FedEx (FDX) 10-Q 17 Mar 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	9 Months Ended
	Feb. 29, 2016	Mar. 16, 2016	Nov. 30, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Feb. 29, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		268,423,762
TradingSymbol	FDX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 2,841	$ 3,763
Receivables, less allowances of $187 and $185	5,634	5,719
Spare parts, supplies and fuel, less allowances of $212 and $207	476	498
Deferred income taxes	608	606
Prepaid expenses and other	678	355
Total current assets	10,237	10,941
PROPERTY AND EQUIPMENT, AT COST	46,032	42,864
Less accumulated depreciation and amortization	23,480	21,989
Net property and equipment	22,552	20,875
OTHER LONG-TERM ASSETS
Goodwill	3,764	3,810
Other assets	1,266	1,443
Total other long-term assets	5,030	5,253
ASSETS	37,819	37,069
CURRENT LIABILITIES
Current portion of long-term debt	11	19
Accrued salaries and employee benefits	1,451	1,436
Accounts payable	2,024	2,066
Accrued expenses	2,453	2,436
Total current liabilities	5,939	5,957
LONG-TERM DEBT, LESS CURRENT PORTION	8,477	7,249
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,046	1,747
Pension, postretirement healthcare and other benefit obligations	4,628	4,893
Self-insurance accruals	1,282	1,120
Deferred lease obligations	723	711
Deferred gains, principally related to aircraft transactions	161	181
Other liabilities	236	218
Total other long-term liabilities	$ 9,076	$ 8,870
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of February 29, 2016 and May 31, 2015	$ 32	$ 32
Additional paid-in capital	2,869	2,786
Retained earnings	18,481	16,900
Accumulated other comprehensive (loss) income	(159)	172
Treasury stock, at cost	(6,896)	(4,897)
Total common stockholders' investment	14,327	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 37,819	$ 37,069

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Feb. 29, 2016	May. 31, 2015
CURRENT ASSETS
Allowances for receivables	$ 187	$ 185
Allowances for spare parts, supplies and fuel	$ 212	$ 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		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Consolidated Statements of Income
REVENUES	$ 12,654	$ 11,716	$ 37,386	$ 35,339
OPERATING EXPENSES:
Salaries and employee benefits	4,712	4,335	13,807	12,678
Purchased transportation	2,623	2,165	7,505	6,404
Rentals and landing fees	744	686	2,121	2,009
Depreciation and amortization	663	652	1,964	1,954
Fuel	537	810	1,864	2,982
Maintenance and repairs	504	505	1,581	1,604
Other	2,007	1,525	5,399	4,520
OPERATING EXPENSES	11,790	10,678	34,241	32,151
OPERATING INCOME	864	1,038	3,145	3,188
OTHER INCOME (EXPENSE):
Interest, net	(81)	(58)	(218)	(153)
Other, net	(1)	5	(6)	8
OTHER INCOME (EXPENSE)	(82)	(53)	(224)	(145)
INCOME BEFORE INCOME TAXES	782	985	2,921	3,043
PROVISION FOR INCOME TAXES	275	357	1,031	1,099
NET INCOME	$ 507	$ 628	$ 1,890	$ 1,944
EARNINGS PER COMMON SHARE:
Basic	$ 1.86	$ 2.21	$ 6.79	$ 6.85
Diluted	1.84	2.18	6.71	6.75
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.25	$ 0.20	$ 1	$ 0.80

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Consolidated Statement of Other Comprehensive Income
Net income	$ 507	$ 628	$ 1,890	$ 1,944
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $11, $18, $28, and $41	(99)	(152)	(270)	(305)
Amortization of prior service credit, net of tax of $12, $10, $30, and $31	(19)	(18)	(61)	(52)
Other comprehensive loss	(118)	(170)	(331)	(357)
COMPREHENSIVE INCOME	$ 389	$ 458	$ 1,559	$ 1,587

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Other Comprehensive Income, Tax Amounts
Foreign currency translation adjustments, tax	$ 11	$ 18	$ 28	$ 41
Amortization of prior service credit, net of tax	$ 12	$ 10	$ 30	$ 31

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Operating Activities:
Net income	$ 1,890	$ 1,944
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,964	1,954
Provision for uncollectible accounts	90	112
Stock-based compensation	115	106
Deferred income taxes and other noncash items	288	220
Changes in assets and liabilities:
Receivables	(78)	(200)
Other assets	(322)	(38)
Accounts payable and other liabilities	(146)	(599)
Other, net	(5)	(26)
Cash provided by operating activities	3,796	3,473
Investing Activities:
Capital expenditures	(3,562)	(2,969)
Business acquisitions, net of cash acquired		(1,429)
Asset dispositions and other, net	(17)	16
Cash used in investing activities	(3,579)	(4,382)
Financing Activities:
Principal payments on debt	(28)	(1)
Proceeds from debt issuances	1,238	2,491
Proceeds from stock issuances	79	272
Excess tax benefit on the exercise of stock options	9	31
Dividends paid	(210)	(171)
Purchases of treasury stock	(2,133)	(1,016)
Other, net	(16)	(23)
Cash (used in) provided by financing activities	(1,061)	1,583
Effect of exchange rate changes on cash	(78)	(104)
Net (decrease) increase in cash and cash equivalents	(922)	570
Cash and cash equivalents at beginning of period	3,763	2,908
Cash and cash equivalents at end of period	$ 2,841	$ 3,478

General

General	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 , the results of our operations for the three- and nine- month periods ended February 29, 2016 and February 28, 2015 and cash flows for the nine-month periods ended February 29, 2016 and February 28, 2015 . Operating results for the three- and nine- month period s ended February 29, 2016 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 . 9 billion). This combination 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). 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”) , w hich represent a small number of FedEx Express's total employees, are employed under a collectiv e bargaining agreement (“CBA”) that took effect on November 2, 2015 . The CBA 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 $ 29 million for the three-month period ended February 29, 2016 and $ 115 million for the nine-month period ended February 29, 2016 . Our stock-based compensation expense was $ 26 million for t he three-month period ended February 28, 2015 and $ 106 million for the nine-month period ended February 2 8 , 2015 . 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. In the second quarter of 2016 , 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. Adoption of this guidance had no impact on our financial reporting. See the “ Business Acquisitions ” section above for further discussion regarding our recent business acquisitions. On February 25, 2016, the FASB issued the new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expense related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. We are currently evaluating the impact of this new standard on our financial reporting , but recognizing the lease liability and related right-of-use asset will significantly impact our balance sheet . These changes will be effective for our fiscal year beginning June 1, 20 19 (fiscal 2020) , with a modified retrospective adoption method to the beginning of 2018. On November 20, 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 we plan to e arly adopt on a retrospective basis in the fourth quarter of 2016. We believe that no other new accounting guidance was adopted or issued during the nine months of 2016 that is relevant to the readers of our financial statements. TREASURY SHARES. In January 2016, the stock repurchase authorization announced in September 2014 for 15 million shares was completed. On January 26, 2016, our Board of Directors approved a new share repurchase program of up to 25 million shares. Shares under the new repurchase program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock and general market conditions. No time limit was set for the completion of the program, and the program may be suspended or discontinued at any time. During the third quarter of 2016, we repurchased 7 . 3 million shares of FedEx common stock at an average price of $ 140.42 per share for a total of $ 1 . 0 b illion. As of February 29, 2016 , 22 . 8 million shares remained under the share repurchase authorization. DIVIDENDS DECLARED PER COMMON SHARE. On February 19 , 201 6 , our Board of Directors declared a quarterly dividend of $0.2 5 per share of common stock. The dividend will be paid on April 1, 201 6 to stockholders of record as of the close of business on March 14 , 201 6 . 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)	9 Months Ended
	Feb. 29, 2016
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 unaudited condensed consolidated financial statements for the periods ended February 29 , 2016 and February 28, 2015 (in millions ; amounts in parentheses indicate debits to AOCI ): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Foreign currency translation gain (loss): Balance at beginning of period $ (424) $ (72) $ (253) $ 81 Translation adjustments (99) (152) (270) (305) Balance at end of period (523) (224) (523) (224) Retirement plans adjustments: Balance at beginning of period 383 391 425 425 Reclassifications from AOCI (19) (18) (61) (52) Balance at end of period 364 373 364 373 Accumulated other comprehensive (loss) income at end of period $ (159) $ 149 $ (159) $ 149 The following table presents details of the reclassifications from AOCI for the periods ended February 29 , 2016 and February 28, 2015 (in millions ; amounts in parentheses indicate debits to earnings ): Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Nine Months Ended 2016 2015 2016 2015 Amortization of retirement plans prior service credits, before tax $ 31 $ 28 $ 91 $ 83 Salaries and employee benefits Income tax benefit (12) (10) (30) (31) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 18 $ 61 $ 52 Net income

