FedEx (FDX) 10-Q 21 Dec 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	6 Months Ended
	Nov. 30, 2016	Dec. 20, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Nov. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	FedEx Corporation
Entity Central Index Key	1,048,911
Current Fiscal Year End Date	--05-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$ 47.2
Entity Common Stock, Shares Outstanding		266,509,290
TradingSymbol	FDX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Nov. 30, 2016	May 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 3,059	$ 3,534
Receivables, less allowances of $218 and $178	7,575	7,252
Spare parts, supplies and fuel, less allowances of $225 and $218	517	496
Prepaid expenses and other	901	707
Total current assets	12,052	11,989
PROPERTY AND EQUIPMENT, AT COST	48,918	47,018
Less accumulated depreciation and amortization	23,611	22,734
Net property and equipment	25,307	24,284
OTHER LONG-TERM ASSETS
Goodwill	6,921	6,747
Other assets	2,068	2,939
Total other long-term assets	8,989	9,686
ASSETS	46,348	45,959
CURRENT LIABILITIES
Current portion of long-term debt	43	29
Accrued salaries and employee benefits	1,765	1,972
Accounts payable	2,954	2,944
Accrued expenses	3,045	3,063
Total current liabilities	7,807	8,008
LONG-TERM DEBT, LESS CURRENT PORTION	13,553	13,733
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,148	1,567
Pension, postretirement healthcare and other benefit obligations	5,845	6,227
Self-insurance accruals	1,349	1,314
Deferred lease obligations	547	400
Deferred gains, principally related to aircraft transactions	145	155
Other liabilities	423	771
Total other long-term liabilities	10,457	10,434
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of November 30, 2016 and May 31, 2016	32	32
Additional paid-in capital	2,946	2,892
Retained earnings	19,410	18,371
Accumulated other comprehensive loss	(425)	(169)
Treasury stock, at cost	(7,432)	(7,342)
Total common stockholders' investment	14,531	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 46,348	$ 45,959

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Nov. 30, 2016	May 31, 2016
CURRENT ASSETS
Allowances for receivables	$ 218	$ 178
Allowances for spare parts, supplies and fuel	$ 225	$ 218
COMMON STOCKHOLDERS' INVESTMENT
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	800	800
Common stock, shares issued	318	318

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Condensed Consolidated Statements of Income
REVENUES	$ 14,931	$ 12,453	$ 29,594	$ 24,732
OPERATING EXPENSES:
Salaries and employee benefits	5,353	4,570	10,664	9,095
Purchased transportation	3,431	2,538	6,671	4,882
Rentals and landing fees	802	682	1,592	1,377
Depreciation and amortization	740	653	1,479	1,301
Fuel	658	615	1,308	1,327
Maintenance and repairs	579	529	1,177	1,077
Other	2,201	1,729	4,272	3,392
OPERATING EXPENSES	13,764	11,316	27,163	22,451
OPERATING INCOME	1,167	1,137	2,431	2,281
OTHER INCOME (EXPENSE):
Interest, net	(119)	(74)	(232)	(137)
Other, net	30	(8)	21	(5)
OTHER INCOME (EXPENSE)	(89)	(82)	(211)	(142)
INCOME BEFORE INCOME TAXES	1,078	1,055	2,220	2,139
PROVISION FOR INCOME TAXES	378	364	805	756
NET INCOME	$ 700	$ 691	$ 1,415	$ 1,383
EARNINGS PER COMMON SHARE:
Basic	$ 2.63	$ 2.47	$ 5.32	$ 4.92
Diluted	2.59	2.44	5.24	4.86
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.40	$ 0.25	$ 1.20	$ 0.75

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Condensed Consolidated Statement of Other Comprehensive Income
Net income	$ 700	$ 691	$ 1,415	$ 1,383
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $21, $4, $16 and $17	(230)	(33)	(218)	(171)
Amortization of prior service credit, net of tax of $11, $11, $22 and $18	(19)	(18)	(38)	(42)
Other comprehensive loss	(249)	(51)	(256)	(213)
COMPREHENSIVE INCOME	$ 451	$ 640	$ 1,159	$ 1,170

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Other Comprehensive Income, Tax Amounts
Foreign currency translation adjustments, tax	$ 21	$ 4	$ 16	$ 17
Amortization of prior service credit, net of tax	$ 11	$ 11	$ 22	$ 18

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015
Operating Activities:
Net income	$ 1,415	$ 1,383
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,479	1,301
Provision for uncollectible accounts	76	57
Stock-based compensation	93	86
Deferred income taxes and other noncash items	320	(48)
Gain from sale of investment	(35)
Changes in assets and liabilities:
Receivables	(513)	(263)
Other assets	(250)	(113)
Accounts payable and other liabilities	67	66
Other, net	(17)	(15)
Cash provided by operating activities	2,635	2,454
Investing Activities:
Capital expenditures	(2,681)	(2,562)
Proceeds from asset dispositions and other	100	12
Cash used in investing activities	(2,581)	(2,550)
Financing Activities:
Principal payments on debt	(43)	(17)
Proceeds from debt issuance		1,238
Proceeds from stock issuances	164	62
Dividends paid	(213)	(141)
Purchases of treasury stock	(334)	(1,101)
Other, net	(5)	(8)
Cash (used in) provided by financing activities	(431)	33
Effect of exchange rate changes on cash	(98)	(53)
Net decrease in cash and cash equivalents	(475)	(116)
Cash and cash equivalents at beginning of period	3,534	3,763
Cash and cash equivalents at end of period	$ 3,059	$ 3,647

General

General	6 Months Ended
	Nov. 30, 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, 2016 (“Annual Report”) . Accordingly, significant accounting policies and other disclosures normally pr ovided have been omitted since such items are disclosed i n our Annual Report . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2016 , the results of our operations for the three- and six- month periods ended November 30, 2016 and 2015 and cash flows for the six-month periods ended November 30, 2016 and 2015 . Operating results for the three- and six- month period s ended November 30, 2016 are not necessarily indicative of the results that may be expected for the year ending May 31, 2017 . Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2017 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. RECLASSIFICATIONS. Reclassifications have been made to the May 31, 2016 condensed consolidated balance sheets to conform to the current year's presentation of debt issuance costs. See recent accounting guidance below for additional information. BUSINESS ACQUISITION. On May 25, 2016, we acquired TNT Express B.V. (“TNT Express”) for €4.4 billion (approximately $4.9 billion). Cash acquired in the acquisition was approximately €250 million ($280 million). As of November 30, 2016, $ 26 million of shares associated with the transaction remained untendered, a decrease of $ 2 61 million since May 31, 2016. The remaining untendered shares are included in the “Other liabilities” caption of our consolidated balance sheets. We funded the acquisition with proceeds from our April 2016 debt issuance and existing cash balances. The financial results of this business are included in the FedEx Express group and TNT Express segment from the date of acquisition. TNT Express collects, transports and delivers documents, parcels and freight to over 200 countries. This strategic acquisition broadens our portfolio of international transportation solutions by combining TNT Express's strong European road platform with FedEx Express's strength in other regions globally. This acquisition is included in the accompanying balance sheets based on an allocation of the purchase price (summarized in the table below, in millions ) , which reflect updates to property and equipment an d identifiable intangible assets from the May 31, 2016 and August 31, 2016 estimates , resulting in a net increase to goodwill of $382 million . These updates reflect the va luation work completed to date by third party experts, ref inements to cash flow estimates and the receipt of other information. Given the timing and complexity of the acquisition, the presentation of TNT Express in our financial statements, including the allocation of the purchase price , continues to be preliminary and will likely change in future periods, perhaps significantly, as additional information concerning the fair value estimates of the assets acquired and liabilities assumed as of the acquisition date is obtained during the remainder of the fiscal year . Due to the global scope of TNT Express's operations and the decentralized nature of the accounting records, the measurement period s for fixed assets, customer intangibles and certain liabilities are longer than for the other categories noted below. We will complete our purchase price allocation no later than the fourth quarter of 2017. Current assets (1) $ 1,920 Property and equipment 993 Goodwill 3,346 Identifiable intangible assets 530 Other non-current assets 295 Current liabilities (2) (1,644) Long-term liabilities (546) Total purchase price $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and other accrued expenses. As a result of this acquisition, we recognized a preliminary value of $ 3. 3 billion of goodwill, which is primarily attributable to the TNT Express workforce and the expected benefits from synergies of the combination with existing businesses and growth opportunities. The majority of the purchase price allocated to goodwill is not deductible for income tax purposes. The purchase price was preliminarily allocated to the identifiable intangible assets acquired as follows (in millions): Intangible assets with finite lives Customer relationships (12-year useful life) $ 420 Technology (4-year useful life) 30 Trademarks (4-year useful life) 80 Total intangible assets $ 530 EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“FedEx Express”), which represent a small number of FedEx Express's total employees, are emp loyed under a collective bargaining agreement that took effect on November 2, 2015. This collective bargaining agreement is scheduled to become amendable in November 2021, after a six-year term. In addition to our pilots at FedEx Express, GENCO Distribution System, Inc. (“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 $ 36 million for the three-month period ended November 30, 2016 and $ 93 million for the six-month period ended November 30, 2016 . Our stock-based compensation expense was $ 3 3 million for t he three-month period ended November 30, 2015 and $ 86 million for the six-month period ended November 30, 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. During the first quarter of 2017, we retrospectively adopted the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) to simplify the presentation of debt issuance costs. This new guidance requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This new guidance had a minimal impact on our accounting and financial reporting. On May 28, 2014, the FASB and International Accounting Standards Board issued a new accounting standard that will supersede virtually all existing revenue recognition guidance under generally accepted accounting principles in the United States (and International Financial Reporting Standards) which has been subsequently updated to defer the effective date of the new revenue recognition standard by one year. This standard will be effective for us beginning in fiscal 2019. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five-step approach for the recognition of revenue. Based on our current assessment, we do not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. On February 25, 2016, the FASB issued 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, 2019 (fiscal 2020), with a modified retrospective adoption method to the beginning of 2018. During the second quarter of 2017, we adopted the Accounting Standards Update issued by the FASB in March 2016 to simplify the accounting for share-based payment transactions. The new guidance requires companies to recognize the income tax effects of awards that vest or are settled as income tax expense or benefit in the income statement as opposed to additional paid-in capital as is current practice. The guidance also provides clarification of the presentation of certain components of share-based awards in the statement of cash flows. Additionally, the guidance allows companies to make a policy election to account for forfeitures either upon occurrence or by estimating forfeitures. We have elected to continue estimat ing forfeitures expected to occur in order to determine the amount of compensation cost to be recognized each period and to apply the cash flow classification guidance prospectively. Excess tax benefits are now classified as a n operating activity rather than a financing activity . The adoption of the new standard had a benefit of $ 21 million to net income and $0. 07 per diluted share for the second quarter of 2017. The first quarter of 2017 has not been recast due to immateriality . We believe that no other new accounting guidance was adopted or issued during the first half of 2017 that is relevant to the readers of our financial statements. TREASURY SHARES. I n January 2016, our Board of Directors authorized a share repurchase program of up to 25 million shares. Shares under the current repurchase program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock and general market conditions. No time limit was set for the completion of the program, and the program may be suspended or discontinued at any time. During the second quarter of 2017, we repurchased 0.7 million shares of FedEx common stock at an average price of $ 172.25 per share for a total of $ 112 million. During the first half of 2017, we repurchased 2.0 million shares of FedEx common stock at an average price of $164 .04 per share for a total of $ 334 million. As of November 3 0 , 2016, 16.9 million shares remained under the share repurchase authorization. DIVIDENDS DECLARED PER COMMON SHARE. On November 18 , 201 6 , our Board of Directors declared a quarterly dividend of $0. 40 per share of common stock. The dividend will be paid on January 3 , 201 7 to stockholders of record as of the close of business on December 1 2 , 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)	6 Months Ended
	Nov. 30, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	(2) Accumulated Other Comprehensive Income (Loss) The following ta ble provides changes in accumulated other comprehensive loss (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended November 30 (in millions ; amounts in parentheses indicate debits to AOCI ): Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign currency translation loss: Balance at beginning of period $ (502) $ (391) $ (514) $ (253) Translation adjustments (230) (33) (218) (171) Balance at end of period (732) (424) (732) (424) Retirement plans adjustments: Balance at beginning of period 326 401 345 425 Reclassifications from AOCI (19) (18) (38) (42) Balance at end of period 307 383 307 383 Accumulated other comprehensive loss at end of period $ (425) $ (41) $ (425) $ (41) The following table presents details of the reclassifications from AOCI for the periods ended November 30 (in millions ; amounts in parentheses indicate debits to earnings ): Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization of retirement plans prior service credits, before tax $ 30 $ 29 $ 60 $ 60 Salaries and employee benefits Income tax benefit (11) (11) (22) (18) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 18 $ 38 $ 42 Net income

