FedEx (FDX) 10-Q 22 Mar 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Feb. 28, 2017	Mar. 20, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Feb. 28, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	FedEx Corporation
Entity Central Index Key	1,048,911
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		267,374,954
Trading Symbol	FDX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 3,173	$ 3,534
Receivables, less allowances of $222 and $178	7,418	7,252
Spare parts, supplies and fuel, less allowances of $231 and $218	527	496
Prepaid expenses and other	820	707
Total current assets	11,938	11,989
PROPERTY AND EQUIPMENT, AT COST	49,752	47,018
Less accumulated depreciation and amortization	24,139	22,734
Net property and equipment	25,613	24,284
OTHER LONG-TERM ASSETS
Goodwill	7,000	6,747
Other assets	2,230	2,939
Total other long-term assets	9,230	9,686
ASSETS	46,781	45,959
CURRENT LIABILITIES
Current portion of long-term debt	45	29
Accrued salaries and employee benefits	1,690	1,972
Accounts payable	2,707	2,944
Accrued expenses	3,008	3,063
Total current liabilities	7,450	8,008
LONG-TERM DEBT, LESS CURRENT PORTION	14,713	13,733
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,299	1,567
Pension, postretirement healthcare and other benefit obligations	4,670	6,227
Self-insurance accruals	1,376	1,314
Deferred lease obligations	456	400
Deferred gains, principally related to aircraft transactions	142	155
Other liabilities	491	771
Total other long-term liabilities	9,434	10,434
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS’ INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of February 28, 2017 and May 31, 2016	32	32
Additional paid-in capital	2,976	2,892
Retained earnings	19,830	18,371
Accumulated other comprehensive loss	(334)	(169)
Treasury stock, at cost	(7,320)	(7,342)
Total common stockholders’ investment	15,184	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 46,781	$ 45,959

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016
CURRENT ASSETS
Allowances for receivables	$ 222	$ 178
Allowances for spare parts, supplies and fuel	$ 231	$ 218
COMMON STOCKHOLDERS’ INVESTMENT
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	318,000,000	318,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Income Statement [Abstract]
REVENUES	$ 14,997	$ 12,654	$ 44,591	$ 37,386
OPERATING EXPENSES:
Salaries and employee benefits	5,395	4,712	16,059	13,807
Purchased transportation	3,498	2,623	10,169	7,505
Rentals and landing fees	834	744	2,426	2,121
Depreciation and amortization	762	663	2,241	1,964
Fuel	735	537	2,043	1,864
Maintenance and repairs	588	504	1,765	1,581
Other	2,160	2,007	6,432	5,399
OPERATING EXPENSES	13,972	11,790	41,135	34,241
OPERATING INCOME	1,025	864	3,456	3,145
OTHER INCOME (EXPENSE):
Interest, net	(122)	(81)	(354)	(218)
Other, net	(4)	(1)	17	(6)
OTHER INCOME (EXPENSE)	(126)	(82)	(337)	(224)
INCOME BEFORE INCOME TAXES	899	782	3,119	2,921
PROVISION FOR INCOME TAXES	337	275	1,142	1,031
NET INCOME	$ 562	$ 507	$ 1,977	$ 1,890
EARNINGS PER COMMON SHARE:
Basic	$ 2.11	$ 1.86	$ 7.43	$ 6.79
Diluted	2.07	1.84	7.31	6.71
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.40	$ 0.25	$ 1.60	$ 1

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME	$ 562	$ 507	$ 1,977	$ 1,890
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustments, net of tax of $3, $11, $19 and $28	110	(99)	(108)	(270)
Amortization of prior service credit, net of tax of $12, $12, $34 and $30	(19)	(19)	(57)	(61)
Other comprehensive loss	91	(118)	(165)	(331)
COMPREHENSIVE INCOME	$ 653	$ 389	$ 1,812	$ 1,559

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Other Comprehensive Income, Tax Amounts
Foreign currency translation adjustments, tax	$ (3)	$ 11	$ (19)	$ 28
Amortization of prior service credit, tax	$ 12	$ 12	$ 34	$ 30

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Operating Activities:
Net income	$ 1,977	$ 1,890
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,241	1,964
Provision for uncollectible accounts	115	90
Stock-based compensation	123	115
Deferred income taxes and other noncash items	474	288
Gain from sale of investment	(35)
Changes in assets and liabilities:
Receivables	(340)	(78)
Other assets	(235)	(322)
Accounts payable and other liabilities	(1,642)	(146)
Other, net	(33)	(5)
Cash provided by operating activities	2,645	3,796
Investing Activities:
Capital expenditures	(3,790)	(3,562)
Proceeds from asset dispositions and other	123	(17)
Cash used in investing activities	(3,667)	(3,579)
Financing Activities:
Principal payments on debt	(49)	(28)
Proceeds from debt issuances	1,190	1,238
Proceeds from stock issuances	265	79
Dividends paid	(319)	(210)
Purchase of treasury stock	(358)	(2,133)
Other, net	2	(7)
Cash provided by (used in) financing activities	731	(1,061)
Effect of exchange rate changes on cash	(70)	(78)
Net decrease in cash and cash equivalents	(361)	(922)
Cash and cash equivalents at beginning of period	3,534	3,763
Cash and cash equivalents at end of period	$ 3,173	$ 2,841

General

General	9 Months Ended
	Feb. 28, 2017
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 provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of February 28, 2017, the results of our operations for the three- and nine-month periods ended February 28, 2017 and February 29, 2016 and cash flows for the nine-month periods ended February 28, 2017 and February 29, 2016. Operating results for the three- and nine-month periods ended February 28, 2017 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). All shares associated with the transaction were tendered or transferred as of February 28, 2017. We funded the acquisition with proceeds from an 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. 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 Federal Express Corporation’s (“FedEx Express”) 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 reflects updates to property and equipment and identifiable intangible assets from the May 31, 2016, August 31, 2016 and November 30, 2016 estimates, resulting in a net increase to goodwill of $417 million. These updates reflect the valuation work completed to date by third party experts and the receipt of additional 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 the fourth quarter of 2017, 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 periods for fixed assets, customer intangibles and certain liabilities are longer than for the other categories noted below. We will complete our purchase price allocation during the fourth quarter of 2017. Current assets (1) $ 1,917 Property and equipment 1,026 Goodwill 3,381 Identifiable intangible assets 505 Other non-current assets 307 Current liabilities (2) (1,679 ) Long-term liabilities (563 ) Total purchase price $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses. As a result of this acquisition, we recognized a preliminary value of $3.4 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 life) $ 405 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 505 EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of FedEx Express, who represent a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. This collective bargaining agreement is scheduled to become amendable in November 2021, after a six-year term. In addition to our pilots at FedEx Express, FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain”) (formerly 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 $31 million for the three-month period ended February 28, 2017 and $123 million for the nine-month period ended February 28, 2017. Our stock-based compensation expense was $29 million for the three-month period ended February 29, 2016 and $115 million for the nine-month period ended February 29, 2016. 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. 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 a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. 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. The guidance also provides clarification of the presentation of certain components of share-based awards in the statement of cash flows. Additionally, the guidance allows companies to make a policy election to account for forfeitures either upon occurrence or by estimating forfeitures. We have elected to continue estimating forfeitures expected to occur in order to determine the amount of compensation cost to be recognized each period and to apply the cash flow classification guidance prospectively. Excess tax benefits are now classified as an operating activity rather than a financing activity. The adoption of the new standard had a benefit of $21 million to net income ($0.07 per diluted share) for the third quarter and a benefit of $42 million to net income ($0.14 per diluted share) for the nine months of 2017. In March 2017, the FASB issued an Accounting Standards Update that changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. This new guidance requires entities to report the service cost component in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component outside of income from operations. This standard will impact our operating income but will have no material impact on our net income or earnings per share. This new guidance will be effective for our fiscal year beginning June 1, 2018 (fiscal 2019) and will be applied retrospectively. We believe that no other new accounting guidance was adopted or issued during the nine months of 2017 that is relevant to the readers of our financial statements. TREASURY SHARES. In 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 third quarter of 2017, we repurchased 0.13 million shares of FedEx common stock at an average price of $187.34 per share for a total of $24 million. During the nine months of 2017, we repurchased 2.2 million shares of FedEx common stock at an average price of $165.44 per share for a total of $358 million. As of February 28, 2017, 16.8 million shares remained under the share repurchase authorization. DIVIDENDS DECLARED PER COMMON SHARE. On February 17, 2017, our Board of Directors declared a quarterly dividend of $0.40 per share of common stock. The dividend will be paid on April 3, 2017 to stockholders of record as of the close of business on March 13, 2017. Each quarterly dividend payment is subject to review and approval by our Board of Directors, and we evaluate our dividend payment amount on an annual basis at the end of each fiscal year.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Feb. 28, 2017
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	(2) Accumulated Other Comprehensive Income (Loss) The following table provides changes in accumulated other comprehensive loss (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended February 28, 2017 and February 29, 2016 (in millions; amounts in parentheses indicate debits to AOCI): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Foreign currency translation loss: Balance at beginning of period $ (732 ) $ (424 ) $ (514 ) $ (253 ) Translation adjustments 110 (99 ) (108 ) (270 ) Balance at end of period (622 ) (523 ) (622 ) (523 ) Retirement plans adjustments: Balance at beginning of period 307 383 345 425 Reclassifications from AOCI (19 ) (19 ) (57 ) (61 ) Balance at end of period 288 364 288 364 Accumulated other comprehensive loss at end of period $ (334 ) $ (159 ) $ (334 ) $ (159 ) The following table presents details of the reclassifications from AOCI for the periods ended February 28, 2017 and February 29, 2016 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from AOCI Affected Line Item in the Income Statement Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization of retirement plans prior service credits, before tax $ 31 $ 31 $ 91 $ 91 Salaries and employee benefits Income tax benefit (12 ) (12 ) (34 ) (30 ) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 19 $ 57 $ 61 Net income