Financing Arrangements

Financing Arrangements	9 Months Ended
	Feb. 29, 2016
Financing Arrangements [Abstract]
Financing Arrangements	( 3 ) Financing Arrangements W e have a shelf registration statement filed with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock . On October 23, 2015 , 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 . 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 (“ adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four quarters basis. The rat io of our debt to adjusted EBITDA was 1.2 to 1.0 at February 29, 2016 . We believe this covenant is the only significant restrictive covenant in our revolving credit agreement. Our revolving credit agreement contains other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants of our revolving credit agreement and do not expect the covenants to affect our operations, including our liquidity or expected funding needs . As of February 29 , 201 6 , no commercial paper was outstanding . However, we had a total of $ 318 million in letters of credit outstanding at February 29, 2016, 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 February 29, 2016 and $7.2 billion at May 31, 2015 , compared with estimated fair value s of $ 8.5 billion at February 29, 2016 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	9 Months Ended
	Feb. 29, 2016
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 February 29 , 2016 and February 28, 2015 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 506 $ 626 $ 1,888 $ 1,941 Weighted-average common shares 272 283 278 284 Basic earnings per common share $ 1.86 $ 2.21 $ 6.79 $ 6.85 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 506 $ 626 $ 1,888 $ 1,941 Weighted-average common shares 272 283 278 284 Dilutive effect of share-based awards 3 4 3 4 Weighted-average diluted shares 275 287 281 288 Diluted earnings per common share $ 1.84 $ 2.18 $ 6.71 $ 6.75 Anti-dilutive options excluded from diluted earnings per common share 4.8 2.0 4.0 2.1 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans

Retirement Plans	9 Months Ended
	Feb. 29, 2016
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 February 29 , 2016 and February 28, 2015 were as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Defined benefit pension plans $ 53 $ (10) $ 160 $ (27) Defined contribution plans 104 96 304 284 Postretirement healthcare plans 20 21 61 61 $ 177 $ 107 $ 525 $ 318 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 29 , 2016 and February 28, 2015 includ ed the following components (in millions): Three Months Ended Nine Months Ended Pension Plans 2016 2015 2016 2015 Service cost $ 166 $ 165 $ 497 $ 493 Interest cost 295 274 885 824 Expected return on plan assets (377) (420) (1,131) (1,260) Amortization of prior service credit and other (31) (29) (91) (84) $ 53 $ (10) $ 160 $ (27) Three Months Ended Nine Months Ended Postretirement Healthcare Plans 2016 2015 2016 2015 Service cost $ 10 $ 10 $ 30 $ 30 Interest cost 10 11 31 31 $ 20 $ 21 $ 61 $ 61 Contributions to our tax qualified U.S. domestic pension plans (“U.S. Pension Plans”) for the nine -month periods ended February 29 , 2016 and February 28, 2015 were as follows (in millions) : 2016 2015 Required $ 8 $ 380 Voluntary 487 115 $ 495 $ 495 In March 201 6 , 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	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016 and February 28, 2015 (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues FedEx Express segment $ 6,557 $ 6,656 $ 19,736 $ 20,542 FedEx Ground segment 4,408 3,393 12,288 9,416 FedEx Freight segment 1,447 1,428 4,595 4,622 FedEx Services segment 384 370 1,177 1,138 Eliminations and other (142) (131) (410) (379) $ 12,654 $ 11,716 $ 37,386 $ 35,339 Operating Income FedEx Express segment $ 595 $ 393 $ 1,762 $ 1,262 FedEx Ground segment 557 559 1,620 1,569 FedEx Freight segment 56 67 289 347 Eliminations, corporate and other (344) 19 (526) 10 $ 864 $ 1,038 $ 3,145 $ 3,188

Commitments

Commitments	9 Months Ended
	Feb. 29, 2016
Commitments [Abstract]
Commitments	( 7 ) Commitments As of February 29, 2016 , 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) $ 94 $ 151 $ 245 2017 1,283 291 1,574 2018 1,748 173 1,921 2019 1,569 78 1,647 2020 1,633 26 1,659 Thereafter 5,779 102 5,881 Total $ 12,106 $ 821 $ 12,927 (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 February 29, 2016 , our obligation to purchase five 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 ailway L abor A ct of 1926, as amended . Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. We had $ 363 million in deposits and progress payments as of February 29, 2016 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 February 29, 2016 with the year of expected delivery: B767F B777F Total 2016 (remainder) 1 - 1 2017 12 - 12 2018 16 2 18 2019 13 2 15 2020 12 3 15 Thereafter 26 9 35 Total 80 16 96 A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at February 29, 2016 is as follows (in millions): Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2016 (remainder) $ 84 $ 691 $ 775 2017 403 1,980 2,383 2018 332 1,583 1,915 2019 274 1,396 1,670 2020 190 1,231 1,421 Thereafter 360 7,711 8,071 Total $ 1,643 $ 14,592 $ 16,235 Future minimum lease payments under capital leases were immaterial at February 29, 2016 . While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations.

Contingencies

Contingencies	9 Months Ended
	Feb. 29, 2016
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. During the third quarter of 2016, we reached agreements in principle to settle all of the 19 cases on appeal in the multidistrict independent contractor litigation . All of these settlements require court approval. We recognized a liability for the expected loss (net of recognized insurance recovery) related to these cases and certain other pending independent-contractor-related proceedings of $204 million. The 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. On January 13, 2016, the court preliminarily approved the settlement of the Florida case and set a fairness hearing for July 15, 2016. On January 29, 2016, the parties filed their motion for preliminary approval of the settlement in the Arkansas case. 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 reached an agreement to settle the matter for $228 million, and in the fourth quarter of 2015 we increased the accrual to that amount. The court has scheduled a final approval hearing regarding the settlement for April 7, 2016. The two cases in Oregon were consolidated with a non- multidistrict litigation 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. 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, 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. We believe that FedEx Ground's owner-operators are properly classified as independent contractors and that FedEx Ground is not an employer of the drivers of the company's independent contractors. City and State of New York Cigarette Suit. The City of New York (“City”) and the State of New York (“State”) filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground's alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York's Public Health Law, as well as common law nuisance claims. The first lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, none of which continues to ship in our network . The second lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers. In March 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. In July 2015, FedEx Ground filed a motion to dismiss in the second case and the court has not issued its ruling on this motion. The likelihood of loss is reasonably possible, but the amount of loss cannot be estimated at this stage of the litigation and we expect the amount of any loss to be immaterial. 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 report in early July. I n 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. FedEx Express France was fined €17 million. We did not appeal the FCA decision. In the third quarter of 2016, we increased the accrual to that amount ($19 million). We plan to pursue all available remedies against the sellers of TATEX to recover our losses in this matter. The U.S. Customs and 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 merchandising processing fees. On January 4, 2016, FedEx Trade Networks submitted an offer of compromise to the CBP to resolve the company's potential liability from December 24, 2008 through January 4, 2016. On February 19, 2016, CBP informed FedEx Trade Networks that it accepted the offer of compromise, and we recognized a liability (net of recognized insurance recovery) in the amount of $69 million. 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	9 Months Ended
	Feb. 29, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	( 9 ) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the nine-month periods ended February 29 , 2016 and February 28, 2015 was as follows (in millions): 2016 2015 Cash payments for: Interest (net of capitalized interest) $ 284 $ 196 Income taxes $ 919 $ 859 Income tax refunds received (3) (7) Cash tax payments, net $ 916 $ 852

