Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
May 31, 2018 | Jul. 12, 2018 | Nov. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | May 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | FedEx Corporation | ||
Entity Central Index Key | 1,048,911 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 57.3 | ||
Entity Common Stock, Shares Outstanding | 265,924,840 | ||
Trading Symbol | FDX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 3,265 | $ 3,969 | |
Receivables, less allowances of $401 and $252 | 8,481 | 7,599 | |
Spare parts, supplies and fuel, less allowances of $268 and $237 | 525 | 514 | |
Prepaid expenses and other | 1,070 | 546 | |
Total current assets | 13,341 | 12,628 | |
PROPERTY AND EQUIPMENT, AT COST | |||
Aircraft and related equipment | 20,749 | 18,833 | |
Package handling and ground support equipment | 9,727 | 8,989 | |
Information technology | 5,794 | 5,396 | |
Vehicles | 7,708 | 6,961 | |
Facilities and other | 11,143 | 10,447 | |
Gross property and equipment | 55,121 | 50,626 | |
Less accumulated depreciation and amortization | 26,967 | 24,645 | |
Net property and equipment | 28,154 | 25,981 | |
OTHER LONG-TERM ASSETS | |||
Goodwill | 6,973 | 7,154 | |
Other assets | 3,862 | 2,789 | |
Total other long-term assets | 10,835 | 9,943 | |
ASSETS | [1] | 52,330 | 48,552 |
CURRENT LIABILITIES | |||
Current portion of long-term debt | 1,342 | 22 | |
Accrued salaries and employee benefits | 2,177 | 1,914 | |
Accounts payable | 2,977 | 2,752 | |
Accrued expenses | 3,131 | 3,230 | |
Total current liabilities | 9,627 | 7,918 | |
LONG-TERM DEBT, LESS CURRENT PORTION | 15,243 | 14,909 | |
OTHER LONG-TERM LIABILITIES | |||
Deferred income taxes | 2,867 | 2,485 | |
Pension, postretirement healthcare and other benefit obligations | 2,187 | 4,487 | |
Self-insurance accruals | 1,784 | 1,494 | |
Deferred lease obligations | 551 | 531 | |
Deferred gains, principally related to aircraft transactions | 121 | 137 | |
Other liabilities | 534 | 518 | |
Total other long-term liabilities | 8,044 | 9,652 | |
COMMITMENTS AND CONTINGENCIES | |||
COMMON STOCKHOLDERS' INVESTMENT | |||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of May 31, 2018 and 2017 | 32 | 32 | |
Additional paid-in capital | 3,117 | 3,005 | |
Retained earnings | 24,823 | 20,833 | |
Accumulated other comprehensive loss | (578) | (415) | |
Treasury stock, at cost | (7,978) | (7,382) | |
Total common stockholders’ investment | 19,416 | 16,073 | |
LIABILITIES AND STOCKHOLDERS' INVESTMENT | $ 52,330 | $ 48,552 | |
[1] | Segment assets include intercompany receivables. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
CURRENT ASSETS | ||
Allowances for receivables | $ 401 | $ 252 |
Allowances for spare parts, supplies and fuel | $ 268 | $ 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 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||||||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||
Income Statement [Abstract] | |||||||
REVENUES | [1] | $ 65,450 | $ 60,319 | $ 50,365 | |||
OPERATING EXPENSES: | |||||||
Salaries and employee benefits | 23,207 | 21,542 | 18,581 | ||||
Purchased transportation | 15,101 | 13,630 | 9,966 | ||||
Rentals and landing fees | 3,361 | 3,240 | 2,854 | ||||
Depreciation and amortization | 3,095 | 2,995 | 2,631 | ||||
Fuel | 3,374 | 2,773 | 2,399 | ||||
Maintenance and repairs | 2,622 | 2,374 | 2,108 | ||||
Goodwill and other asset impairment charges | 380 | ||||||
Retirement plans mark-to-market adjustment | (10) | (24) | 1,498 | ||||
Other | 9,450 | 8,752 | 7,251 | ||||
OPERATING EXPENSES | 60,580 | 55,282 | 47,288 | ||||
OPERATING INCOME | 4,870 | [2] | 5,037 | [3] | 3,077 | [4] | |
OTHER INCOME (EXPENSE): | |||||||
Interest expense | (558) | (512) | (336) | ||||
Interest income | 48 | 33 | 21 | ||||
Other, net | (7) | 21 | (22) | ||||
OTHER INCOME (EXPENSE) | (517) | (458) | (337) | ||||
INCOME BEFORE INCOME TAXES | 4,353 | 4,579 | 2,740 | ||||
PROVISION FOR INCOME TAXES (BENEFIT) | (219) | 1,582 | 920 | ||||
NET INCOME | $ 4,572 | $ 2,997 | $ 1,820 | ||||
BASIC EARNINGS PER COMMON SHARE | $ 17.08 | $ 11.24 | $ 6.59 | ||||
DILUTED EARNINGS PER COMMON SHARE | $ 16.79 | $ 11.07 | $ 6.51 | ||||
[1] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | ||||||
[2] | Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. | ||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | ||||||
[4] | Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET INCOME | $ 4,572 | $ 2,997 | $ 1,820 |
OTHER COMPREHENSIVE LOSS: | |||
Foreign currency translation adjustments, net of tax expense of $16 in 2018, tax expense of $52 in 2017 and tax benefit of $22 in 2016 | (74) | (171) | (261) |
Amortization of prior service credit and other, net of tax benefit of $37 in 2018, tax benefit of $43 in 2017 and tax benefit of $45 in 2016 | (89) | (75) | (80) |
Other comprehensive loss | (163) | (246) | (341) |
COMPREHENSIVE INCOME | $ 4,409 | $ 2,751 | $ 1,479 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income(Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Other Comprehensive Income, Tax Amounts | |||
Foreign currency translation adjustments, tax (expense) benefit | $ (16) | $ (52) | $ 22 |
Amortization of prior service credit and other, tax benefit | $ 37 | $ 43 | $ 45 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 4,572 | $ 2,997 | $ 1,820 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 3,095 | 2,995 | 2,631 |
Provision for uncollectible accounts | 246 | 136 | 121 |
Deferred income taxes and other noncash items | (231) | 909 | 31 |
Stock-based compensation | 167 | 154 | 144 |
Retirement plans mark-to-market adjustment | (10) | (24) | 1,498 |
Gain from sale of business | (85) | ||
Gain from sale of investment | (35) | ||
Goodwill and other asset impairment charges | 380 | ||
Changes in assets and liabilities: | |||
Receivables | (1,049) | (556) | (199) |
Other current assets | (135) | 78 | (234) |
Pension and postretirement healthcare assets and liabilities, net | (2,345) | (1,688) | (346) |
Accounts payable and other liabilities | 141 | 103 | 467 |
Other, net | (72) | (139) | (225) |
Cash provided by operating activities | 4,674 | 4,930 | 5,708 |
INVESTING ACTIVITIES | |||
Capital expenditures | (5,663) | (5,116) | (4,818) |
Business acquisitions, net of cash acquired | (179) | (4,618) | |
Proceeds from sale of business | 123 | ||
Proceeds from asset dispositions and other | 42 | 135 | (10) |
Cash used in investing activities | (5,677) | (4,981) | (9,446) |
FINANCING ACTIVITIES | |||
Principal payments on debt | (38) | (82) | (41) |
Proceeds from debt issuances | 1,480 | 1,190 | 6,519 |
Proceeds from stock issuances | 327 | 337 | 183 |
Dividends paid | (535) | (426) | (277) |
Purchase of treasury stock | (1,017) | (509) | (2,722) |
Other, net | 10 | 18 | (51) |
Cash provided by financing activities | 227 | 528 | 3,611 |
Effect of exchange rate changes on cash | 72 | (42) | (102) |
Net (decrease) increase in cash and cash equivalents | (704) | 435 | (229) |
Cash and cash equivalents at beginning of period | 3,969 | 3,534 | 3,763 |
Cash and cash equivalents at end of period | $ 3,265 | $ 3,969 | $ 3,534 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Beginning balance at May. 31, 2015 | $ 14,993 | $ 32 | $ 2,786 | $ 16,900 | $ 172 | $ (4,897) |
Net income | 1,820 | 1,820 | ||||
Other comprehensive loss, net of tax | (341) | (341) | ||||
Purchase of treasury stock | (2,722) | (2,722) | ||||
Cash dividends declared | (277) | (277) | ||||
Employee incentive plans and other | 311 | 106 | (72) | 277 | ||
Ending balance at May. 31, 2016 | 13,784 | 32 | 2,892 | 18,371 | (169) | (7,342) |
Net income | 2,997 | 2,997 | ||||
Other comprehensive loss, net of tax | (246) | (246) | ||||
Purchase of treasury stock | (509) | (509) | ||||
Cash dividends declared | (426) | (426) | ||||
Employee incentive plans and other | 473 | 113 | (109) | 469 | ||
Ending balance at May. 31, 2017 | 16,073 | 32 | 3,005 | 20,833 | (415) | (7,382) |
Net income | 4,572 | 4,572 | ||||
Other comprehensive loss, net of tax | (163) | (163) | ||||
Purchase of treasury stock | (1,017) | (1,017) | ||||
Cash dividends declared | (535) | (535) | ||||
Employee incentive plans and other | 486 | 112 | (47) | 421 | ||
Ending balance at May. 31, 2018 | $ 19,416 | $ 32 | $ 3,117 | $ 24,823 | $ (578) | $ (7,978) |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Shareholders Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Other comprehensive loss, tax | $ (21) | $ (9) | $ (67) |
Purchase of treasury stock | 4,300,000 | 3,000,000 | 18,200,000 |
Cash dividends declared, per share | $ 2 | $ 1.60 | $ 1 |
Employee incentive plans and other, shares issued | 3,100,000 | 3,500,000 | 2,000,000 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides 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 Federal Express Corporation (“FedEx 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 Corporation (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“LTL”) freight transportation. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), constitute our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments (FedEx Express, FedEx Ground and FedEx Freight). In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”). FISCAL YEARS . Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2018 or ended May 31 of the year referenced. RECLASSIFICATIONS. Certain reclassifications have been made to the prior years’ segment financial information to conform to the current year’s presentation. See Note 14 below for additional information regarding business segments. PRINCIPLES OF CONSOLIDATION . The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. REVENUE RECOGNITION . We recognize revenue upon delivery of shipments for our transportation businesses and upon completion of services for our business services, logistics and trade services businesses. Transportation services are provided with the use of employees and agents such as independent contractors. FedEx is the principal to the transaction for most of these services and revenue from these transactions is recognized on a gross basis. Costs associated with agents are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income. For shipments in transit, revenue is recorded based on the percentage of service completed at the balance sheet date. Estimates for future billing adjustments to revenue and accounts receivable are recognized at the time of shipment for money-back service guarantees and billing corrections. Delivery costs are accrued as incurred. Our contract logistics, global trade services and certain transportation businesses engage in some transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions and taxes and duties. Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic factors on the composition of accounts receivable. Historically, credit losses have been within management’s expectations. ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $442 million in 2018, $458 million in 2017 and $417 million in 2016. CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost. PROPERTY AND EQUIPMENT . Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal. For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable. The depreciable lives and net book value of our property and equipment are as follows (dollars in millions): Net Book Value at May 31, Range 2018 2017 Wide-body aircraft and related equipment 15 to 30 years $ 10,463 $ 9,103 Narrow-body and feeder aircraft and related equipment 5 to 18 years 2,908 3,099 Package handling and ground support equipment 3 to 30 years 4,028 3,862 Information technology 2 to 10 years 1,277 1,114 Vehicles 3 to 15 years 3,747 3,400 Facilities and other 2 to 40 years 5,731 5,403 Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment. Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $3.1 billion in 2018, $2.9 billion in 2017 and $2.6 billion in 2016. Depreciation and amortization expense includes amortization of assets under capital lease. CAPITALIZED INTEREST . Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $61 million in 2018, $41 million in 2017 and $42 million in 2016. IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment. In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2018, we had five aircraft temporarily idled. These aircraft have been idled for an average of 20 months and are expected to return to revenue service. SALE OF BUSINESS. On April 30, 2018, we sold a non-core business of TNT Express B.V. (“TNT Express”) and recorded a gain of $85 million in the FedEx Express segment. GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. INTANGIBLE ASSETS . Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate. The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” or MTM accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our operating results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet that are not subject to valuation allowances. We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets. SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense. LEASES. We lease certain aircraft, facilities, equipment and vehicles under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express and copier usage at FedEx Office. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term. DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions. DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow or net investment hedge as of May 31, 2018, 2017 and 2016. Accordingly, additional disclosures about these types of financial instruments are excluded from this report. For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in AOCI at that time remain there until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in AOCI are immediately recognized in the income statement. The financial statement impact of derivative transactions was immaterial for the years ended May 31, 2018, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of AOCI within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented. EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of FedEx Express, who are a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. The collective bargaining agreement is scheduled to become amendable in November 2021. Other than the pilots at FedEx Express and drivers at one FedEx Freight facility, our U.S. employees have thus far chosen not to unionize (we acquired FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain,” formerly GENCO Distribution System, Inc.) in 2015, which already had a small number of employees that are members of unions). Additionally, certain of FedEx Express’s non-U.S. employees are unionized. STOCK-BASED COMPENSATION. We recognize compensation expense for stock-based awards under the provisions of the accounting guidance related to share-based payments. This guidance requires recognition of compensation expense for stock-based awards using a fair value method. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants. TREASURY SHARES. In January 2016, our Board of Directors authorized a share repurchase program of up to 25 million shares. During 2018, we repurchased 4.3 million shares of FedEx common stock at an average price of $237.45 per share for a total of $1.0 billion. As of May 31, 2018, 12 million shares remained under the share repurchase authorization. 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. In 2017, we repurchased 3.0 million shares of FedEx common stock at an average price of $172.13 per share for a total of $509 million. In 2016, we repurchased 18.2 million shares of FedEx common stock at an average price of $149.35 per share for a total of $2.7 billion. DIVIDENDS DECLARED PER COMMON SHARE. On June 11, 2018, our Board of Directors declared a quarterly dividend of $0.65 per share of common stock. The dividend was paid on July 9, 2018 to stockholders of record as of the close of business on June 25, 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. USE OF ESTIMATES . The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations. |
Recent Accounting Guidance
Recent Accounting Guidance | 12 Months Ended |
May 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Guidance | NOTE 2: 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 Securities and Exchange Commission (“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 12 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. As a result of this new guidance, during 2018 we recorded a $50 million income tax benefit and a $14 million adjustment to retained earnings for the cumulative effect at adoption. 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, up to the total amount of goodwill allocated to that reporting unit. We adopted 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. 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 finalized our assessment of the impact of this new standard on our consolidated financial statements and related disclosures, including detailed contract reviews, and adopted this standard as of June 1, 2018 (fiscal 2019). We have analyzed our internal control over financial reporting framework and determined that there will be new controls around contract inception and contract modification, as well as periodic review of material contracts. We determined that the new guidance will not 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 $598 million in 2018 and by $471 million in 2017, but would not have impacted our net income in these periods. This new guidance is 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 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 AOCI to retained earnings. These changes will be effective June 1, 2019 (fiscal 2020). |
Business Combinations
Business Combinations | 12 Months Ended |
May 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 3: BUSINESS COMBINATIONS On March 23, 2018, we acquired P2P Mailing Limited, a leading provider of worldwide, low-cost e-commerce transportation solutions, for £92 million ($135 million) in cash from operations. The majority of the purchase price was allocated to goodwill. The financial results of this acquired business are included in the FedEx Trade Networks, Inc. (“FedEx Trade Networks”) operating segment from the date of acquisition and were not material to our results of operations. Therefore, pro forma financial information has not been provided. On October 13, 2017, we 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 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. On May 25, 2016, we acquired TNT Express for €4.4 billion ($4.9 billion). Cash acquired in the acquisition was approximately €250 million ($280 million). All shares associated with the transaction were tendered or transferred as of the third quarter of 2017. We funded the acquisition with proceeds from an April 2016 debt issuance and existing cash balances. The financial results of this business for 2018 and 2017 are included in the FedEx Express segment. Financial results for 2016 were immaterial from the time of acquisition and are included in “Corporate, other and eliminations” in our segment reporting. TNT Express collects, transports and delivers documents, parcels and freight to over 200 countries and territories. This strategic acquisition broadens our portfolio of international transportation solutions with the combined strength of TNT Express’s strong European road platform and FedEx Express’s strength in other regions globally. Our purchase price allocation for TNT Express was finalized in the fourth quarter of 2017. As a result of this acquisition, we recognized $3.5 billion of goodwill, which is primarily attributable to the expected benefits from synergies of the combination with existing businesses and growth opportunities and the TNT Express workforce. The majority of the purchase price allocated to goodwill is not deductible for income tax purposes. The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for this acquisition, as well as adjustments made during the measurement period (in millions): Preliminary Measurement Period Final May 31, 2016 Adjustments May 31, 2017 Current assets (1) $ 1,905 $ (53 ) $ 1,852 Property and equipment 1,104 (124 ) 980 Goodwill 2,964 488 3,452 Identifiable intangible assets 920 (390 ) 530 Other non-current assets 289 183 472 Current liabilities (2) (1,644 ) (44 ) (1,688 ) Long-term liabilities (644 ) (60 ) (704 ) Total purchase price $ 4,894 $ — $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses. Adjustments to the preliminary purchase price allocation as of May 31, 2016 resulted in a net increase to goodwill of $488 million. These updates were primarily recorded during the second quarter of 2017 and reflect the valuation work completed by third-party experts and the receipt of additional information during the measurement period about facts and circumstances that existed at the acquisition date. The purchase price was allocated to the identifiable intangible assets acquired as follows (in millions): Intangible assets with finite lives Customer relationships (12-year life) $ 430 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 530 See Note 4 for further discussion of our intangible assets. The following unaudited pro forma consolidated financial information presents the combined operations of FedEx and TNT Express as if the acquisition had occurred at the beginning of 2015 (dollars in millions, except per share amounts): (Unaudited) 2016 2015 Consolidated revenues $ 57,899 $ 55,862 Consolidated net income 1,600 638 Diluted earnings per share $ 5.73 $ 2.22 The accounting literature establishes guidelines regarding the presentation of this unaudited pro forma information. Therefore, this unaudited pro forma information is not intended to represent, nor do we believe it is indicative of, the consolidated results of operations of FedEx that would have been reported had the acquisition been completed as of the beginning of 2015. Furthermore, this unaudited pro forma information does not give effect to the anticipated business and tax synergies of the acquisition and is not representative or indicative of the anticipated future consolidated results of operations of FedEx. The unaudited pro forma consolidated financial information reflects our historical financial information and the historical results of TNT Express, after conversion of TNT Express’s accounting methods from International Financial Reporting Standards to U.S. generally accepted accounting principles, adjusted to reflect the acquisition had it been completed as of the beginning of 2015. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting and the financing for the acquisition. The unaudited pro forma financial information includes various assumptions, including those related to the finalization of the purchase price allocation. The tax impact of these adjustments was calculated based on TNT Express’s statutory rate. Included in the unaudited pro forma net income (net of tax) are nonrecurring acquisition-related costs incurred by TNT Express associated with the sale of TNT Express’s airline operations, a condition precedent to the acquisition, and transaction and integration- planning expenses of $115 million in 2016. In addition, the TNT Express results include expenses for restructuring, impairments, litigation matters and pension adjustments of approximately $40 million in 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions): FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Corporate, Other and Eliminations Total Goodwill at May 31, 2016 $ 4,546 $ 827 $ 764 $ 1,525 $ 395 $ 8,057 Accumulated impairment charges — — (133 ) (1,177 ) — (1,310 ) Balance as of May 31, 2016 4,546 827 631 348 395 6,747 Purchase adjustments and other (1) 407 — — — — 407 Balance as of May 31, 2017 4,953 827 631 348 395 7,154 Goodwill acquired (2) 76 14 3 — 32 125 Purchase adjustments and other (1) 71 (1 ) — — (2 ) 68 Impairment charges (3) — — — — (374 ) (374 ) Balance as of May 31, 2018 $ 5,100 $ 840 $ 634 $ 348 $ 51 $ 6,973 Accumulated goodwill impairment charges as of May 31, 2018 $ — $ — $ (133 ) $ (1,177 ) $ (374 ) $ (1,684 ) (1) Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. (2) Goodwill acquired relates to the acquisitions of Northwest Research, Inc. and P2P Mailing Limited. See Note 3 for more information. (3) Impairment charges related to the goodwill impairment of FedEx Supply Chain described below. Our reporting units with significant recorded goodwill include FedEx Express, FedEx Ground, FedEx Freight, FedEx Office (reported in the FedEx Services segment) and FedEx Supply Chain (reported in the FedEx Trade Networks operating segment, which is included in “Corporate, other and eliminations”) in our segment reporting. In 2018, we incurred a goodwill impairment charge of $374 million related to FedEx Supply Chain, eliminating substantially all of the goodwill attributable to this reporting unit. In our evaluation of the goodwill of this reporting unit, we compared the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value was estimated using standard valuation methodologies (principally the income and market approach) incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. The key factors contributing to the goodwill impairment were underperformance of the FedEx Supply Chain business during 2018, including base business erosion, and the failure to attain the level of operating synergies and revenue and profit growth anticipated at the time of the acquisition. Based on these factors, our outlook for the business and industry changed in the fourth quarter of 2018. No other impairments of goodwill were recognized during 2018, 2017 or 2016. OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2018 and 2017 is as follows (in millions): 2018 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 676 $ (250 ) $ 426 $ 656 $ (203 ) $ 453 Technology 68 (39 ) 29 54 (26 ) 28 Trademarks and other 141 (116 ) 25 136 (88 ) 48 Total $ 885 $ (405 ) $ 480 $ 846 $ (317 ) $ 529 Amortization expense for intangible assets was $87 million in 2018, $91 million in 2017 and $14 million in 2016. Expected amortization expense for the next five years is as follows (in millions): 2019 $ 81 2020 63 2021 50 2022 44 2023 42 |
Selected Current Liabilities
Selected Current Liabilities | 12 Months Ended |
May 31, 2018 | |
Accounts Payable And Accrued Liabilities Fair Value Disclosure [Abstract] | |
Selected Current Liabilities | NOTE 5: SELECTED CURRENT LIABILITIES The components of selected current liability captions at May 31 were as follows (in millions): 2018 2017 Accrued Salaries and Employee Benefits Salaries $ 498 $ 431 Employee benefits, including variable compensation 933 781 Compensated absences 746 702 $ 2,177 $ 1,914 Accrued Expenses Self-insurance accruals $ 957 $ 976 Taxes other than income taxes 334 283 Other 1,840 1,971 $ 3,131 $ 3,230 |
Long-Term Debt and Other Financ
Long-Term Debt and Other Financing Arrangements | 12 Months Ended |
May 31, 2018 | |
Debt And Capital Lease Obligations [Abstract] | |
Long-term Debt and Other Financing Arrangements | NOTE 6: LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2018, are as follows (in millions): May 31, 2018 2017 Interest Rate% Maturity Senior unsecured debt: 8.00 2019 $ 750 $ 749 2.30 2020 399 398 2.625-2.70 2023 746 745 4.00 2024 746 745 3.20 2025 695 695 3.25 2026 744 743 3.30 2027 445 445 3.40 2028 495 - 4.90 2034 495 495 3.90 2035 493 493 3.875-4.10 2043 983 983 5.10 2044 742 742 4.10 2045 640 640 4.55-4.75 2046 2,459 2,458 4.40 2047 735 734 4.05 2048 986 - 4.50 2065 246 246 7.60 2098 237 237 Euro senior unsecured debt: floating rate 2019 582 558 0.50 2020 581 557 1.00 2023 869 833 1.625 2027 1,442 1,382 Total senior unsecured debt 16,510 14,878 Other debt 4 9 Capital lease obligations 71 44 16,585 14,931 Less current portion 1,342 22 $ 15,243 $ 14,909 Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our euro fixed-rate notes is paid annually. Our floating-rate euro senior notes bear interest at three-month EURIBOR plus a spread of 55 basis points and resets quarterly. The weighted average interest rate on long-term debt was 3.6% in 2018. Long-term debt, exclusive of capital leases, had estimated fair values of $16.6 billion at May 31, 2018 and $15.5 billion at May 31, 2017. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly. We have a shelf registration statement filed with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock. On January 30, 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 semiannually. 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 2018, 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 retirement plans MTM 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 2.0 to 1.0 at May 31, 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 the financial covenant and all other covenants of our revolving credit agreement and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. As of May 31, 2018, no commercial paper was outstanding. However, we had a total of $54 million in letters of credit outstanding at May 31, 2018, with $446 million of the letter of credit sublimit unused under our revolving credit facility. |
