FedEx (FDX) 10-Q 17 Dec 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	6 Months Ended
	Nov. 30, 2015	Dec. 15, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Nov. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
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	$ 40.6
Entity Common Stock, Shares Outstanding		275,615,246
TradingSymbol	FDX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Nov. 30, 2015	May. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 3,647	$ 3,763
Receivables, less allowances of $178 and $185	5,865	5,719
Spare parts, supplies and fuel, less allowances of $214 and $207	493	498
Deferred income taxes	687	606
Prepaid expenses and other	460	355
Total current assets	11,152	10,941
PROPERTY AND EQUIPMENT, AT COST	45,242	42,864
Less accumulated depreciation and amortization	22,964	21,989
Net property and equipment	22,278	20,875
OTHER LONG-TERM ASSETS
Goodwill	3,806	3,810
Other assets	1,135	1,443
Total other long-term assets	4,941	5,253
ASSETS	38,371	37,069
CURRENT LIABILITIES
Current portion of long-term debt	14	19
Accrued salaries and employee benefits	1,510	1,436
Accounts payable	2,129	2,066
Accrued expenses	2,298	2,436
Total current liabilities	5,951	5,957
LONG-TERM DEBT, LESS CURRENT PORTION	8,481	7,249
OTHER LONG-TERM LIABILITIES
Deferred income taxes	1,759	1,747
Pension, postretirement healthcare and other benefit obligations	4,702	4,893
Self-insurance accruals	1,265	1,120
Deferred lease obligations	840	711
Deferred gains, principally related to aircraft transactions	167	181
Other liabilities	216	218
Total other long-term liabilities	$ 8,949	$ 8,870
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of November 30, 2015 and May 31, 2015	$ 32	$ 32
Additional paid-in capital	2,839	2,786
Retained earnings	18,048	16,900
Accumulated other comprehensive income	(41)	172
Treasury stock, at cost	(5,888)	(4,897)
Total common stockholders' investment	14,990	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 38,371	$ 37,069

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Nov. 30, 2015	May. 31, 2015
CURRENT ASSETS
Allowances for receivables	$ 178	$ 185
Allowances for spare parts, supplies and fuel	$ 214	$ 207
COMMON STOCKHOLDERS' INVESTMENT
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	800	800
Common stock, shares issued	318	318

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Condensed Consolidated Statements of Income
REVENUES	$ 12,453	$ 11,939	$ 24,732	$ 23,623
OPERATING EXPENSES:
Salaries and employee benefits	4,570	4,229	9,095	8,343
Purchased transportation	2,538	2,185	4,882	4,239
Rentals and landing fees	682	663	1,377	1,323
Depreciation and amortization	653	651	1,301	1,302
Fuel	615	1,052	1,327	2,172
Maintenance and repairs	529	543	1,077	1,099
Other	1,729	1,528	3,392	2,995
OPERATING EXPENSES	11,316	10,851	22,451	21,473
OPERATING INCOME	1,137	1,088	2,281	2,150
OTHER INCOME (EXPENSE):
Interest, net	(74)	(47)	(137)	(95)
Other, net	(8)	5	(5)	3
OTHER INCOME (EXPENSE)	(82)	(42)	(142)	(92)
INCOME BEFORE INCOME TAXES	1,055	1,046	2,139	2,058
PROVISION FOR INCOME TAXES	364	383	756	742
NET INCOME	$ 691	$ 663	$ 1,383	$ 1,316
EARNINGS PER COMMON SHARE:
Basic	$ 2.47	$ 2.34	$ 4.92	$ 4.63
Diluted	2.44	2.31	4.86	4.57
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.25	$ 0.20	$ 0.75	$ 0.60

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Condensed Consolidated Statement of Other Comprehensive Income
NET INCOME	$ 691	$ 663	$ 1,383	$ 1,316
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $4, $14, $17, and $23	(33)	(122)	(171)	(153)
Amortization of prior service credit, net of tax of $11, $11, $18, and $21	(18)	(18)	(42)	(34)
Other comprehensive loss	(51)	(140)	(213)	(187)
COMPREHENSIVE INCOME	$ 640	$ 523	$ 1,170	$ 1,129

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Other Comprehensive Income, Tax Amounts
Foreign currency translation adjustments, tax	$ 4	$ 14	$ 17	$ 23
Amortization of prior service credit, net of tax	$ 11	$ 11	$ 18	$ 21

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
Operating Activities:
Net income	$ 1,383	$ 1,316
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,301	1,302
Provision for uncollectible accounts	57	78
Stock-based compensation	86	79
Deferred income taxes and other noncash items	(48)	(37)
Changes in assets and liabilities:
Receivables	(263)	(317)
Other assets	(113)	(46)
Accounts payable and other liabilities	66	(201)
Other, net	(15)	(23)
Cash provided by operating activities	2,454	2,151
Investing Activities:
Capital expenditures	(2,562)	(1,890)
Proceeds from asset dispositions and other	12	7
Cash used in investing activities	(2,550)	(1,883)
Financing Activities:
Principal payments on debt	(17)	(1)
Proceeds from debt issuances	1,238
Proceeds from stock issuances	62	189
Excess tax benefit on the exercise of stock options	8	23
Dividends paid	(141)	(114)
Purchase of treasury stock	(1,101)	(947)
Other, net	(16)
Cash provided by (used in) financing activities	33	(850)
Effect of exchange rate changes on cash	(53)	(60)
Net decrease in cash and cash equivalents	(116)	(642)
Cash and cash equivalents at beginning of period	3,763	2,908
Cash and cash equivalents at end of period	$ 3,647	$ 2,266

General

General	6 Months Ended
	Nov. 30, 2015
General [Abstract]
General	(1) General SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10 - K for the year ended May 31, 2015 (“Annual Report”) . Accordingly, significant accounting policies and other disclosures normally pr ovided have been omitted since such items are disclosed i n our Annual Report . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2015 , the results of our operations for the three- and six- month periods ended November 30, 2015 and 2014 and cash flows for the six-month periods ended November 30, 2015 and 2014 . Operating results for the three- and six- month period s ended November 30, 2015 are not necessarily indicative of the results that may be expected for the year ending May 31, 2016 . Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2016 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. REVENUE RECOGNITION. On June 1, 2015, we began recording revenues associated with the FedEx SmartPost service on a gross basis including postal fees in revenues and expenses, versus our previous net treatment, due to operational changes occurring in 2016 that result in us being the principal in all cases for the FedEx SmartPost service. This change has been recognized prospectively. BUSINESS ACQUISITIONS. As discussed in our Annual Report, on April 6, 2015, we entered into a conditional agreement to acquire TNT Express N.V. (“TNT Express”) for €4.4 billion (currently, approximately $ 4 . 8 billion). This co mbination is expected to expand our global portfolio, particularly in Europe, lower our costs to serve our European markets by increasing density in our pickup-and-delivery operations and accelerate our global growth. This acquisition is expected to be completed in the first half of calendar year 2016. The closing of the acquisition is subject to customary conditions, including obtaining all necessary approvals and competition clearances. We expect to secure all relevant competition approvals. W e completed our acquisitions of GENCO Distribution System, Inc. (“GENCO”) and Bongo International, LLC (“Bongo”) in the third quarter of 2015 and have included the financial results and estimated fair values of the assets and liabilities related to these acquisitions in the FedEx Ground and FedEx Express segments, respectively. These acquisitions are included in the accomp anying balance sheets based on an allocation of the purchase price (summarized in the table below, in millions) which reflects immaterial updates from the May 31, 2015 and August 31, 2015 estimate s . Current assets $ 344 Property and equipment 113 Goodwill 1,194 Intangible assets 69 Other non-current assets 25 Current liabilities (244) Long-term liabilities (56) Total purchase price $ 1,445 The goodwill recorded is primarily attributable to expected benefits from synergies of the combinations with existing businesses and other acquired entities and the work force in place at GENCO. The majority of the purchase price allocated to goodwill is not deductible for U.S. income tax purposes. The intangible assets acquired consist primarily of customer-related intangible assets, which are amortized on an accelerated basis over an estimated life of 15 years. EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Fed eral Ex press Corporation (“FedEx Express”) , which represent a small number of FedEx Express's total employees, are employed under a newly ratified collective bargaining agreement (“CBA”). The new CBA was ratified by FedEx Express pilots in a vote concluded on October 20, 2015 , and is the product of 32 months of bargaining under the Railway Labor Act of 1926, as amended (“RLA”), the last 10 months of which were mediated by the National Mediation Board (the U.S. governmental agency that oversees labor agreements for entities covered by the RLA). The new CBA took effect November 2, 2015 , and is scheduled to become amendable in November 2021, after a six - year term. In addition to our pilots at FedEx Express, GENCO has a small number of employees who are members of unions, and certain non-U.S. employees are unionized. STOCK-BASED COMPENSATION. We have two types of equity-based compensation: stock options and restricted stock. The key terms of the stock option and restricted stock awards granted under our incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense was $ 33 million for the three-month period ended November 30, 2015 and $ 86 million for the six-month period ended November 30, 2015 . Our stock-based compensation expense was $ 31 million for t he three-month period ended November 30, 2014 and $ 7 9 million for the six-month period ended November 30, 2014 . Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. RECENT ACCOUNTING GUIDANCE. New accounting rules and disclosure requirements can significantly impact our reported results and the comparability of our financial statements. These matters are described in our Annual Report. During the quarter , we chose to early adopt the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) requiring acquirers in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period that the adjustment amounts are determined and eliminates the requirement to retrospectively account for these adjustments. It also requires additional disclosure about the effects of the adjustments on prior periods. See the Business Acquisitions section above for further discussion regarding our recent business acquisitions. On November 11, 2015, the FASB voted to proceed with the new lease accounting standard that w ill require companies to include a right-of-use asset and a liability to make lease payments on the balance sheet for all leases (except short-term leases) . This new standard will have a significant impact on our accounting and financial reporting and will be effective for our fiscal year ending May 31, 20 20 . On N ovember 2 0 , 2015, the FASB issued an Accounting Standards Update that will require companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. This new guidance will have minimal impact on our accounting and financial reporting and will be effective for our fiscal year ending May 31, 2018. We believe that no other new accounting guidance was adopted or issued during the first half of 2016 that is relevant to the readers of our financial statements. TREASURY SHARES. In September 2014, our Board of Directors authorized the repurchase of up to 15 million shares of common stock. During the second quarter of 2016, we repurchased 6.0 million shares of FedEx common stock at an average price of $ 151.76 per share for a total of $ 911 million. As of November 30, 2015, 5 . 1 million shares remained under the share repurchase authorization. The timing and volume of repurchases are at the discretion of management, based on market conditions and other factors. We expect to repurchase all the remaining authorized shares by the end of 2016. DIVIDENDS DECLARED PER COMMON SHARE. On November 2 , 201 5 , our Board of Directors declared a quarterly dividend of $0.2 5 per share of common stock. The dividend will be paid on January 4 , 201 6 to stockholders of record as of the close of business on December 14 , 201 5 . 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.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Nov. 30, 2015
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	(2) Accumulated Other Comprehensive Income (Loss) The following table provides changes in accumulated other comprehensive income (loss) (“AOCI”), net of tax, reported in our condensed consolidated financial statements for the periods ended November 30 (in millions ; amounts in parentheses indicate debits to AOCI ): Three Months Ended Six Months Ended 2015 2014 2015 2014 Foreign currency translation gain (loss): Balance at beginning of period $ (391) $ 50 $ (253) $ 81 Translation adjustments (33) (122) (171) (153) Balance at end of period (424) (72) (424) (72) Retirement plans adjustments: Balance at beginning of period 401 409 425 425 Reclassifications from AOCI (18) (18) (42) (34) Balance at end of period 383 391 383 391 Accumulated other comprehensive (loss) income at end of period $ (41) $ 319 $ (41) $ 319 The following table presents details of the reclassifications from AOCI for the periods ended November 30 (in millions ; amounts in parentheses indicate debits to earnings ): Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization of retirement plans prior service credits, before tax $ 29 $ 29 $ 60 $ 55 Salaries and employee benefits Income tax benefit (11) (11) (18) (21) Provision for income taxes AOCI reclassifications, net of tax $ 18 $ 18 $ 42 $ 34 Net income

