Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 31, 2020 | Sep. 11, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FEDEX CORPORATION | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-15829 | |
Entity Tax Identification Number | 62-1721435 | |
Entity Address, Address Line One | 942 South Shady Grove Road | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | TN | |
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 | 262,591,998 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock, Par Value $0.10 Per Share [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Security Exchange Name | NYSE | |
0.700% Notes Due 2022 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 22B | |
Title of 12(b) Security | 0.700% Notes due 2022 | |
Security Exchange Name | NYSE | |
1.000% Notes Due 2023 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 23A | |
Title of 12(b) Security | 1.000% Notes due 2023 | |
Security Exchange Name | NYSE | |
0.450% Notes Due 2025 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 25A | |
Title of 12(b) Security | 0.450% Notes due 2025 | |
Security Exchange Name | NYSE | |
1.625% Notes Due 2027 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 27 | |
Title of 12(b) Security | 1.625% Notes due 2027 | |
Security Exchange Name | NYSE | |
1.300% Notes Due 2031 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 31 | |
Title of 12(b) Security | 1.300% Notes due 2031 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,954 | $ 4,881 |
Receivables, less allowances of $485 and $390 | 10,508 | 10,102 |
Spare parts, supplies and fuel, less allowances of $337 and $335 | 593 | 572 |
Prepaid expenses and other | 848 | 828 |
Total current assets | 18,903 | 16,383 |
PROPERTY AND EQUIPMENT, AT COST | 66,446 | 65,024 |
Less accumulated depreciation and amortization | 32,184 | 31,416 |
Net property and equipment | 34,262 | 33,608 |
OTHER LONG-TERM ASSETS | ||
Operating lease right-of-use assets, net | 14,496 | 13,917 |
Goodwill | 6,633 | 6,372 |
Other assets | 3,354 | 3,257 |
Total other long-term assets | 24,483 | 23,546 |
ASSETS | 77,648 | 73,537 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 87 | 51 |
Accrued salaries and employee benefits | 1,756 | 1,569 |
Accounts payable | 3,339 | 3,269 |
Operating lease liabilities | 2,024 | 1,923 |
Accrued expenses | 3,989 | 3,532 |
Total current liabilities | 11,195 | 10,344 |
LONG-TERM DEBT, LESS CURRENT PORTION | 23,204 | 21,952 |
OTHER LONG-TERM LIABILITIES | ||
Deferred income taxes | 3,171 | 3,162 |
Pension, postretirement healthcare and other benefit obligations | 5,036 | 5,019 |
Self-insurance accruals | 2,147 | 2,104 |
Operating lease liabilities | 12,714 | 12,195 |
Other liabilities | 719 | 466 |
Total other long-term liabilities | 23,787 | 22,946 |
COMMITMENTS AND CONTINGENCIES | ||
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of August 31, 2020 and May 31, 2020 | 32 | 32 |
Additional paid-in capital | 3,375 | 3,356 |
Retained earnings | 26,108 | 25,216 |
Accumulated other comprehensive loss | (1,020) | (1,147) |
Treasury stock, at cost | (9,033) | (9,162) |
Total common stockholders’ investment | 19,462 | 18,295 |
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ 77,648 | $ 73,537 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
CURRENT ASSETS | ||
Allowances for receivables | $ 485 | $ 390 |
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, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUE | $ 19,321 | $ 17,048 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 6,852 | 6,087 |
Purchased transportation | 4,977 | 4,028 |
Rentals and landing fees | 936 | 920 |
Depreciation and amortization | 926 | 879 |
Fuel | 565 | 870 |
Maintenance and repairs | 806 | 768 |
Other | 2,669 | 2,519 |
OPERATING EXPENSES | 17,731 | 16,071 |
OPERATING INCOME | 1,590 | 977 |
OTHER INCOME (EXPENSE): | ||
Interest, net | (184) | (137) |
Other retirement plans income | 201 | 168 |
Other, net | (1) | (12) |
OTHER INCOME (EXPENSE) | 16 | 19 |
INCOME BEFORE INCOME TAXES | 1,606 | 996 |
PROVISION FOR INCOME TAXES | 361 | 251 |
NET INCOME | $ 1,245 | $ 745 |
EARNINGS PER COMMON SHARE: | ||
Basic | $ 4.75 | $ 2.86 |
Diluted | 4.72 | 2.84 |
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, 2020 | Aug. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
NET INCOME | $ 1,245 | $ 745 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustments, net of tax benefit of $2 in 2020 and $3 in 2019 | 129 | (83) |
Amortization of prior service credit, net of tax benefit of $1 in 2020 and $6 in 2019 | (2) | (21) |
Other comprehensive income (loss) | 127 | (104) |
COMPREHENSIVE INCOME | $ 1,372 | $ 641 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Other Comprehensive Income, Tax Amounts | ||
Foreign currency translation adjustments, tax expense (benefit) | $ (2) | $ (3) |
Amortization of prior service credit, tax benefit | $ 1 | $ 6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Operating Activities: | ||
Net income | $ 1,245 | $ 745 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 926 | 879 |
Provision for uncollectible accounts | 143 | 105 |
Stock-based compensation | 75 | 67 |
Other noncash items and deferred income taxes | 531 | 694 |
Changes in assets and liabilities: | ||
Receivables | (387) | (267) |
Other assets | (30) | (118) |
Accounts payable and other liabilities | 198 | (1,537) |
Other, net | (50) | (3) |
Cash provided by operating activities | 2,651 | 565 |
Investing Activities: | ||
Capital expenditures | (1,424) | (1,418) |
Proceeds from asset dispositions and other | 6 | (1) |
Cash used in investing activities | (1,418) | (1,419) |
Financing Activities: | ||
Principal payments on debt | (45) | (985) |
Proceeds from debt issuances | 959 | 2,093 |
Proceeds from stock issuances | 82 | 12 |
Dividends paid | (170) | (170) |
Purchase of treasury stock | (3) | |
Other, net | (1) | (5) |
Cash provided by financing activities | 825 | 942 |
Effect of exchange rate changes on cash | 15 | (18) |
Net increase in cash and cash equivalents | 2,073 | 70 |
Cash and cash equivalents at beginning of period | 4,881 | 2,319 |
Cash and cash equivalents at end of period | $ 6,954 | $ 2,389 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Common Stockholders' Investment - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | ||
Beginning Balance | $ 18,295 | ||
Net income | 1,245 | $ 745 | |
Other comprehensive income, net of tax (expense)/benefit | 127 | (104) | |
