.25 billion of senior unsecured debt under our current shelf registration statement, comprised of $400 million of 4.20% fixed-rate notes due in October 2028 and $850 million of 4.95% fixed-rate notes due in October 2048. We used the net proceeds to redeem the $750 million aggregate principal amount of 8.00% notes due January 15, 2019, and for general corporate purposes.

During the fourth quarter of 2019, we replaced our $2.0 billion five-year revolving credit facility with a $2.0 billion five-year credit agreement (the “Five-Year Credit Agreement”) and a $1.5 billion 364-day credit agreement (the “364-Day Credit Agreement” and, together with the Five-Year Credit Agreement, the “New Credit Agreements”). The Five-Year Credit Agreement expires in March 2024 and includes a $250 million letter of credit sublimit. The 364-Day Credit Agreement expires in March 2020. The New Credit Agreements are available to finance our operations and other cash flow needs. The New Credit Agreements contain a financial covenant requiring us to maintain a ratio of debt to consolidated earnings (excluding noncash retirement plans MTM adjustments and noncash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 2.25 to 1.0 at May 31, 2019. We believe this covenant is the only significant restrictive covenant in our New Credit Agreements. Our New Credit Agreements contain other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants in our New Credit Agreements and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. If we failed to comply with the financial covenant or any other covenants in our New Credit Agreements, our access to financing could become limited. We had a total of $53 million in letters of credit outstanding at May 31, 2019, with $197 million of the letter of credit sublimit unused under our revolving credit facility.

As of May 31, 2019, no commercial paper was outstanding.
v3.19.2
Leases
 12 Months Ended
May 31, 2019
Leases [Abstract]  
Leases

NOTE 7: LEASES

We utilize certain aircraft, land, facilities, retail locations and equipment under capital and operating leases that expire at various dates through 2051. We leased 6% of our total aircraft fleet under operating leases as of May 31, 2019 and 7% as of May 31, 2018. A portion of our supplemental aircraft are leased by us under agreements that provide for cancellation upon 30 days’ notice. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings.

Rent expense under operating leases for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Minimum rentals

 

$

2,875

 

 

$

2,913

 

 

$

2,814

 

Contingent rentals(1)

 

 

222

 

 

 

194

 

 

 

178

 

 

 

$

3,097

 

 

$

3,107

 

 

$

2,992

 

(1)

Contingent rentals are based on equipment usage.

A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 is as follows (in millions):

 

 

 

Operating Leases

 

 

 

Aircraft

and Related

Equipment

 

 

Facilities

and Other

 

 

Total

Operating

Leases

 

2020

 

$

288

 

 

$

2,209

 

 

$

2,497

 

2021

 

 

230

 

 

 

2,033

 

 

 

2,263

 

2022

 

 

212

 

 

 

1,816

 

 

 

2,028

 

2023

 

 

154

 

 

 

1,625

 

 

 

1,779

 

2024

 

 

58

 

 

 

1,428

 

 

 

1,486

 

Thereafter

 

 

85

 

 

 

7,977

 

 

 

8,062

 

Total

 

$

1,027

 

 

$

17,088

 

 

$

18,115

 

Property and equipment recorded under capital leases and future minimum lease payments under capital leases are immaterial. The weighted-average remaining lease term of all operating leases outstanding at May 31, 2019 was approximately six years. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations.

FedEx Express makes payments under certain leveraged operating leases that are sufficient to pay principal and interest on certain pass-through certificates. The pass-through certificates are not direct obligations of, or guaranteed by, FedEx or FedEx Express.

We are the lessee under certain operating leases covering a portion of our leased aircraft in which the lessors are trusts established specifically to purchase, finance and lease these aircraft to us. These leasing entities are variable interest entities. We are not the primary beneficiary of the leasing entities, as the lease terms are at market at the inception of the lease and do not include a residual value guarantee, fixed-price purchase option or similar feature that obligates us to absorb decreases in value or entitles us to participate in increases in the value of the aircraft. Therefore, we are not required to consolidate any of these entities as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments.

v3.19.2
Preferred Stock
 12 Months Ended
May 31, 2019
Preferred Stock [Abstract]  
Preferred Stock

NOTE 8: PREFERRED STOCK

Our Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 4,000,000 shares of preferred stock. The stock is issuable in series, which may vary as to certain rights and preferences, and has no par value. As of May 31, 2019, none of these shares had been issued.

v3.19.2
Accumulated Other Comprehensive Income
 12 Months Ended
May 31, 2019
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]  
Accumulated Other Comprehensive Income

NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table provides changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

 

2019

 

 

2018

 

 

2017

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(759

)

 

$

(685

)

 

$

(514

)

Translation adjustments

 

 

(195

)

 

 

(74

)

 

 

(171

)

Balance at end of period

 

 

(954

)

 

 

(759

)

 

 

(685

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

181

 

 

 

270

 

 

 

345

 

Prior service credit and other arising during period

 

 

—

 

 

 

(4

)

 

 

1

 

Reclassifications from AOCI

 

 

(92

)

 

 

(85

)

 

 

(76

)

Balance at end of period

 

 

89

 

 

 

181

 

 

 

270

 

Accumulated other comprehensive loss at end of period

 

$

(865

)

 

$

(578

)

 

$

(415

)

 

The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings):

 

 

 

Amount Reclassified from

AOCI

 

 

Affected Line Item in the

Income Statement

 

 

2019

 

 

2018

 

 

2017

 

 

 

Amortization of retirement plans prior service

   credits, before tax

 

$

120

 

 

$

121

 

 

$

120

 

 

Salaries and employee benefits

Income tax benefit

 

 

(28

)

 

 

(36

)

 

 

(44

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

92

 

 

$

85

 

 

$

76

 

 

Net income

 
v3.19.2
Stock-Based Compensation
 12 Months Ended
May 31, 2019
Employee Service Share Based Compensation Aggregate Disclosures [Abstract]  
Stock-Based Compensation

NOTE 10: STOCK-BASED COMPENSATION

Our total stock-based compensation expense for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Stock-based compensation expense

 

$

174

 

 

$

167

 

 

$

154

 

We have two types of equity-based compensation: stock options and restricted stock.

STOCK OPTIONS. Under the provisions of our incentive stock plan, key employees and non-employee directors may be granted options to purchase shares of our common stock at a price not less than its fair market value on the date of grant. Vesting requirements are determined at the discretion of the Compensation Committee of our Board of Directors. Option-vesting periods range from one to four years, with 82% of our options vesting ratably over four years. Compensation expense associated with these awards is recognized on a straight-line basis over the requisite service period of the award.

RESTRICTED STOCK. Under the terms of our incentive stock plan, restricted shares of our common stock are awarded to key employees. All restrictions on the shares expire ratably over a four-year period. Shares are valued at the market price on the date of award. The terms of our restricted stock provide for continued vesting subsequent to the employee’s retirement. Compensation expense associated with these awards is recognized on a straight-line basis over the shorter of the requisite service period or the stated vesting period.

ASSUMPTIONS. The key assumptions for the Black-Scholes valuation method include the expected life of the option, stock price volatility, a risk-free interest rate and dividend yield. The following table includes the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, followed by a discussion of our methodology for developing each of the assumptions used in the valuation model:

 

 

 

2019

 

 

2018

 

 

2017

 

Weighted-average Black-Scholes value

 

$

61.42

 

 

$

55.72

 

 

$

43.99

 

Intrinsic value of options exercised

 

$

122

 

 

$

359

 

 

$

274

 

Black-Scholes Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.5 years

 

 

6.5 years

 

Expected volatility

 

 

21

%

 

 

23

%

 

 

25

%

Risk-free interest rate

 

 

2.94

%

 

 

2.07

%

 

 

1.64

%

Dividend yield

 

 

0.935

%

 

 

0.796

%

 

 

0.719

%

The expected life represents an estimate of the period of time options are expected to remain outstanding, and we examine actual stock option exercises to determine the expected life of the options. Options granted have a maximum term of 10 years. Expected volatilities are based on the actual changes in the market value of our stock and are calculated using daily market value changes from the date of grant over a past period equal to the expected life of the options. The risk-free interest rate is the U.S. Treasury Strip rate posted at the date of grant having a term equal to the expected life of the option. The expected dividend yield is the annual rate of dividends per share over the exercise price of the option.

The following table summarizes information regarding stock option activity for the year ended May 31, 2019:

 

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

(in millions)(1)

 

Outstanding at June 1, 2018

 

 

12,984,917

 

 

$

147.98

 

 

 

 

 

 

 

 

 

Granted

 

 

2,383,158

 

 

 

244.16

 

 

 

 

 

 

 

 

 

Exercised

 

 

(1,112,160

)

 

 

91.01

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(633,400

)

 

 

212.85

 

 

 

 

 

 

 

 

 

Outstanding at May 31, 2019

 

 

13,622,515

 

 

$

166.89

 

 

 

6.1

 

 

$

260

 

Exercisable

 

 

8,344,344

 

 

$

134.70

 

 

 

4.8

 

 

$

260

 

Expected to vest

 

 

4,950,924

 

 

$

217.78

 

 

 

8.3

 

 

$

—

 

Available for future grants

 

 

13,894,509

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only presented for options with market value at May 31, 2019 in excess of the exercise price of the option.

The options granted during 2019 are primarily related to our principal annual stock option grant in June 2018.

The following table summarizes information regarding vested and unvested restricted stock for the year ended May 31, 2019:

 

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Unvested at June 1, 2018

 

 

337,590

 

 

$

185.16

 

Granted

 

 

149,579

 

 

 

253.28

 

Vested

 

 

(153,734

)

 

 

180.65

 

Forfeited

 

 

(8,957

)

 

 

218.08

 

Unvested at May 31, 2019

 

 

324,478

 

 

$

217.76

 

During the year ended May 31, 2018, there were 155,624 shares of restricted stock granted with a weighted-average fair value of $212.60 per share. During the year ended May 31, 2017, there were 153,984 shares of restricted stock granted with a weighted-average fair value of $166.12 per share.

Stock option vesting during the years ended May 31 was as follows:

 

 

 

Stock Options

 

 

 

Vested during

the year

 

 

Fair value

(in millions)

 

2019

 

 

2,249,301

 

 

$

115

 

2018

 

 

2,465,493

 

 

 

112

 

2017

 

 

2,427,837

 

 

 

104

 

As of May 31, 2019, there was $221 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements. This compensation expense is expected to be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately two years.

Total shares outstanding or available for grant related to equity compensation at May 31, 2019 represented 10% of the total outstanding common and equity compensation shares and equity compensation shares available for grant.

v3.19.2
Computation of Earnings Per Share
 12 Months Ended
May 31, 2019
Earnings Per Share [Abstract]  
Computation of Earnings Per Share

NOTE 11: COMPUTATION OF EARNINGS PER SHARE

The calculation of basic and diluted earnings per common share for the years ended May 31 was as follows (in millions, except per share amounts):

 

 

 

2019

 

 

2018

 

 

2017

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

539

 

 

$

4,566

 

 

$

2,993

 

Weighted-average common shares

 

 

262

 

 

 

267

 

 

 

266

 

Basic earnings per common share

 

$

2.06

 

 

$

17.08

 

 

$

11.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

539

 

 

$

4,566

 

 

$

2,993

 

Weighted-average common shares

 

 

262

 

 

 

267

 

 

 

266

 

Dilutive effect of share-based awards

 

 

3

 

 

 

5

 

 

 

4

 

Weighted-average diluted shares

 

 

265

 

 

 

272

 

 

 

270

 

Diluted earnings per common share

 

$

2.03

 

 

$

16.79

 

 

$

11.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

5.4

 

 

 

2.5

 

 

 

4.5

 

 

(1)

Net earnings available to participating securities were immaterial in all periods presented.

v3.19.2
Income Taxes
 12 Months Ended
May 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 12: INCOME TAXES

The components of the provision for income taxes for the years ended May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Current provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(107

)

 

$

(540

)

 

$

269

 

State and local

 

 

64

 

 

 

43

 

 

 

88

 

Foreign

 

 

243

 

 

 

461

 

 

 

285

 

 

 

 

200

 

 

 

(36

)

 

 

642

 

Deferred provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(61

)

 

 

271

 

 

 

989

 

State and local

 

 

(7

)

 

 

125

 

 

 

59

 

Foreign

 

 

(17

)

 

 

(579

)

 

 

(108

)

 

 

 

(85

)

 

 

(183

)

 

 

940

 

 

 

$

115

 

 

$

(219

)

 

$

1,582

 

 

Pre-tax earnings of foreign operations for 2019, 2018 and 2017 were $929 million, $958 million and $919 million, respectively. These amounts represent only a portion of total results associated with international shipments and do not represent our international results of operations.

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (21% in 2019, 29.2% in 2018 and 35% in 2017) to income before taxes for the years ended May 31 is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Taxes computed at federal statutory rate

 

$

138

 

 

$

1,271

 

 

$

1,603

 

Increases (decreases) in income tax from:

 

 

 

 

 

 

 

 

 

 

 

 

Non-deductible expenses

 

 

79

 

 

 

81

 

 

 

76

 

Valuation allowance

 

 

(79

)

 

 

31

 

 

 

44

 

TCJA(1)

 

 

(71

)

 

 

(1,354

)

 

 

—

 

Foreign tax rate enactments

 

 

50

 

 

 

6

 

 

 

—

 

State and local income taxes, net of federal benefit

 

 

44

 

 

 

119

 

 

 

99

 

Benefits from share-based payments

 

 

(18

)

 

 

(60

)

 

 

(55

)

Uncertain tax positions

 

 

8

 

 

 

86

 

 

 

—

 

Foreign tax credits from distributions

 

 

(8

)

 

 

(225

)

 

 

—

 

Foreign operations

 

 

(1

)

 

 

25

 

 

 

(5

)

Corporate structuring transactions(2)

 

 

—

 

 

 

(255

)

 

 

(68

)

Goodwill impairment charge

 

 

—

 

 

 

109

 

 

 

—

 

Other, net

 

 

(27

)

 

 

(53

)

 

 

(112

)

Provision for income taxes (benefit)

 

$

115

 

 

$

(219

)

 

$

1,582

 

Effective Tax Rate

 

 

17.6

%

 

 

(5.0

)%

 

 

34.6

%

(1)

Primary components in 2018 were a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) in 2018.

(2)

The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively.   

The 2019 tax rate includes a benefit of $90 million from the reduction of a valuation allowance on tax loss carryforwards due to certain business operational changes from the integration of FedEx Express and TNT Express in a local jurisdiction, which impacted our determination of the realizability of the deferred tax asset in that jurisdiction and an expense of $50 million from the impact on our deferred taxes attributable to a lower tax rate in the Netherlands. The 2019 tax rate was also favorably impacted by the TCJA, which resulted in benefits of approximately $75 million from accelerated deductions claimed on our 2018 U.S. income tax return filed in 2019 and approximately $40 million from the lower statutory tax rate on fiscal 2019 earnings.

The 2018 tax rate was favorably impacted by the TCJA, which resulted in a provisional benefit of $1.15 billion from the remeasurement of our net U.S. deferred tax liability. In addition, we recognized a benefit of approximately $265 million related to the lower statutory income tax rate and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans in 2018. Our 2018 tax rate also included a net benefit of $255 million from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express and a benefit of $225 million from foreign tax credits generated by distributions to the U.S. from our foreign operations. The 2018 tax rate was negatively impacted by an increase in uncertain tax positions for income tax audits. Our 2017 tax rate was favorably impacted by $62 million as a result of new U.S. foreign currency tax regulations.

The TCJA, enacted on December 22, 2017, significantly changed the U.S. corporate income tax system in multiple ways such as (1) reducing our U.S. statutory federal income tax rate from 35% to 21% (due to our May 31 fiscal year-end, the lower rate was phased in, resulting in a U.S. statutory federal rate of 29.2% for 2018 and a statutory federal rate of 21% for 2019 and subsequent years); (2) requiring us to calculate a one-time U.S. tax on earnings which have not previously been repatriated to the U.S. (transition tax); and (3) introducing new provisions that took effect in 2019, including but not limited to, a tax on global intangible low-taxed income (GILTI), a tax deduction for foreign-derived intangible income, additional limitations on tax deductions for executive compensation and a minimum base erosion and anti-abuse tax based on certain payments from a U.S. company to foreign related parties. We included the impact of the above provisions in the computation of our effective tax rates, as applicable.  

As provided for in the TCJA, our historical earnings were subject to the one-time transition tax and can be repatriated to the U.S. with a de minimis tax cost. We continue to assert that both our historical and current earnings in our foreign subsidiaries are permanently reinvested and therefore no deferred taxes or withholding taxes have been provided, including deferred taxes on any additional outside basis difference (e.g., stock basis differences attributable to acquisition or other permanent differences).

During 2019, the U.S. Treasury Department issued final regulations covering the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the TCJA. Certain guidance included in these final regulations is inconsistent with our interpretation that led to the recognition of a $225 million benefit in 2018 and an additional $8 million benefit in 2019. Notwithstanding this inconsistency, we remain confident in our interpretation of the TCJA and intend to defend this position through litigation, if necessary. However, if we are ultimately unsuccessful in defending our position, we may be required to reverse the $233 million benefit previously recorded.

In December 2017, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118 to provide guidance to registrants in accounting for income taxes under the TCJA. In accordance with SAB 118, we made reasonable estimates and recorded provisional amounts for the TCJA during 2018. Under the transitional provisions of SAB 118, we had a one-year measurement period to complete the accounting for the initial tax effects of the TCJA. Our accounting is complete for the tax effects of the TCJA, including the following elements initially recorded on a provisional basis:

 

•

In 2018, we recognized a provisional benefit related to the revaluation of U.S. deferred tax assets and liabilities. During 2019, we revised the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability. As a result, we recognized a $4 million tax expense, which decreased the $1.15 billion provisional benefit recorded in 2018.

 

•

In 2018, we previously recognized an immaterial provisional benefit from foreign tax credits exceeding the one-time transition tax on previously deferred foreign earnings. No adjustments were made to the provisional estimate during the remeasurement period.

 

•

We have determined to record the taxes for GILTI as a period cost.

The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

Property, equipment, leases and intangibles

 

$

592

 

 

$

4,633

 

 

$

752

 

 

$

3,663

 

Employee benefits

 

 

1,256

 

 

 

—

 

 

 

595

 

 

 

31

 

Self-insurance accruals

 

 

585

 

 

 

—

 

 

 

494

 

 

 

—

 

Other

 

 

510

 

 

 

340

 

 

 

416

 

 

 

602

 

Net operating loss/credit carryforwards

 

 

1,139

 

 

 

—

 

 

 

1,146

 

 

 

—

 

Valuation allowances

 

 

(590

)

 

 

—

 

 

 

(711

)

 

 

—

 

 

 

$

3,492

 

 

$

4,973

 

 

$

2,692

 

 

$

4,296

 

 

The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions):

 

 

 

2019

 

 

2018

 

Noncurrent deferred tax assets(1)

 

$

1,340

 

 

$

1,263

 

Noncurrent deferred tax liabilities

 

 

(2,821

)

 

 

(2,867

)

 

 

$

(1,481

)

 

$

(1,604

)

 

(1)

Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets.

We have approximately $3.4 billion of net operating loss carryovers in various foreign jurisdictions and $780 million of state operating loss carryovers. The valuation allowances primarily represent amounts reserved for operating loss carryforwards, which expire over varying periods starting in 2020. Therefore, we establish valuation allowances if it is more likely than not that deferred income tax assets will not be realized. We believe that we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets. See Note 1 above for more information on our policy for assessing the recoverability of deferred tax assets and valuation allowances.

We are subject to taxation in the U.S. and various U.S. state, local and foreign jurisdictions. The Internal Revenue Service is currently auditing our 2016 and 2017 tax returns. We will also be commencing an appeals proceeding in September 2019 with respect to our 2014 and 2015 U.S. federal income tax returns. It is reasonably possible that certain income tax return proceedings will be completed during the next 12 months and could result in a change in our balance of unrecognized tax benefits. The expected impact of any changes would not be material to our consolidated financial statements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of year

 

$

161

 

 

$

67

 

 

$

49

 

Increases for tax positions taken in the current year

 

 

—

 

 

 

3

 

 

 

—

 

Increases for tax positions taken in prior years

 

 

31

 

 

 

103

 

 

 

8

 

Increase for business acquisition

 

 

—

 

 

 

—

 

 

 

17

 

Decreases for tax positions taken in prior years

 

 

(4

)

 

 

(10

)

 

 

(1

)

Settlements

 

 

(21

)

 

 

(2

)

 

 

(4

)

Decreases from lapse of statute of limitations

 

 

—

 

 

 

—

 

 

 

(2

)

Changes due to currency translation

 

 

(3

)

 

 

—

 

 

 

—

 

Balance at end of year

 

$

164

 

 

$

161

 

 

$

67

 

 

Our liabilities recorded for uncertain tax positions include $141 million at May 31, 2019 and $142 million at May 31, 2018 associated with positions that, if favorably resolved, would provide a benefit to our income tax expense. We classify interest related to income tax liabilities as interest expense and, if applicable, penalties are recognized as a component of income tax expense. The balance of accrued interest and penalties was $38 million on May 31, 2019 and $35 million on May 31, 2018. Total interest and penalties included in our consolidated statements of income are immaterial.

It is difficult to predict the ultimate outcome or the timing of resolution for tax positions. Changes may result from the conclusion of ongoing audits, appeals or litigation in state, local, federal and foreign tax jurisdictions, or from the resolution of various proceedings between U.S. and foreign tax authorities. Our liability for uncertain tax positions includes no matters that are individually or collectively material to us. It is reasonably possible that the amount of the benefit with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months, but an estimate of the range of the reasonably possible changes cannot be made. However, we do not expect that the resolution of any of our uncertain tax positions will have a material effect on us.

v3.19.2
Retirement Plans
 12 Months Ended
May 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

NOTE 13: RETIREMENT PLANS

We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans and postretirement healthcare plans. 

The accounting guidance related to postretirement benefits requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit plans, and the recognition in either expense or AOCI of unrecognized gains or losses and prior service costs or credits. We use MTM accounting for the recognition of our actuarial gains and losses related to our defined benefit pension and postretirement healthcare plans as described in Note 1. The funded status is measured as the difference between the fair value of the plan’s assets and the PBO of the plan.

A summary of our retirement plans costs over the past three years is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Defined benefit pension plans

 

$

111

 

 

$

150

 

 

$

234

 

Defined contribution plans

 

 

561

 

 

 

527

 

 

 

480

 

Postretirement healthcare plans

 

 

75

 

 

 

74

 

 

 

76

 

Retirement plans mark-to-market loss (gain)

 

 

3,882

 

 

 

(10

)

 

 

(24

)

 

 

$

4,629

 

 

$

741

 

 

$

766

 

 

The components of the MTM adjustments are as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate change

 

$

1,780

 

 

$

(613

)

 

$

266

 

Demographic experience:

 

 

 

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

739

 

 

 

419

 

 

 

268

 

   Change in future assumptions

 

 

887

 

 

 

(37

)

 

 

182

 

Actual versus expected return on assets

 

 

476

 

 

 

11

 

 

 

(740

)

Annuity contract purchase

 

 

—

 

 

 

210

 

 

 

—

 

Total mark-to-market loss (gain)

 

$

3,882

 

 

$

(10

)

 

$

(24

)

 

2019

The weighted-average discount rate for all our pension and postretirement healthcare plans decreased from 4.11% at May 31, 2018 to 3.69% at May 31, 2019. The demographic experience in 2019 reflects updates to several forward-looking assumptions, including retirement rates, disability incidence rates and salary increase assumptions and a current-year actuarial loss due to unfavorable experience compared to various demographic assumptions. The actual rate of return, which is net of all fees and expenses, on our U.S. Pension Plan assets of 4.05% was lower than our expected return of 6.75%, as lower than expected equity returns negatively impacted return-seeking assets while fixed-income assets performed as expected due to declining interest rates.

 

2018

The weighted-average discount rate for all of our pension and postretirement healthcare plans increased from 3.98% at May 31, 2017 to 4.11% at May 31, 2018. The demographic experience in 2018 reflects a liability loss due to unfavorable results related to various demographic assumptions. The annuity contract purchase loss relates to the contract with Metropolitan Life Insurance Company as discussed below. The actual rate of return, which is net of all fees and expenses, on our U.S. Pension Plan assets of 6.30% was slightly lower than our expected return of 6.50% primarily due to generally flat returns in the long-duration fixed-income portfolio partially offset by strong returns from global equities.

 

2017

The actual rate of return on our U.S. Pension Plan assets, which is net of all fees and expenses, of 9.2% was higher than our expected return of 6.50% primarily due to a rise in the value of global equity markets in addition to favorable credit market conditions. The weighted-average discount rate for all of our pension and postretirement healthcare plans decreased from 4.04% at May 31, 2016 to 3.98% at May 31, 2017. The demographic experience in 2017 reflects an update in mortality tables for U.S. pension and other postemployment benefit plans.

PENSION PLANS. Our largest pension plan covers certain U.S. employees age 21 and over, with at least one year of service. Pension benefits for most employees are accrued under a cash balance formula we call the Portable Pension Account (“PPA”). Under the PPA, the retirement benefit is expressed as a dollar amount in a notional account that grows with annual credits based on pay, age and years of credited service, and interest on the notional account balance. The PPA benefit is payable as a lump sum or an annuity at retirement at the election of the employee. The plan interest credit rate varies from year to year based on a U.S. Treasury index. Prior to 2009, certain employees earned benefits using a traditional pension formula (based on average earnings and years of service). Benefits under this formula were capped on May 31, 2008 for most employees.

We also sponsor or participate in nonqualified benefit plans covering certain of our U.S. employee groups and other pension plans covering certain of our international employees. The international defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The majority of our international obligations are for defined benefit pension plans in the Netherlands and the United Kingdom.

During 2017, our U.S. Pension Plans were amended to permit former employees with a vested traditional pension benefit to make a one-time, irrevocable election to receive their benefits in a lump-sum distribution. Approximately 18,300 former employees elected to receive this lump-sum distribution and a total of approximately $1.3 billion was paid by the plans in May 2017.

In May 2018, we entered into an agreement with Metropolitan Life Insurance Company to purchase a group annuity contract and transfer approximately $6 billion of our U.S. Pension Plan obligations. The transaction transferred responsibility for pension benefits to Metropolitan Life Insurance Company for approximately 41,000 of our retirees and beneficiaries who satisfied certain conditions and were receiving a monthly benefit from participating U.S. Pension Plans. There was no change to the pension benefits for any plan participants as a result of this transaction. The purchase of the group annuity contract was funded directly by assets of the U.S. Pension Plans. We recognized a $210 million one-time settlement loss in connection with this transaction, which was included in our 2018 year-end MTM retirement plans accounting adjustment.

POSTRETIREMENT HEALTHCARE PLANS. Certain of our subsidiaries offer medical, dental and vision coverage to eligible U.S. retirees and their eligible dependents and a small number of international employees. U.S. employees covered by the principal plan become eligible for these benefits at age 55 and older, if they have permanent, continuous service of at least 10 years after attainment of age 45 if hired prior to January 1, 1988, or at least 20 years after attainment of age 35 if hired on or after January 1, 1988. Postretirement healthcare benefits are capped at 150% of the 1993 per capita projected employer cost, which has been reached under most plans, so these benefits are not subject to future inflation.

Effective January 1, 2018, certain of our U.S. postretirement healthcare benefits were converted to a lump-sum benefit in a notional retiree health reimbursement account (HRA) for eligible participants. The HRA is available to reimburse a participant for qualifying healthcare premium costs and limits the company liability to the HRA account balance. The amount of the credit is based on age at January 1, 2018 or upon age at retirement thereafter. In connection with this change, retiree health coverage was closed to most new employees hired on or after January 1, 2018.

PENSION PLAN ASSUMPTIONS. The accounting for pension and postretirement healthcare plans includes numerous assumptions, such as: discount rates; expected long-term investment returns on plan assets; future salary increases; employee turnover; mortality; and retirement ages.  

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Discount rate used to determine benefit

   obligation

 

 

3.85

%

 

 

4.27

%

 

 

4.08

%

 

 

1.92

%

 

 

2.37

%

 

 

2.43

%

 

 

3.70

%

 

 

4.33

%

 

 

4.32

%

Discount rate used to determine net periodic

   benefit cost

 

 

4.27

 

 

 

4.08

 

 

 

4.13

 

 

 

2.34

 

 

 

2.43

 

 

 

2.46

 

 

 

4.33

 

 

 

4.32

 

 

 

4.43

 

Rate of increase in future compensation

   levels used to determine benefit obligation

 

 

5.10

 

 

 

4.43

 

 

 

4.47

 

 

 

2.27

 

 

 

2.26

 

 

 

2.42

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation levels

   used to determine net periodic benefit cost

 

 

4.43

 

 

 

4.47

 

 

 

4.46

 

 

 

2.22

 

 

 

2.42

 

 

 

2.82

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.75

 

 

 

6.50

 

 

 

6.50

 

 

 

3.12

 

 

 

3.09

 

 

 

3.18

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net

   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.20

 

 

 

2.20

 

 

 

2.30

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine

   benefit obligation

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.20

 

 

 

2.20

 

 

 

2.30

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Our U.S. Pension Plan assets are invested primarily in publicly tradable securities, and our pension plans hold only a minimal investment in FedEx common stock that is entirely at the discretion of third-party pension fund investment managers. As part of our strategy to manage pension costs and funded status volatility, we follow a liability-driven investment strategy to better align plan assets with liabilities.