Financing Arrangements

Financing Arrangements	6 Months Ended
	Nov. 30, 2016
Financing Arrangements [Abstract]
Financing Arrangements	( 3 ) Financing Arrangements W e have a shelf registration statement with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock . We have a five-year $1.75 billion revolving credit facility that expires in November 2020. The facility, which includes a $500 million letter of credit sublimit, is available to finance our operations and other cash flow needs. The agreement contains a financial covenant, which requires us to maintain a ratio of debt to consolidated earnings (excluding non-cash pension mark-to-market adjustments and non-cash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four quarters basis. The ratio of our debt to adjusted EBITDA was 1. 8 to 1.0 at November 3 0 , 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 November 3 0 , 2016, no commercial paper was outstanding. However, we had a total of $ 319 mill ion in letters of credit outstanding at November 3 0 , 2016, with $ 181 million of the letter of credit sublimit unused under our revolving credit facility. Long-term debt, e xclusive of capital leases, had carrying value s of $ 13.5 billion at November 30, 2016 and $13.7 billion at May 31, 2016 , compared with estimated fair value s of $ 13.8 billion at November 30, 2016 and $ 14 . 3 billion at May 31, 2016 . The annualized weighted average i nterest rate on long-term debt was 3.6 % for the six months ended November 3 0 , 2016 . T he 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 o ur long- term debt is classified as Level 2 within the fair value hierarchy . This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly .

Computation of Earnings Per Sha

Computation of Earnings Per Share	6 Months Ended
	Nov. 30, 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 November 30 was as follows (in millions, except per share amounts): Three Months Ended Six Months Ended 2016 2015 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 700 $ 690 $ 1,414 $ 1,382 Weighted-average common shares 266 279 266 281 Basic earnings per common share $ 2.63 $ 2.47 $ 5.32 $ 4.92 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 700 $ 690 $ 1,414 $ 1,382 Weighted-average common shares 266 279 266 281 Dilutive effect of share-based awards 4 4 4 3 Weighted-average diluted shares 270 283 270 284 Diluted earnings per common share $ 2.59 $ 2.44 $ 5.24 $ 4.86 Anti-dilutive options excluded from diluted earnings per common share 5.1 3.7 5.1 3.6 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans

Retirement Plans	6 Months Ended
	Nov. 30, 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 November 30 were as follows (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Defined benefit pension plans $ 58 $ 54 $ 116 $ 107 Defined contribution plans 112 103 231 205 Postretirement healthcare plans 19 20 38 41 $ 189 $ 177 $ 385 $ 353 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended November 30 includ ed the following components (in millions): Three Months Ended Six Months Ended Pension Plans 2016 2015 2016 2015 Service cost $ 180 $ 165 $ 360 $ 331 Interest cost 293 295 586 590 Expected return on plan assets (386) (377) (772) (754) Amortization of prior service credit and other (29) (29) (58) (60) $ 58 $ 54 $ 116 $ 107 Three Months Ended Six Months Ended Postretirement Healthcare Plans 2016 2015 2016 2015 Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 10 10 20 21 $ 19 $ 20 $ 38 $ 41 Contributions to our tax qualified U.S. domestic pension plans (“U.S. Pension Plans”) for the six -month periods ended November 30 were as follows (in millions) : 2016 2015 Required $ 250 $ 8 Voluntary 250 322 $ 500 $ 330 In December 201 6 , we made $250 million in contributions to our U.S. Pension Plans , of which $178 million was required . Our U.S. Pension Plans have ample funds to meet expected benefit payments.

Business Segment Information

Business Segment Information	6 Months Ended
	Nov. 30, 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 Express, the world's largest express transportation company; TNT Express, an international express, small-package ground delivery and freight transportation company that was acquired near the end of our 2016 fourth quarter; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight, Inc. (“FedEx Freight”), a leading U.S. provider of less-than-truckload ( “ LTL ” ) freight services. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), form the core of our reportable segments. Our reportable segments include the following businesses: FedEx Express Group: FedEx Express Segment FedEx Express (express transportation) FedEx Trade Networks (air and ocean freight forwarding, customs brokerage and cross-border enablement technology and solutions) FedEx SupplyChain Systems (logistics services) TNT Express Segment TNT Express (international express transportation, small- package ground delivery and freight transportation) FedEx Ground Segment FedEx Ground (small-package ground delivery) 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, customer service, technical support, billing and collection services and back-office functions) FedEx Office (document and business services and package acceptance) FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information technology functions that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express and for TNT Express , some of these functions are performed on a regional basis and reported in the applicable segment in their natural expense line items. The FedEx Services segment includes: FedEx Services, which provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S. customers of our major business units and certain back-office support to our other companies; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses. The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. 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 and certain legal and financial functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the business segments. The following table provides a reconciliation of reportable segment revenues and operating income to our unaudited condensed consolidated financial statement totals fo r the periods ended November 30 (in millions): Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues FedEx Express segment $ 6,743 $ 6,588 $ 13,399 $ 13,179 TNT Express segment 1,899 N/A 3,703 N/A FedEx Ground segment 4,419 4,050 8,709 7,880 FedEx Freight segment 1,597 1,547 3,255 3,148 FedEx Services segment 414 403 809 793 Eliminations and other (141) (135) (281) (268) $ 14,931 $ 12,453 $ 29,594 $ 24,732 Operating Income FedEx Express segment $ 636 $ 622 $ 1,260 $ 1,167 TNT Express segment 70 N/A 56 N/A FedEx Ground segment 465 526 1,075 1,063 FedEx Freight segment 88 101 223 233 Eliminations, corporate and other (92) (112) (183) (182) $ 1,167 $ 1,137 $ 2,431 $ 2,281

Commitments

Commitments	6 Months Ended
	Nov. 30, 2016
Commitments [Abstract]
Commitments	( 7 ) Commitments As of November 30, 2016 , our purchase commitments under various contracts for the remainder of 2017 and annually thereafter were as follows (in millions): Aircraft and Aircraft-Related Other (1) Total 2017 (remainder) $ 371 $ 524 $ 895 2018 1,767 473 2,240 2019 1,717 335 2,052 2020 1,925 239 2,164 2021 1,460 154 1,614 Thereafter 4,205 119 4,324 Total $ 11,445 $ 1,844 $ 13,289 (1) Primarily equipment and advertising contracts. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of November 30, 2016 , our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and seven 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 $ 430 million in deposits and progress payments as of November 30, 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 November 30, 2016 with the year of expected delivery: B767F B777F Total 2017 (remainder) 2 - 2 2018 16 2 18 2019 15 2 17 2020 16 3 19 2021 10 3 13 Thereafter 16 6 22 Total 75 16 91 A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at November 30, 2016 is as follows (in millions): Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2017 (remainder) $ 367 $ 1,051 $ 1,418 2018 402 1,928 2,330 2019 345 1,715 2,060 2020 262 1,520 1,782 2021 204 1,372 1,576 Thereafter 376 8,436 8,812 Total $ 1,956 $ 16,022 $ 17,978 Future minimum lease payments under capital leases were immaterial at November 30, 2016 . While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain ce rtain levels of insurance, none of our lease agreements include material financial covenants or limitations.

