FEDEX CORP, 10-K filed on 7/17/2023
Annual Report
v3.23.2
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
May 31, 2023
Jul. 13, 2023
Nov. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Period End Date May 31, 2023    
Amendment Flag false    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Registrant Name FedEx Corporation    
Entity Central Index Key 0001048911    
Current Fiscal Year End Date --05-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
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 Interactive Data Current Yes    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Public Float     $ 42.4
Entity Common Stock, Shares Outstanding   251,187,242  
Entity Incorporation, State or Country Code DE    
Document Annual Report true    
Document Transition Report false    
ICFR Auditor Attestation Flag true    
Auditor Name Ernst & Young LLP    
Auditor Firm ID 42    
Auditor Location Memphis, Tennessee    
Documents Incorporated by Reference

Portions of the Registrant’s definitive proxy statement to be delivered to stockholders in connection with the 2023 annual meeting of stockholders to be held on September 21, 2023 are incorporated by reference in response to Part III of this Report.

   
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 $0.10 per share    
Security Exchange Name NYSE    
0.450% Notes Due 2025 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 25A    
Title of 12(b) Security 0.450% Notes due 2025    
Security Exchange Name NYSE    
1.625% Notes Due 2027 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 27    
Title of 12(b) Security 1.625% Notes due 2027    
Security Exchange Name NYSE    
0.450% Notes Due 2029 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 29A    
Title of 12(b) Security 0.450% Notes due 2029    
Security Exchange Name NYSE    
1.300% Notes Due 2031 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 31    
Title of 12(b) Security 1.300% Notes due 2031    
Security Exchange Name NYSE    
0.950% Notes Due 2033 [Member]      
Document Information [Line Items]      
Trading Symbol FDX 33    
Title of 12(b) Security 0.950% Notes due 2033    
Security Exchange Name NYSE    
v3.23.2
Consolidated Balance Sheets - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
CURRENT ASSETS    
Cash and cash equivalents $ 6,856 $ 6,897
Receivables, less allowances of $800 and $692 10,188 11,863
Spare parts, supplies, and fuel, less allowances of $276 and $360 604 637
Prepaid expenses and other 962 968
Total current assets 18,610 20,365
PROPERTY AND EQUIPMENT, AT COST    
Aircraft and related equipment 29,108 27,874
Package handling and ground support equipment 16,839 14,930
Information technology 8,792 8,098
Vehicles and trailers 10,191 9,806
Facilities and other 15,694 14,567
Total property and equipment, at cost 80,624 75,275
Less accumulated depreciation and amortization 39,926 37,184
Net property and equipment 40,698 38,091
OTHER LONG-TERM ASSETS    
Operating lease right-of-use assets, net 17,347 16,613
Goodwill 6,435 6,544
Other assets 4,053 4,381
Total other long-term assets 27,835 27,538
TOTAL ASSETS [1] 87,143 85,994
CURRENT LIABILITIES    
Current portion of long-term debt 126 82
Accrued salaries and employee benefits 2,475 2,531
Accounts payable 3,848 4,030
Operating lease liabilities 2,390 2,443
Accrued expenses 4,747 5,188
Total current liabilities 13,586 14,274
LONG-TERM DEBT, LESS CURRENT PORTION 20,453 20,182
OTHER LONG-TERM LIABILITIES    
Deferred income taxes 4,489 4,093
Pension, postretirement healthcare and other benefit obligations 3,130 4,448
Self-insurance accruals 3,339 2,889
Operating lease liabilities 15,363 14,487
Other liabilities 695 682
Total other long-term liabilities 27,016 26,599
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of May 31, 2023 and 2022 32 32
Additional paid-in capital 3,769 3,712
Retained earnings 35,259 32,782
Accumulated other comprehensive loss (1,327) (1,103)
Treasury stock, at cost (11,645) (10,484)
Total common stockholders’ investment 26,088 24,939
TOTAL LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 87,143 $ 85,994
[1] Segment assets include intercompany receivables.
v3.23.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
CURRENT ASSETS    
Allowances for receivables $ 800 $ 692
Allowances for spare parts, supplies and fuel $ 276 $ 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
v3.23.2
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income Statement [Abstract]      
REVENUE [1] $ 90,155 $ 93,512 $ 83,959
OPERATING EXPENSES:      
Salaries and employee benefits 31,019 32,058 30,173
Purchased transportation 21,790 24,118 21,674
Rentals and landing fees 4,738 4,712 4,155
Depreciation and amortization 4,176 3,970 3,793
Fuel 5,909 5,115 2,882
Maintenance and repairs 3,357 3,372 3,328
Goodwill and other asset impairment charges 117    
Business optimization and realignment costs 309 278 116
Other 13,828 13,644 11,981
TOTAL OPERATING EXPENSES 85,243 87,267 78,102
OPERATING INCOME 4,912 [2] 6,245 [3] 5,857 [4]
OTHER INCOME (EXPENSE):      
Interest expense (694) (689) (793)
Interest income 198 53 52
Other retirement plans income (expense) 1,054 (726) 1,983
Loss on debt extinguishment     (393)
Other, net (107) 13 (32)
TOTAL OTHER INCOME (EXPENSE) 451 (1,349) 817
INCOME BEFORE INCOME TAXES 5,363 4,896 6,674
PROVISION FOR INCOME TAXES 1,391 1,070 1,443
NET INCOME $ 3,972 $ 3,826 $ 5,231
BASIC EARNINGS PER COMMON SHARE $ 15.60 $ 14.54 $ 19.79
DILUTED EARNINGS PER COMMON SHARE $ 15.48 $ 14.33 $ 19.45
[1] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[2] Includes business optimization costs of $262 million included in “Corporate, other, and eliminations” and business optimization and realignment costs of $11 million and $36 million, respectively, included in the FedEx Express segment. Includes noncash other asset impairment charges of $70 million primarily related to the decision to permanently retire certain aircraft and related engines at FedEx Express and goodwill and other asset impairment charges of $47 million at FedEx Dataworks related to the ShopRunner acquisition. Also includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
[3] Includes business realignment costs of $278 million included in the FedEx Express segment, as well as a charge of $210 million related to the pre- and post-judgment interest in connection with a separate FedEx Ground legal matter included in “Corporate, other, and eliminations.” Also includes TNT Express integration expenses of $132 million included in “Corporate, other, and eliminations” and the FedEx Express segment.
[4] Includes TNT Express integration expenses of $210 million included in “Corporate, other, and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
v3.23.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Statement of Comprehensive Income [Abstract]      
NET INCOME $ 3,972 $ 3,826 $ 5,231
OTHER COMPREHENSIVE INCOME (LOSS):      
Foreign currency translation adjustments, net of tax benefit/(expense) of $25 in 2023, $17 in 2022, and ($13) in 2021 (214) (363) 422
Amortization of prior service credits and other, net of tax benefits of $2 in 2023, $2 in 2022, and $3 in 2021 (10) (8) (7)
Other comprehensive income (loss) (224) (371) 415
COMPREHENSIVE INCOME $ 3,748 $ 3,455 $ 5,646
v3.23.2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Other Comprehensive Income, Tax Amounts      
Foreign currency translation adjustments, tax benefit/(expense) $ 25 $ 17 $ (13)
Amortization of prior service credits and other, tax benefits $ 2 $ 2 $ 3
v3.23.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
OPERATING ACTIVITIES      
Net income $ 3,972 $ 3,826 $ 5,231
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 4,176 3,970 3,793
Provision for uncollectible accounts 696 403 577
Other noncash items including leases and deferred income tax 3,472 2,931 2,887
Stock-based compensation 182 190 200
Retirement plans mark-to-market adjustments (650) 1,578 (1,176)
Loss on extinguishment of debt     393
Goodwill and other asset impairment charges 117    
Business optimization and realignment costs, net of payments 23 53 102
Changes in assets and liabilities:      
Receivables 782 (310) (1,389)
Other current assets 48 (158) (40)
Pension and postretirement healthcare assets and liabilities, net (623) (697) (317)
Accounts payable and other liabilities (3,331) (1,861) 71
Other, net (16) (93) (197)
Cash provided by operating activities 8,848 9,832 10,135
INVESTING ACTIVITIES      
Capital expenditures (6,174) (6,763) (5,884)
Business acquisitions, net of cash acquired     (228)
Purchase of investments (84) (147)  
Proceeds from asset dispositions and other 84 94 102
Cash used in investing activities (6,174) (6,816) (6,010)
FINANCING ACTIVITIES      
Principal payments on debt (152) (161) (6,318)
Proceeds from debt issuances     4,212
Proceeds from stock issuances 231 184 740
Dividends paid (1,177) (793) (686)
Purchase of treasury stock (1,500) (2,248)  
Other, net 1 (1) (38)
Cash used in financing activities (2,597) (3,019) (2,090)
Effect of exchange rate changes on cash (118) (187) 171
Net (decrease) increase in cash and cash equivalents (41) (190) 2,206
Cash and cash equivalents at beginning of period 6,897 7,087 4,881
Cash and cash equivalents at end of period $ 6,856 $ 6,897 $ 7,087
v3.23.2
Consolidated Statements of Changes in Common Stockholders' Investment - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Beginning Balance $ 24,939 $ 24,168 $ 18,295
Net income 3,972 3,826 5,231
Other comprehensive gain (loss), net of tax (224) (371) 415
Purchase of treasury stock (1,500) (2,248)  
Cash dividends declared (1,495) (793) (686)
Employee incentive plans and other 396 357 913
Ending Balance 26,088 24,939 24,168
Common Stock      
Beginning Balance 32 32 32
Ending Balance 32 32 32
Additional Paid-In Capital      
Beginning Balance 3,712 3,481 3,356
Purchase of treasury stock (82) (9)  
Employee incentive plans and other 139 240 125
Ending Balance 3,769 3,712 3,481
Retained Earnings      
Beginning Balance 32,782 29,817 25,216
Net income 3,972 3,826 5,231
Cash dividends declared (1,495) (793) (686)
Employee incentive plans and other   (68) 56
Ending Balance 35,259 32,782 29,817
Accumulated Other Comprehensive Loss      
Beginning Balance (1,103) (732) (1,147)
Other comprehensive gain (loss), net of tax (224) (371) 415
Ending Balance (1,327) (1,103) (732)
Treasury Stock      
Beginning Balance (10,484) (8,430) (9,162)
Purchase of treasury stock (1,418) (2,239)  
Employee incentive plans and other 257 185 732
Ending Balance $ (11,645) $ (10,484) $ (8,430)
v3.23.2
Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared, per share $ 5.86 $ 3.00 $ 2.60
Other comprehensive gain (loss), tax $ (27) $ (19) $ 10
Purchase of treasury stock 9,200,000 8,900,000  
Employee incentive plans and other, shares issued 1,900,000 1,400,000 5,400,000
v3.23.2
Description of Business Segments and Summary of Significant Accounting Policies
 12 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Description of Business Segments and Summary of Significant Accounting Policies

NOTE 1: DESCRIPTION OF BUSINESS SEGMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS SEGMENTS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating collaboratively, and innovating digitally as one FedEx. Our primary operating companies are Federal Express Corporation (“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 FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our operating segments.

FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2023 or ended May 31 of the year referenced.

PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation.

REVENUE RECOGNITION.

Satisfaction of Performance Obligation

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with U.S. generally accepted accounting principles (“GAAP”). To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our contracts, the customer contracts with us to provide distinct services within a single contract, primarily transportation services. Substantially all of our contracts with customers for transportation services include only one performance obligation, the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price.

For transportation services, revenue is recognized over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. If we were unable to complete delivery to the final location, another entity would not need to reperform the transportation service already performed. As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including ancillary or accessorial fees and reductions for estimated customer incentives, is recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our FedEx Freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer.

We also provide customized customer-specific solutions, such as supply chain management solutions and inventory and service parts logistics, through which we provide the service of integrating a complex set of tasks and components into a single capability. For these arrangements, the majority of which are conducted by our FedEx Logistics, Inc. (“FedEx Logistics”) operating segment, the entire contract is accounted for as one performance obligation. For these performance obligations, we typically have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer.

Contract Modification

Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new enforceable rights and obligations or alters the existing arrangement. Contract modifications that add distinct goods or services are treated as separate contracts. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are distinct.

Variable Consideration

Certain contracts contain customer incentives, guaranteed service refunds, and other provisions that can either increase or decrease the transaction price. These incentives are generally awarded based upon achieving certain performance metrics. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current, and forecasted) that is reasonably available to us.

Principal vs. Agent Considerations

Transportation services are provided with the use of employees and independent businesses that contract with FedEx. GAAP requires us to evaluate whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. Based on our evaluation of the control model, we determined that FedEx is the principal to the transaction for most of these services and revenue is recognized on a gross basis based on the transfer of control to the customer. Costs associated with independent businesses providing transportation services are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income.

Our contract logistics, global trade services, and certain transportation businesses engage in certain transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions, and taxes and duties.

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 totaled $686 million and $861 million at May 31, 2023 and May 31, 2022, respectively. Contract assets net of deferred unearned revenue were $484 million and $623 million at May 31, 2023 and May 31, 2022, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $19 million and $8 million at May 31, 2023 and May 31, 2022, respectively. Contract liabilities are included within current liabilities in the accompanying consolidated balance sheets.

Payment Terms

Certain of our revenue-producing transactions are subject to taxes and duties, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.

Disaggregation of Revenue

See Note 14 for disclosure of disaggregated revenue for the periods ended May 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.

CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms, and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic conditions. Historically, credit losses have been within management’s expectations.

ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $435 million in 2023, $470 million in 2022, and $428 million in 2021.

CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value.

SPARE PARTS, SUPPLIES, AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost.

PROPERTY AND EQUIPMENT. Expenditures for major additions, improvements, and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software, including implementation of cloud computing service arrangements. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal.

For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable.

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2023

 

 

2022

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

16,973

 

 

$

15,949

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,038

 

 

 

2,163

 

Package handling and ground support equipment

 

3 to 15 years

 

 

7,562

 

 

 

6,447

 

Information technology

 

3 to 7 years

 

 

1,859

 

 

 

1,907

 

Vehicles and trailers

 

3 to 15 years

 

 

3,996

 

 

 

4,004

 

Facilities and other

 

1 to 33 years

 

 

8,270

 

 

 

7,621

 

Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment.

Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $4.2 billion in 2023, $4.0 billion in 2022, and $3.8 billion in 2021. Depreciation and amortization expense includes amortization of assets under finance leases.

CAPITALIZED INTEREST. Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $77 million in 2023, $62 million in 2022, and $68 million in 2021.

 

IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows, or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

We operate integrated transportation networks so cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment.

In the fourth quarter of 2023, we made the decision to permanently retire from service 12 Boeing MD-11F aircraft and 25 related engines, four Boeing 757-200 aircraft and one related engine, and two Airbus A300-600 aircraft and eight related engines, to align with the plans of FedEx Express to modernize its aircraft fleet, improve its global network, and better align air network capacity to match current and anticipated shipment volumes. As a consequence of this decision, a noncash impairment charge of $70 million ($54 million, net of tax, or $0.21 per diluted share) was recorded in the fourth quarter. All of these aircraft were temporarily idled and not in revenue service.

In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment and remaining life on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2023, we had 11 aircraft temporarily idled. These aircraft have been idled for an average of five months and are expected to return to revenue service.

GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates, and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. See Note 4 for additional information.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets, and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 1 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. See Note 4 for additional information.

PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover, and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental estimate which is reviewed on an annual basis and revised as appropriate.

The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” (or “MTM”) accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. Only service cost is recognized in segment level operating results.

INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets that are not subject to valuation allowances. We record the taxes for global intangible low-taxed income as a period cost.

We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision.

We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets.

SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents, property and cargo loss, general business liabilities, and benefits paid under employee disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Claims costs are recognized on a gross basis and a receivable is recorded for amounts covered by third-party insurance. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

We are also self-insured for certain short-term employee healthcare claims which are included within other accrued expenses.

LEASES. We lease certain facilities, aircraft, equipment, and vehicles under operating and finance leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional, and metropolitan sorting facilities; retail facilities; and administrative buildings.

Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets.

The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee.

For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index-based rate increases, as well as reimbursement for real estate taxes, common area maintenance, and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as real estate taxes, common area maintenance, and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. See Note 7 for additional information.

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 May 31, 2023, we designated €151 million of debt 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 May 31, 2023, the hedge remains effective.

FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of Accumulated Other Comprehensive Income (“AOCI”) within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented.

EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots at FedEx Express, who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board began actively mediating the negotiations. In May 2023, FedEx Express reached a tentative successor agreement with ALPA. The tentative agreement was approved by ALPA’s FedEx Express Master Executive Council in June 2023 and is being presented to FedEx Express’s pilots for ratification during the first quarter of 2024. The ongoing ratification process has no effect on our operations. Once ratified, we expect to amend our pension plan offered to FedEx Express pilots resulting in a remeasurement of our pension benefit obligation.