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	9 Months Ended
	Feb. 29, 2016
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 with respect to certain indebtedness previously issued under registration statements filed by FedEx Express with the SEC. 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) February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,498 $ 331 $ 1,044 $ (32) $ 2,841 Receivables, less allowances 20 4,415 1,246 (47) 5,634 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 298 730 126 - 1,154 Deferred income taxes - 571 37 - 608 Total current assets 1,816 6,047 2,453 (79) 10,237 PROPERTY AND EQUIPMENT, AT COST 29 43,938 2,065 - 46,032 Less accumulated depreciation and amortization 24 22,334 1,122 - 23,480 Net property and equipment 5 21,604 943 - 22,552 INTERCOMPANY RECEIVABLE - 1,646 1,130 (2,776) - GOODWILL - 1,571 2,193 - 3,764 INVESTMENT IN SUBSIDIARIES 24,828 3,052 - (27,880) - OTHER ASSETS 2,797 802 384 (2,717) 1,266 $ 29,446 $ 34,722 $ 7,103 $ (33,452) $ 37,819 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 4 $ 7 $ - $ 11 Accrued salaries and employee benefits 58 1,201 192 - 1,451 Accounts payable 70 1,369 664 (79) 2,024 Accrued expenses 805 1,378 270 - 2,453 Total current liabilities 933 3,952 1,133 (79) 5,939 LONG-TERM DEBT, LESS CURRENT PORTION 8,217 248 12 - 8,477 INTERCOMPANY PAYABLE 2,776 - - (2,776) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,583 180 (2,717) 2,046 Other liabilities 3,193 3,577 260 - 7,030 Total other long-term liabilities 3,193 8,160 440 (2,717) 9,076 STOCKHOLDERS' INVESTMENT 14,327 22,362 5,518 (27,880) 14,327 $ 29,446 $ 34,722 $ 7,103 $ (33,452) $ 37,819 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 February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,838 $ 1,892 $ (76) $ 12,654 OPERATING EXPENSES: Salaries and employee benefits 32 4,072 608 - 4,712 Purchased transportation - 2,106 545 (28) 2,623 Rentals and landing fees 1 660 84 (1) 744 Depreciation and amortization - 608 55 - 663 Fuel - 520 17 - 537 Maintenance and repairs - 471 33 - 504 Intercompany charges, net (344) 294 50 - - Other 311 1,344 399 (47) 2,007 - 10,075 1,791 (76) 11,790 OPERATING INCOME - 763 101 - 864 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 507 86 - (593) - Interest, net (90) 6 3 - (81) Intercompany charges, net 95 (105) 10 - - Other, net (5) (1) 5 - (1) INCOME BEFORE INCOME TAXES 507 749 119 (593) 782 Provision for income taxes - 249 26 - 275 NET INCOME $ 507 $ 500 $ 93 $ (593) $ 507 COMPREHENSIVE INCOME $ 488 $ 487 $ 7 $ (593) $ 389 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 28, 2015 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 9,793 $ 2,024 $ (101) $ 11,716 OPERATING EXPENSES: Salaries and employee benefits 25 3,712 598 - 4,335 Purchased transportation - 1,527 695 (57) 2,165 Rentals and landing fees 1 597 89 (1) 686 Depreciation and amortization - 593 59 - 652 Fuel - 790 20 - 810 Maintenance and repairs - 468 37 - 505 Intercompany charges, net (48) (34) 82 - - Other 22 1,231 315 (43) 1,525 - 8,884 1,895 (101) 10,678 OPERATING INCOME - 909 129 - 1,038 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 628 91 - (719) - Interest, net (66) 6 2 - (58) Intercompany charges, net 68 (74) 6 - - Other, net (2) (4) 11 - 5 INCOME BEFORE INCOME TAXES 628 928 148 (719) 985 Provision for income taxes - 274 83 - 357 NET INCOME $ 628 $ 654 $ 65 $ (719) $ 628 COMPREHENSIVE INCOME $ 611 $ 640 $ (74) $ (719) $ 458 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 31,190 $ 6,449 $ (253) $ 37,386 OPERATING EXPENSES: Salaries and employee benefits 92 11,811 1,904 - 13,807 Purchased transportation - 5,481 2,132 (108) 7,505 Rentals and landing fees 4 1,843 278 (4) 2,121 Depreciation and amortization 1 1,792 171 - 1,964 Fuel - 1,808 56 - 1,864 Maintenance and repairs - 1,476 105 - 1,581 Intercompany charges, net (525) 338 187 - - Other 428 3,901 1,211 (141) 5,399 - 28,450 6,044 (253) 34,241 OPERATING INCOME - 2,740 405 - 3,145 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,890 220 - (2,110) - Interest, net (246) 20 8 - (218) Intercompany charges, net 257 (264) 7 - - Other, net (11) (10) 15 - (6) INCOME BEFORE INCOME TAXES 1,890 2,706 435 (2,110) 2,921 Provision for income taxes - 915 116 - 1,031 NET INCOME $ 1,890 $ 1,791 $ 319 $ (2,110) $ 1,890 COMPREHENSIVE INCOME $ 1,834 $ 1,758 $ 77 $ (2,110) $ 1,559 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 28, 2015 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 29,488 $ 6,136 $ (285) $ 35,339 OPERATING EXPENSES: Salaries and employee benefits 78 10,902 1,698 - 12,678 Purchased transportation - 4,381 2,170 (147) 6,404 Rentals and landing fees 4 1,746 263 (4) 2,009 Depreciation and amortization 1 1,783 170 - 1,954 Fuel - 2,913 69 - 2,982 Maintenance and repairs - 1,497 107 - 1,604 Intercompany charges, net (191) (82) 273 - - Other 108 3,635 911 (134) 4,520 - 26,775 5,661 (285) 32,151 OPERATING INCOME - 2,713 475 - 3,188 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,944 292 - (2,236) - Interest, net (172) 15 4 - (153) Intercompany charges, net 176 (192) 16 - - Other, net (4) (5) 17 - 8 INCOME BEFORE INCOME TAXES 1,944 2,823 512 (2,236) 3,043 Provision for income taxes - 916 183 - 1,099 NET INCOME $ 1,944 $ 1,907 $ 329 $ (2,236) $ 1,944 COMPREHENSIVE INCOME $ 1,891 $ 1,864 $ 68 $ (2,236) $ 1,587 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (833) $ 4,213 $ 370 $ 46 $ 3,796 INVESTING ACTIVITIES Capital expenditures - (3,434) (128) - (3,562) Asset dispositions and other (55) 26 12 - (17) CASH USED IN INVESTING ACTIVITIES (55) (3,408) (116) - (3,579) FINANCING ACTIVITIES Net transfers from (to) Parent 1,036 (1,039) 3 - - Payment on loan between subsidiaries - 109 (109) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (7) (21) - (28) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 79 - - - 79 Excess tax benefit on the exercise of stock options 9 - - - 9 Dividends paid (210) - - - (210) Purchase of treasury stock (2,133) - - - (2,133) Other, net (16) (27) 27 - (16) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 3 (944) (120) - (1,061) Effect of exchange rate changes on cash - (17) (61) - (78) Net (decrease) increase in cash and cash equivalents (885) (156) 73 46 (922) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 1,498 $ 331 $ 1,044 $ (32) $ 2,841 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (460) $ 3,443 $ 382 $ 108 $ 3,473 INVESTING ACTIVITIES Capital expenditures (1) (2,849) (119) - (2,969) Business acquisitions, net of cash acquired (1,429) - - - (1,429) Asset dispositions and other - 35 (19) - 16 CASH USED IN INVESTING ACTIVITIES (1,430) (2,814) (138) - (4,382) FINANCING ACTIVITIES Net transfers from (to) Parent 692 (681) (11) - - Payment on loan between subsidiaries - 202 (202) - - Intercompany dividends - 38 (38) - - Principal payments on debt - (1) - - (1) Proceeds from debt issuance 2,491 - - - 2,491 Proceeds from stock issuances 272 - - - 272 Excess tax benefit on the exercise of stock options 31 - - - 31 Dividends paid (171) - - - (171) Purchase of treasury stock (1,016) - - - (1,016) Other, net (23) (105) 105 (23) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,276 (547) (146) - 1,583 Effect of exchange rate changes on cash - (31) (73) - (104) Net increase in cash and cash equivalents 386 51 25 108 570 Cash and cash equivalents at beginning of period 1,756 441 861 (150) 2,908 Cash and cash equivalents at end of period $ 2,142 $ 492 $ 886 $ (42) $ 3,478

