Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Feb. 29, 2024 | Mar. 19, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Feb. 29, 2024 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | FedEx Corporation | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-15829 | |
Entity Tax Identification Number | 62-1721435 | |
Entity Address, Address Line One | 942 South Shady Grove Road | |
Entity Address, City or Town | Memphis | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38120 | |
City Area Code | 901 | |
Local Phone Number | 818-7500 | |
Entity Central Index Key | 0001048911 | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 246,080,750 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock, Par Value $0.10 Per Share [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Security Exchange Name | NYSE | |
0.450% Notes Due 2025 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 25A | |
Title of 12(b) Security | 0.450% Notes due 2025 | |
Security Exchange Name | NYSE | |
1.625% Notes Due 2027 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 27 | |
Title of 12(b) Security | 1.625% Notes due 2027 | |
Security Exchange Name | NYSE | |
0.450% Notes Due 2029 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 29A | |
Title of 12(b) Security | 0.450% Notes due 2029 | |
Security Exchange Name | NYSE | |
1.300% Notes Due 2031 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 31 | |
Title of 12(b) Security | 1.300% Notes due 2031 | |
Security Exchange Name | NYSE | |
0.950% Notes Due 2033 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | FDX 33 | |
Title of 12(b) Security | 0.950% Notes due 2033 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 29, 2024 | May 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,644 | $ 6,856 |
Receivables, less allowances of $775 and $800 | 9,904 | 10,188 |
Spare parts, supplies, and fuel, less allowances of $291 and $276 | 640 | 604 |
Prepaid expenses and other | 1,236 | 962 |
Total current assets | 17,424 | 18,610 |
PROPERTY AND EQUIPMENT, AT COST | 84,145 | 80,624 |
Less accumulated depreciation and amortization | 42,616 | 39,926 |
Net property and equipment | 41,529 | 40,698 |
OTHER LONG-TERM ASSETS | ||
Operating lease right-of-use assets, net | 16,935 | 17,347 |
Goodwill | 6,425 | 6,435 |
Other assets | 3,801 | 4,053 |
Total other long-term assets | 27,161 | 27,835 |
ASSETS | 86,114 | 87,143 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 67 | 126 |
Accrued salaries and employee benefits | 2,541 | 2,475 |
Accounts payable | 3,780 | 3,848 |
Operating lease liabilities | 2,447 | 2,390 |
Accrued expenses | 4,473 | 4,747 |
Total current liabilities | 13,308 | 13,586 |
LONG-TERM DEBT, LESS CURRENT PORTION | 20,122 | 20,453 |
OTHER LONG-TERM LIABILITIES | ||
Deferred income taxes | 4,378 | 4,489 |
Pension, postretirement healthcare, and other benefit obligations | 2,527 | 3,130 |
Self-insurance accruals | 3,836 | 3,339 |
Operating lease liabilities | 14,878 | 15,363 |
Other liabilities | 690 | 695 |
Total other long-term liabilities | 26,309 | 27,016 |
COMMITMENTS AND CONTINGENCIES | ||
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of February 29, 2024 and May 31, 2023 | 32 | 32 |
Additional paid-in capital | 3,898 | 3,769 |
Retained earnings | 37,174 | 35,259 |
Accumulated other comprehensive loss | (1,335) | (1,327) |
Treasury stock, at cost | (13,394) | (11,645) |
Total common stockholders’ investment | 26,375 | 26,088 |
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ 86,114 | $ 87,143 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Feb. 29, 2024 | May 31, 2023 |
CURRENT ASSETS | ||
Allowances for receivables | $ 775 | $ 800 |
Allowances for spare parts, supplies and fuel | $ 291 | $ 276 |
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 318,000,000 | 318,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Statement [Abstract] | ||||
REVENUE | $ 21,738 | $ 22,169 | $ 65,584 | $ 68,225 |
OPERATING EXPENSES: | ||||
Salaries and employee benefits | 7,693 | 7,817 | 23,311 | 23,468 |
Purchased transportation | 5,345 | 5,402 | 15,776 | 16,834 |
Rentals and landing fees | 1,145 | 1,205 | 3,434 | 3,559 |
Depreciation and amortization | 1,072 | 1,031 | 3,183 | 3,101 |
Fuel | 1,140 | 1,350 | 3,569 | 4,765 |
Maintenance and repairs | 804 | 789 | 2,482 | 2,575 |
Business optimization and realignment costs | 114 | 123 | 364 | 197 |
Other | 3,182 | 3,410 | 9,461 | 10,317 |
OPERATING EXPENSES | 20,495 | 21,127 | 61,580 | 64,816 |
OPERATING INCOME | 1,243 | 1,042 | 4,004 | 3,409 |
OTHER (EXPENSE) INCOME: | ||||
Interest, net | (91) | (122) | (279) | (391) |
Other retirement plans, net | 40 | 102 | 120 | 304 |
Other, net | (9) | (37) | (87) | |
OTHER (EXPENSE) INCOME | (60) | (20) | (196) | (174) |
INCOME BEFORE INCOME TAXES | 1,183 | 1,022 | 3,808 | 3,235 |
PROVISION FOR INCOME TAXES | 304 | 251 | 951 | 801 |
NET INCOME | $ 879 | $ 771 | $ 2,857 | $ 2,434 |
EARNINGS PER COMMON SHARE: | ||||
Basic | $ 3.55 | $ 3.07 | $ 11.43 | $ 9.52 |
Diluted | 3.51 | 3.05 | 11.31 | 9.46 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 1.26 | $ 1.15 | $ 3.78 | $ 4.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 879 | $ 771 | $ 2,857 | $ 2,434 |
OTHER COMPREHENSIVE (LOSS) INCOME: | ||||
Foreign currency translation adjustments, net of tax benefit (expense) of $2 and $3 in 2024 and $(5) and $22 in 2023 | (39) | 80 | (39) | (199) |
Prior service credit arising during period, net of tax (expense) of $0 and ($11) in 2024 and $0 and $0 in 2023 | 36 | |||
Amortization of prior service credit, net of tax benefit of $0 and $0 in 2024 and $0 and $1 in 2023 | (2) | (3) | (5) | (6) |
Other comprehensive income (loss) | (41) | 77 | (8) | (205) |
COMPREHENSIVE INCOME | $ 838 | $ 848 | $ 2,849 | $ 2,229 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Other Comprehensive Income, Tax Amounts | ||||
Foreign currency translation adjustments, tax benefit (expense) | $ 2 | $ (5) | $ 3 | $ 22 |
Prior service credit arising during period, net of tax (expense) | 0 | 0 | (11) | 0 |
Amortization of prior service credit, tax benefit | $ 0 | $ 0 | $ 0 | $ 1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Operating Activities: | ||
Net income | $ 2,857 | $ 2,434 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 3,183 | 3,101 |
Provision for uncollectible accounts | 323 | 536 |
Stock-based compensation | 130 | 142 |
Other noncash items including leases and deferred income taxes | 2,141 | 2,425 |
Business optimization and realignment costs, net of payments | (50) | 20 |
Changes in assets and liabilities: | ||
Receivables | (110) | 373 |
Other assets | (119) | (110) |
Accounts payable and other liabilities | (2,711) | (3,534) |
Other, net | (30) | 14 |
Cash provided by operating activities | 5,614 | 5,401 |
Investing Activities: | ||
Capital expenditures | (3,974) | (4,420) |
Purchase of investments | (110) | (82) |
Proceeds from sale of investments | 24 | |
Proceeds from asset dispositions and other | 94 | 72 |
Cash used in investing activities | (3,966) | (4,430) |
Financing Activities: | ||
Principal payments on debt | (143) | (123) |
Proceeds from stock issuances | 265 | 114 |
Dividends paid | (949) | (888) |
Purchase of treasury stock | (2,000) | (1,500) |
Other, net | (7) | 1 |
Cash used in financing activities | (2,834) | (2,396) |
Effect of exchange rate changes on cash | (26) | (99) |
Net decrease in cash and cash equivalents | (1,212) | (1,524) |
Cash and cash equivalents at beginning of period | 6,856 | 6,897 |
Cash and cash equivalents at end of period | $ 5,644 | $ 5,373 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Common Stockholders' Investment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Beginning Balance | $ 26,088 | |||
Net income | $ 879 | $ 771 | 2,857 | $ 2,434 |
Other comprehensive (loss) income, net of tax benefit (expense) of $2, ($5), ($8), and $23 | (41) | 77 | (8) | (205) |
Ending Balance | 26,375 | 24,733 | 26,375 | 24,733 |
Common Stock | ||||
Beginning Balance | 32 | 32 | 32 | 32 |
Ending Balance | 32 | 32 | 32 | 32 |
Additional Paid-In Capital | ||||
Beginning Balance | 3,849 | 3,487 | 3,769 | 3,712 |
Purchase of treasury stock | 4 | 218 | (30) | (82) |
Employee incentive plans and other | 45 | 30 | 159 | 105 |
Ending Balance | 3,898 | 3,735 | 3,898 | 3,735 |
Retained Earnings | ||||
Beginning Balance | 36,605 | 33,557 | 35,259 | 32,782 |
Net income | 879 | 771 | 2,857 | 2,434 |
Cash dividends declared ($1.26, $1.15, $3.78, and $4.60 per share) | (310) | (288) | (942) | (1,176) |
Ending Balance | 37,174 | 34,040 | 37,174 | 34,040 |
Accumulated Other Comprehensive Loss | ||||
Beginning Balance | (1,294) | (1,385) | (1,327) | (1,103) |
Other comprehensive (loss) income, net of tax benefit (expense) of $2, ($5), ($8), and $23 | (41) | 77 | (8) | (205) |
Ending Balance | (1,335) | (1,308) | (1,335) | (1,308) |
Treasury Stock | ||||
Beginning Balance | (12,426) | (11,576) | (11,645) | (10,484) |
Purchase of treasury stock | (1,011) | (218) | (1,985) | (1,418) |
Employee incentive plans and other | 43 | 28 | 236 | 136 |
Ending Balance | $ (13,394) | $ (11,766) | $ (13,394) | $ (11,766) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 1.26 | $ 1.15 | $ 3.78 | $ 4.6 |
Other comprehensive (loss) income, net of tax benefit (expense) | $ 2 | $ (5) | $ (8) | $ 23 |
Purchase of treasury stock | 4.1 | 1.3 | 8 | 9.2 |
Employee incentive plans and other, shares issued | 0.3 | 0.2 | 1.8 | 1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 879 | $ 771 | $ 2,857 | $ 2,434 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 9 Months Ended |
Feb. 29, 2024 | |
General [Abstract] | |