Establishing the expected future rate of investment return on our pension assets is a judgmental matter, which we review on an annual basis and revise as appropriate. Management considers the following factors in determining this assumption:

 

•

the duration of our pension plan liabilities, which drives the investment strategy we can employ with our pension plan assets;

 

•

the types of investment classes in which we invest our pension plan assets and the expected compound geometric return we can reasonably expect those investment classes to earn over time, net of all fees and expenses; and

 

•

the investment returns we can reasonably expect our investment management program to achieve in excess of the returns we could expect if investments were made strictly in indexed funds.

For consolidated pension expense, we assumed a 6.75% expected long-term rate of return on our U.S. Pension Plan assets in 2019, and 6.50% in 2018 and 2017. We increased our EROA assumption in 2019 to 6.75% as the decrease in the number of retirees in payment status due to the purchase of a group annuity contract in May 2018 (discussed above) is expected to reduce our short-term future cash outlays and allow the remaining assets to be placed in longer-duration investments, which will increase the rate of return on assets. Also, the reduction of Pension Benefit Guaranty Corporation fixed- and variable-rate premiums should increase the net return on assets. For the 15-year period ended May 31, 2019, our actual return was 7.5%, net of all fees and expenses.    

The investment strategy for our U.S. Pension Plan assets is to utilize a diversified mix of public equities and fixed-income and alternative investments to earn a long-term investment return that meets our pension plan obligations. Our largest asset classes are Corporate Fixed Income Securities and Government Fixed Income Securities (which are largely benchmarked against the Barclays Long Government, Barclays Long Corporate or the Citigroup 20+ STRIPS indices), and U.S. and non-U.S. Equities (which are mainly benchmarked to the S&P 500 Index and MSCI indices). Accordingly, we do not have any significant concentrations of risk. Active management strategies are utilized within the plan in an effort to realize investment returns in excess of market indices. Our investment strategy also includes the limited use of derivative financial instruments on a discretionary basis to improve investment returns and manage exposure to market risk.

The following is a description of the valuation methodologies used for investments measured at fair value:

 

•

Cash and cash equivalents. These Level 1 investments include cash, cash equivalents and foreign currency valued using exchange rates. These Level 2 investments include short-term investment funds which are collective funds priced at a constant value by the administrator of the funds.

 

•

Domestic, international and global equities. These Level 1 investments are valued at the closing price or last trade reported on the major market on which the individual securities are traded.

 

•

Fixed income. We determine the fair value of these Level 2 corporate bonds, U.S. and non-U.S. government securities and other fixed income securities by using bid evaluation pricing models or quoted prices of securities with similar characteristics.

 

•

Alternative Investments. The valuation of these Level 3 investments requires significant judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Investments in private equity, debt, real estate, hedge funds and other private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. These estimates incorporate factors such as contributions and distributions, market transactions, market comparables and performance multiples.

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and our most significant international pension plans at the measurement date are presented in the following table (in millions):

 

 

 

Plan Assets at Measurement Date

 

 

 

2019

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target

Range

%(1)

 

Quoted Prices in

Active Markets

Level 1

 

 

Other Observable

Inputs

Level 2

 

 

Unobservable

Inputs

Level 3

 

Cash and cash equivalents

 

$

570

 

 

 

2

%

 

0 - 5%

 

$

50

 

 

$

520

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,546

 

 

 

11

 

 

 

 

 

875

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,306

 

 

 

14

 

 

 

 

 

2,700

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

1,451

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

731

 

 

 

3

 

 

 

 

 

730

 

 

 

1

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,794

 

 

 

29

 

 

 

 

 

 

 

 

 

6,794

 

 

 

 

 

Government(2)

 

 

5,384

 

 

 

23

 

 

 

 

 

 

 

 

 

3,742

 

 

 

 

 

Mortgage-backed and other(2)

 

 

622

 

 

 

3

 

 

 

 

 

 

 

 

 

175

 

 

 

 

 

Alternative investments(2)

 

 

1,963

 

 

 

9

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

302

 

Other

 

 

(47

)

 

 

—

 

 

 

 

 

(45

)

 

 

(2

)

 

 

 

 

Total U.S. plan assets

 

$

23,320

 

 

 

100

%

 

 

 

$

4,310

 

 

$

11,230

 

 

$

302

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57

 

 

 

4

 

 

 

 

$

57

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

72

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

206

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

322

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

438

 

 

 

32

 

 

 

 

 

290

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

167

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

112

 

 

 

8

 

 

 

 

 

10

 

 

 

17

 

 

 

 

 

Total international plan assets

 

$

1,374

 

 

 

100

%

 

 

 

$

357

 

 

$

17

 

 

 

 

 

 

(1)

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

 

(2)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

 

 

 

Plan Assets at Measurement Date

 

 

 

2018

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target

Range

%(1)

 

Quoted Prices in

Active Markets

Level 1

 

 

Other Observable

Inputs

Level 2

 

 

Unobservable

Inputs

Level 3

 

Cash and cash equivalents

 

$

714

 

 

 

3

%

 

0 - 5%

 

$

19

 

 

$

695

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,449

 

 

 

11

 

 

 

 

 

840

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,506

 

 

 

16

 

 

 

 

 

2,681

 

 

 

172

 

 

 

 

 

Global equities(2)

 

 

1,772

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

780

 

 

 

4

 

 

 

 

 

780

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

5,834

 

 

 

26

 

 

 

 

 

 

 

 

 

5,834

 

 

 

 

 

Government(2)

 

 

4,872

 

 

 

22

 

 

 

 

 

 

 

 

 

3,345

 

 

 

 

 

Mortgage-backed and other(2)

 

 

626

 

 

 

3

 

 

 

 

 

 

 

 

 

125

 

 

 

 

 

Alternative investments(2)

 

 

1,573

 

 

 

7

 

 

0 - 10

 

 

 

 

 

 

 

 

 

$

209

 

Other

 

 

(69

)

 

 

—

 

 

 

 

 

(62

)

 

 

(7

)

 

 

 

 

Total U.S. plan assets

 

$

22,057

 

 

 

100

%

 

 

 

$

4,258

 

 

$

10,164

 

 

$

209

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24

 

 

 

2

%

 

 

 

$

2

 

 

$

22

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

146

 

 

 

11

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

Global equities(2)

 

 

228

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

306

 

 

 

23

 

 

 

 

 

 

 

 

 

68

 

 

 

 

 

Government(2)

 

 

452

 

 

 

34

 

 

 

 

 

108

 

 

 

256

 

 

 

 

 

Mortgage-backed and other(2)

 

 

168

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

19

 

 

 

2

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

Other

 

 

(23

)

 

 

(2

)

 

 

 

 

(6

)

 

 

(17

)

 

 

 

 

Total international plan assets

 

$

1,320

 

 

 

100

%

 

 

 

$

104

 

 

$

418

 

 

 

 

 

 

(1)

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

 

(2)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

 

 

 

U.S. Pension Plans

 

 

 

2019

 

 

2018

 

Balance at beginning of year

 

$

209

 

 

$

129

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Assets held during current year

 

 

11

 

 

 

8

 

Assets sold during the year

 

 

13

 

 

 

4

 

Purchases, sales and settlements

 

 

69

 

 

 

68

 

Balance at end of year

 

$

302

 

 

$

209

 

 

The following tables provide a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2019 and a statement of the funded status as of May 31, 2019 and 2018 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Accumulated Benefit Obligation (“ABO”)

 

$

25,915

 

 

$

22,029

 

 

$

2,084

 

 

$

1,956

 

 

 

 

 

 

 

 

 

Changes in Projected Benefit Obligation (“PBO”)

   and Accumulated Postretirement Benefit

   Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

22,653

 

 

$

27,870

 

 

$

2,167

 

 

$

2,043

 

 

$

955

 

 

$

927

 

Service cost

 

 

689

 

 

 

679

 

 

 

94

 

 

 

97

 

 

 

35

 

 

 

36

 

Interest cost

 

 

951

 

 

 

1,115

 

 

 

49

 

 

 

49

 

 

 

40

 

 

 

39

 

Actuarial loss

 

 

3,016

 

 

 

21

 

 

 

127

 

 

 

(34

)

 

 

266

 

 

 

(9

)

Benefits paid

 

 

(755

)

 

 

(854

)

 

 

(38

)

 

 

(46

)

 

 

(123

)

 

 

(80

)

Settlements

 

 

—

 

 

 

(6,178

)

 

 

(13

)

 

 

(5

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(85

)

 

 

63

 

 

 

48

 

 

 

42

 

PBO/APBO at the end of year

 

$

26,554

 

 

$

22,653

 

 

$

2,301

 

 

$

2,167

 

 

$

1,221

 

 

$

955

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

22,057

 

 

$

24,933

 

 

$

1,509

 

 

$

1,379

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

984

 

 

 

1,609

 

 

 

94

 

 

 

49

 

 

 

—

 

 

 

—

 

Company contributions

 

 

1,034

 

 

 

2,547

 

 

 

91

 

 

 

84

 

 

 

73

 

 

 

42

 

Benefits paid

 

 

(755

)

 

 

(854

)

 

 

(38

)

 

 

(46

)

 

 

(123

)

 

 

(80

)

Settlements

 

 

—

 

 

 

(6,178

)

 

 

(13

)

 

 

(5

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(65

)

 

 

48

 

 

 

50

 

 

 

38

 

Fair value of plan assets at the end of year

 

$

23,320

 

 

$

22,057

 

 

$

1,578

 

 

$

1,509

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(3,234

)

 

$

(596

)

 

$

(723

)

 

$

(658

)

 

$

(1,221

)

 

$

(955

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

82

 

 

$

73

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare and

   other benefit obligations

 

 

(70

)

 

 

(22

)

 

 

(16

)

 

 

(16

)

 

 

(87

)

 

 

(62

)

Noncurrent pension, postretirement healthcare

   and other benefit obligations

 

 

(3,164

)

 

 

(574

)

 

 

(789

)

 

 

(715

)

 

 

(1,134

)

 

 

(893

)

Net amount recognized

 

$

(3,234

)

 

$

(596

)

 

$

(723

)

 

$

(658

)

 

$

(1,221

)

 

$

(955

)

Amounts Recognized in AOCI and not yet reflected

   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit) cost and other

 

$

(173

)

 

$

(292

)

 

$

(6

)

 

$

(10

)

 

$

1

 

 

$

2

 

 

Our pension plans included the following components at May 31 (in millions):

 

 

 

PBO

 

 

Fair Value of

Plan Assets

 

 

Funded Status

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

26,300

 

 

$

23,320

 

 

$

(2,980

)

Nonqualified

 

 

254

 

 

 

—

 

 

 

(254

)

International Plans

 

 

2,301

 

 

 

1,578

 

 

 

(723

)

Total

 

$

28,855

 

 

$

24,898

 

 

$

(3,957

)

2018

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

22,413

 

 

$

22,057

 

 

$

(356

)

Nonqualified

 

 

240

 

 

 

—

 

 

 

(240

)

International Plans

 

 

2,167

 

 

 

1,509

 

 

 

(658

)

Total

 

$

24,820

 

 

$

23,566

 

 

$

(1,254

)

 

The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following tables present our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

 

 

 

PBO Exceeds the Fair Value

of Plan Assets

 

 

 

2019

 

 

2018

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

23,320

 

 

$

22,057

 

PBO

 

 

(26,554

)

 

 

(22,653

)

Net funded status

 

$

(3,234

)

 

$

(596

)

International Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

1,125

 

 

$

1,060

 

PBO

 

 

(1,929

)

 

 

(1,791

)

Net funded status

 

$

(804

)

 

$

(731

)

 

 

 

 

ABO Exceeds the Fair Value

of Plan Assets

 

 

 

2019

 

 

2018

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(25,915

)

 

$

(1,134

)

Fair value of plan assets

 

 

23,320

 

 

 

859

 

PBO

 

 

(26,554

)

 

 

(1,214

)

Net funded status

 

$

(3,234

)

 

$

(355

)

International Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(1,709

)

 

$

(1,581

)

Fair value of plan assets

 

 

1,120

 

 

 

1,060

 

PBO

 

 

(1,925

)

 

 

(1,791

)

Net funded status

 

$

(805

)

 

$

(731

)

(1)

ABO not used in determination of funded status.

Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

Required

 

$

—

 

 

$

22

 

Voluntary

 

 

1,000

 

 

 

2,478

 

 

 

$

1,000

 

 

$

2,500

 

 

For 2020, no pension contributions are required for our U.S. Pension Plans as they are fully funded under the Employee Retirement Income Security Act. However, we expect to make voluntary contributions of $1.0 billion to these plans in 2020.

Net periodic benefit cost for the three years ended May 31 were as follows (in millions):

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

689

 

 

$

679

 

 

$

638

 

 

$

94

 

 

$

97

 

 

$

83

 

 

$

35

 

 

$

36

 

 

$

36

 

Interest cost

 

 

951

 

 

 

1,115

 

 

 

1,128

 

 

 

49

 

 

 

49

 

 

 

43

 

 

 

40

 

 

 

39

 

 

 

39

 

Expected return on plan assets

 

 

(1,505

)

 

 

(1,624

)

 

 

(1,501

)

 

 

(47

)

 

 

(46

)

 

 

(38

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service credit

 

 

(118

)

 

 

(118

)

 

 

(118

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

(1

)

 

 

—

 

Actuarial losses (gains) and other

 

 

3,537

 

 

 

37

 

 

 

(95

)

 

 

80

 

 

 

(38

)

 

 

87

 

 

 

265

 

 

 

(9

)

 

 

(14

)

Net periodic benefit cost

 

$

3,554

 

 

$

89

 

 

$

52

 

 

$

174

 

 

$

60

 

 

$

173

 

 

$

340

 

 

$

65

 

 

$

61

 

 

Amounts recognized in other comprehensive income were primarily related to amortization of prior service cost in our U.S. Pension Plans of $118 million in 2019 and 2018 ($91 million, net of tax, in 2019 and $83 million, net of tax, in 2018).

 

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement

Healthcare Plans

 

2020

 

$

1,027

 

 

$

45

 

 

$

87

 

2021

 

 

971

 

 

 

46

 

 

 

98

 

2022

 

 

1,051

 

 

 

47

 

 

 

109

 

2023

 

 

1,138

 

 

 

55

 

 

 

117

 

2024

 

 

1,230

 

 

 

61

 

 

 

121

 

2025-2029

 

 

7,515

 

 

 

396

 

 

 

473

 

 

These estimates are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.

Future medical benefit claims costs are estimated to increase at an annual rate of 6.00% during 2020, decreasing to an annual growth rate of 4.50% in 2037 and thereafter.

v3.19.2
Business Segments and Disaggregated Revenue
 12 Months Ended
May 31, 2019
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract]  
Business Segments and Disaggregated Revenue

NOTE 14: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE

FedEx Express, FedEx Ground and FedEx Freight represent our major service lines and, along with FedEx Services, constitute our reportable segments. Our reportable segments include the following businesses:

 

FedEx Express Segment

FedEx Express (express transportation)

 

TNT Express (international express transportation, small-package ground delivery and freight transportation)

 

 

FedEx Ground Segment

FedEx Ground (small-package ground delivery)

 

 

FedEx Freight Segment

FedEx Freight (LTL freight transportation)

 

 

FedEx Services Segment

FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services and back-office functions)

 

FedEx Office (document and business services and package acceptance)

FedEx Services Segment

The FedEx Services segment operates combined sales, marketing, administrative and information-technology functions in shared services operations that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express, some of these functions are performed on a regional basis and reported by FedEx Express in their natural expense line items. The FedEx Services segment includes: FedEx Services, which provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S. customers of our major business units and certain back-office support to our other companies; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses.

The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments.

Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses.

Other Intersegment Transactions

Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the other business segments.

Also included in corporate and other is the FedEx Logistics operating segment, which provides customs brokerage and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage, Inc.; cross-border enablement and technology solutions and e-commerce transportation solutions through FedEx Cross Border Technologies, Inc., including its subsidiary P2P; integrated supply chain management solutions through FedEx Supply Chain; time-critical shipment services through FedEx Custom Critical, Inc.; and, effective September 1, 2018, critical inventory and service parts logistics, 3-D printing and technology repair through FedEx Forward Depots, Inc.

Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenues of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenues and expenses are eliminated in our consolidated results and are not separately identified in the following segment information, because the amounts are not material.

The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income (loss) and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:

 

 

 

FedEx

Express

Segment

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Corporate, other and eliminations

 

 

Consolidated

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

37,331

 

 

$

20,522

 

 

$

7,582

 

 

$

1,691

 

 

$

2,567

 

 

$

69,693

 

2018

 

 

36,172

 

 

 

18,395

 

 

 

6,812

 

 

 

1,650

 

 

 

2,421

 

 

 

65,450

 

2017

 

 

33,824

 

 

 

16,503

 

 

 

6,070

 

 

 

1,621

 

 

 

2,301

 

 

 

60,319

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

1,801

 

 

$

728

 

 

$

332

 

 

$

424

 

 

$

68

 

 

$

3,353

 

2018

 

 

1,679

 

 

 

681

 

 

 

296

 

 

 

382

 

 

 

57

 

 

 

3,095

 

2017

 

 

1,662

 

 

 

627

 

 

 

265

 

 

 

371

 

 

 

70

 

 

 

2,995

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019(1)

 

$

2,123

 

 

$

2,640

 

 

$

615

 

 

$

—

 

 

$

(912

)

 

$

4,466

 

2018(2)

 

 

2,105

 

 

 

2,529

 

 

 

490

 

 

 

—

 

 

 

(852

)

 

 

4,272

 

2017(3)

 

 

2,380

 

 

 

2,243

 

 

 

371

 

 

 

—

 

 

 

(428

)

 

 

4,566

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

33,247

 

 

$

17,561

 

 

$

4,736

 

 

$

6,972

 

 

$

(8,113

)

 

$

54,403

 

2018

 

 

31,753

 

 

 

15,458

 

 

 

4,251

 

(5)

 

6,377

 

 

 

(5,509

)

(5)

 

52,330

 

2017

 

 

31,307

 

 

 

12,969

 

 

 

3,740

 

(5)

 

5,682

 

 

 

(5,146

)

(5)

 

48,552

 

(1)

Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(2)

Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.

(3)

Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.

(4)

Segment assets include intercompany receivables.

(5)

Amounts revised for reclassification of eliminations.

The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):

 

 

 

FedEx

Express

Segment

 

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Other

 

 

Consolidated

Total

 

2019

 

$

3,550

 

 

 

$

808

 

 

$

544

 

 

$

528

 

 

$

60

 

 

$

5,490

 

2018

 

 

3,461

 

 

 

 

1,178

 

 

 

490

 

 

 

477

 

 

 

57

 

 

 

5,663

 

2017

 

 

2,725

 

 

 

 

1,490

 

 

 

431

 

 

 

416

 

 

 

54

 

 

 

5,116

 

 

The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):

 

 

2019

 

 

2018(1)

 

 

2017(1)

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

7,663

 

 

$

7,273

 

 

$

6,955

 

U.S. overnight envelope

 

 

1,829

 

 

 

1,788

 

 

 

1,750

 

U.S. deferred

 

 

4,225

 

 

 

3,738

 

 

 

3,526

 

Total U.S. domestic package revenue

 

 

13,717

 

 

 

12,799

 

 

 

12,231

 

International priority

 

 

7,405

 

 

 

7,461

 

 

 

7,045

 

International economy

 

 

3,446

 

 

 

3,255

 

 

 

2,876

 

Total international export package revenue

 

 

10,851

 

 

 

10,716

 

 

 

9,921

 

International domestic(2)

 

 

4,540

 

 

 

4,637

 

 

 

4,277

 

Total package revenue

 

 

29,108

 

 

 

28,152

 

 

 

26,429

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

3,025

 

 

 

2,797

 

 

 

2,527

 

International priority

 

 

2,070

 

 

 

2,105

 

 

 

1,836

 

International economy

 

 

2,123

 

 

 

1,916

 

 

 

1,738

 

International airfreight

 

 

314

 

 

 

368

 

 

 

356

 

Total freight revenue

 

 

7,532

 

 

 

7,186

 

 

 

6,457

 

Other

 

 

691

 

 

 

834

 

 

 

938

 

Total FedEx Express segment

 

 

37,331

 

 

 

36,172

 

 

 

33,824

 

FedEx Ground segment

 

 

20,522

 

 

 

18,395

 

 

 

16,503

 

FedEx Freight segment

 

 

7,582

 

 

 

6,812

 

 

 

6,070

 

FedEx Services segment

 

 

1,691

 

 

 

1,650

 

 

 

1,621

 

Other and eliminations(3)

 

 

2,567

 

 

 

2,421

 

 

 

2,301

 

 

 

$

69,693

 

 

$

65,450

 

 

$

60,319

 

GEOGRAPHICAL INFORMATION(4)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

47,584

 

 

$

43,581

 

 

$

40,269

 

International:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

20,424

 

 

 

20,417

 

 

 

18,817

 

FedEx Ground segment

 

 

467

 

 

 

407

 

 

 

331

 

FedEx Freight segment

 

 

207

 

 

 

181

 

 

 

149

 

FedEx Services segment

 

 

1

 

 

 

3

 

 

 

10

 

Other

 

 

1,010

 

 

 

861

 

 

 

743

 

Total international revenue

 

 

22,109

 

 

 

21,869

 

 

 

20,050

 

 

 

$

69,693

 

 

$

65,450

 

 

$

60,319

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

33,189

 

 

$

30,362

 

 

$

28,141

 

International

 

 

8,128

 

 

 

8,627

 

 

 

7,783

 

 

 

$

41,317

 

 

$

38,989

 

 

$

35,924

 

(1)

Prior year amounts have been revised to conform to the current year presentation.

(2)

International domestic revenues relate to our intra-country operations.

(3)

Includes the FedEx Logistics operating segment.

(4)

International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.

v3.19.2
Supplemental Cash Flow Information
 12 Months Ended
May 31, 2019
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

NOTE 15: SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Cash payments for:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

617

 

 

$

524

 

 

$

484

 

Income taxes

 

$

407

 

 

$

760

 

 

$

397

 

Income tax refunds received

 

 

(36

)

 

 

(571

)

 

 

(20

)

Cash tax payments, net

 

$

371

 

 

$

189

 

 

$

377

 

 
v3.19.2
Guarantees and Indemnifications
 12 Months Ended
May 31, 2019
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications

NOTE 16: GUARANTEES AND INDEMNIFICATIONS

In conjunction with certain transactions, primarily the lease, sale or purchase of real estate, operating assets or services in the ordinary course of business and in connection with business acquisitions, we may provide routine guarantees or indemnifications (e.g., environmental, fuel, tax and intellectual property infringement), the terms of which range in duration, and often they are not limited and have no specified maximum obligation. As a result of the TNT Express acquisition, we have assumed a guarantee related to the demerger of TNT Express and PostNL Holding B.V., which occurred in 2011, for pension benefits earned prior to the date of the demerger. The risk of making payments associated with this guarantee is remote. The overall maximum potential amount of the obligation under such guarantees and indemnifications cannot be reasonably estimated. Historically, we have not been required to make significant payments under our guarantee or indemnification obligations and no material amounts have been recognized in our financial statements for the underlying fair value of these obligations.

v3.19.2
Commitments
 12 Months Ended
May 31, 2019
Commitments [Abstract]  
Commitments

NOTE 17: COMMITMENTS

Annual purchase commitments under various contracts as of May 31, 2019 were as follows (in millions):

 

 

 

Aircraft and

Aircraft Related

 

 

Other(1)

 

 

Total

 

2020

 

$

1,518

 

 

$

898

 

 

$

2,416

 

2021

 

 

2,455

 

 

 

587

 

 

 

3,042

 

2022

 

 

1,862

 

 

 

383

 

 

 

2,245

 

2023

 

 

1,569

 

 

 

263

 

 

 

1,832

 

2024

 

 

492

 

 

 

140

 

 

 

632

 

Thereafter

 

 

2,456

 

 

 

400

 

 

 

2,856

 

Total

 

$

10,352

 

 

$

2,671

 

 

$

13,023

 

(1)

Primarily equipment and advertising contracts.

The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of May 31, 2019, our obligation to purchase five Boeing 767-300 Freighter (“B767F”) aircraft and six Boeing 777 Freighter (“B777F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended (“RLA”). Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above.

We have several aircraft modernization programs underway that are supported by the purchase of B777F and B767F aircraft. These aircraft are significantly more fuel-efficient per unit than the aircraft types previously utilized, and these expenditures are necessary to achieve significant long-term operating savings and to replace older aircraft. Our ability to delay the timing of these aircraft-related expenditures is limited without incurring significant costs to modify existing purchase agreements.

During 2019, FedEx Express entered into agreements to purchase 12 incremental B777F aircraft and 12 incremental B767F aircraft. Six of the B777F and one of the B767F aircraft purchases are conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA. The B777F aircraft are expected to be delivered between 2021 and 2025. The B767F aircraft are expected to be delivered between 2020 and 2022. As part of these agreements, one B777F and one B767F aircraft delivery were accelerated from 2020 to 2019.

As of May 31, 2019, we had $1.1 billion in deposits and progress payments on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our consolidated balance sheets. Aircraft and aircraft-related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of May 31, 2019, with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2020

 

 

—

 

 

 

—

 

 

 

17

 

 

 

5

 

 

 

22

 

2021

 

 

12

 

 

 

5

 

 

 

18

 

 

 

2

 

 

 

37

 

2022

 

 

12

 

 

 

6

 

 

 

12

 

 

 

3

 

 

 

33

 

2023

 

 

12

 

 

 

6

 

 

 

6

 

 

 

4

 

 

 

28

 

2024

 

 

14

 

 

 

6

 

 

 

—

 

 

 

4

 

 

 

24

 

Thereafter

 

 

—

 

 

 

7

 

 

 

—

 

 

 

2

 

 

 

9

 

Total

 

 

50

 

 

 

30

 

 

 

53

 

 

 

20

 

 

 

153

 

 

On June 24, 2019, FedEx Express exercised options to purchase an additional six B767F aircraft for delivery in 2022.

 

FedEx Express now has a total of 20 firm orders for B777F aircraft scheduled for delivery during 2020 through 2025 (one of which was delivered in June 2019) and a total of 59 firm orders for B767F aircraft for delivery during 2020 through 2023 (one of which was delivered in June 2019 and one in July 2019). Six of the B777F orders and five of the B767F orders are conditioned upon there being no event that causes FedEx Express or its employees to be covered by the RLA.

During 2019, FedEx Express also acquired options to purchase an additional 14 B777F aircraft and an additional six B767F aircraft, and the delivery dates of 11 existing B777F option aircraft were rescheduled.

 

FedEx Express now has options to purchase a total of 25 B777F aircraft for delivery through 2028 and a total of 50 B767F aircraft for delivery through 2026.
v3.19.2
Contingencies
 12 Months Ended
May 31, 2019
Loss Contingency [Abstract]  
Contingencies

NOTE 18: CONTINGENCIES

Independent Contractor — Lawsuits and Administrative Proceedings. FedEx Ground is involved in lawsuits and administrative proceedings claiming that owner-operators engaged under operating agreements no longer in place should have been treated as employees of FedEx Ground, rather than independent contractors. In addition, we are defending joint-employer cases where it is alleged that FedEx Ground should be treated as an employer of the drivers employed by service providers engaged by FedEx Ground. These cases are in varying stages of litigation, and we are not currently able to estimate an amount or range of potential loss in all of these matters. However, we do not expect to incur, individually or in the aggregate, a material loss in these matters. Nevertheless, adverse determinations in matters related to owner-operators or service providers engaged by FedEx Ground could, among other things, entitle former owner-operators to the reimbursement of certain expenses, and service providers’ drivers to certain wage payments from the service providers and FedEx Ground, and result in employment and withholding tax and benefit liability for FedEx Ground. We continue to believe that owner-operators engaged by FedEx Ground were properly classified as independent contractors and that FedEx Ground is not an employer or joint employer of the service providers’ drivers.

Federal Securities Litigation. On June 26, 2019 and July 2, 2019, FedEx and certain present and former officers were named as defendants in two putative class action securities lawsuits filed in the U.S. District Court for the Southern District of New York. The complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder relating to alleged misstatements or omissions in FedEx’s public filings with the SEC and other public statements during the period from September 19, 2017 to December 18, 2018. We are not currently able to estimate the probability of loss or the amount or range of potential loss, if any, at this stage of the litigation.

