Exhibit 99.1
FedEx Corporation
Retrospective Adoption of New Accounting Guidance Regarding
Presentation of Comprehensive Income
The information in this exhibit reflects the retrospective adoption of new accounting guidance with respect to certain financial information contained in our Annual Report on Form 10-K for the fiscal year ended May 31, 2012 (the “Annual Report”).
As discussed in our Quarterly Report on Form 10-Q for the quarter ended August 31, 2012, we have adopted the authoritative guidance issued by the Financial Accounting Standards Board on the presentation of comprehensive income. This guidance requires companies to report components of comprehensive income by including comprehensive income on the face of the income statement or in a separate statement of comprehensive income.
Consolidated Statements of Comprehensive Income (Loss)
The following table presents the unaudited Consolidated Statements of Comprehensive Income (Loss) for the fiscal years ended May 31, 2012, 2011, and 2010, and should be read in conjunction with the information in our Annual Report.
FedEx Corporation
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(In Millions)
Year ended May 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
NET INCOME | $ | 2,032 | $ | 1,452 | $ | 1,184 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||
Foreign currency translation adjustments, net of tax of $26 in 2012, $27 in 2011, and $2 in 2010 | (95 | ) | 125 | (25 | ) | |||||||
Retirements plans adjustments, net of tax of $1,369 in 2012, $141 in 2011, and $617 in 2010 | (2,308 | ) | (235 | ) | (1,042 | ) | ||||||
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TOTAL COMPREHENSIVE INCOME (LOSS) | $ | (371 | ) | $ | 1,342 | $ | 117 | |||||
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Condensed Consolidating Statements of Comprehensive Income (Loss)
The following tables present the unaudited Condensed Consolidating Statements of Comprehensive Income (Loss) of our guarantor subsidiaries and non-guarantor subsidiaries for the fiscal years ended May 31, 2012, 2011, and 2010, and should be read in conjunction with the information in our Annual Report (including note 20 (Condensed Consolidating Financial Statements) to the consolidated financial statements included therein).
FedEx Corporation
Condensed Consolidating Statements of Comprehensive Income (Loss)
(Unaudited)
(In Millions)
Year Ended May 31, 2012
Guarantor | Non-guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 36,412 | $ | 6,569 | (301 | ) | $ | 42,680 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Salaries and employee benefits | 114 | 14,153 | 1,832 | — | 16,099 | |||||||||||||||
Purchased transportation | — | 4,509 | 1,944 | (118 | ) | 6,335 | ||||||||||||||
Rentals and landing fees | 5 | 2,221 | 267 | (6 | ) | 2,487 | ||||||||||||||
Depreciation and amortization | 1 | 1,962 | 150 | — | 2,113 | |||||||||||||||
Fuel | — | 4,877 | 79 | — | 4,956 | |||||||||||||||
Maintenance and repairs | 1 | 1,882 | 97 | — | 1,980 | |||||||||||||||
Impairment and other charges | — | 134 | — | — | 134 | |||||||||||||||
Intercompany charges, net | (218 | ) | (323 | ) | 541 | — | — | |||||||||||||
Other | 97 | 4,482 | 988 | (177 | ) | 5,390 | ||||||||||||||
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— | 33,897 | 5,898 | (301 | ) | 39,494 | |||||||||||||||
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OPERATING INCOME | — | 2,515 | 671 | — | 3,186 | |||||||||||||||
Equity in earnings of subsidiaries | 2,032 | 395 | — | (2,427 | ) | — | ||||||||||||||
Interest, net | (75 | ) | 31 | 5 | — | (39 | ) | |||||||||||||
Intercompany charges, net | 80 | (102 | ) | 22 | — | — | ||||||||||||||
Other, net | (5 | ) | (10 | ) | 9 | — | (6 | ) | ||||||||||||
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INCOME BEFORE INCOME TAXES | 2,032 | 2,829 | 707 | (2,427 | ) | 3,141 | ||||||||||||||
Provision for income taxes | — | 875 | 234 | — | 1,109 | |||||||||||||||
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NET INCOME | $ | 2,032 | $ | 1,954 | $ | 473 | $ | (2,427 | ) | $ | 2,032 | |||||||||
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COMPREHENSIVE INCOME (LOSS) | $ | (120 | ) | $ | 1,796 | $ | 380 | $ | (2,427 | ) | $ | (371 | ) | |||||||
