Retirement Plans (Tables)

12 Months Ended

May 31, 2021

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

	2021			2020		2019
Defined benefit pension plans	$	88		$	148	$	112
Defined contribution plans		685			574		561
Postretirement healthcare plans		83			86		75
Retirement plans MTM (gain) loss		(1,176	)		794		3,882
	$	(320	)	$	1,602	$	4,630

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

	2021			2020			2019
Actual versus expected return on assets	$	(1,712	)	$	(2,024	)	$	476
Discount rate change		(397	)		2,997			1,780
Demographic experience:
Current year actuarial loss		302			50			739
Change in future assumptions		685			(229	)		887
Curtailment gain on TNT Netherlands pension plan		(54	)		—			—
Total MTM (gain) loss	$	(1,176	)	$	794		$	3,882

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
	2021			2020			2019			2021			2020			2019			2021			2020			2019
Discount rate used to determine benefit obligation		3.23	%		3.14	%		3.85	%		1.83	%		1.79	%		1.92	%		2.81	%		2.95	%		3.70	%
Discount rate used to determine net periodic benefit cost		3.14			3.85			4.27			1.79			1.92			2.34			2.95			3.70			4.33
Rate of increase in future compensation levels used to determine benefit obligation		5.06			5.17			5.10			2.83			2.19			2.27			—			—			—
Rate of increase in future compensation levels used to determine net periodic benefit cost		5.17			5.10			4.43			2.19			2.43			2.22			—			—			—
Expected long-term rate of return on assets		6.75			6.75			6.75			2.71			3.26			3.12			—			—			—
Interest crediting rate used to determine net periodic benefit cost		4.00			4.00			4.00			2.00			2.20			2.20			—			—			—
Interest crediting rate used to determine benefit obligation		4.00			4.00			4.00			2.50			2.00			2.20			—			—			—

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
	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.

	Plan Assets at Measurement Date
	2020
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	$	709		3	%	0 - 5%	$	278	$	431
Equities						30 - 50
U.S. large cap equity⁽²⁾		3,070		11				1,172
International equities⁽²⁾		3,314		12				2,738
Global equities⁽²⁾		1,350		5
U.S. SMID cap equity		673		3				673
Fixed-income securities						50 - 70
Corporate		7,983		30						7,983
Government⁽²⁾		6,928		26						4,652
Mortgage-backed and other⁽²⁾		634		2						170
Alternative investments⁽²⁾		2,264		8		0 - 15						$	416
Other		53		—				57		(3	)
Total U.S. plan assets	$	26,978		100	%		$	4,918	$	13,233		$	416
Asset Class (International Plans)
Cash and cash equivalents	$	9		1	%		$	9
Equities
International equities⁽²⁾		72		5
Global equities⁽²⁾		218		15
Fixed-income securities
Corporate⁽²⁾		342		23
Government⁽²⁾		510		34
Mortgage-backed and other⁽²⁾		188		12				318
Other⁽²⁾		158		10				13	$	63
Total international plan assets	$	1,497		100	%		$	340	$	63

⁽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
	2021		2020
Balance at beginning of year	$	416	$	302
Actual return on plan assets:
Assets held during current year		41		19
Assets sold during the year		22		16
Purchases, sales and settlements		58		79
Balance at end of year	$	537	$	416

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, 2021 and a statement of the funded status as of May 31, 2021 and 2020 (in millions):