EQUITY INVESTMENT. 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 income (expense), 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 acquisitions and/or dispositions 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 are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other income (expense), net” on our consolidated statements of income.

As of May 31, 2023, such investments were not material to our financial position or results of operations.

STOCK-BASED COMPENSATION. The accounting guidance related to share-based payments requires recognition of compensation expense for stock-based awards using a fair value method. We use the Black-Scholes option pricing model to calculate the fair value of stock options. The value of restricted stock awards is based on the stock price of the award on the grant date. We record stock-based compensation expense in the “Salaries and employee benefits” caption in the accompanying consolidated statements of income. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants.

TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $5 billion of FedEx common stock. As part of the repurchase program, we entered into an accelerated share repurchase (“ASR”) agreement with a bank in October 2022 to repurchase an aggregate of $1.5 billion of our common stock.

During 2023, 9.2 million shares were repurchased under the ASR agreement. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheets and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share.

In 2023, we repurchased 9.2 million shares of FedEx common stock at an average price of $163.39 per share for a total of $1.5 billion. In 2022, we repurchased 8.9 million shares of FedEx common stock at an average price of $253.85 per share for a total of $2.2 billion. As of May 31, 2023, approximately $2.6 billion remained available to use for repurchases under the program.

Shares under the program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock, and general market conditions. No time limits were set for the completion of the program, and the program may be suspended or discontinued at any time.

DIVIDENDS DECLARED PER COMMON SHARE. On April 5, 2023, our Board of Directors declared a quarterly cash dividend of $1.26 per share of common stock. The dividend was paid on July 3, 2023 to stockholders of record as of the close of business on June 12, 2023. 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.

BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments 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 optimized network through Network 2.0.

In the fourth quarter of 2023, we announced “one FedEx”, a consolidation plan to ultimately bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground network under the respected FedEx brand. FedEx Freight will continue to provide LTL freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with full implementation expected in June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0, the multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada.

We have announced the implementation of Network 2.0 in more than 20 markets, including the phased transition of all FedEx Ground operations and personnel in Canada to FedEx Express beginning in April 2024. Under Network 2.0, FedEx will continue to utilize both FedEx employees and contracted service providers.

We incurred costs associated with our business optimization activities of $273 million ($209 million, net of tax, or $0.81 per diluted share) in 2023. These costs were primarily related to consulting services, severance, professional fees, and idling our operations in Russia. These business optimization costs are included in Corporate, other, and eliminations and FedEx Express.

In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed during 2023. We incurred costs of $36 million ($27 million, net of tax, or $0.11 per diluted share) in 2023 and $278 million ($214 million, net of tax, or $0.80 per diluted share) in 2022 associated with our business realignment activities. These costs are related to certain employee severance arrangements. Payments under this program totaled approximately $118 million in 2023 and approximately $225 million in 2022. The pre-tax cost of our business realignment activities was approximately $430 million through 2023.

USE OF ESTIMATES. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses, and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill) that rely on projections of future cash flows; and purchase price allocations.
v3.23.2
Recent Accounting Guidance
 12 Months Ended
May 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting Guidance

NOTE 2: 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). In December 2022, the FASB issued ASU 2022-06 to temporarily ease the potential burden in accounting for reference rate reform. The standards provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to existing contracts, hedging relationships, and other transactions affected by reference rate reform. The standards apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate to be discontinued because of reference rate reform. The standards were effective upon issuance and can generally be applied through December 31, 2024. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of May 31, 2023, we continue to monitor our contracts and transactions for potential application of these ASUs.

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. These changes were effective June 1, 2022. The adoption of this standard did not have a material effect 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. Our historical accounting is consistent with these clarifications. We early adopted this standard effective September 1, 2022. The adoption of this standard did not have an effect on our consolidated financial statements and related disclosures.

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program (e.g., reverse factoring) to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The standard does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. We adopted this standard effective June 1, 2023 (fiscal 2024). This standard will not have a material impact on our consolidated financial statements and related disclosures.
v3.23.2
Credit Losses
 12 Months Ended
May 31, 2023
Credit Loss [Abstract]  
Credit Losses

NOTE 3: CREDIT LOSSES

We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly, considering recent write-offs, collections information, and underlying economic expectations.

Credit losses were $696 million in 2023, $403 million in 2022, and $577 million in 2021. Our allowance for credit losses was $472 million as of May 31, 2023 and $340 million at May 31, 2022.

v3.23.2
Goodwill and Other Intangible Assets
 12 Months Ended
May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):

 

 

FedEx Express
Segment

 

 

FedEx Ground
Segment

 

 

FedEx Freight
Segment

 

 

Corporate, Other, and Eliminations

 

 

Total

 

Goodwill at May 31, 2021

 

$

5,358

 

 

$

943

 

 

$

767

 

 

$

1,966

 

 

$

9,034

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,909

)

 

 

(2,042

)

Balance as of May 31, 2021

 

 

5,358

 

 

 

943

 

 

 

634

 

 

 

57

 

 

 

6,992

 

Other(1)

 

 

(433

)

 

 

(11

)

 

 

—

 

 

 

(4

)

 

 

(448

)

Balance as of May 31, 2022

 

 

4,925

 

 

 

932

 

 

 

634

 

 

 

53

 

 

 

6,544

 

Impairment charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(36

)

 

 

(36

)

Other(1)

 

 

(72

)

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(73

)

Balance as of May 31, 2023

 

$

4,853

 

 

$

932

 

 

$

634

 

 

$

16

 

 

$

6,435

 

Accumulated goodwill impairment
   charges as of May 31, 2023

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,945

)

 

$

(2,078

)

 

(1)
Primarily currency translation adjustments and purchase price allocation-related adjustments.

In connection with our annual impairment testing of goodwill conducted in the fourth quarter of 2023, we recorded an impairment charge of $36 million for all of the goodwill attributable to our FedEx Dataworks, Inc. (“FedEx Dataworks”) reporting unit. The key factors contributing to the goodwill impairment were underperformance of the ShopRunner business during 2023, including base business erosion, and the failure to attain the level of operating synergies and revenue and profit growth anticipated at the time of acquisition. Based on these factors, our outlook for the business changed in the fourth quarter of 2023.

Our other reporting units with significant recorded goodwill include FedEx Express, FedEx Ground, and FedEx Freight. We evaluated these reporting units during the fourth quarters of 2023 and 2022 and the estimated fair value of each of these reporting units exceeded their carrying values as of the end of 2023 and 2022; therefore, we do not believe that any of these reporting units were impaired as of the balance sheet dates.

OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2023 and 2022 is as follows (in millions):

 

 

2023

 

 

2022

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

Customer relationships

 

$

583

 

 

$

(369

)

 

$

214

 

 

$

617

 

 

$

(340

)

 

$

277

 

Technology

 

 

62

 

 

 

(42

)

 

 

20

 

 

 

64

 

 

 

(40

)

 

 

24

 

Trademarks and other

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

1

 

 

 

(1

)

 

 

—

 

Total

 

$

646

 

 

$

(412

)

 

$

234

 

 

$

682

 

 

$

(381

)

 

$

301

 

 

During the fourth quarter of 2023, we reviewed long-lived assets at FedEx Dataworks for impairment. Based on our reviews, we recognized an $11 million asset impairment charge related to customer relationships from the ShopRunner acquisition.

Amortization expense for intangible assets was $52 million in 2023, $52 million in 2022, and $49 million in 2021.

Expected amortization expense for the next five years is as follows (in millions):

2024

$

47

 

2025

 

46

 

2026

 

46

 

2027

 

44

 

2028

 

42

 
v3.23.2
Selected Current Liabilities
 12 Months Ended
May 31, 2023
Accounts Payable and Accrued Liabilities, Fair Value Disclosure [Abstract]  
Selected Current Liabilities

NOTE 5: SELECTED CURRENT LIABILITIES

The components of selected current liability captions at May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

Accrued salaries and employee benefits

 

 

 

 

 

 

Salaries

 

$

828

 

 

$

751

 

Employee benefits, including variable compensation

 

 

689

 

 

 

834

 

Compensated absences

 

 

958

 

 

 

946

 

 

 

$

2,475

 

 

$

2,531

 

Accrued expenses

 

 

 

 

 

 

Self-insurance accruals

 

$

1,730

 

 

$

1,646

 

Taxes other than income taxes

 

 

305

 

 

 

532

 

Other

 

 

2,712

 

 

 

3,010

 

 

 

$

4,747

 

 

$

5,188

 
v3.23.2
Long-Term Debt and Other Financing Arrangements
 12 Months Ended
May 31, 2023
Debt and Lease Obligation [Abstract]  
Long-term Debt and Other Financing Arrangements

NOTE 6: LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS

The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2023, are as follows (in millions):

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Interest Rate %

 

 

Maturity

 

 

 

 

 

 

Senior secured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.875

 

 

2034

 

$

831

 

 

$

881

 

Senior unsecured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.25

 

 

2026

 

 

748

 

 

 

747

 

 

 

 

3.40

 

 

2028

 

 

497

 

 

 

497

 

 

 

 

4.20

 

 

2029

 

 

398

 

 

 

397

 

 

 

3.10-4.25

 

 

2030

 

 

1,737

 

 

 

1,735

 

 

 

 

2.40

 

 

2031

 

 

991

 

 

 

990

 

 

 

 

4.90

 

 

2034

 

 

496

 

 

 

496

 

 

 

 

3.90

 

 

2035

 

 

495

 

 

 

495

 

 

 

 

3.25

 

 

2041

 

 

740

 

 

 

740

 

 

 

3.875-4.10

 

 

2043

 

 

985

 

 

 

985

 

 

 

 

5.10

 

 

2044

 

 

743

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

641

 

 

 

4.55-4.75

 

 

2046

 

 

2,463

 

 

 

2,462

 

 

 

 

4.40

 

 

2047

 

 

736

 

 

 

736

 

 

 

 

4.05

 

 

2048

 

 

987

 

 

 

987

 

 

 

 

4.95

 

 

2049

 

 

836

 

 

 

836

 

 

 

 

5.25

 

 

2050

 

 

1,226

 

 

 

1,226

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.45

 

 

2026

 

 

537

 

 

 

533

 

 

 

 

1.625

 

 

2027

 

 

1,341

 

 

 

1,332

 

 

 

 

0.45

 

 

2029

 

 

641

 

 

 

637

 

 

 

 

1.30

 

 

2032

 

 

534

 

 

 

530

 

 

 

 

0.95

 

 

2033

 

 

693

 

 

 

688

 

Total senior unsecured debt

 

 

 

 

 

 

 

18,948

 

 

 

18,915

 

Finance lease obligations

 

 

 

 

 

 

 

800

 

 

 

468

 

 

 

 

 

 

 

 

 

20,579

 

 

 

20,264

 

Less current portion

 

 

 

 

 

 

 

126

 

 

 

82

 

 

 

 

 

 

 

 

$

20,453

 

 

$

20,182

 

 

Interest on our U.S. dollar fixed-rate notes is paid semi-annually. Interest on our euro fixed-rate notes is paid annually. The weighted-average interest rate on long-term debt was 3.5% as of May 31, 2023. Long-term debt, including current maturities and exclusive of finance leases, had estimated fair values of $17.5 billion at May 31, 2023 and $18.8 billion at May 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 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.

We have a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) that allows us to sell, in one or more future offerings, any combination of our unsecured debt securities and common stock and allows pass-through trusts formed by FedEx Express to sell, in one or more future offerings, pass-through certificates.

FedEx Express has issued $970 million of Pass-Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due in February 2034 utilizing pass-through trusts. The Certificates are secured by 19 Boeing aircraft with a net book value of $1.7 billion at May 31, 2023. 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.

The following table sets forth the future scheduled principal payments due by fiscal year on our long-term debt (in millions):

 

 

 

 

 

 

 

Debt Principal

 

2024

 

 

 

 

 

$

52

 

2025

 

 

 

 

 

 

52

 

2026

 

 

 

 

 

 

1,340

 

2027

 

 

 

 

 

 

1,398

 

2028

 

 

 

 

 

 

552

 

Thereafter

 

 

 

 

 

 

16,606

 

     Subtotal

 

 

 

 

 

 

20,000

 

Discount and debt issuance costs

 

 

 

 

 

 

(221

)

     Total debt

 

 

 

 

 

$

19,779

 

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 May 31, 2023, no amounts were outstanding under the Credit Agreements, no commercial paper was outstanding, and $250 million of the letter of credit sublimit was 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 MTM adjustments, noncash pension service costs, and noncash asset impairment charges) before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the last day of each fiscal quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 2.08 to 1.0 at May 31, 2023.

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.
v3.23.2
Leases
 12 Months Ended
May 31, 2023
Leases [Abstract]  
Leases

NOTE 7: LEASES

The following table is a summary of the components of net lease cost for the period ended May 31 (in millions):

 

 

 

2023

 

 

2022

 

 

Operating lease cost

 

$

3,300

 

 

$

3,100

 

 

Finance lease cost:

 

 

 

 

 

 

 

     Amortization of right-of-use assets

 

 

36

 

 

 

26

 

 

     Interest on lease liabilities

 

 

18

 

 

 

16

 

 

Total finance lease cost

 

 

54

 

 

 

42

 

 

Short-term lease cost

 

 

531

 

 

 

556

 

 

Variable lease cost

 

 

1,435

 

 

 

1,368

 

 

Net lease cost

 

$

5,320

 

 

$

5,066

 

 

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

 

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

     Operating cash flows paid for operating leases

 

$

3,207

 

 

$

2,981

 

     Operating cash flows paid for interest portion of finance leases

 

 

15

 

 

 

15

 

     Financing cash flows paid for principal portion of finance leases

 

 

94

 

 

 

99

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

3,317

 

 

$

3,489

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

414

 

 

$

56

 

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

 

 

 

2023

 

 

2022

 

Operating leases:

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

$

17,347

 

 

$

16,613

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

 

2,390

 

 

 

2,443

 

Operating lease liabilities

 

 

15,363

 

 

 

14,487

 

    Total operating lease liabilities

 

$

17,753

 

 

$

16,930

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

Net property and equipment

 

$

821

 

 

$

455

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

75

 

 

 

32

 

Long-term debt, less current portion

 

 

725

 

 

 

436

 

    Total finance lease liabilities

 

$

800

 

 

$

468

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

 

 

 

 

 

Operating leases

 

 

9.5

 

 

 

9.8

 

Finance leases

 

 

27.5

 

 

 

30.8

 

 

 

 

 

 

 

 

Weighted-average discount rate

 

 

 

 

 

 

Operating leases

 

 

3.42

%

 

 

2.85

%

Finance leases

 

 

4.22

%

 

 

3.45

%

 

We utilize certain aircraft, land, facilities, retail locations, and equipment under finance and operating leases that expire at various dates through 2060. We leased 1% of our total aircraft fleet under operating leases as of May 31, 2023 and 2% as of May 31, 2022. A portion of our supplemental aircraft are leased by us under agreements that provide for cancellation upon 30 days’ notice. Our leased facilities include national, regional, and metropolitan sorting facilities; retail facilities; and administrative buildings.

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at May 31, 2023 is as follows (in millions):

 

 

 

Aircraft
and Related
Equipment

 

 

Facilities
and Other

 

 

Total
Operating
Leases

 

 

Finance Leases

 

 

Total Leases

 

2024

 

$

103

 

 

$

2,790

 

 

$

2,893

 

 

$

104

 

 

$

2,997

 

2025

 

 

84

 

 

 

2,708

 

 

 

2,792

 

 

 

52

 

 

 

2,844

 

2026

 

 

82

 

 

 

2,419

 

 

 

2,501

 

 

 

46

 

 

 

2,547

 

2027

 

 

81

 

 

 

2,137

 

 

 

2,218

 

 

 

37

 

 

 

2,255

 

2028

 

 

81

 

 

 

1,836

 

 

 

1,917

 

 

 

37

 

 

 

1,954

 

Thereafter

 

 

90

 

 

 

8,411

 

 

 

8,501

 

 

 

1,207

 

 

 

9,708

 

Total lease payments

 

 

521

 

 

 

20,301

 

 

 

20,822

 

 

 

1,483

 

 

 

22,305

 

Less imputed interest

 

 

(35

)

 

 

(3,034

)

 

 

(3,069

)

 

 

(683

)

 

 

(3,752

)

Present value of lease liability

 

$

486

 

 

$

17,267

 

 

$

17,753

 

 

$

800

 

 

$

18,553

 

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 May 31, 2023, 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 $1.8 billion and will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2024 to 2026.

FedEx Express makes payments under certain leveraged operating leases that are sufficient to pay principal and interest on certain pass-through certificates. The pass-through certificates are not direct obligations of, or guaranteed by, FedEx or FedEx Express.

