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Long-Term Debt and Other Financing Arrangements | 12 Months Ended
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May 31, 2016
Long-Term Debt and Other Financing Arrangements [Abstract] |
Long-term Debt and Other Financing Arrangements | NOTE 6: LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS The components of long-term debt (net of discounts), along with maturity dates for the years subsequent to May 31, 201 6, are as follows (in millions):
|  |  |  |  |  |  |  |  |  | May 31,
|  |  |  |  |  |  |  |  |  | 2016 |  | 2015
|  |  |  |  | Interest Rate % |  | Maturity |  |  |  |  |  |
Senior unsecured debt: |  | 8.00 |  | 2019 |  |  | $ 750 |  |  | $ 750
|  |  |  |  | 2.30 |  | 2020 |  |  | 399 |  |  | 399
|  |  |  |  | 2.625-2.70 |  | 2023 |  |  | 749 |  |  | 749
|  |  |  |  | 4.00 |  | 2024 |  |  | 749 |  |  | 749
|  |  |  |  | 3.20 |  | 2025 |  |  | 699 |  |  | 699
|  |  |  |  | 3.25 |  | 2026 |  |  | 749 |  |  | -
|  |  |  |  | 4.90 |  | 2034 |  |  | 499 |  |  | 499
|  |  |  |  | 3.90 |  | 2035 |  |  | 498 |  |  | 498
|  |  |  |  | 3.875-4.10 |  | 2043 |  |  | 992 |  |  | 992
|  |  |  |  | 5.10 |  | 2044 |  |  | 749 |  |  | 749
|  |  |  |  | 4.10 |  | 2045 |  |  | 646 |  |  | 646
|  |  |  |  | 4.55-4.75 |  | 2046 |  |  | 2,483 |  |  | -
|  |  |  |  | 4.50 |  | 2065 |  |  | 248 |  |  | 248
|  |  |  |  | 7.60 |  | 2098 |  |  | 240 |  |  | 239
Euro senior unsecured debt: | floating rate |  | 2019 |  |  | 559 |  |  | -
|  |  |  |  | 0.50 |  | 2020 |  |  | 558 |  |  | -
|  |  |  |  | 1.00 |  | 2023 |  |  | 836 |  |  | -
|  |  |  |  | 1.625 |  | 2027 |  |  | 1,389 |  |  | -
Total senior unsecured debt |  |  |  |  |  |  |  | 13,792 |  |  | 7,217
Other debt |  |  |  |  |  |  |  | 12 |  |  | -
Capital lease obligations |  |  |  |  |  |  |  | 63 |  |  | 51
|  |  |  |  |  |  |  |  |  |  | 13,867 |  |  | 7,268
Less current portion |  |  |  |  |  |  |  | 29 |  |  | 19
|  |  |  |  |  |  |  |  |  | $ | 13,838 |  | $ | 7,249
Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our Euro fixed-rate notes is paid annually. Our floating-rate Euro senior note s bear interest at three-month EURIBOR plus a spread of 55 basis points, and reset s quarterly. Long-term debt, exclusive of capital leases, had estimated fair value s of $14.3 billion at May 31, 2016 and $7.4 billion at May 31, 2015. The estimated fair values were determined based on quoted market prices and the current rates offered for debt wi th similar terms and maturities. The fair value of our long-term debt is classified as Level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly. We have a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock. On April 11, 2016, we issued €3 billion of senior unsecured debt under our current shelf registration statement, comprised of €500 million of senior unsecured floating rate notes due in April 2019 with interest payments quarterly, €500 million of senior unsecured 0.5% fixed-rate notes due in April 2020, €750 million of senior unsecured 1.00% fixed-rate notes due in January 2023, and €1.25 billion of senior unsecured 1.625% fixed-rate notes due in January 2027. Interest on the fixed-rate notes is paid annually. We utilized the net proceeds for working capital and general corporate purposes, including our acquisition of TNT Express. On March 24, 2016, we issued $2 billion of senior unsecured debt under our current s hel f registration statement, comprised of $750 million of senior unsecured 3.2 5% fixed-rate notes due in April 2026 and $1.25 billion of senior unsecured 4.55% fixed-rate notes due in April 2046. Interest on the notes is paid semiannually. We utilized the net proceeds for working capital and general corporate purposes, including the redemption and the p repayment and defeasance of the underlying debt of certain leveraged operating leases and share repurchases. On October 23, 2015, we issued under our current shelf registration statement $1.25 billion of senior unsecured 4.75% fixed-rate notes due in November 2045. Interest on the notes is paid semiannually. We utilized the net proceeds for working capital and general corporate purposes, including share repurchases. On November 13, 2015, we replaced our revolving and letter of credit facilities with a new, single five-year $1.75 billion revolving credit facility that expires in November 2020. The facility, which includes a $500 million letter of credit sublimit, is available to finance our operations and other cash flow needs. The agreement contains a financial covenant, which requires us to maintain a ratio of debt to consolidated earnings (excluding non-cash pension mark-to-market adjustments and non-cash asset impairment charges) before interest, taxes, depreciation and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the end of the applicable quarter on a rolling four quarters basis. The ratio of our debt to adjusted EBITDA was 1.9 to 1.0 at May 31, 2016. We believe this covenant is the only significant restrictive covenant in our revolving credit agreement. Our revolving credit agreement contains other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants of our revolving credit agreement and do not expect the covenants to affect our operations, including our liquidity or expected funding needs. As of May 31, 2016, no commercial paper was outstanding. However, we had a total of $318 million in letters of credit outstanding at May 31, 2016, with $182 million of the letter of credit sublimit unused under our revolving credit facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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