Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
May 31, 2017 | Jul. 13, 2017 | Nov. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | May 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | FedEx Corporation | ||
Entity Central Index Key | 1,048,911 | ||
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 Public Float | $ 47.2 | ||
Entity Common Stock, Shares Outstanding | 268,257,434 | ||
Trading Symbol | FDX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 3,969 | $ 3,534 | |
Receivables, less allowances of $252 and $178 | 7,599 | 7,252 | |
Spare parts, supplies and fuel, less allowances of $237 and $218 | 514 | 496 | |
Prepaid expenses and other | 546 | 707 | |
Total current assets | 12,628 | 11,989 | |
PROPERTY AND EQUIPMENT, AT COST | |||
Aircraft and related equipment | 18,833 | 17,499 | |
Package handling and ground support equipment | 8,989 | 7,961 | |
Information technology | 5,396 | 5,149 | |
Vehicles | 6,961 | 6,422 | |
Facilities and other | 10,447 | 9,987 | |
Gross property and equipment | 50,626 | 47,018 | |
Less accumulated depreciation and amortization | 24,645 | 22,734 | |
Net property and equipment | 25,981 | 24,284 | |
OTHER LONG-TERM ASSETS | |||
Goodwill | 7,154 | 6,747 | |
Other assets | 2,789 | 2,939 | |
Total other long-term assets | 9,943 | 9,686 | |
ASSETS | [1] | 48,552 | 45,959 |
CURRENT LIABILITIES | |||
Current portion of long-term debt | 22 | 29 | |
Accrued salaries and employee benefits | 1,914 | 1,972 | |
Accounts payable | 2,752 | 2,944 | |
Accrued expenses | 3,230 | 3,063 | |
Total current liabilities | 7,918 | 8,008 | |
LONG-TERM DEBT, LESS CURRENT PORTION | 14,909 | 13,733 | |
OTHER LONG-TERM LIABILITIES | |||
Deferred income taxes | 2,485 | 1,567 | |
Pension, postretirement healthcare and other benefit obligations | 4,487 | 6,227 | |
Self-insurance accruals | 1,494 | 1,314 | |
Deferred lease obligations | 531 | 400 | |
Deferred gains, principally related to aircraft transactions | 137 | 155 | |
Other liabilities | 518 | 771 | |
Total other long-term liabilities | 9,652 | 10,434 | |
COMMITMENTS AND CONTINGENCIES | |||
COMMON STOCKHOLDERS’ INVESTMENT | |||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of May 31, 2017 and 2016 | 32 | 32 | |
Additional paid-in capital | 3,005 | 2,892 | |
Retained earnings | 20,833 | 18,371 | |
Accumulated other comprehensive loss | (415) | (169) | |
Treasury stock, at cost | (7,382) | (7,342) | |
Total common stockholders’ investment | 16,073 | 13,784 | |
LIABILITIES AND STOCKHOLDERS' INVESTMENT | $ 48,552 | $ 45,959 | |
[1] | Segment assets include intercompany receivables. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
CURRENT ASSETS | ||
Allowances for receivables | $ 252 | $ 178 |
Allowances for spare parts, supplies and fuel | $ 237 | $ 218 |
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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | |||||
May 31, 2017 | May 31, 2016 | May 31, 2015 | ||||
Income Statement [Abstract] | ||||||
REVENUES | $ 60,319 | $ 50,365 | $ 47,453 | |||
OPERATING EXPENSES: | ||||||
Salaries and employee benefits | 21,542 | 18,581 | 17,110 | |||
Purchased transportation | 13,630 | 9,966 | 8,483 | |||
Rentals and landing fees | 3,240 | 2,854 | 2,682 | |||
Depreciation and amortization | 2,995 | 2,631 | 2,611 | |||
Fuel | 2,773 | 2,399 | 3,720 | |||
Maintenance and repairs | 2,374 | 2,108 | 2,099 | |||
Impairment and other charges | 276 | |||||
Retirement plans mark-to-market adjustment | (24) | 1,498 | 2,190 | |||
Other | 8,752 | 7,251 | 6,415 | |||
OPERATING EXPENSES | 55,282 | 47,288 | 45,586 | |||
OPERATING INCOME | 5,037 | [1] | 3,077 | [2] | 1,867 | [3] |
OTHER INCOME (EXPENSE): | ||||||
Interest expense | (512) | (336) | (235) | |||
Interest income | 33 | 21 | 14 | |||
Other, net | 21 | (22) | (19) | |||
OTHER INCOME (EXPENSE) | (458) | (337) | (240) | |||
INCOME BEFORE INCOME TAXES | 4,579 | 2,740 | 1,627 | |||
PROVISION FOR INCOME TAXES | 1,582 | 920 | 577 | |||
NET INCOME | $ 2,997 | $ 1,820 | $ 1,050 | |||
BASIC EARNINGS PER COMMON SHARE | $ 11.24 | $ 6.59 | $ 3.70 | |||
DILUTED EARNINGS PER COMMON SHARE | $ 11.07 | $ 6.51 | $ 3.65 | |||
[1] | Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||
[2] | Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||
[3] | Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET INCOME | $ 2,997 | $ 1,820 | $ 1,050 |
OTHER COMPREHENSIVE LOSS: | |||
Foreign currency translation adjustments, net of tax expense of $52 in 2017, tax benefit of $22 in 2016 and tax benefit of $45 in 2015 | (171) | (261) | (334) |
Amortization of prior service credit and other, net of tax benefit of $43 in 2017, tax benefit of $45 in 2016 and tax expense of $1 in 2015 | (75) | (80) | |
Other comprehensive loss | (246) | (341) | (334) |
COMPREHENSIVE INCOME | $ 2,751 | $ 1,479 | $ 716 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income(Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Other Comprehensive Income, Tax Amounts | |||
Foreign currency translation adjustments, tax (expense) benefit | $ (52) | $ 22 | $ 45 |
Amortization of prior service credit and other, tax benefit (expense) | $ 43 | $ 45 | $ (1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 2,997 | $ 1,820 | $ 1,050 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 2,995 | 2,631 | 2,611 |
Provision for uncollectible accounts | 136 | 121 | 145 |
Deferred income taxes and other noncash items | 909 | 31 | (572) |
Stock-based compensation | 154 | 144 | 133 |
Retirement plans mark-to-market adjustment | (24) | 1,498 | 2,190 |
Gain from sale of investment | (35) | ||
Impairment and other charges | 246 | ||
Changes in assets and liabilities: | |||
Receivables | (556) | (199) | (392) |
Other current assets | 78 | (234) | 25 |
Pension and postretirement healthcare assets and liabilities, net | (1,688) | (346) | (692) |
Accounts payable and other liabilities | 103 | 467 | 659 |
Other, net | (139) | (225) | (37) |
Cash provided by operating activities | 4,930 | 5,708 | 5,366 |
INVESTING ACTIVITIES | |||
Capital expenditures | (5,116) | (4,818) | (4,347) |
Business acquisitions, net of cash acquired | (4,618) | (1,429) | |
Proceeds from asset dispositions and other | 135 | (10) | 24 |
Cash used in investing activities | (4,981) | (9,446) | (5,752) |
FINANCING ACTIVITIES | |||
Principal payments on debt | (82) | (41) | (5) |
Proceeds from debt issuances | 1,190 | 6,519 | 2,491 |
Proceeds from stock issuances | 337 | 183 | 320 |
Dividends paid | (426) | (277) | (227) |
Purchase of treasury stock | (509) | (2,722) | (1,254) |
Other, net | 18 | (51) | 24 |
Cash provided by financing activities | 528 | 3,611 | 1,349 |
Effect of exchange rate changes on cash | (42) | (102) | (108) |
Net increase (decrease) in cash and cash equivalents | 435 | (229) | 855 |
Cash and cash equivalents at beginning of period | 3,534 | 3,763 | 2,908 |
Cash and cash equivalents at end of period | $ 3,969 | $ 3,534 | $ 3,763 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Beginning balance at May. 31, 2014 | $ 15,277 | $ 32 | $ 2,643 | $ 16,229 | $ 506 | $ (4,133) |
Net income | 1,050 | 1,050 | ||||
Other comprehensive loss, net of tax | (334) | (334) | ||||
Purchase of treasury stock | (1,254) | (1,254) | ||||
Cash dividends declared | (227) | (227) | ||||
Employee incentive plans and other | 481 | 143 | (152) | 490 | ||
Ending balance at May. 31, 2015 | 14,993 | 32 | 2,786 | 16,900 | 172 | (4,897) |
Net income | 1,820 | 1,820 | ||||
Other comprehensive loss, net of tax | (341) | (341) | ||||
Purchase of treasury stock | (2,722) | (2,722) | ||||
Cash dividends declared | (277) | (277) | ||||
Employee incentive plans and other | 311 | 106 | (72) | 277 | ||
Ending balance at May. 31, 2016 | 13,784 | 32 | 2,892 | 18,371 | (169) | (7,342) |
Net income | 2,997 | 2,997 | ||||
Other comprehensive loss, net of tax | (246) | (246) | ||||
Purchase of treasury stock | (509) | (509) | ||||
Cash dividends declared | (426) | (426) | ||||
Employee incentive plans and other | 473 | 113 | (109) | 469 | ||
Ending balance at May. 31, 2017 | $ 16,073 | $ 32 | $ 3,005 | $ 20,833 | $ (415) | $ (7,382) |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Shareholders Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||
Other comprehensive loss, tax | $ 9 | $ (67) | $ (44) |
Purchase of treasury stock | 3,000,000 | 18,200,000 | 8,100,000 |
Cash dividends declared, per share | $ 1.60 | $ 1 | $ 0.80 |
Employee incentive plans and other, shares issued | 3,500,000 | 2,000,000 | 3,700,000 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are Federal Express Corporation (“FedEx Express”), the world’s largest express transportation company; TNT Express B.V. (“TNT Express”), an international express, small-package ground delivery and freight transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight, Inc. (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“LTL”) freight services. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), form the core of our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments. In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”). FISCAL YEARS . Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2017 or ended May 31 of the year referenced. RECLASSIFICATIONS. Reclassifications have been made to the May 31, 2016 consolidated balance sheet to conform to the current year’s presentation of debt issuance costs. See Note 2 below for additional information regarding recent accounting guidance. PRINCIPLES OF CONSOLIDATION . The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. REVENUE RECOGNITION . We recognize revenue upon delivery of shipments for our transportation businesses and upon completion of services for our business services, logistics and trade services businesses. Transportation services are provided with the use of employees and independent contractors. FedEx is the principal to the transaction for most of these services and revenue from these transactions is recognized on a gross basis. Costs associated with independent contractor settlements are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income. For shipments in transit, revenue is recorded based on the percentage of service completed at the balance sheet date. Estimates for future billing adjustments to revenue and accounts receivable are recognized at the time of shipment for money-back service guarantees and billing corrections. Delivery costs are accrued as incurred. Our contract logistics, global trade services and certain transportation businesses engage in some 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. Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. 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 factors on the composition of accounts receivable. 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 $458 million in 2017, $417 million in 2016 and $403 million in 2015. CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost. PROPERTY AND EQUIPMENT . Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal. For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable. The depreciable lives and net book value of our property and equipment are as follows (dollars in millions): Net Book Value at May 31, Range 2017 2016 Wide-body aircraft and related equipment 15 to 30 years $ 9,103 $ 8,356 Narrow-body and feeder aircraft and related equipment 5 to 18 years 3,099 3,180 Package handling and ground support equipment 3 to 30 years 3,862 3,249 Information technology 2 to 10 years 1,114 1,051 Vehicles 3 to 15 years 3,400 3,084 Facilities and other 2 to 40 years 5,403 5,364 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. In May 2015, we adjusted the depreciable lives of 23 aircraft and 57 engines. Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $2.9 billion in 2017 and $2.6 billion in 2016 and 2015. Depreciation and amortization expense includes amortization of assets under capital lease. CAPITALIZED INTEREST . Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $41 million in 2017, $42 million in 2016 and $37 million in 2015. IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment. In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2017, we had seven aircraft temporarily idled. These aircraft have been idled for an average of 12 months and are expected to return to revenue service. In May 2015, we retired from service seven Boeing MD11 aircraft and 12 related engines, four Airbus A310-300 aircraft and three related engines, three Airbus A300-600 aircraft and three related engines and one Boeing MD10-10 aircraft and three related engines, and related parts. As a consequence, impairment and related charges of $276 million ($175 million, net of tax, or $0.61 per diluted share) were recorded in the fourth quarter of 2015. Of this amount, $246 million was non-cash. The decision to permanently retire these aircraft and engines aligns with FedEx Express’s plans to rationalize capacity and modernize its aircraft fleet to more effectively serve its customers. 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 benefit 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 a two-step process to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. INTANGIBLE ASSETS . Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit 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 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 plan assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate. The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit 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 operating results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets. SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense. LEASES. We lease certain aircraft, facilities, equipment and vehicles under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express and copier usage at FedEx Office. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term. DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions. DERIVATIVE FINANCIAL INSTRUMENTS. Our TNT Express segment maintains a risk management strategy that includes the 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. We account for derivative instruments under the provisions of the accounting guidance related to derivatives and hedging, which requires all derivative instruments to be recognized in the financial statements and measured at fair value, regardless of the purpose or intent for holding them. Derivatives are recognized in our consolidated balance sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recorded in the income statement. We do not have derivatives designated as a cash flow or net investment hedge as of May 31, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in equity at that time, remain in equity until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in equity are immediately transferred to the income statement. The financial statement impact of derivative transactions was immaterial for the years ended May 31, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of accumulated other comprehensive income 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 represent a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. This collective bargaining agreement is scheduled to become amendable in November 2021. In addition to our pilots at FedEx Express, FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain”) has a small number of employees who are members of unions, and certain non-U.S. employees are unionized. STOCK-BASED COMPENSATION. We recognize compensation expense for stock-based awards under the provisions of the accounting guidance related to share-based payments. This guidance requires recognition of compensation expense for stock-based awards using a fair value method. 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 share repurchase program of up to 25 million shares. During 2017, we repurchased 3.0 million shares of FedEx common stock at an average price of $172.13 per share for a total of $509 million. As of May 31, 2017, 16 million shares remained under the share 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 2016, we repurchased 18.2 million shares of FedEx common stock at an average price of $149.35 per share for a total of $2.7 billion. In 2015, we repurchased 8.1 million shares of FedEx common stock at an average price of $154.03 per share for a total of $1.3 billion. DIVIDENDS DECLARED PER COMMON SHARE. On June 12, 2017, our Board of Directors declared a quarterly dividend of $0.50 per share of common stock. The dividend was paid on July 6, 2017 to stockholders of record as of the close of business on June 22, 2017. Each quarterly dividend payment is subject to review and approval by our Board of Directors, and we evaluate our dividend payment amount on an annual basis at the end of each fiscal year. USE OF ESTIMATES . The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations. |
Recent Accounting Guidance
Recent Accounting Guidance | 12 Months Ended |
May 31, 2017 | |
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. During the first quarter of 2017, we retrospectively adopted the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) to simplify the presentation of debt issuance costs. This new guidance requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This new guidance had a minimal impact on our accounting and financial reporting. During the second quarter of 2017, we adopted the Accounting Standards Update issued by the FASB in March 2016 to simplify the accounting for share-based payment transactions. The new guidance requires companies to recognize the income tax effects of awards that vest or are settled as income tax expense or benefit in the income statement as opposed to additional paid-in capital. The guidance also provides clarification of the presentation of certain components of share-based awards in the statement of cash flows. Additionally, the guidance allows companies to make a policy election to account for forfeitures either upon occurrence or by estimating forfeitures. We have elected to continue estimating forfeitures expected to occur in order to determine the amount of compensation cost to be recognized each period and to apply the cash flow classification guidance prospectively. Excess tax benefits are now classified as an operating activity rather than a financing activity. The adoption of the new standard resulted in a benefit to net income of $55 million ($0.17 per diluted share) for the year ended May 31, 2017. The first quarter of 2017 was not recast due to immateriality. On May 28, 2014, the FASB and International Accounting Standards Board issued a new accounting standard that will supersede virtually all existing revenue recognition guidance under generally accepted accounting principles in the United States. This standard will be effective for us beginning in fiscal 2019. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five-step approach for the recognition of revenue. We are continuing to assess the impact of this new standard on our consolidated financial statements and related disclosures, including ongoing contract reviews. We do not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. On February 25, 2016, the FASB issued a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. Based on our lease portfolio, we currently anticipate recognizing a lease liability and related right-of-use asset on the balance sheet in excess of $13 billion with an immaterial impact on our income statement compared to the current lease accounting model. However, the ultimate impact of the standard will depend on the company’s lease portfolio as of the adoption date. We are currently in the process of evaluating our existing lease portfolios, including accumulating all of the necessary information required to properly account for the leases under the new standard. Additionally, we are implementing an enterprise-wide lease management system to assist in the accounting and are evaluating additional changes to our processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. These changes will be effective for our fiscal year beginning June 1, 2019 (fiscal 2020), with a modified retrospective adoption method to the beginning of 2018. In March 2017, the FASB issued an Accounting Standards Update that changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. This new guidance requires entities to report the service cost component in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component outside of income from operations. This standard will impact our operating income but will have no impact on our net income or earnings per share. For example, adoption of this guidance would have reduced 2017 operating income by $471 million but would not have impacted our net income. This new guidance will be effective for our fiscal year beginning June 1, 2018 (fiscal 2019) and will be applied retrospectively. |
Business Combinations
Business Combinations | 12 Months Ended |
May 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 3: BUSINESS COMBINATIONS On May 25, 2016, we acquired TNT Express for €4.4 billion (approximately $4.9 billion). Cash acquired in the acquisition was approximately €250 million ($280 million). All shares associated with the transaction were tendered or transferred as of the third quarter of 2017. We funded the acquisition with proceeds from an April 2016 debt issuance and existing cash balances. The financial results of this business for 2017 are included in the FedEx Express group and the TNT Express segment. Financial results for 2016 were immaterial from the time of acquisition and are included in “Eliminations, corporate and other.” TNT Express collects, transports and delivers documents, parcels and freight to over 200 countries. This strategic acquisition broadens our portfolio of international transportation solutions with the combined strength of TNT Express’s strong European road platform and FedEx Express’s strength in other regions globally. Our purchase price allocation for TNT Express was finalized in the fourth quarter of 2017. As a result of this acquisition, we recognized $3.5 billion of goodwill, which is primarily attributable to the expected benefits from synergies of the combination with existing businesses and growth opportunities and the TNT Express workforce. The majority of the purchase price allocated to goodwill is not deductible for income tax purposes. The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for this acquisition, as well as adjustments made during the measurement period (in millions): Preliminary Measurement Period Final (May 31, 2016) Adjustments (May 31, 2017) Current assets (1) $ 1,905 $ (53 ) $ 1,852 Property and equipment 1,104 (124 ) 980 Goodwill 2,964 488 3,452 Identifiable intangible assets 920 (390 ) 530 Other non-current assets 289 183 472 Current liabilities (2) (1,644 ) (44 ) (1,688 ) Long-term liabilities (644 ) (60 ) (704 ) Total purchase price $ 4,894 $ — $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses. Adjustments to the preliminary purchase price allocation as of May 31, 2016 resulted in a net increase to goodwill of $488 million. These updates were primarily recorded during the second quarter of 2017 and reflect the valuation work completed by third-party experts and the receipt of additional information during the measurement period about facts and circumstances that existed at the acquisition date. The purchase price was allocated to the identifiable intangible assets acquired as follows (in millions): Intangible assets with finite lives Customer relationships (12-year life) $ 430 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 530 See Note 4 for further discussion of our intangible assets. The following unaudited pro forma consolidated financial information presents the combined operations of FedEx and TNT Express as if the acquisition had occurred at the beginning of 2015 (dollars in millions, except per share amounts): (Unaudited) 2016 2015 Consolidated revenues $ 57,899 $ 55,862 Consolidated net income 1,600 638 Diluted earnings per share $ 5.73 $ 2.22 The accounting literature establishes guidelines regarding the presentation of this unaudited pro forma information. Therefore, this unaudited pro forma information is not intended to represent, nor do we believe it is indicative of, the consolidated results of operations of FedEx that would have been reported had the acquisition been completed as of the beginning of 2015. Furthermore, this unaudited pro forma information does not give effect to the anticipated business and tax synergies of the acquisition and is not representative or indicative of the anticipated future consolidated results of operations of FedEx. The unaudited pro forma consolidated financial information reflects our historical financial information and the historical results of TNT Express, after conversion of TNT Express’s accounting methods from International Financial Reporting Standards to U.S. generally accepted accounting principles, adjusted to reflect the acquisition had it been completed as of the beginning of 2015. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting and the financing for the acquisition. The unaudited pro forma financial information includes various assumptions, including those related to the finalization of the purchase price allocation. The tax impact of these adjustments was calculated based on TNT Express’s statutory rate. Included in the unaudited pro forma net income (net of tax) are nonrecurring acquisition-related costs incurred by TNT Express associated with the sale of TNT Express’s airline operations, a condition precedent to the acquisition, and transaction and integration- planning expenses of $115 million in 2016. In addition, the TNT Express results include expenses for restructuring, impairments, litigation matters and pension adjustments of approximately $40 million in 2016 and $320 million in 2015. During 2015, we acquired two businesses that expanded our portfolio in e-commerce and supply chain solutions. On January 30, 2015, we acquired GENCO Distribution System, Inc., now FedEx Supply Chain, a leading North American third-party logistics provider, for $1.4 billion, which was funded using a portion of the proceeds from our January 2015 debt issuance. The financial results of this business are included in the FedEx Ground segment from the date of acquisition. In addition, on December 16, 2014, we acquired Bongo International, LLC, now FedEx CrossBorder, LLC (“FedEx Cross Border”), a leader in cross-border enablement technologies and solutions, for $42 million in cash from operations. The financial results of this business are included in the FedEx Express segment from the date of acquisition. The financial results of the FedEx Supply Chain and FedEx Cross Border businesses were not material, individually or in the aggregate, to our results of operations and therefore, pro forma financial information has not been presented. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions): FedEx Express Segment TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Total Goodwill at May 31, 2015 $ 1,677 $ — $ 1,145 $ 773 $ 1,525 $ 5,120 Accumulated impairment charges — — — (133 ) (1,177 ) (1,310 ) Balance as of May 31, 2015 1,677 — 1,145 640 348 3,810 Goodwill acquired (1) — 2,964 — — — 2,964 Purchase adjustments and other (2) (88 ) — 66 (5 ) — (27 ) Balance as of May 31, 2016 1,589 2,964 1,211 635 348 6,747 Purchase adjustments and other (2) 2,191 (1,784 ) — — — 407 Balance as of May 31, 2017 $ 3,780 $ 1,180 $ 1,211 $ 635 $ 348 $ 7,154 Accumulated goodwill impairment charges as of May 31, 2017 $ — $ — $ — $ (133 ) $ (1,177 ) $ (1,310 ) (1) Goodwill acquired relates to the acquisition of TNT Express in 2016. See Note 3 for related disclosures. (2) Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. FY17 includes goodwill attributed to FedEx Express as part of the acquisition of TNT Express. Our reporting units with significant recorded goodwill include FedEx Express, TNT Express, FedEx Ground, FedEx Freight, FedEx Office (reported in the FedEx Services segment) and FedEx Supply Chain (reported in the FedEx Ground segment). We evaluated reporting units for impairment during the fourth quarter of 2017 and 2016. The estimated fair value of each of these reporting units exceeded their carrying values in 2017 and 2016, and we do not believe that any of these reporting units were impaired as of the balance sheet dates. OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2017 and 2016 is as follows (in millions): 2017 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 656 $ (203 ) $ 453 $ 912 $ (156 ) $ 756 Technology 54 (26 ) 28 123 (16 ) 107 Trademarks and other 136 (88 ) 48 202 (57 ) 145 Total $ 846 $ (317 ) $ 529 $ 1,237 $ (229 ) $ 1,008 Amortization expense for intangible assets was $91 million in 2017, $14 million in 2016 and $21 million in 2015. Expected amortization expense for the next five years is as follows (in millions): 2018 $ 81 2019 71 2020 55 2021 44 2022 41 |
