FedEx (FDX) 10-Q 21 Mar 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Feb. 28, 2018	Mar. 19, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Feb. 28, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
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		267,215,207
Trading Symbol	FDX

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 28, 2018	May 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 2,789	$ 3,969
Receivables, less allowances of $373 and $252	8,671	7,599
Spare parts, supplies and fuel, less allowances of $258 and $237	523	514
Prepaid expenses and other	1,592	546
Total current assets	13,575	12,628
PROPERTY AND EQUIPMENT, AT COST	54,377	50,626
Less accumulated depreciation and amortization	26,680	24,645
Net property and equipment	27,697	25,981
OTHER LONG-TERM ASSETS
Goodwill	7,464	7,154
Other assets	3,115	2,789
Total other long-term assets	10,579	9,943
ASSETS	51,851	48,552
CURRENT LIABILITIES
Short-term borrowings	799
Current portion of long-term debt	764	22
Accrued salaries and employee benefits	1,945	1,914
Accounts payable	3,102	2,752
Accrued expenses	2,893	3,230
Total current liabilities	9,503	7,918
LONG-TERM DEBT, LESS CURRENT PORTION	16,017	14,909
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,401	2,485
Pension, postretirement healthcare and other benefit obligations	2,181	4,487
Self-insurance accruals	1,715	1,494
Deferred lease obligations	532	531
Deferred gains, principally related to aircraft transactions	124	137
Other liabilities	484	518
Total other long-term liabilities	7,437	9,652
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of February 28, 2018 and May 31, 2017	32	32
Additional paid-in capital	3,085	3,005
Retained earnings	23,710	20,833
Accumulated other comprehensive loss	(357)	(415)
Treasury stock, at cost	(7,576)	(7,382)
Total common stockholders’ investment	18,894	16,073
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 51,851	$ 48,552

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Feb. 28, 2018	May 31, 2017
CURRENT ASSETS
Allowances for receivables	$ 373	$ 252
Allowances for spare parts, supplies and fuel	$ 258	$ 237
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, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Income Statement [Abstract]
REVENUES	$ 16,526	$ 14,997	$ 48,136	$ 44,591
OPERATING EXPENSES:
Salaries and employee benefits	5,981	5,395	17,241	16,059
Purchased transportation	3,935	3,498	11,220	10,169
Rentals and landing fees	873	834	2,526	2,426
Depreciation and amortization	786	762	2,293	2,241
Fuel	914	735	2,435	2,043
Maintenance and repairs	628	588	1,968	1,765
Other	2,408	2,160	7,073	6,432
OPERATING EXPENSES	15,525	13,972	44,756	41,135
OPERATING INCOME	1,001	1,025	3,380	3,456
OTHER INCOME (EXPENSE):
Interest, net	(125)	(122)	(363)	(354)
Other, net	(2)	(4)	(22)	17
OTHER INCOME (EXPENSE)	(127)	(126)	(385)	(337)
INCOME BEFORE INCOME TAXES	874	899	2,995	3,119
PROVISION FOR INCOME TAXES	(1,200)	337	(450)	1,142
NET INCOME	$ 2,074	$ 562	$ 3,445	$ 1,977
EARNINGS PER COMMON SHARE:
Basic	$ 7.74	$ 2.11	$ 12.85	$ 7.43
Diluted	7.59	2.07	12.63	7.31
DIVIDENDS DECLARED PER COMMON SHARE	$ 0.50	$ 0.40	$ 2	$ 1.60

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME	$ 2,074	$ 562	$ 3,445	$ 1,977
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustments, net of tax of $9, $3, $26, and $19	100	110	119	(108)
Amortization of prior service credit, net of tax of $7, $12, $29, and $34	(23)	(19)	(61)	(57)
Other comprehensive income (loss)	77	91	58	(165)
COMPREHENSIVE INCOME	$ 2,151	$ 653	$ 3,503	$ 1,812

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Other Comprehensive Income, Tax Amounts
Foreign currency translation adjustments, tax expense (benefit)	$ 9	$ (3)	$ 26	$ (19)
Amortization of prior service credit, tax benefit	$ 7	$ 12	$ 29	$ 34

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Operating Activities:
Net income	$ 3,445	$ 1,977
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,293	2,241
Provision for uncollectible accounts	177	115
Stock-based compensation	135	123
Deferred income taxes and other noncash items	(914)	474
Gain from sale of investment		(35)
Changes in assets and liabilities:
Receivables	(986)	(340)
Other assets	(151)	(235)
Accounts payable and other liabilities	(2,781)	(1,642)
Other, net	(56)	(33)
Cash provided by operating activities	1,162	2,645
Investing Activities:
Capital expenditures	(3,994)	(3,790)
Business acquisitions, net of cash acquired	(44)
Proceeds from asset dispositions and other	21	123
Cash used in investing activities	(4,017)	(3,667)
Financing Activities:
Proceeds from short-term borrowings, net	797
Principal payments on debt	(31)	(49)
Proceeds from debt issuances	1,481	1,190
Proceeds from stock issuances	284	265
Dividends paid	(402)	(319)
Purchase of treasury stock	(558)	(358)
Other, net	6	2
Cash provided by financing activities	1,577	731
Effect of exchange rate changes on cash	98	(70)
Net decrease in cash and cash equivalents	(1,180)	(361)
Cash and cash equivalents at beginning of period	3,969	3,534
Cash and cash equivalents at end of period	$ 2,789	$ 3,173

General

General	9 Months Ended
	Feb. 28, 2018
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, 2017 (“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, 2018, the results of our operations for the three- and nine-month periods ended February 28, 2018 and 2017, and cash flows for the nine-month periods ended February 28, 2018 and 2017. Operating results for the three- and nine-month periods ended February 28, 2018 are not necessarily indicative of the results that may be expected for the year ending May 31, 2018. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2018 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. BUSINESS ACQUISITION. On October 13, 2017, FedEx acquired Northwest Research, Inc., a leader in inventory research and management, for $50 million in cash from operations. The majority of the purchase price was allocated to property and equipment. The financial results of this acquired business are included in the FedEx Corporate Services, Inc. (“FedEx Services”) segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided. EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“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”) 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 $32 million for the three-month period ended February 28, 2018 and $135 million for the nine-month period ended February 28, 2018. 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. 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. We believe the following new accounting guidance is relevant to the readers of our financial statements. In December 2017, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118 to provide guidance to registrants in accounting for income taxes under the Tax Cuts and Jobs Act (“TCJA”). See Note 5 for further discussion related to applying this guidance. During the first quarter of 2018, we early adopted the Accounting Standards Update issued by the Financial Accounting Standards Board (“FASB”) related to Intra-Entity Transfers of Assets Other Than Inventory. This update requires companies to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, as opposed to when the assets are ultimately sold to an outside party. This new guidance had an immaterial impact on our accounting and financial reporting for the third quarter and nine months of 2018. In January 2017, the FASB issued an Accounting Standards Update that simplifies the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test. Under this new guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance will be applied prospectively and will be effective for us beginning June 1, 2020 (fiscal 2021). Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We expect to early adopt the guidance during the fourth quarter of 2018. In 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 June 1, 2018 (fiscal 2019). The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five-step approach for the recognition of revenue. We are finalizing the assessment of the impact this new standard will have on our consolidated financial statements and related disclosures, including ongoing contract reviews, which will be completed by the end of 2018. We do not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. In March 2017, the FASB issued an Accounting Standards Update that changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. This new guidance requires entities to report the service cost component in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component outside of income from operations. This standard will impact our operating income but will have no impact on our net income or earnings per share. For example, adoption of this guidance would have reduced operating income by $143 million in the third quarter and $436 million in the nine months of 2018, and by $113 million in the third quarter and $337 million in the nine months of 2017, but would not have impacted our net income in these periods. This new guidance will be effective June 1, 2018 and will be applied retrospectively. In 2016, the FASB issued a new lease accounting standard which requires lessees to put most leases on their balance sheets but recognize the expenses in their income statements in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expenses related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. Based on our lease portfolio, we currently anticipate recognizing a lease liability and related right-of-use asset on our balance sheet in excess of $13 billion, with an immaterial impact on our income statement compared to the current lease accounting model. However, the ultimate impact of the standard will depend on the company’s lease portfolio as of the adoption date. We are currently in the process of evaluating our existing lease portfolio, including accumulating all of the necessary information required to properly account for the leases under the new standard. Additionally, we are implementing an enterprise-wide lease management system to assist in the accounting and are evaluating additional changes to our processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. These changes will be effective June 1, 2019 (fiscal 2020). In February 2018, the FASB issued an Accounting Standards Update that will permit companies to reclassify the income tax effect of the TCJA on items within accumulated other comprehensive income (loss) (“AOCI”) to retained earnings. These changes will be effective June 1, 2019 (fiscal 2020). 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 2018, we repurchased 1.2 million shares of FedEx common stock at an average price of $248.73 per share for a total of $288 million. During the nine months of 2018, we repurchased 2.4 million shares of FedEx common stock at an average price of $232.00 per share for a total of $558 million. As of February 28, 2018, 13.6 million shares remained under the current share repurchase authorization. DIVIDENDS DECLARED PER COMMON SHARE. On February 16, 2018, our Board of Directors declared a quarterly dividend of $0.50 per share of common stock. The dividend will be paid on April 2, 2018 to stockholders of record as of the close of business on March 12, 2018. 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, 2018
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 AOCI, net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended February 28 (in millions; amounts in parentheses indicate debits to AOCI): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Foreign currency translation loss: Balance at beginning of period $ (666 ) $ (732 ) $ (685 ) $ (514 ) Translation adjustments 100 110 119 (108 ) Balance at end of period (566 ) (622 ) (566 ) (622 ) Retirement plans adjustments: Balance at beginning of period 232 307 270 345 Reclassifications from AOCI (23 ) (19 ) (61 ) (57 ) Balance at end of period 209 288 209 288 Accumulated other comprehensive (loss) at end of period $ (357 ) $ (334 ) $ (357 ) $ (334 ) The following table presents details of the reclassifications from AOCI for the periods ended February 28 (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 2018 2017 2018 2017 Amortization of retirement plans prior service credits, before tax $ 30 $ 31 $ 90 $ 91 Salaries and employee benefits Income tax benefit (7 ) (12 ) (29 ) (34 ) Provision for income taxes AOCI reclassifications, net of tax $ 23 $ 19 $ 61 $ 57 Net income