We are the lessee under certain leases covering a portion of our leased aircraft in which the lessors are trusts established specifically to purchase, finance, and lease these aircraft to us. These leasing entities are variable interest entities. We are not the primary beneficiary of the leasing entities, as the lease terms are at market at the inception of the lease and do not include a residual value guarantee, fixed-price purchase option, or similar feature that obligates us to absorb decreases in value or entitles us to participate in increases in the value of the aircraft. Therefore, we are not required to consolidate any of these entities as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments.
v3.23.2
Preferred Stock
 12 Months Ended
May 31, 2023
Preferred Stock [Abstract]  
Preferred Stock

NOTE 8: PREFERRED STOCK

Our Certificate of Incorporation authorizes the Board of Directors, at its discretion, to issue up to 4,000,000 shares of preferred stock. The stock is issuable in series, which may vary as to certain rights and preferences, and has no par value. As of May 31, 2023, none of these shares had been issued.

v3.23.2
Accumulated Other Comprehensive Income
 12 Months Ended
May 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss)

NOTE 9: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table provides changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

2023

 

 

2022

 

 

2021

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,148

)

 

$

(785

)

 

$

(1,207

)

Translation adjustments

 

 

(214

)

 

 

(363

)

 

 

422

 

Balance at end of period

 

 

(1,362

)

 

 

(1,148

)

 

 

(785

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

45

 

 

 

53

 

 

 

60

 

Reclassifications from AOCI

 

 

(10

)

 

 

(8

)

 

 

(7

)

Balance at end of period

 

 

35

 

 

 

45

 

 

 

53

 

Accumulated other comprehensive loss at end of period

 

$

(1,327

)

 

$

(1,103

)

 

$

(732

)

 

 

The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings):

 

 

Amount Reclassified from
AOCI

 

 

Affected Line Item in the
Income Statement

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amortization of retirement plans prior service
   credits and other, before tax

 

$

12

 

 

$

10

 

 

$

10

 

 

Other retirement plans income (expense)

Income tax benefit

 

 

(2

)

 

 

(2

)

 

 

(3

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

10

 

 

$

8

 

 

$

7

 

 

Net income
v3.23.2
Stock-Based Compensation
 12 Months Ended
May 31, 2023
Share-Based Payment Arrangement, Additional Disclosure [Abstract]  
Stock-Based Compensation

NOTE 10: STOCK-BASED COMPENSATION

Our total stock-based compensation expense for the years ended May 31 was as follows (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Stock-based compensation expense

 

$

182

 

 

$

190

 

 

$

200

 

We have two types of equity-based compensation: stock options and restricted stock.

STOCK OPTIONS. Under the provisions of our incentive stock plan, key employees and non-employee directors may be granted options to purchase shares of our common stock at a price not less than its fair market value on the date of grant. Vesting requirements are determined at the discretion of the Compensation and Human Resources Committee of our Board of Directors. Option-vesting periods range from one to four years, with the majority of our options vesting ratably over four years. Compensation expense associated with these awards is recognized on a straight-line basis over the requisite service period of the award.

RESTRICTED STOCK. Under the terms of our incentive stock plan, restricted shares of our common stock are awarded to key employees. All restrictions on the shares expire ratably over a four-year period. Shares are valued at the market price on the date of award. The terms of our restricted stock provide for continued vesting subsequent to the employee’s retirement. Compensation expense associated with these awards is recognized on a straight-line basis over the shorter of the requisite service period or the stated vesting period.

ASSUMPTIONS. The key assumptions for the Black-Scholes valuation method include the expected life of the option, stock price volatility, a risk-free interest rate, and dividend yield. The following table includes the weighted-average Black-Scholes value per share of our stock option grants, the intrinsic value of options exercised (in millions), and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, followed by a discussion of our methodology for developing each of the assumptions used in the valuation model:

 

 

2023

 

 

2022

 

 

2021

 

Weighted-average Black-Scholes value per share

 

$

63.44

 

 

$

80.21

 

 

$

44.11

 

Intrinsic value of options exercised

 

$

160

 

 

$

150

 

 

$

593

 

Black-Scholes assumptions:

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.4 years

 

 

6.4 years

 

Expected volatility

 

 

34

%

 

 

32

%

 

 

30

%

Risk-free interest rate

 

 

1.68

%

 

 

0.65

%

 

 

1.32

%

Dividend yield

 

 

1.694

%

 

 

0.983

%

 

 

1.710

%

The expected life represents an estimate of the period of time options are expected to remain outstanding, and we examine actual stock option exercises to determine the expected life of the options. Options granted have a maximum term of 10 years. Expected volatilities are based on the actual changes in the market value of our stock and are calculated using daily market value changes from the date of grant over a past period equal to the expected life of the options. The risk-free interest rate is the U.S. Treasury Strip rate posted at the date of grant having a term equal to the expected life of the option. The expected dividend yield is the annual rate of dividends per share over the exercise price of the option.

The following table summarizes information regarding stock option activity for the year ended May 31, 2023:

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term

 

 

Aggregate
Intrinsic Value
(in millions)(1)

 

Outstanding at June 1, 2022

 

 

15,328,425

 

 

$

190.01

 

 

 

 

 

 

 

Granted

 

 

2,404,617

 

 

$

215.75

 

 

 

 

 

 

 

Exercised

 

 

(1,752,518

)

 

$

130.05

 

 

 

 

 

 

 

Forfeited

 

 

(789,335

)

 

$

210.79

 

 

 

 

 

 

 

Outstanding at May 31, 2023

 

 

15,191,189

 

 

$

199.89

 

 

 

6.1

 

 

$

520

 

Exercisable

 

 

9,585,480

 

 

$

195.96

 

 

 

4.9

 

 

$

350

 

Expected to vest

 

 

5,131,059

 

 

$

206.64

 

 

 

8.1

 

 

$

156

 

Available for future grants

 

 

14,062,311

 

 

 

 

 

 

 

 

 

 
(1)
Only presented for options with market value at May 31, 2023 in excess of the exercise price of the option.

The options granted during 2023 are primarily related to our principal annual stock option grant in June 2022.

The following table summarizes information regarding vested and unvested restricted stock for the year ended May 31, 2023:

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-
Average
Grant Date
Fair Value

 

Unvested at June 1, 2022

 

 

432,481

 

 

$

192.30

 

Granted

 

 

160,286

 

 

$

208.57

 

Vested

 

 

(204,356

)

 

$

190.33

 

Forfeited

 

 

(8,477

)

 

$

205.10

 

Unvested at May 31, 2023

 

 

379,934

 

 

$

199.91

 

During the year ended May 31, 2022, there were 115,172 shares of restricted stock granted with a weighted-average fair value of $276.26 per share. During the year ended May 31, 2021, there were 335,004 shares of restricted stock granted with a weighted-average fair value of $155.19 per share.

Stock option vesting during the years ended May 31 was as follows:

 

 

Stock Options

 

 

 

Vested during
the year

 

 

Fair value
(in millions)

 

2023

 

 

2,711,215

 

 

$

137

 

2022

 

 

3,005,727

 

 

$

138

 

2021

 

 

2,492,039

 

 

$

115

 

As of May 31, 2023, there was $230 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements. This compensation expense is expected to be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately two years.

Total shares outstanding or available for grant related to equity compensation at May 31, 2023 represented 11% of the total outstanding common and equity compensation shares and equity compensation shares available for grant.

v3.23.2
Computation of Earnings Per Share
 12 Months Ended
May 31, 2023
Earnings Per Share [Abstract]  
Computation of Earnings Per Share

NOTE 11: COMPUTATION OF EARNINGS PER SHARE

The calculation of basic and diluted earnings per common share for the years ended May 31 was as follows (in millions, except per share amounts):

 

 

2023

 

 

2022

 

 

2021

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

3,966

 

 

$

3,819

 

 

$

5,220

 

Weighted-average common shares

 

 

254

 

 

 

263

 

 

 

264

 

Basic earnings per common share

 

$

15.60

 

 

$

14.54

 

 

$

19.79

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

3,966

 

 

$

3,819

 

 

$

5,221

 

Weighted-average common shares

 

 

254

 

 

 

263

 

 

 

264

 

Dilutive effect of share-based awards

 

 

2

 

 

 

3

 

 

 

4

 

Weighted-average diluted shares

 

 

256

 

 

 

266

 

 

 

268

 

Diluted earnings per common share

 

$

15.48

 

 

$

14.33

 

 

$

19.45

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

7.4

 

 

 

4.0

 

 

 

3.5

 

 

(1)
Net earnings available to participating securities were immaterial in all periods presented.
v3.23.2
Income Taxes
 12 Months Ended
May 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 12: INCOME TAXES

The components of the provision for income taxes for the years ended May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Current provision

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

Federal

 

$

579

 

 

$

311

 

 

$

199

 

State and local

 

 

157

 

 

 

120

 

 

 

158

 

Foreign

 

 

209

 

 

 

317

 

 

 

284

 

 

 

 

945

 

 

 

748

 

 

 

641

 

Deferred provision

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

Federal

 

 

369

 

 

 

267

 

 

 

667

 

State and local

 

 

37

 

 

 

21

 

 

 

70

 

Foreign

 

 

40

 

 

 

34

 

 

 

65

 

 

 

 

446

 

 

 

322

 

 

 

802

 

 

 

$

1,391

 

 

$

1,070

 

 

$

1,443

 

 

Pre-tax earnings of foreign operations for 2023, 2022, and 2021 were $0.6 billion, $1.4 billion, and $1.8 billion, respectively. These amounts represent only a portion of total results associated with international shipments and do not represent our international results of operations.

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax to income before income taxes for the years ended May 31 is as follows (dollars in millions):

 

 

2023

 

 

2022

 

 

2021

 

Taxes computed at federal statutory rate

 

$

1,126

 

 

$

1,028

 

 

$

1,401

 

(Decreases) increases in income tax from:

 

 

 

 

 

 

 

 

 

U.S. and foreign return-to-provision adjustments

 

 

(44

)

 

 

(142

)

 

 

—

 

State and local income taxes, net of federal benefit

 

152

 

 

 

116

 

 

 

179

 

Foreign operations

 

 

96

 

 

 

115

 

 

 

138

 

Non-deductible expenses

 

 

40

 

 

 

48

 

 

 

53

 

Uncertain tax positions

 

 

60

 

 

 

(18

)

 

 

65

 

Benefits from share-based payments

 

 

(18

)

 

 

(13

)

 

 

(69

)

Valuation allowance

 

 

59

 

 

 

33

 

 

 

14

 

Foreign tax rate enactments

 

 

3

 

 

 

(30

)

 

 

(61

)

Benefit from U.S. tax loss carryback to prior years

 

 

—

 

 

 

—

 

 

 

(279

)

Goodwill impairment charges

 

 

8

 

 

 

—

 

 

 

—

 

Other, net

 

 

(91

)

 

 

(67

)

 

 

2

 

Provision for income taxes

 

$

1,391

 

 

$

1,070

 

 

$

1,443

 

Effective Tax Rate

 

 

25.9

%

 

 

21.9

%

 

 

21.6

%

 

The 2023 tax provision was negatively impacted by an expense of $46 million related to a write-down and valuation allowance on certain foreign tax credit carryforwards due to operational changes which impacted the determination of the realizability of the deferred tax asset. The 2023 tax provision was also negatively impacted by lower earnings in certain non-U.S. jurisdictions.

The 2022 tax provision includes a benefit of $142 million related to revisions of prior year tax estimates for actual tax return results. The 2022 tax provision was also favorably impacted by changes in our corporate legal entity structure.

The Coronavirus Aid, Relief, and Economic Security Act allowed a five-year carryback period for tax losses generated in 2019 through 2021. The 2021 tax provision includes a benefit of $279 million from an increase in our 2020 tax loss carried back to 2015, when the U.S. federal income tax rate was 35%. The increase in our 2020 tax loss was attributable to accelerated depreciation deductions and voluntary contributions to our tax-qualified U.S. domestic pension plans (“U.S. Pension Plans”). The 2021 tax provision also includes a benefit of $66 million from a tax rate increase in the Netherlands applied to our deferred tax asset balances and was negatively impacted by an increase in uncertain tax positions for matters in multiple jurisdictions.

We regularly assess the need for cash in the U.S., as well as in our foreign subsidiaries, and will occasionally repatriate back to the U.S. excess earnings above working capital needs that can be repatriated with an immaterial tax cost. We assert all other earnings, both historical and current in our foreign subsidiaries, are permanently reinvested and therefore no deferred taxes or withholding taxes have been provided, including deferred taxes on any additional outside basis difference (e.g., stock basis differences attributable to acquisition or other permanent differences). Determination of the amount of unrecognized deferred income tax liability related to any remaining undistributed foreign earnings and additional outside basis differences is not practicable.

The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):

 

 

 

2023

 

 

2022

 

 

 

Deferred Tax
Assets

 

 

Deferred Tax
Liabilities

 

 

Deferred Tax
Assets

 

 

Deferred Tax
Liabilities

 

Property, equipment, leases, and intangibles

 

$

4,608

 

 

$

10,965

 

 

$

4,464

 

 

$

10,608

 

Employee benefits

 

 

876

 

 

 

—

 

 

 

1,203

 

 

 

—

 

Self-insurance accruals

 

 

1,085

 

 

 

—

 

 

 

931

 

 

 

—

 

Other

 

 

454

 

 

 

62

 

 

 

524

 

 

 

66

 

Net operating loss/credit carryforwards

 

 

1,149

 

 

 

—

 

 

 

1,079

 

 

 

—

 

Valuation allowances

 

 

(471

)

 

 

—

 

 

 

(413

)

 

 

—

 

 

 

$

7,701

 

 

$

11,027

 

 

$

7,788

 

 

$

10,674

 

 

 

The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions):

 

 

2023

 

 

2022

 

Noncurrent deferred tax assets(1)

 

$

1,163

 

 

$

1,207

 

Noncurrent deferred tax liabilities

 

 

(4,489

)

 

 

(4,093

)

 

 

$

(3,326

)

 

$

(2,886

)

 

(1)
Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying consolidated balance sheets.

We have approximately $3.4 billion of net operating loss carryovers in various foreign jurisdictions, $1.5 billion of state operating loss carryovers, and $153 million of U.S. federal operating loss carryovers. The valuation allowances primarily represent amounts reserved for operating loss carryforwards, which expire over varying periods starting in 2024. Therefore, we establish valuation allowances if it is more likely than not that deferred income tax assets will not be realized. We believe that we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets. The increase in the valuation allowance balance during 2023 includes $37 million related to foreign net operating losses and $22 million for foreign tax credit carryforwards. See Note 1 for more information on our policy for assessing the recoverability of deferred tax assets and valuation allowances.

We are subject to taxation in the U.S. and various U.S. state, local, and foreign jurisdictions. We are currently under examination by the Internal Revenue Service for the 2016 through 2019 tax years. It is reasonably possible that certain income tax return proceedings will be completed during the next 12 months and could result in a change in our balance of unrecognized tax benefits. However, we believe we have recorded adequate amounts of tax, including interest and penalties, for any adjustments expected to occur.

During 2021, we filed suit in U.S. District Court for the Western District of Tennessee challenging the validity of a tax regulation related to the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the Tax Cuts and Jobs Act (“TCJA”). Our lawsuit seeks to have the court declare this regulation invalid and order the refund of overpayments of U.S. federal income taxes for 2018 and 2019 attributable to the denial of foreign tax credits under the regulation. We have recorded a cumulative benefit of $223 million through 2023 attributable to our interpretation of the TCJA and the Internal Revenue Code. On March 31, 2023, the District Court ruled that the regulation is invalid and contradicts the plain terms of the tax code. We continue to work towards obtaining a final judgment for the applicable refund amounts due to the regulation being invalid. Once the District Court enters a final judgment, the U.S. government could file an appeal with the U.S. Court of Appeals for the Sixth Circuit. If we are ultimately unsuccessful in defending our position, we may be required to reverse the benefit previously recorded.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended May 31 is as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of year

 

$

169

 

 

$

192

 

 

$

129

 

Increases for tax positions taken in the current year

 

 

3

 

 

 

14

 

 

 

3

 

Increases for tax positions taken in prior years

 

 

68

 

 

 

8

 

 

 

69

 

Decreases for tax positions taken in prior years

 

 

(7

)

 

 

(15

)

 

 

(6

)

Settlements

 

 

(15

)

 

 

(32

)

 

 

(6

)

Changes due to currency translation

 

 

(6

)

 

 

2

 

 

 

3

 

Balance at end of year

 

$

212

 

 

$

169

 

 

$

192

 

 

Our liabilities recorded for uncertain tax positions include $211 million at May 31, 2023 and $167 million at May 31, 2022 associated with positions that, if favorably resolved, would provide a benefit to our income tax expense. We classify interest related to income tax liabilities as interest expense and, if applicable, penalties are recognized as a component of income tax expense. The balance of accrued interest and penalties was $54 million on May 31, 2023 and $55 million on May 31, 2022. Our consolidated statements of income for 2021 include $20 million of interest expense associated with our uncertain tax positions while interest and penalty expense for 2023 and 2022 are immaterial.