Selected Current Liabilities
Selected Current Liabilities | 12 Months Ended |
May 31, 2017 | |
Accounts Payable And Accrued Liabilities Fair Value Disclosure [Abstract] | |
Selected Current Liabilities | NOTE 5: SELECTED CURRENT LIABILITIES The components of selected current liability captions at May 31 were as follows (in millions): 2017 2016 Accrued Salaries and Employee Benefits Salaries $ 431 $ 478 Employee benefits, including variable compensation 781 804 Compensated absences 702 690 $ 1,914 $ 1,972 Accrued Expenses Self-insurance accruals $ 976 $ 837 Taxes other than income taxes 283 311 Other 1,971 1,915 $ 3,230 $ 3,063 |
Long-Term Debt and Other Financ
Long-Term Debt and Other Financing Arrangements | 12 Months Ended |
May 31, 2017 | |
Debt And Capital Lease Obligations [Abstract] | |
Long-term Debt and Other Financing Arrangements | NOTE 6: LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2017, are as follows (in millions): May 31, 2017 2016 Interest Rate% Maturity Senior unsecured debt: 8.00 2019 $ 749 $ 748 2.30 2020 398 397 2.625-2.70 2023 745 745 4.00 2024 745 744 3.20 2025 695 694 3.25 2026 743 743 3.30 2027 445 — 4.90 2034 495 495 3.90 2035 493 493 3.875-4.10 2043 983 982 5.10 2044 742 741 4.10 2045 640 640 4.55-4.75 2046 2,458 2,458 4.40 2047 734 — 4.50 2065 246 245 7.60 2098 237 237 Euro senior unsecured debt: floating rate 2019 558 557 0.50 2020 557 556 1.00 2023 833 832 1.625 2027 1,382 1,380 Total senior unsecured debt 14,878 13,687 Other debt 9 12 Capital lease obligations 44 63 14,931 13,762 Less current portion 22 29 $ 14,909 $ 13,733 Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our Euro fixed-rate notes is paid annually. Our floating-rate Euro senior notes bear interest at three-month EURIBOR plus a spread of 55 basis points and resets quarterly. The weighted average interest rate on long-term debt was 3.6% in 2017. Long-term debt, exclusive of capital leases, had estimated fair values of $15.5 billion at May 31, 2017 and $14.3 billion at May 31, 2016. 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. On January 6, 2017, we issued $1.2 billion of senior unsecured debt under our current shelf registration statement, comprised of $450 million of 3.30% fixed-rate notes due in March 2027 and $750 million of 4.40% fixed-rate notes due in January 2047. Interest on these notes is paid semiannually. We used the net proceeds for a voluntary incremental contribution in January 2017 to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) and for working capital and general corporate purposes. We have a five-year $1.75 billion revolving credit facility that expires in November 2020. The facility, which includes a $500 million letter of credit sublimit, is available to finance our operations and other cash flow needs. The agreement contains a financial covenant, which requires us to maintain a ratio of debt to consolidated earnings (excluding non-cash pension mark-to-market adjustments and non-cash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 1.9 to 1.0 at May 31, 2017. We believe this covenant is the only significant restrictive covenant in our revolving credit agreement. Our revolving credit agreement contains 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 of our revolving credit agreement and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. As of May 31, 2017, no commercial paper was outstanding. However, we had a total of $317 million in letters of credit outstanding at May 31, 2017, with $183 million of the letter of credit sublimit unused under our revolving credit facility. |
Leases
Leases | 12 Months Ended |
May 31, 2017 | |
Leases [Abstract] | |
Leases | NOTE 7: LEASES We utilize certain aircraft, land, facilities, retail locations and equipment under capital and operating leases that expire at various dates through 2049. We leased 9% of our total aircraft fleet under operating leases as of May 31, 2017 and 10% as of May 31, 2016. A portion of our supplemental aircraft are leased by us under agreements that provide for cancellation upon 30 days’ notice. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings. Rent expense under operating leases for the years ended May 31 was as follows (in millions): 2017 2016 2015 Minimum rentals $ 2,814 $ 2,394 $ 2,249 Contingent rentals (1) 178 214 194 $ 2,992 $ 2,608 $ 2,443 (1) Contingent rentals are based on equipment usage. A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2017 is as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2018 $ 398 $ 2,047 $ 2,445 2019 343 1,887 2,230 2020 261 1,670 1,931 2021 203 1,506 1,709 2022 185 1,355 1,540 Thereafter 175 7,844 8,019 Total $ 1,565 $ 16,309 $ 17,874 Property and equipment recorded under capital leases and future minimum lease payments under capital leases are immaterial. The weighted-average remaining lease term of all operating leases outstanding at May 31, 2017 was approximately six years. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations. FedEx Express makes payments under certain leveraged operating leases that are sufficient to pay principal and interest on certain pass-through certificates. The pass-through certificates are not direct obligations of, or guaranteed by, FedEx or FedEx Express. We are the lessee under certain operating leases covering a portion of our leased aircraft in which the lessors are trusts established specifically to purchase, finance and lease these aircraft to us. These leasing entities are variable interest entities. We are not the primary beneficiary of the leasing entities, as the lease terms are at market at the inception of the lease and do not include a residual value guarantee, fixed-price purchase option or similar feature that obligates us to absorb decreases in value or entitles us to participate in increases in the value of the aircraft. As such, we are not required to consolidate the entity as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments. |
Preferred Stock
Preferred Stock | 12 Months Ended |
May 31, 2017 | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 8: PREFERRED STOCK Our Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 4,000,000 shares of preferred stock. The stock is issuable in series, which may vary as to certain rights and preferences, and has no par value. As of May 31, 2017, none of these shares had been issued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
May 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME The following table provides changes in accumulated other comprehensive income (loss) (“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): 2017 2016 2015 Foreign currency translation gain (loss): Balance at beginning of period $ (514 ) $ (253 ) $ 81 Translation adjustments (171 ) (261 ) (334 ) Balance at end of period (685 ) (514 ) (253 ) Retirement plans adjustments: Balance at beginning of period 345 425 425 Prior service credit and other arising during period 1 (4 ) 72 Reclassifications from AOCI (76 ) (76 ) (72 ) Balance at end of period 270 345 425 Accumulated other comprehensive (loss) income at end of period $ (415 ) $ (169 ) $ 172 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 2017 2016 2015 Amortization of retirement plans prior service credits, before tax $ 120 $ 121 $ 115 Salaries and employee benefits Income tax benefit (44 ) (45 ) (43 ) Provision for income taxes AOCI reclassifications, net of tax $ 76 $ 76 $ 72 Net income |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2017 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Stock-Based Compensation | NOTE 10: STOCK-BASED COMPENSATION Our total stock-based compensation expense for the years ended May 31 was as follows (in millions): 2017 2016 2015 Stock-based compensation expense $ 154 $ 144 $ 133 We have two types of equity-based compensation: stock options and restricted stock. STOCK OPTIONS . Under the provisions of our incentive stock plans, 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 plans, 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 remaining service or vesting period. VALUATION AND ASSUMPTIONS . 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. 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 is a table of the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, and then a discussion of our methodology for developing each of the assumptions used in the valuation model: 2017 2016 2015 Weighted-average Black-Scholes value $ 43.99 $ 52.40 $ 53.33 Intrinsic value of options exercised $ 274 $ 115 $ 253 Black-Scholes Assumptions: Expected lives 6.5 years 6.4 years 6.3 years Expected volatility 25 % 28 % 34 % Risk-free interest rate 1.64 % 1.94 % 2.02 % Dividend yield 0.719 % 0.519 % 0.448 % 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 about stock option activity for the year ended May 31, 2017: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) (1) Outstanding at June 1, 2016 14,441,431 $ 111.99 Granted 2,783,968 169.73 Exercised (3,330,197 ) 100.65 Forfeited (296,503 ) 152.91 Outstanding at May 31, 2017 13,598,699 $ 125.66 6.2 $ 928 Exercisable 7,820,992 $ 100.92 4.7 $ 727 Expected to vest 5,473,800 $ 159.15 8.2 $ 191 Available for future grants 8,304,621 (1) Only presented for options with market value at May 31, 2017 in excess of the exercise price of the option. The options granted during the year ended May 31, 2017 are primarily related to our principal annual stock option grant in June 2016. The following table summarizes information about vested and unvested restricted stock for the year ended May 31, 2017: Restricted Stock Shares Weighted- Average Grant Date Fair Value Unvested at June 1, 2016 389,152 $ 136.57 Granted 153,984 166.12 Vested (177,877 ) 123.25 Forfeited (2,955 ) 159.46 Unvested at May 31, 2017 362,304 $ 155.53 During the year ended May 31, 2016, there were 139,838 shares of restricted stock granted with a weighted-average fair value of $168.83 per share. During the year ended May 31, 2015, there were 154,115 shares of restricted stock granted with a weighted-average fair value of $148.89 per share. The following table summarizes information about stock option vesting during the years ended May 31: Stock Options Vested during the year Fair value (in millions) 2017 2,427,837 $ 104 2016 2,572,129 98 2015 2,611,524 83 As of May 31, 2017, there was $187 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, 2017 represented 8% of the total outstanding common and equity compensation shares and equity compensation shares available for grant. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | NOTE 11: COMPUTATION OF EARNINGS PER SHARE The calculation of basic and diluted earnings per common share for the years ended May 31 was as follows (in millions, except per share amounts): 2017 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 2,993 $ 1,818 $ 1,048 Weighted-average common shares 266 276 283 Basic earnings per common share $ 11.24 $ 6.59 $ 3.70 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 2,993 $ 1,818 $ 1,048 Weighted-average common shares 266 276 283 Dilutive effect of share-based awards 4 3 4 Weighted-average diluted shares 270 279 287 Diluted earnings per common share $ 11.07 $ 6.51 $ 3.65 Anti-dilutive options excluded from diluted earnings per common share 4.5 3.9 2.1 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12: INCOME TAXES The components of the provision for income taxes for the years ended May 31 were as follows (in millions): 2017 2016 2015 Current provision Domestic: Federal $ 269 $ 513 $ 795 State and local 88 72 102 Foreign 285 200 214 642 785 1,111 Deferred provision (benefit) Domestic: Federal 989 155 (474 ) State and local 59 (18 ) (47 ) Foreign (108 ) (2 ) (13 ) 940 135 (534 ) $ 1,582 $ 920 $ 577 Pre-tax earnings of foreign operations for 2017, 2016 and 2015 were $919 million, $905 million and $773 million, respectively. These amounts represent only a portion of total results associated with international shipments and do not represent our international results of operations. A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (35%) to income before taxes for the years ended May 31 is as follows (in millions): 2017 2016 2015 Taxes computed at federal statutory rate $ 1,603 $ 959 $ 569 Increases (decreases) in income tax from: State and local income taxes, net of federal benefit 99 33 36 Foreign operations (87 ) (50 ) (43 ) Legal entity restructuring — (76 ) — TNT Express integration/acquisition costs 25 40 — Other, net (58 ) 14 15 $ 1,582 $ 920 $ 577 Effective Tax Rate 34.6 % 33.6 % 35.5 % Our 2017 tax rate was favorably impacted by $62 million as a result of the implementation of new U.S. foreign currency tax regulations and by $55 million from the adoption of the Accounting Standards Update on share-based payments. Our 2016 tax rate was favorably impacted by $76 million from an internal corporate legal entity restructuring done in anticipation of the integration of the foreign operations of FedEx Express and TNT Express. A lower state tax rate primarily due to the resolution of a state tax matter also provided a benefit to our 2016 tax rate. The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions): 2017 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Property, equipment, leases and intangibles $ 124 $ 4,993 $ 129 $ 4,767 Employee benefits 1,951 — 2,453 — Self-insurance accruals 745 — 681 — Other 692 660 528 343 Net operating loss/credit carryforwards 1,069 — 925 — Valuation allowances (738 ) — (738 ) — $ 3,843 $ 5,653 $ 3,978 $ 5,110 The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions): 2017 2016 Noncurrent deferred tax assets (1) $ 675 $ 435 Noncurrent deferred tax liabilities (2,485 ) (1,567 ) $ (1,810 ) $ (1,132 ) (1) Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. We have approximately $3.6 billion of net operating loss carryovers in various foreign jurisdictions and $663 million of state operating loss carryovers. The valuation allowances primarily represent amounts reserved for operating loss and tax credit carryforwards, which expire over varying periods starting in 2018. The ending valuation allowance balance includes a decrease for changes in forecasted earnings for the foreign branches of FedEx Express which did not impact current year tax expense because they were offset by related U.S. deferred income tax liabilities. This valuation allowance decrease was fully offset by purchase accounting adjustments related to the acquisition of TNT Express and current year activity. We believe that a substantial portion of these deferred tax assets may not be realized. Therefore, we establish valuation allowances if it is more likely than not that deferred income tax assets will not be realized. In making this determination, we consider all available positive and negative evidence and make certain assumptions. We consider, among other things, our future projections of sustained profitability, deferred income tax liabilities, the overall business environment, our historical financial results and potential current and future tax planning strategies. If we were to identify and implement tax planning strategies to recover these deferred tax assets or generate sufficient income of the appropriate character in these jurisdictions in the future, it could lead to the reversal of these valuation allowances and a reduction of income tax expense. 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 sheet. Permanently reinvested earnings of our foreign subsidiaries amounted to $2.1 billion at the end of 2017 and $1.6 billion at the end of 2016. We have not recognized deferred taxes for U.S. federal income tax purposes on those earnings. Were the earnings to be distributed, in the form of dividends or otherwise, these earnings could be subject to U.S. federal income tax and non-U.S. withholding taxes. Unrecognized foreign tax credits potentially could be available to reduce a portion of any U.S. tax liability. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable due to uncertainties related to the timing and source of any potential distribution of such funds, along with other important factors such as the amount of associated foreign tax credits. Cash in offshore jurisdictions associated with our permanent reinvestment strategy totaled $1.2 billion at the end of 2017 and $522 million at the end of 2016. In 2017, approximately 90% of our total enterprise-wide income was earned in U.S. companies of FedEx that are taxable in the United States. As a U.S. airline, our FedEx Express unit is required by Federal Aviation Administration and other rules to conduct its air operations, domestic and international, through a U.S. company. However, we serve more than 220 countries and territories around the world, and are required to establish legal entities in many of them. Most of our entities in those countries are operating entities, engaged in picking up and delivering packages and performing other transportation services. We are continually expanding our global network to meet our customers’ needs, which requires increasing investment outside the U.S. In 2017, we established a new legal entity structure for the integration and operation of FedEx Express and TNT Express. We are subject to taxation in the U.S. and various U.S. state, local and foreign jurisdictions. The Internal Revenue Service is currently auditing our 2014 and 2015 tax returns. It is reasonably possible that certain income tax return proceedings will be completed during the next 12 months and could result in a change in our balance of unrecognized tax benefits. The expected impact of any changes would not be material to our consolidated financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2017 2016 2015 Balance at beginning of year $ 49 $ 36 $ 38 Increases for tax positions taken in the current year — 3 1 Increases for tax positions taken in prior years 8 3 6 Increase for business acquisition 17 25 — Decreases for tax positions taken in prior years (1 ) (5 ) (2 ) Settlements (4 ) (4 ) (2 ) Decreases from lapse of statute of limitations (2 ) (7 ) — Changes due to currency translation — (2 ) (5 ) Balance at end of year $ 67 $ 49 $ 36 Our liabilities recorded for uncertain tax positions include $63 million at May 31, 2017 and $45 million at May 31, 2016 associated with positions that, if favorably resolved, would provide a benefit to our effective tax rate. 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 $11 million on May 31, 2017 and May 31, 2016. Total interest and penalties included in our consolidated statements of income are immaterial. It is difficult to predict the ultimate outcome or the timing of resolution for tax positions. Changes may result from the conclusion of ongoing audits, appeals or litigation in state, local, federal and foreign tax jurisdictions, or from the resolution of various proceedings between U.S. and foreign tax authorities. Our liability for uncertain tax positions includes no matters that are individually or collectively material to us. It is reasonably possible that the amount of the benefit with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months, but an estimate of the range of the reasonably possible changes cannot be made. However, we do not expect that the resolution of any of our uncertain tax positions will have a material effect on us. |
Retirement Plans
Retirement Plans | 12 Months Ended |
May 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | NOTE 13: RETIREMENT PLANS We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans and postretirement healthcare plans. The accounting guidance related to postretirement benefits requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit plans, and the recognition in either expense or AOCI of unrecognized gains or losses and prior service costs or credits. We use mark-to-market 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 projected benefit obligation (“PBO”) of the plan. A summary of our retirement plans costs over the past three years is as follows (in millions): 2017 2016 2015 Defined benefit pension plans $ 234 $ 214 $ (41 ) Defined contribution plans 480 416 385 Postretirement healthcare plans 76 82 81 Retirement plans mark-to-market adjustment (24 ) 1,498 2,190 $ 766 $ 2,210 $ 2,615 The components of the pre-tax mark-to-market adjustments are as follows (in millions): 2017 2016 2015 Actual versus expected return on assets $ (740 ) $ 1,285 $ (35 ) Discount rate changes 266 1,129 791 Demographic assumption experience 450 (916 ) 1,434 Total mark-to-market (gain) loss $ (24 ) $ 1,498 $ 2,190 2017 The actual rate of return on our U.S. Pension Plan assets of 9.6% was higher than our expected return of 6.50% primarily due to a rise in the value of global equity markets in addition to favorable credit market conditions. The weighted average discount rate for all of our pension and postretirement healthcare plans decreased from 4.04% at May 31, 2016 to 3.98% at May 31, 2017. The demographic assumption experience in 2017 reflects an update in mortality tables for U.S. pension and other postemployment benefit plans. 2016 The actual rate of return on our U.S. Pension Plan assets of 1.2% was lower than our expected return of 6.50% primarily due to a challenging environment for global equities and other risk-seeking asset classes. The weighted average discount rate for all of our pension and postretirement healthcare plans declined from 4.38% at May 31, 2015 to 4.04% at May 31, 2016. The demographic assumption experience in 2016 reflects a change in disability rates and an increase in the average retirement age for U.S. pension and other postemployment benefit plans. 2015 The implementation of new U.S. mortality tables in 2015 resulted in an increased participant life expectancy assumption, which increased the overall PBO by $1.2 billion. The weighted average discount rate for all of our pension and postretirement healthcare plans declined from 4.57% at May 31, 2014 to 4.38% at May 31, 2015. 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. Under the Portable Pension Account, 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 Portable Pension Account 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. Our U.S. Pension Plans were amended to permit former employees with a vested traditional pension benefit to make a one-time, irrevocable election to receive their benefits in a lump-sum distribution. Approximately 18,300 former employees elected to receive this lump-sum distribution and a total of approximately $1.3 billion was paid by the plans in May 2017. 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. 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. 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate used to determine benefit obligation 4.08 % 4.13 % 4.42 % 2.43 % 2.46 % 2.95 % 4.32 % 4.43 % 4.60 % Discount rate used to determine net periodic benefit cost 4.13 4.42 4.60 2.46 2.95 3.57 4.43 4.62 4.70 Rate of increase in future compensation levels used to determine benefit obligation 4.47 4.46 4.62 2.42 2.82 3.19 — — — Rate of increase in future compensation levels used to determine net periodic benefit cost 4.46 4.62 4.56 2.82 3.19 3.31 — — — Expected long-term rate of return on assets - Consolidated 6.50 6.50 7.75 — — — — — — Expected long-term rate of return on assets - Segment Reporting 6.50 6.50 6.50 3.18 3.68 5.13 — — — 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; 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 6.50% expected long-term rate of return on our U.S. Pension Plan assets in 2017 and 2016 and 7.75% in 2015. We lowered our EROA assumption in 2016 as we continued to implement our asset and liability management strategy. For the 15-year period ended May 31, 2017, our actual returns were 7.8%. The investment strategy for our U.S. Pension Plan assets is to utilize a diversified mix of global public and private equity portfolios, together with fixed-income portfolios, 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 International Large Cap Equities (which are mainly benchmarked to the S&P 500 Index and other global indices). Accordingly, we do not have any significant concentrations of risk. Active management strategies are utilized within the plan in an effort to realize investment returns in excess of market indices. Our investment strategy also includes the limited use of derivative financial instruments on a discretionary basis to improve investment returns and manage exposure to market risk. In all cases, our investment managers are prohibited from using derivatives for speculative purposes and are not permitted to use derivatives to leverage a portfolio. The following is a description of the valuation methodologies used for investments measured at fair value: • Cash and cash equivalents . These Level 1 investments include cash, cash equivalents and foreign currency valued using exchange rates. These Level 2 investments include short-term investment funds which are collective funds priced at a constant value by the administrator of the funds. • Domestic, international and global equities . These Level 1 investments are valued at the closing price or last trade reported on the major market on which the individual securities are traded. These Level 2 investments include mutual funds. • Fixed income . We determine the fair value of these Level 2 corporate bonds, U.S. and non-U.S. government securities and other fixed income securities by using bid evaluation pricing models or quoted prices of securities with similar characteristics. • Alternative Investments . The valuation of these Level 3 investments requires significant judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Investments in private equity, debt, real estate 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 most significant international pension plans at the measurement date are presented in the following table (in millions): Plan Assets at Measurement Date 2017 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (2) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 1,076 4 % 0 - 5 % $ 26 $ 1,050 Equities 30 - 50 U.S. large cap equity (1) 2,415 10 830 International equities (1) 3,521 14 2,747 157 Global equities (1) 3,276 13 U.S. SMID cap equity 987 4 987 Fixed income securities 50 - 70 Corporate 8,163 33 8,163 Government (1) 4,674 19 3,454 Mortgage-backed and other (1) 603 2 129 Alternative investments (1) 377 2 0 - 5 $ 129 Other (159 ) (1 ) (161 ) 2 Total U.S. plan assets $ 24,933 100 % $ 4,429 $ 12,955 $ 129 Asset Class (International Plans) Cash and cash equivalents $ 48 4 % $ 2 $ 46 Equities International equities (1) 137 11 72 Global equities (1) 202 17 Fixed income securities Corporate (1) 270 22 49 Government (1) 405 34 95 230 Mortgage-backed and other (1) 145 12 Alternative investments 17 1 17 Other (18 ) (1 ) (2 ) (16 ) Total International plan assets $ 1,206 100 % $ 95 $ 398 (1) 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. (2) Target ranges have not been provided for international plan assets as they are managed at an individual country level. Plan Assets at Measurement Date 2016 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (2) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 568 2 % 0 - 5 % $ 76 $ 492 Equities 35 - 55 U.S. large cap equity (1) 3,257 14 750 International equities (1) 3,381 15 2,685 121 Global equities (1) 2,794 12 U.S. SMID cap equity 913 4 913 Fixed income securities 45 - 65 Corporate 6,608 29 6,608 Government 5,148 22 5,148 Mortgage-backed and other (1) 347 2 146 Alternative investments (1) 322 1 0 - 5 $ 48 Other (321 ) (1 ) (305 ) (16 ) Total U.S. plan assets $ 23,017 100 % $ 4,119 $ 12,499 $ 48 Asset Class (International Plans) Cash and cash equivalents $ 211 19 % $ 157 $ 54 Equities International equities (1) 124 11 63 Global equities (1) 148 14 Fixed income securities Corporate (1) 122 11 44 Government (1) 324 30 60 213 Mortgage-backed and other (1) 134 12 Alternative investments (1) 39 4 18 Other (10 ) (1 ) (14 ) 4 Total International plan assets $ 1,092 100 % $ 203 $ 396 (1) 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. (2) Target ranges have not been provided for international plan assets as they are managed at an individual country level. 