Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Feb. 29, 2020

Condensed Consolidating Financial Statements Tables [Abstract]

Condensed consolidating financial statements for our guarantor subsidiaries and non-guarantor subsidiaries are presented in the following tables (in millions):

CONDENSED CONSOLIDATING BALANCE SHEETS

(UNAUDITED)

February 29, 2020

			Guarantor			Non-guarantor
	Parent		Subsidiaries			Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	246	$	203		$	1,333	$	(16	)	$	1,766
Receivables, less allowances		71		5,752			3,585		(85	)		9,323
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		207		895			350		—			1,452
Total current assets		524		6,850			5,268		(101	)		12,541
PROPERTY AND EQUIPMENT, AT COST		28		59,777			4,500		—			64,305
Less accumulated depreciation and amortization		18		28,761			2,220		—			30,999
Net property and equipment		10		31,016			2,280		—			33,306
INTERCOMPANY RECEIVABLE		3,349		(136	)		—		(3,213	)		—
OPERATING LEASE RIGHT-OF-USE ASSETS, NET		38		11,715			2,228		—			13,981
GOODWILL		—		1,587			5,227		—			6,814
INVESTMENT IN SUBSIDIARIES		35,407		5,020			—		(40,427	)		—
OTHER ASSETS		962		1,134			1,763		(487	)		3,372
	$	40,290	$	57,186		$	16,766	$	(44,228	)	$	70,014
LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Short-term borrowings	$	300	$	—		$	—	$	—		$	300
Current portion of long-term debt		—		27			8		—			35
Accrued salaries and employee benefits		87		975			410		—			1,472
Accounts payable		194		1,554			1,545		(100	)		3,193
Operating lease liabilities		4		1,435			463		—			1,902
Accrued expenses		416		2,033			975		(1	)		3,423
Total current liabilities		1,001		6,024			3,401		(101	)		10,325
LONG-TERM DEBT, LESS CURRENT PORTION		18,298		634			41		—			18,973
INTERCOMPANY PAYABLE		—		—			3,213		(3,213	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		—		3,016			572		(487	)		3,101
Operating lease liabilities		36		10,378			1,818		—			12,232
Other liabilities		2,124		3,473			955		—			6,552
Total other long-term liabilities		2,160		16,867			3,345		(487	)		21,885
COMMON STOCKHOLDERS’ INVESTMENT		18,831		33,661			6,766		(40,427	)		18,831
	$	40,290	$	57,186		$	16,766	$	(44,228	)	$	70,014

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2019

			Guarantor			Non-guarantor
	Parent		Subsidiaries			Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	826	$	158		$	1,381	$	(46	)	$	2,319
Receivables, less allowances		56		5,603			3,684		(227	)		9,116
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		366		953			332		—			1,651
Total current assets		1,248		6,714			5,397		(273	)		13,086
PROPERTY AND EQUIPMENT, AT COST		25		55,341			4,145		—			59,511
Less accumulated depreciation and amortization		17		27,066			1,999		—			29,082
Net property and equipment		8		28,275			2,146		—			30,429
INTERCOMPANY RECEIVABLE		2,877		(405	)		—		(2,472	)		—
GOODWILL		—		1,589			5,295		—			6,884
INVESTMENT IN SUBSIDIARIES		33,725		5,449			—		(39,174	)		—
OTHER ASSETS		995		1,811			1,789		(591	)		4,004
	$	38,853	$	43,433		$	14,627	$	(42,510	)	$	54,403
LIABILITIES AND COMMON STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Current portion of long-term debt	$	959	$	2		$	3	$	—		$	964
Accrued salaries and employee benefits		143		1,100			498		—			1,741
Accounts payable		16		1,469			1,808		(263	)		3,030
Accrued expenses		521		1,853			914		(10	)		3,278
Total current liabilities		1,639		4,424			3,223		(273	)		9,013
LONG-TERM DEBT, LESS CURRENT PORTION		16,322		287			8		—			16,617
INTERCOMPANY PAYABLE		—		—			2,472		(2,472	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		—		2,832			580		(591	)		2,821
Other liabilities		3,135		3,965			1,095		—			8,195
Total other long-term liabilities		3,135		6,797			1,675		(591	)		11,016
COMMON STOCKHOLDERS’ INVESTMENT		17,757		31,925			7,249		(39,174	)		17,757
	$	38,853	$	43,433		$	14,627	$	(42,510	)	$	54,403