It is difficult to predict the ultimate outcome or the timing of resolution for tax positions. Changes may result from the conclusion of ongoing audits, appeals, or litigation in state, local, federal, and foreign tax jurisdictions, or from the resolution of various proceedings between U.S. and foreign tax authorities. It is reasonably possible that the amount of the benefit with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months. However, estimates of the amounts or ranges for individual matters where a material change is reasonably possible cannot be made. We believe we have recorded adequate amounts of tax reserves, including interest and penalties, for any adjustments that may occur.

v3.23.2
Retirement Plans
 12 Months Ended
May 31, 2023
Retirement Benefits [Abstract]  
Retirement Plans

NOTE 13: 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.

The accounting guidance related to postretirement benefits requires recognition in the balance sheet of the funded status of defined benefit pension and other postretirement benefit plans, and the recognition in either expense or AOCI of unrecognized gains or losses and prior service costs or credits. We use MTM accounting for the recognition of our actuarial gains and losses related to our defined benefit pension and postretirement healthcare plans as described in Note 1. The funded status is measured as the difference between the fair value of the plan’s assets and the PBO of the plan.

A summary of our retirement plan costs over the past three years is as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Defined benefit pension plans

 

$

236

 

 

$

(2

)

 

$

88

 

Defined contribution plans

 

 

955

 

 

 

824

 

 

 

685

 

Postretirement healthcare plans

 

 

92

 

 

 

89

 

 

 

83

 

Retirement plans MTM (gain) loss

 

 

(650

)

 

 

1,578

 

 

 

(1,176

)

 

 

$

633

 

 

$

2,489

 

 

$

(320

)

 

The components of the MTM adjustments are as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Actual versus expected return on assets

 

$

2,492

 

 

$

5,109

 

 

$

(1,712

)

Discount rate change

 

 

(3,395

)

 

 

(4,486

)

 

 

(397

)

Demographic experience:

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

142

 

 

 

504

 

 

 

302

 

   Change in future assumptions

 

 

110

 

 

 

314

 

 

 

685

 

Termination of TNT Express Netherlands pension plan

 

 

—

 

 

 

224

 

 

 

—

 

Pension plan amendments, including curtailment gains

 

 

1

 

 

 

(87

)

 

 

(54

)

Total MTM (gain) loss

 

$

(650

)

 

$

1,578

 

 

$

(1,176

)

2023

Net of all fees and expenses, the actual rate of return on our U.S. Pension Plan assets was -2.70%, which was lower than our expected rate of return of 6.50%. Negative portfolio returns derived due to losses in both equities and our fixed-income assets due to market volatility and rising interest rates. The weighted-average discount rate for all our pension and postretirement healthcare plans increased from 4.21% at May 31, 2022 to 5.17% at May 31, 2023. The demographic experience in 2023 reflects an update to our short-term cash balance interest crediting assumption.

2022

Net of all fees and expenses, the actual rate of return on our U.S. Pension Plan assets was -10.8%, which was lower than our expected rate of return of 6.50%. Negative portfolio returns derived due to losses in both equities and our fixed-income assets due to market volatility and rising interest rates. The weighted-average discount rate for all our pension and postretirement healthcare plans increased from 3.11% at May 31, 2021 to 4.21% at May 31, 2022. The demographic experience in 2022 reflects an update to our mortality assumption and a current year actuarial loss due to unfavorable experience compared to various demographic assumptions.

2021

Net of all fees and expenses, the actual rate of return on our U.S. Pension Plan assets was 12.90%, which was higher than our expected return of 6.75%. Positive portfolio returns derived from our return-seeking assets were partially offset by losses from our fixed-income assets due to rising long-term interest rates. The weighted-average discount rate for all our pension and postretirement healthcare plans increased from 3.05% at May 31, 2020 to 3.11% at May 31, 2021. The demographic experience in 2021 reflects an update to our mortality and retirement rate assumptions and a current-year actuarial loss due to unfavorable experience compared to various demographic assumptions.

PENSION PLANS. Our largest pension plan covers certain U.S. employees age 21 and over, with at least one year of service. Pension benefits for most employees are accrued under a cash balance formula we call the Portable Pension Account (“PPA”). Under the PPA, the retirement benefit is expressed as a dollar amount in a notional account that grows with annual credits based on pay, age and years of credited service, and interest on the notional account balance. The PPA benefit is payable as a lump sum or an annuity at retirement at the election of the employee. The plan interest credit rate varies from year to year based on a U.S. Treasury index. Prior to 2009, certain employees earned benefits using a traditional pension formula (based on average earnings and years of service). Benefits under this formula were capped on May 31, 2008 for most employees.

We also sponsor or participate in nonqualified benefit plans covering certain of our U.S. employee groups and other pension plans covering certain of our international employees. The international defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The majority of our international obligations are for defined benefit pension plans in the Netherlands and the United Kingdom.

In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We introduced an all-401(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the PPA pension formula were given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its company match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure became effective January 1, 2022. See Note 1 for additional information on expected amendments to our pension plan offered to FedEx Express pilots.

POSTRETIREMENT HEALTHCARE PLANS. Certain of our subsidiaries offer medical, dental, and vision coverage to eligible U.S. retirees and their eligible dependents and a small number of international employees. U.S. employees covered by the principal plan become eligible for these benefits at age 55 and older, if they have permanent, continuous service of at least 10 years after attainment of age 45 if hired prior to January 1, 1988, or at least 20 years after attainment of age 35 if hired on or after January 1, 1988. Postretirement healthcare benefits are capped at 150% of the 1993 per capita projected employer cost, which has been reached under most plans, so these benefits are not subject to future inflation.

Effective January 1, 2018, certain of our U.S. postretirement healthcare benefits were converted to a lump-sum benefit in a notional retiree health reimbursement account (HRA) for eligible participants. The HRA is available to reimburse a participant for qualifying healthcare premium costs and limits the company liability to the HRA account balance. The amount of the credit is based on age at January 1, 2018 or upon age at retirement thereafter. In connection with this change, retiree health coverage was closed to most new employees hired on or after January 1, 2018.

PENSION PLAN ASSUMPTIONS. The accounting for pension and postretirement healthcare plans includes numerous assumptions, such as: discount rates; expected long-term investment returns on plan assets; future salary increases; employee turnover; mortality; and retirement ages.

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Discount rate used to determine benefit
   obligation

 

 

5.20

%

 

 

4.25

%

 

 

3.23

%

 

 

4.21

%

 

 

3.09

%

 

 

1.83

%

 

 

5.37

%

 

 

4.35

%

 

 

2.81

%

Discount rate used to determine net periodic
   benefit cost

 

 

4.25

 

 

 

3.23

 

 

 

3.14

 

 

 

3.09

 

 

 

1.83

 

 

 

1.79

 

 

 

4.35

 

 

 

2.81

 

 

 

2.95

 

Rate of increase in future compensation
   levels used to determine benefit obligation

 

 

5.13

 

 

 

5.11

 

 

 

5.06

 

 

 

3.04

 

 

 

2.89

 

 

 

2.83

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation
   levels used to determine net periodic
   benefit cost

 

 

5.11

 

 

 

5.06

 

 

 

5.17

 

 

 

2.89

 

 

 

2.83

 

 

 

2.19

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.50

 

 

 

6.50

 

 

 

6.75

 

 

 

2.26

 

 

 

2.39

 

 

 

2.71

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine
   benefit obligation

 

 

4.23

 

 

 

4.00

 

 

 

4.00

 

 

 

2.40

 

 

 

3.70

 

 

 

2.50

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net
   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

3.70

 

 

 

2.50

 

 

 

2.00

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Our U.S. Pension Plan assets are invested primarily in publicly tradable securities, and our pension plans hold only a minimal investment in FedEx common stock that is entirely at the discretion of third-party pension fund investment managers. As part of our strategy to manage pension costs and funded status volatility, we follow a liability-driven investment strategy to better align plan assets with liabilities.

Establishing the expected future rate of investment return on our pension assets is a judgmental matter, which we review on an annual basis and revise as appropriate. Management considers the following factors in determining this assumption:

•
the duration of our pension plan liabilities, which drives the investment strategy we can employ with our pension plan assets;
•
the types of investment classes in which we invest our pension plan assets and the expected compound geometric return we can reasonably expect those investment classes to earn over time, net of all fees and expenses; and
•
the investment returns we can reasonably expect our investment management program to achieve in excess of the returns we could expect if investments were made strictly in indexed funds.

For consolidated pension expense, we assumed a 6.50% expected long-term rate of return on our U.S. Pension Plan assets in 2023 and 2022 and 6.75% in 2021. The historical annual return on our U.S. Pension Plan assets, calculated on a compound geometric basis, was 5.70%, net of all fees and expenses, for the 15-year period ended May 31, 2023.

 

The investment strategy for our U.S. Pension Plan assets is to utilize a diversified mix of public equities, fixed-income, and alternative investments to earn a long-term investment return that meets our pension plan obligations. Our largest asset classes are Corporate Fixed Income Securities and Government Fixed Income Securities (which are largely benchmarked against the Bloomberg Barclays Long Government, Bloomberg Barclays Long Corporate, or the Bloomberg Barclays 20+ STRIPS indices), and U.S. and non-U.S. Equities (which are mainly benchmarked to the S&P 500 Index and MSCI indices). Accordingly, we do not have any significant concentrations of risk. Active management strategies are utilized within the plan in an effort to realize investment returns in excess of market indices. Our investment strategy also includes the limited use of derivative financial instruments on a discretionary basis to improve investment returns and manage portfolio risk.

The following is a description of the valuation methodologies used for investments measured at fair value:

•
Cash and cash equivalents. Level 1 investments include cash, cash equivalents, and foreign currency valued using exchange rates. Level 2 investments include short-term investment funds, which are collective funds priced at a constant value by the administrator of the funds.
•
Domestic, international, and global equities. Level 1 investments are valued at the closing price or last trade reported on the major market on which the individual securities are traded.
•
Fixed income. We determine the fair value of Level 2 corporate bonds, U.S. and non-U.S. government securities, and other fixed-income securities by using bid evaluation pricing models or quoted prices of securities with similar characteristics.
•
Alternative Investments. The valuation of Level 3 investments requires significant judgment due to the absence of quoted market prices, the inherent lack of liquidity, and the long-term nature of such assets. Investments in private equity, debt, real estate, hedge funds, and other private investments are valued at estimated fair value based on quarterly financial information received from the investment advisor and/or general partner. These estimates incorporate factors such as contributions and distributions, market transactions, market comparables, and performance multiples.

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and our most significant international pension plans at the measurement date are presented in the following table (in millions):

 

 

Plan Assets at Measurement Date

 

 

 

2023

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

815

 

 

 

3

%

 

0 - 5%

 

$

22

 

 

$

793

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,928

 

 

 

12

 

 

 

 

 

1,268

 

 

 

 

 

 

 

International equities(2)

 

 

2,821

 

 

 

11

 

 

 

 

 

1,912

 

 

 

 

 

 

 

Global equities(2)

 

 

1,192

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

768

 

 

 

3

 

 

 

 

 

764

 

 

 

4

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,403

 

 

 

26

 

 

 

 

 

 

 

 

6,403

 

 

 

 

Government(2)

 

 

4,334

 

 

 

17

 

 

 

 

 

 

 

 

2,497

 

 

 

 

Mortgage-backed and other(2)

 

 

1,386

 

 

 

6

 

 

 

 

 

 

 

 

527

 

 

 

 

Alternative investments(2)

 

 

4,196

 

 

 

17

 

 

0 - 15

 

 

 

 

 

 

 

$

937

 

Other

 

 

(17

)

 

 

—

 

 

 

 

 

(33

)

 

 

16

 

 

 

 

Total U.S. plan assets

 

$

24,826

 

 

 

100

%

 

 

 

$

3,933

 

 

$

10,240

 

 

$

937

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7

 

 

 

2

%

 

 

 

$

7

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

57

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

178

 

 

53

 

 

 

 

 

159

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

95

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

337

 

 

 

100

%

 

 

 

$

166

 

 

$

—

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

 

 

Plan Assets at Measurement Date

 

 

 

2022

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

1,164

 

 

 

4

%

 

0 - 5%

 

$

29

 

 

$

1,135

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

3,368

 

 

 

13

 

 

 

 

 

1,235

 

 

 

 

 

 

 

International equities(2)

 

 

3,445

 

 

 

13

 

 

 

 

 

2,551

 

 

 

 

 

 

 

Global equities(2)

 

 

1,245

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

809

 

 

 

3

 

 

 

 

 

804

 

 

 

5

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,755

 

 

 

26

 

 

 

 

 

 

 

 

6,755

 

 

 

 

Government(2)

 

 

4,401

 

 

 

17

 

 

 

 

 

 

 

 

2,749

 

 

 

 

Mortgage-backed and other(2)

 

 

1,251

 

 

 

5

 

 

 

 

 

 

 

 

381

 

 

 

 

Alternative investments(2)

 

 

3,554

 

 

 

14

 

 

0 - 15

 

 

 

 

 

 

 

$

811

 

Other

 

 

(22

)

 

 

—

 

 

 

 

 

(24

)

 

 

2

 

 

 

 

Total U.S. plan assets

 

$

25,970

 

 

 

100

%

 

 

 

$

4,595

 

 

$

11,027

 

 

$

811

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4

 

 

 

1

%

 

 

 

$

4

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

62

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

261

 

 

60

 

 

 

 

 

199

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

107

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

434

 

 

 

100

%

 

 

 

$

203

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

 

 

U.S. Pension Plans

 

 

 

2023

 

 

2022

 

Balance at beginning of year

 

$

811

 

 

$

537

 

Actual return on plan assets:

 

 

 

 

 

 

Assets held during current year

 

 

66

 

 

 

192

 

Assets sold during the year

 

 

28

 

 

 

29

 

Purchases, sales, and settlements

 

 

32

 

 

 

53

 

Balance at end of year

 

$

937

 

 

$

811

 

The following tables provide a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2023 and a statement of the funded status as of May 31, 2023 and 2022 (in millions):

 

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Accumulated Benefit Obligation (“ABO”)

 

$

25,825

 

 

$

27,916

 

 

$

848

 

 

$

946

 

 

 

 

 

 

 

Changes in PBO and Accumulated Postretirement
   Benefit Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

28,702

 

 

$

31,423

 

 

$

1,096

 

 

$

2,611

 

 

$

1,286

 

 

$

1,456

 

Service cost

 

 

651

 

 

 

835

 

 

 

44

 

 

 

56

 

 

 

37

 

 

 

48

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

34

 

 

 

32

 

 

 

55

 

 

 

41

 

Actuarial (gain) loss

 

 

(2,882

)

 

 

(3,356

)

 

 

(121

)

 

 

(19

)

 

 

(138

)

 

 

(192

)

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,315

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

(40

)

 

 

(8

)

 

 

(233

)

 

 

36

 

 

 

46

 

PBO/APBO at the end of year

 

$

26,426

 

 

$

28,702

 

 

$

990

 

 

$

1,096

 

 

$

1,169

 

 

$

1,286

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

25,970

 

 

$

29,785

 

 

$

663

 

 

$

2,133

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

(707

)

 

 

(3,168

)

 

 

(83

)

 

 

(4

)

 

 

—

 

 

 

—

 

Company contributions

 

 

826

 

 

 

533

 

 

 

55

 

 

 

135

 

 

 

71

 

 

 

68

 

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,395

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(170

)

 

 

36

 

 

 

45

 

Fair value of plan assets at the end of year

 

$

24,826

 

 

$

25,970

 

 

$

579

 

 

$

663

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

88

 

 

$

126

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare, and
   other benefit obligations

 

 

(39

)

 

 

(20

)

 

 

(23

)

 

 

(19

)

 

 

(84

)

 

 

(95

)

Noncurrent pension, postretirement healthcare,
   and other benefit obligations

 

 

(1,561

)

 

 

(2,712

)

 

 

(476

)

 

 

(540

)

 

 

(1,085

)

 

 

(1,191

)

Net amount recognized

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

Amounts Recognized in AOCI and not yet reflected
   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit and other

 

$

(47

)

 

$

(54

)

 

$

4

 

 

$

(3

)

 

$

—

 

 

$

—

 

 

Our pension plans included the following components at May 31 (in millions):

 

 

PBO

 

 

Fair Value of
Plan Assets

 

 

Funded Status

 

2023

 

 

 

 

 

 

 

 

 

Qualified

 

$

26,269

 

 

$

24,826

 

 

$

(1,443

)

Nonqualified

 

 

157

 

 

 

—

 

 

 

(157

)

International Plans

 

 

990

 

 

 

579

 

 

 

(411

)

Total

 

$

27,416

 

 

$

25,405

 

 

$

(2,011

)

2022

 

 

 

 

 

 

 

 

 

Qualified

 

$

28,524

 

 

$

25,970

 

 

$

(2,554

)

Nonqualified

 

 

178

 

 

 

—

 

 

 

(178

)

International Plans

 

 

1,096

 

 

 

663

 

 

 

(433

)

Total

 

$

29,798

 

 

$

26,633

 

 

$

(3,165

)

 

The table above provides the PBO, fair value of plan assets, and funded status of our pension plans on an aggregated basis. The following tables present our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

 

 

 

PBO Exceeds the Fair Value
of Plan Assets

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

24,826

 

 

$

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

223

 

 

$

199

 

PBO

 

 

(722

)

 

 

(758

)

Net funded status

 

$

(499

)

 

$

(559

)

 

 

 

ABO Exceeds the Fair Value
of Plan Assets

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(25,825

)

 

$

(27,916

)

Fair value of plan assets

 

 

24,826

 

 

 

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(562

)

 

$

(604

)

Fair value of plan assets

 

 

201

 

 

 

196

 

PBO

 

 

(700

)

 

 

(754

)

Net funded status

 

$

(499

)

 

$

(558

)
(1)
ABO not used in determination of funded status.