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 2017 2016 Balance at beginning of year $ 48 $ — Actual return on plan assets: Assets held during current year 5 2 Assets sold during the year 1 — Purchases, sales and settlements 75 46 Balance at end of year $ 129 $ 48 The following table provides 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, 2017 and a statement of the funded status as of May 31, 2017 and 2016 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2017 2016 2017 2016 2017 2016 Accumulated Benefit Obligation (“ABO”) $ 27,244 $ 27,236 $ 1,842 $ 1,609 Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) PBO/APBO at the beginning of year $ 27,804 $ 26,636 $ 1,798 $ 876 $ 905 $ 929 Service cost 638 622 83 40 36 40 Interest cost 1,128 1,155 43 25 39 42 Actuarial loss 571 284 161 (7 ) (14 ) (64 ) Benefits paid (2,271 ) (893 ) (38 ) (19 ) (72 ) (78 ) Business acquisition — — — 907 — — Purchase accounting adjustment — — 26 — — — Other — — (30 ) (24 ) 33 36 PBO/APBO at the end of year $ 27,870 $ 27,804 $ 2,043 $ 1,798 $ 927 $ 905 Change in Plan Assets Fair value of plan assets at the beginning of year $ 23,017 $ 23,006 $ 1,254 $ 499 $ — $ — Actual return on plan assets 2,167 211 112 12 — — Company contributions 2,020 693 95 33 36 42 Benefits paid (2,271 ) (893 ) (38 ) (19 ) (72 ) (78 ) Business acquisition — — — 761 — — Other — — (44 ) (32 ) 36 36 Fair value of plan assets at the end of year $ 24,933 $ 23,017 $ 1,379 $ 1,254 $ — $ — Funded Status of the Plans $ (2,937 ) $ (4,787 ) $ (664 ) $ (544 ) $ (927 ) $ (905 ) Amount Recognized in the Balance Sheet at May 31: Noncurrent asset $ — $ — $ 40 $ 53 $ — $ — Current pension, postretirement healthcare and other benefit obligations (33 ) (19 ) (17 ) (12 ) (39 ) (40 ) Noncurrent pension, postretirement healthcare and other benefit obligations (2,904 ) (4,768 ) (687 ) (585 ) (888 ) (865 ) Net amount recognized $ (2,937 ) $ (4,787 ) $ (664 ) $ (544 ) $ (927 ) $ (905 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: Prior service credit and other $ (410 ) $ (528 ) $ (13 ) $ (18 ) $ (4 ) $ — Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost: Prior service credit and other $ (118 ) $ (118 ) $ (2 ) $ (3 ) $ — $ — Our pension plans included the following components at May 31 (in millions): PBO Fair Value of Plan Assets Funded Status 2017 Qualified $ 27,600 $ 24,933 $ (2,667 ) Nonqualified 270 — (270 ) International Plans 2,043 1,379 (664 ) Total $ 29,913 $ 26,312 $ (3,601 ) 2016 Qualified $ 27,543 $ 23,017 $ (4,526 ) Nonqualified 261 — (261 ) International Plans 1,798 1,254 (544 ) Total $ 29,602 $ 24,271 $ (5,331 ) The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following table presents 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 2017 2016 U.S. Pension Benefits Fair value of plan assets $ 24,933 $ 23,017 PBO (27,870 ) (27,804 ) Net funded status $ (2,937 ) $ (4,787 ) International Pension Benefits Fair value of plan assets $ 952 $ 850 PBO (1,656 ) (1,447 ) Net funded status $ (704 ) $ (597 ) ABO Exceeds the Fair Value of Plan Assets 2017 2016 U.S. Pension Benefits ABO (1) $ (27,244 ) $ (27,236 ) Fair value of plan assets 24,933 23,017 PBO (27,870 ) (27,804 ) Net funded status $ (2,937 ) $ (4,787 ) International Pension Benefits ABO (1) $ (1,433 ) $ (1,257 ) Fair value of plan assets 928 848 PBO (1,626 ) (1,445 ) Net funded status $ (698 ) $ (597 ) (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): 2017 2016 Required $ 459 $ 8 Voluntary 1,541 652 $ 2,000 $ 660 For 2018, we anticipate making contributions to our U.S. Pension Plans totaling $1.0 billion (approximately $700 million of which are expected to be required). 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 638 $ 622 $ 615 $ 83 $ 40 $ 38 $ 36 $ 40 $ 40 Interest cost 1,128 1,155 1,068 43 25 28 39 42 41 Expected return on plan assets (1,501 ) (1,490 ) (1,655 ) (38 ) (18 ) (23 ) — — — Amortization of prior service credit (118 ) (118 ) (112 ) (2 ) (3 ) (3 ) — — — Actuarial losses (gains) and other (95 ) 1,563 2,154 87 (1 ) 36 (14 ) (64 ) 6 Net periodic benefit cost $ 52 $ 1,732 $ 2,070 $ 173 $ 43 $ 76 $ 61 $ 18 $ 87 Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions): 2017 2016 U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Prior service cost (credit) arising during period $ — $ — $ 1 $ 1 $ (3 ) $ (2 ) $ — $ — $ — $ — $ — $ — Amortizations: Prior services credit 118 74 2 2 — — 118 74 3 2 — — Total recognized in OCI $ 118 $ 74 $ 3 $ 3 $ (3 ) $ (2 ) $ 118 $ 74 $ 3 $ 2 $ — $ — 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 2018 $ 1,013 $ 44 $ 39 2019 1,070 43 40 2020 1,169 48 42 2021 1,233 53 42 2022 1,345 59 43 2023-2027 8,565 789 246 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 7.8% during 2018, decreasing to an annual growth rate of 4.50% in 2037 and thereafter. A 1% change in these annual trend rates would not have a significant impact on the APBO at May 31, 2017 or 2017 benefit expense because the level of these benefits is capped. |
Business Segment Information
Business Segment Information | 12 Months Ended |
May 31, 2017 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Business Segment Information | NOTE 14: BUSINESS SEGMENT INFORMATION FedEx Express, TNT Express, FedEx Ground and FedEx Freight represent our major service lines and, along with FedEx Services, form the core of our reportable segments. Our reportable segments include the following businesses: FedEx Express Segment FedEx Express (express transportation) FedEx Trade Networks (air and ocean freight forwarding, customs brokerage and cross-border enablement technology and solutions) FedEx SupplyChain Systems (logistics services) TNT Express Segment TNT Express (international express transportation, small-package ground delivery and freight transportation) FedEx Ground Segment FedEx Ground (small-package ground delivery) FedEx Supply Chain (third-party logistics) (formerly GENCO) FedEx Freight Segment FedEx Freight (LTL freight transportation) FedEx Custom Critical (time-critical transportation) FedEx Services Segment FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services and back-office functions) FedEx Office (document and business services and package acceptance) During 2017, we announced that products and solutions offered by FedEx SupplyChain Systems would be combined with similar offerings within FedEx Custom Critical, FedEx Express and FedEx Supply Chain (formerly GENCO) effective June 1, 2017. In addition, during 2017, we rebranded GENCO to FedEx Supply Chain. FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information technology functions in shared services operations that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express and TNT Express, some of these functions are performed on a regional basis and reported by each respective company in their natural expense line items. The FedEx Services segment includes: FedEx Services, which provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S. customers of our major business units and certain back-office support to our other companies; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses. The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. Other Intersegment Transactions Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenues of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenues and expenses are eliminated in our consolidated results and are not separately identified in the following segment information, because the amounts are not material. Corporate and other includes corporate headquarters costs for executive officers and certain legal and financial functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the business segments. In 2017, the year-over-year decrease in these costs was driven by the change in the MTM retirement plans adjustment and the year-over-year decrease in charges for legal reserves, which were partially offset by higher TNT Express integration expenses incurred at the corporate level. The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31: FedEx Express Segment TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Eliminations, corporate and other (5) Consolidated Total Revenues 2017 $ 27,358 $ 7,401 $ 18,075 $ 6,443 $ 1,621 $ (579 ) $ 60,319 2016 26,451 N/A 16,574 6,200 1,593 (453 ) 50,365 2015 27,239 N/A 12,984 6,191 1,545 (506 ) 47,453 Depreciation and amortization 2017 $ 1,431 $ 239 $ 684 $ 269 $ 371 $ 1 $ 2,995 2016 1,385 N/A 608 248 384 6 2,631 2015 1,460 N/A 530 230 390 1 2,611 Operating income 2017 (1) $ 2,678 $ 84 $ 2,292 $ 397 $ — $ (414 ) $ 5,037 2016 (2) 2,519 N/A 2,276 426 — (2,144 ) 3,077 2015 (3) 1,584 N/A 2,172 484 — (2,373 ) 1,867 Segment assets (4) 2017 $ 24,882 $ 6,939 $ 14,628 $ 3,925 $ 5,682 $ (7,504 ) $ 48,552 2016 21,205 N/A 13,098 3,749 5,390 2,517 45,959 2015 20,382 N/A 11,691 3,471 5,356 (4,431 ) 36,469 (1) Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. (2) Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. (3) Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. (4) Segment assets include intercompany receivables. (5) Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). 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 TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Other Consolidated Total 2017 $ 2,525 $ 205 $ 1,539 $ 431 $ 416 $ — $ 5,116 2016 2,356 N/A 1,597 433 432 — 4,818 2015 2,380 N/A 1,248 337 381 1 4,347 The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions): 2017 2016 2015 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 6,958 $ 6,763 $ 6,704 U.S. overnight envelope 1,750 1,662 1,629 U.S. deferred 3,528 3,379 3,342 Total U.S. domestic package revenue 12,236 11,804 11,675 International priority 5,827 5,697 6,251 International economy 2,412 2,282 2,301 Total international export package revenue 8,239 7,979 8,552 International domestic (1) 1,299 1,285 1,406 Total package revenue 21,774 21,068 21,633 Freight: U.S. 2,528 2,481 2,300 International priority 1,502 1,384 1,588 International airfreight 118 126 180 Total freight revenue 4,148 3,991 4,068 Other (2) 1,436 1,392 1,538 Total FedEx Express segment 27,358 26,451 27,239 TNT Express segment 7,401 N/A N/A FedEx Ground segment: FedEx Ground 16,497 15,050 12,568 FedEx Supply Chain 1,578 1,524 416 Total FedEx Ground segment 18,075 16,574 12,984 FedEx Freight segment 6,443 6,200 6,191 FedEx Services segment 1,621 1,593 1,545 Other and eliminations (3) (579 ) (453 ) (506 ) $ 60,319 $ 50,365 $ 47,453 GEOGRAPHICAL INFORMATION (4) Revenues: U.S. $ 40,269 $ 38,070 $ 34,216 International: FedEx Express segment 12,094 11,672 12,772 TNT Express segment 7,346 N/A N/A FedEx Ground segment 451 383 311 FedEx Freight segment 149 137 142 FedEx Services segment 10 10 12 Other (3) — 93 — Total international revenue 20,050 12,295 13,237 $ 60,319 $ 50,365 $ 47,453 Noncurrent assets: U.S. $ 28,141 $ 25,942 $ 23,520 International 7,783 8,028 2,614 $ 35,924 $ 33,970 $ 26,134 (1) International domestic revenues represent our intra-country operations. (2) Includes FedEx Trade Networks and FedEx SupplyChain Systems. (3) Includes TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). (4) International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
May 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | NOTE 15: SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions): 2017 2016 2015 Cash payments for: Interest (net of capitalized interest) $ 484 $ 321 $ 201 Income taxes $ 397 $ 996 $ 1,122 Income tax refunds received (20 ) (5 ) (9 ) Cash tax payments, net $ 377 $ 991 $ 1,113 |
Guarantees and Indemnifications
Guarantees and Indemnifications | 12 Months Ended |
May 31, 2017 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | NOTE 16: GUARANTEES AND INDEMNIFICATIONS In conjunction with certain transactions, primarily the lease, sale or purchase of operating assets or services in the ordinary course of business and in connection with business acquisitions, we may provide routine guarantees or indemnifications (e.g., environmental, fuel, tax and software 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. |
Commitments
Commitments | 12 Months Ended |
May 31, 2017 | |
Commitments [Abstract] | |
Commitments | NOTE 17: COMMITMENTS Annual purchase commitments under various contracts as of May 31, 2017 were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2018 $ 1,777 $ 1,440 $ 3,217 2019 1,729 508 2,237 2020 1,933 400 2,333 2021 1,341 309 1,650 2022 1,276 198 1,474 Thereafter 2,895 499 3,394 Total $ 10,951 $ 3,354 $ 14,305 (1) Primarily equipment, advertising contracts and, in 2018, approximately $700 million of estimated required quarterly contributions to our U.S. Pension Plans. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of May 31, 2017, our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and six Boeing 777 Freighter (“B777F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. We have several aircraft modernization programs underway that are supported by the purchase of B777F and B767F aircraft. These aircraft are significantly more fuel-efficient per unit than the aircraft types previously utilized, and these expenditures are necessary to achieve significant long-term operating savings and to replace older aircraft. Our ability to delay the timing of these aircraft-related expenditures is limited without incurring significant costs to modify existing purchase agreements. In 2017, FedEx Express entered into agreements to accelerate the delivery of two B767F aircraft to 2017 from 2018 and two B777F aircraft to 2018 from 2023. We had $729 million in deposits and progress payments as of May 31, 2017 on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our consolidated balance sheets. Aircraft and aircraft-related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of May 31, 2017, with the year of expected delivery: B767F B777F Total 2018 14 4 18 2019 15 2 17 2020 16 3 19 2021 10 3 13 2022 10 4 14 Thereafter 6 - 6 Total 71 16 87 |
Contingencies
Contingencies | 12 Months Ended |
May 31, 2017 | |
Loss Contingency [Abstract] | |
Contingencies | NOTE 18: CONTINGENCIES Independent Contractor — Lawsuits and State Administrative Proceedings. FedEx Ground is involved in class-action lawsuits, individual lawsuits and state tax and other administrative proceedings that claim that the company’s owner-operators under a contractor model no longer in use should have been treated as employees, rather than independent contractors. Most of the class-action lawsuits were consolidated for administration of the pre-trial proceedings by a single federal court, the U.S. District Court for the Northern District of Indiana. The multidistrict litigation court granted class certification in 28 cases and denied it in 14 cases. On December 13, 2010, the court entered an opinion and order addressing all outstanding motions for summary judgment on the status of the owner-operators (i.e., independent contractor vs. employee). In sum, the court ruled on our summary judgment motions and entered judgment in favor of FedEx Ground on all claims in 20 of the 28 multidistrict litigation cases that had been certified as class actions, finding that the owner-operators in those cases were contractors as a matter of the law of 20 states. The plaintiffs filed notices of appeal in all of these 20 cases. The Seventh Circuit heard the appeal in the Kansas case in January 2012 and, in July 2012, issued an opinion that did not make a determination with respect to the correctness of the district court’s decision and, instead, certified two questions to the Kansas Supreme Court related to the classification of the plaintiffs as independent contractors under the Kansas Wage Payment Act. The other 19 cases that are before the Seventh Circuit were stayed. On October 3, 2014, the Kansas Supreme Court determined that a 20 factor right to control test applies to claims under the Kansas Wage Payment Act and concluded that under that test, the class members were employees, not independent contractors. The case was subsequently transferred back to the Seventh Circuit, where both parties made filings requesting the action necessary to complete the resolution of the appeals. The parties also made recommendations to the court regarding next steps for the other 19 cases that are before the Seventh Circuit. FedEx Ground requested that each of those cases be separately briefed given the potential differences in the applicable state law from that in Kansas. On July 8, 2015, the Seventh Circuit issued an order and opinion confirming the decision of the Kansas Supreme Court, concluding that the class members were employees, not independent contractors. Additionally, the Seventh Circuit referred the other 19 cases to a representative of the court for purposes of setting a case management conference to address briefing and argument for those cases. During the second quarter of 2015, we established an accrual for the estimated probable loss in the Kansas case. In the second quarter of 2016 the Kansas case settled, and we increased the accrual to the amount of the settlement. During the third quarter of 2016, we reached agreements in principle to settle all of the 19 cases on appeal in the multidistrict independent contractor litigation. We recognized a liability for the expected loss (net of recognized insurance recovery) related to these cases and certain other pending independent-contractor-related proceedings of $204 million. The Kansas case was remanded to the multidistrict litigation court, and the other 19 cases remained at the Seventh Circuit; however, approval proceedings were conducted primarily by the multidistrict litigation court. Plaintiffs filed motions for preliminary approval between June 15 and June 30, 2016, and on August 3 and 4, 2016, the multidistrict litigation court issued orders indicating that it would grant preliminary approval if the Seventh Circuit would remand the cases on appeal for the purpose of entering approval orders. Upon the parties’ joint motion, the Seventh Circuit remanded the cases for this purpose on August 10, 2016, and the multidistrict litigation court entered orders preliminarily approving the settlements on August 17, 2016. Fairness hearings were originally scheduled for January 23 and 24, 2017, but were held on March 13 and 14, 2017. On March 15, 2017, the court issued orders indicating that it would grant final approval of each settlement if the Seventh Circuit remanded the cases on appeal for the purpose of considering and granting final approval. In a series of orders and judgments issued on April 29, May 1, and June 21, 2017, the court granted final approval of all 20 settlements. The multidistrict litigation court remanded the other eight certified class actions back to the district courts where they were originally filed because its summary judgment ruling did not completely dispose of all of the claims in those lawsuits. Seven of these matters settled for immaterial amounts and have received court approval. The case in California was appealed to the Ninth Circuit Court of Appeals, where the court reversed the district court decisions and held that the plaintiffs in California were employees as a matter of law and remanded the cases to the district court for further proceedings. In the first quarter of 2015, we recognized an accrual for the then-estimated probable loss in this case. In June 2015, the parties in the California case reached an agreement to settle the matter for $228 million, and in the fourth quarter of 2015 we increased the accrual to that amount. The court entered final judgment on June 20, 2016, and two objectors to the settlement filed appeals with the Ninth Circuit. One objector has settled with plaintiffs’ counsel, and the appeal by the second objector was briefed in the fourth quarter of 2017. The court has indicated that it will schedule argument on the objector’s appeal for the second quarter of 2018. The settlement is not effective until all appeals have been resolved without affecting the court’s approval of the settlement. In addition, we are defending contractor-model cases that are not or are no longer part of the multidistrict litigation. These cases are in varying stages of litigation. We do not expect to incur a material loss in these matters; however, it is reasonably possible that potential loss in some of these lawsuits or changes to the independent contractor status of FedEx Ground’s owner-operators could be material. In these cases, we continue to evaluate what facts may arise in the course of discovery and what legal rulings the courts may render and how these facts and rulings might impact the loss. For a number of reasons, we are not currently able to estimate a range of reasonably possible loss in these cases. The number and identities of plaintiffs in these lawsuits are uncertain, as they are dependent on how the class of drivers is defined and how many individuals will qualify based on whatever criteria may be established. In addition, the parties have conducted only very limited discovery into damages in certain of these cases, which could vary considerably from plaintiff to plaintiff and be dependent on evidence pertaining to individual plaintiffs, which has yet to be produced in the cases. Further, the range of potential loss could be impacted substantially by future rulings by the court, including on the merits of the claims, on FedEx Ground’s defenses, and on evidentiary issues. As a consequence of these factors, as well as others that are specific to these cases, we are not currently able to estimate a range of reasonably possible loss. We do not believe that a material loss is probable in these matters. Adverse determinations in matters related to FedEx Ground’s independent contractors could, among other things, entitle certain owner-operators and their drivers to the reimbursement of certain expenses and to the benefit of wage-and-hour laws and result in employment and withholding tax and benefit liability for FedEx Ground. We believe that FedEx Ground’s owner-operators are properly classified as independent contractors and that FedEx Ground is not an employer of the drivers of the company’s independent contractors. City and State of New York Cigarette Suit. The City of New York and the State of New York filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground’s alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York’s Public Health Law, as well as common law nuisance claims. In April 2016, the two lawsuits were consolidated and will now proceed as one lawsuit. The first-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, and the second-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers; none of these shippers continue to ship in our network. Following motions to dismiss filed in both lawsuits, some of the claims were dismissed entirely or limited. In the first-filed lawsuit, the New York Public Health Law and common law nuisance claims were dismissed and the plaintiffs voluntarily dismissed another claim. In the second-filed lawsuit, the common law nuisance claim has been dismissed entirely and the New York Public Health Law claim has been limited to claims arising after September 27, 2013, when an amendment to that law provided enforcement authority to the City of New York and State of New York. Other claims, including the RICO claims, remain in both lawsuits. The likelihood of loss is reasonably possible, but the amount of loss cannot be estimated at this stage of the litigation and we expect the amount of any loss to be immaterial. On July 10, 2017, the City of New York and the State of New York filed a third lawsuit against FedEx Ground and included FedEx Freight as a co-defendant. This new case identifies no shippers or shipments, but generally alleges violations of the same laws that are the subject of the other two lawsuits. The amount or reasonable range of loss, if any, cannot be estimated at this stage of the lawsuit. Environmental Matters . SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that management reasonably believes could exceed $100,000. On September 9, 2016, FedEx Supply Chain received a written offer from several District Attorneys’ Offices in California to settle a civil action that the District Attorneys intend to file against FedEx Supply Chain for alleged violations of the state’s hazardous waste regulations. Specifically, the District Attorneys’ Offices allege FedEx Supply Chain unlawfully disposed of hazardous waste at one of its California facilities and caused the illegal transportation and disposal of hazardous waste from the retail stores of a FedEx Supply Chain customer at this same facility. The District Attorneys allege these violations began in 2006 and continued until the facility closed in the spring of 2015. We believe an immaterial loss in this matter is probable. The District Attorneys are also investigating FedEx Supply Chain’s hazardous waste activities at eight additional facilities within California. We will pursue all available remedies against the sellers of GENCO to recover any losses in these matters. Other Matters. During the third quarter of 2017, FedEx Trade Networks informed U.S. Customs and Border Protection that in connection with certain customs entries it may have made improper claims for (i) reduced-duty treatment and (ii) duty-free treatment. Loss in these matters is probable, and in the fourth quarter of 2017 we established accruals totaling $39.3 million for the currently estimated probable loss for these matters. FedEx Trade Networks is continuing to review these matters, however, and a material loss is reasonably possible. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime or were not provided work breaks or other benefits. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