Financing Arrangements

Financing Arrangements	9 Months Ended
	Feb. 28, 2017
Debt And Capital Lease Obligations [Abstract]
Financing Arrangements	(3) Financing Arrangements We have a shelf registration statement with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock. During the quarter, we issued $1.2 billion of senior unsecured debt under our current shelf registration statement, comprised of $450 million of 3.30% fixed-rate notes due in March 2027, and $750 million of 4.40% fixed-rate notes due in January 2047. Interest on these notes is paid semiannually. We used the net proceeds for a voluntary incremental contribution in January 2017 to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) and for working capital and general corporate purposes. We have a five-year $1.75 billion revolving credit facility that expires in November 2020. The facility, which includes a $500 million letter of credit sublimit, is available to finance our operations and other cash flow needs. The agreement contains a financial covenant, which requires us to maintain a ratio of debt to consolidated earnings (excluding non-cash pension mark-to-market adjustments and non-cash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 1.9 to 1.0 at February 28, 2017. We believe this covenant is the only significant restrictive covenant in our revolving credit agreement. Our revolving credit agreement contains other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants of our revolving credit agreement and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. As of February 28, 2017, no commercial paper was outstanding. However, we had a total of $317 million in letters of credit outstanding at February 28, 2017, with $183 million of the letter of credit sublimit unused under our revolving credit facility. Long-term debt, exclusive of capital leases, had carrying values of $14.7 billion at February 28, 2017 and $13.7 billion at May 31, 2016, compared with estimated fair values of $15.2 billion at February 28, 2017 and $14.3 billion at May 31, 2016. The annualized weighted average interest rate on long-term debt was 3.6% for the nine months ended February 28, 2017. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.

Computation of Earnings Per Sha

Computation of Earnings Per Share	9 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
Computation of Earnings Per Share	(4) Computation of Earnings Per Share The calculation of basic and diluted earnings per common share for the periods ended February 28, 2017 and February 29, 2016 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic earnings per common share: Net earnings allocable to common shares (1) $ 561 $ 506 $ 1,974 $ 1,888 Weighted-average common shares 266 272 266 278 Basic earnings per common share $ 2.11 $ 1.86 $ 7.43 $ 6.79 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 561 $ 506 $ 1,974 $ 1,888 Weighted-average common shares 266 272 266 278 Dilutive effect of share-based awards 5 3 4 3 Weighted-average diluted shares 271 275 270 281 Diluted earnings per common share $ 2.07 $ 1.84 $ 7.31 $ 6.71 Anti-dilutive options excluded from diluted earnings per common share 4.0 4.8 4.7 4.0 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans

Retirement Plans	9 Months Ended
	Feb. 28, 2017
Compensation And Retirement Disclosure [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. Our retirement plans costs for the periods ended February 28, 2017 and February 29, 2016 were as follows (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Defined benefit pension plans $ 57 $ 53 $ 173 $ 160 Defined contribution plans 117 104 348 304 Postretirement healthcare plans 19 20 57 61 $ 193 $ 177 $ 578 $ 525 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 28, 2017 and February 29, 2016 included the following components (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Pension Plans Service cost $ 180 $ 166 $ 540 $ 497 Interest cost 293 295 879 885 Expected return on plan assets (384 ) (377 ) (1,156 ) (1,131 ) Amortization of prior service credit and other (32 ) (31 ) (90 ) (91 ) $ 57 $ 53 $ 173 $ 160 Three Months Ended Nine Months Ended 2017 2016 2017 2016 Postretirement Healthcare Plans Service cost $ 9 $ 10 $ 27 $ 30 Interest cost 10 10 30 31 $ 19 $ 20 $ 57 $ 61 Contributions to our U.S. Pension Plans for the nine-month periods ended February 28, 2017 and February 29, 2016 were as follows (in millions): 2017 2016 Required $ 444 $ 8 Voluntary 1,306 487 $ 1,750 $ 495 In March 2017, we made $250 million in contributions to our U.S. Pension Plans, of which $15 million was required. Our U.S. Pension Plans have ample funds to meet expected benefit payments. We anticipate our U.S. Pension Plans will make payments in the fourth quarter of 2017 aggregating in excess of $1 billion to former employees who elected to receive their benefits early under a voluntary program offered to qualifying participants during the third quarter of 2017.

Business Segment Information

Business Segment Information	9 Months Ended
	Feb. 28, 2017
Segment Reporting Disclosure Of Entitys Reportable Segments [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) FedEx Supply Chain (third-party logistics) (formerly GENCO) FedEx Freight Segment FedEx Freight (LTL freight transportation) FedEx Custom Critical (time-critical transportation) FedEx Services Segment FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services and back-office functions) FedEx Office (document and business services and package acceptance) During the third quarter of 2017, we rebranded GENCO to FedEx Supply Chain. 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 businesses. These costs are not allocated to the business segments. The following table provides a reconciliation of reportable segment revenues and operating income to our unaudited condensed consolidated financial statement totals for the periods ended February 28, 2017 and February 29, 2016 (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Revenues FedEx Express segment $ 6,779 $ 6,557 $ 20,178 $ 19,736 TNT Express segment 1,790 N/A 5,493 N/A FedEx Ground segment 4,688 4,408 13,397 12,288 FedEx Freight segment 1,492 1,447 4,747 4,595 FedEx Services segment 389 384 1,198 1,177 Eliminations and other (141 ) (142 ) (422 ) (410 ) $ 14,997 $ 12,654 $ 44,591 $ 37,386 Operating Income FedEx Express segment $ 555 $ 595 $ 1,815 $ 1,762 TNT Express segment 2 N/A 58 N/A FedEx Ground segment 515 557 1,590 1,620 FedEx Freight segment 41 56 264 289 Eliminations, corporate and other (88 ) (344 ) (271 ) (526 ) $ 1,025 $ 864 $ 3,456 $ 3,145

Commitments

Commitments	9 Months Ended
	Feb. 28, 2017
Commitments [Abstract]
Commitments	(7) Commitments As of February 28, 2017, 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) $ 219 $ 218 $ 437 2018 1,970 534 2,504 2019 1,730 375 2,105 2020 1,926 267 2,193 2021 1,348 183 1,531 Thereafter 4,199 258 4,457 Total $ 11,392 $ 1,835 $ 13,227 (1) Primarily equipment and advertising contracts. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of February 28, 2017, our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and six Boeing 777 Freighter (“B777F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. During the quarter, FedEx Express entered into agreements to accelerate the delivery of one B767F aircraft to 2017 from 2018 and two B777F aircraft to 2018 from 2023. We had $488 million in deposits and progress payments as of February 28, 2017 on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our consolidated balance sheets. Aircraft and aircraft-related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of February 28, 2017 with the year of expected delivery: B767F B777F Total 2017 (remainder) 1 - 1 2018 15 4 19 2019 15 2 17 2020 16 3 19 2021 10 3 13 Thereafter 16 4 20 Total 73 16 89 A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at February 28, 2017 is as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2017 (remainder) $ 70 $ 547 $ 617 2018 398 1,992 2,390 2019 343 1,799 2,142 2020 261 1,595 1,856 2021 203 1,441 1,644 Thereafter 360 8,780 9,140 Total $ 1,635 $ 16,154 $ 17,789 Future minimum lease payments under capital leases were immaterial at February 28, 2017. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations.