Contributions to our qualified U.S. Pension Plans for the years ended May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

800

 

 

 

500

 

 

 

$

800

 

 

$

500

 

 

For 2024, no pension contributions are required for our U.S. Pension Plans as they are fully funded under the Employee Retirement Income Security Act. However, we expect to make voluntary contributions of $800 million to these plans in 2024.

Net periodic benefit (income) cost for the years ended May 31 were as follows (in millions):

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

651

 

 

$

835

 

 

$

851

 

 

$

44

 

 

$

56

 

 

$

83

 

 

$

37

 

 

$

48

 

 

$

44

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

959

 

 

 

34

 

 

 

32

 

 

 

43

 

 

 

55

 

 

 

41

 

 

 

39

 

Expected return on plan
   assets

 

 

(1,688

)

 

 

(1,910

)

 

 

(1,786

)

 

 

(14

)

 

 

(26

)

 

 

(52

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior
   service credit

 

 

(7

)

 

 

(7

)

 

 

(8

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial losses (gains)
   and other

 

 

(487

)

 

 

1,683

 

 

 

(1,288

)

 

 

(25

)

 

 

87

 

 

 

(13

)

 

 

(138

)

 

 

(192

)

 

 

125

 

Net periodic benefit (income) cost

 

$

(313

)

 

$

1,621

 

 

$

(1,272

)

 

$

37

 

 

$

147

 

 

$

59

 

 

$

(46

)

 

$

(103

)

 

$

208

 

 

Amounts recognized in other comprehensive income were primarily related to amortization of prior service cost in our U.S. Pension Plans of $7 million in 2023 and $7 million in 2022 ($6 million, net of tax, in 2023 and $6 million, net of tax, in 2022).

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement
Healthcare Plans

 

2024

 

$

1,392

 

 

$

54

 

 

$

84

 

2025

 

 

1,457

 

 

 

47

 

 

 

92

 

2026

 

 

1,544

 

 

 

50

 

 

 

101

 

2027

 

 

1,621

 

 

 

55

 

 

 

110

 

2028

 

 

1,697

 

 

 

60

 

 

 

117

 

2029-2033

 

 

9,471

 

 

 

395

 

 

 

610

 

 

These estimates are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.

Future medical benefit claims costs are estimated to increase at an annual rate of 6.40% during 2024, decreasing to an annual growth rate of 4.0% in 2045 and thereafter.

v3.23.2
Business Segments and Disaggregated Revenue
 12 Months Ended
May 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Disaggregated Revenue

NOTE 14: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE

FedEx Express, FedEx Ground, and FedEx Freight represent our major service lines and, along with FedEx Services, constitute our reportable segments. Our reportable segments include the following businesses:

 

FedEx Express Segment

FedEx Express (express transportation, small-package ground delivery, and freight transportation)

 

FedEx Custom Critical, Inc. (time-critical transportation)

 

 

FedEx Ground Segment

FedEx Ground (small-package ground delivery)

 

 

FedEx Freight Segment

FedEx Freight (LTL freight transportation)

 

 

FedEx Services Segment

FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and back-office functions)

In the fourth quarter of 2023, FedEx announced one FedEx, a consolidation plan to ultimately bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground network under the respected FedEx brand. The organizational redesign will be implemented in phases with full implementation expected in June 2024. During the implementation process in fiscal 2024, each of our current reportable segments will continue to have discrete financial information that will be regularly reviewed when evaluating performance and making resource allocation decisions, and aligns with our management reporting structure and our internal financial reporting. In the first quarter of fiscal 2025 when the consolidation plan has been completed, we expect to begin reporting a resegmented structure that will align with an updated management reporting structure and how management will evaluate performance and make resource allocation decisions under one FedEx.

Effective June 1, 2020, the results of FedEx Cross Border Holdings, Inc. (“FedEx Cross Border”) are included in the FedEx Express segment prospectively as the impact to prior periods was not material. This change was made to reflect our internal management reporting structure. FedEx Cross Border was subsequently merged into FedEx Express in 2022.

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 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.

 

Other Intersegment Transactions

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. ShopRunner, Inc. was merged into FedEx Dataworks during 2023.

Also included in Corporate and other is the FedEx Office and Print Services, Inc. (“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, depreciation and amortization, operating income (loss), and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:

 

 

FedEx
Express
  Segment

 

 

FedEx
Ground
  Segment

 

 

FedEx
Freight
  Segment

 

 

FedEx
Services
  Segment

 

 

Corporate, other, and eliminations

 

 

Consolidated
Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

42,743

 

 

$

33,507

 

 

$

9,632

 

 

$

301

 

 

$

3,972

 

 

$

90,155

 

2022

 

 

45,814

 

 

 

33,232

 

 

 

9,532

 

 

 

253

 

 

 

4,681

 

 

 

93,512

 

2021

 

 

42,078

 

 

 

30,496

 

 

 

7,833

 

 

 

32

 

 

 

3,520

 

 

 

83,959

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

2,105

 

 

$

1,020

 

 

$

387

 

 

$

529

 

 

$

135

 

 

$

4,176

 

2022

 

 

2,007

 

 

 

919

 

 

 

406

 

 

 

513

 

 

 

125

 

 

 

3,970

 

2021

 

 

1,946

 

 

 

843

 

 

 

417

 

 

 

462

 

 

 

125

 

 

 

3,793

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023(1)

 

$

1,064

 

 

$

3,140

 

 

$

1,925

 

 

$

—

 

 

$

(1,217

)

 

$

4,912

 

2022(2)

 

 

2,922

 

 

 

2,642

 

 

 

1,663

 

 

 

—

 

 

 

(982

)

 

 

6,245

 

2021(3)

 

 

2,810

 

 

 

3,193

 

 

 

1,005

 

 

 

—

 

 

 

(1,151

)

 

 

5,857

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

47,754

 

 

$

36,815

 

 

$

10,197

 

 

$

7,415

 

 

$

(15,038

)

 

$

87,143

 

2022

 

 

47,604

 

 

 

32,645

 

 

 

8,904

 

 

 

8,389

 

 

 

(11,548

)

 

 

85,994

 

2021

 

 

46,356

 

 

 

29,134

 

 

 

7,371

 

 

 

8,639

 

 

 

(8,723

)

 

 

82,777

 

 

(1)
Includes business optimization costs of $262 million included in “Corporate, other, and eliminations” and business optimization and realignment costs of $11 million and $36 million, respectively, included in the FedEx Express segment. Includes noncash other asset impairment charges of $70 million primarily related to the decision to permanently retire certain aircraft and related engines at FedEx Express and goodwill and other asset impairment charges of $47 million at FedEx Dataworks related to the ShopRunner acquisition. Also includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
(2)
Includes business realignment costs of $278 million included in the FedEx Express segment, as well as a charge of $210 million related to the pre- and post-judgment interest in connection with a separate FedEx Ground legal matter included in “Corporate, other, and eliminations.” Also includes TNT Express integration expenses of $132 million included in “Corporate, other, and eliminations” and the FedEx Express segment.
(3)
Includes TNT Express integration expenses of $210 million included in “Corporate, other, and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
(4)
Segment assets include intercompany receivables.

The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):

 

 

 

FedEx
Express
  Segment

 

 

 

FedEx
Ground
  Segment

 

 

FedEx
Freight
  Segment

 

 

FedEx
Services
  Segment

 

 

Other

 

 

Consolidated
Total

 

2023

 

$

3,055

 

 

 

$

1,995

 

 

$

556

 

 

$

431

 

 

$

137

 

 

$

6,174

 

2022

 

 

3,637

 

 

 

 

2,139

 

 

 

319

 

 

 

565

 

 

 

103

 

 

 

6,763

 

2021

 

 

3,503

 

 

 

 

1,446

 

 

 

320

 

 

 

512

 

 

 

103

 

 

 

5,884

 

 

The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

8,916

 

 

$

9,084

 

 

$

8,116

 

U.S. overnight envelope

 

 

1,980

 

 

 

1,971

 

 

 

1,791

 

U.S. deferred

 

 

5,128

 

 

 

5,330

 

 

 

4,984

 

Total U.S. domestic package revenue

 

 

16,024

 

 

 

16,385

 

 

 

14,891

 

International priority

 

 

10,939

 

 

 

12,130

 

 

 

10,317

 

International economy

 

 

2,911

 

 

 

2,838

 

 

 

2,632

 

Total international export package revenue

 

 

13,850

 

 

 

14,968

 

 

 

12,949

 

International domestic(1)

 

 

4,043

 

 

 

4,340

 

 

 

4,640

 

Total package revenue

 

 

33,917

 

 

 

35,693

 

 

 

32,480

 

Freight:

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,906

 

 

 

3,041

 

 

 

3,325

 

International priority

 

 

3,060

 

 

 

3,840

 

 

 

3,030

 

International economy

 

 

1,510

 

 

 

1,653

 

 

 

1,582

 

International airfreight

 

 

166

 

 

 

177

 

 

 

245

 

Total freight revenue

 

 

7,642

 

 

 

8,711

 

 

 

8,182

 

Other(2)

 

 

1,184

 

 

 

1,410

 

 

 

1,416

 

Total FedEx Express segment

 

 

42,743

 

 

 

45,814

 

 

 

42,078

 

FedEx Ground segment

 

 

33,507

 

 

 

33,232

 

 

 

30,496

 

FedEx Freight segment

 

 

9,632

 

 

 

9,532

 

 

 

7,833

 

FedEx Services segment

 

 

301

 

 

 

253

 

 

 

32

 

Other and eliminations(3)

 

 

3,972

 

 

 

4,681

 

 

 

3,520

 

 

 

$

90,155

 

 

$

93,512

 

 

$

83,959

 

GEOGRAPHICAL INFORMATION(4)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

U.S.

 

$

64,890

 

 

$

64,941

 

 

$

58,792

 

International:

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

23,090

 

 

 

25,564

 

 

 

23,085

 

FedEx Ground segment

 

 

860

 

 

 

857

 

 

 

735

 

FedEx Freight segment

 

 

264

 

 

 

235

 

 

 

190

 

FedEx Services segment

 

 

1

 

 

 

1

 

 

 

1

 

Other

 

 

1,050

 

 

 

1,914

 

 

 

1,156

 

Total international revenue

 

 

25,265

 

 

 

28,571

 

 

 

25,167

 

 

 

$

90,155

 

 

$

93,512

 

 

$

83,959

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

U.S.

 

$

56,449

 

 

$

53,311

 

 

$

49,407

 

International

 

 

12,084

 

 

 

12,318

 

 

 

12,790

 

 

 

$

68,533

 

 

$

65,629

 

 

$

62,197

 

 

(1)
International domestic revenue relates to our intra-country operations.
(2)
Includes the operations of FedEx Cross Border beginning June 1, 2020.
(3)
Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
(4)
International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
v3.23.2
Supplemental Cash Flow Information
 12 Months Ended
May 31, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

NOTE 15: SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Cash payments for:

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

694

 

 

$

695

 

 

$

819

 

Income taxes

 

$

1,096

 

 

$

751

 

 

$

1,374

 

Income tax refunds received

 

 

(53

)

 

 

(574

)

 

 

(55

)

Cash tax payments, net

 

$

1,043

 

 

$

177

 

 

$

1,319

 
v3.23.2
Guarantees and Indemnifications
 12 Months Ended
May 31, 2023
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications

NOTE 16: GUARANTEES AND INDEMNIFICATIONS

In conjunction with certain transactions, primarily the lease, sale, or purchase of real estate, operating assets, or services in the ordinary course of business and in connection with business sales and acquisitions, we may provide routine guarantees or indemnifications (e.g., environmental, fuel, tax, and intellectual property infringement), the terms of which range in duration, and often they are not limited and have no specified maximum obligation. The overall maximum potential amount of the obligation under such guarantees and indemnifications cannot be reasonably estimated. Historically, we have not been required to make significant payments under our guarantee or indemnification obligations and no material amounts have been recognized in our financial statements for the underlying fair value of these obligations. As a result of the TNT Express acquisition, we previously assumed a guarantee related to the demerger of TNT Express and PostNL N.V., which occurred in 2011, for pension benefits earned prior to the date of the demerger. The guarantee was released in 2023.
v3.23.2
Commitments
 12 Months Ended
May 31, 2023
Commitments [Abstract]  
Commitments

NOTE 17: COMMITMENTS

Annual purchase commitments under various contracts as of May 31, 2023 were as follows (in millions):

 

 

Aircraft and
Aircraft Related

 

 

Other(1)

 

 

Total

 

2024

 

$

1,710

 

 

$

741

 

 

$

2,451

 

2025

 

 

1,560

 

 

 

555

 

 

 

2,115

 

2026

 

 

580

 

 

 

428

 

 

 

1,008

 

2027

 

 

290

 

 

 

178

 

 

 

468

 

2028

 

 

256

 

 

 

93

 

 

 

349

 

Thereafter

 

 

1,656

 

 

 

50

 

 

 

1,706

 

Total

 

$

6,052

 

 

$

2,045

 

 

$

8,097

 
(1)
Primarily information technology and advertising contracts.

The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above.

We have several aircraft modernization programs under way that are supported by the purchase of Boeing 777 Freighter (“B777F”) and Boeing 767-300 Freighter (“B767F”) aircraft. These aircraft are significantly more fuel-efficient per unit than the aircraft types previously utilized, and these expenditures are necessary to achieve significant long-term operating savings and to replace older aircraft. Our ability to delay the timing of these aircraft-related expenditures is limited without incurring significant costs to modify existing purchase agreements.

As of May 31, 2023, we had $1.0 billion 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 consolidated balance sheets. Aircraft and aircraft-related contracts are subject to price escalations. The following table is a summary of the aircraft we were committed to purchase as of May 31, 2023, with the year of expected delivery:

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2024

 

 

15

 

 

 

10

 

 

 

14

 

 

 

4

 

 

 

43

 

2025

 

 

12

 

 

 

6

 

 

 

10

 

 

 

2

 

 

 

30

 

2026

 

 

14

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

15

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

41

 

 

 

17

 

 

 

24

 

 

 

6

 

 

 

88

 
v3.23.2
Contingencies
 12 Months Ended
May 31, 2023
Loss Contingency [Abstract]  
Contingencies

NOTE 18: 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 Services Employment Lawsuit. In May 2021, FedEx Services was named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Texas related to the termination of a former FedEx Services employee. The complaint alleged race discrimination and retaliation for complaints of discrimination under Section 1981 of the Civil Rights Act of 1866 and Title VII of the Civil Rights Act of 1964. After trial, in October 2022, the jury found in favor of FedEx Services on the race discrimination claims but awarded the plaintiff compensatory damages of $1.16 million for emotional distress and punitive damages of $365 million for the retaliation claims. The court entered final judgment in the amount of the jury verdict. FedEx Services has appealed the verdict to the U.S. Court of Appeals for the Fifth Circuit. FedEx Services argues on appeal that FedEx Services is entitled to judgment as a matter of law on the retaliation claims, plaintiff’s claims were not timely filed, punitive damages are not available as a matter of law and, if allowed, must be reduced to no greater than a single-digit multiple of the award for compensatory damages based on the United States Supreme Court’s ruling in State Farm v. Campbell, and the compensatory damages award must be reduced to conform with the evidence and the Fifth Circuit’s maximum recovery rule. FedEx Services argues in the alternative that a new trial should be granted.

FedEx believes ultimate compensatory and punitive damages and pre- and post-judgment interest up to $75 million will be covered by insurance, subject to a retention of $5 million. An immaterial loss accrual below the retention has been recorded in FedEx’s consolidated financial statements.