May 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 19: RELATED PARTY TRANSACTIONS Our Chairman and Chief Executive Officer, Frederick W. Smith, currently holds an approximate 10% ownership interest in the National Football League Washington Redskins professional football team and is a member of its board of directors. FedEx has a multi-year naming rights agreement with Washington Football, Inc. granting us certain marketing rights, including the right to name the stadium where the team plays and other events are held “FedExField.” |
Summary of Quarterly Operating
Summary of Quarterly Operating Results (Unaudited) | 12 Months Ended |
May 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results (Unaudited) | NOTE 20: SUMMARY OF QUARTERLY OPERATING RESULTS (UNAUDITED) (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 (1) Revenues $ 14,663 $ 14,931 $ 14,997 $ 15,728 Operating income 1,264 1,167 1,025 1,581 Net income 715 700 562 1,020 Basic earnings per common share (2) 2.69 2.63 2.11 3.81 Diluted earnings per common share (2) 2.65 2.59 2.07 3.75 2016 (3) Revenues $ 12,279 $ 12,453 $ 12,654 $ 12,979 Operating income (loss) 1,144 1,137 864 (68 ) Net income (loss) 692 691 507 (70 ) Basic earnings (loss) per common share (2) 2.45 2.47 1.86 (0.26 ) Diluted earnings (loss) per common share (2) 2.42 2.44 1.84 (0.26 ) (1) The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. (2) The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. (3) The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
May 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | NOTE 21: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS We are required to present condensed consolidating financial information in order for the subsidiary guarantors of our public debt to continue to be exempt from reporting under the Securities Exchange Act of 1934, as amended. The guarantor subsidiaries, which are 100% owned by FedEx, guarantee $14.8 billion of our public debt. The guarantees are full and unconditional and joint and several. Our guarantor subsidiaries were not determined using geographic, service line or other similar criteria, and as a result, the “Guarantor Subsidiaries” and “Non-guarantor Subsidiaries” columns each include portions of our domestic and international operations. Accordingly, this basis of presentation is not intended to present our financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. Condensed consolidating financial statements for our guarantor subsidiaries and non-guarantor subsidiaries are presented in the following tables (in millions): CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 Receivables, less allowances 3 4,729 2,928 (61 ) 7,599 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 25 787 248 — 1,060 Total current assets 1,912 5,841 4,983 (108 ) 12,628 PROPERTY AND EQUIPMENT, AT COST 22 47,201 3,403 — 50,626 Less accumulated depreciation and amortization 18 23,211 1,416 — 24,645 Net property and equipment 4 23,990 1,987 — 25,981 INTERCOMPANY RECEIVABLE 1,521 2,607 — (4,128 ) — GOODWILL — 1,571 5,583 — 7,154 INVESTMENT IN SUBSIDIARIES 27,712 2,636 — (30,348 ) — OTHER ASSETS 3,494 1,271 1,249 (3,225 ) 2,789 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 9 $ 13 $ — $ 22 Accrued salaries and employee benefits 72 1,335 507 — 1,914 Accounts payable 10 1,411 1,439 (108 ) 2,752 Accrued expenses 991 1,522 717 — 3,230 Total current liabilities 1,073 4,277 2,676 (108 ) 7,918 LONG-TERM DEBT, LESS CURRENT PORTION 14,641 244 24 — 14,909 INTERCOMPANY PAYABLE — — 4,128 (4,128 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 5,472 238 (3,225 ) 2,485 Other liabilities 2,856 3,448 863 — 7,167 Total other long-term liabilities 2,856 8,920 1,101 (3,225 ) 9,652 STOCKHOLDERS’ INVESTMENT 16,073 24,475 5,873 (30,348 ) 16,073 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 Receivables, less allowances 1 4,461 2,831 (41 ) 7,252 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 233 724 246 — 1,203 Total current assets 2,208 5,511 4,354 (84 ) 11,989 PROPERTY AND EQUIPMENT, AT COST 22 43,760 3,236 — 47,018 Less accumulated depreciation and amortization 17 21,566 1,151 — 22,734 Net property and equipment 5 22,194 2,085 — 24,284 INTERCOMPANY RECEIVABLE 2,437 1,284 — (3,721 ) — GOODWILL — 1,571 5,176 — 6,747 INVESTMENT IN SUBSIDIARIES 24,766 3,697 — (28,463 ) — OTHER ASSETS 3,359 967 1,851 (3,238 ) 2,939 $ 32,775 $ 35,224 $ 13,466 $ (35,506 ) $ 45,959 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 13 $ 16 $ — $ 29 Accrued salaries and employee benefits 54 1,377 541 — 1,972 Accounts payable 8 1,501 1,519 (84 ) 2,944 Accrued expenses 883 1,411 769 — 3,063 Total current liabilities 945 4,302 2,845 (84 ) 8,008 LONG-TERM DEBT, LESS CURRENT PORTION 13,451 245 37 — 13,733 INTERCOMPANY PAYABLE — — 3,721 (3,721 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,436 369 (3,238 ) 1,567 Other liabilities 4,595 3,375 897 — 8,867 Total other long-term liabilities 4,595 7,811 1,266 (3,238 ) 10,434 STOCKHOLDERS’ INVESTMENT 13,784 22,866 5,597 (28,463 ) 13,784 $ 32,775 $ 35,224 $ 13,466 $ (35,506 ) $ 45,959 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 44,823 $ 15,798 $ (302 ) $ 60,319 OPERATING EXPENSES: Salaries and employee benefits 123 16,696 4,723 — 21,542 Purchased transportation — 8,260 5,495 (125 ) 13,630 Rentals and landing fees 5 2,517 724 (6 ) 3,240 Depreciation and amortization 1 2,538 456 — 2,995 Fuel — 2,476 297 — 2,773 Maintenance and repairs 1 2,086 287 — 2,374 Retirement plans mark-to-market adjustment — (75 ) 51 — (24 ) Intercompany charges, net (434 ) 182 252 — — Other 304 5,734 2,885 (171 ) 8,752 — 40,414 15,170 (302 ) 55,282 OPERATING INCOME — 4,409 628 — 5,037 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,997 68 — (3,065 ) — Interest, net (507 ) 27 1 — (479 ) Intercompany charges, net 508 (296 ) (212 ) — — Other, net (1 ) (134 ) 156 — 21 INCOME BEFORE INCOME TAXES 2,997 4,074 573 (3,065 ) 4,579 Provision for income taxes — 1,439 143 — 1,582 NET INCOME $ 2,997 $ 2,635 $ 430 $ (3,065 ) $ 2,997 COMPREHENSIVE INCOME $ 2,922 $ 2,580 $ 314 $ (3,065 ) $ 2,751 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 42,143 $ 8,547 $ (325 ) $ 50,365 OPERATING EXPENSES: Salaries and employee benefits 119 15,880 2,582 — 18,581 Purchased transportation — 7,380 2,720 (134 ) 9,966 Rentals and landing fees 5 2,484 371 (6 ) 2,854 Depreciation and amortization 1 2,399 231 — 2,631 Fuel — 2,324 75 — 2,399 Maintenance and repairs 1 1,954 153 — 2,108 Retirement plans mark-to-market adjustment — 1,414 84 — 1,498 Intercompany charges, net (645 ) 425 220 — — Other 519 5,274 1,643 (185 ) 7,251 — 39,534 8,079 (325 ) 47,288 OPERATING INCOME — 2,609 468 — 3,077 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,820 279 — (2,099 ) — Interest, net (355 ) 27 13 — (315 ) Intercompany charges, net 369 (354 ) (15 ) — — Other, net (14 ) (14 ) 6 — (22 ) INCOME BEFORE INCOME TAXES 1,820 2,547 472 (2,099 ) 2,740 Provision for income taxes — 818 102 — 920 NET INCOME $ 1,820 $ 1,729 $ 370 $ (2,099 ) $ 1,820 COMPREHENSIVE INCOME $ 1,746 $ 1,704 $ 128 $ (2,099 ) $ 1,479 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2015 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 39,420 $ 8,414 $ (381 ) $ 47,453 OPERATING EXPENSES: Salaries and employee benefits 106 14,626 2,378 — 17,110 Purchased transportation — 5,802 2,878 (197 ) 8,483 Rentals and landing fees 5 2,322 360 (5 ) 2,682 Depreciation and amortization 1 2,370 240 — 2,611 Fuel — 3,632 88 — 3,720 Maintenance and repairs 1 1,949 149 — 2,099 Impairment and other charges — 276 — — 276 Retirement plans mark-to-market adjustment — 2,075 115 — 2,190 Intercompany charges, net (450 ) 117 333 — — Other 337 4,946 1,311 (179 ) 6,415 — 38,115 7,852 (381 ) 45,586 OPERATING INCOME — 1,305 562 — 1,867 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,050 337 — (1,387 ) — Interest, net (247 ) 23 3 — (221 ) Intercompany charges, net 253 (265 ) 12 — — Other, net (6 ) (32 ) 19 — (19 ) INCOME BEFORE INCOME TAXES 1,050 1,368 596 (1,387 ) 1,627 Provision for income taxes — 390 187 — 577 NET INCOME $ 1,050 $ 978 $ 409 $ (1,387 ) $ 1,050 COMPREHENSIVE INCOME $ 1,053 $ 929 $ 121 $ (1,387 ) $ 716 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,155 ) $ 5,254 $ 835 $ (4 ) $ 4,930 INVESTING ACTIVITIES Capital expenditures — (4,694 ) (422 ) — (5,116 ) Proceeds from asset dispositions and other 34 25 76 — 135 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 34 (4,669 ) (346 ) — (4,981 ) FINANCING ACTIVITIES Net transfers from (to) Parent 421 (518 ) 97 — — Payment on loan between subsidiaries 41 (15 ) (26 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (55 ) (27 ) — (82 ) Proceeds from debt issuance 1,190 — — — 1,190 Proceeds from stock issuances 337 — — — 337 Dividends paid (426 ) — — — (426 ) Purchase of treasury stock (509 ) — — — (509 ) Other, net (12 ) (13 ) 43 — 18 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,042 (600 ) 86 — 528 Effect of exchange rate changes on cash (11 ) 14 (45 ) — (42 ) Net increase (decrease) in cash and cash equivalents (90 ) (1 ) 530 (4 ) 435 Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (831 ) $ 5,932 $ 572 $ 35 $ 5,708 INVESTING ACTIVITIES Capital expenditures — (4,617 ) (201 ) — (4,818 ) Business acquisitions, net of cash acquired — — (4,618 ) — (4,618 ) Proceeds from asset dispositions and other (55 ) 33 12 — (10 ) CASH USED IN INVESTING ACTIVITIES (55 ) (4,584 ) (4,807 ) — (9,446 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,629 (1,549 ) (80 ) — — Payment on loan between subsidiaries (4,805 ) 109 4,696 — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (19 ) (22 ) — (41 ) Proceeds from debt issuances 6,519 — — — 6,519 Proceeds from stock issuances 183 — — — 183 Dividends paid (277 ) — — — (277 ) Purchase of treasury stock (2,722 ) — — — (2,722 ) Other, net (51 ) (48 ) 48 — (51 ) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 476 (1,487 ) 4,622 — 3,611 Effect of exchange rate changes on cash 1 (22 ) (81 ) — (102 ) Net (decrease) increase in cash and cash equivalents (409 ) (161 ) 306 35 (229 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2015 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (727 ) $ 5,446 $ 575 $ 72 $ 5,366 INVESTING ACTIVITIES Capital expenditures (1 ) (4,139 ) (207 ) — (4,347 ) Business acquisitions, net of cash acquired (1,429 ) — — — (1,429 ) Proceeds from asset dispositions and other — 42 (18 ) — 24 CASH USED IN INVESTING ACTIVITIES (1,430 ) (4,097 ) (225 ) — (5,752 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,431 (1,502 ) 71 — — Payment on loan between subsidiaries — 267 (267 ) — — Intercompany dividends — 68 (68 ) — — Principal payments on debt — (1 ) (4 ) — (5 ) Proceeds from debt issuance 2,491 — — — 2,491 Proceeds from stock issuances 320 — — — 320 Dividends paid (227 ) — — — (227 ) Purchase of treasury stock (1,254 ) — — — (1,254 ) Other, net 24 (105 ) 105 — 24 CASH PROVIDED (USED IN) FINANCING ACTIVITIES 2,785 (1,273 ) (163 ) — 1,349 Effect of exchange rate changes on cash (1 ) (30 ) (77 ) — (108 ) Net increase in cash and cash equivalents 627 46 110 72 855 Cash and cash equivalents at beginning of period 1,756 441 861 (150 ) 2,908 Cash and cash equivalents at end of period $ 2,383 $ 487 $ 971 $ (78 ) $ 3,763 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
May 31, 2017 | |
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, 2017, 2016, AND 2015 (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 2017 $ 73 $ 136 $ — $ 94 (a) $ 115 2016 86 121 — 134 (a) 73 2015 81 145 — 140 (a) 86 Allowance for Revenue Adjustments 2017 $ 105 $ — $ 941 (b) $ 909 (c) $ 137 2016 99 — 692 (b) 686 (c) 105 2015 83 — 740 (b) 724 (c) 99 Inventory Valuation Allowance: 2017 $ 218 $ 26 $ — $ 7 $ 237 2016 207 26 — 15 218 2015 212 23 — 28 207 (a) Uncollectible accounts written off, net of recoveries, and other adjustments. (b) Principally charged against revenue. (c) Service failures, rebills and other. |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are Federal Express Corporation (“FedEx Express”), the world’s largest express transportation company; TNT Express B.V. (“TNT Express”), an international express, small-package ground delivery and freight transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight, Inc. (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“LTL”) freight services. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), form the core of our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments. In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”). |
Fiscal Years | FISCAL YEARS . Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2017 or ended May 31 of the year referenced. |
Reclassifications | RECLASSIFICATIONS. Reclassifications have been made to the May 31, 2016 consolidated balance sheet to conform to the current year’s presentation of debt issuance costs. See Note 2 below for additional information regarding recent accounting guidance. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION . The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. |
Revenue Recognition | REVENUE RECOGNITION . We recognize revenue upon delivery of shipments for our transportation businesses and upon completion of services for our business services, logistics and trade services businesses. Transportation services are provided with the use of employees and independent contractors. FedEx is the principal to the transaction for most of these services and revenue from these transactions is recognized on a gross basis. Costs associated with independent contractor settlements are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income. For shipments in transit, revenue is recorded based on the percentage of service completed at the balance sheet date. Estimates for future billing adjustments to revenue and accounts receivable are recognized at the time of shipment for money-back service guarantees and billing corrections. Delivery costs are accrued as incurred. Our contract logistics, global trade services and certain transportation businesses engage in some 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. Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. |
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 factors on the composition of accounts receivable. 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 $458 million in 2017, $417 million in 2016 and $403 million in 2015. |
Cash Equivalents | CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. |
Spare Parts, Supplies And Fuel | SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost. |
Property And Equipment | PROPERTY AND EQUIPMENT . Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal. For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable. The depreciable lives and net book value of our property and equipment are as follows (dollars in millions): Net Book Value at May 31, Range 2017 2016 Wide-body aircraft and related equipment 15 to 30 years $ 9,103 $ 8,356 Narrow-body and feeder aircraft and related equipment 5 to 18 years 3,099 3,180 Package handling and ground support equipment 3 to 30 years 3,862 3,249 Information technology 2 to 10 years 1,114 1,051 Vehicles 3 to 15 years 3,400 3,084 Facilities and other 2 to 40 years 5,403 5,364 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. In May 2015, we adjusted the depreciable lives of 23 aircraft and 57 engines. Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $2.9 billion in 2017 and $2.6 billion in 2016 and 2015. Depreciation and amortization expense includes amortization of assets under capital lease. |
Capitalized Interest | CAPITALIZED INTEREST . Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $41 million in 2017, $42 million in 2016 and $37 million in 2015. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment. In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2017, we had seven aircraft temporarily idled. These aircraft have been idled for an average of 12 months and are expected to return to revenue service. In May 2015, we retired from service seven Boeing MD11 aircraft and 12 related engines, four Airbus A310-300 aircraft and three related engines, three Airbus A300-600 aircraft and three related engines and one Boeing MD10-10 aircraft and three related engines, and related parts. As a consequence, impairment and related charges of $276 million ($175 million, net of tax, or $0.61 per diluted share) were recorded in the fourth quarter of 2015. Of this amount, $246 million was non-cash. The decision to permanently retire these aircraft and engines aligns with FedEx Express’s plans to rationalize capacity and modernize its aircraft fleet to more effectively serve its customers. |
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 benefit 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 a two-step process to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. INTANGIBLE ASSETS . Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. |
Pension and Postretirement Healthcare Plans | PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit 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 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 plan assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate. The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit 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 operating results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. |
Income Taxes | INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets. |
Self-Insurance Accruals | SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense. |
Leases | LEASES. We lease certain aircraft, facilities, equipment and vehicles under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express and copier usage at FedEx Office. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term. |
Deferred Gains | DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS. Our TNT Express segment maintains a risk management strategy that includes the 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. We account for derivative instruments under the provisions of the accounting guidance related to derivatives and hedging, which requires all derivative instruments to be recognized in the financial statements and measured at fair value, regardless of the purpose or intent for holding them. Derivatives are recognized in our consolidated balance sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recorded in the income statement. We do not have derivatives designated as a cash flow or net investment hedge as of May 31, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in equity at that time, remain in equity until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in equity are immediately transferred to the income statement. The financial statement impact of derivative transactions was immaterial for the years ended May 31, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of accumulated other comprehensive income 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 | EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of FedEx Express, who represent a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. This collective bargaining agreement is scheduled to become amendable in November 2021. In addition to our pilots at FedEx Express, FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain”) has a small number of employees who are members of unions, and certain non-U.S. employees are unionized. |
Stock-Based Compensation | STOCK-BASED COMPENSATION. We recognize compensation expense for stock-based awards under the provisions of the accounting guidance related to share-based payments. This guidance requires recognition of compensation expense for stock-based awards using a fair value method. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants. |
Treasury Shares | TREASURY SHARES. In January 2016, our Board of Directors authorized a share repurchase program of up to 25 million shares. During 2017, we repurchased 3.0 million shares of FedEx common stock at an average price of $172.13 per share for a total of $509 million. As of May 31, 2017, 16 million shares remained under the share 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 2016, we repurchased 18.2 million shares of FedEx common stock at an average price of $149.35 per share for a total of $2.7 billion. In 2015, we repurchased 8.1 million shares of FedEx common stock at an average price of $154.03 per share for a total of $1.3 billion. |
Dividends Declared per Common Share | DIVIDENDS DECLARED PER COMMON SHARE. On June 12, 2017, our Board of Directors declared a quarterly dividend of $0.50 per share of common stock. The dividend was paid on July 6, 2017 to stockholders of record as of the close of business on June 22, 2017. Each quarterly dividend payment is subject to review and approval by our Board of Directors, and we evaluate our dividend payment amount on an annual basis at the end of each fiscal year. |
Use Of Estimates | USE OF ESTIMATES . The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations. |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2017 | |
Property And Equipment Tables [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 2017 2016 Wide-body aircraft and related equipment 15 to 30 years $ 9,103 $ 8,356 Narrow-body and feeder aircraft and related equipment 5 to 18 years 3,099 3,180 Package handling and ground support equipment 3 to 30 years 3,862 3,249 Information technology 2 to 10 years 1,114 1,051 Vehicles 3 to 15 years 3,400 3,084 Facilities and other 2 to 40 years 5,403 5,364 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
May 31, 2017 | |
Acquisition Tables [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for this acquisition, as well as adjustments made during the measurement period (in millions): Preliminary Measurement Period Final (May 31, 2016) Adjustments (May 31, 2017) Current assets (1) $ 1,905 $ (53 ) $ 1,852 Property and equipment 1,104 (124 ) 980 Goodwill 2,964 488 3,452 Identifiable intangible assets 920 (390 ) 530 Other non-current assets 289 183 472 Current liabilities (2) (1,644 ) (44 ) (1,688 ) Long-term liabilities (644 ) (60 ) (704 ) Total purchase price $ 4,894 $ — $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses. |
Schedule of Intangible Assets with Finite Lives | The purchase price was allocated to the identifiable intangible assets acquired as follows (in millions): Intangible assets with finite lives Customer relationships (12-year life) $ 430 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 530 |
Business Acquisition Pro Forma Financial Information | The following unaudited pro forma consolidated financial information presents the combined operations of FedEx and TNT Express as if the acquisition had occurred at the beginning of 2015 (dollars in millions, except per share amounts): (Unaudited) 2016 2015 Consolidated revenues $ 57,899 $ 55,862 Consolidated net income 1,600 638 Diluted earnings per share $ 5.73 $ 2.22 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 31, 2017 | |
Goodwill And Other Intangible Assets Tables [Abstract] | |
Schedule Of Goodwill | The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions): FedEx Express Segment TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Total Goodwill at May 31, 2015 $ 1,677 $ — $ 1,145 $ 773 $ 1,525 $ 5,120 Accumulated impairment charges — — — (133 ) (1,177 ) (1,310 ) Balance as of May 31, 2015 1,677 — 1,145 640 348 3,810 Goodwill acquired (1) — 2,964 — — — 2,964 Purchase adjustments and other (2) (88 ) — 66 (5 ) — (27 ) Balance as of May 31, 2016 1,589 2,964 1,211 635 348 6,747 Purchase adjustments and other (2) 2,191 (1,784 ) — — — 407 Balance as of May 31, 2017 $ 3,780 $ 1,180 $ 1,211 $ 635 $ 348 $ 7,154 Accumulated goodwill impairment charges as of May 31, 2017 $ — $ — $ — $ (133 ) $ (1,177 ) $ (1,310 ) (1) Goodwill acquired relates to the acquisition of TNT Express in 2016. See Note 3 for related disclosures. (2) Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. FY17 includes goodwill attributed to FedEx Express as part of the acquisition of TNT Express. |
Schedule Of Identifiable Intangible Assets | The summary of our intangible assets and related accumulated amortization at May 31, 2017 and 2016 is as follows (in millions): 2017 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 656 $ (203 ) $ 453 $ 912 $ (156 ) $ 756 Technology 54 (26 ) 28 123 (16 ) 107 Trademarks and other 136 (88 ) 48 202 (57 ) 145 Total $ 846 $ (317 ) $ 529 $ 1,237 $ (229 ) $ 1,008 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | Expected amortization expense for the next five years is as follows (in millions): 2018 $ 81 2019 71 2020 55 2021 44 2022 41 |
Selected Current Liabilities (T
Selected Current Liabilities (Tables) | 12 Months Ended |
May 31, 2017 | |
Selected Current Liabilities Tables [Abstract] | |
Selected Current Liabilities | The components of selected current liability captions at May 31 were as follows (in millions): 2017 2016 Accrued Salaries and Employee Benefits Salaries $ 431 $ 478 Employee benefits, including variable compensation 781 804 Compensated absences 702 690 $ 1,914 $ 1,972 Accrued Expenses Self-insurance accruals $ 976 $ 837 Taxes other than income taxes 283 311 Other 1,971 1,915 $ 3,230 $ 3,063 |
Long Term Debt and Other Financ
Long Term Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
May 31, 2017 | |
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, 2017, are as follows (in millions): May 31, 2017 2016 Interest Rate% Maturity Senior unsecured debt: 8.00 2019 $ 749 $ 748 2.30 2020 398 397 2.625-2.70 2023 745 745 4.00 2024 745 744 3.20 2025 695 694 3.25 2026 743 743 3.30 2027 445 — 4.90 2034 495 495 3.90 2035 493 493 3.875-4.10 2043 983 982 5.10 2044 742 741 4.10 2045 640 640 4.55-4.75 2046 2,458 2,458 4.40 2047 734 — 4.50 2065 246 245 7.60 2098 237 237 Euro senior unsecured debt: floating rate 2019 558 557 0.50 2020 557 556 1.00 2023 833 832 1.625 2027 1,382 1,380 Total senior unsecured debt 14,878 13,687 Other debt 9 12 Capital lease obligations 44 63 14,931 13,762 Less current portion 22 29 $ 14,909 $ 13,733 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2017 | |
Leases Tables [Abstract] | |
Schedule of Rent Expense Under Operating Leases | Rent expense under operating leases for the years ended May 31 was as follows (in millions): 2017 2016 2015 Minimum rentals $ 2,814 $ 2,394 $ 2,249 Contingent rentals (1) 178 214 194 $ 2,992 $ 2,608 $ 2,443 (1) Contingent rentals are based on equipment usage. |
Schedule of Future Minimum Lease Payments, Operating Leases | A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2017 is as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2018 $ 398 $ 2,047 $ 2,445 2019 343 1,887 2,230 2020 261 1,670 1,931 2021 203 1,506 1,709 2022 185 1,355 1,540 Thereafter 175 7,844 8,019 Total $ 1,565 $ 16,309 $ 17,874 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
May 31, 2017 | |