Other Matters. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime or were not provided work breaks or other benefits. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations or cash flows.
v3.19.2
Related Party Transactions
 12 Months Ended
May 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 19: RELATED PARTY TRANSACTIONS

Our Chairman and Chief Executive Officer, Frederick W. Smith, currently holds an approximate 10% ownership interest in the National Football League Washington Redskins professional football team and is a member of its board of directors. FedEx has a multi-year naming rights agreement with Washington Football, Inc. granting us certain marketing rights, including the right to name the stadium where the team plays and other events are held “FedExField.”

v3.19.2
Summary of Quarterly Operating Results (Unaudited)
 12 Months Ended
May 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Operating Results (Unaudited)

NOTE 20: SUMMARY OF QUARTERLY OPERATING RESULTS (UNAUDITED)

 

(in millions, except per share amounts)

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

2019(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

17,052

 

 

$

17,824

 

 

$

17,010

 

 

$

17,807

 

Operating income

 

 

1,071

 

 

 

1,168

 

 

 

911

 

 

 

1,316

 

Net income (loss)(2)

 

 

835

 

 

 

935

 

 

 

739

 

 

 

(1,969

)

Basic earnings (loss) per common share(3)

 

 

3.15

 

 

 

3.56

 

 

 

2.83

 

 

 

(7.56

)

Diluted earnings (loss) per common share(3)

 

 

3.10

 

 

 

3.51

 

 

 

2.80

 

 

 

(7.56

)

2018(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

15,297

 

 

$

16,313

 

 

$

16,526

 

 

$

17,314

 

Operating income

 

 

971

 

 

 

1,115

 

 

 

858

 

 

 

1,328

 

Net income (5)

 

 

596

 

 

 

775

 

 

 

2,074

 

 

 

1,127

 

Basic earnings per common share(3)

 

 

2.22

 

 

 

2.89

 

 

 

7.74

 

 

 

4.23

 

Diluted earnings per common share(3)

 

 

2.19

 

 

 

2.84

 

 

 

7.59

 

 

 

4.15

 

(1)

The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(2)

The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.   

(3)

The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.

(4)

The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.

(5)

The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
v3.19.2
Condensed Consolidating Financial Statements
 12 Months Ended
May 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Statements

NOTE 21: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

We are required to present condensed consolidating financial information in order for the subsidiary guarantors of our public debt to continue to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

The guarantor subsidiaries, which are 100% owned by FedEx, guarantee $17.5 billion of our public debt. The guarantees are full and unconditional and joint and several. Our guarantor subsidiaries were not determined using geographic, service line or other similar criteria, and as a result, the “Guarantor Subsidiaries” and “Non-guarantor Subsidiaries” columns each include portions of our domestic and international operations. Accordingly, this basis of presentation is not intended to present our financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting.

 

 

Condensed consolidating financial statements for our guarantor subsidiaries and non-guarantor subsidiaries are presented in the following tables (in millions):

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

826

 

 

$

158

 

 

$

1,381

 

 

$

(46

)

 

$

2,319

 

Receivables, less allowances

 

 

56

 

 

 

5,603

 

 

 

3,684

 

 

 

(227

)

 

 

9,116

 

Spare parts, supplies, fuel, prepaid expenses and other,

   less allowances

 

 

366

 

 

 

953

 

 

 

332

 

 

 

—

 

 

 

1,651

 

Total current assets

 

 

1,248

 

 

 

6,714

 

 

 

5,397

 

 

 

(273

)

 

 

13,086

 

PROPERTY AND EQUIPMENT, AT COST

 

 

25

 

 

 

55,341

 

 

 

4,145

 

 

 

—

 

 

 

59,511

 

Less accumulated depreciation and amortization

 

 

17

 

 

 

27,066

 

 

 

1,999

 

 

 

—

 

 

 

29,082

 

Net property and equipment

 

 

8

 

 

 

28,275

 

 

 

2,146

 

 

 

—

 

 

 

30,429

 

INTERCOMPANY RECEIVABLE

 

 

2,877

 

 

 

(405

)

 

 

—

 

 

 

(2,472

)

 

 

—

 

GOODWILL

 

 

—

 

 

 

1,589

 

 

 

5,295

 

 

 

—

 

 

 

6,884

 

INVESTMENT IN SUBSIDIARIES

 

 

33,725

 

 

 

5,449

 

 

 

—

 

 

 

(39,174

)

 

 

—

 

OTHER ASSETS

 

 

995

 

 

 

1,811

 

 

 

1,789

 

 

 

(591

)

 

 

4,004

 

 

 

$

38,853

 

 

$

43,433

 

 

$

14,627

 

 

$

(42,510

)

 

$

54,403

 

LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

959

 

 

$

2

 

 

$

3

 

 

$

—

 

 

$

964

 

Accrued salaries and employee benefits

 

 

143

 

 

 

1,100

 

 

 

498

 

 

 

—

 

 

 

1,741

 

Accounts payable

 

 

16

 

 

 

1,469

 

 

 

1,808

 

 

 

(263

)

 

 

3,030

 

Accrued expenses

 

 

521

 

 

 

1,853

 

 

 

914

 

 

 

(10

)

 

 

3,278

 

Total current liabilities

 

 

1,639

 

 

 

4,424

 

 

 

3,223

 

 

 

(273

)

 

 

9,013

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

 

16,322

 

 

 

287

 

 

 

8

 

 

 

—

 

 

 

16,617

 

INTERCOMPANY PAYABLE

 

 

—

 

 

 

—

 

 

 

2,472

 

 

 

(2,472

)

 

 

—

 

OTHER LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

—

 

 

 

2,832

 

 

 

580

 

 

 

(591

)

 

 

2,821

 

Other liabilities

 

 

3,135

 

 

 

3,965

 

 

 

1,095

 

 

 

—

 

 

 

8,195

 

Total other long-term liabilities

 

 

3,135

 

 

 

6,797

 

 

 

1,675

 

 

 

(591

)

 

 

11,016

 

COMMON STOCKHOLDERS’ INVESTMENT

 

 

17,757

 

 

 

31,925

 

 

 

7,249

 

 

 

(39,174

)

 

 

17,757

 

 

 

$

38,853

 

 

$

43,433

 

 

$

14,627

 

 

$

(42,510

)

 

$

54,403

 

 

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,485

 

 

$

257

 

 

$

1,538

 

 

$

(15

)

 

$

3,265

 

Receivables, less allowances

 

 

3

 

 

 

4,970

 

 

 

3,586

 

 

 

(78

)

 

 

8,481

 

Spare parts, supplies, fuel, prepaid expenses and other,

   less allowances

 

 

425

 

 

 

878

 

 

 

292

 

 

 

—

 

 

 

1,595

 

Total current assets

 

 

1,913

 

 

 

6,105

 

 

 

5,416

 

 

 

(93

)

 

 

13,341

 

PROPERTY AND EQUIPMENT, AT COST

 

 

21

 

 

 

51,232

 

 

 

3,868

 

 

 

—

 

 

 

55,121

 

Less accumulated depreciation and amortization

 

 

17

 

 

 

25,111

 

 

 

1,839

 

 

 

—

 

 

 

26,967

 

Net property and equipment

 

 

4

 

 

 

26,121

 

 

 

2,029

 

 

 

—

 

 

 

28,154

 

INTERCOMPANY RECEIVABLE

 

 

1,487

 

 

 

924

 

 

 

—

 

 

 

(2,411

)

 

 

—

 

GOODWILL

 

 

—

 

 

 

1,709

 

 

 

5,264

 

 

 

—

 

 

 

6,973

 

INVESTMENT IN SUBSIDIARIES

 

 

33,370

 

 

 

4,082

 

 

 

—

 

 

 

(37,452

)

 

 

—

 

OTHER ASSETS

 

 

75

 

 

 

1,854

 

 

 

1,829

 

 

 

104

 

 

 

3,862

 

 

 

$

36,849

 

 

$

40,795

 

 

$

14,538

 

 

$

(39,852

)

 

$

52,330

 

LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

1,332

 

 

$

1

 

 

$

9

 

 

$

—

 

 

$

1,342

 

Accrued salaries and employee benefits

 

 

65

 

 

 

1,506

 

 

 

606

 

 

 

—

 

 

 

2,177

 

Accounts payable

 

 

16

 

 

 

1,332

 

 

 

1,719

 

 

 

(90

)

 

 

2,977

 

Accrued expenses

 

 

460

 

 

 

1,778

 

 

 

896

 

 

 

(3

)

 

 

3,131

 

Total current liabilities

 

 

1,873

 

 

 

4,617

 

 

 

3,230

 

 

 

(93

)

 

 

9,627

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

 

14,942

 

 

 

288

 

 

 

13

 

 

 

—

 

 

 

15,243

 

INTERCOMPANY PAYABLE

 

 

—

 

 

 

—

 

 

 

2,411

 

 

 

(2,411

)

 

 

—

 

OTHER LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

—

 

 

 

2,626

 

 

 

137

 

 

 

104

 

 

 

2,867

 

Other liabilities

 

 

619

 

 

 

3,432

 

 

 

1,126

 

 

 

—

 

 

 

5,177

 

Total other long-term liabilities

 

 

619

 

 

 

6,058

 

 

 

1,263

 

 

 

104

 

 

 

8,044

 

COMMON STOCKHOLDERS’ INVESTMENT

 

 

19,415

 

 

 

29,832

 

 

 

7,621

 

 

 

(37,452

)

 

 

19,416

 

 

 

$

36,849

 

 

$

40,795

 

 

$

14,538

 

 

$

(39,852

)

 

$

52,330

 

 

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

50,431

 

 

$

19,643

 

 

$

(381

)

 

$

69,693

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

138

 

 

 

19,055

 

 

 

5,583

 

 

 

—

 

 

 

24,776

 

Purchased transportation

 

 

—

 

 

 

10,344

 

 

 

6,494

 

 

 

(184

)

 

 

16,654

 

Rentals and landing fees

 

 

6

 

 

 

2,582

 

 

 

779

 

 

 

(7

)

 

 

3,360

 

Depreciation and amortization

 

 

1

 

 

 

2,877

 

 

 

475

 

 

 

—

 

 

 

3,353

 

Fuel

 

 

—

 

 

 

3,587

 

 

 

302

 

 

 

—

 

 

 

3,889

 

Maintenance and repairs

 

 

1

 

 

 

2,475

 

 

 

360

 

 

 

(2

)

 

 

2,834

 

Business realignment costs

 

 

320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

320

 

Intercompany charges, net

 

 

(765

)

 

 

(861

)

 

 

1,626

 

 

 

—

 

 

 

—

 

Other

 

 

299

 

 

 

6,674

 

 

 

3,256

 

 

 

(188

)

 

 

10,041

 

 

 

 

—

 

 

 

46,733

 

 

 

18,875

 

 

 

(381

)

 

 

65,227

 

OPERATING INCOME

 

 

—

 

 

 

3,698

 

 

 

768

 

 

 

—

 

 

 

4,466

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

540

 

 

 

174

 

 

 

—

 

 

 

(714

)

 

 

—

 

Interest, net

 

 

(586

)

 

 

54

 

 

 

3

 

 

 

—

 

 

 

(529

)

Other retirement plans expense

 

 

—

 

 

 

(2,675

)

 

 

(576

)

 

 

—

 

 

 

(3,251

)

Intercompany charges, net

 

 

606

 

 

 

(442

)

 

 

(164

)

 

 

—

 

 

 

—

 

Other, net

 

 

(20

)

 

 

53

 

 

 

(64

)

 

 

—

 

 

 

(31

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

540

 

 

 

862

 

 

 

(33

)

 

 

(714

)

 

 

655

 

Provision for income taxes

 

 

—

 

 

 

77

 

 

 

38

 

 

 

—

 

 

 

115

 

NET INCOME (LOSS)

 

$

540

 

 

$

785

 

 

$

(71

)

 

$

(714

)

 

$

540

 

COMPREHENSIVE INCOME (LOSS)

 

$

453

 

 

$

838

 

 

$

(324

)

 

$

(714

)

 

$

253

 

 

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

48,601

 

 

$

17,256

 

 

$

(407

)

 

$

65,450

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

149

 

 

 

18,380

 

 

 

5,266

 

 

 

—

 

 

 

23,795

 

Purchased transportation

 

 

—

 

 

 

9,134

 

 

 

6,191

 

 

 

(224

)

 

 

15,101

 

Rentals and landing fees

 

 

5

 

 

 

2,587

 

 

 

776

 

 

 

(7

)

 

 

3,361

 

Depreciation and amortization

 

 

1

 

 

 

2,644

 

 

 

450

 

 

 

—

 

 

 

3,095

 

Fuel

 

 

—

 

 

 

3,077

 

 

 

297

 

 

 

—

 

 

 

3,374

 

Maintenance and repairs

 

 

1

 

 

 

2,294

 

 

 

327

 

 

 

—

 

 

 

2,622

 

Goodwill and other asset impairment charges

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

380

 

Intercompany charges, net

 

 

(437

)

 

 

(125

)

 

 

562

 

 

 

—

 

 

 

—

 

Other

 

 

281

 

 

 

6,227

 

 

 

3,118

 

 

 

(176

)

 

 

9,450

 

 

 

 

—

 

 

 

44,218

 

 

 

17,367

 

 

 

(407

)

 

 

61,178

 

OPERATING INCOME (LOSS)

 

 

—

 

 

 

4,383

 

 

 

(111

)

 

 

—

 

 

 

4,272

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

4,572

 

 

 

62

 

 

 

—

 

 

 

(4,634

)

 

 

—

 

Interest, net

 

 

(541

)

 

 

46

 

 

 

(15

)

 

 

—

 

 

 

(510

)

Other retirements plans income

 

 

—

 

 

 

547

 

 

 

51

 

 

 

—

 

 

 

598

 

Intercompany charges, net

 

 

544

 

 

 

(296

)

 

 

(248

)

 

 

—

 

 

 

—

 

Other, net

 

 

(3

)

 

 

(120

)

 

 

116

 

 

 

—

 

 

 

(7

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

4,572

 

 

 

4,622

 

 

 

(207

)

 

 

(4,634

)

 

 

4,353

 

Provision for income taxes (benefit)

 

 

—

 

 

 

309

 

 

 

(528

)

 

 

—

 

 

 

(219

)

NET INCOME (LOSS)

 

$

4,572

 

 

$

4,313

 

 

$

321

 

 

$

(4,634

)

 

$

4,572

 

COMPREHENSIVE INCOME (LOSS)

 

$

4,489

 

 

$

4,263

 

 

$

291

 

 

$

(4,634

)

 

$

4,409

 

 

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2017

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

44,823

 

 

$

15,798

 

 

$

(302

)

 

$

60,319

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

123

 

 

 

17,137

 

 

 

4,729

 

 

 

—

 

 

 

21,989

 

Purchased transportation

 

 

—

 

 

 

8,260

 

 

 

5,495

 

 

 

(125

)

 

 

13,630

 

Rentals and landing fees

 

 

5

 

 

 

2,517

 

 

 

724

 

 

 

(6

)

 

 

3,240

 

Depreciation and amortization

 

 

1

 

 

 

2,538

 

 

 

456

 

 

 

—

 

 

 

2,995

 

Fuel

 

 

—

 

 

 

2,476

 

 

 

297

 

 

 

—

 

 

 

2,773

 

Maintenance and repairs

 

 

1

 

 

 

2,086

 

 

 

287

 

 

 

—

 

 

 

2,374

 

Intercompany charges, net

 

 

(434

)

 

 

179

 

 

 

255

 

 

 

—

 

 

 

—

 

Other

 

 

304

 

 

 

5,734

 

 

 

2,885

 

 

 

(171

)

 

 

8,752

 

 

 

 

—

 

 

 

40,927

 

 

 

15,128

 

 

 

(302

)

 

 

55,753

 

OPERATING INCOME

 

 

—

 

 

 

3,896

 

 

 

670

 

 

 

—

 

 

 

4,566

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

2,997

 

 

 

68

 

 

 

—

 

 

 

(3,065

)

 

 

—

 

Interest, net

 

 

(507

)

 

 

27

 

 

 

1

 

 

 

—

 

 

 

(479

)

Other retirements plans (expense) income

 

 

—

 

 

 

516

 

 

 

(45

)

 

 

—

 

 

 

471

 

Intercompany charges, net

 

 

508

 

 

 

(299

)

 

 

(209

)

 

 

—

 

 

 

—

 

Other, net

 

 

(1

)

 

 

(134

)

 

 

156

 

 

 

—

 

 

 

21

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

2,997

 

 

 

4,074

 

 

 

573

 

 

 

(3,065

)

 

 

4,579

 

Provision for income taxes

 

 

—

 

 

 

1,439

 

 

 

143

 

 

 

—

 

 

 

1,582

 

NET INCOME (LOSS)

 

$

2,997

 

 

$

2,635

 

 

$

430

 

 

$

(3,065

)

 

$

2,997

 

COMPREHENSIVE INCOME (LOSS)

 

$

2,922

 

 

$

2,580

 

 

$

314

 

 

$

(3,065

)

 

$

2,751

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

66

 

 

$

4,885

 

 

$

693

 

 

$

(31

)

 

$

5,613

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(6

)

 

 

(4,920

)

 

 

(564

)

 

 

—

 

 

 

(5,490

)

Business acquisitions, net of cash acquired

 

 

—

 

 

 

(9

)

 

 

(57

)

 

 

—

 

 

 

(66

)

Proceeds from asset dispositions and other

 

 

(45

)

 

 

101

 

 

 

27

 

 

 

—

 

 

 

83

 

CASH USED IN INVESTING ACTIVITIES

 

 

(51

)

 

 

(4,828

)

 

 

(594

)

 

 

—

 

 

 

(5,473

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

193

 

 

 

(259

)

 

 

66

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

51

 

 

 

—

 

 

 

(51

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

106

 

 

 

(106

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

(1,310

)

 

 

(117

)

 

 

(9

)

 

 

—

 

 

 

(1,436

)

Proceeds from debt issuances

 

 

2,463

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,463

 

Proceeds from stock issuances

 

 

101

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

101

 

Dividends paid

 

 

(683

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(683

)

Purchase of treasury stock

 

 

(1,480

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,480

)

Other, net

 

 

(9

)

 

 

127

 

 

 

(122

)

 

 

—

 

 

 

(4

)

CASH USED IN FINANCING

   ACTIVITIES

 

 

(674

)

 

 

(143

)

 

 

(222

)

 

 

—

 

 

 

(1,039

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

(13

)

 

 

(34

)

 

 

—

 

 

 

(47

)

Net decrease in cash and cash equivalents

 

 

(659

)

 

 

(99

)

 

 

(157

)

 

 

(31

)

 

 

(946

)

Cash and cash equivalents at beginning of period

 

 

1,485

 

 

 

257

 

 

 

1,538

 

 

 

(15

)

 

 

3,265

 

Cash and cash equivalents at end of period

 

$

826

 

 

$

158

 

 

$

1,381

 

 

$

(46

)

 

$

2,319

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

(2,837

)

 

$

6,767

 

 

$

712

 

 

$

32

 

 

$

4,674

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(1

)

 

 

(5,299

)

 

 

(363

)

 

 

—

 

 

 

(5,663

)

Business acquisitions, net of cash acquired

 

 

—

 

 

 

(44

)

 

 

(135

)

 

 

—

 

 

 

(179

)

Proceeds from sale of business

 

 

—

 

 

 

—

 

 

 

123

 

 

 

—

 

 

 

123

 

Proceeds from asset dispositions and other

 

 

(6

)

 

 

33

 

 

 

15

 

 

 

—

 

 

 

42

 

CASH USED IN INVESTING ACTIVITIES

 

 

(7

)

 

 

(5,310

)

 

 

(360

)

 

 

—

 

 

 

(5,677

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

1,529

 

 

 

(1,612

)

 

83

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

663

 

 

 

—

 

 

 

(663

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

98

 

 

 

(98

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

—

 

 

 

(22

)

 

 

(16

)

 

 

—

 

 

 

(38

)

Proceeds from debt issuance

 

 

1,480

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,480

 

Proceeds from stock issuances

 

 

327

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

327

 

Dividends paid

 

 

(535

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(535

)

Purchase of treasury stock

 

 

(1,017

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,017

)

Other, net

 

 

3

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

10

 

CASH PROVIDED BY (USED IN) FINANCING

   ACTIVITIES

 

 

2,450

 

 

 

(1,529

)

 

 

(694

)

 

 

—

 

 

 

227

 

Effect of exchange rate changes on cash

 

 

(5

)

 

 

4

 

 

 

73

 

 

 

—

 

 

 

72

 

Net increase (decrease) in cash and cash equivalents

 

 

(399

)

 

 

(68

)

 

 

(269

)

 

 

32

 

 

 

(704

)

Cash and cash equivalents at beginning of period

 

 

1,884

 

 

 

325

 

 

 

1,807

 

 

 

(47

)

 

 

3,969

 

Cash and cash equivalents at end of period

 

$

1,485

 

 

$

257

 

 

$

1,538

 

 

$

(15

)

 

$

3,265

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2017

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

(1,155

)

 

$

5,254

 

 

$

835

 

 

$

(4

)

 

$

4,930

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

(4,694

)

 

 

(422

)

 

 

—

 

 

 

(5,116

)

Proceeds from asset dispositions and other

 

 

34

 

 

 

25

 

 

 

76

 

 

 

—

 

 

 

135

 

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

34

 

 

 

(4,669

)

 

 

(346

)

 

 

—

 

 

 

(4,981

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

421

 

 

 

(518

)

 

 

97

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

41

 

 

 

(15

)

 

 

(26

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

—

 

 

 

(55

)

 

 

(27

)

 

 

—

 

 

 

(82

)

Proceeds from debt issuances

 

 

1,190

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,190

 

Proceeds from stock issuances

 

 

337

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

337

 

Dividends paid

 

 

(426

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(426

)

Purchase of treasury stock

 

 

(509

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(509

)

Other, net

 

 

(12

)

 

 

(13

)

 

 

43

 

 

 

—

 

 

 

18

 

CASH PROVIDED BY (USED IN) FINANCING

   ACTIVITIES

 

 

1,042

 

 

 

(600

)

 

 

86

 

 

 

—

 

 

 

528

 

Effect of exchange rate changes on cash

 

 

(11

)

 

 

14

 

 

 

(45

)

 

 

—

 

 

 

(42

)

Net increase (decrease) in cash and cash equivalents

 

 

(90

)

 

 

(1

)

 

 

530

 

 

 

(4

)

 

 

435

 

Cash and cash equivalents at beginning of period

 

 

1,974

 

 

 

326

 

 

 

1,277

 

 

 

(43

)

 

 

3,534

 

Cash and cash equivalents at end of period

 

$

1,884

 

 

$

325

 

 

$

1,807

 

 

$

(47

)

 

$

3,969

 
v3.19.2
Valuation and Qualifying Accounts
 12 Months Ended
May 31, 2019
Valuation And Qualifying Accounts [Abstract]  
Schedule Of Valuation And Qualifying Accounts

SCHEDULE II

FEDEX CORPORATION

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED MAY 31, 2019, 2018 AND 2017

(IN MILLIONS)

 

 

 

 

 

 

 

ADDITIONS

 

 

 

 

 

 

 

 

 

DESCRIPTION

 

BALANCE

AT

BEGINNING

OF YEAR

 

 

CHARGED

TO

EXPENSES

 

 

CHARGED

TO

OTHER

ACCOUNTS

 

 

DEDUCTIONS

 

 

BALANCE

AT

END OF

YEAR

 

Accounts Receivable Reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

199

 

 

$

295

 

 

$

—

 

 

$

373

 

(a)

$

121

 

2018

 

 

115

 

 

 

246

 

 

 

—

 

 

 

162

 

(a)

 

199

 

2017

 

 

73

 

 

 

136

 

 

 

—

 

 

94

 

(a)

 

115

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

202

 

 

$

—

 

 

$

1,192

 

(b)

$

1,215

 

(c)

$

179

 

2018

 

 

137

 

 

 

—

 

 

 

1,173

 

(b)

 

1,108

 

(c)

 

202

 

2017

 

 

105

 

 

 

—

 

 

941

 

(b)

909

 

(c)

 

137

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

268

 

 

$

28

 

 

$

75

 

 

$

36

 

 

$

335

 

2018

 

 

237

 

 

 

27

 

 

 

6

 

 

 

2

 

 

 

268

 

2017

 

 

218

 

 

 

26

 

 

 

—

 

 

 

7

 

 

 

237

 

(a)

Uncollectible accounts written off, net of recoveries, and other adjustments.

(b)

Principally charged against revenue.

(c)

Service failures, rebills and other.

v3.19.2
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
May 31, 2019
Accounting Policies [Abstract]  
Description of Business

DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are Federal Express Corporation (“FedEx Express”), the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight Corporation (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), constitute our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments (FedEx Express, FedEx Ground and FedEx Freight) and other business units. In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”).
Fiscal Years

FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2019 or ended May 31 of the year referenced.
Reclassifications

RECLASSIFICATIONS. Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year’s presentation.
Principles of Consolidation

PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity.
Revenue Recognition

REVENUE RECOGNITION. 

Satisfaction of Performance Obligation

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with U.S. generally accepted accounting principles (“GAAP”). To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our contracts, the customer contracts with us to provide distinct services within a single contract, such as transportation services. The majority of our contracts with customers for transportation services include only one performance obligation, the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price.

For transportation services, revenue is recognized over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. If we were unable to complete delivery to the final location, another entity would not need to reperform the transportation service already performed. As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including ancillary or accessorial fees and reductions for estimated customer incentives, are recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer.

We also provide customized customer-specific solutions, such as supply chain management solutions and inventory and service parts logistics, through which we provide the service of integrating a complex set of tasks and components into a single capability. For these arrangements, the majority of which are conducted by our FedEx Logistics, Inc. (“FedEx Logistics” (formerly FedEx Trade Networks, Inc.)) operating segment, the entire contract is accounted for as one performance obligation. For these performance obligations, we typically have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer.

Contract Modification

Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new enforceable rights and obligations or alters the existing arrangement. Contract modifications that add distinct goods or services are treated as separate performance obligations. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are executed.

Variable Consideration

Certain contracts contain customer incentives, guaranteed service refunds and other provisions that can either increase or decrease the transaction price. These incentives are generally awarded based upon achieving certain performance metrics. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current and forecasted) that is reasonably available to us.

Principal vs. Agent Considerations

Transportation services are provided with the use of employees and independent businesses that contract with FedEx. GAAP requires us to evaluate whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. Based on our evaluation of the control model, we determined that FedEx is the principal to the transaction for most of these services and revenue is recognized on a gross basis based on the transfer of control to the customer. Costs associated with independent businesses providing transportation services are recognized as incurred and included in the caption “Purchased transportation” in the consolidated statements of income.

Our contract logistics, global trade services and certain transportation businesses engage in certain transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions and taxes and duties.

Contract Assets and Liabilities

Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions.

Gross contract assets related to in-transit packages totaled $533 million and $542 million at May 31, 2019 and May 31, 2018, respectively. Contract assets net of deferred unearned revenue were $364 million and $363 million at May 31, 2019 and May 31, 2018, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $11 million and $13 million at May 31, 2019 and May 31, 2018, respectively. Contract liabilities are included within current liabilities in the accompanying consolidated balance sheets.

Payment terms

Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.

Disaggregation of Revenue

See Note 14 for disclosure of disaggregated revenues for the periods ended May 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.
Credit Risk

CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic conditions. Historically, credit losses have been within management’s expectations.
Advertising

ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $468 million in 2019, $442 million in 2018 and $458 million in 2017.
Cash Equivalents

CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value.
Spare Parts, Supplies And Fuel

SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost.
Property And Equipment

PROPERTY AND EQUIPMENT. Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal.

For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable.

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2019

 

 

2018

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

11,975

 

 

$

10,463

 

Narrow-body and feeder aircraft and related equipment

 

5 to 18 years

 

 

2,696

 

 

 

2,908

 

Package handling and ground support equipment

 

3 to 30 years

 

 

4,157

 

 

 

4,028

 

Information technology

 

2 to 10 years

 

 

1,553

 

 

 

1,277

 

Vehicles and trailers

 

3 to 15 years

 

 

4,042

 

 

 

3,747

 

Facilities and other

 

2 to 40 years

 

 

6,006

 

 

 

5,731

 

 

Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment. 

Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $3.4 billion in 2019, $3.1 billion in 2018 and $2.9 billion in 2017. Depreciation and amortization expense includes amortization of assets under capital lease.

Capitalized Interest

CAPITALIZED INTEREST. Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $64 million in 2019, $61 million in 2018 and $41 million in 2017.
Impairment of Long-Lived Assets

IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment.

In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2019, we had seven aircraft temporarily idled. These aircraft have been idled for an average of 23 months and are expected to return to revenue service.
Sale of Business

SALE OF BUSINESS. On April 30, 2018, we sold a non-core business of TNT Express B.V. (“TNT Express”) and recorded a gain of $85 million in the FedEx Express segment.
Goodwill and Intangible Assets

GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized.

Pension and Postretirement Healthcare Plans

PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate.

The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” or MTM accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis.
Income Taxes

INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets that are not subject to valuation allowances.

We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision.

We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets.

Self-Insurance Accruals

SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

Leases

LEASES. We lease certain aircraft, facilities, equipment and vehicles and trailers under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term.

Deferred Gains

DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions.

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them.

When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge.

If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow or net investment hedge for any period presented. Accordingly, additional disclosures about these types of financial instruments are excluded from this report.

For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in AOCI at that time remain there until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in AOCI are immediately recognized in the income statement. The financial statement impact of derivative transactions was immaterial for each period presented. Accordingly, additional disclosures have been excluded from this report.

Foreign Currency Translation

FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of AOCI within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented.

