Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 31, 2019 | Sep. 13, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FEDEX CORP | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-15829 | |
Entity Tax Identification Number | 621721435 | |
Entity Address, Address Line One | 942 South Shady Grove Road | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | Tennessee | |
Entity Address, Postal Zip Code | 38120 | |
City Area Code | 901 | |
Local Phone Number | 818-7500 | |
Entity Central Index Key | 0001048911 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 260,910,309 | |
Trading Symbol | FDX |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 31, 2019 | May 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,389 | $ 2,319 |
Receivables, less allowances of $304 and $300 | 9,312 | 9,116 |
Spare parts, supplies and fuel, less allowances of $337 and $335 | 574 | 553 |
Prepaid expenses and other | 742 | 1,098 |
Total current assets | 13,017 | 13,086 |
PROPERTY AND EQUIPMENT, AT COST | 61,436 | 59,511 |
Less accumulated depreciation and amortization | 29,826 | 29,082 |
Net property and equipment | 31,610 | 30,429 |
OTHER LONG-TERM ASSETS | ||
Operating lease right-of-use assets | 13,819 | |
Goodwill | 6,821 | 6,884 |
Other assets | 3,185 | 4,004 |
Total other long-term assets | 23,825 | 10,888 |
ASSETS | 68,452 | 54,403 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 35 | 964 |
Accrued salaries and employee benefits | 1,522 | 1,741 |
Accounts payable | 3,179 | 3,030 |
Operating lease liabilities | 1,896 | |
Accrued expenses | 3,303 | 3,278 |
Total current liabilities | 9,935 | 9,013 |
LONG-TERM DEBT, LESS CURRENT PORTION | 18,726 | 16,617 |
OTHER LONG-TERM LIABILITIES | ||
Deferred income taxes | 2,953 | 2,821 |
Pension, postretirement healthcare and other benefit obligations | 4,132 | 5,095 |
Self-insurance accruals | 1,924 | 1,899 |
Operating lease liabilities | 12,137 | |
Deferred lease obligations | 531 | |
Other liabilities | 479 | 670 |
Total other long-term liabilities | 21,625 | 11,016 |
COMMITMENTS AND CONTINGENCIES | ||
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of August 31, 2019 and May 31, 2019 | 32 | 32 |
Additional paid-in capital | 3,257 | 3,231 |
Retained earnings | 25,048 | 24,648 |
Accumulated other comprehensive loss | (918) | (865) |
Treasury stock, at cost | (9,253) | (9,289) |
Total common stockholders’ investment | 18,166 | 17,757 |
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ 68,452 | $ 54,403 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Aug. 31, 2019 | May 31, 2019 |
CURRENT ASSETS | ||
Allowances for receivables | $ 304 | $ 300 |
Allowances for spare parts, supplies and fuel | $ 337 | $ 335 |
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 318,000,000 | 318,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||
REVENUES | $ 17,048 | $ 17,052 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 6,087 | 6,260 |
Purchased transportation | $ 4,028 | $ 3,967 |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ 920 | $ 823 |
Depreciation and amortization | 879 | 808 |
Fuel | 870 | 986 |
Maintenance and repairs | 768 | 735 |
Other | 2,519 | 2,402 |
OPERATING EXPENSES | 16,071 | 15,981 |
OPERATING INCOME | 977 | 1,071 |
OTHER INCOME (EXPENSE): | ||
Interest, net | (137) | (127) |
Other retirement plans income | 168 | 158 |
Other, net | (12) | (1) |
OTHER INCOME (EXPENSE) | 19 | 30 |
INCOME BEFORE INCOME TAXES | 996 | 1,101 |
PROVISION FOR INCOME TAXES | 251 | 266 |
NET INCOME | $ 745 | $ 835 |
EARNINGS PER COMMON SHARE: | ||
Basic | $ 2.86 | $ 3.15 |
Diluted | 2.84 | 3.10 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 1.30 | $ 1.30 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
NET INCOME | $ 745 | $ 835 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustments, net of tax benefit of $3 in 2019 and $24 in 2018 | (83) | (162) |
Amortization of prior service credit, net of tax benefit of $6 in 2019 and $7 in 2018 | (21) | (23) |
Other comprehensive income (loss) | (104) | (185) |
COMPREHENSIVE INCOME | $ 641 | $ 650 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Other Comprehensive Income, Tax Amounts | ||
Foreign currency translation adjustments, tax benefit | $ 3 | $ 24 |
Amortization of prior service credit, tax benefit | $ 6 | $ 7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Operating Activities: | ||
Net income | $ 745 | $ 835 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 879 | 808 |
Provision for uncollectible accounts | 105 | 82 |
Stock-based compensation | 67 | 68 |
Deferred income taxes and other noncash items | 694 | 23 |
Changes in assets and liabilities: | ||
Receivables | (267) | (380) |
Other assets | (118) | (120) |
Accounts payable and other liabilities | (1,537) | (584) |
Other, net | (3) | (31) |
Cash provided by operating activities | 565 | 701 |
Investing Activities: | ||
Capital expenditures | (1,418) | (1,179) |
Proceeds from asset dispositions and other | (1) | 78 |
Cash used in investing activities | (1,419) | (1,101) |
Financing Activities: | ||
Proceeds from short-term borrowings, net | 299 | |
Principal payments on debt | (985) | (2) |
Proceeds from debt issuances | 2,093 | |
Proceeds from stock issuances | 12 | 25 |
Dividends paid | (170) | (173) |
Purchase of treasury stock | (3) | (625) |
Other, net | (5) | 4 |
Cash provided by (used in) financing activities | 942 | (472) |
Effect of exchange rate changes on cash | (18) | (24) |
Net increase (decrease) in cash and cash equivalents | 70 | (896) |
Cash and cash equivalents at beginning of period | 2,319 | 3,265 |
Cash and cash equivalents at end of period | $ 2,389 | $ 2,369 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Common Stockholders' Investment - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Beginning Balance | $ 17,757 | ||
Net income | 745 | $ 835 | |
Other comprehensive income, net of tax (expense)/benefit | (104) | (185) | |
Ending Balance | 18,166 | 19,173 | |
Common Stock | |||
Beginning Balance | 32 | 32 | |
Ending Balance | 32 | 32 | |
Additional Paid-In Capital | |||
Beginning Balance | 3,231 | 3,117 | |
Employee incentive plans and other | 26 | 37 | |
Ending Balance | 3,257 | 3,154 | |
Retained Earnings | |||
Beginning Balance | 24,648 | 24,823 | |
Net income | 745 | 835 | |
Cash dividends declared | (339) | (344) | |
Employee incentive plans and other | (2) | 1 | |
Ending Balance | 25,048 | 25,315 | |
Retained Earnings | Accounting Standards Update 2016-02 and 2018-02 | |||
Adoption of new accounting standards on June 1, 2019 | [1] | (4) | |
Accumulated Other Comprehensive Income | |||
Beginning Balance | (865) | (578) | |
Other comprehensive income, net of tax (expense)/benefit | (104) | (185) | |
Ending Balance | (918) | (763) | |
Accumulated Other Comprehensive Income | Accounting Standards Update 2018-02 | |||
Reclassification to retained earnings due to the adoption of a new accounting standard on June 1, 2019 | [2] | 51 | |
Treasury Stock | |||
Beginning Balance | (9,289) | (7,978) | |
Purchase of treasury stock | (3) | (625) | |
Employee incentive plans and other | 39 | 38 | |
Ending Balance | $ (9,253) | $ (8,565) | |
[1] | Relates to the adoption of Accounting Standards Update (“ASU”) 2016-02 and ASU 2018-02. | ||
[2] | Relates to the adoption of ASU 2018-02. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends declared, per share | $ 1.30 | $ 1.30 |
Other comprehensive income, tax (expense)/benefit | $ 9 | $ 31 |
Purchase of treasury stock | 20,000 | 2,600,000 |
Employee incentive plans and other, shares issued | 300,000 | 300,000 |
General
General | 3 Months Ended |
Aug. 31, 2019 | |
General [Abstract] | |
General | (1) General SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the year ended May 31, 2019 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of August 31, 2019, and the results of our operations for the three-month periods ended August 31, 2019 and 2018, cash flows for the three-month periods ended August 31, 2019 and 2018, and changes in common stockholders’ investment for the three-month periods ended August 31, 2019 and 2018. Operating results for the three-month period ended August 31, 2019 are not necessarily indicative of the results that may be expected for the year ending May 31, 2020. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2020 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. RECLASSIFICATIONS . Certain reclassifications have been made to the prior years’ condensed consolidated financial statements to conform to the current year presentation. REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Gross contract assets related to in-transit packages totaled $466 million and $533 million at August 31, 2019 and May 31, 2019, respectively. Contract assets net of deferred unearned revenue were $338 million and $364 million at August 31, 2019 and May 31, 2019, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customers were $10 million and $11 million at August 31, 2019 and May 31, 2019, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets. Disaggregation of Revenue The following table provides revenue by service type (dollars in millions) for the periods ended August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2019 2018 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,866 $ 1,886 U.S. overnight envelope 479 468 U.S. deferred 956 952 Total U.S. domestic package revenue 3,301 3,306 International priority 1,817 1,874 International economy 855 850 Total international export package revenue 2,672 2,724 International domestic (1) 1,076 1,131 Total package revenue 7,049 7,161 Freight: U.S. 695 730 International priority 464 533 International economy 516 519 International airfreight 66 85 Total freight revenue 1,741 1,867 Other 155 194 Total FedEx Express segment 8,945 9,222 FedEx Ground segment 5,179 4,799 FedEx Freight segment 1,905 1,959 FedEx Services segment 4 9 Other and eliminations (2) 1,015 1,063 $ 17,048 $ 17,052 (1) International domestic revenues relate to our international intra-country operations. ( 2 ) Includes the FedEx Logistics, Inc. (“FedEx Logistics”) and FedEx Office and Print Services, Inc. (“FedEx Office”) operating segments. LEASES . We lease certain facilities, aircraft, equipment and vehicles under operating and finance leases that expire at various dates through 2059. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings. We leased 6% of our total aircraft fleet as of August 31, 2019 and May 31, 2019. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index based rate increases , as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payment s for items such as real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 7 for EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“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, Inc. facility, our U.S. employees have thus far chosen not to unionize (we acquired FedEx Supply Chain Distribution System, Inc. in 2015, which already had a small number of employees who are members of unions). Additionally, certain FedEx Express non-U.S. employees are unionized, and a union has been certified to represent owner-drivers at a FedEx Freight Canada, Corp. facility. STOCK-BASED COMPENSATION. We have two types of equity-based compensation: stock options and restricted stock. The key terms of the stock option and restricted stock awards granted under our incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense was $67 million for the three-month period ended August 31, 2019 and $68 million for the three-month period ended August 31, 2018. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. 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 hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in the currency translation adjustment section of other comprehensive 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 hedge for any period presented. Accordingly, additional disclosures about cash flow hedges are excluded from this report. On August 13, 2019, we designated €294 million of debt as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our euro-denominated net investment. As of August 31, 2019, the designated net investment’s net equity balance exceeds the balance outstanding on the euro-denominated debt and all other critical terms of the hedging instrument and hedged net investment continue to match. Therefore, the hedging relationship is considered effective. 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. Recently Adopted Accounting Standards In 2016, the Financial Accounting Standards Board (“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. Lessees are required to 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 are recognized on a straight-line basis, while those determined to be finance leases are recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. We adopted this new standard on June 1, 2019 using a modified retrospective transition method. Using the modified retrospective transition method of adoption, we did not adjust the balance sheet for comparative periods but recorded a cumulative effect adjustment to retained earnings on June 1, 2019. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. We also elected the practical expedient to not separate lease and non-lease components for the majority of our classes of assets. For leases in which the lease and non-lease components have been combined, the lease expense includes expenses such as common area maintenance. We have made an accounting policy election not to recognize leases with an initial term of 12 months or less on the consolidated balance sheet. The adoption of the new lease accounting standard resulted in the recognition of an operating lease liability of $14.2 billion and an operating right-of-use asset of $14.1 billion, with an immaterial impact on our income statement compared to the previous lease accounting model. Existing prepaid asset and net deferred rent liability balances of $154 million and $309 million, respectively, were recorded to the right-of-use asset. The cumulative effect of the adoption to retained earnings was an increase of $57 million ($47 million, net of tax), primarily related to the reclassification of deferred gains related to sale-leasebacks of aircraft. Substantially all of our lease arrangements are operating leases under the new standard. The new standard had a material impact on our balance sheet, but did not materially impact consolidated operating results and had no impact on operating cash flows. See “Leases” and Note 7 for . In February 2018, the FASB issued ASU 2018-02 that permits companies to reclassify the income tax effect of the Tax Cuts and Jobs Act on items within Accumulated Other Comprehensive Income (“AOCI”) to retained earnings. We adopted this new standard on June 1, 2019. New Accounting Standards and Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 that changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. These changes will be effective June 1, 2020 (fiscal 2021). We are assessing the impact of this new standard on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15 that reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the accounting for capitalizing implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. These changes will be effective June 1, 2020. We are assessing the impact of this new standard on our consolidated financial statements and related disclosures. TREASURY SHARES. In January 2016, our Board of Directors authorized a stock repurchase program of up to 25 million shares. Shares under the current repurchase program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock and general market conditions. No time limit was set for the completion of the program, and the program may be suspended or discontinued at any time. During the first quarter of 2020, we repurchased 0.02 million shares of FedEx common stock at an average price of $156.90 per share for a total of $3 million. As of August 31, 2019, 5.1 million shares remained under the stock repurchase authorization. DIVIDENDS DECLARED PER COMMON SHARE. On August 16, 2019, our Board of Directors declared a quarterly dividend of $0.65 per share of common stock. The dividend will be paid on October 1, 2019 to stockholders of record as of the close of business on September 9, 2019. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | (2) Accumulated Other Comprehensive Loss The following table provides changes in AOCI, net of tax, reported in our unaudited condensed consolidated financial statements for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to AOCI): 2019 2018 Foreign currency translation loss: Balance at beginning of period $ (954 ) $ (759 ) Translation adjustments (83 ) (162 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 1 — Balance at end of period (1,036 ) (921 ) Retirement plans adjustments: Balance at beginning of period 89 181 Reclassifications from AOCI (21 ) (23 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 50 — Balance at end of period 118 158 Accumulated other comprehensive (loss) at end of period $ (918 ) $ (763 ) The following table presents details of the reclassifications from AOCI for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Amortization of retirement plans prior service credits, before tax $ 27 $ 30 Salaries and employee benefits Income tax benefit (6 ) (7 ) Provision for income taxes AOCI reclassifications, net of tax $ 21 $ 23 Net income |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Aug. 31, 2019 | |
Debt And Capital Lease Obligations [Abstract] | |
Financing Arrangements | (3) Financing Arrangements 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. During the first quarter of 2020, we issued $2.1 billion of senior unsecured debt under our current shelf registration statement, comprised of $1.0 billion of 3.10% fixed-rate notes due in August 2029, €500 million of 0.45% fixed-rate notes due in August 2025 and €500 million of 1.30% fixed-rate notes due in August 2031. We used the net proceeds to make voluntary contributions to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) during the first quarter of 2020 and to redeem the $400 million aggregate principal amount of 2.30% notes due February 1, 2020 and the €500 million aggregate principal amount of 0.50% notes due April 9, 2020. The remaining net proceeds are being used for general corporate purposes. We have a $2.0 billion five-year credit agreement (the “Five-Year Credit Agreement”) and a $1.5 billion 364-day credit agreement (the “364-Day Credit Agreement” and, together with the Five-Year Credit Agreement, the “Credit Agreements”). The Five-Year Credit Agreement expires in March 2024 and includes a $250 million letter of credit sublimit. The 364-Day Credit Agreement expires in March 2020. The Credit Agreements are available to finance our operations and other cash flow needs. The Credit Agreements contain a financial covenant requiring us to maintain a ratio of debt to consolidated earnings (excluding noncash retirement plans mark-to-market adjustments and noncash 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 2.41 to 1.0 at August 31, 2019. We believe this covenant is the only significant restrictive covenant in the Credit Agreements. The Credit Agreements contain 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 in the Credit Agreements and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. If we failed to comply with the financial covenant or any other covenants in the Credit Agreements, our access to financing could become limited. As of August 31, 2019, no commercial paper was outstanding. However, $53 million in letters of credit were outstanding, leaving $3.447 billion available under the Credit Agreements for future borrowings. Long-term debt, including current maturities and exclusive of finance leases, had carrying values of $18.6 billion at August 31, 2019 and $17.5 billion at May 31, 2019, compared with estimated fair values of $20.1 billion at August 31, 2019 and $17.8 billion at May 31, 2019. The annualized weighted-average interest rate on long-term debt was 3.4% at August 31, 2019. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 3 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | (4) Computation of Earnings Per Share The calculation of basic and diluted earnings per common share for the three-month periods ended August 31 was as follows (in millions, except per share amounts): 2019 2018 Basic earnings per common share: Net earnings allocable to common shares (1) $ 744 $ 834 Weighted-average common shares 260 265 Basic earnings per common share $ 2.86 $ 3.15 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 744 $ 834 Weighted-average common shares 260 265 Dilutive effect of share-based awards 2 4 Weighted-average diluted shares 262 269 Diluted earnings per common share $ 2.84 $ 3.10 Anti-dilutive options excluded from diluted earnings per common share 10.9 3.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Aug. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | (5) Retirement Plans We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report. Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions): 2019 2018 Defined benefit pension plans, net $ 37 $ 28 Defined contribution plans 142 144 Postretirement healthcare plans 22 19 $ 201 $ 191 Net periodic benefit cost of the pension and postretirement healthcare plans for the three-month periods ended August 31 included the following components (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2019 2018 2019 2018 2019 2018 Service cost $ 192 $ 172 $ 24 $ 24 $ 11 $ 9 Other retirement plans (income) expense: Interest cost 250 238 11 13 11 10 Expected return on plan assets (400 ) (377 ) (13 ) (12 ) — — Amortization of prior service credit and other (27 ) (29 ) — (1 ) — — (177 ) (168 ) (2 ) — 11 10 $ 15 $ 4 $ 22 $ 24 $ 22 $ 19 We made voluntary contributions to our U.S. Pension Plans of $1.0 billion during the first quarter of 2020 and $250 million during the first quarter of 2019. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Aug. 31, 2019 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Business Segment Information | (6) Business Segment Information We provide a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are FedEx Express, including TNT Express, the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight Corporation (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation services. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“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) References to our transportation segments include, collectively, the FedEx Express segment, the FedEx Ground segment and the FedEx Freight segment. Effective June 1, 2019, the results of the FedEx Office operating segment are included in “Corporate, other and eliminations.” This change was made to reflect our internal management reporting structure. Prior year amounts have been revised to reflect current year presentation. FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information-technology functions in shared services operations for U.S. customers of our major business units and certain back-office support to our operating segments which allows 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 FedEx Express in their natural expense line items. The FedEx Services segment provides direct and indirect support to our operating segments , and we allocate all of the net operating costs of the FedEx Services segment to reflect the full cost of operating our transportation businesses in the results of those segments. 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. Corporate, Other and Eliminations 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 Office operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, cross-border e-commerce technology and e-commerce transportation solutions, customs brokerage and global ocean and air freight forwarding. 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 and operating income (loss) to our unaudited condensed consolidated financial statement totals for the three-month periods ended August 31 (in millions): 2019 2018 Revenues: FedEx Express segment $ 8,945 $ 9,222 FedEx Ground segment 5,179 4,799 FedEx Freight segment 1,905 1,959 FedEx Services segment 4 9 Other and eliminations 1,015 1,063 $ 17,048 $ 17,052 Operating income (loss): FedEx Express segment $ 285 $ 388 FedEx Ground segment 644 676 FedEx Freight segment 194 176 Corporate, other and eliminations (146 ) (169 ) $ 977 $ 1,071 |
