Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 31, 2022 | Sep. 20, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 | 260,219,792 | |
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 | Aug. 31, 2022 | May 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,850 | $ 6,897 |
Receivables, less allowances of $786 and $692 | 11,055 | 11,863 |
Spare parts, supplies, and fuel, less allowances of $363 and $360 | 647 | 637 |
Prepaid expenses and other | 1,054 | 968 |
Total current assets | 19,606 | 20,365 |
PROPERTY AND EQUIPMENT, AT COST | 76,712 | 75,275 |
Less accumulated depreciation and amortization | 37,906 | 37,184 |
Net property and equipment | 38,806 | 38,091 |
OTHER LONG-TERM ASSETS | ||
Operating lease right-of-use assets, net | 17,219 | 16,613 |
Goodwill | 6,316 | 6,544 |
Other assets | 3,879 | 4,381 |
Total other long-term assets | 27,414 | 27,538 |
ASSETS | 85,826 | 85,994 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 139 | 82 |
Accrued salaries and employee benefits | 2,263 | 2,531 |
Accounts payable | 4,167 | 4,030 |
Operating lease liabilities | 2,470 | 2,443 |
Accrued expenses | 4,726 | 5,188 |
Total current liabilities | 13,765 | 14,274 |
LONG-TERM DEBT, LESS CURRENT PORTION | 19,918 | 20,182 |
OTHER LONG-TERM LIABILITIES | ||
Deferred income taxes | 4,134 | 4,093 |
Pension, postretirement healthcare, and other benefit obligations | 4,055 | 4,448 |
Self-insurance accruals | 3,042 | 2,889 |
Operating lease liabilities | 15,118 | 14,487 |
Other liabilities | 654 | 682 |
Total other long-term liabilities | 27,003 | 26,599 |
COMMITMENTS AND CONTINGENCIES | ||
COMMON STOCKHOLDERS' INVESTMENT | ||
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of August 31, 2022 and May 31, 2022 | 32 | 32 |
Additional paid-in capital | 3,751 | 3,712 |
Retained earnings | 33,060 | 32,782 |
Accumulated other comprehensive loss | (1,314) | (1,103) |
Treasury stock, at cost | (10,389) | (10,484) |
Total common stockholders’ investment | 25,140 | 24,939 |
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT | $ 85,826 | $ 85,994 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Aug. 31, 2022 | May 31, 2022 |
CURRENT ASSETS | ||
Allowances for receivables | $ 786 | $ 692 |
Allowances for spare parts, supplies and fuel | $ 363 | $ 360 |
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 | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement [Abstract] | ||
REVENUE | $ 23,242 | $ 22,003 |
OPERATING EXPENSES: | ||
Salaries and employee benefits | 7,859 | 7,776 |
Purchased transportation | 5,767 | 5,659 |
Rentals and landing fees | 1,159 | 1,133 |
Depreciation and amortization | 1,024 | 971 |
Fuel | 1,822 | 1,009 |
Maintenance and repairs | 904 | 869 |
Business realignment and optimization costs | 38 | 67 |
Other | 3,478 | 3,121 |
OPERATING EXPENSES | 22,051 | 20,605 |
OPERATING INCOME | 1,191 | 1,398 |
OTHER (EXPENSE) INCOME: | ||
Interest, net | (142) | (160) |
Other retirement plans income | 101 | 216 |
Other, net | 4 | 3 |
OTHER (EXPENSE) INCOME | (37) | 59 |
INCOME BEFORE INCOME TAXES | 1,154 | 1,457 |
PROVISION FOR INCOME TAXES | 279 | 345 |
NET INCOME | $ 875 | $ 1,112 |
EARNINGS PER COMMON SHARE: | ||
Basic | $ 3.37 | $ 4.17 |
Diluted | 3.33 | 4.09 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 2.30 | $ 1.50 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 875 | $ 1,112 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||
Foreign currency translation adjustments, net of tax benefit of $18 in 2022 and tax benefit of $0 in 2021 | (209) | (147) |
Amortization of prior service credit, net of tax benefit of $0 in 2022 and $0 in 2021 | (2) | (2) |
Other comprehensive income (loss) | (211) | (149) |
COMPREHENSIVE INCOME | $ 664 | $ 963 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Other Comprehensive Income, Tax Amounts | ||
Foreign currency translation adjustments, tax benefit | $ 18 | $ 0 |
Amortization of prior service credit, tax benefit | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Operating Activities: | ||
Net income | $ 875 | $ 1,112 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 1,024 | 971 |
Provision for uncollectible accounts | 245 | 117 |
Stock-based compensation | 68 | 69 |
Other noncash items including leases and deferred income taxes | 774 | 884 |
Business realignment and optimization costs/(payments), net | (14) | 36 |
Changes in assets and liabilities: | ||
Receivables | 259 | 726 |
Other assets | (170) | (171) |
Accounts payable and other liabilities | (1,473) | (1,616) |
Other, net | 19 | (44) |
Cash provided by operating activities | 1,607 | 2,084 |
Investing Activities: | ||
Capital expenditures | (1,284) | (1,570) |
Purchase of investments | (35) | |
Proceeds from asset dispositions and other | 10 | 20 |
Cash used in investing activities | (1,309) | (1,550) |
Financing Activities: | ||
Principal payments on debt | (29) | (64) |
Proceeds from stock issuances | 81 | 84 |
Dividends paid | (299) | (200) |
Purchase of treasury stock | (549) | |
Other, net | (1) | |
Cash (used in) provided by financing activities | (247) | (730) |
Effect of exchange rate changes on cash | (98) | (38) |
Net (decrease) increase in cash and cash equivalents | (47) | (234) |
Cash and cash equivalents at beginning of period | 6,897 | 7,087 |
Cash and cash equivalents at end of period | $ 6,850 | $ 6,853 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Common Stockholders' Investment - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Beginning Balance | $ 24,939 | |
Net income | 875 | $ 1,112 |
Other comprehensive income, net of tax benefit of $18 and $0 | (211) | (149) |
Ending Balance | 25,140 | 24,321 |
Common Stock | ||
Beginning Balance | 32 | 32 |
Ending Balance | 32 | 32 |
Additional Paid-In Capital | ||
Beginning Balance | 3,712 | 3,481 |
Employee incentive plans and other | 39 | 129 |
Ending Balance | 3,751 | 3,610 |
Retained Earnings | ||
Beginning Balance | 32,782 | 29,817 |
Net income | 875 | 1,112 |
Cash dividends declared ($2.30 and $1.50 per share) | (597) | (400) |
Employee incentive plans and other | (67) | |
Ending Balance | 33,060 | 30,462 |
Accumulated Other Comprehensive Loss | ||
Beginning Balance | (1,103) | (732) |
Other comprehensive income, net of tax benefit of $18 and $0 | (211) | (149) |
Ending Balance | (1,314) | (881) |
Treasury Stock | ||
Beginning Balance | (10,484) | (8,430) |
Purchase of treasury stock (0.0 and 1.9 million shares) | (549) | |
Employee incentive plans and other | 95 | 77 |
Ending Balance | $ (10,389) | $ (8,902) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared, per share | $ 2.30 | $ 1.50 |