Contingencies

Contingencies	6 Months Ended
	Nov. 30, 2016
Loss Contingency [Abstract]
Contingencies	(8 ) Contingencies Independent Contractor — Lawsuits and State Administrative Proceedings. FedEx Ground is involved in numerous cla ss-action lawsuits (including 22 that have been certified as class actions), individual lawsuits and state tax and other administrative proceedings that claim that the company's owner-operators under a contractor model no longer in use should have been treated as employees, rather than independent contractors. Most of the class-action lawsuits were consolidated for administration of the pre-trial proceedings by a single federal court, the U.S. District Court for the Northern District of Indiana. The multidistrict litigation court granted class certification in 28 cases and denied it in 14 cases. On December 13, 2010, the court entered an opinion and order addressing all outstanding motions for summary judgment on the status of the owner-operators (i.e., independent contractor vs. employee). In sum, the court ruled on our summary judgment motions and entered judgment in favor of FedEx Ground on all claims in 20 of the 28 multidistrict litigation cases that had been certified as class actions, finding that the owner-operators in those cases were contractors as a matter of the law of 20 states. The plaintiffs filed notices of appeal in all of these 20 cases. The Seventh Circuit heard the appeal in the Kansas case in January 2012 and, in July 2012, issued an opinion that did not make a determination with respect to the correctness of the district court's decision and, instead, certified two questions to the Kansas Supreme Court related to the classification of the plaintiffs as independent contractors under the Kansas Wage Payment Act. The other 19 cases that are before the Seventh Circuit were stayed. On October 3, 2014, the Kansas Supreme Court determined that a 20 factor right to control test applies to claims under the Kansas Wage Payment Act and concluded that under that test, the class members were employees, not independent contractors. The case was subsequently transferred back to the Seventh Circuit, where both parties made filings requesting the action necessary to complete the resolution of the appeals. The parties also made recommendations to the court regarding next steps for the other 19 cases that are before the Seventh Circuit. FedEx Ground requested that each of those cases be separately briefed given the potential differences in the applicable state law from that in Kansas. On July 8, 2015, the Seventh Circuit issued an order and opinion confirming the decision of the Kansas Supreme Court, concluding that the class members 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 requires 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 Kansas case was remanded to the multidistrict litigation court, and the other 19 cases remain at the Seventh Circuit; however, approval proceedings will be conducted primarily by the multidistrict litigation court. Plaintiffs filed motions for preliminary approval between June 15 and June 30, 2016, and on August 3 and 4, 2016, the multidistrict litigation court issued orders indicating that it would grant preliminary approval if the Seventh Circuit would remand the cases on appeal for the purpose of entering approval orders. Upon the parties' joint motion, the Seventh Circuit remanded the cases for this purpose on August 10, 2016, and the multidistrict litigation court entered orders preliminarily approving the settlements on August 17, 2016. Fairness hearings are scheduled for January 23 and 24, 2017. 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. Four of these matters settled for immaterial amounts and have received court approval. The case in Arkansas settled in the second quarter of 2016, and we established an accrual for the amount of the settlement. The court granted preliminary approval on September 15, 2016, and scheduled a final approval hearing for March 1, 2017. 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 entered final judgment on June 20, 2016, and two objectors to the settlement filed appeals with the Ninth Circuit. One objector has settled with plaintiffs' counsel, and we expect the appeal by the second objector to be briefed by the end of the third quarter of 2017 and arguments to be scheduled thereafter. The settlement is not effective until all appeals have been resolved without affecting the court's approval of the settlement. 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 was preliminarily approved on April 20, 2016 and the court granted final approval after a fairness hearing on October 20, 2016 . In addition, we are defending contractor-model cases that are not or are no longer part of the multidistrict litigation. These cases are in varying stages of litigation. We do not expect to incur a material loss in these matters; however, it is reasonably possible that potential loss in some of these lawsuits or changes to the independent contractor status of FedEx Ground's owner-operators could be material. In these cases, we continue to evaluate what facts may arise in the course of discovery and what legal rulings the courts may render and how these facts and rulings might impact 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 drivers is defined and how many individuals will qualify based on whatever criteria may be established. In addition, the parties have conducted only very limited discovery into damages in certain of these cases, which could vary considerably from plaintiff to plaintiff and be dependent on evidence pertaining to individual plaintiffs, which has yet to be produced in the cases. Further, the range of potential loss could be impacted substantially by future rulings by the court, including on the merits of the claims, on FedEx Ground's defenses, and on evidentiary issues. As a consequence of these factors, as well as others that are specific to these cases, we are not currently able to estimate a range of reasonably possible loss. We do not believe that a material loss is probable in these matters. Adverse determinations in matters related to FedEx Ground's independent contractors, could, among other things, entitle certain owner-operators and their drivers to the reimbursement of certain expenses and to the benefit of wage-and-hour laws and result in employment and withholding tax and benefit liability for FedEx Ground. We believe that FedEx Ground's owner-operators are properly classified as independent contractors and that FedEx Ground is not an employer of the drivers of the company's independent contractors. City and State of New York Cigarette Suit. The City of New York and the State of New York filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground's alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York's Public Health Law, as well as common law nuisance claims. In April 2016, the two lawsuits were consolidated and will now proceed as one lawsuit. The first-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, and the second-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers; none of these shippers continue to ship in our network. Pursuant to motions to dismiss filed in both lawsuits, some of the claims have been dismissed entirely or limited. In the first-filed lawsuit, the New York Public Health Law and common law nuisance claims were dismissed and the plaintiffs voluntarily dismissed another claim. In the second-filed lawsuit, the court dismissed, without prejudice to plaintiffs' right to refile the claim at a later date, the New York Public Health Law claim. The plaintiffs have refiled the New York Public Health Law claim, and FedEx Ground has filed a motion to dismiss that claim that is pending with the court. Other claims, including the RICO claims, remain in both lawsuits. The likelihood of loss is reasonably possible, but the amount of loss cannot be estimated at this stage of the litigation and we expect the amount of any loss to be immaterial. Environmental Matters . SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that management reasonably believes could exceed $100,000. On September 9, 2016, GENCO received a written offer from several District Attorneys' Offices in California to settle a civil action that the District Attorneys intend to file against GENCO for alleged violations of the state's hazardous waste regulations. Specifically, the District Attorneys' Offices allege GENCO unlawfully disposed of hazardous waste at one of its California facilities and caused the illegal transportation and disposal of hazardous waste from the retail stores of a GENCO customer at this same facility. The District Attorneys allege these violations began in 2006 and continued until the facility closed in the spring of 2015. We believe an immaterial loss in this matter is probable. The District Attorneys are also investigating GENCO's hazardous waste activities at eight additional facilities within California. We will pursue all available remedies against the sellers of GENCO to recover any losses in these matters. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime or were not provided work breaks or other benefits. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations or cash flows.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Nov. 30, 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 six-month periods ended November 30 was as follows (in mil lions): 2016 2015 Cash payments for: Interest (net of capitalized interest) $ 232 $ 146 Income taxes $ 216 $ 831 Income tax refunds received (13) (3) Cash tax payments, net $ 203 $ 828