Leases
Leases | 3 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Leases | (7) Leases As of August 31, 2019, FedEx has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for build-to-suit facilities and have undiscounted future payments of approximately $872 million and will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from fiscal 2020 to fiscal 2022. The following table is a summary of the components of net lease cost for the three months ended August 31 (in millions): 2019 Operating lease cost (1) $ 674 Finance lease cost: Amortization of right-of-use assets 3 Interest on lease liabilities 1 Total finance lease cost 4 Short-term lease cost 35 Variable lease cost (1) 267 Net lease cost $ 980 (1) Supplemental cash flow information related to leases for the three months ended August 31 is as follows (in millions): 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 635 Operating cash flows paid for interest portion of finance leases 1 Financing cash flows paid for principal portion of finance leases 27 Right-of-use assets obtained in exchange for new operating lease liabilities $ 235 Right-of-use assets obtained in exchange for new finance lease liabilities $ 76 Supplemental balance sheet information related to leases as of August 31 is as follows (in millions, except lease term and discount rate): 2019 Operating leases: Operating lease right-of-use assets $ 13,819 Current portion of operating lease liabilities 1,896 Operating lease liabilities 12,137 Total operating lease liabilities $ 14,033 Finance leases: Net property and equipment $ 124 Current portion of long-term debt 35 Long-term debt, less current portion 94 Total finance lease liabilities $ 129 Weighted-average remaining lease term Operating leases 10.2 Finance leases 10.3 Weighted-average discount rate Operating leases 3.28 % Finance leases 4.10 % A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at August 31, 2019 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases Finance Leases Total Leases 2020 (remainder) $ 234 $ 1,523 $ 1,757 $ 37 $ 1,794 2021 207 2,039 2,246 14 2,260 2022 190 1,824 2,014 14 2,028 2023 154 1,633 1,787 12 1,799 2024 58 1,432 1,490 11 1,501 Thereafter 85 7,453 7,538 78 7,616 Total lease payments 928 15,904 16,832 166 16,998 Less imputed interest (61 ) (2,738 ) (2,799 ) (37 ) (2,836 ) Present value of lease liability $ 867 $ 13,166 $ 14,033 $ 129 $ 14,162 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. As previously disclosed in our Annual Report and under the previous lease accounting standard, future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 would have been as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2020 $ 288 $ 2,209 $ 2,497 2021 230 2,033 2,263 2022 212 1,816 2,028 2023 154 1,625 1,779 2024 58 1,428 1,486 Thereafter 85 7,977 8,062 Total $ 1,027 $ 17,088 $ 18,115 |
Commitments
Commitments | 3 Months Ended |
Aug. 31, 2019 | |
Commitments [Abstract] | |
Commitments | (8) Commitments As of August 31, 2019, our purchase commitments under various contracts for the remainder of 2020 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2020 (remainder) $ 1,043 $ 789 $ 1,832 2021 2,436 691 3,127 2022 2,392 470 2,862 2023 1,587 340 1,927 2024 503 192 695 Thereafter 2,449 541 2,990 Total $ 10,410 $ 3,023 $ 13,433 (1) The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of August 31, 2019, our obligation to purchase six Boeing 777 Freighter (“B777F”) aircraft and five Boeing 767-300 Freighter (“B767F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. On June 24, 2019, FedEx Express exercised options to purchase an additional six B767F aircraft for delivery in 2022. As of August 31, 2019, we had $611 million in deposits and progress Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2020 (remainder) - - 13 1 14 2021 12 5 18 2 37 2022 12 6 18 3 39 2023 12 6 6 4 28 2024 14 6 - 4 24 Thereafter - 7 - 2 9 Total 50 30 55 16 151 |
Contingencies
Contingencies | 3 Months Ended |
Aug. 31, 2019 | |
Loss Contingency [Abstract] | |
Contingencies | (9) Contingencies Independent Contractor — Lawsuits and Administrative Proceedings. FedEx Ground is involved in lawsuits and administrative proceedings claiming that owner-operators engaged under 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 service providers 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 or service providers engaged by FedEx Ground could, among other things, entitle former owner-operators to the reimbursement of certain expenses, and service providers’ drivers to certain wage payments from the service providers and FedEx Ground, and result in employment and withholding tax and benefit liability for FedEx Ground. We continue to believe that owner-operators engaged by FedEx Ground were properly classified as independent contractors and that FedEx Ground is not an employer or joint employer of the service providers’ drivers. Federal Securities Litigation . On June 26, 2019 and July 2, 2019, FedEx and certain present and former officers were named as defendants in two putative class action securities lawsuits filed in the U.S. District Court for the Southern District of New York. The complaints allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder relating to alleged misstatements or omissions in FedEx’s public filings with the SEC and other public statements during the period from September 19, 2017 to December 18, 2018. We are not currently able to estimate the probability of loss or the amount or range of potential loss, if any, at this stage of the litigation. Environmental Matters . SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that management reasonably believes could exceed $100,000. On July 26, 2019, FedEx Freight received a pre-litigation offer from the San Bernardino District Attorney’s Office in California to settle a civil action that the District Attorney intended to file against FedEx Freight for alleged violations of the state’s environmental and hazardous waste regulations. Specifically, the District Attorney alleged that between 2015 and 2018, FedEx Freight illegally transported and stored hazardous waste, failed to report releases of hazardous materials or substances, and unlawfully released oil into a storm drain. In September 2019, we reached an agreement to settle this matter for an immaterial amount. The settlement agreement is subject to court approval. Other Matters. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime or were not provided work breaks or other benefits. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations or cash flows. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Aug. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | (10) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the three-month periods ended August 31 was as follows (in millions): 2019 2018 Cash payments for: Interest (net of capitalized interest) $ 164 $ 203 Income taxes $ 55 $ 93 Income tax refunds received (12 ) (3 ) Cash tax payments, net $ 43 $ 90 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Aug. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | (11) Condensed Consolidating Financial Statements We are required to present condensed consolidating financial information in order for the subsidiary guarantors of our public debt to continue to be exempt from reporting under the Securities Exchange Act of 1934, as amended. The guarantor subsidiaries, which are 100% owned by FedEx, guarantee $18.6 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 (UNAUDITED) August 31, 2019 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 684 $ 176 $ 1,598 $ (69 ) $ 2,389 Receivables, less allowances 335 5,575 3,541 (139 ) 9,312 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 40 949 327 — 1,316 Total current assets 1,059 6,700 5,466 (208 ) 13,017 PROPERTY AND EQUIPMENT, AT COST 26 57,131 4,279 — 61,436 Less accumulated depreciation and amortization 17 27,715 2,094 — 29,826 Net property and equipment 9 29,416 2,185 — 31,610 INTERCOMPANY RECEIVABLE 3,003 72 — (3,075 ) — OPERATING LEASE RIGHT-OF-USE ASSETS 32 11,538 2,249 — 13,819 GOODWILL — 1,582 5,239 — 6,821 INVESTMENT IN SUBSIDIARIES 34,439 4,970 — (39,409 ) — OTHER ASSETS 984 1,019 1,734 (552 ) 3,185 $ 39,526 $ 55,297 $ 16,873 $ (43,244 ) $ 68,452 LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 26 $ 9 $ — $ 35 Accrued salaries and employee benefits 91 985 446 — 1,522 Accounts payable 191 1,444 1,747 (203 ) 3,179 Operating lease liabilities 4 1,445 447 — 1,896 Accrued expenses 512 1,895 902 (6 ) 3,303 Total current liabilities 798 5,795 3,551 (209 ) 9,935 LONG-TERM DEBT, LESS CURRENT PORTION 18,395 286 45 — 18,726 INTERCOMPANY PAYABLE — — 3,074 (3,074 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,929 576 (552 ) 2,953 Operating lease liabilities 30 10,257 1,850 — 12,137 Other liabilities 2,137 3,390 1,008 — 6,535 Total other long-term liabilities 2,167 16,576 3,434 (552 ) 21,625 COMMON STOCKHOLDERS’ INVESTMENT 18,166 32,640 6,769 (39,409 ) 18,166 $ 39,526 $ 55,297 $ 16,873 $ (43,244 ) $ 68,452 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2019 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 826 $ 158 $ 1,381 $ (46 ) $ 2,319 Receivables, less allowances 56 5,603 3,684 (227 ) 9,116 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 366 953 332 — 1,651 Total current assets 1,248 6,714 5,397 (273 ) 13,086 PROPERTY AND EQUIPMENT, AT COST 25 55,341 4,145 — 59,511 Less accumulated depreciation and amortization 17 27,066 1,999 — 29,082 Net property and equipment 8 28,275 2,146 — 30,429 INTERCOMPANY RECEIVABLE 2,877 (405 ) — (2,472 ) — GOODWILL — 1,589 5,295 — 6,884 INVESTMENT IN SUBSIDIARIES 33,725 5,449 — (39,174 ) — OTHER ASSETS 995 1,811 1,789 (591 ) 4,004 $ 38,853 $ 43,433 $ 14,627 $ (42,510 ) $ 54,403 LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ 959 $ 2 $ 3 $ — $ 964 Accrued salaries and employee benefits 143 1,100 498 — 1,741 Accounts payable 16 1,469 