Financing Arrangements

Financing Arrangements	6 Months Ended
	Nov. 30, 2015
Financing Arrangements [Abstract]
Financing Arrangements	( 3 ) Financing Arrangements W e have a shelf registration statement with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock . During the quarter, we issued $1.25 billion of senior unsecured 4.75% fixed-rate notes due in November 2045 under our curre nt shelf registration statement . Interest on the note s is paid semiannually. We utilized the net proceeds for working capital and general corporate purposes , including share repurchases made pursuant to our current sh are repurchase authorization. On November 13 , 2015, we replaced our revolving and letter of credit facilities with a new, single 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 (“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 rat io of our debt to EBITDA was 1.2 to 1.0 at November 30, 2015. We believe the leverage ratio covenant is our only significant restrictive covenant in our revolving credit agreement. Our revolving credit agreement contains other customary covenants that do no t, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the leverage ratio 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 November 30, 2015, no commercial paper was outstanding . However, we had a total of $318 million in letters of credit outstanding at November 30, 2015, with $182 million of the letter of credit sublimit unused under our revolving credit facility. Long-term debt, exc lusive of capital leases, had carrying value s of $ 8.5 billion a t November 30, 2015 and $7.2 billion at May 31, 2015 , compared with estimated fair value s of $ 8.5 billion at November 30, 2015 and $ 7 . 4 billion at May 31, 2015 . 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.

Computation of Earnings Per Sha

Computation of Earnings Per Share	6 Months Ended
	Nov. 30, 2015
Earnings Per Share [Abstract]
Computation of Earnings Per Share	( 4 ) Computation of Earnings Per Share The calculation of basic and diluted ea rnings per common share for the periods ended November 30 was as follows (in millions, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic earnings per common share: Net earnings allocable to common shares (1) $ 690 $ 662 $ 1,382 $ 1,315 Weighted-average common shares 279 283 281 284 Basic earnings per common share $ 2.47 $ 2.34 $ 4.92 $ 4.63 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 690 $ 662 $ 1,382 $ 1,315 Weighted-average common shares 279 283 281 284 Dilutive effect of share-based awards 4 4 3 4 Weighted-average diluted shares 283 287 284 288 Diluted earnings per common share $ 2.44 $ 2.31 $ 4.86 $ 4.57 Anti-dilutive options excluded from diluted earnings per common share 3.7 2.2 3.6 2.2 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans

Retirement Plans	6 Months Ended
	Nov. 30, 2015
Retirement Plans [Abstract]
Retirement Plans	( 5 ) 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. Key terms of our retirement plans are provided in our Annual Report. O ur retirement plans costs for the periods ended November 30 were as follows (in millions): Three Months Ended Six Months Ended 2015 2014 2015 2014 Defined benefit pension plans $ 54 $ (10) $ 107 $ (17) Defined contribution plans 103 94 205 188 Postretirement healthcare plans 20 20 41 40 $ 177 $ 104 $ 353 $ 211 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended November 30 includ ed the following components (in millions): Three Months Ended Six Months Ended Pension Plans 2015 2014 2015 2014 Service cost $ 165 $ 164 $ 331 $ 328 Interest cost 295 275 590 550 Expected return on plan assets (377) (420) (754) (840) Amortization of prior service credit (29) (29) (60) (55) $ 54 $ (10) $ 107 $ (17) Three Months Ended Six Months Ended Postretirement Healthcare Plans 2015 2014 2015 2014 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 10 10 21 20 $ 20 $ 20 $ 41 $ 40 Contributions to our tax qualified U.S. domestic pension plans (“U.S. Pension Plans”) for the six -month periods ended November 30 were as follows (in millions) : 2015 2014 Required $ 8 $ 247 Voluntary 322 83 $ 330 $ 330 In December 201 5 , we made an additional voluntary contri bution of $ 165 million to our U.S. Pension Plans. Our U.S. Pension Plans have ample funds to meet expected benefit payments.

Business Segment Information

Business Segment Information	6 Months Ended
	Nov. 30, 2015
Business Segment Information [Abstract]
Business Segment Information	( 6 ) Business Segment Information We provide 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 include FedEx Expres s , the world's largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery serv ices; and FedEx Freight, Inc. (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“ LTL ”) freight services. Our reportable segments include the following businesses: FedEx Express Segment FedEx Express (express transportation) FedEx Trade Networks (air and ocean freight forwarding and customs brokerage) FedEx SupplyChain Systems (logistics services) Bongo (cross-border enablement technology and solutions) FedEx Ground Segment FedEx Ground (small-package ground delivery) GENCO (third-party logistics) FedEx Freight Segment FedEx Freight (LTL freight transportation) FedEx Custom Critical (time-critical transportation) FedEx Services Segment FedEx Services (sales, marketing, information technology, communications and back-office functions) FedEx TechConnect (customer service, technical support, billings and collections) FedEx Office (document and business services and package acceptance) FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information technology functions in shared services operations that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express, some of these functions are performed on a regional basis by FedEx Express and reported in the FedEx Express segment in their natural expense line items. 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. Eliminations, Corporate and Other 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, certain other 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. The following table provides a reconciliation of reportable segment revenues and operating income to our unaudited condensed consolidated financial statement totals for the periods ended November 30 (in millions): Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues FedEx Express segment $ 6,588 $ 7,024 $ 13,179 $ 13,886 FedEx Ground segment 4,050 3,063 7,880 6,023 FedEx Freight segment 1,547 1,585 3,148 3,194 FedEx Services segment 403 394 793 768 Eliminations and other (135) (127) (268) (248) $ 12,453 $ 11,939 $ 24,732 $ 23,623 Operating Income FedEx Express segment $ 622 $ 492 $ 1,167 $ 869 FedEx Ground segment 526 465 1,063 1,010 FedEx Freight segment 101 112 233 280 Eliminations, corporate and other (112) 19 (182) (9) $ 1,137 $ 1,088 $ 2,281 $ 2,150

Commitments

Commitments	6 Months Ended
	Nov. 30, 2015
Commitments [Abstract]
Commitments	( 7 ) Commitments As of November 30, 2015 , our purchase commitments under various contracts for the remainder of 2016 and annually thereafter were as follows (in millions): Aircraft and Aircraft-Related Other (1) Total 2016 (remainder) $ 228 $ 258 $ 486 2017 1,286 271 1,557 2018 1,755 157 1,912 2019 1,575 72 1,647 2020 1,646 24 1,670 Thereafter 5,867 98 5,965 Total $ 12,357 $ 880 $ 13,237 (1) Primarily equipment and advertising contracts. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of November 30, 2015 , our obligation to purchase six Boeing 767-300 Freighter (“B767F”) aircraft and nine 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 R LA . 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 had $ 326 million in deposits and progress payments as of November 30, 2015 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 November 30, 2015 with the year of expected delivery: B767F B777F Total 2016 (remainder) 2 - 2 2017 12 - 12 2018 16 2 18 2019 13 2 15 2020 12 3 15 Thereafter 26 9 35 Total 81 16 97 A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at November 30, 2015 is as follows (in millions): Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2016 (remainder) $ 393 $ 868 $ 1,261 2017 403 1,954 2,357 2018 332 1,544 1,876 2019 274 1,356 1,630 2020 190 1,192 1,382 Thereafter 360 7,668 8,028 Total $ 1,952 $ 14,582 $ 16,534 Future minimum lease payments under capital leases were immaterial at November 30, 2015 . While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain ce rtain levels of insurance, none of our lease agreements include material financial covenants or limitations.

