FEDEX CORP, 10-K filed on 7/19/2021
Annual Report
v3.21.2
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
May 31, 2021
Jul. 15, 2021
Nov. 30, 2020
Document Information [Line Items]      
Document Type 10-K    
Document Period End Date May 31, 2021    
Amendment Flag false    
Document Fiscal Year Focus 2021    
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 File Number 1-15829    
Entity Tax Identification Number 62-1721435    
Entity Address, Address Line One 942 South Shady Grove Road    
Entity Address, City or Town Memphis    
Entity Address, State or Province TN    
Entity Address, Postal Zip Code 38120    
City Area Code 901    
Local Phone Number 818-7500    
Entity Interactive Data Current Yes    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Public Float     $ 70.2
Entity Common Stock, Shares Outstanding   267,348,232  
Entity Incorporation, State or Country Code DE    
Document Annual Report true    
Document Transition Report false    
ICFR Auditor Attestation Flag true    
Documents Incorporated by Reference

Portions of the Registrant’s definitive proxy statement to be delivered to stockholders in connection with the 2021 annual meeting of stockholders to be held on September 27, 2021 are incorporated by reference in response to Part III of this Report.

   
Common Stock, Par Value $0.10 Per Share [Member]      
Document Information [Line Items]      
Trading Symbol FDX    
Title of 12(b) Security Common Stock, par value $0.10 per share    
Security Exchange Name NYSE    
0.450% Notes Due 2025 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 25A    
Title of 12(b) Security 0.450% Notes due 2025    
Security Exchange Name NYSE    
1.625% Notes Due 2027 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 27    
Title of 12(b) Security 1.625% Notes due 2027    
Security Exchange Name NYSE    
0.450% Notes Due 2029 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 29A    
Title of 12(b) Security 0.450% Notes due 2029    
Security Exchange Name NYSE    
1.300% Notes Due 2031 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 31    
Title of 12(b) Security 1.300% Notes due 2031    
Security Exchange Name NYSE    
0.950% Notes Due 2033 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 33    
Title of 12(b) Security 0.950% Notes due 2033    
Security Exchange Name NYSE    
v3.21.2
Consolidated Balance Sheets - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
CURRENT ASSETS    
Cash and cash equivalents $ 7,087 $ 4,881
Receivables, less allowances of $742 and $390 12,069 10,102
Spare parts, supplies and fuel, less allowances of $349 and $335 587 572
Prepaid expenses and other 837 828
Total current assets 20,580 16,383
PROPERTY AND EQUIPMENT, AT COST    
Aircraft and related equipment 26,268 24,518
Package handling and ground support equipment 13,012 11,382
Information technology 7,486 6,884
Vehicles and trailers 9,282 9,101
Facilities and other 14,029 13,139
Gross property and equipment 70,077 65,024
Less accumulated depreciation and amortization 34,325 31,416
Net property and equipment 35,752 33,608
OTHER LONG-TERM ASSETS    
Operating lease right-of-use assets, net 15,383 13,917
Goodwill 6,992 6,372
Other assets 4,070 3,257
Total other long-term assets 26,445 23,546
ASSETS [1] 82,777 73,537
CURRENT LIABILITIES    
Current portion of long-term debt 146 51
Accrued salaries and employee benefits 2,903 1,569
Accounts payable 3,841 3,269
Operating lease liabilities 2,208 1,923
Accrued expenses 4,562 3,532
Total current liabilities 13,660 10,344
LONG-TERM DEBT, LESS CURRENT PORTION 20,733 21,952
OTHER LONG-TERM LIABILITIES    
Deferred income taxes 3,927 3,162
Pension, postretirement healthcare and other benefit obligations 3,501 5,019
Self-insurance accruals 2,430 2,104
Operating lease liabilities 13,375 12,195
Other liabilities 983 466
Total other long-term liabilities 24,216 22,946
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of May 31, 2021 and 2020 32 32
Additional paid-in capital 3,481 3,356
Retained earnings 29,817 25,216
Accumulated other comprehensive loss (732) (1,147)
Treasury stock, at cost (8,430) (9,162)
Total common stockholders’ investment 24,168 18,295
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 82,777 $ 73,537
[1] Segment assets include intercompany receivables.
v3.21.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
CURRENT ASSETS    
Allowances for receivables $ 742 $ 390
Allowances for spare parts, supplies and fuel $ 349 $ 335
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
v3.21.2
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Income Statement [Abstract]      
REVENUE [1] $ 83,959 $ 69,217 $ 69,693 [2]
OPERATING EXPENSES:      
Salaries and employee benefits 30,173 25,031 24,776
Purchased transportation 21,674 17,466 16,654
Rentals and landing fees 4,155 3,712 3,360
Depreciation and amortization 3,793 3,615 3,353
Fuel 2,882 3,156 3,889
Maintenance and repairs 3,328 2,893 2,834
Business realignment costs 116   320
Goodwill and other asset impairment charges   435  
Other 11,981 10,492 10,041
OPERATING EXPENSES 78,102 66,800 65,227
OPERATING INCOME 5,857 [3] 2,417 [4] 4,466 [5]
OTHER (EXPENSE) INCOME:      
Interest expense (793) (672) (588)
Interest income 52 55 59
Other retirement plans income (expense) 1,983 (122) (3,251)
Loss on debt extinguishment (393)    
Other, net (32) (9) (31)
OTHER (EXPENSE) INCOME 817 (748) (3,811)
INCOME BEFORE INCOME TAXES 6,674 1,669 655
PROVISION FOR INCOME TAXES 1,443 383 115
NET INCOME $ 5,231 $ 1,286 $ 540
BASIC EARNINGS PER COMMON SHARE $ 19.79 $ 4.92 $ 2.06
DILUTED EARNINGS PER COMMON SHARE $ 19.45 $ 4.90 $ 2.03
[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 of $210 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
[4] Includes TNT Express integration expenses of $270 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes noncash goodwill and other asset impairment charges of $435 million primarily related to goodwill impairment at FedEx Office and from the decision to permanently retire certain aircraft and related engines at FedEx Express.
[5] Includes TNT Express integration expenses (including 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 included in “Corporate, other and eliminations” and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
v3.21.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Statement Of Income And Comprehensive Income [Abstract]      
NET INCOME $ 5,231 $ 1,286 $ 540
OTHER COMPREHENSIVE LOSS:      
Foreign currency translation adjustments, net of tax expense of $13 in 2021 and tax benefits of $18 in 2020 and $29 in 2019 422 (254) (195)
Amortization of prior service credit and other, net of tax benefits of $3 in 2021, $25 in 2020, and $28 in 2019 (7) (79) (92)
Other comprehensive income (loss) 415 (333) (287)
COMPREHENSIVE INCOME $ 5,646 $ 953 $ 253
v3.21.2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Other Comprehensive Income, Tax Amounts      
Foreign currency translation adjustments, tax expense (benefit) $ 13 $ (18) $ (29)
Amortization of prior service credit and other, tax benefits $ 3 $ 25 $ 28
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
OPERATING ACTIVITIES      
Net income $ 5,231 $ 1,286 $ 540
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 3,793 3,615 3,353
Provision for uncollectible accounts 577 442 295
Other noncash items including leases and deferred income tax 2,887 2,449 (233)
Stock-based compensation 200 168 174
Retirement plans mark-to-market adjustments (1,176) 794 3,882
Loss on extinguishment of debt 393    
Gain from sale of business     (8)
Business realignment costs 102   101
Goodwill and other asset impairment charges   435  
Changes in assets and liabilities:      
Receivables (1,389) (1,331) (873)
Other current assets (40) (59) (25)
Pension and postretirement healthcare assets and liabilities, net (317) (908) (909)
Accounts payable and other liabilities 71 (1,787) (571)
Other, net (197) (7) (113)
Cash provided by operating activities 10,135 5,097 5,613
INVESTING ACTIVITIES      
Capital expenditures (5,884) (5,868) (5,490)
Business acquisitions, net of cash acquired (228)   (66)
Proceeds from asset dispositions and other 102 22 83
Cash used in investing activities (6,010) (5,846) (5,473)
FINANCING ACTIVITIES      
Payments on debt (6,318) (2,548) (1,436)
Proceeds from debt issuances 4,212 6,556 2,463
Proceeds from stock issuances 740 64 101
Dividends paid (686) (679) (683)
Purchase of treasury stock   (3) (1,480)
Other, net (38) (9) (4)
Cash (used in) provided by financing activities (2,090) 3,381 (1,039)
Effect of exchange rate changes on cash 171 (70) (47)
Net increase (decrease) in cash and cash equivalents 2,206 2,562 (946)
Cash and cash equivalents at beginning of period 4,881 2,319 3,265
Cash and cash equivalents at end of period $ 7,087 $ 4,881 $ 2,319
v3.21.2
Consolidated Statements of Changes in Common Stockholders' Investment - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Beginning Balance $ 18,295 $ 17,757 $ 19,416
Net income 5,231 1,286 540
Other comprehensive gain (loss), net of tax 415 (333) (287)
Purchase of treasury stock   (3) (1,480)
Cash dividends declared (686) (679) (683)
Employee incentive plans and other 913 220 251
Ending Balance 24,168 18,295 17,757
Accounting Standards Update 2018-02      
Reclassification to retained earnings due to the adoption of a new accounting standard on June 1, 2019 [1]   51  
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 and 2018-02      
Beginning Balance [2] (4)    
Ending Balance [2]   (4)  
Common Stock      
Beginning Balance 32 32 32
Ending Balance 32 32 32
Additional Paid-In Capital      
Beginning Balance 3,356 3,231 3,117
Employee incentive plans and other 125 125 114
Ending Balance 3,481 3,356 3,231
Retained Earnings      
Beginning Balance 25,216 24,648 24,823
Net income 5,231 1,286 540
Cash dividends declared (686) (679) (683)
Employee incentive plans and other 56 (35) (32)
Ending Balance 29,817 25,216 24,648
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 and 2018-02      
Beginning Balance [2] (4)    
Ending Balance [2]   (4)  
Accumulated Other Comprehensive Loss      
Beginning Balance (1,147) (865) (578)
Other comprehensive gain (loss), net of tax 415 (333) (287)
Ending Balance (732) (1,147) (865)
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02      
Reclassification to retained earnings due to the adoption of a new accounting standard on June 1, 2019 [1]   51  
Treasury Stock      
Beginning Balance (9,162) (9,289) (7,978)
Purchase of treasury stock   (3) (1,480)
Employee incentive plans and other 732 130 169
Ending Balance $ (8,430) $ (9,162) $ (9,289)
[1] Relates to the adoption of ASU 2018-02.
[2] Relates to the adoption of Accounting Standards Update (“ASU”) 2016-02 and ASU 2018-02
v3.21.2
Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Statement Of Stockholders Equity [Abstract]      
Other comprehensive loss, tax $ 10 $ (43) $ (57)
Purchase of treasury stock   20,000.00 6,600,000
Cash dividends declared, per share $ 2.60 $ 2.60 $ 2.60
Employee incentive plans and other, shares issued 5,400,000 1,000,000.0 1,300,000
v3.21.2
Description of Business Segments and Summary of Significant Accounting Policies
 12 Months Ended
May 31, 2021
Accounting Policies [Abstract]  
Description of Business Segments and Summary of Significant Accounting Policies

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

DESCRIPTION OF BUSINESS SEGMENTS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating collaboratively and innovating digitally, 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 operating segments.

FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2021 or ended May 31 of the year referenced.

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.

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, primarily transportation services. Substantially all 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. Revenue, including ancillary or accessorial fees and reductions for estimated customer incentives, is recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our FedEx 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”) 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 contracts. 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 distinct.

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 accompanying 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 shipments, 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 shipments totaled $715 million and $563 million at May 31, 2021 and May 31, 2020, respectively. Contract assets net of deferred unearned revenue were $572 million and $456 million at May 31, 2021 and May 31, 2020, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $9 million and $10 million at May 31, 2021 and May 31, 2020, 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 and duties, 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 15 for disclosure of disaggregated revenue 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 $428 million in 2021, $427 million in 2020 and $468 million in 2019.

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, including implementation of cloud computing service arrangements. 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

 

2021

 

 

2020

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

14,812

 

 

$

13,448

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,307

 

 

 

2,478

 

Package handling and ground support equipment

 

3 to 30 years

 

 

5,269

 

 

 

4,499

 

Information technology

 

2 to 10 years

 

 

1,863

 

 

 

1,795

 

Vehicles and trailers

 

3 to 15 years

 

 

4,033

 

 

 

4,345

 

Facilities and other

 

2 to 40 years

 

 

7,468

 

 

 

7,043

 

 

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 $3.8 billion in 2021, $3.6 billion in 2020 and $3.4 billion in 2019. Depreciation and amortization expense includes amortization of assets under finance leases.

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 $68 million in 2021, $54 million in 2020 and $64 million in 2019.

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 so 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.

During 2020, we made the decision to permanently retire from service 10 Airbus A310-300 aircraft and 12 related engines at FedEx Express to align with the needs of the U.S. domestic network and modernize its aircraft fleet. As a consequence of this decision, we recognized noncash impairment charges of $66 million ($50 million, net of tax, or $0.19 per diluted share) in the FedEx Express segment in 2020.

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 and remaining life 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, 2021, we had nine aircraft temporarily idled. These aircraft have been idled for an average of 17 months and are expected to return to revenue service.

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. See Note 5 for additional information.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 1 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. See Note 5 for additional information.

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 estimate 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. Only service cost is recognized in segment level operating results.

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 record the taxes for global intangible low-taxed income as a period cost.

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, property and cargo loss, 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. Claims costs are recognized on a gross basis and a receivable is recorded for amounts covered by third party insurance. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

LEASES. We lease certain facilities, aircraft, equipment and vehicles under operating and finance leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings.

Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets.

The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee.

For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index-based rate increases, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 8 for additional information.

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 hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive 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 hedge for any period presented. As of May 31, 2021, we designated €210 million of debt as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of May 31, 2021, the hedge remains effective.

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 Accumulated Other Comprehensive Income (“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. Bargaining for a successor agreement began in May 2021. A small number of our other employees are members of unions.

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 2021, we did not repurchase any shares of FedEx common stock. As of May 31, 2021, 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 2020, we repurchased 0.02 million shares of FedEx common stock at an average price of $156.90 per share for a total of $3 million. In 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.

Effective March 16, 2021, we further amended our amended and restated $2.0 billion five-year credit agreement (the “Five-Year Credit Agreement”) and entered into a new $1.5 billion 364-day credit agreement (the “364-Day Credit Agreement” and together with the Five-Year Credit Agreement, the “Credit Agreements”). The Credit Agreements no longer contain the temporary covenant added in the fourth quarter of 2020 restricting us from repurchasing any shares of our common stock. See Note 7 for more information on the Credit Agreements.

DIVIDENDS DECLARED PER COMMON SHARE. On June 14, 2021, our Board of Directors declared a quarterly dividend of $0.75 per share of common stock. The dividend was paid on July 12, 2021 to stockholders of record as of the close of business on June 28, 2021. 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. Effective March 16, 2021, the Credit Agreements no longer contain the temporary covenant added in the fourth quarter of 2020 restricting us from increasing the amount of our quarterly dividend payable per share of common stock from $0.65 per share. 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 January 2021, FedEx Express announced a workforce reduction plan in Europe as it nears the completion of the network integration of TNT Express. The plan will impact between 5,500 and 6,300 employees in Europe across operational teams and back-office functions. The execution of the plan is subject to a works council consultation process that will occur over an 18-month period in accordance with local country processes and regulations.

We incurred costs during 2021 of $116 million ($90 million, net of tax, or $0.33 per diluted share) associated with our business realignment activities. These costs are related to certain employee severance arrangements. Approximately $15 million was paid under this program in 2021. We expect the pre-tax cost of our business realignment activities to range from $300 million to $575 million through fiscal 2023. The actual amount and timing of business realignment costs and related cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans.

During 2019, we conducted a program to offer voluntary cash buyouts to eligible U.S.-based employees in certain staff functions. As a result of this program, approximately 1,500 employees left the company. Costs of the benefits provided under the U.S.-based voluntary employee buyout program of $320 million were recognized in 2019 when eligible employees accepted their offers, and included approximately $50 million of costs associated with funding to healthcare reimbursement accounts. Severance payments under this program were made at the time of departure and totaled approximately $50 million in 2020 and $220 million in 2019.

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 revenue 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) that rely on projections of future cash flows; and purchase price allocations.
v3.21.2
Recent Accounting Guidance
 12 Months Ended
May 31, 2021
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 June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 that amends the impairment model for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables, to utilize an expected loss methodology in place of the incurred loss methodology. We adopted this standard effective June 1, 2020. We updated our process for estimating the expected credit loss to include a review of forecast information that may impact expected collectability over the lifetime of the asset. See Note 3 for additional information. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15 that reduces the complexity of 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. We adopted this standard effective June 1, 2020 and applied these changes prospectively. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We early adopted this standard effective June 1, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
v3.21.2
Credit Losses
 12 Months Ended
May 31, 2021
Credit Loss [Abstract]  
Credit Losses

NOTE 3: CREDIT LOSSES

We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly, considering recent write-offs, collections information and underlying economic expectations.

Credit losses were $577 million in 2021, $442 million in 2020 and $295 million in 2019. Our allowance for credit losses was $358 million as of May 31, 2021 and $175 million at May 31, 2020.

v3.21.2
Business Combinations
 12 Months Ended
May 31, 2021
Business Combinations [Abstract]  
Business Combinations

NOTE 4: BUSINESS COMBINATIONS

On December 23, 2020, we acquired ShopRunner, Inc. (“ShopRunner”), an e-commerce platform that directly connects brands and merchants with online shoppers, for $228 million in cash from operations. The majority of the purchase price was allocated to goodwill and intangibles. The financial results of ShopRunner are included in “Corporate, other and eliminations” from the date of acquisition and were not material to our results of operations; therefore, pro forma financial information has not been provided.

On May 1, 2019, we acquired the international express division of FC (Flying Cargo) Express Ltd. 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.
v3.21.2
Goodwill and Other Intangible Assets
 12 Months Ended
May 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 5: 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

 

 

Corporate, Other and Eliminations

 

 

Total

 

Goodwill at May 31, 2019

 

$

5,016

 

 

$

840

 

 

$

767

 

 

$

1,945

 

 

$

8,568

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,551

)

 

 

(1,684

)

Balance as of May 31, 2019

 

 

5,016

 

 

 

840

 

 

 

634

 

 

 

394

 

 

 

6,884

 

Impairment charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(358

)

 

 

(358

)

Other(1)

 

 

(147

)

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(154

)

Balance as of May 31, 2020

 

 

4,869

 

 

 

840

 

 

 

634

 

 

 

29

 

 

 

6,372

 

Goodwill acquired(2)

 

 

18

 

 

 

103

 

 

 

—

 

 

 

40

 

 

 

161

 

Other(1)

 

 

471

 

 

 

—

 

 

 

—

 

 

 

(12

)

 

 

459

 

Balance as of May 31, 2021

 

$

5,358

 

 

$

943

 

 

$

634

 

 

$

57

 

 

$

6,992

 

Accumulated goodwill impairment charges

   as of May 31, 2021

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,909

)

 

$

(2,042

)

 

(1)

Primarily currency translation adjustments and purchase price allocation-related adjustments.

(2)

Goodwill acquired relates to the acquisition of ShopRunner. See Note 4 for more information.

Our reporting units with significant recorded goodwill include FedEx Express, FedEx Ground and FedEx Freight. We evaluated these reporting units during the fourth quarter and the estimated fair value of each of these reporting units exceeded their carrying values as of the end of 2021 and 2020; therefore, we do not believe that any of these reporting units were impaired as of the balance sheet dates.

In 2020, we recorded impairment charges of $358 million predominantly attributable to our FedEx Office and Print Services, Inc. (“FedEx Office”) reporting unit. The coronavirus (“COVID-19”) pandemic resulted in store closures and declining print revenue at FedEx Office during the fourth quarter of 2020. Based on these factors, our outlook for the FedEx Office business and retail industry changed in the fourth quarter of 2020, which contributed $348 million to the goodwill impairment charge. No impairments of goodwill were recognized during 2021 or 2019.

OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2021 and 2020 is as follows (in millions):

 

 

 

2021

 

 

2020

 

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

Customer relationships

 

$

591

 

 

$

(299

)

 

$

292

 

 

$

641

 

 

$

(327

)

 

$

314

 

Technology

 

 

65

 

 

 

(35

)

 

 

30

 

 

 

65

 

 

 

(57

)

 

 

8

 

Trademarks and other

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

132

 

 

 

(132

)

 

 

—

 

Total

 

$

657

 

 

$

(335

)

 

$

322

 

 

$

838

 

 

$

(516

)

 

$

322

 

 

Amortization expense for intangible assets was $49 million in 2021, $66 million in 2020 and $82 million in 2019.