 

FedEx Ground Negligence Lawsuit. In December 2022, FedEx Ground was named as a defendant in a lawsuit filed in Texas state court related to the alleged kidnapping and first-degree murder of a minor by a driver employed by a service provider engaged by FedEx Ground. The complaint alleges compensatory and punitive damages against FedEx Ground for negligent and gross negligent hiring and retention, as well as negligent entrustment. The service provider and driver are also named as defendants in the lawsuit. An immaterial loss accrual has been recorded in FedEx’s consolidated financial statements. It is reasonably possible that an additional material loss could be incurred. Given the early stage of the litigation, we cannot estimate the amount or range of such additional loss, if any.

 

Other Matters. FedEx and its subsidiaries are subject to other legal proceedings that arise in the ordinary course of business, including certain lawsuits containing various class-action allegations of wage-and-hour violations in which plaintiffs claim, among other things, that they were forced to work “off the clock,” were not paid overtime, or were not provided work breaks or other benefits, as well as other lawsuits containing allegations that FedEx and its subsidiaries are responsible for third-party losses related to vehicle accidents that could exceed our insurance coverage for such losses. In the opinion of management, the aggregate liability, if any, with respect to these other actions will not have a material adverse effect on our financial position, results of operations, or cash flows.

 

Environmental Matters. SEC regulations require us to disclose certain information about proceedings arising under federal, state, or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, FedEx uses a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required. Applying this threshold, there are no environmental matters required to be disclosed for this period.
v3.23.2
Valuation and Qualifying Accounts
 12 Months Ended
May 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule Of Valuation And Qualifying Accounts

SCHEDULE II

FEDEX CORPORATION

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED MAY 31, 2023, 2022, AND 2021

(IN MILLIONS)

 

 

 

 

 

ADDITIONS

 

 

 

 

 

 

 

DESCRIPTION

 

BALANCE
AT
BEGINNING
OF YEAR

 

 

CHARGED
TO
EXPENSES

 

 

CHARGED
TO
OTHER
ACCOUNTS

 

 

DEDUCTIONS

 

 

BALANCE
AT
END OF
YEAR

 

Accounts Receivable Reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

340

 

 

$

696

 

 

$

—

 

 

$

564

 

(a)

$

472

 

2022

 

 

358

 

 

 

403

 

 

 

—

 

 

 

421

 

(a)

 

340

 

2021

 

 

175

 

 

 

577

 

 

 

—

 

 

 

394

 

(a)

 

358

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

352

 

 

$

—

 

 

$

1,662

 

(b)

$

1,686

 

(c)

$

328

 

2022

 

 

384

 

 

 

—

 

 

 

1,795

 

(b)

 

1,827

 

(c)

 

352

 

2021

 

 

215

 

 

 

—

 

 

 

1,892

 

(b)

 

1,723

 

(c)

 

384

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

360

 

 

$

33

 

 

$

—

 

 

$

117

 

 

$

276

 

2022

 

 

349

 

 

 

35

 

 

 

—

 

 

 

24

 

 

 

360

 

2021

 

 

335

 

 

 

38

 

 

 

—

 

 

 

24

 

 

 

349

 
(a)
Uncollectible accounts written off, net of recoveries, and other adjustments.
(b)
Principally charged against revenue.
(c)
Service failures, rebills, and other.
v3.23.2
Description of Business Segments and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Description of Business Segments DESCRIPTION OF BUSINESS SEGMENTS. FedEx Corporation (“FedEx”) provides a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating collaboratively, and innovating digitally as one FedEx. Our primary operating companies are Federal Express Corporation (“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 FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions that support our operating segments.
Fiscal Years FISCAL YEARS. Except as otherwise specified, references to years indicate our fiscal year ended May 31, 2023 or ended May 31 of the year referenced.
Principles of Consolidation PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the accounts of FedEx and its subsidiaries, substantially all of which are wholly owned. All significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition

REVENUE RECOGNITION.

Satisfaction of Performance Obligation

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the basis of revenue recognition in accordance with U.S. generally accepted accounting principles (“GAAP”). To determine the proper revenue recognition method for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our contracts, the customer contracts with us to provide distinct services within a single contract, primarily transportation services. Substantially all of our contracts with customers for transportation services include only one performance obligation, the transportation services themselves. However, if a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We frequently sell standard transportation services with observable standalone sales prices. In these instances, the observable standalone sales are used to determine the standalone selling price.

For transportation services, revenue is recognized over time as we perform the services in the contract because of the continuous transfer of control to the customer. Our customers receive the benefit of our services as the goods are transported from one location to another. If we were unable to complete delivery to the final location, another entity would not need to reperform the transportation service already performed. As control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost measure of progress for our package delivery contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenue, including ancillary or accessorial fees and reductions for estimated customer incentives, is recorded proportionally as costs are incurred. Costs to fulfill include labor and other direct costs and an allocation of indirect costs. For our FedEx Freight and freight forwarding contracts, an output method of progress based on time-in-transit is utilized as the timing of costs incurred does not best depict the transfer of control to the customer.

We also provide customized customer-specific solutions, such as supply chain management solutions and inventory and service parts logistics, through which we provide the service of integrating a complex set of tasks and components into a single capability. For these arrangements, the majority of which are conducted by our FedEx Logistics, Inc. (“FedEx Logistics”) operating segment, the entire contract is accounted for as one performance obligation. For these performance obligations, we typically have a right to consideration from customers in an amount that corresponds directly with the value to the customers of our performance completed to date, and as such we recognize revenue in the amount to which we have a right to invoice the customer.

Contract Modification

Contracts are often modified to account for changes in the rates we charge our customers or to add additional distinct services. We consider contract modifications to exist when the modification either creates new enforceable rights and obligations or alters the existing arrangement. Contract modifications that add distinct goods or services are treated as separate contracts. Contract modifications that do not add distinct goods or services typically change the price of existing services. These contract modifications are accounted for prospectively as the remaining performance obligations are distinct.

Variable Consideration

Certain contracts contain customer incentives, guaranteed service refunds, and other provisions that can either increase or decrease the transaction price. These incentives are generally awarded based upon achieving certain performance metrics. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts of revenue, which may be reduced by incentives or other contract provisions, in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on an assessment of anticipated customer spending and all information (historical, current, and forecasted) that is reasonably available to us.

Principal vs. Agent Considerations

Transportation services are provided with the use of employees and independent businesses that contract with FedEx. GAAP requires us to evaluate whether our businesses themselves promise to transfer services to the customer (as the principal) or to arrange for services to be provided by another party (as the agent) using a control model. Based on our evaluation of the control model, we determined that FedEx is the principal to the transaction for most of these services and revenue is recognized on a gross basis based on the transfer of control to the customer. Costs associated with independent businesses providing transportation services are recognized as incurred and included in the caption “Purchased transportation” in the accompanying consolidated statements of income.

Our contract logistics, global trade services, and certain transportation businesses engage in certain transactions wherein they act as agents. Revenue from these transactions is recorded on a net basis. Net revenue includes billings to customers less third-party charges, including transportation or handling costs, fees, commissions, and taxes and duties.

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 totaled $686 million and $861 million at May 31, 2023 and May 31, 2022, respectively. Contract assets net of deferred unearned revenue were $484 million and $623 million at May 31, 2023 and May 31, 2022, respectively. Contract assets are included within current assets in the accompanying consolidated balance sheets. Contract liabilities related to advance payments from customers were $19 million and $8 million at May 31, 2023 and May 31, 2022, respectively. Contract liabilities are included within current liabilities in the accompanying consolidated balance sheets.

Payment Terms

Certain of our revenue-producing transactions are subject to taxes and duties, such as sales tax, assessed by governmental authorities. We present these revenues net of tax. Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.

Disaggregation of Revenue

See Note 14 for disclosure of disaggregated revenue for the periods ended May 31. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.
Credit Risk CREDIT RISK. We routinely grant credit to many of our customers for transportation and business services without collateral. The risk of credit loss in our trade receivables is substantially mitigated by our credit evaluation process, short collection terms, and sales to a large number of customers, as well as the low revenue per transaction for most of our services. Allowances for potential credit losses are determined based on historical experience and the impact of current economic conditions. Historically, credit losses have been within management’s expectations.
Advertising ADVERTISING. Advertising and promotion costs are expensed as incurred and are classified in other operating expenses. Advertising and promotion expenses were $435 million in 2023, $470 million in 2022, and $428 million in 2021.
Cash Equivalents CASH EQUIVALENTS. Cash in excess of current operating requirements is invested in short-term, interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value.
Spare Parts, Supplies And Fuel SPARE PARTS, SUPPLIES, AND FUEL. Spare parts (principally aircraft-related) are reported at weighted-average cost. Allowances for obsolescence are provided for spare parts currently identified as excess or obsolete as well as expected to be on hand at the date the aircraft are retired from service. These allowances are provided over the estimated useful life of the related aircraft and engines. The majority of our supplies and fuel are reported at weighted-average cost.
Property And Equipment

PROPERTY AND EQUIPMENT. Expenditures for major additions, improvements, and flight equipment modifications are capitalized when such costs are determined to extend the useful life of the asset or are part of the cost of acquiring the asset. Expenditures for equipment overhaul costs of engines or airframes prior to their operational use are capitalized as part of the cost of such assets as they are costs required to ready the asset for its intended use. Maintenance and repairs costs are charged to expense as incurred, except for certain aircraft engine maintenance costs incurred under third-party service agreements. These agreements result in costs being expensed based on cycles or hours flown and are subject to annual escalation. These service contracts transfer risk to third-party service providers and generally fix the amount we pay for maintenance to the service provider as a rate per cycle or flight hour, in exchange for maintenance and repairs under a predefined maintenance program. We capitalize certain direct internal and external costs associated with the development of internal-use software, including implementation of cloud computing service arrangements. Gains and losses on sales of property used in operations are classified within operating expenses and historically have been nominal.

For financial reporting purposes, we record depreciation and amortization of property and equipment on a straight-line basis over the asset’s service life or related lease term, if shorter. For income tax purposes, depreciation is computed using accelerated methods when applicable.

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2023

 

 

2022

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

16,973

 

 

$

15,949

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,038

 

 

 

2,163

 

Package handling and ground support equipment

 

3 to 15 years

 

 

7,562

 

 

 

6,447

 

Information technology

 

3 to 7 years

 

 

1,859

 

 

 

1,907

 

Vehicles and trailers

 

3 to 15 years

 

 

3,996

 

 

 

4,004

 

Facilities and other

 

1 to 33 years

 

 

8,270

 

 

 

7,621

 

Substantially all property and equipment have no material residual values. The majority of aircraft costs are depreciated on a straight-line basis over 15 to 30 years. We periodically evaluate the estimated service lives and residual values used to depreciate our property and equipment.

Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, was $4.2 billion in 2023, $4.0 billion in 2022, and $3.8 billion in 2021. Depreciation and amortization expense includes amortization of assets under finance leases.

Capitalized Interest CAPITALIZED INTEREST. Interest on funds used to finance the acquisition and modification of aircraft, including purchase deposits, construction of certain facilities, and development of certain software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under construction. Capitalized interest was $77 million in 2023, $62 million in 2022, and $68 million in 2021.
Impairment of Long-Lived Assets

IMPAIRMENT OF LONG-LIVED ASSETS. Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows, or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

We operate integrated transportation networks so cash flows for most of our operating assets to be held and used are assessed at a network level, not at an individual asset level, for our analysis of impairment.

In the fourth quarter of 2023, we made the decision to permanently retire from service 12 Boeing MD-11F aircraft and 25 related engines, four Boeing 757-200 aircraft and one related engine, and two Airbus A300-600 aircraft and eight related engines, to align with the plans of FedEx Express to modernize its aircraft fleet, improve its global network, and better align air network capacity to match current and anticipated shipment volumes. As a consequence of this decision, a noncash impairment charge of $70 million ($54 million, net of tax, or $0.21 per diluted share) was recorded in the fourth quarter. All of these aircraft were temporarily idled and not in revenue service.

In the normal management of our aircraft fleet, we routinely idle aircraft and engines temporarily due to maintenance cycles and adjustments of our network capacity to match seasonality and overall customer demand levels. Temporarily idled assets are classified as available-for-use, and we continue to record depreciation expense associated with these assets. These temporarily idled assets are assessed for impairment and remaining life on a quarterly basis. The criteria for determining whether an asset has been permanently removed from service (and, as a result, is potentially impaired) include, but are not limited to, our global economic outlook and the impact of our outlook on our current and projected volume levels, including capacity needs during our peak shipping seasons; the introduction of new fleet types or decisions to permanently retire an aircraft fleet from operations; and changes to planned service expansion activities. At May 31, 2023, we had 11 aircraft temporarily idled. These aircraft have been idled for an average of five months and are expected to return to revenue service.
Goodwill and Intangible Assets

GOODWILL. Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in our acquisitions, such as the expected benefits from synergies of the combination and the existing workforce of the acquired business. Goodwill is reviewed at least annually for impairment. In our evaluation of goodwill impairment, we perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, we proceed to test goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). Fair value for our reporting units is determined using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates, and expected capital expenditures. Fair value determinations may include both internal and third-party valuations. Unless circumstances otherwise dictate, we perform our annual impairment testing in the fourth quarter. See Note 4 for additional information.

INTANGIBLE ASSETS. Intangible assets primarily include customer relationships, technology assets, and trademarks acquired in business combinations. Intangible assets are amortized over periods ranging from 1 to 15 years, either on a straight-line basis or on a basis consistent with the pattern in which the economic benefits are realized. See Note 4 for additional information.

Pension and Postretirement Healthcare Plans

PENSION AND POSTRETIREMENT HEALTHCARE PLANS. Our defined benefit pension and other postretirement benefit plans are measured using actuarial techniques that reflect management’s assumptions for discount rate, investment returns on plan assets, salary increases, expected retirement, mortality, employee turnover, and future increases in healthcare costs. We determine the discount rate (which is required to be the rate at which the projected benefit obligation (“PBO”) could be effectively settled as of the measurement date) with the assistance of actuaries, who calculate the yield on a theoretical portfolio of high-grade corporate bonds (rated Aa or better) with cash flows that are designed to match our expected benefit payments in future years. We use the fair value of plan assets to calculate the expected return on assets (“EROA”) for interim and segment reporting purposes. Our EROA is a judgmental estimate which is reviewed on an annual basis and revised as appropriate.

The accounting guidance related to employers’ accounting for defined benefit pension and other postretirement plans requires recognition in the balance sheet of the funded status of these plans. We use “mark-to-market” (or “MTM”) accounting and immediately recognize changes in the fair value of plan assets and actuarial gains or losses in our results annually in the fourth quarter each year. The annual MTM adjustment is recognized at the corporate level and does not impact segment results. The remaining components of pension and postretirement healthcare expense, primarily service and interest costs and the EROA, are recorded on a quarterly basis. Only service cost is recognized in segment level operating results.
Income Taxes

INCOME TAXES. Deferred income taxes are provided for the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The liability method is used to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies. These sources of income rely heavily on estimates to make this determination and, thus, there is a risk that these estimates will have to be revised as new information is received. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. We believe we will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets that are not subject to valuation allowances. We record the taxes for global intangible low-taxed income as a period cost.

We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision.

We classify interest related to income tax liabilities as interest expense, and if applicable, penalties are recognized as a component of income tax expense. The income tax liabilities and accrued interest and penalties that are due within one year of the balance sheet date are presented as current liabilities. The noncurrent portion of our income tax liabilities and accrued interest and penalties are recorded in the caption “Other liabilities” in the accompanying consolidated balance sheets.

Self-Insurance Accruals

SELF-INSURANCE ACCRUALS. We are self-insured for costs associated with workers’ compensation claims, vehicle accidents, property and cargo loss, general business liabilities, and benefits paid under employee disability programs. Accruals are primarily based on the actuarially estimated cost of claims, which includes incurred-but-not-reported claims. Current workers’ compensation claims, vehicle and general liability, and long-term disability are included in accrued expenses. We self-insure up to certain limits that vary by operating company and type of risk. Claims costs are recognized on a gross basis and a receivable is recorded for amounts covered by third-party insurance. Periodically, we evaluate the level of insurance coverage and adjust insurance levels based on risk tolerance and premium expense.

We are also self-insured for certain short-term employee healthcare claims which are included within other accrued expenses.

Leases

LEASES. We lease certain facilities, aircraft, equipment, and vehicles under operating and finance leases. A determination of whether a contract contains a lease is made at the inception of the arrangement. Our leased facilities include national, regional, and metropolitan sorting facilities; retail facilities; and administrative buildings.

Our leases generally contain options to extend or terminate the lease. We reevaluate our leases on a regular basis to consider the economic and strategic incentives of exercising the renewal options, and how they align with our operating strategy. Therefore, substantially all the renewal option periods are not included within the lease term and the associated payments are not included in the measurement of the right-of-use asset and lease liability as the options to extend are not reasonably certain at lease commencement. Short-term leases with an initial term of 12 months or less are not recognized in the right-to-use asset and lease liability on the consolidated balance sheets.