General | (1) General SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 31, 2023 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of February 29, 2024, and the results of our operations for the three- and nine-month periods ended February 29, 2024 and February 28, 2023, cash flows for the nine-month periods ended February 29, 2024 and February 28, 2023, and changes in common stockholders’ investment for the three- and nine-month periods ended February 29, 2024 and February 28, 2023. Operating results for the three- and nine-month periods ended February 29, 2024 are not necessarily indicative of the results that may be expected for the year ending May 31, 2024. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2024 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit shipments, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current, and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Gross contract assets related to in-transit shipments total ed $ 663 million and $ 686 million at February 29, 2024 and May 31, 2023, respectively. Contract assets net of deferred unearned revenue we re $ 455 million and $ 484 million at February 29, 2024 and May 31, 2023, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customer s were $ 23 million a nd $ 19 million at February 29, 2024 and May 31, 2023, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets. Disaggregation of Revenue The following table provides revenue by service type (in millions) for the periods ended February 29, 2024 and February 28, 2023. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended Nine Months Ended 2024 2023 2024 2023 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,145 $ 2,165 $ 6,491 $ 6,718 U.S. overnight envelope 450 478 1,382 1,477 U.S. deferred 1,317 1,346 3,712 3,886 Total U.S. domestic package revenue 3,912 3,989 11,585 12,081 International priority 2,318 2,566 7,035 8,286 International economy 1,014 698 3,123 2,116 Total international export package revenue 3,332 3,264 10,158 10,402 International domestic (1) 1,016 1,003 3,126 3,013 Total package revenue 8,260 8,256 24,869 25,496 Freight: U.S. 648 719 1,814 2,299 International priority 520 687 1,642 2,387 International economy 389 358 1,236 1,123 International airfreight 31 47 92 126 Total freight revenue 1,588 1,811 4,784 5,935 Other 253 278 787 905 Total FedEx Express segment 10,101 10,345 30,440 32,336 FedEx Ground segment 8,703 8,658 25,762 25,211 FedEx Freight segment 2,125 2,186 6,776 7,363 FedEx Services segment 64 87 201 225 Other and eliminations (2) 745 893 2,405 3,090 $ 21,738 $ 22,169 $ 65,584 $ 68,225 (1) International domestic revenue relates to our international intra-country operations. (2) Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments. EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“FedEx Express”), who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board (“NMB”), which is the U.S. governmental agency that oversees labor agreements for entities covered by the Railway Labor Act of 1926, as amended, began actively mediating the negotiations. In July 2023, FedEx Express’s pilots failed to ratify the tentative successor agreement that was approved by ALPA’s FedEx Express Master Executive Council the prior month. Bargaining for a successor agreement continues. In March 2024, ALPA requested that the NMB release it from mediation. The conduct of mediated negotiations has no effect on our operations. A small number of our other employees are members of unions. STOCK-BASED COMPENSATION. We have three types of equity-based compensation: stock options, restricted stock, and, for outside directors, restricted stock units. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and financial disclosures about these programs are set forth in our Annual Report. The key terms of the restricted stock units granted to our outside directors are set forth in our Current Report on Form 8-K dated September 21, 2023 and filed with the SEC on September 22, 2023. Our stock-based compensation expense was $ 34 million for the three-month period ended February 29, 2024 and $ 130 million for the nine-month period ended February 29, 2024. Our stock-based compensation expense was $ 34 million for the three-month period ended February 28, 2023 and $ 142 million for the nine-month period ended February 28, 2023. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We plan to consolidate our sortation facilities and equipment, reduce pickup-and-delivery routes, and optimize our enterprise linehaul network by moving beyond discrete collaboration to an end-to-end optimized network through Network 2.0, the multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada. In the fourth quarter of 2023, we announced one FedEx, a consolidation plan to bring FedEx Express, FedEx Ground Package System, Inc. (“FedEx Ground”), and FedEx Corporate Services, Inc. (“FedEx Services”) into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. FedEx Freight, Inc., a wholly owned subsidiary of FedEx Freight Corporation (“FedEx Freight”), will continue to provide less-than-truckload (“LTL”) freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with the new legal structure complete by June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0. FedEx is making progress with Network 2.0, as the company has implemented Network 2.0 optimization in more than 50 locations in the U.S. In some markets, contracted service providers will handle the pickup and delivery of FedEx Ground and FedEx Express packages. In others, pickup and delivery will be handled exclusively by employee couriers. We incurred costs associated with our business optimization activities of $ 114 million ($ 87 million, net of tax, or $ 0.35 per diluted share) in the three-month period ended February 29, 2024 and $ 364 million ($ 278 million, net of tax, or $ 1.10 per diluted share) in the nine-month period ended February 29, 2024 . These costs were primarily related to professional services and severance. We recognized $ 120 million ($ 92 million, net of tax, or $ 0.36 per diluted share) of costs under this program in the three-month period ended February 28, 2023 and $ 180 million ($ 138 million, net of tax, or $ 0.53 per diluted share) in the nine-month period ended February 28, 2023. These costs were primarily related to consulting services, severance and related costs associated with organizational changes announced in the third quarter of 2023, and idling our operations in Russia. Business optimization costs are included in Corporate, other, and eliminations, FedEx Ground, and FedEx Express. In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed in 2023. We incurred costs associated with our business realignment activities of $ 3 million ($ 2 million, net of tax, or $ 0.01 per diluted share) in the three-month period ended February 28, 2023 and $ 17 million ($ 13 million, net of tax, or $ 0.05 per diluted share) in the nine-month period ended February 28, 2023 . These costs were related to certain employee severance arrangements. The pre-tax cost of our business realignment activities through 2023 was approximately $ 430 million. DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow hedge for any period presented. As of February 29, 2024 , we had € 153 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of February 29, 2024 , the hedge remains effective. SUPPLIER FINANCE PROGRAM. We offer a voluntary Supply Chain Finance (“SCF”) program through one of our financial institutions to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities, and payment terms, and they issue invoices to us based on the agreed-upon contractual terms. If our suppliers choose to participate in the SCF program, they determine which invoices, if any, to sell to the financial institution to receive an early discounted payment, while we settle the net payment amount with our financial institution on the payment due dates. We guarantee these payments with the financial institution. Amounts due to our suppliers that participate in the SCF program are included in accounts payable in our consolidated balance sheets. We have been informed by the participating financial institutions that as of February 29, 2024 and May 31, 2023 , suppliers have been approved to sell to them $ 64 million and $ 76 million, respectively, of our outstanding payment obligations. RECENT ACCOUNTING GUIDANCE. New accounting rules and disclosure requirements can significantly affect our reported results and the comparability of our financial statements. We believe the following new accounting guidance is relevant to the readers of our financial statements. Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program (e.g., reverse factoring) to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. We adopted this standard effective June 1, 2023 . The adoption of this standard did no t have a material effect on our consolidated financial statements and related disclosures. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standards provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to existing contracts, hedging relationships, and other transactions affected by reference rate reform. The standards apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate to be discontinued because of reference rate reform. The standards were effective upon issuance and can generally be applied through December 31, 2024. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of February 29, 2024, we continue to monitor our contracts and transactions for potential application of these ASUs. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In March 2024, the SEC adopted final rules requiring public entities to provide certain climate-related information in their registration statements and annual reports. As part of the disclosures, entities will be required to quantify certain effects of severe weather events and other natural conditions in a note to their audited financial statements. The rules will be effective for annual periods beginning in calendar 2025 (fiscal 2026). We are assessing the effect of the new rules on our consolidated financial statements and related disclosures. EQUITY AND OTHER INVESTMENTS. Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other (expense) income, net” on our consolidated statements of income. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of available recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value. Equity investments that have readily determinable fair values, including investments for which we have elected the fair value option, are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other (expense) income, net” on our consolidated statements of income. During the nine-month period ended February 29, 2024 , we purchased $ 100 million of debt securities with effective maturities ranging from less than one year to approximately three years . We did no t purchase any debt securities during the three-month period ended February 29, 2024. These investments have been recognized in “Cash and cash equivalents” and “Prepaid expenses and other” on our consolidated balance sheets. As of February 29, 2024 , these investments are not material to our financial position or results of operations. TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $ 5 billion of FedEx common stock. As part of the 2021 program, we completed an accelerated share repurchase (“ASR”) agreement with a bank during the third quarter of 2024 to repurchase an aggregate of $ 1 billion of our common stock . During the three-month period ended February 29, 2024 , 4.1 million shares were repurchased under the ASR agreement at an average price of $ 245.80 per share for a total of $ 1 billion. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheet and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. During the nine-month period ended February 29, 2024 , we repurchased 8.0 million shares of FedEx common stock under ASR agreements under the 2021 program at an average price of $ 250.95 per share for a total of $ 2.0 billion. During the nine-month period ended February 28, 2023 , we repurchased 9.2 million shares of FedEx common stock under ASR agreements under the 2021 program at an average price of $ 163.39 per share for a total of $ 1.5 billion. As of February 29, 2024 , $ 564 million remained available to use for repurchases under the 2021 stock repurchase authorization. I n March 2024, our Board of Directors authorized a new stock repurchase program for additional repurchases of up to $ 5 billion. Shares under the 2021 and 2024 repurchase programs may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock, and general market conditions. No time limits were set for the completion of the programs, and the programs may be suspended or discontinued at any time. DIVIDENDS DECLARED PER COMMON SHARE. On February 16, 2024 , our Board of Directors declared a quarterly dividend of $ 1.26 per share of common stock. The dividend will be paid on April 1, 2024 to stockholders of record as of the close of business on March 11, 2024 . Each quarterly dividend payment is subject to review and approval by our Bo ard of Directors, and we evaluate our dividend payment amount on an annual basis. There are no material restrictions on our ability to declare dividends, nor are there any material restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans, or advances. |