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

 

2022

$

52

 

2023

 

49

 

2024

 

48

 

2025

 

47

 

2026

 

46

 

 
v3.21.2
Selected Current Liabilities
 12 Months Ended
May 31, 2021
Accounts Payable And Accrued Liabilities Fair Value Disclosure [Abstract]  
Selected Current Liabilities

NOTE 6: SELECTED CURRENT LIABILITIES

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

 

 

 

2021

 

 

2020

 

Accrued Salaries and Employee Benefits

 

 

 

 

 

 

 

 

Salaries

 

$

626

 

 

$

436

 

Employee benefits, including variable compensation

 

 

1,350

 

 

 

319

 

Compensated absences

 

 

927

 

 

 

814

 

 

 

$

2,903

 

 

$

1,569

 

Accrued Expenses

 

 

 

 

 

 

 

 

Self-insurance accruals

 

$

1,535

 

 

$

1,223

 

Taxes other than income taxes

 

 

637

 

 

 

417

 

Other

 

 

2,390

 

 

 

1,892

 

 

 

$

4,562

 

 

$

3,532

 

 

 
v3.21.2
Long-Term Debt and Other Financing Arrangements
 12 Months Ended
May 31, 2021
Debt And Capital Lease Obligations [Abstract]  
Long-term Debt and Other Financing Arrangements

NOTE 7: 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, 2021, are as follows (in millions):

 

 

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

Interest Rate%

 

 

Maturity

 

 

 

 

 

 

 

 

Senior secured debt:

 

 

1.875

 

 

2034

 

$

932

 

 

$

—

 

Senior unsecured debt:

 

 

3.40

 

 

2022

 

 

—

 

 

 

498

 

 

 

2.625-2.70

 

 

2023

 

 

—

 

 

 

748

 

 

 

 

4.00

 

 

2024

 

 

—

 

 

 

747

 

 

 

3.20-3.80

 

 

2025

 

 

—

 

 

 

1,687

 

 

 

 

3.25

 

 

2026

 

 

746

 

 

 

745

 

 

 

 

3.30

 

 

2027

 

 

—

 

 

 

446

 

 

 

 

3.40

 

 

2028

 

 

496

 

 

 

496

 

 

 

 

4.20

 

 

2029

 

 

397

 

 

 

397

 

 

 

3.10-4.25

 

 

2030

 

 

1,733

 

 

 

1,732

 

 

 

 

2.40

 

 

2031

 

 

989

 

 

 

—

 

 

 

 

4.90

 

 

2034

 

 

496

 

 

 

495

 

 

 

 

3.90

 

 

2035

 

 

494

 

 

 

494

 

 

 

 

3.25

 

 

2041

 

 

739

 

 

 

—

 

 

 

3.875-4.10

 

 

2043

 

 

985

 

 

 

984

 

 

 

 

5.10

 

 

2044

 

 

742

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

641

 

 

 

4.55-4.75

 

 

2046

 

 

2,461

 

 

 

2,461

 

 

 

 

4.40

 

 

2047

 

 

736

 

 

 

735

 

 

 

 

4.05

 

 

2048

 

 

986

 

 

 

986

 

 

 

 

4.95

 

 

2049

 

 

836

 

 

 

835

 

 

 

 

5.25

 

 

2050

 

 

1,226

 

 

 

1,225

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

 

0.70

 

 

2022

 

 

—

 

 

 

695

 

 

 

 

1.00

 

 

2023

 

 

—

 

 

 

815

 

 

 

 

0.45

 

 

2026

 

 

607

 

 

 

541

 

 

 

 

1.625

 

 

2027

 

 

1,516

 

 

 

1,351

 

 

 

 

0.45

 

 

2029

 

 

725

 

 

 

—

 

 

 

 

1.30

 

 

2032

 

 

604

 

 

 

539

 

 

 

 

0.95

 

 

2033

 

 

784

 

 

 

—

 

Total senior unsecured debt

 

 

 

 

 

 

 

 

19,422

 

 

 

21,518

 

Finance lease obligations

 

 

 

 

 

 

 

 

525

 

 

 

485

 

 

 

 

 

 

 

 

 

 

20,879

 

 

 

22,003

 

Less current portion

 

 

 

 

 

 

 

 

146

 

 

 

51

 

 

 

 

 

 

 

 

 

$

20,733

 

 

$

21,952

 

 

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 3.4% as of May 31, 2021. Long-term debt, including current maturities and exclusive of finance leases, had estimated fair values of $23.1 billion at May 31, 2021 and $22.8 billion at May 31, 2020. 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 and allows pass-through trusts formed by FedEx Express to sell, in one or more future offerings, pass-through certificates.

During August 2020, FedEx Express issued $970 million of Pass-Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due in February 2034 utilizing pass-through trusts (the “Trusts”). The Certificates are secured by 19 Boeing aircraft with a net book value of $1.9 billion at May 31, 2021. The payment obligations of FedEx Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx. FedEx Express is using the proceeds from the issuance for general corporate purposes.

Each Trust meets the definition of a variable interest entity, or VIE, as defined in the Consolidations topic of the Codification (ASC 810), and must be considered for consolidation in our financial statements. Our assessment of the Trusts considers both quantitative and qualitative factors, including the purpose for which the Trust was established and the nature of the risks related to the Trusts. Neither FedEx nor FedEx Express invests in or possesses a financial interest in the Trusts. Rather, FedEx Express has an obligation to make interest and principal payments, which are fully and unconditionally guaranteed by FedEx, and is not the primary beneficiary of the Trusts. Based on this analysis, we determined that we are not required to consolidate the Trusts.

On March 16, 2021, we entered into an amended and restated $2.0 billion Five-Year Credit Agreement and a $1.5 billion 364-Day Credit Agreement. The Five-Year Credit Agreement expires in March 2026 and includes a $250 million letter of credit sublimit. The 364-Day Credit Agreement expires in March 2022. The Credit Agreements are available to finance our operations and other cash flow needs. As of May 31, 2021, no commercial paper was outstanding, and we had $250 million of the letter of credit sublimit unused under the Five-Year Credit Agreement. Outstanding commercial paper reduces the amount available to borrow under the Credit Agreements.

Prior to the amendment of the Five-Year Credit Agreement and entry into the current 364-Day Credit Agreement on March 16, 2021, our credit agreements contained a financial covenant requiring us to maintain a ratio of debt to consolidated earnings (excluding noncash retirement plans MTM adjustments, noncash pension service costs and noncash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.75 to 1.0, calculated as of May 31, 2021 on a rolling four-quarters basis. Effective March 16, 2021, we are required to maintain a ratio of debt to adjusted EBITDA of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four-quarter basis. The ratio of our debt to adjusted EBITDA was 1.97 to 1.0 at May 31, 2021.

We believe the financial covenant discussed above is the only significant restrictive covenant in the Credit Agreements. The 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 the 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 the Credit Agreements, our access to financing could become limited.

During the fourth quarter of 2021, we issued $3.25 billion of senior unsecured debt under our current shelf registration statement, comprised of €600 million of 0.45% fixed-rate notes due in May 2029 (the “Sustainability Notes”), €650 million of 0.95% fixed-rate notes due in May 2033, $1.0 billion of 2.40% fixed-rate notes due in May 2031 and $750 million of 3.25% fixed-rate notes due in May 2041. We used the net proceeds from these offerings to redeem the $500 million aggregate principal amount outstanding of our 3.40% notes due 2022, the €640 million aggregate principal amount outstanding of our 0.70% notes due 2022, the $500 million aggregate principal amount outstanding of our 2.625% notes due 2023, the €750 million aggregate principal amount outstanding of our 1.00% notes due 2023, the $250 million aggregate principal amount outstanding of our 2.70% notes due 2023, the $750 million aggregate principal amount outstanding of our 4.00% notes due 2024, the $700 million aggregate principal amount outstanding of our 3.20% notes due 2025, the $1.0 billion aggregate principal amount outstanding of our 3.80% notes due 2025 and the $450 million aggregate principal amount outstanding of our 3.30% notes due 2027. We intend to use an amount equal to the net proceeds from the offering of the Sustainability Notes to fund or refinance a portfolio of new or ongoing projects in the following areas: clean transportation; green buildings; energy efficiency; eco-efficient and/or circular economy adapted products, production technologies and processes; pollution prevention and control; renewable energy; and socioeconomic advancement and empowerment. As a result of the debt redemption, we recognized a loss on debt extinguishment of $393 million in 2021.
v3.21.2
Leases
 12 Months Ended
May 31, 2021
Leases [Abstract]  
Leases

NOTE 8: LEASES

The following table is a summary of the components of net lease cost for the period ended May 31 (in millions):

 

 

 

2021

 

 

2020

 

 

Operating lease cost

 

$

2,848

 

 

$

2,668

 

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

     Amortization of right-of-use assets

 

 

23

 

 

 

18

 

 

     Interest on lease liabilities

 

 

17

 

 

 

12

 

 

Total finance lease cost

 

 

40

 

 

 

30

 

 

Short-term lease cost

 

 

387

 

 

 

197

 

 

Variable lease cost

 

 

1,318

 

 

 

1,160

 

 

Net lease cost

 

$

4,593

 

 

$

4,055

 

 

 

Lease expenses are primarily included in the “Rentals and landing fees” line item. Amounts related to embedded leases are included in the “Purchased transportation,” “Fuel” and “Other” line items in the accompanying consolidated statements of income.

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

 

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

     Operating cash flows paid for operating leases

 

$

2,750

 

 

$

2,608

 

     Operating cash flows paid for interest portion of finance leases

 

 

16

 

 

 

14

 

     Financing cash flows paid for principal portion of finance leases

 

 

75

 

 

 

84

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

3,703

 

 

$

1,915

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

126

 

 

$

484

 

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

 

 

 

2021

 

 

2020

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

$

15,383

 

 

$

13,917

 

 

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

 

2,208

 

 

 

1,923

 

Operating lease liabilities

 

 

13,375

 

 

 

12,195

 

    Total operating lease liabilities

 

$

15,583

 

 

$

14,118

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Net property and equipment

 

$

504

 

 

$

480

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

96

 

 

 

51

 

Long-term debt, less current portion

 

 

429

 

 

 

434

 

    Total finance lease liabilities

 

$

525

 

 

$

485

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

 

 

 

 

 

 

 

Operating leases

 

 

9.9

 

 

 

9.9

 

Finance leases

 

 

30.1

 

 

 

32.0

 

 

 

 

 

 

 

 

 

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

Operating leases

 

 

2.94

%

 

 

3.19

%

Finance leases

 

 

3.43

%

 

 

3.58

%

 

 

We utilize certain aircraft, land, facilities, retail locations and equipment under finance and operating leases that expire at various dates through 2060. We leased 3% of our total aircraft fleet under operating leases as of May 31, 2021 and 5% as of May 31, 2020. 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.

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at May 31, 2021 is as follows (in millions):

 

 

 

Aircraft

and Related

Equipment

 

 

Facilities

and Other

 

 

Total

Operating

Leases

 

 

Finance Leases

 

 

Total Leases

 

2022

 

$

234

 

 

$

2,403

 

 

$

2,637

 

 

$

19

 

 

$

2,656

 

2023

 

 

198

 

 

 

2,255

 

 

 

2,453

 

 

 

106

 

 

 

2,559

 

2024

 

 

102

 

 

 

1,986

 

 

 

2,088

 

 

 

24

 

 

 

2,112

 

2025

 

 

69

 

 

 

1,739

 

 

 

1,808

 

 

 

24

 

 

 

1,832

 

2026

 

 

61

 

 

 

1,516

 

 

 

1,577

 

 

 

23

 

 

 

1,600

 

Thereafter

 

 

184

 

 

 

7,358

 

 

 

7,542

 

 

 

698

 

 

 

8,240

 

Total lease payments

 

 

848

 

 

 

17,257

 

 

 

18,105

 

 

 

894

 

 

 

18,999

 

Less imputed interest

 

 

(66

)

 

 

(2,456

)

 

 

(2,522

)

 

 

(369

)

 

 

(2,891

)

Present value of lease liability

 

$

782

 

 

$

14,801

 

 

$

15,583

 

 

$

525

 

 

$

16,108

 

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.

As of May 31, 2021, FedEx has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for build-to-suit facilities and have undiscounted future payments of approximately $2.5 billion and will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2022 to 2023.

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.
v3.21.2
Preferred Stock
 12 Months Ended
May 31, 2021
Preferred Stock [Abstract]  
Preferred Stock

NOTE 9: 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, 2021, none of these shares had been issued.

v3.21.2
Accumulated Other Comprehensive Income
 12 Months Ended
May 31, 2021
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]  
Accumulated Other Comprehensive Income

NOTE 10: 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):

 

 

 

2021

 

 

2020

 

 

2019

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,207

)

 

$

(954

)

 

$

(759

)

Translation adjustments

 

 

422

 

 

 

(254

)

 

 

(195

)

Reclassification to retained earnings due to the adoption of ASU 2018-02

 

 

—

 

 

 

1

 

 

 

—

 

Balance at end of period

 

 

(785

)

 

 

(1,207

)

 

 

(954

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

60

 

 

 

89

 

 

 

181

 

Prior service cost (credit) arising during period

 

 

—

 

 

 

3

 

 

 

—

 

Reclassifications from AOCI

 

 

(7

)

 

 

(82

)

 

 

(92

)

Reclassification to retained earnings due to the adoption of ASU 2018-02

 

 

—

 

 

 

50

 

 

 

—

 

Balance at end of period

 

 

53

 

 

 

60

 

 

 

89

 

Accumulated other comprehensive loss at end of period

 

$

(732

)

 

$

(1,147

)

 

$

(865

)

 

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

 

 

2021

 

 

2020

 

 

2019

 

 

 

Amortization of retirement plans prior service

   credits, before tax

 

$

10

 

 

$

107

 

 

$

120

 

 

Other retirement plans income (expense)

Income tax benefit

 

 

(3

)

 

 

(25

)

 

 

(28

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

7

 

 

$

82

 

 

$

92

 

 

Net income

 
v3.21.2
Stock-Based Compensation
 12 Months Ended
May 31, 2021
Employee Service Share Based Compensation Aggregate Disclosures [Abstract]  
Stock-Based Compensation

NOTE 11: STOCK-BASED COMPENSATION

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

 

 

 

2021

 

 

2020

 

 

2019

 

Stock-based compensation expense

 

$

200

 

 

$

168

 

 

$

174

 

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 per share 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:

 

 

 

2021

 

 

2020

 

 

2019

 

Weighted-average Black-Scholes value per share

 

$

44.11

 

 

$

33.97

 

 

$

61.42

 

Intrinsic value of options exercised

 

$

593

 

 

$

44

 

 

$

122

 

Black-Scholes Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.4 years

 

 

6.4 years

 

Expected volatility

 

 

30

%

 

 

23

%

 

 

21

%

Risk-free interest rate

 

 

1.32

%

 

 

1.91

%

 

 

2.94

%

Dividend yield

 

 

1.710

%

 

 

1.630

%

 

 

0.935

%

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, 2021:

 

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

(in millions)(1)

 

Outstanding at June 1, 2020

 

 

16,124,745

 

 

$

167.79

 

 

 

 

 

 

 

 

 

Granted

 

 

4,717,412

 

 

$

168.73

 

 

 

 

 

 

 

 

 

Exercised

 

 

(5,063,165

)

 

 

146.10

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(453,495

)

 

 

168.99

 

 

 

 

 

 

 

 

 

Outstanding at May 31, 2021

 

 

15,325,497

 

 

$

175.19

 

 

 

6.8

 

 

$

2,139

 

Exercisable

 

 

7,054,806

 

 

$

173.26

 

 

 

4.9

 

 

$

999

 

Expected to vest

 

 

7,676,476

 

 

$

176.85

 

 

 

8.5

 

 

$

1,059

 

Available for future grants

 

 

12,233,805

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only presented for options with market value at May 31, 2021 in excess of the exercise price of the option.

The options granted during 2021 are primarily related to our principal annual stock option grant in June 2020.

The following table summarizes information regarding vested and unvested restricted stock for the year ended May 31, 2021:

 

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Unvested at June 1, 2020

 

 

371,690

 

 

$

192.19

 

Granted

 

 

335,004

 

 

$

155.19

 

Vested

 

 

(167,767

)

 

 

188.62

 

Forfeited

 

 

(1,646

)

 

 

221.09

 

Unvested at May 31, 2021

 

 

537,281

 

 

$

170.16

 

 

During the year ended May 31, 2020, there were 207,012 shares of restricted stock granted with a weighted-average fair value of $158.58 per share. During the year ended May 31, 2019, there were 149,579 shares of restricted stock granted with a weighted-average fair value of $253.28 per share.

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

 

 

 

Stock Options

 

 

 

Vested during

the year

 

 

Fair value

(in millions)

 

2021

 

 

2,492,039

 

 

$

115

 

2020

 

 

2,073,310

 

 

$

99

 

2019

 

 

2,249,301

 

 

$

115

 

As of May 31, 2021, there was $275 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, 2021 represented 10% of the total outstanding common and equity compensation shares and equity compensation shares available for grant.

v3.21.2
Computation of Earnings Per Share
 12 Months Ended
May 31, 2021
Earnings Per Share [Abstract]  
Computation of Earnings Per Share

NOTE 12: 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):

 

 

 

2021

 

 

2020

 

 

2019

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

5,220

 

 

$

1,284

 

 

$

539

 

Weighted-average common shares

 

 

264

 

 

 

261

 

 

 

262

 

Basic earnings per common share

 

$

19.79

 

 

$

4.92

 

 

$

2.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

5,221

 

 

$

1,284

 

 

$

539

 

Weighted-average common shares

 

 

264

 

 

 

261

 

 

 

262

 

Dilutive effect of share-based awards

 

 

4

 

 

 

1

 

 

 

3

 

Weighted-average diluted shares

 

 

268

 

 

 

262

 

 

 

265

 

Diluted earnings per common share

 

$

19.45

 

 

$

4.90

 

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

3.5

 

 

 

11.7

 

 

 

5.4

 

 

(1)

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

 
v3.21.2
Income Taxes
 12 Months Ended
May 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 13: INCOME TAXES

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

 

 

 

2021

 

 

2020

 

 

2019

 

Current provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

199

 

 

$

(230

)

 

$

(107

)

State and local

 

 

158

 

 

 

67

 

 

 

64

 

Foreign

 

 

284

 

 

 

198

 

 

 

243

 

 

 

 

641

 

 

 

35

 

 

 

200

 

Deferred provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

667

 

 

 

475

 

 

 

(61

)

State and local

 

 

70

 

 

 

1

 

 

 

(7

)

Foreign

 

 

65

 

 

 

(128

)

 

 

(17

)

 

 

 

802

 

 

 

348

 

 

 

(85

)

 

 

$

1,443

 

 

$

383

 

 

$

115

 

 

Pre-tax earnings of foreign operations for 2021, 2020 and 2019 were $1.8 billion, $634 million and $929 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 to income before income taxes for the years ended May 31 is as follows (dollars in millions):

 

 

 

2021

 

 

2020

 

 

2019

 

Taxes computed at federal statutory rate

 

$

1,401

 

 

$

350

 

 

$

138

 

(Decreases) increases in income tax from:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from U.S. tax loss carryback to prior years

 

 

(279

)

 

 

(71

)

 

 

—

 

State and local income taxes, net of federal benefit

 

 

179

 

 

 

53

 

 

 

44

 

Foreign operations

 

 

138

 

 

 

38

 

 

 

(1

)

Benefits from share-based payments

 

 

(69

)

 

 

(5

)

 

 

(18

)

Uncertain tax positions

 

 

65

 

 

 

(14

)

 

 

8

 

Foreign tax rate enactments

 

 

(61

)

 

 

(10

)

 

 

50

 

Non-deductible expenses

 

 

53

 

 

 

70

 

 

 

79

 

Valuation allowance

 

 

14

 

 

 

(129

)

 

 

(79

)

Goodwill impairment charges

 

 

—

 

 

 

75

 

 

 

—

 

U.S. deferred tax adjustments related to foreign operations

 

 

—

 

 

 

51

 

 

 

—

 

Tax Cuts and Jobs Act (“TCJA”)

 

 

—

 

 

 

—

 

 

 

(71

)

Foreign tax credits from distributions

 

 

—

 

 

 

—

 

 

 

(8

)

Other, net

 

 

2

 

 

 

(25

)

 

 

(27

)

Provision for income taxes

 

$

1,443

 

 

$

383

 

 

$

115

 

Effective Tax Rate

 

 

21.6

%

 

 

23.0

%

 

 

17.6

%

 

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to address the economic impact of the COVID-19 pandemic in the United States. Among other things, the CARES Act allows a five-year carryback period for tax losses generated in 2019 through 2021. The 2021 tax provision includes a benefit of $279 million from an increase in our 2020 tax loss that the CARES Act allows to be carried back to 2015, when the U.S. federal income tax rate was 35%. The increase in our estimated 2020 tax loss is attributable to our Application for Change in Accounting Method discussed below, voluntary contributions to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) and other accelerated deductions claimed on the 2020 tax return filed in 2021. The 2021 tax provision also includes a benefit of $66 million from a tax rate increase in the Netherlands applied to our deferred tax asset balances and was unfavorably impacted by an increase in uncertain tax positions for matters in multiple jurisdictions.  

 

 

We filed an application with the Internal Revenue Service (“IRS”) in 2020 requesting approval to change our accounting method for depreciation to allow retroactive application of tax regulations issued during 2020 on certain assets placed in service during 2018 and 2019. During 2021, the IRS issued guidance granting automatic approval to change the method of accounting for these assets resulting in an income tax benefit of $130 million.

The 2020 tax provision includes a benefit of $133 million from the reduction of a valuation allowance on certain foreign tax loss carryforwards and a benefit of $71 million in connection with our estimated 2020 tax loss that the CARES Act allows to be carried back to 2015, a tax year when the U.S. federal income tax rate was 35%. The 2020 tax provision also includes a deferred income tax expense of $51 million for a change in deferred tax balances related to future foreign tax credits from our international structure as a result of changes in legal entity forecasts during the fourth quarter. The 2020 effective tax rate was negatively impacted by decreased earnings in certain non-U.S. jurisdictions.    

The 2019 tax provision 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 a tax rate decrease in the Netherlands applied to our deferred tax balances. The 2019 tax provision was also favorably impacted by the TCJA, which resulted in benefits of approximately $75 million from accelerated deductions claimed at a federal rate of 29.2% on our 2018 U.S. income tax return filed in 2019. Due to our May 31 fiscal year-end, our U.S. statutory rate reduction from 35% to 21% under the TCJA 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.

As provided for in the TCJA, our historical earnings were subject to the one-time transition tax and can now 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).