Contingencies

Contingencies	6 Months Ended
	Nov. 30, 2015
Loss Contingency [Abstract]
Contingencies	(8 ) Contingencies Wage-and-Hour. We are a defendant in a number of lawsuits containing various class-action allegations of wage-and-hour violations. The plaintiffs in these lawsuits allege, 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. The complaints generally seek unspecified monetary damages, injunctive relief, or both. We do not believe that a material loss is reasonably possible with respect to any of these matters. Independent Contractor — Lawsuits and State Administrative Proceedings. FedEx Ground is involved in numerous class-action lawsuits (including 25 that have been certified as class actions), individual lawsuits and state tax and other administrative proceedings that claim that the company's owner-operators should be 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 are 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. The settlement will require court approval. 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. Three of these matters settled for immaterial amounts and have received court approval. The cases in Arkansas and Florida settled in the second quarter of 2016, and we established an accrual in each of these cases for the amount of the settlement. The settlements are subject to court approval. Two cases in Oregon and one in California were appealed to the Ninth Circuit Court of Appeals, where the court reversed the district court decisions and held that the plaintiffs in California and Oregon were employees as a matter of law and remanded the cases to their respective district courts for further proceedings. In the first quarter of 2015, we recognized an accrual for the then-estimated probable loss in those cases . In June 2015, the parties in the California case engaged in mediation and 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 settlement agreement is pending court approval. The two cases in Oregon have been consolidated with a non-MDL independent contractor case in Oregon. The three cases collectively settled in the second quarter of 2016, and we increased the accrual in these cases to the amount of the settlement. The settlement is subject to court approval. The aggregate amount of independent contractor case settlements during the second quarter of 2016 was $47 million, and the related aggregate accrual increase was $41 million during the quarter. 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. For these cases, as well as the remaining 19 cases before the Seventh Circuit, 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 FedEx Ground's 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 full-time 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 of our 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, and could result in changes to the independent contractor status of FedEx Ground's owner-operators in certain jurisdictions. 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. On December 30, 2013, the City of New York filed suit against FedEx Express and FedEx Ground arising from our alleged shipments of cigarettes to New York City residents. The claims against FedEx Express were subsequently dismissed. On March 30, 2014, the complaint was amended adding the State of New York as a plaintiff. Beyond the addition of the State as a plaintiff, the amended complaint contains several amplifications of the previous claims. First, the claims now relate to four shippers, none of which continues to ship in our network. Second, the amended complaint contains a count for violation of the Assurance of Compliance (“AOC”) we had previously entered into with the State of New York, claiming that since 2006, FedEx has made shipments of cigarettes to residences in New York in violation of the AOC. Lastly, the amendment contains new theories of Racketeer Influenced and Corrupt Organizations Act (“RICO”) violations. In May 2014, we filed a motion to dismiss almost all of the claims. On November 12, 2014, the City and State of New York filed a separate but almost identical lawsuit that includes two additional shippers. This complaint was amended in May 2015 to include additional shippers. On March 9, 2015, the court ruled on our motion to dismiss in the first case, granting our motions to limit the applicable statute of limitations to four years and to dismiss a portion of the claims. The court, however, denied our motion to dismiss some of the claims, including the RICO claims. Loss in these lawsuits is reasonably possible, but the amount of any loss is expected to be immaterial. 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. In February 2014, FedEx Ground received oral communications from District Attorneys' Offices (representing California's county environmental authorities) and the California Attorney General's Office (representing the California Division of Toxic Substances Control (“DTSC”)) that they were seeking civil penalties for alleged violations of the state's hazardous waste regulations. Specifically, the California environmental authorities alleged that FedEx Ground improperly generates and/or handles, stores and transports hazardous waste from its stations to its hubs in California. In April 2014, FedEx Ground filed a declaratory judgment action in the United States District Court for the Eastern District of California against the Director of the California DTSC and the County District Attorneys with whom we have been negotiating. In June 2014, the California Attorney General filed a complaint against FedEx Ground in Sacramento County Superior Court alleging violations by FedEx Ground as described above. The County District Attorneys filed a similar complaint in Sacramento County Superior Court in July 2014. The county and state authorities filed a motion to dismiss FedEx Ground's declaratory judgment action, and their motion was granted on January 22, 2015. FedEx Ground filed a notice of appeal with the Ninth Circuit Court of Appeals on February 23, 2015. FedEx Ground and the County District Attorneys reached an agreement to resolve all claims between them, and on August 10, 2015, they filed a negotiated final judgment in Sacramento County Superior Court that the court subsequently approved. In the fourth quarter of 2015, we established an accrual for the final judgment amount, which was immaterial. On November 19, 2015, FedEx Ground and the DTSC agreed to settle their dispute, subject to memorializing a consent judgment consistent with the terms FedEx Ground agreed upon with the District Attorneys. We established an accrual for the settlement amount in the second quarter of 2016. This amount was immaterial. On January 14, 2014, the U.S. Department of Justice (“DOJ”) issued a Grand Jury Subpoena to FedEx Express relating to an asbestos matter previously investigated by the U.S. Environmental Protection Agency. On May 1, 2014, the DOJ informed us that it had determined to continue to pursue the matter as a criminal case, citing seven asbestos-related regulatory violations associated with removal of roof materials from a hangar in Puerto Rico during cleaning and repair activity, as well as violation of waste disposal requirements. Loss is reasonably possible; however, the amount of any loss is expected to be immaterial. Department of Justice Indictment – Internet Pharmacy Shipments. In the past, we received requests for information from the DOJ in the Northern District of California in connection with a criminal investigation relating to the transportation of packages for online pharmacies that may have shipped pharmaceuticals in violation of federal law. In July 2014, the DOJ filed a criminal indictment in the United States District Court for the Northern District of California in connection with the matter. A superseding indictment was filed in August 2014. The indictment alleges that FedEx Corporation, FedEx Express and FedEx Services, together with certain pharmacies, conspired to unlawfully distribute controlled substances, unlawfully distributed controlled substances and conspired to unlawfully distribute misbranded drugs. The superseding indictment adds conspiracy to launder money counts related to services provided to and payments from online pharmacies. We continue to believe that our employees have acted in good faith at all times and that we have not engaged in any illegal activities. Accordingly, we will vigorously defend ourselves in this matter. If we are convicted, remedies could include fines, penalties, forfeiture and compliance conditions. Given the stage of this proceeding, we cannot estimate the amount or range of loss, if any; however, it is reasonably possible that it could be material if we are convicted. Other Matters. On June 30, 2014, we received a Statement of Objections from the French Competition Authority (“FCA”) addressed to FedEx Express France, formerly known as TATEX, regarding an investigation by the FCA into anticompetitive behavior that is alleged to have occurred primarily in the framework of trade association meetings that included the former general managers of TATEX prior to our acquisition of that company in July 2012. In September 2014, FedEx Express France submitted its observations in response to the Statement of Objections to the FCA. In April 2015, the FCA issued a report responding to the observations submitted by all companies involved in the investigation. We submitted an answer to the FCA's re port in early July. Loss in this matter is probable, and in the fourth quarter of 2015 we established an accrual for the estimated probable loss. This amount was immaterial. A hearing in this matter before the Board of the FCA occurred on September 30, 2015. On December 15, 2015, the FCA announced its decision and related fines against all companies involved in the investigation. Fe dEx Express France was fined € 17 million (currently, $19 million) . We are analyzing the decision and are considering the possibility of an appeal. Based on the amount previously accrued and available indemnification, no adjustment to the accru ed amount is necessary at this time. The U.S. Customs & Border Protection (the “CBP”) previously notified FedEx Trade Networks that it would be reviewing certain customs entries made at U.S. ports from 2008 to December 2013. In November 2015, the CBP notified FedEx Trade Networks that it may be liable for $76 million to $210 million in estimated uncollected duties and fees. The CBP has given FedEx Trade Networks an opportunity to respond with an offer in compromise covering all periods. Loss in this matter is probable, but at this time it is not possible for us to estimate the range of loss as we are still evaluating the CBP's proposed range of liability, the amount we are willing to offer in compromise, if any, and the extent to which any loss would be covered by insurance. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of their business. 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.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Nov. 30, 2015
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	( 9 ) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the six-month periods ended November 30 was as follows (in mil lions): 2015 2014 Cash payments for: Interest (net of capitalized interest) $ 146 $ 103 Income taxes $ 831 $ 760 Income tax refunds received (3) (5) Cash tax payments, net $ 828 $ 755