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	6 Months Ended
	Nov. 30, 2016
Condensed Consolidating Financial Statements [Abstract]
Condensed Consolidating Financial Statements	(10 ) Condensed Consolidating Financial Statements We are required to present condensed consolidating financial information in order for the subsidiary guarantors of our public debt to continue to be exempt from reporting under the Securities Exchange Act of 1934, as amended. The guarantor subsidiaries, which are 100% owned by FedEx, guarantee $13. 4 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 result, the "Guarantor Subsidiaries" and "Non-guarantor Subsidiaries" columns each include portions of our domestic and international operations. Accordingly, this basis of presentation is not intended to present our financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. Condensed consolidating financial statements for our guarantor subsidiaries and non-guarantor subsidiaries are presented in the following tables (in millions): CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,330 $ 294 $ 1,490 $ (55) $ 3,059 Receivables, less allowances 1 4,753 2,872 (51) 7,575 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 370 822 226 - 1,418 Total current assets 1,701 5,869 4,588 (106) 12,052 PROPERTY AND EQUIPMENT, AT COST 22 45,735 3,161 - 48,918 Less accumulated depreciation and amortization 17 22,360 1,234 - 23,611 Net property and equipment 5 23,375 1,927 - 25,307 INTERCOMPANY RECEIVABLE 2,359 1,602 - (3,961) - GOODWILL - 1,571 5,350 - 6,921 INVESTMENT IN SUBSIDIARIES 25,967 3,558 - (29,525) - OTHER ASSETS 3,041 867 1,052 (2,892) 2,068 $ 33,073 $ 36,842 $ 12,917 $ (36,484) $ 46,348 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 26 $ 17 $ - $ 43 Accrued salaries and employee benefits 43 1,247 475 - 1,765 Accounts payable 112 1,441 1,507 (106) 2,954 Accrued expenses 887 1,434 724 - 3,045 Total current liabilities 1,042 4,148 2,723 (106) 7,807 LONG-TERM DEBT, LESS CURRENT PORTION 13,281 245 27 - 13,553 INTERCOMPANY PAYABLE - - 3,961 (3,961) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,792 248 (2,892) 2,148 Other liabilities 4,219 3,501 589 - 8,309 Total other long-term liabilities 4,219 8,293 837 (2,892) 10,457 STOCKHOLDERS' INVESTMENT 14,531 24,156 5,369 (29,525) 14,531 $ 33,073 $ 36,842 $ 12,917 $ (36,484) $ 46,348 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,974 $ 326 $ 1,277 $ (43) $ 3,534 Receivables, less allowances 1 4,461 2,831 (41) 7,252 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 233 724 246 - 1,203 Total current assets 2,208 5,511 4,354 (84) 11,989 PROPERTY AND EQUIPMENT, AT COST 22 43,760 3,236 - 47,018 Less accumulated depreciation and amortization 17 21,566 1,151 - 22,734 Net property and equipment 5 22,194 2,085 - 24,284 INTERCOMPANY RECEIVABLE 2,437 1,284 - (3,721) - GOODWILL - 1,571 5,176 - 6,747 INVESTMENT IN SUBSIDIARIES 24,766 3,697 - (28,463) - OTHER ASSETS 3,359 967 1,851 (3,238) 2,939 $ 32,775 $ 35,224 $ 13,466 $ (35,506) $ 45,959 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 13 $ 16 $ - $ 29 Accrued salaries and employee benefits 54 1,377 541 - 1,972 Accounts payable 8 1,501 1,519 (84) 2,944 Accrued expenses 883 1,411 769 - 3,063 Total current liabilities 945 4,302 2,845 (84) 8,008 LONG-TERM DEBT, LESS CURRENT PORTION 13,451 245 37 - 13,733 INTERCOMPANY PAYABLE - - 3,721 (3,721) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,436 369 (3,238) 1,567 Other liabilities 4,595 3,375 897 - 8,867 Total other long-term liabilities 4,595 7,811 1,266 (3,238) 10,434 STOCKHOLDERS' INVESTMENT 13,784 22,866 5,597 (28,463) 13,784 $ 32,775 $ 35,224 $ 13,466 $ (35,506) $ 45,959 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,997 $ 4,004 $ (70) $ 14,931 OPERATING EXPENSES: Salaries and employee benefits 29 4,161 1,163 - 5,353 Purchased transportation - 2,074 1,383 (26) 3,431 Rentals and landing fees 2 625 177 (2) 802 Depreciation and amortization - 634 106 - 740 Fuel - 584 74 - 658 Maintenance and repairs - 504 75 - 579 Intercompany charges, net (89) 38 51 - - Other 58 1,429 756 (42) 2,201 - 10,049 3,785 (70) 13,764 OPERATING INCOME - 948 219 - 1,167 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 700 54 - (754) - Interest, net (123) 4 - - (119) Intercompany charges, net 124 (64) (60) - - Other, net (1) (5) 36 - 30 INCOME BEFORE INCOME TAXES 700 937 195 (754) 1,078 Provision for income taxes - 291 87 - 378 NET INCOME $ 700 $ 646 $ 108 $ (754) $ 700 COMPREHENSIVE INCOME $ 682 $ 635 $ (112) $ (754) $ 451 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,479 $ 2,048 $ (74) $ 12,453 OPERATING EXPENSES: Salaries and employee benefits 26 3,926 618 - 4,570 Purchased transportation - 1,941 622 (25) 2,538 Rentals and landing fees 2 596 86 (2) 682 Depreciation and amortization 1 601 51 - 653 Fuel - 597 18 - 615 Maintenance and repairs - 497 32 - 529 Intercompany charges, net (112) 84 28 - - Other 83 1,293 400 (47) 1,729 - 9,535 1,855 (74) 11,316 OPERATING INCOME - 944 193 - 1,137 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 691 73 - (764) - Interest, net (81) 6 1 - (74) Intercompany charges, net 84 (83) (1) - - Other, net (3) (6) 1 - (8) INCOME BEFORE INCOME TAXES 691 934 194 (764) 1,055 Provision for income taxes - 309 55 - 364 NET INCOME $ 691 $ 625 $ 139 $ (764) $ 691 COMPREHENSIVE INCOME $ 672 $ 620 $ 112 $ (764) $ 640 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 21,900 $ 7,834 $ (140) $ 29,594 OPERATING EXPENSES: Salaries and employee benefits 65 8,267 2,332 - 10,664 Purchased transportation - 3,991 2,734 (54) 6,671 Rentals and landing fees 3 1,245 347 (3) 1,592 Depreciation and amortization - 1,245 234 - 1,479 Fuel - 1,162 146 - 1,308 Maintenance and repairs - 1,030 147 - 1,177 Intercompany charges, net (179) 100 79 - - Other 111 2,802 1,442 (83) 4,272 - 19,842 7,461 (140) 27,163 OPERATING INCOME - 2,058 373 - 2,431 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,415 110 - (1,525) - Interest, net (245) 13 - - (232) Intercompany charges, net 246 (145) (101) - - Other, net (1) (10) 32 - 21 INCOME BEFORE INCOME TAXES 1,415 2,026 304 (1,525) 2,220 Provision for income taxes - 671 134 - 805 NET INCOME $ 1,415 $ 1,355 $ 170 $ (1,525) $ 1,415 COMPREHENSIVE INCOME $ 1,378 $ 1,337 $ (31) $ (1,525) $ 1,159 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 20,352 $ 4,557 $ (177) $ 24,732 OPERATING EXPENSES: Salaries and employee benefits 60 7,739 1,296 - 9,095 Purchased transportation - 3,375 1,587 (80) 4,882 Rentals and landing fees 3 1,183 194 (3) 1,377 Depreciation and amortization 1 1,184 116 - 1,301 Fuel - 1,288 39 - 1,327 Maintenance and repairs - 1,005 72 - 1,077 Intercompany charges, net (181) 44 137 - - Other 117 2,557 812 (94) 3,392 - 18,375 4,253 (177) 22,451 OPERATING INCOME - 1,977 304 - 2,281 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,383 134 - (1,517) - Interest, net (156) 14 5 - (137) Intercompany charges, net 162 (159) (3) - - Other, net (6) (9) 10 - (5) INCOME BEFORE INCOME TAXES 1,383 1,957 316 (1,517) 2,139 Provision for income taxes - 666 90 - 756 NET INCOME $ 1,383 $ 1,291 $ 226 $ (1,517) $ 1,383 COMPREHENSIVE INCOME $ 1,346 $ 1,271 $ 70 $ (1,517) $ 1,170 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (376) $ 2,550 $ 473 $ (12) $ 2,635 INVESTING ACTIVITIES Capital expenditures - (2,455) (226) - (2,681) Proceeds from asset dispositions and other 84 13 3 - 100 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 84 (2,442) (223) - (2,581) FINANCING ACTIVITIES Net transfers from (to) Parent 24 (94) 70 - - Payment on loan between subsidiaries 8 (15) 7 - - Intercompany dividends - 1 (1) - - Principal payments on debt - (31) (12) - (43) Proceeds from stock issuances 164 - - - 164 Dividends paid (213) - - - (213) Purchase of treasury stock (334) - - - (334) Other, net 4 (2) (7) - (5) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (347) (141) 57 - (431) Effect of exchange rate changes on cash (5) 1 (94) - (98) Net (decrease) increase in cash and cash equivalents (644) (32) 213 (12) (475) Cash and cash equivalents at beginning of period 1,974 326 1,277 (43) 3,534 Cash and cash equivalents at end of period $ 1,330 $ 294 $ 1,490 $ (55) $ 3,059 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (847) $ 3,054 $ 213 $ 34 $ 2,454 INVESTING ACTIVITIES Capital expenditures - (2,482) (80) - (2,562) Proceeds from asset dispositions and other (5) 21 (4) - 12 CASH USED IN INVESTING ACTIVITIES (5) (2,461) (84) - (2,550) FINANCING ACTIVITIES Net transfers from (to) Parent 648 (691) 43 - - Payment on loan between subsidiaries - 106 (106) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (2) (15) - (17) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 62 - - - 62 Dividends paid (141) - - - (141) Purchase of treasury stock (1,101) - - - (1,101) Other, net (8) (27) 27 - (8) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 698 (594) (71) - 33 Effect of exchange rate changes on cash - (12) (41) - (53) Net (decrease) increase in cash and cash equivalents (154) (13) 17 34 (116) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 2,229 $ 474 $ 988 $ (44) $ 3,647

General (Policies)

General (Policies)	6 Months Ended
	Nov. 30, 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, 2016 (“Annual Report”) . Accordingly, significant accounting policies and other disclosures normally pr ovided have been omitted since such items are disclosed i n our Annual Report . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2016 , the results of our operations for the three- and six- month periods ended November 30, 2016 and 2015 and cash flows for the six-month periods ended November 30, 2016 and 2015 . Operating results for the three- and six- month period s ended November 30, 2016 are not necessarily indicative of the results that may be expected for the year ending May 31, 2017 . Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2017 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. RECLASSIFICATIONS. Reclassifications have been made to the May 31, 2016 condensed consolidated balance sheets to conform to the current year's presentation of debt issuance costs. See recent accounting guidance below for additional information.