Accumulated Other Comprehensive Income Loss Tables [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides changes in accumulated other comprehensive income (loss) (“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): 2017 2016 2015 Foreign currency translation gain (loss): Balance at beginning of period $ (514 ) $ (253 ) $ 81 Translation adjustments (171 ) (261 ) (334 ) Balance at end of period (685 ) (514 ) (253 ) Retirement plans adjustments: Balance at beginning of period 345 425 425 Prior service credit and other arising during period 1 (4 ) 72 Reclassifications from AOCI (76 ) (76 ) (72 ) Balance at end of period 270 345 425 Accumulated other comprehensive (loss) income at end of period $ (415 ) $ (169 ) $ 172 |
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 2017 2016 2015 Amortization of retirement plans prior service credits, before tax $ 120 $ 121 $ 115 Salaries and employee benefits Income tax benefit (44 ) (45 ) (43 ) Provision for income taxes AOCI reclassifications, net of tax $ 76 $ 76 $ 72 Net income |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2017 | |
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): 2017 2016 2015 Stock-based compensation expense $ 154 $ 144 $ 133 |
Schedule of Stock Based Compensation Key Assumptions for Valuation | The following is a table of the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, and then a discussion of our methodology for developing each of the assumptions used in the valuation model: 2017 2016 2015 Weighted-average Black-Scholes value $ 43.99 $ 52.40 $ 53.33 Intrinsic value of options exercised $ 274 $ 115 $ 253 Black-Scholes Assumptions: Expected lives 6.5 years 6.4 years 6.3 years Expected volatility 25 % 28 % 34 % Risk-free interest rate 1.64 % 1.94 % 2.02 % Dividend yield 0.719 % 0.519 % 0.448 % |
Schedule of Stock Option Activity | The following table summarizes information about stock option activity for the year ended May 31, 2017: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) (1) Outstanding at June 1, 2016 14,441,431 $ 111.99 Granted 2,783,968 169.73 Exercised (3,330,197 ) 100.65 Forfeited (296,503 ) 152.91 Outstanding at May 31, 2017 13,598,699 $ 125.66 6.2 $ 928 Exercisable 7,820,992 $ 100.92 4.7 $ 727 Expected to vest 5,473,800 $ 159.15 8.2 $ 191 Available for future grants 8,304,621 (1) Only presented for options with market value at May 31, 2017 in excess of the exercise price of the option. |
Schedule of Vested and Unvested Restricted Stock | The following table summarizes information about vested and unvested restricted stock for the year ended May 31, 2017: Restricted Stock Shares Weighted- Average Grant Date Fair Value Unvested at June 1, 2016 389,152 $ 136.57 Granted 153,984 166.12 Vested (177,877 ) 123.25 Forfeited (2,955 ) 159.46 Unvested at May 31, 2017 362,304 $ 155.53 |
Schedule of Stock Option Vesting | The following table summarizes information about stock option vesting during the years ended May 31: Stock Options Vested during the year Fair value (in millions) 2017 2,427,837 $ 104 2016 2,572,129 98 2015 2,611,524 83 |
Computation of Earnings Per S41
Computation of Earnings Per Share (Tables) | 12 Months Ended |
May 31, 2017 | |
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): 2017 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 2,993 $ 1,818 $ 1,048 Weighted-average common shares 266 276 283 Basic earnings per common share $ 11.24 $ 6.59 $ 3.70 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 2,993 $ 1,818 $ 1,048 Weighted-average common shares 266 276 283 Dilutive effect of share-based awards 4 3 4 Weighted-average diluted shares 270 279 287 Diluted earnings per common share $ 11.07 $ 6.51 $ 3.65 Anti-dilutive options excluded from diluted earnings per common share 4.5 3.9 2.1 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2017 | |
Income Taxes Tables [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): 2017 2016 2015 Current provision Domestic: Federal $ 269 $ 513 $ 795 State and local 88 72 102 Foreign 285 200 214 642 785 1,111 Deferred provision (benefit) Domestic: Federal 989 155 (474 ) State and local 59 (18 ) (47 ) Foreign (108 ) (2 ) (13 ) 940 135 (534 ) $ 1,582 $ 920 $ 577 |
Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes | A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (35%) to income before taxes for the years ended May 31 is as follows (in millions): 2017 2016 2015 Taxes computed at federal statutory rate $ 1,603 $ 959 $ 569 Increases (decreases) in income tax from: State and local income taxes, net of federal benefit 99 33 36 Foreign operations (87 ) (50 ) (43 ) Legal entity restructuring — (76 ) — TNT Express integration/acquisition costs 25 40 — Other, net (58 ) 14 15 $ 1,582 $ 920 $ 577 Effective Tax Rate 34.6 % 33.6 % 35.5 % |
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): 2017 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Property, equipment, leases and intangibles $ 124 $ 4,993 $ 129 $ 4,767 Employee benefits 1,951 — 2,453 — Self-insurance accruals 745 — 681 — Other 692 660 528 343 Net operating loss/credit carryforwards 1,069 — 925 — Valuation allowances (738 ) — (738 ) — $ 3,843 $ 5,653 $ 3,978 $ 5,110 |
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): 2017 2016 Noncurrent deferred tax assets (1) $ 675 $ 435 Noncurrent deferred tax liabilities (2,485 ) (1,567 ) $ (1,810 ) $ (1,132 ) (1) Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2017 2016 2015 Balance at beginning of year $ 49 $ 36 $ 38 Increases for tax positions taken in the current year — 3 1 Increases for tax positions taken in prior years 8 3 6 Increase for business acquisition 17 25 — Decreases for tax positions taken in prior years (1 ) (5 ) (2 ) Settlements (4 ) (4 ) (2 ) Decreases from lapse of statute of limitations (2 ) (7 ) — Changes due to currency translation — (2 ) (5 ) Balance at end of year $ 67 $ 49 $ 36 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
May 31, 2017 | |
Retirement Plan Tables [Abstract] | |
Schedule of Retirement Plan Costs | A summary of our retirement plans costs over the past three years is as follows (in millions): 2017 2016 2015 Defined benefit pension plans $ 234 $ 214 $ (41 ) Defined contribution plans 480 416 385 Postretirement healthcare plans 76 82 81 Retirement plans mark-to-market adjustment (24 ) 1,498 2,190 $ 766 $ 2,210 $ 2,615 The components of the pre-tax mark-to-market adjustments are as follows (in millions): 2017 2016 2015 Actual versus expected return on assets $ (740 ) $ 1,285 $ (35 ) Discount rate changes 266 1,129 791 Demographic assumption experience 450 (916 ) 1,434 Total mark-to-market (gain) loss $ (24 ) $ 1,498 $ 2,190 |
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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate used to determine benefit obligation 4.08 % 4.13 % 4.42 % 2.43 % 2.46 % 2.95 % 4.32 % 4.43 % 4.60 % Discount rate used to determine net periodic benefit cost 4.13 4.42 4.60 2.46 2.95 3.57 4.43 4.62 4.70 Rate of increase in future compensation levels used to determine benefit obligation 4.47 4.46 4.62 2.42 2.82 3.19 — — — Rate of increase in future compensation levels used to determine net periodic benefit cost 4.46 4.62 4.56 2.82 3.19 3.31 — — — Expected long-term rate of return on assets - Consolidated 6.50 6.50 7.75 — — — — — — Expected long-term rate of return on assets - Segment Reporting 6.50 6.50 6.50 3.18 3.68 5.13 — — — |
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 most significant international pension plans at the measurement date are presented in the following table (in millions): Plan Assets at Measurement Date 2017 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (2) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 1,076 4 % 0 - 5 % $ 26 $ 1,050 Equities 30 - 50 U.S. large cap equity (1) 2,415 10 830 International equities (1) 3,521 14 2,747 157 Global equities (1) 3,276 13 U.S. SMID cap equity 987 4 987 Fixed income securities 50 - 70 Corporate 8,163 33 8,163 Government (1) 4,674 19 3,454 Mortgage-backed and other (1) 603 2 129 Alternative investments (1) 377 2 0 - 5 $ 129 Other (159 ) (1 ) (161 ) 2 Total U.S. plan assets $ 24,933 100 % $ 4,429 $ 12,955 $ 129 Asset Class (International Plans) Cash and cash equivalents $ 48 4 % $ 2 $ 46 Equities International equities (1) 137 11 72 Global equities (1) 202 17 Fixed income securities Corporate (1) 270 22 49 Government (1) 405 34 95 230 Mortgage-backed and other (1) 145 12 Alternative investments 17 1 17 Other (18 ) (1 ) (2 ) (16 ) Total International plan assets $ 1,206 100 % $ 95 $ 398 (1) 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. (2) Target ranges have not been provided for international plan assets as they are managed at an individual country level. Plan Assets at Measurement Date 2016 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (2) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 568 2 % 0 - 5 % $ 76 $ 492 Equities 35 - 55 U.S. large cap equity (1) 3,257 14 750 International equities (1) 3,381 15 2,685 121 Global equities (1) 2,794 12 U.S. SMID cap equity 913 4 913 Fixed income securities 45 - 65 Corporate 6,608 29 6,608 Government 5,148 22 5,148 Mortgage-backed and other (1) 347 2 146 Alternative investments (1) 322 1 0 - 5 $ 48 Other (321 ) (1 ) (305 ) (16 ) Total U.S. plan assets $ 23,017 100 % $ 4,119 $ 12,499 $ 48 Asset Class (International Plans) Cash and cash equivalents $ 211 19 % $ 157 $ 54 Equities International equities (1) 124 11 63 Global equities (1) 148 14 Fixed income securities Corporate (1) 122 11 44 Government (1) 324 30 60 213 Mortgage-backed and other (1) 134 12 Alternative investments (1) 39 4 18 Other (10 ) (1 ) (14 ) 4 Total International plan assets $ 1,092 100 % $ 203 $ 396 (1) 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. (2) Target ranges have not been provided for international plan assets as they are managed at an individual country level. |
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 2017 2016 Balance at beginning of year $ 48 $ — Actual return on plan assets: Assets held during current year 5 2 Assets sold during the year 1 — Purchases, sales and settlements 75 46 Balance at end of year $ 129 $ 48 |
Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status | The following table provides 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, 2017 and a statement of the funded status as of May 31, 2017 and 2016 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2017 2016 2017 2016 2017 2016 Accumulated Benefit Obligation (“ABO”) $ 27,244 $ 27,236 $ 1,842 $ 1,609 Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) PBO/APBO at the beginning of year $ 27,804 $ 26,636 $ 1,798 $ 876 $ 905 $ 929 Service cost 638 622 83 40 36 40 Interest cost 1,128 1,155 43 25 39 42 Actuarial loss 571 284 161 (7 ) (14 ) (64 ) Benefits paid (2,271 ) (893 ) (38 ) (19 ) (72 ) (78 ) Business acquisition — — — 907 — — Purchase accounting adjustment — — 26 — — — Other — — (30 ) (24 ) 33 36 PBO/APBO at the end of year $ 27,870 $ 27,804 $ 2,043 $ 1,798 $ 927 $ 905 Change in Plan Assets Fair value of plan assets at the beginning of year $ 23,017 $ 23,006 $ 1,254 $ 499 $ — $ — Actual return on plan assets 2,167 211 112 12 — — Company contributions 2,020 693 95 33 36 42 Benefits paid (2,271 ) (893 ) (38 ) (19 ) (72 ) (78 ) Business acquisition — — — 761 — — Other — — (44 ) (32 ) 36 36 Fair value of plan assets at the end of year $ 24,933 $ 23,017 $ 1,379 $ 1,254 $ — $ — Funded Status of the Plans $ (2,937 ) $ (4,787 ) $ (664 ) $ (544 ) $ (927 ) $ (905 ) Amount Recognized in the Balance Sheet at May 31: Noncurrent asset $ — $ — $ 40 $ 53 $ — $ — Current pension, postretirement healthcare and other benefit obligations (33 ) (19 ) (17 ) (12 ) (39 ) (40 ) Noncurrent pension, postretirement healthcare and other benefit obligations (2,904 ) (4,768 ) (687 ) (585 ) (888 ) (865 ) Net amount recognized $ (2,937 ) $ (4,787 ) $ (664 ) $ (544 ) $ (927 ) $ (905 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: Prior service credit and other $ (410 ) $ (528 ) $ (13 ) $ (18 ) $ (4 ) $ — Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost: Prior service credit and other $ (118 ) $ (118 ) $ (2 ) $ (3 ) $ — $ — |
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 2017 Qualified $ 27,600 $ 24,933 $ (2,667 ) Nonqualified 270 — (270 ) International Plans 2,043 1,379 (664 ) Total $ 29,913 $ 26,312 $ (3,601 ) 2016 Qualified $ 27,543 $ 23,017 $ (4,526 ) Nonqualified 261 — (261 ) International Plans 1,798 1,254 (544 ) Total $ 29,602 $ 24,271 $ (5,331 ) |
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 table presents 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 2017 2016 U.S. Pension Benefits Fair value of plan assets $ 24,933 $ 23,017 PBO (27,870 ) (27,804 ) Net funded status $ (2,937 ) $ (4,787 ) International Pension Benefits Fair value of plan assets $ 952 $ 850 PBO (1,656 ) (1,447 ) Net funded status $ (704 ) $ (597 ) ABO Exceeds the Fair Value of Plan Assets 2017 2016 U.S. Pension Benefits ABO (1) $ (27,244 ) $ (27,236 ) Fair value of plan assets 24,933 23,017 PBO (27,870 ) (27,804 ) Net funded status $ (2,937 ) $ (4,787 ) International Pension Benefits ABO (1) $ (1,433 ) $ (1,257 ) Fair value of plan assets 928 848 PBO (1,626 ) (1,445 ) Net funded status $ (698 ) $ (597 ) (1) ABO not used in determination of funded status. |
Schedule Of Pension Plans Contributions | Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions): 2017 2016 Required $ 459 $ 8 Voluntary 1,541 652 $ 2,000 $ 660 |
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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 638 $ 622 $ 615 $ 83 $ 40 $ 38 $ 36 $ 40 $ 40 Interest cost 1,128 1,155 1,068 43 25 28 39 42 41 Expected return on plan assets (1,501 ) (1,490 ) (1,655 ) (38 ) (18 ) (23 ) — — — Amortization of prior service credit (118 ) (118 ) (112 ) (2 ) (3 ) (3 ) — — — Actuarial losses (gains) and other (95 ) 1,563 2,154 87 (1 ) 36 (14 ) (64 ) 6 Net periodic benefit cost $ 52 $ 1,732 $ 2,070 $ 173 $ 43 $ 76 $ 61 $ 18 $ 87 |
Schedule of Amounts Recognized in Other Comprehensive Income for All Plans | Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions): 2017 2016 U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Prior service cost (credit) arising during period $ — $ — $ 1 $ 1 $ (3 ) $ (2 ) $ — $ — $ — $ — $ — $ — Amortizations: Prior services credit 118 74 2 2 — — 118 74 3 2 — — Total recognized in OCI $ 118 $ 74 $ 3 $ 3 $ (3 ) $ (2 ) $ 118 $ 74 $ 3 $ 2 $ — $ — |
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 2018 $ 1,013 $ 44 $ 39 2019 1,070 43 40 2020 1,169 48 42 2021 1,233 53 42 2022 1,345 59 43 2023-2027 8,565 789 246 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
May 31, 2017 | |
Business Segment Information Tables [Abstract] | |
Schedule of Segment Information | The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31: FedEx Express Segment TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Eliminations, corporate and other (5) Consolidated Total Revenues 2017 $ 27,358 $ 7,401 $ 18,075 $ 6,443 $ 1,621 $ (579 ) $ 60,319 2016 26,451 N/A 16,574 6,200 1,593 (453 ) 50,365 2015 27,239 N/A 12,984 6,191 1,545 (506 ) 47,453 Depreciation and amortization 2017 $ 1,431 $ 239 $ 684 $ 269 $ 371 $ 1 $ 2,995 2016 1,385 N/A 608 248 384 6 2,631 2015 1,460 N/A 530 230 390 1 2,611 Operating income 2017 (1) $ 2,678 $ 84 $ 2,292 $ 397 $ — $ (414 ) $ 5,037 2016 (2) 2,519 N/A 2,276 426 — (2,144 ) 3,077 2015 (3) 1,584 N/A 2,172 484 — (2,373 ) 1,867 Segment assets (4) 2017 $ 24,882 $ 6,939 $ 14,628 $ 3,925 $ 5,682 $ (7,504 ) $ 48,552 2016 21,205 N/A 13,098 3,749 5,390 2,517 45,959 2015 20,382 N/A 11,691 3,471 5,356 (4,431 ) 36,469 (1) Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. (2) Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. (3) Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. (4) Segment assets include intercompany receivables. (5) Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). |
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 TNT Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Other Consolidated Total 2017 $ 2,525 $ 205 $ 1,539 $ 431 $ 416 $ — $ 5,116 2016 2,356 N/A 1,597 433 432 — 4,818 2015 2,380 N/A 1,248 337 381 1 4,347 |
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): 2017 2016 2015 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 6,958 $ 6,763 $ 6,704 U.S. overnight envelope 1,750 1,662 1,629 U.S. deferred 3,528 3,379 3,342 Total U.S. domestic package revenue 12,236 11,804 11,675 International priority 5,827 5,697 6,251 International economy 2,412 2,282 2,301 Total international export package revenue 8,239 7,979 8,552 International domestic (1) 1,299 1,285 1,406 Total package revenue 21,774 21,068 21,633 Freight: U.S. 2,528 2,481 2,300 International priority 1,502 1,384 1,588 International airfreight 118 126 180 Total freight revenue 4,148 3,991 4,068 Other (2) 1,436 1,392 1,538 Total FedEx Express segment 27,358 26,451 27,239 TNT Express segment 7,401 N/A N/A FedEx Ground segment: FedEx Ground 16,497 15,050 12,568 FedEx Supply Chain 1,578 1,524 416 Total FedEx Ground segment 18,075 16,574 12,984 FedEx Freight segment 6,443 6,200 6,191 FedEx Services segment 1,621 1,593 1,545 Other and eliminations (3) (579 ) (453 ) (506 ) $ 60,319 $ 50,365 $ 47,453 GEOGRAPHICAL INFORMATION (4) Revenues: U.S. $ 40,269 $ 38,070 $ 34,216 International: FedEx Express segment 12,094 11,672 12,772 TNT Express segment 7,346 N/A N/A FedEx Ground segment 451 383 311 FedEx Freight segment 149 137 142 FedEx Services segment 10 10 12 Other (3) — 93 — Total international revenue 20,050 12,295 13,237 $ 60,319 $ 50,365 $ 47,453 Noncurrent assets: U.S. $ 28,141 $ 25,942 $ 23,520 International 7,783 8,028 2,614 $ 35,924 $ 33,970 $ 26,134 (1) International domestic revenues represent our intra-country operations. (2) Includes FedEx Trade Networks and FedEx SupplyChain Systems. (3) Includes TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). (4) International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. |
Supplemental Cash Flow Inform45
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
May 31, 2017 | |
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): 2017 2016 2015 Cash payments for: Interest (net of capitalized interest) $ 484 $ 321 $ 201 Income taxes $ 397 $ 996 $ 1,122 Income tax refunds received (20 ) (5 ) (9 ) Cash tax payments, net $ 377 $ 991 $ 1,113 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
May 31, 2017 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | Annual purchase commitments under various contracts as of May 31, 2017 were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2018 $ 1,777 $ 1,440 $ 3,217 2019 1,729 508 2,237 2020 1,933 400 2,333 2021 1,341 309 1,650 2022 1,276 198 1,474 Thereafter 2,895 499 3,394 Total $ 10,951 $ 3,354 $ 14,305 (1) Primarily equipment, advertising contracts and, in 2018, approximately $700 million of estimated required quarterly contributions to our U.S. Pension Plans. |
Schedule of Aircraft Purchase Commitments | The following table is a summary of the key aircraft we are committed to purchase as of May 31, 2017, with the year of expected delivery: B767F B777F Total 2018 14 4 18 2019 15 2 17 2020 16 3 19 2021 10 3 13 2022 10 4 14 Thereafter 6 - 6 Total 71 16 87 |
Summary of Quarterly Operatin47
Summary of Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended |
May 31, 2017 | |
Quarterly Operating Results Tables [Abstract] | |
Summary of Quarterly Operating Results (Unaudited) | (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 (1) Revenues $ 14,663 $ 14,931 $ 14,997 $ 15,728 Operating income 1,264 1,167 1,025 1,581 Net income 715 700 562 1,020 Basic earnings per common share (2) 2.69 2.63 2.11 3.81 Diluted earnings per common share (2) 2.65 2.59 2.07 3.75 2016 (3) Revenues $ 12,279 $ 12,453 $ 12,654 $ 12,979 Operating income (loss) 1,144 1,137 864 (68 ) Net income (loss) 692 691 507 (70 ) Basic earnings (loss) per common share (2) 2.45 2.47 1.86 (0.26 ) Diluted earnings (loss) per common share (2) 2.42 2.44 1.84 (0.26 ) (1) The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. (2) The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. (3) The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. |
Condensed Consolidating Finan48
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
May 31, 2017 | |
Condensed Consolidating Financial Statements Tables [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 Receivables, less allowances 3 4,729 2,928 (61 ) 7,599 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 25 787 248 — 1,060 Total current assets 1,912 5,841 4,983 (108 ) 12,628 PROPERTY AND EQUIPMENT, AT COST 22 47,201 3,403 — 50,626 Less accumulated depreciation and amortization 18 23,211 1,416 — 24,645 Net property and equipment 4 23,990 1,987 — 25,981 INTERCOMPANY RECEIVABLE 1,521 2,607 — (4,128 ) — GOODWILL — 1,571 5,583 — 7,154 INVESTMENT IN SUBSIDIARIES 27,712 2,636 — (30,348 ) — OTHER ASSETS 3,494 1,271 1,249 (3,225 ) 2,789 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 9 $ 13 $ — $ 22 Accrued salaries and employee benefits 72 1,335 507 — 1,914 Accounts payable 10 1,411 1,439 (108 ) 2,752 Accrued expenses 991 1,522 717 — 3,230 Total current liabilities 1,073 4,277 2,676 (108 ) 7,918 LONG-TERM DEBT, LESS CURRENT PORTION 14,641 244 24 — 14,909 INTERCOMPANY PAYABLE — — 4,128 (4,128 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 5,472 238 (3,225 ) 2,485 Other liabilities 2,856 3,448 863 — 7,167 Total other long-term liabilities 2,856 8,920 1,101 (3,225 ) 9,652 STOCKHOLDERS’ INVESTMENT 16,073 24,475 5,873 (30,348 ) 16,073 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 Receivables, less allowances 1 4,461 2,831 (41 ) 7,252 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 233 724 246 — 1,203 Total current assets 2,208 5,511 4,354 (84 ) 11,989 PROPERTY AND EQUIPMENT, AT COST 22 43,760 3,236 — 47,018 Less accumulated depreciation and amortization 17 21,566 1,151 — 22,734 Net property and equipment 5 22,194 2,085 — 24,284 INTERCOMPANY RECEIVABLE 2,437 1,284 — (3,721 ) — GOODWILL — 1,571 5,176 — 6,747 INVESTMENT IN SUBSIDIARIES 24,766 3,697 — (28,463 ) — OTHER ASSETS 3,359 967 1,851 (3,238 ) 2,939 $ 32,775 $ 35,224 $ 13,466 $ (35,506 ) $ 45,959 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 13 $ 16 $ — $ 29 Accrued salaries and employee benefits 54 1,377 541 — 1,972 Accounts payable 8 1,501 1,519 (84 ) 2,944 Accrued expenses 883 1,411 769 — 3,063 Total current liabilities 945 4,302 2,845 (84 ) 8,008 LONG-TERM DEBT, LESS CURRENT PORTION 13,451 245 37 — 13,733 INTERCOMPANY PAYABLE — — 3,721 (3,721 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,436 369 (3,238 ) 1,567 Other liabilities 4,595 3,375 897 — 8,867 Total other long-term liabilities 4,595 7,811 1,266 (3,238 ) 10,434 STOCKHOLDERS’ INVESTMENT 13,784 22,866 5,597 (28,463 ) 13,784 $ 32,775 $ 35,224 $ 13,466 $ (35,506 ) $ 45,959 |
Condensed Consolidating Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 44,823 $ 15,798 $ (302 ) $ 60,319 OPERATING EXPENSES: Salaries and employee benefits 123 16,696 4,723 — 21,542 Purchased transportation — 8,260 5,495 (125 ) 13,630 Rentals and landing fees 5 2,517 724 (6 ) 3,240 Depreciation and amortization 1 2,538 456 — 2,995 Fuel — 2,476 297 — 2,773 Maintenance and repairs 1 2,086 287 — 2,374 Retirement plans mark-to-market adjustment — (75 ) 51 — (24 ) Intercompany charges, net (434 ) 182 252 — — Other 304 5,734 2,885 (171 ) 8,752 — 40,414 15,170 (302 ) 55,282 OPERATING INCOME — 4,409 628 — 5,037 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,997 68 — (3,065 ) — Interest, net (507 ) 27 1 — (479 ) Intercompany charges, net 508 (296 ) (212 ) — — Other, net (1 ) (134 ) 156 — 21 INCOME BEFORE INCOME TAXES 2,997 4,074 573 (3,065 ) 4,579 Provision for income taxes — 1,439 143 — 1,582 NET INCOME $ 2,997 $ 2,635 $ 430 $ (3,065 ) $ 2,997 COMPREHENSIVE INCOME $ 2,922 $ 2,580 $ 314 $ (3,065 ) $ 2,751 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 42,143 $ 8,547 $ (325 ) $ 50,365 OPERATING EXPENSES: Salaries and employee benefits 119 15,880 2,582 — 18,581 Purchased transportation — 7,380 2,720 (134 ) 9,966 Rentals and landing fees 5 2,484 371 (6 ) 2,854 Depreciation and amortization 1 2,399 231 — 2,631 Fuel — 2,324 75 — 2,399 Maintenance and repairs 1 1,954 153 — 2,108 Retirement plans mark-to-market adjustment — 1,414 84 — 1,498 Intercompany charges, net (645 ) 425 220 — — Other 519 5,274 1,643 (185 ) 7,251 — 39,534 8,079 (325 ) 47,288 OPERATING INCOME — 2,609 468 — 3,077 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,820 279 — (2,099 ) — Interest, net (355 ) 27 13 — (315 ) Intercompany charges, net 369 (354 ) (15 ) — — Other, net (14 ) (14 ) 6 — (22 ) INCOME BEFORE INCOME TAXES 1,820 2,547 472 (2,099 ) 2,740 Provision for income taxes — 818 102 — 920 NET INCOME $ 1,820 $ 1,729 $ 370 $ (2,099 ) $ 1,820 COMPREHENSIVE INCOME $ 1,746 $ 1,704 $ 128 $ (2,099 ) $ 1,479 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2015 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 39,420 $ 8,414 $ (381 ) $ 47,453 OPERATING EXPENSES: Salaries and employee benefits 106 14,626 2,378 — 17,110 Purchased transportation — 5,802 2,878 (197 ) 8,483 Rentals and landing fees 5 2,322 360 (5 ) 2,682 Depreciation and amortization 1 2,370 240 — 2,611 Fuel — 3,632 88 — 3,720 Maintenance and repairs 1 1,949 149 — 2,099 Impairment and other charges — 276 — — 276 Retirement plans mark-to-market adjustment — 2,075 115 — 2,190 Intercompany charges, net (450 ) 117 333 — — Other 337 4,946 1,311 (179 ) 6,415 — 38,115 7,852 (381 ) 45,586 OPERATING INCOME — 1,305 562 — 1,867 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,050 337 — (1,387 ) — Interest, net (247 ) 23 3 — (221 ) Intercompany charges, net 253 (265 ) 12 — — Other, net (6 ) (32 ) 19 — (19 ) INCOME BEFORE INCOME TAXES 1,050 1,368 596 (1,387 ) 1,627 Provision for income taxes — 390 187 — 577 NET INCOME $ 1,050 $ 978 $ 409 $ (1,387 ) $ 1,050 COMPREHENSIVE INCOME $ 1,053 $ 929 $ 121 $ (1,387 ) $ 716 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,155 ) $ 5,254 $ 835 $ (4 ) $ 4,930 INVESTING ACTIVITIES Capital expenditures — (4,694 ) (422 ) — (5,116 ) Proceeds from asset dispositions and other 34 25 76 — 135 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 34 (4,669 ) (346 ) — (4,981 ) FINANCING ACTIVITIES Net transfers from (to) Parent 421 (518 ) 97 — — Payment on loan between subsidiaries 41 (15 ) (26 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (55 ) (27 ) — (82 ) Proceeds from debt issuance 1,190 — — — 1,190 Proceeds from stock issuances 337 — — — 337 Dividends paid (426 ) — — — (426 ) Purchase of treasury stock (509 ) — — — (509 ) Other, net (12 ) (13 ) 43 — 18 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,042 (600 ) 86 — 528 Effect of exchange rate changes on cash (11 ) 14 (45 ) — (42 ) Net increase (decrease) in cash and cash equivalents (90 ) (1 ) 530 (4 ) 435 Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (831 ) $ 5,932 $ 572 $ 35 $ 5,708 INVESTING ACTIVITIES Capital expenditures — (4,617 ) (201 ) — (4,818 ) Business acquisitions, net of cash acquired — — (4,618 ) — (4,618 ) Proceeds from asset dispositions and other (55 ) 33 12 — (10 ) CASH USED IN INVESTING ACTIVITIES (55 ) (4,584 ) (4,807 ) — (9,446 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,629 (1,549 ) (80 ) — — Payment on loan between subsidiaries (4,805 ) 109 4,696 — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (19 ) (22 ) — (41 ) Proceeds from debt issuances 6,519 — — — 6,519 Proceeds from stock issuances 183 — — — 183 Dividends paid (277 ) — — — (277 ) Purchase of treasury stock (2,722 ) — — — (2,722 ) Other, net (51 ) (48 ) 48 — (51 ) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 476 (1,487 ) 4,622 — 3,611 Effect of exchange rate changes on cash 1 (22 ) (81 ) — (102 ) Net (decrease) increase in cash and cash equivalents (409 ) (161 ) 306 35 (229 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2015 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (727 ) $ 5,446 $ 575 $ 72 $ 5,366 INVESTING ACTIVITIES Capital expenditures (1 ) (4,139 ) (207 ) — (4,347 ) Business acquisitions, net of cash acquired (1,429 ) — — — (1,429 ) Proceeds from asset dispositions and other — 42 (18 ) — 24 CASH USED IN INVESTING ACTIVITIES (1,430 ) (4,097 ) (225 ) — (5,752 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,431 (1,502 ) 71 — — Payment on loan between subsidiaries — 267 (267 ) — — Intercompany dividends — 68 (68 ) — — Principal payments on debt — (1 ) (4 ) — (5 ) Proceeds from debt issuance 2,491 — — — 2,491 Proceeds from stock issuances 320 — — — 320 Dividends paid (227 ) — — — (227 ) Purchase of treasury stock (1,254 ) — — — (1,254 ) Other, net 24 (105 ) 105 — 24 CASH PROVIDED (USED IN) FINANCING ACTIVITIES 2,785 (1,273 ) (163 ) — 1,349 Effect of exchange rate changes on cash (1 ) (30 ) (77 ) — (108 ) Net increase in cash and cash equivalents 627 46 110 72 855 Cash and cash equivalents at beginning of period 1,756 441 861 (150 ) 2,908 Cash and cash equivalents at end of period $ 2,383 $ 487 $ 971 $ (78 ) $ 3,763 |