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	6 Months Ended
	Nov. 30, 2015
Condensed Consolidating Financial Statements [Abstract]
Condensed Consolidating Financial Statements	(10 ) Condensed Consolidating Financial Statements W e 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 . FedEx Express, however, currently files reports under such act. The guarantor subsidiaries, which are 100% owned by FedEx, guarantee $ 8 . 25 billion of our 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 re sult, the "Guarantor Subsidiaries" and "Non-g uarantor 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 su bsidiary guarantor reporting. Prior year amounts have been recast to conform to the pension accounting changes as discussed in our Annual Report. Condensed consolidating financial statements for our guarantor subsidiaries and non-guarantor subsidiaries are presented in the following tables (in millions): CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,229 $ 474 $ 988 $ (44) $ 3,647 Receivables, less allowances 10 4,503 1,405 (53) 5,865 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 85 739 129 - 953 Deferred income taxes - 651 36 - 687 Total current assets 2,324 6,367 2,558 (97) 11,152 PROPERTY AND EQUIPMENT, AT COST 29 43,125 2,088 - 45,242 Less accumulated depreciation and amortization 23 21,832 1,109 - 22,964 Net property and equipment 6 21,293 979 - 22,278 INTERCOMPANY RECEIVABLE - 981 1,255 (2,236) - GOODWILL - 1,571 2,235 - 3,806 INVESTMENT IN SUBSIDIARIES 24,371 3,228 - (27,599) - OTHER ASSETS 2,785 708 343 (2,701) 1,135 $ 29,486 $ 34,148 $ 7,370 $ (32,633) $ 38,371 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 6 $ 8 $ - $ 14 Accrued salaries and employee benefits 49 1,251 210 - 1,510 Accounts payable 76 1,411 739 (97) 2,129 Accrued expenses 632 1,415 251 - 2,298 Total current liabilities 757 4,083 1,208 (97) 5,951 LONG-TERM DEBT, LESS CURRENT PORTION 8,217 248 16 - 8,481 INTERCOMPANY PAYABLE 2,236 - - (2,236) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,263 197 (2,701) 1,759 Other liabilities 3,286 3,653 251 - 7,190 Total other long-term liabilities 3,286 7,916 448 (2,701) 8,949 STOCKHOLDERS' INVESTMENT 14,990 21,901 5,698 (27,599) 14,990 $ 29,486 $ 34,148 $ 7,370 $ (32,633) $ 38,371 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,383 $ 487 $ 971 $ (78) $ 3,763 Receivables, less allowances 3 4,383 1,385 (52) 5,719 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 41 689 123 - 853 Deferred income taxes - 571 35 - 606 Total current assets 2,427 6,130 2,514 (130) 10,941 PROPERTY AND EQUIPMENT, AT COST 29 40,364 2,471 - 42,864 Less accumulated depreciation and amortization 23 20,685 1,281 - 21,989 Net property and equipment 6 19,679 1,190 - 20,875 INTERCOMPANY RECEIVABLE - 686 1,563 (2,249) - GOODWILL - 1,552 2,258 - 3,810 INVESTMENT IN SUBSIDIARIES 23,173 3,800 - (26,973) - OTHER ASSETS 2,752 898 477 (2,684) 1,443 $ 28,358 $ 32,745 $ 8,002 $ (32,036) $ 37,069 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 7 $ 12 $ - $ 19 Accrued salaries and employee benefits 34 1,208 194 - 1,436 Accounts payable 5 1,433 758 (130) 2,066 Accrued expenses 604 1,557 275 - 2,436 Total current liabilities 643 4,205 1,239 (130) 5,957 LONG-TERM DEBT, LESS CURRENT PORTION 6,978 248 23 - 7,249 INTERCOMPANY PAYABLE 2,249 - - (2,249) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,206 225 (2,684) 1,747 Other liabilities 3,495 3,367 261 - 7,123 Total other long-term liabilities 3,495 7,573 486 (2,684) 8,870 STOCKHOLDERS' INVESTMENT 14,993 20,719 6,254 (26,973) 14,993 $ 28,358 $ 32,745 $ 8,002 $ (32,036) $ 37,069 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,479 $ 2,048 $ (74) $ 12,453 OPERATING EXPENSES: Salaries and employee benefits 26 3,926 618 - 4,570 Purchased transportation - 1,941 622 (25) 2,538 Rentals and landing fees 2 596 86 (2) 682 Depreciation and amortization 1 601 51 - 653 Fuel - 597 18 - 615 Maintenance and repairs - 497 32 - 529 Intercompany charges, net (112) 84 28 - - Other 83 1,293 400 (47) 1,729 - 9,535 1,855 (74) 11,316 OPERATING INCOME - 944 193 - 1,137 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 691 73 - (764) - Interest, net (81) 6 1 - (74) Intercompany charges, net 84 (83) (1) - - Other, net (3) (6) 1 - (8) INCOME BEFORE INCOME TAXES 691 934 194 (764) 1,055 Provision for income taxes - 309 55 - 364 NET INCOME $ 691 $ 625 $ 139 $ (764) $ 691 COMPREHENSIVE INCOME $ 672 $ 620 $ 112 $ (764) $ 640 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2014 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 9,926 $ 2,108 $ (95) $ 11,939 OPERATING EXPENSES: Salaries and employee benefits 23 3,656 550 - 4,229 Purchased transportation - 1,468 764 (47) 2,185 Rentals and landing fees 2 577 86 (2) 663 Depreciation and amortization 1 595 55 - 651 Fuel - 1,028 24 - 1,052 Maintenance and repairs - 507 36 - 543 Intercompany charges, net (48) (50) 98 - - Other 22 1,239 313 (46) 1,528 - 9,020 1,926 (95) 10,851 OPERATING INCOME - 906 182 - 1,088 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 663 103 - (766) - Interest, net (53) 5 1 - (47) Intercompany charges, net 54 (59) 5 - - Other, net (1) 2 4 - 5 INCOME BEFORE INCOME TAXES 663 957 192 (766) 1,046 Provision for income taxes - 346 37 - 383 NET INCOME $ 663 $ 611 $ 155 $ (766) $ 663 COMPREHENSIVE INCOME $ 644 $ 586 $ 59 $ (766) $ 523 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 20,352 $ 4,557 $ (177) $ 24,732 OPERATING EXPENSES: Salaries and employee benefits 60 7,739 1,296 - 9,095 Purchased transportation - 3,375 1,587 (80) 4,882 Rentals and landing fees 3 1,183 194 (3) 1,377 Depreciation and amortization 1 1,184 116 - 1,301 Fuel - 1,288 39 - 1,327 Maintenance and repairs - 1,005 72 - 1,077 Intercompany charges, net (181) 44 137 - - Other 117 2,557 812 (94) 3,392 - 18,375 4,253 (177) 22,451 OPERATING INCOME - 1,977 304 - 2,281 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,383 134 - (1,517) - Interest, net (156) 14 5 - (137) Intercompany charges, net 162 (159) (3) - - Other, net (6) (9) 10 - (5) INCOME BEFORE INCOME TAXES 1,383 1,957 316 (1,517) 2,139 Provision for income taxes - 666 90 - 756 NET INCOME $ 1,383 $ 1,291 $ 226 $ (1,517) $ 1,383 COMPREHENSIVE INCOME $ 1,346 $ 1,271 $ 70 $ (1,517) $ 1,170 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2014 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 19,695 $ 4,112 $ (184) $ 23,623 OPERATING EXPENSES: Salaries and employee benefits 53 7,190 1,100 - 8,343 Purchased transportation - 2,854 1,475 (90) 4,239 Rentals and landing fees 3 1,149 174 (3) 1,323 Depreciation and amortization 1 1,190 111 - 1,302 Fuel - 2,123 49 - 2,172 Maintenance and repairs - 1,029 70 - 1,099 Intercompany charges, net (143) (48) 191 - - Other 86 2,404 596 (91) 2,995 - 17,891 3,766 (184) 21,473 OPERATING INCOME - 1,804 346 - 2,150 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,316 201 - (1,517) - Interest, net (106) 9 2 - (95) Intercompany charges, net 108 (118) 10 - - Other, net (2) (1) 6 - 3 INCOME BEFORE INCOME TAXES 1,316 1,895 364 (1,517) 2,058 Provision for income taxes - 642 100 - 742 NET INCOME $ 1,316 $ 1,253 $ 264 $ (1,517) $ 1,316 COMPREHENSIVE INCOME $ 1,280 $ 1,224 $ 142 $ (1,517) $ 1,129 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (847) $ 3,054 $ 213 $ 34 $ 2,454 INVESTING ACTIVITIES Capital expenditures - (2,482) (80) - (2,562) Proceeds from asset dispositions and other (5) 21 (4) - 12 CASH USED IN INVESTING ACTIVITIES (5) (2,461) (84) - (2,550) FINANCING ACTIVITIES Net transfers from (to) Parent 648 (691) 43 - - Payment on loan between subsidiaries - 106 (106) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (2) (15) - (17) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 62 - - - 62 Excess tax benefit on the exercise of stock options 8 - - - 8 Dividends paid (141) - - - (141) Purchase of treasury stock (1,101) - - - (1,101) Other, net (16) (27) 27 - (16) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 698 (594) (71) - 33 Effect of exchange rate changes on cash - (12) (41) - (53) Net (decrease) increase in cash and cash equivalents (154) (13) 17 34 (116) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 2,229 $ 474 $ 988 $ (44) $ 3,647 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2014 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (458) $ 2,335 $ 257 $ 17 $ 2,151 INVESTING ACTIVITIES Capital expenditures (1) (1,809) (80) - (1,890) Proceeds from asset dispositions and other (1) 17 (9) - 7 CASH USED IN INVESTING ACTIVITIES (2) (1,792) (89) - (1,883) FINANCING ACTIVITIES Net transfers from (to) Parent 601 (610) 9 - - Payment on loan between subsidiaries - 143 (143) - - Intercompany dividends - 22 (22) - - Principal payments on debt - (1) - - (1) Proceeds from stock issuances 189 - - - 189 Excess tax benefit on the exercise of stock options 23 - - - 23 Dividends paid (114) - - - (114) Purchase of treasury stock (947) - - - (947) Other, net - (39) 39 - CASH USED IN FINANCING ACTIVITIES (248) (485) (117) - (850) Effect of exchange rate changes on cash - (17) (43) - (60) Net (decrease) increase in cash and cash equivalents (708) 41 8 17 (642) Cash and cash equivalents at beginning of period 1,756 441 861 (150) 2,908 Cash and cash equivalents at end of period $ 1,048 $ 482 $ 869 $ (133) $ 2,266

General (Policies)

General (Policies)	6 Months Ended
	Nov. 30, 2015
General (Policies) [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10 - K for the year ended May 31, 2015 (“Annual Report”) . Accordingly, significant accounting policies and other disclosures normally pr ovided have been omitted since such items are disclosed i n our Annual Report . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2015 , the results of our operations for the three- and six- month periods ended November 30, 2015 and 2014 and cash flows for the six-month periods ended November 30, 2015 and 2014 . Operating results for the three- and six- month period s ended November 30, 2015 are not necessarily indicative of the results that may be expected for the year ending May 31, 2016 . Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2016 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year.