Financing Arrangements

Financing Arrangements	9 Months Ended
	Feb. 28, 2018
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 third quarter of 2018, we issued $1.5 billion of senior unsecured debt under our current shelf registration statement, comprised of $500 million of 3.40% fixed-rate notes due in February 2028, and $1 billion of 4.05% fixed-rate notes due in February 2048. Interest on these notes is paid semi-annually. We used the net proceeds for a voluntary incremental contribution in February 2018 to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”). During the quarter, we amended our five-year revolving credit facility to increase the aggregate amount available under the facility from $1.75 billion to $2.0 billion. The facility, which expires in November 2020 and 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 2.2 to 1.0 at February 28, 2018. 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 this 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. During the third quarter of 2018, we issued commercial paper which provided us with additional short-term liquidity. The maximum outstanding during the quarter was $800 million. Our commercial paper program is backed by unused commitments under the revolving credit facility and borrowings under the program reduce the amount available under the credit facility. As of February 28, 2018, $800 million of commercial paper and $54 million in letters of credit were outstanding, leaving $1.146 billion available under the revolving credit facility for future borrowings. Long-term debt, exclusive of capital leases, had carrying values of $16.7 billion at February 28, 2018 and $14.9 billion at May 31, 2017, compared with estimated fair values of $17.0 billion at February 28, 2018 and $15.5 billion at May 31, 2017. The annualized weighted-average interest rate on long-term debt was 3.6% at February 28, 2018. 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, 2018
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 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Basic earnings per common share: Net earnings allocable to common shares (1) $ 2,071 $ 561 $ 3,441 $ 1,974 Weighted-average common shares 268 266 268 266 Basic earnings per common share $ 7.74 $ 2.11 $ 12.85 $ 7.43 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 2,071 $ 561 $ 3,441 $ 1,974 Weighted-average common shares 268 266 268 266 Dilutive effect of share-based awards 5 5 4 4 Weighted-average diluted shares 273 271 272 270 Diluted earnings per common share $ 7.59 $ 2.07 $ 12.63 $ 7.31 Anti-dilutive options excluded from diluted earnings per common share 1.9 4.0 2.6 4.7 (1)

Income Taxes

Income Taxes	9 Months Ended
	Feb. 28, 2018
Income Tax Disclosure [Abstract]
Income Taxes	(5) Income Taxes On December 22, 2017, the United States government enacted comprehensive tax legislation through the TCJA. The TCJA significantly changes the U.S. corporate income tax system including, among other things, lowering the statutory federal income tax rate from 35% to 21%, eliminating or reducing certain income tax deductions, and implementing a modified territorial tax system that includes a one-time transition tax on previously deferred foreign earnings. Due to our May 31 fiscal year end, the lower rate will be phased in, resulting in a U.S. statutory federal rate of 29.2% for 2018 and a 21% statutory federal rate for subsequent years. In December 2017, the SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides for a measurement period of up to one year from the enactment date for companies to complete the accounting for the initial income tax effects of the TCJA. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting is complete and provide a provisional estimate (where determinable) of the income tax effects of the TCJA where the accounting is incomplete. The provisional estimate is required to be updated throughout the measurement period. As of February 28, 2018, we have not completed our initial accounting of the tax effects of the TCJA; however, where determinable, we have made an estimate of the effects on our existing deferred tax balances and the one-time transition tax. During the quarter, we recognized a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a provisional benefit of $36 million from foreign tax credits exceeding the one-time transition tax on previously deferred foreign earnings. In addition to the provisional amounts above, we recognized a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans in February 2018 and a benefit of $165 million related to a lower statutory income tax rate on fiscal 2018 year-to-date earnings. The following table provides a reconciliation of the 2017 effective tax rates to the 2018 effective tax rates, including the impact of the TCJA, for the periods ended February 28: Three Months Ended Nine Months Ended 2018 2018 2017 Effective Tax Rate 37.5 % 36.6 % Remeasurement of net U.S. deferred tax liability (131.5 ) (38.4 ) Effect of February 2018 pension contribution (a) (23.3 ) (6.8 ) Lower statutory tax rate (18.9 ) (5.5 ) Transition tax (4.1 ) (1.2 ) Other (b) 3.0 0.3 2018 Effective Tax Rate (137.3 )% (15.0 )% (a) The benefit is from the pension contribution deducted on our 2017 tax return at a tax rate of 35%. (b) The 2018 tax rates were negatively impacted by the effect of the NotPetya cyberattack, changes in uncertain tax positions and tax rate impacts on changes in deferred tax items after the TCJA enactment and were favorably impacted from foreign tax credits associated with a second quarter dividend from foreign operations.

Retirement Plans

Retirement Plans	9 Months Ended
	Feb. 28, 2018
Compensation And Retirement Disclosure [Abstract]
Retirement Plans	(6) 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 were as follows (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Defined benefit pension plans $ 39 $ 57 $ 113 $ 173 Defined contribution plans 135 117 386 348 Postretirement healthcare plans 19 19 56 57 $ 193 $ 193 $ 555 $ 578 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 28 included the following components (in millions): Three Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Service cost $ 169 $ 160 $ 23 $ 20 $ 9 $ 9 Interest cost 279 282 12 11 10 10 Expected return on plan assets (406 ) (375 ) (10 ) (9 ) — — Amortization of prior service credit and other (29 ) (30 ) 1 (2 ) — — $ 13 $ 37 $ 26 $ 20 $ 19 $ 19 Nine Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Service cost $ 509 $ 479 $ 69 $ 61 $ 27 $ 27 Interest cost 836 846 37 33 29 30 Expected return on plan assets (1,218 ) (1,126 ) (32 ) (30 ) — — Amortization of prior service credit and other (88 ) (89 ) — (1 ) — — $ 39 $ 110 $ 74 $ 63 $ 56 $ 57 Contributions to our U.S. Pension Plans for the nine-month periods ended February 28 were as follows (in millions): 2018 2017 Required $ 22 $ 444 Voluntary 2,478 1,306 $ 2,500 $ 1,750 During the third quarter of 2018, we made voluntary contributions to our U.S. Pension Plans of $1.75 billion.

Business Segment Information

Business Segment Information	9 Months Ended
	Feb. 28, 2018
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract]
Business Segment Information	(7) 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 are FedEx Express, including TNT Express B.V. (“TNT Express”), the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight, Inc. (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“LTL”) freight services. These companies represent our major service lines and, along with FedEx Services, form the core of our reportable segments. Our reportable segments include the following businesses: FedEx Express Segment FedEx Express (express transportation) TNT Express (international express transportation, small-package ground delivery and freight transportation) FedEx Trade Networks (air and ocean freight forwarding, customs brokerage and cross-border enablement technology and solutions) FedEx Ground Segment FedEx Ground (small-package ground delivery) FedEx Supply Chain (third-party logistics) FedEx Freight Segment FedEx Freight (LTL freight transportation) FedEx Custom Critical (time-critical transportation) FedEx Services Segment FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services and back-office functions) FedEx Office (document and business services and package acceptance) As discussed in our Annual Report, in the first quarter of 2018, we began to report TNT Express as part of the FedEx Express segment. Prior year amounts have been revised to conform to the current year presentation. Effective March 1, 2018, we realigned our specialty logistics and e-commerce solutions in a new organizational structure under FedEx Trade Networks, Inc. in the FedEx Express segment. The realignment allows us to improve our ability to deliver the capabilities of our specialty companies to customers. The new structure includes FedEx Custom Critical, FedEx Cross Border, FedEx Supply Chain, FedEx Trade Networks Transport & Brokerage and, effective June 1, 2018, a new company called FedEx Forward Depots. Prior period segment results will be recast to conform to current year presentation beginning in the fourth quarter of 2018. 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, some of these functions are performed on a regional basis and reported 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 and Print Services, Inc. (“FedEx Office”), which provides an array of document and business services and retail access to our customers for our package transportation businesses. The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. Eliminations, Corporate and Other Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenues of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenues and expenses are eliminated in our consolidated results and are not separately identified in the following segment information because the amounts are not material. Corporate and other includes corporate headquarters costs for executive officers and certain legal and financial functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the business segments. The following table provides a reconciliation of reportable segment revenues and operating income to our unaudited condensed consolidated financial statement totals for the periods ended February 28 (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues FedEx Express segment $ 9,370 $ 8,569 $ 27,376 $ 25,671 FedEx Ground segment 5,222 4,688 14,790 13,397 FedEx Freight segment 1,694 1,492 5,208 4,747 FedEx Services segment 397 389 1,213 1,198 Eliminations and other (157 ) (141 ) (451 ) (422 ) $ 16,526 $ 14,997 $ 48,136 $ 44,591 Operating Income FedEx Express segment $ 424 $ 557 $ 1,574 $ 1,873 FedEx Ground segment 634 515 1,781 1,590 FedEx Freight segment 55 41 349 264 Eliminations, corporate and other (112 ) (88 ) (324 ) (271 ) $ 1,001 $ 1,025 $ 3,380 $ 3,456