Stock-Based Compensation

STOCK-BASED COMPENSATION. The accounting guidance related to share-based payments requires recognition of compensation expense for stock-based awards using a fair value method. We use the Black-Scholes option pricing model to calculate the fair value of stock options. The value of restricted stock awards is based on the stock price of the award on the grant date. We record stock-based compensation expense in the “Salaries and employee benefits” caption in the accompanying consolidated statements of income. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants.

Business Realignment Costs

BUSINESS REALIGNMENT COSTS. In December 2018, we announced cost-reduction programs primarily through initiatives at FedEx Services and FedEx Express in response to current business and economic conditions that included the following:

 

•

A U.S.-based voluntary employee buyout program for eligible employees;

 

•

Limited hiring in staff functions; and

 

•

Reductions in discretionary spending.

During 2019, we conducted a program to offer voluntary cash buyouts to eligible U.S.-based employees in certain staff functions. The U.S.-based voluntary employee buyout program includes voluntary severance payments and funding to healthcare reimbursement accounts, with the voluntary severance payment calculated based on four weeks of gross base salary for every year of continuous service up to a maximum payment of two years of pay. This program was completed in the fourth quarter of 2019, and approximately 1,500 employees have left or will be leaving during 2020. Costs of the benefits provided under the U.S.-based voluntary employee buyout program were recognized as special termination benefits in the period that eligible employees accepted their offers.

We incurred costs of $320 million ($243 million, net of tax, or $0.91 per diluted share) during 2019 associated with our business realignment activities. These costs related primarily to severance for employees who accepted voluntary buyouts in the third and fourth quarters of 2019. Payments are made at the time of departure. Approximately $220 million was paid under this program during 2019. The cost of the U.S.-based voluntary employee buyout program is included in the caption “Business realignment costs” in our consolidated statements of income. Also included in that caption are other incremental, external costs directly attributable to our business realignment activities, such as professional fees.
Use Of Estimates

USE OF ESTIMATES. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations.

v3.19.2
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2019
Accounting Policies [Abstract]  
Schedule of Depreciable Lives and Net Book Value of Property and Equipment

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2019

 

 

2018

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

11,975

 

 

$

10,463

 

Narrow-body and feeder aircraft and related equipment

 

5 to 18 years

 

 

2,696

 

 

 

2,908

 

Package handling and ground support equipment

 

3 to 30 years

 

 

4,157

 

 

 

4,028

 

Information technology

 

2 to 10 years

 

 

1,553

 

 

 

1,277

 

Vehicles and trailers

 

3 to 15 years

 

 

4,042

 

 

 

3,747

 

Facilities and other

 

2 to 40 years

 

 

6,006

 

 

 

5,731

 
v3.19.2
Recent Accounting Guidance (Tables)
 12 Months Ended
May 31, 2019
Accounting Policies [Abstract]  
Schedule of Recently Adopted Accounting Standards

The following table presents our results under our historical method of accounting and as adjusted to reflect our adoption of ASU 2017-07 (in millions):

 

 

May 31, 2018

 

 

May 31, 2017

 

 

 

Reported

 

 

Effect of Adoption of ASU 2017-07

 

 

As Adjusted

 

 

Reported

 

 

Effect of Adoption of ASU 2017-07

 

 

As Adjusted

 

Revenue

 

$

65,450

 

 

$

—

 

 

$

65,450

 

 

$

60,319

 

 

$

—

 

 

$

60,319

 

Operating income

 

 

4,870

 

 

 

(598

)

 

 

4,272

 

 

 

5,037

 

 

 

(471

)

 

 

4,566

 

Other income (expense), net

 

 

(517

)

 

 

598

 

 

 

81

 

 

 

(458

)

 

 

471

 

 

 

13

 

Net income

 

 

4,572

 

 

 

—

 

 

 

4,572

 

 

 

2,997

 

 

 

—

 

 

 

2,997

 
v3.19.2
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
May 31, 2019
Goodwill And Other Intangible Assets Tables [Abstract]  
Schedule Of Goodwill The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):

 

 

 

FedEx Express

Segment

 

 

FedEx Ground

Segment

 

 

FedEx Freight

Segment

 

 

FedEx Services

Segment

 

 

Corporate, Other and Eliminations

 

 

Total

 

Goodwill at May 31, 2017

 

$

4,953

 

 

$

827

 

 

$

764

 

 

$

1,525

 

 

$

395

 

 

$

8,464

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,177

)

 

 

—

 

 

 

(1,310

)

Balance as of May 31, 2017

 

 

4,953

 

 

 

827

 

 

 

631

 

 

 

348

 

 

 

395

 

 

 

7,154

 

Goodwill acquired(1)

 

 

76

 

 

 

14

 

 

 

3

 

 

 

—

 

 

 

32

 

 

 

125

 

Purchase adjustments and other(2)

 

 

71

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

68

 

Impairment charges(3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(374

)

 

 

(374

)

Balance as of May 31, 2018

 

 

5,100

 

 

 

840

 

 

 

634

 

 

 

348

 

 

 

51

 

 

 

6,973

 

Goodwill acquired(4)

 

 

126

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

126

 

Purchase adjustments and other(2)

 

 

(210

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

 

 

(215

)

Balance as of May 31, 2019

 

$

5,016

 

 

$

840

 

 

$

634

 

 

$

348

 

 

$

46

 

 

$

6,884

 

Accumulated goodwill impairment charges

   as of May 31, 2019

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,177

)

 

$

(374

)

 

$

(1,684

)

 

 

(1)

Goodwill acquired relates to the acquisitions of Northwest Research and P2P. See Note 3 for more information.

 

(2)

Primarily purchase price allocation-related adjustments, currency translation adjustments and acquired goodwill related to immaterial acquisitions.

 

(3)

Impairment charges related to the goodwill impairment of FedEx Supply Chain described below.

 

(4)

Goodwill acquired relates to the acquisitions of Flying Cargo and the controlling interest in an existing joint venture with Swiss Post. See Note 3 for more information.
Schedule Of Identifiable Intangible Assets The summary of our intangible assets and related accumulated amortization at May 31, 2019 and 2018 is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

Customer relationships

 

$

685

 

 

$

(293

)

 

$

392

 

 

$

676

 

 

$

(250

)

 

$

426

 

Technology

 

 

66

 

 

 

(51

)

 

 

15

 

 

 

68

 

 

 

(39

)

 

 

29

 

Trademarks and other

 

 

137

 

 

 

(128

)

 

 

9

 

 

 

141

 

 

 

(116

)

 

 

25

 

Total

 

$

888

 

 

$

(472

)

 

$

416

 

 

$

885

 

 

$

(405

)

 

$

480

 

 
Schedule of Finite Lived Intangible Assets Future Amortization Expense

Expected amortization expense for the next five years is as follows (in millions):

 

2020

$

64

 

2021

 

52

 

2022

 

45

 

2023

 

43

 

2024

 

42

 
v3.19.2
Selected Current Liabilities (Tables)
 12 Months Ended
May 31, 2019
Selected Current Liabilities Tables [Abstract]  
Selected Current Liabilities

The components of selected current liability captions at May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

Accrued Salaries and Employee Benefits

 

 

 

 

 

 

 

 

Salaries

 

$

425

 

 

$

498

 

Employee benefits, including variable compensation

 

 

552

 

 

 

933

 

Compensated absences

 

 

764

 

 

 

746

 

 

 

$

1,741

 

 

$

2,177

 

Accrued Expenses

 

 

 

 

 

 

 

 

Self-insurance accruals

 

$

1,104

 

 

$

957

 

Taxes other than income taxes

 

 

304

 

 

 

334

 

Other

 

 

1,870

 

 

 

1,840

 

 

 

$

3,278

 

 

$

3,131

 
v3.19.2
Long Term Debt and Other Financing Arrangements (Tables)
 12 Months Ended
May 31, 2019
Long Term Debt Tables [Abstract]  
Components of Long-term Debt (Net of Discounts and Debt Issuance Costs)

The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2019, are as follows (in millions):

 

 

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

Interest Rate%

 

 

Maturity

 

 

 

 

 

 

 

 

Senior unsecured debt:

 

 

8.00

 

 

2019

 

$

—

 

 

$

750

 

 

 

 

2.30

 

 

2020

 

 

400

 

 

 

399

 

 

 

 

3.40

 

 

2022

 

 

497

 

 

 

—

 

 

 

2.625-2.70

 

 

2023

 

 

747

 

 

 

746

 

 

 

 

4.00

 

 

2024

 

 

746

 

 

 

746

 

 

 

 

3.20

 

 

2025

 

 

696

 

 

 

695

 

 

 

 

3.25

 

 

2026

 

 

745

 

 

 

744

 

 

 

 

3.30

 

 

2027

 

 

446

 

 

 

445

 

 

 

 

3.40

 

 

2028

 

 

495

 

 

 

495

 

 

 

 

4.20

 

 

2029

 

 

396

 

 

 

—

 

 

 

 

4.90

 

 

2034

 

 

495

 

 

 

495

 

 

 

 

3.90

 

 

2035

 

 

494

 

 

 

493

 

 

 

3.875-4.10

 

 

2043

 

 

984

 

 

 

983

 

 

 

 

5.10

 

 

2044

 

 

742

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

640

 

 

 

4.55-4.75

 

 

2046

 

 

2,460

 

 

 

2,459

 

 

 

 

4.40

 

 

2047

 

 

735

 

 

 

735

 

 

 

 

4.05

 

 

2048

 

 

986

 

 

 

986

 

 

 

 

4.95

 

 

2049

 

 

835

 

 

 

—

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

floating-rate

 

 

2019

 

 

—

 

 

 

582

 

 

 

 

0.50

 

 

2020

 

 

559

 

 

 

581

 

 

 

 

0.70

 

 

2022

 

 

713

 

 

 

—

 

 

 

 

1.00

 

 

2023

 

 

836

 

 

 

869

 

 

 

 

1.625

 

 

2027

 

 

1,387

 

 

 

1,442

 

Total senior unsecured debt

 

 

 

 

 

 

 

 

17,518

 

 

 

16,510

 

Other debt

 

 

 

 

 

 

 

 

1

 

 

 

4

 

Capital lease obligations

 

 

 

 

 

 

 

 

62

 

 

 

71

 

 

 

 

 

 

 

 

 

 

17,581

 

 

 

16,585

 

Less current portion

 

 

 

 

 

 

 

 

964

 

 

 

1,342

 

 

 

 

 

 

 

 

 

$

16,617

 

 

$

15,243

 
v3.19.2
Leases (Tables)
 12 Months Ended
May 31, 2019
Leases Tables [Abstract]  
Schedule of Rent Expense Under Operating Leases

Rent expense under operating leases for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Minimum rentals

 

$

2,875

 

 

$

2,913

 

 

$

2,814

 

Contingent rentals(1)

 

 

222

 

 

 

194

 

 

 

178

 

 

 

$

3,097

 

 

$

3,107

 

 

$

2,992

 

(1)

Contingent rentals are based on equipment usage.

Schedule of Future Minimum Lease Payments, Operating Leases

A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 is as follows (in millions):

 

 

 

Operating Leases

 

 

 

Aircraft

and Related

Equipment

 

 

Facilities

and Other

 

 

Total

Operating

Leases

 

2020

 

$

288

 

 

$

2,209

 

 

$

2,497

 

2021

 

 

230

 

 

 

2,033

 

 

 

2,263

 

2022

 

 

212

 

 

 

1,816

 

 

 

2,028

 

2023

 

 

154

 

 

 

1,625

 

 

 

1,779

 

2024

 

 

58

 

 

 

1,428

 

 

 

1,486

 

Thereafter

 

 

85

 

 

 

7,977

 

 

 

8,062

 

Total

 

$

1,027

 

 

$

17,088

 

 

$

18,115

 
v3.19.2
Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
May 31, 2019
Accumulated Other Comprehensive Income Loss Tables [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)

The following table provides changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

 

2019

 

 

2018

 

 

2017

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(759

)

 

$

(685

)

 

$

(514

)

Translation adjustments

 

 

(195

)

 

 

(74

)

 

 

(171

)

Balance at end of period

 

 

(954

)

 

 

(759

)

 

 

(685

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

181

 

 

 

270

 

 

 

345

 

Prior service credit and other arising during period

 

 

—

 

 

 

(4

)

 

 

1

 

Reclassifications from AOCI

 

 

(92

)

 

 

(85

)

 

 

(76

)

Balance at end of period

 

 

89

 

 

 

181

 

 

 

270

 

Accumulated other comprehensive loss at end of period

 

$

(865

)

 

$

(578

)

 

$

(415

)

 
Reclassification Out of Accumulated Other Comprehensive Income (Loss)

The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings):

 

 

 

Amount Reclassified from

AOCI

 

 

Affected Line Item in the

Income Statement

 

 

2019

 

 

2018

 

 

2017

 

 

 

Amortization of retirement plans prior service

   credits, before tax

 

$

120

 

 

$

121

 

 

$

120

 

 

Salaries and employee benefits

Income tax benefit

 

 

(28

)

 

 

(36

)

 

 

(44

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

92

 

 

$

85

 

 

$

76

 

 

Net income
v3.19.2
Stock-Based Compensation (Tables)
 12 Months Ended
May 31, 2019
Stock Based Compensation Tables [Abstract]  
Stock-based compensation expense

Our total stock-based compensation expense for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Stock-based compensation expense

 

$

174

 

 

$

167

 

 

$

154

 
Schedule of Stock Based Compensation Key Assumptions for Valuation The following table includes the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, followed by a discussion of our methodology for developing each of the assumptions used in the valuation model:

 

 

 

2019

 

 

2018

 

 

2017

 

Weighted-average Black-Scholes value

 

$

61.42

 

 

$

55.72

 

 

$

43.99

 

Intrinsic value of options exercised

 

$

122

 

 

$

359

 

 

$

274

 

Black-Scholes Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.5 years

 

 

6.5 years

 

Expected volatility

 

 

21

%

 

 

23

%

 

 

25

%

Risk-free interest rate

 

 

2.94

%

 

 

2.07

%

 

 

1.64

%

Dividend yield

 

 

0.935

%

 

 

0.796

%

 

 

0.719

%
Schedule of Stock Option Activity

The following table summarizes information regarding stock option activity for the year ended May 31, 2019:

 

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

(in millions)(1)

 

Outstanding at June 1, 2018

 

 

12,984,917

 

 

$

147.98

 

 

 

 

 

 

 

 

 

Granted

 

 

2,383,158

 

 

 

244.16

 

 

 

 

 

 

 

 

 

Exercised

 

 

(1,112,160

)

 

 

91.01

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(633,400

)

 

 

212.85

 

 

 

 

 

 

 

 

 

Outstanding at May 31, 2019

 

 

13,622,515

 

 

$

166.89

 

 

 

6.1

 

 

$

260

 

Exercisable

 

 

8,344,344

 

 

$

134.70

 

 

 

4.8

 

 

$

260

 

Expected to vest

 

 

4,950,924

 

 

$

217.78

 

 

 

8.3

 

 

$

—

 

Available for future grants

 

 

13,894,509

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only presented for options with market value at May 31, 2019 in excess of the exercise price of the option.

Schedule of Vested and Unvested Restricted Stock

The following table summarizes information regarding vested and unvested restricted stock for the year ended May 31, 2019:

 

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Unvested at June 1, 2018

 

 

337,590

 

 

$

185.16

 

Granted

 

 

149,579

 

 

 

253.28

 

Vested

 

 

(153,734

)

 

 

180.65

 

Forfeited

 

 

(8,957

)

 

 

218.08

 

Unvested at May 31, 2019

 

 

324,478

 

 

$

217.76

 
Schedule of Stock Option Vesting

Stock option vesting during the years ended May 31 was as follows:

 

 

 

Stock Options

 

 

 

Vested during

the year

 

 

Fair value

(in millions)

 

2019

 

 

2,249,301

 

 

$

115

 

2018

 

 

2,465,493

 

 

 

112

 

2017

 

 

2,427,837

 

 

 

104

 
v3.19.2
Computation of Earnings Per Share (Tables)
 12 Months Ended
May 31, 2019
Computation Of Earnings Per Share Tables [Abstract]  
Schedule of Basic and Diluted Earnings Per Common Share

The calculation of basic and diluted earnings per common share for the years ended May 31 was as follows (in millions, except per share amounts):

 

 

 

2019

 

 

2018

 

 

2017

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

539

 

 

$

4,566

 

 

$

2,993

 

Weighted-average common shares

 

 

262

 

 

 

267

 

 

 

266

 

Basic earnings per common share

 

$

2.06

 

 

$

17.08

 

 

$

11.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

539

 

 

$

4,566

 

 

$

2,993

 

Weighted-average common shares

 

 

262

 

 

 

267

 

 

 

266

 

Dilutive effect of share-based awards

 

 

3

 

 

 

5

 

 

 

4

 

Weighted-average diluted shares

 

 

265

 

 

 

272

 

 

 

270

 

Diluted earnings per common share

 

$

2.03

 

 

$

16.79

 

 

$

11.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

5.4

 

 

 

2.5

 

 

 

4.5

 

 

(1)

Net earnings available to participating securities were immaterial in all periods presented.

v3.19.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes for the years ended May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Current provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(107

)

 

$

(540

)

 

$

269

 

State and local

 

 

64

 

 

 

43

 

 

 

88

 

Foreign

 

 

243

 

 

 

461

 

 

 

285

 

 

 

 

200

 

 

 

(36

)

 

 

642

 

Deferred provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(61

)

 

 

271

 

 

 

989

 

State and local

 

 

(7

)

 

 

125

 

 

 

59

 

Foreign

 

 

(17

)

 

 

(579

)

 

 

(108

)

 

 

 

(85

)

 

 

(183

)

 

 

940

 

 

 

$

115

 

 

$

(219

)

 

$

1,582

 

 
Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (21% in 2019, 29.2% in 2018 and 35% in 2017) to income before taxes for the years ended May 31 is as follows (in millions):

 

 

2019

 

 

2018

 

 

2017

 

Taxes computed at federal statutory rate

 

$

138

 

 

$

1,271

 

 

$

1,603

 

Increases (decreases) in income tax from:

 

 

 

 

 

 

 

 

 

 

 

 

Non-deductible expenses

 

 

79

 

 

 

81

 

 

 

76

 

Valuation allowance

 

 

(79

)

 

 

31

 

 

 

44

 

TCJA(1)

 

 

(71

)

 

 

(1,354

)

 

 

—

 

Foreign tax rate enactments

 

 

50

 

 

 

6

 

 

 

—

 

State and local income taxes, net of federal benefit

 

 

44

 

 

 

119

 

 

 

99

 

Benefits from share-based payments

 

 

(18

)

 

 

(60

)

 

 

(55

)

Uncertain tax positions

 

 

8

 

 

 

86

 

 

 

—

 

Foreign tax credits from distributions

 

 

(8

)

 

 

(225

)

 

 

—

 

Foreign operations

 

 

(1

)

 

 

25

 

 

 

(5

)

Corporate structuring transactions(2)

 

 

—

 

 

 

(255

)

 

 

(68

)

Goodwill impairment charge

 

 

—

 

 

 

109

 

 

 

—

 

Other, net

 

 

(27

)

 

 

(53

)

 

 

(112

)

Provision for income taxes (benefit)

 

$

115

 

 

$

(219

)

 

$

1,582

 

Effective Tax Rate

 

 

17.6

%

 

 

(5.0

)%

 

 

34.6

%

(1)

Primary components in 2018 were a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) in 2018.

(2)

The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively.   
Schedule of Significant Components of Deferred Tax Assets and Liabilities The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):

 

 

 

2019

 

 

2018

 

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

Property, equipment, leases and intangibles

 

$

592

 

 

$

4,633

 

 

$

752

 

 

$

3,663

 

Employee benefits

 

 

1,256

 

 

 

—

 

 

 

595

 

 

 

31

 

Self-insurance accruals

 

 

585

 

 

 

—

 

 

 

494

 

 

 

—

 

Other

 

 

510

 

 

 

340

 

 

 

416

 

 

 

602

 

Net operating loss/credit carryforwards

 

 

1,139

 

 

 

—

 

 

 

1,146

 

 

 

—

 

Valuation allowances

 

 

(590

)

 

 

—

 

 

 

(711

)

 

 

—

 

 

 

$

3,492

 

 

$

4,973

 

 

$

2,692

 

 

$

4,296

 

 
Schedule of Net Deferred Tax Liabilities

The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions):

 

 

 

2019

 

 

2018

 

Noncurrent deferred tax assets(1)

 

$

1,340

 

 

$

1,263

 

Noncurrent deferred tax liabilities

 

 

(2,821

)

 

 

(2,867

)

 

 

$

(1,481

)

 

$

(1,604

)

 

(1)

Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets.

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of year

 

$

161

 

 

$

67

 

 

$

49

 

Increases for tax positions taken in the current year

 

 

—

 

 

 

3

 

 

 

—

 

Increases for tax positions taken in prior years

 

 

31

 

 

 

103

 

 

 

8

 

Increase for business acquisition

 

 

—

 

 

 

—

 

 

 

17

 

Decreases for tax positions taken in prior years

 

 

(4

)

 

 

(10

)

 

 

(1

)

Settlements

 

 

(21

)

 

 

(2

)

 

 

(4

)

Decreases from lapse of statute of limitations

 

 

—

 

 

 

—

 

 

 

(2

)

Changes due to currency translation

 

 

(3

)

 

 

—

 

 

 

—

 

Balance at end of year

 

$

164

 

 

$

161

 

 

$

67

 

 
v3.19.2
Retirement Plans (Tables)
 12 Months Ended
May 31, 2019
Retirement Plan Tables [Abstract]  
Schedule of Retirement Plan Costs

A summary of our retirement plans costs over the past three years is as follows (in millions):

 

 

2019

 

 

2018

 

 

2017

 

Defined benefit pension plans

 

$

111

 

 

$

150

 

 

$

234

 

Defined contribution plans

 

 

561

 

 

 

527

 

 

 

480

 

Postretirement healthcare plans

 

 

75

 

 

 

74

 

 

 

76

 

Retirement plans mark-to-market loss (gain)

 

 

3,882

 

 

 

(10

)

 

 

(24

)

 

 

$

4,629

 

 

$

741

 

 

$

766

 

 

The components of the MTM adjustments are as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate change

 

$

1,780

 

 

$

(613

)

 

$

266

 

Demographic experience:

 

 

 

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

739

 

 

 

419

 

 

 

268

 

   Change in future assumptions

 

 

887

 

 

 

(37

)

 

 

182

 

Actual versus expected return on assets

 

 

476

 

 

 

11

 

 

 

(740

)

Annuity contract purchase

 

 

—

 

 

 

210

 

 

 

—

 

Total mark-to-market loss (gain)

 

$

3,882

 

 

$

(10

)

 

$

(24

)
Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Discount rate used to determine benefit

   obligation

 

 

3.85

%

 

 

4.27

%

 

 

4.08

%

 

 

1.92

%

 

 

2.37

%

 

 

2.43

%

 

 

3.70

%

 

 

4.33

%

 

 

4.32

%

Discount rate used to determine net periodic

   benefit cost

 

 

4.27

 

 

 

4.08

 

 

 

4.13

 

 

 

2.34

 

 

 

2.43

 

 

 

2.46

 

 

 

4.33

 

 

 

4.32

 

 

 

4.43

 

Rate of increase in future compensation

   levels used to determine benefit obligation

 

 

5.10

 

 

 

4.43

 

 

 

4.47

 

 

 

2.27

 

 

 

2.26

 

 

 

2.42

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation levels

   used to determine net periodic benefit cost

 

 

4.43

 

 

 

4.47

 

 

 

4.46

 

 

 

2.22

 

 

 

2.42

 

 

 

2.82

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.75

 

 

 

6.50

 

 

 

6.50

 

 

 

3.12

 

 

 

3.09

 

 

 

3.18

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net

   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.20

 

 

 

2.20

 

 

 

2.30

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine

   benefit obligation

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.20

 

 

 

2.20

 

 

 

2.30

 

 

 

—

 

 

 

—

 

 

 

—

 
Schedule of Plan Assets at Measurement Date

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and our most significant international pension plans at the measurement date are presented in the following table (in millions):

 

 

Plan Assets at Measurement Date

 

 

 

2019

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target

Range

%(1)

 

Quoted Prices in

Active Markets

Level 1

 

 

Other Observable

Inputs

Level 2

 

 

Unobservable

Inputs

Level 3

 

Cash and cash equivalents

 

$

570

 

 

 

2

%

 

0 - 5%

 

$

50

 

 

$

520

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,546

 

 

 

11

 

 

 

 

 

875

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,306

 

 

 

14

 

 

 

 

 

2,700

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

1,451

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

731

 

 

 

3

 

 

 

 

 

730

 

 

 

1

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,794

 

 

 

29

 

 

 

 

 

 

 

 

 

6,794

 

 

 

 

 

Government(2)

 

 

5,384

 

 

 

23

 

 

 

 

 

 

 

 

 

3,742

 

 

 

 

 

Mortgage-backed and other(2)

 

 

622

 

 

 

3

 

 

 

 

 

 

 

 

 

175

 

 

 

 

 

Alternative investments(2)

 

 

1,963

 

 

 

9

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

302

 

Other

 

 

(47

)

 

 

—

 

 

 

 

 

(45

)

 

 

(2

)

 

 

 

 

Total U.S. plan assets

 

$

23,320

 

 

 

100

%

 

 

 

$

4,310

 

 

$

11,230

 

 

$

302

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57

 

 

 

4

 

 

 

 

$

57

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

72

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

206

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

322

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

438

 

 

 

32

 

 

 

 

 

290

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

167

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

112

 

 

 

8

 

 

 

 

 

10

 

 

 

17

 

 

 

 

 

Total international plan assets

 

$

1,374

 

 

 

100

%

 

 

 

$

357

 

 

$

17

 

 

 

 

 

 

(1)

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

 

(2)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

 

 

 

Plan Assets at Measurement Date

 

 

 

2018

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target

Range

%(1)

 

Quoted Prices in

Active Markets

Level 1

 

 

Other Observable

Inputs

Level 2

 

 

Unobservable

Inputs

Level 3

 

Cash and cash equivalents

 

$

714

 

 

 

3

%

 

0 - 5%

 

$

19

 

 

$

695

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,449

 

 

 

11

 

 

 

 

 

840

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,506

 

 

 

16

 

 

 

 

 

2,681

 

 

 

172

 

 

 

 

 

Global equities(2)

 

 

1,772

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

780

 

 

 

4

 

 

 

 

 

780

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

5,834

 

 

 

26

 

 

 

 

 

 

 

 

 

5,834

 

 

 

 

 

Government(2)

 

 

4,872

 

 

 

22

 

 

 

 

 

 

 

 

 

3,345

 

 

 

 

 

Mortgage-backed and other(2)

 

 

626

 

 

 

3

 

 

 

 

 

 

 

 

 

125

 

 

 

 

 

Alternative investments(2)

 

 

1,573

 

 

 

7

 

 

0 - 10

 

 

 

 

 

 

 

 

 

$

209

 

Other

 

 

(69

)

 

 

—

 

 

 

 

 

(62

)

 

 

(7

)

 

 

 

 

Total U.S. plan assets

 

$

22,057

 

 

 

100

%

 

 

 

$

4,258

 

 

$

10,164

 

 

$

209

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24

 

 

 

2

%

 

 

 

$

2

 

 

$

22

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

146

 

 

 

11

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

Global equities(2)

 

 

228

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

306

 

 

 

23

 

 

 

 

 

 

 

 

 

68

 

 

 

 

 

Government(2)

 

 

452

 

 

 

34

 

 

 

 

 

108

 

 

 

256

 

 

 

 

 

Mortgage-backed and other(2)

 

 

168

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

19

 

 

 

2

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

Other

 

 

(23

)

 

 

(2

)

 

 

 

 

(6

)

 

 

(17

)

 

 

 

 

Total international plan assets

 

$

1,320

 

 

 

100

%

 

 

 

$

104

 

 

$

418

 

 

 

 

 

 

(1)

Target ranges have not been provided for international plan assets as they are managed at an individual country level.