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Nov. 30, 2015
Acquisition (Tables) [Abstract]
Schedule of Purchase Price Allocation	Current assets $ 344 Property and equipment 113 Goodwill 1,194 Intangible assets 69 Other non-current assets 25 Current liabilities (244) Long-term liabilities (56) Total purchase price $ 1,445

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Nov. 30, 2015
Accumulated Other Comprehensive Income (Loss) (Tables) [Abstract]
Schedule Of Accumulated Other Comprehensive Income (Loss)	Three Months Ended Six Months Ended 2015 2014 2015 2014 Foreign currency translation gain (loss): Balance at beginning of period $ (391) $ 50 $ (253) $ 81 Translation adjustments (33) (122) (171) (153) Balance at end of period (424) (72) (424) (72) Retirement plans adjustments: Balance at beginning of period 401 409 425 425 Reclassifications from AOCI (18) (18) (42) (34) Balance at end of period 383 391 383 391 Accumulated other comprehensive (loss) income at end of period $ (41) $ 319 $ (41) $ 319
Reclassification Out Of Accumulated Other Comprehensive Income (Loss)	Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Six Months Ended 2015 2014 2015 2014 Amortization of retirement plans prior service credits, before tax $ 29 $ 29 $ 60 $ 55 Salaries and employee benefits Income tax benefit (11) (11) (18) (21) Provision for income taxes AOCI reclassifications, net of tax $ 18 $ 18 $ 42 $ 34 Net income

Computation of Earnings Per S21

Computation of Earnings Per Share (Tables)	6 Months Ended
	Nov. 30, 2015
Computation Of Earnings Per Share (Tables) [Abstract]
Schedule of basic and diluted earnings per common share	Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic earnings per common share: Net earnings allocable to common shares (1) $ 690 $ 662 $ 1,382 $ 1,315 Weighted-average common shares 279 283 281 284 Basic earnings per common share $ 2.47 $ 2.34 $ 4.92 $ 4.63 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 690 $ 662 $ 1,382 $ 1,315 Weighted-average common shares 279 283 281 284 Dilutive effect of share-based awards 4 4 3 4 Weighted-average diluted shares 283 287 284 288 Diluted earnings per common share $ 2.44 $ 2.31 $ 4.86 $ 4.57 Anti-dilutive options excluded from diluted earnings per common share 3.7 2.2 3.6 2.2 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Nov. 30, 2015
Retirement Plan (Tables) [Abstract]
Schedule of Retirement Plan Costs	Three Months Ended Six Months Ended 2015 2014 2015 2014 Defined benefit pension plans $ 54 $ (10) $ 107 $ (17) Defined contribution plans 103 94 205 188 Postretirement healthcare plans 20 20 41 40 $ 177 $ 104 $ 353 $ 211
Schedule of Net Periodic Benefit Cost	Three Months Ended Six Months Ended Pension Plans 2015 2014 2015 2014 Service cost $ 165 $ 164 $ 331 $ 328 Interest cost 295 275 590 550 Expected return on plan assets (377) (420) (754) (840) Amortization of prior service credit (29) (29) (60) (55) $ 54 $ (10) $ 107 $ (17) Three Months Ended Six Months Ended Postretirement Healthcare Plans 2015 2014 2015 2014 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 10 10 21 20 $ 20 $ 20 $ 41 $ 40
Schedule of Pension Plans Contributions	2015 2014 Required $ 8 $ 247 Voluntary 322 83 $ 330 $ 330

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Nov. 30, 2015
Business Segment Information (Tables) [Abstract]
Schedule of Segment Information	Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues FedEx Express segment $ 6,588 $ 7,024 $ 13,179 $ 13,886 FedEx Ground segment 4,050 3,063 7,880 6,023 FedEx Freight segment 1,547 1,585 3,148 3,194 FedEx Services segment 403 394 793 768 Eliminations and other (135) (127) (268) (248) $ 12,453 $ 11,939 $ 24,732 $ 23,623 Operating Income FedEx Express segment $ 622 $ 492 $ 1,167 $ 869 FedEx Ground segment 526 465 1,063 1,010 FedEx Freight segment 101 112 233 280 Eliminations, corporate and other (112) 19 (182) (9) $ 1,137 $ 1,088 $ 2,281 $ 2,150

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Nov. 30, 2015
Commitments (Tables) [Abstract]
Schedule of Purchase Commitments	Aircraft and Aircraft-Related Other (1) Total 2016 (remainder) $ 228 $ 258 $ 486 2017 1,286 271 1,557 2018 1,755 157 1,912 2019 1,575 72 1,647 2020 1,646 24 1,670 Thereafter 5,867 98 5,965 Total $ 12,357 $ 880 $ 13,237 (1) Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments	B767F B777F Total 2016 (remainder) 2 - 2 2017 12 - 12 2018 16 2 18 2019 13 2 15 2020 12 3 15 Thereafter 26 9 35 Total 81 16 97
Schedule of Future Minimum Lease Payments, Operating Leases	Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2016 (remainder) $ 393 $ 868 $ 1,261 2017 403 1,954 2,357 2018 332 1,544 1,876 2019 274 1,356 1,630 2020 190 1,192 1,382 Thereafter 360 7,668 8,028 Total $ 1,952 $ 14,582 $ 16,534

Supplemental Cash Flow Inform25

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Nov. 30, 2015
Supplemental Cash Flow (Tables) [Abstract]
Supplemental Cash Flow Table	2015 2014 Cash payments for: Interest (net of capitalized interest) $ 146 $ 103 Income taxes $ 831 $ 760 Income tax refunds received (3) (5) Cash tax payments, net $ 828 $ 755