Commitments

Commitments	9 Months Ended
	Feb. 28, 2018
Commitments [Abstract]
Commitments	(8) Commitments As of February 28, 2018, our purchase commitments under various contracts for the remainder of 2018 and annually thereafter were as follows (in millions): Aircraft and Aircraft-Related Other (1) Total 2018 (remainder) $ 516 $ 254 $ 770 2019 1,789 725 2,514 2020 1,931 621 2,552 2021 1,244 400 1,644 2022 1,364 251 1,615 Thereafter 3,314 508 3,822 Total $ 10,158 $ 2,759 $ 12,917 (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, 2018, our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and three 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 an agreement to accelerate the delivery of two B777F aircraft from 2021 to 2020, one B777F aircraft from 2021 to 2019, and one B777F aircraft from 2022 to 2020. We had $922 million in deposits and progress payments as of February 28, 2018 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, 2018 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2018 (remainder) - - 4 1 5 2019 - - 15 3 18 2020 - - 16 6 22 2021 12 5 10 - 27 2022 12 6 10 3 31 Thereafter 26 19 6 - 51 Total 50 30 61 13 154 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, 2018 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases 2018 (remainder) $ 47 $ 585 $ 632 2019 343 2,065 2,408 2020 261 1,854 2,115 2021 203 1,675 1,878 2022 185 1,510 1,695 Thereafter 175 9,018 9,193 Total $ 1,214 $ 16,707 $ 17,921 Future minimum lease payments under capital leases were immaterial at February 28, 2018. 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, 2018
Loss Contingency [Abstract]
Contingencies	(9) Contingencies Independent Contractor — Lawsuits and Administrative Proceedings. FedEx Ground is involved in lawsuits and administrative proceedings claiming that owner-operators engaged under a contractor model no longer in use should have been treated as employees of FedEx Ground, rather than independent contractors. In addition, we are defending joint-employer cases where it is alleged that FedEx Ground should be treated as an employer of the drivers employed by owner-operators engaged by FedEx Ground. These cases are in varying stages of litigation, and we are not currently able to estimate an amount or range of potential loss in all of these matters. However, we do not expect to incur, individually or in the aggregate, a material loss in these matters. Nevertheless, adverse determinations in matters related to owner-operators engaged by FedEx Ground could, among other things, entitle certain owner-operators to the reimbursement of certain expenses, and their drivers to the benefit of wage-and-hour laws, and result in employment and withholding tax and benefit liability for FedEx Ground. We believe that owner-operators engaged by FedEx Ground are properly classified as independent contractors and that FedEx Ground is not an employer of the drivers employed by these owner-operators. City and State of New York Cigarette Suit. The City of New York and the State of New York filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground’s alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York’s Public Health Law, as well as common law nuisance claims. In April 2016, the two lawsuits were consolidated and will now proceed as one lawsuit. The first-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, and the second-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers; none of these shippers continue to ship in our network. Following motions to dismiss filed in both lawsuits, some of the claims were dismissed entirely or limited. In the first-filed lawsuit, the New York Public Health Law and common law nuisance claims were dismissed and the plaintiffs voluntarily dismissed another claim. In the second-filed lawsuit, the common law nuisance claim was 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 or range of loss, if any, cannot be estimated at this stage of the litigation. We expect the amount of any loss to be immaterial. On July 10, 2017, the City of New York and the State of New York filed a third lawsuit against FedEx Ground and included FedEx Freight as a co-defendant. This additional case identifies no shippers or shipments, but generally alleges violations of the same laws that are the subject of the other two lawsuits. The amount or range of loss, if any, cannot be estimated at this stage of the lawsuit. Environmental Matters . SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that management reasonably believes could exceed $100,000. On September 9, 2016, FedEx Supply Chain received a written offer from several District Attorneys’ Offices in California to settle a civil action that the District Attorneys intend to file against FedEx Supply Chain for alleged violations of the state’s hazardous waste regulations. Specifically, the District Attorneys’ Offices allege FedEx Supply Chain unlawfully disposed of hazardous waste at one of its California facilities and caused the illegal transportation and disposal of hazardous waste from the retail stores of a FedEx Supply Chain customer at this same facility. The District Attorneys allege these violations began in 2006 and continued until the facility closed in the spring of 2015. In March 2018, we settled this matter for an immaterial amount, and the settlement agreement has been approved by the court. We have been reimbursed by the sellers of GENCO for the amount of the settlement. Other Matters. During the third quarter of 2017, FedEx Trade Networks informed U.S. Customs and Border Protection (“CBP”) that in connection with certain customs entries it may have made improper claims for (i) reduced-duty treatment and (ii) duty-free treatment. In the fourth quarter of 2017 we established accruals totaling $39.3 million for the then-current estimated probable loss for these matters. In the first quarter of 2018, FedEx Trade Networks tendered payments to CBP in these matters totaling $46.5 million, and an additional expense of $7.2 million was recognized. CBP acknowledged receipt of the amounts tendered in these matters, and we are awaiting a response indicating whether these matters are fully resolved. 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, 2018
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	(10) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the nine-month periods ended February 28 was as follows (in millions): 2018 2017 Cash payments for: Interest (net of capitalized interest) $ 430 $ 400 Income taxes $ 707 $ 294 Income tax refunds received (59 ) (16 ) Cash tax payments, net $ 648 $ 278

Condensed Consolidating Financi

Condensed Consolidating Financial Statements	9 Months Ended
	Feb. 28, 2018
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Financial Statements	(11) 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 $16.6 billion of our long-term 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, 2018 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 957 $ 375 $ 1,494 $ (37 ) $ 2,789 Receivables, less allowances 1 5,308 3,462 (100 ) 8,671 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 920 928 267 — 2,115 Total current assets 1,878 6,611 5,223 (137 ) 13,575 PROPERTY AND EQUIPMENT, AT COST 22 50,601 3,754 — 54,377 Less accumulated depreciation and amortization 18 24,999 1,663 — 26,680 Net property and equipment 4 25,602 2,091 — 27,697 INTERCOMPANY RECEIVABLE 1,401 2,508 130 (4,039 ) — GOODWILL — 1,571 5,893 — 7,464 INVESTMENT IN SUBSIDIARIES 31,295 2,928 — (34,223 ) — OTHER ASSETS 2,706 1,566 1,268 (2,425 ) 3,115 $ 37,284 $ 40,786 $ 14,605 $ (40,824 ) $ 51,851 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Short-term borrowings $ 799 $ — $ — $ — $ 799 Current portion of long-term debt 750 6 8 — 764 Accrued salaries and employee benefits 69 1,362 514 — 1,945 Accounts payable 149 1,483 1,607 (137 ) 3,102 Accrued expenses 379 1,605 909 — 2,893 Total current liabilities 2,146 4,456 3,038 (137 ) 9,503 LONG-TERM DEBT, LESS CURRENT PORTION 15,713 288 16 — 16,017 INTERCOMPANY PAYABLE — — 4,039 (4,039 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,285 541 (2,425 ) 2,401 Other liabilities 531 3,605 900 — 5,036 Total other long-term liabilities 531 7,890 1,441 (2,425 ) 7,437 STOCKHOLDERS’ INVESTMENT 18,894 28,152 6,071 (34,223 ) 18,894 $ 37,284 $ 40,786 $ 14,605 $ (40,824 ) $ 51,851 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 Receivables, less allowances 3 4,729 2,928 (61 ) 7,599 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 25 787 248 — 1,060 Total current assets 1,912 5,841 4,983 (108 ) 12,628 PROPERTY AND EQUIPMENT, AT COST 22 47,201 3,403 — 50,626 Less accumulated depreciation and amortization 18 23,211 1,416 — 24,645 Net property and equipment 4 23,990 1,987 — 25,981 INTERCOMPANY RECEIVABLE 1,521 2,607 — (4,128 ) — GOODWILL — 1,571 5,583 — 7,154 INVESTMENT IN SUBSIDIARIES 27,712 2,636 — (30,348 ) — OTHER ASSETS 3,494 1,271 1,249 (3,225 ) 2,789 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 9 $ 13 $ — $ 22 Accrued salaries and employee benefits 72 1,335 507 — 1,914 Accounts payable 10 1,411 1,439 (108 ) 2,752 Accrued expenses 991 1,522 717 — 3,230 Total current liabilities 1,073 4,277 2,676 (108 ) 7,918 LONG-TERM DEBT, LESS CURRENT PORTION 14,641 244 24 — 14,909 INTERCOMPANY PAYABLE — — 4,128 (4,128 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 5,472 238 (3,225 ) 2,485 Other liabilities 2,856 3,448 863 — 7,167 Total other long-term liabilities 2,856 8,920 1,101 (3,225 ) 9,652 STOCKHOLDERS’ INVESTMENT 16,073 24,475 5,873 (30,348 ) 16,073 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,433 $ 4,229 $ (136 ) $ 16,526 OPERATING EXPENSES: Salaries and employee benefits 39 4,623 1,319 — 5,981 Purchased transportation — 2,459 1,560 (84 ) 3,935 Rentals and landing fees 2 684 189 (2 ) 873 Depreciation and amortization 1 670 115 — 786 Fuel — 837 77 — 914 Maintenance and repairs 1 543 84 — 628 Intercompany charges, net (114 ) 185 (71 ) — — Other 71 1,596 791 (50 ) 2,408 — 11,597 4,064 (136 ) 15,525 OPERATING INCOME — 836 165 — 1,001 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,074 2 — (2,076 ) — Interest, net (137 ) 11 1 — (125 ) Intercompany charges, net 140 (78 ) (62 ) — — Other, net (3 ) 104 (103 ) — (2 ) INCOME BEFORE INCOME TAXES 2,074 875 1 (2,076 ) 874 Provision for income taxes — (1,197 ) (3 ) — (1,200 ) NET INCOME $ 2,074 $ 2,072 $ 4 $ (2,076 ) $ 2,074 COMPREHENSIVE INCOME $ 2,051 $ 2,069 $ 107 $ (2,076 ) $ 2,151 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) Nine Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 36,044 $ 12,445 $ (353 ) $ 48,136 OPERATING EXPENSES: Salaries and employee benefits 112 13,289 3,840 — 17,241 Purchased transportation — 6,836 4,600 (216 ) 11,220 Rentals and landing fees 4 1,951 577 (6 ) 2,526 Depreciation and amortization 1 1,958 334 — 2,293 Fuel — 2,220 215 — 2,435 Maintenance and repairs 1 1,729 238 — 1,968 Intercompany charges, net (325 ) 298 27 — — Other 207 4,664 2,333 (131 ) 7,073 — 32,945 12,164 (353 ) 44,756 OPERATING INCOME — 3,099 281 — 3,380 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 3,445 39 — (3,484 ) — Interest, net (396 ) 35 (2 ) — (363 ) Intercompany charges, net 403 (220 ) (183 ) — — Other, net (7 ) 88 (103 ) — (22 ) INCOME BEFORE INCOME TAXES 3,445 3,041 (7 ) (3,484 ) 2,995 Provision for income taxes — (573 ) 123 — (450 ) NET INCOME $ 3,445 $ 3,614 $ (130 ) $ (3,484 ) $ 3,445 COMPREHENSIVE INCOME $ 3,385 $ 3,605 $ (3 ) $ (3,484 ) $ 3,503 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 CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3,537 ) $ 4,664 $ 25 $ 10 $ 1,162 INVESTING ACTIVITIES Capital expenditures — (3,746 ) (248 ) — (3,994 ) Business acquisitions, net of cash acquired — (44 ) — — (44 ) Proceeds from asset dispositions and other (5 ) 23 3 — 21 CASH USED IN INVESTING ACTIVITIES (5 ) (3,767 ) (245 ) — (4,017 ) FINANCING ACTIVITIES Proceeds from short-term borrowings, net 797 — — — 797 Net transfers from (to) Parent 807 (895 ) 88 — — Payment on loan between subsidiaries 210 — (210 ) — — Proceeds from debt issuances 1,481 — — — 1,481 Principal payments on debt — (17 ) (14 ) — (31 ) Proceeds from stock issuances 284 — — — 284 Dividends paid (402 ) — — — (402 ) Purchase of treasury stock (558 ) — — — (558 ) Other, net 2 4 — — 6 CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 2,621 (908 ) (136 ) — 1,577 Effect of exchange rate changes on cash (6 ) 61 43 — 98 Net (decrease) increase in cash and cash equivalents (927 ) 50 (313 ) 10 (1,180 ) Cash and cash equivalents at beginning of period 1,884 325 1,807 (47 ) 3,969 Cash and cash equivalents at end of period $ 957 $ 375 $ 1,494 $ (37 ) $ 2,789 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 issuances 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 (USED IN) PROVIDED BY 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