Credit Losses
Credit Losses | 9 Months Ended |
Feb. 29, 2024 | |
Credit Loss [Abstract] | |
Credit Losses | (2) Credit Losses We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly, considering recent write-offs, collections information, and underlying economic expectations. Credit losses were $ 106 million for the three-month period ended February 29, 2024 and $ 323 million fo r the nine-month period ended February 29, 2024. Cre dit losses were $ 111 million for the three-month period ended February 28, 2023 and $ 536 million for the nine-month period ended February 28, 2023. Our allowance for credit losses was $ 441 million at February 29, 2024 and $ 472 million at May 31, 2023 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Feb. 29, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | (3) Accumulated Other Comprehensive Loss The following table provides changes in accumulated other comprehensive income (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended February 29, 2024 and February 28, 2023 (in millions; amounts in parentheses indicate debits to AOCI): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Foreign currency translation loss: Balance at beginning of period $ ( 1,362 ) $ ( 1,427 ) $ ( 1,362 ) $ ( 1,148 ) Translation adjustments ( 39 ) 80 ( 39 ) ( 199 ) Balance at end of period ( 1,401 ) ( 1,347 ) ( 1,401 ) ( 1,347 ) Retirement plans adjustments: Balance at beginning of period 68 42 35 45 Prior service credit arising during period — — 36 — Reclassifications from AOCI ( 2 ) ( 3 ) ( 5 ) ( 6 ) Balance at end of period 66 39 66 39 Accumulated other comprehensive (loss) at end of period $ ( 1,335 ) $ ( 1,308 ) $ ( 1,335 ) $ ( 1,308 ) The following table presents details of the reclassifications from AOCI for the periods ended February 29, 2024 and February 28, 2023 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from Affected Line Item in the Three Months Ended Nine Months Ended 2024 2023 2024 2023 Amortization of retirement plans $ 2 $ 3 $ 5 $ 7 Other retirement plans, net Income tax benefit — — — ( 1 ) Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 3 $ 5 $ 6 Net income |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Feb. 29, 2024 | |
Debt and Lease Obligation [Abstract] | |
Financing Arrangements | (4) Financing Arrangements We have a shelf registration statement filed with the SEC that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock and allows pass-through trusts formed by FedEx Express to sell, in one or more future offerings, pass-through certificates. FedEx Express has issued $ 970 million of Pass-Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875 % due in February 2034 utilizing pass-through trusts. The Certificates are secured by 19 Boeing aircraft with a net book value of $ 1.7 billion a t February 29, 2024. The payment obligations of FedEx Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx. During the third quarter of 2024, we had in place a $ 2.0 billion five-year credit agreement (the “Old Five-Year Credit Agreement”) and a $ 1.5 billion three-year credit agreement (the “Old Three-Year Credit Agreement” and together with the Old Five-Year Credit Agreement, the “Old Credit Agreements”). The Old Five-Year Credit Agreement included a $ 250 million letter of credit sublimit. As of February 29, 2024, no amounts were outstanding under the Old Credit Agreements, no commercial paper was outstanding, and $ 250 million of the letter of credit sublimit was unused under the Old Five-Year Credit Agreement. The Old Credit Agreements contained a financial covenant requiring us to maintain a ratio of debt to consolidated earnings (excluding noncash retirement plans mark-to-market adjustments, noncash pension service costs, and noncash asset impairment charges) before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the last day of each fiscal quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 1.9 to 1.0 at February 29, 2024. We were in compliance with all other covenants in the Old Credit Agreements during the third quarter of fiscal 2024. On March 15, 2024, we replaced the Old Credit Agreements with a $ 1.75 billion three-year credit agreement (the “New Three-Year Credit Agreement”) and a $ 1.75 billion five-year credit agreement (the “New Five-Year Credit Agreement” and together with the New Three-Year Credit Agreement, the “New Credit Agreements”). The New Three-Year Credit Agreement and the New Five-Year Credit Agreement expire in March 2027 and March 2029 , respectively. Each of the New Credit Agreements has a $ 125 million letter of credit sublimit. The New Credit Agreements are available to finance our operations and other cash flow needs. The New Credit Agreements amended the financial covenant included in the Old Credit Agreements to (i) net unrestricted cash and cash equivalents up to $ 500 million from the definition of debt and (ii) add back business optimization and restructuring expenses and pro forma cost savings and synergies associated with an acquisition to adjusted EBITDA. The aggregate amount of adjustments for business optimization and restructuring expenses and pro forma cost savings and synergies associated with an acquisition may not exceed 10 % of adjusted EBITDA (calculated after giving effect to any such addback and such cap and all other permitted addbacks and adjustments) in any period. Additionally, following the consummation of an acquisition for which the aggregate cash consideration is at least $ 250 million, FedEx may elect to increase the ratio to 4.0 to 1.0 with respect to the last day of the fiscal quarter during which such acquisition is consummated and the last day of each of the immediately following three consecutive fiscal quarters, provided that there must be at least two consecutive fiscal quarters between such elections during which the ratio is 3.5 to 1.0. The financial covenant discussed above is the only significant restrictive covenant in the New Credit Agreements. The New Credit Agreements contain other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We do not expect the covenants contained in the New Credit Agreements to affect our operations, including our liquidity or expected funding needs. If we failed to comply with the financial covenant or any other covenants in the New Credit Agreements, our access to financing could become limited. Our commercial paper program is backed by unused commitments under the New Credit Agreements, and borrowings under the program reduce the amount available under the New Credit Agreements. Long-term debt, including current maturities and exclusive of finance leases, had carrying val ues of $ 19.8 billion at February 29, 2024 a nd $ 19.8 billion at May 31, 2023, compared with estimated fair values of $ 17.7 billion a t February 29, 2024 and $ 17.5 billion a t May 31, 2023. The annualized weighted-average interest rate on long-term debt was 3.5 % at February 29, 2024. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of our long-term debt is classified as Level 2 w ithin 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. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 9 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | (5) Computation of Earnings Per Share The calculation of basic and diluted earnings per common share for the periods ended February 29, 2024 and February 28, 2023 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic earnings per common share: Net earnings allocable to common shares (1) $ 878 $ 770 $ 2,853 $ 2,430 Weighted-average common shares 247 251 249 255 Basic earnings per common share $ 3.55 $ 3.07 $ 11.43 $ 9.52 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 878 $ 770 $ 2,853 $ 2,430 Weighted-average common shares 247 251 249 255 Dilutive effect of share-based awards 3 2 3 2 Weighted-average diluted shares 250 253 252 257 Diluted earnings per common share $ 3.51 $ 3.05 $ 11.31 $ 9.46 Anti-dilutive options excluded from diluted earnings per 6.3 7.8 6.3 7.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Feb. 29, 2024 | |
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 February 29, 2024 and February 28, 2023 were as follows (in millions): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Defined benefit pension plans, net $ 92 $ 59 $ 274 $ 176 Defined contribution plans 240 242 722 714 Postretirement healthcare plans 20 24 64 70 $ 352 $ 325 $ 1,060 $ 960 Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 29, 2024 and February 28, 2023 included the following components (in millions): Three Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2024 2023 2024 2023 2024 2023 Service cost $ 136 $ 162 $ 9 $ 13 $ 7 $ 10 Other retirement plans expense (income): Interest cost 341 304 10 8 15 14 Expected return on plan assets ( 400 ) ( 422 ) ( 2 ) ( 3 ) — — Amortization of prior service credit and other ( 2 ) ( 1 ) — ( 2 ) ( 2 ) — ( 61 ) ( 119 ) 8 3 13 14 $ 75 $ 43 $ 17 $ 16 $ 20 $ 24 Nine Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2024 2023 2024 2023 2024 2023 Service cost $ 408 $ 488 $ 29 $ 34 $ 21 $ 28 Other retirement plans expense (income): Interest cost 1,022 913 32 25 45 42 Expected return on plan assets ( 1,199 ) ( 1,266 ) ( 13 ) ( 11 ) — — Amortization of prior service credit and other ( 5 ) ( 5 ) — ( 2 ) ( 2 ) — ( 182 ) ( 358 ) 19 12 43 42 $ 226 $ 130 $ 48 $ 46 $ 64 $ 70 For 2024, no pension contributions are required for our tax-q ualified U.S. domestic pension plan (“U.S. Pension Plan”) as it is fully funded under the Employee Retirement Income Security Act. We made voluntary contributions of $ 800 million to our U.S. Pension Plan during the nine-month period ended February 29, 2024 . |