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	6 Months Ended
	Nov. 30, 2015
Condensed Consolidating Financial Statements (Tables) [Abstract]
Condensed Consolidating Balance Sheets	CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,229 $ 474 $ 988 $ (44) $ 3,647 Receivables, less allowances 10 4,503 1,405 (53) 5,865 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 85 739 129 - 953 Deferred income taxes - 651 36 - 687 Total current assets 2,324 6,367 2,558 (97) 11,152 PROPERTY AND EQUIPMENT, AT COST 29 43,125 2,088 - 45,242 Less accumulated depreciation and amortization 23 21,832 1,109 - 22,964 Net property and equipment 6 21,293 979 - 22,278 INTERCOMPANY RECEIVABLE - 981 1,255 (2,236) - GOODWILL - 1,571 2,235 - 3,806 INVESTMENT IN SUBSIDIARIES 24,371 3,228 - (27,599) - OTHER ASSETS 2,785 708 343 (2,701) 1,135 $ 29,486 $ 34,148 $ 7,370 $ (32,633) $ 38,371 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 6 $ 8 $ - $ 14 Accrued salaries and employee benefits 49 1,251 210 - 1,510 Accounts payable 76 1,411 739 (97) 2,129 Accrued expenses 632 1,415 251 - 2,298 Total current liabilities 757 4,083 1,208 (97) 5,951 LONG-TERM DEBT, LESS CURRENT PORTION 8,217 248 16 - 8,481 INTERCOMPANY PAYABLE 2,236 - - (2,236) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,263 197 (2,701) 1,759 Other liabilities 3,286 3,653 251 - 7,190 Total other long-term liabilities 3,286 7,916 448 (2,701) 8,949 STOCKHOLDERS' INVESTMENT 14,990 21,901 5,698 (27,599) 14,990 $ 29,486 $ 34,148 $ 7,370 $ (32,633) $ 38,371 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,383 $ 487 $ 971 $ (78) $ 3,763 Receivables, less allowances 3 4,383 1,385 (52) 5,719 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 41 689 123 - 853 Deferred income taxes - 571 35 - 606 Total current assets 2,427 6,130 2,514 (130) 10,941 PROPERTY AND EQUIPMENT, AT COST 29 40,364 2,471 - 42,864 Less accumulated depreciation and amortization 23 20,685 1,281 - 21,989 Net property and equipment 6 19,679 1,190 - 20,875 INTERCOMPANY RECEIVABLE - 686 1,563 (2,249) - GOODWILL - 1,552 2,258 - 3,810 INVESTMENT IN SUBSIDIARIES 23,173 3,800 - (26,973) - OTHER ASSETS 2,752 898 477 (2,684) 1,443 $ 28,358 $ 32,745 $ 8,002 $ (32,036) $ 37,069 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 7 $ 12 $ - $ 19 Accrued salaries and employee benefits 34 1,208 194 - 1,436 Accounts payable 5 1,433 758 (130) 2,066 Accrued expenses 604 1,557 275 - 2,436 Total current liabilities 643 4,205 1,239 (130) 5,957 LONG-TERM DEBT, LESS CURRENT PORTION 6,978 248 23 - 7,249 INTERCOMPANY PAYABLE 2,249 - - (2,249) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,206 225 (2,684) 1,747 Other liabilities 3,495 3,367 261 - 7,123 Total other long-term liabilities 3,495 7,573 486 (2,684) 8,870 STOCKHOLDERS' INVESTMENT 14,993 20,719 6,254 (26,973) 14,993 $ 28,358 $ 32,745 $ 8,002 $ (32,036) $ 37,069
Condensed Consolidating Statements of Comprehensive Income	CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,479 $ 2,048 $ (74) $ 12,453 OPERATING EXPENSES: Salaries and employee benefits 26 3,926 618 - 4,570 Purchased transportation - 1,941 622 (25) 2,538 Rentals and landing fees 2 596 86 (2) 682 Depreciation and amortization 1 601 51 - 653 Fuel - 597 18 - 615 Maintenance and repairs - 497 32 - 529 Intercompany charges, net (112) 84 28 - - Other 83 1,293 400 (47) 1,729 - 9,535 1,855 (74) 11,316 OPERATING INCOME - 944 193 - 1,137 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 691 73 - (764) - Interest, net (81) 6 1 - (74) Intercompany charges, net 84 (83) (1) - - Other, net (3) (6) 1 - (8) INCOME BEFORE INCOME TAXES 691 934 194 (764) 1,055 Provision for income taxes - 309 55 - 364 NET INCOME $ 691 $ 625 $ 139 $ (764) $ 691 COMPREHENSIVE INCOME $ 672 $ 620 $ 112 $ (764) $ 640 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2014 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 9,926 $ 2,108 $ (95) $ 11,939 OPERATING EXPENSES: Salaries and employee benefits 23 3,656 550 - 4,229 Purchased transportation - 1,468 764 (47) 2,185 Rentals and landing fees 2 577 86 (2) 663 Depreciation and amortization 1 595 55 - 651 Fuel - 1,028 24 - 1,052 Maintenance and repairs - 507 36 - 543 Intercompany charges, net (48) (50) 98 - - Other 22 1,239 313 (46) 1,528 - 9,020 1,926 (95) 10,851 OPERATING INCOME - 906 182 - 1,088 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 663 103 - (766) - Interest, net (53) 5 1 - (47) Intercompany charges, net 54 (59) 5 - - Other, net (1) 2 4 - 5 INCOME BEFORE INCOME TAXES 663 957 192 (766) 1,046 Provision for income taxes - 346 37 - 383 NET INCOME $ 663 $ 611 $ 155 $ (766) $ 663 COMPREHENSIVE INCOME $ 644 $ 586 $ 59 $ (766) $ 523 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 20,352 $ 4,557 $ (177) $ 24,732 OPERATING EXPENSES: Salaries and employee benefits 60 7,739 1,296 - 9,095 Purchased transportation - 3,375 1,587 (80) 4,882 Rentals and landing fees 3 1,183 194 (3) 1,377 Depreciation and amortization 1 1,184 116 - 1,301 Fuel - 1,288 39 - 1,327 Maintenance and repairs - 1,005 72 - 1,077 Intercompany charges, net (181) 44 137 - - Other 117 2,557 812 (94) 3,392 - 18,375 4,253 (177) 22,451 OPERATING INCOME - 1,977 304 - 2,281 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,383 134 - (1,517) - Interest, net (156) 14 5 - (137) Intercompany charges, net 162 (159) (3) - - Other, net (6) (9) 10 - (5) INCOME BEFORE INCOME TAXES 1,383 1,957 316 (1,517) 2,139 Provision for income taxes - 666 90 - 756 NET INCOME $ 1,383 $ 1,291 $ 226 $ (1,517) $ 1,383 COMPREHENSIVE INCOME $ 1,346 $ 1,271 $ 70 $ (1,517) $ 1,170 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2014 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 19,695 $ 4,112 $ (184) $ 23,623 OPERATING EXPENSES: Salaries and employee benefits 53 7,190 1,100 - 8,343 Purchased transportation - 2,854 1,475 (90) 4,239 Rentals and landing fees 3 1,149 174 (3) 1,323 Depreciation and amortization 1 1,190 111 - 1,302 Fuel - 2,123 49 - 2,172 Maintenance and repairs - 1,029 70 - 1,099 Intercompany charges, net (143) (48) 191 - - Other 86 2,404 596 (91) 2,995 - 17,891 3,766 (184) 21,473 OPERATING INCOME - 1,804 346 - 2,150 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,316 201 - (1,517) - Interest, net (106) 9 2 - (95) Intercompany charges, net 108 (118) 10 - - Other, net (2) (1) 6 - 3 INCOME BEFORE INCOME TAXES 1,316 1,895 364 (1,517) 2,058 Provision for income taxes - 642 100 - 742 NET INCOME $ 1,316 $ 1,253 $ 264 $ (1,517) $ 1,316 COMPREHENSIVE INCOME $ 1,280 $ 1,224 $ 142 $ (1,517) $ 1,129
Condensed Consolidating Statements of Cash Flows	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (847) $ 3,054 $ 213 $ 34 $ 2,454 INVESTING ACTIVITIES Capital expenditures - (2,482) (80) - (2,562) Proceeds from asset dispositions and other (5) 21 (4) - 12 CASH USED IN INVESTING ACTIVITIES (5) (2,461) (84) - (2,550) FINANCING ACTIVITIES Net transfers from (to) Parent 648 (691) 43 - - Payment on loan between subsidiaries - 106 (106) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (2) (15) - (17) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 62 - - - 62 Excess tax benefit on the exercise of stock options 8 - - - 8 Dividends paid (141) - - - (141) Purchase of treasury stock (1,101) - - - (1,101) Other, net (16) (27) 27 - (16) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 698 (594) (71) - 33 Effect of exchange rate changes on cash - (12) (41) - (53) Net (decrease) increase in cash and cash equivalents (154) (13) 17 34 (116) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 2,229 $ 474 $ 988 $ (44) $ 3,647 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2014 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (458) $ 2,335 $ 257 $ 17 $ 2,151 INVESTING ACTIVITIES Capital expenditures (1) (1,809) (80) - (1,890) Proceeds from asset dispositions and other (1) 17 (9) - 7 CASH USED IN INVESTING ACTIVITIES (2) (1,792) (89) - (1,883) FINANCING ACTIVITIES Net transfers from (to) Parent 601 (610) 9 - - Payment on loan between subsidiaries - 143 (143) - - Intercompany dividends - 22 (22) - - Principal payments on debt - (1) - - (1) Proceeds from stock issuances 189 - - - 189 Excess tax benefit on the exercise of stock options 23 - - - 23 Dividends paid (114) - - - (114) Purchase of treasury stock (947) - - - (947) Other, net - (39) 39 - CASH USED IN FINANCING ACTIVITIES (248) (485) (117) - (850) Effect of exchange rate changes on cash - (17) (43) - (60) Net (decrease) increase in cash and cash equivalents (708) 41 8 17 (642) Cash and cash equivalents at beginning of period 1,756 441 861 (150) 2,908 Cash and cash equivalents at end of period $ 1,048 $ 482 $ 869 $ (133) $ 2,266

General (Details 1)

General (Details 1) € in Millions, $ in Millions	Nov. 30, 2015USD ($)	Nov. 30, 2015EUR (€)	May. 31, 2015USD ($)
Business Acquisition [Line Items]
Goodwill	$ 3,806		$ 3,810
GENCOBONGOCOMBINED [Member]
Business Acquisition [Line Items]
Current Assets	344
Property and equipment	113
Goodwill	1,194
Intangible assets	69
Other non-current assets	25
Current liabilities	(244)
Long-term liabilities	(56)
Total purchase price	1,445
TNT acquisition [Member]
Business Acquisition [Line Items]
Total purchase price | €		€ 4,400
TNT acquisiton USD [Member]
Business Acquisition [Line Items]
Total purchase price	$ 4,800

General (Details 2)

General (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Stock Based Compensation Details [Abstract]
Stock-based compensation	$ 33	$ 31	$ 86	$ 79

General (Details 3)

General (Details 3) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Nov. 30, 2015	Nov. 30, 2015	Nov. 30, 2014
Treasury Shares [Abstract]
Number Of Shares Repurchased	6,000,000	6,000,000
Treasury Stock Acquired, Average Cost Per Share	$ 151.76
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased	15,000,000	15,000,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	5,100,000	5,100,000
Payments for Repurchase of Common Stock	$ 911	$ 1,101	$ 947

General (Details 4)

General (Details 4)	3 Months Ended
	Nov. 30, 2015$ / shares
Dividend Details [Abstract]
Dividends Payable, Date Declared	Nov. 2, 2015
Dividends Payable Amount Per Share	$ 0.25
Dividends Payable, Date To Be Paid	Jan. 4, 2016
Dividends Payable, Date Of Record	Dec. 14, 2015

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance			$ 172
Translation adjustment	$ (33)	$ (122)	(171)	$ (153)
Amortization of prior service credit, net of tax of $11, $11, $18, and $21	(18)	(18)	(42)	(34)
Ending balance	(41)	319	(41)	319
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	4,570	4,229	9,095	8,343
PROVISION FOR INCOME TAXES	364	383	756	742
Amortization of actuarial losses [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	29	29	60	55
Foreign currency translation gain (loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(391)	50	(253)	81
Translation adjustment	(33)	(122)	(171)	(153)
Ending balance	(424)	(72)	(424)	(72)
Retirement plans adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	401	409	425	425
Reclassification from AOCI	(18)	(18)	(42)	(34)
Ending balance	383	391	383	391
Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
PROVISION FOR INCOME TAXES	(11)	(11)	(18)	(21)
Net income	$ 18	$ 18	$ 42	$ 34

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2015	May. 31, 2015
Financing Arrangements (Details) [Line Items]
Line Of Credit Facility Maximum Borrowing Capacity	$ 1,750
Long Term Debt Exclusive of Capital Leases Carrying Value	8,500	$ 7,200
Long Term Debt Exclusive Of Capital Leases Fair Value	$ 8,500	$ 7,400
Line of Credit Facility, Expiration Date	Nov. 13, 2020
Letters Of Credit Outstanding	$ 318
Letter Of Credit Maximum Facility	500
Unused Portion Of Letter Of Credit Facility	$ 182
Line Of Credit Facility Covenant Terms	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 (“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. 
Line Of Credit Facility Covenant Compliance	The ratio of our debt to EBITDA was 1.2 to 1.0 at November 30, 2015.
Senior Unsecured Debt Due In 2045 [Member]
Financing Arrangements (Details) [Line Items]
Senior Unsecured Debt Issued	$ 1,250
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Debt Instrument, Maturity Date	Nov. 15, 2045