1,808 (263 ) 3,030 Accrued expenses 521 1,853 914 (10 ) 3,278 Total current liabilities 1,639 4,424 3,223 (273 ) 9,013 LONG-TERM DEBT, LESS CURRENT PORTION 16,322 287 8 — 16,617 INTERCOMPANY PAYABLE — — 2,472 (2,472 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,832 580 (591 ) 2,821 Other liabilities 3,135 3,965 1,095 — 8,195 Total other long-term liabilities 3,135 6,797 1,675 (591 ) 11,016 COMMON STOCKHOLDERS’ INVESTMENT 17,757 31,925 7,249 (39,174 ) 17,757 $ 38,853 $ 43,433 $ 14,627 $ (42,510 ) $ 54,403 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended August 31, 2019 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,241 $ 4,893 $ (86 ) $ 17,048 OPERATING EXPENSES: Salaries and employee benefits 20 4,685 1,382 — 6,087 Purchased transportation — 2,543 1,519 (34 ) 4,028 Rentals and landing fees 2 712 208 (2 ) 920 Depreciation and amortization — 761 118 — 879 Fuel — 812 58 — 870 Maintenance and repairs — 684 84 — 768 Intercompany charges, net (78 ) (481 ) 559 — — Other 56 1,668 845 (50 ) 2,519 — 11,384 4,773 (86 ) 16,071 OPERATING INCOME — 857 120 — 977 OTHER (EXPENSE) INCOME: Equity in earnings of subsidiaries 745 18 — (763 ) — Interest, net (151 ) 12 2 — (137 ) Other retirement plans income — 163 5 — 168 Intercompany charges, net 164 (120 ) (44 ) — — Other, net (13 ) 16 (15 ) — (12 ) INCOME BEFORE INCOME TAXES 745 946 68 (763 ) 996 Provision for income taxes — 225 26 — 251 NET INCOME (LOSS) $ 745 $ 721 $ 42 $ (763 ) $ 745 COMPREHENSIVE INCOME (LOSS) $ 731 $ 705 $ (32 ) $ (763 ) $ 641 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended August 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,367 $ 4,787 $ (102 ) $ 17,052 OPERATING EXPENSES: Salaries and employee benefits 48 4,783 1,429 — 6,260 Purchased transportation — 2,380 1,634 (47 ) 3,967 Rentals and landing fees 1 631 192 (1 ) 823 Depreciation and amortization — 693 115 — 808 Fuel — 902 84 — 986 Maintenance and repairs — 646 89 — 735 Intercompany charges, net (111 ) (226 ) 337 — — Other 62 1,546 848 (54 ) 2,402 — 11,355 4,728 (102 ) 15,981 OPERATING INCOME — 1,012 59 — 1,071 OTHER (EXPENSE) INCOME: Equity in earnings of subsidiaries 835 81 — (916 ) — Interest, net (143 ) 15 1 — (127 ) Other retirement plans (expense) income — 155 3 — 158 Intercompany charges, net 143 (122 ) (21 ) — — Other, net — (10 ) 9 — (1 ) INCOME (LOSS) BEFORE INCOME TAXES 835 1,131 51 (916 ) 1,101 Provision for income taxes — 215 51 — 266 NET INCOME (LOSS) $ 835 $ 916 $ — $ (916 ) $ 835 COMPREHENSIVE INCOME (LOSS) $ 817 $ 1,014 $ (265 ) $ (916 ) $ 650 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended August 31, 2019 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,671 ) $ 2,111 $ 148 $ (23 ) $ 565 INVESTING ACTIVITIES Capital expenditures (2 ) (1,317 ) (99 ) — (1,418 ) Proceeds from asset dispositions and other (10 ) 5 4 — (1 ) CASH USED IN INVESTING ACTIVITIES (12 ) (1,312 ) (95 ) — (1,419 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,002 (1,059 ) 57 — — Payment on loan between subsidiaries (434 ) — 434 — — Intercompany dividends — 304 (304 ) — — Proceeds from debt issuances 2,093 — — — 2,093 Principal payments on debt (956 ) (27 ) (2 ) — (985 ) Proceeds from stock issuances 12 — — — 12 Dividends paid (170 ) — — — (170 ) Purchase of treasury stock (3 ) — — — (3 ) Other, net (3 ) — (2 ) — (5 ) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 1,541 (782 ) 183 — 942 Effect of exchange rate changes on cash — 1 (19 ) — (18 ) Net (decrease) increase in cash and cash equivalents (142 ) 18 217 (23 ) 70 Cash and cash equivalents at beginning of period 826 158 1,381 (46 ) 2,319 Cash and cash equivalents at end of period $ 684 $ 176 $ 1,598 $ (69 ) $ 2,389 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended August 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 785 $ (159 ) $ 102 $ (27 ) $ 701 INVESTING ACTIVITIES Capital expenditures — (983 ) (196 ) — (1,179 ) Proceeds from asset dispositions and other (5 ) 78 5 — 78 CASH USED IN INVESTING ACTIVITIES (5 ) (905 ) (191 ) — (1,101 ) FINANCING ACTIVITIES Proceeds from short-term borrowings, net 299 — — — 299 Net transfers from (to) Parent (853 ) 763 90 — — Intercompany dividends — 81 (81 ) — — Principal payments on debt — — (2 ) — (2 ) Proceeds from stock issuances 25 — — — 25 Dividends paid (173 ) — — — (173 ) Purchase of treasury stock (625 ) — — — (625 ) Other, net — 148 (144 ) — 4 CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,327 ) 992 (137 ) — (472 ) Effect of exchange rate changes on cash — (5 ) (19 ) — (24 ) Net decrease in cash and cash equivalents (547 ) (77 ) (245 ) (27 ) (896 ) Cash and cash equivalents at beginning of period 1,485 257 1,538 (15 ) 3,265 Cash and cash equivalents at end of period $ 938 $ 180 $ 1,293 $ (42 ) $ 2,369 |
General (Policies)
General (Policies) | 3 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the year ended May 31, 2019 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of August 31, 2019, and the results of our operations for the three-month periods ended August 31, 2019 and 2018, cash flows for the three-month periods ended August 31, 2019 and 2018, and changes in common stockholders’ investment for the three-month periods ended August 31, 2019 and 2018. Operating results for the three-month period ended August 31, 2019 are not necessarily indicative of the results that may be expected for the year ending May 31, 2020. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2020 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. |
Reclassifications | RECLASSIFICATIONS . Certain reclassifications have been made to the prior years’ condensed consolidated financial statements to conform to the current year presentation. |
Revenue Recognition | REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit packages, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Gross contract assets related to in-transit packages totaled $466 million and $533 million at August 31, 2019 and May 31, 2019, respectively. Contract assets net of deferred unearned revenue were $338 million and $364 million at August 31, 2019 and May 31, 2019, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customers were $10 million and $11 million at August 31, 2019 and May 31, 2019, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets. Disaggregation of Revenue The following table provides revenue by service type (dollars in millions) for the periods ended August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2019 2018 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,866 $ 1,886 U.S. overnight envelope 479 468 U.S. deferred 956 952 Total U.S. domestic package revenue 3,301 3,306 International priority 1,817 1,874 International economy 855 850 Total international export package revenue 2,672 2,724 International domestic (1) 1,076 1,131 Total package revenue 7,049 7,161 Freight: U.S. 695 730 International priority 464 533 International economy 516 519 International airfreight 66 85 Total freight revenue 1,741 1,867 Other 155 194 Total FedEx Express segment 8,945 9,222 FedEx Ground segment 5,179 4,799 FedEx Freight segment 1,905 1,959 FedEx Services segment 4 9 Other and eliminations (2) 1,015 1,063 $ 17,048 $ 17,052 (1) International domestic revenues relate to our international intra-country operations. ( 2 ) Includes the FedEx Logistics, Inc. (“FedEx Logistics”) and FedEx Office and Print Services, Inc. (“FedEx Office”) operating segments. |
Leases | LEASES . We lease certain facilities, aircraft, equipment and vehicles under operating and finance leases that expire at various dates through 2059. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional and metropolitan sorting facilities, retail facilities and administrative buildings. We leased 6% of our total aircraft fleet as of August 31, 2019 and May 31, 2019. Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee. For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index based rate increases , as well as reimbursement for real estate taxes, common area maintenance and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payment s for items such as real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. See Note 7 for |
Stock-based Compensation | STOCK-BASED COMPENSATION. We have two types of equity-based compensation: stock options and restricted stock. The key terms of the stock option and restricted stock awards granted under our incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense was $67 million for the three-month period ended August 31, 2019 and $68 million for the three-month period ended August 31, 2018. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. |
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 hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in the currency translation adjustment section of other comprehensive 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 hedge for any period presented. Accordingly, additional disclosures about cash flow hedges are excluded from this report. On August 13, 2019, we designated €294 million of debt as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our euro-denominated net investment. As of August 31, 2019, the designated net investment’s net equity balance exceeds the balance outstanding on the euro-denominated debt and all other critical terms of the hedging instrument and hedged net investment continue to match. Therefore, the hedging relationship is considered effective. |
General (Tables)
General (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Service Type | The following table provides revenue by service type (dollars in millions) for the periods ended August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2019 2018 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,866 $ 1,886 U.S. overnight envelope 479 468 U.S. deferred 956 952 Total U.S. domestic package revenue 3,301 3,306 International priority 1,817 1,874 International economy 855 850 Total international export package revenue 2,672 2,724 International domestic (1) 1,076 1,131 Total package revenue 7,049 7,161 Freight: U.S. 695 730 International priority 464 533 International economy 516 519 International airfreight 66 85 Total freight revenue 1,741 1,867 Other 155 194 Total FedEx Express segment 8,945 9,222 FedEx Ground segment 5,179 4,799 FedEx Freight segment 1,905 1,959 FedEx Services segment 4 9 Other and eliminations (2) 1,015 1,063 $ 17,048 $ 17,052 (1) International domestic revenues relate to our international intra-country operations. ( 2 ) Includes the FedEx Logistics, Inc. (“FedEx Logistics”) and FedEx Office and Print Services, Inc. (“FedEx Office”) operating segments. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Tables [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides changes in AOCI, net of tax, reported in our unaudited condensed consolidated financial statements for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to AOCI): 2019 2018 Foreign currency translation loss: Balance at beginning of period $ (954 ) $ (759 ) Translation adjustments (83 ) (162 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 1 — Balance at end of period (1,036 ) (921 ) Retirement plans adjustments: Balance at beginning of period 89 181 Reclassifications from AOCI (21 ) (23 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 50 — Balance at end of period 118 158 Accumulated other comprehensive (loss) at end of period $ (918 ) $ (763 ) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table presents details of the reclassifications from AOCI for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from AOCI Affected Line Item in the Income Statement 2019 2018 Amortization of retirement plans prior service credits, before tax $ 27 $ 30 Salaries and employee benefits Income tax benefit (6 ) (7 ) Provision for income taxes AOCI reclassifications, net of tax $ 21 $ 23 Net income |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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 three-month periods ended August 31 was as follows (in millions, except per share amounts): 2019 2018 Basic earnings per common share: Net earnings allocable to common shares (1) $ 744 $ 834 Weighted-average common shares 260 265 Basic earnings per common share $ 2.86 $ 3.15 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 744 $ 834 Weighted-average common shares 260 265 Dilutive effect of share-based awards 2 4 Weighted-average diluted shares 262 269 Diluted earnings per common share $ 2.84 $ 3.10 Anti-dilutive options excluded from diluted earnings per common share 10.9 3.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Retirement Plan Tables [Abstract] | |
