Goodwill and Other Intangible Assets

12 Months Ended

May 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):

	FedEx Express Segment			TNT Express Segment			FedEx Ground Segment		FedEx Freight Segment			FedEx Services Segment			Total
Goodwill at May 31, 2015	$	1,677		$	—		$	1,145	$	773		$	1,525		$	5,120
Accumulated impairment charges		—			—			—		(133	)		(1,177	)		(1,310	)
Balance as of May 31, 2015		1,677			—			1,145		640			348			3,810
Goodwill acquired⁽¹⁾		—			2,964			—		—			—			2,964
Purchase adjustments and other⁽²⁾		(88	)		—			66		(5	)		—			(27	)
Balance as of May 31, 2016		1,589			2,964			1,211		635			348			6,747
Purchase adjustments and other⁽²⁾		2,191			(1,784	)		—		—			—			407
Balance as of May 31, 2017	$	3,780		$	1,180		$	1,211	$	635		$	348		$	7,154
Accumulated goodwill impairment charges as of May 31, 2017	$	—		$	—		$	—	$	(133	)	$	(1,177	)	$	(1,310	)

⁽¹⁾	Goodwill acquired relates to the acquisition of TNT Express in 2016. See Note 3 for related disclosures.

⁽²⁾	Primarily purchase-related adjustments, currency translation adjustments, and acquired goodwill related to immaterial acquisitions. FY17 includes goodwill attributed to FedEx Express as part of the acquisition of TNT Express.

Our reporting units with significant recorded goodwill include FedEx Express, TNT Express, FedEx Ground, FedEx Freight, FedEx Office (reported in the FedEx Services segment) and FedEx Supply Chain (reported in the FedEx Ground segment). We evaluated reporting units for impairment during the fourth quarter of 2017 and 2016. The estimated fair value of each of these reporting units exceeded their carrying values in 2017 and 2016, and we do not believe that any of these reporting units were impaired as of the balance sheet dates.

OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2017 and 2016 is as follows (in millions):

	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationships	$	656	$	(203	)	$	453	$	912	$	(156	)	$	756
Technology		54		(26	)		28		123		(16	)		107
Trademarks and other		136		(88	)		48		202		(57	)		145
Total	$	846	$	(317	)	$	529	$	1,237	$	(229	)	$	1,008

Amortization expense for intangible assets was $91 million in 2017, $14 million in 2016 and $21 million in 2015.

Expected amortization expense for the next five years is as follows (in millions):

2018	$	81
2019		71
2020		55
2021		44
2022		41

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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