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

 

 

 

2021

 

 

2020

 

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

Property, equipment, leases and intangibles

 

$

4,248

 

 

$

9,731

 

 

$

3,819

 

 

$

8,745

 

Employee benefits

 

 

1,178

 

 

 

—

 

 

 

1,448

 

 

 

—

 

Self-insurance accruals

 

 

799

 

 

 

—

 

 

 

647

 

 

 

—

 

Other

 

 

497

 

 

 

52

 

 

 

579

 

 

 

375

 

Net operating loss/credit carryforwards

 

 

934

 

 

 

—

 

 

 

1,262

 

 

 

—

 

Valuation allowances

 

 

(382

)

 

 

—

 

 

 

(450

)

 

 

—

 

 

 

$

7,274

 

 

$

9,783

 

 

$

7,305

 

 

$

9,120

 

 

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

 

 

 

2021

 

 

2020

 

Noncurrent deferred tax assets(1)

 

$

1,418

 

 

$

1,347

 

Noncurrent deferred tax liabilities

 

 

(3,927

)

 

 

(3,162

)

 

 

$

(2,509

)

 

$

(1,815

)

 

(1)

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

We have approximately $3.0 billion of net operating loss carryovers in various foreign jurisdictions, $1.2 billion of state operating loss carryovers and $100 million of U.S. federal operating loss carryovers. The valuation allowances primarily represent amounts reserved for operating loss carryforwards, which expire over varying periods starting in 2022. 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. The reduction in the valuation allowance balance includes a decrease of $70 million from the integration of certain foreign FedEx Express and TNT Express legal entities which did not impact current year tax expense due to an offsetting decrease in related deferred tax assets. See Note 1 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. We are currently under examination by the IRS for the 2016 through 2019 tax years. 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. However, we believe we have recorded adequate amounts of tax, including interest and penalties, for any adjustments expected to occur.

During 2021, we filed suit in U.S. District Court for the Western District of Tennessee challenging the validity of a tax regulation related to the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the TCJA. Our lawsuit seeks to have the court declare this regulation invalid and order the refund of overpayments of U.S. federal income taxes for 2018 and 2019 attributable to the denial of foreign tax credits under the regulation. We have recorded a cumulative benefit of $233 million through 2019 attributable to our interpretation of the TCJA and the Internal Revenue Code. We continue to pursue this lawsuit; however, if we are ultimately unsuccessful in defending our position, we may be required to reverse the benefit previously recorded.

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

 

 

 

2021

 

 

2020

 

 

2019

 

Balance at beginning of year

 

$

129

 

 

$

164

 

 

$

161

 

Increases for tax positions taken in the current year

 

 

3

 

 

 

3

 

 

 

—

 

Increases for tax positions taken in prior years

 

 

69

 

 

 

4

 

 

 

31

 

Decreases for tax positions taken in prior years

 

 

(6

)

 

 

(10

)

 

 

(4

)

Settlements

 

 

(6

)

 

 

(31

)

 

 

(21

)

Changes due to currency translation

 

 

3

 

 

 

(1

)

 

 

(3

)

Balance at end of year

 

$

192

 

 

$

129

 

 

$

164

 

 

Our liabilities recorded for uncertain tax positions include $190 million at May 31, 2021 and $127 million at May 31, 2020 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 $61 million on May 31, 2021 and $41 million on May 31, 2020. Our consolidated statements of income for 2021 include $20 million of interest expense associated with our uncertain tax positions. Interest for 2020 and 2019 as well as 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. 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. However, estimates of the amounts or ranges for individual matters where a material change is reasonably possible cannot be made. We believe we have recorded adequate amounts of tax reserves, including interest and penalties, for any adjustments that may occur.

v3.21.2
Retirement Plans
 12 Months Ended
May 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

NOTE 14: 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 plan costs over the past three years is as follows (in millions):

 

 

 

2021

 

 

2020

 

 

2019

 

Defined benefit pension plans

 

$

88

 

 

$

148

 

 

$

112

 

Defined contribution plans

 

 

685

 

 

 

574

 

 

 

561

 

Postretirement healthcare plans

 

 

83

 

 

 

86

 

 

 

75

 

Retirement plans MTM (gain) loss

 

 

(1,176

)

 

 

794

 

 

 

3,882

 

 

 

$

(320

)

 

$

1,602

 

 

$

4,630

 

 

 

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

 

 

 

2021

 

 

2020

 

 

2019

 

Actual versus expected return on assets

 

$

(1,712

)

 

$

(2,024

)

 

$

476

 

Discount rate change

 

 

(397

)

 

 

2,997

 

 

 

1,780

 

Demographic experience:

 

 

 

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

302

 

 

 

50

 

 

 

739

 

   Change in future assumptions

 

 

685

 

 

 

(229

)

 

 

887

 

Curtailment gain on TNT Netherlands pension plan

 

 

(54

)

 

 

—

 

 

 

—

 

Total MTM (gain) loss

 

$

(1,176

)

 

$

794

 

 

$

3,882

 

2021

Net of all fees and expenses, the actual rate of return on our U.S. Pension Plan assets was 12.90%, which was higher than our expected return of 6.75%. Positive portfolio returns derived from our return-seeking assets were partially offset by losses from our fixed-income assets due to rising long-term interest rates. The weighted-average discount rate for all our pension and postretirement healthcare plans increased from 3.05% at May 31, 2020 to 3.11% at May 31, 2021. The demographic experience in 2021 reflects an update to our mortality and retirement rate assumptions and a current-year actuarial loss due to unfavorable experience compared to various demographic assumptions.

2020

The weighted-average discount rate for all our pension and postretirement healthcare plans decreased from 3.69% at May 31, 2019 to 3.05% at May 31, 2020. The demographic experience in 2020 reflects an update to our mortality assumption 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 15.00% was higher than our expected return of 6.75%, as return-seeking assets, primarily equities, were positive despite equity market volatility. Additionally, fixed-income assets performed as expected as interest rates declined.

 

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.

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.

In November 2019, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all-401(k)-plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the PPA pension formula will be given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its company match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure become effective beginning January 1, 2022. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results.

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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Discount rate used to determine benefit

   obligation

 

 

3.23

%

 

 

3.14

%

 

 

3.85

%

 

 

1.83

%

 

 

1.79

%

 

 

1.92

%

 

 

2.81

%

 

 

2.95

%

 

 

3.70

%

Discount rate used to determine net periodic

   benefit cost

 

 

3.14

 

 

 

3.85

 

 

 

4.27

 

 

 

1.79

 

 

 

1.92

 

 

 

2.34

 

 

 

2.95

 

 

 

3.70

 

 

 

4.33

 

Rate of increase in future compensation

   levels used to determine benefit obligation

 

 

5.06

 

 

 

5.17

 

 

 

5.10

 

 

 

2.83

 

 

 

2.19

 

 

 

2.27

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation levels

   used to determine net periodic benefit cost

 

 

5.17

 

 

 

5.10

 

 

 

4.43

 

 

 

2.19

 

 

 

2.43

 

 

 

2.22

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.75

 

 

 

6.75

 

 

 

6.75

 

 

 

2.71

 

 

 

3.26

 

 

 

3.12

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net

   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.00

 

 

 

2.20

 

 

 

2.20

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine

   benefit obligation

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.50

 

 

 

2.00

 

 

 

2.20

 

 

 

—

 

 

 

—

 

 

 

—

 

 

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 2021, 2020 and 2019. For 2022, we have decreased our EROA assumption to 6.50% due to the significant increase in 2021 administrative expenses payable from the pension trust due to higher Pension Benefit Guaranty Corporation (“PBGC”) variable-rate premiums (“VRP”) and based on our long-term outlook for the capital markets. The higher 2021 PBGC VRP resulted in a 25-basis point lower rate of return compared to 2020. The historical annual return on our U.S. Pension Plan assets, calculated on a compound geometric basis, was 7.9%, net of all fees and expenses, for the 15-year period ended May 31, 2021.

 

The investment strategy for our U.S. Pension Plan assets is to utilize a diversified mix of public equities, 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 portfolio risk.

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

 

•

Cash and cash equivalents. Level 1 investments include cash, cash equivalents and foreign currency valued using exchange rates. 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. 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 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 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

 

 

 

2021

 

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

 

$

614

 

 

 

2

%

 

0 - 5%

 

$

36

 

 

$

578

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

4,038

 

 

 

14

 

 

 

 

 

1,644

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

4,664

 

 

 

16

 

 

 

 

 

3,792

 

 

 

2

 

 

 

 

 

Global equities(2)

 

 

1,668

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

967

 

 

 

3

 

 

 

 

 

884

 

 

 

5

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

8,714

 

 

 

29

 

 

 

 

 

 

 

 

 

8,714

 

 

 

 

 

Government(2)

 

 

5,190

 

 

 

17

 

 

 

 

 

 

 

 

 

3,296

 

 

 

 

 

Mortgage-backed and other(2)

 

 

1,065

 

 

 

3

 

 

 

 

 

 

 

 

 

226

 

 

 

 

 

Alternative investments(2)

 

 

2,855

 

 

 

10

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

537

 

Other

 

 

10

 

 

 

—

 

 

 

 

 

(14

)

 

 

(4

)

 

 

 

 

Total U.S. plan assets

 

$

29,785

 

 

 

100

%

 

 

 

$

6,342

 

 

$

12,817

 

 

$

537

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10

 

 

 

1

%

 

 

 

$

10

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

123

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

335

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

434

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

574

 

 

30

 

 

 

 

 

350

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

217

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

189

 

 

9

 

 

 

 

 

19

 

 

$

36

 

 

 

 

 

Total international plan assets

 

$

1,882

 

 

 

100

%

 

 

 

$

379

 

 

$

36

 

 

 

 

 

(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

 

 

 

2020

 

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

 

$

709

 

 

 

3

%

 

0 - 5%

 

$

278

 

 

$

431

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

3,070

 

 

 

11

 

 

 

 

 

1,172

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,314

 

 

 

12

 

 

 

 

 

2,738

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

1,350

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

673

 

 

 

3

 

 

 

 

 

673

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

7,983

 

 

 

30

 

 

 

 

 

 

 

 

 

7,983

 

 

 

 

 

Government(2)

 

 

6,928

 

 

 

26

 

 

 

 

 

 

 

 

 

4,652

 

 

 

 

 

Mortgage-backed and other(2)

 

 

634

 

 

 

2

 

 

 

 

 

 

 

 

 

170

 

 

 

 

 

Alternative investments(2)

 

 

2,264

 

 

 

8

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

416

 

Other

 

 

53

 

 

 

—

 

 

 

 

 

57

 

 

 

(3

)

 

 

 

 

Total U.S. plan assets

 

$

26,978

 

 

 

100

%

 

 

 

$

4,918

 

 

$

13,233

 

 

$

416

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9

 

 

 

1

%

 

 

 

$

9

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

72

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

218

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

342

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

510

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

188

 

 

 

12

 

 

 

 

 

318

 

 

 

 

 

 

 

 

 

Other(2)

 

 

158

 

 

 

10

 

 

 

 

 

13

 

 

$

63

 

 

 

 

 

Total international plan assets

 

$

1,497

 

 

 

100

%

 

 

 

$

340

 

 

$

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

2021

 

 

2020

 

Balance at beginning of year

 

$

416

 

 

$

302

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Assets held during current year

 

 

41

 

 

 

19

 

Assets sold during the year

 

 

22

 

 

 

16

 

Purchases, sales and settlements

 

 

58

 

 

 

79

 

Balance at end of year

 

$

537

 

 

$

416

 

 

 

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, 2021 and a statement of the funded status as of May 31, 2021 and 2020 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Accumulated Benefit Obligation (“ABO”)

 

$

30,455

 

 

$

29,272

 

 

$

2,417

 

 

$

2,012

 

 

 

 

 

 

 

 

 

Changes in PBO and Accumulated Postretirement

   Benefit Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

30,199

 

 

$

26,554

 

 

$

2,242

 

 

$

2,301

 

 

$

1,314

 

 

$

1,221

 

Service cost

 

 

851

 

 

 

768

 

 

 

83

 

 

 

96

 

 

 

44

 

 

 

42

 

Interest cost

 

 

959

 

 

 

1,000

 

 

 

43

 

 

 

43

 

 

 

39

 

 

 

44

 

Actuarial loss (gain)

 

 

362

 

 

 

2,817

 

 

 

105

 

 

 

(87

)

 

 

125

 

 

 

85

 

Benefits paid

 

 

(948

)

 

 

(940

)

 

 

(53

)

 

 

(41

)

 

 

(112

)

 

 

(127

)

Settlements

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(6

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

202

 

 

 

(64

)

 

 

46

 

 

 

49

 

PBO/APBO at the end of year

 

$

31,423

 

 

$

30,199

 

 

$

2,611

 

 

$

2,242

 

 

$

1,456

 

 

$

1,314

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

26,978

 

 

$

23,320

 

 

$

1,713

 

 

$

1,578

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

3,436

 

 

 

3,530

 

 

 

114

 

 

 

146

 

 

 

—

 

 

 

—

 

Company contributions

 

 

319

 

 

 

1,068

 

 

 

142

 

 

 

86

 

 

 

64

 

 

 

77

 

Benefits paid

 

 

(948

)

 

 

(940

)

 

 

(53

)

 

 

(41

)

 

 

(112

)

 

 

(127

)

Settlements

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(6

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

228

 

 

 

(50

)

 

 

48

 

 

 

50

 

Fair value of plan assets at the end of year

 

$

29,785

 

 

$

26,978

 

 

$

2,133

 

 

$

1,713

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(1,638

)

 

$

(3,221

)

 

$

(478

)

 

$

(529

)

 

$

(1,456

)

 

$

(1,314

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

231

 

 

$

142

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare and

   other benefit obligations

 

 

(41

)

 

 

(38

)

 

 

(18

)

 

 

(17

)

 

 

(110

)

 

 

(104

)

Noncurrent pension, postretirement healthcare

   and other benefit obligations

 

 

(1,597

)

 

 

(3,183

)

 

 

(691

)

 

 

(654

)

 

 

(1,346

)

 

 

(1,210

)

Net amount recognized

 

$

(1,638

)

 

$

(3,221

)

 

$

(478

)

 

$

(529

)

 

$

(1,456

)

 

$

(1,314

)

Amounts Recognized in AOCI and not yet reflected

   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit) cost and other

 

$

(61

)

 

$

(68

)

 

$

(6

)

 

$

(7

)

 

$

—

 

 

$

1

 

 

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

 

 

 

PBO

 

 

Fair Value of

Plan Assets

 

 

Funded Status

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

31,225

 

 

$

29,785

 

 

$

(1,440

)

Nonqualified

 

 

198

 

 

 

—

 

 

 

(198

)

International Plans

 

 

2,611

 

 

 

2,133

 

 

 

(478

)

Total

 

$

34,034

 

 

$

31,918

 

 

$

(2,116

)

2020

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

30,004

 

 

$

26,978

 

 

$

(3,026

)

Nonqualified

 

 

195

 

 

 

—

 

 

 

(195

)

International Plans

 

 

2,242

 

 

 

1,713

 

 

 

(529

)

Total

 

$

32,441

 

 

$

28,691

 

 

$

(3,750

)

 

 

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

 

 

 

2021

 

 

2020

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

29,785

 

 

$

26,978

 

PBO

 

 

(31,423

)

 

 

(30,199

)

Net funded status

 

$

(1,638

)

 

$

(3,221

)

International Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

241

 

 

$

205

 

PBO

 

 

(950

)

 

 

(876

)

Net funded status

 

$

(709

)

 

$

(671

)

 

 

 

ABO Exceeds the Fair Value

of Plan Assets

 

 

 

2021

 

 

2020

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(29,083

)

 

$

(29,272

)

Fair value of plan assets

 

 

28,383

 

 

 

26,978

 

PBO

 

 

(29,888

)

 

 

(30,199

)

Net funded status

 

$

(1,505

)

 

$

(3,221

)

International Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(722

)

 

$

(637

)

Fair value of plan assets

 

 

206

 

 

 

175

 

PBO

 

 

(908

)

 

 

(840

)

Net funded status

 

$

(702

)

 

$

(665

)

(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):

 

 

 

2021

 

 

2020

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

300

 

 

 

1,000

 

 

 

$

300

 

 

$

1,000

 

 

For 2022, 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 $500 million to these plans in 2022.

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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Service cost

 

$

851

 

 

$

768

 

 

$

689

 

 

$

83

 

 

$

96

 

 

$

94

 

 

$

44

 

 

$

42

 

 

$

35

 

Interest cost

 

 

959

 

 

 

1,000

 

 

 

951

 

 

 

43

 

 

 

43

 

 

 

49

 

 

 

39

 

 

 

44

 

 

 

40

 

Expected return on plan assets

 

 

(1,786

)

 

 

(1,601

)

 

 

(1,505

)

 

 

(52

)

 

 

(51

)

 

 

(46

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service credit

 

 

(8

)

 

 

(105

)

 

 

(118

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial (gains) losses and other

 

 

(1,288

)

 

 

888

 

 

 

3,537

 

 

 

(13

)

 

 

(179

)

 

 

80

 

 

 

125

 

 

 

85

 

 

 

265

 

Net periodic benefit cost

 

$

(1,272

)

 

$

950

 

 

$

3,554

 

 

$

59

 

 

$

(93

)

 

$

175

 

 

$

208

 

 

$

171

 

 

$

340

 

 

Amounts recognized in other comprehensive income were primarily related to amortization of prior service cost in our U.S. Pension Plans of $8 million in 2021 and $105 million in 2020 ($6 million, net of tax, in 2021 and $80 million, net of tax, in 2020).

 

 

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

 

2022

 

$

1,178

 

 

$

55

 

 

$

110

 

2023

 

 

1,246

 

 

 

57

 

 

 

120

 

2024

 

 

1,333

 

 

 

60

 

 

 

129

 

2025

 

 

1,417

 

 

 

65

 

 

 

137

 

2026

 

 

1,505

 

 

 

73

 

 

 

139

 

2027-2031

 

 

8,661

 

 

 

487

 

 

 

541

 

 

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 5.6% during 2022, decreasing to an annual growth rate of 4.0% in 2045 and thereafter.

v3.21.2
Business Segments and Disaggregated Revenue
 12 Months Ended
May 31, 2021
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract]  
Business Segments and Disaggregated Revenue

NOTE 15: 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, small-package ground delivery and freight transportation)

 

FedEx Custom Critical, Inc. (“FedEx Custom Critical”) (time-critical transportation)

FedEx Cross Border Holdings, Inc. (“FedEx Cross Border”) (cross-border e-commerce technology and e-commerce transportation solutions)

 

 

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)

 

Effective March 1, 2020, the results of FedEx Custom Critical are included in the FedEx Express segment prospectively as the impact to prior periods was not material. This change was made to reflect our internal management reporting structure.

Effective June 1, 2020, the results of FedEx Cross Border are included in the FedEx Express segment prospectively as the impact to prior periods was not material. This change was made to reflect our internal management reporting structure.

FedEx Services Segment

The FedEx Services segment operates combined sales, marketing, administrative and information-technology functions in shared services operations for U.S. customers of our major business units and certain back-office support to our operating segments which allows 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 provides direct and indirect support to our operating segments, and we allocate all of the net operating costs of the FedEx Services segment to reflect the full cost of operating our businesses in the results of those segments. 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 operating 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 revenue 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, including certain costs associated with developing our innovate digitally strategic pillar. These costs are not allocated to the other business segments.

Also included in Corporate and other are the FedEx Office operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage and global ocean and air freight forwarding. Additionally, Corporate and other includes the financial results of ShopRunner beginning December 23, 2020.

Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue 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 revenue, 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

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

42,078

 

 

$

30,496

 

 

$

7,833

 

 

$

32

 

 

$

3,520

 

 

$

83,959

 

2020

 

 

35,513

 

 

 

22,733

 

 

 

7,102

 

 

 

22

 

 

 

3,847

 

 

 

69,217

 

2019

 

 

37,331

 

 

 

20,522

 

 

 

7,582

 

 

 

22

 

 

 

4,236

 

 

 

69,693

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

1,946

 

 

$

843

 

 

$

417

 

 

$

462

 

 

$

125

 

 

$

3,793

 

2020

 

 

1,894

 

 

 

789

 

 

 

381

 

 

 

413

 

 

 

138

 

 

 

3,615

 

2019

 

 

1,801

 

 

 

728

 

 

 

332

 

 

 

355

 

 

 

137

 

 

 

3,353

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021(1)

 

$

2,810

 

 

$

3,193

 

 

$

1,005

 

 

$

—

 

 

$

(1,151

)

 

$

5,857

 

2020(2)

 

 

996

 

 

 

2,014

 

 

 

580

 

 

 

—

 

 

 

(1,173

)

 

 

2,417

 

2019(3)

 

 

2,176

 

 

 

2,663

 

 

 

615

 

 

 

—

 

 

 

(988

)

 

 

4,466

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

46,356

 

 

$

29,134

 

 

$

7,371

 

 

$

8,639

 

 

$

(8,723

)

 

$

82,777

 

2020

 

 

41,252

 

 

 

24,700

 

 

 

6,434

 

 

 

7,285

 

 

 

(6,134

)

 

 

73,537

 

2019

 

 

33,247

 

 

 

17,561

 

 

 

4,736

 

 

 

6,061

 

 

 

(7,202

)

 

 

54,403

 

 

(1)

Includes TNT Express integration expenses of $210 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.

(2)

Includes TNT Express integration expenses of $270 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes noncash goodwill and other asset impairment charges of $435 million primarily related to goodwill impairment at FedEx Office and from the decision to permanently retire certain aircraft and related engines at FedEx Express.

(3)

Includes TNT Express integration expenses (including 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 included in “Corporate, other and eliminations” and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(4)

Segment assets include intercompany receivables.