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Nov. 30, 2016
Acquisition (Tables) [Abstract]
Schedule of Purchase Price Allocation	Current assets (1) $ 1,920 Property and equipment 993 Goodwill 3,346 Identifiable intangible assets 530 Other non-current assets 295 Current liabilities (2) (1,644) Long-term liabilities (546) Total purchase price $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and other accrued expenses.
Schedule of Intangible Assets with Finite Lives	Intangible assets with finite lives Customer relationships (12-year useful life) $ 420 Technology (4-year useful life) 30 Trademarks (4-year useful life) 80 Total intangible assets $ 530

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Nov. 30, 2016
Accumulated Other Comprehensive Income (Loss) (Tables) [Abstract]
Schedule Of Accumulated Other Comprehensive Income (Loss)	Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign currency translation loss: Balance at beginning of period $ (502) $ (391) $ (514) $ (253) Translation adjustments (230) (33) (218) (171) Balance at end of period (732) (424) (732) (424) Retirement plans adjustments: Balance at beginning of period 326 401 345 425 Reclassifications from AOCI (19) (18) (38) (42) Balance at end of period 307 383 307 383 Accumulated other comprehensive loss at end of period $ (425) $ (41) $ (425) $ (41)
Reclassification Out Of Accumulated Other Comprehensive Income (Loss)	Amount Reclassified from Affected Line Item in the AOCI Income Statement Three Months Ended Six Months Ended 2016 2015 2016 2015 Amortization of retirement plans prior service credits, before tax $ 30 $ 29 $ 60 $ 60 Salaries and employee benefits Income tax benefit (11) (11) (22) (18) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 18 $ 38 $ 42 Net income

Computation of Earnings Per S21

Computation of Earnings Per Share (Tables)	6 Months Ended
	Nov. 30, 2016
Computation Of Earnings Per Share (Tables) [Abstract]
Schedule of basic and diluted earnings per common share	Three Months Ended Six Months Ended 2016 2015 2016 2015 Basic earnings per common share: Net earnings allocable to common shares (1) $ 700 $ 690 $ 1,414 $ 1,382 Weighted-average common shares 266 279 266 281 Basic earnings per common share $ 2.63 $ 2.47 $ 5.32 $ 4.92 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 700 $ 690 $ 1,414 $ 1,382 Weighted-average common shares 266 279 266 281 Dilutive effect of share-based awards 4 4 4 3 Weighted-average diluted shares 270 283 270 284 Diluted earnings per common share $ 2.59 $ 2.44 $ 5.24 $ 4.86 Anti-dilutive options excluded from diluted earnings per common share 5.1 3.7 5.1 3.6 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Nov. 30, 2016
Retirement Plan (Tables) [Abstract]
Schedule of Retirement Plan Costs	Three Months Ended Six Months Ended 2016 2015 2016 2015 Defined benefit pension plans $ 58 $ 54 $ 116 $ 107 Defined contribution plans 112 103 231 205 Postretirement healthcare plans 19 20 38 41 $ 189 $ 177 $ 385 $ 353
Schedule of Net Periodic Benefit Cost	Three Months Ended Six Months Ended Pension Plans 2016 2015 2016 2015 Service cost $ 180 $ 165 $ 360 $ 331 Interest cost 293 295 586 590 Expected return on plan assets (386) (377) (772) (754) Amortization of prior service credit and other (29) (29) (58) (60) $ 58 $ 54 $ 116 $ 107 Three Months Ended Six Months Ended Postretirement Healthcare Plans 2016 2015 2016 2015 Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 10 10 20 21 $ 19 $ 20 $ 38 $ 41
Schedule of Pension Plans Contributions	2016 2015 Required $ 250 $ 8 Voluntary 250 322 $ 500 $ 330

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Nov. 30, 2016
Business Segment Information (Tables) [Abstract]
Schedule of Segment Information	Three Months Ended Six Months Ended 2016 2015 2016 2015 Revenues FedEx Express segment $ 6,743 $ 6,588 $ 13,399 $ 13,179 TNT Express segment 1,899 N/A 3,703 N/A FedEx Ground segment 4,419 4,050 8,709 7,880 FedEx Freight segment 1,597 1,547 3,255 3,148 FedEx Services segment 414 403 809 793 Eliminations and other (141) (135) (281) (268) $ 14,931 $ 12,453 $ 29,594 $ 24,732 Operating Income FedEx Express segment $ 636 $ 622 $ 1,260 $ 1,167 TNT Express segment 70 N/A 56 N/A FedEx Ground segment 465 526 1,075 1,063 FedEx Freight segment 88 101 223 233 Eliminations, corporate and other (92) (112) (183) (182) $ 1,167 $ 1,137 $ 2,431 $ 2,281

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Nov. 30, 2016
Commitments (Tables) [Abstract]
Schedule of Purchase Commitments	Aircraft and Aircraft-Related Other (1) Total 2017 (remainder) $ 371 $ 524 $ 895 2018 1,767 473 2,240 2019 1,717 335 2,052 2020 1,925 239 2,164 2021 1,460 154 1,614 Thereafter 4,205 119 4,324 Total $ 11,445 $ 1,844 $ 13,289 (1) Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments	B767F B777F Total 2017 (remainder) 2 - 2 2018 16 2 18 2019 15 2 17 2020 16 3 19 2021 10 3 13 Thereafter 16 6 22 Total 75 16 91
Schedule of Future Minimum Lease Payments, Operating Leases	Operating Leases Aircraft Total and Related Facilities Operating Equipment and Other Leases 2017 (remainder) $ 367 $ 1,051 $ 1,418 2018 402 1,928 2,330 2019 345 1,715 2,060 2020 262 1,520 1,782 2021 204 1,372 1,576 Thereafter 376 8,436 8,812 Total $ 1,956 $ 16,022 $ 17,978

Supplemental Cash Flow Inform25

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Nov. 30, 2016
Supplemental Cash Flow (Tables) [Abstract]
Supplemental Cash Flow Table	2016 2015 Cash payments for: Interest (net of capitalized interest) $ 232 $ 146 Income taxes $ 216 $ 831 Income tax refunds received (13) (3) Cash tax payments, net $ 203 $ 828