Valuation and Qualifying Acco49
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
May 31, 2017 | |
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, 2017, 2016, AND 2015 (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 2017 $ 73 $ 136 $ — $ 94 (a) $ 115 2016 86 121 — 134 (a) 73 2015 81 145 — 140 (a) 86 Allowance for Revenue Adjustments 2017 $ 105 $ — $ 941 (b) $ 909 (c) $ 137 2016 99 — 692 (b) 686 (c) 105 2015 83 — 740 (b) 724 (c) 99 Inventory Valuation Allowance: 2017 $ 218 $ 26 $ — $ 7 $ 237 2016 207 26 — 15 218 2015 212 23 — 28 207 (a) Uncollectible accounts written off, net of recoveries, and other adjustments. (b) Principally charged against revenue. (c) Service failures, rebills and other. |
Description of Business and S50
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
May 31, 2017USD ($)air-craft$ / sharesshares | May 31, 2016USD ($)$ / sharesshares | May 31, 2015USD ($)air-craftEngine$ / sharesshares | Jan. 26, 2016shares | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Advertising and promotion expenses | $ 458 | $ 417 | $ 403 | |
Depreciable life range for majority of aircraft costs | 15 to 30 years | |||
Number of aircraft with shortened depreciable lives | air-craft | 23 | |||
Number of aircraft engines with shortened depreciable lives | Engine | 57 | |||
Depreciation expense, excluding gains and losses on sales of property and equipment | $ 2,900 | 2,600 | $ 2,600 | |
Interest Costs Capitalized | $ 41 | $ 42 | $ 37 | |
Number of Idle Aircraft | air-craft | 7 | |||
Number of months aircraft remained idle | an average of 12 months | |||
Number of Impaired Boeing MD11 Aircraft | air-craft | 7 | |||
Number of Impaired Boeing MD11 Aircraft Engines | Engine | 12 | |||
Number of Impaired Airbus A310-300 Aircraft | air-craft | 4 | |||
Number of Impaired Airbus A310-300 Aircraft Engines | Engine | 3 | |||
Number of Impaired Airbus A300-600 Aircraft | air-craft | 3 | |||
Number of Impaired Airbus A300-600 Aircraft Engines | Engine | 3 | |||
Number of Impaired Boeing MD10-10 Aircraft | air-craft | 1 | |||
Number of Impaired Boeing MD10-10 Aircraft Engines | Engine | 3 | |||
Asset impairments | $ 276 | |||
Asset impairments, net of tax | $ 175 | |||
Asset impairments Diluted EPS impact | $ / shares | $ 0.61 | |||
Asset impairment non-cash | $ 246 | |||
Stock Repurchase Program, Number Of Shares Authorized To Be Repurchased | shares | 25,000,000 | |||
Purchase of treasury stock | shares | 3,000,000 | 18,200,000 | 8,100,000 | |
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 172.13 | $ 149.35 | $ 154.03 | |
Payments for Repurchase of Common Stock | $ 509 | $ 2,722 | $ 1,254 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | shares | 16,000,000 | |||
Dividends Payable, Date Declared | Jun. 12, 2017 | |||
Dividends Payable Amount Per Share | $ / shares | $ 0.50 | |||
Dividends Payable, Date To Be Paid | Jul. 6, 2017 | |||
Dividends Payable, Date Of Record | Jun. 22, 2017 | |||
Minimum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Intangible assets amortization periods | 3 years | |||
Maximum [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Intangible assets amortization periods | 15 years |
Description of Business and S51
Description of Business and Summary of Significant Accounting Policies - Schedule of Depreciable Lives and Net Book Value of Our Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Net property and equipment | $ 25,981 | $ 24,284 |
Wide Body Aircraft and Related Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 15 to 30 years | |
Net property and equipment | $ 9,103 | 8,356 |
Narrow Body and Feeder Aircraft and Related Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 5 to 18 years | |
Net property and equipment | $ 3,099 | 3,180 |
Package Handling and Ground Support Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 3 to 30 years | |
Net property and equipment | $ 3,862 | 3,249 |
Information Technology [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 2 to 10 years | |
Net property and equipment | $ 1,114 | 1,051 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 3 to 15 years | |
Net property and equipment | $ 3,400 | 3,084 |
Facilities and Other Property [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 2 to 40 years | |
Net property and equipment | $ 5,403 | $ 5,364 |
Recent Accounting Guidance - Ad
Recent Accounting Guidance - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | [1] | Nov. 30, 2016 | [1] | Aug. 31, 2016 | [1] | May 31, 2016 | [2] | Feb. 29, 2016 | [2] | Nov. 30, 2015 | [2] | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | [4] | May 31, 2015 | [5] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Lease liability and related right-of-use asset | $ 13,000 | $ 13,000 | ||||||||||||||||||||
Operating income | $ 1,581 | [1] | $ 1,025 | $ 1,167 | $ 1,264 | $ (68) | $ 864 | $ 1,137 | $ 1,144 | 5,037 | [3] | $ 3,077 | $ 1,867 | |||||||||
ASU 201609 [Member] | ||||||||||||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Share-based payment tax benefit | $ 55 | |||||||||||||||||||||
Share-based payment change effect on diluted EPS | $ 0.17 | |||||||||||||||||||||
ASU 201703 [Member] | ||||||||||||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Operating income | $ 471 | |||||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | |||||||||||||||||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[4] | Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||||||||||||||||||
[5] | Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. |
Business Combinations - Additio
Business Combinations - Additional Information (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
May 31, 2016USD ($) | May 31, 2015USD ($) | May 31, 2017USD ($)Country | May 25, 2016USD ($) | May 25, 2016EUR (€) | Dec. 16, 2014USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 6,747 | $ 3,810 | $ 7,154 | |||
TNT acquisition related costs | 115 | |||||
TNT restructuring, impairments, litigation matters and pension adjustments | 40 | 320 | ||||
TNT acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price | $ 4,894 | $ 4,900 | € 4,400 | |||
Cash acquired | $ 280 | € 250 | ||||
Number of country for collection, transports and delivery of documents, parcels and freight | Country | 200 | |||||
Goodwill | $ 3,452 | |||||
Net increase in goodwill | $ 488 | |||||
GENCO Distribution System Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price | $ 1,400 | |||||
Bongo International LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price | $ 42 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation (Details) $ in Millions, € in Billions | May 31, 2017USD ($) | May 31, 2016USD ($) | May 25, 2016USD ($) | May 25, 2016EUR (€) | May 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 7,154 | $ 6,747 | $ 3,810 | |||
TNT acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | 1,852 | ||||
Property and equipment | 980 | |||||
Goodwill | 3,452 | |||||
Identifiable intangible assets | 530 | |||||
Other non-current assets | 472 | |||||
Current liabilities | [2] | (1,688) | ||||
Long-term liabilities | (704) | |||||
Total purchase price | 4,894 | $ 4,900 | € 4.4 | |||
TNT acquisition [Member] | Preliminary [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | 1,905 | ||||
Property and equipment | 1,104 | |||||
Goodwill | 2,964 | |||||
Identifiable intangible assets | 920 | |||||
Other non-current assets | 289 | |||||
Current liabilities | [2] | (1,644) | ||||
Long-term liabilities | (644) | |||||
Total purchase price | $ 4,894 | |||||
TNT acquisition [Member] | Measurement Period Adjustments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | (53) | ||||
Property and equipment | (124) | |||||
Goodwill | 488 | |||||
Identifiable intangible assets | (390) | |||||
Other non-current assets | 183 | |||||
Current liabilities | [2] | (44) | ||||
Long-term liabilities | $ (60) | |||||
[1] | Primarily accounts receivable and cash. | |||||
[2] | Primarily accounts payable and accrued expenses. |
Business Combinations - Sched55
Business Combinations - Schedule of Intangible Assets with Finite Lives (Details) - TNT Express Intangible [Member] $ in Millions | 12 Months Ended |
May 31, 2017USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Identifiable intangible assets | $ 530 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | 430 |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | 20 |
Trademarks [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | $ 80 |
Business Combinations - Sched56
Business Combinations - Schedule of Intangible Assets with Finite Lives (Parenthetical) (Details) - TNT Express Intangible [Member] | 12 Months Ended |
May 31, 2017 | |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 12 years |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 3 years |
Trademarks [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 4 years |
Business Combinations - Busines
Business Combinations - Business Acquisition Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Business Acquisition Pro Forma Information Abstract | ||
Consolidated revenues | $ 57,899 | $ 55,862 |
Consolidated net income | $ 1,600 | $ 638 |
Diluted earnings per share | $ 5.73 | $ 2.22 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2015 | ||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | $ 5,120 | ||||
Accumulated impairment charges | $ (1,310) | (1,310) | |||
GOODWILL | $ 7,154 | $ 6,747 | 7,154 | 3,810 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 6,747 | 3,810 | |||
Goodwill acquired | [1] | 2,964 | |||
Purchase adjustments and other | [2] | 407 | (27) | ||
Ending Goodwill at May 31 | 7,154 | 6,747 | |||
Accumulated impairment charges | (1,310) | (1,310) | |||
FedEx Express Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 1,677 | ||||
GOODWILL | 1,589 | 1,677 | 3,780 | 1,677 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 1,589 | 1,677 | |||
Purchase adjustments and other | [2] | 2,191 | (88) | ||
Ending Goodwill at May 31 | 3,780 | 1,589 | |||
TNT Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
GOODWILL | 2,964 | 2,964 | 1,180 | ||
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 2,964 | ||||
Goodwill acquired | [1] | 2,964 | |||
Purchase adjustments and other | [2] | (1,784) | |||
Ending Goodwill at May 31 | 1,180 | 2,964 | |||
FedEx Ground Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 1,145 | ||||
GOODWILL | 1,211 | 1,145 | 1,211 | 1,145 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 1,211 | 1,145 | |||
Purchase adjustments and other | [2] | 66 | |||
Ending Goodwill at May 31 | 1,211 | 1,211 | |||
FedEx Freight Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 773 | ||||
Accumulated impairment charges | (133) | (133) | |||
GOODWILL | 635 | 640 | 635 | 640 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 635 | 640 | |||
Purchase adjustments and other | [2] | (5) | |||
Ending Goodwill at May 31 | 635 | 635 | |||
Accumulated impairment charges | (133) | (133) | |||
FedEx Services Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 1,525 | ||||
Accumulated impairment charges | (1,177) | (1,177) | |||
GOODWILL | 348 | 348 | 348 | 348 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 348 | 348 | |||
Ending Goodwill at May 31 | $ 348 | $ 348 | |||
Accumulated impairment charges | $ (1,177) | $ (1,177) | |||
[1] | Goodwill acquired relates to the acquisition of TNT Express in 2016. See Note 3 for related disclosures. | ||||
[2] | Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. FY17 includes goodwill attributed to FedEx Express as part of the acquisition of TNT Express. |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Schedule Of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 846 | $ 1,237 |
Accumulated Amortization | (317) | (229) |
Net Book Value | 529 | 1,008 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 656 | 912 |
Accumulated Amortization | (203) | (156) |
Net Book Value | 453 | 756 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54 | 123 |
Accumulated Amortization | (26) | (16) |
Net Book Value | 28 | 107 |
Trademarks and other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 136 | 202 |
Accumulated Amortization | (88) | (57) |
Net Book Value | $ 48 | $ 145 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Intangible assets amortization expense | $ 91 | $ 14 | $ 21 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details) $ in Millions | May 31, 2017USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Abstract | |
2,018 | $ 81 |
2,019 | 71 |
2,020 | 55 |
2,021 | 44 |
2,022 | $ 41 |
Selected Current Liabilities (D
Selected Current Liabilities (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
Accrued Liabilities Current [Abstract] | ||
Salaries | $ 431 | $ 478 |
Employee benefits, including variable compensation | 781 | 804 |
Compensated absences | 702 | 690 |
Accrued salaries and employee benefits | 1,914 | 1,972 |
Self-insurance accruals | 976 | 837 |
Taxes other than income taxes | 283 | 311 |
Other | 1,971 | 1,915 |
Accrued expenses | $ 3,230 | $ 3,063 |
Long-term Debt and Other Fina63
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, 2017 | May 31, 2016 |
Debt Instrument [Line Items] | ||
Long Term Debt | $ 14,878 | $ 13,687 |
Other debt | 9 | 12 |
Capital lease obligations | 44 | 63 |
Total Debt and Capital Lease Obligations | 14,931 | 13,762 |
Less current portion | 22 | 29 |
LONG-TERM DEBT, LESS CURRENT PORTION | 14,909 | 13,733 |
Senior Unsecured Debt Due 2019 8.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 749 | 748 |
Senior Unsecured Debt Due 2020 2.30% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 398 | 397 |
Senior Unsecured Debt Due 2023 2.625-2.70% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 745 | 745 |
Senior Unsecured Debt Due 2024 4.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 745 | 744 |
Senior Unsecured Debt Due 2025 3.20% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 695 | 694 |
Senior Unsecured Debt Due 2026 3.25% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 743 | 743 |
Senior Unsecured Debt Due 2027 3.30% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 445 | |
Senior Unsecured Debt Issued 2034 4.90% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 495 | 495 |
Senior Unsecured Debt Due 2035 3.90% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 493 | 493 |
Senior Unsecured Debt Due 2043 3.875-4.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 983 | 982 |
Senior Unsecured Debt Due 2044 5.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 742 | 741 |
Senior Unsecured Debt Due 2045 4.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 640 | 640 |
Senior Unsecured Debt Due 2046 4.55-4.75% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 2,458 | 2,458 |
Senior Unsecured Debt Due 2047 4.40% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 734 | |
Senior Unsecured Debt Due 2065 4.50% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 246 | 245 |
Senior Unsecured Debt Due 2098 7.60% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 237 | 237 |
Euro Senior Unsecured Debt Due 2019 floating rate [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 558 | 557 |
Euro Senior Unsecured Debt Due 2020 0.50% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 557 | 556 |
Euro Senior Unsecured Debt Due 2023 1.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 833 | 832 |
Euro Senior Unsecured Debt Due 2027 1.625% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $ 1,382 | $ 1,380 |
Long-term Debt and Other Fina64
Long-term Debt and Other Financing Arrangements - Additional Information (Details) - USD ($) | Jan. 06, 2017 | May 31, 2017 | May 31, 2016 |
Line Of Credit Facility [Line Items] | |||
Long-term debt weighted average interest rate | 3.60% | ||
Long Term Debt Exclusive Of Capital Leases Fair Value | $ 15,500,000,000 | $ 14,300,000,000 | |
Line of Credit Facility, Expiration Date | Nov. 13, 2020 | ||
Financial Covenant Terms Ratio | 350.00% | ||
Financial Covenant Compliance Ratio | 190.00% | ||
Letters Of Credit Outstanding | $ 317,000,000 | ||
Commercial paper outstanding | $ 0 | ||
Revolving Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Term | 5 years | ||
Line Of Credit Facility Maximum Borrowing Capacity | $ 1,750,000,000 | ||
Letter of Credit [Member] | |||
Line Of Credit Facility [Line Items] | |||
Letter of Credit Maximum Sublimit Amount | 500,000,000 | ||
Letter of Credit Outstanding Sublimit Unused Amount | $ 183,000,000 | ||
Senior Unsecured Debt due March 2027 and January 2047 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Senior Unsecured Debt Issued | $ 1,200,000,000 | ||
Senior Unsecured Debt, Frequency of Periodic Interest Payment | semiannually | ||
3.30% Senior Unsecured Debt due March 2027 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Senior Unsecured Debt Issued | $ 450,000,000 | ||
Senior Unsecured Debt, Fixed Interest Rate Percentage | 3.30% | ||
Senior Unsecured Debt, Maturity Date | Mar. 15, 2027 | ||
4.40% Senior Unsecured Debt due January 2047 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Senior Unsecured Debt Issued | $ 750,000,000 | ||
Senior Unsecured Debt, Fixed Interest Rate Percentage | 4.40% | ||
Senior Unsecured Debt, Maturity Date | Jan. 15, 2047 | ||
EURIBOR [Member] | |||
Line Of Credit Facility [Line Items] | |||
Floating Rate Basis Points, Description | Our floating-rate Euro senior notes bear interest at three-month EURIBOR plus a spread of 55 basis points and resets quarterly. | ||
Floating Rate Basis Points | 0.55% |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Other Lease Information (Details) [Abstract] | ||
Capital and operating leases expiration term | Various dates through 2049 | |
Percentage Total Aircraft Fleet Leased | 9.00% | 10.00% |
Operating leases weighted-average remaining lease term | 6 years |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense Under Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
Operating Leases Rent Expense [Abstract] | ||||
Minimum rentals | $ 2,814 | $ 2,394 | $ 2,249 | |
Contingent rentals | [1] | 178 | 214 | 194 |
Operating leases rent expense, total | $ 2,992 | $ 2,608 | $ 2,443 | |
[1] | Contingent rentals are based on equipment usage. |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions | May 31, 2017USD ($) |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,018 | $ 2,445 |
2,019 | 2,230 |
2,020 | 1,931 |
2,021 | 1,709 |
2,022 | 1,540 |
Thereafter | 8,019 |
Total | 17,874 |
Aircraft and Related Equipment [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,018 | 398 |
2,019 | 343 |
2,020 | 261 |
2,021 | 203 |
2,022 | 185 |
Thereafter | 175 |
Total | 1,565 |
Facilities and Other [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,018 | 2,047 |
2,019 | 1,887 |
2,020 | 1,670 |
2,021 | 1,506 |
2,022 | 1,355 |
Thereafter | 7,844 |
Total | $ 16,309 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) | May 31, 2017$ / sharesshares |
Preferred Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Preferred Stock Shares Authorized | 4,000,000 |
Preferred Stock Par Value | $ / shares | $ 0 |
Preferred Stock Shares Issued | 0 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 13,784 | $ 14,993 | $ 15,277 |
Translation adjustments | (171) | (261) | (334) |
Ending balance | 16,073 | 13,784 | 14,993 |
Foreign Currency Translation Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (514) | (253) | 81 |
Translation adjustments | (171) | (261) | (334) |
Ending balance | (685) | (514) | (253) |
Retirement Plans Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 345 | 425 | 425 |
Prior service credit and other arising during period | 1 | (4) | 72 |
Reclassifications from AOCI | (76) | (76) | (72) |
Ending balance | 270 | 345 | 425 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (169) | 172 | 506 |
Ending balance | $ (415) | $ (169) | $ 172 |
Accumulated Other Comprehensi70
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, 2017 | May 31, 2016 | May 31, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and employee benefits | $ 120 | $ 121 | $ 115 |
Provision for income taxes | (44) | (45) | (43) |
Net income | $ (76) | $ (76) | $ (72) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |||
Stock-based compensation expense | $ 154 | $ 144 | $ 133 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
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 | 153,984 | 139,838 | 154,115 |
Restricted stock, weighted-average fair value | $ 166.12 | $ 168.83 | $ 148.89 |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Abstract | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 187 | ||
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 | 8.00% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Based Compensation Key Assumptions for Valuation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Weighted-average Black-Scholes value | $ 43.99 | $ 52.40 | $ 53.33 |
Intrinsic value of options exercised | $ 274 | $ 115 | $ 253 |
Expected lives | 6.5 years | 6.4 years | 6.3 years |
Expected volatility | 25.00% | 28.00% | 34.00% |
Risk-free interest rate | 1.64% | 1.94% | 2.02% |
Dividend yield | 0.719% | 0.519% | 0.448% |
Stock-Based Compensation - Sc74
Stock-Based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 31, 2017USD ($)$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Stock Options, Outstanding at June 1, 2016 | 14,441,431 | |
Stock Options, Granted | 2,783,968 | |
Stock Options, Exercised | (3,330,197) | |
Stock Options, Forfeited | (296,503) | |
Stock Options, Outstanding at May 31, 2017 | 13,598,699 | |
Stock Options, Exercisable | 7,820,992 | |
Stock Options, Expected to vest | 5,473,800 | |
Stock Options, Available for future grants | 8,304,621 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract] | ||
Weighted-Average Exercise Price, Outstanding at June 1, 2016 | $ / shares | $ 111.99 | |
Weighted-Average Exercise Price, Granted | $ / shares | 169.73 | |
Weighted-Average Exercise Price, Exercised | $ / shares | 100.65 | |
Weighted-Average Exercise Price, Forfeited | $ / shares | 152.91 | |
Weighted-Average Exercise Price, Outstanding at May 31, 2017 | $ / shares | 125.66 | |
Weighted-Average Exercise Price, Exercisable | $ / shares | 100.92 | |
Weighted-Average Exercise Price, Expected to vest | $ / shares | $ 159.15 | |
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, 2017 | 6 years 2 months 12 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 8 months 12 days | |
Weighted-Average Remaining Contractual Term, Expected to vest | 8 years 2 months 12 days | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ||
Aggregate Intrinsic Value, Outstanding at May 31, 2017 | $ | $ 928 | [1] |
Aggregate Intrinsic Value, Exercisable | $ | 727 | [1] |
Aggregate Intrinsic Value, Expected to vest | $ | $ 191 | [1] |
[1] | Only presented for options with market value at May 31, 2017 in excess of the exercise price of the option. |
Stock-Based Compensation - Sc75
Stock-Based Compensation - Schedule of Vested and Unvested Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | |||
Restricted Stock, Unvested at June 1, 2016 | 389,152 | ||
Restricted Stock, Granted | 153,984 | 139,838 | 154,115 |
Restricted Stock, Vested | (177,877) | ||
Restricted Stock, Forfeited | (2,955) | ||
Restricted Stock, Unvested at May 31, 2017 | 362,304 | 389,152 | |
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, 2016 | $ 136.57 | ||
Weighted-Average Grant Date Fair Value, Granted | 166.12 | $ 168.83 | $ 148.89 |
Weighted-Average Grant Date Fair Value, Vested | 123.25 | ||
Weighted-Average Grant Date Fair Value, Forfeited | 159.46 | ||
Weighted-Average Grant Date Fair Value, Unvested at May 31, 2017 | $ 155.53 | $ 136.57 |
Stock-Based Compensation - Sc76
Stock-Based Compensation - Schedule of Stock Option Vesting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | |||
Vested during the year | 2,427,837 | 2,572,129 | 2,611,524 |
Fair value | $ 104 | $ 98 | $ 83 |
Computation of Earnings Per S77
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
May 31, 2017 | [2],[3] | Feb. 28, 2017 | [2],[3] | Nov. 30, 2016 | [2],[3] | Aug. 31, 2016 | [2],[3] | May 31, 2016 | [3],[4] | Feb. 29, 2016 | [3],[4] | Nov. 30, 2015 | [3],[4] | Aug. 31, 2015 | [3],[4] | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
Basic earnings per common share: | ||||||||||||||||||||
Net earnings allocable to common shares | [1] | $ 2,993 | $ 1,818 | $ 1,048 | ||||||||||||||||
Weighted-average common shares | 266 | 276 | 283 | |||||||||||||||||
Basic earnings per common share | $ 3.81 | $ 2.11 | $ 2.63 | $ 2.69 | $ (0.26) | $ 1.86 | $ 2.47 | $ 2.45 | $ 11.24 | $ 6.59 | $ 3.70 | |||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Net earnings allocable to common shares | [1] | $ 2,993 | $ 1,818 | $ 1,048 | ||||||||||||||||
Weighted-average common shares | 266 | 276 | 283 | |||||||||||||||||
Dilutive effect of share-based awards | 4 | 3 | 4 | |||||||||||||||||
Weighted-average diluted shares | 270 | 279 | 287 | |||||||||||||||||
Diluted earnings per common share | $ 3.75 | $ 2.07 | $ 2.59 | $ 2.65 | $ (0.26) | $ 1.84 | $ 2.44 | $ 2.42 | $ 11.07 | $ 6.51 | $ 3.65 | |||||||||
Anti-dilutive options excluded from diluted earnings per common share | 4.5 | 3.9 | 2.1 | |||||||||||||||||
[1] | Net earnings available to participating securities were immaterial in all periods presented. | |||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||
[3] | The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. | |||||||||||||||||||
[4] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Current provision | |||
Federal | $ 269 | $ 513 | $ 795 |
State and local | 88 | 72 | 102 |
Foreign | 285 | 200 | 214 |
Current Provision, Total | 642 | 785 | 1,111 |
Deferred provision (benefit) | |||
Federal | 989 | 155 | (474) |
State and local | 59 | (18) | (47) |
Foreign | (108) | (2) | (13) |
Deferred Provision, Total | 940 | 135 | (534) |
Provision for Income Taxes, Total | $ 1,582 | $ 920 | $ 577 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 31, 2016 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Taxes [Line Items] | ||||
Earnings From Foreign Operations | $ 919 | $ 905 | $ 773 | |
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% | |
Internal restructuring | $ 76 | $ 76 | ||
Permanently Reinvested Earnings of Foreign Subsidiaries | $ 2,100 | 1,600 | ||
Cash in Offshore Jurisdictions Associated With Permanent Reinvestment Strategy | 522 | 1,200 | 522 | |