General (Policies)

General (Policies)	9 Months Ended
	Feb. 29, 2016
General (Policies) [Abstract]
Summary of Significant Accounting Policies	(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 February 29, 2016 , the results of our operations for the three- and nine- month periods ended February 29, 2016 and February 28, 2015 and cash flows for the nine-month periods ended February 29, 2016 and February 28, 2015 . Operating results for the three- and nine- month period s ended February 29, 2016 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)	9 Months Ended
	Feb. 29, 2016
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)	9 Months Ended
	Feb. 29, 2016
Accumulated Other Comprehensive Income (Loss) (Tables) [Abstract]
Schedule Of Accumulated Other Comprehensive Income (Loss)	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Foreign currency translation gain (loss): Balance at beginning of period $ (424) $ (72) $ (253) $ 81 Translation adjustments (99) (152) (270) (305) Balance at end of period (523) (224) (523) (224) Retirement plans adjustments: Balance at beginning of period 383 391 425 425 Reclassifications from AOCI (19) (18) (61) (52) Balance at end of period 364 373 364 373 Accumulated other comprehensive (loss) income at end of period $ (159) $ 149 $ (159) $ 149
Reclassification Out Of Accumulated Other Comprehensive Income (Loss)	Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Nine Months Ended 2016 2015 2016 2015 Amortization of retirement plans prior service credits, before tax $ 31 $ 28 $ 91 $ 83 Salaries and employee benefits Income tax benefit (12) (10) (30) (31) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 18 $ 61 $ 52 Net income

Computation of Earnings Per S21

Computation of Earnings Per Share (Tables)	9 Months Ended
	Feb. 29, 2016
Computation Of Earnings Per Share (Tables) [Abstract]
Schedule of basic and diluted earnings per common share	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 506 $ 626 $ 1,888 $ 1,941 Weighted-average common shares 272 283 278 284 Basic earnings per common share $ 1.86 $ 2.21 $ 6.79 $ 6.85 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 506 $ 626 $ 1,888 $ 1,941 Weighted-average common shares 272 283 278 284 Dilutive effect of share-based awards 3 4 3 4 Weighted-average diluted shares 275 287 281 288 Diluted earnings per common share $ 1.84 $ 2.18 $ 6.71 $ 6.75 Anti-dilutive options excluded from diluted earnings per common share 4.8 2.0 4.0 2.1 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans (Tables)

Retirement Plans (Tables)	9 Months Ended
	Feb. 29, 2016
Retirement Plan (Tables) [Abstract]
Schedule of Retirement Plan Costs	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Defined benefit pension plans $ 53 $ (10) $ 160 $ (27) Defined contribution plans 104 96 304 284 Postretirement healthcare plans 20 21 61 61 $ 177 $ 107 $ 525 $ 318
Schedule of Net Periodic Benefit Cost	Three Months Ended Nine Months Ended Pension Plans 2016 2015 2016 2015 Service cost $ 166 $ 165 $ 497 $ 493 Interest cost 295 274 885 824 Expected return on plan assets (377) (420) (1,131) (1,260) Amortization of prior service credit and other (31) (29) (91) (84) $ 53 $ (10) $ 160 $ (27) Three Months Ended Nine Months Ended Postretirement Healthcare Plans 2016 2015 2016 2015 Service cost $ 10 $ 10 $ 30 $ 30 Interest cost 10 11 31 31 $ 20 $ 21 $ 61 $ 61
Schedule of Pension Plans Contributions	2016 2015 Required $ 8 $ 380 Voluntary 487 115 $ 495 $ 495

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Feb. 29, 2016
Business Segment Information (Tables) [Abstract]
Schedule of Segment Information	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues FedEx Express segment $ 6,557 $ 6,656 $ 19,736 $ 20,542 FedEx Ground segment 4,408 3,393 12,288 9,416 FedEx Freight segment 1,447 1,428 4,595 4,622 FedEx Services segment 384 370 1,177 1,138 Eliminations and other (142) (131) (410) (379) $ 12,654 $ 11,716 $ 37,386 $ 35,339 Operating Income FedEx Express segment $ 595 $ 393 $ 1,762 $ 1,262 FedEx Ground segment 557 559 1,620 1,569 FedEx Freight segment 56 67 289 347 Eliminations, corporate and other (344) 19 (526) 10 $ 864 $ 1,038 $ 3,145 $ 3,188

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Feb. 29, 2016
Commitments (Tables) [Abstract]
Schedule of Purchase Commitments	Aircraft and Aircraft-Related Other (1) Total 2016 (remainder) $ 94 $ 151 $ 245 2017 1,283 291 1,574 2018 1,748 173 1,921 2019 1,569 78 1,647 2020 1,633 26 1,659 Thereafter 5,779 102 5,881 Total $ 12,106 $ 821 $ 12,927 (1) Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments	B767F B777F Total 2016 (remainder) 1 - 1 2017 12 - 12 2018 16 2 18 2019 13 2 15 2020 12 3 15 Thereafter 26 9 35 Total 80 16 96
Schedule of Future Minimum Lease Payments, Operating Leases	Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2016 (remainder) $ 84 $ 691 $ 775 2017 403 1,980 2,383 2018 332 1,583 1,915 2019 274 1,396 1,670 2020 190 1,231 1,421 Thereafter 360 7,711 8,071 Total $ 1,643 $ 14,592 $ 16,235

Supplemental Cash Flow Inform25

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Feb. 29, 2016
Supplemental Cash Flow (Tables) [Abstract]
Supplemental Cash Flow Table	2016 2015 Cash payments for: Interest (net of capitalized interest) $ 284 $ 196 Income taxes $ 919 $ 859 Income tax refunds received (3) (7) Cash tax payments, net $ 916 $ 852