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

 

2021

 

$

3,503

 

 

 

$

1,446

 

 

$

320

 

 

$

512

 

 

$

103

 

 

$

5,884

 

2020

 

 

3,560

 

 

 

 

1,083

 

 

 

539

 

 

 

527

 

 

 

159

 

 

 

5,868

 

2019

 

 

3,550

 

 

 

 

808

 

 

 

544

 

 

 

440

 

 

 

148

 

 

 

5,490

 

 

 

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

 

 

 

2021

 

 

2020

 

 

2019(1)

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

8,116

 

 

$

7,234

 

 

$

7,663

 

U.S. overnight envelope

 

 

1,791

 

 

 

1,776

 

 

 

1,829

 

U.S. deferred

 

 

4,984

 

 

 

4,038

 

 

 

4,225

 

Total U.S. domestic package revenue

 

 

14,891

 

 

 

13,048

 

 

 

13,717

 

International priority

 

 

10,317

 

 

 

7,354

 

 

 

7,405

 

International economy

 

 

2,632

 

 

 

3,082

 

 

 

3,446

 

Total international export package revenue

 

 

12,949

 

 

 

10,436

 

 

 

10,851

 

International domestic(2)

 

 

4,640

 

 

 

4,179

 

 

 

4,540

 

Total package revenue

 

 

32,480

 

 

 

27,663

 

 

 

29,108

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

3,325

 

 

 

2,998

 

 

 

3,025

 

International priority

 

 

3,030

 

 

 

1,915

 

 

 

2,070

 

International economy

 

 

1,582

 

 

 

1,930

 

 

 

2,123

 

International airfreight

 

 

245

 

 

 

270

 

 

 

314

 

Total freight revenue

 

 

8,182

 

 

 

7,113

 

 

 

7,532

 

Other(3)

 

 

1,416

 

 

 

737

 

 

 

691

 

Total FedEx Express segment

 

 

42,078

 

 

 

35,513

 

 

 

37,331

 

FedEx Ground segment

 

 

30,496

 

 

 

22,733

 

 

 

20,522

 

FedEx Freight segment

 

 

7,833

 

 

 

7,102

 

 

 

7,582

 

FedEx Services segment

 

 

32

 

 

 

22

 

 

 

22

 

Other and eliminations(4)

 

 

3,520

 

 

 

3,847

 

 

 

4,236

 

 

 

$

83,959

 

 

$

69,217

 

 

$

69,693

 

GEOGRAPHICAL INFORMATION(5)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

58,792

 

 

$

48,404

 

 

$

47,584

 

International:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

23,085

 

 

 

19,177

 

 

 

20,424

 

FedEx Ground segment

 

 

735

 

 

 

479

 

 

 

467

 

FedEx Freight segment

 

 

190

 

 

 

192

 

 

 

207

 

FedEx Services segment

 

 

1

 

 

 

1

 

 

 

1

 

Other

 

 

1,156

 

 

 

964

 

 

 

1,010

 

Total international revenue

 

 

25,167

 

 

 

20,813

 

 

 

22,109

 

 

 

$

83,959

 

 

$

69,217

 

 

$

69,693

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

49,407

 

 

$

45,691

 

 

$

33,189

 

International

 

 

12,790

 

 

 

11,463

 

 

 

8,128

 

 

 

$

62,197

 

 

$

57,154

 

 

$

41,317

 

 

(1)

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

(2)

International domestic revenue relates to our intra-country operations.

(3)

Includes the operations of FedEx Custom Critical beginning March 1, 2020 and FedEx Cross Border beginning June 1, 2020.

(4)

Includes the FedEx Office and FedEx Logistics operating segments, as well as the financial results of ShopRunner beginning December 23, 2020.

(5)

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.

v3.21.2
Supplemental Cash Flow Information
 12 Months Ended
May 31, 2021
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

NOTE 16: SUPPLEMENTAL CASH FLOW INFORMATION

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

 

 

 

2021

 

 

2020

 

 

2019

 

Cash payments for:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

819

 

 

$

639

 

 

$

617

 

Income taxes

 

$

1,374

 

 

$

389

 

 

$

407

 

Income tax refunds received

 

 

(55

)

 

 

(353

)

 

 

(36

)

Cash tax payments, net

 

$

1,319

 

 

$

36

 

 

$

371

 

 
v3.21.2
Guarantees and Indemnifications
 12 Months Ended
May 31, 2021
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications

NOTE 17: 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 sales and 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.

v3.21.2
Commitments
 12 Months Ended
May 31, 2021
Commitments [Abstract]  
Commitments

NOTE 18: COMMITMENTS

Annual purchase commitments under various contracts as of May 31, 2021 were as follows (in millions):

 

 

 

Aircraft and

Aircraft Related

 

 

Other(1)

 

 

Total

 

2022

 

$

1,898

 

 

$

1,025

 

 

$

2,923

 

2023

 

 

2,567

 

 

 

711

 

 

 

3,278

 

2024

 

 

1,017

 

 

 

512

 

 

 

1,529

 

2025

 

 

479

 

 

 

404

 

 

 

883

 

2026

 

 

432

 

 

 

347

 

 

 

779

 

Thereafter

 

 

2,325

 

 

 

252

 

 

 

2,577

 

Total

 

$

8,718

 

 

$

3,251

 

 

$

11,969

 

(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, 2021, our obligation to purchase 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. 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 Boeing 767-300 Freighter (“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.

As of May 31, 2021, we had $948 million 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 accompanying 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, 2021, with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2022

 

 

9

 

 

 

9

 

 

 

13

 

 

 

4

 

 

 

35

 

2023

 

 

12

 

 

 

6

 

 

 

13

 

 

 

2

 

 

 

33

 

2024

 

 

12

 

 

 

6

 

 

 

4

 

 

 

4

 

 

 

26

 

2025

 

 

12

 

 

 

6

 

 

 

—

 

 

 

2

 

 

 

20

 

2026

 

 

5

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

6

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

50

 

 

 

28

 

 

 

30

 

 

 

12

 

 

 

120

 

 

On June 22, 2021, FedEx Express exercised options to purchase an additional 20 B767F aircraft, ten of which will be delivered in 2024 and ten of which will be delivered in 2025.

v3.21.2
Contingencies
 12 Months Ended
May 31, 2021
Loss Contingency [Abstract]  
Contingencies

NOTE 19: CONTINGENCIES

 

Service Provider Lawsuits. FedEx Ground is defending lawsuits in which it is alleged that FedEx Ground should be treated as a joint employer of 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 these matters could, among other things, entitle 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 FedEx Ground is not an employer or joint employer of the drivers of these independent businesses.

Derivative Lawsuit Related to New York Cigarette Litigation. On October 3, 2019, FedEx and certain present and former FedEx directors and officers were named as defendants in a stockholder derivative lawsuit filed in the Delaware Court of Chancery. The complaint alleges the defendants breached their fiduciary duties in connection with the activities alleged in lawsuits filed by the City of New York and the State of New York against FedEx Ground in December 2013 and November 2014 and against FedEx Ground and FedEx Freight in July 2017. The underlying lawsuits related to the alleged shipment of cigarettes to New York residents in contravention of several statutes, as well as common law nuisance claims, and were dismissed by the court in December 2018 following entry into a final settlement agreement for approximately $35 million. The settlement did not include any admission of liability by FedEx Ground or FedEx Freight. In addition to the settlement amount, we recognized approximately $10 million for certain attorney’s fees in connection with the underlying lawsuits. On June 28, 2021, the stockholder derivative lawsuit was dismissed with prejudice. Any appeal of the dismissal must be made by July 28, 2021.

 

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, as well as lawsuits containing allegations that FedEx and its subsidiaries are responsible for third-party losses related to vehicle accidents that could exceed our insurance coverage for such losses. 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.

 

Environmental Matters. SEC regulations require us to disclose certain information about proceedings arising under federal, state, or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, FedEx uses a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. Applying this threshold, there are no environmental matters required to be disclosed for this period.
v3.21.2
Related Party Transactions
 12 Months Ended
May 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 20: RELATED PARTY TRANSACTIONS

During 2021, our Chairman of the Board and Chief Executive Officer, Frederick W. Smith, sold his approximate 10% ownership interest in the Washington, D.C. National Football League professional football team, and Mr. Smith is no longer 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.”

v3.21.2
Valuation and Qualifying Accounts
 12 Months Ended
May 31, 2021
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, 2021, 2020 AND 2019

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

175

 

 

$

577

 

 

$

—

 

 

$

394

 

(a)

$

358

 

2020

 

 

121

 

 

 

442

 

 

 

—

 

 

 

388

 

(a)

 

175

 

2019

 

 

199

 

 

 

295

 

 

 

—

 

 

 

373

 

(a)

 

121

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

215

 

 

$

—

 

 

$

1,892

 

(b)

$

1,723

 

(c)

$

384

 

2020

 

 

179

 

 

 

—

 

 

 

1,286

 

(b)

 

1,250

 

(c)

 

215

 

2019

 

 

202

 

 

 

—

 

 

 

1,192

 

(b)

 

1,215

 

(c)

 

179

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

335

 

 

$

38

 

 

$

—

 

 

$

24

 

 

$

349

 

2020

 

 

335

 

 

 

33

 

 

 

—

 

 

 

33

 

 

 

335

 

2019

 

 

268

 

 

 

28

 

 

 

75

 

 

 

36

 

 

 

335

 

(a)

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

(b)

Principally charged against revenue.

(c)

Service failures, rebills and other.

v3.21.2
Description of Business Segments and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
May 31, 2021
Accounting Policies [Abstract]  
Description of Business Segments DESCRIPTION OF BUSINESS SEGMENTS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating collaboratively and innovating digitally, 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 operating segments.
Fiscal Years FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2021 or ended May 31 of the year referenced.
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.
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, primarily transportation services. Substantially all 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. Revenue, including ancillary or accessorial fees and reductions for estimated customer incentives, is recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our FedEx 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”) 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 contracts. 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 distinct.

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 accompanying 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 shipments, 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 shipments totaled $715 million and $563 million at May 31, 2021 and May 31, 2020, respectively. Contract assets net of deferred unearned revenue were $572 million and $456 million at May 31, 2021 and May 31, 2020, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $9 million and $10 million at May 31, 2021 and May 31, 2020, 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 and duties, 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 15 for disclosure of disaggregated revenue 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 $428 million in 2021, $427 million in 2020 and $468 million in 2019.
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, including implementation of cloud computing service arrangements. 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

 

2021

 

 

2020

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

14,812

 

 

$

13,448

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,307

 

 

 

2,478

 

Package handling and ground support equipment

 

3 to 30 years

 

 

5,269

 

 

 

4,499

 

Information technology

 

2 to 10 years

 

 

1,863

 

 

 

1,795

 

Vehicles and trailers

 

3 to 15 years

 

 

4,033

 

 

 

4,345

 

Facilities and other

 

2 to 40 years

 

 

7,468

 

 

 

7,043

 

 

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 $3.8 billion in 2021, $3.6 billion in 2020 and $3.4 billion in 2019. Depreciation and amortization expense includes amortization of assets under finance leases.

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 $68 million in 2021, $54 million in 2020 and $64 million in 2019.
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 so 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.

During 2020, we made the decision to permanently retire from service 10 Airbus A310-300 aircraft and 12 related engines at FedEx Express to align with the needs of the U.S. domestic network and modernize its aircraft fleet. As a consequence of this decision, we recognized noncash impairment charges of $66 million ($50 million, net of tax, or $0.19 per diluted share) in the FedEx Express segment in 2020.

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 and remaining life 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, 2021, we had nine aircraft temporarily idled. These aircraft have been idled for an average of 17 months and are expected to return to revenue service.
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. See Note 5 for additional information.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 1 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. See Note 5 for additional information.

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 estimate 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. Only service cost is recognized in segment level operating results.
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 record the taxes for global intangible low-taxed income as a period cost.

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, property and cargo loss, 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. Claims costs are recognized on a gross basis and a receivable is recorded for amounts covered by third party insurance. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

Leases

LEASES. We lease certain facilities, aircraft, equipment and vehicles under operating and finance leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings.

Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets.

The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee.

For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index-based rate increases, as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 8 for additional information.
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 hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive 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 hedge for any period presented. As of May 31, 2021, we designated €210 million of debt as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of May 31, 2021, the hedge remains effective.

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 Accumulated Other Comprehensive Income (“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 January 2021, FedEx Express announced a workforce reduction plan in Europe as it nears the completion of the network integration of TNT Express. The plan will impact between 5,500 and 6,300 employees in Europe across operational teams and back-office functions. The execution of the plan is subject to a works council consultation process that will occur over an 18-month period in accordance with local country processes and regulations.

We incurred costs during 2021 of $116 million ($90 million, net of tax, or $0.33 per diluted share) associated with our business realignment activities. These costs are related to certain employee severance arrangements. Approximately $15 million was paid under this program in 2021. We expect the pre-tax cost of our business realignment activities to range from $300 million to $575 million through fiscal 2023. The actual amount and timing of business realignment costs and related cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans.

During 2019, we conducted a program to offer voluntary cash buyouts to eligible U.S.-based employees in certain staff functions. As a result of this program, approximately 1,500 employees left the company. Costs of the benefits provided under the U.S.-based voluntary employee buyout program of $320 million were recognized in 2019 when eligible employees accepted their offers, and included approximately $50 million of costs associated with funding to healthcare reimbursement accounts. Severance payments under this program were made at the time of departure and totaled approximately $50 million in 2020 and $220 million in 2019.
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 revenue 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) that rely on projections of future cash flows; and purchase price allocations.
v3.21.2
Description of Business Segments and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2021
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

 

2021

 

 

2020

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

14,812

 

 

$

13,448

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,307

 

 

 

2,478

 

Package handling and ground support equipment

 

3 to 30 years

 

 

5,269

 

 

 

4,499

 

Information technology

 

2 to 10 years

 

 

1,863

 

 

 

1,795

 

Vehicles and trailers

 

3 to 15 years

 

 

4,033

 

 

 

4,345

 

Facilities and other

 

2 to 40 years

 

 

7,468

 

 

 

7,043

 
v3.21.2
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
May 31, 2021
Goodwill And Intangible Assets Disclosure [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

 

 

Corporate, Other and Eliminations

 

 

Total

 

Goodwill at May 31, 2019

 

$

5,016

 

 

$

840

 

 

$

767

 

 

$

1,945

 

 

$

8,568

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,551

)

 

 

(1,684

)

Balance as of May 31, 2019

 

 

5,016

 

 

 

840

 

 

 

634

 

 

 

394

 

 

 

6,884

 

Impairment charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(358

)

 

 

(358

)

Other(1)

 

 

(147

)

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(154

)

Balance as of May 31, 2020

 

 

4,869

 

 

 

840

 

 

 

634

 

 

 

29

 

 

 

6,372

 

Goodwill acquired(2)

 

 

18

 

 

 

103

 

 

 

—

 

 

 

40

 

 

 

161

 

Other(1)

 

 

471

 

 

 

—

 

 

 

—

 

 

 

(12

)

 

 

459

 

Balance as of May 31, 2021

 

$

5,358

 

 

$

943

 

 

$

634

 

 

$

57

 

 

$

6,992

 

Accumulated goodwill impairment charges

   as of May 31, 2021

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,909

)

 

$

(2,042

)

 

(1)

Primarily currency translation adjustments and purchase price allocation-related adjustments.

(2)

Goodwill acquired relates to the acquisition of ShopRunner. See Note 4 for more information.

Schedule of Identifiable Intangible Assets The summary of our intangible assets and related accumulated amortization at May 31, 2021 and 2020 is as follows (in millions):

 

 

 

2021

 

 

2020

 

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Book

Value

 

Customer relationships

 

$

591

 

 

$

(299

)

 

$

292

 

 

$

641

 

 

$

(327

)

 

$

314

 

Technology

 

 

65

 

 

 

(35

)

 

 

30

 

 

 

65

 

 

 

(57

)

 

 

8

 

Trademarks and other

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

132

 

 

 

(132

)

 

 

—

 

Total

 

$

657

 

 

$

(335

)

 

$

322

 

 

$

838

 

 

$

(516

)

 

$

322

 

 
Schedule of Finite Lived Intangible Assets Future Amortization Expense

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

 

2022

$

52

 

2023

 

49

 

2024

 

48

 

2025

 

47

 

2026

 

46

 
v3.21.2
Selected Current Liabilities (Tables)
 12 Months Ended
May 31, 2021
Selected Current Liabilities Tables [Abstract]  
Components of Selected Current Liability Captions

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

 

 

 

2021

 

 

2020

 

Accrued Salaries and Employee Benefits

 

 

 

 

 

 

 

 

Salaries

 

$

626

 

 

$

436

 

Employee benefits, including variable compensation

 

 

1,350

 

 

 

319

 

Compensated absences

 

 

927

 

 

 

814

 

 

 

$

2,903

 

 

$

1,569

 

Accrued Expenses

 

 

 

 

 

 

 

 

Self-insurance accruals

 

$

1,535

 

 

$

1,223

 

Taxes other than income taxes

 

 

637

 

 

 

417

 

Other

 

 

2,390

 

 

 

1,892

 

 

 

$

4,562

 

 

$

3,532

 
v3.21.2
Long Term Debt and Other Financing Arrangements (Tables)
 12 Months Ended
May 31, 2021
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, 2021, are as follows (in millions):

 

 

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

Interest Rate%

 

 

Maturity

 

 

 

 

 

 

 

 

Senior secured debt:

 

 

1.875

 

 

2034

 

$

932

 

 

$

—

 

Senior unsecured debt:

 

 

3.40

 

 

2022

 

 

—

 

 

 

498

 

 

 

2.625-2.70

 

 

2023

 

 

—

 

 

 

748

 

 

 

 

4.00

 

 

2024

 

 

—

 

 

 

747

 

 

 

3.20-3.80

 

 

2025

 

 

—

 

 

 

1,687

 

 

 

 

3.25

 

 

2026

 

 

746

 

 

 

745

 

 

 

 

3.30

 

 

2027

 

 

—

 

 

 

446

 

 

 

 

3.40

 

 

2028

 

 

496

 

 

 

496

 

 

 

 

4.20

 

 

2029

 

 

397

 

 

 

397

 

 

 

3.10-4.25

 

 

2030

 

 

1,733

 

 

 

1,732

 

 

 

 

2.40

 

 

2031

 

 

989

 

 

 

—

 

 

 

 

4.90

 

 

2034

 

 

496

 

 

 

495

 

 

 

 

3.90

 

 

2035

 

 

494

 

 

 

494

 

 

 

 

3.25

 

 

2041

 

 

739

 

 

 

—

 

 

 

3.875-4.10

 

 

2043

 

 

985

 

 

 

984

 

 

 

 

5.10

 

 

2044

 

 

742

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

641

 

 

 

4.55-4.75

 

 

2046

 

 

2,461

 

 

 

2,461

 

 

 

 

4.40

 

 

2047

 

 

736

 

 

 

735

 

 

 

 

4.05

 

 

2048

 

 

986

 

 

 

986

 

 

 

 

4.95

 

 

2049

 

 

836

 

 

 

835

 

 

 

 

5.25

 

 

2050

 

 

1,226

 

 

 

1,225

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

 

0.70

 

 

2022

 

 

—

 

 

 

695

 

 

 

 

1.00

 

 

2023

 

 

—

 

 

 

815

 

 

 

 

0.45

 

 

2026

 

 

607

 

 

 

541

 

 

 

 

1.625

 

 

2027

 

 

1,516

 

 

 

1,351

 

 

 

 

0.45

 

 

2029

 

 

725

 

 

 

—

 

 

 

 

1.30

 

 

2032

 

 

604

 

 

 

539

 

 

 

 

0.95

 

 

2033

 

 

784

 

 

 

—

 

Total senior unsecured debt

 

 

 

 

 

 

 

 

19,422

 

 

 

21,518

 

Finance lease obligations

 

 

 

 

 

 

 

 

525

 

 

 

485

 

 

 

 

 

 

 

 

 

 

20,879

 

 

 

22,003

 

Less current portion

 

 

 

 

 

 

 

 

146

 

 

 

51

 

 

 

 

 

 

 

 

 

$

20,733

 

 

$

21,952

 
v3.21.2
Leases (Tables)
 12 Months Ended
May 31, 2021
Leases [Abstract]  
Summary of Components of Net Lease Cost

The following table is a summary of the components of net lease cost for the period ended May 31 (in millions):

 

 

 

2021

 

 

2020

 

 

Operating lease cost

 

$

2,848

 

 

$

2,668

 

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

     Amortization of right-of-use assets

 

 

23

 

 

 

18

 

 

     Interest on lease liabilities

 

 

17

 

 

 

12

 

 

Total finance lease cost

 

 

40

 

 

 

30

 

 

Short-term lease cost

 

 

387

 

 

 

197

 

 

Variable lease cost

 

 

1,318

 

 

 

1,160

 

 

Net lease cost

 

$

4,593

 

 

$

4,055

 

 
Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

 

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

     Operating cash flows paid for operating leases

 

$

2,750

 

 

$

2,608

 

     Operating cash flows paid for interest portion of finance leases

 

 

16

 

 

 

14

 

     Financing cash flows paid for principal portion of finance leases

 

 

75

 

 

 

84

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

3,703

 

 

$

1,915

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

126

 

 

$

484

 
Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

 

 

 

2021

 

 

2020

 

Operating leases:

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

$

15,383

 

 

$

13,917

 

 

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

 

2,208

 

 

 

1,923

 

Operating lease liabilities

 

 

13,375

 

 

 

12,195

 

    Total operating lease liabilities

 

$

15,583

 

 

$

14,118

 

 

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

 

 

Net property and equipment

 

$

504

 

 

$

480

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

96

 