 

(2)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
Schedule of Change in Fair Value of Level 3 Assets

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

 

 

U.S. Pension Plans

 

 

 

2019

 

 

2018

 

Balance at beginning of year

 

$

209

 

 

$

129

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Assets held during current year

 

 

11

 

 

 

8

 

Assets sold during the year

 

 

13

 

 

 

4

 

Purchases, sales and settlements

 

 

69

 

 

 

68

 

Balance at end of year

 

$

302

 

 

$

209

 

 
Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status

The following tables provide a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2019 and a statement of the funded status as of May 31, 2019 and 2018 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Accumulated Benefit Obligation (“ABO”)

 

$

25,915

 

 

$

22,029

 

 

$

2,084

 

 

$

1,956

 

 

 

 

 

 

 

 

 

Changes in Projected Benefit Obligation (“PBO”)

   and Accumulated Postretirement Benefit

   Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

22,653

 

 

$

27,870

 

 

$

2,167

 

 

$

2,043

 

 

$

955

 

 

$

927

 

Service cost

 

 

689

 

 

 

679

 

 

 

94

 

 

 

97

 

 

 

35

 

 

 

36

 

Interest cost

 

 

951

 

 

 

1,115

 

 

 

49

 

 

 

49

 

 

 

40

 

 

 

39

 

Actuarial loss

 

 

3,016

 

 

 

21

 

 

 

127

 

 

 

(34

)

 

 

266

 

 

 

(9

)

Benefits paid

 

 

(755

)

 

 

(854

)

 

 

(38

)

 

 

(46

)

 

 

(123

)

 

 

(80

)

Settlements

 

 

—

 

 

 

(6,178

)

 

 

(13

)

 

 

(5

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(85

)

 

 

63

 

 

 

48

 

 

 

42

 

PBO/APBO at the end of year

 

$

26,554

 

 

$

22,653

 

 

$

2,301

 

 

$

2,167

 

 

$

1,221

 

 

$

955

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

22,057

 

 

$

24,933

 

 

$

1,509

 

 

$

1,379

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

984

 

 

 

1,609

 

 

 

94

 

 

 

49

 

 

 

—

 

 

 

—

 

Company contributions

 

 

1,034

 

 

 

2,547

 

 

 

91

 

 

 

84

 

 

 

73

 

 

 

42

 

Benefits paid

 

 

(755

)

 

 

(854

)

 

 

(38

)

 

 

(46

)

 

 

(123

)

 

 

(80

)

Settlements

 

 

—

 

 

 

(6,178

)

 

 

(13

)

 

 

(5

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(65

)

 

 

48

 

 

 

50

 

 

 

38

 

Fair value of plan assets at the end of year

 

$

23,320

 

 

$

22,057

 

 

$

1,578

 

 

$

1,509

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(3,234

)

 

$

(596

)

 

$

(723

)

 

$

(658

)

 

$

(1,221

)

 

$

(955

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

82

 

 

$

73

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare and

   other benefit obligations

 

 

(70

)

 

 

(22

)

 

 

(16

)

 

 

(16

)

 

 

(87

)

 

 

(62

)

Noncurrent pension, postretirement healthcare

   and other benefit obligations

 

 

(3,164

)

 

 

(574

)

 

 

(789

)

 

 

(715

)

 

 

(1,134

)

 

 

(893

)

Net amount recognized

 

$

(3,234

)

 

$

(596

)

 

$

(723

)

 

$

(658

)

 

$

(1,221

)

 

$

(955

)

Amounts Recognized in AOCI and not yet reflected

   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit) cost and other

 

$

(173

)

 

$

(292

)

 

$

(6

)

 

$

(10

)

 

$

1

 

 

$

2

 

 
Schedule of Components of Pension Plans

Our pension plans included the following components at May 31 (in millions):

 

 

 

PBO

 

 

Fair Value of

Plan Assets

 

 

Funded Status

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

26,300

 

 

$

23,320

 

 

$

(2,980

)

Nonqualified

 

 

254

 

 

 

—

 

 

 

(254

)

International Plans

 

 

2,301

 

 

 

1,578

 

 

 

(723

)

Total

 

$

28,855

 

 

$

24,898

 

 

$

(3,957

)

2018

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

22,413

 

 

$

22,057

 

 

$

(356

)

Nonqualified

 

 

240

 

 

 

—

 

 

 

(240

)

International Plans

 

 

2,167

 

 

 

1,509

 

 

 

(658

)

Total

 

$

24,820

 

 

$

23,566

 

 

$

(1,254

)
Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets

 

The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following tables present our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

 

 

 

PBO Exceeds the Fair Value

of Plan Assets

 

 

 

2019

 

 

2018

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

23,320

 

 

$

22,057

 

PBO

 

 

(26,554

)

 

 

(22,653

)

Net funded status

 

$

(3,234

)

 

$

(596

)

International Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

1,125

 

 

$

1,060

 

PBO

 

 

(1,929

)

 

 

(1,791

)

Net funded status

 

$

(804

)

 

$

(731

)

 

 

 

 

ABO Exceeds the Fair Value

of Plan Assets

 

 

 

2019

 

 

2018

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(25,915

)

 

$

(1,134

)

Fair value of plan assets

 

 

23,320

 

 

 

859

 

PBO

 

 

(26,554

)

 

 

(1,214

)

Net funded status

 

$

(3,234

)

 

$

(355

)

International Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(1,709

)

 

$

(1,581

)

Fair value of plan assets

 

 

1,120

 

 

 

1,060

 

PBO

 

 

(1,925

)

 

 

(1,791

)

Net funded status

 

$

(805

)

 

$

(731

)

(1)

ABO not used in determination of funded status.

Schedule of Contributions to Pension Plans

Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions):

 

 

2019

 

 

2018

 

Required

 

$

—

 

 

$

22

 

Voluntary

 

 

1,000

 

 

 

2,478

 

 

 

$

1,000

 

 

$

2,500

 

 
Schedule of Net Periodic Benefit Cost

Net periodic benefit cost for the three years ended May 31 were as follows (in millions):

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

689

 

 

$

679

 

 

$

638

 

 

$

94

 

 

$

97

 

 

$

83

 

 

$

35

 

 

$

36

 

 

$

36

 

Interest cost

 

 

951

 

 

 

1,115

 

 

 

1,128

 

 

 

49

 

 

 

49

 

 

 

43

 

 

 

40

 

 

 

39

 

 

 

39

 

Expected return on plan assets

 

 

(1,505

)

 

 

(1,624

)

 

 

(1,501

)

 

 

(47

)

 

 

(46

)

 

 

(38

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service credit

 

 

(118

)

 

 

(118

)

 

 

(118

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

(1

)

 

 

—

 

Actuarial losses (gains) and other

 

 

3,537

 

 

 

37

 

 

 

(95

)

 

 

80

 

 

 

(38

)

 

 

87

 

 

 

265

 

 

 

(9

)

 

 

(14

)

Net periodic benefit cost

 

$

3,554

 

 

$

89

 

 

$

52

 

 

$

174

 

 

$

60

 

 

$

173

 

 

$

340

 

 

$

65

 

 

$

61

 

 
Schedule of Expected Future Benefit Payments

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement

Healthcare Plans

 

2020

 

$

1,027

 

 

$

45

 

 

$

87

 

2021

 

 

971

 

 

 

46

 

 

 

98

 

2022

 

 

1,051

 

 

 

47

 

 

 

109

 

2023

 

 

1,138

 

 

 

55

 

 

 

117

 

2024

 

 

1,230

 

 

 

61

 

 

 

121

 

2025-2029

 

 

7,515

 

 

 

396

 

 

 

473

 
v3.19.2
Business Segments and Disaggregated Revenue (Tables)
 12 Months Ended
May 31, 2019
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract]  
Schedule of Segment Information

The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income (loss) and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:

 

 

 

FedEx

Express

Segment

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Corporate, other and eliminations

 

 

Consolidated

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

37,331

 

 

$

20,522

 

 

$

7,582

 

 

$

1,691

 

 

$

2,567

 

 

$

69,693

 

2018

 

 

36,172

 

 

 

18,395

 

 

 

6,812

 

 

 

1,650

 

 

 

2,421

 

 

 

65,450

 

2017

 

 

33,824

 

 

 

16,503

 

 

 

6,070

 

 

 

1,621

 

 

 

2,301

 

 

 

60,319

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

1,801

 

 

$

728

 

 

$

332

 

 

$

424

 

 

$

68

 

 

$

3,353

 

2018

 

 

1,679

 

 

 

681

 

 

 

296

 

 

 

382

 

 

 

57

 

 

 

3,095

 

2017

 

 

1,662

 

 

 

627

 

 

 

265

 

 

 

371

 

 

 

70

 

 

 

2,995

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019(1)

 

$

2,123

 

 

$

2,640

 

 

$

615

 

 

$

—

 

 

$

(912

)

 

$

4,466

 

2018(2)

 

 

2,105

 

 

 

2,529

 

 

 

490

 

 

 

—

 

 

 

(852

)

 

 

4,272

 

2017(3)

 

 

2,380

 

 

 

2,243

 

 

 

371

 

 

 

—

 

 

 

(428

)

 

 

4,566

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

33,247

 

 

$

17,561

 

 

$

4,736

 

 

$

6,972

 

 

$

(8,113

)

 

$

54,403

 

2018

 

 

31,753

 

 

 

15,458

 

 

 

4,251

 

(5)

 

6,377

 

 

 

(5,509

)

(5)

 

52,330

 

2017

 

 

31,307

 

 

 

12,969

 

 

 

3,740

 

(5)

 

5,682

 

 

 

(5,146

)

(5)

 

48,552

 

(1)

Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(2)

Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.

(3)

Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.

(4)

Segment assets include intercompany receivables.

(5)

Amounts revised for reclassification of eliminations.
Schedule of Segment Capital Expenditures

The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):

 

 

 

FedEx

Express

Segment

 

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Other

 

 

Consolidated

Total

 

2019

 

$

3,550

 

 

 

$

808

 

 

$

544

 

 

$

528

 

 

$

60

 

 

$

5,490

 

2018

 

 

3,461

 

 

 

 

1,178

 

 

 

490

 

 

 

477

 

 

 

57

 

 

 

5,663

 

2017

 

 

2,725

 

 

 

 

1,490

 

 

 

431

 

 

 

416

 

 

 

54

 

 

 

5,116

 
Schedule of Revenue by Service Type and Geographical Information

 

The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):

 

 

2019

 

 

2018(1)

 

 

2017(1)

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

7,663

 

 

$

7,273

 

 

$

6,955

 

U.S. overnight envelope

 

 

1,829

 

 

 

1,788

 

 

 

1,750

 

U.S. deferred

 

 

4,225

 

 

 

3,738

 

 

 

3,526

 

Total U.S. domestic package revenue

 

 

13,717

 

 

 

12,799

 

 

 

12,231

 

International priority

 

 

7,405

 

 

 

7,461

 

 

 

7,045

 

International economy

 

 

3,446

 

 

 

3,255

 

 

 

2,876

 

Total international export package revenue

 

 

10,851

 

 

 

10,716

 

 

 

9,921

 

International domestic(2)

 

 

4,540

 

 

 

4,637

 

 

 

4,277

 

Total package revenue

 

 

29,108

 

 

 

28,152

 

 

 

26,429

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

3,025

 

 

 

2,797

 

 

 

2,527

 

International priority

 

 

2,070

 

 

 

2,105

 

 

 

1,836

 

International economy

 

 

2,123

 

 

 

1,916

 

 

 

1,738

 

International airfreight

 

 

314

 

 

 

368

 

 

 

356

 

Total freight revenue

 

 

7,532

 

 

 

7,186

 

 

 

6,457

 

Other

 

 

691

 

 

 

834

 

 

 

938

 

Total FedEx Express segment

 

 

37,331

 

 

 

36,172

 

 

 

33,824

 

FedEx Ground segment

 

 

20,522

 

 

 

18,395

 

 

 

16,503

 

FedEx Freight segment

 

 

7,582

 

 

 

6,812

 

 

 

6,070

 

FedEx Services segment

 

 

1,691

 

 

 

1,650

 

 

 

1,621

 

Other and eliminations(3)

 

 

2,567

 

 

 

2,421

 

 

 

2,301

 

 

 

$

69,693

 

 

$

65,450

 

 

$

60,319

 

GEOGRAPHICAL INFORMATION(4)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

47,584

 

 

$

43,581

 

 

$

40,269

 

International:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

20,424

 

 

 

20,417

 

 

 

18,817

 

FedEx Ground segment

 

 

467

 

 

 

407

 

 

 

331

 

FedEx Freight segment

 

 

207

 

 

 

181

 

 

 

149

 

FedEx Services segment

 

 

1

 

 

 

3

 

 

 

10

 

Other

 

 

1,010

 

 

 

861

 

 

 

743

 

Total international revenue

 

 

22,109

 

 

 

21,869

 

 

 

20,050

 

 

 

$

69,693

 

 

$

65,450

 

 

$

60,319

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

33,189

 

 

$

30,362

 

 

$

28,141

 

International

 

 

8,128

 

 

 

8,627

 

 

 

7,783

 

 

 

$

41,317

 

 

$

38,989

 

 

$

35,924

 

(1)

Prior year amounts have been revised to conform to the current year presentation.

(2)

International domestic revenues relate to our intra-country operations.

(3)

Includes the FedEx Logistics operating segment.

(4)

International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.

v3.19.2
Supplemental Cash Flow Information (Tables)
 12 Months Ended
May 31, 2019
Supplemental Cash Flow Tables [Abstract]  
Supplemental Cash Flow

Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions):

 

 

 

2019

 

 

2018

 

 

2017

 

Cash payments for:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

617

 

 

$

524

 

 

$

484

 

Income taxes

 

$

407

 

 

$

760

 

 

$

397

 

Income tax refunds received

 

 

(36

)

 

 

(571

)

 

 

(20

)

Cash tax payments, net

 

$

371

 

 

$

189

 

 

$

377

 
v3.19.2
Commitments (Tables)
 12 Months Ended
May 31, 2019
Commitments Tables [Abstract]  
Schedule of Purchase Commitments

Annual purchase commitments under various contracts as of May 31, 2019 were as follows (in millions):

 

 

 

Aircraft and

Aircraft Related

 

 

Other(1)

 

 

Total

 

2020

 

$

1,518

 

 

$

898

 

 

$

2,416

 

2021

 

 

2,455

 

 

 

587

 

 

 

3,042

 

2022

 

 

1,862

 

 

 

383

 

 

 

2,245

 

2023

 

 

1,569

 

 

 

263

 

 

 

1,832

 

2024

 

 

492

 

 

 

140

 

 

 

632

 

Thereafter

 

 

2,456

 

 

 

400

 

 

 

2,856

 

Total

 

$

10,352

 

 

$

2,671

 

 

$

13,023

 

(1)

Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments The following table is a summary of the key aircraft we are committed to purchase as of May 31, 2019, with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2020

 

 

—

 

 

 

—

 

 

 

17

 

 

 

5

 

 

 

22

 

2021

 

 

12

 

 

 

5

 

 

 

18

 

 

 

2

 

 

 

37

 

2022

 

 

12

 

 

 

6

 

 

 

12

 

 

 

3

 

 

 

33

 

2023

 

 

12

 

 

 

6

 

 

 

6

 

 

 

4

 

 

 

28

 

2024

 

 

14

 

 

 

6

 

 

 

—

 

 

 

4

 

 

 

24

 

Thereafter

 

 

—

 

 

 

7

 

 

 

—

 

 

 

2

 

 

 

9

 

Total

 

 

50

 

 

 

30

 

 

 

53

 

 

 

20

 

 

 

153

 

 
v3.19.2
Summary of Quarterly Operating Results (Unaudited) (Tables)
 12 Months Ended
May 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Operating Results (Unaudited)

 

(in millions, except per share amounts)

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

2019(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

17,052

 

 

$

17,824

 

 

$

17,010

 

 

$

17,807

 

Operating income

 

 

1,071

 

 

 

1,168

 

 

 

911

 

 

 

1,316

 

Net income (loss)(2)

 

 

835

 

 

 

935

 

 

 

739

 

 

 

(1,969

)

Basic earnings (loss) per common share(3)

 

 

3.15

 

 

 

3.56

 

 

 

2.83

 

 

 

(7.56

)

Diluted earnings (loss) per common share(3)

 

 

3.10

 

 

 

3.51

 

 

 

2.80

 

 

 

(7.56

)

2018(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

15,297

 

 

$

16,313

 

 

$

16,526

 

 

$

17,314

 

Operating income

 

 

971

 

 

 

1,115

 

 

 

858

 

 

 

1,328

 

Net income (5)

 

 

596

 

 

 

775

 

 

 

2,074

 

 

 

1,127

 

Basic earnings per common share(3)

 

 

2.22

 

 

 

2.89

 

 

 

7.74

 

 

 

4.23

 

Diluted earnings per common share(3)

 

 

2.19

 

 

 

2.84

 

 

 

7.59

 

 

 

4.15

 

(1)

The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(2)

The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.   

(3)

The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.

(4)

The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.

(5)

The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
v3.19.2
Condensed Consolidating Financial Statements (Tables)
 12 Months Ended
May 31, 2019
Condensed Consolidating Financial Statements Tables [Abstract]  
Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

826

 

 

$

158

 

 

$

1,381

 

 

$

(46

)

 

$

2,319

 

Receivables, less allowances

 

 

56

 

 

 

5,603

 

 

 

3,684

 

 

 

(227

)

 

 

9,116

 

Spare parts, supplies, fuel, prepaid expenses and other,

   less allowances

 

 

366

 

 

 

953

 

 

 

332

 

 

 

—

 

 

 

1,651

 

Total current assets

 

 

1,248

 

 

 

6,714

 

 

 

5,397

 

 

 

(273

)

 

 

13,086

 

PROPERTY AND EQUIPMENT, AT COST

 

 

25

 

 

 

55,341

 

 

 

4,145

 

 

 

—

 

 

 

59,511

 

Less accumulated depreciation and amortization

 

 

17

 

 

 

27,066

 

 

 

1,999

 

 

 

—

 

 

 

29,082

 

Net property and equipment

 

 

8

 

 

 

28,275

 

 

 

2,146

 

 

 

—

 

 

 

30,429

 

INTERCOMPANY RECEIVABLE

 

 

2,877

 

 

 

(405

)

 

 

—

 

 

 

(2,472

)

 

 

—

 

GOODWILL

 

 

—

 

 

 

1,589

 

 

 

5,295

 

 

 

—

 

 

 

6,884

 

INVESTMENT IN SUBSIDIARIES

 

 

33,725

 

 

 

5,449

 

 

 

—

 

 

 

(39,174

)

 

 

—

 

OTHER ASSETS

 

 

995

 

 

 

1,811

 

 

 

1,789

 

 

 

(591

)

 

 

4,004

 

 

 

$

38,853

 

 

$

43,433

 

 

$

14,627

 

 

$

(42,510

)

 

$

54,403

 

LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

959

 

 

$

2

 

 

$

3

 

 

$

—

 

 

$

964

 

Accrued salaries and employee benefits

 

 

143

 

 

 

1,100

 

 

 

498

 

 

 

—

 

 

 

1,741

 

Accounts payable

 

 

16

 

 

 

1,469

 

 

 

1,808

 

 

 

(263

)

 

 

3,030

 

Accrued expenses

 

 

521

 

 

 

1,853

 

 

 

914

 

 

 

(10

)

 

 

3,278

 

Total current liabilities

 

 

1,639

 

 

 

4,424

 

 

 

3,223

 

 

 

(273

)

 

 

9,013

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

 

16,322

 

 

 

287

 

 

 

8

 

 

 

—

 

 

 

16,617

 

INTERCOMPANY PAYABLE

 

 

—

 

 

 

—

 

 

 

2,472

 

 

 

(2,472

)

 

 

—

 

OTHER LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

—

 

 

 

2,832

 

 

 

580

 

 

 

(591

)

 

 

2,821

 

Other liabilities

 

 

3,135

 

 

 

3,965

 

 

 

1,095

 

 

 

—

 

 

 

8,195

 

Total other long-term liabilities

 

 

3,135

 

 

 

6,797

 

 

 

1,675

 

 

 

(591

)

 

 

11,016

 

COMMON STOCKHOLDERS’ INVESTMENT

 

 

17,757

 

 

 

31,925

 

 

 

7,249

 

 

 

(39,174

)

 

 

17,757

 

 

 

$

38,853

 

 

$

43,433

 

 

$

14,627

 

 

$

(42,510

)

 

$

54,403

 

 

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,485

 

 

$

257

 

 

$

1,538

 

 

$

(15

)

 

$

3,265

 

Receivables, less allowances

 

 

3

 

 

 

4,970

 

 

 

3,586

 

 

 

(78

)

 

 

8,481

 

Spare parts, supplies, fuel, prepaid expenses and other,

   less allowances

 

 

425

 

 

 

878

 

 

 

292

 

 

 

—

 

 

 

1,595

 

Total current assets

 

 

1,913

 

 

 

6,105

 

 

 

5,416

 

 

 

(93

)

 

 

13,341

 

PROPERTY AND EQUIPMENT, AT COST

 

 

21

 

 

 

51,232

 

 

 

3,868

 

 

 

—

 

 

 

55,121

 

Less accumulated depreciation and amortization

 

 

17

 

 

 

25,111

 

 

 

1,839

 

 

 

—

 

 

 

26,967

 

Net property and equipment

 

 

4

 

 

 

26,121

 

 

 

2,029

 

 

 

—

 

 

 

28,154

 

INTERCOMPANY RECEIVABLE

 

 

1,487

 

 

 

924

 

 

 

—

 

 

 

(2,411

)

 

 

—

 

GOODWILL

 

 

—

 

 

 

1,709

 

 

 

5,264

 

 

 

—

 

 

 

6,973

 

INVESTMENT IN SUBSIDIARIES

 

 

33,370

 

 

 

4,082

 

 

 

—

 

 

 

(37,452

)

 

 

—

 

OTHER ASSETS

 

 

75

 

 

 

1,854

 

 

 

1,829

 

 

 

104

 

 

 

3,862

 

 

 

$

36,849

 

 

$

40,795

 

 

$

14,538

 

 

$

(39,852

)

 

$

52,330

 

LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

1,332

 

 

$

1

 

 

$

9

 

 

$

—

 

 

$

1,342

 

Accrued salaries and employee benefits

 

 

65

 

 

 

1,506

 

 

 

606

 

 

 

—

 

 

 

2,177

 

Accounts payable

 

 

16

 

 

 

1,332

 

 

 

1,719

 

 

 

(90

)

 

 

2,977

 

Accrued expenses

 

 

460

 

 

 

1,778

 

 

 

896

 

 

 

(3

)

 

 

3,131

 

Total current liabilities

 

 

1,873

 

 

 

4,617

 

 

 

3,230

 

 

 

(93

)

 

 

9,627

 

LONG-TERM DEBT, LESS CURRENT PORTION

 

 

14,942

 

 

 

288

 

 

 

13

 

 

 

—

 

 

 

15,243

 

INTERCOMPANY PAYABLE

 

 

—

 

 

 

—

 

 

 

2,411

 

 

 

(2,411

)

 

 

—

 

OTHER LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

—

 

 

 

2,626

 

 

 

137

 

 

 

104

 

 

 

2,867

 

Other liabilities

 

 

619

 

 

 

3,432

 

 

 

1,126

 

 

 

—

 

 

 

5,177

 

Total other long-term liabilities

 

 

619

 

 

 

6,058

 

 

 

1,263

 

 

 

104

 

 

 

8,044

 

COMMON STOCKHOLDERS’ INVESTMENT

 

 

19,415

 

 

 

29,832

 

 

 

7,621

 

 

 

(37,452

)

 

 

19,416

 

 

 

$

36,849

 

 

$

40,795

 

 

$

14,538

 

 

$

(39,852

)

 

$

52,330

 

 
Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

50,431

 

 

$

19,643

 

 

$

(381

)

 

$

69,693

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

138

 

 

 

19,055

 

 

 

5,583

 

 

 

—

 

 

 

24,776

 

Purchased transportation

 

 

—

 

 

 

10,344

 

 

 

6,494

 

 

 

(184

)

 

 

16,654

 

Rentals and landing fees

 

 

6

 

 

 

2,582

 

 

 

779

 

 

 

(7

)

 

 

3,360

 

Depreciation and amortization

 

 

1

 

 

 

2,877

 

 

 

475

 

 

 

—

 

 

 

3,353

 

Fuel

 

 

—

 

 

 

3,587

 

 

 

302

 

 

 

—

 

 

 

3,889

 

Maintenance and repairs

 

 

1

 

 

 

2,475

 

 

 

360

 

 

 

(2

)

 

 

2,834

 

Business realignment costs

 

 

320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

320

 

Intercompany charges, net

 

 

(765

)

 

 

(861

)

 

 

1,626

 

 

 

—

 

 

 

—

 

Other

 

 

299

 

 

 

6,674

 

 

 

3,256

 

 

 

(188

)

 

 

10,041

 

 

 

 

—

 

 

 

46,733

 

 

 

18,875

 

 

 

(381

)

 

 

65,227

 

OPERATING INCOME

 

 

—

 

 

 

3,698

 

 

 

768

 

 

 

—

 

 

 

4,466

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

540

 

 

 

174

 

 

 

—

 

 

 

(714

)

 

 

—

 

Interest, net

 

 

(586

)

 

 

54

 

 

 

3

 

 

 

—

 

 

 

(529

)

Other retirement plans expense

 

 

—

 

 

 

(2,675

)

 

 

(576

)

 

 

—

 

 

 

(3,251

)

Intercompany charges, net

 

 

606

 

 

 

(442

)

 

 

(164

)

 

 

—

 

 

 

—

 

Other, net

 

 

(20

)

 

 

53

 

 

 

(64

)

 

 

—

 

 

 

(31

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

540

 

 

 

862

 

 

 

(33

)

 

 

(714

)

 

 

655

 

Provision for income taxes

 

 

—

 

 

 

77

 

 

 

38

 

 

 

—

 

 

 

115

 

NET INCOME (LOSS)

 

$

540

 

 

$

785

 

 

$

(71

)

 

$

(714

)

 

$

540

 

COMPREHENSIVE INCOME (LOSS)

 

$

453

 

 

$

838

 

 

$

(324

)

 

$

(714

)

 

$

253

 

 

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

48,601

 

 

$

17,256

 

 

$

(407

)

 

$

65,450

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

149

 

 

 

18,380

 

 

 

5,266

 

 

 

—

 

 

 

23,795

 

Purchased transportation

 

 

—

 

 

 

9,134

 

 

 

6,191

 

 

 

(224

)

 

 

15,101

 

Rentals and landing fees

 

 

5

 

 

 

2,587

 

 

 

776

 

 

 

(7

)

 

 

3,361

 

Depreciation and amortization

 

 

1

 

 

 

2,644

 

 

 

450

 

 

 

—

 

 

 

3,095

 

Fuel

 

 

—

 

 

 

3,077

 

 

 

297

 

 

 

—

 

 

 

3,374

 

Maintenance and repairs

 

 

1

 

 

 

2,294

 

 

 

327

 

 

 

—

 

 

 

2,622

 

Goodwill and other asset impairment charges

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

380

 

Intercompany charges, net

 

 

(437

)

 

 

(125

)

 

 

562

 

 

 

—

 

 

 

—

 

Other

 

 

281

 

 

 

6,227

 

 

 

3,118

 

 

 

(176

)

 

 

9,450

 

 

 

 

—

 

 

 

44,218

 

 

 

17,367

 

 

 

(407

)

 

 

61,178

 

OPERATING INCOME (LOSS)

 

 

—

 

 

 

4,383

 

 

 

(111

)

 

 

—

 

 

 

4,272

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

4,572

 

 

 

62

 

 

 

—

 

 

 

(4,634

)

 

 

—

 

Interest, net

 

 

(541

)

 

 

46

 

 

 

(15

)

 

 

—

 

 

 

(510

)

Other retirements plans income

 

 

—

 

 

 

547

 

 

 

51

 

 

 

—

 

 

 

598

 

Intercompany charges, net

 

 

544

 

 

 

(296

)

 

 

(248

)

 

 

—

 

 

 

—

 

Other, net

 

 

(3

)

 

 

(120

)

 

 

116

 

 

 

—

 

 

 

(7

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

4,572

 

 

 

4,622

 

 

 

(207

)

 

 

(4,634

)

 

 

4,353

 

Provision for income taxes (benefit)

 

 

—

 

 

 

309

 

 

 

(528

)

 

 

—

 

 

 

(219

)

NET INCOME (LOSS)

 

$

4,572

 

 

$

4,313

 

 

$

321

 

 

$

(4,634

)

 

$

4,572

 

COMPREHENSIVE INCOME (LOSS)

 

$

4,489

 

 

$

4,263

 

 

$

291

 

 

$

(4,634

)

 

$

4,409

 

 

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

Year Ended May 31, 2017

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

REVENUES

 

$

—

 

 

$

44,823

 

 

$

15,798

 

 

$

(302

)

 

$

60,319

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

123

 

 

 

17,137

 

 

 

4,729

 

 

 

—

 

 

 

21,989

 

Purchased transportation

 

 

—

 

 

 

8,260

 

 

 

5,495

 

 

 

(125

)

 

 

13,630

 

Rentals and landing fees

 

 

5

 

 

 

2,517

 

 

 

724

 

 

 

(6

)

 

 

3,240

 

Depreciation and amortization

 

 

1

 

 

 

2,538

 

 

 

456

 

 

 

—

 

 

 

2,995

 

Fuel

 

 

—

 

 

 

2,476

 

 

 

297

 

 

 

—

 

 

 

2,773

 

Maintenance and repairs

 

 

1

 

 

 

2,086

 

 

 

287

 

 

 

—

 

 

 

2,374

 

Intercompany charges, net

 

 

(434

)

 

 

179

 

 

 

255

 

 

 

—

 

 

 

—

 

Other

 

 

304

 

 

 

5,734

 

 

 

2,885

 

 

 

(171

)

 

 

8,752

 

 

 

 

—

 

 

 

40,927

 

 

 

15,128

 

 

 

(302

)

 

 

55,753

 

OPERATING INCOME

 

 

—

 

 

 

3,896

 

 

 

670

 

 

 

—

 

 

 

4,566

 

OTHER (EXPENSE) INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

2,997

 

 

 

68

 

 

 

—

 

 

 

(3,065

)

 

 

—

 

Interest, net

 

 

(507

)

 

 

27

 

 

 

1

 

 

 

—

 

 

