Retirement Plans

6 Months Ended

Nov. 30, 2022

Retirement Benefits [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 periods ended November 30 were as follows (in millions):

	Three Months Ended					Six Months Ended
	2022		2021			2022		2021
Defined benefit pension plans, net	$	58	$	(2	)	$	117	$	(5	)
Defined contribution plans		228		171			472		351
Postretirement healthcare plans		23		23			46		45
Retirement plans MTM net loss		—		260			—		260
	$	309	$	452		$	635	$	651

Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended November 30 included the following components (in millions):

	Three Months Ended
	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2022			2021			2022			2021			2022		2021
Service cost	$	163		$	208		$	10		$	14		$	9	$	12
Other retirement plans expense (income):
Interest cost		305			255			8			7			14		11
Expected return on plan assets		(422	)		(477	)		(4	)		(6	)		—		—
Amortization of prior service credit and other		(2	)		(2	)		—			(1	)		—		—
MTM net loss		—			36			—			224			—		—
		(119	)		(188	)		4			224			14		11
	$	44		$	20		$	14		$	238		$	23	$	23

	Six Months Ended
	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2022			2021			2022			2021			2022		2021
Service cost	$	326		$	416		$	21		$	29		$	18	$	24
Other retirement plans expense (income):
Interest cost		609			511			17			19			28		21
Expected return on plan assets		(844	)		(955	)		(8	)		(20	)		—		—
Amortization of prior service credit and other		(4	)		(4	)		—			(1	)		—		—
MTM net loss		—			36			—			224			—		—
		(239	)		(412	)		9			222			28		21
	$	87		$	4		$	30		$	251		$	46	$	45

For 2023, 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 $400 million during the first half of 2023.

In the second quarter of 2022, we incurred a pre-tax, noncash MTM net loss of $36 million related to the U.S. FedEx Freight Pension Plan. During the second quarter of 2022, 21% of FedEx Freight Corporation (“FedEx Freight”) employees elected to move from a pension/401(k) benefit structure to a new 401(k)-only structure with a higher company match effective January 1, 2022. The $36 million net loss consisted of a $75 million MTM loss due to a lower discount rate, partially offset by a $39 million curtailment gain.

We incurred an additional pre-tax, noncash MTM net loss of $224 million in the second quarter of 2022 related to the termination of the TNT Express Netherlands Pension Plan. Effective October 1, 2021, the responsibility of all pension assets and liabilities of this plan was transferred to a separate, multi-employer pension plan.