Leases
Leases | 12 Months Ended |
May 31, 2018 | |
Leases [Abstract] | |
Leases | NOTE 7: LEASES We utilize certain aircraft, land, facilities, retail locations and equipment under capital and operating leases that expire at various dates through 2049. We leased 7% of our total aircraft fleet under operating leases as of May 31, 2018 and 9% as of May 31, 2017. A portion of our supplemental aircraft are leased by us under agreements that provide for cancellation upon 30 days’ notice. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings. Rent expense under operating leases for the years ended May 31 was as follows (in millions): 2018 2017 2016 Minimum rentals $ 2,913 $ 2,814 $ 2,394 Contingent rentals (1) 194 178 214 $ 3,107 $ 2,992 $ 2,608 (1) Contingent rentals are based on equipment usage. A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2018 is as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2019 $ 343 $ 2,128 $ 2,471 2020 261 1,916 2,177 2021 203 1,748 1,951 2022 185 1,577 1,762 2023 127 1,421 1,548 Thereafter 48 8,145 8,193 Total $ 1,167 $ 16,935 $ 18,102 Property and equipment recorded under capital leases and future minimum lease payments under capital leases are immaterial. The weighted-average remaining lease term of all operating leases outstanding at May 31, 2018 was approximately six years. 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. FedEx Express makes payments under certain leveraged operating leases that are sufficient to pay principal and interest on certain pass-through certificates. The pass-through certificates are not direct obligations of, or guaranteed by, FedEx or FedEx Express. We are the lessee under certain operating leases covering a portion of our leased aircraft in which the lessors are trusts established specifically to purchase, finance and lease these aircraft to us. These leasing entities are variable interest entities. We are not the primary beneficiary of the leasing entities, as the lease terms are at market at the inception of the lease and do not include a residual value guarantee, fixed-price purchase option or similar feature that obligates us to absorb decreases in value or entitles us to participate in increases in the value of the aircraft. Therefore, we are not required to consolidate any of these entities as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments. |
Preferred Stock
Preferred Stock | 12 Months Ended |
May 31, 2018 | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 8: PREFERRED STOCK Our Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 4,000,000 shares of preferred stock. The stock is issuable in series, which may vary as to certain rights and preferences, and has no par value. As of May 31, 2018, none of these shares had been issued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
May 31, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME The following table provides changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI): 2018 2017 2016 Foreign currency translation gain (loss): Balance at beginning of period $ (685 ) $ (514 ) $ (253 ) Translation adjustments (74 ) (171 ) (261 ) Balance at end of period (759 ) (685 ) (514 ) Retirement plans adjustments: Balance at beginning of period 270 345 425 Prior service credit and other arising during period (4 ) 1 (4 ) Reclassifications from AOCI (85 ) (76 ) (76 ) Balance at end of period 181 270 345 Accumulated other comprehensive (loss) income at end of period $ (578 ) $ (415 ) $ (169 ) The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from AOCI Affected Line Item in the Income Statement 2018 2017 2016 Amortization of retirement plans prior service credits, before tax $ 121 $ 120 $ 121 Salaries and employee benefits Income tax benefit (36 ) (44 ) (45 ) Provision for income taxes AOCI reclassifications, net of tax $ 85 $ 76 $ 76 Net income |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2018 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Stock-Based Compensation | NOTE 10: STOCK-BASED COMPENSATION Our total stock-based compensation expense for the years ended May 31 was as follows (in millions): 2018 2017 2016 Stock-based compensation expense $ 167 $ 154 $ 144 We have two types of equity-based compensation: stock options and restricted stock. STOCK OPTIONS . Under the provisions of our incentive stock plan, key employees and non-employee directors may be granted options to purchase shares of our common stock at a price not less than its fair market value on the date of grant. Vesting requirements are determined at the discretion of the Compensation Committee of our Board of Directors. Option-vesting periods range from one to four years, with 82% of our options vesting ratably over four years. Compensation expense associated with these awards is recognized on a straight-line basis over the requisite service period of the award. RESTRICTED STOCK. Under the terms of our incentive stock plan, restricted shares of our common stock are awarded to key employees. All restrictions on the shares expire ratably over a four-year period. Shares are valued at the market price on the date of award. The terms of our restricted stock provide for continued vesting subsequent to the employee’s retirement. Compensation expense associated with these awards is recognized on a straight-line basis over the shorter of the remaining service or vesting period. VALUATION AND ASSUMPTIONS . We use the Black-Scholes option pricing model to calculate the fair value of stock options. The value of restricted stock awards is based on the stock price of the award on the grant date. We record stock-based compensation expense in the “Salaries and employee benefits” caption in the accompanying consolidated statements of income. The key assumptions for the Black-Scholes valuation method include the expected life of the option, stock price volatility, a risk-free interest rate and dividend yield. The following is a table of the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, and then a discussion of our methodology for developing each of the assumptions used in the valuation model: 2018 2017 2016 Weighted-average Black-Scholes value $ 55.72 $ 43.99 $ 52.40 Intrinsic value of options exercised $ 359 $ 274 $ 115 Black-Scholes Assumptions: Expected lives 6.5 years 6.5 years 6.4 years Expected volatility 23 % 25 % 28 % Risk-free interest rate 2.07 % 1.64 % 1.94 % Dividend yield 0.796 % 0.719 % 0.519 % The expected life represents an estimate of the period of time options are expected to remain outstanding, and we examine actual stock option exercises to determine the expected life of the options. Options granted have a maximum term of 10 years. Expected volatilities are based on the actual changes in the market value of our stock and are calculated using daily market value changes from the date of grant over a past period equal to the expected life of the options. The risk-free interest rate is the U.S. Treasury Strip rate posted at the date of grant having a term equal to the expected life of the option. The expected dividend yield is the annual rate of dividends per share over the exercise price of the option. The following table summarizes information about stock option activity for the year ended May 31, 2018: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) (1) Outstanding at June 1, 2017 13,598,699 $ 125.66 Granted 2,778,238 221.15 Exercised (2,975,835 ) 109.95 Forfeited (416,185 ) 178.75 Outstanding at May 31, 2018 12,984,917 $ 147.98 6.3 $ 1,326 Exercisable 7,303,111 $ 113.12 4.7 $ 993 Expected to vest 5,382,943 $ 192.79 8.3 $ 315 Available for future grants 15,788,701 (1) Only presented for options with market value at May 31, 2018 in excess of the exercise price of the option. The options granted during 2018 are primarily related to our principal annual stock option grant in June 2017. The following table summarizes information about vested and unvested restricted stock for the year ended May 31, 2018: Restricted Stock Shares Weighted- Average Grant Date Fair Value Unvested at June 1, 2017 362,304 $ 155.53 Granted 155,624 212.60 Vested (177,264 ) 148.94 Forfeited (3,074 ) 148.95 Unvested at May 31, 2018 337,590 $ 185.16 During the year ended May 31, 2017, there were 153,984 shares of restricted stock granted with a weighted-average fair value of $166.12 per share. During the year ended May 31, 2016, there were 139,838 shares of restricted stock granted with a weighted-average fair value of $168.83 per share. The following table summarizes information about stock option vesting during the years ended May 31: Stock Options Vested during the year Fair value (in millions) 2018 2,465,493 $ 112 2017 2,427,837 104 2016 2,572,129 98 As of May 31, 2018, there was $211 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements. This compensation expense is expected to be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately two years. Total shares outstanding or available for grant related to equity compensation at May 31, 2018 represented 10% of the total outstanding common and equity compensation shares and equity compensation shares available for grant. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
May 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | NOTE 11: COMPUTATION OF EARNINGS PER SHARE The calculation of basic and diluted earnings per common share for the years ended May 31 was as follows (in millions, except per share amounts): 2018 2017 2016 Basic earnings per common share: Net earnings allocable to common shares (1) $ 4,566 $ 2,993 $ 1,818 Weighted-average common shares 267 266 276 Basic earnings per common share $ 17.08 $ 11.24 $ 6.59 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 4,566 $ 2,993 $ 1,818 Weighted-average common shares 267 266 276 Dilutive effect of share-based awards 5 4 3 Weighted-average diluted shares 272 270 279 Diluted earnings per common share $ 16.79 $ 11.07 $ 6.51 Anti-dilutive options excluded from diluted earnings per common share 2.5 4.5 3.9 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12: INCOME TAXES The components of the provision for income taxes for the years ended May 31 were as follows (in millions): 2018 2017 2016 Current provision Domestic: Federal $ (540 ) $ 269 $ 513 State and local 43 88 72 Foreign 461 285 200 (36 ) 642 785 Deferred provision (benefit) Domestic: Federal 271 989 155 State and local 125 59 (18 ) Foreign (579 ) (108 ) (2 ) (183 ) 940 135 $ (219 ) $ 1,582 $ 920 Pre-tax earnings of foreign operations for 2018, 2017 and 2016 were $958 million, $919 million and $905 million, respectively. These amounts represent only a portion of total results associated with international shipments and do not represent our international results of operations. A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (29.2% in 2018 and 35% in 2017 and 2016) to income before taxes for the years ended May 31 is as follows (in millions): 2018 2017 2016 Taxes computed at federal statutory rate $ 1,271 $ 1,603 $ 959 Increases (decreases) in income tax from: Goodwill impairment charge 109 — — State and local income taxes, net of federal benefit 119 99 33 Foreign operations 43 (19 ) (50 ) Corporate structuring transactions (1) (255 ) (68 ) (76 ) Tax Cuts and Jobs Act (2) (1,357 ) — — Foreign tax credits from distributions (225 ) — — Uncertain tax positions 86 — — TNT Express integration and acquisition costs 20 25 40 Other, net (3) (30 ) (58 ) 14 $ (219 ) $ 1,582 $ 920 Effective Tax Rate (5.0 )% 34.6 % 33.6 % (1) The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively. (2 ) Primary components are a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our U.S. Pensions Plans in February 2018. (3 ) Includes benefits from share-based payments of $60 million and $55 million in 2018 and 2017, respectively. Our 2018 tax rate was favorably impacted by the enactment of the TCJA during the third quarter. In accordance with SAB 118, we have recorded a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and an immaterial provisional benefit from the one-time transition tax on previously deferred foreign earnings. In addition, we recognized a benefit of $265 million related to a lower statutory income tax rate on 2018 earnings and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans in February 2018. Our 2018 tax rate also included a net benefit of $255 million from a tax basis step-up attributable to corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. We also recorded a benefit of $225 million from foreign tax credits generated by distributions to the U.S. from our foreign operations. Our 2017 tax rate was favorably impacted by $62 million as a result of the implementation of new U.S. foreign currency tax regulations. The TCJA makes broad and complex changes to the U.S. tax code that affected 2018 in multiple ways, including but not limited to: (1) reducing our U.S. federal income tax rate from 35% to 29.2% (as discussed below); (2) providing for additional first-year depreciation by allowing full expensing of qualified property placed into service after September 27, 2017; SAB 118 was issued to address the application of U.S. generally accepted accounting principles in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to finalize the calculations for certain income tax effects of the TCJA. In accordance with SAB 118, we have made reasonable estimates and recorded provisional amounts as described below. Under the transitional provisions of SAB 118, we have a one-year measurement period to complete the accounting for the initial tax effects of the TCJA. We are still in the process of completing that accounting. The TCJA reduced the corporate tax rate from 35% to 21%, effective January 1, 2018. U.S. tax law stipulates that our 2018 earnings are subject to a blended tax rate of 29.2%, which is based on the prorated number of days in the fiscal year before and after the effective date. As a result, we have remeasured certain deferred tax assets and deferred tax liabilities accordingly and recorded a provisional net tax benefit of $1.15 billion. The transition tax is based on our total accumulated post-1986 foreign earnings and profits, the majority of which was previously considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes were provided. We recorded a provisional immaterial U.S. tax benefit from foreign tax credits exceeding the one-time transition tax liability and an immaterial provisional amount for state income taxes. Because of the complexities of the TCJA, we are still finalizing our analysis of the transition tax liability calculation. No additional income taxes have been provided for any additional outside basis differences inherent in these entities beyond those basis differences triggered by the transition tax, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of the unrecognized deferred tax liability related to any additional outside basis differences in these entities (e.g., stock basis differences attributable to acquisitions or other permanent differences) is not practicable. We will complete our analysis of the impact of the TCJA on our outside basis differences in subsidiaries and respective indefinite reinvestment assertions during the measurement period and make additional disclosures, if necessary. With respect to the new TCJA provision on global intangible low-tax income, which will apply to us starting in 2019, we have not made an accounting policy election on the deferred tax treatment. Consequently, we have not made an accrual for the deferred tax aspects of this provision. Our accounting for the income tax effects of the TCJA will be completed during the measurement period allowed under SAB 118, and we will record any necessary adjustments in the period such adjustments are identified. While we were able to make a reasonable estimate of the impact of the income tax effects of the new law, it may be affected by, among other items, further analysis of certain aspects of the TCJA, subsequent guidance issued by the U.S. government, and changes to estimates made to calculate our existing temporary differences. The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions): 2018 2017 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Property, equipment, leases and intangibles $ 752 $ 3,663 $ 124 $ 4,993 Employee benefits 595 31 1,951 — Self-insurance accruals 494 — 745 — Other 416 602 692 660 Net operating loss/credit carryforwards 1,146 — 1,069 — Valuation allowances (711 ) — (738 ) — $ 2,692 $ 4,296 $ 3,843 $ 5,653 The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions): 2018 2017 Noncurrent deferred tax assets (1) $ 1,263 $ 675 Noncurrent deferred tax liabilities (2,867 ) (2,485 ) $ (1,604 ) $ (1,810 ) (1) Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. We have approximately $3.6 billion of net operating loss carryovers in various foreign jurisdictions and $770 million of state operating loss carryovers. The valuation allowances primarily represent amounts reserved for operating loss and tax credit carryforwards, which expire over varying periods starting in 2019. Therefore, we establish valuation allowances if it is more likely than not that deferred income tax assets will not be realized. We believe that we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet. See Note 1 above for more information on our policy for assessing the recoverability of deferred tax assets and valuation allowances. We are subject to taxation in the U.S. and various U.S. state, local and foreign jurisdictions. The Internal Revenue Service is currently auditing our 2014 and 2015 tax returns. It is reasonably possible that certain income tax return proceedings will be completed during the next 12 months and could result in a change in our balance of unrecognized tax benefits. The expected impact of any changes would not be material to our consolidated financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2018 2017 2016 Balance at beginning of year $ 67 $ 49 $ 36 Increases for tax positions taken in the current year 3 — 3 Increases for tax positions taken in prior years 103 8 3 Increase for business acquisition — 17 25 Decreases for tax positions taken in prior years (10 ) (1 ) (5 ) Settlements (2 ) (4 ) (4 ) Decreases from lapse of statute of limitations — (2 ) (7 ) Changes due to currency translation — — (2 ) Balance at end of year $ 161 $ 67 $ 49 Our liabilities recorded for uncertain tax positions include $142 million at May 31, 2018 and $63 million at May 31, 2017 associated with positions that, if favorably resolved, would provide a benefit to our effective tax rate. We classify interest related to income tax liabilities as interest expense and, if applicable, penalties are recognized as a component of income tax expense. The balance of accrued interest and penalties was $35 million on May 31, 2018 and $11 million on May 31, 2017. Total interest and penalties included in our consolidated statements of income are immaterial. It is difficult to predict the ultimate outcome or the timing of resolution for tax positions. Changes may result from the conclusion of ongoing audits, appeals or litigation in state, local, federal and foreign tax jurisdictions, or from the resolution of various proceedings between U.S. and foreign tax authorities. Our liability for uncertain tax positions includes no matters that are individually or collectively material to us. It is reasonably possible that the amount of the benefit with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months, but an estimate of the range of the reasonably possible changes cannot be made. However, we do not expect that the resolution of any of our uncertain tax positions will have a material effect on us. |
Retirement Plans
Retirement Plans | 12 Months Ended |
May 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | NOTE 13: 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. The accounting guidance related to postretirement benefits requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit plans, and the recognition in either expense or AOCI of unrecognized gains or losses and prior service costs or credits. We use MTM accounting for the recognition of our actuarial gains and losses related to our defined benefit pension and postretirement healthcare plans as described in Note 1. The funded status is measured as the difference between the fair value of the plan’s assets and the PBO of the plan. A summary of our retirement plans costs over the past three years is as follows (in millions): 2018 2017 2016 Defined benefit pension plans $ 150 $ 234 $ 214 Defined contribution plans 527 480 416 Postretirement healthcare plans 74 76 82 Retirement plans mark-to-market (gain) loss (10 ) (24 ) 1,498 $ 741 $ 766 $ 2,210 The components of the MTM adjustments are as follows (in millions): 2018 2017 2016 Discount rate changes $ (613 ) $ 266 $ 1,129 Demographic assumption experience 382 450 (916 ) Annuity contract purchase 210 — — Actual versus expected return on assets 11 (740 ) 1,285 Total mark-to-market (gain) loss $ (10 ) $ (24 ) $ 1,498 2018 The weighted average discount rate for all of our pension and postretirement healthcare plans increased from 3.98% at May 31, 2017 to 4.11% at May 31, 2018. The demographic assumption experience in 2018 reflects a liability loss due to unfavorable results related to various demographic assumptions. The annuity contract purchase loss relates to the contract with Metropolitan Life Insurance Company as discussed below. The actual rate of return, which is net of all fees and expenses, on our U.S. Pension Plan assets of 6.30% was slightly lower than our expected return of 6.50% primarily due to generally flat returns in the long-duration fixed income portfolio partially offset by strong returns from global equities. 2017 The actual rate of return on our U.S. Pension Plan assets, which is net of all fees and expenses, of 9.2% was higher than our expected return of 6.50% primarily due to a rise in the value of global equity markets in addition to favorable credit market conditions. The weighted average discount rate for all of our pension and postretirement healthcare plans decreased from 4.04% at May 31, 2016 to 3.98% at May 31, 2017. The demographic assumption experience in 2017 reflects an update in mortality tables for U.S. pension and other postemployment benefit plans. 2016 The actual rate of return on our U.S. Pension Plan assets of 0.9%, net of all fees and expenses, was lower than our expected return of 6.50% primarily due to a challenging environment for global equities and other risk-seeking asset classes. The weighted average discount rate for all of our pension and postretirement healthcare plans declined from 4.38% at May 31, 2015 to 4.04% at May 31, 2016. The demographic assumption experience in 2016 reflects a change in disability rates and an increase in the average retirement age for U.S. pension and other postemployment benefit plans. PENSION PLANS . Our largest pension plan covers certain U.S. employees age 21 and over, with at least one year of service. Pension benefits for most employees are accrued under a cash balance formula we call the Portable Pension Account. Under the Portable Pension Account, the retirement benefit is expressed as a dollar amount in a notional account that grows with annual credits based on pay, age and years of credited service, and interest on the notional account balance. The Portable Pension Account benefit is payable as a lump sum or an annuity at retirement at the election of the employee. The plan interest credit rate varies from year to year based on a U.S. Treasury index. Prior to 2009, certain employees earned benefits using a traditional pension formula (based on average earnings and years of service). Benefits under this formula were capped on May 31, 2008 for most employees. We also sponsor or participate in nonqualified benefit plans covering certain of our U.S. employee groups and other pension plans covering certain of our international employees. The international defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The majority of our international obligations are for defined benefit pension plans in the Netherlands and the United Kingdom. During 2017, our U.S. Pension Plans were amended to permit former employees with a vested traditional pension benefit to make a one-time, irrevocable election to receive their benefits in a lump-sum distribution. Approximately 18,300 former employees elected to receive this lump-sum distribution and a total of approximately $1.3 billion was paid by the plans in May 2017. In May 2018, we entered into an agreement with Metropolitan Life Insurance Company to purchase a group annuity contract and transfer approximately $6 billion of our U.S. Pension Plan obligations. The transaction transferred responsibility for pension benefits to Metropolitan Life Insurance Company for approximately 41,000 of our retirees and beneficiaries who satisfy certain conditions and currently receive a monthly benefit from participating U.S. Pension Plans. There was no change to the pension benefits for any plan participants as a result of this transaction. The purchase of the group annuity contract was funded directly by assets of the U.S. Pension Plans. We recognized a $210 million one-time settlement loss in connection with this transaction, which is included in our 2018 year-end MTM retirement plans adjustment. POSTRETIREMENT HEALTHCARE PLANS . Certain of our subsidiaries offer medical, dental and vision coverage to eligible U.S. retirees and their eligible dependents and a small number of international employees. U.S. employees covered by the principal plan become eligible for these benefits at age 55 and older, if they have permanent, continuous service of at least 10 years after attainment of age 45 if hired prior to January 1, 1988, or at least 20 years after attainment of age 35 if hired on or after January 1, 1988. Postretirement healthcare benefits are capped at 150% of the 1993 per capita projected employer cost, which has been reached under most plans, so these benefits are not subject to future inflation. Effective January 1, 2018, certain of our U.S. postretirement healthcare benefits were converted to a lump-sum benefit in a notional retiree health reimbursement account (HRA) for eligible participants. The HRA is available to reimburse a participant for qualifying healthcare premium costs and limits the company liability to the HRA account balance. The amount of the credit is based on age at January 1, 2018 or upon age at retirement thereafter. In connection with this change, retiree health coverage was closed to most new employees hired on or after January 1, 2018. PENSION PLAN ASSUMPTIONS. The accounting for pension and postretirement healthcare plans includes numerous assumptions, such as: discount rates; expected long-term investment returns on plan assets; future salary increases; employee turnover; mortality; and retirement ages. Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows: U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate used to determine benefit obligation 4.27 % 4.08 % 4.13 % 2.37 % 2.43 % 2.46 % 4.33 % 4.32 % 4.43 % Discount rate used to determine net periodic benefit cost 4.08 4.13 4.42 2.43 2.46 2.95 4.32 4.43 4.62 Rate of increase in future compensation levels used to determine benefit obligation 4.43 4.47 4.46 2.26 2.42 2.82 — — — Rate of increase in future compensation levels used to determine net periodic benefit cost 4.47 4.46 4.62 2.42 2.82 3.19 — — — Expected long-term rate of return on assets 6.50 6.50 6.50 3.09 3.18 3.68 — — — Our U.S. Pension Plan assets are invested primarily in publicly tradable securities, and our pension plans hold only a minimal investment in FedEx common stock that is entirely at the discretion of third-party pension fund investment managers. As part of our strategy to manage pension costs and funded status volatility, we follow a liability-driven investment strategy to better align plan assets with liabilities. Establishing the expected future rate of investment return on our pension assets is a judgmental matter, which we review on an annual basis and revise as appropriate. Management considers the following factors in determining this assumption: • the duration of our pension plan liabilities, which drives the investment strategy we can employ with our pension plan assets; • the types of investment classes in which we invest our pension plan assets and the expected compound geometric return we can reasonably expect those investment classes to earn over time, net of all fees and expenses; and • the investment returns we can reasonably expect our investment management program to achieve in excess of the returns we could expect if investments were made strictly in indexed funds. For consolidated pension expense, we assumed a 6.50% expected long-term rate of return on our U.S. Pension Plan assets in 2018, 2017 and 2016. The investment strategy for our U.S. Pension Plan assets is to utilize a diversified mix of public equities, fixed income and alternative investments to earn a long-term investment return that meets our pension plan obligations. Our largest asset classes are Corporate Fixed Income Securities and Government Fixed Income Securities (which are largely benchmarked against the Barclays Long Government, Barclays Long Corporate or the Citigroup 20+ STRIPS indices), and U.S. and non-U.S. Equities (which are mainly benchmarked to the S&P 500 Index and MSCI indices). Accordingly, we do not have any significant concentrations of risk. Active management strategies are utilized within the plan in an effort to realize investment returns in excess of market indices. Our investment strategy also includes the limited use of derivative financial instruments on a discretionary basis to improve investment returns and manage exposure to market risk. The following is a description of the valuation methodologies used for investments measured at fair value: • Cash and cash equivalents . These Level 1 investments include cash, cash equivalents and foreign currency valued using exchange rates. These Level 2 investments include short-term investment funds which are collective funds priced at a constant value by the administrator of the funds. • Domestic, international and global equities . These Level 1 investments are valued at the closing price or last trade reported on the major market on which the individual securities are traded. These Level 2 investments include mutual funds. • Fixed income . We determine the fair value of these Level 2 corporate bonds, U.S. and non-U.S. government securities and other fixed income securities by using bid evaluation pricing models or quoted prices of securities with similar characteristics. • Alternative Investments . The valuation of these Level 3 investments requires significant judgment due to the absence of quoted market prices, the inherent lack of liquidity and the long-term nature of such assets. Investments in private equity, debt, real estate, hedge funds and other private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. These estimates incorporate factors such as contributions and distributions, market transactions, market comparables and performance multiples. The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and most significant international pension plans at the measurement date are presented in the following table (in millions): Plan Assets at Measurement Date 2018 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (1) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 714 3 % 0 - 5% $ 19 $ 695 Equities 30 - 50 U.S. large cap equity (2) 2,449 11 840 International equities (2) 3,506 16 2,681 172 Global equities (2) 1,772 8 U.S. SMID cap equity 780 4 780 Fixed income securities 50 - 70 Corporate 5,834 26 5,834 Government (2) 4,872 22 3,345 Mortgage-backed and other (2) 626 3 125 Alternative investments (2) 1,573 7 0 - 10 $ 209 Other (69 ) — (62 ) (7 ) Total U.S. plan assets $ 22,057 100 % $ 4,258 $ 10,164 $ 209 Asset Class (International Plans) Cash and cash equivalents $ 24 2 % $ 2 $ 22 Equities International equities (2) 146 11 70 Global equities (2) 228 17 Fixed income securities Corporate (2) 306 23 68 Government (2) 452 34 108 256 Mortgage-backed and other (2) 168 13 Alternative investments 19 2 19 Other (23 ) (2 ) (6 ) (17 ) Total international plan assets $ 1,320 100 % $ 104 $ 418 (1) Target ranges have not been provided for international plan assets as they are managed at an individual country level. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total. Plan Assets at Measurement Date 2017 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (1) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 1,076 4 % 0 - 5% $ 26 $ 1,050 Equities 30 - 50 U.S. large cap equity (2) 2,415 10 830 International equities (2) 3,521 14 2,747 157 Global equities (2) 3,276 13 U.S. SMID cap equity 987 4 987 Fixed income securities 50 - 70 Corporate 8,163 33 8,163 Government (2) 4,674 19 3,454 Mortgage-backed and other (2) 603 2 129 Alternative investments (2) 377 2 0 - 5 $ 129 Other (159 ) (1 ) (161 ) 2 Total U.S. plan assets $ 24,933 100 % $ 4,429 $ 12,955 $ 129 Asset Class (International Plans) Cash and cash equivalents $ 48 4 % $ 2 $ 46 Equities International equities (2) 137 11 72 Global equities (2) 202 17 Fixed income securities Corporate (2) 270 22 49 Government (2) 405 34 95 230 Mortgage-backed and other (2) 145 12 Alternative investments 17 1 17 Other (18 ) (1 ) (2 ) (16 ) Total international plan assets $ 1,206 100 % $ 95 $ 398 (1) Target ranges have not been provided for international plan assets as they are managed at an individual country level. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total. The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions): U.S. Pension Plans 2018 2017 Balance at beginning of year $ 129 $ 48 Actual return on plan assets: Assets held during current year 8 5 Assets sold during the year 4 1 Purchases, sales and settlements 68 75 Balance at end of year $ 209 $ 129 The following table provides a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2018 and a statement of the funded status as of May 31, 2018 and 2017 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Accumulated Benefit Obligation (“ABO”) $ 22,029 $ 27,244 $ 1,956 $ 1,842 Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) PBO/APBO at the beginning of year $ 27,870 $ 27,804 $ 2,043 $ 1,798 $ 927 $ 905 Service cost 679 638 97 83 36 36 Interest cost 1,115 1,128 49 43 39 39 Actuarial loss 21 571 (34 ) 161 (9 ) (14 ) Benefits paid (854 ) (2,271 ) (46 ) (38 ) (80 ) (72 ) Settlements (6,178 ) — (5 ) (7 ) — — Purchase accounting adjustment — — — 26 — — Other — — 63 (23 ) 42 33 PBO/APBO at the end of year $ 22,653 $ 27,870 $ 2,167 $ 2,043 $ 955 $ 927 Change in Plan Assets Fair value of plan assets at the beginning of year $ 24,933 $ 23,017 $ 1,379 $ 1,254 $ — $ — Actual return on plan assets 1,609 2,167 49 112 — — Company contributions 2,547 2,020 84 95 42 36 Benefits paid (854 ) (2,271 ) (46 ) (38 ) (80 ) (72 ) Settlements (6,178 ) — (5 ) (7 ) — — Other — — 48 (37 ) 38 36 Fair value of plan assets at the end of year $ 22,057 $ 24,933 $ 1,509 $ 1,379 $ — $ — Funded Status of the Plans $ (596 ) $ (2,937 ) $ (658 ) $ (664 ) $ (955 ) $ (927 ) Amount Recognized in the Balance Sheet at May 31: Noncurrent asset $ — $ — $ 73 $ 40 $ — $ — Current pension, postretirement healthcare and other benefit obligations (22 ) (33 ) (16 ) (17 ) (62 ) (39 ) Noncurrent pension, postretirement healthcare and other benefit obligations (574 ) (2,904 ) (715 ) (687 ) (893 ) (888 ) Net amount recognized $ (596 ) $ (2,937 ) $ (658 ) $ (664 ) $ (955 ) $ (927 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: Prior service (credit) cost and other $ (292 ) $ (410 ) $ (10 ) $ (13 ) $ 2 $ (4 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost: Prior service credit and other $ (118 ) $ (118 ) $ (2 ) $ (2 ) $ — $ — Our pension plans included the following components at May 31 (in millions): PBO Fair Value of Plan Assets Funded Status 2018 Qualified $ 22,413 $ 22,057 $ (356 ) Nonqualified 240 — (240 ) International Plans 2,167 1,509 (658 ) Total $ 24,820 $ 23,566 $ (1,254 ) 2017 Qualified $ 27,600 $ 24,933 $ (2,667 ) Nonqualified 270 — (270 ) International Plans 2,043 1,379 (664 ) Total $ 29,913 $ 26,312 $ (3,601 ) The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following table presents our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions): PBO Exceeds the Fair Value of Plan Assets 2018 2017 U.S. Pension Benefits Fair value of plan assets $ 22,057 $ 24,933 PBO (22,653 ) (27,870 ) Net funded status $ (596 ) $ (2,937 ) International Pension Benefits Fair value of plan assets $ 1,060 $ 952 PBO (1,791 ) (1,656 ) Net funded status $ (731 ) $ (704 ) ABO Exceeds the Fair Value of Plan Assets 2018 2017 U.S. Pension Benefits ABO (1) $ (1,134 ) $ (27,244 ) Fair value of plan assets 859 24,933 PBO (1,214 ) (27,870 ) Net funded status $ (355 ) $ (2,937 ) International Pension Benefits ABO (1) $ (1,581 ) $ (1,433 ) Fair value of plan assets 1,060 928 PBO (1,791 ) (1,626 ) Net funded status $ (731 ) $ (698 ) (1) ABO not used in determination of funded status. Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions): 2018 2017 Required $ 22 $ 459 Voluntary 2,478 1,541 $ 2,500 $ 2,000 For 2019, no pension contributions will be required for our U.S. Pension Plans as they are fully funded under the Employee Retirement Income Security Act. However, we expect to make tax-deductible discretionary contributions to those plans at levels significantly less than those made in 2018, in addition to required contributions to certain international pension plans. We expect total pension plan contributions to be substantially less than those made in 2018. Net periodic benefit cost for the three years ended May 31 were as follows (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 679 $ 638 $ 622 $ 97 $ 83 $ 40 $ 36 $ 36 $ 40 Interest cost 1,115 1,128 1,155 49 43 25 39 39 42 Expected return on plan assets (1,624 ) (1,501 ) (1,490 ) (46 ) (38 ) (18 ) — — — Amortization of prior service credit (118 ) (118 ) (118 ) (2 ) (2 ) (3 ) (1 ) — — Actuarial losses (gains) and other 37 (95 ) 1,563 (38 ) 87 (1 ) (9 ) (14 ) (64 ) Net periodic benefit cost $ 89 $ 52 $ 1,732 $ 60 $ 173 $ 43 $ 65 $ 61 $ 18 Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions): 2018 2017 U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Prior service cost (credit) arising during period $ — $ — $ — $ — $ 5 $ 4 $ — $ — $ 1 $ 1 $ (3 ) $ (2 ) Amortizations: Prior services credit 118 83 2 1 1 1 118 74 2 2 — — Total recognized in OCI $ 118 $ 83 $ 2 $ 1 $ 6 $ 5 $ 118 $ 74 $ 3 $ 3 $ (3 ) $ (2 ) Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2019 $ 680 $ 48 $ 62 2020 781 48 65 2021 846 54 69 2022 951 71 73 2023 1,071 79 76 2024-2028 7,325 428 369 These estimates are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates. Future medical benefit claims costs are estimated to increase at an annual rate of 6.30% during 2019, decreasing to an annual growth rate of 4.50% in 2037 and thereafter. A 1% change in these annual trend rates would not have a significant impact on the APBO at May 31, 2018 or 2018 benefit expense because the level of these benefits is capped. |
Business Segment Information
Business Segment Information | 12 Months Ended |
May 31, 2018 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Business Segment Information | NOTE 14: BUSINESS SEGMENT INFORMATION FedEx Express, FedEx Ground and FedEx Freight represent our major service lines and, along with FedEx Services, constitute 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 Ground Segment FedEx Ground (small-package ground delivery) FedEx Freight Segment FedEx Freight (LTL freight 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) In 2018, FedEx Express and TNT Express are reported as one segment. This new segment is the result of combining the financial information of the FedEx Express and TNT Express segments (previously referred to as the FedEx Express group) as part of the operational integration of these two businesses. As integration activities have progressed, the FedEx Express and TNT Express businesses have lost their historical discrete financial profiles, as the businesses are being combined. Therefore, discrete financial information for FedEx Express and TNT Express does not exist in a manner to evaluate performance and make resource allocation decisions. In addition, this new reporting structure aligns with our management reporting structure and our internal financial reporting and compensation plans. In the fourth quarter of 2018, we realigned our specialty logistics and e-commerce solutions in a new organizational structure under FedEx Trade Networks. The realignment allows us to improve our ability to deliver the capabilities of our specialty services companies to customers. The new organization includes FedEx Trade Networks Transport & Brokerage, Inc., FedEx Cross Border Technologies, Inc., FedEx Supply Chain, FedEx Custom Critical, Inc., and FedEx Forward Depots, Inc. FedEx Trade Networks operating segment results are included in “Corporate, other and eliminations” in our segment reporting. Prior period segment results for all of our transportation segments have been recast to conform to the current year presentation for these organizational structure changes. FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information-technology functions in shared services operations that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express some of these functions are performed on a regional basis and reported by each respective company in their natural expense line items. The FedEx Services segment includes: FedEx Services, which provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S. customers of our major business units and certain back-office support to our other companies; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses. The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. Other Intersegment Transactions Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the other business segments. Also included in corporate and other is the FedEx Trade Networks operating segment, which provides customs brokerage and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage; cross-border enablement and technology solutions and e-commerce transportation solutions through FedEx Cross Border; integrated supply chain management solutions through FedEx Supply Chain; time-critical shipment services through FedEx Custom Critical; and, effective September 1, 2018, critical inventory and service parts logistics, 3-D printing and technology repair through FedEx Forward Depots. 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. The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income (loss) and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31: FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Corporate, other and eliminations (1) Consolidated Total Revenues 2018 $ 36,172 $ 18,395 $ 6,812 $ 1,650 $ 2,421 $ 65,450 2017 33,824 16,503 6,070 1,621 2,301 60,319 2016 25,553 15,051 5,825 1,593 2,343 50,365 Depreciation and amortization 2018 $ 1,679 $ 681 $ 296 $ 382 $ 57 $ 3,095 2017 1,662 627 265 371 70 2,995 2016 1,377 556 244 384 70 2,631 Operating income (loss) 2018 (2) $ 2,578 $ 2,605 $ 517 $ — $ (830 ) $ 4,870 2017 (3) 2,769 2,279 390 — (401 ) 5,037 2016 (4) 2,485 2,240 421 — (2,069 ) 3,077 Segment assets (5) 2018 $ 31,753 $ 15,458 $ 7,389 $ 6,377 $ (8,647 ) $ 52,330 2017 31,307 12,969 6,527 5,682 (7,933 ) 48,552 2016 20,798 11,407 6,104 5,390 2,260 45,959 (1) Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). (2) Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. (3) Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. (4) Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. (5) Segment assets include intercompany receivables. The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions): FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Other Consolidated Total 2018 $ 3,461 $ 1,178 $ 490 $ 477 $ 57 $ 5,663 2017 2,725 1,490 431 416 54 5,116 2016 2,350 1,556 428 432 52 4,818 The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions): 2018 2017 2016 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 7,273 $ 6,955 $ 6,763 U.S. overnight envelope 1,788 1,750 1,662 U.S. deferred 3,738 3,526 3,379 Total U.S. domestic package revenue 12,799 12,231 11,804 International priority 7,356 6,940 5,697 International economy 3,255 2,876 2,282 Total international export package revenue 10,611 9,816 7,979 International domestic (1) 4,587 4,227 1,285 Total package revenue 27,997 26,274 21,068 Freight: U.S. 2,797 2,527 2,481 International priority 2,179 1,910 999 International economy 1,916 1,740 385 International airfreight 368 355 126 Total freight revenue 7,260 6,532 3,991 Other 915 1,018 494 Total FedEx Express segment 36,172 33,824 25,553 FedEx Ground segment 18,395 16,503 15,051 FedEx Freight segment 6,812 6,070 5,825 FedEx Services segment 1,650 1,621 1,593 Other and eliminations (2) 2,421 2,301 2,343 $ 65,450 $ 60,319 $ 50,365 GEOGRAPHICAL INFORMATION (3) Revenues: U.S. $ 43,581 $ 40,269 $ 38,070 International: FedEx Express segment 20,417 18,817 11,083 FedEx Ground segment 407 331 275 FedEx Freight segment 181 149 137 FedEx Services segment 3 10 10 Other (2) 861 743 790 Total international revenue 21,869 20,050 12,295 $ 65,450 $ 60,319 $ 50,365 Noncurrent assets: U.S. $ 30,362 $ 28,141 $ 25,942 International 8,627 7,783 8,028 $ 38,989 $ 35,924 $ 33,970 (1) International domestic revenues relate to our intra-country operations. (2) Includes the FedEx Trade Networks operating segment and TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). (3) International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
May 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | NOTE 15: SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions): 2018 2017 2016 Cash payments for: Interest (net of capitalized interest) $ 524 $ 484 $ 321 Income taxes $ 760 $ 397 $ 996 Income tax refunds received (571 ) (20 ) (5 ) Cash tax payments, net $ 189 $ 377 $ 991 |
Guarantees and Indemnifications
Guarantees and Indemnifications | 12 Months Ended |
May 31, 2018 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | NOTE 16: GUARANTEES AND INDEMNIFICATIONS In conjunction with certain transactions, primarily the lease, sale or purchase of operating assets or services in the ordinary course of business and in connection with business acquisitions, we may provide routine guarantees or indemnifications (e.g., environmental, fuel, tax and software infringement), the terms of which range in duration, and often they are not limited and have no specified maximum obligation. As a result of the TNT Express acquisition, we have assumed a guarantee related to the demerger of TNT Express and PostNL Holding B.V., which occurred in 2011, for pension benefits earned prior to the date of the demerger. The risk of making payments associated with this guarantee is remote. The overall maximum potential amount of the obligation under such guarantees and indemnifications cannot be reasonably estimated. Historically, we have not been required to make significant payments under our guarantee or indemnification obligations and no material amounts have been recognized in our financial statements for the underlying fair value of these obligations. |
Commitments
Commitments | 12 Months Ended |
May 31, 2018 | |
Commitments [Abstract] | |
Commitments | NOTE 17: COMMITMENTS Annual purchase commitments under various contracts as of May 31, 2018 were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2019 $ 1,534 $ 894 $ 2,428 2020 1,922 692 2,614 2021 1,255 416 1,671 2022 1,359 285 1,644 2023 628 185 813 Thereafter 2,653 491 3,144 Total $ 9,351 $ 2,963 $ 12,314 (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 May 31, 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 (“RLA”). Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. We have several aircraft modernization programs underway that are supported by the purchase of B777F and B767F aircraft. These aircraft are significantly more fuel-efficient per unit than the aircraft types previously utilized, and these expenditures are necessary to achieve significant long-term operating savings and to replace older aircraft. Our ability to delay the timing of these aircraft-related expenditures is limited without incurring significant costs to modify existing purchase agreements. During 2018, FedEx Express entered into an agreement to purchase 50 Cessna SkyCourier 408 aircraft with options to purchase up to 50 additional Cessna SkyCourier 408 aircraft. The 50 firm-order Cessna SkyCourier 408 aircraft are expected to be delivered from 2021 through 2024. During 2018, FedEx Express entered into an agreement to purchase 30 ATR 72-600F aircraft with options to purchase up to 20 additional ATR 72-600F aircraft. The 30 firm-order ATR 72-600F aircraft are expected to be delivered from 2021 through 2026. During 2018, 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. On June 18, 2018, FedEx Express entered into agreements to purchase 12 incremental B777F aircraft and 12 incremental B767F aircraft. Six of the B777F and one of the B767F aircraft purchases are conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA. The B777F aircraft are expected to be delivered between 2021 and 2025. The B767F aircraft are expected to be delivered between 2020 and 2022. As part of these agreements, one B777F and one B767F aircraft delivery were accelerated from 2020 to 2019. FedEx Express now has a total of 24 firm orders for B777F aircraft scheduled for delivery during 2019 through 2025 (one of which was delivered in June 2018) and a total of 69 firm orders for B767F aircraft for delivery during 2019 through 2023 (two of which were delivered in June 2018). Six of the B777F orders and five of the B767F orders are conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA (the RLA condition was removed from three previously ordered B777F aircraft). FedEx Express also acquired options to purchase an additional 14 B777F aircraft, and the delivery dates of 11 existing B777F option aircraft were rescheduled. As a result, FedEx Express now has options to purchase a total of 25 B777F aircraft for delivery through 2028. FedEx Express also acquired options to purchase an additional six B767F aircraft. As a result, FedEx Express now has options to purchase a total of 50 B767F aircraft for delivery through 2026. As of May 31, 2018, we had $1.2 billion in deposits and progress payments 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 May 31, 2018, with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2019 - - 15 3 18 2020 - - 16 6 22 2021 12 5 10 - 27 2022 12 6 10 3 31 2023 12 6 6 - 24 Thereafter 14 13 - - 27 Total 50 30 57 12 149 |
Contingencies
Contingencies | 12 Months Ended |
May 31, 2018 | |
Loss Contingency [Abstract] | |
Contingencies | NOTE 18: CONTINGENCIES Independent Contractor — Lawsuits and Administrative Proceedings. FedEx Ground is involved in lawsuits and administrative proceedings claiming that owner-operators engaged under operating agreements no longer in place 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 continue to believe that owner-operators engaged by FedEx Ground are properly classified as independent contractors and that FedEx Ground is not an employer or joint employer of the drivers of these independent contractors. City and State of New York Cigarette Suit. The City of New York and the State of New York filed two related lawsuits against FedEx Ground in December 2013 and November 2014 arising from FedEx Ground’s alleged shipments of cigarettes to New York residents in contravention of several statutes, including the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and New York’s Public Health Law, as well as common law nuisance claims. In April 2016, the two lawsuits were consolidated and will now proceed as one lawsuit. The first-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of four shippers, and the second-filed lawsuit alleges that FedEx Ground provided delivery services on behalf of six additional shippers; none of these shippers continue to ship in our network. 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. 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. In May 2018, FedEx Trade Networks was informed that CBP is demanding additional payment for duty loss plus interest in connection with the claims for reduced-duty treatment. In June 2018, we submitted a response to CBP challenging the additional demand, and we are waiting for a reply. We have established an accrual for an immaterial amount in connection with this additional demand. We continue to await a response from CBP indicating whether the claims for duty-free treatment 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
May 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 19: RELATED PARTY TRANSACTIONS Our Chairman and Chief Executive Officer, Frederick W. Smith, currently holds an approximate 10% ownership interest in the National Football League Washington Redskins professional football team and is a member of its board of directors. FedEx has a multi-year naming rights agreement with Washington Football, Inc. granting us certain marketing rights, including the right to name the stadium where the team plays and other events are held “FedExField.” |
Summary of Quarterly Operating
Summary of Quarterly Operating Results (Unaudited) | 12 Months Ended |
May 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results (Unaudited) | NOTE 20: SUMMARY OF QUARTERLY OPERATING RESULTS (UNAUDITED) (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 (1) Revenues $ 15,297 $ 16,313 $ 16,526 $ 17,314 Operating income 1,117 1,262 1,001 1,490 Net income (2) 596 775 2,074 1,127 Basic earnings per common share (3) 2.22 2.89 7.74 4.23 Diluted earnings per common share (3) 2.19 2.84 7.59 4.15 2017 (4) Revenues $ 14,663 $ 14,931 $ 14,997 $ 15,728 Operating income (loss) 1,264 1,167 1,025 1,581 Net income (loss) 715 700 562 1,020 Basic earnings (loss) per common share (3) 2.69 2.63 2.11 3.81 Diluted earnings (loss) per common share (3) 2.65 2.59 2.07 3.75 (1) The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. (2) The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans. (3) The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. (4) The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