General (Policies)

General (Policies)	9 Months Ended
	Feb. 28, 2018
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, 2017 (“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, 2018, the results of our operations for the three- and nine-month periods ended February 28, 2018 and 2017, and cash flows for the nine-month periods ended February 28, 2018 and 2017. Operating results for the three- and nine-month periods ended February 28, 2018 are not necessarily indicative of the results that may be expected for the year ending May 31, 2018. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2018 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year.

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Feb. 28, 2018
Accumulated Other Comprehensive Income Loss Tables [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides changes in AOCI, net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended February 28 (in millions; amounts in parentheses indicate debits to AOCI): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Foreign currency translation loss: Balance at beginning of period $ (666 ) $ (732 ) $ (685 ) $ (514 ) Translation adjustments 100 110 119 (108 ) Balance at end of period (566 ) (622 ) (566 ) (622 ) Retirement plans adjustments: Balance at beginning of period 232 307 270 345 Reclassifications from AOCI (23 ) (19 ) (61 ) (57 ) Balance at end of period 209 288 209 288 Accumulated other comprehensive (loss) at end of period $ (357 ) $ (334 ) $ (357 ) $ (334 )
Reclassification Out of Accumulated Other Comprehensive Income (Loss)	The following table presents details of the reclassifications from AOCI for the periods ended February 28 (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 2018 2017 2018 2017 Amortization of retirement plans prior service credits, before tax $ 30 $ 31 $ 90 $ 91 Salaries and employee benefits Income tax benefit (7 ) (12 ) (29 ) (34 ) Provision for income taxes AOCI reclassifications, net of tax $ 23 $ 19 $ 61 $ 57 Net income

Computation of Earnings Per S21

Computation of Earnings Per Share (Tables)	9 Months Ended
	Feb. 28, 2018
Computation Of Earnings Per Share Tables [Abstract]
Schedule of basic and diluted earnings per common share	The calculation of basic and diluted earnings per common share for the periods ended February 28 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Basic earnings per common share: Net earnings allocable to common shares (1) $ 2,071 $ 561 $ 3,441 $ 1,974 Weighted-average common shares 268 266 268 266 Basic earnings per common share $ 7.74 $ 2.11 $ 12.85 $ 7.43 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 2,071 $ 561 $ 3,441 $ 1,974 Weighted-average common shares 268 266 268 266 Dilutive effect of share-based awards 5 5 4 4 Weighted-average diluted shares 273 271 272 270 Diluted earnings per common share $ 7.59 $ 2.07 $ 12.63 $ 7.31 Anti-dilutive options excluded from diluted earnings per common share 1.9 4.0 2.6 4.7 (1)

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Feb. 28, 2018
Income Tax Disclosure [Abstract]
Summary of Reconciliation Tax Rates	The following table provides a reconciliation of the 2017 effective tax rates to the 2018 effective tax rates, including the impact of the TCJA, for the periods ended February 28: Three Months Ended Nine Months Ended 2018 2018 2017 Effective Tax Rate 37.5 % 36.6 % Remeasurement of net U.S. deferred tax liability (131.5 ) (38.4 ) Effect of February 2018 pension contribution (a) (23.3 ) (6.8 ) Lower statutory tax rate (18.9 ) (5.5 ) Transition tax (4.1 ) (1.2 ) Other (b) 3.0 0.3 2018 Effective Tax Rate (137.3 )% (15.0 )% (a) The benefit is from the pension contribution deducted on our 2017 tax return at a tax rate of 35%. (b) The 2018 tax rates were negatively impacted by the effect of the NotPetya cyberattack, changes in uncertain tax positions and tax rate impacts on changes in deferred tax items after the TCJA enactment and were favorably impacted from foreign tax credits associated with a second quarter dividend from foreign operations.

Retirement Plans (Tables)

Retirement Plans (Tables)	9 Months Ended
	Feb. 28, 2018
Retirement Plan Tables [Abstract]
Schedule of Retirement Plan Costs	Our retirement plans costs for the periods ended February 28 were as follows (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Defined benefit pension plans $ 39 $ 57 $ 113 $ 173 Defined contribution plans 135 117 386 348 Postretirement healthcare plans 19 19 56 57 $ 193 $ 193 $ 555 $ 578
Schedule of Net Periodic Benefit Cost	Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 28 included the following components (in millions): Three Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Service cost $ 169 $ 160 $ 23 $ 20 $ 9 $ 9 Interest cost 279 282 12 11 10 10 Expected return on plan assets (406 ) (375 ) (10 ) (9 ) — — Amortization of prior service credit and other (29 ) (30 ) 1 (2 ) — — $ 13 $ 37 $ 26 $ 20 $ 19 $ 19 Nine Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Service cost $ 509 $ 479 $ 69 $ 61 $ 27 $ 27 Interest cost 836 846 37 33 29 30 Expected return on plan assets (1,218 ) (1,126 ) (32 ) (30 ) — — Amortization of prior service credit and other (88 ) (89 ) — (1 ) — — $ 39 $ 110 $ 74 $ 63 $ 56 $ 57
Schedule of Contributions to Pension Plans	Contributions to our U.S. Pension Plans for the nine-month periods ended February 28 were as follows (in millions): 2018 2017 Required $ 22 $ 444 Voluntary 2,478 1,306 $ 2,500 $ 1,750

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Feb. 28, 2018
Business Segment Information Tables [Abstract]
Schedule of Segment Information	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 (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues FedEx Express segment $ 9,370 $ 8,569 $ 27,376 $ 25,671 FedEx Ground segment 5,222 4,688 14,790 13,397 FedEx Freight segment 1,694 1,492 5,208 4,747 FedEx Services segment 397 389 1,213 1,198 Eliminations and other (157 ) (141 ) (451 ) (422 ) $ 16,526 $ 14,997 $ 48,136 $ 44,591 Operating Income FedEx Express segment $ 424 $ 557 $ 1,574 $ 1,873 FedEx Ground segment 634 515 1,781 1,590 FedEx Freight segment 55 41 349 264 Eliminations, corporate and other (112 ) (88 ) (324 ) (271 ) $ 1,001 $ 1,025 $ 3,380 $ 3,456