Other comprehensive income, tax benefit | $ 18 | $ 0 |
Purchase of treasury stock | 0 | 1,900,000 |
Employee incentive plans and other, shares issued | 700,000 | 600,000 |
General
General | 3 Months Ended |
Aug. 31, 2022 | |
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 year ended May 31, 2022 (“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 August 31, 2022, and the results of our operations for the three-month periods ended August 31, 2022 and 2021, cash flows for the three-month periods ended August 31, 2022 and 2021, and changes in common stockholders’ investment for the three-month periods ended August 31, 2022 and 2021. Operating results for the three-month period ended August 31, 2022 are not necessarily indicative of the results that may be expected for the year ending May 31, 2023. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2023 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 $ 774 million and $ 861 million at August 31, 2022 and May 31, 2022, respectively. Contract assets net of deferred unearned revenue we re $ 556 million and $ 623 million at August 31, 2022 and May 31, 2022, 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 $ 14 million a nd $ 8 million at August 31, 2022 and May 31, 2022, 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 August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2022 2021 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,316 $ 2,170 U.S. overnight envelope 525 482 U.S. deferred 1,287 1,231 Total U.S. domestic package revenue 4,128 3,883 International priority 2,897 2,839 International economy 707 669 Total international export package revenue 3,604 3,508 International domestic (1) 974 1,114 Total package revenue 8,706 8,505 Freight: U.S. 796 775 International priority 888 873 International economy 377 414 International airfreight 41 47 Total freight revenue 2,102 2,109 Other 319 352 Total FedEx Express segment 11,127 10,966 FedEx Ground segment 8,160 7,677 FedEx Freight segment 2,723 2,251 FedEx Services segment 70 35 Other and eliminations (2) 1,162 1,074 $ 23,242 $ 22,003 (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 (including ShopRunner, 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 employed under a collective bargaining agreement that took effect on November 2, 2015, and became amendable in November 2021. Bargaining for a successor agreement began in May 2021 and continues . A small number of our other employees are members of unions. STOCK-BASED COMPENSATION. We have two types of equity-based compensation: stock options and restricted stock. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense w as $ 68 million f or the three-month period ended August 31, 2022 and $ 69 million for the three-month period ended August 31, 2021 . Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. BUSINESS REALIGNMENT AND OPTIMIZATION COSTS. In 2021, FedEx Express announced a workforce reduc tion plan in Europe related to the network integration of TNT Express. The plan will affect approximately 5,000 em ployees in Europe across operational teams and back-office functions. The execution of the plan is subject to a works council consultation process that will occur through 2023 in accordance with local country processes and regulations. We incurred costs associated with our business realignment activitie s of $ 14 million ($ 11 million, net of tax, or $ 0.04 per dilu ted share) in the first quarter of 2023. We recognized $ 67 million ($ 52 million, net of tax, or $ 0.19 p er diluted share) of costs under this program in the fir st quarter of 2022. These costs are related to certain employee severance arrangements. Payments under this program totaled approximately $ 46 million in the first quarter of 2023 . We expect the pre-tax cost of our business realignment activities to be approxim ately $ 420 million through 2023. The actual amount and timing of business realignment costs and related cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans and may differ from our current expectation and estimates. In the first quarter of 2023, FedEx announced 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 and lower our overhead and support costs. 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 optimization. We incurred costs associated with our business optimization acti vities of $ 24 million ($ 19 million, net of tax, or $ 0.07 pe r diluted share) in the first quarter of 2023. These costs are related to consulting services and are included in Corporate, other, and eliminations. We expect the pre-tax cost of our business optimization activities to be approximately $ 2.0 billion through 2025. For additional information about the business realignment and optimization costs, see the section titled “Business Realignment and Optimization Costs” included in Item 2 of this Form 10-Q (“Management’s Discussion and Analysis of Results of Operations and Financial Condition”). 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 August 31, 2022, we had € 93 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 August 31, 2022 , the hedge remains effective. 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. New Accounting Standards and Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848), which provides 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 amendments 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 guidance was effective upon issuance and can generally be applied through December 31, 2022. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of August 31, 2022, we continue to monitor our contracts and transactions for potential application of this ASU. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. We are assessing the impact of this new standard on our consolidated stateme nts. EQUITY 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. As of August 31, 2022, these investments were not material to our financial position or results of operations. TREASURY SHARES. In December 2021, our Board of Directors authorized a new stock repurchase program of up to $ 5 billion of FedEx common stock. We did no t repurchase any shares of FedEx common stock during the first quarter of 2023 . As of August 31, 20 22, $ 4.1 b illion remained available to use for repurchases under the program. DIVIDENDS DECLARED PER COMMON SHARE. On August 12, 2022 , our Board of Directors declared a quarterly dividend of $ 1.15 p er share of common stock. The dividend will be paid on October 3, 2022 to stockhol ders of record as of the close of business on September 2, 2022 . Each quarterly dividend payment is subject to review and approval by our Board 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 | 3 Months Ended |