The lease liabilities are measured at the lease commencement date and determined using the present value of the minimum lease payments not yet paid and our incremental borrowing rate, which approximates the rate at which we would borrow, on a collateralized basis, over the term of a lease in the applicable currency environment. The interest rate implicit in the lease is generally not determinable in transactions where we are the lessee.

For real estate leases, we account for lease components and non-lease components (such as common area maintenance) as a single lease component. Certain real estate leases require additional payments based on sales volume and index-based rate increases, as well as reimbursement for real estate taxes, common area maintenance, and insurance, which are expensed as incurred as variable lease costs. Certain leases contain fixed lease payments for items such as real estate taxes, common area maintenance, and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use asset and lease liability. See Note 7 for additional information.
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 May 31, 2023, we designated €151 million of debt 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 May 31, 2023, the hedge remains effective.
Foreign Currency Translation

FOREIGN CURRENCY TRANSLATION. Translation gains and losses of foreign operations that use local currencies as the functional currency are accumulated and reported, net of applicable deferred income taxes, as a component of Accumulated Other Comprehensive Income (“AOCI”) within common stockholders’ investment. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in the caption “Other, net” in the accompanying consolidated statements of income and were immaterial for each period presented.

Employees Under Collective Bargaining Arrangements

EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots at FedEx Express, who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board began actively mediating the negotiations. In May 2023, FedEx Express reached a tentative successor agreement with ALPA. The tentative agreement was approved by ALPA’s FedEx Express Master Executive Council in June 2023 and is being presented to FedEx Express’s pilots for ratification during the first quarter of 2024. The ongoing ratification process has no effect on our operations. Once ratified, we expect to amend our pension plan offered to FedEx Express pilots resulting in a remeasurement of our pension benefit obligation.

Equity Investment

EQUITY INVESTMENT. 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 income (expense), 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 acquisitions and/or dispositions 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 are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other income (expense), net” on our consolidated statements of income.

As of May 31, 2023, such investments were not material to our financial position or results of operations.
Stock-Based Compensation

STOCK-BASED COMPENSATION. The accounting guidance related to share-based payments requires recognition of compensation expense for stock-based awards using a fair value method. We use the Black-Scholes option pricing model to calculate the fair value of stock options. The value of restricted stock awards is based on the stock price of the award on the grant date. We record stock-based compensation expense in the “Salaries and employee benefits” caption in the accompanying consolidated statements of income. We issue new shares or treasury shares from stock repurchases to cover employee stock option exercises and restricted stock grants.

Treasury Shares

TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $5 billion of FedEx common stock. As part of the repurchase program, we entered into an accelerated share repurchase (“ASR”) agreement with a bank in October 2022 to repurchase an aggregate of $1.5 billion of our common stock.

During 2023, 9.2 million shares were repurchased under the ASR agreement. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheets and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share.

In 2023, we repurchased 9.2 million shares of FedEx common stock at an average price of $163.39 per share for a total of $1.5 billion. In 2022, we repurchased 8.9 million shares of FedEx common stock at an average price of $253.85 per share for a total of $2.2 billion. As of May 31, 2023, approximately $2.6 billion remained available to use for repurchases under the program.

Shares under the program may be repurchased from time to time in the open market or in privately negotiated transactions. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of FedEx common stock, and general market conditions. No time limits were set for the completion of the program, and the program may be suspended or discontinued at any time.
Dividend Declared per Common Share

DIVIDENDS DECLARED PER COMMON SHARE. On April 5, 2023, our Board of Directors declared a quarterly cash dividend of $1.26 per share of common stock. The dividend was paid on July 3, 2023 to stockholders of record as of the close of business on June 12, 2023. 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.
Business Realignment Costs

BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments 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 optimized network through Network 2.0.

In the fourth quarter of 2023, we announced “one FedEx”, a consolidation plan to ultimately bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation, becoming a single company operating a unified, fully integrated air-ground network under the respected FedEx brand. FedEx Freight will continue to provide LTL freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with full implementation expected in June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0, the multi-year effort to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada.

We have announced the implementation of Network 2.0 in more than 20 markets, including the phased transition of all FedEx Ground operations and personnel in Canada to FedEx Express beginning in April 2024. Under Network 2.0, FedEx will continue to utilize both FedEx employees and contracted service providers.

We incurred costs associated with our business optimization activities of $273 million ($209 million, net of tax, or $0.81 per diluted share) in 2023. These costs were primarily related to consulting services, severance, professional fees, and idling our operations in Russia. These business optimization costs are included in Corporate, other, and eliminations and FedEx Express.

In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed during 2023. We incurred costs of $36 million ($27 million, net of tax, or $0.11 per diluted share) in 2023 and $278 million ($214 million, net of tax, or $0.80 per diluted share) in 2022 associated with our business realignment activities. These costs are related to certain employee severance arrangements. Payments under this program totaled approximately $118 million in 2023 and approximately $225 million in 2022. The pre-tax cost of our business realignment activities was approximately $430 million through 2023.
Use of Estimates

USE OF ESTIMATES. The preparation of our consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenue and expenses, and the disclosure of contingent liabilities. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include: self-insurance accruals; retirement plan obligations; long-term incentive accruals; tax liabilities; loss contingencies; litigation claims; impairment assessments on long-lived assets (including goodwill) that rely on projections of future cash flows; and purchase price allocations.
v3.23.2
Description of Business Segments and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Schedule of Depreciable Lives and Net Book Value of Property and Equipment

The depreciable lives and net book value of our property and equipment are as follows (dollars in millions):

 

 

 

 

Net Book Value at May 31,

 

 

 

Range

 

2023

 

 

2022

 

Wide-body aircraft and related equipment

 

15 to 30 years

 

$

16,973

 

 

$

15,949

 

Narrow-body and feeder aircraft and related equipment

 

5 to 30 years

 

 

2,038

 

 

 

2,163

 

Package handling and ground support equipment

 

3 to 15 years

 

 

7,562

 

 

 

6,447

 

Information technology

 

3 to 7 years

 

 

1,859

 

 

 

1,907

 

Vehicles and trailers

 

3 to 15 years

 

 

3,996

 

 

 

4,004

 

Facilities and other

 

1 to 33 years

 

 

8,270

 

 

 

7,621

 
v3.23.2
Goodwill and Other Intangible Assets (Tables)
 12 Months Ended
May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):

 

 

FedEx Express
Segment

 

 

FedEx Ground
Segment

 

 

FedEx Freight
Segment

 

 

Corporate, Other, and Eliminations

 

 

Total

 

Goodwill at May 31, 2021

 

$

5,358

 

 

$

943

 

 

$

767

 

 

$

1,966

 

 

$

9,034

 

Accumulated impairment charges

 

 

—

 

 

 

—

 

 

 

(133

)

 

 

(1,909

)

 

 

(2,042

)

Balance as of May 31, 2021

 

 

5,358

 

 

 

943

 

 

 

634

 

 

 

57

 

 

 

6,992

 

Other(1)

 

 

(433

)

 

 

(11

)

 

 

—

 

 

 

(4

)

 

 

(448

)

Balance as of May 31, 2022

 

 

4,925

 

 

 

932

 

 

 

634

 

 

 

53

 

 

 

6,544

 

Impairment charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(36

)

 

 

(36

)

Other(1)

 

 

(72

)

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(73

)

Balance as of May 31, 2023

 

$

4,853

 

 

$

932

 

 

$

634

 

 

$

16

 

 

$

6,435

 

Accumulated goodwill impairment
   charges as of May 31, 2023

 

$

—

 

 

$

—

 

 

$

(133

)

 

$

(1,945

)

 

$

(2,078

)

 

(1)
Primarily currency translation adjustments and purchase price allocation-related adjustments.
Schedule of Identifiable Intangible Assets The summary of our intangible assets and related accumulated amortization at May 31, 2023 and 2022 is as follows (in millions):

 

 

2023

 

 

2022

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

Customer relationships

 

$

583

 

 

$

(369

)

 

$

214

 

 

$

617

 

 

$

(340

)

 

$

277

 

Technology

 

 

62

 

 

 

(42

)

 

 

20

 

 

 

64

 

 

 

(40

)

 

 

24

 

Trademarks and other

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

1

 

 

 

(1

)

 

 

—

 

Total

 

$

646

 

 

$

(412

)

 

$

234

 

 

$

682

 

 

$

(381

)

 

$

301

 
Schedule of Finite Lived Intangible Assets Future Amortization Expense

Expected amortization expense for the next five years is as follows (in millions):

2024

$

47

 

2025

 

46

 

2026

 

46

 

2027

 

44

 

2028

 

42

 
v3.23.2
Selected Current Liabilities (Tables)
 12 Months Ended
May 31, 2023
Selected Current Liabilities Tables [Abstract]  
Components of Selected Current Liability Captions

The components of selected current liability captions at May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

Accrued salaries and employee benefits

 

 

 

 

 

 

Salaries

 

$

828

 

 

$

751

 

Employee benefits, including variable compensation

 

 

689

 

 

 

834

 

Compensated absences

 

 

958

 

 

 

946

 

 

 

$

2,475

 

 

$

2,531

 

Accrued expenses

 

 

 

 

 

 

Self-insurance accruals

 

$

1,730

 

 

$

1,646

 

Taxes other than income taxes

 

 

305

 

 

 

532

 

Other

 

 

2,712

 

 

 

3,010

 

 

 

$

4,747

 

 

$

5,188

 
v3.23.2
Long Term Debt and Other Financing Arrangements (Tables)
 12 Months Ended
May 31, 2023
Long Term Debt Tables [Abstract]  
Components of Long-term Debt (Net of Discounts and Debt Issuance Costs)

The components of long-term debt (net of discounts and debt issuance costs), along with maturity dates for the years subsequent to May 31, 2023, are as follows (in millions):

 

 

 

 

 

 

 

May 31,

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Interest Rate %

 

 

Maturity

 

 

 

 

 

 

Senior secured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.875

 

 

2034

 

$

831

 

 

$

881

 

Senior unsecured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.25

 

 

2026

 

 

748

 

 

 

747

 

 

 

 

3.40

 

 

2028

 

 

497

 

 

 

497

 

 

 

 

4.20

 

 

2029

 

 

398

 

 

 

397

 

 

 

3.10-4.25

 

 

2030

 

 

1,737

 

 

 

1,735

 

 

 

 

2.40

 

 

2031

 

 

991

 

 

 

990

 

 

 

 

4.90

 

 

2034

 

 

496

 

 

 

496

 

 

 

 

3.90

 

 

2035

 

 

495

 

 

 

495

 

 

 

 

3.25

 

 

2041

 

 

740

 

 

 

740

 

 

 

3.875-4.10

 

 

2043

 

 

985

 

 

 

985

 

 

 

 

5.10

 

 

2044

 

 

743

 

 

 

742

 

 

 

 

4.10

 

 

2045

 

 

641

 

 

 

641

 

 

 

4.55-4.75

 

 

2046

 

 

2,463

 

 

 

2,462

 

 

 

 

4.40

 

 

2047

 

 

736

 

 

 

736

 

 

 

 

4.05

 

 

2048

 

 

987

 

 

 

987

 

 

 

 

4.95

 

 

2049

 

 

836

 

 

 

836

 

 

 

 

5.25

 

 

2050

 

 

1,226

 

 

 

1,226

 

 

 

 

4.50

 

 

2065

 

 

246

 

 

 

246

 

 

 

 

7.60

 

 

2098

 

 

237

 

 

 

237

 

Euro senior unsecured debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.45

 

 

2026

 

 

537

 

 

 

533

 

 

 

 

1.625

 

 

2027

 

 

1,341

 

 

 

1,332

 

 

 

 

0.45

 

 

2029

 

 

641

 

 

 

637

 

 

 

 

1.30

 

 

2032

 

 

534

 

 

 

530

 

 

 

 

0.95

 

 

2033

 

 

693

 

 

 

688

 

Total senior unsecured debt

 

 

 

 

 

 

 

18,948

 

 

 

18,915

 

Finance lease obligations

 

 

 

 

 

 

 

800

 

 

 

468

 

 

 

 

 

 

 

 

 

20,579

 

 

 

20,264

 

Less current portion

 

 

 

 

 

 

 

126

 

 

 

82

 

 

 

 

 

 

 

 

$

20,453

 

 

$

20,182

 

 
Scheduled Principal Payments on Long-Term Debt Maturities

The following table sets forth the future scheduled principal payments due by fiscal year on our long-term debt (in millions):

 

 

 

 

 

 

 

Debt Principal

 

2024

 

 

 

 

 

$

52

 

2025

 

 

 

 

 

 

52

 

2026

 

 

 

 

 

 

1,340

 

2027

 

 

 

 

 

 

1,398

 

2028

 

 

 

 

 

 

552

 

Thereafter

 

 

 

 

 

 

16,606

 

     Subtotal

 

 

 

 

 

 

20,000

 

Discount and debt issuance costs

 

 

 

 

 

 

(221

)

     Total debt

 

 

 

 

 

$

19,779

 
v3.23.2
Leases (Tables)
 12 Months Ended
May 31, 2023
Leases [Abstract]  
Summary of Components of Net Lease Cost

The following table is a summary of the components of net lease cost for the period ended May 31 (in millions):

 

 

 

2023

 

 

2022

 

 

Operating lease cost

 

$

3,300

 

 

$

3,100

 

 

Finance lease cost:

 

 

 

 

 

 

 

     Amortization of right-of-use assets

 

 

36

 

 

 

26

 

 

     Interest on lease liabilities

 

 

18

 

 

 

16

 

 

Total finance lease cost

 

 

54

 

 

 

42

 

 

Short-term lease cost

 

 

531

 

 

 

556

 

 

Variable lease cost

 

 

1,435

 

 

 

1,368

 

 

Net lease cost

 

$

5,320

 

 

$

5,066

 

 
Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

 

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

     Operating cash flows paid for operating leases

 

$

3,207

 

 

$

2,981

 

     Operating cash flows paid for interest portion of finance leases

 

 

15

 

 

 

15

 

     Financing cash flows paid for principal portion of finance leases

 

 

94

 

 

 

99

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

3,317

 

 

$

3,489

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

414

 

 

$

56

 
Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

 

 

 

2023

 

 

2022

 

Operating leases:

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

$

17,347

 

 

$

16,613

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

 

2,390

 

 

 

2,443

 

Operating lease liabilities

 

 

15,363

 

 

 

14,487

 

    Total operating lease liabilities

 

$

17,753

 

 

$

16,930

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

Net property and equipment

 

$

821

 

 

$

455

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

75

 

 

 

32

 

Long-term debt, less current portion

 

 

725

 

 

 

436

 

    Total finance lease liabilities

 

$

800

 

 

$

468

 

 

 

 

 

 

 

 

Weighted-average remaining lease term

 

 

 

 

 

 

Operating leases

 

 

9.5

 

 

 

9.8

 

Finance leases

 

 

27.5

 

 

 

30.8

 

 

 

 

 

 

 

 

Weighted-average discount rate

 

 

 

 

 

 

Operating leases

 

 

3.42

%

 

 

2.85

%

Finance leases

 

 

4.22

%

 

 

3.45

%

 
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 at May 31, 2023 is as follows (in millions):

 

 

 

Aircraft
and Related
Equipment

 

 

Facilities
and Other

 

 

Total
Operating
Leases

 

 

Finance Leases

 

 

Total Leases

 

2024

 

$

103

 

 

$

2,790

 

 

$

2,893

 

 

$

104

 

 

$

2,997

 

2025

 

 

84

 

 

 

2,708

 

 

 

2,792

 

 

 

52

 

 

 

2,844

 

2026

 

 

82

 

 

 

2,419

 

 

 

2,501

 

 

 

46

 

 

 

2,547

 

2027

 

 

81

 

 

 

2,137

 

 

 

2,218

 

 

 

37

 

 

 

2,255

 

2028

 

 

81

 

 

 

1,836

 

 

 

1,917

 

 

 

37

 

 

 

1,954

 

Thereafter

 

 

90

 

 

 

8,411

 

 

 

8,501

 

 

 

1,207

 

 

 

9,708

 

Total lease payments

 

 

521

 

 

 

20,301

 

 

 

20,822

 

 

 

1,483

 

 

 

22,305

 

Less imputed interest

 

 

(35

)

 

 

(3,034

)

 

 

(3,069

)

 

 

(683

)

 

 

(3,752

)

Present value of lease liability

 

$

486

 

 

$

17,267

 

 

$

17,753

 

 

$

800

 

 

$

18,553

 
v3.23.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
May 31, 2023
Accumulated Other Comprehensive Income Loss Tables [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The following table provides changes in AOCI, net of tax, reported in the consolidated financial statements for the years ended May 31 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

