Income Taxes (Tables)

9 Months Ended

Feb. 28, 2019

Income Tax Disclosure [Abstract]

Summary of Reconciliation of Effective Tax Rates

The following table provides a reconciliation of the 2018 effective tax rates to the 2019 effective tax rates, including the impacts of the TCJA, for the periods ended February 28:

	Three Months Ended			Nine Months Ended
2018 Effective Tax Rate(a)		(137.3	)%		(15.0	)%
Remeasurement of net U.S. deferred tax liability in 2018		131.5			38.5
Effect of February 2018 pension contribution(b)		23.3			6.8
Lower statutory tax rate on first-half 2018 earnings (35% to 29.2%)(c)		12.5			—
Reduction of valuation allowance on tax loss carryforwards in 2019		(10.3	)		(3.0	)
Lower statutory tax rate on 2019 earnings (29.2% to 21%)(c)		(7.6	)		(7.6	)
Remeasurement of net Dutch deferred tax asset in 2019		5.3			1.5
Transition tax provisional benefit in 2018		4.1			1.2
Foreign tax credits on foreign dividends in 2018		1.2			2.9
Accelerated deductions claimed in 2019 on the 2018 U.S. income tax return		—			(1.8	)
Other, net(d)		(2.1	)		(1.7	)
2019 Effective Tax Rate(a)		20.6	%		21.8	%

^(a) 2018 includes a blended U.S. statutory federal income tax rate of 29.2% while 2019 includes the fully phased-in rate of 21%.

^(b) The benefit is from the pension contribution deducted on our 2017 tax return at a tax rate of 35%.

^(c) Due to our May 31 fiscal year-end, the TCJA’s lower U.S. statutory federal income tax rate that went into effect on December 22, 2017 was phased in resulting in a rate of 29.2% for 2018 and a rate of 21% for subsequent years.

^(d) The 2018 tax rates were negatively impacted by the effect of the NotPetya cyberattack, costs incurred in connection with the integration of foreign operations of FedEx Express and TNT Express B.V. (“TNT Express”), changes in uncertain tax positions and tax rate impacts on changes in deferred tax items after the TCJA enactment, and were favorably impacted from tax benefits from share-based payments.