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended February 29, 2020

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUE	$	—		$	12,925		$	4,658		$	(96	)	$	17,487
OPERATING EXPENSES:
Salaries and employee benefits		24			4,934			1,424			—			6,382
Purchased transportation		—			3,211			1,392			(45	)		4,558
Rentals and landing fees		2			749			216			(3	)		964
Depreciation and amortization		—			789			119			—			908
Fuel		—			839			40			—			879
Maintenance and repairs		—			597			87			—			684
Intercompany charges, net		(93	)		(574	)		667			—			—
Other		67			1,842			840			(48	)		2,701
		—			12,387			4,785			(96	)		17,076
OPERATING INCOME		—			538			(127	)		—			411
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		315			22			—			(337	)		—
Interest, net		(159	)		3			1			—			(155	)
Other retirement plans income		—			163			5			—			168
Intercompany charges, net		160			(120	)		(40	)		—			—
Other, net		(1	)		11			(14	)		—			(4	)
INCOME (LOSS) BEFORE INCOME TAXES		315			617			(175	)		(337	)		420
Provision for income taxes (benefit)		—			82			23			—			105
NET INCOME (LOSS)	$	315		$	535		$	(198	)	$	(337	)	$	315
COMPREHENSIVE INCOME (LOSS)	$	298		$	535		$	(202	)	$	(337	)	$	294

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended February 28, 2019

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUE	$	—		$	12,443		$	4,667		$	(100	)	$	17,010
OPERATING EXPENSES:
Salaries and employee benefits		28			4,720			1,321			—			6,069
Purchased transportation		—			2,749			1,547			(43	)		4,253
Rentals and landing fees		1			677			197			(1	)		874
Depreciation and amortization		—			731			120			—			851
Fuel		—			838			69			—			907
Maintenance and repairs		—			573			87			(2	)		658
Business realignment costs		4			—			—			—			4
Intercompany charges, net		(93	)		(397	)		490			—			—
Other		60			1,771			698			(46	)		2,483
		—			11,662			4,529			(92	)		16,099
OPERATING INCOME		—			781			138			(8	)		911
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		739			16			—			(755	)		—
Interest, net		(109	)		(54	)		28			—			(135	)
Other retirement plans income		—			155			3			—			158
Intercompany charges, net		149			(89	)		(60	)		—			—
Other, net		(40	)		71			(42	)		8			(3	)
INCOME (LOSS) BEFORE INCOME TAXES		739			880			67			(755	)		931
Provision for income taxes		—			147			45			—			192
NET INCOME (LOSS)	$	739		$	733		$	22		$	(755	)	$	739
COMPREHENSIVE INCOME (LOSS)	$	713		$	732		$	129		$	(755	)	$	819

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Nine Months Ended February 29, 2020

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUE	$	—		$	37,474		$	14,660		$	(275	)	$	51,859
OPERATING EXPENSES:
Salaries and employee benefits		66			14,441			4,197			—			18,704
Purchased transportation		—			8,619			4,416			(121	)		12,914
Rentals and landing fees		6			2,175			633			(6	)		2,808
Depreciation and amortization		1			2,335			352			—			2,688
Fuel		—			2,497			142			—			2,639
Maintenance and repairs		—			1,966			261			(1	)		2,226
Asset impairment charges		—			66			—			—			66
Intercompany charges, net		(249	)		(1,677	)		1,926			—			—
Other		176			5,261			2,582			(147	)		7,872
		—			35,683			14,509			(275	)		49,917
OPERATING INCOME		—			1,791			151			—			1,942
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		1,620			66			—			(1,686	)		—
Interest, net		(476	)		23			9			1			(443	)
Other retirement plans income		1			488			15			—			504
Intercompany charges, net		485			(357	)		(127	)		(1	)		—
Other, net		(10	)		38			(43	)		—			(15	)
INCOME (LOSS) BEFORE INCOME TAXES		1,620			2,049			5			(1,686	)		1,988
Provision for income taxes (benefit)		—			388			(20	)		—			368
NET INCOME (LOSS)	$	1,620		$	1,661		$	25		$	(1,686	)	$	1,620
COMPREHENSIVE INCOME (LOSS)	$	1,569		$	1,620		$	44		$	(1,686	)	$	1,547

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Nine Months Ended February 28, 2019