Ending Balance | 19,462 | 18,166 | |
Common Stock | |||
Beginning Balance | 32 | 32 | |
Ending Balance | 32 | 32 | |
Additional Paid-In Capital | |||
Beginning Balance | 3,356 | 3,231 | |
Employee incentive plans and other | 19 | 26 | |
Ending Balance | 3,375 | 3,257 | |
Retained Earnings | |||
Beginning Balance | 25,216 | 24,648 | |
Net income | 1,245 | 745 | |
Cash dividends declared | (341) | (339) | |
Employee incentive plans and other | (12) | (2) | |
Ending Balance | 26,108 | 25,048 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 and 2018-02 | |||
Beginning Balance | [1] | (4) | |
Accumulated Other Comprehensive Income | |||
Beginning Balance | (1,147) | (865) | |
Other comprehensive income, net of tax (expense)/benefit | 127 | (104) | |
Ending Balance | (1,020) | (918) | |
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 | (9,162) | (9,289) | |
Purchase of treasury stock | (3) | ||
Employee incentive plans and other | 129 | 39 | |
Ending Balance | $ (9,033) | $ (9,253) | |
[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, 2020 | Aug. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends declared, per share | $ 1.30 | $ 1.30 |
Other comprehensive income, tax (expense)/benefit | $ 3 | $ 9 |
Purchase of treasury stock | 0 | 20,000 |
Employee incentive plans and other, shares issued | 1,000,000 | 300,000 |
General
General | 3 Months Ended |
Aug. 31, 2020 | |
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, 2020 (“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, 2020, and the results of our operations for the three-month periods ended August 31, 2020 and 2019, cash flows for the three-month periods ended August 31, 2020 and 2019, and changes in common stockholders’ investment for the three-month periods ended August 31, 2020 and 2019. Operating results for the three-month period ended August 31, 2020 are not necessarily indicative of the results that may be expected for the year ending May 31, 2021. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2021 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit shipments, 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 shipments totaled $620 million and $563 million at August 31, 2020 and May 31, 2020, respectively. Contract assets net of deferred unearned revenue were $450 million and $456 million at August 31, 2020 and May 31, 2020, 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 $9 million and $10 million at August 31, 2020 and May 31, 2020, 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 (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 2020 2019 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,861 $ 1,866 U.S. overnight envelope 426 479 U.S. deferred 1,096 956 Total U.S. domestic package revenue 3,383 3,301 International priority 2,317 1,817 International economy 616 855 Total international export package revenue 2,933 2,672 International domestic (1) 1,088 1,076 Total package revenue 7,404 7,049 Freight: U.S. 833 695 International priority 653 464 International economy 371 516 International airfreight 75 66 Total freight revenue 1,932 1,741 Other 311 155 Total FedEx Express segment 9,647 8,945 FedEx Ground segment 7,040 5,179 FedEx Freight segment 1,826 1,905 FedEx Services segment 8 4 Other and eliminations (2) 800 1,015 $ 19,321 $ 17,048 (1) International domestic revenue relates 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. 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, a small number of our employees are members of unions. 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 outstanding incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense was $75 million for the three-month period ended August 31, 2020 and $67 million for the three-month period ended August 31, 2019. 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 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. As of August 31, 2020, we had €640 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of August 31, 2020, the hedge remains 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 June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 that amends the impairment model for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables, to utilize an expected loss methodology in place of the incurred loss methodology. We adopted this standard effective June 1, 2020 (fiscal 2021). We updated our process for estimating the expected credit loss to include a review of forecasted information that may impact expected collectability over the lifetime of the asset. See Note 2 for additional information. The adoption of this standard did not have a material impact 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. We adopted this standard effective June 1, 2020 (fiscal 2021) and applied these changes prospectively. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective June 1, 2021 (fiscal 2022). We adopted this standard effective June 1, 2020 (fiscal 2021). The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. New Accounting Standards and Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU 2020-06 that changes how entities account for convertible instruments and contracts in an entity’s own equity. These changes will be effective June 1, 2022 (fiscal 2023). 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 approved a stock repurchase program of up to 25 million shares. We did not repurchase any shares of FedEx common stock during the first quarter of 2021. As of August 31, 2020, 5.1 million shares remained under the stock repurchase authorization. Shares under the current repurchase program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock and general market conditions. No time limit was set for the completion of the program, and the program may be suspended or discontinued at any time. During 2020, we amended our amended and restated $2.0 billion five-year credit agreement (the “Five-Year Credit Agreement”) and our $1.5 billion 364-day credit agreement (the “364-Day Credit Agreement” and together with the Five-Year Credit Agreement, the “Credit Agreements”). The amendments to the Credit Agreements, among other things, temporarily restrict us from repurchasing any shares of our common stock between May 27, 2020 and May 31, 2021. See Note 4 for more information on the amendments to the Credit Agreements. DIVIDENDS DECLARED PER COMMON SHARE. On August 14, 2020, our Board of Directors declared a quarterly dividend of $0.65 per share of common stock. The dividend will be paid on October 1, 2020 to stockholders of record as of the close of business on September 4, 2020. 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. The amendments to the Credit Agreements discussed above under “Treasury Shares” temporarily restrict us from increasing the amount of our quarterly dividend payable per share of common stock from $0.65 per share between May 27, 2020 and May 31, 2021. There are no other material restrictions on our ability to declare dividends, nor are there any material restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances. |