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Feb. 28, 2018
Commitments Tables [Abstract]
Schedule of Purchase Commitments	As of February 28, 2018, our purchase commitments under various contracts for the remainder of 2018 and annually thereafter were as follows (in millions): Aircraft and Aircraft-Related Other (1) Total 2018 (remainder) $ 516 $ 254 $ 770 2019 1,789 725 2,514 2020 1,931 621 2,552 2021 1,244 400 1,644 2022 1,364 251 1,615 Thereafter 3,314 508 3,822 Total $ 10,158 $ 2,759 $ 12,917 (1) Primarily equipment and advertising contracts.
Schedule of Aircraft Purchase Commitments	The following table is a summary of the key aircraft we are committed to purchase as of February 28, 2018 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2018 (remainder) - - 4 1 5 2019 - - 15 3 18 2020 - - 16 6 22 2021 12 5 10 - 27 2022 12 6 10 3 31 Thereafter 26 19 6 - 51 Total 50 30 61 13 154
Schedule of Future Minimum Lease Payments, Operating Leases	A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at February 28, 2018 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases 2018 (remainder) $ 47 $ 585 $ 632 2019 343 2,065 2,408 2020 261 1,854 2,115 2021 203 1,675 1,878 2022 185 1,510 1,695 Thereafter 175 9,018 9,193 Total $ 1,214 $ 16,707 $ 17,921

Supplemental Cash Flow Inform26

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Feb. 28, 2018
Supplemental Cash Flow Tables [Abstract]
Supplemental Cash Flow	Cash paid for interest expense and income taxes for the nine-month periods ended February 28 was as follows (in millions): 2018 2017 Cash payments for: Interest (net of capitalized interest) $ 430 $ 400 Income taxes $ 707 $ 294 Income tax refunds received (59 ) (16 ) Cash tax payments, net $ 648 $ 278

Condensed Consolidating Finan27

Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Feb. 28, 2018
Condensed Consolidating Financial Statements Tables [Abstract]
Condensed Consolidating Balance Sheets	CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) February 28, 2018 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 957 $ 375 $ 1,494 $ (37 ) $ 2,789 Receivables, less allowances 1 5,308 3,462 (100 ) 8,671 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 920 928 267 — 2,115 Total current assets 1,878 6,611 5,223 (137 ) 13,575 PROPERTY AND EQUIPMENT, AT COST 22 50,601 3,754 — 54,377 Less accumulated depreciation and amortization 18 24,999 1,663 — 26,680 Net property and equipment 4 25,602 2,091 — 27,697 INTERCOMPANY RECEIVABLE 1,401 2,508 130 (4,039 ) — GOODWILL — 1,571 5,893 — 7,464 INVESTMENT IN SUBSIDIARIES 31,295 2,928 — (34,223 ) — OTHER ASSETS 2,706 1,566 1,268 (2,425 ) 3,115 $ 37,284 $ 40,786 $ 14,605 $ (40,824 ) $ 51,851 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Short-term borrowings $ 799 $ — $ — $ — $ 799 Current portion of long-term debt 750 6 8 — 764 Accrued salaries and employee benefits 69 1,362 514 — 1,945 Accounts payable 149 1,483 1,607 (137 ) 3,102 Accrued expenses 379 1,605 909 — 2,893 Total current liabilities 2,146 4,456 3,038 (137 ) 9,503 LONG-TERM DEBT, LESS CURRENT PORTION 15,713 288 16 — 16,017 INTERCOMPANY PAYABLE — — 4,039 (4,039 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 4,285 541 (2,425 ) 2,401 Other liabilities 531 3,605 900 — 5,036 Total other long-term liabilities 531 7,890 1,441 (2,425 ) 7,437 STOCKHOLDERS’ INVESTMENT 18,894 28,152 6,071 (34,223 ) 18,894 $ 37,284 $ 40,786 $ 14,605 $ (40,824 ) $ 51,851 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 Receivables, less allowances 3 4,729 2,928 (61 ) 7,599 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 25 787 248 — 1,060 Total current assets 1,912 5,841 4,983 (108 ) 12,628 PROPERTY AND EQUIPMENT, AT COST 22 47,201 3,403 — 50,626 Less accumulated depreciation and amortization 18 23,211 1,416 — 24,645 Net property and equipment 4 23,990 1,987 — 25,981 INTERCOMPANY RECEIVABLE 1,521 2,607 — (4,128 ) — GOODWILL — 1,571 5,583 — 7,154 INVESTMENT IN SUBSIDIARIES 27,712 2,636 — (30,348 ) — OTHER ASSETS 3,494 1,271 1,249 (3,225 ) 2,789 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 9 $ 13 $ — $ 22 Accrued salaries and employee benefits 72 1,335 507 — 1,914 Accounts payable 10 1,411 1,439 (108 ) 2,752 Accrued expenses 991 1,522 717 — 3,230 Total current liabilities 1,073 4,277 2,676 (108 ) 7,918 LONG-TERM DEBT, LESS CURRENT PORTION 14,641 244 24 — 14,909 INTERCOMPANY PAYABLE — — 4,128 (4,128 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 5,472 238 (3,225 ) 2,485 Other liabilities 2,856 3,448 863 — 7,167 Total other long-term liabilities 2,856 8,920 1,101 (3,225 ) 9,652 STOCKHOLDERS’ INVESTMENT 16,073 24,475 5,873 (30,348 ) 16,073 $ 34,643 $ 37,916 $ 13,802 $ (37,809 ) $ 48,552
Condensed Consolidating Statements of Comprehensive Income	CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,433 $ 4,229 $ (136 ) $ 16,526 OPERATING EXPENSES: Salaries and employee benefits 39 4,623 1,319 — 5,981 Purchased transportation — 2,459 1,560 (84 ) 3,935 Rentals and landing fees 2 684 189 (2 ) 873 Depreciation and amortization 1 670 115 — 786 Fuel — 837 77 — 914 Maintenance and repairs 1 543 84 — 628 Intercompany charges, net (114 ) 185 (71 ) — — Other 71 1,596 791 (50 ) 2,408 — 11,597 4,064 (136 ) 15,525 OPERATING INCOME — 836 165 — 1,001 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,074 2 — (2,076 ) — Interest, net (137 ) 11 1 — (125 ) Intercompany charges, net 140 (78 ) (62 ) — — Other, net (3 ) 104 (103 ) — (2 ) INCOME BEFORE INCOME TAXES 2,074 875 1 (2,076 ) 874 Provision for income taxes — (1,197 ) (3 ) — (1,200 ) NET INCOME $ 2,074 $ 2,072 $ 4 $ (2,076 ) $ 2,074 COMPREHENSIVE INCOME $ 2,051 $ 2,069 $ 107 $ (2,076 ) $ 2,151 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) Nine Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 36,044 $ 12,445 $ (353 ) $ 48,136 OPERATING EXPENSES: Salaries and employee benefits 112 13,289 3,840 — 17,241 Purchased transportation — 6,836 4,600 (216 ) 11,220 Rentals and landing fees 4 1,951 577 (6 ) 2,526 Depreciation and amortization 1 1,958 334 — 2,293 Fuel — 2,220 215 — 2,435 Maintenance and repairs 1 1,729 238 — 1,968 Intercompany charges, net (325 ) 298 27 — — Other 207 4,664 2,333 (131 ) 7,073 — 32,945 12,164 (353 ) 44,756 OPERATING INCOME — 3,099 281 — 3,380 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 3,445 39 — (3,484 ) — Interest, net (396 ) 35 (2 ) — (363 ) Intercompany charges, net 403 (220 ) (183 ) — — Other, net (7 ) 88 (103 ) — (22 ) INCOME BEFORE INCOME TAXES 3,445 3,041 (7 ) (3,484 ) 2,995 Provision for income taxes — (573 ) 123 — (450 ) NET INCOME $ 3,445 $ 3,614 $ (130 ) $ (3,484 ) $ 3,445 COMPREHENSIVE INCOME $ 3,385 $ 3,605 $ (3 ) $ (3,484 ) $ 3,503 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 Cash Flows	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended February 28, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (3,537 ) $ 4,664 $ 25 $ 10 $ 1,162 INVESTING ACTIVITIES Capital expenditures — (3,746 ) (248 ) — (3,994 ) Business acquisitions, net of cash acquired — (44 ) — — (44 ) Proceeds from asset dispositions and other (5 ) 23 3 — 21 CASH USED IN INVESTING ACTIVITIES (5 ) (3,767 ) (245 ) — (4,017 ) FINANCING ACTIVITIES Proceeds from short-term borrowings, net 797 — — — 797 Net transfers from (to) Parent 807 (895 ) 88 — — Payment on loan between subsidiaries 210 — (210 ) — — Proceeds from debt issuances 1,481 — — — 1,481 Principal payments on debt — (17 ) (14 ) — (31 ) Proceeds from stock issuances 284 — — — 284 Dividends paid (402 ) — — — (402 ) Purchase of treasury stock (558 ) — — — (558 ) Other, net 2 4 — — 6 CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 2,621 (908 ) (136 ) — 1,577 Effect of exchange rate changes on cash (6 ) 61 43 — 98 Net (decrease) increase in cash and cash equivalents (927 ) 50 (313 ) 10 (1,180 ) Cash and cash equivalents at beginning of period 1,884 325 1,807 (47 ) 3,969 Cash and cash equivalents at end of period $ 957 $ 375 $ 1,494 $ (37 ) $ 2,789 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 issuances 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 (USED IN) PROVIDED BY 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