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	6 Months Ended
	Nov. 30, 2016
Condensed Consolidating Financial Statements (Tables) [Abstract]
Condensed Consolidating Balance Sheets	CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,330 $ 294 $ 1,490 $ (55) $ 3,059 Receivables, less allowances 1 4,753 2,872 (51) 7,575 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 370 822 226 - 1,418 Total current assets 1,701 5,869 4,588 (106) 12,052 PROPERTY AND EQUIPMENT, AT COST 22 45,735 3,161 - 48,918 Less accumulated depreciation and amortization 17 22,360 1,234 - 23,611 Net property and equipment 5 23,375 1,927 - 25,307 INTERCOMPANY RECEIVABLE 2,359 1,602 - (3,961) - GOODWILL - 1,571 5,350 - 6,921 INVESTMENT IN SUBSIDIARIES 25,967 3,558 - (29,525) - OTHER ASSETS 3,041 867 1,052 (2,892) 2,068 $ 33,073 $ 36,842 $ 12,917 $ (36,484) $ 46,348 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 26 $ 17 $ - $ 43 Accrued salaries and employee benefits 43 1,247 475 - 1,765 Accounts payable 112 1,441 1,507 (106) 2,954 Accrued expenses 887 1,434 724 - 3,045 Total current liabilities 1,042 4,148 2,723 (106) 7,807 LONG-TERM DEBT, LESS CURRENT PORTION 13,281 245 27 - 13,553 INTERCOMPANY PAYABLE - - 3,961 (3,961) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,792 248 (2,892) 2,148 Other liabilities 4,219 3,501 589 - 8,309 Total other long-term liabilities 4,219 8,293 837 (2,892) 10,457 STOCKHOLDERS' INVESTMENT 14,531 24,156 5,369 (29,525) 14,531 $ 33,073 $ 36,842 $ 12,917 $ (36,484) $ 46,348 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,974 $ 326 $ 1,277 $ (43) $ 3,534 Receivables, less allowances 1 4,461 2,831 (41) 7,252 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 233 724 246 - 1,203 Total current assets 2,208 5,511 4,354 (84) 11,989 PROPERTY AND EQUIPMENT, AT COST 22 43,760 3,236 - 47,018 Less accumulated depreciation and amortization 17 21,566 1,151 - 22,734 Net property and equipment 5 22,194 2,085 - 24,284 INTERCOMPANY RECEIVABLE 2,437 1,284 - (3,721) - GOODWILL - 1,571 5,176 - 6,747 INVESTMENT IN SUBSIDIARIES 24,766 3,697 - (28,463) - OTHER ASSETS 3,359 967 1,851 (3,238) 2,939 $ 32,775 $ 35,224 $ 13,466 $ (35,506) $ 45,959 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ - $ 13 $ 16 $ - $ 29 Accrued salaries and employee benefits 54 1,377 541 - 1,972 Accounts payable 8 1,501 1,519 (84) 2,944 Accrued expenses 883 1,411 769 - 3,063 Total current liabilities 945 4,302 2,845 (84) 8,008 LONG-TERM DEBT, LESS CURRENT PORTION 13,451 245 37 - 13,733 INTERCOMPANY PAYABLE - - 3,721 (3,721) - OTHER LONG-TERM LIABILITIES Deferred income taxes - 4,436 369 (3,238) 1,567 Other liabilities 4,595 3,375 897 - 8,867 Total other long-term liabilities 4,595 7,811 1,266 (3,238) 10,434 STOCKHOLDERS' INVESTMENT 13,784 22,866 5,597 (28,463) 13,784 $ 32,775 $ 35,224 $ 13,466 $ (35,506) $ 45,959
Condensed Consolidating Statements of Comprehensive Income	CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,997 $ 4,004 $ (70) $ 14,931 OPERATING EXPENSES: Salaries and employee benefits 29 4,161 1,163 - 5,353 Purchased transportation - 2,074 1,383 (26) 3,431 Rentals and landing fees 2 625 177 (2) 802 Depreciation and amortization - 634 106 - 740 Fuel - 584 74 - 658 Maintenance and repairs - 504 75 - 579 Intercompany charges, net (89) 38 51 - - Other 58 1,429 756 (42) 2,201 - 10,049 3,785 (70) 13,764 OPERATING INCOME - 948 219 - 1,167 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 700 54 - (754) - Interest, net (123) 4 - - (119) Intercompany charges, net 124 (64) (60) - - Other, net (1) (5) 36 - 30 INCOME BEFORE INCOME TAXES 700 937 195 (754) 1,078 Provision for income taxes - 291 87 - 378 NET INCOME $ 700 $ 646 $ 108 $ (754) $ 700 COMPREHENSIVE INCOME $ 682 $ 635 $ (112) $ (754) $ 451 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 10,479 $ 2,048 $ (74) $ 12,453 OPERATING EXPENSES: Salaries and employee benefits 26 3,926 618 - 4,570 Purchased transportation - 1,941 622 (25) 2,538 Rentals and landing fees 2 596 86 (2) 682 Depreciation and amortization 1 601 51 - 653 Fuel - 597 18 - 615 Maintenance and repairs - 497 32 - 529 Intercompany charges, net (112) 84 28 - - Other 83 1,293 400 (47) 1,729 - 9,535 1,855 (74) 11,316 OPERATING INCOME - 944 193 - 1,137 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 691 73 - (764) - Interest, net (81) 6 1 - (74) Intercompany charges, net 84 (83) (1) - - Other, net (3) (6) 1 - (8) INCOME BEFORE INCOME TAXES 691 934 194 (764) 1,055 Provision for income taxes - 309 55 - 364 NET INCOME $ 691 $ 625 $ 139 $ (764) $ 691 COMPREHENSIVE INCOME $ 672 $ 620 $ 112 $ (764) $ 640 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 21,900 $ 7,834 $ (140) $ 29,594 OPERATING EXPENSES: Salaries and employee benefits 65 8,267 2,332 - 10,664 Purchased transportation - 3,991 2,734 (54) 6,671 Rentals and landing fees 3 1,245 347 (3) 1,592 Depreciation and amortization - 1,245 234 - 1,479 Fuel - 1,162 146 - 1,308 Maintenance and repairs - 1,030 147 - 1,177 Intercompany charges, net (179) 100 79 - - Other 111 2,802 1,442 (83) 4,272 - 19,842 7,461 (140) 27,163 OPERATING INCOME - 2,058 373 - 2,431 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,415 110 - (1,525) - Interest, net (245) 13 - - (232) Intercompany charges, net 246 (145) (101) - - Other, net (1) (10) 32 - 21 INCOME BEFORE INCOME TAXES 1,415 2,026 304 (1,525) 2,220 Provision for income taxes - 671 134 - 805 NET INCOME $ 1,415 $ 1,355 $ 170 $ (1,525) $ 1,415 COMPREHENSIVE INCOME $ 1,378 $ 1,337 $ (31) $ (1,525) $ 1,159 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated REVENUES $ - $ 20,352 $ 4,557 $ (177) $ 24,732 OPERATING EXPENSES: Salaries and employee benefits 60 7,739 1,296 - 9,095 Purchased transportation - 3,375 1,587 (80) 4,882 Rentals and landing fees 3 1,183 194 (3) 1,377 Depreciation and amortization 1 1,184 116 - 1,301 Fuel - 1,288 39 - 1,327 Maintenance and repairs - 1,005 72 - 1,077 Intercompany charges, net (181) 44 137 - - Other 117 2,557 812 (94) 3,392 - 18,375 4,253 (177) 22,451 OPERATING INCOME - 1,977 304 - 2,281 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,383 134 - (1,517) - Interest, net (156) 14 5 - (137) Intercompany charges, net 162 (159) (3) - - Other, net (6) (9) 10 - (5) INCOME BEFORE INCOME TAXES 1,383 1,957 316 (1,517) 2,139 Provision for income taxes - 666 90 - 756 NET INCOME $ 1,383 $ 1,291 $ 226 $ (1,517) $ 1,383 COMPREHENSIVE INCOME $ 1,346 $ 1,271 $ 70 $ (1,517) $ 1,170
Condensed Consolidating Statements of Cash Flows	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2016 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (376) $ 2,550 $ 473 $ (12) $ 2,635 INVESTING ACTIVITIES Capital expenditures - (2,455) (226) - (2,681) Proceeds from asset dispositions and other 84 13 3 - 100 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 84 (2,442) (223) - (2,581) FINANCING ACTIVITIES Net transfers from (to) Parent 24 (94) 70 - - Payment on loan between subsidiaries 8 (15) 7 - - Intercompany dividends - 1 (1) - - Principal payments on debt - (31) (12) - (43) Proceeds from stock issuances 164 - - - 164 Dividends paid (213) - - - (213) Purchase of treasury stock (334) - - - (334) Other, net 4 (2) (7) - (5) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (347) (141) 57 - (431) Effect of exchange rate changes on cash (5) 1 (94) - (98) Net (decrease) increase in cash and cash equivalents (644) (32) 213 (12) (475) Cash and cash equivalents at beginning of period 1,974 326 1,277 (43) 3,534 Cash and cash equivalents at end of period $ 1,330 $ 294 $ 1,490 $ (55) $ 3,059 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended November 30, 2015 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (847) $ 3,054 $ 213 $ 34 $ 2,454 INVESTING ACTIVITIES Capital expenditures - (2,482) (80) - (2,562) Proceeds from asset dispositions and other (5) 21 (4) - 12 CASH USED IN INVESTING ACTIVITIES (5) (2,461) (84) - (2,550) FINANCING ACTIVITIES Net transfers from (to) Parent 648 (691) 43 - - Payment on loan between subsidiaries - 106 (106) - - Intercompany dividends - 20 (20) - - Principal payments on debt - (2) (15) - (17) Proceeds from debt issuance 1,238 - - - 1,238 Proceeds from stock issuances 62 - - - 62 Dividends paid (141) - - - (141) Purchase of treasury stock (1,101) - - - (1,101) Other, net (8) (27) 27 - (8) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 698 (594) (71) - 33 Effect of exchange rate changes on cash - (12) (41) - (53) Net (decrease) increase in cash and cash equivalents (154) (13) 17 34 (116) Cash and cash equivalents at beginning of period 2,383 487 971 (78) 3,763 Cash and cash equivalents at end of period $ 2,229 $ 474 $ 988 $ (44) $ 3,647

General (Details 1)

General (Details 1) € in Millions, $ in Millions		6 Months Ended
		Nov. 30, 2016USD ($)	Nov. 30, 2016EUR (€)	May 31, 2016USD ($)
Business Acquisition [Line Items]
Goodwill		$ 6,921		$ 6,747
TNT acquisition [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		280	€ 250
Current Assets	[1]	1,920
Property and equipment		993
Goodwill		3,346
Identifiable Intangible assets		530
Other non-current assets		295
Current liabilities	[2]	(1,644)
Long-term liabilities		(546)
Total purchase price		4,894	€ 4,400
TNT untendered shares		26
TNT tendered shares		261
Purchase price adjustment to Goodwill after acquisition		$ 382
[1]	Primarily accounts receivable and cash.
[2]	Primarily accounts payable and other accrued expenses.

General (Details 2)

General (Details 2) - TNT Express Intangible [Member] $ in Millions	6 Months Ended
	Nov. 30, 2016USD ($)
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finte lives	$ 420
Intangible Finite-lived assets useful life	12 years
Technology [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finte lives	$ 30
Intangible Finite-lived assets useful life	4 years
Trademarks [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finte lives	$ 80
Intangible Finite-lived assets useful life	4 years

General (Details 3)

General (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Stock Based Compensation Details [Abstract]
Stock-based compensation	$ 36	$ 33	$ 93	$ 86

General (Details 4)

General (Details 4) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Nov. 30, 2016	Nov. 30, 2016	Nov. 30, 2015
Treasury Shares [Abstract]
Treasury Stock Acquired, Average Cost Per Share	$ 172.25	$ 164.04
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	16,900,000	16,900,000
Number of Shares Repurchased	700,000	2,000,000
Payments for Repurchase of Common Stock	$ 112	$ 334	$ 1,101

General (Details 5)

General (Details 5)	3 Months Ended
	Nov. 30, 2016$ / shares
Dividends [Abstract]
Dividends Payable, Date Declared	Nov. 18, 2016
Dividends Payable Amount Per Share	$ 0.40
Dividends Payable, Date To Be Paid	Jan. 3, 2017
Dividends Payable, Date Of Record	Dec. 12, 2016

General (Details 7)

General (Details 7) - ASU 201609 [Member] $ / shares in Units, $ in Millions	6 Months Ended
	Nov. 30, 2016USD ($)$ / shares
Employee Service Share Based Compensation Aggregate Disclosures [Line Items]
Share-based payment tax benefit | $	$ 21
Share-based payment change effect on diluted EPS | $ / shares	$ 0.07

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015	May 31, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Foreign currency translation gain (loss): Beginning balance	$ (502)	$ (391)	$ (514)	$ (253)
Translation adjustment	(230)	(33)	(218)	(171)
Foreign currency translation gain (loss): Ending balance	(732)	(424)	(732)	(424)
Retirement plans adjustments: Beginning Balance	326	401	345	425
Reclassification from AOCI	19	18	38	42
Retirement plans adjustments: Ending Balance	307	383	307	383
Accumulated other comprehensive (loss) income at end of period	(425)	(41)	(425)	(41)	$ (169)
Amortization of retirement plans prior service credits, before tax	30	29	60	60
Income tax benefit	(11)	(11)	(22)	(18)
AOCI reclassifications, net of tax	$ 19	$ 18	$ 38	$ 42

Financing Arrangements (Details

Financing Arrangements (Details 1) - USD ($) $ in Millions	Nov. 30, 2016	May 31, 2016
Financing Arrangements (Details) [Line Items]
Long Term Debt Exclusive of Capital Leases Carrying Value	$ 13,500	$ 13,700
Long Term Debt Exclusive Of Capital Leases Fair Value	$ 13,800	$ 14,300
Long-term debt weighted average interest rate	3.60%