Contingencies

Contingencies	9 Months Ended
	Feb. 28, 2017
Loss Contingency [Abstract]
Contingencies	(8) Contingencies Independent Contractor — Lawsuits and State Administrative Proceedings. FedEx Ground is involved in class-action lawsuits (including 21 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 were employees, not independent contractors. Additionally, the Seventh Circuit referred the other 19 cases to a representative of the court for purposes of setting a case management conference to address briefing and argument for those cases. During the second quarter of 2015, we established an accrual for the estimated probable loss in the Kansas case. In the second quarter of 2016 the Kansas case settled, and we increased the accrual to the amount of the settlement. 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 were previously scheduled for January 23 and 24, 2017, but were held on March 13 and 14, 2017. On March 15, 2017, the court issued orders indicating that it would grant final approval of each settlement if the Seventh Circuit remands the cases on appeal for the purpose of considering and granting final approval. The multidistrict litigation court remanded the other eight certified class actions back to the district courts where they were originally filed because its summary judgment ruling did not completely dispose of all of the claims in those lawsuits. Seven 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 held a final approval hearing on March 1, 2017, and granted final approval on March 6, 2017. The case in California was appealed to the Ninth Circuit Court of Appeals, where the court reversed the district court decisions and held that the plaintiffs in California were employees as a matter of law and remanded the cases to the district court for further proceedings. In the first quarter of 2015, we recognized an accrual for the then-estimated probable loss in this case. In June 2015, the parties in the California case reached an agreement to settle the matter for $228 million, and in the fourth quarter of 2015 we increased the accrual to that amount. The court entered final judgment on June 20, 2016, and two objectors to the settlement filed appeals with the Ninth Circuit. One objector has settled with plaintiffs’ counsel, and we expect the appeal by the second objector to be briefed by the end of the fourth 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. In addition, we are defending contractor-model cases that are not or are no longer part of the multidistrict litigation. These cases are in varying stages of litigation. We do not expect to incur a material loss in these matters; however, it is reasonably possible that potential loss in some of these lawsuits or changes to the independent contractor status of FedEx Ground’s owner-operators could be material. In these cases, we continue to evaluate what facts may arise in the course of discovery and what legal rulings the courts may render and how these facts and rulings might impact the loss. For a number of reasons, we are not currently able to estimate a range of reasonably possible loss in these cases. The number and identities of plaintiffs in these lawsuits are uncertain, as they are dependent on how the class of drivers is defined and how many individuals will qualify based on whatever criteria may be established. In addition, the parties have conducted only very limited discovery into damages in certain of these cases, which could vary considerably from plaintiff to plaintiff and be dependent on evidence pertaining to individual plaintiffs, which has yet to be produced in the cases. Further, the range of potential loss could be impacted substantially by future rulings by the court, including on the merits of the claims, on FedEx Ground’s defenses, and on evidentiary issues. As a consequence of these factors, as well as others that are specific to these cases, we are not currently able to estimate a range of reasonably possible loss. We do not believe that a material loss is probable in these matters. Adverse determinations in matters related to FedEx Ground’s independent contractors could, among other things, entitle certain owner-operators and their drivers to the reimbursement of certain expenses and to the benefit of wage-and-hour laws and result in employment and withholding tax and benefit liability for FedEx Ground. We believe that FedEx Ground’s owner-operators are properly classified as independent contractors and that FedEx Ground is not an employer of the drivers of the company’s independent contractors. City and State of New York Cigarette Suit. The City of New York and the State of New York filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground’s alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York’s Public Health Law, as well as common law nuisance claims. In April 2016, the two lawsuits were consolidated and will now proceed as one lawsuit. The first-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, and the second-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers; none of these shippers continue to ship in our network. 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 common law nuisance claim has been dismissed entirely and the New York Public Health Law claim has been limited to claims arising after September 27, 2013, when an amendment to that law provided enforcement authority to the City of New York and State of New York. Other claims, including the RICO claims, remain in both lawsuits. The likelihood of loss is reasonably possible, but the amount of loss cannot be estimated at this stage of the litigation and we expect the amount of any loss to be immaterial. Environmental Matters . SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that management reasonably believes could exceed $100,000. On September 9, 2016, FedEx Supply Chain received a written offer from several District Attorneys’ Offices in California to settle a civil action that the District Attorneys intend to file against FedEx Supply Chain for alleged violations of the state’s hazardous waste regulations. Specifically, the District Attorneys’ Offices allege FedEx Supply Chain unlawfully disposed of hazardous waste at one of its California facilities and caused the illegal transportation and disposal of hazardous waste from the retail stores of a FedEx Supply Chain customer at this same facility. The District Attorneys allege these violations began in 2006 and continued until the facility closed in the spring of 2015. We believe an immaterial loss in this matter is probable. The District Attorneys are also investigating FedEx Supply Chain’s hazardous waste activities at eight additional facilities within California. We will pursue all available remedies against the sellers of GENCO to recover any losses in these matters. Other Matter. During the third quarter of 2017, FedEx Trade Networks informed U.S. Customs and Border Protection that in connection with certain customs entries it may have made improper claims for (i) reduced-duty treatment and (ii) duty-free treatment. FedEx Trade Networks is continuing to review these matters. Loss in these matters is probable, but given the early stage of these matters we cannot yet determine the amount or range of potential loss, but a material loss is reasonably possible FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime or were not provided work breaks or other benefits. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations or cash flows.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Feb. 28, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	(9) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the nine-month periods ended February 28, 2017 and February 29, 2016 was as follows (in millions): 2017 2016 Cash payments for: Interest (net of capitalized interest) $ 400 $ 284 Income taxes $ 294 $ 919 Income tax refunds received (16 ) (3 ) Cash tax payments, net $ 278 $ 916