Schedule of Retirement Plan Costs | Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions): 2019 2018 Defined benefit pension plans, net $ 37 $ 28 Defined contribution plans 142 144 Postretirement healthcare plans 22 19 $ 201 $ 191 |
Schedule of Net Periodic Benefit Cost | Net periodic benefit cost of the pension and postretirement healthcare plans for the three-month periods ended August 31 included the following components (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2019 2018 2019 2018 2019 2018 Service cost $ 192 $ 172 $ 24 $ 24 $ 11 $ 9 Other retirement plans (income) expense: Interest cost 250 238 11 13 11 10 Expected return on plan assets (400 ) (377 ) (13 ) (12 ) — — Amortization of prior service credit and other (27 ) (29 ) — (1 ) — — (177 ) (168 ) (2 ) — 11 10 $ 15 $ 4 $ 22 $ 24 $ 22 $ 19 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Schedule of Segment Information | The following table provides a reconciliation of reportable segment revenues and operating income (loss) to our unaudited condensed consolidated financial statement totals for the three-month periods ended August 31 (in millions): 2019 2018 Revenues: FedEx Express segment $ 8,945 $ 9,222 FedEx Ground segment 5,179 4,799 FedEx Freight segment 1,905 1,959 FedEx Services segment 4 9 Other and eliminations 1,015 1,063 $ 17,048 $ 17,052 Operating income (loss): FedEx Express segment $ 285 $ 388 FedEx Ground segment 644 676 FedEx Freight segment 194 176 Corporate, other and eliminations (146 ) (169 ) $ 977 $ 1,071 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Net Lease Cost | The following table is a summary of the components of net lease cost for the three months ended August 31 (in millions): 2019 Operating lease cost (1) $ 674 Finance lease cost: Amortization of right-of-use assets 3 Interest on lease liabilities 1 Total finance lease cost 4 Short-term lease cost 35 Variable lease cost (1) 267 Net lease cost $ 980 (1) |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the three months ended August 31 is as follows (in millions): 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 635 Operating cash flows paid for interest portion of finance leases 1 Financing cash flows paid for principal portion of finance leases 27 Right-of-use assets obtained in exchange for new operating lease liabilities $ 235 Right-of-use assets obtained in exchange for new finance lease liabilities $ 76 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of August 31 is as follows (in millions, except lease term and discount rate): 2019 Operating leases: Operating lease right-of-use assets $ 13,819 Current portion of operating lease liabilities 1,896 Operating lease liabilities 12,137 Total operating lease liabilities $ 14,033 Finance leases: Net property and equipment $ 124 Current portion of long-term debt 35 Long-term debt, less current portion 94 Total finance lease liabilities $ 129 Weighted-average remaining lease term Operating leases 10.2 Finance leases 10.3 Weighted-average discount rate Operating leases 3.28 % Finance leases 4.10 % |
Summary of Future Minimum Lease Payments, Operating and Finance Leases | A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at August 31, 2019 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases Finance Leases Total Leases 2020 (remainder) $ 234 $ 1,523 $ 1,757 $ 37 $ 1,794 2021 207 2,039 2,246 14 2,260 2022 190 1,824 2,014 14 2,028 2023 154 1,633 1,787 12 1,799 2024 58 1,432 1,490 11 1,501 Thereafter 85 7,453 7,538 78 7,616 Total lease payments 928 15,904 16,832 166 16,998 Less imputed interest (61 ) (2,738 ) (2,799 ) (37 ) (2,836 ) Present value of lease liability $ 867 $ 13,166 $ 14,033 $ 129 $ 14,162 |
Schedule of Future Minimum Lease Payments, Operating Leases | As previously disclosed in our Annual Report and under the previous lease accounting standard, future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 would have been as follows (in millions): Operating Leases Aircraft and Related Equipment Facilities and Other Total Operating Leases 2020 $ 288 $ 2,209 $ 2,497 2021 230 2,033 2,263 2022 212 1,816 2,028 2023 154 1,625 1,779 2024 58 1,428 1,486 Thereafter 85 7,977 8,062 Total $ 1,027 $ 17,088 $ 18,115 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | As of August 31, 2019, our purchase commitments under various contracts for the remainder of 2020 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2020 (remainder) $ 1,043 $ 789 $ 1,832 2021 2,436 691 3,127 2022 2,392 470 2,862 2023 1,587 340 1,927 2024 503 192 695 Thereafter 2,449 541 2,990 Total $ 10,410 $ 3,023 $ 13,433 (1) |
Schedule of Aircraft Purchase Commitments | The following table is a summary of the key aircraft we are committed to purchase as of August 31, 2019 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2020 (remainder) - - 13 1 14 2021 12 5 18 2 37 2022 12 6 18 3 39 2023 12 6 6 4 28 2024 14 6 - 4 24 Thereafter - 7 - 2 9 Total 50 30 55 16 151 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Supplemental Cash Flow Tables [Abstract] | |
Supplemental Cash Flow | Cash paid for interest expense and income taxes for the three-month periods ended August 31 was as follows (in millions): 2019 2018 Cash payments for: Interest (net of capitalized interest) $ 164 $ 203 Income taxes $ 55 $ 93 Income tax refunds received (12 ) (3 ) Cash tax payments, net $ 43 $ 90 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Condensed Consolidating Financial Statements Tables [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) August 31, 2019 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 684 $ 176 $ 1,598 $ (69 ) $ 2,389 Receivables, less allowances 335 5,575 3,541 (139 ) 9,312 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 40 949 327 — 1,316 Total current assets 1,059 6,700 5,466 (208 ) 13,017 PROPERTY AND EQUIPMENT, AT COST 26 57,131 4,279 — 61,436 Less accumulated depreciation and amortization 17 27,715 2,094 — 29,826 Net property and equipment 9 29,416 2,185 — 31,610 INTERCOMPANY RECEIVABLE 3,003 72 — (3,075 ) — OPERATING LEASE RIGHT-OF-USE ASSETS 32 11,538 2,249 — 13,819 GOODWILL — 1,582 5,239 — 6,821 INVESTMENT IN SUBSIDIARIES 34,439 4,970 — (39,409 ) — OTHER ASSETS 984 1,019 1,734 (552 ) 3,185 $ 39,526 $ 55,297 $ 16,873 $ (43,244 ) $ 68,452 LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ — $ 26 $ 9 $ — $ 35 Accrued salaries and employee benefits 91 985 446 — 1,522 Accounts payable 191 1,444 1,747 (203 ) 3,179 Operating lease liabilities 4 1,445 447 — 1,896 Accrued expenses 512 1,895 902 (6 ) 3,303 Total current liabilities 798 5,795 3,551 (209 ) 9,935 LONG-TERM DEBT, LESS CURRENT PORTION 18,395 286 45 — 18,726 INTERCOMPANY PAYABLE — — 3,074 (3,074 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,929 576 (552 ) 2,953 Operating lease liabilities 30 10,257 1,850 — 12,137 Other liabilities 2,137 3,390 1,008 — 6,535 Total other long-term liabilities 2,167 16,576 3,434 (552 ) 21,625 COMMON STOCKHOLDERS’ INVESTMENT 18,166 32,640 6,769 (39,409 ) 18,166 $ 39,526 $ 55,297 $ 16,873 $ (43,244 ) $ 68,452 CONDENSED CONSOLIDATING BALANCE SHEETS May 31, 2019 Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $ 826 $ 158 $ 1,381 $ (46 ) $ 2,319 Receivables, less allowances 56 5,603 3,684 (227 ) 9,116 Spare parts, supplies, fuel, prepaid expenses and other, less allowances 366 953 332 — 1,651 Total current assets 1,248 6,714 5,397 (273 ) 13,086 PROPERTY AND EQUIPMENT, AT COST 25 55,341 4,145 — 59,511 Less accumulated depreciation and amortization 17 27,066 1,999 — 29,082 Net property and equipment 8 28,275 2,146 — 30,429 INTERCOMPANY RECEIVABLE 2,877 (405 ) — (2,472 ) — GOODWILL — 1,589 5,295 — 6,884 INVESTMENT IN SUBSIDIARIES 33,725 5,449 — (39,174 ) — OTHER ASSETS 995 1,811 1,789 (591 ) 4,004 $ 38,853 $ 43,433 $ 14,627 $ (42,510 ) $ 54,403 LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT CURRENT LIABILITIES Current portion of long-term debt $ 959 $ 2 $ 3 $ — $ 964 Accrued salaries and employee benefits 143 1,100 498 — 1,741 Accounts payable 16 1,469 1,808 (263 ) 3,030 Accrued expenses 521 1,853 914 (10 ) 3,278 Total current liabilities 1,639 4,424 3,223 (273 ) 9,013 LONG-TERM DEBT, LESS CURRENT PORTION 16,322 287 8 — 16,617 INTERCOMPANY PAYABLE — — 2,472 (2,472 ) — OTHER LONG-TERM LIABILITIES Deferred income taxes — 2,832 580 (591 ) 2,821 Other liabilities 3,135 3,965 1,095 — 8,195 Total other long-term liabilities 3,135 6,797 1,675 (591 ) 11,016 COMMON STOCKHOLDERS’ INVESTMENT 17,757 31,925 7,249 (39,174 ) 17,757 $ 38,853 $ 43,433 $ 14,627 $ (42,510 ) $ 54,403 |
Condensed Consolidating Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended August 31, 2019 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,241 $ 4,893 $ (86 ) $ 17,048 OPERATING EXPENSES: Salaries and employee benefits 20 4,685 1,382 — 6,087 Purchased transportation — 2,543 1,519 (34 ) 4,028 Rentals and landing fees 2 712 208 (2 ) 920 Depreciation and amortization — 761 118 — 879 Fuel — 812 58 — 870 Maintenance and repairs — 684 84 — 768 Intercompany charges, net (78 ) (481 ) 559 — — Other 56 1,668 845 (50 ) 2,519 — 11,384 4,773 (86 ) 16,071 OPERATING INCOME — 857 120 — 977 OTHER (EXPENSE) INCOME: Equity in earnings of subsidiaries 745 18 — (763 ) — Interest, net (151 ) 12 2 — (137 ) Other retirement plans income — 163 5 — 168 Intercompany charges, net 164 (120 ) (44 ) — — Other, net (13 ) 16 (15 ) — (12 ) INCOME BEFORE INCOME TAXES 745 946 68 (763 ) 996 Provision for income taxes — 225 26 — 251 NET INCOME (LOSS) $ 745 $ 721 $ 42 $ (763 ) $ 745 COMPREHENSIVE INCOME (LOSS) $ 731 $ 705 $ (32 ) $ (763 ) $ 641 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended August 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES $ — $ 12,367 $ 4,787 $ (102 ) $ 17,052 OPERATING EXPENSES: Salaries and employee benefits 48 4,783 1,429 — 6,260 Purchased transportation — 2,380 1,634 (47 ) 3,967 Rentals and landing fees 1 631 192 (1 ) 823 Depreciation and amortization — 693 115 — 808 Fuel — 902 84 — 986 Maintenance and repairs — 646 89 — 735 Intercompany charges, net (111 ) (226 ) 337 — — Other 62 1,546 848 (54 ) 2,402 — 11,355 4,728 (102 ) 15,981 OPERATING INCOME — 1,012 59 — 1,071 OTHER (EXPENSE) INCOME: Equity in earnings of subsidiaries 835 81 — (916 ) — Interest, net (143 ) 15 1 — (127 ) Other retirement plans (expense) income — 155 3 — 158 Intercompany charges, net 143 (122 ) (21 ) — — Other, net — (10 ) 9 — (1 ) INCOME (LOSS) BEFORE INCOME TAXES 835 1,131 51 (916 ) 1,101 Provision for income taxes — 215 51 — 266 NET INCOME (LOSS) $ 835 $ 916 $ — $ (916 ) $ 835 COMPREHENSIVE INCOME (LOSS) $ 817 $ 1,014 $ (265 ) $ (916 ) $ 650 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended August 31, 2019 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (1,671 ) $ 2,111 $ 148 $ (23 ) $ 565 INVESTING ACTIVITIES Capital expenditures (2 ) (1,317 ) (99 ) — (1,418 ) Proceeds from asset dispositions and other (10 ) 5 4 — (1 ) CASH USED IN INVESTING ACTIVITIES (12 ) (1,312 ) (95 ) — (1,419 ) FINANCING ACTIVITIES Net transfers from (to) Parent 1,002 (1,059 ) 57 — — Payment on loan between subsidiaries (434 ) — 434 — — Intercompany dividends — 304 (304 ) — — Proceeds from debt issuances 2,093 — — — 2,093 Principal payments on debt (956 ) (27 ) (2 ) — (985 ) Proceeds from stock issuances 12 — — — 12 Dividends paid (170 ) — — — (170 ) Purchase of treasury stock (3 ) — — — (3 ) Other, net (3 ) — (2 ) — (5 ) CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 1,541 (782 ) 183 — 942 Effect of exchange rate changes on cash — 1 (19 ) — (18 ) Net (decrease) increase in cash and cash equivalents (142 ) 18 217 (23 ) 70 Cash and cash equivalents at beginning of period 826 158 1,381 (46 ) 2,319 Cash and cash equivalents at end of period $ 684 $ 176 $ 1,598 $ (69 ) $ 2,389 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended August 31, 2018 Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 785 $ (159 ) $ 102 $ (27 ) $ 701 INVESTING ACTIVITIES Capital expenditures — (983 ) (196 ) — (1,179 ) Proceeds from asset dispositions and other (5 ) 78 5 — 78 CASH USED IN INVESTING ACTIVITIES (5 ) (905 ) (191 ) — (1,101 ) FINANCING ACTIVITIES Proceeds from short-term borrowings, net 299 — — — 299 Net transfers from (to) Parent (853 ) 763 90 — — Intercompany dividends — 81 (81 ) — — Principal payments on debt — — (2 ) — (2 ) Proceeds from stock issuances 25 — — — 25 Dividends paid (173 ) — — — (173 ) Purchase of treasury stock (625 ) — — — (625 ) Other, net — 148 (144 ) — 4 CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,327 ) 992 (137 ) — (472 ) Effect of exchange rate changes on cash — (5 ) (19 ) — (24 ) Net decrease in cash and cash equivalents (547 ) (77 ) (245 ) (27 ) (896 ) Cash and cash equivalents at beginning of period 1,485 257 1,538 (15 ) 3,265 Cash and cash equivalents at end of period $ 938 $ 180 $ 1,293 $ (42 ) $ 2,369 |
General - Additional Informatio
General - Additional Information (Details) $ / shares in Units, € in Millions, $ in Millions | Jun. 01, 2019USD ($) | Aug. 31, 2019USD ($)$ / sharesshares | Aug. 31, 2018USD ($)shares | Aug. 13, 2019EUR (€) | May 31, 2019USD ($) | Jan. 26, 2016shares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Gross contract assets related to in-transit packages | $ 466 | $ 533 | ||||
Contract assets net of deferred unearned revenue | 338 | 364 | ||||
Contract liabilities related to advance payments from customers | $ 10 | $ 11 | ||||
Operating and finance leases expiration term | various dates through 2059 | |||||
Percentage total aircraft fleet leased | 6.00% | 6.00% | ||||
Stock-based compensation | $ 67 | $ 68 | ||||
Denominated debt as a net investment hedge | € | € 294 | |||||
Operating lease liability | $ 14,200 | 14,033 | ||||
Operating right-of-use asset | 14,100 | $ 13,819 | ||||
Cumulative effect on retained earnings, before tax | 57 | |||||
Cumulative effect on retained earnings, net of tax | 47 | |||||
Stock repurchase program number of shares authorized to be repurchased | shares | 25,000,000 | |||||
Number of shares repurchased | shares | 20,000 | 2,600,000 | ||||
Treasury stock acquired, average cost per share | $ / shares | $ 156.90 | |||||
Payments for repurchase of common stock | $ 3 | $ 625 | ||||
Stock repurchase program, remaining number of shares authorized to be repurchased | shares | 5,100,000 | |||||
Dividends payable, date declared | Aug. 16, 2019 | |||||
Dividends payable amount per share | $ / shares | $ 0.65 | |||||
Dividends payable, date to be paid | Oct. 1, 2019 | |||||
Dividends payable, date of record | Sep. 9, 2019 | |||||
Prepaid Asset [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Operating right-of-use asset | 154 | |||||
Net Deferred Rent Liability [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Operating right-of-use asset | $ 309 |
General - Schedule of Revenue b
General - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | $ 17,048 | $ 17,052 | |
Operating Segments | FedEx Express Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 8,945 | 9,222 | |
Operating Segments | FedEx Express Segment [Member] | U.S. overnight box [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,866 | 1,886 | |
Operating Segments | FedEx Express Segment [Member] | U.S. overnight envelope [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 479 | 468 | |
Operating Segments | FedEx Express Segment [Member] | U.S. deferred [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 956 | 952 | |
Operating Segments | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 3,301 | 3,306 | |
Operating Segments | FedEx Express Segment [Member] | International priority [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,817 | 1,874 | |
Operating Segments | FedEx Express Segment [Member] | International economy [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 855 | 850 | |
Operating Segments | FedEx Express Segment [Member] | Total international export package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,672 | 2,724 | |
Operating Segments | FedEx Express Segment [Member] | International domestic [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [1] | 1,076 | 1,131 |
Operating Segments | FedEx Express Segment [Member] | Total package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 7,049 | 7,161 | |
Operating Segments | FedEx Express Segment [Member] | U.S. freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 695 | 730 | |
Operating Segments | FedEx Express Segment [Member] | International priority freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 464 | 533 | |
Operating Segments | FedEx Express Segment [Member] | International Economy Freight | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 516 | 519 | |
Operating Segments | FedEx Express Segment [Member] | International Airfreight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 66 | 85 | |
Operating Segments | FedEx Express Segment [Member] | Total freight revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,741 | 1,867 | |
Operating Segments | FedEx Express Segment [Member] | Other [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 155 | 194 | |
Operating Segments | FedEx Ground Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 5,179 | 4,799 | |
Operating Segments | FedEx Freight Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,905 | 1,959 | |
Operating Segments | FedEx Services Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 4 | 9 | |
Other and eliminations [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [2] | $ 1,015 | $ 1,063 |
[1] | International domestic revenues relate to our international intra-country operations. | ||
[2] | Includes the FedEx Logistics, Inc. (“FedEx Logistics”) and FedEx Office and Print Services, Inc. (“FedEx Office”) operating segments. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 17,757 | |
Translation adjustments | (83) | $ (162) |
Ending Balance | 18,166 | 19,173 |
Foreign Currency Translation Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (954) | (759) |
Translation adjustments | (83) | (162) |
Ending Balance | (1,036) | (921) |
Foreign Currency Translation Loss [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification to retained earnings due to the adoption of ASU 2018-02 | 1 | |
Retirement Plans Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 89 | 181 |
Reclassifications from AOCI | (21) | (23) |
Ending Balance | 118 | 158 |
Retirement Plans Adjustments [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification to retained earnings due to the adoption of ASU 2018-02 | 50 | |
Accumulated Other Comprehensive (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (865) | (578) |
Ending Balance | $ (918) | $ (763) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | $ 27 | $ 30 |
Provision for income taxes | (6) | (7) |
Net income | $ 21 | $ 23 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) € in Millions | 3 Months Ended | ||
Aug. 31, 2019USD ($) | Aug. 31, 2019EUR (€) | May 31, 2019USD ($) | |
Line Of Credit Facility [Line Items] | |||
Financial Covenant Terms Ratio | 350.00% | 350.00% | |
Financial Covenant Compliance Ratio | 241.00% | 241.00% | |
Commercial paper outstanding | $ 0 | ||
Letters Of Credit Outstanding | 53,000,000 | ||
Long Term Debt, Including Current Maturities and Exclusive of finance Leases Carrying Value | 18,600,000,000 | $ 17,500,000,000 | |
Long Term Debt, Including Current Maturities and Exclusive of finance Leases Fair Value | $ 20,100,000,000 | $ 17,800,000,000 | |
Long-term debt weighted-average interest rate | 3.40% | 3.40% | |
Five-Year Credit Agreement [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 | ||
Line of Credit Facility, Expiration Date | 2024-03 | ||
Letter of Credit Maximum Sublimit Amount | $ 250,000,000 | ||
364-Day Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Term | 364 days | ||
Line Of Credit Facility Maximum Borrowing Capacity | $ 1,500,000,000 | ||
Line of Credit Facility, Expiration Date | 2020-03 | ||
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility outstanding for future borrowings | $ 3,447,000,000 | ||
Senior Unsecured Debt [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | 2,100,000,000 | ||
3.10% Fixed-rate Notes Due in August 2029 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 1,000,000,000 | ||
Fixed interest rate | 3.10% | 3.10% | |
Debt instrument, maturity date | 2029-08 | ||
0.45% Fixed-rate Notes Due in August 2025 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | € | € 500 | ||
Fixed interest rate | 0.45% | 0.45% | |
Debt instrument, maturity date | 2025-08 | ||
1.30% Fixed-rate Notes Due in August 2031 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | € | € 500 | ||
Fixed interest rate | 1.30% | 1.30% | |
Debt instrument, maturity date | 2031-08 | ||
2.30% Fixed-rate Notes Due in February1 2020 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Fixed interest rate | 2.30% | 2.30% | |
Debt instrument, maturity date | Feb. 1, 2020 | ||
0.50% Notes Due April 09, 2020 [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, face amount | € | € 500 | ||
Fixed interest rate | 0.50% | 0.50% | |
Debt instrument, maturity date | Apr. 9, 2020 |
Computation of Earnings Per S_3
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 | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Basic earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 744 | $ 834 |
Weighted-average common shares | 260 | 265 | |
Basic earnings per common share | $ 2.86 | $ 3.15 | |
Diluted earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 744 | $ 834 |
Weighted-average common shares | 260 | 265 | |
Dilutive effect of share-based awards | 2 | 4 | |
Weighted-average diluted shares | 262 | 269 | |
Diluted earnings per common share | $ 2.84 | $ 3.10 | |
Anti-dilutive options excluded from diluted earnings per common share | 10.9 | 3.7 | |