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Feb. 29, 2016
Condensed Consolidating Financial Statements (Tables) [Abstract]
Condensed Consolidating Balance Sheets	CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,498 $ 331 $ 1,044 $ (32) $ 2,841 Receivables, less allowances 20 4,415 1,246 (47) 5,634 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 298 730 126 - 1,154 Deferred income taxes - 571 37 - 608 Total current assets 1,816 6,047 2,453 (79) 10,237 PROPERTY AND EQUIPMENT, AT COST 29 43,938 2,065 - 46,032 Less accumulated depreciation and amortization 24 22,334 1,122 - 23,480 Net property and equipment 5 21,604 943 - 22,552 INTERCOMPANY RECEIVABLE - 1,646 1,130 (2,776) - GOODWILL - 1,571 2,193 - 3,764 INVESTMENT IN SUBSIDIARIES 24,828 3,052 - (27,880) - OTHER ASSETS 2,797 802 384 (2,717) 1,266 $ 29,446 $ 34,722 $ 7,103 $ (33,452) $ 37,819 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 4 $ 7 $ - $ 11 Accrued salaries and employee benefits 58 1,201 192 - 1,451 Accounts payable 70 1,369 664 (79) 2,024 Accrued expenses 805 1,378 270 - 2,453 Total current liabilities 933 3,952 1,133 (79) 5,939 LONG-TERM DEBT, LESS CURRENT PORTION 8,217 248 12 - 8,477 INTERCOMPANY PAYABLE 2,776 - - (2,776) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,583 180 (2,717) 2,046 Other liabilities 3,193 3,577 260 - 7,030 Total other long-term liabilities 3,193 8,160 440 (2,717) 9,076 STOCKHOLDERS' INVESTMENT 14,327 22,362 5,518 (27,880) 14,327 $ 29,446 $ 34,722 $ 7,103 $ (33,452) $ 37,819 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 February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,838 $ 1,892 $ (76) $ 12,654 OPERATING EXPENSES: Salaries and employee benefits 32 4,072 608 - 4,712 Purchased transportation - 2,106 545 (28) 2,623 Rentals and landing fees 1 660 84 (1) 744 Depreciation and amortization - 608 55 - 663 Fuel - 520 17 - 537 Maintenance and repairs - 471 33 - 504 Intercompany charges, net (344) 294 50 - - Other 311 1,344 399 (47) 2,007 - 10,075 1,791 (76) 11,790 OPERATING INCOME - 763 101 - 864 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 507 86 - (593) - Interest, net (90) 6 3 - (81) Intercompany charges, net 95 (105) 10 - - Other, net (5) (1) 5 - (1) INCOME BEFORE INCOME TAXES 507 749 119 (593) 782 Provision for income taxes - 249 26 - 275 NET INCOME $ 507 $ 500 $ 93 $ (593) $ 507 COMPREHENSIVE INCOME $ 488 $ 487 $ 7 $ (593) $ 389 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 28, 2015 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 9,793 $ 2,024 $ (101) $ 11,716 OPERATING EXPENSES: Salaries and employee benefits 25 3,712 598 - 4,335 Purchased transportation - 1,527 695 (57) 2,165 Rentals and landing fees 1 597 89 (1) 686 Depreciation and amortization - 593 59 - 652 Fuel - 790 20 - 810 Maintenance and repairs - 468 37 - 505 Intercompany charges, net (48) (34) 82 - - Other 22 1,231 315 (43) 1,525 - 8,884 1,895 (101) 10,678 OPERATING INCOME - 909 129 - 1,038 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 628 91 - (719) - Interest, net (66) 6 2 - (58) Intercompany charges, net 68 (74) 6 - - Other, net (2) (4) 11 - 5 INCOME BEFORE INCOME TAXES 628 928 148 (719) 985 Provision for income taxes - 274 83 - 357 NET INCOME $ 628 $ 654 $ 65 $ (719) $ 628 COMPREHENSIVE INCOME $ 611 $ 640 $ (74) $ (719) $ 458 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 31,190 $ 6,449 $ (253) $ 37,386 OPERATING EXPENSES: Salaries and employee benefits 92 11,811 1,904 - 13,807 Purchased transportation - 5,481 2,132 (108) 7,505 Rentals and landing fees 4 1,843 278 (4) 2,121 Depreciation and amortization 1 1,792 171 - 1,964 Fuel - 1,808 56 - 1,864 Maintenance and repairs - 1,476 105 - 1,581 Intercompany charges, net (525) 338 187 - - Other 428 3,901 1,211 (141) 5,399 - 28,450 6,044 (253) 34,241 OPERATING INCOME - 2,740 405 - 3,145 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,890 220 - (2,110) - Interest, net (246) 20 8 - (218) Intercompany charges, net 257 (264) 7 - - Other, net (11) (10) 15 - (6) INCOME BEFORE INCOME TAXES 1,890 2,706 435 (2,110) 2,921 Provision for income taxes - 915 116 - 1,031 NET INCOME $ 1,890 $ 1,791 $ 319 $ (2,110) $ 1,890 COMPREHENSIVE INCOME $ 1,834 $ 1,758 $ 77 $ (2,110) $ 1,559 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 28, 2015 (As Adjusted) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 29,488 $ 6,136 $ (285) $ 35,339 OPERATING EXPENSES: Salaries and employee benefits 78 10,902 1,698 - 12,678 Purchased transportation - 4,381 2,170 (147) 6,404 Rentals and landing fees 4 1,746 263 (4) 2,009 Depreciation and amortization 1 1,783 170 - 1,954 Fuel - 2,913 69 - 2,982 Maintenance and repairs - 1,497 107 - 1,604 Intercompany charges, net (191) (82) 273 - - Other 108 3,635 911 (134) 4,520 - 26,775 5,661 (285) 32,151 OPERATING INCOME - 2,713 475 - 3,188 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,944 292 - (2,236) - Interest, net (172) 15 4 - (153) Intercompany charges, net 176 (192) 16 - - Other, net (4) (5) 17 - 8 INCOME BEFORE INCOME TAXES 1,944 2,823 512 (2,236) 3,043 Provision for income taxes - 916 183 - 1,099 NET INCOME $ 1,944 $ 1,907 $ 329 $ (2,236) $ 1,944 COMPREHENSIVE INCOME $ 1,891 $ 1,864 $ 68 $ (2,236) $ 1,587
Condensed Consolidating Statements of Cash Flows	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 29, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (833) $ 4,213 $ 370 $ 46 $ 3,796 INVESTING ACTIVITIES Capital expenditures - (3,434) (128) - (3,562) Asset dispositions and other (55) 26 12 - (17) CASH USED IN INVESTING ACTIVITIES (55) (3,408) (116) - (3,579) FINANCING ACTIVITIES Net transfers from (to) Parent 1,036 (1,039) 3 - - Payment on loan between subsidiaries - 109 (109) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (7) (21) - (28) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 79 - - - 79 Excess tax benefit on the exercise of stock options 9 - - - 9 Dividends paid (210) - - - (210) Purchase of treasury stock (2,133) - - - (2,133) Other, net (16) (27) 27 - (16) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 3 (944) (120) - (1,061) Effect of exchange rate changes on cash - (17) (61) - (78) Net (decrease) increase in cash and cash equivalents (885) (156) 73 46 (922) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 1,498 $ 331 $ 1,044 $ (32) $ 2,841 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (460) $ 3,443 $ 382 $ 108 $ 3,473 INVESTING ACTIVITIES Capital expenditures (1) (2,849) (119) - (2,969) Business acquisitions, net of cash acquired (1,429) - - - (1,429) Asset dispositions and other - 35 (19) - 16 CASH USED IN INVESTING ACTIVITIES (1,430) (2,814) (138) - (4,382) FINANCING ACTIVITIES Net transfers from (to) Parent 692 (681) (11) - - Payment on loan between subsidiaries - 202 (202) - - Intercompany dividends - 38 (38) - - Principal payments on debt - (1) - - (1) Proceeds from debt issuance 2,491 - - - 2,491 Proceeds from stock issuances 272 - - - 272 Excess tax benefit on the exercise of stock options 31 - - - 31 Dividends paid (171) - - - (171) Purchase of treasury stock (1,016) - - - (1,016) Other, net (23) (105) 105 (23) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,276 (547) (146) - 1,583 Effect of exchange rate changes on cash - (31) (73) - (104) Net increase in cash and cash equivalents 386 51 25 108 570 Cash and cash equivalents at beginning of period 1,756 441 861 (150) 2,908 Cash and cash equivalents at end of period $ 2,142 $ 492 $ 886 $ (42) $ 3,478