Unrecognized Tax Benefits That Would Impact Effective Tax Rate | 45 | 63 | 45 | |
Unrecognized Tax Benefits Accrued Income Tax Penalties And Interest | $ 11 | $ 11 | $ 11 | |
U.S. [Member] | ||||
Income Taxes [Line Items] | ||||
Percent Income Earned in Domestic Companies | 90.00% | |||
Foreign Country [Member] | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | $ 3,600 | |||
State And Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | 663 | |||
Adoption of U.S. Foreign Currency Tax Regulations [Member] | ||||
Income Taxes [Line Items] | ||||
Impact on tax rate, amount | 62 | |||
Accounting Standards Update on Share-based Payments [Member] | ||||
Income Taxes [Line Items] | ||||
Impact on tax rate, amount | $ 55 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Taxes computed at federal statutory rate | $ 1,603 | $ 959 | $ 569 |
State and local income taxes, net of federal benefit | 99 | 33 | 36 |
Foreign operations | (87) | (50) | (43) |
Legal entity restructuring | (76) | ||
TNT Express integration/acquisition costs | 25 | 40 | |
Other, net | (58) | 14 | 15 |
Provision for Income Taxes, Total | $ 1,582 | $ 920 | $ 577 |
Effective Tax Rate | 34.60% | 33.60% | 35.50% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Property, equipment, leases and intangibles | $ 124 | $ 129 |
Employee benefits | 1,951 | 2,453 |
Self-insurance accruals | 745 | 681 |
Other | 692 | 528 |
Net operating loss/credit carryforwards | 1,069 | 925 |
Valuation allowances | (738) | (738) |
Deferred Tax Assets, Net | 3,843 | 3,978 |
Property, equipment, leases and intangibles | 4,993 | 4,767 |
Other | 660 | 343 |
Deferred Tax Liabilities | $ 5,653 | $ 5,110 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Liabilities (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 | |
Deferred Tax Assets Liabilities Net [Abstract] | |||
Noncurrent deferred tax assets(1) | [1] | $ 675 | $ 435 |
Noncurrent deferred tax liabilities | (2,485) | (1,567) | |
Net deferred tax liabilities | $ (1,810) | $ (1,132) | |
[1] | Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Balance at beginning of year | $ 49 | $ 36 | $ 38 |
Increases for tax positions taken in the current year | 3 | 1 | |
Increases for tax positions taken in prior years | 8 | 3 | 6 |
Increase for business acquisition | 17 | 25 | |
Decreases for tax positions taken in prior years | (1) | (5) | (2) |
Settlements | (4) | (4) | (2) |
Decreases from lapse of statute of limitations | (2) | (7) | |
Changes due to currency translation | (2) | (5) | |
Balance at end of year | $ 67 | $ 49 | $ 36 |
Retirement Plans - Summary of R
Retirement Plans - Summary of Retirement Plan Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |||
Defined benefit pension plans | $ 234 | $ 214 | $ (41) |
Defined contribution plans | 480 | 416 | 385 |
Postretirement healthcare plans | 76 | 82 | 81 |
Retirement plans mark-to-market adjustment | (24) | 1,498 | 2,190 |
Retirement plans costs | $ 766 | $ 2,210 | $ 2,615 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Pre-tax-mark-to-market Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Actuarial Gain Loss By Component Pre Tax [Abstract] | |||||
Actual versus expected return on assets | $ (740) | $ 1,285 | $ (35) | ||
Discount rate changes | 266 | 1,129 | 791 | ||
Demographic assumption experience | 450 | (916) | 1,434 | ||
Total mark-to-market (gain) loss | $ (24) | $ 1,500 | $ (24) | $ 1,498 | $ 2,190 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 31, 2017USD ($)Employee | May 31, 2018USD ($) | May 31, 2017USD ($) | May 31, 2016USD ($) | May 31, 2015USD ($) | May 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
U.S. pension plan actual rate of return on assets | 9.60% | 1.20% | ||||
Weighted average discount rate percent all pension postretirement plans | 3.98% | 4.04% | 4.38% | 4.57% | ||
Increase in overall projected benefit obligation due to new mortality table. | $ 1,200 | |||||
Actual rate of return on plan assets for the 15-year period | 7.80% | |||||
Defined benefit plan health care cost trend rate assumed for next fiscal year | 7.80% | |||||
Defined benefit plan ultimate health care cost trend rate | 4.50% | |||||
Defined benefit plan year that rate reaches ultimate trend rate | 2,037 | 2,037 | ||||
U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected long-term rate of return on assets | 6.50% | 6.50% | 7.75% | |||
Number of former employees elected to receive lump sum distribution | Employee | 18,300 | |||||
Lump sum amount paid to former employees | $ 1,300 | |||||
Defined benefit plan contributions by employer | $ 2,020 | $ 693 | ||||
U.S. Pension Plans [Member] | Scenario, Forecast [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan contributions by employer | $ 1,000 | |||||
Defined benefit pension plan, required employer contribution | $ 700 | |||||
Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected long-term rate of return on assets | 6.50% | 6.50% | 7.75% |
Retirement Plans - Schedule o87
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, 2017 | May 31, 2016 | May 31, 2015 | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 4.08% | 4.13% | 4.42% |
Discount rate used to determine net periodic benefit cost | 4.13% | 4.42% | 4.60% |
Rate of increase in future compensation levels used to determine benefit obligation | 4.47% | 4.46% | 4.62% |
Rate of increase in future compensation levels used to determine net periodic benefit cost | 4.46% | 4.62% | 4.56% |
Expected long-term rate of return on assets | 6.50% | 6.50% | 7.75% |
U.S. Pension Plans [Member] | Segment [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% |
International Pension Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 2.43% | 2.46% | 2.95% |
Discount rate used to determine net periodic benefit cost | 2.46% | 2.95% | 3.57% |
Rate of increase in future compensation levels used to determine benefit obligation | 2.42% | 2.82% | 3.19% |
Rate of increase in future compensation levels used to determine net periodic benefit cost | 2.82% | 3.19% | 3.31% |
International Pension Plans [Member] | Segment [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Expected long-term rate of return on assets | 3.18% | 3.68% | 5.13% |
Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 4.32% | 4.43% | 4.60% |
Discount rate used to determine net periodic benefit cost | 4.43% | 4.62% | 4.70% |
Retirement Plans - Schedule o88
Retirement Plans - Schedule of Weighted-Average Asset Allocations for U.S Pension Plans and International Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
May 31, 2017 | May 31, 2016 | May 31, 2015 | ||||
U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 24,933 | $ 23,017 | $ 23,006 | |||
Actual % | 100.00% | 100.00% | ||||
International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 1,379 | $ 1,254 | $ 499 | |||
Portion of Fair Value of Plan Assets | $ 1,206 | $ 1,092 | ||||
Actual % | 100.00% | 100.00% | ||||
Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 4,429 | $ 4,119 | ||||
Fair Value Inputs Level 1 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | 95 | 203 | ||||
Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 12,955 | 12,499 | ||||
Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | 398 | 396 | ||||
Fair Value Inputs Level 3 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 129 | 48 | ||||
Cash And Cash Equivalents [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 1,076 | $ 568 | ||||
Actual % | 4.00% | 2.00% | ||||
Target % | [1] | 0 - 5% | 0 - 5% | |||
Cash And Cash Equivalents [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | $ 48 | $ 211 | ||||
Actual % | 4.00% | 19.00% | ||||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 26 | $ 76 | ||||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 1 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | 2 | 157 | ||||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 1,050 | 492 | ||||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | 46 | 54 | ||||
U.S. Large Cap Equity [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 2,415 | $ 3,257 | |||
Actual % | [2] | 10.00% | 14.00% | |||
U.S. Large Cap Equity [Member] | Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 830 | $ 750 | |||
International Equity Securities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 3,521 | $ 3,381 | |||
Actual % | [2] | 14.00% | 15.00% | |||
International Equity Securities [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 137 | $ 124 | |||
Actual % | [2] | 11.00% | 11.00% | |||
International Equity Securities [Member] | Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 2,747 | $ 2,685 | |||
International Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | 157 | 121 | |||
International Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | 72 | 63 | |||
Global Equity Funds [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 3,276 | $ 2,794 | |||
Actual % | [2] | 13.00% | 12.00% | |||
Global Equity Funds [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 202 | $ 148 | |||
Actual % | [2] | 17.00% | 14.00% | |||
U.S. SMID Cap Equity [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 987 | $ 913 | ||||
Actual % | 4.00% | 4.00% | ||||
U.S. SMID Cap Equity [Member] | Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 987 | $ 913 | ||||
Corporate Fixed Income Securities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 8,163 | $ 6,608 | ||||
Actual % | 33.00% | 29.00% | ||||
Corporate Fixed Income Securities [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 270 | $ 122 | |||
Actual % | [2] | 22.00% | 11.00% | |||
Corporate Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 8,163 | $ 6,608 | ||||
Corporate Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | 49 | 44 | |||
Government Fixed Income Securities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 4,674 | [2] | $ 5,148 | |||
Actual % | 19.00% | [2] | 22.00% | |||
Government Fixed Income Securities [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 405 | $ 324 | |||
Actual % | [2] | 34.00% | 30.00% | |||
Government Fixed Income Securities [Member] | Fair Value Inputs Level 1 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 95 | $ 60 | |||
Government Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 3,454 | [2] | 5,148 | |||
Government Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | 230 | 213 | |||
Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 603 | $ 347 | |||
Actual % | [2] | 2.00% | 2.00% | |||
Mortgage Backed And Other Fixed Income Securities [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | [2] | $ 145 | $ 134 | |||
Actual % | [2] | 12.00% | 12.00% | |||
Mortgage Backed And Other Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 129 | $ 146 | |||
Alternative investments [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | $ 377 | $ 322 | |||
Actual % | [2] | 2.00% | 1.00% | |||
Target % | [1],[2] | 0 - 5 | 0 - 5 | |||
Alternative investments [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | $ 17 | $ 39 | [2] | |||
Actual % | 1.00% | 4.00% | [2] | |||
Alternative investments [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | $ 17 | $ 18 | [2] | |||
Alternative investments [Member] | Fair Value Inputs Level 3 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | [2] | 129 | 48 | |||
Other [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ (159) | $ (321) | ||||
Actual % | (1.00%) | (1.00%) | ||||
Other [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | $ (18) | $ (10) | ||||
Actual % | (1.00%) | (1.00%) | ||||
Other [Member] | Fair Value Inputs Level 1 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ (161) | $ (305) | ||||
Other [Member] | Fair Value Inputs Level 1 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | (2) | (14) | ||||
Other [Member] | Fair Value Inputs Level 2 [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 2 | (16) | ||||
Other [Member] | Fair Value Inputs Level 2 [Member] | International Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Portion of Fair Value of Plan Assets | $ (16) | $ 4 | ||||
Total Equities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target % | [1] | 30 - 50 | 35 - 55 | |||
Total Fixed Income Securities [Member] | U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Target % | [1] | 50 - 70 | 45 - 65 | |||
[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. |
Retirement Plans - Schedule o89
Retirement Plans - Schedule of Change in Fair Value of Level 3 Assets (Details) - U.S. Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ 23,017 | $ 23,006 |
Actual return on plan assets: | ||
Balance at end of year | 24,933 | 23,017 |
Fair Value Inputs Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 48 | |
Actual return on plan assets: | ||
Assets held during current year | 5 | 2 |
Assets sold during the year | 1 | |
Purchases, sales and settlements | 75 | 46 |
Balance at end of year | $ 129 | $ 48 |
Retirement Plans - Reconciliati
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, 2017 | May 31, 2016 | May 31, 2015 | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation (“ABO”) | $ 27,244 | $ 27,236 | |
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||
PBO/APBO at the beginning of year | 27,804 | 26,636 | |
Service cost | 638 | 622 | $ 615 |
Interest cost | 1,128 | 1,155 | 1,068 |
Actuarial loss | 571 | 284 | |
Benefits paid | (2,271) | (893) | |
PBO/APBO at the end of year | 27,870 | 27,804 | 26,636 |
Change in Plan Assets | |||
Balance at beginning of year | 23,017 | 23,006 | |
Actual return on plan assets | 2,167 | 211 | |
Company contributions | 2,020 | 693 | |
Benefits paid | (2,271) | (893) | |
Balance at end of year | 24,933 | 23,017 | 23,006 |
Funded Status of the Plans | (2,937) | (4,787) | |
Amount Recognized in the Balance Sheet at May 31: | |||
Current pension, postretirement healthcare and other benefit obligations | (33) | (19) | |
Noncurrent pension, postretirement healthcare and other benefit obligations | (2,904) | (4,768) | |
Net amount recognized | (2,937) | (4,787) | |
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||
Prior service credit and other | (410) | (528) | |
Defined Benefit Plan Amounts That Will Be Amortized From Accumulated Other Comprehensive Income Loss In Next Fiscal Year Abstract | |||
Prior service credit and other | (118) | (118) | |
International Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation (“ABO”) | 1,842 | 1,609 | |
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||
PBO/APBO at the beginning of year | 1,798 | 876 | |
Service cost | 83 | 40 | 38 |
Interest cost | 43 | 25 | 28 |
Actuarial loss | 161 | (7) | |
Benefits paid | (38) | (19) | |
Business acquisition | 907 | ||
Purchase accounting adjustment | 26 | ||
Other | (30) | (24) | |
PBO/APBO at the end of year | 2,043 | 1,798 | 876 |
Change in Plan Assets | |||
Balance at beginning of year | 1,254 | 499 | |
Actual return on plan assets | 112 | 12 | |
Company contributions | 95 | 33 | |
Benefits paid | (38) | (19) | |
Business acquisition | 761 | ||
Other | (44) | (32) | |
Balance at end of year | 1,379 | 1,254 | 499 |
Funded Status of the Plans | (664) | (544) | |
Amount Recognized in the Balance Sheet at May 31: | |||
Noncurrent asset | 40 | 53 | |
Current pension, postretirement healthcare and other benefit obligations | (17) | (12) | |
Noncurrent pension, postretirement healthcare and other benefit obligations | (687) | (585) | |
Net amount recognized | (664) | (544) | |
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||
Prior service credit and other | (13) | (18) | |
Defined Benefit Plan Amounts That Will Be Amortized From Accumulated Other Comprehensive Income Loss In Next Fiscal Year Abstract | |||
Prior service credit and other | (2) | (3) | |
Postretirement Healthcare Plans [Member] | |||
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||
PBO/APBO at the beginning of year | 905 | 929 | |
Service cost | 36 | 40 | 40 |
Interest cost | 39 | 42 | 41 |
Actuarial loss | (14) | (64) | |
Benefits paid | (72) | (78) | |
Other | 33 | 36 | |
PBO/APBO at the end of year | 927 | 905 | $ 929 |
Change in Plan Assets | |||
Company contributions | 36 | 42 | |
Benefits paid | (72) | (78) | |
Other | 36 | 36 | |
Funded Status of the Plans | (927) | (905) | |
Amount Recognized in the Balance Sheet at May 31: | |||
Current pension, postretirement healthcare and other benefit obligations | (39) | (40) | |
Noncurrent pension, postretirement healthcare and other benefit obligations | (888) | (865) | |
Net amount recognized | (927) | $ (905) | |
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||
Prior service credit and other | $ (4) |
Retirement Plans - Schedule o91
Retirement Plans - Schedule of Components of Pension Plans (Details) - Pension Plans [Member] - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | $ 29,913 | $ 29,602 |
Fair Value of Plan Assets | 26,312 | 24,271 |
Funded Status | (3,601) | (5,331) |
Qualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 27,600 | 27,543 |
Fair Value of Plan Assets | 24,933 | 23,017 |
Funded Status | (2,667) | (4,526) |
Nonqualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 270 | 261 |
Funded Status | (270) | (261) |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 2,043 | 1,798 |
Fair Value of Plan Assets | 1,379 | 1,254 |
Funded Status | $ (664) | $ (544) |
Retirement Plans - Schedule o92
Retirement Plans - Schedule of Fair Value of Plan Assets for Pension Plans with a PBO or ABO in Excess of Plan Assets (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 24,933 | $ 23,017 | |
PBO | (27,870) | (27,804) | |
Net funded status | (2,937) | (4,787) | |
ABO | [1] | (27,244) | (27,236) |
Fair value of plan assets | 24,933 | 23,017 | |
PBO | (27,870) | (27,804) | |
Net funded status | (2,937) | (4,787) | |
International Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 952 | 850 | |
PBO | (1,656) | (1,447) | |
Net funded status | (704) | (597) | |
ABO | [1] | (1,433) | (1,257) |
Fair value of plan assets | 928 | 848 | |
PBO | (1,626) | (1,445) | |
Net funded status | $ (698) | $ (597) | |
[1] | ABO not used in determination of funded status. |
Retirement Plans - Schedule o93
Retirement Plans - Schedule of Pension Plans Contributions (Details) - U.S. Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Contributions By Employer | $ 2,000 | $ 660 |
Required Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Contributions By Employer | 459 | 8 |
Voluntary Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Contributions By Employer | $ 1,541 | $ 652 |
Retirement Plans - Schedule o94
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
U.S. Pension Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | $ 638 | $ 622 | $ 615 |
Interest cost | 1,128 | 1,155 | 1,068 |
Expected return on plan assets | (1,501) | (1,490) | (1,655) |
Amortization of prior service credit | (118) | (118) | (112) |
Actuarial losses (gains) and other | (95) | 1,563 | 2,154 |
Net periodic benefit cost | 52 | 1,732 | 2,070 |
International Pension Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | 83 | 40 | 38 |
Interest cost | 43 | 25 | 28 |
Expected return on plan assets | (38) | (18) | (23) |
Amortization of prior service credit | (2) | (3) | (3) |
Actuarial losses (gains) and other | 87 | (1) | 36 |
Net periodic benefit cost | 173 | 43 | 76 |
Postretirement Healthcare Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | 36 | 40 | 40 |
Interest cost | 39 | 42 | 41 |
Actuarial losses (gains) and other | (14) | (64) | 6 |
Net periodic benefit cost | $ 61 | $ 18 | $ 87 |
Retirement Plans - Schedule o95
Retirement Plans - Schedule of Amounts Recognized in Other Comprehensive Income ("OCI") for All Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | $ 75 | $ 80 |
U.S. Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax | 118 | 118 |
Total recognized in OCI, Gross Amount | 118 | 118 |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | 74 | 74 |
Total recognized in OCI, Net of Tax Amount | 74 | 74 |
International Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss and other arising during period, Gross Amount | 1 | |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax | 2 | 3 |
Total recognized in OCI, Gross Amount | 3 | 3 |
Net (gain) loss and other arising during period, Net of Tax Amount | 1 | |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | 2 | 2 |
Total recognized in OCI, Net of Tax Amount | 3 | $ 2 |
Postretirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net (gain) loss and other arising during period, Gross Amount | (3) | |
Total recognized in OCI, Gross Amount | (3) | |
Net (gain) loss and other arising during period, Net of Tax Amount | (2) | |
Total recognized in OCI, Net of Tax Amount | $ (2) |
Retirement Plans - Schedule o96
Retirement Plans - Schedule of Expected Future Benefit Payments (Details) $ in Millions | May 31, 2017USD ($) |
U.S. Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 1,013 |
2,019 | 1,070 |
2,020 | 1,169 |
2,021 | 1,233 |
2,022 | 1,345 |
2023-2027 | 8,565 |
International Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 44 |
2,019 | 43 |
2,020 | 48 |
2,021 | 53 |
2,022 | 59 |
2023-2027 | 789 |
Postretirement Healthcare Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 39 |
2,019 | 40 |
2,020 | 42 |
2,021 | 42 |
2,022 | 43 |
2023-2027 | $ 246 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | [1] | Nov. 30, 2016 | [1] | Aug. 31, 2016 | [1] | May 31, 2016 | Feb. 29, 2016 | [2] | Nov. 30, 2015 | [2] | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | May 31, 2015 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | $ 15,728 | [1] | $ 14,997 | $ 14,931 | $ 14,663 | $ 12,979 | [2] | $ 12,654 | $ 12,453 | $ 12,279 | $ 60,319 | $ 50,365 | $ 47,453 | ||||||||||
Depreciation and amortization | 2,995 | 2,631 | 2,611 | ||||||||||||||||||||
Operating income | 1,581 | [1] | $ 1,025 | $ 1,167 | $ 1,264 | (68) | [2] | $ 864 | $ 1,137 | $ 1,144 | 5,037 | [3] | 3,077 | [4] | 1,867 | [5] | |||||||
Segment assets | [6] | 48,552 | 45,959 | 48,552 | 45,959 | 36,469 | |||||||||||||||||
Capital expenditures | 5,116 | 4,818 | 4,347 | ||||||||||||||||||||
FedEx Express Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 27,358 | 26,451 | 27,239 | ||||||||||||||||||||
Depreciation and amortization | 1,431 | 1,385 | 1,460 | ||||||||||||||||||||
Operating income | 2,678 | [3] | 2,519 | [4] | 1,584 | [5] | |||||||||||||||||
Segment assets | [6] | 24,882 | 21,205 | 24,882 | 21,205 | 20,382 | |||||||||||||||||
Capital expenditures | 2,525 | 2,356 | 2,380 | ||||||||||||||||||||
TNT Express Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 7,401 | ||||||||||||||||||||||
Depreciation and amortization | 239 | ||||||||||||||||||||||
Operating income | [3] | 84 | |||||||||||||||||||||
Segment assets | [6] | 6,939 | 6,939 | ||||||||||||||||||||
Capital expenditures | 205 | ||||||||||||||||||||||
FedEx Ground Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 18,075 | 16,574 | 12,984 | ||||||||||||||||||||
Depreciation and amortization | 684 | 608 | 530 | ||||||||||||||||||||
Operating income | 2,292 | [3] | 2,276 | [4] | 2,172 | [5] | |||||||||||||||||
Segment assets | [6] | 14,628 | 13,098 | 14,628 | 13,098 | 11,691 | |||||||||||||||||
Capital expenditures | 1,539 | 1,597 | 1,248 | ||||||||||||||||||||
FedEx Freight Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 6,443 | 6,200 | 6,191 | ||||||||||||||||||||
Depreciation and amortization | 269 | 248 | 230 | ||||||||||||||||||||
Operating income | 397 | [3] | 426 | [4] | 484 | [5] | |||||||||||||||||
Segment assets | [6] | 3,925 | 3,749 | 3,925 | 3,749 | 3,471 | |||||||||||||||||
Capital expenditures | 431 | 433 | 337 | ||||||||||||||||||||
FedEx Services Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,621 | 1,593 | 1,545 | ||||||||||||||||||||
Depreciation and amortization | 371 | 384 | 390 | ||||||||||||||||||||
Segment assets | [6] | 5,682 | 5,390 | 5,682 | 5,390 | 5,356 | |||||||||||||||||
Capital expenditures | 416 | 432 | 381 | ||||||||||||||||||||
Eliminations, corporate and other [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | [7] | (579) | (453) | (506) | |||||||||||||||||||
Depreciation and amortization | [7] | 1 | 6 | 1 | |||||||||||||||||||
Operating income | [7] | (414) | [3] | (2,144) | [4] | (2,373) | [5] | ||||||||||||||||
Segment assets | [6],[7] | $ (7,504) | $ 2,517 | $ (7,504) | $ 2,517 | (4,431) | |||||||||||||||||
Capital expenditures | $ 1 | ||||||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | ||||||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | ||||||||||||||||||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | ||||||||||||||||||||||
[4] | Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | ||||||||||||||||||||||
[5] | Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. | ||||||||||||||||||||||
[6] | Segment assets include intercompany receivables. | ||||||||||||||||||||||
[7] | Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). |
Business Segment Information 98
Business Segment Information - Schedule of Segment Information (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||
TNT express integration expenses and restructuring charges | $ 124 | $ 78 | $ 58 | $ 68 | $ 327 | |||||
Charges for legal reserves related to U.S. CBP pending protection matters | 39 | 39 | ||||||||
Ground independent contractor litigation expense | 22 | $ 11 | 22 | |||||||
U.S. CBP notice of action settlement | $ 69 | $ 69 | ||||||||
Ground independent contractor litigation provision | $ 204 | $ 41 | 256 | $ 197 | ||||||
Asset impairment charges | 276 | |||||||||
TNT acquisition [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Increase in intangible asset amortization | $ 20 | $ 16 | $ 10 | $ 28 | 74 | |||||
Transaction and integration planning expenses | 113 | |||||||||
Eliminations, corporate and other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Mark to market pension accounting | $ (24) | $ 1,500 | $ 2,200 |
Business Segment Information 99
Business Segment Information - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | [1] | Nov. 30, 2016 | [1] | Aug. 31, 2016 | [1] | May 31, 2016 | Feb. 29, 2016 | [2] | Nov. 30, 2015 | [2] | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | $ 15,728 | [1] | $ 14,997 | $ 14,931 | $ 14,663 | $ 12,979 | [2] | $ 12,654 | $ 12,453 | $ 12,279 | $ 60,319 | $ 50,365 | $ 47,453 | |||||||
Assets Noncurrent | $ 35,924 | $ 33,970 | 35,924 | 33,970 | 26,134 | |||||||||||||||
FedEx Express Segment [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 27,358 | 26,451 | 27,239 | |||||||||||||||||
FedEx Express Segment [Member] | U.S. overnight box [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 6,958 | 6,763 | 6,704 | |||||||||||||||||
FedEx Express Segment [Member] | U.S. overnight envelope [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 1,750 | 1,662 | 1,629 | |||||||||||||||||
FedEx Express Segment [Member] | U.S. deferred [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 3,528 | 3,379 | 3,342 | |||||||||||||||||
FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 12,236 | 11,804 | 11,675 | |||||||||||||||||
FedEx Express Segment [Member] | International priority [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 5,827 | 5,697 | 6,251 | |||||||||||||||||
FedEx Express Segment [Member] | International economy [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 2,412 | 2,282 | 2,301 | |||||||||||||||||
FedEx Express Segment [Member] | Total international export package revenue [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 8,239 | 7,979 | 8,552 | |||||||||||||||||