May 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | NOTE 21: 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 $16.4 billion of our public 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 May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,485 $ 257 $ 1,538 $ (15 ) $ 3,265 Receivables, less allowances 3 4,970 3,586 (78 ) 8,481 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 425 878 292 — 1,595 Total current assets 1,913 6,105 5,416 (93 ) 13,341 PROPERTY AND EQUIPMENT, AT COST 21 51,232 3,868 — 55,121 Less accumulated depreciation and amortization 17 25,111 1,839 — 26,967 Net property and equipment 4 26,121 2,029 — 28,154 INTERCOMPANY RECEIVABLE 1,487 924 — (2,411 ) — GOODWILL — 1,709 5,264 — 6,973 INVESTMENT IN SUBSIDIARIES 33,370 4,082 — (37,452 ) — OTHER ASSETS 75 1,854 1,829 104 3,862 $ 36,849 $ 40,795 $ 14,538 $ (39,852 ) $ 52,330 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ 1,332 $ 1 $ 9 $ — $ 1,342 Accrued salaries and employee benefits 65 1,506 606 — 2,177 Accounts payable 16 1,332 1,719 (90 ) 2,977 Accrued expenses 460 1,778 896 (3 ) 3,131 Total current liabilities 1,873 4,617 3,230 (93 ) 9,627 LONG-TERM DEBT, LESS CURRENT PORTION 14,942 288 13 — 15,243 INTERCOMPANY PAYABLE — — 2,411 (2,411 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,626 137 104 2,867 Other liabilities 619 3,432 1,126 — 5,177 Total other long-term liabilities 619 6,058 1,263 104 8,044 STOCKHOLDERS’ INVESTMENT 19,415 29,832 7,621 (37,452 ) 19,416 $ 36,849 $ 40,795 $ 14,538 $ (39,852 ) $ 52,330 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor 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 Year Ended May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 48,601 $ 17,256 $ (407 ) $ 65,450 OPERATING EXPENSES: Salaries and employee benefits 149 17,814 5,244 — 23,207 Purchased transportation — 9,134 6,191 (224 ) 15,101 Rentals and landing fees 5 2,587 776 (7 ) 3,361 Depreciation and amortization 1 2,644 450 — 3,095 Fuel — 3,077 297 — 3,374 Maintenance and repairs 1 2,294 327 — 2,622 Goodwill and other asset impairment charges — — 380 — 380 Retirement plans mark-to-market adjustment — 19 (29 ) — (10 ) Intercompany charges, net (437 ) (120 ) 557 — — Other 281 6,227 3,118 (176 ) 9,450 — 43,676 17,311 (407 ) 60,580 OPERATING INCOME — 4,925 (55 ) — 4,870 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 4,572 62 — (4,634 ) — Interest, net (541 ) 46 (15 ) — (510 ) Intercompany charges, net 544 (291 ) (253 ) — — Other, net (3 ) (120 ) 116 — (7 ) INCOME BEFORE INCOME TAXES 4,572 4,622 (207 ) (4,634 ) 4,353 Provision for income taxes (benefit) — 309 (528 ) — (219 ) NET INCOME $ 4,572 $ 4,313 $ 321 $ (4,634 ) $ 4,572 COMPREHENSIVE INCOME $ 4,489 $ 4,263 $ 291 $ (4,634 ) $ 4,409 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 44,823 $ 15,798 $ (302 ) $ 60,319 OPERATING EXPENSES: Salaries and employee benefits 123 16,696 4,723 — 21,542 Purchased transportation — 8,260 5,495 (125 ) 13,630 Rentals and landing fees 5 2,517 724 (6 ) 3,240 Depreciation and amortization 1 2,538 456 — 2,995 Fuel — 2,476 297 — 2,773 Maintenance and repairs 1 2,086 287 — 2,374 Retirement plans mark-to-market adjustment — (75 ) 51 — (24 ) Intercompany charges, net (434 ) 182 252 — — Other 304 5,734 2,885 (171 ) 8,752 — 40,414 15,170 (302 ) 55,282 OPERATING INCOME — 4,409 628 — 5,037 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,997 68 — (3,065 ) — Interest, net (507 ) 27 1 — (479 ) Intercompany charges, net 508 (296 ) (212 ) — — Other, net (1 ) (134 ) 156 — 21 INCOME BEFORE INCOME TAXES 2,997 4,074 573 (3,065 ) 4,579 Provision for income taxes — 1,439 143 — 1,582 NET INCOME $ 2,997 $ 2,635 $ 430 $ (3,065 ) $ 2,997 COMPREHENSIVE INCOME $ 2,922 $ 2,580 $ 314 $ (3,065 ) $ 2,751 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 42,143 $ 8,547 $ (325 ) $ 50,365 OPERATING EXPENSES: Salaries and employee benefits 119 15,880 2,582 — 18,581 Purchased transportation — 7,380 2,720 (134 ) 9,966 Rentals and landing fees 5 2,484 371 (6 ) 2,854 Depreciation and amortization 1 2,399 231 — 2,631 Fuel — 2,324 75 — 2,399 Maintenance and repairs 1 1,954 153 — 2,108 Retirement plans mark-to-market adjustment — 1,414 84 — 1,498 Intercompany charges, net (645 ) 425 220 — — Other 519 5,274 1,643 (185 ) 7,251 — 39,534 8,079 (325 ) 47,288 OPERATING INCOME — 2,609 468 — 3,077 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,820 279 — (2,099 ) — Interest, net (355 ) 27 13 — (315 ) Intercompany charges, net 369 (354 ) (15 ) — — Other, net (14 ) (14 ) 6 — (22 ) INCOME BEFORE INCOME TAXES 1,820 2,547 472 (2,099 ) 2,740 Provision for income taxes — 818 102 — 920 NET INCOME $ 1,820 $ 1,729 $ 370 $ (2,099 ) $ 1,820 COMPREHENSIVE INCOME $ 1,746 $ 1,704 $ 128 $ (2,099 ) $ 1,479 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,837 ) $ 6,767 $ 712 $ 32 $ 4,674 INVESTING ACTIVITIES Capital expenditures (1 ) (5,299 ) (363 ) — (5,663 ) Business acquisitions, net of cash acquired — (44 ) (135 ) — (179 ) Proceeds from sale of business — — 123 — 123 Proceeds from asset dispositions and other (6 ) 33 15 — 42 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (7 ) (5,310 ) (360 ) — (5,677 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,529 (1,612 ) 83 — — Payment on loan between subsidiaries 663 — (663 ) — — Intercompany dividends — 98 (98 ) — — Principal payments on debt — (22 ) (16 ) — (38 ) Proceeds from debt issuance 1,480 — — — 1,480 Proceeds from stock issuances 327 — — — 327 Dividends paid (535 ) — — — (535 ) Purchase of treasury stock (1,017 ) — — — (1,017 ) Other, net 3 7 — — 10 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,450 (1,529 ) (694 ) — 227 Effect of exchange rate changes on cash (5 ) 4 73 — 72 Net increase (decrease) in cash and cash equivalents (399 ) (68 ) (269 ) 32 (704 ) Cash and cash equivalents at beginning of period 1,884 325 1,807 (47 ) 3,969 Cash and cash equivalents at end of period $ 1,485 $ 257 $ 1,538 $ (15 ) $ 3,265 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,155 ) $ 5,254 $ 835 $ (4 ) $ 4,930 INVESTING ACTIVITIES Capital expenditures — (4,694 ) (422 ) — (5,116 ) Proceeds from asset dispositions and other 34 25 76 — 135 CASH USED IN INVESTING ACTIVITIES 34 (4,669 ) (346 ) — (4,981 ) FINANCING ACTIVITIES Net transfers from (to) Parent 421 (518 ) 97 — — Payment on loan between subsidiaries 41 (15 ) (26 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (55 ) (27 ) — (82 ) Proceeds from debt issuances 1,190 — — — 1,190 Proceeds from stock issuances 337 — — — 337 Dividends paid (426 ) — — — (426 ) Purchase of treasury stock (509 ) — — — (509 ) Other, net (12 ) (13 ) 43 — 18 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,042 (600 ) 86 — 528 Effect of exchange rate changes on cash (11 ) 14 (45 ) — (42 ) Net (decrease) increase in cash and cash equivalents (90 ) (1 ) 530 (4 ) 435 Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (831 ) $ 5,932 $ 572 $ 35 $ 5,708 INVESTING ACTIVITIES Capital expenditures — (4,617 ) (201 ) — (4,818 ) Business acquisitions, net of cash acquired — — (4,618 ) — (4,618 ) Proceeds from asset dispositions and other (55 ) 33 12 — (10 ) CASH USED IN INVESTING ACTIVITIES (55 ) (4,584 ) (4,807 ) — (9,446 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,629 (1,549 ) (80 ) — — Payment on loan between subsidiaries (4,805 ) 109 4,696 — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (19 ) (22 ) — (41 ) Proceeds from debt issuance 6,519 — — — 6,519 Proceeds from stock issuances 183 — — — 183 Dividends paid (277 ) — — — (277 ) Purchase of treasury stock (2,722 ) — — — (2,722 ) Other, net (51 ) (48 ) 48 — (51 ) CASH PROVIDED (USED IN) FINANCING ACTIVITIES 476 (1,487 ) 4,622 — 3,611 Effect of exchange rate changes on cash 1 (22 ) (81 ) — (102 ) Net increase in cash and cash equivalents (409 ) (161 ) 306 35 (229 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
May 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts | SCHEDULE II FEDEX CORPORATION VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED MAY 31, 2018, 2017 AND 2016 (IN MILLIONS) ADDITIONS DESCRIPTION BALANCE AT BEGINNING OF YEAR CHARGED TO EXPENSES CHARGED TO OTHER ACCOUNTS DEDUCTIONS BALANCE AT END OF YEAR Accounts Receivable Reserves: Allowance for Doubtful Accounts 2018 $ 115 $ 246 $ — $ 162 (a) $ 199 2017 73 136 — 94 (a) 115 2016 86 121 — 134 (a) 73 Allowance for Revenue Adjustments 2018 $ 137 $ — $ 1,173 (b) $ 1,108 (c) $ 202 2017 105 — 941 (b) 909 (c) 137 2016 99 — 692 (b) 686 (c) 105 Inventory Valuation Allowance: 2018 $ 237 $ 27 $ 6 $ 2 $ 268 2017 218 26 — 7 237 2016 207 26 — 15 218 (a) Uncollectible accounts written off, net of recoveries, and other adjustments. (b) Principally charged against revenue. (c) Service failures, rebills and other. |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS. FedEx Corporation (“FedEx”) provides 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 Federal Express Corporation (“FedEx 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 Corporation (“FedEx Freight”), a leading U.S. provider of less-than-truckload (“LTL”) freight transportation. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“FedEx Services”), constitute our reportable segments. Our FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our transportation segments (FedEx Express, FedEx Ground and FedEx Freight). In addition, the FedEx Services segment provides customers with retail access to FedEx Express and FedEx Ground shipping services through FedEx Office and Print Services, Inc. (“FedEx Office”). |
Fiscal Years | FISCAL YEARS . Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2018 or ended May 31 of the year referenced. |
Reclassifications | RECLASSIFICATIONS. Certain reclassifications have been made to the prior years’ segment financial information to conform to the current year’s presentation. See Note 14 below for additional information regarding business segments. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION . The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation. We are not the primary beneficiary of, nor do we have a controlling financial interest in, any variable interest entity. Accordingly, we have not consolidated any variable interest entity. |
Revenue Recognition | REVENUE RECOGNITION . We recognize revenue upon delivery of shipments for our transportation businesses and upon completion of services for our business services, logistics and trade services businesses. Transportation services are provided with the use of employees and agents such as independent contractors. FedEx is the principal to the transaction for most of these services and revenue from these transactions is recognized on a gross basis. Costs associated with agents are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income. For shipments in transit, revenue is recorded based on the percentage of service completed at the balance sheet date. Estimates for future billing adjustments to revenue and accounts receivable are recognized at the time of shipment for money-back service guarantees and billing corrections. Delivery costs are accrued as incurred. Our contract logistics, global trade services and certain transportation businesses engage in some transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions and taxes and duties. Certain of our revenue-producing transactions are subject to taxes, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. |
Credit Risk | CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic factors on the composition of accounts receivable. Historically, credit losses have been within management’s expectations. |
Advertising | ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $442 million in 2018, $458 million in 2017 and $417 million in 2016. |
Cash Equivalents | CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. |
Spare Parts, Supplies And Fuel | SPARE PARTS, SUPPLIES AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost. |
Property And Equipment | PROPERTY AND EQUIPMENT . Expenditures for major additions, improvements and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal. For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable. The depreciable lives and net book value of our property and equipment are as follows (dollars in millions): Net Book Value at May 31, Range 2018 2017 Wide-body aircraft and related equipment 15 to 30 years $ 10,463 $ 9,103 Narrow-body and feeder aircraft and related equipment 5 to 18 years 2,908 3,099 Package handling and ground support equipment 3 to 30 years 4,028 3,862 Information technology 2 to 10 years 1,277 1,114 Vehicles 3 to 15 years 3,747 3,400 Facilities and other 2 to 40 years 5,731 5,403 Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment. Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $3.1 billion in 2018, $2.9 billion in 2017 and $2.6 billion in 2016. Depreciation and amortization expense includes amortization of assets under capital lease. |
Capitalized Interest | CAPITALIZED INTEREST . Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $61 million in 2018, $41 million in 2017 and $42 million in 2016. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. We operate integrated transportation networks, and accordingly, cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment. In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2018, we had five aircraft temporarily idled. These aircraft have been idled for an average of 20 months and are expected to return to revenue service. |
Sale of Business | SALE OF BUSINESS. On April 30, 2018, we sold a non-core business of TNT Express B.V. (“TNT Express”) and recorded a gain of $85 million in the FedEx Express segment. |
Goodwill and Intangible Assets | GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. INTANGIBLE ASSETS . Intangible assets primarily include customer relationships, technology assets and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 3 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. |
Pension and Postretirement Healthcare Plans | PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental matter which is reviewed on an annual basis and revised as appropriate. The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” or MTM accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our operating results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. |
Income Taxes | INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet that are not subject to valuation allowances. We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets. |
Self-Insurance Accruals | SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents and general business liabilities, and benefits paid under employee healthcare and disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, employee healthcare claims and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense. |
Leases | LEASES. We lease certain aircraft, facilities, equipment and vehicles under capital and operating leases. The commencement date of all leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the property. In addition to minimum rental payments, certain leases provide for contingent rentals based on equipment usage, principally related to aircraft leases at FedEx Express and copier usage at FedEx Office. Rent expense associated with contingent rentals is recorded as incurred. Certain of our leases contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. The cumulative excess of rent payments over rent expense is accounted for as a deferred lease asset and recorded in “Other assets” in the accompanying consolidated balance sheets. The cumulative excess of rent expense over rent payments is accounted for as a deferred lease obligation. Leasehold improvements associated with assets utilized under capital or operating leases are amortized over the shorter of the asset’s useful life or the lease term. |
Deferred Gains | DEFERRED GAINS. Gains on the sale and leaseback of aircraft and other property and equipment are deferred and amortized ratably over the life of the lease as a reduction of rent expense. Substantially all of these deferred gains are related to aircraft transactions. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow or net investment hedge, changes in its fair value are considered to be effective and are recorded in accumulated other comprehensive income (“AOCI”) until the hedged item is recorded in income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow or net investment hedge as of May 31, 2018, 2017 and 2016. Accordingly, additional disclosures about these types of financial instruments are excluded from this report. For derivative instruments designated as hedges, we assess, both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of the hedged items. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When a hedging instrument expires or is sold, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in AOCI at that time remain there until the forecasted transaction is ultimately recognized in the income statement. When a forecasted transaction is no longer expected to occur, the cumulative gains or losses that were reported in AOCI are immediately recognized in the income statement. The financial statement impact of derivative transactions was immaterial for the years ended May 31, 2018, 2017 and 2016. Accordingly, additional disclosures have been excluded from this report. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of AOCI within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented. |
Employees Under Collective Bargaining Arrangements | EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of FedEx Express, who are a small number of its total employees, are employed under a collective bargaining agreement that took effect on November 2, 2015. The collective bargaining agreement is scheduled to become amendable in November 2021. Other than the pilots at FedEx Express and drivers at one FedEx Freight facility, our U.S. employees have thus far chosen not to unionize (we acquired FedEx Supply Chain Distribution System, Inc. (“FedEx Supply Chain,” formerly GENCO Distribution System, Inc.) in 2015, which already had a small number of employees that are members of unions). Additionally, certain of FedEx Express’s non-U.S. employees are unionized. |
Stock-Based Compensation | STOCK-BASED COMPENSATION. We recognize compensation expense for stock-based awards under the provisions of the accounting guidance related to share-based payments. This guidance requires recognition of compensation expense for stock-based awards using a fair value method. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants. |
Treasury Shares | TREASURY SHARES. In January 2016, our Board of Directors authorized a share repurchase program of up to 25 million shares. During 2018, we repurchased 4.3 million shares of FedEx common stock at an average price of $237.45 per share for a total of $1.0 billion. As of May 31, 2018, 12 million shares remained under the share repurchase authorization. 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. In 2017, we repurchased 3.0 million shares of FedEx common stock at an average price of $172.13 per share for a total of $509 million. In 2016, we repurchased 18.2 million shares of FedEx common stock at an average price of $149.35 per share for a total of $2.7 billion. |
Dividends Declared per Common Share | DIVIDENDS DECLARED PER COMMON SHARE. On June 11, 2018, our Board of Directors declared a quarterly dividend of $0.65 per share of common stock. The dividend was paid on July 9, 2018 to stockholders of record as of the close of business on June 25, 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. |
Use Of Estimates | USE OF ESTIMATES . The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill); and purchase price allocations. |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Depreciable Lives and Net Book Value of Property and Equipment | The depreciable lives and net book value of our property and equipment are as follows (dollars in millions): Net Book Value at May 31, Range 2018 2017 Wide-body aircraft and related equipment 15 to 30 years $ 10,463 $ 9,103 Narrow-body and feeder aircraft and related equipment 5 to 18 years 2,908 3,099 Package handling and ground support equipment 3 to 30 years 4,028 3,862 Information technology 2 to 10 years 1,277 1,114 Vehicles 3 to 15 years 3,747 3,400 Facilities and other 2 to 40 years 5,731 5,403 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
May 31, 2018 | |
Acquisition Tables [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for this acquisition, as well as adjustments made during the measurement period (in millions): Preliminary Measurement Period Final May 31, 2016 Adjustments May 31, 2017 Current assets (1) $ 1,905 $ (53 ) $ 1,852 Property and equipment 1,104 (124 ) 980 Goodwill 2,964 488 3,452 Identifiable intangible assets 920 (390 ) 530 Other non-current assets 289 183 472 Current liabilities (2) (1,644 ) (44 ) (1,688 ) Long-term liabilities (644 ) (60 ) (704 ) Total purchase price $ 4,894 $ — $ 4,894 (1) Primarily accounts receivable and cash. (2) Primarily accounts payable and accrued expenses. |
Schedule of Intangible Assets with Finite Lives | The purchase price was allocated to the identifiable intangible assets acquired as follows (in millions): Intangible assets with finite lives Customer relationships (12-year life) $ 430 Technology (3-year life) 20 Trademarks (4-year life) 80 Total intangible assets $ 530 |
Business Acquisition Pro Forma Financial Information | The following unaudited pro forma consolidated financial information presents the combined operations of FedEx and TNT Express as if the acquisition had occurred at the beginning of 2015 (dollars in millions, except per share amounts): (Unaudited) 2016 2015 Consolidated revenues $ 57,899 $ 55,862 Consolidated net income 1,600 638 Diluted earnings per share $ 5.73 $ 2.22 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 31, 2018 | |
Goodwill And Other Intangible Assets Tables [Abstract] | |
Schedule Of Goodwill | The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions): FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Corporate, Other and Eliminations Total Goodwill at May 31, 2016 $ 4,546 $ 827 $ 764 $ 1,525 $ 395 $ 8,057 Accumulated impairment charges — — (133 ) (1,177 ) — (1,310 ) Balance as of May 31, 2016 4,546 827 631 348 395 6,747 Purchase adjustments and other (1) 407 — — — — 407 Balance as of May 31, 2017 4,953 827 631 348 395 7,154 Goodwill acquired (2) 76 14 3 — 32 125 Purchase adjustments and other (1) 71 (1 ) — — (2 ) 68 Impairment charges (3) — — — — (374 ) (374 ) Balance as of May 31, 2018 $ 5,100 $ 840 $ 634 $ 348 $ 51 $ 6,973 Accumulated goodwill impairment charges as of May 31, 2018 $ — $ — $ (133 ) $ (1,177 ) $ (374 ) $ (1,684 ) (1) Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. (2) Goodwill acquired relates to the acquisitions of Northwest Research, Inc. and P2P Mailing Limited. See Note 3 for more information. (3) Impairment charges related to the goodwill impairment of FedEx Supply Chain described below. |
Schedule Of Identifiable Intangible Assets | The summary of our intangible assets and related accumulated amortization at May 31, 2018 and 2017 is as follows (in millions): 2018 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 676 $ (250 ) $ 426 $ 656 $ (203 ) $ 453 Technology 68 (39 ) 29 54 (26 ) 28 Trademarks and other 141 (116 ) 25 136 (88 ) 48 Total $ 885 $ (405 ) $ 480 $ 846 $ (317 ) $ 529 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | Expected amortization expense for the next five years is as follows (in millions): 2019 $ 81 2020 63 2021 50 2022 44 2023 42 |
Selected Current Liabilities (T
Selected Current Liabilities (Tables) | 12 Months Ended |
May 31, 2018 | |
Selected Current Liabilities Tables [Abstract] | |
Selected Current Liabilities | The components of selected current liability captions at May 31 were as follows (in millions): 2018 2017 Accrued Salaries and Employee Benefits Salaries $ 498 $ 431 Employee benefits, including variable compensation 933 781 Compensated absences 746 702 $ 2,177 $ 1,914 Accrued Expenses Self-insurance accruals $ 957 $ 976 Taxes other than income taxes 334 283 Other 1,840 1,971 $ 3,131 $ 3,230 |
Long Term Debt and Other Financ
Long Term Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
May 31, 2018 | |
Long Term Debt Tables [Abstract] | |
Components of Long-term Debt (Net of Discounts and Debt Issuance Costs) | The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2018, are as follows (in millions): May 31, 2018 2017 Interest Rate% Maturity Senior unsecured debt: 8.00 2019 $ 750 $ 749 2.30 2020 399 398 2.625-2.70 2023 746 745 4.00 2024 746 745 3.20 2025 695 695 3.25 2026 744 743 3.30 2027 445 445 3.40 2028 495 - 4.90 2034 495 495 3.90 2035 493 493 3.875-4.10 2043 983 983 5.10 2044 742 742 4.10 2045 640 640 4.55-4.75 2046 2,459 2,458 4.40 2047 735 734 4.05 2048 986 - 4.50 2065 246 246 7.60 2098 237 237 Euro senior unsecured debt: floating rate 2019 582 558 0.50 2020 581 557 1.00 2023 869 833 1.625 2027 1,442 1,382 Total senior unsecured debt 16,510 14,878 Other debt 4 9 Capital lease obligations 71 44 16,585 14,931 Less current portion 1,342 22 $ 15,243 $ 14,909 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2018 | |
Leases Tables [Abstract] | |
Schedule of Rent Expense Under Operating Leases | Rent expense under operating leases for the years ended May 31 was as follows (in millions): 2018 2017 2016 Minimum rentals $ 2,913 $ 2,814 $ 2,394 Contingent rentals (1) 194 178 214 $ 3,107 $ 2,992 $ 2,608 (1) Contingent rentals are based on equipment usage. |
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 May 31, 2018 is as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2019 $ 343 $ 2,128 $ 2,471 2020 261 1,916 2,177 2021 203 1,748 1,951 2022 185 1,577 1,762 2023 127 1,421 1,548 Thereafter 48 8,145 8,193 Total $ 1,167 $ 16,935 $ 18,102 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
May 31, 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 the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI): 2018 2017 2016 Foreign currency translation gain (loss): Balance at beginning of period $ (685 ) $ (514 ) $ (253 ) Translation adjustments (74 ) (171 ) (261 ) Balance at end of period (759 ) (685 ) (514 ) Retirement plans adjustments: Balance at beginning of period 270 345 425 Prior service credit and other arising during period (4 ) 1 (4 ) Reclassifications from AOCI (85 ) (76 ) (76 ) Balance at end of period 181 270 345 Accumulated other comprehensive (loss) income at end of period $ (578 ) $ (415 ) $ (169 ) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from AOCI Affected Line Item in the Income Statement 2018 2017 2016 Amortization of retirement plans prior service credits, before tax $ 121 $ 120 $ 121 Salaries and employee benefits Income tax benefit (36 ) (44 ) (45 ) Provision for income taxes AOCI reclassifications, net of tax $ 85 $ 76 $ 76 Net income |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2018 | |
Stock Based Compensation Tables [Abstract] | |
Stock-based compensation expense | Our total stock-based compensation expense for the years ended May 31 was as follows (in millions): 2018 2017 2016 Stock-based compensation expense $ 167 $ 154 $ 144 |
Schedule of Stock Based Compensation Key Assumptions for Valuation | The following is a table of the weighted-average Black-Scholes value of our stock option grants, the intrinsic value of options exercised (in millions) and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, and then a discussion of our methodology for developing each of the assumptions used in the valuation model: 2018 2017 2016 Weighted-average Black-Scholes value $ 55.72 $ 43.99 $ 52.40 Intrinsic value of options exercised $ 359 $ 274 $ 115 Black-Scholes Assumptions: Expected lives 6.5 years 6.5 years 6.4 years Expected volatility 23 % 25 % 28 % Risk-free interest rate 2.07 % 1.64 % 1.94 % Dividend yield 0.796 % 0.719 % 0.519 % |
Schedule of Stock Option Activity | The following table summarizes information about stock option activity for the year ended May 31, 2018: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) (1) Outstanding at June 1, 2017 13,598,699 $ 125.66 Granted 2,778,238 221.15 Exercised (2,975,835 ) 109.95 Forfeited (416,185 ) 178.75 Outstanding at May 31, 2018 12,984,917 $ 147.98 6.3 $ 1,326 Exercisable 7,303,111 $ 113.12 4.7 $ 993 Expected to vest 5,382,943 $ 192.79 8.3 $ 315 Available for future grants 15,788,701 (1) Only presented for options with market value at May 31, 2018 in excess of the exercise price of the option. |
Schedule of Vested and Unvested Restricted Stock | The following table summarizes information about vested and unvested restricted stock for the year ended May 31, 2018: Restricted Stock Shares Weighted- Average Grant Date Fair Value Unvested at June 1, 2017 362,304 $ 155.53 Granted 155,624 212.60 Vested (177,264 ) 148.94 Forfeited (3,074 ) 148.95 Unvested at May 31, 2018 337,590 $ 185.16 |
Schedule of Stock Option Vesting | The following table summarizes information about stock option vesting during the years ended May 31: Stock Options Vested during the year Fair value (in millions) 2018 2,465,493 $ 112 2017 2,427,837 104 2016 2,572,129 98 |
Computation of Earnings Per S41
Computation of Earnings Per Share (Tables) | 12 Months Ended |
May 31, 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 years ended May 31 was as follows (in millions, except per share amounts): 2018 2017 2016 Basic earnings per common share: Net earnings allocable to common shares (1) $ 4,566 $ 2,993 $ 1,818 Weighted-average common shares 267 266 276 Basic earnings per common share $ 17.08 $ 11.24 $ 6.59 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 4,566 $ 2,993 $ 1,818 Weighted-average common shares 267 266 276 Dilutive effect of share-based awards 5 4 3 Weighted-average diluted shares 272 270 279 Diluted earnings per common share $ 16.79 $ 11.07 $ 6.51 Anti-dilutive options excluded from diluted earnings per common share 2.5 4.5 3.9 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes for the years ended May 31 were as follows (in millions): 2018 2017 2016 Current provision Domestic: Federal $ (540 ) $ 269 $ 513 State and local 43 88 72 Foreign 461 285 200 (36 ) 642 785 Deferred provision (benefit) Domestic: Federal 271 989 155 State and local 125 59 (18 ) Foreign (579 ) (108 ) (2 ) (183 ) 940 135 $ (219 ) $ 1,582 $ 920 |
Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes | A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax rate (29.2% in 2018 and 35% in 2017 and 2016) to income before taxes for the years ended May 31 is as follows (in millions): 2018 2017 2016 Taxes computed at federal statutory rate $ 1,271 $ 1,603 $ 959 Increases (decreases) in income tax from: Goodwill impairment charge 109 — — State and local income taxes, net of federal benefit 119 99 33 Foreign operations 43 (19 ) (50 ) Corporate structuring transactions (1) (255 ) (68 ) (76 ) Tax Cuts and Jobs Act (2) (1,357 ) — — Foreign tax credits from distributions (225 ) — — Uncertain tax positions 86 — — TNT Express integration and acquisition costs 20 25 40 Other, net (3) (30 ) (58 ) 14 $ (219 ) $ 1,582 $ 920 Effective Tax Rate (5.0 )% 34.6 % 33.6 % (1) The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively. (2 ) Primary components are a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our U.S. Pensions Plans in February 2018. (3 ) Includes benefits from share-based payments of $60 million and $55 million in 2018 and 2017, respectively. |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions): 2018 2017 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Property, equipment, leases and intangibles $ 752 $ 3,663 $ 124 $ 4,993 Employee benefits 595 31 1,951 — Self-insurance accruals 494 — 745 — Other 416 602 692 660 Net operating loss/credit carryforwards 1,146 — 1,069 — Valuation allowances (711 ) — (738 ) — $ 2,692 $ 4,296 $ 3,843 $ 5,653 |
Schedule of Net Deferred Tax Liabilities | The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions): 2018 2017 Noncurrent deferred tax assets (1) $ 1,263 $ 675 Noncurrent deferred tax liabilities (2,867 ) (2,485 ) $ (1,604 ) $ (1,810 ) (1) Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2018 2017 2016 Balance at beginning of year $ 67 $ 49 $ 36 Increases for tax positions taken in the current year 3 — 3 Increases for tax positions taken in prior years 103 8 3 Increase for business acquisition — 17 25 Decreases for tax positions taken in prior years (10 ) (1 ) (5 ) Settlements (2 ) (4 ) (4 ) Decreases from lapse of statute of limitations — (2 ) (7 ) Changes due to currency translation — — (2 ) Balance at end of year $ 161 $ 67 $ 49 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