 

 

51

 

Long-term debt, less current portion

 

 

429

 

 

 

434

 

    Total finance lease liabilities

 

$

525

 

 

$

485

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

 

 

 

 

 

 

 

Operating leases

 

 

9.9

 

 

 

9.9

 

Finance leases

 

 

30.1

 

 

 

32.0

 

 

 

 

 

 

 

 

 

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

Operating leases

 

 

2.94

%

 

 

3.19

%

Finance leases

 

 

3.43

%

 

 

3.58

%

 

 
Summary of Future Minimum Lease Payments, Operating and Finance Leases

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at May 31, 2021 is as follows (in millions):

 

 

 

Aircraft

and Related

Equipment

 

 

Facilities

and Other

 

 

Total

Operating

Leases

 

 

Finance Leases

 

 

Total Leases

 

2022

 

$

234

 

 

$

2,403

 

 

$

2,637

 

 

$

19

 

 

$

2,656

 

2023

 

 

198

 

 

 

2,255

 

 

 

2,453

 

 

 

106

 

 

 

2,559

 

2024

 

 

102

 

 

 

1,986

 

 

 

2,088

 

 

 

24

 

 

 

2,112

 

2025

 

 

69

 

 

 

1,739

 

 

 

1,808

 

 

 

24

 

 

 

1,832

 

2026

 

 

61

 

 

 

1,516

 

 

 

1,577

 

 

 

23

 

 

 

1,600

 

Thereafter

 

 

184

 

 

 

7,358

 

 

 

7,542

 

 

 

698

 

 

 

8,240

 

Total lease payments

 

 

848

 

 

 

17,257

 

 

 

18,105

 

 

 

894

 

 

 

18,999

 

Less imputed interest

 

 

(66

)

 

 

(2,456

)

 

 

(2,522

)

 

 

(369

)

 

 

(2,891

)

Present value of lease liability

 

$

782

 

 

$

14,801

 

 

$

15,583

 

 

$

525

 

 

$

16,108

 
v3.21.2
Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
May 31, 2021
Accumulated Other Comprehensive Income Loss Tables [Abstract]  
Schedule of Changes in 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):

 

 

 

2021

 

 

2020

 

 

2019

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,207

)

 

$

(954

)

 

$

(759

)

Translation adjustments

 

 

422

 

 

 

(254

)

 

 

(195

)

Reclassification to retained earnings due to the adoption of ASU 2018-02

 

 

—

 

 

 

1

 

 

 

—

 

Balance at end of period

 

 

(785

)

 

 

(1,207

)

 

 

(954

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

60

 

 

 

89

 

 

 

181

 

Prior service cost (credit) arising during period

 

 

—

 

 

 

3

 

 

 

—

 

Reclassifications from AOCI

 

 

(7

)

 

 

(82

)

 

 

(92

)

Reclassification to retained earnings due to the adoption of ASU 2018-02

 

 

—

 

 

 

50

 

 

 

—

 

Balance at end of period

 

 

53

 

 

 

60

 

 

 

89

 

Accumulated other comprehensive loss at end of period

 

$

(732

)

 

$

(1,147

)

 

$

(865

)

 
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

 

 

2021

 

 

2020

 

 

2019

 

 

 

Amortization of retirement plans prior service

   credits, before tax

 

$

10

 

 

$

107

 

 

$

120

 

 

Other retirement plans income (expense)

Income tax benefit

 

 

(3

)

 

 

(25

)

 

 

(28

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

7

 

 

$

82

 

 

$

92

 

 

Net income
v3.21.2
Stock-Based Compensation (Tables)
 12 Months Ended
May 31, 2021
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):

 

 

 

2021

 

 

2020

 

 

2019

 

Stock-based compensation expense

 

$

200

 

 

$

168

 

 

$

174

 
Schedule of Stock Based Compensation Key Assumptions for Valuation The following table includes the weighted-average Black-Scholes value per share 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:

 

 

 

2021

 

 

2020

 

 

2019

 

Weighted-average Black-Scholes value per share

 

$

44.11

 

 

$

33.97

 

 

$

61.42

 

Intrinsic value of options exercised

 

$

593

 

 

$

44

 

 

$

122

 

Black-Scholes Assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.4 years

 

 

6.4 years

 

Expected volatility

 

 

30

%

 

 

23

%

 

 

21

%

Risk-free interest rate

 

 

1.32

%

 

 

1.91

%

 

 

2.94

%

Dividend yield

 

 

1.710

%

 

 

1.630

%

 

 

0.935

%
Schedule of Stock Option Activity

The following table summarizes information regarding stock option activity for the year ended May 31, 2021:

 

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-

Average

Exercise

Price

 

 

Weighted-

Average

Remaining

Contractual

Term

 

 

Aggregate

Intrinsic Value

(in millions)(1)

 

Outstanding at June 1, 2020

 

 

16,124,745

 

 

$

167.79

 

 

 

 

 

 

 

 

 

Granted

 

 

4,717,412

 

 

$

168.73

 

 

 

 

 

 

 

 

 

Exercised

 

 

(5,063,165

)

 

 

146.10

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(453,495

)

 

 

168.99

 

 

 

 

 

 

 

 

 

Outstanding at May 31, 2021

 

 

15,325,497

 

 

$

175.19

 

 

 

6.8

 

 

$

2,139

 

Exercisable

 

 

7,054,806

 

 

$

173.26

 

 

 

4.9

 

 

$

999

 

Expected to vest

 

 

7,676,476

 

 

$

176.85

 

 

 

8.5

 

 

$

1,059

 

Available for future grants

 

 

12,233,805

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only presented for options with market value at May 31, 2021 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, 2021:

 

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-

Average

Grant Date

Fair Value

 

Unvested at June 1, 2020

 

 

371,690

 

 

$

192.19

 

Granted

 

 

335,004

 

 

$

155.19

 

Vested

 

 

(167,767

)

 

 

188.62

 

Forfeited

 

 

(1,646

)

 

 

221.09

 

Unvested at May 31, 2021

 

 

537,281

 

 

$

170.16

 
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)

 

2021

 

 

2,492,039

 

 

$

115

 

2020

 

 

2,073,310

 

 

$

99

 

2019

 

 

2,249,301

 

 

$

115

 
v3.21.2
Computation of Earnings Per Share (Tables)
 12 Months Ended
May 31, 2021
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):

 

 

 

2021

 

 

2020

 

 

2019

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

5,220

 

 

$

1,284

 

 

$

539

 

Weighted-average common shares

 

 

264

 

 

 

261

 

 

 

262

 

Basic earnings per common share

 

$

19.79

 

 

$

4.92

 

 

$

2.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

5,221

 

 

$

1,284

 

 

$

539

 

Weighted-average common shares

 

 

264

 

 

 

261

 

 

 

262

 

Dilutive effect of share-based awards

 

 

4

 

 

 

1

 

 

 

3

 

Weighted-average diluted shares

 

 

268

 

 

 

262

 

 

 

265

 

Diluted earnings per common share

 

$

19.45

 

 

$

4.90

 

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

3.5

 

 

 

11.7

 

 

 

5.4

 

 

(1)

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

 
v3.21.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2021
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):

 

 

 

2021

 

 

2020

 

 

2019

 

Current provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

199

 

 

$

(230

)

 

$

(107

)

State and local

 

 

158

 

 

 

67

 

 

 

64

 

Foreign

 

 

284

 

 

 

198

 

 

 

243

 

 

 

 

641

 

 

 

35

 

 

 

200

 

Deferred provision (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

667

 

 

 

475

 

 

 

(61

)

State and local

 

 

70

 

 

 

1

 

 

 

(7

)

Foreign

 

 

65

 

 

 

(128

)

 

 

(17

)

 

 

 

802

 

 

 

348

 

 

 

(85

)

 

 

$

1,443

 

 

$

383

 

 

$

115

 

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

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax to income before income taxes for the years ended May 31 is as follows (dollars in millions):

 

 

2021

 

 

2020

 

 

2019

 

Taxes computed at federal statutory rate

 

$

1,401

 

 

$

350

 

 

$

138

 

(Decreases) increases in income tax from:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from U.S. tax loss carryback to prior years

 

 

(279

)

 

 

(71

)

 

 

—

 

State and local income taxes, net of federal benefit

 

 

179

 

 

 

53

 

 

 

44

 

Foreign operations

 

 

138

 

 

 

38

 

 

 

(1

)

Benefits from share-based payments

 

 

(69

)

 

 

(5

)

 

 

(18

)

Uncertain tax positions

 

 

65

 

 

 

(14

)

 

 

8

 

Foreign tax rate enactments

 

 

(61

)

 

 

(10

)

 

 

50

 

Non-deductible expenses

 

 

53

 

 

 

70

 

 

 

79

 

Valuation allowance

 

 

14

 

 

 

(129

)

 

 

(79

)

Goodwill impairment charges

 

 

—

 

 

 

75

 

 

 

—

 

U.S. deferred tax adjustments related to foreign operations

 

 

—

 

 

 

51

 

 

 

—

 

Tax Cuts and Jobs Act (“TCJA”)

 

 

—

 

 

 

—

 

 

 

(71

)

Foreign tax credits from distributions

 

 

—

 

 

 

—

 

 

 

(8

)

Other, net

 

 

2

 

 

 

(25

)

 

 

(27

)

Provision for income taxes

 

$

1,443

 

 

$

383

 

 

$

115

 

Effective Tax Rate

 

 

21.6

%

 

 

23.0

%

 

 

17.6

%

 
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):

 

 

 

2021

 

 

2020

 

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

 

Deferred Tax

Assets

 

 

Deferred Tax

Liabilities

 

Property, equipment, leases and intangibles

 

$

4,248

 

 

$

9,731

 

 

$

3,819

 

 

$

8,745

 

Employee benefits

 

 

1,178

 

 

 

—

 

 

 

1,448

 

 

 

—

 

Self-insurance accruals

 

 

799

 

 

 

—

 

 

 

647

 

 

 

—

 

Other

 

 

497

 

 

 

52

 

 

 

579

 

 

 

375

 

Net operating loss/credit carryforwards

 

 

934

 

 

 

—

 

 

 

1,262

 

 

 

—

 

Valuation allowances

 

 

(382

)

 

 

—

 

 

 

(450

)

 

 

—

 

 

 

$

7,274

 

 

$

9,783

 

 

$

7,305

 

 

$

9,120

 

 
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):

 

 

 

2021

 

 

2020

 

Noncurrent deferred tax assets(1)

 

$

1,418

 

 

$

1,347

 

Noncurrent deferred tax liabilities

 

 

(3,927

)

 

 

(3,162

)

 

 

$

(2,509

)

 

$

(1,815

)

 

(1)

Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying 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):

 

 

 

2021

 

 

2020

 

 

2019

 

Balance at beginning of year

 

$

129

 

 

$

164

 

 

$

161

 

Increases for tax positions taken in the current year

 

 

3

 

 

 

3

 

 

 

—

 

Increases for tax positions taken in prior years

 

 

69

 

 

 

4

 

 

 

31

 

Decreases for tax positions taken in prior years

 

 

(6

)

 

 

(10

)

 

 

(4

)

Settlements

 

 

(6

)

 

 

(31

)

 

 

(21

)

Changes due to currency translation

 

 

3

 

 

 

(1

)

 

 

(3

)

Balance at end of year

 

$

192

 

 

$

129

 

 

$

164

 

 
v3.21.2
Retirement Plans (Tables)
 12 Months Ended
May 31, 2021
Retirement Plan Tables [Abstract]  
Schedule of Retirement Plan Costs

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

 

 

2021

 

 

2020

 

 

2019

 

Defined benefit pension plans

 

$

88

 

 

$

148

 

 

$

112

 

Defined contribution plans

 

 

685

 

 

 

574

 

 

 

561

 

Postretirement healthcare plans

 

 

83

 

 

 

86

 

 

 

75

 

Retirement plans MTM (gain) loss

 

 

(1,176

)

 

 

794

 

 

 

3,882

 

 

 

$

(320

)

 

$

1,602

 

 

$

4,630

 

 

 

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

 

 

 

2021

 

 

2020

 

 

2019

 

Actual versus expected return on assets

 

$

(1,712

)

 

$

(2,024

)

 

$

476

 

Discount rate change

 

 

(397

)

 

 

2,997

 

 

 

1,780

 

Demographic experience:

 

 

 

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

302

 

 

 

50

 

 

 

739

 

   Change in future assumptions

 

 

685

 

 

 

(229

)

 

 

887

 

Curtailment gain on TNT Netherlands pension plan

 

 

(54

)

 

 

—

 

 

 

—

 

Total MTM (gain) loss

 

$

(1,176

)

 

$

794

 

 

$

3,882

 
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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Discount rate used to determine benefit

   obligation

 

 

3.23

%

 

 

3.14

%

 

 

3.85

%

 

 

1.83

%

 

 

1.79

%

 

 

1.92

%

 

 

2.81

%

 

 

2.95

%

 

 

3.70

%

Discount rate used to determine net periodic

   benefit cost

 

 

3.14

 

 

 

3.85

 

 

 

4.27

 

 

 

1.79

 

 

 

1.92

 

 

 

2.34

 

 

 

2.95

 

 

 

3.70

 

 

 

4.33

 

Rate of increase in future compensation

   levels used to determine benefit obligation

 

 

5.06

 

 

 

5.17

 

 

 

5.10

 

 

 

2.83

 

 

 

2.19

 

 

 

2.27

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation levels

   used to determine net periodic benefit cost

 

 

5.17

 

 

 

5.10

 

 

 

4.43

 

 

 

2.19

 

 

 

2.43

 

 

 

2.22

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.75

 

 

 

6.75

 

 

 

6.75

 

 

 

2.71

 

 

 

3.26

 

 

 

3.12

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net

   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.00

 

 

 

2.20

 

 

 

2.20

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine

   benefit obligation

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.50

 

 

 

2.00

 

 

 

2.20

 

 

 

—

 

 

 

—

 

 

 

—

 
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

 

 

 

2021

 

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

 

$

614

 

 

 

2

%

 

0 - 5%

 

$

36

 

 

$

578

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

4,038

 

 

 

14

 

 

 

 

 

1,644

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

4,664

 

 

 

16

 

 

 

 

 

3,792

 

 

 

2

 

 

 

 

 

Global equities(2)

 

 

1,668

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

967

 

 

 

3

 

 

 

 

 

884

 

 

 

5

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

8,714

 

 

 

29

 

 

 

 

 

 

 

 

 

8,714

 

 

 

 

 

Government(2)

 

 

5,190

 

 

 

17

 

 

 

 

 

 

 

 

 

3,296

 

 

 

 

 

Mortgage-backed and other(2)

 

 

1,065

 

 

 

3

 

 

 

 

 

 

 

 

 

226

 

 

 

 

 

Alternative investments(2)

 

 

2,855

 

 

 

10

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

537

 

Other

 

 

10

 

 

 

—

 

 

 

 

 

(14

)

 

 

(4

)

 

 

 

 

Total U.S. plan assets

 

$

29,785

 

 

 

100

%

 

 

 

$

6,342

 

 

$

12,817

 

 

$

537

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10

 

 

 

1

%

 

 

 

$

10

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

123

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

335

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

434

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

574

 

 

30

 

 

 

 

 

350

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

217

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

189

 

 

9

 

 

 

 

 

19

 

 

$

36

 

 

 

 

 

Total international plan assets

 

$

1,882

 

 

 

100

%

 

 

 

$

379

 

 

$

36

 

 

 

 

 

(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

 

 

 

2020

 

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

 

$

709

 

 

 

3

%

 

0 - 5%

 

$

278

 

 

$

431

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

3,070

 

 

 

11

 

 

 

 

 

1,172

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

3,314

 

 

 

12

 

 

 

 

 

2,738

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

1,350

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

673

 

 

 

3

 

 

 

 

 

673

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

7,983

 

 

 

30

 

 

 

 

 

 

 

 

 

7,983

 

 

 

 

 

Government(2)

 

 

6,928

 

 

 

26

 

 

 

 

 

 

 

 

 

4,652

 

 

 

 

 

Mortgage-backed and other(2)

 

 

634

 

 

 

2

 

 

 

 

 

 

 

 

 

170

 

 

 

 

 

Alternative investments(2)

 

 

2,264

 

 

 

8

 

 

0 - 15

 

 

 

 

 

 

 

 

 

$

416

 

Other

 

 

53

 

 

 

—

 

 

 

 

 

57

 

 

 

(3

)

 

 

 

 

Total U.S. plan assets

 

$

26,978

 

 

 

100

%

 

 

 

$

4,918

 

 

$

13,233

 

 

$

416

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9

 

 

 

1

%

 

 

 

$

9

 

 

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

72

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

218

 

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

342

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

510

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

188

 

 

 

12

 

 

 

 

 

318

 

 

 

 

 

 

 

 

 

Other(2)

 

 

158

 

 

 

10

 

 

 

 

 

13

 

 

$

63

 

 

 

 

 

Total international plan assets

 

$

1,497

 

 

 

100

%

 

 

 

$

340

 

 

$

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

2021

 

 

2020

 

Balance at beginning of year

 

$

416

 

 

$

302

 

Actual return on plan assets:

 

 

 

 

 

 

 

 

Assets held during current year

 

 

41

 

 

 

19

 

Assets sold during the year

 

 

22

 

 

 

16

 

Purchases, sales and settlements

 

 

58

 

 

 

79

 

Balance at end of year

 

$

537

 

 

$

416

 

 

 
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, 2021 and a statement of the funded status as of May 31, 2021 and 2020 (in millions):

 

 

 

U.S. Pension Plans

 

 

International

Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Accumulated Benefit Obligation (“ABO”)

 

$

30,455

 

 

$

29,272

 

 

$

2,417

 

 

$

2,012

 

 

 

 

 

 

 

 

 

Changes in PBO and Accumulated Postretirement

   Benefit Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

30,199

 

 

$

26,554

 

 

$

2,242

 

 

$

2,301

 

 

$

1,314

 

 

$

1,221

 

Service cost

 

 

851

 

 

 

768

 

 

 

83

 

 

 

96

 

 

 

44

 

 

 

42

 

Interest cost

 

 

959

 

 

 

1,000

 

 

 

43

 

 

 

43

 

 

 

39

 

 

 

44

 

Actuarial loss (gain)

 

 

362

 

 

 

2,817

 

 

 

105

 

 

 

(87

)

 

 

125

 

 

 

85

 

Benefits paid

 

 

(948

)

 

 

(940

)

 

 

(53

)

 

 

(41

)

 

 

(112

)

 

 

(127

)

Settlements

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(6

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

202

 

 

 

(64

)

 

 

46

 

 

 

49

 

PBO/APBO at the end of year

 

$

31,423

 

 

$

30,199

 

 

$

2,611

 

 

$

2,242

 

 

$

1,456

 

 

$

1,314

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

26,978

 

 

$

23,320

 

 

$

1,713

 

 

$

1,578

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

3,436

 

 

 

3,530

 

 

 

114

 

 

 

146

 

 

 

—

 

 

 

—

 

Company contributions

 

 

319

 

 

 

1,068

 

 

 

142

 

 

 

86

 

 

 

64

 

 

 

77

 

Benefits paid

 

 

(948

)

 

 

(940

)

 

 

(53

)

 

 

(41

)

 

 

(112

)

 

 

(127

)

Settlements

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(6

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

228

 

 

 

(50

)

 

 

48

 

 

 

50

 

Fair value of plan assets at the end of year

 

$

29,785

 

 

$

26,978

 

 

$

2,133

 

 

$

1,713

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(1,638

)

 

$

(3,221

)

 

$

(478

)

 

$

(529

)

 

$

(1,456

)

 

$

(1,314

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

231

 

 

$

142

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare and

   other benefit obligations

 

 

(41

)

 

 

(38

)

 

 

(18

)

 

 

(17

)

 

 

(110

)

 

 

(104

)

Noncurrent pension, postretirement healthcare

   and other benefit obligations

 

 

(1,597

)

 

 

(3,183

)

 

 

(691

)

 

 

(654

)

 

 

(1,346

)

 

 

(1,210

)

Net amount recognized

 

$

(1,638

)

 

$

(3,221

)

 

$

(478

)

 

$

(529

)

 

$

(1,456

)

 

$

(1,314

)

Amounts Recognized in AOCI and not yet reflected

   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service (credit) cost and other

 

$

(61

)

 

$

(68

)

 

$

(6

)

 

$

(7

)

 

$

—

 

 

$

1

 

 
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

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

31,225

 

 

$

29,785

 

 

$

(1,440

)

Nonqualified

 

 

198

 

 

 

—

 

 

 

(198

)

International Plans

 

 

2,611

 

 

 

2,133

 

 

 

(478

)

Total

 

$

34,034

 

 

$

31,918

 

 

$

(2,116

)

2020

 

 

 

 

 

 

 

 

 

 

 

 

Qualified

 

$

30,004

 

 

$

26,978

 

 

$

(3,026

)

Nonqualified

 

 

195

 

 

 

—

 

 

 

(195

)

International Plans

 

 

2,242

 

 

 

1,713

 

 

 

(529

)

Total

 

$

32,441

 

 

$

28,691

 

 

$

(3,750

)
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

 

 

 

2021

 

 

2020

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

29,785

 

 

$

26,978

 

PBO

 

 

(31,423

)

 

 

(30,199

)

Net funded status

 

$

(1,638

)

 

$

(3,221

)

International Pension Benefits

 

 

 

 

 

 

 

 

Fair value of plan assets

 

$

241

 

 

$

205

 

PBO

 

 

(950

)

 

 

(876

)

Net funded status

 

$

(709

)

 

$

(671

)

 

 

 

ABO Exceeds the Fair Value

of Plan Assets

 

 

 

2021

 

 

2020

 

U.S. Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(29,083

)

 

