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Retirement Plans (Tables)
 12 Months Ended
May 31, 2022
Retirement Plan Tables [Abstract]  
Schedule of Retirement Plan Costs

A summary of our retirement plan costs over the past three years is as follows (in millions):

 

 

 

2022

 

 

2021

 

 

2020

 

Defined benefit pension plans

 

$

(2

)

 

$

88

 

 

$

148

 

Defined contribution plans

 

 

824

 

 

 

685

 

 

 

574

 

Postretirement healthcare plans

 

 

89

 

 

 

83

 

 

 

86

 

Retirement plans MTM loss (gain)

 

 

1,578

 

 

 

(1,176

)

 

 

794

 

 

 

$

2,489

 

 

$

(320

)

 

$

1,602

 

 

The components of the MTM adjustments are as follows (in millions):

 

 

 

2022

 

 

2021

 

 

2020

 

Actual versus expected return on assets

 

$

5,109

 

 

$

(1,712

)

 

$

(2,024

)

Discount rate change

 

 

(4,486

)

 

 

(397

)

 

 

2,997

 

Demographic experience:

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

504

 

 

 

302

 

 

 

50

 

   Change in future assumptions

 

 

314

 

 

 

685

 

 

 

(229

)

Termination of TNT Express Netherlands pension plan

 

 

224

 

 

 

—

 

 

 

—

 

Pension plan amendments, including curtailment gains

 

 

(87

)

 

 

(54

)

 

 

—

 

Total MTM loss (gain)

 

$

1,578

 

 

$

(1,176

)

 

$

794

 

 
Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Discount rate used to determine benefit
   obligation

 

 

4.25

%

 

 

3.23

%

 

 

3.14

%

 

 

3.09

%

 

 

1.83

%

 

 

1.79

%

 

 

4.35

%

 

 

2.81

%

 

 

2.95

%

Discount rate used to determine net periodic
   benefit cost

 

 

3.23

 

 

 

3.14

 

 

 

3.85

 

 

 

1.83

 

 

 

1.79

 

 

 

1.92

 

 

 

2.81

 

 

 

2.95

 

 

 

3.70

 

Rate of increase in future compensation
   levels used to determine benefit obligation

 

 

5.11

 

 

 

5.06

 

 

 

5.17

 

 

 

2.89

 

 

 

2.83

 

 

 

2.19

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation
   levels used to determine net periodic
   benefit cost

 

 

5.06

 

 

 

5.17

 

 

 

5.10

 

 

 

2.83

 

 

 

2.19

 

 

 

2.43

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.50

 

 

 

6.75

 

 

 

6.75

 

 

 

2.39

 

 

 

2.71

 

 

 

3.26

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net
   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

2.50

 

 

 

2.00

 

 

 

2.20

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine
   benefit obligation

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

3.70

 

 

 

2.50

 

 

 

2.00

 

 

 

—

 

 

 

—

 

 

 

—

 
Schedule of Plan Assets at Measurement Date

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and our most significant international pension plans at the measurement date are presented in the following table (in millions):

 

 

 

Plan Assets at Measurement Date

 

 

 

2022

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

1,164

 

 

 

4

%

 

0 - 5%

 

$

29

 

 

$

1,135

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

3,368

 

 

 

13

 

 

 

 

 

1,235

 

 

 

 

 

 

 

International equities(2)

 

 

3,445

 

 

 

13

 

 

 

 

 

2,551

 

 

 

 

 

 

 

Global equities(2)

 

 

1,245

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

809

 

 

 

3

 

 

 

 

 

804

 

 

 

5

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,755

 

 

 

26

 

 

 

 

 

 

 

 

6,755

 

 

 

 

Government(2)

 

 

4,401

 

 

 

17

 

 

 

 

 

 

 

 

2,749

 

 

 

 

Mortgage-backed and other(2)

 

 

1,251

 

 

 

5

 

 

 

 

 

 

 

 

381

 

 

 

 

Alternative investments(2)

 

 

3,554

 

 

 

14

 

 

0 - 15

 

 

 

 

 

 

 

$

811

 

Other

 

 

(22

)

 

 

—

 

 

 

 

 

(24

)

 

 

2

 

 

 

 

Total U.S. plan assets

 

$

25,970

 

 

 

100

%

 

 

 

$

4,595

 

 

$

11,027

 

 

$

811

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4

 

 

 

1

%

 

 

 

$

4

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

62

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

261

 

 

60

 

 

 

 

 

199

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

107

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

434

 

 

 

100

%

 

 

 

$

203

 

 

$

—

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

 

 

 

Plan Assets at Measurement Date

 

 

 

2021

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

614

 

 

 

2

%

 

0 - 5%

 

$

36

 

 

$

578

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

4,038

 

 

 

14

 

 

 

 

 

1,644

 

 

 

 

 

 

 

International equities(2)

 