Aug. 31, 2022 | |
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 forecasted 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 $ 245 million for the three-month period ended August 31, 2022 and $ 117 million for the three-month period ended August 31, 2021. Our allowance for credit losses wa s $ 426 million at August 31, 2022 and $ 340 million at May 31, 2022 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Aug. 31, 2022 | |
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 three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to AOCI): 2022 2021 Foreign currency translation loss: Balance at beginning of period $ ( 1,148 ) $ ( 785 ) Translation adjustments ( 209 ) ( 147 ) Balance at end of period ( 1,357 ) ( 932 ) Retirement plans adjustments: Balance at beginning of period 45 53 Reclassifications from AOCI ( 2 ) ( 2 ) Balance at end of period 43 51 Accumulated other comprehensive (loss) at end of period $ ( 1,314 ) $ ( 881 ) The following table presents details of the reclassifications from AOCI for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from Affected Line Item in the 2022 2021 Amortization of retirement plans $ 2 $ 2 Other retirement plans income Income tax benefit — — Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 2 Net income |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Aug. 31, 2022 | |
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 $ 1.8 billion a t August 31, 2022. The payment obligations of FedEx Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx. FedEx Express is using the proceeds from the issuance for general corporate purposes. We have a $ 2.0 billion five-year credit agreement (the “Five-Year Credit Agreement”) and a $ 1.5 billion three-year credit agreement (the “Three-Year Credit Agreement” and together with the Five-Year Credit Agreement, the “Credit Agreements”). The Five-Year Credit Agreement expires in March 2026 and includes a $ 250 million letter of credit sublimit. The Three-Year Credit Agreement expires in March 2025 . The Credit Agreements are available to finance our operations and other cash flow needs. As of August 31, 2022 , no commercial paper w as outstanding, and we had $ 250 million of the letter of credit sublimit unused under the Five-Year Credit Agreement. Outstanding commercial paper reduces the amount available to borrow under the Credit Agreements. Our Credit Agreements contain a financial covenant requiring us to maintain a ratio of debt to consolidated earnings (excluding noncash retirement plans mark-to-market (“MTM”) adjustments, noncash pension service costs, and noncash asset impairment charges) before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) of not more t han 3.5 to 1.0, calcu lated as of the last day of each fiscal quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITD A was 1.83 to 1.0 a t August 31, 2022. The financial covenant discussed above is the only significant restrictive covenant in the Credit Agreements. The Credit Agreements contain other customary covenants that do not, individually or in the aggregate, materially restrict the conduct of our business. We are in compliance with the financial covenant and all other covenants in the Credit Agreements and do not expect the covenants 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 Credit Agreements, our access to financing could become limited. Long-term debt, including current maturities and exclusive of finance leases, had carrying val ues of $ 19.5 billion at August 31, 2022 a nd $ 19.8 billion at May 31, 2022, compared with estimated fair values of $ 18.1 billion a t August 31, 2022 and $ 18.8 billion a t May 31, 2022. The annualized weighted-average interest rate on long-term debt was 3.5 % at August 31, 2022. 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 | 3 Months Ended |
Aug. 31, 2022 | |
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 three-month periods ended August 31 was as follows (in millions, except per share amounts): 2022 2021 Basic earnings per common share: Net earnings allocable to common shares (1) $ 874 $ 1,110 Weighted-average common shares 259 266 Basic earnings per common share $ 3.37 $ 4.17 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 874 $ 1,110 Weighted-average common shares 259 266 Dilutive effect of share-based awards 3 5 Weighted-average diluted shares 262 271 Diluted earnings per common share $ 3.33 $ 4.09 Anti-dilutive options excluded from diluted earnings per 5.7 2.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Aug. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | (6) Retirement Plans We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans, and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report. Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions): 2022 2021 Defined benefit pension plans, net $ 59 $ ( 3 ) Defined contribution plans 244 180 Postretirement healthcare plans 23 22 $ 326 $ 199 Net periodic benefit cost of the pension and postretirement healthcare plans for the three-month periods ended August 31 included the following components (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2022 2021 2022 2021 2022 2021 Service cost $ 163 $ 208 $ 11 $ 15 $ 9 $ 12 Other retirement plans expense (income): Interest cost 304 256 9 12 14 10 Expected return on plan assets ( 422 ) ( 478 ) ( 4 ) ( 14 ) — — Amortization of prior service credit and other ( 2 ) ( 2 ) — — — — ( 120 ) ( 224 ) 5 ( 2 ) 14 10 $ 43 $ ( 16 ) $ 16 $ 13 $ 23 $ 22 For 2023, no pension contributions are required for our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”) as they are fully funded under the Employee Retirement Income Security Act. We made voluntary contributions to our U.S. Pension Plans of $ 400 million d uring the first quarter of 2023. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Aug. 31, 2022 | |