General (Details 1)

General (Details 1) € in Millions, $ in Millions	Feb. 29, 2016USD ($)	Feb. 29, 2016EUR (€)	May. 31, 2015USD ($)
Business Acquisition [Line Items]
Goodwill	$ 3,764		$ 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	$ 4,900	€ 4,400

General (Details 2)

General (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Stock Based Compensation Details [Abstract]
Stock-based compensation	$ 29	$ 26	$ 115	$ 106

General (Details 3)

General (Details 3) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Feb. 29, 2016	Feb. 29, 2016	Feb. 28, 2015
Treasury Shares [Abstract]
Treasury Stock Acquired, Average Cost Per Share	$ 140.42
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased	25,000,000	25,000,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	22,800,000	22,800,000
Stock Repurchase Authorization Shares Purchased Under Previously Authorized Share Repurchase Program		15,000,000
Number of Shares Repurchased	7,300,000
Payments for Repurchase of Common Stock	$ 1,000	$ 2,133	$ 1,016

General (Details 4)

General (Details 4)	3 Months Ended
	Feb. 29, 2016$ / shares
Dividends [Abstract]
Dividends Payable, Date Declared	Feb. 19, 2016
Dividends Payable Amount Per Share	$ 0.25
Dividends Payable, Date To Be Paid	Apr. 1, 2016
Dividends Payable, Date Of Record	Mar. 14, 2016

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Foreign currency translation gain (loss): Beginning balance	$ (424)	$ (72)	$ (253)	$ 81
Translation adjustment	(99)	(152)	(270)	(305)
Foreign currency translation gain (loss): Ending balance	(523)	(224)	(523)	(224)
Retirement plans adjustments: Beginning Balance	383	391	425	425
Reclassification from AOCI	(19)	(18)	(61)	(52)
Retirement plans adjustments: Ending Balance	364	373	364	373
Accumulated other comprehensive (loss) income at end of period	(159)	149	(159)	149	$ 172
Amortization of retirement plans prior service credits, before tax	(31)	(28)	(91)	(83)
Income tax benefit	12	10	30	31
AOCI reclassifications, net of tax	$ (19)	$ (18)	$ (61)	$ (52)

Financing Arrangements (Details

Financing Arrangements (Details 1) - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	May. 31, 2015
Financing Arrangements (Details) [Line Items]
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
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

Financing Arrangements (Detai33

Financing Arrangements (Details 2) $ in Millions	9 Months Ended
	Feb. 29, 2016USD ($)
Line Of Credit Facility [Line Items]
Line Of Credit Facility Maximum Borrowing Capacity	$ 1,750
Line of Credit Facility, Expiration Date	Nov. 13, 2020
Financial Covenant Terms Ratio	350.00%
Financial Covenant Compliance Ratio	120.00%
Letters Of Credit Outstanding	$ 318
Letter of Credit [Member]
Line Of Credit Facility [Line Items]
Line Of Credit Facility Maximum Borrowing Capacity	500
LineOfCreditFacilityRemainingBorrowingCapacity	$ 182

Computation of Earnings Per S34

Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Basic earnings per common share:
Net earnings allocable to common shares	[1]	$ 506	$ 626	$ 1,888	$ 1,941
Weighted-average common shares		272	283	278	284
Basic earnings per common share		$ 1.86	$ 2.21	$ 6.79	$ 6.85
Diluted earnings per common share:
Net earnings allocable to common shares	[1]	$ 506	$ 626	$ 1,888	$ 1,941
Weighted-average common shares		272	283	278	284
Dilutive effect of share-based awards		3	4	3	4
Weighted-average diluted shares		275	287	281	288
Diluted earnings per common share		$ 1.84	$ 2.18	$ 6.71	$ 6.75
Anti-dilutive options excluded from diluted earnings per common share		4.8	2	4	2.1
[1]	Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans (Details 1)

Retirement Plans (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Pension and Other Postretirement Benefit Expense [Abstract]
Defined benefit pension plans	$ 53	$ (10)	$ 160	$ (27)
Defined contribution plans	104	96	304	284
Postretirement healthcare plans	20	21	61	61
Retirement plans costs	$ 177	$ 107	$ 525	$ 318

Retirement Plans (Details 2)

Retirement Plans (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Pension Plans
Net Periodic Benefit Cost
Service cost	$ 166	$ 165	$ 497	$ 493
Interest cost	295	274	885	824
Expected return on plan assets	(377)	(420)	(1,131)	(1,260)
Amortization of prior service credit and other	(31)	(29)	(91)	(84)
Total net periodic benefit cost	53	(10)	160	(27)
Postretirement Healthcare Plans
Net Periodic Benefit Cost
Service cost	10	10	30	30
Interest cost	10	11	31	31
Total net periodic benefit cost	$ 20	$ 21	$ 61	$ 61

Retirement Plans (Details 3)

Retirement Plans (Details 3) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Mar. 17, 2016	Feb. 29, 2016	Feb. 28, 2015
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		$ 495	$ 495
Required U.S. Pension Plan Contribution [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		8	380
Voluntary U.S. Pension Plan Contribution [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		$ 487	$ 115
Pension Plan Contribution Subsequent Event [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer	$ 165

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Segment Reporting Information [Line Items]
Revenues	$ 12,654	$ 11,716	$ 37,386	$ 35,339
Operating Income	864	1,038	3,145	3,188
FedEx Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	6,557	6,656	19,736	20,542
Operating Income	595	393	1,762	1,262
FedEx Ground Segment [Member]
Segment Reporting Information [Line Items]
Revenues	4,408	3,393	12,288	9,416
Operating Income	557	559	1,620	1,569
FedEx Freight Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,447	1,428	4,595	4,622
Operating Income	56	67	289	347
FedEx Services Segment [Member]
Segment Reporting Information [Line Items]
Revenues	384	370	1,177	1,138
Eliminations, corporate and other
Segment Reporting Information [Line Items]
Revenues	(142)	(131)	(410)	(379)
Operating Income	$ (344)	$ 19	$ (526)	$ 10

Commitments (Details 1)

Commitments (Details 1) $ in Millions	Feb. 29, 2016USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
2016 (remainder)	$ 245
2,017	1,574
2,018	1,921
2,019	1,647
2,020	1,659
Thereafter	5,881
Total	12,927
Aircraft And Related Equipment Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2016 (remainder)	94
2,017	1,283
2,018	1,748
2,019	1,569
2,020	1,633
Thereafter	5,779
Total	12,106
Other Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2016 (remainder)	151	[1]
2,017	291	[1]
2,018	173	[1]
2,019	78	[1]
2,020	26	[1]
Thereafter	102	[1]
Total	$ 821	[1]
[1]	Primarily equipment and advertising contracts.