 

4,664

 

 

 

16

 

 

 

 

 

3,792

 

 

 

2

 

 

 

 

Global equities(2)

 

 

1,668

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

967

 

 

 

3

 

 

 

 

 

884

 

 

 

5

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

50 - 70

 

 

 

 

 

 

 

 

 

Corporate

 

 

8,714

 

 

 

29

 

 

 

 

 

 

 

 

8,714

 

 

 

 

Government(2)

 

 

5,190

 

 

 

17

 

 

 

 

 

 

 

 

3,296

 

 

 

 

Mortgage-backed and other(2)

 

 

1,065

 

 

 

3

 

 

 

 

 

 

 

 

226

 

 

 

 

Alternative investments(2)

 

 

2,855

 

 

 

10

 

 

0 - 15

 

 

 

 

 

 

 

$

537

 

Other

 

 

10

 

 

 

—

 

 

 

 

 

(14

)

 

 

(4

)

 

 

 

Total U.S. plan assets

 

$

29,785

 

 

 

100

%

 

 

 

$

6,342

 

 

$

12,817

 

 

$

537

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10

 

 

 

1

%

 

 

 

$

10

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities(2)

 

 

123

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

Global equities(2)

 

 

335

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

434

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

574

 

 

 

30

 

 

 

 

 

350

 

 

 

 

 

 

 

Mortgage-backed and other(2)

 

 

217

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

189

 

 

 

9

 

 

 

 

 

19

 

 

$

36

 

 

 

 

Total international plan assets

 

$

1,882

 

 

 

100

%

 

 

 

$

379

 

 

$

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
Schedule of Change in Fair Value of Level 3 Assets

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

 

 

 

U.S. Pension Plans

 

 

 

2022

 

 

2021

 

Balance at beginning of year

 

$

537

 

 

$

416

 

Actual return on plan assets:

 

 

 

 

 

 

Assets held during current year

 

 

192

 

 

 

41

 

Assets sold during the year

 

 

29

 

 

 

22

 

Purchases, sales, and settlements

 

 

53

 

 

 

58

 

Balance at end of year

 

$

811

 

 

$

537

 
Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2022 and a statement of the funded status as of May 31, 2022 and 202

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Accumulated Benefit Obligation (“ABO”)

 

$

27,916

 

 

$

30,455

 

 

$

946

 

 

$

2,417

 

 

 

 

 

 

 

Changes in PBO and Accumulated Postretirement
   Benefit Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

31,423

 

 

$

30,199

 

 

$

2,611

 

 

$

2,242

 

 

$

1,456

 

 

$

1,314

 

Service cost

 

 

835

 

 

 

851

 

 

 

56

 

 

 

83

 

 

 

48

 

 

 

44

 

Interest cost

 

 

1,020

 

 

 

959

 

 

 

32

 

 

 

43

 

 

 

41

 

 

 

39

 

Actuarial (gain) loss

 

 

(3,356

)

 

 

362

 

 

 

(19

)

 

 

105

 

 

 

(192

)

 

 

125

 

Benefits paid

 

 

(1,180

)

 

 

(948

)

 

 

(36

)

 

 

(53

)

 

 

(113

)

 

 

(112

)

Settlements

 

 

—

 

 

 

—

 

 

 

(1,315

)

 

 

(11

)

 

 

—

 

 

 

—

 

Other

 

 

(40

)

 

 

—

 

 

 

(233

)

 

 

202

 

 

 

46

 

 

 

46

 

PBO/APBO at the end of year

 

$

28,702

 

 

$

31,423

 

 

$

1,096

 

 

$

2,611

 

 

$

1,286

 

 

$

1,456

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

29,785

 

 

$

26,978

 

 

$

2,133

 

 

$

1,713

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

(3,168

)

 

 

3,436

 

 

 

(4

)

 

 

114

 

 

 

—

 

 

 

—

 

Company contributions

 

 

533

 

 

 

319

 

 

 

135

 

 

 

142

 

 

 

68

 

 

 

64

 

Benefits paid

 

 

(1,180

)

 

 

(948

)

 

 

(36

)

 

 

(53

)

 

 

(113

)

 

 

(112

)

Settlements

 

 

—

 

 

 

—

 

 

 

(1,395

)

 

 

(11

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(170

)

 

 

228

 

 

 

45

 

 

 

48

 

Fair value of plan assets at the end of year

 

$

25,970

 

 

$

29,785

 

 

$

663

 

 

$

2,133

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(2,732

)

 

$

(1,638

)

 

$

(433

)

 

$

(478

)

 

$

(1,286

)

 

$

(1,456

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

126

 

 

$

231

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare, and
   other benefit obligations

 

 

(20

)

 

 

(41

)

 

 

(19

)

 

 

(18

)

 

 

(95

)

 

 

(110

)

Noncurrent pension, postretirement healthcare,
   and other benefit obligations

 