May 31, 2018 | |
Retirement Plan Tables [Abstract] | |
Schedule of Retirement Plan Costs | A summary of our retirement plans costs over the past three years is as follows (in millions): 2018 2017 2016 Defined benefit pension plans $ 150 $ 234 $ 214 Defined contribution plans 527 480 416 Postretirement healthcare plans 74 76 82 Retirement plans mark-to-market (gain) loss (10 ) (24 ) 1,498 $ 741 $ 766 $ 2,210 The components of the MTM adjustments are as follows (in millions): 2018 2017 2016 Discount rate changes $ (613 ) $ 266 $ 1,129 Demographic assumption experience 382 450 (916 ) Annuity contract purchase 210 — — Actual versus expected return on assets 11 (740 ) 1,285 Total mark-to-market (gain) loss $ (10 ) $ (24 ) $ 1,498 |
Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans | Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows: U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate used to determine benefit obligation 4.27 % 4.08 % 4.13 % 2.37 % 2.43 % 2.46 % 4.33 % 4.32 % 4.43 % Discount rate used to determine net periodic benefit cost 4.08 4.13 4.42 2.43 2.46 2.95 4.32 4.43 4.62 Rate of increase in future compensation levels used to determine benefit obligation 4.43 4.47 4.46 2.26 2.42 2.82 — — — Rate of increase in future compensation levels used to determine net periodic benefit cost 4.47 4.46 4.62 2.42 2.82 3.19 — — — Expected long-term rate of return on assets 6.50 6.50 6.50 3.09 3.18 3.68 — — — |
Schedule of Plan Assets at Measurement Date | The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and most significant international pension plans at the measurement date are presented in the following table (in millions): Plan Assets at Measurement Date 2018 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (1) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 714 3 % 0 - 5% $ 19 $ 695 Equities 30 - 50 U.S. large cap equity (2) 2,449 11 840 International equities (2) 3,506 16 2,681 172 Global equities (2) 1,772 8 U.S. SMID cap equity 780 4 780 Fixed income securities 50 - 70 Corporate 5,834 26 5,834 Government (2) 4,872 22 3,345 Mortgage-backed and other (2) 626 3 125 Alternative investments (2) 1,573 7 0 - 10 $ 209 Other (69 ) — (62 ) (7 ) Total U.S. plan assets $ 22,057 100 % $ 4,258 $ 10,164 $ 209 Asset Class (International Plans) Cash and cash equivalents $ 24 2 % $ 2 $ 22 Equities International equities (2) 146 11 70 Global equities (2) 228 17 Fixed income securities Corporate (2) 306 23 68 Government (2) 452 34 108 256 Mortgage-backed and other (2) 168 13 Alternative investments 19 2 19 Other (23 ) (2 ) (6 ) (17 ) Total international plan assets $ 1,320 100 % $ 104 $ 418 (1) Target ranges have not been provided for international plan assets as they are managed at an individual country level. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total. Plan Assets at Measurement Date 2017 Asset Class (U.S. Plans) Fair Value Actual % Target Range % (1) Quoted Prices in Active Markets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Cash and cash equivalents $ 1,076 4 % 0 - 5% $ 26 $ 1,050 Equities 30 - 50 U.S. large cap equity (2) 2,415 10 830 International equities (2) 3,521 14 2,747 157 Global equities (2) 3,276 13 U.S. SMID cap equity 987 4 987 Fixed income securities 50 - 70 Corporate 8,163 33 8,163 Government (2) 4,674 19 3,454 Mortgage-backed and other (2) 603 2 129 Alternative investments (2) 377 2 0 - 5 $ 129 Other (159 ) (1 ) (161 ) 2 Total U.S. plan assets $ 24,933 100 % $ 4,429 $ 12,955 $ 129 Asset Class (International Plans) Cash and cash equivalents $ 48 4 % $ 2 $ 46 Equities International equities (2) 137 11 72 Global equities (2) 202 17 Fixed income securities Corporate (2) 270 22 49 Government (2) 405 34 95 230 Mortgage-backed and other (2) 145 12 Alternative investments 17 1 17 Other (18 ) (1 ) (2 ) (16 ) Total international plan assets $ 1,206 100 % $ 95 $ 398 (1) Target ranges have not been provided for international plan assets as they are managed at an individual country level. (2) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total. |
Schedule of Change in Fair Value of Level 3 Assets | The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions): U.S. Pension Plans 2018 2017 Balance at beginning of year $ 129 $ 48 Actual return on plan assets: Assets held during current year 8 5 Assets sold during the year 4 1 Purchases, sales and settlements 68 75 Balance at end of year $ 209 $ 129 |
Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status | The following table provides a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2018 and a statement of the funded status as of May 31, 2018 and 2017 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2018 2017 2018 2017 Accumulated Benefit Obligation (“ABO”) $ 22,029 $ 27,244 $ 1,956 $ 1,842 Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) PBO/APBO at the beginning of year $ 27,870 $ 27,804 $ 2,043 $ 1,798 $ 927 $ 905 Service cost 679 638 97 83 36 36 Interest cost 1,115 1,128 49 43 39 39 Actuarial loss 21 571 (34 ) 161 (9 ) (14 ) Benefits paid (854 ) (2,271 ) (46 ) (38 ) (80 ) (72 ) Settlements (6,178 ) — (5 ) (7 ) — — Purchase accounting adjustment — — — 26 — — Other — — 63 (23 ) 42 33 PBO/APBO at the end of year $ 22,653 $ 27,870 $ 2,167 $ 2,043 $ 955 $ 927 Change in Plan Assets Fair value of plan assets at the beginning of year $ 24,933 $ 23,017 $ 1,379 $ 1,254 $ — $ — Actual return on plan assets 1,609 2,167 49 112 — — Company contributions 2,547 2,020 84 95 42 36 Benefits paid (854 ) (2,271 ) (46 ) (38 ) (80 ) (72 ) Settlements (6,178 ) — (5 ) (7 ) — — Other — — 48 (37 ) 38 36 Fair value of plan assets at the end of year $ 22,057 $ 24,933 $ 1,509 $ 1,379 $ — $ — Funded Status of the Plans $ (596 ) $ (2,937 ) $ (658 ) $ (664 ) $ (955 ) $ (927 ) Amount Recognized in the Balance Sheet at May 31: Noncurrent asset $ — $ — $ 73 $ 40 $ — $ — Current pension, postretirement healthcare and other benefit obligations (22 ) (33 ) (16 ) (17 ) (62 ) (39 ) Noncurrent pension, postretirement healthcare and other benefit obligations (574 ) (2,904 ) (715 ) (687 ) (893 ) (888 ) Net amount recognized $ (596 ) $ (2,937 ) $ (658 ) $ (664 ) $ (955 ) $ (927 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: Prior service (credit) cost and other $ (292 ) $ (410 ) $ (10 ) $ (13 ) $ 2 $ (4 ) Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost expected to be amortized in next year’s Net Periodic Benefit Cost: Prior service credit and other $ (118 ) $ (118 ) $ (2 ) $ (2 ) $ — $ — |
Schedule of Components of Pension Plans | Our pension plans included the following components at May 31 (in millions): PBO Fair Value of Plan Assets Funded Status 2018 Qualified $ 22,413 $ 22,057 $ (356 ) Nonqualified 240 — (240 ) International Plans 2,167 1,509 (658 ) Total $ 24,820 $ 23,566 $ (1,254 ) 2017 Qualified $ 27,600 $ 24,933 $ (2,667 ) Nonqualified 270 — (270 ) International Plans 2,043 1,379 (664 ) Total $ 29,913 $ 26,312 $ (3,601 ) |
Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets | The table above provides the PBO, fair value of plan assets and funded status of our pension plans on an aggregated basis. The following table presents our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions): PBO Exceeds the Fair Value of Plan Assets 2018 2017 U.S. Pension Benefits Fair value of plan assets $ 22,057 $ 24,933 PBO (22,653 ) (27,870 ) Net funded status $ (596 ) $ (2,937 ) International Pension Benefits Fair value of plan assets $ 1,060 $ 952 PBO (1,791 ) (1,656 ) Net funded status $ (731 ) $ (704 ) ABO Exceeds the Fair Value of Plan Assets 2018 2017 U.S. Pension Benefits ABO (1) $ (1,134 ) $ (27,244 ) Fair value of plan assets 859 24,933 PBO (1,214 ) (27,870 ) Net funded status $ (355 ) $ (2,937 ) International Pension Benefits ABO (1) $ (1,581 ) $ (1,433 ) Fair value of plan assets 1,060 928 PBO (1,791 ) (1,626 ) Net funded status $ (731 ) $ (698 ) (1) ABO not used in determination of funded status. |
Schedule of Contributions to Pension Plans | Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions): 2018 2017 Required $ 22 $ 459 Voluntary 2,478 1,541 $ 2,500 $ 2,000 |
Schedule of Net Periodic Benefit Cost | Net periodic benefit cost for the three years ended May 31 were as follows (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 679 $ 638 $ 622 $ 97 $ 83 $ 40 $ 36 $ 36 $ 40 Interest cost 1,115 1,128 1,155 49 43 25 39 39 42 Expected return on plan assets (1,624 ) (1,501 ) (1,490 ) (46 ) (38 ) (18 ) — — — Amortization of prior service credit (118 ) (118 ) (118 ) (2 ) (2 ) (3 ) (1 ) — — Actuarial losses (gains) and other 37 (95 ) 1,563 (38 ) 87 (1 ) (9 ) (14 ) (64 ) Net periodic benefit cost $ 89 $ 52 $ 1,732 $ 60 $ 173 $ 43 $ 65 $ 61 $ 18 |
Schedule of Amounts Recognized in Other Comprehensive Income for All Plans | Amounts recognized in other comprehensive income (“OCI”) for all plans for the years ended May 31 were as follows (in millions): 2018 2017 U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Gross Amount Net of Tax Amount Prior service cost (credit) arising during period $ — $ — $ — $ — $ 5 $ 4 $ — $ — $ 1 $ 1 $ (3 ) $ (2 ) Amortizations: Prior services credit 118 83 2 1 1 1 118 74 2 2 — — Total recognized in OCI $ 118 $ 83 $ 2 $ 1 $ 6 $ 5 $ 118 $ 74 $ 3 $ 3 $ (3 ) $ (2 ) |
Schedule of Expected Future Benefit Payments | Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2019 $ 680 $ 48 $ 62 2020 781 48 65 2021 846 54 69 2022 951 71 73 2023 1,071 79 76 2024-2028 7,325 428 369 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
May 31, 2018 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Schedule of Segment Information | The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income (loss) and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31: FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Corporate, other and eliminations (1) Consolidated Total Revenues 2018 $ 36,172 $ 18,395 $ 6,812 $ 1,650 $ 2,421 $ 65,450 2017 33,824 16,503 6,070 1,621 2,301 60,319 2016 25,553 15,051 5,825 1,593 2,343 50,365 Depreciation and amortization 2018 $ 1,679 $ 681 $ 296 $ 382 $ 57 $ 3,095 2017 1,662 627 265 371 70 2,995 2016 1,377 556 244 384 70 2,631 Operating income (loss) 2018 (2) $ 2,578 $ 2,605 $ 517 $ — $ (830 ) $ 4,870 2017 (3) 2,769 2,279 390 — (401 ) 5,037 2016 (4) 2,485 2,240 421 — (2,069 ) 3,077 Segment assets (5) 2018 $ 31,753 $ 15,458 $ 7,389 $ 6,377 $ (8,647 ) $ 52,330 2017 31,307 12,969 6,527 5,682 (7,933 ) 48,552 2016 20,798 11,407 6,104 5,390 2,260 45,959 (1) Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). (2) Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. (3) Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. (4) Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. (5) Segment assets include intercompany receivables. |
Schedule of Segment Capital Expenditures | The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions): FedEx Express Segment FedEx Ground Segment FedEx Freight Segment FedEx Services Segment Other Consolidated Total 2018 $ 3,461 $ 1,178 $ 490 $ 477 $ 57 $ 5,663 2017 2,725 1,490 431 416 54 5,116 2016 2,350 1,556 428 432 52 4,818 |
Schedule of Revenue by Service Type and Geographical Information | The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions): 2018 2017 2016 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 7,273 $ 6,955 $ 6,763 U.S. overnight envelope 1,788 1,750 1,662 U.S. deferred 3,738 3,526 3,379 Total U.S. domestic package revenue 12,799 12,231 11,804 International priority 7,356 6,940 5,697 International economy 3,255 2,876 2,282 Total international export package revenue 10,611 9,816 7,979 International domestic (1) 4,587 4,227 1,285 Total package revenue 27,997 26,274 21,068 Freight: U.S. 2,797 2,527 2,481 International priority 2,179 1,910 999 International economy 1,916 1,740 385 International airfreight 368 355 126 Total freight revenue 7,260 6,532 3,991 Other 915 1,018 494 Total FedEx Express segment 36,172 33,824 25,553 FedEx Ground segment 18,395 16,503 15,051 FedEx Freight segment 6,812 6,070 5,825 FedEx Services segment 1,650 1,621 1,593 Other and eliminations (2) 2,421 2,301 2,343 $ 65,450 $ 60,319 $ 50,365 GEOGRAPHICAL INFORMATION (3) Revenues: U.S. $ 43,581 $ 40,269 $ 38,070 International: FedEx Express segment 20,417 18,817 11,083 FedEx Ground segment 407 331 275 FedEx Freight segment 181 149 137 FedEx Services segment 3 10 10 Other (2) 861 743 790 Total international revenue 21,869 20,050 12,295 $ 65,450 $ 60,319 $ 50,365 Noncurrent assets: U.S. $ 30,362 $ 28,141 $ 25,942 International 8,627 7,783 8,028 $ 38,989 $ 35,924 $ 33,970 (1) International domestic revenues relate to our intra-country operations. (2) Includes the FedEx Trade Networks operating segment and TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). (3) International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. |
Supplemental Cash Flow Inform45
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
May 31, 2018 | |
Supplemental Cash Flow Tables [Abstract] | |
Supplemental Cash Flow | Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions): 2018 2017 2016 Cash payments for: Interest (net of capitalized interest) $ 524 $ 484 $ 321 Income taxes $ 760 $ 397 $ 996 Income tax refunds received (571 ) (20 ) (5 ) Cash tax payments, net $ 189 $ 377 $ 991 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
May 31, 2018 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | Annual purchase commitments under various contracts as of May 31, 2018 were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2019 $ 1,534 $ 894 $ 2,428 2020 1,922 692 2,614 2021 1,255 416 1,671 2022 1,359 285 1,644 2023 628 185 813 Thereafter 2,653 491 3,144 Total $ 9,351 $ 2,963 $ 12,314 (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 May 31, 2018, with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2019 - - 15 3 18 2020 - - 16 6 22 2021 12 5 10 - 27 2022 12 6 10 3 31 2023 12 6 6 - 24 Thereafter 14 13 - - 27 Total 50 30 57 12 149 |
Summary of Quarterly Operatin47
Summary of Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended |
May 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results (Unaudited) | (in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 (1) Revenues $ 15,297 $ 16,313 $ 16,526 $ 17,314 Operating income 1,117 1,262 1,001 1,490 Net income (2) 596 775 2,074 1,127 Basic earnings per common share (3) 2.22 2.89 7.74 4.23 Diluted earnings per common share (3) 2.19 2.84 7.59 4.15 2017 (4) Revenues $ 14,663 $ 14,931 $ 14,997 $ 15,728 Operating income (loss) 1,264 1,167 1,025 1,581 Net income (loss) 715 700 562 1,020 Basic earnings (loss) per common share (3) 2.69 2.63 2.11 3.81 Diluted earnings (loss) per common share (3) 2.65 2.59 2.07 3.75 (1) The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. (2) The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans. (3) The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. (4) The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. |
Condensed Consolidating Finan48
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
May 31, 2018 | |
Condensed Consolidating Financial Statements Tables [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,485 $ 257 $ 1,538 $ (15 ) $ 3,265 Receivables, less allowances 3 4,970 3,586 (78 ) 8,481 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 425 878 292 — 1,595 Total current assets 1,913 6,105 5,416 (93 ) 13,341 PROPERTY AND EQUIPMENT, AT COST 21 51,232 3,868 — 55,121 Less accumulated depreciation and amortization 17 25,111 1,839 — 26,967 Net property and equipment 4 26,121 2,029 — 28,154 INTERCOMPANY RECEIVABLE 1,487 924 — (2,411 ) — GOODWILL — 1,709 5,264 — 6,973 INVESTMENT IN SUBSIDIARIES 33,370 4,082 — (37,452 ) — OTHER ASSETS 75 1,854 1,829 104 3,862 $ 36,849 $ 40,795 $ 14,538 $ (39,852 ) $ 52,330 LIABILITIES AND STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ 1,332 $ 1 $ 9 $ — $ 1,342 Accrued salaries and employee benefits 65 1,506 606 — 2,177 Accounts payable 16 1,332 1,719 (90 ) 2,977 Accrued expenses 460 1,778 896 (3 ) 3,131 Total current liabilities 1,873 4,617 3,230 (93 ) 9,627 LONG-TERM DEBT, LESS CURRENT PORTION 14,942 288 13 — 15,243 INTERCOMPANY PAYABLE — — 2,411 (2,411 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,626 137 104 2,867 Other liabilities 619 3,432 1,126 — 5,177 Total other long-term liabilities 619 6,058 1,263 104 8,044 STOCKHOLDERS’ INVESTMENT 19,415 29,832 7,621 (37,452 ) 19,416 $ 36,849 $ 40,795 $ 14,538 $ (39,852 ) $ 52,330 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor 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 Year Ended May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 48,601 $ 17,256 $ (407 ) $ 65,450 OPERATING EXPENSES: Salaries and employee benefits 149 17,814 5,244 — 23,207 Purchased transportation — 9,134 6,191 (224 ) 15,101 Rentals and landing fees 5 2,587 776 (7 ) 3,361 Depreciation and amortization 1 2,644 450 — 3,095 Fuel — 3,077 297 — 3,374 Maintenance and repairs 1 2,294 327 — 2,622 Goodwill and other asset impairment charges — — 380 — 380 Retirement plans mark-to-market adjustment — 19 (29 ) — (10 ) Intercompany charges, net (437 ) (120 ) 557 — — Other 281 6,227 3,118 (176 ) 9,450 — 43,676 17,311 (407 ) 60,580 OPERATING INCOME — 4,925 (55 ) — 4,870 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 4,572 62 — (4,634 ) — Interest, net (541 ) 46 (15 ) — (510 ) Intercompany charges, net 544 (291 ) (253 ) — — Other, net (3 ) (120 ) 116 — (7 ) INCOME BEFORE INCOME TAXES 4,572 4,622 (207 ) (4,634 ) 4,353 Provision for income taxes (benefit) — 309 (528 ) — (219 ) NET INCOME $ 4,572 $ 4,313 $ 321 $ (4,634 ) $ 4,572 COMPREHENSIVE INCOME $ 4,489 $ 4,263 $ 291 $ (4,634 ) $ 4,409 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 44,823 $ 15,798 $ (302 ) $ 60,319 OPERATING EXPENSES: Salaries and employee benefits 123 16,696 4,723 — 21,542 Purchased transportation — 8,260 5,495 (125 ) 13,630 Rentals and landing fees 5 2,517 724 (6 ) 3,240 Depreciation and amortization 1 2,538 456 — 2,995 Fuel — 2,476 297 — 2,773 Maintenance and repairs 1 2,086 287 — 2,374 Retirement plans mark-to-market adjustment — (75 ) 51 — (24 ) Intercompany charges, net (434 ) 182 252 — — Other 304 5,734 2,885 (171 ) 8,752 — 40,414 15,170 (302 ) 55,282 OPERATING INCOME — 4,409 628 — 5,037 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 2,997 68 — (3,065 ) — Interest, net (507 ) 27 1 — (479 ) Intercompany charges, net 508 (296 ) (212 ) — — Other, net (1 ) (134 ) 156 — 21 INCOME BEFORE INCOME TAXES 2,997 4,074 573 (3,065 ) 4,579 Provision for income taxes — 1,439 143 — 1,582 NET INCOME $ 2,997 $ 2,635 $ 430 $ (3,065 ) $ 2,997 COMPREHENSIVE INCOME $ 2,922 $ 2,580 $ 314 $ (3,065 ) $ 2,751 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 42,143 $ 8,547 $ (325 ) $ 50,365 OPERATING EXPENSES: Salaries and employee benefits 119 15,880 2,582 — 18,581 Purchased transportation — 7,380 2,720 (134 ) 9,966 Rentals and landing fees 5 2,484 371 (6 ) 2,854 Depreciation and amortization 1 2,399 231 — 2,631 Fuel — 2,324 75 — 2,399 Maintenance and repairs 1 1,954 153 — 2,108 Retirement plans mark-to-market adjustment — 1,414 84 — 1,498 Intercompany charges, net (645 ) 425 220 — — Other 519 5,274 1,643 (185 ) 7,251 — 39,534 8,079 (325 ) 47,288 OPERATING INCOME — 2,609 468 — 3,077 OTHER INCOME (EXPENSE): Equity in earnings of subsidiaries 1,820 279 — (2,099 ) — Interest, net (355 ) 27 13 — (315 ) Intercompany charges, net 369 (354 ) (15 ) — — Other, net (14 ) (14 ) 6 — (22 ) INCOME BEFORE INCOME TAXES 1,820 2,547 472 (2,099 ) 2,740 Provision for income taxes — 818 102 — 920 NET INCOME $ 1,820 $ 1,729 $ 370 $ (2,099 ) $ 1,820 COMPREHENSIVE INCOME $ 1,746 $ 1,704 $ 128 $ (2,099 ) $ 1,479 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2018 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,837 ) $ 6,767 $ 712 $ 32 $ 4,674 INVESTING ACTIVITIES Capital expenditures (1 ) (5,299 ) (363 ) — (5,663 ) Business acquisitions, net of cash acquired — (44 ) (135 ) — (179 ) Proceeds from sale of business — — 123 — 123 Proceeds from asset dispositions and other (6 ) 33 15 — 42 CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (7 ) (5,310 ) (360 ) — (5,677 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,529 (1,612 ) 83 — — Payment on loan between subsidiaries 663 — (663 ) — — Intercompany dividends — 98 (98 ) — — Principal payments on debt — (22 ) (16 ) — (38 ) Proceeds from debt issuance 1,480 — — — 1,480 Proceeds from stock issuances 327 — — — 327 Dividends paid (535 ) — — — (535 ) Purchase of treasury stock (1,017 ) — — — (1,017 ) Other, net 3 7 — — 10 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,450 (1,529 ) (694 ) — 227 Effect of exchange rate changes on cash (5 ) 4 73 — 72 Net increase (decrease) in cash and cash equivalents (399 ) (68 ) (269 ) 32 (704 ) Cash and cash equivalents at beginning of period 1,884 325 1,807 (47 ) 3,969 Cash and cash equivalents at end of period $ 1,485 $ 257 $ 1,538 $ (15 ) $ 3,265 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2017 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,155 ) $ 5,254 $ 835 $ (4 ) $ 4,930 INVESTING ACTIVITIES Capital expenditures — (4,694 ) (422 ) — (5,116 ) Proceeds from asset dispositions and other 34 25 76 — 135 CASH USED IN INVESTING ACTIVITIES 34 (4,669 ) (346 ) — (4,981 ) FINANCING ACTIVITIES Net transfers from (to) Parent 421 (518 ) 97 — — Payment on loan between subsidiaries 41 (15 ) (26 ) — — Intercompany dividends — 1 (1 ) — — Principal payments on debt — (55 ) (27 ) — (82 ) Proceeds from debt issuances 1,190 — — — 1,190 Proceeds from stock issuances 337 — — — 337 Dividends paid (426 ) — — — (426 ) Purchase of treasury stock (509 ) — — — (509 ) Other, net (12 ) (13 ) 43 — 18 CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,042 (600 ) 86 — 528 Effect of exchange rate changes on cash (11 ) 14 (45 ) — (42 ) Net (decrease) increase in cash and cash equivalents (90 ) (1 ) 530 (4 ) 435 Cash and cash equivalents at beginning of period 1,974 326 1,277 (43 ) 3,534 Cash and cash equivalents at end of period $ 1,884 $ 325 $ 1,807 $ (47 ) $ 3,969 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended May 31, 2016 Parent Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (831 ) $ 5,932 $ 572 $ 35 $ 5,708 INVESTING ACTIVITIES Capital expenditures — (4,617 ) (201 ) — (4,818 ) Business acquisitions, net of cash acquired — — (4,618 ) — (4,618 ) Proceeds from asset dispositions and other (55 ) 33 12 — (10 ) CASH USED IN INVESTING ACTIVITIES (55 ) (4,584 ) (4,807 ) — (9,446 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,629 (1,549 ) (80 ) — — Payment on loan between subsidiaries (4,805 ) 109 4,696 — — Intercompany dividends — 20 (20 ) — — Principal payments on debt — (19 ) (22 ) — (41 ) Proceeds from debt issuance 6,519 — — — 6,519 Proceeds from stock issuances 183 — — — 183 Dividends paid (277 ) — — — (277 ) Purchase of treasury stock (2,722 ) — — — (2,722 ) Other, net (51 ) (48 ) 48 — (51 ) CASH PROVIDED (USED IN) FINANCING ACTIVITIES 476 (1,487 ) 4,622 — 3,611 Effect of exchange rate changes on cash 1 (22 ) (81 ) — (102 ) Net increase in cash and cash equivalents (409 ) (161 ) 306 35 (229 ) Cash and cash equivalents at beginning of period 2,383 487 971 (78 ) 3,763 Cash and cash equivalents at end of period $ 1,974 $ 326 $ 1,277 $ (43 ) $ 3,534 |
Valuation and Qualifying Acco49
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
May 31, 2018 | |
Valuation And Qualifying Accounts Tables Abstract | |
Schedule of Valuation and Qualifying Accounts | SCHEDULE II FEDEX CORPORATION VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED MAY 31, 2018, 2017 AND 2016 (IN MILLIONS) ADDITIONS DESCRIPTION BALANCE AT BEGINNING OF YEAR CHARGED TO EXPENSES CHARGED TO OTHER ACCOUNTS DEDUCTIONS BALANCE AT END OF YEAR Accounts Receivable Reserves: Allowance for Doubtful Accounts 2018 $ 115 $ 246 $ — $ 162 (a) $ 199 2017 73 136 — 94 (a) 115 2016 86 121 — 134 (a) 73 Allowance for Revenue Adjustments 2018 $ 137 $ — $ 1,173 (b) $ 1,108 (c) $ 202 2017 105 — 941 (b) 909 (c) 137 2016 99 — 692 (b) 686 (c) 105 Inventory Valuation Allowance: 2018 $ 237 $ 27 $ 6 $ 2 $ 268 2017 218 26 — 7 237 2016 207 26 — 15 218 (a) Uncollectible accounts written off, net of recoveries, and other adjustments. (b) Principally charged against revenue. (c) Service failures, rebills and other. |
Description of Business and S50
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Millions | Apr. 30, 2018USD ($) | May 31, 2018USD ($)air-craft$ / sharesshares | May 31, 2017USD ($)$ / sharesshares | May 31, 2016USD ($)$ / sharesshares | Jan. 26, 2016shares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Advertising and promotion expenses | $ 442 | $ 458 | $ 417 | ||
Depreciable life range for majority of aircraft costs | 15 to 30 years | ||||
Depreciation expense, excluding gains and losses on sales of property and equipment | $ 3,095 | 2,995 | 2,631 | ||
Interest Costs Capitalized | $ 61 | $ 41 | $ 42 | ||
Number of Idle Aircraft | air-craft | 5 | ||||
Number of months aircraft remained idle | an average of 20 months | ||||
Gain on sale of TNT express business | $ 85 | ||||
Stock Repurchase Program Number Of Shares Authorized To Be Repurchased | shares | 25,000,000 | ||||
Number of Shares Repurchased | shares | 4,300,000 | 3,000,000 | 18,200,000 | ||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 237.45 | $ 172.13 | $ 149.35 | ||
Payments for Repurchase of Common Stock | $ 1,017 | $ 509 | $ 2,722 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | shares | 12,000,000 | ||||
Dividends Payable, Date Declared | Jun. 11, 2018 | ||||
Dividends Payable Amount Per Share | $ / shares | $ 0.65 | ||||
Dividends Payable, Date To Be Paid | Jul. 9, 2018 | ||||
Dividends Payable, Date Of Record | Jun. 25, 2018 | ||||
Minimum [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Intangible assets amortization periods | 3 years | ||||
Maximum [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Intangible assets amortization periods | 15 years | ||||
FedEx Express Segment [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Depreciation expense, excluding gains and losses on sales of property and equipment | $ 1,679 | $ 1,662 | $ 1,377 | ||
FedEx Express Segment [Member] | TNT Express Business [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Gain on sale of TNT express business | $ 85 |
Description of Business and S51
Description of Business and Summary of Significant Accounting Policies - Schedule of Depreciable Lives and Net Book Value of Our Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Net property and equipment | $ 28,154 | $ 25,981 |
Wide Body Aircraft and Related Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 15 to 30 years | |
Net property and equipment | $ 10,463 | 9,103 |
Narrow Body and Feeder Aircraft and Related Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 5 to 18 years | |
Net property and equipment | $ 2,908 | 3,099 |
Package Handling and Ground Support Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 3 to 30 years | |
Net property and equipment | $ 4,028 | 3,862 |
Information Technology [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 2 to 10 years | |
Net property and equipment | $ 1,277 | 1,114 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 3 to 15 years | |
Net property and equipment | $ 3,747 | 3,400 |
Facilities and Other Property [Member] | ||
Property Plant And Equipment [Line Items] | ||
Depreciable lives range | 2 to 40 years | |
Net property and equipment | $ 5,731 | $ 5,403 |
Recent Accounting Guidance - Ad
Recent Accounting Guidance - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2018 | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | [2] | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Income tax benefit of intra-entity transfers of assets other than inventory | $ 219 | $ (1,582) | $ (920) | |||||||||||||||||||
Operating income | $ 1,490 | [1] | $ 1,001 | $ 1,262 | $ 1,117 | $ 1,581 | $ 1,025 | $ 1,167 | $ 1,264 | 4,870 | [3] | 5,037 | [4] | $ 3,077 | [5] | |||||||
Lease liability and related right-of-use asset | 13,000 | 13,000 | ||||||||||||||||||||
ASU 201616 [Member] | ||||||||||||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Income tax benefit of intra-entity transfers of assets other than inventory | 50 | |||||||||||||||||||||
Cumulative effect on adjustment to retained earnings | $ 14 | |||||||||||||||||||||
ASU 201703 [Member] | ||||||||||||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||||||||||||
Operating income | $ 598 | $ 471 | ||||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | |||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[3] | Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. | |||||||||||||||||||||
[4] | Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[5] | Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. |
Business Combinations - Additio
Business Combinations - Additional Information (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||||
May 31, 2016USD ($) | May 31, 2018USD ($)Country | Mar. 23, 2018USD ($) | Mar. 23, 2018GBP (£) | Oct. 13, 2017USD ($) | May 31, 2017USD ($) | May 25, 2016USD ($) | May 25, 2016EUR (€) | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 6,747 | $ 6,973 | $ 7,154 | |||||