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	9 Months Ended
	Feb. 28, 2017
Condensed Financial Information Of Parent Company Only Disclosure [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 $14.6 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) February 28, 2017 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,475 $ 301 $ 1,442 $ (45 ) $ 3,173 Receivables, less allowances 1 4,636 2,824 (43 ) 7,418 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 292 819 236 — 1,347 Total current assets 1,768 5,756 4,502 (88 ) 11,938 PROPERTY AND EQUIPMENT, AT COST 22 46,448 3,282 — 49,752 Less accumulated depreciation and amortization 18 22,810 1,311 — 24,139 Net property and equipment 4 23,638 1,971 — 25,613 INTERCOMPANY RECEIVABLE 2,216 1,442 — (3,658 ) — GOODWILL — 1,571 5,429 — 7,000 INVESTMENT IN SUBSIDIARIES 26,637 2,744 — (29,381 ) — OTHER ASSETS 3,043 1,031 1,052 (2,896 ) 2,230 $ 33,668 $ 36,182 $ 12,954 $ (36,023 ) $ 46,781 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 31 $ 14 $ — $ 45 Accrued salaries and employee benefits 52 1,184 454 — 1,690 Accounts payable 124 1,354 1,317 (88 ) 2,707 Accrued expenses 811 1,419 778 — 3,008 Total current liabilities 987 3,988 2,563 (88 ) 7,450 LONG-TERM DEBT, LESS CURRENT PORTION 14,443 244 26 — 14,713 INTERCOMPANY PAYABLE — — 3,658 (3,658 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,978 217 (2,896 ) 2,299 Other liabilities 3,054 3,345 736 — 7,135 Total other long-term liabilities 3,054 8,323 953 (2,896 ) 9,434 STOCKHOLDERS’ INVESTMENT 15,184 23,627 5,754 (29,381 ) 15,184 $ 33,668 $ 36,182 $ 12,954 $ (36,023 ) $ 46,781 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 February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 11,275 $ 3,794 $ (72 ) $ 14,997 OPERATING EXPENSES: Salaries and employee benefits 29 4,210 1,156 — 5,395 Purchased transportation — 2,219 1,306 (27 ) 3,498 Rentals and landing fees 1 657 177 (1 ) 834 Depreciation and amortization 1 649 112 — 762 Fuel — 657 78 — 735 Maintenance and repairs 1 514 73 — 588 Intercompany charges, net (87 ) (33 ) 120 — — Other 55 1,428 721 (44 ) 2,160 — 10,301 3,743 (72 ) 13,972 OPERATING INCOME — 974 51 — 1,025 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 562 (41 ) — (521 ) — Interest, net (129 ) 6 1 — (122 ) Intercompany charges, net 130 (79 ) (51 ) — — Other, net (1 ) (118 ) 115 — (4 ) INCOME BEFORE INCOME TAXES 562 742 116 (521 ) 899 Provision for income taxes — 280 57 — 337 NET INCOME $ 562 $ 462 $ 59 $ (521 ) $ 562 COMPREHENSIVE INCOME $ 543 $ 444 $ 187 $ (521 ) $ 653 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 10,838 $ 1,892 $ (76 ) $ 12,654 OPERATING EXPENSES: Salaries and employee benefits 32 4,072 608 — 4,712 Purchased transportation — 2,106 545 (28 ) 2,623 Rentals and landing fees 1 660 84 (1 ) 744 Depreciation and amortization — 608 55 — 663 Fuel — 520 17 — 537 Maintenance and repairs — 471 33 — 504 Intercompany charges, net (344 ) 294 50 — — Other 311 1,344 399 (47 ) 2,007 — 10,075 1,791 (76 ) 11,790 OPERATING INCOME — 763 101 — 864 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 507 86 — (593 ) — Interest, net (90 ) 6 3 — (81 ) Intercompany charges, net 95 (105 ) 10 — — Other, net (5 ) (1 ) 5 — (1 ) INCOME BEFORE INCOME TAXES 507 749 119 (593 ) 782 Provision for income taxes — 249 26 — 275 NET INCOME $ 507 $ 500 $ 93 $ (593 ) $ 507 COMPREHENSIVE INCOME $ 488 $ 487 $ 7 $ (593 ) $ 389 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 33,175 $ 11,628 $ (212 ) $ 44,591 OPERATING EXPENSES: Salaries and employee benefits 94 12,477 3,488 — 16,059 Purchased transportation — 6,210 4,040 (81 ) 10,169 Rentals and landing fees 4 1,902 524 (4 ) 2,426 Depreciation and amortization 1 1,894 346 — 2,241 Fuel — 1,819 224 — 2,043 Maintenance and repairs 1 1,544 220 — 1,765 Intercompany charges, net (266 ) 67 199 — — Other 166 4,230 2,163 (127 ) 6,432 — 30,143 11,204 (212 ) 41,135 OPERATING INCOME — 3,032 424 — 3,456 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,977 69 — (2,046 ) — Interest, net (374 ) 19 1 — (354 ) Intercompany charges, net 376 (224 ) (152 ) — — Other, net (2 ) (128 ) 147 — 17 INCOME BEFORE INCOME TAXES 1,977 2,768 420 (2,046 ) 3,119 Provision for income taxes — 951 191 — 1,142 NET INCOME $ 1,977 $ 1,817 $ 229 $ (2,046 ) $ 1,977 COMPREHENSIVE INCOME $ 1,921 $ 1,781 $ 156 $ (2,046 ) $ 1,812 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 31,190 $ 6,449 $ (253 ) $ 37,386 OPERATING EXPENSES: Salaries and employee benefits 92 11,811 1,904 — 13,807 Purchased transportation — 5,481 2,132 (108 ) 7,505 Rentals and landing fees 4 1,843 278 (4 ) 2,121 Depreciation and amortization 1 1,792 171 — 1,964 Fuel — 1,808 56 — 1,864 Maintenance and repairs — 1,476 105 — 1,581 Intercompany charges, net (525 ) 338 187 — — Other 428 3,901 1,211 (141 ) 5,399 — 28,450 6,044 (253 ) 34,241 OPERATING INCOME — 2,740 405 — 3,145 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,890 220 — (2,110 ) — Interest, net (246 ) 20 8 — (218 ) Intercompany charges, net 257 (264 ) 7 — — Other, net (11 ) (10 ) 15 — (6 ) INCOME BEFORE INCOME TAXES 1,890 2,706 435 (2,110 ) 2,921 Provision for income taxes — 915 116 — 1,031 NET INCOME $ 1,890 $ 1,791 $ 319 $ (2,110 ) $ 1,890 COMPREHENSIVE INCOME $ 1,834 $ 1,758 $ 77 $ (2,110 ) $ 1,559 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,497 ) $ 3,615 $ 529 $ (2 ) $ 2,645 INVESTING ACTIVITIES Capital expenditures — (3,456 ) (334 ) — (3,790 ) Proceeds from asset dispositions and other 85 16 22 — 123 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 85 (3,440 ) (312 ) — (3,667 ) FINANCING ACTIVITIES Net transfers from (to) Parent 117 (148 ) 31 — — Payment on loan between subsidiaries 36 (15 ) (21 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (33 ) (16 ) — (49 ) Proceeds from debt issuance 1,190 — — — 1,190 Proceeds from stock issuances 265 — — — 265 Dividends paid (319 ) — — — (319 ) Purchase of treasury stock (358 ) — — — (358 ) Other, net (8 ) (12 ) 22 — 2 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 923 (207 ) 15 — 731 Effect of exchange rate changes on cash (10 ) 7 (67 ) — (70 ) Net (decrease) increase in cash and cash equivalents (499 ) (25 ) 165 (2 ) (361 ) Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,475 $ 301 $ 1,442 $ (45 ) $ 3,173 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (833 ) $ 4,213 $ 370 $ 46 $ 3,796 INVESTING ACTIVITIES Capital expenditures — (3,434 ) (128 ) — (3,562 ) Proceeds from asset dispositions and other (55 ) 26 12 — (17 ) CASH USED IN INVESTING ACTIVITIES (55 ) (3,408 ) (116 ) — (3,579 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,036 (1,039 ) 3 — — Payment on loan between subsidiaries — 109 (109 ) — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (7 ) (21 ) — (28 ) Proceeds from debt issuance 1,238 — — — 1,238 Proceeds from stock issuances 79 — — — 79 Dividends paid (210 ) — — — (210 ) Purchase of treasury stock (2,133 ) — — — (2,133 ) Other, net (7 ) (27 ) 27 — (7 ) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 3 (944 ) (120 ) — (1,061 ) Effect of exchange rate changes on cash — (17 ) (61 ) — (78 ) Net (decrease) increase in cash and cash equivalents (885 ) (156 ) 73 46 (922 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,498 $ 331 $ 1,044 $ (32 ) $ 2,841

General (Policies)

General (Policies)	9 Months Ended
	Feb. 28, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the year ended May 31, 2016 (“Annual Report”). Accordingly, significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of February 28, 2017, the results of our operations for the three- and nine-month periods ended February 28, 2017 and February 29, 2016 and cash flows for the nine-month periods ended February 28, 2017 and February 29, 2016. Operating results for the three- and nine-month periods ended February 28, 2017 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)	9 Months Ended
	Feb. 28, 2017
Acquisition Tables [Abstract]
Schedule of Purchase Price Allocation	Current assets (1) $ 1,917 Property and equipment 1,026 Goodwill 3,381 Identifiable intangible assets 505 Other non-current assets 307 Current liabilities (2) (1,679 ) Long-term liabilities (563 ) Total purchase price $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses.
Schedule of Intangible Assets with Finite Lives	Intangible assets with finite lives Customer relationships (12-year life) $ 405 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 505

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Feb. 28, 2017
Accumulated Other Comprehensive Income Loss Tables [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Foreign currency translation loss: Balance at beginning of period $ (732 ) $ (424 ) $ (514 ) $ (253 ) Translation adjustments 110 (99 ) (108 ) (270 ) Balance at end of period (622 ) (523 ) (622 ) (523 ) Retirement plans adjustments: Balance at beginning of period 307 383 345 425 Reclassifications from AOCI (19 ) (19 ) (57 ) (61 ) Balance at end of period 288 364 288 364 Accumulated other comprehensive loss at end of period $ (334 ) $ (159 ) $ (334 ) $ (159 )
Reclassification Out of Accumulated Other Comprehensive Income (Loss)	Amount Reclassified from AOCI Affected Line Item in the Income Statement Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization of retirement plans prior service credits, before tax $ 31 $ 31 $ 91 $ 91 Salaries and employee benefits Income tax benefit (12 ) (12 ) (34 ) (30 ) Provision for income taxes AOCI reclassifications, net of tax $ 19 $ 19 $ 57 $ 61 Net income

Computation of Earnings Per S21

Computation of Earnings Per Share (Tables)	9 Months Ended
	Feb. 28, 2017
Computation Of Earnings Per Share Tables [Abstract]
Schedule of basic and diluted earnings per common share	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic earnings per common share: Net earnings allocable to common shares (1) $ 561 $ 506 $ 1,974 $ 1,888 Weighted-average common shares 266 272 266 278 Basic earnings per common share $ 2.11 $ 1.86 $ 7.43 $ 6.79 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 561 $ 506 $ 1,974 $ 1,888 Weighted-average common shares 266 272 266 278 Dilutive effect of share-based awards 5 3 4 3 Weighted-average diluted shares 271 275 270 281 Diluted earnings per common share $ 2.07 $ 1.84 $ 7.31 $ 6.71 Anti-dilutive options excluded from diluted earnings per common share 4.0 4.8 4.7 4.0 (1) Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans (Tables)

Retirement Plans (Tables)	9 Months Ended
	Feb. 28, 2017
Retirement Plan Tables [Abstract]
Schedule of Retirement Plan Costs	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Defined benefit pension plans $ 57 $ 53 $ 173 $ 160 Defined contribution plans 117 104 348 304 Postretirement healthcare plans 19 20 57 61 $ 193 $ 177 $ 578 $ 525
Schedule of Net Periodic Benefit Cost	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Pension Plans Service cost $ 180 $ 166 $ 540 $ 497 Interest cost 293 295 879 885 Expected return on plan assets (384 ) (377 ) (1,156 ) (1,131 ) Amortization of prior service credit and other (32 ) (31 ) (90 ) (91 ) $ 57 $ 53 $ 173 $ 160 Three Months Ended Nine Months Ended 2017 2016 2017 2016 Postretirement Healthcare Plans Service cost $ 9 $ 10 $ 27 $ 30 Interest cost 10 10 30 31 $ 19 $ 20 $ 57 $ 61
Schedule of Pension Plans Contributions	2017 2016 Required $ 444 $ 8 Voluntary 1,306 487 $ 1,750 $ 495

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Feb. 28, 2017
Business Segment Information Tables [Abstract]
Schedule of Segment Information	Three Months Ended Nine Months Ended 2017 2016 2017 2016 Revenues FedEx Express segment $ 6,779 $ 6,557 $ 20,178 $ 19,736 TNT Express segment 1,790 N/A 5,493 N/A FedEx Ground segment 4,688 4,408 13,397 12,288 FedEx Freight segment 1,492 1,447 4,747 4,595 FedEx Services segment 389 384 1,198 1,177 Eliminations and other (141 ) (142 ) (422 ) (410 ) $ 14,997 $ 12,654 $ 44,591 $ 37,386 Operating Income FedEx Express segment $ 555 $ 595 $ 1,815 $ 1,762 TNT Express segment 2 N/A 58 N/A FedEx Ground segment 515 557 1,590 1,620 FedEx Freight segment 41 56 264 289 Eliminations, corporate and other (88 ) (344 ) (271 ) (526 ) $ 1,025 $ 864 $ 3,456 $ 3,145