 

(479

)

Other retirements plans (expense) income

 

 

—

 

 

 

516

 

 

 

(45

)

 

 

—

 

 

 

471

 

Intercompany charges, net

 

 

508

 

 

 

(299

)

 

 

(209

)

 

 

—

 

 

 

—

 

Other, net

 

 

(1

)

 

 

(134

)

 

 

156

 

 

 

—

 

 

 

21

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

2,997

 

 

 

4,074

 

 

 

573

 

 

 

(3,065

)

 

 

4,579

 

Provision for income taxes

 

 

—

 

 

 

1,439

 

 

 

143

 

 

 

—

 

 

 

1,582

 

NET INCOME (LOSS)

 

$

2,997

 

 

$

2,635

 

 

$

430

 

 

$

(3,065

)

 

$

2,997

 

COMPREHENSIVE INCOME (LOSS)

 

$

2,922

 

 

$

2,580

 

 

$

314

 

 

$

(3,065

)

 

$

2,751

 

 
Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2019

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

66

 

 

$

4,885

 

 

$

693

 

 

$

(31

)

 

$

5,613

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(6

)

 

 

(4,920

)

 

 

(564

)

 

 

—

 

 

 

(5,490

)

Business acquisitions, net of cash acquired

 

 

—

 

 

 

(9

)

 

 

(57

)

 

 

—

 

 

 

(66

)

Proceeds from asset dispositions and other

 

 

(45

)

 

 

101

 

 

 

27

 

 

 

—

 

 

 

83

 

CASH USED IN INVESTING ACTIVITIES

 

 

(51

)

 

 

(4,828

)

 

 

(594

)

 

 

—

 

 

 

(5,473

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

193

 

 

 

(259

)

 

 

66

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

51

 

 

 

—

 

 

 

(51

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

106

 

 

 

(106

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

(1,310

)

 

 

(117

)

 

 

(9

)

 

 

—

 

 

 

(1,436

)

Proceeds from debt issuances

 

 

2,463

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,463

 

Proceeds from stock issuances

 

 

101

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

101

 

Dividends paid

 

 

(683

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(683

)

Purchase of treasury stock

 

 

(1,480

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,480

)

Other, net

 

 

(9

)

 

 

127

 

 

 

(122

)

 

 

—

 

 

 

(4

)

CASH USED IN FINANCING

   ACTIVITIES

 

 

(674

)

 

 

(143

)

 

 

(222

)

 

 

—

 

 

 

(1,039

)

Effect of exchange rate changes on cash

 

 

—

 

 

 

(13

)

 

 

(34

)

 

 

—

 

 

 

(47

)

Net decrease in cash and cash equivalents

 

 

(659

)

 

 

(99

)

 

 

(157

)

 

 

(31

)

 

 

(946

)

Cash and cash equivalents at beginning of period

 

 

1,485

 

 

 

257

 

 

 

1,538

 

 

 

(15

)

 

 

3,265

 

Cash and cash equivalents at end of period

 

$

826

 

 

$

158

 

 

$

1,381

 

 

$

(46

)

 

$

2,319

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2018

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

(2,837

)

 

$

6,767

 

 

$

712

 

 

$

32

 

 

$

4,674

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(1

)

 

 

(5,299

)

 

 

(363

)

 

 

—

 

 

 

(5,663

)

Business acquisitions, net of cash acquired

 

 

—

 

 

 

(44

)

 

 

(135

)

 

 

—

 

 

 

(179

)

Proceeds from sale of business

 

 

—

 

 

 

—

 

 

 

123

 

 

 

—

 

 

 

123

 

Proceeds from asset dispositions and other

 

 

(6

)

 

 

33

 

 

 

15

 

 

 

—

 

 

 

42

 

CASH USED IN INVESTING ACTIVITIES

 

 

(7

)

 

 

(5,310

)

 

 

(360

)

 

 

—

 

 

 

(5,677

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

1,529

 

 

 

(1,612

)

 

83

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

663

 

 

 

—

 

 

 

(663

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

98

 

 

 

(98

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

—

 

 

 

(22

)

 

 

(16

)

 

 

—

 

 

 

(38

)

Proceeds from debt issuance

 

 

1,480

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,480

 

Proceeds from stock issuances

 

 

327

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

327

 

Dividends paid

 

 

(535

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(535

)

Purchase of treasury stock

 

 

(1,017

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,017

)

Other, net

 

 

3

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

10

 

CASH PROVIDED BY (USED IN) FINANCING

   ACTIVITIES

 

 

2,450

 

 

 

(1,529

)

 

 

(694

)

 

 

—

 

 

 

227

 

Effect of exchange rate changes on cash

 

 

(5

)

 

 

4

 

 

 

73

 

 

 

—

 

 

 

72

 

Net increase (decrease) in cash and cash equivalents

 

 

(399

)

 

 

(68

)

 

 

(269

)

 

 

32

 

 

 

(704

)

Cash and cash equivalents at beginning of period

 

 

1,884

 

 

 

325

 

 

 

1,807

 

 

 

(47

)

 

 

3,969

 

Cash and cash equivalents at end of period

 

$

1,485

 

 

$

257

 

 

$

1,538

 

 

$

(15

)

 

$

3,265

 

 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Year Ended May 31, 2017

 

 

 

Parent

 

 

Guarantor

Subsidiaries

 

 

Non-

guarantor

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

CASH PROVIDED BY (USED IN) OPERATING

   ACTIVITIES

 

$

(1,155

)

 

$

5,254

 

 

$

835

 

 

$

(4

)

 

$

4,930

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

—

 

 

 

(4,694

)

 

 

(422

)

 

 

—

 

 

 

(5,116

)

Proceeds from asset dispositions and other

 

 

34

 

 

 

25

 

 

 

76

 

 

 

—

 

 

 

135

 

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

 

34

 

 

 

(4,669

)

 

 

(346

)

 

 

—

 

 

 

(4,981

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net transfers from (to) Parent

 

 

421

 

 

 

(518

)

 

 

97

 

 

 

—

 

 

 

—

 

Payment on loan between subsidiaries

 

 

41

 

 

 

(15

)

 

 

(26

)

 

 

—

 

 

 

—

 

Intercompany dividends

 

 

—

 

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

—

 

Principal payments on debt

 

 

—

 

 

 

(55

)

 

 

(27

)

 

 

—

 

 

 

(82

)

Proceeds from debt issuances

 

 

1,190

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,190

 

Proceeds from stock issuances

 

 

337

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

337

 

Dividends paid

 

 

(426

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(426

)

Purchase of treasury stock

 

 

(509

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(509

)

Other, net

 

 

(12

)

 

 

(13

)

 

 

43

 

 

 

—

 

 

 

18

 

CASH PROVIDED BY (USED IN) FINANCING

   ACTIVITIES

 

 

1,042

 

 

 

(600

)

 

 

86

 

 

 

—

 

 

 

528

 

Effect of exchange rate changes on cash

 

 

(11

)

 

 

14

 

 

 

(45

)

 

 

—

 

 

 

(42

)

Net increase (decrease) in cash and cash equivalents

 

 

(90

)

 

 

(1

)

 

 

530

 

 

 

(4

)

 

 

435

 

Cash and cash equivalents at beginning of period

 

 

1,974

 

 

 

326

 

 

 

1,277

 

 

 

(43

)

 

 

3,534

 

Cash and cash equivalents at end of period

 

$

1,884

 

 

$

325

 

 

$

1,807

 

 

$

(47

)

 

$

3,969

 
v3.19.2
Valuation and Qualifying Accounts (Tables)
 12 Months Ended
May 31, 2019
Valuation And Qualifying Accounts Tables Abstract  
Schedule of Valuation and Qualifying Accounts

SCHEDULE II

FEDEX CORPORATION

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED MAY 31, 2019, 2018 AND 2017

(IN MILLIONS)

 

 

 

 

 

 

 

ADDITIONS

 

 

 

 

 

 

 

 

 

DESCRIPTION

 

BALANCE

AT

BEGINNING

OF YEAR

 

 

CHARGED

TO

EXPENSES

 

 

CHARGED

TO

OTHER

ACCOUNTS

 

 

DEDUCTIONS

 

 

BALANCE

AT

END OF

YEAR

 

Accounts Receivable Reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

199

 

 

$

295

 

 

$

—

 

 

$

373

 

(a)

$

121

 

2018

 

 

115

 

 

 

246

 

 

 

—

 

 

 

162

 

(a)

 

199

 

2017

 

 

73

 

 

 

136

 

 

 

—

 

 

94

 

(a)

 

115

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

202

 

 

$

—

 

 

$

1,192

 

(b)

$

1,215

 

(c)

$

179

 

2018

 

 

137

 

 

 

—

 

 

 

1,173

 

(b)

 

1,108

 

(c)

 

202

 

2017

 

 

105

 

 

 

—

 

 

941

 

(b)

909

 

(c)

 

137

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

268

 

 

$

28

 

 

$

75

 

 

$

36

 

 

$

335

 

2018

 

 

237

 

 

 

27

 

 

 

6

 

 

 

2

 

 

 

268

 

2017

 

 

218

 

 

 

26

 

 

 

—

 

 

 

7

 

 

 

237

 

(a)

Uncollectible accounts written off, net of recoveries, and other adjustments.

(b)

Principally charged against revenue.

(c)

Service failures, rebills and other.

