XML 63 R39.htm IDEA: XBRL DOCUMENT v3.23.2
Retirement Plans (Tables)
 12 Months Ended
May 31, 2023
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):

 

 

2023

 

 

2022

 

 

2021

 

Defined benefit pension plans

 

$

236

 

 

$

(2

)

 

$

88

 

Defined contribution plans

 

 

955

 

 

 

824

 

 

 

685

 

Postretirement healthcare plans

 

 

92

 

 

 

89

 

 

 

83

 

Retirement plans MTM (gain) loss

 

 

(650

)

 

 

1,578

 

 

 

(1,176

)

 

 

$

633

 

 

$

2,489

 

 

$

(320

)

 

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

 

 

2023

 

 

2022

 

 

2021

 

Actual versus expected return on assets

 

$

2,492

 

 

$

5,109

 

 

$

(1,712

)

Discount rate change

 

 

(3,395

)

 

 

(4,486

)

 

 

(397

)

Demographic experience:

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

142

 

 

 

504

 

 

 

302

 

   Change in future assumptions

 

 

110

 

 

 

314

 

 

 

685

 

Termination of TNT Express Netherlands pension plan

 

 

—

 

 

 

224

 

 

 

—

 

Pension plan amendments, including curtailment gains

 

 

1

 

 

 

(87

)

 

 

(54

)

Total MTM (gain) loss

 

$

(650

)

 

$

1,578

 

 

$

(1,176

)
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

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Discount rate used to determine benefit
   obligation

 

 

5.20

%

 

 

4.25

%

 

 

3.23

%

 

 

4.21

%

 

 

3.09

%

 

 

1.83

%

 

 

5.37

%

 

 

4.35

%

 

 

2.81

%

Discount rate used to determine net periodic
   benefit cost

 

 

4.25

 

 

 

3.23

 

 

 

3.14

 

 

 

3.09

 

 

 

1.83

 

 

 

1.79

 

 

 

4.35

 

 

 

2.81

 

 

 

2.95

 

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

 

 

5.13

 

 

 

5.11

 

 

 

5.06

 

 

 

3.04

 

 

 

2.89

 

 

 

2.83

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

 

5.11

 

 

 

5.06

 

 

 

5.17

 

 

 

2.89

 

 

 

2.83

 

 

 

2.19

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.50

 

 

 

6.50

 

 

 

6.75

 

 

 

2.26

 

 

 

2.39

 

 

 

2.71

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine
   benefit obligation

 

 

4.23

 

 

 

4.00

 

 

 

4.00

 

 

 

2.40

 

 

 

3.70

 

 

 

2.50

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net
   periodic benefit cost

 

 

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

 

 

 

2023

 

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

 

$

815

 

 

 

3

%

 

0 - 5%

 

$

22

 

 

$

793

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,928

 

 

 

12

 

 

 

 

 

1,268

 

 

 

 

 

 

 

International equities(2)

 

 

2,821

 

 

 

11

 

 

 

 

 

1,912

 

 

 

 

 

 

 

Global equities(2)

 

 

1,192

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

768

 

 

 

3

 

 

 

 

 

764

 

 

 

4

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,403

 

 

 

26

 

 

 

 

 

 

 

 

6,403

 

 

 

 

Government(2)

 

 

4,334

 

 

 

17

 

 

 

 

 

 

 

 

2,497

 

 

 

 

Mortgage-backed and other(2)

 

 

1,386

 

 

 

6

 

 

 

 

 

 

 

 

527

 

 

 

 

Alternative investments(2)

 

 

4,196

 

 

 

17

 

 

0 - 15

 

 

 

 

 

 

 

$

937

 

Other

 

 

(17

)

 

 

—

 

 

 

 

 

(33

)

 

 

16

 

 

 

 

Total U.S. plan assets

 

$

24,826

 

 

 

100

%

 

 

 

$

3,933

 

 

$

10,240

 

 

$

937

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7

 

 

 

2

%

 

 

 

$

7

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

57

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

178

 

 

53

 

 

 

 

 

159

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

95

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

337

 

 

 

100

%

 

 

 

$

166

 

 

$

—

 

 

 

 
(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

 

 

 

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.
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

 

 

 

2023

 

 

2022

 

Balance at beginning of year

 

$

811

 

 

$

537

 

Actual return on plan assets:

 

 

 

 

 

 

Assets held during current year

 

 

66

 

 

 

192

 

Assets sold during the year

 

 

28

 

 

 

29

 

Purchases, sales, and settlements

 

 

32

 

 

 

53

 

Balance at end of year

 

$

937

 

 

$

811

 
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, 2023 and a statement of the funded status as of May 31, 2023 and 2022

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Accumulated Benefit Obligation (“ABO”)

 

$

25,825

 

 

$

27,916

 

 

$

848

 

 

$

946

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

28,702

 

 

$

31,423

 

 

$

1,096

 

 

$

2,611

 