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 under the respected FedEx brand. Our primary operating companies are FedEx Express, the world’s largest express transportation company; FedEx Ground Package System, Inc. (“FedEx Ground”), a leading North American provider of small-package ground delivery services; and FedEx Freight Corporation (“FedEx Freight”), a leading North American provider of less-than-truckload (“LTL”) freight transportation services. These companies represent our major service lines and, along with FedEx Corporate Services, Inc. (“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) 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, including certain other costs and credits not attributed to our core business, as well as 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 are 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 three-month periods ended August 31 (in millions): 2022 2021 Revenue: FedEx Express segment $ 11,127 $ 10,966 FedEx Ground segment 8,160 7,677 FedEx Freight segment 2,723 2,251 FedEx Services segment 70 35 Other and eliminations 1,162 1,074 $ 23,242 $ 22,003 Operating income (loss): FedEx Express segment $ 174 $ 567 FedEx Ground segment 694 671 FedEx Freight segment 651 390 Corporate, other, and eliminations ( 328 ) ( 230 ) $ 1,191 $ 1,398 |
Commitments
Commitments | 3 Months Ended |
Aug. 31, 2022 | |
Commitments [Abstract] | |
Commitments | (8) Commitments As of August 31, 2022, our purchase commitments under various contracts for the remainder of 2023 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2023 (remainder) $ 1,705 $ 713 $ 2,418 2024 1,936 697 2,633 2025 1,403 504 1,907 2026 404 435 839 2027 307 171 478 Thereafter 1,932 141 2,073 Total $ 7,687 $ 2,661 $ 10,348 (1) Primarily equipment and advertising contracts. The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of August 31, 2022, our obligation to purchas e two Boeing 767-300 Freighter (“B767F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditiona l purchase obligations for financial reporting purposes and are not included in the table above. As of August 31, 2022, we had $ 803 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 August 31, 2022 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2023 (remainder) 10 9 10 1 30 2024 12 6 14 4 36 2025 12 6 10 2 30 2026 14 1 — — 15 2027 — — — — — Thereafter — — — — — Total 48 22 34 7 111 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 August 31, 2022 is as follows (in millions): Aircraft Facilities Total Finance Leases Total Leases 2023 (remainder) $ 137 $ 2,042 $ 2,179 $ 87 $ 2,266 2024 109 2,630 2,739 59 2,798 2025 81 2,366 2,447 31 2,478 2026 78 2,099 2,177 30 2,207 2027 78 1,848 1,926 21 1,947 Thereafter 164 8,694 8,858 668 9,526 Total lease payments 647 19,679 20,326 896 21,222 Less imputed interest ( 47 ) ( 2,691 ) ( 2,738 ) ( 352 ) ( 3,090 ) Present value of lease liability $ 600 $ 16,988 $ 17,588 $ 544 $ 18,132 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 August 31, 2022, 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 approximately $ 2.2 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2023 to 2024 . |
Contingencies
Contingencies | 3 Months Ended |
Aug. 31, 2022 | |
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 wage payments 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 Ground Vehicle Accident Lawsuit . In July 2012, FedEx Ground was named as a defendant in a lawsuit filed in New Mexico state court related to a vehicle accident involving a driver employed by a service provider engaged by FedEx Ground that resulted in three fatalities, including the driver employed by the service provider. The complaint alleged personal injury and wrongful death. After trial, in January 2015, the jury awarded the plaintiffs compensatory damages of approximately $ 160 million. Following the trial judge’s recusal, this award was affirmed by the substitute judge in July 2015 and by the New Mexico Court of Appeals in February 2018, respectively. FedEx Ground subsequently sought a discretionary appeal to the New Mexico Supreme Court to address what FedEx Ground believed to be an excessive verdict. The New Mexico Supreme Court granted FedEx Ground’s appeal in June 2018. In May 2022, the New Mexico Supreme Court affirmed the decision of the New Mexico Court of Appeals. A loss reserve in the amount of approximately $ 370 million was recorded in FedEx’s consolidated financial statements for the year ended May 31, 2022, representing the approximately $ 160 million base amount of the judgment and accrued pre- and post-judgment interest, with a corresponding insurance receivable recorded for the base amount of the judgment in excess of FedEx Ground’s $ 7.5 million self-insured retention and insurance deductible. In July 2022 we paid approximately $ 370 million to plaintiffs and their counsel. Our insurance carriers funded the base amount of the judgment in excess of FedEx Ground’s self-insured retention and insurance deductible. We are vigorously pursuing reimbursement of each insurance carrier’s share of our payment of approximately $ 210 million of pre- and post-judgment interest through litigation and arbitration. 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 | 3 Months Ended |
Aug. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | (10) Supplemental Cash Flow Information Cash paid for interest expense and income taxes for the three-month periods ended August 31 was as follows (in millions): 2022 2021 Cash payments for: Interest (net of capitalized interest) $ 154 $ 150 Income taxes $ 139 $ 92 Income tax refunds received ( 36 ) ( 16 ) Cash tax payments, net $ 103 $ 76 |
General (Policies)
General (Policies) | 3 Months Ended |
Aug. 31, 2022 | |
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 year ended May 31, 2022 (“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 August 31, 2022, and the results of our operations for the three-month periods ended August 31, 2022 and 2021, cash flows for the three-month periods ended August 31, 2022 and 2021, and changes in common stockholders’ investment for the three-month periods ended August 31, 2022 and 2021. Operating results for the three-month period ended August 31, 2022 are not necessarily indicative of the results that may be expected for the year ending May 31, 2023. Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2023 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 $ 774 million and $ 861 million at August 31, 2022 and May 31, 2022, respectively. Contract assets net of deferred unearned revenue we re $ 556 million and $ 623 million at August 31, 2022 and May 31, 2022, 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 $ 14 million a nd $ 8 million at August 31, 2022 and May 31, 2022, 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 August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2022 2021 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,316 $ 2,170 U.S. overnight envelope 525 482 U.S. deferred 1,287 1,231 Total U.S. domestic package revenue 4,128 3,883 International priority 2,897 2,839 International economy 707 669 Total international export package revenue 3,604 3,508 International domestic (1) 974 1,114 Total package revenue 8,706 8,505 Freight: U.S. 796 775 International priority 888 873 International economy 377 414 International airfreight 41 47 Total freight revenue 2,102 2,109 Other 319 352 Total FedEx Express segment 11,127 10,966 FedEx Ground segment 8,160 7,677 FedEx Freight segment 2,723 2,251 FedEx Services segment 70 35 Other and eliminations (2) 1,162 1,074 $ 23,242 $ 22,003 (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 (including ShopRunner, 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 employed under a collective bargaining agreement that took effect on November 2, 2015, and became amendable in November 2021. Bargaining for a successor agreement began in May 2021 and continues . A small number of our other employees are members of unions. |