Computation of Earnings Per S33

Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Basic earnings per common share:
Net earnings allocable to common shares	$ 690	$ 662	$ 1,382	$ 1,315
Weighted-average common shares	279	283	281	284
Basic earnings per common share	$ 2.47	$ 2.34	$ 4.92	$ 4.63
Diluted earnings per common share:
Net earnings allocable to common shares	$ 690	$ 662	$ 1,382	$ 1,315
Weighted-average common shares	279	283	281	284
Dilutive effect of share-based awards	4	4	3	4
Weighted-average diluted shares	283	287	284	288
Diluted earnings per common share	$ 2.44	$ 2.31	$ 4.86	$ 4.57
Anti-dilutive options excluded from diluted earnings per common share	3.7	2.2	3.6	2.2

Retirement Plans (Details 1)

Retirement Plans (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Pension and Other Postretirement Benefit Expense [Abstract]
Defined benefit pension plans	$ 54	$ (10)	$ 107	$ (17)
Defined contribution plans	103	94	205	188
Postretirement healthcare plans	20	20	41	40
Retirement plans costs	$ 177	$ 104	$ 353	$ 211

Retirement Plans (Details 2)

Retirement Plans (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Pension Plans
Net Periodic Benefit Cost
Service cost	$ 165	$ 164	$ 331	$ 328
Interest cost	295	275	590	550
Expected return on plan assets	(377)	(420)	(754)	(840)
Amortization of prior service credits	(29)	(29)	(60)	(55)
Total net periodic benefit cost	54	(10)	107	(17)
Postretirement Healthcare Plans
Net Periodic Benefit Cost
Service cost	10	10	20	20
Interest cost	10	10	21	20
Total net periodic benefit cost	$ 20	$ 20	$ 41	$ 40

Retirement Plans (Details 3)

Retirement Plans (Details 3) - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
Pension Plans Contributions [Abstract]
Required U.S. pension plan contributions	$ 8	$ 247
Voluntary U.S. pension plan contributions	322	83
U.S. domestic pension contributions	330	$ 330
December 2015 U.S. Pension Plans contribution	$ 165

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$ 12,453	$ 11,939	$ 24,732	$ 23,623
Operating Income	1,137	1,088	2,281	2,150
FedEx Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	6,588	7,024	13,179	13,886
Operating Income	622	492	1,167	869
FedEx Ground Segment [Member]
Segment Reporting Information [Line Items]
Revenues	4,050	3,063	7,880	6,023
Operating Income	526	465	1,063	1,010
FedEx Freight Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,547	1,585	3,148	3,194
Operating Income	101	112	233	280
FedEx Services Segment [Member]
Segment Reporting Information [Line Items]
Revenues	403	394	793	768
Eliminations, corporate and other
Segment Reporting Information [Line Items]
Revenues	(135)	(127)	(268)	(248)
Operating Income	$ (112)	$ 19	$ (182)	$ (9)

Commitments (Details 1)

Commitments (Details 1) $ in Millions	Nov. 30, 2015USD ($)
Schedule of Purchase Commitments [Line Items]
2016 (remainder)	$ 486
2,017	1,557
2,018	1,912
2,019	1,647
2,020	1,670
Thereafter	5,965
Total	13,237
Aircraft And Related Equipment Commitments [Member]
Schedule of Purchase Commitments [Line Items]
2016 (remainder)	228
2,017	1,286
2,018	1,755
2,019	1,575
2,020	1,646
Thereafter	5,867
Total	12,357
Other Commitments [Member]
Schedule of Purchase Commitments [Line Items]
2016 (remainder)	258	[1]
2,017	271	[1]
2,018	157	[1]
2,019	72	[1]
2,020	24	[1]
Thereafter	98	[1]
Total	$ 880	[1]
[1]	Primarily equipment and advertising contracts.

Commitments (Details 2)

Commitments (Details 2)	Nov. 30, 2015
Schedule of Aircraft Commitments [Line Items]
2016 (remainder)	2
2,017	12
2,018	18
2,019	15
2,020	15
Thereafter	35
Total	97
Boeing 777 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2,018	2
2,019	2
2,020	3
Thereafter	9
Total	16
Boeing 767 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2016 (remainder)	2
2,017	12
2,018	16
2,019	13
2,020	12
Thereafter	26
Total	81

Commitments (Details 3)

Commitments (Details 3) $ in Millions	Nov. 30, 2015USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	$ 1,261
2,017	2,357
2,018	1,876
2,019	1,630
2,020	1,382
Thereafter	8,028
Total	16,534
Aircraft and Related Equipment [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	393
2,017	403
2,018	332
2,019	274
2,020	190
Thereafter	360
Total	1,952
Facilities and Other [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	868
2,017	1,954
2,018	1,544
2,019	1,356
2,020	1,192
Thereafter	7,668
Total	$ 14,582

Commitments (Details 4)

Commitments (Details 4) $ in Millions	6 Months Ended
	Nov. 30, 2015USD ($)
Other Aircraft Commitments Disclosure [Abstract]
Boeing 777F Conditional Aircraft Commitments	9
Boeing 767F Conditional Aircraft Commitments	6
Other Commitment Disclosures [Line Items]
Deposit and Progress Payments	$ 326

Contingencies (Details)

Contingencies (Details) € in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Nov. 30, 2015USD ($)	Nov. 30, 2015USD ($)	Nov. 30, 2015EUR (€)
Independent Contractor California [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount		$ 228
Independent Contractor All [Member]
Loss Contingency [Line Items]
Litigation Settlement Expense	$ 41
Independent Contractor Other States [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount		47
TATEX Euro [Member]
Loss Contingency [Line Items]
Loss Contingency Damages Awarded Value | €			€ 17
TATEX USD [Member]
Loss Contingency [Line Items]
Loss Contingency Damages Awarded Value		19
U.S. CBP estimated uncollected amount Minimum [Member]
Loss Contingency [Line Items]
Loss Contingency Damages Sought Value		76
U.S. CBP estimated uncollected amount Maximum [Member]
Loss Contingency [Line Items]
Loss Contingency Damages Sought Value		$ 210

Supplemental Cash Flow Inform43

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014
Supplemental Cash Flow Information [Abstract]
Interest (net of capitalized interest)	$ 146	$ 103
Income taxes	831	760
Income tax refunds received	(3)	(5)
Cash tax payments, net	$ 828	$ 755

Condensed Consolidating Finan44

Condensed Consolidating Financial Statements (Details 1) $ in Millions	Nov. 30, 2015USD ($)
Guarantor Obligations [Abstract]
Debt Guarantee	$ 8,250

Condensed Consolidating Finan45

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions	Nov. 30, 2015	May. 31, 2015	Nov. 30, 2014	May. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 3,647	$ 3,763	$ 2,266	$ 2,908
Receivables, less allowances	5,865	5,719
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	953	853
Deferred income taxes	687	606
Total current assets	11,152	10,941
PROPERTY AND EQUIPMENT, AT COST	45,242	42,864
Less accumulated depreciation and amortization	22,964	21,989
Net property and equipment	22,278	20,875
Goodwill	3,806	3,810
Other assets	1,135	1,443
ASSETS	38,371	37,069
CURRENT LIABILITIES
Current portion of long-term debt	14	19
Accrued salaries and employee benefits	1,510	1,436
Accounts payable	2,129	2,066
Accrued expenses	2,298	2,436
Total current liabilities	5,951	5,957
LONG-TERM DEBT, LESS CURRENT PORTION	8,481	7,249
OTHER LONG-TERM LIABILITIES
Deferred income taxes	1,759	1,747
Other liabilities	7,190	7,123
Total other long-term liabilities	8,949	8,870
STOCKHOLDERS' INVESTMENT	14,990	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	38,371	37,069
Parent Company Member
CURRENT ASSETS
Cash and cash equivalents	2,229	2,383	1,048	1,756
Receivables, less allowances	10	3
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	85	41
Total current assets	2,324	2,427
PROPERTY AND EQUIPMENT, AT COST	29	29
Less accumulated depreciation and amortization	23	23
Net property and equipment	6	6
INVESTMENT IN SUBSIDIARIES	24,371	23,173
Other assets	2,785	2,752
ASSETS	29,486	28,358
CURRENT LIABILITIES
Accrued salaries and employee benefits	49	34
Accounts payable	76	5
Accrued expenses	632	604
Total current liabilities	757	643
LONG-TERM DEBT, LESS CURRENT PORTION	8,217	6,978
INTERCOMPANY PAYABLE	2,236	2,249
OTHER LONG-TERM LIABILITIES
Other liabilities	3,286	3,495
Total other long-term liabilities	3,286	3,495
STOCKHOLDERS' INVESTMENT	14,990	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	29,486	28,358
Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	474	487	482	441
Receivables, less allowances	4,503	4,383
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	739	689
Deferred income taxes	651	571
Total current assets	6,367	6,130
PROPERTY AND EQUIPMENT, AT COST	43,125	40,364
Less accumulated depreciation and amortization	21,832	20,685
Net property and equipment	21,293	19,679
INTERCOMPANY RECEIVABLE	981	686
Goodwill	1,571	1,552
INVESTMENT IN SUBSIDIARIES	3,228	3,800
Other assets	708	898
ASSETS	34,148	32,745
CURRENT LIABILITIES
Current portion of long-term debt	6	7
Accrued salaries and employee benefits	1,251	1,208
Accounts payable	1,411	1,433
Accrued expenses	1,415	1,557
Total current liabilities	4,083	4,205
LONG-TERM DEBT, LESS CURRENT PORTION	248	248
OTHER LONG-TERM LIABILITIES
Deferred income taxes	4,263	4,206
Other liabilities	3,653	3,367
Total other long-term liabilities	7,916	7,573
STOCKHOLDERS' INVESTMENT	21,901	20,719
LIABILITIES AND STOCKHOLDERS' INVESTMENT	34,148	32,745
Non Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	988	971	869	861
Receivables, less allowances	1,405	1,385
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	129	123
Deferred income taxes	36	35
Total current assets	2,558	2,514
PROPERTY AND EQUIPMENT, AT COST	2,088	2,471
Less accumulated depreciation and amortization	1,109	1,281
Net property and equipment	979	1,190
INTERCOMPANY RECEIVABLE	1,255	1,563
Goodwill	2,235	2,258
Other assets	343	477
ASSETS	7,370	8,002
CURRENT LIABILITIES
Current portion of long-term debt	8	12
Accrued salaries and employee benefits	210	194
Accounts payable	739	758
Accrued expenses	251	275
Total current liabilities	1,208	1,239
LONG-TERM DEBT, LESS CURRENT PORTION	16	23
OTHER LONG-TERM LIABILITIES
Deferred income taxes	197	225
Other liabilities	251	261
Total other long-term liabilities	448	486
STOCKHOLDERS' INVESTMENT	5,698	6,254
LIABILITIES AND STOCKHOLDERS' INVESTMENT	7,370	8,002
Consolidation Eliminations Member
CURRENT ASSETS
Cash and cash equivalents	(44)	(78)	$ (133)	$ (150)
Receivables, less allowances	(53)	(52)
Total current assets	(97)	(130)
INTERCOMPANY RECEIVABLE	(2,236)	(2,249)
INVESTMENT IN SUBSIDIARIES	(27,599)	(26,973)
Other assets	(2,701)	(2,684)
ASSETS	(32,633)	(32,036)
CURRENT LIABILITIES
Accounts payable	(97)	(130)
Total current liabilities	(97)	(130)
INTERCOMPANY PAYABLE	(2,236)	(2,249)
OTHER LONG-TERM LIABILITIES
Deferred income taxes	(2,701)	(2,684)
Total other long-term liabilities	(2,701)	(2,684)
STOCKHOLDERS' INVESTMENT	(27,599)	(26,973)
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ (32,633)	$ (32,036)

