v3.19.2
Consolidated Statements of Changes in Common Stockholders' Investment - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2019
Aug. 31, 2018
May 31, 2018
Aug. 31, 2017
May 31, 2019
May 31, 2018
May 31, 2017
Beginning balance   $ 19,416   $ 16,073 $ 19,416 $ 16,073 $ 13,784
Net income $ (1,969) [1],[2] 835 [1],[2] $ 1,127 [3],[4] 596 [3],[4] 540 4,572 2,997
Other comprehensive loss, net of tax         (287) (163) (246)
Purchase of treasury stock         (1,480) (1,017) (509)
Cash dividends declared         (683) (535) (426)
Employee incentive plans and other         251 486 473
Ending balance 17,757   19,416   17,757 19,416 16,073
Common Stock              
Beginning balance   32   32 32 32 32
Ending balance 32   32   32 32 32
Additional Paid-In Capital              
Beginning balance   3,117   3,005 3,117 3,005 2,892
Employee incentive plans and other         114 112 113
Ending balance 3,231   3,117   3,231 3,117 3,005
Retained Earnings              
Beginning balance   24,823   20,833 24,823 20,833 18,371
Net income         540 4,572 2,997
Cash dividends declared         (683) (535) (426)
Employee incentive plans and other         (32) (47) (109)
Ending balance 24,648   24,823   24,648 24,823 20,833
Accumulated Other Comprehensive Loss              
Beginning balance   (578)   (415) (578) (415) (169)
Other comprehensive loss, net of tax         (287) (163) (246)
Ending balance (865)   (578)   (865) (578) (415)
Treasury Stock              
Beginning balance   $ (7,978)   $ (7,382) (7,978) (7,382) (7,342)
Purchase of treasury stock         (1,480) (1,017) (509)
Employee incentive plans and other         169 421 469
Ending balance $ (9,289)   $ (7,978)   $ (9,289) $ (7,978) $ (7,382)
[1] The fourth quarter, third quarter, second quarter and first quarter of 2019 include $84 million, $69 million, $114 million and $121 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter and third quarter of 2019 include business realignment costs of $316 million and $4 million, respectively. The fourth quarter includes a net loss of $3.9 billion related to the annual MTM retirement plans accounting adjustment. The second quarter of 2019 includes costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
[2] The income tax benefit for the fourth quarter of 2019 was unfavorably impacted by $200 million due to the lower statutory tax rate under the TCJA on fiscal 2019 earnings and the annual retirement plans accounting MTM adjustment. The third quarter, second quarter and first quarter of 2019 include $60 million, $150 million and $135 million, respectively, of tax benefits primarily from the lower statutory tax rate under the TCJA on fiscal 2019 earnings. The third quarter of 2019 includes a tax benefit of $90 million from the reduction of a valuation allowance on certain tax loss carryforwards and a tax expense of $50 million related to a lower tax rate in the Netherlands applied to our deferred tax balances. The second quarter of 2019 includes a tax benefit of approximately $60 million from accelerated deductions claimed on our 2018 U.S. income tax return. In addition, we recognized a tax expense of $4 million in the second quarter of 2019 as a revision of the provisional benefit associated with the remeasurement of our net U.S. deferred tax liability upon completion of the accounting for the tax effects of the TCJA.
[3] The fourth quarter of 2018 includes a $255 million net tax benefit from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express. The fourth quarter, third quarter, and second quarter of 2018 include $133 million, $12 million, and $80 million, respectively, of tax benefits from foreign tax credits associated with distributions to the U.S. from foreign operations. The fourth quarter and third quarter of 2018 include $100 million and $165 million, respectively, of tax benefits related to a lower statutory income tax rate on fiscal 2018 earnings. In addition, the third quarter of 2018 includes the following TCJA-related items: a provisional benefit of $1.15 billion related to the remeasurement of our net U.S. deferred tax liability and a one-time benefit of $204 million from a $1.5 billion contribution to our U.S. Pension Plans.
[4] The fourth quarter, third quarter, second quarter and first quarter of 2018 include $136 million, $106 million, $122 million and $112 million, respectively, of TNT Express integration expenses (including any restructuring charges). The fourth quarter of 2018 includes goodwill and other asset impairment charges related to FedEx Supply Chain of $380 million and a net gain of $10 million related to the annual MTM retirement plans accounting adjustment. The fourth quarter and first quarter of 2018 include charges for legal reserves related to certain CBP matters involving FedEx Logistics of $1 million and $7 million, respectively.