Financing Arrangements (Detai35

Financing Arrangements (Details 2) $ in Millions	6 Months Ended
	Nov. 30, 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	180.00%
Letters Of Credit Outstanding	$ 319
Letter of Credit [Member]
Line Of Credit Facility [Line Items]
Line Of Credit Facility Maximum Borrowing Capacity	500
LineOfCreditFacilityRemainingBorrowingCapacity	$ 181

Computation of Earnings Per S36

Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Basic earnings per common share:
Net earnings allocable to common shares	$ 700	$ 690	$ 1,414	$ 1,382
Weighted-average common shares	266	279	266	281
Basic earnings per common share	$ 2.63	$ 2.47	$ 5.32	$ 4.92
Diluted earnings per common share:
Net earnings allocable to common shares	$ 700	$ 690	$ 1,414	$ 1,382
Weighted-average common shares	266	279	266	281
Dilutive effect of share-based awards	4	4	4	3
Weighted-average diluted shares	270	283	270	284
Diluted earnings per common share	$ 2.59	$ 2.44	$ 5.24	$ 4.86
Anti-dilutive options excluded from diluted earnings per common share	5.1	3.7	5.1	3.6

Retirement Plans (Details 1)

Retirement Plans (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Pension and Other Postretirement Benefit Expense [Abstract]
Defined benefit pension plans	$ 58	$ 54	$ 116	$ 107
Defined contribution plans	112	103	231	205
Postretirement healthcare plans	19	20	38	41
Retirement plans costs	$ 189	$ 177	$ 385	$ 353

Retirement Plans (Details 2)

Retirement Plans (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Pension Plans
Net Periodic Benefit Cost
Service cost	$ 180	$ 165	$ 360	$ 331
Interest cost	293	295	586	590
Expected return on plan assets	(386)	(377)	(772)	(754)
Amortization of prior service credit and other	(29)	(29)	(58)	(60)
Total net periodic benefit cost	58	54	116	107
Postretirement Healthcare Plans
Net Periodic Benefit Cost
Service cost	9	10	18	20
Interest cost	10	10	20	21
Total net periodic benefit cost	$ 19	$ 20	$ 38	$ 41

Retirement Plans (Details 3)

Retirement Plans (Details 3) - USD ($) $ in Millions	Dec. 15, 2016	Nov. 30, 2016	Nov. 30, 2015
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		$ 500	$ 330
Required U.S. Pension Plan Contribution [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		250	8
Voluntary U.S. Pension Plan Contribution [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer		$ 250	$ 322
December 2016 contribution
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer	$ 250
December 2016 contribution required [Member]
Pension Plan Contributions [Line Items]
Defined Benefit Plan Contributions By Employer	$ 178

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 14,931	$ 12,453	$ 29,594	$ 24,732
Operating Income	1,167	1,137	2,431	2,281
FedEx Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	6,743	6,588	13,399	13,179
Operating Income	636	622	1,260	1,167
TNT Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,899		3,703
Operating Income	70		56
FedEx Ground Segment [Member]
Segment Reporting Information [Line Items]
Revenues	4,419	4,050	8,709	7,880
Operating Income	465	526	1,075	1,063
FedEx Freight Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,597	1,547	3,255	3,148
Operating Income	88	101	223	233
FedEx Services Segment [Member]
Segment Reporting Information [Line Items]
Revenues	414	403	809	793
Eliminations, corporate and other
Segment Reporting Information [Line Items]
Revenues	(141)	(135)	(281)	(268)
Operating Income	$ (92)	$ (112)	$ (183)	$ (182)

Commitments (Details 1)

Commitments (Details 1) $ in Millions	Nov. 30, 2016USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	$ 895
2,018	2,240
2,019	2,052
2,020	2,164
2,021	1,614
Thereafter	4,324
Total	13,289
Aircraft And Related Equipment Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	371
2,018	1,767
2,019	1,717
2,020	1,925
2,021	1,460
Thereafter	4,205
Total	11,445
Other Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	524	[1]
2,018	473	[1]
2,019	335	[1]
2,020	239	[1]
2,021	154	[1]
Thereafter	119	[1]
Total	$ 1,844	[1]
[1]	Primarily equipment and advertising contracts.

Commitments (Details 2)

Commitments (Details 2)	6 Months Ended
	Nov. 30, 2016
Schedule of Aircraft Commitments [Line Items]
2017 (remainder)	2
2,018	18
2,019	17
2,020	19
2,021	13
Thereafter	22
Total	91
Boeing 777 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2,018	2
2,019	2
2,020	3
2,021	3
Thereafter	6
Total	16
Boeing 767 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2017 (remainder)	2
2,018	16
2,019	15
2,020	16
2,021	10
Thereafter	16
Total	75

Commitments (Details 3)

Commitments (Details 3) $ in Millions	Nov. 30, 2016USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	$ 1,418
2,018	2,330
2,019	2,060
2,020	1,782
2,021	1,576
Thereafter	8,812
Total	17,978
Aircraft and Related Equipment [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	367
2,018	402
2,019	345
2,020	262
2,021	204
Thereafter	376
Total	1,956
Facilities and Other [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	1,051
2,018	1,928
2,019	1,715
2,020	1,520
2,021	1,372
Thereafter	8,436
Total	$ 16,022

Commitments (Details 4)

Commitments (Details 4) $ in Millions	6 Months Ended
	Nov. 30, 2016USD ($)
Other Aircraft Commitments Disclosure [Abstract]
Boeing 777F Conditional Aircraft Commitments	7
Boeing 767F Conditional Aircraft Commitments	4
Other Commitment Disclosures [Line Items]
Deposit and Progress Payments	$ 430

Contingencies (Details)

Contingencies (Details) $ in Millions	6 Months Ended
	Nov. 30, 2016USD ($)
Independent Contractor California [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount	$ 228
Multidistrict Independent Contractor Litigation [Member]
Loss Contingency [Line Items]
Litigation Settlement Amount	$ 204

Supplemental Cash Flow Inform46

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015
Supplemental Cash Flow Information [Abstract]
Interest (net of capitalized interest)	$ 232	$ 146
Income taxes	216	831
Income tax refunds received	(13)	(3)
Cash tax payments, net	$ 203	$ 828

Condensed Consolidating Finan47

Condensed Consolidating Financial Statements (Details 1) $ in Millions	Nov. 30, 2016USD ($)
Guarantor Obligations [Abstract]
Debt Guarantee	$ 13,400

Condensed Consolidating Finan48

Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions	Nov. 30, 2016	May 31, 2016	Nov. 30, 2015	May 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 3,059	$ 3,534	$ 3,647	$ 3,763
Receivables, less allowances	7,575	7,252
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	1,418	1,203
Total current assets	12,052	11,989
PROPERTY AND EQUIPMENT, AT COST	48,918	47,018
Less accumulated depreciation and amortization	23,611	22,734
Net property and equipment	25,307	24,284
Goodwill	6,921	6,747
Other assets	2,068	2,939
ASSETS	46,348	45,959
CURRENT LIABILITIES
Current portion of long-term debt	43	29
Accrued salaries and employee benefits	1,765	1,972
Accounts payable	2,954	2,944
Accrued expenses	3,045	3,063
Total current liabilities	7,807	8,008
LONG-TERM DEBT, LESS CURRENT PORTION	13,553	13,733
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,148	1,567
Other liabilities	8,309	8,867
Total other long-term liabilities	10,457	10,434
STOCKHOLDERS' INVESTMENT	14,531	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	46,348	45,959
Consolidation Eliminations Member
CURRENT ASSETS
Cash and cash equivalents	(55)	(43)	(44)	(78)
Receivables, less allowances	(51)	(41)
Total current assets	(106)	(84)
INTERCOMPANY RECEIVABLE	(3,961)	(3,721)
INVESTMENT IN SUBSIDIARIES	(29,525)	(28,463)
Other assets	(2,892)	(3,238)
ASSETS	(36,484)	(35,506)
CURRENT LIABILITIES
Accounts payable	(106)	(84)
Total current liabilities	(106)	(84)
INTERCOMPANY PAYABLE	(3,961)	(3,721)
OTHER LONG-TERM LIABILITIES
Deferred income taxes	(2,892)	(3,238)
Total other long-term liabilities	(2,892)	(3,238)
STOCKHOLDERS' INVESTMENT	(29,525)	(28,463)
LIABILITIES AND STOCKHOLDERS' INVESTMENT	(36,484)	(35,506)
Parent Company Member
CURRENT ASSETS
Cash and cash equivalents	1,330	1,974	2,229	2,383
Receivables, less allowances	1	1
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	370	233
Total current assets	1,701	2,208
PROPERTY AND EQUIPMENT, AT COST	22	22
Less accumulated depreciation and amortization	17	17
Net property and equipment	5	5
INTERCOMPANY RECEIVABLE	2,359	2,437
INVESTMENT IN SUBSIDIARIES	25,967	24,766
Other assets	3,041	3,359
ASSETS	33,073	32,775
CURRENT LIABILITIES
Accrued salaries and employee benefits	43	54
Accounts payable	112	8
Accrued expenses	887	883
Total current liabilities	1,042	945
LONG-TERM DEBT, LESS CURRENT PORTION	13,281	13,451
OTHER LONG-TERM LIABILITIES
Other liabilities	4,219	4,595
Total other long-term liabilities	4,219	4,595
STOCKHOLDERS' INVESTMENT	14,531	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	33,073	32,775
Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	294	326	474	487
Receivables, less allowances	4,753	4,461
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	822	724
Total current assets	5,869	5,511
PROPERTY AND EQUIPMENT, AT COST	45,735	43,760
Less accumulated depreciation and amortization	22,360	21,566
Net property and equipment	23,375	22,194
INTERCOMPANY RECEIVABLE	1,602	1,284
Goodwill	1,571	1,571
INVESTMENT IN SUBSIDIARIES	3,558	3,697
Other assets	867	967
ASSETS	36,842	35,224
CURRENT LIABILITIES
Current portion of long-term debt	26	13
Accrued salaries and employee benefits	1,247	1,377
Accounts payable	1,441	1,501
Accrued expenses	1,434	1,411
Total current liabilities	4,148	4,302
LONG-TERM DEBT, LESS CURRENT PORTION	245	245
OTHER LONG-TERM LIABILITIES
Deferred income taxes	4,792	4,436
Other liabilities	3,501	3,375
Total other long-term liabilities	8,293	7,811
STOCKHOLDERS' INVESTMENT	24,156	22,866
LIABILITIES AND STOCKHOLDERS' INVESTMENT	36,842	35,224
Non Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	1,490	1,277	$ 988	$ 971
Receivables, less allowances	2,872	2,831
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	226	246
Total current assets	4,588	4,354
PROPERTY AND EQUIPMENT, AT COST	3,161	3,236
Less accumulated depreciation and amortization	1,234	1,151
Net property and equipment	1,927	2,085
Goodwill	5,350	5,176
Other assets	1,052	1,851
ASSETS	12,917	13,466
CURRENT LIABILITIES
Current portion of long-term debt	17	16
Accrued salaries and employee benefits	475	541
Accounts payable	1,507	1,519
Accrued expenses	724	769
Total current liabilities	2,723	2,845
LONG-TERM DEBT, LESS CURRENT PORTION	27	37
INTERCOMPANY PAYABLE	3,961	3,721
OTHER LONG-TERM LIABILITIES
Deferred income taxes	248	369
Other liabilities	589	897
Total other long-term liabilities	837	1,266
STOCKHOLDERS' INVESTMENT	5,369	5,597
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 12,917	$ 13,466