TNT acquisition related costs | 115 | |||||||
TNT restructuring, impairments, litigation matters and pension adjustments | 40 | |||||||
TNT acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition price | 4,894 | $ 4,900 | € 4,400 | |||||
Cash acquired | $ 280 | € 250 | ||||||
Number of country for collection, transports and delivery of documents, parcels and freight | Country | 200 | |||||||
Goodwill | $ 3,452 | |||||||
Net increase in goodwill | $ 488 | |||||||
P2P Mailing Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition price | $ 135 | £ 92 | ||||||
Northwest Research, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition price | $ 50 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation (Details) $ in Millions, € in Billions | May 31, 2018USD ($) | May 31, 2017USD ($) | May 31, 2016USD ($) | May 25, 2016USD ($) | May 25, 2016EUR (€) | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 6,973 | $ 7,154 | $ 6,747 | |||
TNT acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | 1,852 | ||||
Property and equipment | 980 | |||||
Goodwill | 3,452 | |||||
Identifiable intangible assets | 530 | |||||
Other non-current assets | 472 | |||||
Current liabilities | [2] | (1,688) | ||||
Long-term liabilities | (704) | |||||
Total purchase price | 4,894 | $ 4,900 | € 4.4 | |||
TNT acquisition [Member] | Preliminary [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | 1,905 | ||||
Property and equipment | 1,104 | |||||
Goodwill | 2,964 | |||||
Identifiable intangible assets | 920 | |||||
Other non-current assets | 289 | |||||
Current liabilities | [2] | (1,644) | ||||
Long-term liabilities | (644) | |||||
Total purchase price | $ 4,894 | |||||
TNT acquisition [Member] | Measurement Period Adjustments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current assets | [1] | (53) | ||||
Property and equipment | (124) | |||||
Goodwill | 488 | |||||
Identifiable intangible assets | (390) | |||||
Other non-current assets | 183 | |||||
Current liabilities | [2] | (44) | ||||
Long-term liabilities | $ (60) | |||||
[1] | Primarily accounts receivable and cash. | |||||
[2] | Primarily accounts payable and accrued expenses. |
Business Combinations - Sched55
Business Combinations - Schedule of Intangible Assets with Finite Lives (Details) - TNT Express Intangible [Member] $ in Millions | 12 Months Ended |
May 31, 2018USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Identifiable intangible assets | $ 530 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | 430 |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | 20 |
Trademarks [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets with finite lives | $ 80 |
Business Combinations - Sched56
Business Combinations - Schedule of Intangible Assets with Finite Lives (Parenthetical) (Details) - TNT Express Intangible [Member] | 12 Months Ended |
May 31, 2018 | |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 12 years |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 3 years |
Trademarks [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible Finite-lived assets useful life | 4 years |
Business Combinations - Busines
Business Combinations - Business Acquisition Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Business Acquisition Pro Forma Information Abstract | ||
Consolidated revenues | $ 57,899 | $ 55,862 |
Consolidated net income | $ 1,600 | $ 638 |
Diluted earnings per share | $ 5.73 | $ 2.22 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2016 | ||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | $ 8,057 | ||||
Accumulated impairment charges | $ (1,684) | (1,310) | |||
GOODWILL | $ 6,973 | $ 7,154 | 6,973 | 6,747 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 7,154 | 6,747 | |||
Goodwill acquired | [1] | 125 | |||
Purchase adjustments and other | [2] | 68 | 407 | ||
Impairment charges | [3] | (374) | |||
Ending Goodwill at May 31 | 6,973 | 7,154 | |||
Accumulated impairment charges | (1,684) | (1,310) | |||
Corporate, Other and Eliminations [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 395 | ||||
Accumulated impairment charges | (374) | ||||
GOODWILL | 395 | 395 | 51 | 395 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 395 | 395 | |||
Goodwill acquired | [1] | 32 | |||
Purchase adjustments and other | [2] | (2) | |||
Impairment charges | [3] | (374) | |||
Ending Goodwill at May 31 | 51 | 395 | |||
Accumulated impairment charges | (374) | ||||
FedEx Express Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 4,546 | ||||
GOODWILL | 4,953 | 4,546 | 5,100 | 4,546 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 4,953 | 4,546 | |||
Goodwill acquired | [1] | 76 | |||
Purchase adjustments and other | [2] | 71 | 407 | ||
Ending Goodwill at May 31 | 5,100 | 4,953 | |||
FedEx Ground Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 827 | ||||
GOODWILL | 827 | 827 | 840 | 827 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 827 | 827 | |||
Goodwill acquired | [1] | 14 | |||
Purchase adjustments and other | [2] | (1) | |||
Ending Goodwill at May 31 | 840 | 827 | |||
FedEx Freight Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 764 | ||||
Accumulated impairment charges | (133) | (133) | |||
GOODWILL | 631 | 631 | 634 | 631 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 631 | 631 | |||
Goodwill acquired | [1] | 3 | |||
Ending Goodwill at May 31 | 634 | 631 | |||
Accumulated impairment charges | (133) | (133) | |||
FedEx Services Segment [Member] | |||||
Net Goodwill Detail [Abstract] | |||||
Gross Goodwill at May 31 | 1,525 | ||||
Accumulated impairment charges | (1,177) | (1,177) | |||
GOODWILL | 348 | 348 | 348 | 348 | |
Goodwill Roll Forward | |||||
Beginning Goodwill at May 31 | 348 | 348 | |||
Ending Goodwill at May 31 | $ 348 | $ 348 | |||
Accumulated impairment charges | $ (1,177) | $ (1,177) | |||
[1] | Goodwill acquired relates to the acquisitions of Northwest Research, Inc. and P2P Mailing Limited. See Note 3 for more information. | ||||
[2] | Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. | ||||
[3] | Impairment charges related to the goodwill impairment of FedEx Supply Chain described below. |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2016 | ||
Goodwill [Line Items] | ||||
Goodwill impairment charges | [1] | $ 374,000,000 | ||
Other impairments of goodwill | 0 | $ 0 | $ 0 | |
Intangible assets amortization expense | 87,000,000 | $ 91,000,000 | $ 14,000,000 | |
Corporate, Other and Eliminations [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charges | [1] | $ 374,000,000 | ||
[1] | Impairment charges related to the goodwill impairment of FedEx Supply Chain described below. |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Schedule Of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 885 | $ 846 |
Accumulated Amortization | (405) | (317) |
Net Book Value | 480 | 529 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 676 | 656 |
Accumulated Amortization | (250) | (203) |
Net Book Value | 426 | 453 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 68 | 54 |
Accumulated Amortization | (39) | (26) |
Net Book Value | 29 | 28 |
Trademarks and other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 141 | 136 |
Accumulated Amortization | (116) | (88) |
Net Book Value | $ 25 | $ 48 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details) $ in Millions | May 31, 2018USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Abstract | |
2,019 | $ 81 |
2,020 | 63 |
2,021 | 50 |
2,022 | 44 |
2,023 | $ 42 |
Selected Current Liabilities (D
Selected Current Liabilities (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
Accrued Liabilities Current [Abstract] | ||
Salaries | $ 498 | $ 431 |
Employee benefits, including variable compensation | 933 | 781 |
Compensated absences | 746 | 702 |
Accrued salaries and employee benefits | 2,177 | 1,914 |
Self-insurance accruals | 957 | 976 |
Taxes other than income taxes | 334 | 283 |
Other | 1,840 | 1,971 |
Accrued expenses | $ 3,131 | $ 3,230 |
Long-term Debt and Other Fina63
Long-term Debt and Other Financing Arrangements - Components of Long-term Debt (Net of Discounts and Debt Issuance Costs) (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
Debt Instrument [Line Items] | ||
Long Term Debt | $ 16,510 | $ 14,878 |
Other debt | 4 | 9 |
Capital lease obligations | 71 | 44 |
Total Debt and Capital Lease Obligations | 16,585 | 14,931 |
Less current portion | 1,342 | 22 |
LONG-TERM DEBT, LESS CURRENT PORTION | 15,243 | 14,909 |
Senior Unsecured Debt Due 2019 8.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 750 | 749 |
Senior Unsecured Debt Due 2020 2.30% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 399 | 398 |
Senior Unsecured Debt Due 2023 2.625-2.70% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 746 | 745 |
Senior Unsecured Debt Due 2024 4.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 746 | 745 |
Senior Unsecured Debt Due 2025 3.20% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 695 | 695 |
Senior Unsecured Debt Due 2026 3.25% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 744 | 743 |
Senior Unsecured Debt Due 2027 3.30% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 445 | 445 |
Senior Unsecured Debt Issued 2028 3.40% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 495 | |
Senior Unsecured Debt Due 2034 4.90% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 495 | 495 |
Senior Unsecured Debt Due 2035 3.90% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 493 | 493 |
Senior Unsecured Debt Due 2043 3.875-4.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 983 | 983 |
Senior Unsecured Debt Due 2044 5.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 742 | 742 |
Senior Unsecured Debt Due 2045 4.10% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 640 | 640 |
Senior Unsecured Debt Due 2046 4.55-4.75% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 2,459 | 2,458 |
Senior Unsecured Debt Due 2047 4.40% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 735 | 734 |
Senior Unsecured Debt Due 2048 4.05% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 986 | |
Senior Unsecured Debt Due 2065 4.50% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 246 | 246 |
Senior Unsecured Debt Due 2098 7.60% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 237 | 237 |
Euro Senior Unsecured Debt Due 2019 floating rate [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 582 | 558 |
Euro Senior Unsecured Debt Due 2020 0.50% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 581 | 557 |
Euro Senior Unsecured Debt Due 2023 1.00% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 869 | 833 |
Euro Senior Unsecured Debt Due 2027 1.625% [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | $ 1,442 | $ 1,382 |
Long-term Debt and Other Fina64
Long-term Debt and Other Financing Arrangements - Additional Information (Details) - USD ($) | Jan. 30, 2018 | May 31, 2018 | Nov. 30, 2017 | May 31, 2017 |
Line Of Credit Facility [Line Items] | ||||
Long-term debt weighted average interest rate | 3.60% | |||
Long Term Debt Exclusive Of Capital Leases Fair Value | $ 16,600,000,000 | $ 15,500,000,000 | ||
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 | 200.00% | |||
Letters Of Credit Outstanding | $ 54,000,000 | |||
Commercial paper outstanding | 0 | |||
Letter of Credit Outstanding Sublimit Unused Amount | $ 446,000,000 | |||
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 | ||
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 | semiannually | |||
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 | |||
EURIBOR [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Floating Rate Basis Points, Description | Our floating-rate euro senior notes bear interest at three-month EURIBOR plus a spread of 55 basis points and resets quarterly. | |||
Floating Rate Basis Points | 0.55% |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Other Lease Information (Details) [Abstract] | ||
Capital and operating leases expiration term | Various dates through 2049 | |
Percentage Total Aircraft Fleet Leased | 7.00% | 9.00% |
Operating leases weighted-average remaining lease term | 6 years |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense Under Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2016 | ||
Operating Leases Rent Expense [Abstract] | ||||
Minimum rentals | $ 2,913 | $ 2,814 | $ 2,394 | |
Contingent rentals | [1] | 194 | 178 | 214 |
Operating leases rent expense, total | $ 3,107 | $ 2,992 | $ 2,608 | |
[1] | Contingent rentals are based on equipment usage. |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions | May 31, 2018USD ($) |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,019 | $ 2,471 |
2,020 | 2,177 |
2,021 | 1,951 |
2,022 | 1,762 |
2,023 | 1,548 |
Thereafter | 8,193 |
Total | 18,102 |
Aircraft and Related Equipment [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,019 | 343 |
2,020 | 261 |
2,021 | 203 |
2,022 | 185 |
2,023 | 127 |
Thereafter | 48 |
Total | 1,167 |
Facilities and Other [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2,019 | 2,128 |
2,020 | 1,916 |
2,021 | 1,748 |
2,022 | 1,577 |
2,023 | 1,421 |
Thereafter | 8,145 |
Total | $ 16,935 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) | May 31, 2018$ / sharesshares |
Preferred Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Preferred Stock Shares Authorized | 4,000,000 |
Preferred Stock Par Value | $ / shares | $ 0 |
Preferred Stock Shares Issued | 0 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 16,073 | $ 13,784 | $ 14,993 |
Translation adjustments | (74) | (171) | (261) |
Ending balance | 19,416 | 16,073 | 13,784 |
Foreign Currency Translation Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (685) | (514) | (253) |
Translation adjustments | (74) | (171) | (261) |
Ending balance | (759) | (685) | (514) |
Retirement Plans Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 270 | 345 | 425 |
Prior service credit and other arising during period | (4) | 1 | (4) |
Reclassifications from AOCI | (85) | (76) | (76) |
Ending balance | 181 | 270 | 345 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (415) | (169) | 172 |
Ending balance | $ (578) | $ (415) | $ (169) |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and employee benefits | $ 121 | $ 120 | $ 121 |
Provision for income taxes | (36) | (44) | (45) |
Net income | $ 85 | $ 76 | $ 76 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |||
Stock-based compensation expense | $ 167 | $ 154 | $ 144 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Share Based Compensation Arrangement Stock Options [Abstract] | |||
Stock option vesting period range | one to four years | ||
Percentage of options vesting ratably over four years | 82.00% | ||
Restricted stock expiration period | ratably over a four-year period | ||
Stock-based compensation, key assumptions of valuation method | Black-Scholes | ||
Maximum term of stock options | 10 years | ||
Restricted stock granted | 155,624 | 153,984 | 139,838 |
Restricted stock, weighted-average fair value | $ 212.60 | $ 166.12 | $ 168.83 |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Abstract | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 211 | ||
Stock option remaining weighted average vesting period | 2 years | ||
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant [Abstract] | |||
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant | 10.00% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Based Compensation Key Assumptions for Valuation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Weighted-average Black-Scholes value | $ 55.72 | $ 43.99 | $ 52.40 |
Intrinsic value of options exercised | $ 359 | $ 274 | $ 115 |
Expected lives | 6 years 6 months | 6 years 6 months | 6 years 4 months 24 days |
Expected volatility | 23.00% | 25.00% | 28.00% |
Risk-free interest rate | 2.07% | 1.64% | 1.94% |
Dividend yield | 0.796% | 0.719% | 0.519% |
Stock-Based Compensation - Sc74
Stock-Based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 31, 2018USD ($)$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Stock Options, Outstanding at June 1, 2017 | 13,598,699 | |
Stock Options, Granted | 2,778,238 | |
Stock Options, Exercised | (2,975,835) | |
Stock Options, Forfeited | (416,185) | |
Stock Options, Outstanding at May 31, 2018 | 12,984,917 | |
Stock Options, Exercisable | 7,303,111 | |
Stock Options, Expected to vest | 5,382,943 | |
Stock Options, Available for future grants | 15,788,701 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract] | ||
Weighted-Average Exercise Price, Outstanding at June 1, 2017 | $ / shares | $ 125.66 | |
Weighted-Average Exercise Price, Granted | $ / shares | 221.15 | |
Weighted-Average Exercise Price, Exercised | $ / shares | 109.95 | |
Weighted-Average Exercise Price, Forfeited | $ / shares | 178.75 | |
Weighted-Average Exercise Price, Outstanding at May 31, 2018 | $ / shares | 147.98 | |
Weighted-Average Exercise Price, Exercisable | $ / shares | 113.12 | |
Weighted-Average Exercise Price, Expected to vest | $ / shares | $ 192.79 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Term (in years) [Abstract] | ||
Weighted-Average Remaining Contractual Term, Outstanding at May 31, 2018 | 6 years 3 months 18 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 8 months 12 days | |
Weighted-Average Remaining Contractual Term, Expected to vest | 8 years 3 months 18 days | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | ||
Aggregate Intrinsic Value, Outstanding at May 31, 2017 | $ | $ 1,326 | [1] |
Aggregate Intrinsic Value, Exercisable | $ | 993 | [1] |
Aggregate Intrinsic Value, Expected to vest | $ | $ 315 | [1] |
[1] | Only presented for options with market value at May 31, 2018 in excess of the exercise price of the option. |
Stock-Based Compensation - Sc75
Stock-Based Compensation - Schedule of Vested and Unvested Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | |||
Restricted Stock, Unvested at June 1, 2017 | 362,304 | ||
Restricted Stock, Granted | 155,624 | 153,984 | 139,838 |
Restricted Stock, Vested | (177,264) | ||
Restricted Stock, Forfeited | (3,074) | ||
Restricted Stock, Unvested at May 31, 2018 | 337,590 | 362,304 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value Roll Forward | |||
Weighted-Average Grant Date Fair Value, Unvested at June 1, 2017 | $ 155.53 | ||
Weighted-Average Grant Date Fair Value, Granted | 212.60 | $ 166.12 | $ 168.83 |
Weighted-Average Grant Date Fair Value, Vested | 148.94 | ||
Weighted-Average Grant Date Fair Value, Forfeited | 148.95 | ||
Weighted-Average Grant Date Fair Value, Unvested at May 31, 2018 | $ 185.16 | $ 155.53 |
Stock-Based Compensation - Sc76
Stock-Based Compensation - Schedule of Stock Option Vesting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract | |||
Vested during the year | 2,465,493 | 2,427,837 | 2,572,129 |
Fair value | $ 112 | $ 104 | $ 98 |
Computation of Earnings Per S77
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 | 12 Months Ended | ||||||||||||||||||
May 31, 2018 | [2],[3] | Feb. 28, 2018 | [2],[3] | Nov. 30, 2017 | [2],[3] | Aug. 31, 2017 | [2],[3] | May 31, 2017 | [3],[4] | Feb. 28, 2017 | [3],[4] | Nov. 30, 2016 | [3],[4] | Aug. 31, 2016 | [3],[4] | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||
Basic earnings per common share: | ||||||||||||||||||||
Net earnings allocable to common shares | [1] | $ 4,566 | $ 2,993 | $ 1,818 | ||||||||||||||||
Weighted-average common shares | 267 | 266 | 276 | |||||||||||||||||
Basic earnings per common share | $ 4.23 | $ 7.74 | $ 2.89 | $ 2.22 | $ 3.81 | $ 2.11 | $ 2.63 | $ 2.69 | $ 17.08 | $ 11.24 | $ 6.59 | |||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Net earnings allocable to common shares | [1] | $ 4,566 | $ 2,993 | $ 1,818 | ||||||||||||||||
Weighted-average common shares | 267 | 266 | 276 | |||||||||||||||||
Dilutive effect of share-based awards | 5 | 4 | 3 | |||||||||||||||||
Weighted-average diluted shares | 272 | 270 | 279 | |||||||||||||||||
Diluted earnings per common share | $ 4.15 | $ 7.59 | $ 2.84 | $ 2.19 | $ 3.75 | $ 2.07 | $ 2.59 | $ 2.65 | $ 16.79 | $ 11.07 | $ 6.51 | |||||||||
Anti-dilutive options excluded from diluted earnings per common share | 2.5 | 4.5 | 3.9 | |||||||||||||||||
[1] | Net earnings available to participating securities were immaterial in all periods presented. | |||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | |||||||||||||||||||
[3] | The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. | |||||||||||||||||||
[4] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Current provision | |||
Federal | $ (540) | $ 269 | $ 513 |
State and local | 43 | 88 | 72 |
Foreign | 461 | 285 | 200 |
Current Provision, Total | (36) | 642 | 785 |
Deferred provision (benefit) | |||
Federal | 271 | 989 | 155 |
State and local | 125 | 59 | (18) |
Foreign | (579) | (108) | (2) |
Deferred Provision, Total | (183) | 940 | 135 |
Provision for Income Taxes, Total | $ (219) | $ 1,582 | $ 920 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | May 31, 2018 | Dec. 31, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||||
Income Taxes [Line Items] | ||||||||||||
Earnings From Foreign Operations | $ 958 | $ 919 | $ 905 | |||||||||
Statutory Federal Income Tax Rate | 21.00% | 35.00% | 29.20% | 35.00% | 35.00% | |||||||
Provisional benefit related to remeasurement of net U.S. deferred tax liability | $ (1,150) | $ (1,150) | $ (1,150) | |||||||||
Income tax benefit related to lower statutory Income tax rate on earnings | $ 100 | 165 | 265 | |||||||||
Tax benefit from corporate structuring transactions | (255) | 255 | [1] | $ 68 | [1] | $ 76 | [1] | |||||
Tax benefits from foreign tax credits | 133 | 12 | $ 80 | $ 225 | ||||||||
Measurement period | 1 year | |||||||||||
Unrecognized Tax Benefits That Would Impact Effective Tax Rate | 142 | $ 142 | $ 142 | 63 | ||||||||
Unrecognized Tax Benefits Accrued Income Tax Penalties And Interest | $ 35 | $ 35 | 35 | 11 | ||||||||
Foreign Country [Member] | ||||||||||||
Income Taxes [Line Items] | ||||||||||||
Operating Loss Carryforwards | 3,600 | |||||||||||
State And Local Jurisdiction [Member] | ||||||||||||
Income Taxes [Line Items] | ||||||||||||
Operating Loss Carryforwards | 770 | |||||||||||
Adoption of U.S. Foreign Currency Tax Regulations [Member] | ||||||||||||
Income Taxes [Line Items] | ||||||||||||
Impact on tax rate, amount | 62 | |||||||||||
U.S. Plans [Member] | ||||||||||||
Income Taxes [Line Items] | ||||||||||||
Additional provisional amount recognized one time benefit | 204 | 204 | ||||||||||
Benefit of contribution | $ 1,500 | $ 1,500 | $ 2,500 | $ 2,000 | ||||||||
[1] | The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively. |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||||||||||
Taxes computed at federal statutory rate | $ 1,271 | $ 1,603 | $ 959 | |||||||
Goodwill impairment charge | 109 | |||||||||
State and local income taxes, net of federal benefit | 119 | 99 | 33 | |||||||
Foreign operations | 43 | (19) | (50) | |||||||
Corporate structuring transactions | $ 255 | (255) | [1] | (68) | [1] | (76) | [1] | |||
Tax Cuts and Jobs Act | [2] | (1,357) | ||||||||
Foreign tax credits from distributions | $ (133) | $ (12) | $ (80) | (225) | ||||||
Uncertain tax positions | 86 | |||||||||
TNT Express integration and acquisition costs | 20 | 25 | 40 | |||||||
Other, net | [3] | (30) | (58) | 14 | ||||||
Provision for Income Taxes, Total | $ (219) | $ 1,582 | $ 920 | |||||||
Effective Tax Rate | (5.00%) | 34.60% | 33.60% | |||||||
[1] | The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively. | |||||||||
[2] | Primary components are a $1.15 billion benefit from the remeasurement of our net U.S. deferred tax liability and a $204 million one-time benefit from a contribution to our U.S. Pensions Plans in February 2018. | |||||||||
[3] | Includes benefits from share-based payments of $60 million and $55 million in 2018 and 2017, respectively. |
Income Taxes - Schedule of Re81
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Taxes (Parenthetical) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2018 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Income Taxes [Line Items] | |||||
Foreign deferred tax benefits | $ (579) | $ (108) | $ (2) | ||
U.S. deferred tax expenses | 271 | 989 | $ 155 | ||
Provisional benefit related to remeasurement of net U.S. deferred tax liability | $ (1,150) | $ (1,150) | (1,150) | ||
Benefits from share-based payments | 60 | 55 | |||
U.S. Plans [Member] | |||||
Income Taxes [Line Items] | |||||
Additional provisional amount recognized one time benefit | $ 204 | $ 204 | |||
Corporate Structuring Transactions [Member] | |||||
Income Taxes [Line Items] | |||||
Foreign deferred tax benefits | 434 | 94 | |||
U.S. deferred tax expenses | $ 179 | $ 26 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Property, equipment, leases and intangibles | $ 752 | $ 124 |
Employee benefits | 595 | 1,951 |
Self-insurance accruals | 494 | 745 |
Other | 416 | 692 |
Net operating loss/credit carryforwards | 1,146 | 1,069 |
Valuation allowances | (711) | (738) |
Deferred Tax Assets, Net | 2,692 | 3,843 |
Property, equipment, leases and intangibles | 3,663 | 4,993 |
Employee benefits | 31 | |
Other | 602 | 660 |
Deferred Tax Liabilities | $ 4,296 | $ 5,653 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Liabilities (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 | |
Deferred Tax Assets Liabilities Net [Abstract] | |||
Noncurrent deferred tax assets | [1] | $ 1,263 | $ 675 |
Noncurrent deferred tax liabilities | (2,867) | (2,485) | |
Net deferred tax liabilities | $ (1,604) | $ (1,810) | |
[1] | Noncurrent deferred tax assets are included in the line item “Other Assets” in our consolidated balance sheets. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Balance at beginning of year | $ 67 | $ 49 | $ 36 |
Increases for tax positions taken in the current year | 3 | 3 | |
Increases for tax positions taken in prior years | 103 | 8 | 3 |
Increase for business acquisition | 17 | 25 | |
Decreases for tax positions taken in prior years | (10) | (1) | (5) |
Settlements | (2) | (4) | (4) |
Decreases from lapse of statute of limitations | (2) | (7) | |
Changes due to currency translation | (2) | ||
Balance at end of year | $ 161 | $ 67 | $ 49 |
Retirement Plans - Summary of R
Retirement Plans - Summary of Retirement Plan Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |||||
Defined benefit pension plans | $ 150 | $ 234 | $ 214 | ||
Defined contribution plans | 527 | 480 | 416 | ||
Postretirement healthcare plans | 74 | 76 | 82 | ||
Retirement plans mark-to-market (gain) loss | $ (10) | $ (24) | (10) | (24) | 1,498 |
Retirement plans costs | $ 741 | $ 766 | $ 2,210 |
Retirement Plans - Schedule of
Retirement Plans - Schedule of MTM Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Actuarial Gain Loss By Component Pre Tax [Abstract] | |||||
Discount rate changes | $ (613) | $ 266 | $ 1,129 | ||
Demographic assumption experience | 382 | 450 | (916) | ||
Annuity contract purchase | 210 | ||||
Actual versus expected return on assets | 11 | (740) | 1,285 | ||
Total mark-to-market (gain) loss | $ (10) | $ (24) | $ (10) | $ (24) | $ 1,498 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
May 31, 2018USD ($)RetireeandBeneficiary | Feb. 28, 2018USD ($) | May 31, 2017USD ($)Employee | Feb. 28, 2018USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2017USD ($) | May 31, 2016 | May 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
U.S. pension plan actual rate of return on assets | 6.30% | 9.20% | 0.90% | ||||||
Weighted average discount rate percent all pension postretirement plans | 4.11% | 3.98% | 4.04% | 4.38% | |||||
Actual rate of return on plan assets for the 15-year period | 8.20% | ||||||||
Defined benefit plan health care cost trend rate assumed for next fiscal year | 6.30% | 6.30% | |||||||
Defined benefit plan ultimate health care cost trend rate | 4.50% | 4.50% | |||||||
Defined benefit plan year that rate reaches ultimate trend rate | 2,037 | ||||||||
Metropolitan Life Insurance Company | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
One-time settlement loss | $ 210,000,000 | ||||||||
U.S. Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan Contributions By Employer | $ 1,500,000,000 | $ 1,500,000,000 | $ 2,500,000,000 | $ 2,000,000,000 | |||||
Pension Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% | ||||||
Pension Plans [Member] | Scenario Forecast [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Expected long-term rate of return on assets | 6.75% | ||||||||
Pension Plans [Member] | U.S. Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% | ||||||
Number of former employees elected to receive lump sum distribution | Employee | 18,300 | ||||||||
Lump sum amount paid to former employees | $ 1,300,000,000 | ||||||||
Group annuity contract and transfer | $ 6,178,000,000 | ||||||||
Defined Benefit Plan Contributions By Employer | $ 2,547,000,000 | $ 2,020,000,000 | |||||||