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Feb. 28, 2017
Commitments Tables [Abstract]
Schedule of Purchase Commitments	Aircraft and Aircraft-Related Other (1) Total 2017 (remainder) $ 219 $ 218 $ 437 2018 1,970 534 2,504 2019 1,730 375 2,105 2020 1,926 267 2,193 2021 1,348 183 1,531 Thereafter 4,199 258 4,457 Total $ 11,392 $ 1,835 $ 13,227 (1) Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments	B767F B777F Total 2017 (remainder) 1 - 1 2018 15 4 19 2019 15 2 17 2020 16 3 19 2021 10 3 13 Thereafter 16 4 20 Total 73 16 89
Schedule of Future Minimum Lease Payments, Operating Leases	Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2017 (remainder) $ 70 $ 547 $ 617 2018 398 1,992 2,390 2019 343 1,799 2,142 2020 261 1,595 1,856 2021 203 1,441 1,644 Thereafter 360 8,780 9,140 Total $ 1,635 $ 16,154 $ 17,789

Supplemental Cash Flow Inform25

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Feb. 28, 2017
Supplemental Cash Flow Tables [Abstract]
Supplemental Cash Flow	2017 2016 Cash payments for: Interest (net of capitalized interest) $ 400 $ 284 Income taxes $ 294 $ 919 Income tax refunds received (16 ) (3 ) Cash tax payments, net $ 278 $ 916

Condensed Consolidating Finan26

Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Feb. 28, 2017
Condensed Consolidating Financial Statements Tables [Abstract]
Condensed Consolidating Balance Sheets	CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) February 28, 2017 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,475 $ 301 $ 1,442 $ (45 ) $ 3,173 Receivables, less allowances 1 4,636 2,824 (43 ) 7,418 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 292 819 236 — 1,347 Total current assets 1,768 5,756 4,502 (88 ) 11,938 PROPERTY AND EQUIPMENT, AT COST 22 46,448 3,282 — 49,752 Less accumulated depreciation and amortization 18 22,810 1,311 — 24,139 Net property and equipment 4 23,638 1,971 — 25,613 INTERCOMPANY RECEIVABLE 2,216 1,442 — (3,658 ) — GOODWILL — 1,571 5,429 — 7,000 INVESTMENT IN SUBSIDIARIES 26,637 2,744 — (29,381 ) — OTHER ASSETS 3,043 1,031 1,052 (2,896 ) 2,230 $ 33,668 $ 36,182 $ 12,954 $ (36,023 ) $ 46,781 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 31 $ 14 $ — $ 45 Accrued salaries and employee benefits 52 1,184 454 — 1,690 Accounts payable 124 1,354 1,317 (88 ) 2,707 Accrued expenses 811 1,419 778 — 3,008 Total current liabilities 987 3,988 2,563 (88 ) 7,450 LONG-TERM DEBT, LESS CURRENT PORTION 14,443 244 26 — 14,713 INTERCOMPANY PAYABLE — — 3,658 (3,658 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,978 217 (2,896 ) 2,299 Other liabilities 3,054 3,345 736 — 7,135 Total other long-term liabilities 3,054 8,323 953 (2,896 ) 9,434 STOCKHOLDERS’ INVESTMENT 15,184 23,627 5,754 (29,381 ) 15,184 $ 33,668 $ 36,182 $ 12,954 $ (36,023 ) $ 46,781 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 February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 11,275 $ 3,794 $ (72 ) $ 14,997 OPERATING EXPENSES: Salaries and employee benefits 29 4,210 1,156 — 5,395 Purchased transportation — 2,219 1,306 (27 ) 3,498 Rentals and landing fees 1 657 177 (1 ) 834 Depreciation and amortization 1 649 112 — 762 Fuel — 657 78 — 735 Maintenance and repairs 1 514 73 — 588 Intercompany charges, net (87 ) (33 ) 120 — — Other 55 1,428 721 (44 ) 2,160 — 10,301 3,743 (72 ) 13,972 OPERATING INCOME — 974 51 — 1,025 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 562 (41 ) — (521 ) — Interest, net (129 ) 6 1 — (122 ) Intercompany charges, net 130 (79 ) (51 ) — — Other, net (1 ) (118 ) 115 — (4 ) INCOME BEFORE INCOME TAXES 562 742 116 (521 ) 899 Provision for income taxes — 280 57 — 337 NET INCOME $ 562 $ 462 $ 59 $ (521 ) $ 562 COMPREHENSIVE INCOME $ 543 $ 444 $ 187 $ (521 ) $ 653 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 10,838 $ 1,892 $ (76 ) $ 12,654 OPERATING EXPENSES: Salaries and employee benefits 32 4,072 608 — 4,712 Purchased transportation — 2,106 545 (28 ) 2,623 Rentals and landing fees 1 660 84 (1 ) 744 Depreciation and amortization — 608 55 — 663 Fuel — 520 17 — 537 Maintenance and repairs — 471 33 — 504 Intercompany charges, net (344 ) 294 50 — — Other 311 1,344 399 (47 ) 2,007 — 10,075 1,791 (76 ) 11,790 OPERATING INCOME — 763 101 — 864 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 507 86 — (593 ) — Interest, net (90 ) 6 3 — (81 ) Intercompany charges, net 95 (105 ) 10 — — Other, net (5 ) (1 ) 5 — (1 ) INCOME BEFORE INCOME TAXES 507 749 119 (593 ) 782 Provision for income taxes — 249 26 — 275 NET INCOME $ 507 $ 500 $ 93 $ (593 ) $ 507 COMPREHENSIVE INCOME $ 488 $ 487 $ 7 $ (593 ) $ 389 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 33,175 $ 11,628 $ (212 ) $ 44,591 OPERATING EXPENSES: Salaries and employee benefits 94 12,477 3,488 — 16,059 Purchased transportation — 6,210 4,040 (81 ) 10,169 Rentals and landing fees 4 1,902 524 (4 ) 2,426 Depreciation and amortization 1 1,894 346 — 2,241 Fuel — 1,819 224 — 2,043 Maintenance and repairs 1 1,544 220 — 1,765 Intercompany charges, net (266 ) 67 199 — — Other 166 4,230 2,163 (127 ) 6,432 — 30,143 11,204 (212 ) 41,135 OPERATING INCOME — 3,032 424 — 3,456 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,977 69 — (2,046 ) — Interest, net (374 ) 19 1 — (354 ) Intercompany charges, net 376 (224 ) (152 ) — — Other, net (2 ) (128 ) 147 — 17 INCOME BEFORE INCOME TAXES 1,977 2,768 420 (2,046 ) 3,119 Provision for income taxes — 951 191 — 1,142 NET INCOME $ 1,977 $ 1,817 $ 229 $ (2,046 ) $ 1,977 COMPREHENSIVE INCOME $ 1,921 $ 1,781 $ 156 $ (2,046 ) $ 1,812 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 31,190 $ 6,449 $ (253 ) $ 37,386 OPERATING EXPENSES: Salaries and employee benefits 92 11,811 1,904 — 13,807 Purchased transportation — 5,481 2,132 (108 ) 7,505 Rentals and landing fees 4 1,843 278 (4 ) 2,121 Depreciation and amortization 1 1,792 171 — 1,964 Fuel — 1,808 56 — 1,864 Maintenance and repairs — 1,476 105 — 1,581 Intercompany charges, net (525 ) 338 187 — — Other 428 3,901 1,211 (141 ) 5,399 — 28,450 6,044 (253 ) 34,241 OPERATING INCOME — 2,740 405 — 3,145 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,890 220 — (2,110 ) — Interest, net (246 ) 20 8 — (218 ) Intercompany charges, net 257 (264 ) 7 — — Other, net (11 ) (10 ) 15 — (6 ) INCOME BEFORE INCOME TAXES 1,890 2,706 435 (2,110 ) 2,921 Provision for income taxes — 915 116 — 1,031 NET INCOME $ 1,890 $ 1,791 $ 319 $ (2,110 ) $ 1,890 COMPREHENSIVE INCOME $ 1,834 $ 1,758 $ 77 $ (2,110 ) $ 1,559
Condensed Consolidating Statements of Cash Flows	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2017 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,497 ) $ 3,615 $ 529 $ (2 ) $ 2,645 INVESTING ACTIVITIES Capital expenditures — (3,456 ) (334 ) — (3,790 ) Proceeds from asset dispositions and other 85 16 22 — 123 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES 85 (3,440 ) (312 ) — (3,667 ) FINANCING ACTIVITIES Net transfers from (to) Parent 117 (148 ) 31 — — Payment on loan between subsidiaries 36 (15 ) (21 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (33 ) (16 ) — (49 ) Proceeds from debt issuance 1,190 — — — 1,190 Proceeds from stock issuances 265 — — — 265 Dividends paid (319 ) — — — (319 ) Purchase of treasury stock (358 ) — — — (358 ) Other, net (8 ) (12 ) 22 — 2 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 923 (207 ) 15 — 731 Effect of exchange rate changes on cash (10 ) 7 (67 ) — (70 ) Net (decrease) increase in cash and cash equivalents (499 ) (25 ) 165 (2 ) (361 ) Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,475 $ 301 $ 1,442 $ (45 ) $ 3,173 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 29, 2016 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (833 ) $ 4,213 $ 370 $ 46 $ 3,796 INVESTING ACTIVITIES Capital expenditures — (3,434 ) (128 ) — (3,562 ) Proceeds from asset dispositions and other (55 ) 26 12 — (17 ) CASH USED IN INVESTING ACTIVITIES (55 ) (3,408 ) (116 ) — (3,579 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,036 (1,039 ) 3 — — Payment on loan between subsidiaries — 109 (109 ) — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (7 ) (21 ) — (28 ) Proceeds from debt issuance 1,238 — — — 1,238 Proceeds from stock issuances 79 — — — 79 Dividends paid (210 ) — — — (210 ) Purchase of treasury stock (2,133 ) — — — (2,133 ) Other, net (7 ) (27 ) 27 — (7 ) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 3 (944 ) (120 ) — (1,061 ) Effect of exchange rate changes on cash — (17 ) (61 ) — (78 ) Net (decrease) increase in cash and cash equivalents (885 ) (156 ) 73 46 (922 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,498 $ 331 $ 1,044 $ (32 ) $ 2,841