[1] | Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Pension And Other Postretirement Benefit Expense [Abstract] | ||
Defined benefit pension plans, net | $ 37 | $ 28 |
Defined contribution plans | 142 | 144 |
Postretirement healthcare plans | 22 | 19 |
Retirement plans costs | $ 201 | $ 191 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Pension Plans [Member] | U.S. Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | $ 192 | $ 172 |
Other retirement plans (income) expense: | ||
Interest cost | 250 | 238 |
Expected return on plan assets | (400) | (377) |
Amortization of prior service credit and other | (27) | (29) |
Other retirement plans (income) expense | (177) | (168) |
Net periodic benefit cost | 15 | 4 |
Pension Plans [Member] | International Pension Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 24 | 24 |
Other retirement plans (income) expense: | ||
Interest cost | 11 | 13 |
Expected return on plan assets | (13) | (12) |
Amortization of prior service credit and other | (1) | |
Other retirement plans (income) expense | (2) | |
Net periodic benefit cost | 22 | 24 |
Postretirement Healthcare Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 11 | 9 |
Other retirement plans (income) expense: | ||
Interest cost | 11 | 10 |
Other retirement plans (income) expense | 11 | 10 |
Net periodic benefit cost | $ 22 | $ 19 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Voluntary Contribution [Member] | U.S. Pensions Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan contributions by employer | $ 1,000 | $ 250 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 17,048 | $ 17,052 |
Operating income (loss) | 977 | 1,071 |
Operating Segments | FedEx Express Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 8,945 | 9,222 |
Operating income (loss) | 285 | 388 |
Operating Segments | FedEx Ground Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,179 | 4,799 |
Operating income (loss) | 644 | 676 |
Operating Segments | FedEx Freight Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,905 | 1,959 |
Operating income (loss) | 194 | 176 |
Operating Segments | FedEx Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4 | 9 |
Corporate, Other and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,015 | 1,063 |
Operating income (loss) | $ (146) | $ (169) |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Aug. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Additional leases not yet commenced, undiscounted future payments | $ 872 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease commencement date | 2020 |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease commencement date | 2022 |
Leases - Summary of Components
Leases - Summary of Components of Net Lease Cost (Details) $ in Millions | 3 Months Ended | |
Aug. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 674 | [1] |
Finance lease cost: | ||
Amortization of right-of-use assets | 3 | |
Interest on lease liabilities | 1 | |
Total finance lease cost | 4 | |
Short-term lease cost | 35 | |
Variable lease cost | 267 | [1] |
Net lease cost | $ 980 | |
[1] | Expenses are primarily accounted for in the “Rentals and landing fees” line item. Additional amounts related to embedded leases are accounted for in the “Purchased transportation,” “Fuel” and “Other” line items in the unaudited condensed consolidated statements of income. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 3 Months Ended |
Aug. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows paid for operating leases | $ 635 |
Operating cash flows paid for interest portion of finance leases | 1 |
Financing cash flows paid for principal portion of finance leases | 27 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 235 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 76 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Jun. 01, 2019 |
Operating leases: | ||
Operating lease right-of-use assets | $ 13,819 | $ 14,100 |
Current portion of operating lease liabilities | 1,896 | |
Operating lease liabilities | 12,137 | |
Total operating lease liabilities | 14,033 | $ 14,200 |
Finance Leases: | ||
Net property and equipment | $ 124 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Current portion of long-term debt | $ 35 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | |
Long-term debt, less current portion | $ 94 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | |
Total finance lease liabilities | $ 129 | |
Weighted-average remaining lease term | ||
Operating leases | 10 years 2 months 12 days | |
Finance leases | 10 years 3 months 18 days | |
Weighted-average discount rate | ||
Operating leases | 3.28% | |
Finance leases | 4.10% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Jun. 01, 2019 |
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items] | ||
2020 (remainder) | $ 1,794 | |
2021 | 2,260 | |
2022 | 2,028 | |
2023 | 1,799 | |
2024 | 1,501 | |
Thereafter | 7,616 | |
Total lease payments | 16,998 | |
Less imputed interest | (2,836) | |
Present value of lease liability | 14,162 | |
Operating Leases | ||
2020 (remainder) | 1,757 | |
2021 | 2,246 | |
2022 | 2,014 | |
2023 | 1,787 | |
2024 | 1,490 | |
Thereafter | 7,538 | |
Total lease payments | 16,832 | |
Less imputed interest | (2,799) | |
Present value of lease liability | 14,033 | $ 14,200 |
Finance Leases | ||
2020 (remainder) | 37 | |
2021 | 14 | |
2022 | 14 | |
2023 | 12 | |
2024 | 11 | |
Thereafter | 78 | |
Total lease payments | 166 | |
Less imputed interest | (37) | |
Present value of lease liability | 129 | |
Aircraft and Related Equipment [Member] | ||
Operating Leases | ||
2020 (remainder) | 234 | |
2021 | 207 | |
2022 | 190 | |
2023 | 154 | |
2024 | 58 | |
Thereafter | 85 | |
Total lease payments | 928 | |
Less imputed interest | (61) | |
Present value of lease liability | 867 | |
Facilities and Other [Member] | ||
Operating Leases | ||
2020 (remainder) | 1,523 | |
2021 | 2,039 | |
2022 | 1,824 | |
2023 | 1,633 | |
2024 | 1,432 | |
Thereafter | 7,453 | |
Total lease payments | 15,904 | |
Less imputed interest | (2,738) | |
Present value of lease liability | $ 13,166 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions | May 31, 2019USD ($) |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2020 | $ 2,497 |
2021 | 2,263 |
2022 | 2,028 |
2023 | 1,779 |
2024 | 1,486 |
Thereafter | 8,062 |
Total | 18,115 |
Aircraft and Related Equipment [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2020 | 288 |
2021 | 230 |
2022 | 212 |
2023 | 154 |
2024 | 58 |
Thereafter | 85 |
Total | 1,027 |
Facilities and Other [Member] | |
Schedule of Future Minimum Operating Lease Payments [Line Items] | |
2020 | 2,209 |
2021 | 2,033 |
2022 | 1,816 |
2023 | 1,625 |
2024 | 1,428 |
Thereafter | 7,977 |
Total | $ 17,088 |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | Aug. 31, 2019USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2020 (remainder) | $ 1,832 | |
2021 | 3,127 | |
2022 | 2,862 | |
2023 | 1,927 | |
2024 | 695 | |
Thereafter | 2,990 | |
Total | 13,433 | |
Aircraft And Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2020 (remainder) | 1,043 | |
2021 | 2,436 | |
2022 | 2,392 | |
2023 | 1,587 | |
2024 | 503 | |
Thereafter | 2,449 | |
Total | 10,410 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2020 (remainder) | 789 | [1] |
2021 | 691 | [1] |
2022 | 470 | [1] |
2023 | 340 | [1] |
2024 | 192 | [1] |
Thereafter | 541 | [1] |
Total | $ 3,023 | [1] |
[1] |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | Jun. 24, 2019air-craft | Aug. 31, 2019USD ($)air-craft |
Other Aircraft Commitments Disclosure [Abstract] | ||
Deposit and Progress Payments | $ | $ 611 | |
B767F [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Conditional Aircraft Commitments | 5 | |
Number of additional aircraft agreed to purchase options exercised | 6 | |
Aircraft expected to be delivered, fiscal year | 2022 | |
B777F [Member] | ||
Other Aircraft Commitments Disclosure [Abstract] | ||
Conditional Aircraft Commitments | 6 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 3 Months Ended |
Aug. 31, 2019air-craft | |
Schedule of Aircraft Commitments [Line Items] | |
2020 (remainder) | 14 |
2021 | 37 |
2022 | 39 |
2023 | 28 |
2024 | 24 |
Thereafter | 9 |
Total | 151 |
Cessna SkyCourier 408 [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2021 | 12 |
2022 | 12 |
2023 | 12 |
2024 | 14 |
Total | 50 |
ATR 72-600F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2021 | 5 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
Thereafter | 7 |
Total | 30 |
B767F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2020 (remainder) | 13 |
2021 | 18 |
2022 | 18 |
2023 | 6 |
Total | 55 |
B777F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2020 (remainder) | 1 |
2021 | 2 |
2022 | 3 |
2023 | 4 |
2024 | 4 |
Thereafter | 2 |
Total | 16 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | Aug. 31, 2019USD ($) |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Proceedings of environmental matters | $ 100,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information -Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest (net of capitalized interest) | $ 164 | $ 203 |
Income taxes | 55 | 93 |
Income tax refunds received | (12) | (3) |
Cash tax payments, net | $ 43 | $ 90 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Additional Information (Details) | Aug. 31, 2019USD ($) |
Guarantor Obligations [Abstract] | |
Debt Guarantee | $ 18,600,000,000 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Jun. 01, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
CURRENT ASSETS | |||||
Cash and cash equivalents | $ 2,389 | $ 2,319 | $ 2,369 | $ 3,265 | |
Receivables, less allowances | 9,312 | 9,116 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 1,316 | 1,651 | |||
Total current assets | 13,017 | 13,086 | |||
PROPERTY AND EQUIPMENT, AT COST | 61,436 | 59,511 | |||
Less accumulated depreciation and amortization | 29,826 | 29,082 | |||
Net property and equipment | 31,610 | 30,429 | |||
OPERATING LEASE RIGHT-OF-USE ASSETS | 13,819 | $ 14,100 | |||
GOODWILL | 6,821 | 6,884 | |||
OTHER ASSETS | 3,185 | 4,004 | |||
ASSETS | 68,452 | 54,403 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 35 | 964 | |||
Accrued salaries and employee benefits | 1,522 | 1,741 | |||
Accounts payable | 3,179 | 3,030 | |||
Operating lease liabilities | 1,896 | ||||
Accrued expenses | 3,303 | 3,278 | |||
Total current liabilities | 9,935 | 9,013 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 18,726 | 16,617 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 2,953 | 2,821 | |||
Operating lease liabilities | 12,137 | ||||
Other liabilities | 6,535 | 8,195 | |||
Total other long-term liabilities | 21,625 | 11,016 | |||
COMMON STOCKHOLDERS’ INVESTMENT | 18,166 | 17,757 | 19,173 | ||
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | 68,452 | 54,403 | |||
Consolidation Eliminations [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | (69) | (46) | (42) | (15) | |
Receivables, less allowances | (139) | (227) | |||
Total current assets | (208) | (273) | |||
INTERCOMPANY RECEIVABLE | (3,075) | (2,472) | |||
INVESTMENT IN SUBSIDIARIES | (39,409) | (39,174) | |||
OTHER ASSETS | (552) | (591) | |||
ASSETS | (43,244) | (42,510) | |||
CURRENT LIABILITIES | |||||
Accounts payable | (203) | (263) | |||
Accrued expenses | (6) | (10) | |||
Total current liabilities | (209) | (273) | |||
INTERCOMPANY PAYABLE | (3,074) | (2,472) | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | (552) | (591) | |||
Total other long-term liabilities | (552) | (591) | |||