Business Segment Information
Business Segment Information | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Business Segment Information | (7) Business Segment Information We provide a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating collaboratively, and innovating digitally as one FedEx. Our primary operating companies are FedEx Express, the world’s largest express transportation company; FedEx Ground, a leading North American provider of small-package ground delivery services; and FedEx Freight, a leading North American provider of LTL freight transportation services. These companies represent our major service lines and, along with FedEx Services, constitute our reportable segments. Our reportable segments include the following businesses: FedEx Express Segment FedEx Express (express transportation, small-package ground delivery, and freight transportation) FedEx Custom Critical, Inc. (time-critical transportation) FedEx Ground Segment FedEx Ground (small-package ground delivery) FedEx Freight Segment FedEx Freight (LTL freight transportation) FedEx Services Segment FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and back-office functions) In the fourth quarter of 2023, FedEx announced one FedEx, a consolidation plan to bring FedEx Express, FedEx Ground, and FedEx Services into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. The organizational redesign will be implemented in phases with the new legal structure complete by June 2024. During the implementation process in 2024, each of our current reportable segments will continue to have discrete financial information that will be regularly reviewed when evaluating performance and making resource allocation decisions, and aligns with our management reporting structure and our internal financial reporting. In the first quarter of 2025 when the consolidation plan has been completed, we expect to begin reporting a new segment structure that will align with an updated management reporting structure and how management will evaluate performance and make resource allocation decisions under one FedEx. References to our transportation segments include, collectively, the FedEx Express segment, the FedEx Ground segment, and the FedEx Freight segment. FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative, and information-technology functions in shared services operations for U.S. customers of our major business units and certain back-office support to our operating segments which allows us to obtain synergies from the combination of these functions. For the international regions of FedEx Express, some of these functions are performed on a regional basis and reported by FedEx Express in their natural expense line items. The FedEx Services segment provides direct and indirect support to our operating segments, and we allocate all of the net operating costs of the FedEx Services segment to reflect the full cost of operating our businesses in the results of those segments. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the effect of its total allocated net operating costs on our operating segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenue or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. Corporate, Other, and Eliminations Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, certain other costs and credits not attributed to our core business, and certain costs associated with developing our “innovate digitally” strategic pillar through our FedEx Dataworks operating segment. FedEx Dataworks is focused on creating solutions to transform the digital and physical experiences of our customers and team members. Also included in Corporate and other is the FedEx Office operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding. The results of Corporate, other, and eliminations are not allocated to the other business segments. Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue and expenses are eliminated in our consolidated results and are not separately identified in the following segment information because the amounts are not material. The following table provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the periods ended February 29, 2024 and February 28, 2023 (in millions): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Revenue: FedEx Express segment $ 10,101 $ 10,345 $ 30,440 $ 32,336 FedEx Ground segment 8,703 8,658 25,762 25,211 FedEx Freight segment 2,125 2,186 6,776 7,363 FedEx Services segment 64 87 201 225 Other and eliminations 745 893 2,405 3,090 $ 21,738 $ 22,169 $ 65,584 $ 68,225 Operating income (loss): FedEx Express segment $ 233 $ 119 $ 575 $ 634 FedEx Ground segment 942 844 2,945 2,136 FedEx Freight segment 340 386 1,308 1,477 Corporate, other, and eliminations ( 272 ) ( 307 ) ( 824 ) ( 838 ) $ 1,243 $ 1,042 $ 4,004 $ 3,409 |
Commitments
Commitments | 9 Months Ended |
Feb. 29, 2024 | |
Commitments [Abstract] | |
Commitments | (8) Commitments As of February 29, 2024, our purchase commitments under various contracts for the remainder of 2024 and annually thereafter were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2024 (remainder) $ 92 $ 158 $ 250 2025 1,596 654 2,250 2026 540 464 1,004 2027 269 234 503 2028 341 147 488 Thereafter 1,654 92 1,746 Total $ 4,492 $ 1,749 $ 6,241 (1) Primarily information technology and advertising. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above. As of February 29, 2024, we had $ 648 million in deposits and progress payments on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our accompanying unaudited condensed consolidated balance sheets. Aircraft and related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of February 29, 2024 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2024 (remainder) 5 2 3 — 10 2025 13 8 10 2 33 2026 14 1 2 — 17 2027 — — — — — 2028 — — — — — Thereafter — — — — — Total 32 11 15 2 60 A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year as of February 29, 2024 is as follows (in millions): Aircraft Facilities Total Finance Leases Total Leases 2024 (remainder) $ 30 $ 579 $ 609 $ 5 $ 614 2025 121 2,995 3,116 34 3,150 2026 117 2,666 2,783 30 2,813 2027 117 2,363 2,480 22 2,502 2028 117 2,036 2,153 21 2,174 Thereafter 246 9,031 9,277 648 9,925 Total lease payments 748 19,670 20,418 760 21,178 Less imputed interest ( 92 ) ( 3,001 ) ( 3,093 ) ( 328 ) ( 3,421 ) Present value of lease liability $ 656 $ 16,669 $ 17,325 $ 432 $ 17,757 While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations. As of February 29, 2024, FedEx has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for build-to-suit facilities and have undiscounted future payments of approximatel y $ 1.8 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2024 to 2027 . |
Contingencies
Contingencies | 9 Months Ended |
Feb. 29, 2024 | |
Loss Contingency [Abstract] | |
Contingencies | (9) Contingencies Service Provider Lawsuits . FedEx Ground is defending lawsuits in which it is alleged that FedEx Ground should be treated as a joint employer of drivers employed by service providers engaged by FedEx Ground. These cases are in varying stages of litigation, and we are not currently able to estimate an amount or range of potential loss in all of these matters. However, we do not expect to incur, individually or in the aggregate, a material loss in these matters. Nevertheless, adverse determinations in these matters could, among other things, entitle service providers’ drivers to certain payments, including wages and penalties, from the service providers and FedEx Ground and result in employment and withholding tax and benefit liability for FedEx Ground. We continue to believe that FedEx Ground is not an employer or joint employer of the drivers of these independent businesses. FedEx Services Employment Lawsuit . In May 2021, FedEx Services was named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Texas related to the termination of a former FedEx Services employee. The complaint alleged race discrimination and retaliation for complaints of discrimination under Section 1981 of the Civil Rights Act of 1866 and Title VII of the Civil Rights Act of 1964. After trial, in October 2022, the jury found in favor of FedEx Services on the race discrimination claims but awarded the plaintiff compensatory damages of approximately $ 1.0 million for emotional distress and punitive damages of $ 365 million for the retaliation claims. The court entered final judgment in the amount of approximately $ 366 million. FedEx Services appealed the verdict to the U.S. Court of Appeals for the Fifth Circuit. FedEx Services argued on appeal that FedEx Services is entitled to judgment as a matter of law on the retaliation claims, plaintiff’s claims were not timely filed, punitive damages are not available as a matter of law and, if allowed, must be reduced to no greater than a single-digit multiple of the award for compensatory damages based on the United States Supreme Court’s ruling in State Farm v. Campbell , and the compensatory damages award must be reduced to conform with the evidence and the Fifth Circuit’s maximum recovery rule. FedEx Services argued in the alternative that a new trial should be granted. In February 2024, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit reduced the $ 366 million judgment to approximately $ 250,000 . In March 2024, the U.S. Court of Appeals for the Fifth Circuit unanimously denied plaintiff’s petition for rehearing. An immaterial loss accrual has been recorded in FedEx’s consolidated financial statements. FedEx Ground Negligence Lawsuit. In December 2022, FedEx Ground was named as a defendant in a lawsuit filed in Texas state court related to the alleged kidnapping and first-degree murder of a minor by a driver employed by a service provider engaged by FedEx Ground. The complaint alleges compensatory and punitive damages against FedEx Ground for negligent and gross negligent hiring and retention, as well as negligent entrustment. The service provider and driver are also named as defendants in the lawsuit. An immaterial loss accrual has been recorded in FedEx’s consolidated financial statements. It is reasonably possible that an additional material loss could be incurred. Given the early stage of the litigation, we cannot estimate the amount or range of such additional loss, if any. Other Matters . FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime, or were not provided work breaks or other benefits, as well as other lawsuits containing allegations that FedEx and its subsidiaries are responsible for third-party losses related to vehicle accidents that could exceed our insurance coverage for such losses. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations, or cash flows. Environmental Matters . SEC regulations require us to disclose certain information about proceedings arising under federal, state, or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, FedEx uses a threshold of $ 1 million or more for purposes of determining whether disclosure of any such proceedings is required. Applying this threshold, there are no environmental matters required to be disclosed for this period. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Feb. 29, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | (10) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the nine-month periods ended February 29, 2024 and February 28, 2023 was as follows (in millions): 2024 2023 Cash payments for: Interest (net of capitalized interest) $ 538 $ 497 Income taxes $ 1,265 $ 823 Income tax refunds received ( 97 ) ( 50 ) Cash tax (refunds)/payments, net $ 1,168 $ 773 |