 

(2,712

)

 

 

(1,597

)

 

 

(540

)

 

 

(691

)

 

 

(1,191

)

 

 

(1,346

)

Net amount recognized

 

$

(2,732

)

 

$

(1,638

)

 

$

(433

)

 

$

(478

)

 

$

(1,286

)

 

$

(1,456

)

Amounts Recognized in AOCI and not yet reflected
   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit and other

 

$

(54

)

 

$

(61

)

 

$

(3

)

 

$

(6

)

 

$

—

 

 

$

—

 
Schedule of Components of Pension Plans

Our pension plans included the following components at May 31 (in millions):

 

 

 

PBO

 

 

Fair Value of
Plan Assets

 

 

Funded Status

 

2022

 

 

 

 

 

 

 

 

 

Qualified

 

$

28,524

 

 

$

25,970

 

 

$

(2,554

)

Nonqualified

 

 

178

 

 

 

—

 

 

 

(178

)

International Plans

 

 

1,096

 

 

 

663

 

 

 

(433

)

Total

 

$

29,798

 

 

$

26,633

 

 

$

(3,165

)

2021

 

 

 

 

 

 

 

 

 

Qualified

 

$

31,225

 

 

$

29,785

 

 

$

(1,440

)

Nonqualified

 

 

198

 

 

 

—

 

 

 

(198

)

International Plans

 

 

2,611

 

 

 

2,133

 

 

 

(478

)

Total

 

$

34,034

 

 

$

31,918

 

 

$

(2,116

)
Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets

The table above provides the PBO, fair value of plan assets, and funded status of our pension plans on an aggregated basis. The following tables present our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

 

 

 

PBO Exceeds the Fair Value
of Plan Assets

 

 

 

2022

 

 

2021

 

U.S. Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

25,970

 

 

$

29,785

 

PBO

 

 

(28,702

)

 

 

(31,423

)

Net funded status

 

$

(2,732

)

 

$

(1,638

)

International Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

199

 

 

$

241

 

PBO

 

 

(758

)

 

 

(950

)

Net funded status

 

$

(559

)

 

$

(709

)

 

 

 

ABO Exceeds the Fair Value
of Plan Assets

 

 

 

2022

 

 

2021

 

U.S. Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(27,916

)

 

$

(29,083

)

Fair value of plan assets

 

 

25,970

 

 

 

28,383

 

PBO

 

 

(28,702

)

 

 

(29,888

)

Net funded status

 

$

(2,732

)

 

$

(1,505

)

International Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(604

)

 

$

(722

)

Fair value of plan assets

 

 

196

 

 

 

206

 

PBO

 

 

(754

)

 

 

(908

)

Net funded status

 

$

(558

)

 

$

(702

)
(1)
ABO not used in determination of funded status.
Schedule of Contributions to Pension Plans

Contributions to our U.S. Pension Plans for the years ended May 31 were as follows (in millions):

 

 

 

2022

 

 

2021

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

500

 

 

 

300

 

 

 

$

500

 

 

$

300

 
Schedule of Net Periodic Benefit Cost

Net periodic benefit cost for the years ended May 31 were as follows (in millions):

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

 

2022

 

 

2021

 

 

2020

 

Service cost

 

$

835

 

 

$

851

 

 

$

768

 

 

$

56

 

 

$

83

 

 

$

96

 

 

$

48

 

 

$

44

 

 

$

42

 

Interest cost

 

 

1,020

 

 

 

959

 

 

 

1,000

 

 

 

32

 

 

 

43

 

 

 

43

 

 

 

41

 

 

 

39

 

 

 

44

 

Expected return on plan assets

 

 

(1,910

)

 

 

(1,786

)

 

 

(1,601

)

 

 

(26

)

 

 

(52

)

 

 

(51

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service
   credit

 

 

(7

)

 

 

(8

)

 

 

(105

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial losses (gains) and
   other

 

 

1,683

 

 

 

(1,288

)

 

 

888

 

 

 

87

 

 

 

(13

)

 

 

(179

)

 

 

(192

)

 

 

125

 

 

 

85

 

Net periodic benefit cost

 

$

1,621

 

 

$

(1,272

)

 

$

950

 

 

$

147

 

 

$

59

 

 

$

(93

)

 

$

(103

)

 

$

208

 

 

$

171

 
Schedule of Expected Future Benefit Payments

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

 

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement
Healthcare Plans

 

2023

 

$

1,263

 

 

$

47

 

 

$

95

 

2024

 

 

1,350

 

 

 

45

 

 

 

104

 

2025

 

 

1,436

 

 

 

49

 

 

 

112

 

2026

 

 

1,520

 

 

 

52

 

 

 

122

 

2027

 

 

1,603

 

 

 

57

 

 

 

127

 

2028-2032

 

 

9,099

 

 

 

377

 

 

 

595