$

(29,272

)

Fair value of plan assets

 

 

28,383

 

 

 

26,978

 

PBO

 

 

(29,888

)

 

 

(30,199

)

Net funded status

 

$

(1,505

)

 

$

(3,221

)

International Pension Benefits

 

 

 

 

 

 

 

 

ABO(1)

 

$

(722

)

 

$

(637

)

Fair value of plan assets

 

 

206

 

 

 

175

 

PBO

 

 

(908

)

 

 

(840

)

Net funded status

 

$

(702

)

 

$

(665

)

(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):

 

 

2021

 

 

2020

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

300

 

 

 

1,000

 

 

 

$

300

 

 

$

1,000

 

 
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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Service cost

 

$

851

 

 

$

768

 

 

$

689

 

 

$

83

 

 

$

96

 

 

$

94

 

 

$

44

 

 

$

42

 

 

$

35

 

Interest cost

 

 

959

 

 

 

1,000

 

 

 

951

 

 

 

43

 

 

 

43

 

 

 

49

 

 

 

39

 

 

 

44

 

 

 

40

 

Expected return on plan assets

 

 

(1,786

)

 

 

(1,601

)

 

 

(1,505

)

 

 

(52

)

 

 

(51

)

 

 

(46

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service credit

 

 

(8

)

 

 

(105

)

 

 

(118

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial (gains) losses and other

 

 

(1,288

)

 

 

888

 

 

 

3,537

 

 

 

(13

)

 

 

(179

)

 

 

80

 

 

 

125

 

 

 

85

 

 

 

265

 

Net periodic benefit cost

 

$

(1,272

)

 

$

950

 

 

$

3,554

 

 

$

59

 

 

$

(93

)

 

$

175

 

 

$

208

 

 

$

171

 

 

$

340

 

 
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

 

2022

 

$

1,178

 

 

$

55

 

 

$

110

 

2023

 

 

1,246

 

 

 

57

 

 

 

120

 

2024

 

 

1,333

 

 

 

60

 

 

 

129

 

2025

 

 

1,417

 

 

 

65

 

 

 

137

 

2026

 

 

1,505

 

 

 

73

 

 

 

139

 

2027-2031

 

 

8,661

 

 

 

487

 

 

 

541

 
v3.21.2
Business Segments and Disaggregated Revenue (Tables)
 12 Months Ended
May 31, 2021
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract]  
Schedule of Segment Information

The following table provides a reconciliation of reportable segment revenue, 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

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

42,078

 

 

$

30,496

 

 

$

7,833

 

 

$

32

 

 

$

3,520

 

 

$

83,959

 

2020

 

 

35,513

 

 

 

22,733

 

 

 

7,102

 

 

 

22

 

 

 

3,847

 

 

 

69,217

 

2019

 

 

37,331

 

 

 

20,522

 

 

 

7,582

 

 

 

22

 

 

 

4,236

 

 

 

69,693

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

1,946

 

 

$

843

 

 

$

417

 

 

$

462

 

 

$

125

 

 

$

3,793

 

2020

 

 

1,894

 

 

 

789

 

 

 

381

 

 

 

413

 

 

 

138

 

 

 

3,615

 

2019

 

 

1,801

 

 

 

728

 

 

 

332

 

 

 

355

 

 

 

137

 

 

 

3,353

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021(1)

 

$

2,810

 

 

$

3,193

 

 

$

1,005

 

 

$

—

 

 

$

(1,151

)

 

$

5,857

 

2020(2)

 

 

996

 

 

 

2,014

 

 

 

580

 

 

 

—

 

 

 

(1,173

)

 

 

2,417

 

2019(3)

 

 

2,176

 

 

 

2,663

 

 

 

615

 

 

 

—

 

 

 

(988

)

 

 

4,466

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

46,356

 

 

$

29,134

 

 

$

7,371

 

 

$

8,639

 

 

$

(8,723

)

 

$

82,777

 

2020

 

 

41,252

 

 

 

24,700

 

 

 

6,434

 

 

 

7,285

 

 

 

(6,134

)

 

 

73,537

 

2019

 

 

33,247

 

 

 

17,561

 

 

 

4,736

 

 

 

6,061

 

 

 

(7,202

)

 

 

54,403

 

 

(1)

Includes TNT Express integration expenses of $210 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.

(2)

Includes TNT Express integration expenses of $270 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes noncash goodwill and other asset impairment charges of $435 million primarily related to goodwill impairment at FedEx Office and from the decision to permanently retire certain aircraft and related engines at FedEx Express.

(3)

Includes TNT Express integration expenses (including 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 included in “Corporate, other and eliminations” and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.

(4)

Segment assets include intercompany receivables.
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

 

2021

 

$

3,503

 

 

 

$

1,446

 

 

$

320

 

 

$

512

 

 

$

103

 

 

$

5,884

 

2020

 

 

3,560

 

 

 

 

1,083

 

 

 

539

 

 

 

527

 

 

 

159

 

 

 

5,868

 

2019

 

 

3,550

 

 

 

 

808

 

 

 

544

 

 

 

440

 

 

 

148

 

 

 

5,490

 
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):

 

 

 

2021

 

 

2020

 

 

2019(1)

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

8,116

 

 

$

7,234

 

 

$

7,663

 

U.S. overnight envelope

 

 

1,791

 

 

 

1,776

 

 

 

1,829

 

U.S. deferred

 

 

4,984

 

 

 

4,038

 

 

 

4,225

 

Total U.S. domestic package revenue

 

 

14,891

 

 

 

13,048

 

 

 

13,717

 

International priority

 

 

10,317

 

 

 

7,354

 

 

 

7,405

 

International economy

 

 

2,632

 

 

 

3,082

 

 

 

3,446

 

Total international export package revenue

 

 

12,949

 

 

 

10,436

 

 

 

10,851

 

International domestic(2)

 

 

4,640

 

 

 

4,179

 

 

 

4,540

 

Total package revenue

 

 

32,480

 

 

 

27,663

 

 

 

29,108

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

3,325

 

 

 

2,998

 

 

 

3,025

 

International priority

 

 

3,030

 

 

 

1,915

 

 

 

2,070

 

International economy

 

 

1,582

 

 

 

1,930

 

 

 

2,123

 

International airfreight

 

 

245

 

 

 

270

 

 

 

314

 

Total freight revenue

 

 

8,182

 

 

 

7,113

 

 

 

7,532

 

Other(3)

 

 

1,416

 

 

 

737

 

 

 

691

 

Total FedEx Express segment

 

 

42,078

 

 

 

35,513

 

 

 

37,331

 

FedEx Ground segment

 

 

30,496

 

 

 

22,733

 

 

 

20,522

 

FedEx Freight segment

 

 

7,833

 

 

 

7,102

 

 

 

7,582

 

FedEx Services segment

 

 

32

 

 

 

22

 

 

 

22

 

Other and eliminations(4)

 

 

3,520

 

 

 

3,847

 

 

 

4,236

 

 

 

$

83,959

 

 

$

69,217

 

 

$

69,693

 

GEOGRAPHICAL INFORMATION(5)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

58,792

 

 

$

48,404

 

 

$

47,584

 

International:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

23,085

 

 

 

19,177

 

 

 

20,424

 

FedEx Ground segment

 

 

735

 

 

 

479

 

 

 

467

 

FedEx Freight segment

 

 

190

 

 

 

192

 

 

 

207

 

FedEx Services segment

 

 

1

 

 

 

1

 

 

 

1

 

Other

 

 

1,156

 

 

 

964

 

 

 

1,010

 

Total international revenue

 

 

25,167

 

 

 

20,813

 

 

 

22,109

 

 

 

$

83,959

 

 

$

69,217

 

 

$

69,693

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

49,407

 

 

$

45,691

 

 

$

33,189

 

International

 

 

12,790

 

 

 

11,463

 

 

 

8,128

 

 

 

$

62,197

 

 

$

57,154

 

 

$

41,317

 

 

(1)

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

(2)

International domestic revenue relates to our intra-country operations.

(3)

Includes the operations of FedEx Custom Critical beginning March 1, 2020 and FedEx Cross Border beginning June 1, 2020.

(4)

Includes the FedEx Office and FedEx Logistics operating segments, as well as the financial results of ShopRunner beginning December 23, 2020.

(5)

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.

v3.21.2
Supplemental Cash Flow Information (Tables)
 12 Months Ended
May 31, 2021
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):

 

 

 

2021

 

 

2020

 

 

2019

 

Cash payments for:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

819

 

 

$

639

 

 

$

617

 

Income taxes

 

$

1,374

 

 

$

389

 

 

$

407

 

Income tax refunds received

 

 

(55

)

 

 

(353

)

 

 

(36

)

Cash tax payments, net

 

$

1,319

 

 

$

36

 

 

$

371

 
v3.21.2
Commitments (Tables)
 12 Months Ended
May 31, 2021
Commitments Tables [Abstract]  
Schedule of Purchase Commitments

Annual purchase commitments under various contracts as of May 31, 2021 were as follows (in millions):

 

 

 

Aircraft and

Aircraft Related

 

 

Other(1)

 

 

Total

 

2022

 

$

1,898

 

 

$

1,025

 

 

$

2,923

 

2023

 

 

2,567

 

 

 

711

 

 

 

3,278

 

2024

 

 

1,017

 

 

 

512

 

 

 

1,529

 

2025

 

 

479

 

 

 

404

 

 

 

883

 

2026

 

 

432

 

 

 

347

 

 

 

779

 

Thereafter

 

 

2,325

 

 

 

252

 

 

 

2,577

 

Total

 

$

8,718

 

 

$

3,251

 

 

$

11,969

 

(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, 2021, with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2022

 

 

9

 

 

 

9

 

 

 

13

 

 

 

4

 

 

 

35

 

2023

 

 

12

 

 

 

6

 

 

 

13

 

 

 

2

 

 

 

33

 

2024

 

 

12

 

 

 

6

 

 

 

4

 

 

 

4

 

 

 

26

 

2025

 

 

12

 

 

 

6

 

 

 

—

 

 

 

2

 

 

 

20

 

2026

 

 

5

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

6

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

50

 

 

 

28

 

 

 

30

 

 

 

12

 

 

 

120

 

 
v3.21.2
Valuation and Qualifying Accounts (Tables)
 12 Months Ended
May 31, 2021
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, 2021, 2020 AND 2019

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

175

 

 

$

577

 

 

$

—

 

 

$

394

 

(a)

$

358

 

2020

 

 

121

 

 

 

442

 

 

 

—

 

 

 

388

 

(a)

 

175

 

2019

 

 

199

 

 

 

295

 

 

 

—

 

 

 

373

 

(a)

 

121

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

215

 

 

$

—

 

 

$

1,892

 

(b)

$

1,723

 

(c)

$

384

 

2020

 

 

179

 

 

 

—

 

 

 

1,286

 

(b)

 

1,250

 

(c)

 

215

 

2019

 

 

202

 

 

 

—

 

 

 

1,192

 

(b)

 

1,215

 

(c)

 

179

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

$

335

 

 

$

38

 

 

$

—

 

 

$

24

 

 

$

349

 

2020

 

 

335

 

 

 

33

 

 

 

—

 

 

 

33

 

 

 

335

 

2019

 

 

268

 

 

 

28

 

 

 

75

 

 

 

36

 

 

 

335

 

(a)

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

(b)

Principally charged against revenue.

(c)

Service failures, rebills and other.