Condensed Consolidating Finan46

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2015	Nov. 30, 2014	Nov. 30, 2015	Nov. 30, 2014
Condensed Financial Statements Captions [Line Items]
REVENUES	$ 12,453	$ 11,939	$ 24,732	$ 23,623
OPERATING EXPENSES:
Salaries and employee benefits	4,570	4,229	9,095	8,343
Purchased transportation	2,538	2,185	4,882	4,239
Rentals and landing fees	682	663	1,377	1,323
Depreciation and amortization	653	651	1,301	1,302
Fuel	615	1,052	1,327	2,172
Maintenance and repairs	529	543	1,077	1,099
Other	1,729	1,528	3,392	2,995
OPERATING EXPENSES	11,316	10,851	22,451	21,473
OPERATING INCOME	1,137	1,088	2,281	2,150
OTHER INCOME (EXPENSE):
Interest, net	(74)	(47)	(137)	(95)
Other, net	(8)	5	(5)	3
INCOME BEFORE INCOME TAXES	1,055	1,046	2,139	2,058
PROVISION FOR INCOME TAXES	364	383	756	742
NET INCOME	691	663	1,383	1,316
COMPREHENSIVE INCOME	640	523	1,170	1,129
Parent Company Member
OPERATING EXPENSES:
Salaries and employee benefits	26	23	60	53
Rentals and landing fees	2	2	3	3
Depreciation and amortization	1	1	1	1
Intercompany charges, net	(112)	(48)	(181)	(143)
Other	83	22	117	86
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	691	663	1,383	1,316
Interest, net	(81)	(53)	(156)	(106)
Intercompany charges, net	84	54	162	108
Other, net	(3)	(1)	(6)	(2)
INCOME BEFORE INCOME TAXES	691	663	1,383	1,316
NET INCOME	691	663	1,383	1,316
COMPREHENSIVE INCOME	672	644	1,346	1,280
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	10,479	9,926	20,352	19,695
OPERATING EXPENSES:
Salaries and employee benefits	3,926	3,656	7,739	7,190
Purchased transportation	1,941	1,468	3,375	2,854
Rentals and landing fees	596	577	1,183	1,149
Depreciation and amortization	601	595	1,184	1,190
Fuel	597	1,028	1,288	2,123
Maintenance and repairs	497	507	1,005	1,029
Intercompany charges, net	84	(50)	44	(48)
Other	1,293	1,239	2,557	2,404
OPERATING EXPENSES	9,535	9,020	18,375	17,891
OPERATING INCOME	944	906	1,977	1,804
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	73	103	134	201
Interest, net	6	5	14	9
Intercompany charges, net	(83)	(59)	(159)	(118)
Other, net	(6)	2	(9)	(1)
INCOME BEFORE INCOME TAXES	934	957	1,957	1,895
PROVISION FOR INCOME TAXES	309	346	666	642
NET INCOME	625	611	1,291	1,253
COMPREHENSIVE INCOME	620	586	1,271	1,224
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	2,048	2,108	4,557	4,112
OPERATING EXPENSES:
Salaries and employee benefits	618	550	1,296	1,100
Purchased transportation	622	764	1,587	1,475
Rentals and landing fees	86	86	194	174
Depreciation and amortization	51	55	116	111
Fuel	18	24	39	49
Maintenance and repairs	32	36	72	70
Intercompany charges, net	28	98	137	191
Other	400	313	812	596
OPERATING EXPENSES	1,855	1,926	4,253	3,766
OPERATING INCOME	193	182	304	346
OTHER INCOME (EXPENSE):
Interest, net	1	1	5	2
Intercompany charges, net	(1)	5	(3)	10
Other, net	1	4	10	6
INCOME BEFORE INCOME TAXES	194	192	316	364
PROVISION FOR INCOME TAXES	55	37	90	100
NET INCOME	139	155	226	264
COMPREHENSIVE INCOME	112	59	70	142
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
REVENUES	(74)	(95)	(177)	(184)
OPERATING EXPENSES:
Purchased transportation	(25)	(47)	(80)	(90)
Rentals and landing fees	(2)	(2)	(3)	(3)
Other	(47)	(46)	(94)	(91)
OPERATING EXPENSES	(74)	(95)	(177)	(184)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(764)	(766)	(1,517)	(1,517)
INCOME BEFORE INCOME TAXES	(764)	(766)	(1,517)	(1,517)
NET INCOME	(764)	(766)	(1,517)	(1,517)
COMPREHENSIVE INCOME	$ (764)	$ (766)	$ (1,517)	$ (1,517)

Condensed Consolidating Finan47

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Nov. 30, 2015	Nov. 30, 2015	Nov. 30, 2014
Condensed Financial Statements Captions [Line Items]
Cash provided by (used in) operating activities		$ 2,454	$ 2,151
Investing Activities:
Capital expenditures		(2,562)	(1,890)
Proceeds from asset dispositions and other		12	7
Cash used in investing activities		(2,550)	(1,883)
Financing Activities:
Principal payments on debt		(17)	(1)
Proceeds from debt issuances		1,238
Proceeds from stock issuances		62	189
Excess tax benefit on the exercise of stock options		8	23
Dividends paid		(141)	(114)
Purchase of treasury stock	$ (911)	(1,101)	(947)
Other, net		(16)
Cash provided by (used in) financing activities		33	(850)
Effect of exchange rate changes on cash		(53)	(60)
Net decrease in cash and cash equivalents		(116)	(642)
Cash and cash equivalents at beginning of period		3,763	2,908
Cash and cash equivalents at end of period	3,647	3,647	2,266
Parent Company Member
Condensed Financial Statements Captions [Line Items]
Cash provided by (used in) operating activities		(847)	(458)
Investing Activities:
Capital expenditures			(1)
Proceeds from asset dispositions and other		(5)	(1)
Cash used in investing activities		(5)	(2)
Financing Activities:
Net transfers from (to) Parent		648	601
Proceeds from debt issuances		1,238
Proceeds from stock issuances		62	189
Excess tax benefit on the exercise of stock options		8	23
Dividends paid		(141)	(114)
Purchase of treasury stock		(1,101)	(947)
Other, net		(16)
Cash provided by (used in) financing activities		698	(248)
Net decrease in cash and cash equivalents		(154)	(708)
Cash and cash equivalents at beginning of period		2,383	1,756
Cash and cash equivalents at end of period	2,229	2,229	1,048
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Cash provided by (used in) operating activities		3,054	2,335
Investing Activities:
Capital expenditures		(2,482)	(1,809)
Proceeds from asset dispositions and other		21	17
Cash used in investing activities		(2,461)	(1,792)
Financing Activities:
Net transfers from (to) Parent		(691)	(610)
Payment on loan between subsidiaries		106	143
Intercompany dividends		20	22
Principal payments on debt		(2)	(1)
Other, net		(27)	(39)
Cash provided by (used in) financing activities		(594)	(485)
Effect of exchange rate changes on cash		(12)	(17)
Net decrease in cash and cash equivalents		(13)	41
Cash and cash equivalents at beginning of period		487	441
Cash and cash equivalents at end of period	474	474	482
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Cash provided by (used in) operating activities		213	257
Investing Activities:
Capital expenditures		(80)	(80)
Proceeds from asset dispositions and other		(4)	(9)
Cash used in investing activities		(84)	(89)
Financing Activities:
Net transfers from (to) Parent		43	9
Payment on loan between subsidiaries		(106)	(143)
Intercompany dividends		(20)	(22)
Principal payments on debt		(15)
Other, net		27	39
Cash provided by (used in) financing activities		(71)	(117)
Effect of exchange rate changes on cash		(41)	(43)
Net decrease in cash and cash equivalents		17	8
Cash and cash equivalents at beginning of period		971	861
Cash and cash equivalents at end of period	988	988	869
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
Cash provided by (used in) operating activities		34	17
Financing Activities:
Net decrease in cash and cash equivalents		34	17
Cash and cash equivalents at beginning of period		(78)	(150)
Cash and cash equivalents at end of period	$ (44)	$ (44)	$ (133)