General - Additional Informatio

General - Additional Information (Details) $ / shares in Units, € in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017USD ($)$ / sharesshares	Feb. 29, 2016USD ($)	Feb. 28, 2017USD ($)$ / sharesshares	Feb. 29, 2016USD ($)	May 31, 2016USD ($)	May 25, 2016USD ($)	May 25, 2016EUR (€)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Goodwill	$ 7,000		$ 7,000		$ 6,747
Stock-based compensation	$ 31	$ 29	$ 123	$ 115
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased | shares	25,000,000		25,000,000
Number of Shares Repurchased | shares	130,000		2,200,000
Treasury Stock Acquired, Average Cost Per Share | $ / shares	$ 187.34		$ 165.44
Payments for Repurchase of Common Stock	$ 24		$ 358	$ 2,133
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | shares	16,800,000		16,800,000
Dividends Payable, Date Declared	Feb. 17, 2017
Dividends Payable Amount Per Share | $ / shares	$ 0.40		$ 0.40
Dividends Payable, Date To Be Paid	Apr. 3, 2017
Dividends Payable, Date Of Record	Mar. 13, 2017
ASU 201609 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Share-based payment tax benefit	$ 21		$ 42
Share-based payment change effect on diluted EPS | $ / shares	$ 0.07		$ 0.14
TNT acquisition [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Total purchase price	$ 4,894		$ 4,894			$ 4,900	€ 4,400
Cash and cash equivalents						$ 280	€ 250
Purchase price adjustment to Goodwill after acquisition			417
Goodwill	$ 3,381		$ 3,381

General - Schedule of Purchase

General - Schedule of Purchase Price Allocation (Details) $ in Millions, € in Billions		Feb. 28, 2017USD ($)	May 31, 2016USD ($)	May 25, 2016USD ($)	May 25, 2016EUR (€)
Business Acquisition [Line Items]
Goodwill		$ 7,000	$ 6,747
TNT acquisition [Member]
Business Acquisition [Line Items]
Current assets	[1]	1,917
Property and equipment		1,026
Goodwill		3,381
Identifiable intangible assets		505
Other non-current assets		307
Current liabilities	[2]	(1,679)
Long-term liabilities		(563)
Total purchase price		$ 4,894		$ 4,900	€ 4.4
[1]	Primarily accounts receivable and cash.
[2]	Primarily accounts payable and accrued expenses.

General - Schedule of Intangibl

General - Schedule of Intangible Assets with Finite Lives (Details) - TNT Express Intangible [Member] $ in Millions	9 Months Ended
	Feb. 28, 2017USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Total intangible assets	$ 505
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finite lives	405
Technology [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finite lives	20
Trademarks [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets with finite lives	$ 80

General - Schedule of Intangi30

General - Schedule of Intangible Assets with Finite Lives (Parenthetical) (Details) - TNT Express Intangible [Member]	9 Months Ended
	Feb. 28, 2017
Customer Relationships [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Finite-lived assets useful life	12 years
Technology [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Finite-lived assets useful life	3 years
Trademarks [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Finite-lived assets useful life	4 years

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Foreign currency translation loss: Beginning balance	$ (732)	$ (424)	$ (514)	$ (253)
Translation adjustments	110	(99)	(108)	(270)
Foreign currency translation loss: Ending balance	(622)	(523)	(622)	(523)
Retirement plans adjustments: Beginning Balance	307	383	345	425
Reclassifications from AOCI	(19)	(19)	(57)	(61)
Retirement plans adjustments: Ending Balance	288	364	288	364
Accumulated other comprehensive loss at end of period	$ (334)	$ (159)	$ (334)	$ (159)	$ (169)

Accumulated Other Comprehensi32

Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Amortization of retirement plans prior service credits, before tax	$ 31	$ 31	$ 91	$ 91
Income tax benefit	(12)	(12)	(34)	(30)
AOCI reclassifications, net of tax	$ 19	$ 19	$ 57	$ 61

Financing Arrangements - Additi

Financing Arrangements - Additional Information (Details) - USD ($)	9 Months Ended
	Feb. 28, 2017	May 31, 2016
Financing Arrangements (Details) [Line Items]
Line of Credit Facility, Expiration Date	Nov. 13, 2020
Financial Covenant Terms Ratio	350.00%
Financial Covenant Compliance Ratio	190.00%
Letters Of Credit Outstanding	$ 317,000,000
Commercial paper outstanding	0
Long Term Debt Exclusive of Capital Leases Carrying Value	14,700,000,000	$ 13,700,000,000
Long Term Debt Exclusive Of Capital Leases Fair Value	$ 15,200,000,000	$ 14,300,000,000
Long-term debt weighted average interest rate	3.60%
Revolving Credit Facility [Member]
Financing Arrangements (Details) [Line Items]
Line of Credit Facility, Term	5 years
Line Of Credit Facility Maximum Borrowing Capacity	$ 1,750,000,000
Letter of Credit [Member]
Financing Arrangements (Details) [Line Items]
Letter of Credit Maximum Sublimit Amount	500,000,000
Letter of Credit Outstanding Sublimit Unused Amount	183,000,000
Senior Unsecured Debt due March 2027 and January 2047 [Member]
Financing Arrangements (Details) [Line Items]
Senior Unsecured Debt Issued	$ 1,200,000,000
Senior Unsecured Debt, Frequency of Periodic Interest Payment	semiannually
3.30% Senior Unsecured Debt due March 2027 [Member]
Financing Arrangements (Details) [Line Items]
Senior Unsecured Debt Issued	$ 450,000,000
Senior Unsecured Debt, Fixed Interest Rate Percentage	3.30%
Senior Unsecured Debt, Maturity Date	Mar. 15, 2027
4.40% Senior Unsecured Debt due January 2047 [Member]
Financing Arrangements (Details) [Line Items]
Senior Unsecured Debt Issued	$ 750,000,000
Senior Unsecured Debt, Fixed Interest Rate Percentage	4.40%
Senior Unsecured Debt, Maturity Date	Jan. 15, 2047

Computation of Earnings Per S34

Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Basic earnings per common share:
Net earnings allocable to common shares	[1]	$ 561	$ 506	$ 1,974	$ 1,888
Weighted-average common shares		266	272	266	278
Basic earnings per common share		$ 2.11	$ 1.86	$ 7.43	$ 6.79
Diluted earnings per common share:
Net earnings allocable to common shares	[1]	$ 561	$ 506	$ 1,974	$ 1,888
Weighted-average common shares		266	272	266	278
Dilutive effect of share-based awards		5	3	4	3
Weighted-average diluted shares		271	275	270	281
Diluted earnings per common share		$ 2.07	$ 1.84	$ 7.31	$ 6.71
Anti-dilutive options excluded from diluted earnings per common share		4	4.8	4.7	4
[1]	Net earnings available to participating securities were immaterial in all periods presented.