v3.19.2
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Apr. 30, 2018
USD ($)
May 31, 2019
USD ($)
air-craft
$ / shares
shares
Feb. 28, 2019
USD ($)
$ / shares
Nov. 30, 2018
$ / shares
 [1],[2]
Aug. 31, 2018
$ / shares
 [1],[2]
May 31, 2018
USD ($)
$ / shares
Feb. 28, 2018
$ / shares
 [2],[3]
Nov. 30, 2017
$ / shares
 [2],[3]
Aug. 31, 2017
$ / shares
 [2],[3]
May 31, 2019
USD ($)
air-craft
Employee
$ / shares
shares
May 31, 2018
USD ($)
$ / shares
shares
May 31, 2017
USD ($)
$ / shares
shares
Jan. 26, 2016
shares
Organization Consolidation And Presentation Of Financial Statements [Line Items]                          
Gross contract assets related to in-transit packages   $ 533       $ 542       $ 533 $ 542    
Contract assets net of deferred unearned revenue   364       363       364 363    
Contract liabilities related to advance payments from customers   $ 11       $ 13       $ 11 13    
Payment terms of customer contracts                   Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.      
Advertising and promotion expenses                   $ 468 442 $ 458  
Depreciable life range for majority of aircraft costs                   15 to 30 years      
Depreciation expense, excluding gains and losses on sales of property and equipment                   $ 3,353 3,095 2,995  
Interest costs capitalized                   $ 64 61 $ 41  
Number of Idle Aircraft | air-craft   7               7      
Number of months aircraft remained idle                   an average of 23 months      
Gain on sale of TNT express business                   $ 8 $ 85    
Stock repurchase program number of shares authorized to be repurchased | shares                         25,000,000
Number of shares repurchased | shares                   6,600,000 4,300,000 3,000,000  
Treasury stock acquired, average cost per share | $ / shares                   $ 222.94 $ 237.45 $ 172.13  
Payments for repurchase of common stock                   $ 1,480 $ 1,017 $ 509  
Stock repurchase program, remaining number of shares authorized to be repurchased | shares   5,100,000               5,100,000      
Dividends payable, date declared                   Jun. 10, 2019      
Dividends payable amount per share | $ / shares   $ 0.65               $ 0.65      
Dividends payable, date to be paid                   Jul. 08, 2019      
Dividends payable, date of record                   Jun. 24, 2019      
Number of employees left or voluntarily leaving | Employee                   1,500      
Business realignment costs   $ 316 $ 4             $ 320      
Diluted | $ / shares   $ (7.56) [1],[2] $ 2.80 [1],[2] $ 3.51 $ 3.10 $ 4.15 [2],[3] $ 7.59 $ 2.84 $ 2.19 $ 2.03 $ 16.79 $ 11.07  
Business Realignment Activities [Member]                          
Organization Consolidation And Presentation Of Financial Statements [Line Items]                          
Business realignment costs                   $ 320      
Business realignment costs, net of tax                   $ 243      
Diluted | $ / shares                   $ 0.91      
Business realignment costs paid at departure                   $ 220      
Minimum [Member]                          
Organization Consolidation And Presentation Of Financial Statements [Line Items]                          
Intangible assets amortization periods                   3 years      
Maximum [Member]                          
Organization Consolidation And Presentation Of Financial Statements [Line Items]                          
Intangible assets amortization periods                   15 years      
FedEx Express Segment [Member]                          
Organization Consolidation And Presentation Of Financial Statements [Line Items]                          
Gain on sale of TNT express business $ 85                        
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.
[3] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
v3.19.2
Description of Business and Summary of Significant Accounting Policies - Schedule of Depreciable Lives and Net Book Value of Our Property and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
Property Plant And Equipment [Line Items]    
Net property and equipment $ 30,429 $ 28,154
Wide-body Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 15 to 30 years  
Net property and equipment $ 11,975 10,463
Narrow-body and Feeder Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 5 to 18 years  
Net property and equipment $ 2,696 2,908
Package Handling and Ground Support Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 30 years  
Net property and equipment $ 4,157 4,028
Information Technology [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 2 to 10 years  
Net property and equipment $ 1,553 1,277
Vehicles And Trailers [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 15 years  
Net property and equipment $ 4,042 3,747
Facilities and Other Property [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 2 to 40 years  
Net property and equipment $ 6,006 $ 5,731
v3.19.2
Recent Accounting Guidance - Schedule of Recently Adopted Accounting Standards (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
 [1]
Feb. 28, 2019
 [1]
Nov. 30, 2018
 [1]
Aug. 31, 2018
 [1]
May 31, 2018
 [2]
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
May 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                      
Revenue $ 17,807 $ 17,010 $ 17,824 $ 17,052 $ 17,314 $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3],[4] $ 60,319 [3],[4]
Operating income 1,316 911 1,168 1,071 1,328 858 1,115 971 4,466 [5] 4,272 [6] 4,566 [7]
Other income (expense), net                 (3,811) 81 13
NET INCOME $ (1,969) [8] $ 739 [8] $ 935 [8] $ 835 [8] $ 1,127 [9] $ 2,074 [9] $ 775 [9] $ 596 [9] $ 540 4,572 2,997
Effect of Adoption of ASU 2017-07 [Member]                      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                      
Operating income                   (598) (471)
Other income (expense), net                   598 471
Reported [Member]                      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]                      
Revenue                   65,450 60,319
Operating income                   4,870 5,037
Other income (expense), net                   (517) (458)
NET INCOME                   $ 4,572 $ 2,997
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
[5] Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[6] Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.
[7] Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.
[8] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[9] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
v3.19.2
Recent Accounting Guidance - Additional Information (Details)
$ in Millions
May 31, 2019
USD ($)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Lease liability and related right-of-use asset $ 14,000
Sale Leaseback of Aircraft [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Cumulative-effect adjustment to equity $ 56
v3.19.2
Business Combinations - Additional Information (Details)
£ in Millions, $ in Millions
May 01, 2019
USD ($)
Mar. 23, 2018
USD ($)
Mar. 23, 2018
GBP (£)
Oct. 13, 2017
USD ($)
P2P Mailing Limited [Member]        
Business Acquisition [Line Items]        
Acquisition price   $ 135 £ 92  
FC (Flying Cargo) Express Ltd. [Member]        
Business Acquisition [Line Items]        
Acquisition price $ 67      
Northwest Research, Inc. [Member]        
Business Acquisition [Line Items]        
Acquisition price       $ 50
v3.19.2
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2019
May 31, 2017
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       $ 8,464
Accumulated impairment charges     $ (1,684) (1,310)
Goodwill $ 6,884 $ 6,973 6,884 7,154
Goodwill Roll Forward        
Beginning Goodwill at May 31 6,973 7,154    
Goodwill acquired 126 [1] 125 [2]    
Purchase adjustments and other [3] (215) 68    
Impairment charges [4]   (374)    
Ending Goodwill at May 31 6,884 6,973    
Accumulated impairment charges     (1,684) (1,310)
Corporate, Other and Eliminations [Member]        
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       395
Accumulated impairment charges     (374)  
Goodwill 51 395 46 395
Goodwill Roll Forward        
Beginning Goodwill at May 31 51 395    
Goodwill acquired [2]   32    
Purchase adjustments and other [3] (5) (2)    
Impairment charges [4]   (374)    
Ending Goodwill at May 31 46 51    
Accumulated impairment charges     (374)  
FedEx Express Segment [Member] | Operating Segments [Member]        
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       4,953
Goodwill 5,100 4,953 5,016 4,953
Goodwill Roll Forward        
Beginning Goodwill at May 31 5,100 4,953    
Goodwill acquired 126 [1] 76 [2]    
Purchase adjustments and other [3] (210) 71    
Ending Goodwill at May 31 5,016 5,100    
FedEx Ground Segment [Member] | Operating Segments [Member]        
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       827
Goodwill 840 827 840 827
Goodwill Roll Forward        
Beginning Goodwill at May 31 840 827    
Goodwill acquired [2]   14    
Purchase adjustments and other [3]   (1)    
Ending Goodwill at May 31 840 840    
FedEx Freight Segment [Member] | Operating Segments [Member]        
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       764
Accumulated impairment charges     (133) (133)
Goodwill 634 631 634 631
Goodwill Roll Forward        
Beginning Goodwill at May 31 634 631    
Goodwill acquired [2]   3    
Ending Goodwill at May 31 634 634    
Accumulated impairment charges     (133) (133)
FedEx Services Segment [Member] | Operating Segments [Member]        
Net Goodwill Detail [Abstract]        
Gross Goodwill at May 31       1,525
Accumulated impairment charges     (1,177) (1,177)
Goodwill 348 348 348 348
Goodwill Roll Forward        
Beginning Goodwill at May 31 348 348    
Ending Goodwill at May 31 $ 348 $ 348    
Accumulated impairment charges     $ (1,177) $ (1,177)
[1] Goodwill acquired relates to the acquisitions of Flying Cargo and the controlling interest in an existing joint venture with Swiss Post. See Note 3 for more information.
[2] Goodwill acquired relates to the acquisitions of Northwest Research and P2P. See Note 3 for more information.
[3] Primarily purchase price allocation-related adjustments, currency translation adjustments and acquired goodwill related to immaterial acquisitions.
[4] Impairment charges related to the goodwill impairment of FedEx Supply Chain described below.
v3.19.2
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Goodwill [Line Items]      
Goodwill impairment charges [1]   $ 374  
Intangible assets amortization expense $ 82 87 $ 91
Corporate, Other and Eliminations [Member]      
Goodwill [Line Items]      
Goodwill impairment charges [1]   $ 374  
[1] Impairment charges related to the goodwill impairment of FedEx Supply Chain described below.
v3.19.2
Goodwill and Other Intangible Assets - Schedule Of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 888 $ 885
Accumulated Amortization (472) (405)
Net Book Value 416 480
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 685 676
Accumulated Amortization (293) (250)
Net Book Value 392 426
Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 66 68
Accumulated Amortization (51) (39)
Net Book Value 15 29
Trademarks and other [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 137 141
Accumulated Amortization (128) (116)
Net Book Value $ 9 $ 25
v3.19.2
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details)
$ in Millions
May 31, 2019
USD ($)
Finite Lived Intangible Assets Future Amortization Expense Abstract  
2020 $ 64
2021 52
2022 45
2023 43
2024 $ 42
v3.19.2
Selected Current Liabilities (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
Accrued Liabilities Current [Abstract]    
Salaries $ 425 $ 498
Employee benefits, including variable compensation 552 933
Compensated absences 764 746
Accrued salaries and employee benefits 1,741 2,177
Self-insurance accruals 1,104 957
Taxes other than income taxes 304 334
Other 1,870 1,840
Accrued expenses $ 3,278 $ 3,131
v3.19.2
Long-term Debt and Other Financing Arrangements - Components of Long-term Debt (Net of Discounts and Debt Issuance Costs) (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
Debt Instrument [Line Items]    
Long Term Debt $ 17,518 $ 16,510
Other debt 1 4
Capital lease obligations 62 71
Total Debt and Capital Lease Obligations 17,581 16,585
Less current portion 964 1,342
LONG-TERM DEBT, LESS CURRENT PORTION 16,617 15,243
Senior Unsecured Debt Due 2019 8.00% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   750
Senior Unsecured Debt Due 2020 2.30% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 400 399
Senior Unsecured Debt Due 2022 3.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 497  
Senior Unsecured Debt Due 2023 2.625-2.70% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 747 746
Senior Unsecured Debt Due 2024 4.00% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 746 746
Senior Unsecured Debt Due 2025 3.20% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 696 695
Senior Unsecured Debt Due 2026 3.25% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 745 744
Senior Unsecured Debt Due 2027 3.30% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 446 445
Senior Unsecured Debt Issued 2028 3.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 495 495
Senior Unsecured Debt Issued 2029 4.20% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 396  
Senior Unsecured Debt Due 2034 4.90% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 495 495
Senior Unsecured Debt Due 2035 3.90% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 494 493
Senior Unsecured Debt Due 2043 3.875-4.10% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 984 983
Senior Unsecured Debt Due 2044 5.10% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 742 742
Senior Unsecured Debt Due 2045 4.10% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 641 640
Senior Unsecured Debt Due 2046 4.55-4.75% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 2,460 2,459
Senior Unsecured Debt Due 2047 4.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 735 735
Senior Unsecured Debt Due 2048 4.05% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 986 986
Senior Unsecured Debt Due 2049 4.95% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 835  
Senior Unsecured Debt Due 2065 4.50% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 246 246
Senior Unsecured Debt Due 2098 7.60% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 237 237
Euro Senior Unsecured Debt Due 2019 Floating Rate [Member]    
Debt Instrument [Line Items]    
Long Term Debt   582
Euro Senior Unsecured Debt Due 2020 0.50% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 559 581
Euro Senior Unsecured Debt Due 2022 0.70% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 713  
Euro Senior Unsecured Debt Due 2023 1.00% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 836 869
Euro Senior Unsecured Debt Due 2027 1.625% [Member]    
Debt Instrument [Line Items]    
Long Term Debt $ 1,387 $ 1,442
v3.19.2
Long-term Debt and Other Financing Arrangements - Additional Information (Details)
€ in Millions
 1 Months Ended 12 Months Ended
Jan. 31, 2019
USD ($)
Oct. 31, 2018
USD ($)
May 31, 2019
USD ($)
Jan. 31, 2019
EUR (€)
May 31, 2018
USD ($)
Line Of Credit Facility [Line Items]          
Long-term debt weighted-average interest rate     3.50%    
Long term debt, including current maturities and exclusive of capital leases fair value     $ 17,800,000,000   $ 16,600,000,000
Letter of Credit Maximum Sublimit Amount     $ 250,000,000    
Financial Covenant Terms Ratio     350.00%    
Financial Covenant Compliance Ratio     225.00%    
Letters Of Credit Outstanding     $ 53,000,000    
Commercial paper outstanding     0    
Letter of Credit Outstanding Sublimit Unused Amount     $ 197,000,000    
Five-Year Credit Agreement [Member]          
Line Of Credit Facility [Line Items]          
Line of Credit Facility, Term     5 years    
Line Of Credit Facility Maximum Borrowing Capacity     $ 2,000,000,000    
Line of Credit Facility, Expiration Date     Mar. 22, 2024    
364-Day Credit Agreement [Member]          
Line Of Credit Facility [Line Items]          
Line of Credit Facility, Term     364 days    
Line Of Credit Facility Maximum Borrowing Capacity     $ 1,500,000,000    
Line of Credit Facility, Expiration Date     Mar. 20, 2020    
Senior Unsecured Debt [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount $ 1,200,000,000 $ 1,250,000,000      
0.7% Fixed-rate Notes Due in May 2022 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount | €       € 640  
Fixed interest rate 0.70%     0.70%  
Debt instrument, maturity date May 13, 2022        
3.4% Fixed-rate Notes Due in January 2022 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount $ 500,000,000        
Fixed interest rate 3.40%     3.40%  
Debt instrument, maturity date Jan. 14, 2022        
Floating Rate Notes Due April 11, 2019 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount | €       € 500  
Debt instrument, maturity date Apr. 11, 2019        
4.20% Fixed-rate Notes Due in October 2028 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount   $ 400,000,000      
Fixed interest rate   4.20%      
Debt instrument, maturity date   Oct. 17, 2028      
4.95% Fixed-rate Notes Due in October 2048 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount   $ 850,000,000      
Fixed interest rate   4.95%      
Debt instrument, maturity date   Oct. 17, 2048      
8.000% Notes Due January 15, 2019 [Member]          
Line Of Credit Facility [Line Items]          
Debt instrument, face amount   $ 750,000,000      
Fixed interest rate   8.00%      
Debt instrument, maturity date   Jan. 15, 2019      
v3.19.2
Leases - Additional Information (Details)
 12 Months Ended
May 31, 2019
May 31, 2018
Other Lease Information (Details) [Abstract]    
Capital and operating leases expiration term various dates through 2051  
Percentage Total Aircraft Fleet Leased 6.00% 7.00%
Operating leases weighted-average remaining lease term 6 years  
v3.19.2
Leases - Schedule of Rent Expense Under Operating Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Operating Leases Rent Expense [Abstract]      
Minimum rentals $ 2,875 $ 2,913 $ 2,814
Contingent rentals [1] 222 194 178
Operating leases rent expense, total $ 3,097 $ 3,107 $ 2,992
[1] Contingent rentals are based on equipment usage.
v3.19.2
Leases - Schedule of Future Minimum Lease Payments, Operating Leases (Details)
$ in Millions
May 31, 2019
USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]  
2020 $ 2,497
2021 2,263
2022 2,028
2023 1,779
2024 1,486
Thereafter 8,062
Total 18,115
Aircraft and Related Equipment [Member]  
Schedule of Future Minimum Operating Lease Payments [Line Items]  
2020 288
2021 230
2022 212
2023 154
2024 58
Thereafter 85
Total 1,027
Facilities and Other [Member]  
Schedule of Future Minimum Operating Lease Payments [Line Items]  
2020 2,209
2021 2,033
2022 1,816
2023 1,625
2024 1,428
Thereafter 7,977
Total $ 17,088
v3.19.2
Preferred Stock - Additional Information (Details)
May 31, 2019
$ / shares
shares
Preferred Stock Number Of Shares Par Value And Other Disclosures [Abstract]  
Preferred Stock Shares Authorized 4,000,000
Preferred Stock Par Value | $ / shares $ 0
Preferred Stock Shares Issued 0
v3.19.2
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance $ 19,416 $ 16,073 $ 13,784
Translation adjustments (195) (74) (171)
Ending balance 17,757 19,416 16,073
Foreign Currency Translation Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (759) (685) (514)
Translation adjustments (195) (74) (171)
Ending balance (954) (759) (685)
Retirement Plans Adjustments [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance 181 270 345
Prior service credit and other arising during period   (4) 1
Reclassifications from AOCI (92) (85) (76)
Ending balance 89 181 270
Accumulated Other Comprehensive Loss      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning balance (578) (415) (169)
Ending balance $ (865) $ (578) $ (415)
v3.19.2
Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Salaries and employee benefits $ 120 $ 121 $ 120
Provision for income taxes (28) (36) (44)
Net income $ 92 $ 85 $ 76
v3.19.2
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]      
Stock-based compensation expense $ 174 $ 167 $ 154
v3.19.2
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Share Based Compensation Arrangement Stock Options [Abstract]      
Stock option vesting period range one to four years    
Percentage of options vesting ratably over four years 82.00%    
Restricted stock expiration period ratably over a four-year period    
Stock-based compensation, key assumptions of valuation method Black-Scholes    
Maximum term of stock options 10 years    
Restricted stock granted 149,579 155,624 153,984
Restricted stock, weighted-average fair value $ 253.28 $ 212.60 $ 166.12
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Abstract      
Total unrecognized compensation cost, net of estimated forfeitures $ 221    
Stock option remaining weighted average vesting period 2 years    
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant [Abstract]      
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant 10.00%    
v3.19.2
Stock-Based Compensation - Schedule of Stock Based Compensation Key Assumptions for Valuation (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Weighted-average Black-Scholes value $ 61.42 $ 55.72 $ 43.99
Intrinsic value of options exercised $ 122 $ 359 $ 274
Expected lives 6 years 4 months 24 days 6 years 6 months 6 years 6 months
Expected volatility 21.00% 23.00% 25.00%
Risk-free interest rate 2.94% 2.07% 1.64%
Dividend yield 0.935% 0.796% 0.719%
v3.19.2
Stock-Based Compensation - Schedule of Stock Option Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2019
USD ($)
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward  
Stock Options, Outstanding at June 1, 2018 12,984,917
Stock Options, Granted 2,383,158
Stock Options, Exercised (1,112,160)
Stock Options, Forfeited (633,400)
Stock Options, Outstanding at May 31, 2019 13,622,515
Stock Options, Exercisable 8,344,344
Stock Options, Expected to vest 4,950,924
Stock Options, Available for future grants 13,894,509
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract]  
Weighted-Average Exercise Price, Outstanding at June 1, 2018 | $ / shares $ 147.98
Weighted-Average Exercise Price, Granted | $ / shares 244.16
Weighted-Average Exercise Price, Exercised | $ / shares 91.01
Weighted-Average Exercise Price, Forfeited | $ / shares 212.85
Weighted-Average Exercise Price, Outstanding at May 31, 2019 | $ / shares 166.89
Weighted-Average Exercise Price, Exercisable | $ / shares 134.70
Weighted-Average Exercise Price, Expected to vest | $ / shares $ 217.78
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Term (in years) [Abstract]  
Weighted-Average Remaining Contractual Term, Outstanding at May 31, 2019 6 years 1 month 6 days
Weighted-Average Remaining Contractual Term, Exercisable 4 years 9 months 18 days
Weighted-Average Remaining Contractual Term, Expected to vest 8 years 3 months 18 days
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract  
Aggregate Intrinsic Value, Outstanding at May 31, 2018 | $ $ 260 [1]
Aggregate Intrinsic Value, Exercisable | $ $ 260 [1]
[1] Only presented for options with market value at May 31, 2019 in excess of the exercise price of the option.
v3.19.2
Stock-Based Compensation - Schedule of Vested and Unvested Restricted Stock (Details) - $ / shares
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward      
Restricted Stock, Unvested at June 1, 2018 337,590    
Restricted Stock, Granted 149,579 155,624 153,984
Restricted Stock, Vested (153,734)    
Restricted Stock, Forfeited (8,957)    
Restricted Stock, Unvested at May 31, 2019 324,478 337,590  
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value Roll Forward      
Weighted-Average Grant Date Fair Value, Unvested at June 1, 2018 $ 185.16    
Weighted-Average Grant Date Fair Value, Granted 253.28 $ 212.60 $ 166.12
Weighted-Average Grant Date Fair Value, Vested 180.65    
Weighted-Average Grant Date Fair Value, Forfeited 218.08    
Weighted-Average Grant Date Fair Value, Unvested at May 31, 2019 $ 217.76 $ 185.16  
v3.19.2
Stock-Based Compensation - Schedule of Stock Option Vesting (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract      
Vested during the year 2,249,301 2,465,493 2,427,837
Fair value $ 115 $ 112 $ 104
v3.19.2
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
 [2],[3]
Feb. 28, 2019
 [2],[3]
Nov. 30, 2018
 [2],[3]
Aug. 31, 2018
 [2],[3]
May 31, 2018
 [3],[4]
Feb. 28, 2018
 [3],[4]
Nov. 30, 2017
 [3],[4]
Aug. 31, 2017
 [3],[4]
May 31, 2019
May 31, 2018
May 31, 2017
Basic earnings per common share:                      
Net earnings allocable to common shares [1]                 $ 539 $ 4,566 $ 2,993
Weighted-average common shares                 262.0 267.0 266.0
Basic earnings per common share $ (7.56) $ 2.83 $ 3.56 $ 3.15 $ 4.23 $ 7.74 $ 2.89 $ 2.22 $ 2.06 $ 17.08 $ 11.24
Diluted earnings per common share:                      
Net earnings allocable to common shares [1]                 $ 539 $ 4,566 $ 2,993
Weighted-average common shares                 262.0 267.0 266.0
Dilutive effect of share-based awards                 3.0 5.0 4.0
Weighted-average diluted shares                 265.0 272.0 270.0
Diluted earnings per common share $ (7.56) $ 2.80 $ 3.51 $ 3.10 $ 4.15 $ 7.59 $ 2.84 $ 2.19 $ 2.03 $ 16.79 $ 11.07
Anti-dilutive options excluded from diluted earnings per common share                 5.4 2.5 4.5
[1] Net earnings available to participating securities were immaterial in all periods presented.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[3] The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.
[4] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
v3.19.2
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Feb. 28, 2019
Nov. 30, 2018
May 31, 2019
May 31, 2018
May 31, 2017
Current provision (benefit)          
Federal     $ (107) $ (540) $ 269
State and local     64 43 88
Foreign     243 461 285
Current Provision, Total     200 (36) 642
Deferred provision (benefit)          
Federal     (61) 271 989
State and local     (7) 125 59
Foreign     (17) (579) (108)
Deferred Provision, Total     (85) (183) 940
Provision for Income Taxes, Total $ 90 $ 60 $ 115 $ (219) $ 1,582
v3.19.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 7 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
Nov. 30, 2018
Aug. 31, 2018
May 31, 2018
Feb. 28, 2018
Nov. 30, 2017
Dec. 31, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Income Taxes [Line Items]                      
Earnings From Foreign Operations                 $ 929 $ 958 $ 919
Statutory Federal Income Tax Rate               35.00% 21.00% 29.20% 35.00%
Benefit from reduction of valuation allowance on tax loss carryforwards                 $ 90    
Income tax benefit related to lower statutory Income tax rate on earnings $ 200 $ 60 $ 150 $ 135 $ 100 $ 165     40    
Income tax benefit from accelerated deductions to be claimed on 2018 tax return                 75    
Provisional benefit related to remeasurement of net U.S. deferred tax liability           (1,150)       $ (1,150)  
Tax benefit from corporate structuring transactions         255         255 [1] $ 68 [1]
Tax benefits from foreign tax credits         133 12 $ 80   8 225  
Impact on tax rate, amount                 50 6  
Recognition of benefit from TCJA                 8 225  
Recognition of benefit reversal, if unsuccessful                 233    
Provisional benefit related to remeasurement of net U.S. deferred tax liability, income tax expense amount recognized                 4    
Unrecognized Tax Benefits That Would Impact Effective Tax Rate 141       142       141 142  
Unrecognized Tax Benefits Accrued Income Tax Penalties And Interest 38       $ 35       38 35  
Foreign Country [Member]                      
Income Taxes [Line Items]                      
Operating Loss Carryforwards 3,400               3,400    
State And Local Jurisdiction [Member]                      
Income Taxes [Line Items]                      
Operating Loss Carryforwards $ 780               780    
U.S. Plans [Member]                      
Income Taxes [Line Items]                      
Income tax benefit related to lower statutory Income tax rate on earnings                   265  
Additional provisional amount recognized one time benefit           $ 204       204  
Defined benefit plan contributions by employer for one-time benefit                   $ 1,500  
Adoption of U.S. Foreign Currency Tax Regulations [Member]                      
Income Taxes [Line Items]                      
Impact on tax rate, amount                     $ 62
Netherlands [Member]                      
Income Taxes [Line Items]                      
Expense from the impact on deferred taxes attributable to a lower enacted tax rate                 $ 50    
[1] The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively.
v3.19.2
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Feb. 28, 2019
Nov. 30, 2018
May 31, 2018
Feb. 28, 2018
Nov. 30, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]                
Taxes computed at federal statutory rate           $ 138 $ 1,271 $ 1,603
Non-deductible expenses           79 81 76
Valuation allowance           (79) 31 44
TCJA [1]           (71) (1,354)  
Foreign tax rate enactments           50 6  
State and local income taxes, net of federal benefit           44 119 99
Benefits from share-based payments           (18) (60) (55)
Uncertain tax positions           8 86  
Foreign tax credits from distributions     $ (133) $ (12) $ (80) (8) (225)  
Foreign operations           (1) 25 (5)
Corporate structuring transactions     $ (255)       (255) [2] (68) [2]
Goodwill impairment charge             109  
Other, net           (27) (53) (112)
PROVISION FOR INCOME TAXES (BENEFIT) $ 90 $ 60       $ 115 $ (219) $ 1,582
Effective Tax Rate           17.60% (5.00%) 34.60%
[1] Primary components in 2018 were a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) in 2018.
[2] The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively.
v3.19.2
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Feb. 28, 2018
May 31, 2019
May 31, 2018
May 31, 2017
Income Taxes [Line Items]        
Provisional benefit related to remeasurement of net U.S. deferred tax liability $ (1,150)   $ (1,150)  
Foreign deferred tax benefits   $ (17) (579) $ (108)
U.S. deferred tax expenses   $ (61) 271 989
Corporate Structuring Transactions [Member]        
Income Taxes [Line Items]        
Foreign deferred tax benefits     434 94
U.S. deferred tax expenses     179 $ 26
U.S. Plans [Member]        
Income Taxes [Line Items]        
Additional provisional amount recognized one time benefit $ 204   $ 204  
v3.19.2
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
Components Of Deferred Tax Assets And Liabilities [Abstract]    
Property, equipment, leases and intangibles $ 592 $ 752
Employee benefits 1,256 595
Self-insurance accruals 585 494
Other 510 416
Net operating loss/credit carryforwards 1,139 1,146
Valuation allowances (590) (711)
Deferred Tax Assets, Net 3,492 2,692
Property, equipment, leases and intangibles 4,633 3,663
Employee benefits   31
Other 340 602
Deferred Tax Liabilities $ 4,973 $ 4,296
v3.19.2
Income Taxes - Schedule of Net Deferred Tax Liabilities (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
Deferred Tax Assets Liabilities Net [Abstract]    
Noncurrent deferred tax assets [1] $ 1,340 $ 1,263
Noncurrent deferred tax liabilities (2,821) (2,867)
Net deferred tax liabilities $ (1,481) $ (1,604)
[1] Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets.
v3.19.2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward      
Balance at beginning of year $ 161 $ 67 $ 49
Increases for tax positions taken in the current year   3  
Increases for tax positions taken in prior years 31 103 8
Increase for business acquisition     17
Decreases for tax positions taken in prior years (4) (10) (1)
Settlements (21) (2) (4)
Decreases from lapse of statute of limitations     (2)
Changes due to currency translation (3)    
Balance at end of year $ 164 $ 161 $ 67
v3.19.2
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2019
May 31, 2018
May 31, 2017
Pension And Other Postretirement Benefit Expense [Abstract]          
Defined benefit pension plans     $ 111 $ 150 $ 234
Defined contribution plans     561 527 480
Postretirement healthcare plans     75 74 76
Retirement plans mark-to-market loss (gain) $ 3,900 $ (10) 3,882 (10) (24)
Retirement plans costs     $ 4,629 $ 741 $ 766
v3.19.2
Retirement Plans - Schedule of MTM Adjustments (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2019
May 31, 2018
May 31, 2017
Actuarial Gain Loss By Component Pre Tax [Abstract]          
Discount rate change     $ 1,780 $ (613) $ 266
Demographic experience:          
Current year actuarial loss     739 419 268
Change in future assumptions     887 (37) 182
Actual versus expected return on assets     476 11 (740)
Annuity contract purchase       210  
Total mark-to-market loss (gain) $ 3,900 $ (10) $ 3,882 $ (10) $ (24)
v3.19.2
Retirement Plans - Additional Information (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
May 31, 2018
USD ($)
RetireeandBeneficiary
May 31, 2017
USD ($)
Employee
Feb. 28, 2018
USD ($)
May 31, 2020
USD ($)
May 31, 2019
USD ($)
May 31, 2018
USD ($)
May 31, 2017
USD ($)
May 31, 2016
Defined Benefit Plan Disclosure [Line Items]                
U.S. pension plan actual rate of return on assets         4.05% 6.30% 9.20%  
Weighted average discount rate percent all pension postretirement plans         3.69% 4.11% 3.98% 4.04%
Actual rate of return on plan assets for the 15-year period         7.50%      
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax         $ 92,000,000 $ 89,000,000 $ 75,000,000  
Defined benefit plan health care cost trend rate assumed for next fiscal year         6.00%      
Defined benefit plan ultimate health care cost trend rate         4.50%      
Defined benefit plan year that rate reaches ultimate trend rate         2037      
Metropolitan Life Insurance Company [Member]                
Defined Benefit Plan Disclosure [Line Items]                
One-time settlement loss $ 210,000,000              
U.S. Plans [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Defined benefit plan contributions by employer     $ 1,500,000,000   $ 1,000,000,000 $ 2,500,000,000    
Pension Plans [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Expected long-term rate of return on assets         6.75% 6.50% 6.50%  
Pension Plans [Member] | U.S. Plans [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Expected long-term rate of return on assets         6.75% 6.50% 6.50%  
Number of former employees elected to receive lump sum distribution | Employee   18,300            
Lump sum amount paid to former employees   $ 1,300,000,000            
Group annuity contract and transfer           $ 6,178,000,000    
Defined benefit plan contributions by employer         $ 1,034,000,000 2,547,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost         118,000,000 118,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax         91,000,000 83,000,000    
Pension Plans [Member] | U.S. Plans [Member] | Scenario Forecast [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Defined benefit plan contributions by employer       $ 0        
Pension Plans [Member] | U.S. Plans [Member] | Metropolitan Life Insurance Company [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Defined benefit plan responsibility transferred to number of retirees and beneficiaries | RetireeandBeneficiary 41,000              
Group annuity contract and transfer $ 6,000,000,000              
Voluntary Contribution [Member] | U.S. Plans [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Defined benefit plan contributions by employer         $ 1,000,000,000 $ 2,478,000,000    
Voluntary Contribution [Member] | U.S. Plans [Member] | Scenario Forecast [Member]                
Defined Benefit Plan Disclosure [Line Items]                
Defined benefit plan contributions by employer       $ 1,000,000,000        
v3.19.2
Retirement Plans - Schedule of Weighted Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of our Plans (Details)
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Pension Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Expected long-term rate of return on assets 6.75% 6.50% 6.50%
Pension Plans [Member] | U.S. Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 3.85% 4.27% 4.08%
Discount rate used to determine net periodic benefit cost 4.27% 4.08% 4.13%
Rate of increase in future compensation levels used to determine benefit obligation 5.10% 4.43% 4.47%
Rate of increase in future compensation levels used to determine net periodic benefit cost 4.43% 4.47% 4.46%
Expected long-term rate of return on assets 6.75% 6.50% 6.50%
Interest crediting rate used to determine net periodic benefit cost 4.00% 4.00% 4.00%
Interest crediting rate used to determine benefit obligation 4.00% 4.00% 4.00%
Pension Plans [Member] | International Pension Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 1.92% 2.37% 2.43%
Discount rate used to determine net periodic benefit cost 2.34% 2.43% 2.46%
Rate of increase in future compensation levels used to determine benefit obligation 2.27% 2.26% 2.42%
Rate of increase in future compensation levels used to determine net periodic benefit cost 2.22% 2.42% 2.82%
Expected long-term rate of return on assets 3.12% 3.09% 3.18%
Interest crediting rate used to determine net periodic benefit cost 2.20% 2.20% 2.30%
Interest crediting rate used to determine benefit obligation 2.20% 2.20% 2.30%
Postretirement Healthcare Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 3.70% 4.33% 4.32%
Discount rate used to determine net periodic benefit cost 4.33% 4.32% 4.43%
v3.19.2
Retirement Plans - Schedule of Weighted-Average Asset Allocations for U.S Pension Plans and International Pension Plans (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
May 31, 2017
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 24,898 $ 23,566  
U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 23,320 $ 22,057 $ 24,933
Actual % 100.00% 100.00%  
U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 570 $ 714  
Actual % 2.00% 3.00%  
U.S. Plans [Member] | Cash And Cash Equivalents [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 0.00% 0.00%  
U.S. Plans [Member] | Cash And Cash Equivalents [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 5.00% 5.00%  
International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 1,578 $ 1,509 1,379
Portion of Fair Value of Plan Assets $ 1,374 $ 1,320  
Actual % 100.00% 100.00%  
International Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets $ 57 $ 24  
Actual % 4.00% 2.00%  
U.S. Large Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 2,546 $ 2,449  
Actual % [2] 11.00% 11.00%  
International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 3,306 $ 3,506  
Actual % [2] 14.00% 16.00%  
International Equity Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 72 $ 146  
Actual % [2] 5.00% 11.00%  
Global Equity Funds [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 1,451 $ 1,772  
Actual % [2] 6.00% 8.00%  
Global Equity Funds [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 206 $ 228  
Actual % [2] 15.00% 17.00%  
U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 731 $ 780  
Actual % 3.00% 4.00%  
Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 6,794 $ 5,834  
Actual % 29.00% 26.00%  
Corporate Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 322 $ 306  
Actual % [2] 24.00% 23.00%  
Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 5,384 $ 4,872  
Actual % [2] 23.00% 22.00%  
Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 438 $ 452  
Actual % [2] 32.00% 34.00%  
Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 622 $ 626  
Actual % [2] 3.00% 3.00%  
Mortgage Backed And Other Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 167 $ 168  
Actual % [2] 12.00% 13.00%  
Alternative investments [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 1,963 $ 1,573  
Actual % [2] 9.00% 7.00%  
Alternative investments [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1],[2] 0.00% 0.00%  
Alternative investments [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1],[2] 15.00% 10.00%  
Alternative investments [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets   $ 19  
Actual %   2.00%  
Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Liabilities $ (47) $ (69)  
Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 112    
Actual % [2] 8.00%    
Portion of Fair Value of Plan Liabilities   $ (23)  
Actual %   (2.00%)  
Total Equities [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 30.00% 30.00%  
Total Equities [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 50.00% 50.00%  
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 50.00% 50.00%  
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % [1] 70.00% 70.00%  
Fair Value Inputs Level 1 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 4,310 $ 4,258  
Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 50 19  
Fair Value Inputs Level 1 [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 357 104  
Fair Value Inputs Level 1 [Member] | International Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 57 2  
Fair Value Inputs Level 1 [Member] | U.S. Large Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 875 840  
Fair Value Inputs Level 1 [Member] | International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 2,700 2,681  
Fair Value Inputs Level 1 [Member] | U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 730 780  
Fair Value Inputs Level 1 [Member] | Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] 290 108  
Fair Value Inputs Level 1 [Member] | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Liabilities (45) (62)  
Fair Value Inputs Level 1 [Member] | Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] 10    
Portion of Fair Value of Plan Liabilities   (6)  
Fair Value Inputs Level 2 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 11,230 10,164  
Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 520 695  
Fair Value Inputs Level 2 [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 17 418  
Fair Value Inputs Level 2 [Member] | International Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets   22  
Fair Value Inputs Level 2 [Member] | International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2]   172  
Fair Value Inputs Level 2 [Member] | International Equity Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2]   70  
Fair Value Inputs Level 2 [Member] | U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 1    
Fair Value Inputs Level 2 [Member] | Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 6,794 5,834  
Fair Value Inputs Level 2 [Member] | Corporate Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2]   68  
Fair Value Inputs Level 2 [Member] | Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 3,742 3,345  
Fair Value Inputs Level 2 [Member] | Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2]   256  
Fair Value Inputs Level 2 [Member] | Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 175 125  
Fair Value Inputs Level 2 [Member] | Alternative investments [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets   19  