Pension Plans [Member] | U.S. Plans [Member] | Scenario Forecast [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan Contributions By Employer | $ 0 | ||||||||
Pension Plans [Member] | U.S. Plans [Member] | Metropolitan Life Insurance Company | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan responsibility transferred to number of retirees and beneficiaries | RetireeandBeneficiary | 41,000 | ||||||||
Group annuity contract and transfer | $ 6,000,000,000 |
Retirement Plans - Schedule o88
Retirement Plans - Schedule of Weighted Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of our Plans (Details) | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Pension Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% |
Pension Plans [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 4.27% | 4.08% | 4.13% |
Discount rate used to determine net periodic benefit cost | 4.08% | 4.13% | 4.42% |
Rate of increase in future compensation levels used to determine benefit obligation | 4.43% | 4.47% | 4.46% |
Rate of increase in future compensation levels used to determine net periodic benefit cost | 4.47% | 4.46% | 4.62% |
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% |
Pension Plans [Member] | International Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 2.37% | 2.43% | 2.46% |
Discount rate used to determine net periodic benefit cost | 2.43% | 2.46% | 2.95% |
Rate of increase in future compensation levels used to determine benefit obligation | 2.26% | 2.42% | 2.82% |
Rate of increase in future compensation levels used to determine net periodic benefit cost | 2.42% | 2.82% | 3.19% |
Expected long-term rate of return on assets | 3.09% | 3.18% | 3.68% |
Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plan Assumptions Used In Calculations [Abstract] | |||
Discount rate used to determine benefit obligation | 4.33% | 4.32% | 4.43% |
Discount rate used to determine net periodic benefit cost | 4.32% | 4.43% | 4.62% |
Retirement Plans - Schedule o89
Retirement Plans - Schedule of Weighted-Average Asset Allocations for U.S Pension Plans and International Pension Plans (Details) - Pension Plans [Member] - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 23,566 | $ 26,312 | ||
U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 22,057 | $ 24,933 | $ 23,017 | |
Actual % | 100.00% | 100.00% | ||
International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 1,509 | $ 1,379 | 1,254 | |
Portion of Fair Value of Plan Assets | $ 1,320 | $ 1,206 | ||
Actual % | 100.00% | 100.00% | ||
Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 4,258 | $ 4,429 | ||
Fair Value Inputs Level 1 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | 104 | 95 | ||
Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 10,164 | 12,955 | ||
Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | 418 | 398 | ||
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 209 | 129 | $ 48 | |
Cash And Cash Equivalents [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 714 | $ 1,076 | ||
Actual % | 3.00% | 4.00% | ||
Cash And Cash Equivalents [Member] | U.S. Plans [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 0.00% | 0.00% | |
Cash And Cash Equivalents [Member] | U.S. Plans [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 5.00% | 5.00% | |
Cash And Cash Equivalents [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | $ 24 | $ 48 | ||
Actual % | 2.00% | 4.00% | ||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 19 | $ 26 | ||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 1 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | 2 | 2 | ||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 695 | 1,050 | ||
Cash And Cash Equivalents [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | 22 | 46 | ||
U.S. Large Cap Equity [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 2,449 | $ 2,415 | |
Actual % | [2] | 11.00% | 10.00% | |
U.S. Large Cap Equity [Member] | Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 840 | $ 830 | |
International Equity Securities [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 3,506 | $ 3,521 | |
Actual % | [2] | 16.00% | 14.00% | |
International Equity Securities [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 146 | $ 137 | |
Actual % | [2] | 11.00% | 11.00% | |
International Equity Securities [Member] | Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 2,681 | $ 2,747 | |
International Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | 172 | 157 | |
International Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | 70 | 72 | |
Global Equity Funds [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 1,772 | $ 3,276 | |
Actual % | [2] | 8.00% | 13.00% | |
Global Equity Funds [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 228 | $ 202 | |
Actual % | [2] | 17.00% | 17.00% | |
U.S. SMID Cap Equity [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 780 | $ 987 | ||
Actual % | 4.00% | 4.00% | ||
U.S. SMID Cap Equity [Member] | Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 780 | $ 987 | ||
Corporate Fixed Income Securities [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 5,834 | $ 8,163 | ||
Actual % | 26.00% | 33.00% | ||
Corporate Fixed Income Securities [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 306 | $ 270 | |
Actual % | [2] | 23.00% | 22.00% | |
Corporate Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 5,834 | $ 8,163 | ||
Corporate Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | 68 | 49 | |
Government Fixed Income Securities [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 4,872 | $ 4,674 | |
Actual % | [2] | 22.00% | 19.00% | |
Government Fixed Income Securities [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 452 | $ 405 | |
Actual % | [2] | 34.00% | 34.00% | |
Government Fixed Income Securities [Member] | Fair Value Inputs Level 1 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 108 | $ 95 | |
Government Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | 3,345 | 3,454 | |
Government Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | 256 | 230 | |
Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 626 | $ 603 | |
Actual % | [2] | 3.00% | 2.00% | |
Mortgage Backed And Other Fixed Income Securities [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | [2] | $ 168 | $ 145 | |
Actual % | [2] | 13.00% | 12.00% | |
Mortgage Backed And Other Fixed Income Securities [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 125 | $ 129 | |
Alternative investments [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | $ 1,573 | $ 377 | |
Actual % | [2] | 7.00% | 2.00% | |
Alternative investments [Member] | U.S. Plans [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1],[2] | 0.00% | 0.00% | |
Alternative investments [Member] | U.S. Plans [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1],[2] | 10.00% | 5.00% | |
Alternative investments [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | $ 19 | $ 17 | ||
Actual % | 2.00% | 1.00% | ||
Alternative investments [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Assets | $ 19 | $ 17 | ||
Alternative investments [Member] | Fair Value Inputs Level 3 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [2] | 209 | 129 | |
Other [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Liabilities | (69) | $ (159) | ||
Actual % | (1.00%) | |||
Other [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Liabilities | $ (23) | $ (18) | ||
Actual % | (2.00%) | (1.00%) | ||
Other [Member] | Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Liabilities | $ (62) | $ (161) | ||
Other [Member] | Fair Value Inputs Level 1 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Liabilities | (6) | (2) | ||
Other [Member] | Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 2 | |||
Fair Value of Plan Liabilities | (7) | |||
Other [Member] | Fair Value Inputs Level 2 [Member] | International Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Portion of Fair Value of Plan Liabilities | $ (17) | $ (16) | ||
Total Equities [Member] | U.S. Plans [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 30.00% | 30.00% | |
Total Equities [Member] | U.S. Plans [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 50.00% | 50.00% | |
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 50.00% | 50.00% | |
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target % | [1] | 70.00% | 70.00% | |
[1] | Target ranges have not been provided for international plan assets as they are managed at an individual country level. | |||
[2] | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total. |
Retirement Plans - Schedule o90
Retirement Plans - Schedule of Change in Fair Value of Level 3 Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ 26,312 | |
Actual return on plan assets: | ||
Balance at end of year | 23,566 | $ 26,312 |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 24,933 | 23,017 |
Actual return on plan assets: | ||
Balance at end of year | 22,057 | 24,933 |
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 129 | 48 |
Actual return on plan assets: | ||
Assets held during current year | 8 | 5 |
Assets sold during the year | 4 | 1 |
Purchases, sales and settlements | 68 | 75 |
Balance at end of year | $ 209 | $ 129 |
Retirement Plans - Reconciliati
Retirement Plans - Reconciliation of Changes In Pension And Postretirement Healthcare Plans Benefit Obligations And Fair Value Of Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2018 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
U.S. Plans [Member] | |||||
Change in Plan Assets | |||||
Company contributions | $ 1,500 | $ 1,500 | $ 2,500 | $ 2,000 | |
Pension Plans [Member] | |||||
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||||
PBO/APBO at the beginning of year | 29,913 | ||||
PBO/APBO at the end of year | 24,820 | 29,913 | |||
Change in Plan Assets | |||||
Balance at beginning of year | 26,312 | ||||
Balance at end of year | 23,566 | 26,312 | |||
Funded Status of the Plans | (1,254) | (3,601) | |||
Pension Plans [Member] | U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated Benefit Obligation (“ABO”) | 22,029 | 27,244 | |||
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||||
PBO/APBO at the beginning of year | 27,870 | 27,804 | |||
Service cost | 679 | 638 | $ 622 | ||
Interest cost | 1,115 | 1,128 | 1,155 | ||
Actuarial loss | 21 | 571 | |||
Benefits paid | (854) | (2,271) | |||
Settlements | (6,178) | ||||
PBO/APBO at the end of year | 22,653 | 27,870 | 27,804 | ||
Change in Plan Assets | |||||
Balance at beginning of year | 24,933 | 23,017 | |||
Actual return on plan assets | 1,609 | 2,167 | |||
Company contributions | 2,547 | 2,020 | |||
Benefits paid | (854) | (2,271) | |||
Settlements | (6,178) | ||||
Balance at end of year | 22,057 | 24,933 | 23,017 | ||
Funded Status of the Plans | (596) | (2,937) | |||
Amount Recognized in the Balance Sheet at May 31: | |||||
Current pension, postretirement healthcare and other benefit obligations | (22) | (33) | |||
Noncurrent pension, postretirement healthcare and other benefit obligations | (574) | (2,904) | |||
Net amount recognized | (596) | (2,937) | |||
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||||
Prior service (credit) cost and other | (292) | (410) | |||
Defined Benefit Plan Amounts That Will Be Amortized From Accumulated Other Comprehensive Income Loss In Next Fiscal Year Abstract | |||||
Prior service credit and other | (118) | (118) | |||
Pension Plans [Member] | International Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated Benefit Obligation (“ABO”) | 1,956 | 1,842 | |||
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||||
PBO/APBO at the beginning of year | 2,043 | 1,798 | |||
Service cost | 97 | 83 | 40 | ||
Interest cost | 49 | 43 | 25 | ||
Actuarial loss | (34) | 161 | |||
Benefits paid | (46) | (38) | |||
Settlements | (5) | (7) | |||
Purchase accounting adjustment | 26 | ||||
Other | 63 | (23) | |||
PBO/APBO at the end of year | 2,167 | 2,043 | 1,798 | ||
Change in Plan Assets | |||||
Balance at beginning of year | 1,379 | 1,254 | |||
Actual return on plan assets | 49 | 112 | |||
Company contributions | 84 | 95 | |||
Benefits paid | (46) | (38) | |||
Settlements | (5) | (7) | |||
Other | 48 | (37) | |||
Balance at end of year | 1,509 | 1,379 | 1,254 | ||
Funded Status of the Plans | (658) | (664) | |||
Amount Recognized in the Balance Sheet at May 31: | |||||
Noncurrent asset | 73 | 40 | |||
Current pension, postretirement healthcare and other benefit obligations | (16) | (17) | |||
Noncurrent pension, postretirement healthcare and other benefit obligations | (715) | (687) | |||
Net amount recognized | (658) | (664) | |||
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||||
Prior service (credit) cost and other | (10) | (13) | |||
Defined Benefit Plan Amounts That Will Be Amortized From Accumulated Other Comprehensive Income Loss In Next Fiscal Year Abstract | |||||
Prior service credit and other | (2) | (2) | |||
Postretirement Healthcare Plans [Member] | |||||
Changes in Projected Benefit Obligation (“PBO”) and Accumulated Postretirement Benefit Obligation (“APBO”) | |||||
PBO/APBO at the beginning of year | 927 | 905 | |||
Service cost | 36 | 36 | 40 | ||
Interest cost | 39 | 39 | 42 | ||
Actuarial loss | (9) | (14) | |||
Benefits paid | (80) | (72) | |||
Other | 42 | 33 | |||
PBO/APBO at the end of year | 955 | 927 | $ 905 | ||
Change in Plan Assets | |||||
Company contributions | 42 | 36 | |||
Benefits paid | (80) | (72) | |||
Other | 38 | 36 | |||
Funded Status of the Plans | (955) | (927) | |||
Amount Recognized in the Balance Sheet at May 31: | |||||
Current pension, postretirement healthcare and other benefit obligations | (62) | (39) | |||
Noncurrent pension, postretirement healthcare and other benefit obligations | (893) | (888) | |||
Net amount recognized | (955) | (927) | |||
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost: | |||||
Prior service (credit) cost and other | $ 2 | $ (4) |
Retirement Plans - Schedule o92
Retirement Plans - Schedule of Components of Pension Plans (Details) - Pension Plans [Member] - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | $ 24,820 | $ 29,913 |
Fair Value of Plan Assets | 23,566 | 26,312 |
Funded Status | (1,254) | (3,601) |
Qualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 22,413 | 27,600 |
Fair Value of Plan Assets | 22,057 | 24,933 |
Funded Status | (356) | (2,667) |
Nonqualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 240 | 270 |
Funded Status | (240) | (270) |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation ("PBO") | 2,167 | 2,043 |
Fair Value of Plan Assets | 1,509 | 1,379 |
Funded Status | $ (658) | $ (664) |
Retirement Plans - Schedule o93
Retirement Plans - Schedule of Fair Value of Plan Assets for Pension Plans with a PBO or ABO in Excess of Plan Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 | |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 22,057 | $ 24,933 | |
PBO | (22,653) | (27,870) | |
Net funded status | (596) | (2,937) | |
ABO | [1] | (1,134) | (27,244) |
Fair value of plan assets | 859 | 24,933 | |
PBO | (1,214) | (27,870) | |
Net funded status | (355) | (2,937) | |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,060 | 952 | |
PBO | (1,791) | (1,656) | |
Net funded status | (731) | (704) | |
ABO | [1] | (1,581) | (1,433) |
Fair value of plan assets | 1,060 | 928 | |
PBO | (1,791) | (1,626) | |
Net funded status | $ (731) | $ (698) | |
[1] | ABO not used in determination of funded status. |
Retirement Plans - Schedule o94
Retirement Plans - Schedule of Pension Plans Contributions (Details) - U.S. Plans [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2018 | May 31, 2018 | May 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Contributions By Employer | $ 1,500 | $ 1,500 | $ 2,500 | $ 2,000 |
Required Contribution [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Contributions By Employer | 22 | 459 | ||
Voluntary Contribution [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Contributions By Employer | $ 2,478 | $ 1,541 |
Retirement Plans - Schedule o95
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Pension Plans [Member] | U.S. Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | $ 679 | $ 638 | $ 622 |
Interest cost | 1,115 | 1,128 | 1,155 |
Expected return on plan assets | (1,624) | (1,501) | (1,490) |
Amortization of prior service credit | (118) | (118) | (118) |
Actuarial losses (gains) and other | 37 | (95) | 1,563 |
Net periodic benefit cost | 89 | 52 | 1,732 |
Pension Plans [Member] | International Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | 97 | 83 | 40 |
Interest cost | 49 | 43 | 25 |
Expected return on plan assets | (46) | (38) | (18) |
Amortization of prior service credit | (2) | (2) | (3) |
Actuarial losses (gains) and other | (38) | 87 | (1) |
Net periodic benefit cost | 60 | 173 | 43 |
Postretirement Healthcare Plans [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | 36 | 36 | 40 |
Interest cost | 39 | 39 | 42 |
Amortization of prior service credit | (1) | ||
Actuarial losses (gains) and other | (9) | (14) | (64) |
Net periodic benefit cost | $ 65 | $ 61 | $ 18 |
Retirement Plans - Schedule o96
Retirement Plans - Schedule of Amounts Recognized in Other Comprehensive Income ("OCI") for All Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | $ 89 | $ 75 | $ 80 |
Pension Plans [Member] | U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax | 118 | 118 | |
Total recognized in OCI, Gross Amount | 118 | 118 | |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | 83 | 74 | |
Total recognized in OCI, Net of Tax Amount | 83 | 74 | |
Pension Plans [Member] | International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss and other arising during period, Gross Amount | 1 | ||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax | 2 | 2 | |
Total recognized in OCI, Gross Amount | 2 | 3 | |
Net (gain) loss and other arising during period, Net of Tax Amount | 1 | ||
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | 1 | 2 | |
Total recognized in OCI, Net of Tax Amount | 1 | 3 | |
Postretirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss and other arising during period, Gross Amount | 5 | (3) | |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax | 1 | ||
Total recognized in OCI, Gross Amount | 6 | (3) | |
Net (gain) loss and other arising during period, Net of Tax Amount | 4 | (2) | |
Other Comprehensive Income Loss Amortization Adjustment From AOCI Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax | 1 | ||
Total recognized in OCI, Net of Tax Amount | $ 5 | $ (2) |
Retirement Plans - Schedule o97
Retirement Plans - Schedule of Expected Future Benefit Payments (Details) $ in Millions | May 31, 2018USD ($) |
Pension Plans [Member] | U.S. Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 680 |
2,020 | 781 |
2,021 | 846 |
2,022 | 951 |
2,023 | 1,071 |
2024-2028 | 7,325 |
Pension Plans [Member] | International Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 48 |
2,020 | 48 |
2,021 | 54 |
2,022 | 71 |
2,023 | 79 |
2024-2028 | 428 |
Postretirement Healthcare Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 62 |
2,020 | 65 |
2,021 | 69 |
2,022 | 73 |
2,023 | 76 |
2024-2028 | $ 369 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
May 31, 2018 | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | $ 17,314 | [1] | $ 16,526 | $ 16,313 | $ 15,297 | $ 15,728 | [2] | $ 14,997 | $ 14,931 | $ 14,663 | $ 65,450 | [3] | $ 60,319 | [3] | $ 50,365 | [3] | |||||||
Depreciation and amortization | 3,095 | 2,995 | 2,631 | ||||||||||||||||||||
Operating income | 1,490 | [1] | $ 1,001 | $ 1,262 | $ 1,117 | 1,581 | [2] | $ 1,025 | $ 1,167 | $ 1,264 | 4,870 | [4] | 5,037 | [5] | 3,077 | [6] | |||||||
Segment assets | [7] | 52,330 | 48,552 | 52,330 | 48,552 | 45,959 | |||||||||||||||||
Capital expenditures | 5,663 | 5,116 | 4,818 | ||||||||||||||||||||
FedEx Express Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 36,172 | 33,824 | 25,553 | ||||||||||||||||||||
Depreciation and amortization | 1,679 | 1,662 | 1,377 | ||||||||||||||||||||
Operating income | 2,578 | [4] | 2,769 | [5] | 2,485 | [6] | |||||||||||||||||
Segment assets | [7] | 31,753 | 31,307 | 31,753 | 31,307 | 20,798 | |||||||||||||||||
Capital expenditures | 3,461 | 2,725 | 2,350 | ||||||||||||||||||||
FedEx Ground Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 18,395 | 16,503 | 15,051 | ||||||||||||||||||||
Depreciation and amortization | 681 | 627 | 556 | ||||||||||||||||||||
Operating income | 2,605 | [4] | 2,279 | [5] | 2,240 | [6] | |||||||||||||||||
Segment assets | [7] | 15,458 | 12,969 | 15,458 | 12,969 | 11,407 | |||||||||||||||||
Capital expenditures | 1,178 | 1,490 | 1,556 | ||||||||||||||||||||
FedEx Freight Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 6,812 | 6,070 | 5,825 | ||||||||||||||||||||
Depreciation and amortization | 296 | 265 | 244 | ||||||||||||||||||||
Operating income | 517 | [4] | 390 | [5] | 421 | [6] | |||||||||||||||||
Segment assets | [7] | 7,389 | 6,527 | 7,389 | 6,527 | 6,104 | |||||||||||||||||
Capital expenditures | 490 | 431 | 428 | ||||||||||||||||||||
FedEx Services Segment [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | 1,650 | 1,621 | 1,593 | ||||||||||||||||||||
Depreciation and amortization | 382 | 371 | 384 | ||||||||||||||||||||
Segment assets | [7] | 6,377 | 5,682 | 6,377 | 5,682 | 5,390 | |||||||||||||||||
Capital expenditures | 477 | 416 | 432 | ||||||||||||||||||||
Corporate, Other and Eliminations [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Revenues | [8] | 2,421 | 2,301 | 2,343 | |||||||||||||||||||
Depreciation and amortization | [8] | 57 | 70 | 70 | |||||||||||||||||||
Operating income | [8] | (830) | [4] | (401) | [5] | (2,069) | [6] | ||||||||||||||||
Segment assets | [7],[8] | $ (8,647) | $ (7,933) | (8,647) | (7,933) | 2,260 | |||||||||||||||||
Capital expenditures | $ 57 | $ 54 | $ 52 | ||||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | ||||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | ||||||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | ||||||||||||||||||||||
[4] | Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. | ||||||||||||||||||||||
[5] | Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | ||||||||||||||||||||||
[6] | Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | ||||||||||||||||||||||
[7] | Segment assets include intercompany receivables. | ||||||||||||||||||||||
[8] | Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016). |
Business Segment Information 99
Business Segment Information - Schedule of Segment Information (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
TNT express integration expenses and restructuring charges | $ 477 | $ 327 | |||
MTM retirement plans accounting adjustment | $ (10) | $ (24) | (10) | (24) | $ 1,498 |
Goodwill and other asset impairment charges | $ 380 | 380 | |||
Charges for legal reserves related to U.S. CBP pending protection matters | 39 | 39 | |||
Ground independent contractor litigation expense | $ 22 | 22 | |||
U.S. CBP notice of action involving FedEx Trade Networks settlement | 69 | ||||
Ground independent contractor litigation provision | 256 | ||||
TNT acquisition [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Transaction and integration planning expenses | 113 | ||||
Corporate, Other and Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
MTM retirement plans accounting adjustment | (10) | $ (24) | $ 1,500 | ||
TNT Express [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill and other asset impairment charges | $ 380 |
Business Segment Information100
Business Segment Information - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
May 31, 2018 | [1] | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | [2] | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | $ 17,314 | $ 16,526 | $ 16,313 | $ 15,297 | $ 15,728 | $ 14,997 | $ 14,931 | $ 14,663 | $ 65,450 | [3] | $ 60,319 | [3] | $ 50,365 | [3] | |||||||||
FedEx Express Segment [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 36,172 | 33,824 | 25,553 | ||||||||||||||||||||
FedEx Express Segment [Member] | U.S. overnight box [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 7,273 | 6,955 | 6,763 | ||||||||||||||||||||
FedEx Express Segment [Member] | U.S. overnight envelope [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 1,788 | 1,750 | 1,662 | ||||||||||||||||||||
FedEx Express Segment [Member] | U.S. deferred [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 3,738 | 3,526 | 3,379 | ||||||||||||||||||||
FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 12,799 | 12,231 | 11,804 | ||||||||||||||||||||
FedEx Express Segment [Member] | International priority [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 7,356 | 6,940 | 5,697 | ||||||||||||||||||||
FedEx Express Segment [Member] | International economy [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 3,255 | 2,876 | 2,282 | ||||||||||||||||||||
FedEx Express Segment [Member] | Total international export package revenue [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 10,611 | 9,816 | 7,979 | ||||||||||||||||||||
FedEx Express Segment [Member] | International domestic [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | [4] | 4,587 | 4,227 | 1,285 | |||||||||||||||||||
FedEx Express Segment [Member] | Total package revenue [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 27,997 | 26,274 | 21,068 | ||||||||||||||||||||
FedEx Express Segment [Member] | U.S. freight [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 2,797 | 2,527 | 2,481 | ||||||||||||||||||||
FedEx Express Segment [Member] | International priority freight [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 2,179 | 1,910 | 999 | ||||||||||||||||||||
FedEx Express Segment [Member] | International Economy Freight | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 1,916 | 1,740 | 385 | ||||||||||||||||||||
FedEx Express Segment [Member] | International Airfreight [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 368 | 355 | 126 | ||||||||||||||||||||
FedEx Express Segment [Member] | Total freight revenue [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 7,260 | 6,532 | 3,991 | ||||||||||||||||||||
FedEx Express Segment [Member] | Other [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 915 | 1,018 | 494 | ||||||||||||||||||||
FedEx Ground Segment [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 18,395 | 16,503 | 15,051 | ||||||||||||||||||||
FedEx Freight Segment [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 6,812 | 6,070 | 5,825 | ||||||||||||||||||||
FedEx Services Segment [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | 1,650 | 1,621 | 1,593 | ||||||||||||||||||||
Corporate, Other and Eliminations [Member] | |||||||||||||||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||||||||||||||
Revenues | [5] | $ 2,421 | $ 2,301 | $ 2,343 | |||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | ||||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | ||||||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | ||||||||||||||||||||||
[4] | International domestic revenues relate to our intra-country operations. | ||||||||||||||||||||||
[5] | Includes the FedEx Trade Networks operating segment and TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). |
Business Segment Information101
Business Segment Information - Schedule of Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
May 31, 2018 | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | |||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | $ 17,314 | [1] | $ 16,526 | $ 16,313 | $ 15,297 | $ 15,728 | [2] | $ 14,997 | $ 14,931 | $ 14,663 | $ 65,450 | [3] | $ 60,319 | [3] | $ 50,365 | [3] | |||||||
Assets Noncurrent | [3] | 38,989 | 35,924 | 38,989 | 35,924 | 33,970 | |||||||||||||||||
U.S. [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 43,581 | 40,269 | 38,070 | |||||||||||||||||||
Assets Noncurrent | [3] | 30,362 | 28,141 | 30,362 | 28,141 | 25,942 | |||||||||||||||||
International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 21,869 | 20,050 | 12,295 | |||||||||||||||||||
Assets Noncurrent | [3] | $ 8,627 | $ 7,783 | 8,627 | 7,783 | 8,028 | |||||||||||||||||
FedEx Express Segment [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | 36,172 | 33,824 | 25,553 | ||||||||||||||||||||
FedEx Express Segment [Member] | International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 20,417 | 18,817 | 11,083 | |||||||||||||||||||
FedEx Ground Segment [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | 18,395 | 16,503 | 15,051 | ||||||||||||||||||||
FedEx Ground Segment [Member] | International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 407 | 331 | 275 | |||||||||||||||||||
FedEx Freight Segment [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | 6,812 | 6,070 | 5,825 | ||||||||||||||||||||
FedEx Freight Segment [Member] | International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 181 | 149 | 137 | |||||||||||||||||||
FedEx Services Segment [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | 1,650 | 1,621 | 1,593 | ||||||||||||||||||||