General (Policies)
General (Policies) | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 31, 2023 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of February 29, 2024, and the results of our operations for the three- and nine-month periods ended February 29, 2024 and February 28, 2023, cash flows for the nine-month periods ended February 29, 2024 and February 28, 2023, and changes in common stockholders’ investment for the three- and nine-month periods ended February 29, 2024 and February 28, 2023. Operating results for the three- and nine-month periods ended February 29, 2024 are not necessarily indicative of the results that may be expected for the year ending May 31, 2024. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2024 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year. |
Revenue Recognition | REVENUE RECOGNITION . Contract Assets and Liabilities Contract assets include billed and unbilled amounts resulting from in-transit shipments, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current, and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions. Gross contract assets related to in-transit shipments total ed $ 663 million and $ 686 million at February 29, 2024 and May 31, 2023, respectively. Contract assets net of deferred unearned revenue we re $ 455 million and $ 484 million at February 29, 2024 and May 31, 2023, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customer s were $ 23 million a nd $ 19 million at February 29, 2024 and May 31, 2023, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets. Disaggregation of Revenue The following table provides revenue by service type (in millions) for the periods ended February 29, 2024 and February 28, 2023. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended Nine Months Ended 2024 2023 2024 2023 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,145 $ 2,165 $ 6,491 $ 6,718 U.S. overnight envelope 450 478 1,382 1,477 U.S. deferred 1,317 1,346 3,712 3,886 Total U.S. domestic package revenue 3,912 3,989 11,585 12,081 International priority 2,318 2,566 7,035 8,286 International economy 1,014 698 3,123 2,116 Total international export package revenue 3,332 3,264 10,158 10,402 International domestic (1) 1,016 1,003 3,126 3,013 Total package revenue 8,260 8,256 24,869 25,496 Freight: U.S. 648 719 1,814 2,299 International priority 520 687 1,642 2,387 International economy 389 358 1,236 1,123 International airfreight 31 47 92 126 Total freight revenue 1,588 1,811 4,784 5,935 Other 253 278 787 905 Total FedEx Express segment 10,101 10,345 30,440 32,336 FedEx Ground segment 8,703 8,658 25,762 25,211 FedEx Freight segment 2,125 2,186 6,776 7,363 FedEx Services segment 64 87 201 225 Other and eliminations (2) 745 893 2,405 3,090 $ 21,738 $ 22,169 $ 65,584 $ 68,225 (1) International domestic revenue relates to our international intra-country operations. (2) Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments. |
Employees Under Collective Bargaining Arrangements | EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“FedEx Express”), who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board (“NMB”), which is the U.S. governmental agency that oversees labor agreements for entities covered by the Railway Labor Act of 1926, as amended, began actively mediating the negotiations. In July 2023, FedEx Express’s pilots failed to ratify the tentative successor agreement that was approved by ALPA’s FedEx Express Master Executive Council the prior month. Bargaining for a successor agreement continues. In March 2024, ALPA requested that the NMB release it from mediation. The conduct of mediated negotiations has no effect on our operations. A small number of our other employees are members of unions. |
Stock-Based Compensation | STOCK-BASED COMPENSATION. We have three types of equity-based compensation: stock options, restricted stock, and, for outside directors, restricted stock units. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and financial disclosures about these programs are set forth in our Annual Report. The key terms of the restricted stock units granted to our outside directors are set forth in our Current Report on Form 8-K dated September 21, 2023 and filed with the SEC on September 22, 2023. Our stock-based compensation expense was $ 34 million for the three-month period ended February 29, 2024 and $ 130 million for the nine-month period ended February 29, 2024. Our stock-based compensation expense was $ 34 million for the three-month period ended February 28, 2023 and $ 142 million for the nine-month period ended February 28, 2023. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. |
Business Optimization and Realignment Costs | BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We plan to consolidate our sortation facilities and equipment, reduce pickup-and-delivery routes, and optimize our enterprise linehaul network by moving beyond discrete collaboration to an end-to-end optimized network through Network 2.0, the multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada. In the fourth quarter of 2023, we announced one FedEx, a consolidation plan to bring FedEx Express, FedEx Ground Package System, Inc. (“FedEx Ground”), and FedEx Corporate Services, Inc. (“FedEx Services”) into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. FedEx Freight, Inc., a wholly owned subsidiary of FedEx Freight Corporation (“FedEx Freight”), will continue to provide less-than-truckload (“LTL”) freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with the new legal structure complete by June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0. FedEx is making progress with Network 2.0, as the company has implemented Network 2.0 optimization in more than 50 locations in the U.S. In some markets, contracted service providers will handle the pickup and delivery of FedEx Ground and FedEx Express packages. In others, pickup and delivery will be handled exclusively by employee couriers. We incurred costs associated with our business optimization activities of $ 114 million ($ 87 million, net of tax, or $ 0.35 per diluted share) in the three-month period ended February 29, 2024 and $ 364 million ($ 278 million, net of tax, or $ 1.10 per diluted share) in the nine-month period ended February 29, 2024 . These costs were primarily related to professional services and severance. We recognized $ 120 million ($ 92 million, net of tax, or $ 0.36 per diluted share) of costs under this program in the three-month period ended February 28, 2023 and $ 180 million ($ 138 million, net of tax, or $ 0.53 per diluted share) in the nine-month period ended February 28, 2023. These costs were primarily related to consulting services, severance and related costs associated with organizational changes announced in the third quarter of 2023, and idling our operations in Russia. Business optimization costs are included in Corporate, other, and eliminations, FedEx Ground, and FedEx Express. In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed in 2023. We incurred costs associated with our business realignment activities of $ 3 million ($ 2 million, net of tax, or $ 0.01 per diluted share) in the three-month period ended February 28, 2023 and $ 17 million ($ 13 million, net of tax, or $ 0.05 per diluted share) in the nine-month period ended February 28, 2023 . These costs were related to certain employee severance arrangements. The pre-tax cost of our business realignment activities through 2023 was approximately $ 430 million. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them. When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge. If a derivative is designated as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow hedge for any period presented. As of February 29, 2024 , we had € 153 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of February 29, 2024 , the hedge remains effective. |
Supplier Finance Program | SUPPLIER FINANCE PROGRAM. We offer a voluntary Supply Chain Finance (“SCF”) program through one of our financial institutions to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities, and payment terms, and they issue invoices to us based on the agreed-upon contractual terms. If our suppliers choose to participate in the SCF program, they determine which invoices, if any, to sell to the financial institution to receive an early discounted payment, while we settle the net payment amount with our financial institution on the payment due dates. We guarantee these payments with the financial institution. Amounts due to our suppliers that participate in the SCF program are included in accounts payable in our consolidated balance sheets. We have been informed by the participating financial institutions that as of February 29, 2024 and May 31, 2023 , suppliers have been approved to sell to them $ 64 million and $ 76 million, respectively, of our outstanding payment obligations. |