Retirement Plans - Schedule of

Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Pension And Other Postretirement Benefit Expense [Abstract]
Defined benefit pension plans	$ 57	$ 53	$ 173	$ 160
Defined contribution plans	117	104	348	304
Postretirement healthcare plans	19	20	57	61
Retirement plans costs	$ 193	$ 177	$ 578	$ 525

Retirement Plans - Schedule o36

Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Pension Plans [Member]
Net Periodic Benefit Cost
Service cost	$ 180	$ 166	$ 540	$ 497
Interest cost	293	295	879	885
Expected return on plan assets	(384)	(377)	(1,156)	(1,131)
Amortization of prior service credit and other	(32)	(31)	(90)	(91)
Total net periodic benefit cost	57	53	173	160
Postretirement Healthcare Plans [Member]
Net Periodic Benefit Cost
Service cost	9	10	27	30
Interest cost	10	10	30	31
Total net periodic benefit cost	$ 19	$ 20	$ 57	$ 61

Retirement Plans - Schedule o37

Retirement Plans - Schedule of Pension Plans Contributions (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	$ 1,750	$ 495
Required U.S. Pension Plan Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	444	8
Voluntary U.S. Pension Plan Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	$ 1,306	$ 487

Retirement Plans - Additional I

Retirement Plans - Additional Information (Details) - USD ($) $ in Millions	Mar. 22, 2017	Feb. 28, 2017	Feb. 29, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer		$ 1,750	$ 495
Subsequent Event [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected payments to former employees in fourth quarter of 2017	$ 1,000
March 2017 contribution [Member] | Subsequent Event [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	250
Defined benefit pension plan, required employer contribution	$ 15

Business Segment Information -

Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Segment Reporting Information [Line Items]
Revenues	$ 14,997	$ 12,654	$ 44,591	$ 37,386
Operating Income	1,025	864	3,456	3,145
FedEx Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	6,779	6,557	20,178	19,736
Operating Income	555	595	1,815	1,762
TNT Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,790		5,493
Operating Income	2		58
FedEx Ground Segment [Member]
Segment Reporting Information [Line Items]
Revenues	4,688	4,408	13,397	12,288
Operating Income	515	557	1,590	1,620
FedEx Freight Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,492	1,447	4,747	4,595
Operating Income	41	56	264	289
FedEx Services Segment [Member]
Segment Reporting Information [Line Items]
Revenues	389	384	1,198	1,177
Eliminations, Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	(141)	(142)	(422)	(410)
Operating Income	$ (88)	$ (344)	$ (271)	$ (526)

Commitments - Schedule of Purch

Commitments - Schedule of Purchase Commitments (Details) $ in Millions	Feb. 28, 2017USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	$ 437
2,018	2,504
2,019	2,105
2,020	2,193
2,021	1,531
Thereafter	4,457
Total	13,227
Aircraft And Related Equipment Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	219
2,018	1,970
2,019	1,730
2,020	1,926
2,021	1,348
Thereafter	4,199
Total	11,392
Other Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2017 (remainder)	218	[1]
2,018	534	[1]
2,019	375	[1]
2,020	267	[1]
2,021	183	[1]
Thereafter	258	[1]
Total	$ 1,835	[1]
[1]	Primarily equipment and advertising contracts.

Commitments - Additional Inform

Commitments - Additional Information (Details) $ in Millions	9 Months Ended
	Feb. 28, 2017USD ($)air-craft
Other Aircraft Commitments Disclosure [Abstract]
Boeing 767F Conditional Aircraft Commitments	4
Boeing 777F Conditional Aircraft Commitments	6
Accelerate Delivery of Boeing 767F Conditional Aircraft Commitments	1
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments	2
Deposit and Progress Payments | $	$ 488

Commitments - Schedule of Aircr

Commitments - Schedule of Aircraft Purchase Commitments (Details)	9 Months Ended
	Feb. 28, 2017
Schedule of Aircraft Commitments [Line Items]
2017 (remainder)	1
2,018	19
2,019	17
2,020	19
2,021	13
Thereafter	20
Total	89
Boeing 767 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2017 (remainder)	1
2,018	15
2,019	15
2,020	16
2,021	10
Thereafter	16
Total	73
Boeing 777 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2,018	4
2,019	2
2,020	3
2,021	3
Thereafter	4
Total	16

Commitments - Schedule of Futur

Commitments - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions	Feb. 28, 2017USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	$ 617
2,018	2,390
2,019	2,142
2,020	1,856
2,021	1,644
Thereafter	9,140
Total	17,789
Aircraft and Related Equipment [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	70
2,018	398
2,019	343
2,020	261
2,021	203
Thereafter	360
Total	1,635
Facilities and Other [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2017 (remainder)	547
2,018	1,992
2,019	1,799
2,020	1,595
2,021	1,441
Thereafter	8,780
Total	$ 16,154

Contingencies - Additional Info

Contingencies - Additional Information (Details) - Pending Litigation [Member] $ in Millions	9 Months Ended
	Feb. 28, 2017USD ($)
Multidistrict Independent Contractor Litigation [Member] | Expected Litigation Loss Net of Insurance Claims [Member]
Loss Contingencies [Line Items]
Litigation Settlement Amount	$ 204
California Case [Member] | Expected Litigation Loss [Member]
Loss Contingencies [Line Items]
Litigation Settlement Amount	$ 228

Supplemental Cash Flow Inform45

Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Supplemental Cash Flow Information [Abstract]
Interest (net of capitalized interest)	$ 400	$ 284
Income taxes	294	919
Income tax refunds received	(16)	(3)
Cash tax payments, net	$ 278	$ 916

Condensed Consolidating Finan46

Condensed Consolidating Financial Statements - Additional Information (Details) $ in Billions	Feb. 28, 2017USD ($)
Guarantor Obligations [Abstract]
Debt Guarantee	$ 14.6

Condensed Consolidating Balance

Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Feb. 28, 2017	May 31, 2016	Feb. 29, 2016	May 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 3,173	$ 3,534	$ 2,841	$ 3,763
Receivables, less allowances	7,418	7,252
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	1,347	1,203
Total current assets	11,938	11,989
PROPERTY AND EQUIPMENT, AT COST	49,752	47,018
Less accumulated depreciation and amortization	24,139	22,734
Net property and equipment	25,613	24,284
Goodwill	7,000	6,747
Other assets	2,230	2,939
ASSETS	46,781	45,959
CURRENT LIABILITIES
Current portion of long-term debt	45	29
Accrued salaries and employee benefits	1,690	1,972
Accounts payable	2,707	2,944
Accrued expenses	3,008	3,063
Total current liabilities	7,450	8,008
LONG-TERM DEBT, LESS CURRENT PORTION	14,713	13,733
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,299	1,567
Other liabilities	7,135	8,867
Total other long-term liabilities	9,434	10,434
STOCKHOLDERS’ INVESTMENT	15,184	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	46,781	45,959
Consolidation Eliminations Member
CURRENT ASSETS
Cash and cash equivalents	(45)	(43)	(32)	(78)
Receivables, less allowances	(43)	(41)
Total current assets	(88)	(84)
INTERCOMPANY RECEIVABLE	(3,658)	(3,721)
INVESTMENT IN SUBSIDIARIES	(29,381)	(28,463)
Other assets	(2,896)	(3,238)
ASSETS	(36,023)	(35,506)
CURRENT LIABILITIES
Accounts payable	(88)	(84)
Total current liabilities	(88)	(84)
INTERCOMPANY PAYABLE	(3,658)	(3,721)
OTHER LONG-TERM LIABILITIES
Deferred income taxes	(2,896)	(3,238)
Total other long-term liabilities	(2,896)	(3,238)
STOCKHOLDERS’ INVESTMENT	(29,381)	(28,463)
LIABILITIES AND STOCKHOLDERS' INVESTMENT	(36,023)	(35,506)
Parent Company Member
CURRENT ASSETS
Cash and cash equivalents	1,475	1,974	1,498	2,383
Receivables, less allowances	1	1
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	292	233
Total current assets	1,768	2,208
PROPERTY AND EQUIPMENT, AT COST	22	22
Less accumulated depreciation and amortization	18	17
Net property and equipment	4	5
INTERCOMPANY RECEIVABLE	2,216	2,437
INVESTMENT IN SUBSIDIARIES	26,637	24,766
Other assets	3,043	3,359
ASSETS	33,668	32,775
CURRENT LIABILITIES
Accrued salaries and employee benefits	52	54
Accounts payable	124	8
Accrued expenses	811	883
Total current liabilities	987	945
LONG-TERM DEBT, LESS CURRENT PORTION	14,443	13,451
OTHER LONG-TERM LIABILITIES
Other liabilities	3,054	4,595
Total other long-term liabilities	3,054	4,595
STOCKHOLDERS’ INVESTMENT	15,184	13,784
LIABILITIES AND STOCKHOLDERS' INVESTMENT	33,668	32,775
Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	301	326	331	487
Receivables, less allowances	4,636	4,461
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	819	724
Total current assets	5,756	5,511
PROPERTY AND EQUIPMENT, AT COST	46,448	43,760
Less accumulated depreciation and amortization	22,810	21,566
Net property and equipment	23,638	22,194
INTERCOMPANY RECEIVABLE	1,442	1,284
Goodwill	1,571	1,571
INVESTMENT IN SUBSIDIARIES	2,744	3,697
Other assets	1,031	967
ASSETS	36,182	35,224
CURRENT LIABILITIES
Current portion of long-term debt	31	13
Accrued salaries and employee benefits	1,184	1,377
Accounts payable	1,354	1,501
Accrued expenses	1,419	1,411
Total current liabilities	3,988	4,302
LONG-TERM DEBT, LESS CURRENT PORTION	244	245
OTHER LONG-TERM LIABILITIES
Deferred income taxes	4,978	4,436
Other liabilities	3,345	3,375
Total other long-term liabilities	8,323	7,811
STOCKHOLDERS’ INVESTMENT	23,627	22,866
LIABILITIES AND STOCKHOLDERS' INVESTMENT	36,182	35,224
Non Guarantor Subsidiaries Member
CURRENT ASSETS
Cash and cash equivalents	1,442	1,277	$ 1,044	$ 971
Receivables, less allowances	2,824	2,831
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	236	246
Total current assets	4,502	4,354
PROPERTY AND EQUIPMENT, AT COST	3,282	3,236
Less accumulated depreciation and amortization	1,311	1,151
Net property and equipment	1,971	2,085
Goodwill	5,429	5,176
Other assets	1,052	1,851
ASSETS	12,954	13,466
CURRENT LIABILITIES
Current portion of long-term debt	14	16
Accrued salaries and employee benefits	454	541
Accounts payable	1,317	1,519
Accrued expenses	778	769
Total current liabilities	2,563	2,845
LONG-TERM DEBT, LESS CURRENT PORTION	26	37
INTERCOMPANY PAYABLE	3,658	3,721
OTHER LONG-TERM LIABILITIES
Deferred income taxes	217	369
Other liabilities	736	897
Total other long-term liabilities	953	1,266
STOCKHOLDERS’ INVESTMENT	5,754	5,597
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 12,954	$ 13,466