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUE	$	—		$	37,685		$	14,503		$	(302	)	$	51,886
OPERATING EXPENSES:
Salaries and employee benefits		110			14,300			4,179			—			18,589
Purchased transportation		—			7,780			4,912			(126	)		12,566
Rentals and landing fees		4			1,948			585			(4	)		2,533
Depreciation and amortization		1			2,133			353			—			2,487
Fuel		—			2,708			237			—			2,945
Maintenance and repairs		1			1,874			271			(2	)		2,144
Business realignment costs		4			—			—			—			4
Intercompany charges, net		(357	)		(772	)		1,129			—			—
Other		238			4,991			2,410			(171	)		7,468
		1			34,962			14,076			(303	)		48,736
OPERATING INCOME		(1	)		2,723			427			1			3,150
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		2,509			145			—			(2,654	)		—
Interest, net		(439	)		44			2			—			(393	)
Other retirement plans income		—			466			8			—			474
Intercompany charges, net		454			(335	)		(119	)		—			—
Other, net		(14	)		18			(26	)		—			(22	)
INCOME (LOSS) BEFORE INCOME TAXES		2,509			3,061			292			(2,653	)		3,209
Provision for income taxes		—			579			121			—			700
NET INCOME (LOSS)	$	2,509		$	2,482		$	171		$	(2,653	)	$	2,509
COMPREHENSIVE INCOME (LOSS)	$	2,443		$	2,514		$	46		$	(2,653	)	$	2,350

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended February 29, 2020

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(1,794	)	$	4,864		$	178		$	30		$	3,278
INVESTING ACTIVITIES
Capital expenditures		(2	)		(4,288	)		(415	)		—			(4,705	)
Proceeds from asset dispositions and other		(12	)		20			7			—			15
CASH USED IN INVESTING ACTIVITIES		(14	)		(4,268	)		(408	)		—			(4,690	)
FINANCING ACTIVITIES
Proceeds from short-term borrowings, net		298			—			—			—			298
Net transfers from (to) Parent		597			(869	)		272			—			—
Payment on loan between subsidiaries		(326	)		—			326			—			—
Intercompany dividends		—			398			(398	)		—			—
Principal payments on debt		(956	)		(81	)		(8	)		—			(1,045	)
Proceeds from debt issuances		2,093			—			—			—			2,093
Proceeds from stock issuances		38			—			—			—			38
Dividends paid		(509	)		—			—			—			(509	)
Purchase of treasury stock		(3	)		—			—			—			(3	)
Other, net		(4	)		—			(1	)		—			(5	)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,228			(552	)		191			—			867
Effect of exchange rate changes on cash		—			1			(9	)		—			(8	)
Net (decrease) increase in cash and cash equivalents		(580	)		45			(48	)		30			(553	)
Cash and cash equivalents at beginning of period		826			158			1,381			(46	)		2,319
Cash and cash equivalents at end of period	$	246		$	203		$	1,333		$	(16	)	$	1,766

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended February 28, 2019

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(109	)	$	3,136		$	322		$	(26	)	$	3,323
INVESTING ACTIVITIES
Capital expenditures		(3	)		(3,359	)		(395	)		—			(3,757	)
Proceeds from asset dispositions and other		(45	)		86			21			—			62
CASH USED IN INVESTING ACTIVITIES		(48	)		(3,273	)		(374	)		—			(3,695	)
FINANCING ACTIVITIES
Proceeds from short-term borrowings, net		220			—			—			—			220
Net transfers from (to) Parent		2			(31	)		29			—			—
Payment on loan between subsidiaries		(29	)		—			29			—			—
Intercompany dividends		—			114			(114	)		—			—
Principal payments on debt		(750	)		(117	)		(7	)		—			(874	)
Proceeds from debt issuances		2,463			—			—			—			2,463
Proceeds from stock issuances		58			—			—			—			58
Dividends paid		(514	)		—			—			—			(514	)
Purchase of treasury stock		(1,365	)		—			—			—			(1,365	)
Other, net		—			127			(122	)		—			5
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		85			93			(185	)		—			(7	)
Effect of exchange rate changes on cash		—			(9	)		(5	)		—			(14	)
Net decrease in cash and cash equivalents		(72	)		(53	)		(242	)		(26	)		(393	)
Cash and cash equivalents at beginning of period		1,485			257			1,538			(15	)		3,265
Cash and cash equivalents at end of period	$	1,413		$	204		$	1,296		$	(41	)	$	2,872