Commitments (Details 2)

Commitments (Details 2)	9 Months Ended
	Feb. 29, 2016
Schedule of Aircraft Commitments [Line Items]
2016 (remainder)	1
2,017	12
2,018	18
2,019	15
2,020	15
Thereafter	35
Total	96
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)	1
2,017	12
2,018	16
2,019	13
2,020	12
Thereafter	26
Total	80

Commitments (Details 3)

Commitments (Details 3) $ in Millions	Feb. 29, 2016USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	$ 775
2,017	2,383
2,018	1,915
2,019	1,670
2,020	1,421
Thereafter	8,071
Total	16,235
Aircraft and Related Equipment [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	84
2,017	403
2,018	332
2,019	274
2,020	190
Thereafter	360
Total	1,643
Facilities and Other [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2016 (remainder)	691
2,017	1,980
2,018	1,583
2,019	1,396
2,020	1,231
Thereafter	7,711
Total	$ 14,592

Commitments (Details 4)

Commitments (Details 4) $ in Millions	9 Months Ended
	Feb. 29, 2016USD ($)
Other Aircraft Commitments Disclosure [Abstract]
Boeing 777F Conditional Aircraft Commitments	9
Boeing 767F Conditional Aircraft Commitments	5
Other Commitment Disclosures [Line Items]
Deposit and Progress Payments	$ 363

Contingencies (Details)

Contingencies (Details) € in Millions, $ in Millions	9 Months Ended		12 Months Ended
	Feb. 29, 2016USD ($)	Feb. 29, 2016EUR (€)	May. 31, 2015USD ($)
Independent Contractor California [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount			$ 228
TATEX [Member]
Loss Contingency [Line Items]
Loss Contingency Damages Awarded Value	$ 19	€ 17
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
U.S. CBP [Member]
Loss Contingency [Line Items]
Offer of Compromise (net of insurance recovery)	69
Multidistrict Independent Contractor Litigation [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount	$ 204

Supplemental Cash Flow Inform44

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Supplemental Cash Flow Information [Abstract]
Interest (net of capitalized interest)	$ 284	$ 196
Income taxes	919	859
Income tax refunds received	(3)	(7)
Cash tax payments, net	$ 916	$ 852

Condensed Consolidating Finan45

Condensed Consolidating Financial Statements (Details 1) $ in Millions	Feb. 29, 2016USD ($)
Guarantor Obligations [Abstract]
Debt Guarantee	$ 8,250

Condensed Consolidating Finan46

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015	Feb. 28, 2015	May. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 2,841	$ 3,763	$ 3,478	$ 2,908
Receivables, less allowances	5,634	5,719
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	1,154	853
Deferred income taxes	608	606
Total current assets	10,237	10,941
PROPERTY AND EQUIPMENT, AT COST	46,032	42,864
Less accumulated depreciation and amortization	23,480	21,989
Net property and equipment	22,552	20,875
Goodwill	3,764	3,810
Other assets	1,266	1,443
ASSETS	37,819	37,069
CURRENT LIABILITIES
Current portion of long-term debt	11	19
Accrued salaries and employee benefits	1,451	1,436
Accounts payable	2,024	2,066
Accrued expenses	2,453	2,436
Total current liabilities	5,939	5,957
LONG-TERM DEBT, LESS CURRENT PORTION	8,477	7,249
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,046	1,747
Other liabilities	7,030	7,123
Total other long-term liabilities	9,076	8,870
STOCKHOLDERS' INVESTMENT	14,327	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	37,819	37,069
Parent Company Member
CURRENT ASSETS
Cash and cash equivalents	1,498	2,383	2,142	1,756
Receivables, less allowances	20	3
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	298	41
Total current assets	1,816	2,427
PROPERTY AND EQUIPMENT, AT COST	29	29
Less accumulated depreciation and amortization	24	23
Net property and equipment	5	6
INVESTMENT IN SUBSIDIARIES	24,828	23,173
Other assets	2,797	2,752
ASSETS	29,446	28,358
CURRENT LIABILITIES
Accrued salaries and employee benefits	58	34
Accounts payable	70	5
Accrued expenses	805	604
Total current liabilities	933	643
LONG-TERM DEBT, LESS CURRENT PORTION	8,217	6,978
INTERCOMPANY PAYABLE	2,776	2,249
OTHER LONG-TERM LIABILITIES
Other liabilities	3,193	3,495
Total other long-term liabilities	3,193	3,495
STOCKHOLDERS' INVESTMENT	14,327	14,993
LIABILITIES AND STOCKHOLDERS' INVESTMENT	29,446	28,358
Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	331	487	492	441
Receivables, less allowances	4,415	4,383
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	730	689
Deferred income taxes	571	571
Total current assets	6,047	6,130
PROPERTY AND EQUIPMENT, AT COST	43,938	40,364
Less accumulated depreciation and amortization	22,334	20,685
Net property and equipment	21,604	19,679
INTERCOMPANY RECEIVABLE	1,646	686
Goodwill	1,571	1,552
INVESTMENT IN SUBSIDIARIES	3,052	3,800
Other assets	802	898
ASSETS	34,722	32,745
CURRENT LIABILITIES
Current portion of long-term debt	4	7
Accrued salaries and employee benefits	1,201	1,208
Accounts payable	1,369	1,433
Accrued expenses	1,378	1,557
Total current liabilities	3,952	4,205
LONG-TERM DEBT, LESS CURRENT PORTION	248	248
OTHER LONG-TERM LIABILITIES
Deferred income taxes	4,583	4,206
Other liabilities	3,577	3,367
Total other long-term liabilities	8,160	7,573
STOCKHOLDERS' INVESTMENT	22,362	20,719
LIABILITIES AND STOCKHOLDERS' INVESTMENT	34,722	32,745
Non Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	1,044	971	886	861
Receivables, less allowances	1,246	1,385
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	126	123
Deferred income taxes	37	35
Total current assets	2,453	2,514
PROPERTY AND EQUIPMENT, AT COST	2,065	2,471
Less accumulated depreciation and amortization	1,122	1,281
Net property and equipment	943	1,190
INTERCOMPANY RECEIVABLE	1,130	1,563
Goodwill	2,193	2,258
Other assets	384	477
ASSETS	7,103	8,002
CURRENT LIABILITIES
Current portion of long-term debt	7	12
Accrued salaries and employee benefits	192	194
Accounts payable	664	758
Accrued expenses	270	275
Total current liabilities	1,133	1,239
LONG-TERM DEBT, LESS CURRENT PORTION	12	23
OTHER LONG-TERM LIABILITIES
Deferred income taxes	180	225
Other liabilities	260	261
Total other long-term liabilities	440	486
STOCKHOLDERS' INVESTMENT	5,518	6,254
LIABILITIES AND STOCKHOLDERS' INVESTMENT	7,103	8,002
Consolidation Eliminations Member
CURRENT ASSETS
Cash and cash equivalents	(32)	(78)	$ (42)	$ (150)
Receivables, less allowances	(47)	(52)
Total current assets	(79)	(130)
INTERCOMPANY RECEIVABLE	(2,776)	(2,249)
INVESTMENT IN SUBSIDIARIES	(27,880)	(26,973)
Other assets	(2,717)	(2,684)
ASSETS	(33,452)	(32,036)
CURRENT LIABILITIES
Accounts payable	(79)	(130)
Total current liabilities	(79)	(130)
INTERCOMPANY PAYABLE	(2,776)	(2,249)
OTHER LONG-TERM LIABILITIES
Deferred income taxes	(2,717)	(2,684)
Total other long-term liabilities	(2,717)	(2,684)
STOCKHOLDERS' INVESTMENT	(27,880)	(26,973)
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ (33,452)	$ (32,036)