Condensed Consolidating Stateme

Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Condensed Financial Statements Captions [Line Items]
REVENUES	$ 14,997	$ 12,654	$ 44,591	$ 37,386
OPERATING EXPENSES:
Salaries and employee benefits	5,395	4,712	16,059	13,807
Purchased transportation	3,498	2,623	10,169	7,505
Rentals and landing fees	834	744	2,426	2,121
Depreciation and amortization	762	663	2,241	1,964
Fuel	735	537	2,043	1,864
Maintenance and repairs	588	504	1,765	1,581
Other	2,160	2,007	6,432	5,399
OPERATING EXPENSES	13,972	11,790	41,135	34,241
OPERATING INCOME	1,025	864	3,456	3,145
OTHER INCOME (EXPENSE):
Interest, net	(122)	(81)	(354)	(218)
Other, net	(4)	(1)	17	(6)
INCOME BEFORE INCOME TAXES	899	782	3,119	2,921
PROVISION FOR INCOME TAXES	337	275	1,142	1,031
NET INCOME	562	507	1,977	1,890
COMPREHENSIVE INCOME	653	389	1,812	1,559
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
REVENUES	(72)	(76)	(212)	(253)
OPERATING EXPENSES:
Purchased transportation	(27)	(28)	(81)	(108)
Rentals and landing fees	(1)	(1)	(4)	(4)
Other	(44)	(47)	(127)	(141)
OPERATING EXPENSES	(72)	(76)	(212)	(253)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(521)	(593)	(2,046)	(2,110)
INCOME BEFORE INCOME TAXES	(521)	(593)	(2,046)	(2,110)
NET INCOME	(521)	(593)	(2,046)	(2,110)
COMPREHENSIVE INCOME	(521)	(593)	(2,046)	(2,110)
Parent Company Member
OPERATING EXPENSES:
Salaries and employee benefits	29	32	94	92
Rentals and landing fees	1	1	4	4
Depreciation and amortization	1		1	1
Maintenance and repairs	1		1
Intercompany charges, net	(87)	(344)	(266)	(525)
Other	55	311	166	428
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	562	507	1,977	1,890
Interest, net	(129)	(90)	(374)	(246)
Intercompany charges, net	130	95	376	257
Other, net	(1)	(5)	(2)	(11)
INCOME BEFORE INCOME TAXES	562	507	1,977	1,890
NET INCOME	562	507	1,977	1,890
COMPREHENSIVE INCOME	543	488	1,921	1,834
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	11,275	10,838	33,175	31,190
OPERATING EXPENSES:
Salaries and employee benefits	4,210	4,072	12,477	11,811
Purchased transportation	2,219	2,106	6,210	5,481
Rentals and landing fees	657	660	1,902	1,843
Depreciation and amortization	649	608	1,894	1,792
Fuel	657	520	1,819	1,808
Maintenance and repairs	514	471	1,544	1,476
Intercompany charges, net	(33)	294	67	338
Other	1,428	1,344	4,230	3,901
OPERATING EXPENSES	10,301	10,075	30,143	28,450
OPERATING INCOME	974	763	3,032	2,740
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(41)	86	69	220
Interest, net	6	6	19	20
Intercompany charges, net	(79)	(105)	(224)	(264)
Other, net	(118)	(1)	(128)	(10)
INCOME BEFORE INCOME TAXES	742	749	2,768	2,706
PROVISION FOR INCOME TAXES	280	249	951	915
NET INCOME	462	500	1,817	1,791
COMPREHENSIVE INCOME	444	487	1,781	1,758
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
REVENUES	3,794	1,892	11,628	6,449
OPERATING EXPENSES:
Salaries and employee benefits	1,156	608	3,488	1,904
Purchased transportation	1,306	545	4,040	2,132
Rentals and landing fees	177	84	524	278
Depreciation and amortization	112	55	346	171
Fuel	78	17	224	56
Maintenance and repairs	73	33	220	105
Intercompany charges, net	120	50	199	187
Other	721	399	2,163	1,211
OPERATING EXPENSES	3,743	1,791	11,204	6,044
OPERATING INCOME	51	101	424	405
OTHER INCOME (EXPENSE):
Interest, net	1	3	1	8
Intercompany charges, net	(51)	10	(152)	7
Other, net	115	5	147	15
INCOME BEFORE INCOME TAXES	116	119	420	435
PROVISION FOR INCOME TAXES	57	26	191	116
NET INCOME	59	93	229	319
COMPREHENSIVE INCOME	$ 187	$ 7	$ 156	$ 77

Condensed Consolidating State49

Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Feb. 28, 2017	Feb. 28, 2017	Feb. 29, 2016
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 2,645	$ 3,796
Investing Activities:
Capital expenditures		(3,790)	(3,562)
Proceeds from asset dispositions and other		123	(17)
Cash used in investing activities		(3,667)	(3,579)
Financing Activities:
Principal payments on debt		(49)	(28)
Proceeds from debt issuance		1,190	1,238
Proceeds from stock issuances		265	79
Dividends paid		(319)	(210)
Purchase of treasury stock	$ (24)	(358)	(2,133)
Other, net		2	(7)
Cash provided by (used in) financing activities		731	(1,061)
Effect of exchange rate changes on cash		(70)	(78)
Net decrease in cash and cash equivalents		(361)	(922)
Cash and cash equivalents at beginning of period		3,534	3,763
Cash and cash equivalents at end of period	3,173	3,173	2,841
Consolidation Eliminations Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(2)	46
Financing Activities:
Net decrease in cash and cash equivalents		(2)	46
Cash and cash equivalents at beginning of period		(43)	(78)
Cash and cash equivalents at end of period	(45)	(45)	(32)
Parent Company Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(1,497)	(833)
Investing Activities:
Proceeds from asset dispositions and other		85	(55)
Cash used in investing activities		85	(55)
Financing Activities:
Net transfers from (to) Parent		117	1,036
Payment on loan between subsidiaries		36
Proceeds from debt issuance		1,190	1,238
Proceeds from stock issuances		265	79
Dividends paid		(319)	(210)
Purchase of treasury stock		(358)	(2,133)
Other, net		(8)	(7)
Cash provided by (used in) financing activities		923	3
Effect of exchange rate changes on cash		(10)
Net decrease in cash and cash equivalents		(499)	(885)
Cash and cash equivalents at beginning of period		1,974	2,383
Cash and cash equivalents at end of period	1,475	1,475	1,498
Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		3,615	4,213
Investing Activities:
Capital expenditures		(3,456)	(3,434)
Proceeds from asset dispositions and other		16	26
Cash used in investing activities		(3,440)	(3,408)
Financing Activities:
Net transfers from (to) Parent		(148)	(1,039)
Payment on loan between subsidiaries		(15)	109
Intercompany dividends		1	20
Principal payments on debt		(33)	(7)
Other, net		(12)	(27)
Cash provided by (used in) financing activities		(207)	(944)
Effect of exchange rate changes on cash		7	(17)
Net decrease in cash and cash equivalents		(25)	(156)
Cash and cash equivalents at beginning of period		326	487
Cash and cash equivalents at end of period	301	301	331
Non Guarantor Subsidiaries Member
Condensed Financial Statements Captions [Line Items]
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		529	370
Investing Activities:
Capital expenditures		(334)	(128)
Proceeds from asset dispositions and other		22	12
Cash used in investing activities		(312)	(116)
Financing Activities:
Net transfers from (to) Parent		31	3
Payment on loan between subsidiaries		(21)	(109)
Intercompany dividends		(1)	(20)
Principal payments on debt		(16)	(21)
Other, net		22	27
Cash provided by (used in) financing activities		15	(120)
Effect of exchange rate changes on cash		(67)	(61)
Net decrease in cash and cash equivalents		165	73
Cash and cash equivalents at beginning of period		1,277	971
Cash and cash equivalents at end of period	$ 1,442	$ 1,442	$ 1,044