v3.22.4
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.