Stock-Based Compensation | STOCK-BASED COMPENSATION. We have two types of equity-based compensation: stock options and restricted stock. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and all financial disclosures about these programs are set forth in our Annual Report. Our stock-based compensation expense w as $ 68 million f or the three-month period ended August 31, 2022 and $ 69 million for the three-month period ended August 31, 2021 . Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report. |
Business Realignment and Optimization Costs | BUSINESS REALIGNMENT AND OPTIMIZATION COSTS. In 2021, FedEx Express announced a workforce reduc tion plan in Europe related to the network integration of TNT Express. The plan will affect approximately 5,000 em ployees in Europe across operational teams and back-office functions. The execution of the plan is subject to a works council consultation process that will occur through 2023 in accordance with local country processes and regulations. We incurred costs associated with our business realignment activitie s of $ 14 million ($ 11 million, net of tax, or $ 0.04 per dilu ted share) in the first quarter of 2023. We recognized $ 67 million ($ 52 million, net of tax, or $ 0.19 p er diluted share) of costs under this program in the fir st quarter of 2022. These costs are related to certain employee severance arrangements. Payments under this program totaled approximately $ 46 million in the first quarter of 2023 . We expect the pre-tax cost of our business realignment activities to be approxim ately $ 420 million through 2023. The actual amount and timing of business realignment costs and related cost savings resulting from the workforce reduction plan are dependent on local country consultation processes and regulations and negotiated social plans and may differ from our current expectation and estimates. In the first quarter of 2023, FedEx announced 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 and lower our overhead and support costs. 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 optimization. We incurred costs associated with our business optimization acti vities of $ 24 million ($ 19 million, net of tax, or $ 0.07 pe r diluted share) in the first quarter of 2023. These costs are related to consulting services and are included in Corporate, other, and eliminations. We expect the pre-tax cost of our business optimization activities to be approximately $ 2.0 billion through 2025. For additional information about the business realignment and optimization costs, see the section titled “Business Realignment and Optimization Costs” included in Item 2 of this Form 10-Q (“Management’s Discussion and Analysis of Results of Operations and Financial Condition”). |
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 August 31, 2022, we had € 93 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 August 31, 2022 , the hedge remains effective. |
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. New Accounting Standards and Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848), which provides 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 amendments 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 guidance was effective upon issuance and can generally be applied through December 31, 2022. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of August 31, 2022, we continue to monitor our contracts and transactions for potential application of this ASU. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. We are assessing the impact of this new standard on our consolidated stateme nts. |
Equity Investments | EQUITY 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. As of August 31, 2022, these investments were not material to our financial position or results of operations. |
Treasury Shares | TREASURY SHARES. In December 2021, our Board of Directors authorized a new stock repurchase program of up to $ 5 billion of FedEx common stock. We did no t repurchase any shares of FedEx common stock during the first quarter of 2023 . As of August 31, 20 22, $ 4.1 b illion remained available to use for repurchases under the program. |
Dividend Declared per Common Share | DIVIDENDS DECLARED PER COMMON SHARE. On August 12, 2022 , our Board of Directors declared a quarterly dividend of $ 1.15 p er share of common stock. The dividend will be paid on October 3, 2022 to stockhol ders of record as of the close of business on September 2, 2022 . Each quarterly dividend payment is subject to review and approval by our Board 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) | 3 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Service Type | The following table provides revenue by service type (in millions) for the periods ended August 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance. Three Months Ended 2022 2021 REVENUE BY SERVICE TYPE FedEx Express segment: Package: U.S. overnight box $ 2,316 $ 2,170 U.S. overnight envelope 525 482 U.S. deferred 1,287 1,231 Total U.S. domestic package revenue 4,128 3,883 International priority 2,897 2,839 International economy 707 669 Total international export package revenue 3,604 3,508 International domestic (1) 974 1,114 Total package revenue 8,706 8,505 Freight: U.S. 796 775 International priority 888 873 International economy 377 414 International airfreight 41 47 Total freight revenue 2,102 2,109 Other 319 352 Total FedEx Express segment 11,127 10,966 FedEx Ground segment 8,160 7,677 FedEx Freight segment 2,723 2,251 FedEx Services segment 70 35 Other and eliminations (2) 1,162 1,074 $ 23,242 $ 22,003 (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 (including ShopRunner, Inc.) (“FedEx Dataworks”) operating segments. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