Fair Value Inputs Level 2 [Member] | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Liabilities (2) (7)  
Fair Value Inputs Level 2 [Member] | Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] 17    
Portion of Fair Value of Plan Liabilities   (17)  
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 302 209 $ 129
Fair Value Inputs Level 3 [Member] | Alternative investments [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 302 $ 209  
[1] Target ranges have not been provided for international plan assets as they are managed at an individual country level.
[2] Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
v3.19.2
Retirement Plans - Schedule of Change in Fair Value of Level 3 Assets (Details) - Pension Plans [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year $ 23,566  
Actual return on plan assets:    
Balance at end of year 24,898 $ 23,566
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 22,057 24,933
Actual return on plan assets:    
Balance at end of year 23,320 22,057
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 209 129
Actual return on plan assets:    
Assets held during current year 11 8
Assets sold during the year 13 4
Purchases, sales and settlements 69 68
Balance at end of year $ 302 $ 209
v3.19.2
Retirement Plans - Reconciliation of Changes In Pension And Postretirement Healthcare Plans Benefit Obligations And Fair Value Of Assets (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Feb. 28, 2018
May 31, 2019
May 31, 2018
May 31, 2017
U.S. Plans [Member]        
Change in Plan Assets        
Company contributions $ 1,500 $ 1,000 $ 2,500  
Pension Plans [Member]        
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)        
PBO/APBO at the beginning of year   24,820    
PBO/APBO at the end of year   28,855 24,820  
Change in Plan Assets        
Balance at beginning of year   23,566    
Balance at end of year   24,898 23,566  
Funded Status of the Plans   (3,957) (1,254)  
Pension Plans [Member] | U.S. Plans [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Accumulated Benefit Obligation (“ABO”)   25,915 22,029  
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)        
PBO/APBO at the beginning of year   22,653 27,870  
Service cost   689 679 $ 638
Interest cost   951 1,115 1,128
Actuarial loss   3,016 21  
Benefits paid   (755) (854)  
Settlements     (6,178)  
PBO/APBO at the end of year   26,554 22,653 27,870
Change in Plan Assets        
Balance at beginning of year   22,057 24,933  
Actual return on plan assets   984 1,609  
Company contributions   1,034 2,547  
Benefits paid   (755) (854)  
Settlements     (6,178)  
Balance at end of year   23,320 22,057 24,933
Funded Status of the Plans   (3,234) (596)  
Amount Recognized in the Balance Sheet at May 31:        
Current pension, postretirement healthcare and other benefit obligations   (70) (22)  
Noncurrent pension, postretirement healthcare and other benefit obligations   (3,164) (574)  
Net amount recognized   (3,234) (596)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:        
Prior service (credit) cost and other   (173) (292)  
Pension Plans [Member] | International Pension Plans [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Accumulated Benefit Obligation (“ABO”)   2,084 1,956  
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)        
PBO/APBO at the beginning of year   2,167 2,043  
Service cost   94 97 83
Interest cost   49 49 43
Actuarial loss   127 (34)  
Benefits paid   (38) (46)  
Settlements   (13) (5)  
Other   (85) 63  
PBO/APBO at the end of year   2,301 2,167 2,043
Change in Plan Assets        
Balance at beginning of year   1,509 1,379  
Actual return on plan assets   94 49  
Company contributions   91 84  
Benefits paid   (38) (46)  
Settlements   (13) (5)  
Other   (65) 48  
Balance at end of year   1,578 1,509 1,379
Funded Status of the Plans   (723) (658)  
Amount Recognized in the Balance Sheet at May 31:        
Noncurrent asset   82 73  
Current pension, postretirement healthcare and other benefit obligations   (16) (16)  
Noncurrent pension, postretirement healthcare and other benefit obligations   (789) (715)  
Net amount recognized   (723) (658)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:        
Prior service (credit) cost and other   (6) (10)  
Postretirement Healthcare Plans [Member]        
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”)        
PBO/APBO at the beginning of year   955 927  
Service cost   35 36 36
Interest cost   40 39 39
Actuarial loss   266 (9)  
Benefits paid   (123) (80)  
Other   48 42  
PBO/APBO at the end of year   1,221 955 $ 927
Change in Plan Assets        
Company contributions   73 42  
Benefits paid   (123) (80)  
Other   50 38  
Funded Status of the Plans   (1,221) (955)  
Amount Recognized in the Balance Sheet at May 31:        
Current pension, postretirement healthcare and other benefit obligations   (87) (62)  
Noncurrent pension, postretirement healthcare and other benefit obligations   (1,134) (893)  
Net amount recognized   (1,221) (955)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:        
Prior service (credit) cost and other   $ 1 $ 2  
v3.19.2
Retirement Plans - Schedule of Components of Pension Plans (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
May 31, 2017
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") $ 28,855 $ 24,820  
Fair Value of Plan Assets 24,898 23,566  
Funded Status (3,957) (1,254)  
Qualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 26,300 22,413  
Fair Value of Plan Assets 23,320 22,057  
Funded Status (2,980) (356)  
Nonqualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 254 240  
Funded Status (254) (240)  
International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 2,301 2,167 $ 2,043
Fair Value of Plan Assets 1,578 1,509 $ 1,379
Funded Status $ (723) $ (658)  
v3.19.2
Retirement Plans - Schedule of Fair Value of Plan Assets for Pension Plans with a PBO or ABO in Excess of Plan Assets (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets $ 23,320 $ 22,057
PBO (26,554) (22,653)
Net funded status (3,234) (596)
ABO [1] (25,915) (1,134)
Fair value of plan assets 23,320 859
PBO (26,554) (1,214)
Net funded status (3,234) (355)
International Pension Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 1,125 1,060
PBO (1,929) (1,791)
Net funded status (804) (731)
ABO [1] (1,709) (1,581)
Fair value of plan assets 1,120 1,060
PBO (1,925) (1,791)
Net funded status $ (805) $ (731)
[1] ABO not used in determination of funded status.
v3.19.2
Retirement Plans - Schedule of Pension Plans Contributions (Details) - U.S. Plans [Member] - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Feb. 28, 2018
May 31, 2019
May 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan contributions by employer $ 1,500 $ 1,000 $ 2,500
Required Contribution [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan contributions by employer     22
Voluntary Contribution [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan contributions by employer   $ 1,000 $ 2,478
v3.19.2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Pension Plans [Member] | U.S. Plans [Member]      
Net Periodic Benefit Cost      
Service cost $ 689 $ 679 $ 638
Interest cost 951 1,115 1,128
Expected return on plan assets (1,505) (1,624) (1,501)
Amortization of prior service credit (118) (118) (118)
Actuarial losses (gains) and other 3,537 37 (95)
Net periodic benefit cost 3,554 89 52
Pension Plans [Member] | International Pension Plans [Member]      
Net Periodic Benefit Cost      
Service cost 94 97 83
Interest cost 49 49 43
Expected return on plan assets (47) (46) (38)
Amortization of prior service credit (2) (2) (2)
Actuarial losses (gains) and other 80 (38) 87
Net periodic benefit cost 174 60 173
Postretirement Healthcare Plans [Member]      
Net Periodic Benefit Cost      
Service cost 35 36 36
Interest cost 40 39 39
Amortization of prior service credit   (1)  
Actuarial losses (gains) and other 265 (9) (14)
Net periodic benefit cost $ 340 $ 65 $ 61
v3.19.2
Retirement Plans - Schedule of Expected Future Benefit Payments (Details)
$ in Millions
May 31, 2019
USD ($)
Pension Plans [Member] | U.S. Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2020 $ 1,027
2021 971
2022 1,051
2023 1,138
2024 1,230
2025-2029 7,515
Pension Plans [Member] | International Pension Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2020 45
2021 46
2022 47
2023 55
2024 61
2025-2029 396
Postretirement Healthcare Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2020 87
2021 98
2022 109
2023 117
2024 121
2025-2029 $ 473
v3.19.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
 [1]
Nov. 30, 2018
 [1]
Aug. 31, 2018
 [1]
May 31, 2018
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
May 31, 2017
Segment Reporting Information [Line Items]                      
Revenues $ 17,807 [1] $ 17,010 $ 17,824 $ 17,052 $ 17,314 [2] $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3],[4] $ 60,319 [3],[4]
Depreciation and amortization                 3,353 3,095 2,995
Operating income (loss) 1,316 [1] $ 911 $ 1,168 $ 1,071 1,328 [2] $ 858 $ 1,115 $ 971 4,466 [5] 4,272 [6] 4,566 [7]
Segment assets [8] 54,403       52,330       54,403 52,330 48,552
Capital expenditures                 5,490 5,663 5,116
Operating Segments [Member] | FedEx Express Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenues                 37,331 36,172 [4] 33,824 [4]
Depreciation and amortization                 1,801 1,679 1,662
Operating income (loss)                 2,123 [5] 2,105 [6] 2,380 [7]
Segment assets [8] 33,247       31,753       33,247 31,753 31,307
Capital expenditures                 3,550 3,461 2,725
Operating Segments [Member] | FedEx Ground Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenues                 20,522 18,395 [4] 16,503 [4]
Depreciation and amortization                 728 681 627
Operating income (loss)                 2,640 [5] 2,529 [6] 2,243 [7]
Segment assets [8] 17,561       15,458       17,561 15,458 12,969
Capital expenditures                 808 1,178 1,490
Operating Segments [Member] | FedEx Freight Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenues                 7,582 6,812 [4] 6,070 [4]
Depreciation and amortization                 332 296 265
Operating income (loss)                 615 [5] 490 [6] 371 [7]
Segment assets [8] 4,736       4,251 [9]       4,736 4,251 [9] 3,740 [9]
Capital expenditures                 544 490 431
Operating Segments [Member] | FedEx Services Segment [Member]                      
Segment Reporting Information [Line Items]                      
Revenues                 1,691 1,650 [4] 1,621 [4]
Depreciation and amortization                 424 382 371
Segment assets [8] 6,972       6,377       6,972 6,377 5,682
Capital expenditures                 528 477 416
Corporate, Other and Eliminations [Member]                      
Segment Reporting Information [Line Items]                      
Revenues                 2,567 2,421 2,301
Depreciation and amortization                 68 57 70
Operating income (loss)                 (912) [5] (852) [6] (428) [7]
Segment assets [8] $ (8,113)       $ (5,509) [9]       (8,113) (5,509) [9] (5,146) [9]
Capital expenditures                 $ 60 $ 57 $ 54
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
[5] Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[6] Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.
[7] Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.
[8] Segment assets include intercompany receivables.
[9] Amounts revised for reclassification of eliminations.
v3.19.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
Nov. 30, 2018
Aug. 31, 2018
May 31, 2018
Feb. 28, 2018
Nov. 30, 2017
Aug. 31, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Segment Reporting Information [Line Items]                      
Integration expenses and restructuring charges $ 84 $ 69 $ 114 $ 121 $ 136 $ 106 $ 122 $ 112 $ 388 $ 477 $ 327
Business realignment costs $ 316 $ 4             320    
Goodwill and other asset impairment charges         380         $ 380  
Charges for legal reserves related to U.S. CBP pending protection matters         $ 1     $ 7     39
FedEx Ground Segment [Member]                      
Segment Reporting Information [Line Items]                      
Ground independent contractor legal expense     $ 46           $ 46   $ 22
v3.19.2
Business Segments and Disaggregated Revenue - Schedule of Revenue by Service Type (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
 [1]
Feb. 28, 2019
 [1]
Nov. 30, 2018
 [1]
Aug. 31, 2018
 [1]
May 31, 2018
 [2]
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
 [4]
May 31, 2017
 [4]
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues $ 17,807 $ 17,010 $ 17,824 $ 17,052 $ 17,314 $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3] $ 60,319 [3]
Operating Segments [Member] | FedEx Express Segment [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 37,331 36,172 33,824
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight box [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 7,663 7,273 6,955
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight envelope [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 1,829 1,788 1,750
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. deferred [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 4,225 3,738 3,526
Operating Segments [Member] | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 13,717 12,799 12,231
Operating Segments [Member] | FedEx Express Segment [Member] | International priority [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 7,405 7,461 7,045
Operating Segments [Member] | FedEx Express Segment [Member] | International economy [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 3,446 3,255 2,876
Operating Segments [Member] | FedEx Express Segment [Member] | Total international export package revenue [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 10,851 10,716 9,921
Operating Segments [Member] | FedEx Express Segment [Member] | International domestic [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues [5]                 4,540 4,637 4,277
Operating Segments [Member] | FedEx Express Segment [Member] | Total package revenue [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 29,108 28,152 26,429
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. freight [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 3,025 2,797 2,527
Operating Segments [Member] | FedEx Express Segment [Member] | International priority freight [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 2,070 2,105 1,836
Operating Segments [Member] | FedEx Express Segment [Member] | International Economy Freight                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 2,123 1,916 1,738
Operating Segments [Member] | FedEx Express Segment [Member] | International Airfreight [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 314 368 356
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 7,532 7,186 6,457
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 691 834 938
Operating Segments [Member] | FedEx Ground Segment [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 20,522 18,395 16,503
Operating Segments [Member] | FedEx Freight Segment [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 7,582 6,812 6,070
Operating Segments [Member] | FedEx Services Segment [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues                 1,691 1,650 1,621
Corporate, Other and Eliminations [Member]                      
Entity Wide Information Revenue From External Customer [Line Items]                      
Revenues [6]                 $ 2,567 $ 2,421 $ 2,301
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
[5] International domestic revenues relate to our intra-country operations.
[6] Includes the FedEx Logistics operating segment.
v3.19.2
Business Segments and Disaggregated Revenue - Schedule of Geographical Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
 [1]
Nov. 30, 2018
 [1]
Aug. 31, 2018
 [1]
May 31, 2018
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
 [4]
May 31, 2017
 [4]
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues $ 17,807 [1] $ 17,010 $ 17,824 $ 17,052 $ 17,314 [2] $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3] $ 60,319 [3]
Assets Noncurrent [3] 41,317       38,989 [4]       41,317 38,989 35,924
U.S. [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 47,584 43,581 40,269
Assets Noncurrent [3] 33,189       30,362 [4]       33,189 30,362 28,141
International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 22,109 21,869 20,050
Assets Noncurrent [3] $ 8,128       $ 8,627 [4]       8,128 8,627 7,783
FedEx Express Segment [Member] | International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 20,424 20,417 18,817
FedEx Ground Segment [Member] | International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 467 407 331
FedEx Freight Segment [Member] | International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 207 181 149
FedEx Services Segment [Member] | International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 1 3 10
Other international revenue [Member] | International [Member]                      
Revenues From External Customers And Long Lived Assets [Line Items]                      
Revenues [3]                 $ 1,010 $ 861 $ 743
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
v3.19.2
Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Supplemental Cash Flow Information [Abstract]      
Interest (net of capitalized interest) $ 617 $ 524 $ 484
Income taxes 407 760 397
Income tax refunds received (36) (571) (20)
Cash tax payments, net $ 371 $ 189 $ 377
v3.19.2
Commitments - Schedule of Purchase Commitments (Details)
$ in Millions
May 31, 2019
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
2020 $ 2,416
2021 3,042
2022 2,245
2023 1,832
2024 632
Thereafter 2,856
Total 13,023
Aircraft And Related Equipment Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2020 1,518
2021 2,455
2022 1,862
2023 1,569
2024 492
Thereafter 2,456
Total 10,352
Other Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2020 898 [1]
2021 587 [1]
2022 383 [1]
2023 263 [1]
2024 140 [1]
Thereafter 400 [1]
Total $ 2,671 [1]
[1] Primarily equipment and advertising contracts.
v3.19.2
Commitments - Additional Information (Details)
$ in Billions
 12 Months Ended
Jun. 24, 2019
air-craft
May 31, 2019
USD ($)
air-craft
Jul. 15, 2019
air-craft
Other Aircraft Commitments Disclosure [Abstract]      
Deposit and Progress Payments | $   $ 1.1  
B767F [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Conditional Aircraft Commitments   5  
Additional maximum number of aircraft, options to purchase   6  
B767F [Member] | Subsequent Event [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Conditional Aircraft Commitments 5    
Aircraft expected to be delivered, earliest fiscal year 2020    
Aircraft expected to be delivered, latest fiscal year 2023    
Number of additional aircraft agreed to purchase options exercised 6    
Aircraft expected to be delivered, fiscal year 2022    
Number of aircrafts scheduled for delivery 59    
Number of aircrafts delivered 1   1
Number of aircraft total options to purchase 50    
Aircraft expected to be delivered, through fiscal year 2026    
B777F [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Conditional Aircraft Commitments   6  
Additional maximum number of aircraft, options to purchase   14  
Number of aircrafts rescheduled delivery   11  
B777F [Member] | Subsequent Event [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Conditional Aircraft Commitments 6    
Aircraft expected to be delivered, earliest fiscal year 2020    
Aircraft expected to be delivered, latest fiscal year 2025    
Number of aircrafts scheduled for delivery 20    
Number of aircrafts delivered 1    
Number of aircraft total options to purchase 25    
Aircraft expected to be delivered, through fiscal year 2028    
Additional B777F [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Number of aircraft agreed to purchase   12  
Boeing 777F Conditional Aircraft Commitments   6  
Aircraft expected to be delivered, earliest fiscal year   2021  
Aircraft expected to be delivered, latest fiscal year   2025  
Additional B767F [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Number of aircraft agreed to purchase   12  
Boeing 767F Conditional Aircraft Commitments   1  
Aircraft expected to be delivered, earliest fiscal year   2020  
Aircraft expected to be delivered, latest fiscal year   2022  
B777F Aircraft from 2020 to 2019 [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Aircraft expected to be delivered, earliest fiscal year   2019  
Aircraft expected to be delivered, latest fiscal year   2020  
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments   1  
B767F Aircraft from 2020 to 2019 [Member]      
Other Aircraft Commitments Disclosure [Abstract]      
Aircraft expected to be delivered, earliest fiscal year   2019  
Aircraft expected to be delivered, latest fiscal year   2020  
Accelerate delivery of Boeing 767F conditional aircraft commitments   1  
v3.19.2
Commitments - Schedule of Aircraft Purchase Commitments (Details)
 12 Months Ended
May 31, 2019
air-craft
Schedule of Aircraft Commitments [Line Items]  
2020 22
2021 37
2022 33
2023 28
2024 24
Thereafter 9
Total 153
Cessna SkyCourier 408 [Member]  
Schedule of Aircraft Commitments [Line Items]  
2021 12
2022 12
2023 12
2024 14
Total 50
ATR 72-600F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2021 5
2022 6
2023 6
2024 6
Thereafter 7
Total 30
B767F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2020 17
2021 18
2022 12
2023 6
Total 53
B777F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2020 5
2021 2
2022 3
2023 4
2024 4
Thereafter 2
Total 20
v3.19.2
Related Party Transactions (Details)
 12 Months Ended
May 31, 2019
Frederick W. Smith [Member] | National Football League Washington Redskins [Member]  
Related Party Transaction [Line Items]  
Related party ownership interest 10.00%
v3.19.2
Summary of Quarterly Operating Results (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
 [1]
Feb. 28, 2019
 [1]
Nov. 30, 2018
 [1]
Aug. 31, 2018
 [1]
May 31, 2018
 [2]
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
May 31, 2017
Selected Quarterly Financial Information [Abstract]                      
Revenues $ 17,807 $ 17,010 $ 17,824 $ 17,052 $ 17,314 $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3],[4] $ 60,319 [3],[4]
Operating income 1,316 911 1,168 1,071 1,328 858 1,115 971 4,466 [5] 4,272 [6] 4,566 [7]
Net income $ (1,969) [8] $ 739 [8] $ 935 [8] $ 835 [8] $ 1,127 [9] $ 2,074 [9] $ 775 [9] $ 596 [9] $ 540 $ 4,572 $ 2,997
Basic earnings per common share $ (7.56) [10] $ 2.83 [10] $ 3.56 [10] $ 3.15 [10] $ 4.23 [10] $ 7.74 [10] $ 2.89 [10] $ 2.22 [10] $ 2.06 $ 17.08 $ 11.24
Diluted earnings per common share $ (7.56) [10] $ 2.80 [10] $ 3.51 [10] $ 3.10 [10] $ 4.15 [10] $ 7.59 [10] $ 2.84 [10] $ 2.19 [10] $ 2.03 $ 16.79 $ 11.07
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
[5] Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[6] Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.
[7] Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.
[8] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[9] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
[10] The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.
v3.19.2
Summary of Quarterly Operating Results (Unaudited) (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
Nov. 30, 2018
Aug. 31, 2018
May 31, 2018
Feb. 28, 2018
Nov. 30, 2017
Aug. 31, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Selected Quarterly Financial Information [Line Items]                      
Retirement plans mark-to-market adjustment $ 3,900       $ (10)       $ 3,882 $ (10) $ (24)
Business realignment costs 316 $ 4             320    
Integration expenses 84 69 $ 114 $ 121 136 $ 106 $ 122 $ 112 388 477 327
Income tax benefit related to lower statutory Income tax rate on earnings $ 200 60 150 $ 135 100 165     40    
PROVISION FOR INCOME TAXES (BENEFIT)   90 60           115 (219) 1,582
Increase (Decrease) in Income Taxes     4                
Goodwill and other asset impairment charges         380         380  
Charges for legal reserves related to certain CBP matters         1     $ 7     39
Tax benefit from corporate structuring transactions         255         255 [1] 68 [1]
Tax benefits from foreign tax credits         $ 133 12 $ 80   8 225  
Provisional benefit related to remeasurement of net U.S. deferred tax liability           (1,150)       (1,150)  
U.S. Plans [Member]                      
Selected Quarterly Financial Information [Line Items]                      
Income tax benefit related to lower statutory Income tax rate on earnings                   265  
Additional provisional amount recognized one time benefit           204       204  
Company contributions           $ 1,500     1,000 $ 2,500  
Netherlands [Member]                      
Selected Quarterly Financial Information [Line Items]                      
PROVISION FOR INCOME TAXES (BENEFIT)   $ 50                  
FedEx Ground Segment [Member]                      
Selected Quarterly Financial Information [Line Items]                      
Settlement of a legal matter     $ 46           $ 46   $ 22
[1] The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively.
v3.19.2
Condensed Consolidating Financial Statements - Additional Information (Details)
May 31, 2019
USD ($)
Guarantor Obligations [Abstract]  
Debt Guarantee $ 17,500,000,000
v3.19.2
Condensed Consolidating Balance Sheets (Details) - USD ($)
$ in Millions
May 31, 2019
May 31, 2018
May 31, 2017
May 31, 2016
CURRENT ASSETS        
Cash and cash equivalents $ 2,319 $ 3,265 $ 3,969 $ 3,534
Receivables, less allowances 9,116 8,481    
Spare parts, supplies, fuel, prepaid expenses and other, less allowances 1,651 1,595    
Total current assets 13,086 13,341    
PROPERTY AND EQUIPMENT, AT COST 59,511 55,121    
Less accumulated depreciation and amortization 29,082 26,967    
Net property and equipment 30,429 28,154    
GOODWILL 6,884 6,973 7,154  
OTHER ASSETS 4,004 3,862    
ASSETS [1] 54,403 52,330 48,552  
CURRENT LIABILITIES        
Current portion of long-term debt 964 1,342    
Accrued salaries and employee benefits 1,741 2,177    
Accounts payable 3,030 2,977    
Accrued expenses 3,278 3,131    
Total current liabilities 9,013 9,627    
LONG-TERM DEBT, LESS CURRENT PORTION 16,617 15,243    
OTHER LONG-TERM LIABILITIES        
Deferred income taxes 2,821 2,867    
Other liabilities 8,195 5,177    
Total other long-term liabilities 11,016 8,044    
COMMON STOCKHOLDERS’ INVESTMENT 17,757 19,416 16,073 13,784
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT 54,403 52,330    
Consolidation Eliminations [Member]        
CURRENT ASSETS        
Cash and cash equivalents (46) (15) (47) (43)
Receivables, less allowances (227) (78)    
Total current assets (273) (93)    
INTERCOMPANY RECEIVABLE (2,472) (2,411)    
INVESTMENT IN SUBSIDIARIES (39,174) (37,452)    
OTHER ASSETS (591) 104    
ASSETS (42,510) (39,852)    
CURRENT LIABILITIES        
Accounts payable (263) (90)    
Accrued expenses (10) (3)    
Total current liabilities (273) (93)    
INTERCOMPANY PAYABLE (2,472) (2,411)    
OTHER LONG-TERM LIABILITIES        
Deferred income taxes (591) 104    
Total other long-term liabilities (591) 104    
COMMON STOCKHOLDERS’ INVESTMENT (39,174) (37,452)    
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT (42,510) (39,852)    
Parent Company [Member] | Reportable Legal Entities [Member]        
CURRENT ASSETS        
Cash and cash equivalents 826 1,485 1,884 1,974
Receivables, less allowances 56 3    
Spare parts, supplies, fuel, prepaid expenses and other, less allowances 366 425    
Total current assets 1,248 1,913    
PROPERTY AND EQUIPMENT, AT COST 25 21    
Less accumulated depreciation and amortization 17 17    
Net property and equipment 8 4    
INTERCOMPANY RECEIVABLE 2,877 1,487    
INVESTMENT IN SUBSIDIARIES 33,725 33,370    
OTHER ASSETS 995 75    
ASSETS 38,853 36,849    
CURRENT LIABILITIES        
Current portion of long-term debt 959 1,332    
Accrued salaries and employee benefits 143 65    
Accounts payable 16 16    
Accrued expenses 521 460    
Total current liabilities 1,639 1,873    
LONG-TERM DEBT, LESS CURRENT PORTION 16,322 14,942    
OTHER LONG-TERM LIABILITIES        
Other liabilities 3,135 619    
Total other long-term liabilities 3,135 619    
COMMON STOCKHOLDERS’ INVESTMENT 17,757 19,415    
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT 38,853 36,849    
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
CURRENT ASSETS        
Cash and cash equivalents 158 257 325 326
Receivables, less allowances 5,603 4,970    
Spare parts, supplies, fuel, prepaid expenses and other, less allowances 953 878    
Total current assets 6,714 6,105    
PROPERTY AND EQUIPMENT, AT COST 55,341 51,232    
Less accumulated depreciation and amortization 27,066 25,111    
Net property and equipment 28,275 26,121    
INTERCOMPANY RECEIVABLE (405) 924    
GOODWILL 1,589 1,709    
INVESTMENT IN SUBSIDIARIES 5,449 4,082    
OTHER ASSETS 1,811 1,854    
ASSETS 43,433 40,795    
CURRENT LIABILITIES        
Current portion of long-term debt 2 1    
Accrued salaries and employee benefits 1,100 1,506    
Accounts payable 1,469 1,332    
Accrued expenses 1,853 1,778    
Total current liabilities 4,424 4,617    
LONG-TERM DEBT, LESS CURRENT PORTION 287 288    
OTHER LONG-TERM LIABILITIES        
Deferred income taxes 2,832 2,626    
Other liabilities 3,965 3,432    
Total other long-term liabilities 6,797 6,058    
COMMON STOCKHOLDERS’ INVESTMENT 31,925 29,832    
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT 43,433 40,795    
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
CURRENT ASSETS        
Cash and cash equivalents 1,381 1,538 $ 1,807 $ 1,277
Receivables, less allowances 3,684 3,586    
Spare parts, supplies, fuel, prepaid expenses and other, less allowances 332 292    
Total current assets 5,397 5,416    
PROPERTY AND EQUIPMENT, AT COST 4,145 3,868    
Less accumulated depreciation and amortization 1,999 1,839    
Net property and equipment 2,146 2,029    
GOODWILL 5,295 5,264    
OTHER ASSETS 1,789 1,829    
ASSETS 14,627 14,538    
CURRENT LIABILITIES        
Current portion of long-term debt 3 9    
Accrued salaries and employee benefits 498 606    
Accounts payable 1,808 1,719    
Accrued expenses 914 896    
Total current liabilities 3,223 3,230    
LONG-TERM DEBT, LESS CURRENT PORTION 8 13    
INTERCOMPANY PAYABLE 2,472 2,411    
OTHER LONG-TERM LIABILITIES        
Deferred income taxes 580 137    
Other liabilities 1,095 1,126    
Total other long-term liabilities 1,675 1,263    
COMMON STOCKHOLDERS’ INVESTMENT 7,249 7,621    
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 14,627 $ 14,538    
[1] Segment assets include intercompany receivables.
v3.19.2
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Feb. 28, 2019
Nov. 30, 2018
Aug. 31, 2018
 [1]
May 31, 2018
Feb. 28, 2018
 [2]
Nov. 30, 2017
 [2]
Aug. 31, 2017
 [2]
May 31, 2019
May 31, 2018
May 31, 2017
Condensed Statement Of Income Captions [Line Items]                      
REVENUES $ 17,807 [1] $ 17,010 [1] $ 17,824 [1] $ 17,052 $ 17,314 [2] $ 16,526 $ 16,313 $ 15,297 $ 69,693 [3] $ 65,450 [3],[4] $ 60,319 [3],[4]
OPERATING EXPENSES:                      
Salaries and employee benefits                 24,776 23,795 21,989
Purchased transportation                 $ 16,654 $ 15,101 $ 13,630
Type of cost, good or service [extensible list]                 us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees                 $ 3,360 $ 3,361 $ 3,240
Depreciation and amortization                 3,353 3,095 2,995
Fuel                 3,889 3,374 2,773
Maintenance and repairs                 2,834 2,622 2,374
Goodwill and other asset impairment charges         380         380  
Business realignment costs 316 4             320    
Other                 10,041 9,450 8,752
OPERATING EXPENSES                 65,227 61,178 55,753
OPERATING INCOME 1,316 [1] 911 [1] 1,168 [1] 1,071 1,328 [2] 858 1,115 971 4,466 [5] 4,272 [6] 4,566 [7]
OTHER (EXPENSE) INCOME:                      
Interest, net                 (529) (510) (479)
Other retirement plans (expense) income                 (3,251) 598 471
Other, net                 (31) (7) 21
INCOME BEFORE INCOME TAXES                 655 4,353 4,579
Provision for income taxes (benefit)   90 60           115 (219) 1,582
NET INCOME $ (1,969) [1],[8] $ 739 [1],[8] $ 935 [1],[8] $ 835 [8] $ 1,127 [2],[9] $ 2,074 [9] $ 775 [9] $ 596 [9] 540 4,572 2,997
COMPREHENSIVE INCOME (LOSS)                 253 4,409 2,751
Consolidation Eliminations [Member]                      
Condensed Statement Of Income Captions [Line Items]                      
REVENUES                 (381) (407) (302)
OPERATING EXPENSES:                      
Purchased transportation                 $ (184) $ (224) $ (125)
Type of cost, good or service [extensible list]                 us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees                 $ (7) $ (7) $ (6)
Maintenance and repairs                 (2)    
Other                 (188) (176) (171)
OPERATING EXPENSES                 (381) (407) (302)
OTHER (EXPENSE) INCOME:                      
Equity in earnings of subsidiaries                 (714) (4,634) (3,065)
INCOME BEFORE INCOME TAXES                 (714) (4,634) (3,065)
NET INCOME                 (714) (4,634) (3,065)
COMPREHENSIVE INCOME (LOSS)                 (714) (4,634) (3,065)
Parent Company [Member] | Reportable Legal Entities [Member]                      
OPERATING EXPENSES:                      
Salaries and employee benefits                 $ 138 $ 149 $ 123
Type of cost, good or service [extensible list]                 us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees                 $ 6 $ 5 $ 5
Depreciation and amortization                 1 1 1
Maintenance and repairs                 1 1 1
Business realignment costs                 320    
Intercompany charges, net                 (765) (437) (434)
Other                 299 281 304
OTHER (EXPENSE) INCOME:                      
Equity in earnings of subsidiaries                 540 4,572 2,997
Interest, net                 (586) (541) (507)
Intercompany charges, net                 606 544 508
Other, net                 (20) (3) (1)
INCOME BEFORE INCOME TAXES                 540 4,572 2,997
NET INCOME                 540 4,572 2,997
COMPREHENSIVE INCOME (LOSS)                 453 4,489 2,922
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]                      
Condensed Statement Of Income Captions [Line Items]                      
REVENUES                 50,431 48,601 44,823
OPERATING EXPENSES:                      
Salaries and employee benefits                 19,055 18,380 17,137
Purchased transportation                 $ 10,344 $ 9,134 $ 8,260
Type of cost, good or service [extensible list]                 us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees                 $ 2,582 $ 2,587 $ 2,517
Depreciation and amortization                 2,877 2,644 2,538
Fuel                 3,587 3,077 2,476
Maintenance and repairs                 2,475 2,294 2,086
Intercompany charges, net                 (861) (125) 179
Other                 6,674 6,227 5,734
OPERATING EXPENSES                 46,733 44,218 40,927
OPERATING INCOME                 3,698 4,383 3,896
OTHER (EXPENSE) INCOME:                      
Equity in earnings of subsidiaries                 174 62 68
Interest, net                 54 46 27
Other retirement plans (expense) income                 (2,675) 547 516
Intercompany charges, net                 (442) (296) (299)
Other, net                 53 (120) (134)
INCOME BEFORE INCOME TAXES                 862 4,622 4,074
Provision for income taxes (benefit)                 77 309 1,439
NET INCOME                 785 4,313 2,635
COMPREHENSIVE INCOME (LOSS)                 838 4,263 2,580
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]                      
Condensed Statement Of Income Captions [Line Items]                      
REVENUES                 19,643 17,256 15,798
OPERATING EXPENSES:                      
Salaries and employee benefits                 5,583 5,266 4,729
Purchased transportation                 $ 6,494 $ 6,191 $ 5,495
Type of cost, good or service [extensible list]                 us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Rentals and landing fees                 $ 779 $ 776 $ 724
Depreciation and amortization                 475 450 456
Fuel                 302 297 297
Maintenance and repairs                 360 327 287
Goodwill and other asset impairment charges                   380  
Intercompany charges, net                 1,626 562 255
Other                 3,256 3,118 2,885
OPERATING EXPENSES                 18,875 17,367 15,128
OPERATING INCOME                 768 (111) 670
OTHER (EXPENSE) INCOME:                      
Interest, net                 3 (15) 1
Other retirement plans (expense) income                 (576) 51 (45)
Intercompany charges, net                 (164) (248) (209)
Other, net                 (64) 116 156
INCOME BEFORE INCOME TAXES                 (33) (207) 573
Provision for income taxes (benefit)                 38 (528) 143
NET INCOME                 (71) 321 430
COMPREHENSIVE INCOME (LOSS)                 $ (324) $ 291 $ 314
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.
[3] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[4] Prior year amounts have been revised to conform to the current year presentation.
[5] Includes TNT Express integration expenses and restructuring charges of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[6] Includes TNT Express integration expenses and restructuring charges of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million.
[7] Includes TNT Express integration expenses and restructuring charges of $327 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain U.S. Customs and Border Protection (“CBP”) matters involving FedEx Logistics and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground.
[8] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[9] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
v3.19.2
Condensed Consolidating Statements of Cash Flows (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Condensed Cash Flow Statements Captions [Line Items]      
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 5,613 $ 4,674 $ 4,930
INVESTING ACTIVITIES      
Capital expenditures (5,490) (5,663) (5,116)
Business acquisitions, net of cash acquired (66) (179)  
Proceeds from sale of business   123  
Proceeds from asset dispositions and other 83 42 135
Cash used in investing activities (5,473) (5,677) (4,981)
FINANCING ACTIVITIES      
Principal payments on debt (1,436) (38) (82)
Proceeds from debt issuances 2,463 1,480 1,190
Proceeds from stock issuances 101 327 337
Dividends paid (683) (535) (426)
Purchase of treasury stock (1,480) (1,017) (509)
Other, net (4) 10 18
Cash (used in) provided by financing activities (1,039) 227 528
Effect of exchange rate changes on cash (47) 72 (42)
Net (decrease) increase in cash and cash equivalents (946) (704) 435
Cash and cash equivalents at beginning of period 3,265 3,969 3,534
Cash and cash equivalents at end of period 2,319 3,265 3,969
Consolidation Eliminations [Member]      
Condensed Cash Flow Statements Captions [Line Items]      
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (31) 32 (4)
FINANCING ACTIVITIES      
Net (decrease) increase in cash and cash equivalents (31) 32 (4)
Cash and cash equivalents at beginning of period (15) (47) (43)
Cash and cash equivalents at end of period (46) (15) (47)
Parent Company [Member] | Reportable Legal Entities [Member]      
Condensed Cash Flow Statements Captions [Line Items]      
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 66 (2,837) (1,155)
INVESTING ACTIVITIES      
Capital expenditures (6) (1)  
Proceeds from asset dispositions and other (45) (6) 34
Cash used in investing activities (51) (7) 34
FINANCING ACTIVITIES      
Net transfers from (to) Parent 193 1,529 421
Payment on loan between subsidiaries 51 663 41
Principal payments on debt (1,310)    
Proceeds from debt issuances 2,463 1,480 1,190
Proceeds from stock issuances 101 327 337
Dividends paid (683) (535) (426)
Purchase of treasury stock (1,480) (1,017) (509)
Other, net (9) 3 (12)
Cash (used in) provided by financing activities (674) 2,450 1,042
Effect of exchange rate changes on cash   (5) (11)
Net (decrease) increase in cash and cash equivalents (659) (399) (90)
Cash and cash equivalents at beginning of period 1,485 1,884 1,974
Cash and cash equivalents at end of period 826 1,485 1,884
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]      
Condensed Cash Flow Statements Captions [Line Items]      
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 4,885 6,767 5,254
INVESTING ACTIVITIES      
Capital expenditures (4,920) (5,299) (4,694)
Business acquisitions, net of cash acquired (9) (44)  
Proceeds from asset dispositions and other 101 33 25
Cash used in investing activities (4,828) (5,310) (4,669)
FINANCING ACTIVITIES      
Net transfers from (to) Parent (259) (1,612) (518)
Payment on loan between subsidiaries     (15)
Intercompany dividends 106 98 1
Principal payments on debt (117) (22) (55)
Other, net 127 7 (13)
Cash (used in) provided by financing activities (143) (1,529) (600)
Effect of exchange rate changes on cash (13) 4 14
Net (decrease) increase in cash and cash equivalents (99) (68) (1)
Cash and cash equivalents at beginning of period 257 325 326
Cash and cash equivalents at end of period 158 257 325
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]      
Condensed Cash Flow Statements Captions [Line Items]      
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 693 712 835
INVESTING ACTIVITIES      
Capital expenditures (564) (363) (422)
Business acquisitions, net of cash acquired (57) (135)  
Proceeds from sale of business   123  
Proceeds from asset dispositions and other 27 15 76
Cash used in investing activities (594) (360) (346)
FINANCING ACTIVITIES      
Net transfers from (to) Parent 66 83 97
Payment on loan between subsidiaries (51) (663) (26)
Intercompany dividends (106) (98) (1)
Principal payments on debt (9) (16) (27)
Other, net (122)   43
Cash (used in) provided by financing activities (222) (694) 86
Effect of exchange rate changes on cash (34) 73 (45)
Net (decrease) increase in cash and cash equivalents (157) (269) 530
Cash and cash equivalents at beginning of period 1,538 1,807 1,277
Cash and cash equivalents at end of period $ 1,381 $ 1,538 $ 1,807
v3.19.2
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2019
May 31, 2018
May 31, 2017
Allowance For Doubtful Accounts [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance $ 199 $ 115 $ 73
Charged To Expenses 295 246 136
Deductions [1] 373 162 94
Valuation Allowances And Reserves Ending Balance 121 199 115
Allowance For Revenue Adjustments [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 202 137 105
Charged To Other Accounts [2] 1,192 1,173 941
Deductions [3] 1,215 1,108 909
Valuation Allowances And Reserves Ending Balance 179 202 137
Inventory Valuation Allowance [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 268 237 218
Charged To Expenses 28 27 26
Charged To Other Accounts 75 6  
Deductions 36 2 7
Valuation Allowances And Reserves Ending Balance $ 335 $ 268 $ 237
[1] Uncollectible accounts written off, net of recoveries, and other adjustments.
[2] Principally charged against revenue.
[3] Service failures, rebills and other.