Condensed Consolidating Finan47

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Financial Statements Captions [Line Items]
REVENUES	$ 12,654	$ 11,716	$ 37,386	$ 35,339
OPERATING EXPENSES:
Salaries and employee benefits	4,712	4,335	13,807	12,678
Purchased transportation	2,623	2,165	7,505	6,404
Rentals and landing fees	744	686	2,121	2,009
Depreciation and amortization	663	652	1,964	1,954
Fuel	537	810	1,864	2,982
Maintenance and repairs	504	505	1,581	1,604
Other	2,007	1,525	5,399	4,520
OPERATING EXPENSES	11,790	10,678	34,241	32,151
OPERATING INCOME	864	1,038	3,145	3,188
OTHER INCOME (EXPENSE):
Interest, net	(81)	(58)	(218)	(153)
Other, net	(1)	5	(6)	8
INCOME BEFORE INCOME TAXES	782	985	2,921	3,043
PROVISION FOR INCOME TAXES	275	357	1,031	1,099
NET INCOME	507	628	1,890	1,944
COMPREHENSIVE INCOME	389	458	1,559	1,587
Parent Company Member
OPERATING EXPENSES:
Salaries and employee benefits	32	25	92	78
Rentals and landing fees	1	1	4	4
Depreciation and amortization			1	1
Intercompany charges, net	(344)	(48)	(525)	(191)
Other	311	22	428	108
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	507	628	1,890	1,944
Interest, net	(90)	(66)	(246)	(172)
Intercompany charges, net	95	68	257	176
Other, net	(5)	(2)	(11)	(4)
INCOME BEFORE INCOME TAXES	507	628	1,890	1,944
NET INCOME	507	628	1,890	1,944
COMPREHENSIVE INCOME	488	611	1,834	1,891
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	10,838	9,793	31,190	29,488
OPERATING EXPENSES:
Salaries and employee benefits	4,072	3,712	11,811	10,902
Purchased transportation	2,106	1,527	5,481	4,381
Rentals and landing fees	660	597	1,843	1,746
Depreciation and amortization	608	593	1,792	1,783
Fuel	520	790	1,808	2,913
Maintenance and repairs	471	468	1,476	1,497
Intercompany charges, net	294	(34)	338	(82)
Other	1,344	1,231	3,901	3,635
OPERATING EXPENSES	10,075	8,884	28,450	26,775
OPERATING INCOME	763	909	2,740	2,713
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	86	91	220	292
Interest, net	6	6	20	15
Intercompany charges, net	(105)	(74)	(264)	(192)
Other, net	(1)	(4)	(10)	(5)
INCOME BEFORE INCOME TAXES	749	928	2,706	2,823
PROVISION FOR INCOME TAXES	249	274	915	916
NET INCOME	500	654	1,791	1,907
COMPREHENSIVE INCOME	487	640	1,758	1,864
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	1,892	2,024	6,449	6,136
OPERATING EXPENSES:
Salaries and employee benefits	608	598	1,904	1,698
Purchased transportation	545	695	2,132	2,170
Rentals and landing fees	84	89	278	263
Depreciation and amortization	55	59	171	170
Fuel	17	20	56	69
Maintenance and repairs	33	37	105	107
Intercompany charges, net	50	82	187	273
Other	399	315	1,211	911
OPERATING EXPENSES	1,791	1,895	6,044	5,661
OPERATING INCOME	101	129	405	475
OTHER INCOME (EXPENSE):
Interest, net	3	2	8	4
Intercompany charges, net	10	6	7	16
Other, net	5	11	15	17
INCOME BEFORE INCOME TAXES	119	148	435	512
PROVISION FOR INCOME TAXES	26	83	116	183
NET INCOME	93	65	319	329
COMPREHENSIVE INCOME	7	(74)	77	68
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
REVENUES	(76)	(101)	(253)	(285)
OPERATING EXPENSES:
Purchased transportation	(28)	(57)	(108)	(147)
Rentals and landing fees	(1)	(1)	(4)	(4)
Other	(47)	(43)	(141)	(134)
OPERATING EXPENSES	(76)	(101)	(253)	(285)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(593)	(719)	(2,110)	(2,236)
INCOME BEFORE INCOME TAXES	(593)	(719)	(2,110)	(2,236)
NET INCOME	(593)	(719)	(2,110)	(2,236)
COMPREHENSIVE INCOME	$ (593)	$ (719)	$ (2,110)	$ (2,236)

Condensed Consolidating Finan48

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Feb. 29, 2016	Feb. 29, 2016	Feb. 28, 2015
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 3,796	$ 3,473
Investing Activities:
Capital expenditures		(3,562)	(2,969)
Business acquisitions, net of cash acquired			(1,429)
Asset dispositions and other, net		(17)	16
Cash used in investing activities		(3,579)	(4,382)
Financing Activities:
Principal payments on debt		(28)	(1)
Proceeds from debt issuances		1,238	2,491
Proceeds from stock issuances		79	272
Excess tax benefit on the exercise of stock options		9	31
Dividends paid		(210)	(171)
Purchases of treasury stock	$ (1,000)	(2,133)	(1,016)
Other, net		(16)	(23)
Cash (used in) provided by financing activities		(1,061)	1,583
Effect of exchange rate changes on cash		(78)	(104)
Net (decrease) increase in cash and cash equivalents		(922)	570
Cash and cash equivalents at beginning of period		3,763	2,908
Cash and cash equivalents at end of period	2,841	2,841	3,478
Parent Company Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(833)	(460)
Investing Activities:
Capital expenditures			(1)
Business acquisitions, net of cash acquired			(1,429)
Asset dispositions and other, net		(55)
Cash used in investing activities		(55)	(1,430)
Financing Activities:
Net transfers from (to) Parent		1,036	692
Proceeds from debt issuances		1,238	2,491
Proceeds from stock issuances		79	272
Excess tax benefit on the exercise of stock options		9	31
Dividends paid		(210)	(171)
Purchases of treasury stock		(2,133)	(1,016)
Other, net		(16)	(23)
Cash (used in) provided by financing activities		3	2,276
Net (decrease) increase in cash and cash equivalents		(885)	386
Cash and cash equivalents at beginning of period		2,383	1,756
Cash and cash equivalents at end of period	1,498	1,498	2,142
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		4,213	3,443
Investing Activities:
Capital expenditures		(3,434)	(2,849)
Asset dispositions and other, net		26	35
Cash used in investing activities		(3,408)	(2,814)
Financing Activities:
Net transfers from (to) Parent		(1,039)	(681)
Payment on loan between subsidiaries		109	202
Intercompany dividends		20	38
Principal payments on debt		(7)	(1)
Other, net		(27)	(105)
Cash (used in) provided by financing activities		(944)	(547)
Effect of exchange rate changes on cash		(17)	(31)
Net (decrease) increase in cash and cash equivalents		(156)	51
Cash and cash equivalents at beginning of period		487	441
Cash and cash equivalents at end of period	331	331	492
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		370	382
Investing Activities:
Capital expenditures		(128)	(119)
Asset dispositions and other, net		12	(19)
Cash used in investing activities		(116)	(138)
Financing Activities:
Net transfers from (to) Parent		3	(11)
Payment on loan between subsidiaries		(109)	(202)
Intercompany dividends		(20)	(38)
Principal payments on debt		(21)
Other, net		27	105
Cash (used in) provided by financing activities		(120)	(146)
Effect of exchange rate changes on cash		(61)	(73)
Net (decrease) increase in cash and cash equivalents		73	25
Cash and cash equivalents at beginning of period		971	861
Cash and cash equivalents at end of period	1,044	1,044	886
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		46	108
Financing Activities:
Net (decrease) increase in cash and cash equivalents		46	108
Cash and cash equivalents at beginning of period		(78)	(150)
Cash and cash equivalents at end of period	$ (32)	$ (32)	$ (42)