Condensed Consolidating Finan49

Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2016	Nov. 30, 2015	Nov. 30, 2016	Nov. 30, 2015
Condensed Financial Statements Captions [Line Items]
REVENUES	$ 14,931	$ 12,453	$ 29,594	$ 24,732
OPERATING EXPENSES:
Salaries and employee benefits	5,353	4,570	10,664	9,095
Purchased transportation	3,431	2,538	6,671	4,882
Rentals and landing fees	802	682	1,592	1,377
Depreciation and amortization	740	653	1,479	1,301
Fuel	658	615	1,308	1,327
Maintenance and repairs	579	529	1,177	1,077
Other	2,201	1,729	4,272	3,392
OPERATING EXPENSES	13,764	11,316	27,163	22,451
OPERATING INCOME	1,167	1,137	2,431	2,281
OTHER INCOME (EXPENSE):
Interest, net	(119)	(74)	(232)	(137)
Other, net	30	(8)	21	(5)
INCOME BEFORE INCOME TAXES	1,078	1,055	2,220	2,139
PROVISION FOR INCOME TAXES	378	364	805	756
NET INCOME	700	691	1,415	1,383
COMPREHENSIVE INCOME	451	640	1,159	1,170
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
REVENUES	(70)	(74)	(140)	(177)
OPERATING EXPENSES:
Purchased transportation	(26)	(25)	(54)	(80)
Rentals and landing fees	(2)	(2)	(3)	(3)
Other	(42)	(47)	(83)	(94)
OPERATING EXPENSES	(70)	(74)	(140)	(177)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(754)	(764)	(1,525)	(1,517)
INCOME BEFORE INCOME TAXES	(754)	(764)	(1,525)	(1,517)
NET INCOME	(754)	(764)	(1,525)	(1,517)
COMPREHENSIVE INCOME	(754)	(764)	(1,525)	(1,517)
Parent Company Member
OPERATING EXPENSES:
Salaries and employee benefits	29	26	65	60
Rentals and landing fees	2	2	3	3
Depreciation and amortization		1		1
Intercompany charges, net	(89)	(112)	(179)	(181)
Other	58	83	111	117
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	700	691	1,415	1,383
Interest, net	(123)	(81)	(245)	(156)
Intercompany charges, net	124	84	246	162
Other, net	(1)	(3)	(1)	(6)
INCOME BEFORE INCOME TAXES	700	691	1,415	1,383
NET INCOME	700	691	1,415	1,383
COMPREHENSIVE INCOME	682	672	1,378	1,346
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	10,997	10,479	21,900	20,352
OPERATING EXPENSES:
Salaries and employee benefits	4,161	3,926	8,267	7,739
Purchased transportation	2,074	1,941	3,991	3,375
Rentals and landing fees	625	596	1,245	1,183
Depreciation and amortization	634	601	1,245	1,184
Fuel	584	597	1,162	1,288
Maintenance and repairs	504	497	1,030	1,005
Intercompany charges, net	38	84	100	44
Other	1,429	1,293	2,802	2,557
OPERATING EXPENSES	10,049	9,535	19,842	18,375
OPERATING INCOME	948	944	2,058	1,977
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	54	73	110	134
Interest, net	4	6	13	14
Intercompany charges, net	(64)	(83)	(145)	(159)
Other, net	(5)	(6)	(10)	(9)
INCOME BEFORE INCOME TAXES	937	934	2,026	1,957
PROVISION FOR INCOME TAXES	291	309	671	666
NET INCOME	646	625	1,355	1,291
COMPREHENSIVE INCOME	635	620	1,337	1,271
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	4,004	2,048	7,834	4,557
OPERATING EXPENSES:
Salaries and employee benefits	1,163	618	2,332	1,296
Purchased transportation	1,383	622	2,734	1,587
Rentals and landing fees	177	86	347	194
Depreciation and amortization	106	51	234	116
Fuel	74	18	146	39
Maintenance and repairs	75	32	147	72
Intercompany charges, net	51	28	79	137
Other	756	400	1,442	812
OPERATING EXPENSES	3,785	1,855	7,461	4,253
OPERATING INCOME	219	193	373	304
OTHER INCOME (EXPENSE):
Interest, net		1		5
Intercompany charges, net	(60)	(1)	(101)	(3)
Other, net	36	1	32	10
INCOME BEFORE INCOME TAXES	195	194	304	316
PROVISION FOR INCOME TAXES	87	55	134	90
NET INCOME	108	139	170	226
COMPREHENSIVE INCOME	$ (112)	$ 112	$ (31)	$ 70

Condensed Consolidating Finan50

Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Nov. 30, 2016	Nov. 30, 2016	Nov. 30, 2015
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 2,635	$ 2,454
Investing Activities:
Capital expenditures		(2,681)	(2,562)
Proceeds from asset dispositions and other		100	12
Cash used in investing activities		(2,581)	(2,550)
Financing Activities:
Principal payments on debt		(43)	(17)
Proceeds from debt issuance			1,238
Proceeds from stock issuances		164	62
Dividends paid		(213)	(141)
Purchases of treasury stock	$ (112)	(334)	(1,101)
Other, net		(5)	(8)
Cash (used in) provided by financing activities		(431)	33
Effect of exchange rate changes on cash		(98)	(53)
Net decrease in cash and cash equivalents		(475)	(116)
Cash and cash equivalents at beginning of period		3,534	3,763
Cash and cash equivalents at end of period	3,059	3,059	3,647
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(12)	34
Financing Activities:
Net decrease in cash and cash equivalents		(12)	34
Cash and cash equivalents at beginning of period		(43)	(78)
Cash and cash equivalents at end of period	(55)	(55)	(44)
Parent Company Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(376)	(847)
Investing Activities:
Proceeds from asset dispositions and other		84	(5)
Cash used in investing activities		84	(5)
Financing Activities:
Net transfers from (to) Parent		24	648
Payment on loan between subsidiaries		8
Proceeds from debt issuance			1,238
Proceeds from stock issuances		164	62
Dividends paid		(213)	(141)
Purchases of treasury stock		(334)	(1,101)
Other, net		4	(8)
Cash (used in) provided by financing activities		(347)	698
Effect of exchange rate changes on cash		(5)
Net decrease in cash and cash equivalents		(644)	(154)
Cash and cash equivalents at beginning of period		1,974	2,383
Cash and cash equivalents at end of period	1,330	1,330	2,229
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		2,550	3,054
Investing Activities:
Capital expenditures		(2,455)	(2,482)
Proceeds from asset dispositions and other		13	21
Cash used in investing activities		(2,442)	(2,461)
Financing Activities:
Net transfers from (to) Parent		(94)	(691)
Payment on loan between subsidiaries		(15)	106
Intercompany dividends		1	20
Principal payments on debt		(31)	(2)
Other, net		(2)	(27)
Cash (used in) provided by financing activities		(141)	(594)
Effect of exchange rate changes on cash		1	(12)
Net decrease in cash and cash equivalents		(32)	(13)
Cash and cash equivalents at beginning of period		326	487
Cash and cash equivalents at end of period	294	294	474
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		473	213
Investing Activities:
Capital expenditures		(226)	(80)
Proceeds from asset dispositions and other		3	(4)
Cash used in investing activities		(223)	(84)
Financing Activities:
Net transfers from (to) Parent		70	43
Payment on loan between subsidiaries		7	(106)
Intercompany dividends		(1)	(20)
Principal payments on debt		(12)	(15)
Other, net		(7)	27
Cash (used in) provided by financing activities		57	(71)
Effect of exchange rate changes on cash		(94)	(41)
Net decrease in cash and cash equivalents		213	17
Cash and cash equivalents at beginning of period		1,277	971
Cash and cash equivalents at end of period	$ 1,490	$ 1,490	$ 988