Credit Losses
Credit Losses | 3 Months Ended |
Aug. 31, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | (2) Credit Losses We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecasted information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly, considering recent write-offs and collections information and underlying economic expectations. Our allowance for credit losses was $175 million at May 31, 2020. Credit losses charged to expense for the quarters ended August 31, 2020 and 2019, were $143 million and $105 million, respectively. Our allowance for credit losses as of August 31, 2020 is $222 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | (3) Accumulated Other Comprehensive Loss The following table provides changes in accumulated other comprehensive income (“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): 2020 2019 Foreign currency translation loss: Balance at beginning of period $ (1,207 ) $ (954 ) Translation adjustments 129 (83 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 — 1 Balance at end of period (1,078 ) (1,036 ) Retirement plans adjustments: Balance at beginning of period 60 89 Reclassifications from AOCI (2 ) (21 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 — 50 Balance at end of period 58 118 Accumulated other comprehensive (loss) at end of period $ (1,020 ) $ (918 ) 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 2020 2019 Amortization of retirement plans prior service credits, before tax $ 3 $ 27 Other retirement plans (expense) income Income tax benefit (1 ) (6 ) Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 21 Net income |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Aug. 31, 2020 | |
Debt And Capital Lease Obligations [Abstract] | |
Financing Arrangements | (4) 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 and allows pass through trusts formed by FedEx Express to sell, in one or more future offerings, pass through certificates. During August 2020, FedEx Express issued $970 million of Pass Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due in February 2034 utilizing pass through trusts (the “Trusts”). The Certificates are secured by 19 Boeing aircraft with a net book value of $1.9 billion at August 31, 2020. The payment obligations of FedEx Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx. FedEx Express is using the proceeds from the issuance for general corporate purposes. Each Trust meets the definition of a variable interest entity, or VIE, as defined in the Consolidations make interest and principal payments , which are fully and unconditionally guaranteed by FedEx, and is not the primary beneficiary of the T rusts . Based on this analysis, we determined that we are not required to consolidate the T rust s . We have a $2.0 billion Five-Year Information regarding changes to the ratio of debt to adjusted EBITDA required to be maintained under the Credit Agreements through the fourth quarter of 2021 is provided in our Annual Report. As of August 31, 2020, no commercial paper was outstanding and $0.3 million in letters of credit were outstanding, leaving $3.5 billion available under the Credit Agreements for future borrowings. Outstanding commercial paper reduces the amount available to borrow under the Credit Agreements. Long-term debt, including current maturities and exclusive of finance leases, had carrying values of $22.8 billion at August 31, 2020 and $21.5 billion at May 31, 2020, compared with estimated fair values of $26.0 billion at August 31, 2020 and $22.8 billion at May 31, 2020. The annualized weighted-average interest rate on long-term debt was 3.5% at August 31, 2020. 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, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | (5) 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): 2020 2019 Basic earnings per common share: Net earnings allocable to common shares (1) $ 1,243 $ 744 Weighted-average common shares 262 260 Basic earnings per common share $ 4.75 $ 2.86 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 1,243 $ 744 Weighted-average common shares 262 260 Dilutive effect of share-based awards 1 2 Weighted-average diluted shares 263 262 Diluted earnings per common share $ 4.72 $ 2.84 Anti-dilutive options excluded from diluted earnings per common share 9.0 10.9 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Aug. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | (6) Retirement Plans We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report. Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions): 2020 2019 Defined benefit pension plans, net $ 25 $ 37 Defined contribution plans 159 142 Postretirement healthcare plans 21 22 $ 205 $ 201 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 2020 2019 2020 2019 2020 2019 Service cost $ 213 $ 192 $ 23 $ 24 $ 11 $ 11 Other retirement plans (income) expense: Interest cost 240 250 10 11 10 11 Expected return on plan assets (446 ) (400 ) (12 ) (13 ) — — Amortization of prior service credit and other (2 ) (27 ) (1 ) — — — (208 ) (177 ) (3 ) (2 ) 10 11 $ 5 $ 15 $ 20 $ 22 $ 21 $ 22 For 2021, no pension contributions are required for our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) as they are fully funded under the Employee Retirement Income Security Act. We made voluntary contributions to our U.S. Pension Plans of $1.0 billion during the first quarter of 2020. In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all-401-(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the Portable Pension Account (“PPA”) pension formula will be given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its match of up to 3.5%, or to cease receiving compensation credits under the pension plan and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure become effective beginning January 1, 2022. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Aug. 31, 2020 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Business Segment Information | (7) Business Segment Information We provide a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the respected FedEx brand. Our primary operating companies are FedEx Express, including TNT Express B.V. (“TNT Express”), the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight 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 Custom Critical, Inc. (time-critical transportation) FedEx Cross Border Holdings, Inc. (“FedEx Cross Border”) (cross-border e-commerce technology and e-commerce transportation solutions) 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, 2020, the results of FedEx Cross Border are included in the FedEx Express segment prospectively as the impact to prior periods was not material. 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 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 operating 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 revenue 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, 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 revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue 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 revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the three-month periods ended August 31 (in millions): 2020 2019 Revenue: FedEx Express segment $ 9,647 $ 8,945 FedEx Ground segment 7,040 5,179 FedEx Freight segment 1,826 1,905 FedEx Services segment 8 4 Other and eliminations 800 1,015 $ 19,321 $ 17,048 Operating income (loss): FedEx Express segment $ 710 $ 285 FedEx Ground segment 834 644 FedEx Freight segment 274 194 Corporate, other and eliminations (228 ) (146 ) $ 1,590 $ 977 |
Commitments
Commitments | 3 Months Ended |
Aug. 31, 2020 | |
Commitments [Abstract] | |
Commitments | (8) Commitments As of August 31, 2020, our purchase commitments under various contracts for the remainder of 2021 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2021 (remainder) $ 1,180 $ 782 $ 1,962 2022 2,166 670 2,836 2023 2,423 460 2,883 2024 1,015 302 1,317 2025 621 226 847 Thereafter 2,716 397 3,113 Total $ 10,121 $ 2,837 $ 12,958 (1) Primarily equipment and advertising contracts. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of August 31, 2020, our obligation to purchase six Boeing 777 Freighter (“B777F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. During the first quarter of 2021, FedEx Express executed a contract amendment rescheduling Boeing 767-300 Freighter (“B767F”) aircraft deliveries as follows: 2021 – 18 aircraft; 2022 – 11 aircraft; 2023 – 13 aircraft; and 2024 – 4 aircraft. As of August 31, 2020, we had $632 million in deposits and progress Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2021 (remainder) — 4 13 — 17 2022 9 7 11 5 32 2023 12 6 13 2 33 2024 12 6 4 4 26 2025 12 6 — 2 20 Thereafter 5 1 — — 6 Total 50 30 41 13 134 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, 2020 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases Finance Leases Total Leases 2021 (remainder) $ 200 $ 1,661 $ 1,861 $ 48 $ 1,909 2022 229 2,120 2,349 27 2,376 2023 198 1,905 2,103 25 2,128 2024 102 1,672 1,774 24 1,798 2025 69 1,466 1,535 24 1,559 Thereafter 258 7,335 7,593 706 8,299 Total lease payments 1,056 16,159 17,215 854 18,069 Less imputed interest (85 ) (2,392 ) (2,477 ) (381 ) (2,858 ) Present value of lease liability $ 971 $ 13,767 $ 14,738 $ 473 $ 15,211 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 of August 31, 2020, 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 $1.1 billion, and will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2021 to 2022. |
Contingencies
Contingencies | 3 Months Ended |
Aug. 31, 2020 | |
Loss Contingency [Abstract] | |
Contingencies | (9) Contingencies Service Provider Lawsuits . FedEx Ground is defending lawsuits in which it is alleged that FedEx Ground should be treated as a joint employer of 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 these matters could, among other things, entitle 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 FedEx Ground is not an employer or joint employer of the drivers of these independent businesses. Federal Securities Litigation and Derivative Lawsuits . 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, which have been consolidated, 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. On September 17, 2019 and November 6, 2019, FedEx, its Board of Directors and certain present and former directors and officers were named as defendants in two stockholder derivative lawsuits filed in the U.S. District Court for the District of Delaware. The complaints, which were subsequently consolidated, repeated the allegations in the federal securities litigation complaints, and asserted new claims against the FedEx Board of Directors and certain present and former directors and officers for breach of fiduciary duty, waste of corporate assets, unjust enrichment, insider selling and violations of the federal securities laws. On June 24, 2020, the consolidated lawsuit was dismissed with prejudice. The plaintiff did not appeal the dismissal by the July 24, 2020 deadline. Derivative Lawsuit Related to New York Cigarette Litigation . On October 3, 2019, FedEx and certain present and former FedEx directors and officers were named as defendants in a stockholder derivative lawsuit filed in the Delaware Court of Chancery. The complaint alleges the defendants breached their fiduciary duties in connection with the activities alleged in lawsuits filed by the City of New York and the State of New York against FedEx Ground in December 2013 and November 2014 and against FedEx Ground and FedEx Freight in July 2017. The underlying lawsuits related to the alleged shipment of cigarettes to New York residents in contravention of several statutes, as well as common law nuisance claims, and were dismissed by the court in December 2018 following entry into a final settlement agreement for approximately $35 million. The settlement did not include any admission of liability by FedEx Ground or FedEx Freight. In addition to the settlement amount, we recognized approximately $10 million for certain attorney’s fees in connection with the underlying lawsuits. 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 lawsuit. On August 14, 2019, a separate stockholder derivative lawsuit alleging similar breaches of fiduciary duty was filed in the Delaware Court of Chancery. The plaintiff voluntarily dismissed this lawsuit on June 25, 2020. 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. Prior to our acquisition of TNT Express, a lawsuit was filed in Simões Filho, Bahia, Brazil against a subsidiary of TNT Express alleging violations of Brazilian environmental laws. Specifically, the lawsuit alleges that in 2012, certain employees unlawfully discarded non-toxic trash on a highway. We could be subject to monetary sanctions and fines related to such activity that exceed $100,000. We believe that the aggregate amount of any such sanctions and fines will be immaterial. 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, as well as lawsuits containing allegations that FedEx and its subsidiaries are responsible for third-party losses related to vehicle accidents that could exceed our insurance coverage for such losses. 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, 2020 | |