v3.21.2
Description of Business Segments and Summary of Significant Accounting Policies - Additional Information (Details)
$ / shares in Units, € in Millions
 1 Months Ended 12 Months Ended
Mar. 16, 2021
USD ($)
Jan. 31, 2021
Employee
May 31, 2023
USD ($)
May 31, 2021
USD ($)
air-craft
$ / shares
shares
May 31, 2020
USD ($)
air-craft
$ / shares
shares
May 31, 2019
USD ($)
Employee
$ / shares
shares
May 31, 2021
EUR (€)
air-craft
shares
Jan. 26, 2016
shares
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Gross contract assets related to in-transit shipments       $ 715,000,000 $ 563,000,000      
Contract assets net of deferred unearned revenue       572,000,000 456,000,000      
Contract liabilities related to advance payments from customers       $ 9,000,000 10,000,000      
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       $ 428,000,000 427,000,000 $ 468,000,000    
Depreciable life range for majority of aircraft costs       15 to 30 years        
Depreciation expense, excluding gains and losses on sales of property and equipment       $ 3,793,000,000 3,615,000,000 3,353,000,000    
Interest costs capitalized       $ 68,000,000 $ 54,000,000 $ 64,000,000    
Number of aircraft to be permanently retired from service | air-craft         10      
Number of aircraft engines to be permanently retired from service | air-craft         12      
Noncash impairment charges         $ 66,000,000      
Noncash impairment charges net of tax         $ 50,000,000      
Noncash impairment charges net of tax per diluted share | $ / shares         $ 0.19      
Number of Idle Aircraft | air-craft       9     9  
Number of months aircraft remained idle       an average of 17 months        
Denominated debt as a net investment hedge | €             € 210  
Stock repurchase program number of shares authorized to be repurchased | shares               25,000,000
Stock repurchase program, remaining number of shares authorized to be repurchased | shares       5,100,000     5,100,000  
Number of shares repurchased | shares         20,000.00 6,600,000    
Treasury stock acquired, average cost per share | $ / shares         $ 156.90 $ 222.94    
Payments for repurchase of common stock         $ 3,000,000 $ 1,480,000,000    
Dividends payable, date declared       Jun. 14, 2021        
Dividends payable amount per share | $ / shares       $ 0.75        
Dividends payable, date to be paid       Jul. 12, 2021        
Dividends payable, date of record       Jun. 28, 2021        
Number of employees left or voluntarily leaving | Employee           1,500    
Business realignment costs       $ 116,000,000   $ 320,000,000    
Diluted | $ / shares       $ 19.45 $ 4.90 $ 2.03    
Restructuring plan execution period   18 months            
Business realignment costs, net of tax       $ 90,000,000        
Business realignment costs per diluted share | $ / shares       $ 0.33        
Business employee severance costs paid       $ 15,000,000        
Business Realignment Activities [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Business realignment costs           $ 320,000,000    
Costs associated with funding to healthcare reimbursement accounts           50,000,000    
Business Realignment Activities [Member] | Severance Payments [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Payment of severance cost at departure         $ 50,000,000 $ 220,000,000    
Amended and Restated Five-Year Credit Agreement [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Line Of Credit Facility Maximum Borrowing Capacity $ 2,000,000,000.0              
Amended and Restated 364-Day Credit Agreement [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Line Of Credit Facility Maximum Borrowing Capacity $ 1,500,000,000              
Line of Credit Facility, Term 364 days              
Amendments to Credit Agreements [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Dividends payable amount per share | $ / shares         $ 0.65      
Minimum [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Intangible assets amortization periods       1 year        
Number of employees left or voluntarily leaving | Employee   5,500            
Minimum [Member] | Forecast [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Business realignment costs     $ 300,000,000          
Maximum [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Intangible assets amortization periods       15 years        
Number of employees left or voluntarily leaving | Employee   6,300            
Maximum [Member] | Forecast [Member]                
Organization Consolidation And Presentation Of Financial Statements [Line Items]                
Business realignment costs     $ 575,000,000          
v3.21.2
Description of Business Segments 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, 2021
May 31, 2020
Property Plant And Equipment [Line Items]    
Net Book Value at May 31, $ 35,752 $ 33,608
Wide-body Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 15 to 30 years  
Net Book Value at May 31, $ 14,812 13,448
Narrow-body and Feeder Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 5 to 30 years  
Net Book Value at May 31, $ 2,307 2,478
Package Handling and Ground Support Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 30 years  
Net Book Value at May 31, $ 5,269 4,499
Information Technology [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 2 to 10 years  
Net Book Value at May 31, $ 1,863 1,795
Vehicles And Trailers [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 15 years  
Net Book Value at May 31, $ 4,033 4,345
Facilities and Other Property [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 2 to 40 years  
Net Book Value at May 31, $ 7,468 $ 7,043
v3.21.2
Recent Accounting Guidance - Additional Information (Details)
May 31, 2021
ASU 2016-13  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Change in accounting principle, ASU adopted true
Change in accounting principle, ASU adoption date Jun. 01, 2020
Change in accounting principle, ASU immaterial effect true
ASU 2018-15  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Change in accounting principle, ASU adopted true
Change in accounting principle, ASU adoption date Jun. 01, 2020
Change in accounting principle, ASU immaterial effect true
ASU 2019-12  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Change in accounting principle, ASU adopted true
Change in accounting principle, ASU adoption date Jun. 01, 2020
Change in accounting principle, ASU immaterial effect true
v3.21.2
Credit Losses - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Credit Loss [Abstract]      
Credit losses $ 577 $ 442 $ 295
Allowance for credit losses $ 358 $ 175  
v3.21.2
Business Combinations - Additional Information (Details) - USD ($)
$ in Millions
Dec. 23, 2020
May 01, 2019
FC (Flying Cargo) Express Ltd. [Member]    
Business Acquisition [Line Items]    
Acquisition price   $ 67
ShopRunner, Inc. [Member]    
Business Acquisition [Line Items]    
Acquisition price $ 228  
v3.21.2
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     $ 8,568
Accumulated impairment charges $ (2,042)   (1,684)
Goodwill 6,992 $ 6,372 6,884
Goodwill Roll Forward      
Beginning Goodwill at May 31 6,372 6,884  
Impairment charges 0 (358) 0
Goodwill acquired [1] 161    
Other [2] 459 (154)  
Ending Goodwill at May 31 6,992 6,372 6,884
Accumulated impairment charges (2,042)   (1,684)
Corporate, Other and Eliminations [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     1,945
Accumulated impairment charges (1,909)   (1,551)
Goodwill 57 29 394
Goodwill Roll Forward      
Beginning Goodwill at May 31 29 394  
Impairment charges   (358)  
Goodwill acquired [1] 40    
Other [2] (12) (7)  
Ending Goodwill at May 31 57 29 394
Accumulated impairment charges (1,909)   (1,551)
FedEx Express Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     5,016
Goodwill 5,358 4,869 5,016
Goodwill Roll Forward      
Beginning Goodwill at May 31 4,869 5,016  
Goodwill acquired [1] 18    
Other [2] 471 (147)  
Ending Goodwill at May 31 5,358 4,869 5,016
FedEx Ground Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     840
Goodwill 943 840 840
Goodwill Roll Forward      
Beginning Goodwill at May 31 840 840  
Goodwill acquired [1] 103    
Ending Goodwill at May 31 943 840 840
FedEx Freight Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     767
Accumulated impairment charges (133)   (133)
Goodwill 634 634 634
Goodwill Roll Forward      
Beginning Goodwill at May 31 634 634  
Ending Goodwill at May 31 634 $ 634 634
Accumulated impairment charges $ (133)   $ (133)
[1] Goodwill acquired relates to the acquisition of ShopRunner. See Note 4 for more information.
[2] Primarily currency translation adjustments and purchase price allocation-related adjustments.
v3.21.2
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2020
May 31, 2021
May 31, 2020
May 31, 2019
Goodwill [Line Items]        
Goodwill impairment charges   $ 0 $ 358 $ 0
Intangible assets amortization expense   $ 49 66 $ 82
Corporate, Other and Eliminations [Member]        
Goodwill [Line Items]        
Goodwill impairment charges     358  
Corporate, Other and Eliminations [Member] | Associated with FedEx Office [Member]        
Goodwill [Line Items]        
Goodwill impairment charges $ 348      
Corporate, Other and Eliminations [Member] | Associated with FedEx Office And Print Services [Member]        
Goodwill [Line Items]        
Goodwill impairment charges     $ 358  
v3.21.2
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 657 $ 838
Accumulated Amortization (335) (516)
Net Book Value 322 322
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 591 641
Accumulated Amortization (299) (327)
Net Book Value 292 314
Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 65 65
Accumulated Amortization (35) (57)
Net Book Value 30 8
Trademarks and Other [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1 132
Accumulated Amortization $ (1) $ (132)
v3.21.2
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details)
$ in Millions
May 31, 2021
USD ($)
Finite Lived Intangible Assets Future Amortization Expense Abstract  
2022 $ 52
2023 49
2024 48
2025 47
2026 $ 46
v3.21.2
Selected Current Liabilities - Components of Selected Current Liability Captions (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Accrued Liabilities Current [Abstract]    
Salaries $ 626 $ 436
Employee benefits, including variable compensation 1,350 319
Compensated absences 927 814
Accrued salaries and employee benefits 2,903 1,569
Self-insurance accruals 1,535 1,223
Taxes other than income taxes 637 417
Other 2,390 1,892
Accrued expenses $ 4,562 $ 3,532
v3.21.2
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, 2021
May 31, 2020
Debt Instrument [Line Items]    
Long Term Debt $ 19,422 $ 21,518
Finance lease obligations 525 485
Total Debt and Finance Lease Obligations 20,879 22,003
Less current portion 146 51
LONG-TERM DEBT, LESS CURRENT PORTION 20,733 21,952
Senior Secured Debt Due 2034 1.875% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 932  
Senior Unsecured Debt Due 2022 3.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   498
Senior Unsecured Debt Due 2023 2.625-2.70% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   748
Senior Unsecured Debt Due 2024 4.00% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   747
Senior Unsecured Debt Due 2025 3.20-3.80% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   1,687
Senior Unsecured Debt Due 2026 3.25% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 746 745
Senior Unsecured Debt Due 2027 3.30% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   446
Senior Unsecured Debt Due 2028 3.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 496 496
Senior Unsecured Debt Due 2029 4.20% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 397 397
Senior Unsecured Debt Due 2030 3.10-4.25% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 1,733 1,732
Senior Unsecured Debt Due 2031 2.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 989  
Senior Unsecured Debt Due 2034 4.90% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 496 495
Senior Unsecured Debt Due 2035 3.90% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 494 494
Senior Unsecured Debt Due 2041 3.25% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 739  
Senior Unsecured Debt Due 2043 3.875-4.10% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 985 984
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 641 641
Senior Unsecured Debt Due 2046 4.55-4.75% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 2,461 2,461
Senior Unsecured Debt Due 2047 4.40% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 736 735
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 836 835
Senior Unsecured Debt Due 2050 5.25% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 1,226 1,225
Senior Unsecured Debt Due 2065 4.50% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 246 246
Euro Senior Unsecured Debt Due 2022 0.70% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   695
Euro Senior Unsecured Debt Due 2023 1.00% [Member]    
Debt Instrument [Line Items]    
Long Term Debt   815
Senior Unsecured Debt Due 2098 7.60% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 237 237
Euro Senior Unsecured Debt Due 2026 0.45% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 607 541
Euro Senior Unsecured Debt Due 2027 1.625% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 1,516 1,351
Euro Senior Unsecured Debt Due 2029 0.45% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 725  
Euro Senior Unsecured Debt Due 2032 1.30% [Member]    
Debt Instrument [Line Items]    
Long Term Debt 604 $ 539
Euro Senior Unsecured Debt Due 2033 0.95% [Member]    
Debt Instrument [Line Items]    
Long Term Debt $ 784  
v3.21.2
Long-term Debt and Other Financing Arrangements - Additional Information (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Mar. 16, 2021
USD ($)
Aug. 31, 2020
USD ($)
May 31, 2021
USD ($)
air-craft
May 31, 2021
EUR (€)
May 31, 2021
USD ($)
air-craft
May 31, 2021
EUR (€)
air-craft
Mar. 15, 2021
May 31, 2020
USD ($)
Line Of Credit Facility [Line Items]                
Long-term debt weighted-average interest rate     3.40%   3.40% 3.40%    
Long term debt, including current maturities and exclusive of finance leases fair value     $ 23,100,000,000   $ 23,100,000,000     $ 22,800,000,000
Number of Boeing aircraft | air-craft     19   19 19    
Net book value of Boeing aircraft     $ 1,900,000,000   $ 1,900,000,000      
Letter of credit maximum sublimit amount $ 250,000,000              
Financial Covenant Terms Ratio 350.00%           375.00%  
Financial covenant compliance ratio     197.00%   197.00% 197.00%    
Loss on debt extinguishment         $ 393,000,000      
Senior Unsecured Debt [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount     $ 3,250,000,000   3,250,000,000      
Five-Year Credit Agreement [Member]                
Line Of Credit Facility [Line Items]                
Line Of Credit Facility Maximum Borrowing Capacity $ 2,000,000,000.0              
Line of Credit Facility, Term 5 years              
Line of credit facility, expiration date 2026-03              
Letter of credit outstanding sublimit unused amount     250,000,000   250,000,000      
Credit Agreements [Member]                
Line Of Credit Facility [Line Items]                
Commercial paper outstanding     $ 0   $ 0      
364-Day Credit Agreement [Member]                
Line Of Credit Facility [Line Items]                
Line Of Credit Facility Maximum Borrowing Capacity $ 1,500,000,000              
Line of Credit Facility, Term 364 days              
Line of credit facility, expiration date 2022-03              
1.875% due in February 2034 [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount   $ 970,000,000            
Fixed interest rate   1.875%            
Debt instrument, maturity date   2034-02            
0.45% Fixed-rate Notes Due in May 2029 [Member] | Senior Unsecured Debt [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount | €           € 600,000,000    
Fixed interest rate     0.45%   0.45% 0.45%    
Debt instrument, maturity date     2029-05 2029-05        
0.95% Fixed-rate Notes Due in May 2033 [Member] | Senior Unsecured Debt [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount | €           € 650,000,000    
Fixed interest rate     0.95%   0.95% 0.95%    
Debt instrument, maturity date     2033-05 2033-05        
2.40% Fixed-rate Notes Due in May 2031 [Member] | Senior Unsecured Debt [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount     $ 1,000,000,000.0   $ 1,000,000,000.0      
Fixed interest rate     2.40%   2.40% 2.40%    
Debt instrument, maturity date     2031-05 2031-05        
3.25% Fixed-rate Notes Due in May 2041 [Member] | Senior Unsecured Debt [Member]                
Line Of Credit Facility [Line Items]                
Debt instrument, face amount     $ 750,000,000   $ 750,000,000      
Fixed interest rate     3.25%   3.25% 3.25%    
Debt instrument, maturity date     2041-05 2041-05        
3.40% Notes Due 2022 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     3.40%   3.40% 3.40%    
Repayments of notes     $ 500,000,000          
Debt instrument maturity, year     2022 2022        
0.70% Notes Due 2022 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     0.70%   0.70% 0.70%    
Repayments of notes | €       € 640,000,000        
Debt instrument maturity, year     2022 2022        
2.625% Notes Due 2023 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     2.625%   2.625% 2.625%    
Repayments of notes     $ 500,000,000          
Debt instrument maturity, year     2023 2023        
1.00% Notes Due 2023 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     1.00%   1.00% 1.00%    
Repayments of notes | €       € 750,000,000        
Debt instrument maturity, year     2023 2023        
2.70% Notes Due 2023 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     2.70%   2.70% 2.70%    
Repayments of notes     $ 250,000,000          
Debt instrument maturity, year     2023 2023        
4.00% Notes Due 2024 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     4.00%   4.00% 4.00%    
Repayments of notes     $ 750,000,000          
Debt instrument maturity, year     2024 2024        
3.20% Notes Due 2025 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     3.20%   3.20% 3.20%    
Repayments of notes     $ 700,000,000          
Debt instrument maturity, year     2025 2025        
3.80% Notes Due 2025 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     3.80%   3.80% 3.80%    
Repayments of notes     $ 1,000,000,000.0          
Debt instrument maturity, year     2025 2025        
3.30% Notes Due 2027 [Member]                
Line Of Credit Facility [Line Items]                
Fixed interest rate     3.30%   3.30% 3.30%    
Repayments of notes     $ 450,000,000          
Debt instrument maturity, year     2027 2027        
v3.21.2
Leases - Summary of Components of Net Lease Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
Leases [Abstract]    
Operating lease cost $ 2,848 $ 2,668
Finance lease cost:    
Amortization of right-of-use assets 23 18
Interest on lease liabilities 17 12
Total finance lease cost 40 30
Short-term lease cost 387 197
Variable lease cost 1,318 1,160
Net lease cost $ 4,593 $ 4,055
v3.21.2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
Leases [Abstract]    
Operating cash flows paid for operating leases $ 2,750 $ 2,608
Operating cash flows paid for interest portion of finance leases 16 14
Financing cash flows paid for principal portion of finance leases 75 84
Right-of-use assets obtained in exchange for new operating lease liabilities 3,703 1,915
Right-of-use assets obtained in exchange for new finance lease liabilities $ 126 $ 484
v3.21.2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Operating leases:    
Operating lease right-of-use assets, net $ 15,383 $ 13,917
Current portion of operating lease liabilities 2,208 1,923
Operating lease liabilities 13,375 12,195
Total operating lease liabilities 15,583 14,118
Finance leases:    
Net property and equipment $ 504 $ 480
Finance Lease, Right of Use Asset, Statement of Financial Position [Extensible List] Net Book Value at May 31, Net Book Value at May 31,
Current portion of long-term debt $ 96 $ 51
Finance Lease, Liability, Current Statement of Financial Position [Extensible List] LONG-TERM DEBT, LESS CURRENT PORTION LONG-TERM DEBT, LESS CURRENT PORTION
Long-term debt, less current portion $ 429 $ 434
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] LONG-TERM DEBT, LESS CURRENT PORTION LONG-TERM DEBT, LESS CURRENT PORTION
Total finance lease liabilities $ 525 $ 485
Weighted-average remaining lease term    
Operating leases 9 years 10 months 24 days 9 years 10 months 24 days
Finance leases 30 years 1 month 6 days 32 years
Weighted-average discount rate    
Operating leases 2.94% 3.19%
Finance leases 3.43% 3.58%
v3.21.2
Leases - Additional Information (Details) - USD ($)
$ in Billions
 12 Months Ended
May 31, 2021
May 31, 2020
Lessee Lease Description [Line Items]    
Finance and operating leases expiration term various dates through 2060  
Percentage total aircraft fleet leased 3.00% 5.00%
Additional leases not yet commenced, undiscounted future payments $ 2.5  
Minimum [Member]    
Lessee Lease Description [Line Items]    
Operating lease commencement date 2022  
Maximum [Member]    
Lessee Lease Description [Line Items]    
Operating lease commencement date 2023  
v3.21.2
Leases - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items]    
2022 $ 2,656  
2023 2,559  
2024 2,112  
2025 1,832  
2026 1,600  
Thereafter 8,240  
Total lease payments 18,999  
Less imputed interest (2,891)  
Present value of lease liability 16,108  
Operating Leases    
2022 2,637  
2023 2,453  
2024 2,088  
2025 1,808  
2026 1,577  
Thereafter 7,542  
Total lease payments 18,105  
Less imputed interest (2,522)  
Present value of lease liability 15,583 $ 14,118
Finance Leases    
2022 19  
2023 106  
2024 24  
2025 24  
2026 23  
Thereafter 698  
Total lease payments 894  
Less imputed interest (369)  
Present value of lease liability 525 $ 485
Aircraft and Related Equipment [Member]    
Operating Leases    
2022 234  
2023 198  
2024 102  
2025 69  
2026 61  
Thereafter 184  
Total lease payments 848  
Less imputed interest (66)  
Present value of lease liability 782  
Facilities and Other [Member]    
Operating Leases    
2022 2,403  
2023 2,255  
2024 1,986  
2025 1,739  
2026 1,516  
Thereafter 7,358  
Total lease payments 17,257  
Less imputed interest (2,456)  
Present value of lease liability $ 14,801  
v3.21.2
Preferred Stock - Additional Information (Details)
May 31, 2021
$ / shares
shares
Preferred Stock Number Of Shares Par Value And Other Disclosures [Abstract]  
Preferred Stock Shares Authorized 4,000,000
Preferred Stock No Par Value | $ / shares
Preferred Stock Shares Issued 0
v3.21.2
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance $ 18,295 $ 17,757 $ 19,416
Translation adjustments 422 (254) (195)
Ending Balance 24,168 18,295 17,757
ASU 2018-02 [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification to retained earnings due to the adoption of ASU 2018-02 [1]   51  
Foreign Currency Translation Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (1,207) (954) (759)
Translation adjustments 422 (254) (195)
Ending Balance (785) (1,207) (954)
Foreign Currency Translation Loss [Member] | ASU 2018-02 [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification to retained earnings due to the adoption of ASU 2018-02   1  
Retirement Plans Adjustments [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance 60 89 181
Prior service cost (credit) arising during period   3  
Reclassifications from AOCI (7) (82) (92)
Ending Balance 53 60 89
Retirement Plans Adjustments [Member] | ASU 2018-02 [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification to retained earnings due to the adoption of ASU 2018-02   50  
Accumulated Other Comprehensive Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (1,147) (865) (578)
Ending Balance $ (732) (1,147) $ (865)
Accumulated Other Comprehensive Loss [Member] | ASU 2018-02 [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification to retained earnings due to the adoption of ASU 2018-02 [1]   $ 51  
[1] Relates to the adoption of ASU 2018-02.
v3.21.2
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, 2021
May 31, 2020
May 31, 2019
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other retirement plans income (expense) $ 10 $ 107 $ 120
Provision for income taxes (3) (25) (28)
Net income $ 7 $ 82 $ 92
v3.21.2
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]      
Stock-based compensation expense $ 200 $ 168 $ 174
v3.21.2
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
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 335,004 207,012 149,579
Restricted stock, weighted-average fair value $ 155.19 $ 158.58 $ 253.28
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Abstract      
Total unrecognized compensation cost, net of estimated forfeitures $ 275    
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%    
v3.21.2
Stock-Based Compensation - Schedule of Stock Based Compensation Key Assumptions for Valuation (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Weighted-average Black-Scholes value per share $ 44.11 $ 33.97 $ 61.42
Intrinsic value of options exercised $ 593 $ 44 $ 122
Expected lives 6 years 4 months 24 days 6 years 4 months 24 days 6 years 4 months 24 days
Expected volatility 30.00% 23.00% 21.00%
Risk-free interest rate 1.32% 1.91% 2.94%
Dividend yield 1.71% 1.63% 0.935%
v3.21.2
Stock-Based Compensation - Schedule of Stock Option Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2021
USD ($)
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward  
Stock Options, Outstanding at June 1, 2020 16,124,745
Stock Options, Granted 4,717,412
Stock Options, Exercised (5,063,165)
Stock Options, Forfeited (453,495)
Stock Options, Outstanding at May 31, 2021 15,325,497
Stock Options, Exercisable 7,054,806
Stock Options, Expected to vest 7,676,476
Stock Options, Available for future grants 12,233,805
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract]  
Weighted-Average Exercise Price, Outstanding at June 1, 2020 | $ / shares $ 167.79
Weighted-Average Exercise Price, Granted | $ / shares 168.73
Weighted-Average Exercise Price, Exercised | $ / shares 146.10
Weighted-Average Exercise Price, Forfeited | $ / shares 168.99
Weighted-Average Exercise Price, Outstanding at May 31, 2021 | $ / shares 175.19
Weighted-Average Exercise Price, Exercisable | $ / shares 173.26
Weighted-Average Exercise Price, Expected to vest | $ / shares $ 176.85
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, 2021 6 years 9 months 18 days
Weighted-Average Remaining Contractual Term, Exercisable 4 years 10 months 24 days
Weighted-Average Remaining Contractual Term, Expected to vest 8 years 6 months
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract  
Aggregate Intrinsic Value, Outstanding at May 31, 2021 | $ $ 2,139 [1]
Aggregate Intrinsic Value, Exercisable | $ 999 [1]
Aggregate Intrinsic Value, Expected to vest | $ $ 1,059 [1]
[1] Only presented for options with market value at May 31, 2021 in excess of the exercise price of the option.
v3.21.2
Stock-Based Compensation - Schedule of Vested and Unvested Restricted Stock (Details) - $ / shares
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward      
Restricted Stock, Unvested at June 1, 2010 371,690    
Restricted Stock, Granted 335,004 207,012 149,579
Restricted Stock, Vested (167,767)    
Restricted Stock, Forfeited (1,646)    
Restricted Stock, Unvested at May 31, 2021 537,281 371,690  
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, 2020 $ 192.19    
Weighted-Average Grant Date Fair Value, Granted 155.19 $ 158.58 $ 253.28
Weighted-Average Grant Date Fair Value, Vested 188.62    
Weighted-Average Grant Date Fair Value, Forfeited 221.09    
Weighted-Average Grant Date Fair Value, Unvested at May 31, 2021 $ 170.16 $ 192.19  
v3.21.2
Stock-Based Compensation - Schedule of Stock Option Vesting (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract      
Vested during the year 2,492,039 2,073,310 2,249,301
Fair value $ 115 $ 99 $ 115
v3.21.2
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Basic earnings per common share:      
Net earnings allocable to common shares [1] $ 5,220 $ 1,284 $ 539
Weighted-average common shares 264.0 261.0 262.0
Basic earnings (loss) per common share $ 19.79 $ 4.92 $ 2.06
Diluted earnings per common share:      
Net earnings allocable to common shares [1] $ 5,221 $ 1,284 $ 539
Weighted-average common shares 264.0 261.0 262.0
Dilutive effect of share-based awards 4.0 1.0 3.0
Weighted-average diluted shares 268.0 262.0 265.0
Diluted earnings (loss) per common share $ 19.45 $ 4.90 $ 2.03
Anti-dilutive options excluded from diluted earnings per common share 3.5 11.7 5.4
[1] Net earnings available to participating securities were immaterial in all periods presented.
v3.21.2
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2020
May 31, 2021
May 31, 2020
May 31, 2019
Current provision (benefit)        
Federal   $ 199 $ (230) $ (107)
State and local   158 67 64
Foreign   284 198 243
Current Provision, Total   641 35 200
Deferred provision (benefit)        
Federal   667 475 (61)
State and local   70 1 (7)
Foreign   65 (128) (17)
Deferred Provision, Total $ 51 802 348 (85)
Provision for Income Taxes, Total   $ 1,443 $ 383 $ 115
v3.21.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2020
May 31, 2021
May 31, 2020
May 31, 2019
May 31, 2018
Income Taxes [Line Items]          
Earnings From Foreign Operations   $ 1,800 $ 634 $ 929  
Income tax benefit   (1,443) (383) $ (115)  
Statutory Federal Income Tax Rate       21.00% 29.20%
Benefit from reduction of valuation allowance on tax loss carryforwards     133 $ 90  
Deferred income tax expense $ 51 802 348 (85)  
Income tax benefit from accelerated deductions to be claimed on 2018 tax return       75  
Reduction in valuation allowance balance   (14) 129 79  
Recognition of cumulative benefit from TCJA       $ 233  
Unrecognized Tax Benefits That Would Impact Effective Tax Rate 127 190 127    
Unrecognized Tax Benefits Accrued Income Tax Penalties And Interest $ 41 61 41    
Interest expense associated with uncertain tax positions   20      
Foreign Country [Member]          
Income Taxes [Line Items]          
Operating Loss Carryforwards   3,000      
Foreign Country [Member] | Fed Ex Express and TNT Express [Member]          
Income Taxes [Line Items]          