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 three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to AOCI): 2022 2021 Foreign currency translation loss: Balance at beginning of period $ ( 1,148 ) $ ( 785 ) Translation adjustments ( 209 ) ( 147 ) Balance at end of period ( 1,357 ) ( 932 ) Retirement plans adjustments: Balance at beginning of period 45 53 Reclassifications from AOCI ( 2 ) ( 2 ) Balance at end of period 43 51 Accumulated other comprehensive (loss) at end of period $ ( 1,314 ) $ ( 881 ) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table presents details of the reclassifications from AOCI for the three-month periods ended August 31 (in millions; amounts in parentheses indicate debits to earnings): Amount Reclassified from Affected Line Item in the 2022 2021 Amortization of retirement plans $ 2 $ 2 Other retirement plans income Income tax benefit — — Provision for income taxes AOCI reclassifications, net of tax $ 2 $ 2 Net income |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
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 three-month periods ended August 31 was as follows (in millions, except per share amounts): 2022 2021 Basic earnings per common share: Net earnings allocable to common shares (1) $ 874 $ 1,110 Weighted-average common shares 259 266 Basic earnings per common share $ 3.37 $ 4.17 Diluted earnings per common share: Net earnings allocable to common shares (1) $ 874 $ 1,110 Weighted-average common shares 259 266 Dilutive effect of share-based awards 3 5 Weighted-average diluted shares 262 271 Diluted earnings per common share $ 3.33 $ 4.09 Anti-dilutive options excluded from diluted earnings per 5.7 2.7 (1) Net earnings available to participating securities were immaterial in all periods presented. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Retirement Plan Tables [Abstract] | |
Schedule of Retirement Plan Costs | Our retirement plans costs for the three-month periods ended August 31 were as follows (in millions): 2022 2021 Defined benefit pension plans, net $ 59 $ ( 3 ) Defined contribution plans 244 180 Postretirement healthcare plans 23 22 $ 326 $ 199 |
Schedule of Net Periodic Benefit Cost | Net periodic benefit cost of the pension and postretirement healthcare plans for the three-month periods ended August 31 included the following components (in millions): U.S. Pension Plans International Pension Plans Postretirement Healthcare Plans 2022 2021 2022 2021 2022 2021 Service cost $ 163 $ 208 $ 11 $ 15 $ 9 $ 12 Other retirement plans expense (income): Interest cost 304 256 9 12 14 10 Expected return on plan assets ( 422 ) ( 478 ) ( 4 ) ( 14 ) — — Amortization of prior service credit and other ( 2 ) ( 2 ) — — — — ( 120 ) ( 224 ) 5 ( 2 ) 14 10 $ 43 $ ( 16 ) $ 16 $ 13 $ 23 $ 22 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
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 three-month periods ended August 31 (in millions): 2022 2021 Revenue: FedEx Express segment $ 11,127 $ 10,966 FedEx Ground segment 8,160 7,677 FedEx Freight segment 2,723 2,251 FedEx Services segment 70 35 Other and eliminations 1,162 1,074 $ 23,242 $ 22,003 Operating income (loss): FedEx Express segment $ 174 $ 567 FedEx Ground segment 694 671 FedEx Freight segment 651 390 Corporate, other, and eliminations ( 328 ) ( 230 ) $ 1,191 $ 1,398 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Commitments Tables [Abstract] | |
Schedule of Purchase Commitments | As of August 31, 2022, our purchase commitments under various contracts for the remainder of 2023 and annually thereafter were as follows (in millions): Aircraft and Related Other (1) Total 2023 (remainder) $ 1,705 $ 713 $ 2,418 2024 1,936 697 2,633 2025 1,403 504 1,907 2026 404 435 839 2027 307 171 478 Thereafter 1,932 141 2,073 Total $ 7,687 $ 2,661 $ 10,348 (1) Primarily equipment and advertising contracts. |
Schedule of Aircraft Purchase Commitments | The following table is a summary of the key aircraft we are committed to purchase as of August 31, 2022 with the year of expected delivery: Cessna SkyCourier 408 ATR 72-600F B767F B777F Total 2023 (remainder) 10 9 10 1 30 2024 12 6 14 4 36 2025 12 6 10 2 30 2026 14 1 — — 15 2027 — — — — — Thereafter — — — — — Total 48 22 34 7 111 |
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 August 31, 2022 is as follows (in millions): Aircraft Facilities Total Finance Leases Total Leases 2023 (remainder) $ 137 $ 2,042 $ 2,179 $ 87 $ 2,266 2024 109 2,630 2,739 59 2,798 2025 81 2,366 2,447 31 2,478 2026 78 2,099 2,177 30 2,207 2027 78 1,848 1,926 21 1,947 Thereafter 164 8,694 8,858 668 9,526 Total lease payments 647 19,679 20,326 896 21,222 Less imputed interest ( 47 ) ( 2,691 ) ( 2,738 ) ( 352 ) ( 3,090 ) Present value of lease liability $ 600 $ 16,988 $ 17,588 $ 544 $ 18,132 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow | Cash paid for interest expense and income taxes for the three-month periods ended August 31 was as follows (in millions): 2022 2021 Cash payments for: Interest (net of capitalized interest) $ 154 $ 150 Income taxes $ 139 $ 92 Income tax refunds received ( 36 ) ( 16 ) Cash tax payments, net $ 103 $ 76 |
General - Additional Informatio
General - Additional Information (Details) $ / shares in Units, € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | 53 Months Ended | ||||||
Aug. 12, 2022 $ / shares | Aug. 31, 2022 USD ($) $ / shares shares | Aug. 31, 2021 USD ($) $ / shares shares | May 31, 2023 USD ($) | May 31, 2021 Employee | May 31, 2025 USD ($) | Aug. 31, 2022 EUR (€) | May 31, 2022 USD ($) | Dec. 16, 2021 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Gross contract assets related to in-transit shipments | $ 774 | $ 861 | |||||||
Contract assets net of deferred unearned revenue | 556 | 623 | |||||||
Contract liabilities related to advance payments from customers | 14 | $ 8 | |||||||
Stock-based compensation | 68 | $ 69 | |||||||
Number of employees will affect in workforce reduction plan | Employee | 5,000 | ||||||||
Business realignment costs | 14 | 67 | |||||||
Business realignment costs, net of tax | $ 11 | $ 52 | |||||||
Business realignment costs per diluted share | $ / shares | $ 0.04 | $ 0.19 | |||||||
Business employee severance costs paid | $ 46 | ||||||||
Business optimization costs | 24 | ||||||||
Business optimization costs, net of tax | $ 19 | ||||||||
Business optimization costs per diluted share | $ / shares | $ 0.07 | ||||||||
Denominated debt as a net investment hedge | € | € 93 | ||||||||
Stock repurchase program number of shares authorized to be repurchased, amount | $ 5,000 | ||||||||