Recent Accounting Guidance | RECENT ACCOUNTING GUIDANCE. New accounting rules and disclosure requirements can significantly affect our reported results and the comparability of our financial statements. We believe the following new accounting guidance is relevant to the readers of our financial statements. Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program (e.g., reverse factoring) to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. We adopted this standard effective June 1, 2023 . The adoption of this standard did no t have a material effect on our consolidated financial statements and related disclosures. Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standards provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to existing contracts, hedging relationships, and other transactions affected by reference rate reform. The standards apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate to be discontinued because of reference rate reform. The standards were effective upon issuance and can generally be applied through December 31, 2024. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of February 29, 2024, we continue to monitor our contracts and transactions for potential application of these ASUs. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In March 2024, the SEC adopted final rules requiring public entities to provide certain climate-related information in their registration statements and annual reports. As part of the disclosures, entities will be required to quantify certain effects of severe weather events and other natural conditions in a note to their audited financial statements. The rules will be effective for annual periods beginning in calendar 2025 (fiscal 2026). We are assessing the effect of the new rules on our consolidated financial statements and related disclosures. |
Equity and Other Investments | EQUITY AND OTHER INVESTMENTS. Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other (expense) income, net” on our consolidated statements of income. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of available recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value. Equity investments that have readily determinable fair values, including investments for which we have elected the fair value option, are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other (expense) income, net” on our consolidated statements of income. During the nine-month period ended February 29, 2024 , we purchased $ 100 million of debt securities with effective maturities ranging from less than one year to approximately three years . We did no t purchase any debt securities during the three-month period ended February 29, 2024. These investments have been recognized in “Cash and cash equivalents” and “Prepaid expenses and other” on our consolidated balance sheets. As of February 29, 2024 , these investments are not material to our financial position or results of operations. |
Treasury Shares | TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $ 5 billion of FedEx common stock. As part of the 2021 program, we completed an accelerated share repurchase (“ASR”) agreement with a bank during the third quarter of 2024 to repurchase an aggregate of $ 1 billion of our common stock . During the three-month period ended February 29, 2024 , 4.1 million shares were repurchased under the ASR agreement at an average price of $ 245.80 per share for a total of $ 1 billion. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheet and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. During the nine-month period ended February 29, 2024 , we repurchased 8.0 million shares of FedEx common stock under ASR agreements under the 2021 program at an average price of $ 250.95 per share for a total of $ 2.0 billion. During the nine-month period ended February 28, 2023 , we repurchased 9.2 million shares of FedEx common stock under ASR agreements under the 2021 program at an average price of $ 163.39 per share for a total of $ 1.5 billion. As of February 29, 2024 , $ 564 million remained available to use for repurchases under the 2021 stock repurchase authorization. I n March 2024, our Board of Directors authorized a new stock repurchase program for additional repurchases of up to $ 5 billion. Shares under the 2021 and 2024 repurchase programs may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock, and general market conditions. No time limits were set for the completion of the programs, and the programs may be suspended or discontinued at any time. |
Dividend Declared per Common Share | DIVIDENDS DECLARED PER COMMON SHARE. On February 16, 2024 , our Board of Directors declared a quarterly dividend of $ 1.26 per share of common stock. The dividend will be paid on April 1, 2024 to stockholders of record as of the close of business on March 11, 2024 . Each quarterly dividend payment is subject to review and approval by our Bo ard of Directors, and we evaluate our dividend payment amount on an annual basis. There are no material restrictions on our ability to declare dividends, nor are there any material restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans, or advances. |
General (Tables)
General (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Service Type | The following table provides revenue by service type (in millions) for the periods ended February 29, 2024 and February 28, 2023. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended Nine Months Ended 2024 2023 2024 2023 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,145 $ 2,165 $ 6,491 $ 6,718 U.S. overnight envelope 450 478 1,382 1,477 U.S. deferred 1,317 1,346 3,712 3,886 Total U.S. domestic package revenue 3,912 3,989 11,585 12,081 International priority 2,318 2,566 7,035 8,286 International economy 1,014 698 3,123 2,116 Total international export package revenue 3,332 3,264 10,158 10,402 International domestic (1) 1,016 1,003 3,126 3,013 Total package revenue 8,260 8,256 24,869 25,496 Freight: U.S. 648 719 1,814 2,299 International priority 520 687 1,642 2,387 International economy 389 358 1,236 1,123 International airfreight 31 47 92 126 Total freight revenue 1,588 1,811 4,784 5,935 Other 253 278 787 905 Total FedEx Express segment 10,101 10,345 30,440 32,336 FedEx Ground segment 8,703 8,658 25,762 25,211 FedEx Freight segment 2,125 2,186 6,776 7,363 FedEx Services segment 64 87 201 225 Other and eliminations (2) 745 893 2,405 3,090 $ 21,738 $ 22,169 $ 65,584 $ 68,225 (1) International domestic revenue relates to our international intra-country operations. (2) Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Accumulated Other Comprehensive Income Loss Tables [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI") | The following table provides changes in accumulated other comprehensive income (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the periods ended February 29, 2024 and February 28, 2023 (in millions; amounts in parentheses indicate debits to AOCI): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Foreign currency translation loss: Balance at beginning of period $ ( 1,362 ) $ ( 1,427 ) $ ( 1,362 ) $ ( 1,148 ) Translation adjustments ( 39 ) 80 ( 39 ) ( 199 ) Balance at end of period ( 1,401 ) ( 1,347 ) ( 1,401 ) ( 1,347 ) Retirement plans adjustments: Balance at beginning of period 68 42 35 45 Prior service credit arising during period — — 36 — Reclassifications from AOCI ( 2 ) ( 3 ) ( 5 ) ( 6 ) Balance at end of period 66 39 66 39 Accumulated other comprehensive (loss) at end of period $ ( 1,335 ) $ ( 1,308 ) $ ( 1,335 ) $ ( 1,308 ) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table presents details of the reclassifications from AOCI for the periods ended February 29, 2024 and February 28, 2023 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from Affected Line Item in the Three Months Ended Nine Months Ended 2024 2023 2024 2023 Amortization of retirement plans $ 2 $ 3 $ 5 $ 7 Other retirement plans, net Income tax benefit — — — ( 1 ) Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 3 $ 5 $ 6 Net income |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Computation Of Earnings Per Share Tables [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share | The calculation of basic and diluted earnings per common share for the periods ended February 29, 2024 and February 28, 2023 was as follows (in millions, except per share amounts): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic earnings per common share: Net earnings allocable to common shares (1) $ 878 $ 770 $ 2,853 $ 2,430 Weighted-average common shares 247 251 249 255 Basic earnings per common share $ 3.55 $ 3.07 $ 11.43 $ 9.52 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 878 $ 770 $ 2,853 $ 2,430 Weighted-average common shares 247 251 249 255 Dilutive effect of share-based awards 3 2 3 2 Weighted-average diluted shares 250 253 252 257 Diluted earnings per common share $ 3.51 $ 3.05 $ 11.31 $ 9.46 Anti-dilutive options excluded from diluted earnings per 6.3 7.8 6.3 7.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Retirement Plan Tables [Abstract] | |
Schedule of Retirement Plan Costs | Our retirement plans costs for the periods ended February 29, 2024 and February 28, 2023 were as follows (in millions): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Defined benefit pension plans, net $ 92 $ 59 $ 274 $ 176 Defined contribution plans 240 242 722 714 Postretirement healthcare plans 20 24 64 70 $ 352 $ 325 $ 1,060 $ 960 |
Schedule of Net Periodic Benefit Cost | Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended February 29, 2024 and February 28, 2023 included the following components (in millions): Three Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2024 2023 2024 2023 2024 2023 Service cost $ 136 $ 162 $ 9 $ 13 $ 7 $ 10 Other retirement plans expense (income): Interest cost 341 304 10 8 15 14 Expected return on plan assets ( 400 ) ( 422 ) ( 2 ) ( 3 ) — — Amortization of prior service credit and other ( 2 ) ( 1 ) — ( 2 ) ( 2 ) — ( 61 ) ( 119 ) 8 3 13 14 $ 75 $ 43 $ 17 $ 16 $ 20 $ 24 Nine Months Ended U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2024 2023 2024 2023 2024 2023 Service cost $ 408 $ 488 $ 29 $ 34 $ 21 $ 28 Other retirement plans expense (income): Interest cost 1,022 913 32 25 45 42 Expected return on plan assets ( 1,199 ) ( 1,266 ) ( 13 ) ( 11 ) — — Amortization of prior service credit and other ( 5 ) ( 5 ) — ( 2 ) ( 2 ) — ( 182 ) ( 358 ) 19 12 43 42 $ 226 $ 130 $ 48 $ 46 $ 64 $ 70 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Segment Information | The following table provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the periods ended February 29, 2024 and February 28, 2023 (in millions): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Revenue: FedEx Express segment $ 10,101 $ 10,345 $ 30,440 $ 32,336 FedEx Ground segment 8,703 8,658 25,762 25,211 FedEx Freight segment 2,125 2,186 6,776 7,363 FedEx Services segment 64 87 201 225 Other and eliminations 745 893 2,405 3,090 $ 21,738 $ 22,169 $ 65,584 $ 68,225 Operating income (loss): FedEx Express segment $ 233 $ 119 $ 575 $ 634 FedEx Ground segment 942 844 2,945 2,136 FedEx Freight segment 340 386 1,308 1,477 Corporate, other, and eliminations ( 272 ) ( 307 ) ( 824 ) ( 838 ) $ 1,243 $ 1,042 $ 4,004 $ 3,409 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | As of February 29, 2024, our purchase commitments under various contracts for the remainder of 2024 and annually thereafter were as follows (in millions): Aircraft and Aircraft Related Other (1) Total 2024 (remainder) $ 92 $ 158 $ 250 2025 1,596 654 2,250 2026 540 464 1,004 2027 269 234 503 2028 341 147 488 Thereafter 1,654 92 1,746 Total $ 4,492 $ 1,749 $ 6,241 (1) Primarily information technology and advertising. |