COMMON STOCKHOLDERS’ INVESTMENT | (39,409) | (39,174) | |||
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | (43,244) | (42,510) | |||
Parent Company [Member] | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 684 | 826 | 938 | 1,485 | |
Receivables, less allowances | 335 | 56 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 40 | 366 | |||
Total current assets | 1,059 | 1,248 | |||
PROPERTY AND EQUIPMENT, AT COST | 26 | 25 | |||
Less accumulated depreciation and amortization | 17 | 17 | |||
Net property and equipment | 9 | 8 | |||
INTERCOMPANY RECEIVABLE | 3,003 | 2,877 | |||
OPERATING LEASE RIGHT-OF-USE ASSETS | 32 | ||||
INVESTMENT IN SUBSIDIARIES | 34,439 | 33,725 | |||
OTHER ASSETS | 984 | 995 | |||
ASSETS | 39,526 | 38,853 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 959 | ||||
Accrued salaries and employee benefits | 91 | 143 | |||
Accounts payable | 191 | 16 | |||
Operating lease liabilities | 4 | ||||
Accrued expenses | 512 | 521 | |||
Total current liabilities | 798 | 1,639 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 18,395 | 16,322 | |||
OTHER LONG-TERM LIABILITIES | |||||
Operating lease liabilities | 30 | ||||
Other liabilities | 2,137 | 3,135 | |||
Total other long-term liabilities | 2,167 | 3,135 | |||
COMMON STOCKHOLDERS’ INVESTMENT | 18,166 | 17,757 | |||
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | 39,526 | 38,853 | |||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 176 | 158 | 180 | 257 | |
Receivables, less allowances | 5,575 | 5,603 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 949 | 953 | |||
Total current assets | 6,700 | 6,714 | |||
PROPERTY AND EQUIPMENT, AT COST | 57,131 | 55,341 | |||
Less accumulated depreciation and amortization | 27,715 | 27,066 | |||
Net property and equipment | 29,416 | 28,275 | |||
INTERCOMPANY RECEIVABLE | 72 | (405) | |||
OPERATING LEASE RIGHT-OF-USE ASSETS | 11,538 | ||||
GOODWILL | 1,582 | 1,589 | |||
INVESTMENT IN SUBSIDIARIES | 4,970 | 5,449 | |||
OTHER ASSETS | 1,019 | 1,811 | |||
ASSETS | 55,297 | 43,433 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 26 | 2 | |||
Accrued salaries and employee benefits | 985 | 1,100 | |||
Accounts payable | 1,444 | 1,469 | |||
Operating lease liabilities | 1,445 | ||||
Accrued expenses | 1,895 | 1,853 | |||
Total current liabilities | 5,795 | 4,424 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 286 | 287 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 2,929 | 2,832 | |||
Operating lease liabilities | 10,257 | ||||
Other liabilities | 3,390 | 3,965 | |||
Total other long-term liabilities | 16,576 | 6,797 | |||
COMMON STOCKHOLDERS’ INVESTMENT | 32,640 | 31,925 | |||
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | 55,297 | 43,433 | |||
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | 1,598 | 1,381 | $ 1,293 | $ 1,538 | |
Receivables, less allowances | 3,541 | 3,684 | |||
Spare parts, supplies, fuel, prepaid expenses and other, less allowances | 327 | 332 | |||
Total current assets | 5,466 | 5,397 | |||
PROPERTY AND EQUIPMENT, AT COST | 4,279 | 4,145 | |||
Less accumulated depreciation and amortization | 2,094 | 1,999 | |||
Net property and equipment | 2,185 | 2,146 | |||
OPERATING LEASE RIGHT-OF-USE ASSETS | 2,249 | ||||
GOODWILL | 5,239 | 5,295 | |||
OTHER ASSETS | 1,734 | 1,789 | |||
ASSETS | 16,873 | 14,627 | |||
CURRENT LIABILITIES | |||||
Current portion of long-term debt | 9 | 3 | |||
Accrued salaries and employee benefits | 446 | 498 | |||
Accounts payable | 1,747 | 1,808 | |||
Operating lease liabilities | 447 | ||||
Accrued expenses | 902 | 914 | |||
Total current liabilities | 3,551 | 3,223 | |||
LONG-TERM DEBT, LESS CURRENT PORTION | 45 | 8 | |||
INTERCOMPANY PAYABLE | 3,074 | 2,472 | |||
OTHER LONG-TERM LIABILITIES | |||||
Deferred income taxes | 576 | 580 | |||
Operating lease liabilities | 1,850 | ||||
Other liabilities | 1,008 | 1,095 | |||
Total other long-term liabilities | 3,434 | 1,675 | |||
COMMON STOCKHOLDERS’ INVESTMENT | 6,769 | 7,249 | |||
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ 16,873 | $ 14,627 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Condensed Statement Of Income Captions [Line Items] | ||
REVENUES | $ 17,048 | $ 17,052 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 6,087 | 6,260 |
Purchased transportation | $ 4,028 | $ 3,967 |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ 920 | $ 823 |
Depreciation and amortization | 879 | 808 |
Fuel | 870 | 986 |
Maintenance and repairs | 768 | 735 |
Other | 2,519 | 2,402 |
OPERATING EXPENSES | 16,071 | 15,981 |
OPERATING INCOME | 977 | 1,071 |
OTHER (EXPENSE) INCOME: | ||
Interest, net | (137) | (127) |
Other retirement plans (expense) income | 168 | 158 |
Other, net | (12) | (1) |
INCOME BEFORE INCOME TAXES | 996 | 1,101 |
Provision for income taxes | 251 | 266 |
NET INCOME | 745 | 835 |
COMPREHENSIVE INCOME (LOSS) | 641 | 650 |
Consolidation Eliminations [Member] | ||
Condensed Statement Of Income Captions [Line Items] | ||
REVENUES | (86) | (102) |
OPERATING EXPENSES: | ||
Purchased transportation | $ (34) | $ (47) |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ (2) | $ (1) |
Other | (50) | (54) |
OPERATING EXPENSES | (86) | (102) |
OTHER (EXPENSE) INCOME: | ||
Equity in earnings of subsidiaries | (763) | (916) |
INCOME BEFORE INCOME TAXES | (763) | (916) |
NET INCOME | (763) | (916) |
COMPREHENSIVE INCOME (LOSS) | (763) | (916) |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
OPERATING EXPENSES: | ||
Salaries and employee benefits | $ 20 | $ 48 |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ 2 | $ 1 |
Intercompany charges, net | (78) | (111) |
Other | 56 | 62 |
OTHER (EXPENSE) INCOME: | ||
Equity in earnings of subsidiaries | 745 | 835 |
Interest, net | (151) | (143) |
Intercompany charges, net | 164 | 143 |
Other, net | (13) | |
INCOME BEFORE INCOME TAXES | 745 | 835 |
NET INCOME | 745 | 835 |
COMPREHENSIVE INCOME (LOSS) | 731 | 817 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement Of Income Captions [Line Items] | ||
REVENUES | 12,241 | 12,367 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 4,685 | 4,783 |
Purchased transportation | $ 2,543 | $ 2,380 |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ 712 | $ 631 |
Depreciation and amortization | 761 | 693 |
Fuel | 812 | 902 |
Maintenance and repairs | 684 | 646 |
Intercompany charges, net | (481) | (226) |
Other | 1,668 | 1,546 |
OPERATING EXPENSES | 11,384 | 11,355 |
OPERATING INCOME | 857 | 1,012 |
OTHER (EXPENSE) INCOME: | ||
Equity in earnings of subsidiaries | 18 | 81 |
Interest, net | 12 | 15 |
Other retirement plans (expense) income | 163 | 155 |
Intercompany charges, net | (120) | (122) |
Other, net | 16 | (10) |
INCOME BEFORE INCOME TAXES | 946 | 1,131 |
Provision for income taxes | 225 | 215 |
NET INCOME | 721 | 916 |
COMPREHENSIVE INCOME (LOSS) | 705 | 1,014 |
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Statement Of Income Captions [Line Items] | ||
REVENUES | 4,893 | 4,787 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 1,382 | 1,429 |
Purchased transportation | $ 1,519 | $ 1,634 |
Type of cost, good or service [extensible list] | us-gaap:ShippingAndHandlingMember | us-gaap:ShippingAndHandlingMember |
Rentals and landing fees | $ 208 | $ 192 |
Depreciation and amortization | 118 | 115 |
Fuel | 58 | 84 |
Maintenance and repairs | 84 | 89 |
Intercompany charges, net | 559 | 337 |
Other | 845 | 848 |
OPERATING EXPENSES | 4,773 | 4,728 |
OPERATING INCOME | 120 | 59 |
OTHER (EXPENSE) INCOME: | ||
Interest, net | 2 | 1 |
Other retirement plans (expense) income | 5 | 3 |
Intercompany charges, net | (44) | (21) |
Other, net | (15) | 9 |
INCOME BEFORE INCOME TAXES | 68 | 51 |
Provision for income taxes | 26 | 51 |
NET INCOME | 42 | |
COMPREHENSIVE INCOME (LOSS) | $ (32) | $ (265) |
Condensed Consolidating State_2
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Condensed Cash Flow Statements Captions [Line Items] | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ 565 | $ 701 |
INVESTING ACTIVITIES | ||
Capital expenditures | (1,418) | (1,179) |
Proceeds from asset dispositions and other | (1) | 78 |
Cash used in investing activities | (1,419) | (1,101) |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings, net | 299 | |
Proceeds from debt issuances | 2,093 | |
Principal payments on debt | (985) | (2) |
Proceeds from stock issuances | 12 | 25 |
Dividends paid | (170) | (173) |
Purchase of treasury stock | (3) | (625) |
Other, net | (5) | 4 |
Cash provided by (used in) financing activities | 942 | (472) |
Effect of exchange rate changes on cash | (18) | (24) |
Net increase (decrease) in cash and cash equivalents | 70 | (896) |
Cash and cash equivalents at beginning of period | 2,319 | 3,265 |
Cash and cash equivalents at end of period | 2,389 | 2,369 |
Consolidation Eliminations [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (23) | (27) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in cash and cash equivalents | (23) | (27) |
Cash and cash equivalents at beginning of period | (46) | (15) |
Cash and cash equivalents at end of period | (69) | (42) |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1,671) | 785 |
INVESTING ACTIVITIES | ||
Capital expenditures | (2) | |
Proceeds from asset dispositions and other | (10) | (5) |
Cash used in investing activities | (12) | (5) |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings, net | 299 | |
Net transfers from (to) Parent | 1,002 | (853) |
Payment on loan between subsidiaries | (434) | |
Proceeds from debt issuances | 2,093 | |
Principal payments on debt | (956) | |
Proceeds from stock issuances | 12 | 25 |
Dividends paid | (170) | (173) |
Purchase of treasury stock | (3) | (625) |
Other, net | (3) | |
Cash provided by (used in) financing activities | 1,541 | (1,327) |
Net increase (decrease) in cash and cash equivalents | (142) | (547) |
Cash and cash equivalents at beginning of period | 826 | 1,485 |
Cash and cash equivalents at end of period | 684 | 938 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,111 | (159) |
INVESTING ACTIVITIES | ||
Capital expenditures | (1,317) | (983) |
Proceeds from asset dispositions and other | 5 | 78 |
Cash used in investing activities | (1,312) | (905) |
FINANCING ACTIVITIES | ||
Net transfers from (to) Parent | (1,059) | 763 |
Intercompany dividends | 304 | 81 |
Principal payments on debt | (27) | |
Other, net | 148 | |
Cash provided by (used in) financing activities | (782) | 992 |
Effect of exchange rate changes on cash | 1 | (5) |
Net increase (decrease) in cash and cash equivalents | 18 | (77) |
Cash and cash equivalents at beginning of period | 158 | 257 |
Cash and cash equivalents at end of period | 176 | 180 |
Non-guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 148 | 102 |
INVESTING ACTIVITIES | ||
Capital expenditures | (99) | (196) |
Proceeds from asset dispositions and other | 4 | 5 |
Cash used in investing activities | (95) | (191) |
FINANCING ACTIVITIES | ||
Net transfers from (to) Parent | 57 | 90 |
Payment on loan between subsidiaries | 434 | |
Intercompany dividends | (304) | (81) |
Principal payments on debt | (2) | (2) |
Other, net | (2) | (144) |
Cash provided by (used in) financing activities | 183 | (137) |
Effect of exchange rate changes on cash | (19) | (19) |
Net increase (decrease) in cash and cash equivalents | 217 | (245) |
Cash and cash equivalents at beginning of period | 1,381 | 1,538 |
Cash and cash equivalents at end of period | $ 1,598 | $ 1,293 |