FedEx Services Segment [Member] | International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3] | 3 | 10 | 10 | |||||||||||||||||||
Other international revenue [Member] | International [Member] | |||||||||||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||||||||||
Revenues | [3],[4] | $ 861 | $ 743 | $ 790 | |||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | ||||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | ||||||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | ||||||||||||||||||||||
[4] | Includes the FedEx Trade Networks operating segment and TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016). |
Supplemental Cash Flow Infor102
Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest (net of capitalized interest) | $ 524 | $ 484 | $ 321 |
Income taxes | 760 | 397 | 996 |
Income tax refunds received | (571) | (20) | (5) |
Cash tax payments, net | $ 189 | $ 377 | $ 991 |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | May 31, 2018USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,019 | $ 2,428 | |
2,020 | 2,614 | |
2,021 | 1,671 | |
2,022 | 1,644 | |
2,023 | 813 | |
Thereafter | 3,144 | |
Total | 12,314 | |
Aircraft And Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,019 | 1,534 | |
2,020 | 1,922 | |
2,021 | 1,255 | |
2,022 | 1,359 | |
2,023 | 628 | |
Thereafter | 2,653 | |
Total | 9,351 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2,019 | 894 | [1] |
2,020 | 692 | [1] |
2,021 | 416 | [1] |
2,022 | 285 | [1] |
2,023 | 185 | [1] |
Thereafter | 491 | [1] |
Total | $ 2,963 | [1] |
[1] | Primarily equipment and advertising contracts. |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Billions | Jun. 18, 2018air-craft | May 31, 2018USD ($)air-craft |
Other Aircraft Commitments Disclosure [Abstract] | ||
Boeing 767F Conditional Aircraft Commitments | 4 | |
Boeing 777F Conditional Aircraft Commitments | 3 | |
Deposit and Progress Payments | $ | $ 1.2 | |
Cessna SkyCourier 408 [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Number of aircraft agreed to purchase | 50 | |
Additional maximum number of aircraft, options to purchase | 50 | |
Aircraft expected to be delivered, earliest fiscal year | 2,021 | |
Aircraft expected to be delivered, latest fiscal year | 2,024 | |
ATR 72-600F [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Number of aircraft agreed to purchase | 30 | |
Additional maximum number of aircraft, options to purchase | 20 | |
Aircraft expected to be delivered, earliest fiscal year | 2,021 | |
Aircraft expected to be delivered, latest fiscal year | 2,026 | |
B777F Aircraft from 2021 to 2020 [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Aircraft expected to be delivered, earliest fiscal year | 2,020 | |
Aircraft expected to be delivered, latest fiscal year | 2,021 | |
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments | 2 | |
B777F Aircraft from 2021 to 2019 [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Aircraft expected to be delivered, earliest fiscal year | 2,019 | |
Aircraft expected to be delivered, latest fiscal year | 2,021 | |
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments | 1 | |
B777F Aircraft from 2022 to 2020 [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Aircraft expected to be delivered, earliest fiscal year | 2,020 | |
Aircraft expected to be delivered, latest fiscal year | 2,022 | |
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments | 1 | |
Additional B777F [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Boeing 777F Conditional Aircraft Commitments | 6 | |
Number of aircraft agreed to purchase | 12 | |
Aircraft expected to be delivered, earliest fiscal year | 2,021 | |
Aircraft expected to be delivered, latest fiscal year | 2,025 | |
Additional B767F [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Boeing 767F Conditional Aircraft Commitments | 1 | |
Number of aircraft agreed to purchase | 12 | |
Aircraft expected to be delivered, earliest fiscal year | 2,020 | |
Aircraft expected to be delivered, latest fiscal year | 2,022 | |
B777F Aircraft from 2020 to 2019 [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Aircraft expected to be delivered, earliest fiscal year | 2,019 | |
Aircraft expected to be delivered, latest fiscal year | 2,020 | |
Accelerate Delivery of Boeing 777F Conditional Aircraft Commitments | 1 | |
B767F Aircraft from 2020 to 2019 [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Aircraft expected to be delivered, earliest fiscal year | 2,019 | |
Aircraft expected to be delivered, latest fiscal year | 2,020 | |
Accelerate delivery of Boeing 767F conditional aircraft commitments | 1 | |
B777F [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Additional maximum number of aircraft, options to purchase | 14 | |
Aircraft expected to be delivered, earliest fiscal year | 2,019 | |
Aircraft expected to be delivered, latest fiscal year | 2,025 | |
Number of aircrafts scheduled for delivery | 24 | |
Number of aircrafts delivered | 1 | |
Number of conditional aircraft commitments | 6 | |
Number of non conditional aircrafts | 3 | |
Number of aircrafts rescheduled delivery | 11 | |
Number of aircraft total options to purchase | 25 | |
Aircraft expected to be delivered, through fiscal year | 2,028 | |
B767F [Member] | Subsequent Event [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Additional maximum number of aircraft, options to purchase | 6 | |
Aircraft expected to be delivered, earliest fiscal year | 2,019 | |
Aircraft expected to be delivered, latest fiscal year | 2,023 | |
Number of aircrafts scheduled for delivery | 69 | |
Number of aircrafts delivered | 2 | |
Number of conditional aircraft commitments | 5 | |
Number of aircraft total options to purchase | 50 | |
Aircraft expected to be delivered, through fiscal year | 2,026 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 12 Months Ended |
May 31, 2018air-craft | |
Schedule of Aircraft Commitments [Line Items] | |
2,019 | 18 |
2,020 | 22 |
2,021 | 27 |
2,022 | 31 |
2,023 | 24 |
Thereafter | 27 |
Total | 149 |
Cessna SkyCourier 408 [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,021 | 12 |
2,022 | 12 |
2,023 | 12 |
Thereafter | 14 |
Total | 50 |
ATR 72-600F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,021 | 5 |
2,022 | 6 |
2,023 | 6 |
Thereafter | 13 |
Total | 30 |
B767F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,019 | 15 |
2,020 | 16 |
2,021 | 10 |
2,022 | 10 |
2,023 | 6 |
Total | 57 |
B777F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2,019 | 3 |
2,020 | 6 |
2,022 | 3 |
Total | 12 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2017 | May 31, 2017 | May 31, 2017 | |
Loss Contingencies [Line Items] | |||
Litigation settlement expense | $ 22 | $ 22 | |
U.S. Customs and Border Protection ("CBP") [Member] | Expected Litigation Loss [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency amount | $ 39.3 | $ 39.3 | |
Payments for legal settlements | $ 46.5 | ||
Litigation settlement expense | $ 7.2 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
May 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Ownership Interest | 10.00% |
Summary of Quarterly Operati108
Summary of Quarterly Operating Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2018 | [1] | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | [2] | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
Revenues | $ 17,314 | $ 16,526 | $ 16,313 | $ 15,297 | $ 15,728 | $ 14,997 | $ 14,931 | $ 14,663 | $ 65,450 | [3] | $ 60,319 | [3] | $ 50,365 | [3] | ||||||||
Operating income | 1,490 | 1,001 | 1,262 | 1,117 | 1,581 | 1,025 | 1,167 | 1,264 | 4,870 | [4] | 5,037 | [5] | 3,077 | [6] | ||||||||
Net income | $ 1,127 | [7] | $ 2,074 | [7] | $ 775 | [7] | $ 596 | [7] | $ 1,020 | $ 562 | $ 700 | $ 715 | $ 4,572 | $ 2,997 | $ 1,820 | |||||||
Basic earnings per common share | $ 4.23 | [8] | $ 7.74 | [8] | $ 2.89 | [8] | $ 2.22 | [8] | $ 3.81 | [8] | $ 2.11 | [8] | $ 2.63 | [8] | $ 2.69 | [8] | $ 17.08 | $ 11.24 | $ 6.59 | |||
Diluted earnings per common share | $ 4.15 | [8] | $ 7.59 | [8] | $ 2.84 | [8] | $ 2.19 | [8] | $ 3.75 | [8] | $ 2.07 | [8] | $ 2.59 | [8] | $ 2.65 | [8] | $ 16.79 | $ 11.07 | $ 6.51 | |||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | |||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | |||||||||||||||||||||
[4] | Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. | |||||||||||||||||||||
[5] | Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[6] | Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||||||||||||||||||
[7] | The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans. | |||||||||||||||||||||
[8] | The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods. |
Summary of Quarterly Operati109
Summary of Quarterly Operating Results (Unaudited) (Parenthetical) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||
Retirement plans mark-to-market adjustment | $ (10) | $ (24) | $ (10) | $ (24) | $ 1,498 | ||||||||||
Goodwill and other asset impairment charges | 380 | 380 | |||||||||||||
TNT integration expenses | 136 | $ 106 | $ 122 | $ 112 | 124 | $ 78 | $ 58 | $ 68 | |||||||
Tax benefit from corporate structuring transactions | 255 | (255) | [1] | (68) | [1] | $ (76) | [1] | ||||||||
Tax benefits from foreign tax credits | 133 | 12 | $ 80 | 225 | |||||||||||
Income tax benefit related to lower statutory Income tax rate on earnings | $ 100 | 165 | 265 | ||||||||||||
Provisional benefit related to remeasurement of net U.S. deferred tax liability | $ (1,150) | (1,150) | (1,150) | ||||||||||||
Charges for legal reserves related to U.S. CBP pending protection matters | 39 | 39 | |||||||||||||
Ground independent contractor litigation expense | $ 22 | 22 | |||||||||||||
U.S. Plans [Member] | |||||||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||
Additional provisional amount recognized one time benefit | 204 | 204 | |||||||||||||
Company contributions | $ 1,500 | $ 1,500 | $ 2,500 | $ 2,000 | |||||||||||
[1] | The 2018 and 2017 net benefits consist of foreign deferred tax benefits of $434 million and $94 million, respectively, which were partially offset by U.S. deferred tax expenses of $179 million and $26 million, respectively. |
Condensed Consolidating Fina110
Condensed Consolidating Financial Statements - Additional Information (Details) $ in Billions | May 31, 2018USD ($) |
Guarantor Obligations [Abstract] | |
Debt Guarantee | $ 16.4 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | |
CURRENT ASSETS | |||||
Cash and cash equivalents | $ 3,265 | $ 3,969 | $ 3,534 | $ 3,763 | |
Receivables, less allowances | 8,481 | 7,599 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 1,595 | 1,060 | |||
Total current assets | 13,341 | 12,628 | |||
PROPERTY AND EQUIPMENT, AT COST | 55,121 | 50,626 | |||
Less accumulated depreciation and amortization | 26,967 | 24,645 | |||
Net property and equipment | 28,154 | 25,981 | |||
GOODWILL | 6,973 | 7,154 | 6,747 | ||
OTHER ASSETS | 3,862 | 2,789 | |||
ASSETS | [1] | 52,330 | 48,552 | 45,959 | |
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 1,342 | 22 | |||
Accrued salaries and employee benefits | 2,177 | 1,914 | |||
Accounts payable | 2,977 | 2,752 | |||
Accrued expenses | 3,131 | 3,230 | |||
Total current liabilities | 9,627 | 7,918 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 15,243 | 14,909 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 2,867 | 2,485 | |||
Other liabilities | 5,177 | 7,167 | |||
Total other long-term liabilities | 8,044 | 9,652 | |||
STOCKHOLDERS’ INVESTMENT | 19,416 | 16,073 | 13,784 | 14,993 | |
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 52,330 | 48,552 | |||
Consolidation Eliminations [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | (15) | (47) | (43) | (78) | |
Receivables, less allowances | (78) | (61) | |||
Total current assets | (93) | (108) | |||
INTERCOMPANY RECEIVABLE | (2,411) | (4,128) | |||
INVESTMENT IN SUBSIDIARIES | (37,452) | (30,348) | |||
OTHER ASSETS | 104 | (3,225) | |||
ASSETS | (39,852) | (37,809) | |||
CURRENT LIABILITIES | |||||
Accounts payable | (90) | (108) | |||
Accrued expenses | (3) | ||||
Total current liabilities | (93) | (108) | |||
INTERCOMPANY PAYABLE | (2,411) | (4,128) | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 104 | (3,225) | |||
Total other long-term liabilities | 104 | (3,225) | |||
STOCKHOLDERS’ INVESTMENT | (37,452) | (30,348) | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | (39,852) | (37,809) | |||
Parent Company [Member] | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 1,485 | 1,884 | 1,974 | 2,383 | |
Receivables, less allowances | 3 | 3 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 425 | 25 | |||
Total current assets | 1,913 | 1,912 | |||
PROPERTY AND EQUIPMENT, AT COST | 21 | 22 | |||
Less accumulated depreciation and amortization | 17 | 18 | |||
Net property and equipment | 4 | 4 | |||
INTERCOMPANY RECEIVABLE | 1,487 | 1,521 | |||
INVESTMENT IN SUBSIDIARIES | 33,370 | 27,712 | |||
OTHER ASSETS | 75 | 3,494 | |||
ASSETS | 36,849 | 34,643 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 1,332 | ||||
Accrued salaries and employee benefits | 65 | 72 | |||
Accounts payable | 16 | 10 | |||
Accrued expenses | 460 | 991 | |||
Total current liabilities | 1,873 | 1,073 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 14,942 | 14,641 | |||
OTHER LONG-TERM LIABILITIES | |||||
Other liabilities | 619 | 2,856 | |||
Total other long-term liabilities | 619 | 2,856 | |||
STOCKHOLDERS’ INVESTMENT | 19,415 | 16,073 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 36,849 | 34,643 | |||
Guarantor Subsidiaries [Member[ | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 257 | 325 | 326 | 487 | |
Receivables, less allowances | 4,970 | 4,729 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 878 | 787 | |||
Total current assets | 6,105 | 5,841 | |||
PROPERTY AND EQUIPMENT, AT COST | 51,232 | 47,201 | |||
Less accumulated depreciation and amortization | 25,111 | 23,211 | |||
Net property and equipment | 26,121 | 23,990 | |||
INTERCOMPANY RECEIVABLE | 924 | 2,607 | |||
GOODWILL | 1,709 | 1,571 | |||
INVESTMENT IN SUBSIDIARIES | 4,082 | 2,636 | |||
OTHER ASSETS | 1,854 | 1,271 | |||
ASSETS | 40,795 | 37,916 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 1 | 9 | |||
Accrued salaries and employee benefits | 1,506 | 1,335 | |||
Accounts payable | 1,332 | 1,411 | |||
Accrued expenses | 1,778 | 1,522 | |||
Total current liabilities | 4,617 | 4,277 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 288 | 244 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 2,626 | 5,472 | |||
Other liabilities | 3,432 | 3,448 | |||
Total other long-term liabilities | 6,058 | 8,920 | |||
STOCKHOLDERS’ INVESTMENT | 29,832 | 24,475 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | 40,795 | 37,916 | |||
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 1,538 | 1,807 | $ 1,277 | $ 971 | |
Receivables, less allowances | 3,586 | 2,928 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 292 | 248 | |||
Total current assets | 5,416 | 4,983 | |||
PROPERTY AND EQUIPMENT, AT COST | 3,868 | 3,403 | |||
Less accumulated depreciation and amortization | 1,839 | 1,416 | |||
Net property and equipment | 2,029 | 1,987 | |||
GOODWILL | 5,264 | 5,583 | |||
OTHER ASSETS | 1,829 | 1,249 | |||
ASSETS | 14,538 | 13,802 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 9 | 13 | |||
Accrued salaries and employee benefits | 606 | 507 | |||
Accounts payable | 1,719 | 1,439 | |||
Accrued expenses | 896 | 717 | |||
Total current liabilities | 3,230 | 2,676 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 13 | 24 | |||
INTERCOMPANY PAYABLE | 2,411 | 4,128 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 137 | 238 | |||
Other liabilities | 1,126 | 863 | |||
Total other long-term liabilities | 1,263 | 1,101 | |||
STOCKHOLDERS’ INVESTMENT | 7,621 | 5,873 | |||
LIABILITIES AND STOCKHOLDERS' INVESTMENT | $ 14,538 | $ 13,802 | |||
[1] | Segment assets include intercompany receivables. |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
May 31, 2018 | Feb. 28, 2018 | [1] | Nov. 30, 2017 | [1] | Aug. 31, 2017 | [1] | May 31, 2017 | Feb. 28, 2017 | [2] | Nov. 30, 2016 | [2] | Aug. 31, 2016 | [2] | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | $ 17,314 | [1] | $ 16,526 | $ 16,313 | $ 15,297 | $ 15,728 | [2] | $ 14,997 | $ 14,931 | $ 14,663 | $ 65,450 | [3] | $ 60,319 | [3] | $ 50,365 | [3] | ||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 23,207 | 21,542 | 18,581 | |||||||||||||||||||
Purchased transportation | 15,101 | 13,630 | 9,966 | |||||||||||||||||||
Rentals and landing fees | 3,361 | 3,240 | 2,854 | |||||||||||||||||||
Depreciation and amortization | 3,095 | 2,995 | 2,631 | |||||||||||||||||||
Fuel | 3,374 | 2,773 | 2,399 | |||||||||||||||||||
Maintenance and repairs | 2,622 | 2,374 | 2,108 | |||||||||||||||||||
Goodwill and other asset impairment charges | 380 | 380 | ||||||||||||||||||||
Retirement plans mark-to-market adjustment | (10) | (24) | (10) | (24) | 1,498 | |||||||||||||||||
Other | 9,450 | 8,752 | 7,251 | |||||||||||||||||||
OPERATING EXPENSES | 60,580 | 55,282 | 47,288 | |||||||||||||||||||
OPERATING INCOME | 1,490 | [1] | 1,001 | 1,262 | 1,117 | 1,581 | [2] | 1,025 | 1,167 | 1,264 | 4,870 | [4] | 5,037 | [5] | 3,077 | [6] | ||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Interest, net | (510) | (479) | (315) | |||||||||||||||||||
Other, net | (7) | 21 | (22) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 4,353 | 4,579 | 2,740 | |||||||||||||||||||
Provision for income taxes (benefit) | (219) | 1,582 | 920 | |||||||||||||||||||
NET INCOME | $ 1,127 | [1],[7] | $ 2,074 | [7] | $ 775 | [7] | $ 596 | [7] | $ 1,020 | [2] | $ 562 | $ 700 | $ 715 | 4,572 | 2,997 | 1,820 | ||||||
COMPREHENSIVE INCOME | 4,409 | 2,751 | 1,479 | |||||||||||||||||||
Consolidation Eliminations [Member] | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | (407) | (302) | (325) | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Purchased transportation | (224) | (125) | (134) | |||||||||||||||||||
Rentals and landing fees | (7) | (6) | (6) | |||||||||||||||||||
Other | (176) | (171) | (185) | |||||||||||||||||||
OPERATING EXPENSES | (407) | (302) | (325) | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | (4,634) | (3,065) | (2,099) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | (4,634) | (3,065) | (2,099) | |||||||||||||||||||
NET INCOME | (4,634) | (3,065) | (2,099) | |||||||||||||||||||
COMPREHENSIVE INCOME | (4,634) | (3,065) | (2,099) | |||||||||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 149 | 123 | 119 | |||||||||||||||||||
Rentals and landing fees | 5 | 5 | 5 | |||||||||||||||||||
Depreciation and amortization | 1 | 1 | 1 | |||||||||||||||||||
Maintenance and repairs | 1 | 1 | 1 | |||||||||||||||||||
Intercompany charges, net | (437) | (434) | (645) | |||||||||||||||||||
Other | 281 | 304 | 519 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 4,572 | 2,997 | 1,820 | |||||||||||||||||||
Interest, net | (541) | (507) | (355) | |||||||||||||||||||
Intercompany charges, net | 544 | 508 | 369 | |||||||||||||||||||
Other, net | (3) | (1) | (14) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 4,572 | 2,997 | 1,820 | |||||||||||||||||||
NET INCOME | 4,572 | 2,997 | 1,820 | |||||||||||||||||||
COMPREHENSIVE INCOME | 4,489 | 2,922 | 1,746 | |||||||||||||||||||
Guarantor Subsidiaries [Member[ | Reportable Legal Entities [Member] | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | 48,601 | 44,823 | 42,143 | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 17,814 | 16,696 | 15,880 | |||||||||||||||||||
Purchased transportation | 9,134 | 8,260 | 7,380 | |||||||||||||||||||
Rentals and landing fees | 2,587 | 2,517 | 2,484 | |||||||||||||||||||
Depreciation and amortization | 2,644 | 2,538 | 2,399 | |||||||||||||||||||
Fuel | 3,077 | 2,476 | 2,324 | |||||||||||||||||||
Maintenance and repairs | 2,294 | 2,086 | 1,954 | |||||||||||||||||||
Retirement plans mark-to-market adjustment | 19 | (75) | 1,414 | |||||||||||||||||||
Intercompany charges, net | (120) | 182 | 425 | |||||||||||||||||||
Other | 6,227 | 5,734 | 5,274 | |||||||||||||||||||
OPERATING EXPENSES | 43,676 | 40,414 | 39,534 | |||||||||||||||||||
OPERATING INCOME | 4,925 | 4,409 | 2,609 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 62 | 68 | 279 | |||||||||||||||||||
Interest, net | 46 | 27 | 27 | |||||||||||||||||||
Intercompany charges, net | (291) | (296) | (354) | |||||||||||||||||||
Other, net | (120) | (134) | (14) | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 4,622 | 4,074 | 2,547 | |||||||||||||||||||
Provision for income taxes (benefit) | 309 | 1,439 | 818 | |||||||||||||||||||
NET INCOME | 4,313 | 2,635 | 1,729 | |||||||||||||||||||
COMPREHENSIVE INCOME | 4,263 | 2,580 | 1,704 | |||||||||||||||||||
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||||||||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||||||||||||
REVENUES | 17,256 | 15,798 | 8,547 | |||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||
Salaries and employee benefits | 5,244 | 4,723 | 2,582 | |||||||||||||||||||
Purchased transportation | 6,191 | 5,495 | 2,720 | |||||||||||||||||||
Rentals and landing fees | 776 | 724 | 371 | |||||||||||||||||||
Depreciation and amortization | 450 | 456 | 231 | |||||||||||||||||||
Fuel | 297 | 297 | 75 | |||||||||||||||||||
Maintenance and repairs | 327 | 287 | 153 | |||||||||||||||||||
Goodwill and other asset impairment charges | 380 | |||||||||||||||||||||
Retirement plans mark-to-market adjustment | (29) | 51 | 84 | |||||||||||||||||||
Intercompany charges, net | 557 | 252 | 220 | |||||||||||||||||||
Other | 3,118 | 2,885 | 1,643 | |||||||||||||||||||
OPERATING EXPENSES | 17,311 | 15,170 | 8,079 | |||||||||||||||||||
OPERATING INCOME | (55) | 628 | 468 | |||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||
Interest, net | (15) | 1 | 13 | |||||||||||||||||||
Intercompany charges, net | (253) | (212) | (15) | |||||||||||||||||||
Other, net | 116 | 156 | 6 | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | (207) | 573 | 472 | |||||||||||||||||||
Provision for income taxes (benefit) | (528) | 143 | 102 | |||||||||||||||||||
NET INCOME | 321 | 430 | 370 | |||||||||||||||||||
COMPREHENSIVE INCOME | $ 291 | $ 314 | $ 128 | |||||||||||||||||||
[1] | The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a gain of $10 million related to the annual retirement plans MTM adjustment. | |||||||||||||||||||||
[2] | The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain. | |||||||||||||||||||||
[3] | International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally. | |||||||||||||||||||||
[4] | Includes TNT Express integration expenses and restructuring charges of $477 million and a gain of $10 million associated with our annual MTM retirement plans accounting adjustment. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million. | |||||||||||||||||||||
[5] | Includes TNT Express integration expenses and restructuring charges of $327 million and a gain of $24 million associated with our MTM retirement plans accounting. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information. | |||||||||||||||||||||
[6] | Includes a $1.5 billion loss associated with our MTM retirement plans accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action involving FedEx Trade Networks in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million. | |||||||||||||||||||||
[7] | The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans. |
Condensed Consolidating Stat113
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2016 | |
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ 4,674 | $ 4,930 | $ 5,708 |
INVESTING ACTIVITIES | |||
Capital expenditures | (5,663) | (5,116) | (4,818) |
Business acquisitions, net of cash acquired | (179) | (4,618) | |
Proceeds from sale of business | 123 | ||
Proceeds from asset dispositions and other | 42 | 135 | (10) |
Cash used in investing activities | (5,677) | (4,981) | (9,446) |
FINANCING ACTIVITIES | |||
Principal payments on debt | (38) | (82) | (41) |
Proceeds from debt issuances | 1,480 | 1,190 | 6,519 |
Proceeds from stock issuances | 327 | 337 | 183 |
Dividends paid | (535) | (426) | (277) |
Purchase of treasury stock | (1,017) | (509) | (2,722) |
Other, net | 10 | 18 | (51) |
Cash provided by financing activities | 227 | 528 | 3,611 |
Effect of exchange rate changes on cash | 72 | (42) | (102) |
Net (decrease) increase in cash and cash equivalents | (704) | 435 | (229) |
Cash and cash equivalents at beginning of period | 3,969 | 3,534 | 3,763 |
Cash and cash equivalents at end of period | 3,265 | 3,969 | 3,534 |
Consolidation Eliminations [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 32 | (4) | 35 |
FINANCING ACTIVITIES | |||
Net (decrease) increase in cash and cash equivalents | 32 | (4) | 35 |
Cash and cash equivalents at beginning of period | (47) | (43) | (78) |
Cash and cash equivalents at end of period | (15) | (47) | (43) |
Parent Company [Member] | Reportable Legal Entities [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (2,837) | (1,155) | (831) |
INVESTING ACTIVITIES | |||
Capital expenditures | (1) | ||
Proceeds from asset dispositions and other | (6) | 34 | (55) |
Cash used in investing activities | (7) | 34 | (55) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | 1,529 | 421 | 1,629 |
Payment on loan between subsidiaries | 663 | 41 | (4,805) |
Proceeds from debt issuances | 1,480 | 1,190 | 6,519 |
Proceeds from stock issuances | 327 | 337 | 183 |
Dividends paid | (535) | (426) | (277) |
Purchase of treasury stock | (1,017) | (509) | (2,722) |
Other, net | 3 | (12) | (51) |
Cash provided by financing activities | 2,450 | 1,042 | 476 |
Effect of exchange rate changes on cash | (5) | (11) | 1 |
Net (decrease) increase in cash and cash equivalents | (399) | (90) | (409) |
Cash and cash equivalents at beginning of period | 1,884 | 1,974 | 2,383 |
Cash and cash equivalents at end of period | 1,485 | 1,884 | 1,974 |
Guarantor Subsidiaries [Member[ | Reportable Legal Entities [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 6,767 | 5,254 | 5,932 |
INVESTING ACTIVITIES | |||
Capital expenditures | (5,299) | (4,694) | (4,617) |
Business acquisitions, net of cash acquired | (44) | ||
Proceeds from asset dispositions and other | 33 | 25 | 33 |
Cash used in investing activities | (5,310) | (4,669) | (4,584) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | (1,612) | (518) | (1,549) |
Payment on loan between subsidiaries | (15) | 109 | |
Intercompany dividends | 98 | 1 | 20 |
Principal payments on debt | (22) | (55) | (19) |
Other, net | 7 | (13) | (48) |
Cash provided by financing activities | (1,529) | (600) | (1,487) |
Effect of exchange rate changes on cash | 4 | 14 | (22) |
Net (decrease) increase in cash and cash equivalents | (68) | (1) | (161) |
Cash and cash equivalents at beginning of period | 325 | 326 | 487 |
Cash and cash equivalents at end of period | 257 | 325 | 326 |
Non Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 712 | 835 | 572 |
INVESTING ACTIVITIES | |||
Capital expenditures | (363) | (422) | (201) |
Business acquisitions, net of cash acquired | (135) | (4,618) | |
Proceeds from sale of business | 123 | ||
Proceeds from asset dispositions and other | 15 | 76 | 12 |
Cash used in investing activities | (360) | (346) | (4,807) |
FINANCING ACTIVITIES | |||
Net transfers from (to) Parent | 83 | 97 | (80) |
Payment on loan between subsidiaries | (663) | (26) | 4,696 |
Intercompany dividends | (98) | (1) | (20) |
Principal payments on debt | (16) | (27) | (22) |
Other, net | 43 | 48 | |
Cash provided by financing activities | (694) | 86 | 4,622 |
Effect of exchange rate changes on cash | 73 | (45) | (81) |
Net (decrease) increase in cash and cash equivalents | (269) | 530 | 306 |
Cash and cash equivalents at beginning of period | 1,807 | 1,277 | 971 |
Cash and cash equivalents at end of period | $ 1,538 | $ 1,807 | $ 1,277 |
Valuation and Qualifying Acc114
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2016 | ||
Allowance For Doubtful Accounts [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | $ 115 | $ 73 | $ 86 | |
Charged To Expenses | 246 | 136 | 121 | |
Deductions | [1] | 162 | 94 | 134 |
Valuation Allowances And Reserves Ending Balance | 199 | 115 | 73 | |
Allowance For Revenue Adjustments [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | 137 | 105 | 99 | |
Charged To Other Accounts | [2] | 1,173 | 941 | 692 |
Deductions | [3] | 1,108 | 909 | 686 |
Valuation Allowances And Reserves Ending Balance | 202 | 137 | 105 | |
Inventory Valuation Allowance [Member] | ||||
Movement In Valuation Allowances And Reserves Roll Forward | ||||
Valuation Allowances And Reserves Beginning Balance | 237 | 218 | 207 | |
Charged To Expenses | 27 | 26 | 26 | |
Charged To Other Accounts | 6 | |||
Deductions | 2 | 7 | 15 | |
Valuation Allowances And Reserves Ending Balance | $ 268 | $ 237 | $ 218 | |
[1] | Uncollectible accounts written off, net of recoveries, and other adjustments. | |||
[2] | Principally charged against revenue. | |||
[3] | Service failures, rebills and other. |