	U.S. Pension Plans						International Pension Plans						Postretirement Healthcare Plans
	2021			2020			2021			2020			2021			2020
Accumulated Benefit Obligation (“ABO”)	$	30,455		$	29,272		$	2,417		$	2,012
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)
PBO/APBO at the beginning of year	$	30,199		$	26,554		$	2,242		$	2,301		$	1,314		$	1,221
Service cost		851			768			83			96			44			42
Interest cost		959			1,000			43			43			39			44
Actuarial loss (gain)		362			2,817			105			(87	)		125			85
Benefits paid		(948	)		(940	)		(53	)		(41	)		(112	)		(127	)
Settlements		—			—			(11	)		(6	)		—			—
Other		—			—			202			(64	)		46			49
PBO/APBO at the end of year	$	31,423		$	30,199		$	2,611		$	2,242		$	1,456		$	1,314
Change in Plan Assets
Fair value of plan assets at the beginning of year	$	26,978		$	23,320		$	1,713		$	1,578		$	—		$	—
Actual return on plan assets		3,436			3,530			114			146			—			—
Company contributions		319			1,068			142			86			64			77
Benefits paid		(948	)		(940	)		(53	)		(41	)		(112	)		(127	)
Settlements		—			—			(11	)		(6	)		—			—
Other		—			—			228			(50	)		48			50
Fair value of plan assets at the end of year	$	29,785		$	26,978		$	2,133		$	1,713		$	—		$	—
Funded Status of the Plans	$	(1,638	)	$	(3,221	)	$	(478	)	$	(529	)	$	(1,456	)	$	(1,314	)
Amount Recognized in the Balance Sheet at May 31:
Noncurrent asset	$	—		$	—		$	231		$	142		$	—		$	—
Current pension, postretirement healthcare and other benefit obligations		(41	)		(38	)		(18	)		(17	)		(110	)		(104	)
Noncurrent pension, postretirement healthcare and other benefit obligations		(1,597	)		(3,183	)		(691	)		(654	)		(1,346	)		(1,210	)
Net amount recognized	$	(1,638	)	$	(3,221	)	$	(478	)	$	(529	)	$	(1,456	)	$	(1,314	)
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:
Prior service (credit) cost and other	$	(61	)	$	(68	)	$	(6	)	$	(7	)	$	—		$	1

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
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	)
2020
Qualified	$	30,004	$	26,978	$	(3,026	)
Nonqualified		195		—		(195	)
International Plans		2,242		1,713		(529	)
Total	$	32,441	$	28,691	$	(3,750	)

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
	2021			2020
U.S. Pension Benefits
Fair value of plan assets	$	29,785		$	26,978
PBO		(31,423	)		(30,199	)
Net funded status	$	(1,638	)	$	(3,221	)
International Pension Benefits
Fair value of plan assets	$	241		$	205
PBO		(950	)		(876	)
Net funded status	$	(709	)	$	(671	)

	ABO Exceeds the Fair Value of Plan Assets
	2021			2020
U.S. Pension Benefits
ABO⁽¹⁾	$	(29,083	)	$	(29,272	)
Fair value of plan assets		28,383			26,978
PBO		(29,888	)		(30,199	)
Net funded status	$	(1,505	)	$	(3,221	)
International Pension Benefits
ABO⁽¹⁾	$	(722	)	$	(637	)
Fair value of plan assets		206			175
PBO		(908	)		(840	)
Net funded status	$	(702	)	$	(665	)

⁽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):

	2021		2020
Required	$	—	$	—
Voluntary		300		1,000
	$	300	$	1,000

Schedule of Net Periodic Benefit Cost

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

	U.S. Pension Plans									International Pension Plans									Postretirement Healthcare Plans
	2021			2020			2019			2021			2020			2019			2021		2020		2019
Service cost	$	851		$	768		$	689		$	83		$	96		$	94		$	44	$	42	$	35
Interest cost		959			1,000			951			43			43			49			39		44		40
Expected return on plan assets		(1,786	)		(1,601	)		(1,505	)		(52	)		(51	)		(46	)		—		—		—
Amortization of prior service credit		(8	)		(105	)		(118	)		(2	)		(2	)		(2	)		—		—		—
Actuarial (gains) losses and other		(1,288	)		888			3,537			(13	)		(179	)		80			125		85		265
Net periodic benefit cost	$	(1,272	)	$	950		$	3,554		$	59		$	(93	)	$	175		$	208	$	171	$	340

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
2022	$	1,178	$	55	$	110
2023		1,246		57		120
2024		1,333		60		129
2025		1,417		65		137
2026		1,505		73		139
2027-2031		8,661		487		541