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): 2020 2019 Cash payments for: Interest (net of capitalized interest) $ 182 $ 164 Income taxes $ 134 $ 55 Income tax refunds received (11 ) (12 ) Cash tax (refunds) payments, net $ 123 $ 43 |
General (Policies)
General (Policies) | 3 Months Ended |
Aug. 31, 2020 | |
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, 2020 (“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, 2020, and the results of our operations for the three-month periods ended August 31, 2020 and 2019, cash flows for the three-month periods ended August 31, 2020 and 2019, and changes in common stockholders’ investment for the three-month periods ended August 31, 2020 and 2019. Operating results for the three-month period ended August 31, 2020 are not necessarily indicative of the results that may be expected for the year ending May 31, 2021. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2021 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. |
Revenue Recognition | REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit shipments, 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 shipments totaled $620 million and $563 million at August 31, 2020 and May 31, 2020, respectively. Contract assets net of deferred unearned revenue were $450 million and $456 million at August 31, 2020 and May 31, 2020, 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 $9 million and $10 million at August 31, 2020 and May 31, 2020, 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 (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 2020 2019 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,861 $ 1,866 U.S. overnight envelope 426 479 U.S. deferred 1,096 956 Total U.S. domestic package revenue 3,383 3,301 International priority 2,317 1,817 International economy 616 855 Total international export package revenue 2,933 2,672 International domestic (1) 1,088 1,076 Total package revenue 7,404 7,049 Freight: U.S. 833 695 International priority 653 464 International economy 371 516 International airfreight 75 66 Total freight revenue 1,932 1,741 Other 311 155 Total FedEx Express segment 9,647 8,945 FedEx Ground segment 7,040 5,179 FedEx Freight segment 1,826 1,905 FedEx Services segment 8 4 Other and eliminations (2) 800 1,015 $ 19,321 $ 17,048 (1) International domestic revenue relates 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. |
Employees Under Collective Bargaining Arrangements | 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, a small number of our employees are members of unions. |
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 outstanding incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense was $75 million for the three-month period ended August 31, 2020 and $67 million for the three-month period ended August 31, 2019. 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 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. As of August 31, 2020, we had €640 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of August 31, 2020, the hedge remains effective. |
General (Tables)
General (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Service Type | The following table provides revenue by service type (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 2020 2019 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 1,861 $ 1,866 U.S. overnight envelope 426 479 U.S. deferred 1,096 956 Total U.S. domestic package revenue 3,383 3,301 International priority 2,317 1,817 International economy 616 855 Total international export package revenue 2,933 2,672 International domestic (1) 1,088 1,076 Total package revenue 7,404 7,049 Freight: U.S. 833 695 International priority 653 464 International economy 371 516 International airfreight 75 66 Total freight revenue 1,932 1,741 Other 311 155 Total FedEx Express segment 9,647 8,945 FedEx Ground segment 7,040 5,179 FedEx Freight segment 1,826 1,905 FedEx Services segment 8 4 Other and eliminations (2) 800 1,015 $ 19,321 $ 17,048 (1) International domestic revenue relates 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, 2020 | |
Accumulated Other Comprehensive Income Loss Tables [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI") | The following table provides changes in accumulated other comprehensive income (“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): 2020 2019 Foreign currency translation loss: Balance at beginning of period $ (1,207 ) $ (954 ) Translation adjustments 129 (83 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 — 1 Balance at end of period (1,078 ) (1,036 ) Retirement plans adjustments: Balance at beginning of period 60 89 Reclassifications from AOCI (2 ) (21 ) Reclassification to retained earnings due to the adoption of ASU 2018-02 — 50 Balance at end of period 58 118 Accumulated other comprehensive (loss) at end of period $ (1,020 ) $ (918 ) |
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 2020 2019 Amortization of retirement plans prior service credits, before tax $ 3 $ 27 Other retirement plans (expense) income Income tax benefit (1 ) (6 ) Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 21 Net income |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
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): 2020 2019 Basic earnings per common share: Net earnings allocable to common shares (1) $ 1,243 $ 744 Weighted-average common shares 262 260 Basic earnings per common share $ 4.75 $ 2.86 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 1,243 $ 744 Weighted-average common shares 262 260 Dilutive effect of share-based awards 1 2 Weighted-average diluted shares 263 262 Diluted earnings per common share $ 4.72 $ 2.84 Anti-dilutive options excluded from diluted earnings per common share 9.0 10.9 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