General - Additional Informatio

General - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 13, 2017	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017	Jan. 26, 2016
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Stock-based compensation		$ 32	$ 31	$ 135	$ 123
Operating income		1,001	1,025	3,380	3,456
Lease liability and related right-of-use asset		$ 13,000		$ 13,000
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased						25,000,000
Number of Shares Repurchased		1,200,000		2,400,000
Treasury Stock Acquired, Average Cost Per Share		$ 248.73		$ 232
Payments for Repurchase of Common Stock		$ 288		$ 558	358
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased		13,600,000		13,600,000
Dividends Payable, Date Declared		Feb. 16, 2018
Dividends Payable Amount Per Share		$ 0.50		$ 0.50
Dividends Payable, Date To Be Paid		Apr. 2, 2018
Dividends Payable, Date Of Record		Mar. 12, 2018
ASU 201703 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Operating income		$ 143	$ 113	$ 436	$ 337
Northwest Research, Inc. [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Cash paid for acquisition of business	$ 50

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance			$ 16,073
Translation adjustments	$ 100	$ 110	119	$ (108)
Ending balance	18,894		18,894
Foreign Currency Translation Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(666)	(732)	(685)	(514)
Translation adjustments	100	110	119	(108)
Ending balance	(566)	(622)	(566)	(622)
Retirement Plans Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	232	307	270	345
Reclassifications from AOCI	(23)	(19)	(61)	(57)
Ending balance	209	288	209	288
Accumulated Other Comprehensive (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Ending balance	$ (357)	$ (334)	$ (357)	$ (334)

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	$ 30	$ 31	$ 90	$ 91
Provision for income taxes	(7)	(12)	(29)	(34)
Net income	$ 23	$ 19	$ 61	$ 57

Financing Arrangements - Additi

Financing Arrangements - Additional Information (Details) - USD ($)	9 Months Ended
	Feb. 28, 2018	Nov. 30, 2017	May 31, 2017
Line Of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Nov. 13, 2020
Letter of Credit Maximum Sublimit Amount	$ 500,000,000
Financial Covenant Terms Ratio	350.00%
Financial Covenant Compliance Ratio	220.00%
Commercial paper outstanding	$ 800,000,000
Letters Of Credit Outstanding	54,000,000
Long Term Debt Exclusive of Capital Leases Carrying Value	16,700,000,000		$ 14,900,000,000
Long Term Debt Exclusive Of Capital Leases Fair Value	$ 17,000,000,000		$ 15,500,000,000
Long-term debt weighted-average interest rate	3.60%
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Line of Credit Facility, Term	5 years
Line Of Credit Facility Maximum Borrowing Capacity	$ 2,000,000,000	$ 1,750,000,000
Line of credit facility outstanding for future borrowings	1,146,000,000
Senior Unsecured Debt due February 2028 and February 2048 [Member]
Line Of Credit Facility [Line Items]
Senior Unsecured Debt Issued	$ 1,500,000,000
Senior Unsecured Debt, Frequency of Periodic Interest Payment	semi-annually
3.40% Senior Unsecured Debt due February 2028 [Member]
Line Of Credit Facility [Line Items]
Senior Unsecured Debt Issued	$ 500,000,000
Senior Unsecured Debt, Fixed Interest Rate Percentage	3.40%
Senior Unsecured Debt, Maturity Date	Feb. 29, 2028
4.05% Senior Unsecured Debt due February 2048 [Member]
Line Of Credit Facility [Line Items]
Senior Unsecured Debt Issued	$ 1,000,000,000
Senior Unsecured Debt, Fixed Interest Rate Percentage	4.05%
Senior Unsecured Debt, Maturity Date	Feb. 29, 2048

Computation of Earnings Per S32

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, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Basic earnings per common share:
Net earnings allocable to common shares	[1]	$ 2,071	$ 561	$ 3,441	$ 1,974
Weighted-average common shares		268	266	268	266
Basic earnings per common share		$ 7.74	$ 2.11	$ 12.85	$ 7.43
Diluted earnings per common share:
Net earnings allocable to common shares	[1]	$ 2,071	$ 561	$ 3,441	$ 1,974
Weighted-average common shares		268	266	268	266
Dilutive effect of share-based awards		5	5	4	4
Weighted-average diluted shares		273	271	272	270
Diluted earnings per common share		$ 7.59	$ 2.07	$ 12.63	$ 7.31
Anti-dilutive options excluded from diluted earnings per common share		1.9	4	2.6	4.7
[1]	Net earnings available to participating securities were immaterial in all periods presented.

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	Feb. 07, 2018	Feb. 28, 2018	May 31, 2018	Dec. 31, 2017	Feb. 28, 2018	Feb. 28, 2017	May 31, 2019	May 31, 2018
Income Taxes [Line Items]
Statutory federal income tax rate				35.00%
Measurement period					1 year
Provisional benefit related to remeasurement of net U.S. deferred tax liability		$ 1,150
Provisional benefit from foreign tax credits exceeding one-time transition tax on deferred foreign earnings		36
U.S. Pension Plans [Member]
Income Taxes [Line Items]
Additional provisional amount recognized one time benefit		$ 204
Benefit of contribution	$ 1,500				$ 2,500	$ 1,750
Scenario Plan [Member]
Income Taxes [Line Items]
Statutory federal income tax rate			29.20%				21.00%
Scenario, Forecast [Member]
Income Taxes [Line Items]
Income tax benefit related to lower statutory income tax rate year-to-date earnings								$ 165

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the Effective Income Tax Rate (Details)		3 Months Ended		9 Months Ended
		Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Income Tax Disclosure [Abstract]
Effective Tax Rate		(137.30%)	37.50%	(15.00%)	36.60%
Remeasurement of net U.S. deferred tax liability		(131.50%)		(38.40%)
Effect of February 2018 pension contribution	[1]	(23.30%)		(6.80%)
Lower statutory tax rate		(18.90%)		(5.50%)
Transition tax		(4.10%)		(1.20%)
Other	[2]	3.00%		0.30%
[1]	The benefit is from the pension contribution deducted on our 2017 tax return at a tax rate of 35%.
[2]	The 2018 tax rates were negatively impacted by the effect of the NotPetya cyberattack, changes in uncertain tax positions and tax rate impacts on changes in deferred tax items after the TCJA enactment and were favorably impacted from foreign tax credits associated with a second quarter dividend from foreign operations.

Income Taxes - Reconciliation35

Income Taxes - Reconciliation of the Effective Income Tax Rate (Parenthetical) (Details)	7 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Tax rate	35.00%

Retirement Plans - Schedule of

Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Pension And Other Postretirement Benefit Expense [Abstract]
Defined benefit pension plans	$ 39	$ 57	$ 113	$ 173
Defined contribution plans	135	117	386	348
Postretirement healthcare plans	19	19	56	57
Retirement plans costs	$ 193	$ 193	$ 555	$ 578

Retirement Plans - Schedule o37

Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Pension Plans [Member] | U.S. Pension Plans [Member]
Net Periodic Benefit Cost
Service cost	$ 169	$ 160	$ 509	$ 479
Interest cost	279	282	836	846
Expected return on plan assets	(406)	(375)	(1,218)	(1,126)
Amortization of prior service credit and other	(29)	(30)	(88)	(89)
Total net periodic benefit cost	13	37	39	110
Pension Plans [Member] | International Pension Plans [Member]
Net Periodic Benefit Cost
Service cost	23	20	69	61
Interest cost	12	11	37	33
Expected return on plan assets	(10)	(9)	(32)	(30)
Amortization of prior service credit and other	1	(2)		(1)
Total net periodic benefit cost	26	20	74	63
Postretirement Healthcare Plans [Member]
Net Periodic Benefit Cost
Service cost	9	9	27	27
Interest cost	10	10	29	30
Total net periodic benefit cost	$ 19	$ 19	$ 56	$ 57

Retirement Plans - Schedule o38

Retirement Plans - Schedule of Contributions to Pension Plans (Details) - U.S. Pension Plans [Member] - USD ($) $ in Millions	Feb. 07, 2018	Feb. 28, 2018	Feb. 28, 2018	Feb. 28, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	$ 1,500		$ 2,500	$ 1,750
Required Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer			22	444
Voluntary Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer		$ 1,750	$ 2,478	$ 1,306

Retirement Plans - Additional I

Retirement Plans - Additional Information (Details) - U.S. Pension Plans [Member] - USD ($) $ in Millions	Feb. 07, 2018	Feb. 28, 2018	Feb. 28, 2018	Feb. 28, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer	$ 1,500		$ 2,500	$ 1,750
Voluntary Contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Contributions By Employer		$ 1,750	$ 2,478	$ 1,306

Business Segment Information -

Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Segment Reporting Information [Line Items]
Revenues	$ 16,526	$ 14,997	$ 48,136	$ 44,591
Operating Income	1,001	1,025	3,380	3,456
FedEx Express Segment [Member]
Segment Reporting Information [Line Items]
Revenues	9,370	8,569	27,376	25,671
Operating Income	424	557	1,574	1,873
FedEx Ground Segment [Member]
Segment Reporting Information [Line Items]
Revenues	5,222	4,688	14,790	13,397
Operating Income	634	515	1,781	1,590
FedEx Freight Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,694	1,492	5,208	4,747
Operating Income	55	41	349	264
FedEx Services Segment [Member]
Segment Reporting Information [Line Items]
Revenues	397	389	1,213	1,198
Eliminations, Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	(157)	(141)	(451)	(422)
Operating Income	$ (112)	$ (88)	$ (324)	$ (271)

Commitments - Schedule of Purch

Commitments - Schedule of Purchase Commitments (Details) $ in Millions	Feb. 28, 2018USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
2018 (remainder)	$ 770
2,019	2,514
2,020	2,552
2,021	1,644
2,022	1,615
Thereafter	3,822
Total	12,917
Aircraft And Related Equipment Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2018 (remainder)	516
2,019	1,789
2,020	1,931
2,021	1,244
2,022	1,364
Thereafter	3,314
Total	10,158
Other Commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
2018 (remainder)	254	[1]
2,019	725	[1]
2,020	621	[1]
2,021	400	[1]
2,022	251	[1]
Thereafter	508	[1]
Total	$ 2,759	[1]
[1]	Primarily equipment and advertising contracts.