Reduction in valuation allowance balance   70      
State And Local Jurisdiction [Member]          
Income Taxes [Line Items]          
Operating Loss Carryforwards   1,200      
Domestic Tax Authority [Member]          
Income Taxes [Line Items]          
Operating Loss Carryforwards   $ 100      
Maximum [Member]          
Income Taxes [Line Items]          
Statutory Federal Income Tax Rate       35.00%  
Minimum [Member]          
Income Taxes [Line Items]          
Statutory Federal Income Tax Rate   21.00%      
Netherlands [Member]          
Income Taxes [Line Items]          
Expense (benefit) from the impact on deferred tax assets attributable to a lower enacted tax rate   $ (66)   $ 50  
IRS [Member]          
Income Taxes [Line Items]          
Income tax benefit   130      
CARES Act [Member]          
Income Taxes [Line Items]          
Income tax benefit   $ 279 $ 71    
Statutory Federal Income Tax Rate   35.00% 35.00%    
v3.21.2
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]      
Taxes computed at federal statutory rate $ 1,401 $ 350 $ 138
Benefit from U.S. tax loss carryback to prior years (279) (71)  
State and local income taxes, net of federal benefit 179 53 44
Foreign operations 138 38 (1)
Benefits from share-based payments (69) (5) (18)
Uncertain tax positions 65 (14) 8
Foreign tax rate enactments (61) (10) 50
Non-deductible expenses 53 70 79
Valuation allowance 14 (129) (79)
Goodwill impairment charges   75  
U.S. deferred tax adjustments related to foreign operations   51  
Tax Cuts and Jobs Act (“TCJA”)     (71)
Foreign tax credits from distributions     (8)
Other, net 2 (25) (27)
Provision for Income Taxes, Total $ 1,443 $ 383 $ 115
Effective Tax Rate 21.60% 23.00% 17.60%
v3.21.2
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Components Of Deferred Tax Assets And Liabilities [Abstract]    
Property, equipment, leases and intangibles $ 4,248 $ 3,819
Employee benefits 1,178 1,448
Self-insurance accruals 799 647
Other 497 579
Net operating loss/credit carryforwards 934 1,262
Valuation allowances (382) (450)
Deferred Tax Assets, Net 7,274 7,305
Property, equipment, leases and intangibles 9,731 8,745
Other 52 375
Deferred Tax Liabilities $ 9,783 $ 9,120
v3.21.2
Income Taxes - Schedule of Net Deferred Tax Liabilities (Details) - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
Deferred Tax Assets Liabilities Net [Abstract]    
Noncurrent deferred tax assets [1] $ 1,418 $ 1,347
Noncurrent deferred tax liabilities (3,927) (3,162)
Net deferred tax liabilities $ (2,509) $ (1,815)
[1] Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying consolidated balance sheets.
v3.21.2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward      
Balance at beginning of year $ 129 $ 164 $ 161
Increases for tax positions taken in the current year 3 3  
Increases for tax positions taken in prior years 69 4 31
Decreases for tax positions taken in prior years (6) (10) (4)
Settlements (6) (31) (21)
Changes due to currency translation 3 (1) (3)
Balance at end of year $ 192 $ 129 $ 164
v3.21.2
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Pension And Other Postretirement Benefit Expense [Abstract]      
Defined benefit pension plans $ 88 $ 148 $ 112
Defined contribution plans 685 574 561
Postretirement healthcare plans 83 86 75
Retirement plans MTM (gain) loss (1,176) 794 3,882
Retirement plans costs $ (320) $ 1,602 $ 4,630
v3.21.2
Retirement Plans - Schedule of MTM Adjustments (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Actuarial Gain Loss By Component Pre Tax [Abstract]      
Actual versus expected return on assets $ (1,712) $ (2,024) $ 476
Discount rate change (397) 2,997 1,780
Demographic experience:      
Current year actuarial loss 302 50 739
Change in future assumptions 685 (229) 887
Curtailment gain on TNT Netherlands pension plan (54)    
Total MTM (gain) loss $ (1,176) $ 794 $ 3,882
v3.21.2
Retirement Plans - Additional Information (Details) - USD ($)
 12 Months Ended
May 31, 2022
May 31, 2021
May 31, 2020
May 31, 2019
May 31, 2018
Defined Benefit Plan Disclosure [Line Items]          
Weighted average discount rate percent all pension postretirement plans   3.11% 3.05% 3.69% 4.11%
U.S. pension plan actual rate of return on assets   12.90% 15.00% 4.05%  
401(k)-plan description   In November 2019, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all-401(k)-plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the PPA pension formula will be given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its company match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure become effective beginning January 1, 2022. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results.      
Actual rate of return on plan assets for the 15-year period   7.90%      
Defined benefit plan variable-rate premiums lower rate of return due to higher PBGC   0.25%      
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax   $ 7,000,000 $ 79,000,000 $ 92,000,000  
Defined benefit plan health care cost trend rate assumed for next fiscal year   5.60%      
Defined benefit plan ultimate health care cost trend rate   4.00%      
Defined benefit plan year that rate reaches ultimate trend rate   2045      
U.S. Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer   $ 300,000,000 $ 1,000,000,000    
Pension Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Expected long-term rate of return on assets   6.75% 6.75% 6.75%  
Pension Plans [Member] | Forecast [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Expected long-term rate of return on assets 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% 6.75% 6.75%  
Defined benefit plan contributions by employer   $ 319,000,000 $ 1,068,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost   8,000,000 105,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax   $ 6,000,000 80,000,000    
Pension Plans [Member] | U.S. Plans [Member] | Forecast [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer $ 0        
Future Plan Structure [Member] | Maximum [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Company matching contributions to eligible employees   8.00%      
Current Plan Structure [Member] | Maximum [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Company matching contributions to eligible employees   3.50%      
Voluntary Contribution [Member] | U.S. Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer   $ 300,000,000 $ 1,000,000,000    
Voluntary Contribution [Member] | U.S. Plans [Member] | Forecast [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer $ 500,000,000        
v3.21.2
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, 2021
May 31, 2020
May 31, 2019
Pension Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Expected long-term rate of return on assets 6.75% 6.75% 6.75%
Pension Plans [Member] | U.S. Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 3.23% 3.14% 3.85%
Discount rate used to determine net periodic benefit cost 3.14% 3.85% 4.27%
Rate of increase in future compensation levels used to determine benefit obligation 5.06% 5.17% 5.10%
Rate of increase in future compensation levels used to determine net periodic benefit cost 5.17% 5.10% 4.43%
Expected long-term rate of return on assets 6.75% 6.75% 6.75%
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 1.83% 1.79% 1.92%
Discount rate used to determine net periodic benefit cost 1.79% 1.92% 2.34%
Rate of increase in future compensation levels used to determine benefit obligation 2.83% 2.19% 2.27%
Rate of increase in future compensation levels used to determine net periodic benefit cost 2.19% 2.43% 2.22%
Expected long-term rate of return on assets 2.71% 3.26% 3.12%
Interest crediting rate used to determine net periodic benefit cost 2.00% 2.20% 2.20%
Interest crediting rate used to determine benefit obligation 2.50% 2.00% 2.20%
Postretirement Healthcare Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 2.81% 2.95% 3.70%
Discount rate used to determine net periodic benefit cost 2.95% 3.70% 4.33%
v3.21.2
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, 2021
May 31, 2020
May 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 31,918 $ 28,691  
U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 29,785 $ 26,978 $ 23,320
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 $ 614 $ 709  
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 $ 2,133 $ 1,713 1,578
Portion of Fair Value of Plan Assets $ 1,882 $ 1,497  
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 $ 10 $ 9  
Actual % 1.00% 1.00%  
U.S. Large Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 4,038 $ 3,070  
Actual % [2] 14.00% 11.00%  
International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 4,664 $ 3,314  
Actual % [2] 16.00% 12.00%  
International Equity Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 123 $ 72  
Actual % [2] 7.00% 5.00%  
Global Equity Funds [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 1,668 $ 1,350  
Actual % [2] 6.00% 5.00%  
Global Equity Funds [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 335 $ 218  
Actual % [2] 18.00% 15.00%  
U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 967 $ 673  
Actual % 3.00% 3.00%  
Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 8,714 $ 7,983  
Actual % 29.00% 30.00%  
Corporate Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 434 $ 342  
Actual % [2] 23.00% 23.00%  
Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 5,190 $ 6,928  
Actual % [2] 17.00% 26.00%  
Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 574 $ 510  
Actual % [2] 30.00% 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] $ 1,065 $ 634  
Actual % [2] 3.00% 2.00%  
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] $ 217 $ 188  
Actual % [2] 12.00% 12.00%  
Alternative investments [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] $ 2,855 $ 2,264  
Actual % [2] 10.00% 8.00%  
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% 15.00%  
Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 10 $ 53  
Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] $ 189 $ 158  
Actual % [2] 9.00% 10.00%  
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 $ 6,342 $ 4,918  
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 36 278  
Fair Value Inputs Level 1 [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 379 340  
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 10 9  
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] 1,644 1,172  
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] 3,792 2,738  
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 884 673  
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] 350    
Fair Value Inputs Level 1 [Member] | 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]   318  
Fair Value Inputs Level 1 [Member] | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets   57  
Fair Value of Plan Liabilities (14)    
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] 19 13  
Fair Value, Inputs, Level 2 | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 12,817 13,233  
Fair Value, Inputs, Level 2 | U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 578 431  
Fair Value, Inputs, Level 2 | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 36 63  
Fair Value, Inputs, Level 2 | International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 2    
Fair Value, Inputs, Level 2 | U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 5    
Fair Value, Inputs, Level 2 | Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 8,714 7,983  
Fair Value, Inputs, Level 2 | Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 3,296 4,652  
Fair Value, Inputs, Level 2 | Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets [2] 226 170  
Fair Value, Inputs, Level 2 | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Liabilities (4) (3)  
Fair Value, Inputs, Level 2 | Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets [2] 36 63  
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 537 416 $ 302
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] $ 537 $ 416  
[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.
v3.21.2
Retirement Plans - Schedule of Change in Fair Value of Level 3 Assets (Details) - Pension Plans [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year $ 28,691  
Actual return on plan assets:    
Balance at end of year 31,918 $ 28,691
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 26,978 23,320
Actual return on plan assets:    
Balance at end of year 29,785 26,978
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 416 302
Actual return on plan assets:    
Assets held during current year 41 19
Assets sold during the year 22 16
Purchases, sales and settlements 58 79
Balance at end of year $ 537 $ 416
v3.21.2
Retirement Plans - Reconciliation of Changes In Pension And Postretirement Healthcare Plans Benefit Obligations And Fair Value Of Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
U.S. Plans [Member]      
Change in Plan Assets      
Company contributions $ 300 $ 1,000  
Pension Plans [Member]      
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 32,441    
PBO/APBO at the end of year 34,034 32,441  
Change in Plan Assets      
Balance at beginning of year 28,691    
Balance at end of year 31,918 28,691  
Funded Status of the Plans (2,116) (3,750)  
Pension Plans [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated Benefit Obligation (“ABO”) 30,455 29,272  
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 30,199 26,554  
Service cost 851 768 $ 689
Interest cost 959 1,000 951
Actuarial loss (gain) 362 2,817  
Benefits paid (948) (940)  
PBO/APBO at the end of year 31,423 30,199 26,554
Change in Plan Assets      
Balance at beginning of year 26,978 23,320  
Actual return on plan assets 3,436 3,530  
Company contributions 319 1,068  
Benefits paid (948) (940)  
Balance at end of year 29,785 26,978 23,320
Funded Status of the Plans (1,638) (3,221)  
Amount Recognized in the Balance Sheet at May 31:      
Current pension, postretirement healthcare and other benefit obligations (41) (38)  
Noncurrent pension, postretirement healthcare and other benefit obligations (1,597) (3,183)  
Net amount recognized (1,638) (3,221)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:      
Prior service (credit) cost and other (61) (68)  
Pension Plans [Member] | International Pension Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated Benefit Obligation (“ABO”) 2,417 2,012  
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 2,242 2,301  
Service cost 83 96 94
Interest cost 43 43 49
Actuarial loss (gain) 105 (87)  
Benefits paid (53) (41)  
Settlements (11) (6)  
Other 202 (64)  
PBO/APBO at the end of year 2,611 2,242 2,301
Change in Plan Assets      
Balance at beginning of year 1,713 1,578  
Actual return on plan assets 114 146  
Company contributions 142 86  
Benefits paid (53) (41)  
Settlements (11) (6)  
Other 228 (50)  
Balance at end of year 2,133 1,713 1,578
Funded Status of the Plans (478) (529)  
Amount Recognized in the Balance Sheet at May 31:      
Noncurrent asset 231 142  
Current pension, postretirement healthcare and other benefit obligations (18) (17)  
Noncurrent pension, postretirement healthcare and other benefit obligations (691) (654)  
Net amount recognized (478) (529)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:      
Prior service (credit) cost and other (6) (7)  
Postretirement Healthcare Plans [Member]      
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 1,314 1,221  
Service cost 44 42 35
Interest cost 39 44 40
Actuarial loss (gain) 125 85  
Benefits paid (112) (127)  
Other 46 49  
PBO/APBO at the end of year 1,456 1,314 $ 1,221
Change in Plan Assets      
Company contributions 64 77  
Benefits paid (112) (127)  
Other 48 50  
Funded Status of the Plans (1,456) (1,314)  
Amount Recognized in the Balance Sheet at May 31:      
Current pension, postretirement healthcare and other benefit obligations (110) (104)  
Noncurrent pension, postretirement healthcare and other benefit obligations (1,346) (1,210)  
Net amount recognized $ (1,456) (1,314)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:      
Prior service (credit) cost and other   $ 1  
v3.21.2
Retirement Plans - Schedule of Components of Pension Plans (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2021
May 31, 2020
May 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") $ 34,034 $ 32,441  
Fair Value of Plan Assets 31,918 28,691  
Funded Status (2,116) (3,750)  
Qualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 31,225 30,004  
Fair Value of Plan Assets 29,785 26,978  
Funded Status (1,440) (3,026)  
Nonqualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 198 195  
Funded Status (198) (195)  
International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 2,611 2,242 $ 2,301
Fair Value of Plan Assets 2,133 1,713 $ 1,578
Funded Status $ (478) $ (529)  
v3.21.2
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, 2021
May 31, 2020
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets $ 29,785 $ 26,978
PBO (31,423) (30,199)
Net funded status (1,638) (3,221)
ABO [1] (29,083) (29,272)
Fair value of plan assets 28,383 26,978
PBO (29,888) (30,199)
Net funded status (1,505) (3,221)
International Pension Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 241 205
PBO (950) (876)
Net funded status (709) (671)
ABO [1] (722) (637)
Fair value of plan assets 206 175
PBO (908) (840)
Net funded status $ (702) $ (665)
[1] ABO not used in determination of funded status.
v3.21.2
Retirement Plans - Schedule of Pension Plans Contributions (Details) - U.S. Plans [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan contributions by employer $ 300 $ 1,000
Voluntary Contribution [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan contributions by employer $ 300 $ 1,000
v3.21.2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Pension Plans [Member] | U.S. Plans [Member]      
Net Periodic Benefit Cost      
Service cost $ 851 $ 768 $ 689
Interest cost 959 1,000 951
Expected return on plan assets (1,786) (1,601) (1,505)
Amortization of prior service credit (8) (105) (118)
Actuarial (gains) losses and other (1,288) 888 3,537
Net periodic benefit cost (1,272) 950 3,554
Pension Plans [Member] | International Pension Plans [Member]      
Net Periodic Benefit Cost      
Service cost 83 96 94
Interest cost 43 43 49
Expected return on plan assets (52) (51) (46)
Amortization of prior service credit (2) (2) (2)
Actuarial (gains) losses and other (13) (179) 80
Net periodic benefit cost 59 (93) 175
Postretirement Healthcare Plans [Member]      
Net Periodic Benefit Cost      
Service cost 44 42 35
Interest cost 39 44 40
Actuarial (gains) losses and other 125 85 265
Net periodic benefit cost $ 208 $ 171 $ 340
v3.21.2
Retirement Plans - Schedule of Expected Future Benefit Payments (Details)
$ in Millions
May 31, 2021
USD ($)
Pension Plans [Member] | U.S. Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2022 $ 1,178
2023 1,246
2024 1,333
2025 1,417
2026 1,505
2027-2031 8,661
Pension Plans [Member] | International Pension Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2022 55
2023 57
2024 60
2025 65
2026 73
2027-2031 487
Postretirement Healthcare Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2022 110
2023 120
2024 129
2025 137
2026 139
2027-2031 $ 541
v3.21.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Segment Reporting Information [Line Items]      
Revenues [1] $ 83,959 $ 69,217 $ 69,693 [2]
Depreciation and amortization 3,793 3,615 3,353
Operating income (loss) 5,857 [3] 2,417 [4] 4,466 [5]
Segment assets [6] 82,777 73,537 54,403
Capital expenditures 5,884 5,868 5,490
Operating Segments [Member] | FedEx Express Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 42,078 35,513 37,331 [2]
Depreciation and amortization 1,946 1,894 1,801
Operating income (loss) 2,810 [3] 996 [4] 2,176 [5]
Segment assets [6] 46,356 41,252 33,247
Capital expenditures 3,503 3,560 3,550
Operating Segments [Member] | FedEx Ground Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 30,496 22,733 20,522 [2]
Depreciation and amortization 843 789 728
Operating income (loss) 3,193 [3] 2,014 [4] 2,663 [5]
Segment assets [6] 29,134 24,700 17,561
Capital expenditures 1,446 1,083 808
Operating Segments [Member] | FedEx Freight Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 7,833 7,102 7,582 [2]
Depreciation and amortization 417 381 332
Operating income (loss) 1,005 [3] 580 [4] 615 [5]
Segment assets [6] 7,371 6,434 4,736
Capital expenditures 320 539 544
Operating Segments [Member] | FedEx Services Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 32 22 22 [2]
Depreciation and amortization 462 413 355
Segment assets [6] 8,639 7,285 6,061
Capital expenditures 512 527 440
Corporate, Other and Eliminations [Member]      
Segment Reporting Information [Line Items]      
Revenues 3,520 3,847 4,236
Depreciation and amortization 125 138 137
Operating income (loss) (1,151) [3] (1,173) [4] (988) [5]
Segment assets [6] (8,723) (6,134) (7,202)
Capital expenditures $ 103 $ 159 $ 148
[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 of $210 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
[4] Includes TNT Express integration expenses of $270 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes noncash goodwill and other asset impairment charges of $435 million primarily related to goodwill impairment at FedEx Office and from the decision to permanently retire certain aircraft and related engines at FedEx Express.
[5] Includes TNT Express integration expenses (including 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 included in “Corporate, other and eliminations” and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[6] Segment assets include intercompany receivables.
v3.21.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Segment Reporting Information [Line Items]      
Integration expenses $ 210 $ 270 $ 388
Business realignment costs 116   320
Goodwill and other asset impairment charges   435  
FedEx Express Segment [Member]      
Segment Reporting Information [Line Items]      
Business realignment costs $ 116    
FedEx Office and FedEx Express [Member]      
Segment Reporting Information [Line Items]      
Goodwill and other asset impairment charges   $ 435  
FedEx Ground Segment [Member]      
Segment Reporting Information [Line Items]      
Ground independent contractor legal expense     $ 46
v3.21.2
Business Segments and Disaggregated Revenue - Schedule of Revenue by Service Type (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
 [2]
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [1] $ 83,959 $ 69,217 $ 69,693
Operating Segments [Member] | FedEx Express Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 42,078 35,513 37,331
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight box [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 8,116 7,234 7,663
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight envelope [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 1,791 1,776 1,829
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. deferred [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 4,984 4,038 4,225
Operating Segments [Member] | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 14,891 13,048 13,717
Operating Segments [Member] | FedEx Express Segment [Member] | International priority [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 10,317 7,354 7,405
Operating Segments [Member] | FedEx Express Segment [Member] | International economy [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 2,632 3,082 3,446
Operating Segments [Member] | FedEx Express Segment [Member] | Total international export package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 12,949 10,436 10,851
Operating Segments [Member] | FedEx Express Segment [Member] | International domestic [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [3] 4,640 4,179 4,540
Operating Segments [Member] | FedEx Express Segment [Member] | Total package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 32,480 27,663 29,108
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. freight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 3,325 2,998 3,025
Operating Segments [Member] | FedEx Express Segment [Member] | International priority freight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 3,030 1,915 2,070
Operating Segments [Member] | FedEx Express Segment [Member] | International Economy Freight      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 1,582 1,930 2,123
Operating Segments [Member] | FedEx Express Segment [Member] | International Airfreight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 245 270 314
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 8,182 7,113 7,532
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [4] 1,416 737 691
Operating Segments [Member] | FedEx Ground Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 30,496 22,733 20,522
Operating Segments [Member] | FedEx Freight Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 7,833 7,102 7,582
Operating Segments [Member] | FedEx Services Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 32 22 22
Corporate, Other and Eliminations [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [5] $ 3,520 $ 3,847 $ 4,236
[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] International domestic revenue relates to our intra-country operations.
[4] Includes the operations of FedEx Custom Critical beginning March 1, 2020 and FedEx Cross Border beginning June 1, 2020.
[5] Includes the FedEx Office and FedEx Logistics operating segments, as well as the financial results of ShopRunner beginning December 23, 2020.
v3.21.2
Business Segments and Disaggregated Revenue - Schedule of Geographical Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
 [2]
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] $ 83,959 $ 69,217 $ 69,693
Assets Noncurrent [1] 62,197 57,154 41,317
U.S. [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 58,792 48,404 47,584
Assets Noncurrent [1] 49,407 45,691 33,189
International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 25,167 20,813 22,109
Assets Noncurrent [1] 12,790 11,463 8,128
FedEx Express Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 23,085 19,177 20,424
FedEx Ground Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 735 479 467
FedEx Freight Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 190 192 207
FedEx Services Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 1 1 1
Other international revenue [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] $ 1,156 $ 964 $ 1,010
[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.
v3.21.2
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Supplemental Cash Flow Information [Abstract]      
Interest (net of capitalized interest) $ 819 $ 639 $ 617
Income taxes 1,374 389 407
Income tax refunds received (55) (353) (36)
Cash tax payments, net $ 1,319 $ 36 $ 371
v3.21.2
Commitments - Schedule of Purchase Commitments (Details)
$ in Millions
May 31, 2021
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
2022 $ 2,923
2023 3,278
2024 1,529
2025 883
2026 779
Thereafter 2,577
Total 11,969
Aircraft And Related Equipment Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2022 1,898
2023 2,567
2024 1,017
2025 479
2026 432
Thereafter 2,325
Total 8,718
Other Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2022 1,025 [1]
2023 711 [1]
2024 512 [1]
2025 404 [1]
2026 347 [1]
Thereafter 252 [1]
Total $ 3,251 [1]
[1] Primarily equipment and advertising contracts.
v3.21.2
Commitments - Additional Information (Details)
$ in Millions
 12 Months Ended
Jun. 22, 2021
air-craft
May 31, 2021
USD ($)
air-craft
Other Aircraft Commitments Disclosure [Abstract]    
Deposit and Progress Payments | $   $ 948
B777F [Member]    
Other Aircraft Commitments Disclosure [Abstract]    
Conditional Aircraft Commitments   6
B767F [Member] | Subsequent Event [Member]    
Other Aircraft Commitments Disclosure [Abstract]    
Number of additional aircraft agreed to purchase options exercised 20  
B767F Aircraft Delivered in 2024 [Member] | Subsequent Event [Member]    
Other Aircraft Commitments Disclosure [Abstract]    
Number of aircrafts rescheduled delivery, 2024 10  
Aircraft expected to be delivered, earliest fiscal year 2024  
B767F Aircraft Delivered in 2025 [Member] | Subsequent Event [Member]    
Other Aircraft Commitments Disclosure [Abstract]    
Number of aircrafts rescheduled delivery, 2024 10  
Aircraft expected to be delivered, latest fiscal year 2025  
v3.21.2
Commitments - Schedule of Aircraft Purchase Commitments (Details)
 12 Months Ended
May 31, 2021
air-craft
Schedule of Aircraft Commitments [Line Items]  
2022 35
2023 33
2024 26
2025 20
2026 6
Total 120
Cessna SkyCourier 408 [Member]  
Schedule of Aircraft Commitments [Line Items]  
2022 9
2023 12
2024 12
2025 12
2026 5
Total 50
ATR 72-600F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2022 9
2023 6
2024 6
2025 6
2026 1
Total 28
B767F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2022 13
2023 13
2024 4
Total 30
B777F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2022 4
2023 2
2024 4
2025 2
Total 12
v3.21.2
Contingencies - Additional Information (Details)
$ in Millions
 12 Months Ended
May 31, 2021
USD ($)
Loss Contingency [Abstract]  
Litigation, final settlement amount $ 35
Attorneys fees recognized in connection with underlying lawsuits 10
Environmental loss contingencies threshold amount $ 1
v3.21.2
Related Party Transactions (Details)
 12 Months Ended
May 31, 2021
Frederick W. Smith [Member] | Washington D.C. National Football League [Member]  
Related Party Transaction [Line Items]  
Related party ownership interest 10.00%
v3.21.2
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2021
May 31, 2020
May 31, 2019
Allowance For Doubtful Accounts [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance $ 175 $ 121 $ 199
Charged To Expenses 577 442 295
Deductions [1] 394 388 373
Valuation Allowances And Reserves Ending Balance 358 175 121
Allowance For Revenue Adjustments [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 215 179 202
Charged To Other Accounts [2] 1,892 1,286 1,192
Deductions [3] 1,723 1,250 1,215
Valuation Allowances And Reserves Ending Balance 384 215 179
Inventory Valuation Allowance [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 335 335 268
Charged To Expenses 38 33 28
Charged To Other Accounts     75
Deductions 24 33 36
Valuation Allowances And Reserves Ending Balance $ 349 $ 335 $ 335
[1] Uncollectible accounts written off, net of recoveries, and other adjustments.
[2] Principally charged against revenue.
[3] Service failures, rebills and other.