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): 2020 2019 Defined benefit pension plans, net $ 25 $ 37 Defined contribution plans 159 142 Postretirement healthcare plans 21 22 $ 205 $ 201 |
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 2020 2019 2020 2019 2020 2019 Service cost $ 213 $ 192 $ 23 $ 24 $ 11 $ 11 Other retirement plans (income) expense: Interest cost 240 250 10 11 10 11 Expected return on plan assets (446 ) (400 ) (12 ) (13 ) — — Amortization of prior service credit and other (2 ) (27 ) (1 ) — — — (208 ) (177 ) (3 ) (2 ) 10 11 $ 5 $ 15 $ 20 $ 22 $ 21 $ 22 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Schedule of Segment Information | The following table provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the three-month periods ended August 31 (in millions): 2020 2019 Revenue: FedEx Express segment $ 9,647 $ 8,945 FedEx Ground segment 7,040 5,179 FedEx Freight segment 1,826 1,905 FedEx Services segment 8 4 Other and eliminations 800 1,015 $ 19,321 $ 17,048 Operating income (loss): FedEx Express segment $ 710 $ 285 FedEx Ground segment 834 644 FedEx Freight segment 274 194 Corporate, other and eliminations (228 ) (146 ) $ 1,590 $ 977 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | As of August 31, 2020, our purchase commitments under various contracts for the remainder of 2021 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2021 (remainder) $ 1,180 $ 782 $ 1,962 2022 2,166 670 2,836 2023 2,423 460 2,883 2024 1,015 302 1,317 2025 621 226 847 Thereafter 2,716 397 3,113 Total $ 10,121 $ 2,837 $ 12,958 (1) Primarily equipment and advertising contracts. |
Schedule of Aircraft Purchase Commitments | The following table is a summary of the key aircraft we are committed to purchase as of August 31, 2020 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2021 (remainder) — 4 13 — 17 2022 9 7 11 5 32 2023 12 6 13 2 33 2024 12 6 4 4 26 2025 12 6 — 2 20 Thereafter 5 1 — — 6 Total 50 30 41 13 134 |
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, 2020 is as follows (in millions): Aircraft and Related Equipment Facilities and Other Total Operating Leases Finance Leases Total Leases 2021 (remainder) $ 200 $ 1,661 $ 1,861 $ 48 $ 1,909 2022 229 2,120 2,349 27 2,376 2023 198 1,905 2,103 25 2,128 2024 102 1,672 1,774 24 1,798 2025 69 1,466 1,535 24 1,559 Thereafter 258 7,335 7,593 706 8,299 Total lease payments 1,056 16,159 17,215 854 18,069 Less imputed interest (85 ) (2,392 ) (2,477 ) (381 ) (2,858 ) Present value of lease liability $ 971 $ 13,767 $ 14,738 $ 473 $ 15,211 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
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): 2020 2019 Cash payments for: Interest (net of capitalized interest) $ 182 $ 164 Income taxes $ 134 $ 55 Income tax refunds received (11 ) (12 ) Cash tax (refunds) payments, net $ 123 $ 43 |
General - Additional Informatio
General - Additional Information (Details) $ / shares in Units, € in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2020USD ($)$ / sharesshares | Aug. 31, 2019USD ($)shares | May 31, 2020USD ($) | Aug. 31, 2020EUR (€)shares | Jan. 26, 2016shares | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Gross contract assets related to in-transit shipments | $ 620,000,000 | $ 563,000,000 | |||
Contract assets net of deferred unearned revenue | 450,000,000 | 456,000,000 | |||
Contract liabilities related to advance payments from customers | 9,000,000 | 10,000,000 | |||
Stock-based compensation | $ 75,000,000 | $ 67,000,000 | $ 67,000,000 | ||
Denominated debt as a net investment hedge | € | € 640 | ||||
Stock repurchase program number of shares authorized to be repurchased | shares | 25,000,000 | ||||
Number of shares repurchased | shares | 0 | 20,000 | |||
Stock repurchase program, remaining number of shares authorized to be repurchased | shares | 5,100,000 | 5,100,000 | |||
Dividends payable, date declared | Aug. 14, 2020 | ||||
Dividends payable amount per share | $ / shares | $ 0.65 | ||||
Dividends payable, date to be paid | Oct. 1, 2020 | ||||
Dividends payable, date of record | Sep. 4, 2020 | ||||
Amended and Restated Five-Year Credit Agreement [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 2,000,000,000 | ||||
Amended and Restated 364-Day Credit Agreement [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 1,500,000,000 | ||||
Line of credit facility, term | 364 days | ||||
ASU 2016-13 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Change in accounting principle, ASU adopted | true | true | |||
Change in accounting principle, ASU adoption date | Jun. 1, 2020 | Jun. 1, 2020 | |||
Change in accounting principle, ASU immaterial effect | true | true | |||
ASU 2018-15 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Change in accounting principle, ASU adopted | true | true | |||
Change in accounting principle, ASU adoption date | Jun. 1, 2020 | Jun. 1, 2020 | |||
Change in accounting principle, ASU immaterial effect | true | true | |||
ASU 2019-12 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Change in accounting principle, ASU adopted | true | true | |||
Change in accounting principle, ASU adoption date | Jun. 1, 2020 | Jun. 1, 2020 | |||
Change in accounting principle, ASU immaterial effect | true | true |
General - Schedule of Revenue b
General - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | ||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | $ 19,321 | $ 17,048 | |
Operating Segments | FedEx Express Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 9,647 | 8,945 | |
Operating Segments | FedEx Express Segment [Member] | U.S. overnight box [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,861 | 1,866 | |
Operating Segments | FedEx Express Segment [Member] | U.S. overnight envelope [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 426 | 479 | |
Operating Segments | FedEx Express Segment [Member] | U.S. deferred [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,096 | 956 | |
Operating Segments | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 3,383 | 3,301 | |
Operating Segments | FedEx Express Segment [Member] | International priority [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,317 | 1,817 | |