Commitments - Additional Inform

Commitments - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Feb. 28, 2018USD ($)air-craft	Feb. 28, 2018USD ($)air-craft
Other Aircraft Commitments Disclosure [Abstract]
Boeing 767F Conditional Aircraft Commitments		4
Boeing 777F Conditional Aircraft Commitments		3
Deposit and Progress Payments | $	$ 922	$ 922
B777F Aircraft from 2021 to 2020 [Member]
Other Aircraft Commitments Disclosure [Abstract]
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments	2
Aircraft expected to be delivered, earliest fiscal year	2,020
Aircraft expected to be delivered, latest fiscal year	2,021
B777F Aircraft from 2021 to 2019 [Member]
Other Aircraft Commitments Disclosure [Abstract]
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments	1
Aircraft expected to be delivered, earliest fiscal year	2,019
Aircraft expected to be delivered, latest fiscal year	2,021
B777F Aircraft from 2022 to 2020 [Member]
Other Aircraft Commitments Disclosure [Abstract]
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments	1
Aircraft expected to be delivered, earliest fiscal year	2,020
Aircraft expected to be delivered, latest fiscal year	2,022

Commitments - Schedule of Aircr

Commitments - Schedule of Aircraft Purchase Commitments (Details)	9 Months Ended
	Feb. 28, 2018air-craft
Schedule of Aircraft Commitments [Line Items]
2018 (remainder)	5
2,019	18
2,020	22
2,021	27
2,022	31
Thereafter	51
Total	154
Cessna SkyCourier 408 [Member]
Schedule of Aircraft Commitments [Line Items]
2,021	12
2,022	12
Thereafter	26
Total	50
Boeing 767 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2018 (remainder)	4
2,019	15
2,020	16
2,021	10
2,022	10
Thereafter	6
Total	61
ATR 72-600F [Member]
Schedule of Aircraft Commitments [Line Items]
2,021	5
2,022	6
Thereafter	19
Total	30
Boeing 777 Freighter [Member]
Schedule of Aircraft Commitments [Line Items]
2018 (remainder)	1
2,019	3
2,020	6
2,022	3
Total	13

Commitments - Schedule of Futur

Commitments - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions	Feb. 28, 2018USD ($)
Schedule of Future Minimum Operating Lease Payments [Line Items]
2018 (remainder)	$ 632
2,019	2,408
2,020	2,115
2,021	1,878
2,022	1,695
Thereafter	9,193
Total	17,921
Aircraft and Related Equipment [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2018 (remainder)	47
2,019	343
2,020	261
2,021	203
2,022	185
Thereafter	175
Total	1,214
Facilities and Other [Member]
Schedule of Future Minimum Operating Lease Payments [Line Items]
2018 (remainder)	585
2,019	2,065
2,020	1,854
2,021	1,675
2,022	1,510
Thereafter	9,018
Total	$ 16,707

Contingencies - Additional Info

Contingencies - Additional Information (Details) - U.S. Customs and Border Protection ("CBP") [Member] - Expected Litigation Loss [Member] - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2017	May 31, 2017
Loss Contingencies [Line Items]
Loss contingency amount		$ 39.3
Payments for legal settlements	$ 46.5
Litigation settlement expense	$ 7.2

Supplemental Cash Flow Inform46

Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Supplemental Cash Flow Information [Abstract]
Interest (net of capitalized interest)	$ 430	$ 400
Income taxes	707	294
Income tax refunds received	(59)	(16)
Cash tax payments, net	$ 648	$ 278

Condensed Consolidating Finan47

Condensed Consolidating Financial Statements - Additional Information (Details) $ in Billions	Feb. 28, 2018USD ($)
Guarantor Obligations [Abstract]
Long- term debt Guarantee	$ 16.6

Condensed Consolidating Balance

Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Feb. 28, 2018	May 31, 2017	Feb. 28, 2017	May 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 2,789	$ 3,969	$ 3,173	$ 3,534
Receivables, less allowances	8,671	7,599
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	2,115	1,060
Total current assets	13,575	12,628
PROPERTY AND EQUIPMENT, AT COST	54,377	50,626
Less accumulated depreciation and amortization	26,680	24,645
Net property and equipment	27,697	25,981
GOODWILL	7,464	7,154
OTHER ASSETS	3,115	2,789
ASSETS	51,851	48,552
CURRENT LIABILITIES
Short-term borrowings	799
Current portion of long-term debt	764	22
Accrued salaries and employee benefits	1,945	1,914
Accounts payable	3,102	2,752
Accrued expenses	2,893	3,230
Total current liabilities	9,503	7,918
LONG-TERM DEBT, LESS CURRENT PORTION	16,017	14,909
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,401	2,485
Other liabilities	5,036	7,167
Total other long-term liabilities	7,437	9,652
STOCKHOLDERS’ INVESTMENT	18,894	16,073
LIABILITIES AND STOCKHOLDERS' INVESTMENT	51,851	48,552
Consolidation Eliminations [Member]
CURRENT ASSETS
Cash and cash equivalents	(37)	(47)	(45)	(43)
Receivables, less allowances	(100)	(61)
Total current assets	(137)	(108)
INTERCOMPANY RECEIVABLE	(4,039)	(4,128)
INVESTMENT IN SUBSIDIARIES	(34,223)	(30,348)
OTHER ASSETS	(2,425)	(3,225)
ASSETS	(40,824)	(37,809)
CURRENT LIABILITIES
Accounts payable	(137)	(108)
Total current liabilities	(137)	(108)
INTERCOMPANY PAYABLE	(4,039)	(4,128)
OTHER LONG-TERM LIABILITIES
Deferred income taxes	(2,425)	(3,225)
Total other long-term liabilities	(2,425)	(3,225)
STOCKHOLDERS’ INVESTMENT	(34,223)	(30,348)
LIABILITIES AND STOCKHOLDERS' INVESTMENT	(40,824)	(37,809)
Parent Company [Member] | Reportable Legal Entities [Member]
CURRENT ASSETS
Cash and cash equivalents	957	1,884	1,475	1,974
Receivables, less allowances	1	3
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	920	25
Total current assets	1,878	1,912
PROPERTY AND EQUIPMENT, AT COST	22	22
Less accumulated depreciation and amortization	18	18
Net property and equipment	4	4
INTERCOMPANY RECEIVABLE	1,401	1,521
INVESTMENT IN SUBSIDIARIES	31,295	27,712
OTHER ASSETS	2,706	3,494
ASSETS	37,284	34,643
CURRENT LIABILITIES
Short-term borrowings	799
Current portion of long-term debt	750
Accrued salaries and employee benefits	69	72
Accounts payable	149	10
Accrued expenses	379	991
Total current liabilities	2,146	1,073
LONG-TERM DEBT, LESS CURRENT PORTION	15,713	14,641
OTHER LONG-TERM LIABILITIES
Other liabilities	531	2,856
Total other long-term liabilities	531	2,856
STOCKHOLDERS’ INVESTMENT	18,894	16,073
LIABILITIES AND STOCKHOLDERS' INVESTMENT	37,284	34,643
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
CURRENT ASSETS
Cash and cash equivalents	375	325	301	326
Receivables, less allowances	5,308	4,729
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	928	787
Total current assets	6,611	5,841
PROPERTY AND EQUIPMENT, AT COST	50,601	47,201
Less accumulated depreciation and amortization	24,999	23,211
Net property and equipment	25,602	23,990
INTERCOMPANY RECEIVABLE	2,508	2,607
GOODWILL	1,571	1,571
INVESTMENT IN SUBSIDIARIES	2,928	2,636
OTHER ASSETS	1,566	1,271
ASSETS	40,786	37,916
CURRENT LIABILITIES
Current portion of long-term debt	6	9
Accrued salaries and employee benefits	1,362	1,335
Accounts payable	1,483	1,411
Accrued expenses	1,605	1,522
Total current liabilities	4,456	4,277
LONG-TERM DEBT, LESS CURRENT PORTION	288	244
OTHER LONG-TERM LIABILITIES
Deferred income taxes	4,285	5,472
Other liabilities	3,605	3,448
Total other long-term liabilities	7,890	8,920
STOCKHOLDERS’ INVESTMENT	28,152	24,475
LIABILITIES AND STOCKHOLDERS' INVESTMENT	40,786	37,916
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
CURRENT ASSETS
Cash and cash equivalents	1,494	1,807	$ 1,442	$ 1,277
Receivables, less allowances	3,462	2,928
Spare parts, supplies, fuel, prepaid expenses and other, less allowances	267	248
Total current assets	5,223	4,983
PROPERTY AND EQUIPMENT, AT COST	3,754	3,403
Less accumulated depreciation and amortization	1,663	1,416
Net property and equipment	2,091	1,987
INTERCOMPANY RECEIVABLE	130
GOODWILL	5,893	5,583
OTHER ASSETS	1,268	1,249
ASSETS	14,605	13,802
CURRENT LIABILITIES
Current portion of long-term debt	8	13
Accrued salaries and employee benefits	514	507
Accounts payable	1,607	1,439
Accrued expenses	909	717
Total current liabilities	3,038	2,676
LONG-TERM DEBT, LESS CURRENT PORTION	16	24
INTERCOMPANY PAYABLE	4,039	4,128
OTHER LONG-TERM LIABILITIES
Deferred income taxes	541	238
Other liabilities	900	863
Total other long-term liabilities	1,441	1,101
STOCKHOLDERS’ INVESTMENT	6,071	5,873
LIABILITIES AND STOCKHOLDERS' INVESTMENT	$ 14,605	$ 13,802