 

$

1,286

 

 

$

1,456

 

Service cost

 

 

651

 

 

 

835

 

 

 

44

 

 

 

56

 

 

 

37

 

 

 

48

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

34

 

 

 

32

 

 

 

55

 

 

 

41

 

Actuarial (gain) loss

 

 

(2,882

)

 

 

(3,356

)

 

 

(121

)

 

 

(19

)

 

 

(138

)

 

 

(192

)

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,315

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

(40

)

 

 

(8

)

 

 

(233

)

 

 

36

 

 

 

46

 

PBO/APBO at the end of year

 

$

26,426

 

 

$

28,702

 

 

$

990

 

 

$

1,096

 

 

$

1,169

 

 

$

1,286

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

25,970

 

 

$

29,785

 

 

$

663

 

 

$

2,133

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

(707

)

 

 

(3,168

)

 

 

(83

)

 

 

(4

)

 

 

—

 

 

 

—

 

Company contributions

 

 

826

 

 

 

533

 

 

 

55

 

 

 

135

 

 

 

71

 

 

 

68

 

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,395

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(170

)

 

 

36

 

 

 

45

 

Fair value of plan assets at the end of year

 

$

24,826

 

 

$

25,970

 

 

$

579

 

 

$

663

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

88

 

 

$

126

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare, and
   other benefit obligations

 

 

(39

)

 

 

(20

)

 

 

(23

)

 

 

(19

)

 

 

(84

)

 

 

(95

)

Noncurrent pension, postretirement healthcare,
   and other benefit obligations

 

 

(1,561

)

 

 

(2,712

)

 

 

(476

)

 

 

(540

)

 

 

(1,085

)

 

 

(1,191

)

Net amount recognized

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit and other

 

$

(47

)

 

$

(54

)

 

$

4

 

 

$

(3

)

 

$

—

 

 

$

—

 
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

 

2023

 

 

 

 

 

 

 

 

 

Qualified

 

$

26,269

 

 

$

24,826

 

 

$

(1,443

)

Nonqualified

 

 

157

 

 

 

—

 

 

 

(157

)

International Plans

 

 

990

 

 

 

579

 

 

 

(411

)

Total

 

$

27,416

 

 

$

25,405

 

 

$

(2,011

)

2022

 

 

 

 

 

 

 

 

 

Qualified

 

$

28,524

 

 

$

25,970

 

 

$

(2,554

)

Nonqualified

 

 

178

 

 

 

—

 

 

 

(178

)

International Plans

 

 

1,096

 

 

 

663

 

 

 

(433

)

Total

 

$

29,798

 

 

$

26,633

 

 

$

(3,165

)
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

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

24,826

 

 

$

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

223

 

 

$

199

 

PBO

 

 

(722

)

 

 

(758

)

Net funded status

 

$

(499

)

 

$

(559

)

 

 

 

ABO Exceeds the Fair Value
of Plan Assets

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(25,825

)

 

$

(27,916

)

Fair value of plan assets

 

 

24,826

 

 

 

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(562

)

 

$

(604

)

Fair value of plan assets

 

 

201

 

 

 

196

 

PBO

 

 

(700

)

 

 

(754

)

Net funded status

 

$

(499

)

 

$

(558

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

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

 

 

2023

 

 

2022

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

800

 

 

 

500

 

 

 

$

800

 

 

$

500

 
Schedule of Net Periodic Benefit (Income) Cost

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

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

651

 

 

$

835

 

 

$

851

 

 

$

44

 

 

$

56

 

 

$

83

 

 

$

37

 

 

$

48

 

 

$

44

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

959

 

 

 

34

 

 

 

32

 

 

 

43

 

 

 

55

 

 

 

41

 

 

 

39

 

Expected return on plan
   assets

 

 

(1,688

)

 

 

(1,910

)

 

 

(1,786

)

 

 

(14

)

 

 

(26

)

 

 

(52

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior
   service credit

 

 

(7

)

 

 

(7

)

 

 

(8

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial losses (gains)
   and other

 

 

(487

)

 

 

1,683

 

 

 

(1,288

)

 

 

(25

)

 

 

87

 

 

 

(13

)

 

 

(138

)

 

 

(192

)

 

 

125

 

Net periodic benefit (income) cost

 

$

(313

)

 

$

1,621

 

 

$

(1,272

)

 

$

37

 

 

$

147

 

 

$

59

 

 

$

(46

)

 

$

(103

)

 

$

208

 
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

 

2024

 

$

1,392

 

 

$

54

 

 

$

84

 

2025

 

 

1,457

 

 

 

47

 

 

 

92

 

2026

 

 

1,544

 

 

 

50

 

 

 

101

 

2027

 

 

1,621

 

 

 

55

 

 

 

110

 

2028

 

 

1,697

 

 

 

60

 

 

 

117

 

2029-2033

 

 

9,471

 

 

 

395

 

 

 

610