Operating Segments | FedEx Express Segment [Member] | International economy [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 616 | 855 | |
Operating Segments | FedEx Express Segment [Member] | Total international export package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,933 | 2,672 | |
Operating Segments | FedEx Express Segment [Member] | International domestic [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [1] | 1,088 | 1,076 |
Operating Segments | FedEx Express Segment [Member] | Total package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 7,404 | 7,049 | |
Operating Segments | FedEx Express Segment [Member] | U.S. freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 833 | 695 | |
Operating Segments | FedEx Express Segment [Member] | International priority freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 653 | 464 | |
Operating Segments | FedEx Express Segment [Member] | International Economy Freight | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 371 | 516 | |
Operating Segments | FedEx Express Segment [Member] | International Airfreight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 75 | 66 | |
Operating Segments | FedEx Express Segment [Member] | Total freight revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,932 | 1,741 | |
Operating Segments | FedEx Express Segment [Member] | Other [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 311 | 155 | |
Operating Segments | FedEx Ground Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 7,040 | 5,179 | |
Operating Segments | FedEx Freight Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,826 | 1,905 | |
Operating Segments | FedEx Services Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 8 | 4 | |
Other and eliminations [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [2] | $ 800 | $ 1,015 |
[1] | International domestic revenue relates 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. |
Credit Losses - Additional Info
Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2020 | |
Credit Loss [Abstract] | |||
Allowance for credit losses | $ 222 | $ 175 | |
Credit losses charged to expense | $ 143 | $ 105 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 18,295 | ||
Translation adjustments | 129 | $ (83) | |
Ending Balance | 19,462 | 18,166 | |
Foreign Currency Translation Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (1,207) | (954) | |
Translation adjustments | 129 | (83) | |
Ending Balance | (1,078) | (1,036) | |
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 | 60 | 89 | |
Reclassifications from AOCI | (2) | (21) | |
Ending Balance | 58 | 118 | |
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 | (1,147) | (865) | |
Ending Balance | $ (1,020) | (918) | |
Accumulated Other Comprehensive (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] | $ 51 | |
[1] | Relates to the adoption of ASU 2018-02. |
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, 2020 | Aug. 31, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Other retirement plans (expense) income | $ 3 | $ 27 |
Provision for income taxes | (1) | (6) |
Net income | $ 2 | $ 21 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) | 3 Months Ended | |
Aug. 31, 2020USD ($)air-craft | May 31, 2020USD ($) | |
Line Of Credit Facility [Line Items] | ||
Number of Boeing aircraft | air-craft | 19 | |
Net book value of Boeing aircraft | $ 1,900,000,000 | |
Letter of credit maximum sublimit amount | $ 250,000,000 | |
Financial Covenant Terms Ratio | 475.00% | |
Financial covenant compliance ratio | 290.00% | |
Commercial paper outstanding | $ 0 | |
Letters Of Credit Outstanding | 300,000 | |
Long term debt, including current maturities and exclusive of finance leases carrying value | 22,800,000,000 | $ 21,500,000,000 |
Long term debt, including current maturities and exclusive of finance leases fair value | $ 26,000,000,000 | $ 22,800,000,000 |
Long-term debt weighted-average interest rate | 3.50% | |
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 | 2025-03 | |
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 | 2021-03 | |
Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility outstanding for future borrowings | $ 3,500,000,000 | |
1.875% due in February 2034 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 970,000,000 | |
Fixed interest rate | 1.875% | |
Debt instrument, maturity date | 2034-02 |
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, 2020 | Aug. 31, 2019 | ||
Basic earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 1,243 | $ 744 |
Weighted-average common shares | 262 | 260 | |
Basic earnings (loss) per common share | $ 4.75 | $ 2.86 | |
Diluted earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 1,243 | $ 744 |
Weighted-average common shares | 262 | 260 | |
Dilutive effect of share-based awards | 1 | 2 | |
Weighted-average diluted shares | 263 | 262 | |
Diluted earnings (loss) per common share | $ 4.72 | $ 2.84 | |
Anti-dilutive options excluded from diluted earnings per common share | 9 | 10.9 | |
[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, 2020 | Aug. 31, 2019 | |
Pension And Other Postretirement Benefit Expense [Abstract] | ||
Defined benefit pension plans, net | $ 25 | $ 37 |
Defined contribution plans | 159 | 142 |
Postretirement healthcare plans | 21 | 22 |
Retirement plans costs | $ 205 | $ 201 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Pension Plans [Member] | U.S. Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | $ 213 | $ 192 |
Other retirement plans (income) expense: | ||
Interest cost | 240 | 250 |
Expected return on plan assets | (446) | (400) |
Amortization of prior service credit and other | (2) | (27) |
Other retirement plans (income) expense | (208) | (177) |
Net periodic benefit cost | 5 | 15 |
Pension Plans [Member] | International Pension Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 23 | 24 |
Other retirement plans (income) expense: | ||
Interest cost | 10 | 11 |
Expected return on plan assets | (12) | (13) |
Amortization of prior service credit and other | (1) | |
Other retirement plans (income) expense | (3) | (2) |
Net periodic benefit cost | 20 | 22 |
Postretirement Healthcare Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 11 | 11 |
Other retirement plans (income) expense: | ||
Interest cost | 10 | 11 |
Other retirement plans (income) expense | 10 | 11 |