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FedEx Corporation Condensed Consolidating Statements of Comprehensive Income (Unaudited) (In Millions) Year Ended May 31, 2011 | ||||||||||||||||||||
Guarantor | Non-guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 33,124 | $ | 6,498 | (318 | ) | $ | 39,304 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Salaries and employee benefits | 109 | 13,206 | 1,961 | — | 15,276 | |||||||||||||||
Purchased transportation | — | 4,034 | 1,745 | (105 | ) | 5,674 | ||||||||||||||
Rentals and landing fees | 4 | 2,209 | 253 | (4 | ) | 2,462 | ||||||||||||||
Depreciation and amortization | 1 | 1,784 | 188 | — | 1,973 | |||||||||||||||
Fuel | — | 4,003 | 148 | — | 4,151 | |||||||||||||||
Maintenance and repairs | 1 | 1,862 | 116 | — | 1,979 | |||||||||||||||
Impairment and other charges | — | 28 | 61 | — | 89 | |||||||||||||||
Intercompany charges, net | (222 | ) | (317 | ) | 539 | — | — | |||||||||||||
Other | 107 | 4,392 | 1,032 | (209 | ) | 5,322 | ||||||||||||||
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— | 31,201 | 6,043 | (318 | ) | 36,926 | |||||||||||||||
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OPERATING INCOME | — | 1,923 | 455 | — | 2,378 | |||||||||||||||
Equity in earnings of subsidiaries | 1,452 | 200 | — | (1,652 | ) | — | ||||||||||||||
Interest, net | (88 | ) | 13 | (2 | ) | — | (77 | ) | ||||||||||||
Intercompany charges, net | 104 | (135 | ) | 31 | — | — | ||||||||||||||
Other, net | (16 | ) | (14 | ) | (6 | ) | — | (36 | ) | |||||||||||
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INCOME BEFORE INCOME TAXES | 1,452 | 1,987 | 478 | (1,652 | ) | 2,265 | ||||||||||||||
Provision for income taxes | — | 677 | 136 | — | 813 | |||||||||||||||
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NET INCOME | $ | 1,452 | $ | 1,310 | $ | 342 | $ | (1,652 | ) | $ | 1,452 | |||||||||
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COMPREHENSIVE INCOME | $ | 1,240 | $ | 1,329 | $ | 425 | $ | (1,652 | ) | $ | 1,342 | |||||||||
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FedEx Corporation Condensed Consolidating Statements of Comprehensive Income (Unaudited) (In Millions) Year Ended May 31, 2010
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Guarantor | Non-guarantor | |||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
REVENUES | $ | — | $ | 29,360 | $ | 5,700 | (326 | ) | $ | 34,734 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Salaries and employee benefits | 91 | 12,026 | 1,910 | — | 14,027 | |||||||||||||||
Purchased transportation | — | 3,424 | 1,392 | (88 | ) | 4,728 | ||||||||||||||
Rentals and landing fees | 4 | 2,118 | 240 | (3 | ) | 2,359 | ||||||||||||||
Depreciation and amortization | 1 | 1,751 | �� | 206 | — | 1,958 | ||||||||||||||
Fuel | — | 2,946 | 160 | — | 3,106 | |||||||||||||||
Maintenance and repairs | 1 | 1,589 | 125 | — | 1,715 | |||||||||||||||
Impairment and other charges | — | — | 18 | — | 18 | |||||||||||||||
Intercompany charges, net | (202 | ) | (109 | ) | 311 | — | — | |||||||||||||
Other | 105 | 3,950 | 1,005 | (235 | ) | 4,825 | ||||||||||||||
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— | 27,695 | 5,367 | (326 | ) | 32,736 | |||||||||||||||
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OPERATING INCOME | — | 1,665 | 333 | — | 1,998 | |||||||||||||||
Equity in earnings of subsidiaries | 1,184 | 161 | — | (1,345 | ) | — | ||||||||||||||
Interest, net | (100 | ) | 41 | (12 | ) | — | (71 | ) | ||||||||||||
Intercompany charges, net | 114 | (147 | ) | 33 | — | — | ||||||||||||||
Other, net | (14 | ) | (18 | ) | (1 | ) | — | (33 | ) | |||||||||||
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INCOME BEFORE INCOME TAXES | 1,184 | 1,702 | 353 | (1,345 | ) | 1,894 | ||||||||||||||
Provision for income taxes | — | 625 | 85 | — | 710 | |||||||||||||||
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NET INCOME | $ | 1,184 | $ | 1,077 | $ | 268 | $ | (1,345 | ) | $ | 1,184 | |||||||||
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COMPREHENSIVE INCOME | $ | 276 | $ | 932 | $ | 254 | $ | (1,345 | ) | $ | 117 | |||||||||
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