Schedule of Aircraft Purchase Commitments | The following table is a summary of the key aircraft we are committed to purchase as of February 29, 2024 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2024 (remainder) 5 2 3 — 10 2025 13 8 10 2 33 2026 14 1 2 — 17 2027 — — — — — 2028 — — — — — Thereafter — — — — — Total 32 11 15 2 60 |
Summary of Future Minimum Lease Payments, Operating and Finance Leases | A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year as of February 29, 2024 is as follows (in millions): Aircraft Facilities Total Finance Leases Total Leases 2024 (remainder) $ 30 $ 579 $ 609 $ 5 $ 614 2025 121 2,995 3,116 34 3,150 2026 117 2,666 2,783 30 2,813 2027 117 2,363 2,480 22 2,502 2028 117 2,036 2,153 21 2,174 Thereafter 246 9,031 9,277 648 9,925 Total lease payments 748 19,670 20,418 760 21,178 Less imputed interest ( 92 ) ( 3,001 ) ( 3,093 ) ( 328 ) ( 3,421 ) Present value of lease liability $ 656 $ 16,669 $ 17,325 $ 432 $ 17,757 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow | Cash paid for interest expense and income taxes for the nine-month periods ended February 29, 2024 and February 28, 2023 was as follows (in millions): 2024 2023 Cash payments for: Interest (net of capitalized interest) $ 538 $ 497 Income taxes $ 1,265 $ 823 Income tax refunds received ( 97 ) ( 50 ) Cash tax (refunds)/payments, net $ 1,168 $ 773 |
General - Additional Informatio
General - Additional Information (Details) $ / shares in Units, € in Millions, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 29 Months Ended | ||||||
Feb. 16, 2024 $ / shares | Jan. 31, 2021 Employee | Feb. 29, 2024 USD ($) $ / shares shares | Feb. 28, 2023 USD ($) $ / shares shares | Feb. 29, 2024 USD ($) $ / shares shares | Feb. 28, 2023 USD ($) $ / shares shares | May 31, 2023 USD ($) | Mar. 21, 2024 USD ($) | Feb. 29, 2024 EUR (€) | Dec. 16, 2021 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Gross contract assets related to in-transit shipments | $ 663,000,000 | $ 663,000,000 | $ 686,000,000 | |||||||
Contract assets net of deferred unearned revenue | 455,000,000 | 455,000,000 | 484,000,000 | |||||||
Contract liabilities related to advance payments from customers | 23,000,000 | 23,000,000 | 19,000,000 | |||||||
Stock-based compensation | 34,000,000 | $ 34,000,000 | 130,000,000 | $ 142,000,000 | ||||||
Business realignment costs | 3,000,000 | 17,000,000 | 430,000,000 | |||||||
Number of employees left or voluntarily leaving | Employee | 5,000 | |||||||||
Business realignment costs, net of tax | $ 2,000,000 | $ 13,000,000 | ||||||||
Business realignment costs per diluted share | $ / shares | $ 0.01 | $ 0.05 | ||||||||
Business optimization costs | 114,000,000 | $ 120,000,000 | 364,000,000 | $ 180,000,000 | ||||||
Business optimization costs, net of tax | $ 87,000,000 | $ 92,000,000 | $ 278,000,000 | $ 138,000,000 | ||||||
Business optimization costs per diluted share | $ / shares | $ 0.35 | $ 0.36 | $ 1.1 | $ 0.53 | ||||||
Denominated debt as a net investment hedge | € | € 153 | |||||||||
Suppliers approved to sell outstanding payment obligations | $ 64,000,000 | $ 64,000,000 | $ 76,000,000 | |||||||
Purchase of debt securities | $ 0 | $ 100,000,000 | ||||||||
Debt instrument effective maturity start range minimum value | less than one year | |||||||||
Debt securities, maturity, maximum period | 3 years | |||||||||
Number of shares repurchased | shares | 4.1 | 1.3 | 8 | 9.2 | ||||||
Payments for repurchase of common stock | $ 2,000,000,000 | $ 1,500,000,000 | ||||||||
Dividends payable, date declared | Feb. 16, 2024 | |||||||||
Dividends payable amount per share | $ / shares | $ 1.26 | |||||||||
Dividends payable, date to be paid | Apr. 01, 2024 | |||||||||
Dividends payable, date of record | Mar. 11, 2024 | |||||||||
ASU 2022-04 | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Change in accounting principle, accounting standards update, adopted | true | true | true | |||||||
Change in accounting principle, accounting standards update, adoption date | Jun. 01, 2023 | Jun. 01, 2023 | Jun. 01, 2023 | |||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | true | |||||||
2022 Repurchase Program | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Stock repurchase program number of shares authorized to be repurchased, amount | $ 5,000,000,000 | |||||||||
Accelerated Share Repurchase Agreement | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Number of shares repurchased | shares | 4.1 | 8 | 9.2 | |||||||
Stock repurchase program number of shares authorized to be repurchased, remaining available amount | $ 564,000,000 | $ 564,000,000 | ||||||||
Treasury stock acquired, average cost price per share | $ / shares | $ 245.8 | $ 250.95 | $ 163.39 | |||||||
Payments for repurchase of common stock | $ 1,000,000,000 | $ 2,000,000,000 | $ 1,500,000,000 | |||||||
Subsequent Event [Member] | Accelerated Share Repurchase Agreement | ||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||||
Stock repurchase program number of shares authorized to be repurchased, amount | $ 5,000,000,000 |
General - Schedule of Revenue b
General - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | ||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | $ 21,738 | $ 22,169 | $ 65,584 | $ 68,225 | |
Operating Segments [Member] | FedEx Express Segment [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 10,101 | 10,345 | 30,440 | 32,336 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 8,260 | 8,256 | 24,869 | 25,496 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. overnight box [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 2,145 | 2,165 | 6,491 | 6,718 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. overnight envelope [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 450 | 478 | 1,382 | 1,477 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. deferred [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 1,317 | 1,346 | 3,712 | 3,886 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | Total U.S [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 3,912 | 3,989 | 11,585 | 12,081 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International priority [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 2,318 | 2,566 | 7,035 | 8,286 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International economy [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 1,014 | 698 | 3,123 | 2,116 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | Total international export package revenue [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 3,332 | 3,264 | 10,158 | 10,402 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International domestic [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | [1] | 1,016 | 1,003 | 3,126 | 3,013 |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 1,588 | 1,811 | 4,784 | 5,935 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | Total U.S [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 648 | 719 | 1,814 | 2,299 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International priority [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 520 | 687 | 1,642 | 2,387 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International economy [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 389 | 358 | 1,236 | 1,123 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International Airfreight [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 31 | 47 | 92 | 126 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 253 | 278 | 787 | 905 | |
Operating Segments [Member] | FedEx Ground Segment [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 8,703 | 8,658 | 25,762 | 25,211 | |
Operating Segments [Member] | FedEx Freight Segment [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 2,125 | 2,186 | 6,776 | 7,363 | |
Operating Segments [Member] | FedEx Services Segment [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | 64 | 87 | 201 | 225 | |
Other and eliminations [Member] | |||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||
Revenues | [2] | $ 745 | $ 893 | $ 2,405 | $ 3,090 |
[1] International domestic revenue relates to our international intra-country operations. Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments. |
Credit Losses - Additional Info
Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Credit Loss [Abstract] | |||||
Credit losses | $ 106 | $ 111 | $ 323 | $ 536 | |
Allowance for credit losses | $ 441 | $ 441 | $ 472 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 26,088 | |||
Translation adjustments | $ (39) | $ 80 | (39) | $ (199) |
Ending Balance | 26,375 | 24,733 | 26,375 | 24,733 |
Foreign Currency Translation Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,362) | (1,427) | (1,362) | (1,148) |
Translation adjustments | (39) | 80 | (39) | (199) |
Ending Balance | (1,401) | (1,347) | (1,401) | (1,347) |
Retirement Plans Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 68 | 42 | 35 | 45 |
Prior service credit arising during period | 36 | |||
Reclassifications from AOCI | (2) | (3) | (5) | (6) |
Ending Balance | 66 | 39 | 66 | 39 |
Accumulated Other Comprehensive (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,294) | (1,385) | (1,327) | (1,103) |
Ending Balance | $ (1,335) | $ (1,308) | $ (1,335) | $ (1,308) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other retirement plans income (expense) | $ 2 | $ 3 | $ 5 | $ 7 |
Provision for income taxes | (1) | |||
Net income | $ 2 | $ 3 | $ 5 | $ 6 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 15, 2024 USD ($) | Feb. 29, 2024 USD ($) AirCraft | Feb. 29, 2024 USD ($) AirCraft | May 31, 2023 USD ($) | |
Line Of Credit Facility [Line Items] | ||||
Number of Boeing aircraft | AirCraft | 19 | 19 | ||
Net book value of Boeing aircraft | $ 1,700,000,000 | $ 1,700,000,000 | ||
Financial covenant terms ratio | 3.50% | 3.50% | ||
Financial covenant compliance ratio | 1.90% | 1.90% | ||
Long term debt, including current maturities and exclusive of finance leases carrying value | $ 19,800,000,000 | $ 19,800,000,000 | $ 19,800,000,000 | |
Long term debt, including current maturities and exclusive of finance leases fair value | $ 17,700,000,000 | $ 17,700,000,000 | $ 17,500,000,000 | |
Long-term debt weighted-average interest rate | 3.50% | 3.50% | ||
Subsequent Event [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Financial covenant terms ratio | 4% | |||
Line of credit facility, financial covenant, minimum cash consideration for acquisition | $ 250,000,000 | |||
Subsequent Event [Member] | During First Three Quarters upon Acquisition [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Financial covenant compliance ratio | 3.50% | |||
