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Summary of Quarterly Operating Results (Unaudited)
 12 Months Ended
May 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Operating Results (Unaudited)

NOTE 20: SUMMARY OF QUARTERLY OPERATING RESULTS (UNAUDITED)

 

(in millions, except per share amounts)

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

2017(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

14,663

 

 

$

14,931

 

 

$

14,997

 

 

$

15,728

 

Operating income

 

 

1,264

 

 

 

1,167

 

 

 

1,025

 

 

 

1,581

 

Net income

 

 

715

 

 

 

700

 

 

 

562

 

 

 

1,020

 

Basic earnings per common share(2)

 

 

2.69

 

 

 

2.63

 

 

 

2.11

 

 

 

3.81

 

Diluted earnings per common share(2)

 

 

2.65

 

 

 

2.59

 

 

 

2.07

 

 

 

3.75

 

2016(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

12,279

 

 

$

12,453

 

 

$

12,654

 

 

$

12,979

 

Operating income (loss)

 

 

1,144

 

 

 

1,137

 

 

 

864

 

 

 

(68

)

Net income (loss)

 

 

692

 

 

 

691

 

 

 

507

 

 

 

(70

)

Basic earnings (loss) per common share(2)

 

 

2.45

 

 

 

2.47

 

 

 

1.86

 

 

 

(0.26

)

Diluted earnings (loss) per common share(2)

 

 

2.42

 

 

 

2.44

 

 

 

1.84

 

 

 

(0.26

)

 

(1)

The fourth quarter, third quarter, second quarter, and first quarter of 2017 include $124 million, $78 million, $58 million and $68 million, respectively, of TNT Express integration expenses and restructuring charges, and $20 million, $16 million, $10 million and $28 million, respectively, of increased intangible asset amortization as a result of the TNT Express acquisition. The fourth quarter of 2017 includes $39 million of charges for legal reserves related to certain pending CBP matters involving FedEx Trade Networks, $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground and $24 million related to the retirement plans MTM gain.

 

(2)

The sum of the quarterly earnings per share may not equal annual amounts due to differences in the weighted-average number of shares outstanding during the respective periods.

 

(3)

The fourth quarter of 2016 includes a $1.5 billion retirement plans MTM loss and TNT Express transaction, financing and integration-planning expenses and immaterial financial results from the time of acquisition totaling $79 million. In addition, the fourth quarter of 2016 includes a $76 million favorable tax impact from an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express and $11 million of expenses related to independent contractor litigation matters at FedEx Ground. The third quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $204 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million (in each case, net of recognized immaterial insurance recovery), as well as TNT Express transaction, financing and integration-planning expenses of $25 million. The second quarter of 2016 includes provisions related to independent contractor litigation matters at FedEx Ground for $41 million and $19 million of TNT Express transaction, financing and integration-planning expenses.