Net periodic benefit cost | $ 21 | $ 22 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) plan description | In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We will introduce an all-401-(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the Portable Pension Account (“PPA”) pension formula will be given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its match of up to 3.5%, or to cease receiving compensation credits under the pension plan and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure become effective beginning January 1, 2022. While this new program will provide employees greater flexibility and reduce our long-term pension costs, it will not have a material impact on current or near-term financial results. | ||
Future Plan Structure [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contributions to eligible employees | 8.00% | ||
Current Plan Structure [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contributions to eligible employees | 3.50% | ||
Voluntary Contribution [Member] | U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan contributions by employer | $ 1,000,000,000 | ||
Pension Plans [Member] | U.S. Pension Plans [Member] | Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan contributions by employer | $ 0 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 19,321 | $ 17,048 |
Operating income (loss) | 1,590 | 977 |
Operating Segments [Member] | FedEx Express Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 9,647 | 8,945 |
Operating income (loss) | 710 | 285 |
Operating Segments [Member] | FedEx Ground Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 7,040 | 5,179 |
Operating income (loss) | 834 | 644 |
Operating Segments [Member] | FedEx Freight Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,826 | 1,905 |
Operating income (loss) | 274 | 194 |
Operating Segments [Member] | FedEx Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 8 | 4 |
Corporate, Other and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 800 | 1,015 |
Operating income (loss) | $ (228) | $ (146) |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | Aug. 31, 2020USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2021 (remainder) | $ 1,962 | |
2022 | 2,836 | |
2023 | 2,883 | |
2024 | 1,317 | |
2025 | 847 | |
Thereafter | 3,113 | |
Total | 12,958 | |
Aircraft And Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2021 (remainder) | 1,180 | |
2022 | 2,166 | |
2023 | 2,423 | |
2024 | 1,015 | |
2025 | 621 | |
Thereafter | 2,716 | |
Total | 10,121 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2021 (remainder) | 782 | [1] |
2022 | 670 | [1] |
2023 | 460 | [1] |
2024 | 302 | [1] |
2025 | 226 | [1] |
Thereafter | 397 | [1] |
Total | $ 2,837 | [1] |
[1] | Primarily equipment and advertising contracts. |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | 3 Months Ended |
Aug. 31, 2020USD ($)air-craft | |
Other Aircraft Commitments Disclosure [Abstract] | |
Deposit and Progress Payments | $ | $ 632 |
Lessee Disclosure [Abstract] | |
Additional leases not yet commenced, undiscounted future payments | $ | $ 1,100 |
Minimum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2021 |
Maximum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2022 |
B777F [Member] | |
Other Aircraft Commitments Disclosure [Abstract] | |
Conditional Aircraft Commitments | 6 |
B767F [Member] | |
Other Aircraft Commitments Disclosure [Abstract] | |
Number of aircrafts rescheduled delivery, 2021 | 18 |
Number of aircrafts rescheduled delivery, 2022 | 11 |
Number of aircrafts rescheduled delivery, 2023 | 13 |
Number of aircrafts rescheduled delivery, 2024 | 4 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 3 Months Ended |
Aug. 31, 2020air-craft | |
Schedule of Aircraft Commitments [Line Items] | |
2021 (remainder) | 17 |
2022 | 32 |
2023 | 33 |
2024 | 26 |
2025 | 20 |
Thereafter | 6 |
Total | 134 |
Cessna SkyCourier 408 [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2022 | 9 |
2023 | 12 |
2024 | 12 |
2025 | 12 |
Thereafter | 5 |
Total | 50 |
ATR 72-600F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2021 (remainder) | 4 |
2022 | 7 |
2023 | 6 |
2024 | 6 |
2025 | 6 |
Thereafter | 1 |
Total | 30 |
B767F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2021 (remainder) | 13 |
2022 | 11 |
2023 | 13 |
2024 | 4 |
Total | 41 |
B777F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2022 | 5 |
2023 | 2 |
2024 | 4 |
2025 | 2 |
Total | 13 |
Commitments - Summary of Future
Commitments - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) $ in Millions | Aug. 31, 2020USD ($) |
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items] | |
2021 (remainder) | $ 1,909 |
2022 | 2,376 |
2023 | 2,128 |
2024 | 1,798 |
2025 | 1,559 |
Thereafter | 8,299 |
Total lease payments | 18,069 |
Less imputed interest | (2,858) |
Present value of lease liability | 15,211 |
Operating Leases | |
2021 (remainder) | 1,861 |
2022 | 2,349 |
2023 | 2,103 |
2024 | 1,774 |
2025 | 1,535 |
Thereafter | 7,593 |
Total lease payments | 17,215 |
Less imputed interest | (2,477) |
Present value of lease liability | 14,738 |
Finance Leases | |
2021 (remainder) | 48 |
2022 | 27 |
2023 | 25 |
2024 | 24 |
2025 | 24 |
Thereafter | 706 |
Total lease payments | 854 |
Less imputed interest | (381) |
Present value of lease liability | 473 |
Aircraft and Related Equipment [Member] | |
Operating Leases | |
2021 (remainder) | 200 |
2022 | 229 |
2023 | 198 |
2024 | 102 |
2025 | 69 |
Thereafter | 258 |
Total lease payments | 1,056 |
Less imputed interest | (85) |
Present value of lease liability | 971 |
Facilities and Other [Member] | |
Operating Leases | |
2021 (remainder) | 1,661 |
2022 | 2,120 |
2023 | 1,905 |
2024 | 1,672 |
2025 | 1,466 |
Thereafter | 7,335 |
Total lease payments | 16,159 |
Less imputed interest | (2,392) |
Present value of lease liability | $ 13,767 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | 3 Months Ended |
Aug. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Litigation, final settlement amount | $ 35,000,000 |
Attorneys fees recognized in connection with underlying lawsuits | 10,000,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Proceedings of environmental matters | 100,000 |
Monetary sanctions and fines related to violations of environmental laws | $ 100,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest (net of capitalized interest) | $ 182 | $ 164 |
Income taxes | 134 | 55 |
Income tax refunds received | (11) | (12) |
Cash tax (refunds) payments, net | $ 123 | $ 43 |