Old Five-Year Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, term | 5 years | |||
Line of credit facility maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | ||
Letter of credit maximum sublimit amount | 250,000,000 | 250,000,000 | ||
Letter of credit outstanding sublimit unused amount | $ 250,000,000 | 250,000,000 | ||
Old Three-Year Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, term | 3 years | |||
Line of credit facility maximum borrowing capacity | $ 1,500,000,000 | 1,500,000,000 | ||
Old Credit Agreements [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit outstanding | 0 | 0 | ||
Commercial paper outstanding | 0 | 0 | ||
New Five-Year Credit Agreement [Member] | Subsequent Event [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, term | 5 years | |||
Line of credit facility maximum borrowing capacity | $ 1,750,000,000 | |||
Line of credit facility, expiration date | 2029-03 | |||
Letter of credit maximum sublimit amount | $ 125,000,000 | |||
Letter of credit outstanding sublimit unused amount | $ 125,000,000 | |||
New Three-Year Credit Agreement [Member] | Subsequent Event [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, term | 3 years | |||
Line of credit facility maximum borrowing capacity | $ 1,750,000,000 | |||
Line of credit facility, expiration date | 2027-03 | |||
Letter of credit maximum sublimit amount | $ 125,000,000 | |||
Letter of credit outstanding sublimit unused amount | $ 125,000,000 | |||
New Credit Agreements [Member] | Subsequent Event [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, financial covenant terms | (i) net unrestricted cash and cash equivalents up to $500 million from the definition of debt and (ii) add back business optimization and restructuring expenses and pro forma cost savings and synergies associated with an acquisition to adjusted EBITDA. The aggregate amount of adjustments for business optimization and restructuring expenses and pro forma cost savings and synergies associated with an acquisition may not exceed 10% of adjusted EBITDA (calculated after giving effect to any such addback and such cap and all other permitted addbacks and adjustments) in any period. Additionally, following the consummation of an acquisition for which the aggregate cash consideration is at least $250 million, FedEx may elect to increase the ratio to 4.0 to 1.0 with respect to the last day of the fiscal quarter during which such acquisition is consummated and the last day of each of the immediately following three consecutive fiscal quarters, provided that there must be at least two consecutive fiscal quarters between such elections during which the ratio is 3.5 to 1.0. | |||
Maximum required net unrestricted cash and cash equivalents for financial covenant | $ 500,000,000 | |||
Line of credit facility, financial covenant, maximum percentage of adjusted EBITDA | 10% | |||
1.875% due in February 2034 [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 970,000,000 | $ 970,000,000 | ||
Fixed interest rate | 1.875% | 1.875% | ||
Debt instrument, maturity date | 2034-02 |
Computation of Earnings Per S_3
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | ||
Basic earnings per common share: | |||||
Net earnings allocable to common shares | [1] | $ 878 | $ 770 | $ 2,853 | $ 2,430 |
Weighted-average common shares | 247 | 251 | 249 | 255 | |
Basic earnings per common share | $ 3.55 | $ 3.07 | $ 11.43 | $ 9.52 | |
Diluted earnings per common share: | |||||
Net earnings allocable to common shares | [1] | $ 878 | $ 770 | $ 2,853 | $ 2,430 |
Weighted-average common shares | 247 | 251 | 249 | 255 | |
Dilutive effect of share-based awards | 3 | 2 | 3 | 2 | |
Weighted-average diluted shares | 250 | 253 | 252 | 257 | |
Diluted earnings per common share | $ 3.51 | $ 3.05 | $ 11.31 | $ 9.46 | |
Anti-dilutive options excluded from diluted earnings per common share | 6.3 | 7.8 | 6.3 | 7.7 | |
[1] Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans - Schedule of
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||||
Defined benefit pension plans, net | $ 92 | $ 59 | $ 274 | $ 176 |
Defined contribution plans | 240 | 242 | 722 | 714 |
Postretirement healthcare plans | 20 | 24 | 64 | 70 |
Retirement plans costs | $ 352 | $ 325 | $ 1,060 | $ 960 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pension Plans [Member] | U.S. Plans [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | $ 136 | $ 162 | $ 408 | $ 488 |
Other retirement plans expense (income): | ||||
Interest cost | 341 | 304 | 1,022 | 913 |
Expected return on plan assets | (400) | (422) | (1,199) | (1,266) |
Amortization of prior service credit and other | (2) | (1) | (5) | (5) |
Other retirement plans (income) expense | (61) | (119) | (182) | (358) |
Net periodic benefit cost | 75 | 43 | 226 | 130 |
Pension Plans [Member] | International Pension Plans [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 9 | 13 | 29 | 34 |
Other retirement plans expense (income): | ||||
Interest cost | 10 | 8 | 32 | 25 |
Expected return on plan assets | (2) | (3) | (13) | (11) |
Amortization of prior service credit and other | (2) | (2) | ||
Other retirement plans (income) expense | 8 | 3 | 19 | 12 |
Net periodic benefit cost | 17 | 16 | 48 | 46 |
Postretirement Healthcare Plans [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 7 | 10 | 21 | 28 |
Other retirement plans expense (income): | ||||
Interest cost | 15 | 14 | 45 | 42 |
Expected return on plan assets | ||||
Amortization of prior service credit and other | (2) | (2) | ||
Other retirement plans (income) expense | 13 | 14 | 43 | 42 |
Net periodic benefit cost | $ 20 | $ 24 | $ 64 | $ 70 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - U.S. Pension Plans [Member] - USD ($) | 9 Months Ended | |
Feb. 29, 2024 | May 31, 2024 | |
Voluntary Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan contributions by employer | $ 800,000,000 | |
Pension Plans [Member] | Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan required future employer contributions | $ 0 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 21,738 | $ 22,169 | $ 65,584 | $ 68,225 |
Operating income (loss) | 1,243 | 1,042 | 4,004 | 3,409 |
Operating Segments [Member] | FedEx Express Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,101 | 10,345 | 30,440 | 32,336 |
Operating income (loss) | 233 | 119 | 575 | 634 |
Operating Segments [Member] | FedEx Ground Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,703 | 8,658 | 25,762 | 25,211 |
Operating income (loss) | 942 | 844 | 2,945 | 2,136 |
Operating Segments [Member] | FedEx Freight Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,125 | 2,186 | 6,776 | 7,363 |
Operating income (loss) | 340 | 386 | 1,308 | 1,477 |
Operating Segments [Member] | FedEx Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 64 | 87 | 201 | 225 |
Corporate, Other and Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 745 | 893 | 2,405 | 3,090 |
Operating income (loss) | $ (272) | $ (307) | $ (824) | $ (838) |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | Feb. 29, 2024 USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2024 (remainder) | $ 250 | |
2025 | 2,250 | |
2026 | 1,004 | |
2027 | 503 | |
2028 | 488 | |
Thereafter | 1,746 | |
Total | 6,241 | |
Aircraft and Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2024 (remainder) | 92 | |
2025 | 1,596 | |
2026 | 540 | |
2027 | 269 | |
2028 | 341 | |
Thereafter | 1,654 | |
Total | 4,492 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2024 (remainder) | 158 | [1] |
2025 | 654 | [1] |
2026 | 464 | [1] |
2027 | 234 | [1] |
2028 | 147 | [1] |
Thereafter | 92 | [1] |
Total | $ 1,749 | [1] |
[1] Primarily information technology and advertising. |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | 9 Months Ended |
Feb. 29, 2024 USD ($) | |
Other Aircraft Commitments Disclosure [Abstract] | |
Deposit and progress payments | $ 648 |
Lessee Disclosure [Abstract] | |
Additional leases not yet commenced, undiscounted future payments | $ 1,800 |
Minimum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2024 |
Maximum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2027 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 9 Months Ended |
Feb. 29, 2024 AirCraft | |
Schedule of Aircraft Commitments [Line Items] | |
2024 (remainder) | 10 |
2025 | 33 |
2026 | 17 |
Total | 60 |
Cessna SkyCourier 408 [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2024 (remainder) | 5 |
2025 | 13 |
2026 | 14 |
Total | 32 |
ATR 72-600F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2024 (remainder) | 2 |
2025 | 8 |
2026 | 1 |
Total | 11 |
B767F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2024 (remainder) | 3 |
2025 | 10 |
2026 | 2 |
Total | 15 |
B777F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2025 | 2 |
Total | 2 |
Commitments - Summary of Future
Commitments - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) $ in Millions | Feb. 29, 2024 USD ($) |
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items] | |
2024 (remainder) | $ 614 |
2025 | 3,150 |
2026 | 2,813 |
2027 | 2,502 |
2028 | 2,174 |
Thereafter | 9,925 |
Total lease payments | 21,178 |
Less imputed interest | (3,421) |
Present value of lease liability | 17,757 |
Operating Leases | |
2024 (remainder) | 609 |
2025 | 3,116 |
2026 | 2,783 |
2027 | 2,480 |
2028 | 2,153 |
Thereafter | 9,277 |
Total lease payments | 20,418 |
Less imputed interest | (3,093) |
Present value of lease liability | 17,325 |
Finance Leases | |
2024 (remainder) | 5 |
2025 | 34 |
2026 | 30 |
2027 | 22 |
2028 | 21 |
Thereafter | 648 |
Total lease payments | 760 |
Less imputed interest | (328) |
Present value of lease liability | 432 |
Aircraft and Related Equipment [Member] | |
Operating Leases | |
2024 (remainder) | 30 |
2025 | 121 |
2026 | 117 |
2027 | 117 |
2028 | 117 |
Thereafter | 246 |
Total lease payments | 748 |
Less imputed interest | (92) |
Present value of lease liability | 656 |
Facilities and Other [Member] | |
Operating Leases | |
2024 (remainder) | 579 |
2025 | 2,995 |
2026 | 2,666 |
2027 | 2,363 |
2028 | 2,036 |
Thereafter | 9,031 |
Total lease payments | 19,670 |
Less imputed interest | (3,001) |
Present value of lease liability | $ 16,669 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | |
Oct. 25, 2022 | Feb. 29, 2024 | |
Loss Contingencies [Line Items] | ||
Loss contingency, approximate damages awarded value | $ 1,000,000 | |
Loss contingency, punitive damages value | 365,000,000 | |
Loss Contingency, approxiate final judgement amount | $ 366,000,000 | $ 250,000 |
Environmental matters threshold | $ 1,000,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest (net of capitalized interest) | $ 538 | $ 497 |
Income taxes | 1,265 | 823 |
Income tax refunds received | (97) | (50) |
Cash tax (refunds)/payments, net | $ 1,168 | $ 773 |