Condensed Consolidating Stateme

Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Condensed Financial Statements Captions [Line Items]
REVENUES	$ 16,526	$ 14,997	$ 48,136	$ 44,591
OPERATING EXPENSES:
Salaries and employee benefits	5,981	5,395	17,241	16,059
Purchased transportation	3,935	3,498	11,220	10,169
Rentals and landing fees	873	834	2,526	2,426
Depreciation and amortization	786	762	2,293	2,241
Fuel	914	735	2,435	2,043
Maintenance and repairs	628	588	1,968	1,765
Other	2,408	2,160	7,073	6,432
OPERATING EXPENSES	15,525	13,972	44,756	41,135
OPERATING INCOME	1,001	1,025	3,380	3,456
OTHER INCOME (EXPENSE):
Interest, net	(125)	(122)	(363)	(354)
Other, net	(2)	(4)	(22)	17
INCOME BEFORE INCOME TAXES	874	899	2,995	3,119
PROVISION FOR INCOME TAXES	(1,200)	337	(450)	1,142
NET INCOME	2,074	562	3,445	1,977
COMPREHENSIVE INCOME	2,151	653	3,503	1,812
Consolidation Eliminations [Member]
Condensed Financial Statements Captions [Line Items]
REVENUES	(136)	(72)	(353)	(212)
OPERATING EXPENSES:
Purchased transportation	(84)	(27)	(216)	(81)
Rentals and landing fees	(2)	(1)	(6)	(4)
Other	(50)	(44)	(131)	(127)
OPERATING EXPENSES	(136)	(72)	(353)	(212)
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	(2,076)	(521)	(3,484)	(2,046)
INCOME BEFORE INCOME TAXES	(2,076)	(521)	(3,484)	(2,046)
NET INCOME	(2,076)	(521)	(3,484)	(2,046)
COMPREHENSIVE INCOME	(2,076)	(521)	(3,484)	(2,046)
Parent Company [Member] | Reportable Legal Entities [Member]
OPERATING EXPENSES:
Salaries and employee benefits	39	29	112	94
Rentals and landing fees	2	1	4	4
Depreciation and amortization	1	1	1	1
Maintenance and repairs	1	1	1	1
Intercompany charges, net	(114)	(87)	(325)	(266)
Other	71	55	207	166
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	2,074	562	3,445	1,977
Interest, net	(137)	(129)	(396)	(374)
Intercompany charges, net	140	130	403	376
Other, net	(3)	(1)	(7)	(2)
INCOME BEFORE INCOME TAXES	2,074	562	3,445	1,977
NET INCOME	2,074	562	3,445	1,977
COMPREHENSIVE INCOME	2,051	543	3,385	1,921
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
Condensed Financial Statements Captions [Line Items]
REVENUES	12,433	11,275	36,044	33,175
OPERATING EXPENSES:
Salaries and employee benefits	4,623	4,210	13,289	12,477
Purchased transportation	2,459	2,219	6,836	6,210
Rentals and landing fees	684	657	1,951	1,902
Depreciation and amortization	670	649	1,958	1,894
Fuel	837	657	2,220	1,819
Maintenance and repairs	543	514	1,729	1,544
Intercompany charges, net	185	(33)	298	67
Other	1,596	1,428	4,664	4,230
OPERATING EXPENSES	11,597	10,301	32,945	30,143
OPERATING INCOME	836	974	3,099	3,032
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries	2	(41)	39	69
Interest, net	11	6	35	19
Intercompany charges, net	(78)	(79)	(220)	(224)
Other, net	104	(118)	88	(128)
INCOME BEFORE INCOME TAXES	875	742	3,041	2,768
PROVISION FOR INCOME TAXES	(1,197)	280	(573)	951
NET INCOME	2,072	462	3,614	1,817
COMPREHENSIVE INCOME	2,069	444	3,605	1,781
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
Condensed Financial Statements Captions [Line Items]
REVENUES	4,229	3,794	12,445	11,628
OPERATING EXPENSES:
Salaries and employee benefits	1,319	1,156	3,840	3,488
Purchased transportation	1,560	1,306	4,600	4,040
Rentals and landing fees	189	177	577	524
Depreciation and amortization	115	112	334	346
Fuel	77	78	215	224
Maintenance and repairs	84	73	238	220
Intercompany charges, net	(71)	120	27	199
Other	791	721	2,333	2,163
OPERATING EXPENSES	4,064	3,743	12,164	11,204
OPERATING INCOME	165	51	281	424
OTHER INCOME (EXPENSE):
Interest, net	1	1	(2)	1
Intercompany charges, net	(62)	(51)	(183)	(152)
Other, net	(103)	115	(103)	147
INCOME BEFORE INCOME TAXES	1	116	(7)	420
PROVISION FOR INCOME TAXES	(3)	57	123	191
NET INCOME	4	59	(130)	229
COMPREHENSIVE INCOME	$ 107	$ 187	$ (3)	$ 156

Condensed Consolidating State50

Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Feb. 28, 2018	Feb. 28, 2018	Feb. 28, 2017
Condensed Financial Statements Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		$ 1,162	$ 2,645
Investing Activities:
Capital expenditures		(3,994)	(3,790)
Business acquisitions, net of cash acquired		(44)
Proceeds from asset dispositions and other		21	123
Cash used in investing activities		(4,017)	(3,667)
Financing Activities:
Proceeds from short-term borrowings, net		797
Proceeds from debt issuances		1,481	1,190
Principal payments on debt		(31)	(49)
Proceeds from stock issuances		284	265
Dividends paid		(402)	(319)
Purchase of treasury stock	$ (288)	(558)	(358)
Other, net		6	2
Cash provided by financing activities		1,577	731
Effect of exchange rate changes on cash		98	(70)
Net decrease in cash and cash equivalents		(1,180)	(361)
Cash and cash equivalents at beginning of period		3,969	3,534
Cash and cash equivalents at end of period	2,789	2,789	3,173
Consolidation Eliminations [Member]
Condensed Financial Statements Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		10	(2)
Financing Activities:
Net decrease in cash and cash equivalents		10	(2)
Cash and cash equivalents at beginning of period		(47)	(43)
Cash and cash equivalents at end of period	(37)	(37)	(45)
Parent Company [Member] | Reportable Legal Entities [Member]
Condensed Financial Statements Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(3,537)	(1,497)
Investing Activities:
Proceeds from asset dispositions and other		(5)	85
Cash used in investing activities		(5)	85
Financing Activities:
Proceeds from short-term borrowings, net		797
Net transfers from (to) Parent		807	117
Payment on loan between subsidiaries		210	36
Proceeds from debt issuances		1,481	1,190
Proceeds from stock issuances		284	265
Dividends paid		(402)	(319)
Purchase of treasury stock		(558)	(358)
Other, net		2	(8)
Cash provided by financing activities		2,621	923
Effect of exchange rate changes on cash		(6)	(10)
Net decrease in cash and cash equivalents		(927)	(499)
Cash and cash equivalents at beginning of period		1,884	1,974
Cash and cash equivalents at end of period	957	957	1,475
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
Condensed Financial Statements Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		4,664	3,615
Investing Activities:
Capital expenditures		(3,746)	(3,456)
Business acquisitions, net of cash acquired		(44)
Proceeds from asset dispositions and other		23	16
Cash used in investing activities		(3,767)	(3,440)
Financing Activities:
Net transfers from (to) Parent		(895)	(148)
Payment on loan between subsidiaries			(15)
Intercompany dividends			1
Principal payments on debt		(17)	(33)
Other, net		4	(12)
Cash provided by financing activities		(908)	(207)
Effect of exchange rate changes on cash		61	7
Net decrease in cash and cash equivalents		50	(25)
Cash and cash equivalents at beginning of period		325	326
Cash and cash equivalents at end of period	375	375	301
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
Condensed Financial Statements Captions [Line Items]
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		25	529
Investing Activities:
Capital expenditures		(248)	(334)
Proceeds from asset dispositions and other		3	22
Cash used in investing activities		(245)	(312)
Financing Activities:
Net transfers from (to) Parent		88	31
Payment on loan between subsidiaries		(210)	(21)
Intercompany dividends			(1)
Principal payments on debt		(14)	(16)
Other, net			22
Cash provided by financing activities		(136)	15
Effect of exchange rate changes on cash		43	(67)
Net decrease in cash and cash equivalents		(313)	165
Cash and cash equivalents at beginning of period		1,807	1,277
Cash and cash equivalents at end of period	$ 1,494	$ 1,494	$ 1,442