Stock repurchase program number of shares authorized to be repurchased, remaining available amount | $ 4,100 | ||||||||
Number of shares repurchased | shares | 0 | 1,900,000 | |||||||
Dividends payable, date declared | Aug. 12, 2022 | ||||||||
Dividends payable amount per share | $ / shares | $ 1.15 | ||||||||
Dividends payable, date to be paid | Oct. 03, 2022 | ||||||||
Dividends payable, date of record | Sep. 02, 2022 | ||||||||
Forecast [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Business realignment costs | $ 420 | ||||||||
Business optimization costs | $ 2,000 |
General - Schedule of Revenue b
General - Schedule of Revenue by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | ||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | $ 23,242 | $ 22,003 | |
Operating Segments [Member] | FedEx Express Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 11,127 | 10,966 | |
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight box [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,316 | 2,170 | |
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight envelope [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 525 | 482 | |
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. deferred [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 1,287 | 1,231 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 4,128 | 3,883 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International priority [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,897 | 2,839 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International economy [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 707 | 669 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total international export package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 3,604 | 3,508 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International domestic [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [1] | 974 | 1,114 |
Operating Segments [Member] | FedEx Express Segment [Member] | Total package revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 8,706 | 8,505 | |
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 796 | 775 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International priority freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 888 | 873 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International Economy Freight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 377 | 414 | |
Operating Segments [Member] | FedEx Express Segment [Member] | International Airfreight [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 41 | 47 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,102 | 2,109 | |
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 319 | 352 | |
Operating Segments [Member] | FedEx Ground Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 8,160 | 7,677 | |
Operating Segments [Member] | FedEx Freight Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 2,723 | 2,251 | |
Operating Segments [Member] | FedEx Services Segment [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | 70 | 35 | |
Other and eliminations [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Revenues | [2] | $ 1,162 | $ 1,074 |
[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 (including ShopRunner, Inc.) (“FedEx Dataworks”) operating segments. |
Credit Losses - Additional Info
Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | May 31, 2022 | |
Credit Loss [Abstract] | |||
Credit losses | $ 245 | $ 117 | |
Allowance for credit losses | $ 426 | $ 340 |
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 | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 24,939 | |
Translation adjustments | (209) | $ (147) |
Ending Balance | 25,140 | 24,321 |
Foreign Currency Translation Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (1,148) | (785) |
Translation adjustments | (209) | (147) |
Ending Balance | (1,357) | (932) |
Retirement Plans Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 45 | 53 |
Reclassifications from AOCI | (2) | (2) |
Ending Balance | 43 | 51 |
Accumulated Other Comprehensive (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (1,103) | (732) |
Ending Balance | $ (1,314) | $ (881) |
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 | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Other retirement plans income | $ 2 | $ 2 |
Provision for income taxes | 0 | 0 |
Net income | $ 2 | $ 2 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Details) | 3 Months Ended | |
Aug. 31, 2022 USD ($) AirCraft | May 31, 2022 USD ($) | |
Line Of Credit Facility [Line Items] | ||
Number of Boeing aircraft | AirCraft | 19 | |
Net book value of Boeing aircraft | $ 1,800,000,000 | |
Financial covenant terms ratio | 3.50% | |
Financial covenant compliance ratio | 1.83% | |
Long term debt, including current maturities and exclusive of finance leases carrying value | $ 19,500,000,000 | $ 19,800,000,000 |
Long term debt, including current maturities and exclusive of finance leases fair value | $ 18,100,000,000 | $ 18,800,000,000 |
Long-term debt weighted-average interest rate | 3.50% | |
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 | |
Line of credit facility, expiration date | 2026-03 | |
Letter of credit maximum sublimit amount | $ 250,000,000 | |
Letter of credit outstanding sublimit unused amount | $ 250,000,000 | |
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 | |
Line of credit facility, expiration date | 2025-03 | |
Credit Agreement [Member] | ||
Line Of Credit Facility [Line Items] | ||
Commercial paper outstanding | $ 0 | |
1.875% due in February 2034 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 970,000,000 | |
Fixed interest rate | 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 | ||
Aug. 31, 2022 | Aug. 31, 2021 | ||
Basic earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 874 | $ 1,110 |
Weighted-average common shares | 259 | 266 | |
Basic earnings per common share | $ 3.37 | $ 4.17 | |
Diluted earnings per common share: | |||
Net earnings allocable to common shares | [1] | $ 874 | $ 1,110 |
Weighted-average common shares | 259 | 266 | |
Dilutive effect of share-based awards | 3 | 5 | |
Weighted-average diluted shares | 262 | 271 | |
Diluted earnings per common share | $ 3.33 | $ 4.09 | |
Anti-dilutive options excluded from diluted earnings per common share | 5.7 | 2.7 | |
[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 | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||
Defined benefit pension plans, net | $ 59 | $ (3) |
Defined contribution plans | 244 | 180 |
Postretirement healthcare plans | 23 | 22 |