FedEx Express Segment [Member] | International domestic [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | [3] | 1,299 | 1,285 | 1,406 | ||||||||||||||||
FedEx Express Segment [Member] | Total package revenue [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 21,774 | 21,068 | 21,633 | |||||||||||||||||
FedEx Express Segment [Member] | U.S. freight [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 2,528 | 2,481 | 2,300 | |||||||||||||||||
FedEx Express Segment [Member] | International priority freight [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 1,502 | 1,384 | 1,588 | |||||||||||||||||
FedEx Express Segment [Member] | International Airfreight [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 118 | 126 | 180 | |||||||||||||||||
FedEx Express Segment [Member] | Total freight revenue [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 4,148 | 3,991 | 4,068 | |||||||||||||||||
FedEx Express Segment [Member] | Other [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | [4] | 1,436 | 1,392 | 1,538 | ||||||||||||||||
TNT Express Segment [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 7,401 | |||||||||||||||||||
FedEx Ground Segment [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 18,075 | 16,574 | 12,984 | |||||||||||||||||
FedEx Ground Segment [Member] | FedEx Ground [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 16,497 | 15,050 | 12,568 | |||||||||||||||||
FedEx Ground Segment [Member] | FedEx Supply Chain [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 1,578 | 1,524 | 416 | |||||||||||||||||
FedEx Freight Segment [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 6,443 | 6,200 | 6,191 | |||||||||||||||||
FedEx Services Segment [Member] | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | 1,621 | 1,593 | 1,545 | |||||||||||||||||
Corporate, eliminations and other | ||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||||||||||||
Revenues | [5] | $ (579) | $ (453) | $ (506) | ||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | |||||||||||||||||||
[3] | International domestic revenues represent our intra-country operations. | |||||||||||||||||||
[4] | Includes FedEx Trade Networks and FedEx SupplyChain Systems. | |||||||||||||||||||
[5] | Includes TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). |
Business Segment Information100
Business Segment Information - Schedule of Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | [1] | Nov. 30, 2016 | [1] | Aug. 31, 2016 | [1] | May 31, 2016 | Feb. 29, 2016 | [2] | Nov. 30, 2015 | [2] | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | $ 15,728 | [1] | $ 14,997 | $ 14,931 | $ 14,663 | $ 12,979 | [2] | $ 12,654 | $ 12,453 | $ 12,279 | $ 60,319 | $ 50,365 | $ 47,453 | |||||||
Assets Noncurrent | 35,924 | 33,970 | 35,924 | 33,970 | 26,134 | |||||||||||||||
U.S. [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 40,269 | 38,070 | 34,216 | |||||||||||||||||
Assets Noncurrent | 28,141 | 25,942 | 28,141 | 25,942 | 23,520 | |||||||||||||||
International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | 20,050 | 12,295 | 13,237 | ||||||||||||||||
Assets Noncurrent | $ 7,783 | $ 8,028 | 7,783 | 8,028 | 2,614 | |||||||||||||||
FedEx Express Segment [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 27,358 | 26,451 | 27,239 | |||||||||||||||||
FedEx Express Segment [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | 12,094 | 11,672 | 12,772 | ||||||||||||||||
TNT Express Segment [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 7,401 | |||||||||||||||||||
TNT Express Segment [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | 7,346 | ||||||||||||||||||
FedEx Ground Segment [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 18,075 | 16,574 | 12,984 | |||||||||||||||||
FedEx Ground Segment [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | 451 | 383 | 311 | ||||||||||||||||
FedEx Freight Segment [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 6,443 | 6,200 | 6,191 | |||||||||||||||||
FedEx Freight Segment [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | 149 | 137 | 142 | ||||||||||||||||
FedEx Services Segment [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | 1,621 | 1,593 | 1,545 | |||||||||||||||||
FedEx Services Segment [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3] | $ 10 | 10 | $ 12 | ||||||||||||||||
Other international revenue [Member] | International [Member] | ||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||||||||||
Revenues | [3],[4] | $ 93 | ||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | |||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | |||||||||||||||||||
[4] | Includes TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). |
Supplemental Cash Flow Infor101
Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest (net of capitalized interest) | $ 484 | $ 321 | $ 201 |
Income taxes | 397 | 996 | 1,122 |
Income tax refunds received | (20) | (5) | (9) |
Cash tax payments, net | $ 377 | $ 991 | $ 1,113 |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | May 31, 2017USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,018 | $ 3,217 | |
2,019 | 2,237 | |
2,020 | 2,333 | |
2,021 | 1,650 | |
2,022 | 1,474 | |
Thereafter | 3,394 | |
Total | 14,305 | |
Aircraft And Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,018 | 1,777 | |
2,019 | 1,729 | |
2,020 | 1,933 | |
2,021 | 1,341 | |
2,022 | 1,276 | |
Thereafter | 2,895 | |
Total | 10,951 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,018 | 1,440 | [1] |
2,019 | 508 | [1] |
2,020 | 400 | [1] |
2,021 | 309 | [1] |
2,022 | 198 | [1] |
Thereafter | 499 | [1] |
Total | $ 3,354 | [1] |
[1] | Primarily equipment, advertising contracts and, in 2018, approximately $700 million of estimated required quarterly contributions to our U.S. Pension Plans. |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | 12 Months Ended |
May 31, 2017USD ($)air-craft | |
Other Aircraft Commitments Disclosure [Abstract] | |
Boeing 767F Conditional Aircraft Commitments | 4 |
Boeing 777F Conditional Aircraft Commitments | 6 |
Accelerate Delivery of Boeing 767F Conditional Aircraft Commitments | 2 |
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments | 2 |
Deposit and Progress Payments | $ | $ 729 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 12 Months Ended |
May 31, 2017 | |
Schedule of Aircraft Commitments [Line Items] | |
2,018 | 18 |
2,019 | 17 |
2,020 | 19 |
2,021 | 13 |
2,022 | 14 |
Thereafter | 6 |
Total | 87 |
Boeing 767 Freighter [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,018 | 14 |
2,019 | 15 |
2,020 | 16 |
2,021 | 10 |
2,022 | 10 |
Thereafter | 6 |
Total | 71 |
Boeing 777 Freighter [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,018 | 4 |
2,019 | 2 |
2,020 | 3 |
2,021 | 3 |
2,022 | 4 |
Total | 16 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) $ in Millions | 2 Months Ended | 12 Months Ended |
Jun. 21, 2017Case | May 31, 2017USD ($) | |
Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Number of claims settled by the court | Case | 20 | |
Multidistrict Independent Contractor Litigation [Member] | Pending Litigation [Member] | Expected Litigation Loss Net of Insurance Claims [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement Amount | $ 204 | |
California Case [Member] | Pending Litigation [Member] | Expected Litigation Loss [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement Amount | 228 | |
U.S. Customs and Border Protection [Member] | Expected Litigation Loss [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency amount | $ 39.3 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
May 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Ownership Interest | 10.00% |
Summary of Quarterly Operati107
Summary of Quarterly Operating Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | May 31, 2015 | |||||||||||
Selected Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenues | $ 15,728 | [1] | $ 14,997 | [1] | $ 14,931 | [1] | $ 14,663 | [1] | $ 12,979 | [2] | $ 12,654 | [2] | $ 12,453 | [2] | $ 12,279 | $ 60,319 | $ 50,365 | $ 47,453 | ||||
Operating income | 1,581 | [1] | 1,025 | [1] | 1,167 | [1] | 1,264 | [1] | (68) | [2] | 864 | [2] | 1,137 | [2] | 1,144 | 5,037 | [3] | 3,077 | [4] | 1,867 | [5] | |
Net income | $ 1,020 | [1] | $ 562 | [1] | $ 700 | [1] | $ 715 | [1] | $ (70) | [2] | $ 507 | [2] | $ 691 | [2] | $ 692 | $ 2,997 | $ 1,820 | $ 1,050 | ||||
Basic earnings per common share | $ 3.81 | [1],[6] | $ 2.11 | [1],[6] | $ 2.63 | [1],[6] | $ 2.69 | [1],[6] | $ (0.26) | [2],[6] | $ 1.86 | [2],[6] | $ 2.47 | [2],[6] | $ 2.45 | [6] | $ 11.24 | $ 6.59 | $ 3.70 | |||
Diluted earnings per common share | $ 3.75 | [1],[6] | $ 2.07 | [1],[6] | $ 2.59 | [1],[6] | $ 2.65 | [1],[6] | $ (0.26) | [2],[6] | $ 1.84 | [2],[6] | $ 2.44 | [2],[6] | $ 2.42 | [6] | $ 11.07 | $ 6.51 | $ 3.65 | |||
Charges for legal reserves related to U.S. CBP pending protection matters | $ 39 | $ 39 | ||||||||||||||||||||
Ground independent contractor litigation expense | 22 | $ 11 | 22 | |||||||||||||||||||
Retirement plans mark-to-market adjustment | (24) | 1,500 | (24) | $ 1,498 | $ 2,190 | |||||||||||||||||
TNT integration expenses and restructuring charges | 124 | $ 78 | $ 58 | $ 68 | 327 | |||||||||||||||||
Ground independent contractor litigation provision | $ 204 | $ 41 | 256 | $ 197 | ||||||||||||||||||
TNT transaction financing integration financial operating results | 79 | |||||||||||||||||||||
Internal restructuring | $ 76 | 76 | ||||||||||||||||||||
U.S. CBP notice of action settlement | 69 | $ 69 | ||||||||||||||||||||
TNT transaction financing integration expense | $ 25 | $ 19 | ||||||||||||||||||||
TNT acquisition [Member] | ||||||||||||||||||||||
Selected Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Increase in intangible asset amortization | $ 20 | $ 16 | $ 10 | $ 28 | $ 74 | |||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | |||||||||||||||||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[4] | Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||||||||||||||||||
[5] | Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. | |||||||||||||||||||||
[6] | The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. |
Condensed Consolidating Fina108
Condensed Consolidating Financial Statements - Additional Information (Details) $ in Billions | May 31, 2017USD ($) |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Debt Guarantee | $ 14.8 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | |
CURRENT ASSETS | |||||
Cash and cash equivalents | $ 3,969 | $ 3,534 | $ 3,763 | $ 2,908 | |
Receivables, less allowances | 7,599 | 7,252 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 1,060 | 1,203 | |||
Total current assets | 12,628 | 11,989 | |||
PROPERTY AND EQUIPMENT, AT COST | 50,626 | 47,018 | |||
Less accumulated depreciation and amortization | 24,645 | 22,734 | |||
Net property and equipment | 25,981 | 24,284 | |||
GOODWILL | 7,154 | 6,747 | 3,810 | ||
OTHER ASSETS | 2,789 | 2,939 | |||
ASSETS | [1] | 48,552 | 45,959 | 36,469 | |
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 22 | 29 | |||
Accrued salaries and employee benefits | 1,914 | 1,972 | |||
Accounts payable | 2,752 | 2,944 | |||
Accrued expenses | 3,230 | 3,063 | |||
Total current liabilities | 7,918 | 8,008 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 14,909 | 13,733 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 2,485 | 1,567 | |||
Other liabilities | 7,167 | 8,867 | |||
Total other long-term liabilities | 9,652 | 10,434 | |||
STOCKHOLDERS’ INVESTMENT | 16,073 | 13,784 | 14,993 | 15,277 | |
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 48,552 | 45,959 | |||
Consolidation Eliminations [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | (47) | (43) | (78) | (150) | |
Receivables, less allowances | (61) | (41) | |||
Total current assets | (108) | (84) | |||
INTERCOMPANY RECEIVABLE | (4,128) | (3,721) | |||
INVESTMENT IN SUBSIDIARIES | (30,348) | (28,463) | |||
OTHER ASSETS | (3,225) | (3,238) | |||
ASSETS | (37,809) | (35,506) | |||
CURRENT LIABILITIES | |||||
Accounts payable | (108) | (84) | |||
Total current liabilities | (108) | (84) | |||
INTERCOMPANY PAYABLE | (4,128) | (3,721) | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | (3,225) | (3,238) | |||
Total other long-term liabilities | (3,225) | (3,238) | |||
STOCKHOLDERS’ INVESTMENT | (30,348) | (28,463) | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | (37,809) | (35,506) | |||
Parent Company [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 1,884 | 1,974 | 2,383 | 1,756 | |
Receivables, less allowances | 3 | 1 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 25 | 233 | |||
Total current assets | 1,912 | 2,208 | |||
PROPERTY AND EQUIPMENT, AT COST | 22 | 22 | |||
Less accumulated depreciation and amortization | 18 | 17 | |||
Net property and equipment | 4 | 5 | |||
INTERCOMPANY RECEIVABLE | 1,521 | 2,437 | |||
INVESTMENT IN SUBSIDIARIES | 27,712 | 24,766 | |||
OTHER ASSETS | 3,494 | 3,359 | |||
ASSETS | 34,643 | 32,775 | |||
CURRENT LIABILITIES | |||||
Accrued salaries and employee benefits | 72 | 54 | |||
Accounts payable | 10 | 8 | |||
Accrued expenses | 991 | 883 | |||
Total current liabilities | 1,073 | 945 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 14,641 | 13,451 | |||
OTHER LONG-TERM LIABILITIES | |||||
Other liabilities | 2,856 | 4,595 | |||
Total other long-term liabilities | 2,856 | 4,595 | |||
STOCKHOLDERS’ INVESTMENT | 16,073 | 13,784 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 34,643 | 32,775 | |||
Guarantor Subsidiaries [Member[ | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 325 | 326 | 487 | 441 | |
Receivables, less allowances | 4,729 | 4,461 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 787 | 724 | |||
Total current assets | 5,841 | 5,511 | |||
PROPERTY AND EQUIPMENT, AT COST | 47,201 | 43,760 | |||
Less accumulated depreciation and amortization | 23,211 | 21,566 | |||
Net property and equipment | 23,990 | 22,194 | |||
INTERCOMPANY RECEIVABLE | 2,607 | 1,284 | |||
GOODWILL | 1,571 | 1,571 | |||
INVESTMENT IN SUBSIDIARIES | 2,636 | 3,697 | |||
OTHER ASSETS | 1,271 | 967 | |||
ASSETS | 37,916 | 35,224 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 9 | 13 | |||
Accrued salaries and employee benefits | 1,335 | 1,377 | |||
Accounts payable | 1,411 | 1,501 | |||
Accrued expenses | 1,522 | 1,411 | |||
Total current liabilities | 4,277 | 4,302 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 244 | 245 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 5,472 | 4,436 | |||
Other liabilities | 3,448 | 3,375 | |||
Total other long-term liabilities | 8,920 | 7,811 | |||
STOCKHOLDERS’ INVESTMENT | 24,475 | 22,866 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 37,916 | 35,224 | |||
Non Guarantor Subsidiaries [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 1,807 | 1,277 | $ 971 | $ 861 | |
Receivables, less allowances | 2,928 | 2,831 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 248 | 246 | |||
Total current assets | 4,983 | 4,354 | |||
PROPERTY AND EQUIPMENT, AT COST | 3,403 | 3,236 | |||
Less accumulated depreciation and amortization | 1,416 | 1,151 | |||
Net property and equipment | 1,987 | 2,085 | |||
GOODWILL | 5,583 | 5,176 | |||
OTHER ASSETS | 1,249 | 1,851 | |||
ASSETS | 13,802 | 13,466 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 13 | 16 | |||
Accrued salaries and employee benefits | 507 | 541 | |||
Accounts payable | 1,439 | 1,519 | |||
Accrued expenses | 717 | 769 | |||
Total current liabilities | 2,676 | 2,845 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 24 | 37 | |||
INTERCOMPANY PAYABLE | 4,128 | 3,721 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 238 | 369 | |||
Other liabilities | 863 | 897 | |||
Total other long-term liabilities | 1,101 | 1,266 | |||
STOCKHOLDERS’ INVESTMENT | 5,873 | 5,597 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | $ 13,802 | $ 13,466 | |||
[1] | Segment assets include intercompany receivables. |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2017 | Feb. 28, 2017 | [1] | Nov. 30, 2016 | [1] | Aug. 31, 2016 | [1] | May 31, 2016 | Feb. 29, 2016 | [2] | Nov. 30, 2015 | [2] | Aug. 31, 2015 | [2] | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | $ 15,728 | [1] | $ 14,997 | $ 14,931 | $ 14,663 | $ 12,979 | [2] | $ 12,654 | $ 12,453 | $ 12,279 | $ 60,319 | $ 50,365 | $ 47,453 | |||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 21,542 | 18,581 | 17,110 | |||||||||||||||||||
Purchased transportation | 13,630 | 9,966 | 8,483 | |||||||||||||||||||
Rentals and landing fees | 3,240 | 2,854 | 2,682 | |||||||||||||||||||
Depreciation and amortization | 2,995 | 2,631 | 2,611 | |||||||||||||||||||
Fuel | 2,773 | 2,399 | 3,720 | |||||||||||||||||||
Maintenance and repairs | 2,374 | 2,108 | 2,099 | |||||||||||||||||||
Impairment and other charges | 276 | |||||||||||||||||||||
Retirement plans mark-to-market adjustment | (24) | 1,500 | (24) | 1,498 | 2,190 | |||||||||||||||||
Other | 8,752 | 7,251 | 6,415 | |||||||||||||||||||
OPERATING EXPENSES | 55,282 | 47,288 | 45,586 | |||||||||||||||||||
OPERATING INCOME | 1,581 | [1] | 1,025 | 1,167 | 1,264 | (68) | [2] | 864 | 1,137 | 1,144 | 5,037 | [3] | 3,077 | [4] | 1,867 | [5] | ||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Interest, net | (479) | (315) | (221) | |||||||||||||||||||
Other, net | 21 | (22) | (19) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 4,579 | 2,740 | 1,627 | |||||||||||||||||||
PROVISION FOR INCOME TAXES | 1,582 | 920 | 577 | |||||||||||||||||||
NET INCOME | $ 1,020 | [1] | $ 562 | $ 700 | $ 715 | $ (70) | [2] | $ 507 | $ 691 | $ 692 | 2,997 | 1,820 | 1,050 | |||||||||
COMPREHENSIVE INCOME | 2,751 | 1,479 | 716 | |||||||||||||||||||
Consolidation Eliminations [Member] | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | (302) | (325) | (381) | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Purchased transportation | (125) | (134) | (197) | |||||||||||||||||||
Rentals and landing fees | (6) | (6) | (5) | |||||||||||||||||||
Other | (171) | (185) | (179) | |||||||||||||||||||
OPERATING EXPENSES | (302) | (325) | (381) | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | (3,065) | (2,099) | (1,387) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | (3,065) | (2,099) | (1,387) | |||||||||||||||||||
NET INCOME | (3,065) | (2,099) | (1,387) | |||||||||||||||||||
COMPREHENSIVE INCOME | (3,065) | (2,099) | (1,387) | |||||||||||||||||||
Parent Company [Member] | ||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 123 | 119 | 106 | |||||||||||||||||||
Rentals and landing fees | 5 | 5 | 5 | |||||||||||||||||||
Depreciation and amortization | 1 | 1 | 1 | |||||||||||||||||||
Maintenance and repairs | 1 | 1 | 1 | |||||||||||||||||||
Intercompany charges, net | (434) | (645) | (450) | |||||||||||||||||||
Other | 304 | 519 | 337 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 2,997 | 1,820 | 1,050 | |||||||||||||||||||
Interest, net | (507) | (355) | (247) | |||||||||||||||||||
Intercompany charges, net | 508 | 369 | 253 | |||||||||||||||||||
Other, net | (1) | (14) | (6) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 2,997 | 1,820 | 1,050 | |||||||||||||||||||
NET INCOME | 2,997 | 1,820 | 1,050 | |||||||||||||||||||
COMPREHENSIVE INCOME | 2,922 | 1,746 | 1,053 | |||||||||||||||||||
Guarantor Subsidiaries [Member[ | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | 44,823 | 42,143 | 39,420 | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 16,696 | 15,880 | 14,626 | |||||||||||||||||||
Purchased transportation | 8,260 | 7,380 | 5,802 | |||||||||||||||||||
Rentals and landing fees | 2,517 | 2,484 | 2,322 | |||||||||||||||||||
Depreciation and amortization | 2,538 | 2,399 | 2,370 | |||||||||||||||||||
Fuel | 2,476 | 2,324 | 3,632 | |||||||||||||||||||
Maintenance and repairs | 2,086 | 1,954 | 1,949 | |||||||||||||||||||
Impairment and other charges | 276 | |||||||||||||||||||||
Retirement plans mark-to-market adjustment | (75) | 1,414 | 2,075 | |||||||||||||||||||
Intercompany charges, net | 182 | 425 | 117 | |||||||||||||||||||
Other | 5,734 | 5,274 | 4,946 | |||||||||||||||||||
OPERATING EXPENSES | 40,414 | 39,534 | 38,115 | |||||||||||||||||||
OPERATING INCOME | 4,409 | 2,609 | 1,305 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 68 | 279 | 337 | |||||||||||||||||||
Interest, net | 27 | 27 | 23 | |||||||||||||||||||
Intercompany charges, net | (296) | (354) | (265) | |||||||||||||||||||
Other, net | (134) | (14) | (32) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 4,074 | 2,547 | 1,368 | |||||||||||||||||||
PROVISION FOR INCOME TAXES | 1,439 | 818 | 390 | |||||||||||||||||||
NET INCOME | 2,635 | 1,729 | 978 | |||||||||||||||||||
COMPREHENSIVE INCOME | 2,580 | 1,704 | 929 | |||||||||||||||||||
Non Guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | 15,798 | 8,547 | 8,414 | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 4,723 | 2,582 | 2,378 | |||||||||||||||||||
Purchased transportation | 5,495 | 2,720 | 2,878 | |||||||||||||||||||
Rentals and landing fees | 724 | 371 | 360 | |||||||||||||||||||
Depreciation and amortization | 456 | 231 | 240 | |||||||||||||||||||
Fuel | 297 | 75 | 88 | |||||||||||||||||||
Maintenance and repairs | 287 | 153 | 149 | |||||||||||||||||||
Retirement plans mark-to-market adjustment | 51 | 84 | 115 | |||||||||||||||||||
Intercompany charges, net | 252 | 220 | 333 | |||||||||||||||||||
Other | 2,885 | 1,643 | 1,311 | |||||||||||||||||||
OPERATING EXPENSES | 15,170 | 8,079 | 7,852 | |||||||||||||||||||
OPERATING INCOME | 628 | 468 | 562 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Interest, net | 1 | 13 | 3 | |||||||||||||||||||
Intercompany charges, net | (212) | (15) | 12 | |||||||||||||||||||
Other, net | 156 | 6 | 19 | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 573 | 472 | 596 | |||||||||||||||||||
PROVISION FOR INCOME TAXES | 143 | 102 | 187 | |||||||||||||||||||
NET INCOME | 430 | 370 | 409 | |||||||||||||||||||
COMPREHENSIVE INCOME | $ 314 | $ 128 | $ 121 | |||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[2] | The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses. | |||||||||||||||||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[4] | Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||||||||||||||||||
[5] | Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. |
Condensed Consolidating Stat111
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ 4,930 | $ 5,708 | $ 5,366 |
INVESTING ACTIVITIES | |||
Capital expenditures | (5,116) | (4,818) | (4,347) |
Business acquisitions, net of cash acquired | (4,618) | (1,429) | |
Proceeds from asset dispositions and other | 135 | (10) | 24 |
Cash used in investing activities | (4,981) | (9,446) | (5,752) |
FINANCING ACTIVITIES | |||
Principal payments on debt | (82) | (41) | (5) |
Proceeds from debt issuances | 1,190 | 6,519 | 2,491 |
Proceeds from stock issuances | 337 | 183 | 320 |
Dividends paid | (426) | (277) | (227) |
Purchase of treasury stock | (509) | (2,722) | (1,254) |
Other, net | 18 | (51) | 24 |
Cash provided by financing activities | 528 | 3,611 | 1,349 |
Effect of exchange rate changes on cash | (42) | (102) | (108) |
Net increase (decrease) in cash and cash equivalents | 435 | (229) | 855 |
Cash and cash equivalents at beginning of period | 3,534 | 3,763 | 2,908 |
Cash and cash equivalents at end of period | 3,969 | 3,534 | 3,763 |
Consolidation Eliminations [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (4) | 35 | 72 |
FINANCING ACTIVITIES | |||
Net increase (decrease) in cash and cash equivalents | (4) | 35 | 72 |
Cash and cash equivalents at beginning of period | (43) | (78) | (150) |
Cash and cash equivalents at end of period | (47) | (43) | (78) |
Parent Company [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1,155) | (831) | (727) |
INVESTING ACTIVITIES | |||
Capital expenditures | (1) | ||
Business acquisitions, net of cash acquired | (1,429) | ||
Proceeds from asset dispositions and other | 34 | (55) | |
Cash used in investing activities | 34 | (55) | (1,430) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | 421 | 1,629 | 1,431 |
Payment on loan between subsidiaries | 41 | (4,805) | |
Proceeds from debt issuances | 1,190 | 6,519 | 2,491 |
Proceeds from stock issuances | 337 | 183 | 320 |
Dividends paid | (426) | (277) | (227) |
Purchase of treasury stock | (509) | (2,722) | (1,254) |
Other, net | (12) | (51) | 24 |
Cash provided by financing activities | 1,042 | 476 | 2,785 |
Effect of exchange rate changes on cash | (11) | 1 | (1) |
Net increase (decrease) in cash and cash equivalents | (90) | (409) | 627 |
Cash and cash equivalents at beginning of period | 1,974 | 2,383 | 1,756 |
Cash and cash equivalents at end of period | 1,884 | 1,974 | 2,383 |
Guarantor Subsidiaries [Member[ | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 5,254 | 5,932 | 5,446 |
INVESTING ACTIVITIES | |||
Capital expenditures | (4,694) | (4,617) | (4,139) |
Proceeds from asset dispositions and other | 25 | 33 | 42 |
Cash used in investing activities | (4,669) | (4,584) | (4,097) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | (518) | (1,549) | (1,502) |
Payment on loan between subsidiaries | (15) | 109 | 267 |
Intercompany dividends | 1 | 20 | 68 |
Principal payments on debt | (55) | (19) | (1) |
Other, net | (13) | (48) | (105) |
Cash provided by financing activities | (600) | (1,487) | (1,273) |
Effect of exchange rate changes on cash | 14 | (22) | (30) |
Net increase (decrease) in cash and cash equivalents | (1) | (161) | 46 |
Cash and cash equivalents at beginning of period | 326 | 487 | 441 |
Cash and cash equivalents at end of period | 325 | 326 | 487 |
Non Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 835 | 572 | 575 |
INVESTING ACTIVITIES | |||
Capital expenditures | (422) | (201) | (207) |
Business acquisitions, net of cash acquired | (4,618) | ||
Proceeds from asset dispositions and other | 76 | 12 | (18) |
Cash used in investing activities | (346) | (4,807) | (225) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | 97 | (80) | 71 |
Payment on loan between subsidiaries | (26) | 4,696 | (267) |
Intercompany dividends | (1) | (20) | (68) |
Principal payments on debt | (27) | (22) | (4) |
Other, net | 43 | 48 | 105 |
Cash provided by financing activities | 86 | 4,622 | (163) |
Effect of exchange rate changes on cash | (45) | (81) | (77) |
Net increase (decrease) in cash and cash equivalents | 530 | 306 | 110 |
Cash and cash equivalents at beginning of period | 1,277 | 971 | 861 |
Cash and cash equivalents at end of period | $ 1,807 | $ 1,277 | $ 971 |
Valuation and Qualifying Acc112
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
Allowance For Doubtful Accounts [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | $ 73 | $ 86 | $ 81 | |
Charged To Expenses | 136 | 121 | 145 | |
Deductions | [1] | 94 | 134 | 140 |
Valuation Allowances And Reserves Ending Balance | 115 | 73 | 86 | |
Allowance For Revenue Adjustments [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | 105 | 99 | 83 | |
Charged To Other Accounts | [2] | 941 | 692 | 740 |
Deductions | [3] | 909 | 686 | 724 |
Valuation Allowances And Reserves Ending Balance | 137 | 105 | 99 | |
Inventory Valuation Allowance [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | 218 | 207 | 212 | |
Charged To Expenses | 26 | 26 | 23 | |
Deductions | 7 | 15 | 28 | |
Valuation Allowances And Reserves Ending Balance | $ 237 | $ 218 | $ 207 | |
[1] | Uncollectible accounts written off, net of recoveries, and other adjustments. | |||
[2] | Principally charged against revenue. | |||
[3] | Service failures, rebills and other. |