Retirement plans costs | $ 326 | $ 199 |
Retirement Plans - Schedule o_2
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Pension Plans [Member] | U.S. Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | $ 163 | $ 208 |
Other retirement plans expense (income): | ||
Interest cost | 304 | 256 |
Expected return on plan assets | (422) | (478) |
Amortization of prior service credit and other | (2) | (2) |
Other retirement plans (income) expense | (120) | (224) |
Net periodic benefit cost | 43 | (16) |
Pension Plans [Member] | International Pension Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 11 | 15 |
Other retirement plans expense (income): | ||
Interest cost | 9 | 12 |
Expected return on plan assets | (4) | (14) |
Other retirement plans (income) expense | 5 | (2) |
Net periodic benefit cost | 16 | 13 |
Postretirement Healthcare Plans [Member] | ||
Net Periodic Benefit Cost | ||
Service cost | 9 | 12 |
Other retirement plans expense (income): | ||
Interest cost | 14 | 10 |
Other retirement plans (income) expense | 14 | 10 |
Net periodic benefit cost | $ 23 | $ 22 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - U.S. Pension Plans [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Aug. 31, 2022 | May 31, 2023 | |
Voluntary Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan contributions by employer | $ 400,000,000 | |
Pension Plans [Member] | Forecast [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan contributions by employer | $ 0 |
Business Segment Information -
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 23,242 | $ 22,003 |
Operating income (loss) | 1,191 | 1,398 |
Operating Segments [Member] | FedEx Express Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 11,127 | 10,966 |
Operating income (loss) | 174 | 567 |
Operating Segments [Member] | FedEx Ground Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 8,160 | 7,677 |
Operating income (loss) | 694 | 671 |
Operating Segments [Member] | FedEx Freight Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,723 | 2,251 |
Operating income (loss) | 651 | 390 |
Operating Segments [Member] | FedEx Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 70 | 35 |
Corporate, Other and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,162 | 1,074 |
Operating income (loss) | $ (328) | $ (230) |
Commitments - Schedule of Purch
Commitments - Schedule of Purchase Commitments (Details) $ in Millions | Aug. 31, 2022 USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2023 (remainder) | $ 2,418 | |
2024 | 2,633 | |
2025 | 1,907 | |
2026 | 839 | |
2027 | 478 | |
Thereafter | 2,073 | |
Total | 10,348 | |
Aircraft And Related Equipment Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2023 (remainder) | 1,705 | |
2024 | 1,936 | |
2025 | 1,403 | |
2026 | 404 | |
2027 | 307 | |
Thereafter | 1,932 | |
Total | 7,687 | |
Other Commitments [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
2023 (remainder) | 713 | [1] |
2024 | 697 | [1] |
2025 | 504 | [1] |
2026 | 435 | [1] |
2027 | 171 | [1] |
Thereafter | 141 | [1] |
Total | $ 2,661 | [1] |
[1] Primarily equipment and advertising contracts. |
Commitments - Additional Inform
Commitments - Additional Information (Details) $ in Millions | 3 Months Ended |
Aug. 31, 2022 USD ($) AirCraft | |
Other Aircraft Commitments Disclosure [Abstract] | |
Deposit and Progress Payments | $ 803 |
Lessee Disclosure [Abstract] | |
Additional leases not yet commenced, undiscounted future payments | $ 2,200 |
Minimum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2023 |
Maximum [Member] | |
Lessee Disclosure [Abstract] | |
Operating lease commencement date | 2024 |
B767F [Member] | |
Other Aircraft Commitments Disclosure [Abstract] | |
Conditional Aircraft Commitments | AirCraft | 2 |
Commitments - Schedule of Aircr
Commitments - Schedule of Aircraft Purchase Commitments (Details) | 3 Months Ended |
Aug. 31, 2022 AirCraft | |
Schedule of Aircraft Commitments [Line Items] | |
2023 (remainder) | 30 |
2024 | 36 |
2025 | 30 |
2026 | 15 |
Total | 111 |
Cessna SkyCourier 408 [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2023 (remainder) | 10 |
2024 | 12 |
2025 | 12 |
2026 | 14 |
Total | 48 |
ATR 72-600F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2023 (remainder) | 9 |
2024 | 6 |
2025 | 6 |
2026 | 1 |
Total | 22 |
B767F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2023 (remainder) | 10 |
2024 | 14 |
2025 | 10 |
Total | 34 |
B777F [Member] | |
Schedule of Aircraft Commitments [Line Items] | |
2023 (remainder) | 1 |
2024 | 4 |
2025 | 2 |
Total | 7 |
Commitments - Summary of Future
Commitments - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) $ in Millions | Aug. 31, 2022 USD ($) |
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items] | |
2023 (remainder) | $ 2,266 |
2024 | 2,798 |
2025 | 2,478 |
2026 | 2,207 |
2027 | 1,947 |
Thereafter | 9,526 |
Total lease payments | 21,222 |
Less imputed interest | (3,090) |
Present value of lease liability | 18,132 |
Operating Leases | |
2023 (remainder) | 2,179 |
2024 | 2,739 |
2025 | 2,447 |
2026 | 2,177 |
2027 | 1,926 |
Thereafter | 8,858 |
Total lease payments | 20,326 |
Less imputed interest | (2,738) |
Present value of lease liability | 17,588 |
Finance Leases | |
2023 (remainder) | 87 |
2024 | 59 |
2025 | 31 |
2026 | 30 |
2027 | 21 |
Thereafter | 668 |
Total lease payments | 896 |
Less imputed interest | (352) |
Present value of lease liability | 544 |
Aircraft and Related Equipment [Member] | |
Operating Leases | |
2023 (remainder) | 137 |
2024 | 109 |
2025 | 81 |
2026 | 78 |
2027 | 78 |
Thereafter | 164 |
Total lease payments | 647 |
Less imputed interest | (47) |
Present value of lease liability | 600 |
Facilities and Other [Member] | |
Operating Leases | |
2023 (remainder) | 2,042 |
2024 | 2,630 |
2025 | 2,366 |
2026 | 2,099 |
2027 | 1,848 |
Thereafter | 8,694 |
Total lease payments | 19,679 |
Less imputed interest | (2,691) |
Present value of lease liability | $ 16,988 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2022 | Jan. 31, 2015 | May 31, 2022 | |
Loss Contingencies [Line Items] | |||
Loss contingency, damages awarded value | $ 160 | ||
Loss Contingency, reserve | $ 370 | ||
Loss contingency self-insured retention and insurance deductible | 7.5 | ||
Loss Contingency, base amount | $ 160 | ||
Loss Contingency, paid amount | $ 370 | ||
Loss Contingency insurance coverages for reimbursement | $ 210 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest (net of capitalized interest) | $ 154 | $ 150 |
Income taxes | 139 | 92 |
Income tax refunds received | (36) | (16) |
Cash tax payments, net | $ 103 | $ 76 |