2023

 

 

2022

 

 

2021

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,148

)

 

$

(785

)

 

$

(1,207

)

Translation adjustments

 

 

(214

)

 

 

(363

)

 

 

422

 

Balance at end of period

 

 

(1,362

)

 

 

(1,148

)

 

 

(785

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

45

 

 

 

53

 

 

 

60

 

Reclassifications from AOCI

 

 

(10

)

 

 

(8

)

 

 

(7

)

Balance at end of period

 

 

35

 

 

 

45

 

 

 

53

 

Accumulated other comprehensive loss at end of period

 

$

(1,327

)

 

$

(1,103

)

 

$

(732

)

 
Reclassification Out of Accumulated Other Comprehensive Income (Loss)

The following table presents details of the reclassifications from AOCI for the years ended May 31 (in millions; amounts in parentheses indicate debits to earnings):

 

 

Amount Reclassified from
AOCI

 

 

Affected Line Item in the
Income Statement

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amortization of retirement plans prior service
   credits and other, before tax

 

$

12

 

 

$

10

 

 

$

10

 

 

Other retirement plans income (expense)

Income tax benefit

 

 

(2

)

 

 

(2

)

 

 

(3

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

10

 

 

$

8

 

 

$

7

 

 

Net income
v3.23.2
Stock-Based Compensation (Tables)
 12 Months Ended
May 31, 2023
Stock Based Compensation Tables [Abstract]  
Stock-based compensation expense

Our total stock-based compensation expense for the years ended May 31 was as follows (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

Stock-based compensation expense

 

$

182

 

 

$

190

 

 

$

200

 
Schedule of Stock Based Compensation Key Assumptions for Valuation The following table includes the weighted-average Black-Scholes value per share of our stock option grants, the intrinsic value of options exercised (in millions), and the key weighted-average assumptions used in the valuation calculations for options granted during the years ended May 31, followed by a discussion of our methodology for developing each of the assumptions used in the valuation model:

 

 

2023

 

 

2022

 

 

2021

 

Weighted-average Black-Scholes value per share

 

$

63.44

 

 

$

80.21

 

 

$

44.11

 

Intrinsic value of options exercised

 

$

160

 

 

$

150

 

 

$

593

 

Black-Scholes assumptions:

 

 

 

 

 

 

 

 

 

Expected lives

 

6.4 years

 

 

6.4 years

 

 

6.4 years

 

Expected volatility

 

 

34

%

 

 

32

%

 

 

30

%

Risk-free interest rate

 

 

1.68

%

 

 

0.65

%

 

 

1.32

%

Dividend yield

 

 

1.694

%

 

 

0.983

%

 

 

1.710

%
Schedule of Stock Option Activity

The following table summarizes information regarding stock option activity for the year ended May 31, 2023:

 

 

Stock Options

 

 

 

Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term

 

 

Aggregate
Intrinsic Value
(in millions)(1)

 

Outstanding at June 1, 2022

 

 

15,328,425

 

 

$

190.01

 

 

 

 

 

 

 

Granted

 

 

2,404,617

 

 

$

215.75

 

 

 

 

 

 

 

Exercised

 

 

(1,752,518

)

 

$

130.05

 

 

 

 

 

 

 

Forfeited

 

 

(789,335

)

 

$

210.79

 

 

 

 

 

 

 

Outstanding at May 31, 2023

 

 

15,191,189

 

 

$

199.89

 

 

 

6.1

 

 

$

520

 

Exercisable

 

 

9,585,480

 

 

$

195.96

 

 

 

4.9

 

 

$

350

 

Expected to vest

 

 

5,131,059

 

 

$

206.64

 

 

 

8.1

 

 

$

156

 

Available for future grants

 

 

14,062,311

 

 

 

 

 

 

 

 

 

 
(1)
Only presented for options with market value at May 31, 2023 in excess of the exercise price of the option.
Schedule of Vested and Unvested Restricted Stock

The following table summarizes information regarding vested and unvested restricted stock for the year ended May 31, 2023:

 

 

Restricted Stock

 

 

 

Shares

 

 

Weighted-
Average
Grant Date
Fair Value

 

Unvested at June 1, 2022

 

 

432,481

 

 

$

192.30

 

Granted

 

 

160,286

 

 

$

208.57

 

Vested

 

 

(204,356

)

 

$

190.33

 

Forfeited

 

 

(8,477

)

 

$

205.10

 

Unvested at May 31, 2023

 

 

379,934

 

 

$

199.91

 
Schedule of Stock Option Vesting

Stock option vesting during the years ended May 31 was as follows:

 

 

Stock Options

 

 

 

Vested during
the year

 

 

Fair value
(in millions)

 

2023

 

 

2,711,215

 

 

$

137

 

2022

 

 

3,005,727

 

 

$

138

 

2021

 

 

2,492,039

 

 

$

115

 
v3.23.2
Computation of Earnings Per Share (Tables)
 12 Months Ended
May 31, 2023
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 years ended May 31 was as follows (in millions, except per share amounts):

 

 

2023

 

 

2022

 

 

2021

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

3,966

 

 

$

3,819

 

 

$

5,220

 

Weighted-average common shares

 

 

254

 

 

 

263

 

 

 

264

 

Basic earnings per common share

 

$

15.60

 

 

$

14.54

 

 

$

19.79

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

3,966

 

 

$

3,819

 

 

$

5,221

 

Weighted-average common shares

 

 

254

 

 

 

263

 

 

 

264

 

Dilutive effect of share-based awards

 

 

2

 

 

 

3

 

 

 

4

 

Weighted-average diluted shares

 

 

256

 

 

 

266

 

 

 

268

 

Diluted earnings per common share

 

$

15.48

 

 

$

14.33

 

 

$

19.45

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive options excluded from diluted earnings per common share

 

 

7.4

 

 

 

4.0

 

 

 

3.5

 

 

(1)
Net earnings available to participating securities were immaterial in all periods presented.
v3.23.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes

The components of the provision for income taxes for the years ended May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Current provision

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

Federal

 

$

579

 

 

$

311

 

 

$

199

 

State and local

 

 

157

 

 

 

120

 

 

 

158

 

Foreign

 

 

209

 

 

 

317

 

 

 

284

 

 

 

 

945

 

 

 

748

 

 

 

641

 

Deferred provision

 

 

 

 

 

 

 

 

 

Domestic:

 

 

 

 

 

 

 

 

 

Federal

 

 

369

 

 

 

267

 

 

 

667

 

State and local

 

 

37

 

 

 

21

 

 

 

70

 

Foreign

 

 

40

 

 

 

34

 

 

 

65

 

 

 

 

446

 

 

 

322

 

 

 

802

 

 

 

$

1,391

 

 

$

1,070

 

 

$

1,443

 
Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Income Taxes

A reconciliation of total income tax expense and the amount computed by applying the statutory federal income tax to income before income taxes for the years ended May 31 is as follows (dollars in millions):

 

 

2023

 

 

2022

 

 

2021

 

Taxes computed at federal statutory rate

 

$

1,126

 

 

$

1,028

 

 

$

1,401

 

(Decreases) increases in income tax from:

 

 

 

 

 

 

 

 

 

U.S. and foreign return-to-provision adjustments

 

 

(44

)

 

 

(142

)

 

 

—

 

State and local income taxes, net of federal benefit

 

152

 

 

 

116

 

 

 

179

 

Foreign operations

 

 

96

 

 

 

115

 

 

 

138

 

Non-deductible expenses

 

 

40

 

 

 

48

 

 

 

53

 

Uncertain tax positions

 

 

60

 

 

 

(18

)

 

 

65

 

Benefits from share-based payments

 

 

(18

)

 

 

(13

)

 

 

(69

)

Valuation allowance

 

 

59

 

 

 

33

 

 

 

14

 

Foreign tax rate enactments

 

 

3

 

 

 

(30

)

 

 

(61

)

Benefit from U.S. tax loss carryback to prior years

 

 

—

 

 

 

—

 

 

 

(279

)

Goodwill impairment charges

 

 

8

 

 

 

—

 

 

 

—

 

Other, net

 

 

(91

)

 

 

(67

)

 

 

2

 

Provision for income taxes

 

$

1,391

 

 

$

1,070

 

 

$

1,443

 

Effective Tax Rate

 

 

25.9

%

 

 

21.9

%

 

 

21.6

%
Schedule of Significant Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities as of May 31 were as follows (in millions):

 

 

 

2023

 

 

2022

 

 

 

Deferred Tax
Assets

 

 

Deferred Tax
Liabilities

 

 

Deferred Tax
Assets

 

 

Deferred Tax
Liabilities

 

Property, equipment, leases, and intangibles

 

$

4,608

 

 

$

10,965

 

 

$

4,464

 

 

$

10,608

 

Employee benefits

 

 

876

 

 

 

—

 

 

 

1,203

 

 

 

—

 

Self-insurance accruals

 

 

1,085

 

 

 

—

 

 

 

931

 

 

 

—

 

Other

 

 

454

 

 

 

62

 

 

 

524

 

 

 

66

 

Net operating loss/credit carryforwards

 

 

1,149

 

 

 

—

 

 

 

1,079

 

 

 

—

 

Valuation allowances

 

 

(471

)

 

 

—

 

 

 

(413

)

 

 

—

 

 

 

$

7,701

 

 

$

11,027

 

 

$

7,788

 

 

$

10,674

 
Schedule of Net Deferred Tax Liabilities

The net deferred tax liabilities as of May 31 have been classified in the balance sheets as follows (in millions):

 

 

2023

 

 

2022

 

Noncurrent deferred tax assets(1)

 

$

1,163

 

 

$

1,207

 

Noncurrent deferred tax liabilities

 

 

(4,489

)

 

 

(4,093

)

 

 

$

(3,326

)

 

$

(2,886

)

 

(1)
Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying consolidated balance sheets.
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended May 31 is as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Balance at beginning of year

 

$

169

 

 

$

192

 

 

$

129

 

Increases for tax positions taken in the current year

 

 

3

 

 

 

14

 

 

 

3

 

Increases for tax positions taken in prior years

 

 

68

 

 

 

8

 

 

 

69

 

Decreases for tax positions taken in prior years

 

 

(7

)

 

 

(15

)

 

 

(6

)

Settlements

 

 

(15

)

 

 

(32

)

 

 

(6

)

Changes due to currency translation

 

 

(6

)

 

 

2

 

 

 

3

 

Balance at end of year

 

$

212

 

 

$

169

 

 

$

192

 
v3.23.2
Retirement Plans (Tables)
 12 Months Ended
May 31, 2023
Retirement Plan Tables [Abstract]  
Schedule of Retirement Plan Costs

A summary of our retirement plan costs over the past three years is as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Defined benefit pension plans

 

$

236

 

 

$

(2

)

 

$

88

 

Defined contribution plans

 

 

955

 

 

 

824

 

 

 

685

 

Postretirement healthcare plans

 

 

92

 

 

 

89

 

 

 

83

 

Retirement plans MTM (gain) loss

 

 

(650

)

 

 

1,578

 

 

 

(1,176

)

 

 

$

633

 

 

$

2,489

 

 

$

(320

)

 

The components of the MTM adjustments are as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Actual versus expected return on assets

 

$

2,492

 

 

$

5,109

 

 

$

(1,712

)

Discount rate change

 

 

(3,395

)

 

 

(4,486

)

 

 

(397

)

Demographic experience:

 

 

 

 

 

 

 

 

 

   Current year actuarial loss

 

 

142

 

 

 

504

 

 

 

302

 

   Change in future assumptions

 

 

110

 

 

 

314

 

 

 

685

 

Termination of TNT Express Netherlands pension plan

 

 

—

 

 

 

224

 

 

 

—

 

Pension plan amendments, including curtailment gains

 

 

1

 

 

 

(87

)

 

 

(54

)

Total MTM (gain) loss

 

$

(650

)

 

$

1,578

 

 

$

(1,176

)
Schedule of Weighted-Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of Plans

Weighted-average actuarial assumptions used to determine the benefit obligations and net periodic benefit cost of our plans are as follows:

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Discount rate used to determine benefit
   obligation

 

 

5.20

%

 

 

4.25

%

 

 

3.23

%

 

 

4.21

%

 

 

3.09

%

 

 

1.83

%

 

 

5.37

%

 

 

4.35

%

 

 

2.81

%

Discount rate used to determine net periodic
   benefit cost

 

 

4.25

 

 

 

3.23

 

 

 

3.14

 

 

 

3.09

 

 

 

1.83

 

 

 

1.79

 

 

 

4.35

 

 

 

2.81

 

 

 

2.95

 

Rate of increase in future compensation
   levels used to determine benefit obligation

 

 

5.13

 

 

 

5.11

 

 

 

5.06

 

 

 

3.04

 

 

 

2.89

 

 

 

2.83

 

 

 

—

 

 

 

—

 

 

 

—

 

Rate of increase in future compensation
   levels used to determine net periodic
   benefit cost

 

 

5.11

 

 

 

5.06

 

 

 

5.17

 

 

 

2.89

 

 

 

2.83

 

 

 

2.19

 

 

 

—

 

 

 

—

 

 

 

—

 

Expected long-term rate of return on assets

 

 

6.50

 

 

 

6.50

 

 

 

6.75

 

 

 

2.26

 

 

 

2.39

 

 

 

2.71

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine
   benefit obligation

 

 

4.23

 

 

 

4.00

 

 

 

4.00

 

 

 

2.40

 

 

 

3.70

 

 

 

2.50

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest crediting rate used to determine net
   periodic benefit cost

 

 

4.00

 

 

 

4.00

 

 

 

4.00

 

 

 

3.70

 

 

 

2.50

 

 

 

2.00

 

 

 

—

 

 

 

—

 

 

 

—

 
Schedule of Plan Assets at Measurement Date

The fair values of investments by level and asset category and the weighted-average asset allocations for our U.S. Pension Plans and our most significant international pension plans at the measurement date are presented in the following table (in millions):

 

 

Plan Assets at Measurement Date

 

 

 

2023

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

815

 

 

 

3

%

 

0 - 5%

 

$

22

 

 

$

793

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

2,928

 

 

 

12

 

 

 

 

 

1,268

 

 

 

 

 

 

 

International equities(2)

 

 

2,821

 

 

 

11

 

 

 

 

 

1,912

 

 

 

 

 

 

 

Global equities(2)

 

 

1,192

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

768

 

 

 

3

 

 

 

 

 

764

 

 

 

4

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,403

 

 

 

26

 

 

 

 

 

 

 

 

6,403

 

 

 

 

Government(2)

 

 

4,334

 

 

 

17

 

 

 

 

 

 

 

 

2,497

 

 

 

 

Mortgage-backed and other(2)

 

 

1,386

 

 

 

6

 

 

 

 

 

 

 

 

527

 

 

 

 

Alternative investments(2)

 

 

4,196

 

 

 

17

 

 

0 - 15

 

 

 

 

 

 

 

$

937

 

Other

 

 

(17

)

 

 

—

 

 

 

 

 

(33

)

 

 

16

 

 

 

 

Total U.S. plan assets

 

$

24,826

 

 

 

100

%

 

 

 

$

3,933

 

 

$

10,240

 

 

$

937

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7

 

 

 

2

%

 

 

 

$

7

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

57

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

178

 

 

53

 

 

 

 

 

159

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

95

 

 

28

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

337

 

 

 

100

%

 

 

 

$

166

 

 

$

—

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.

 

 

Plan Assets at Measurement Date

 

 

 

2022

 

Asset Class (U.S. Plans)

 

Fair Value

 

 

Actual %

 

 

Target
Range
%(1)

 

Quoted Prices in
Active Markets
Level 1

 

 

Other Observable
Inputs
Level 2

 

 

Unobservable
Inputs
Level 3

 

Cash and cash equivalents

 

$

1,164

 

 

 

4

%

 

0 - 5%

 

$

29

 

 

$

1,135

 

 

 

 

Equities

 

 

 

 

 

 

 

30 - 50

 

 

 

 

 

 

 

 

 

U.S. large cap equity(2)

 

 

3,368

 

 

 

13

 

 

 

 

 

1,235

 

 

 

 

 

 

 

International equities(2)

 

 

3,445

 

 

 

13

 

 

 

 

 

2,551

 

 

 

 

 

 

 

Global equities(2)

 

 

1,245

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

U.S. SMID cap equity

 

 

809

 

 

 

3

 

 

 

 

 

804

 

 

 

5

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

40 - 60

 

 

 

 

 

 

 

 

 

Corporate

 

 

6,755

 

 

 

26

 

 

 

 

 

 

 

 

6,755

 

 

 

 

Government(2)

 

 

4,401

 

 

 

17

 

 

 

 

 

 

 

 

2,749

 

 

 

 

Mortgage-backed and other(2)

 

 

1,251

 

 

 

5

 

 

 

 

 

 

 

 

381

 

 

 

 

Alternative investments(2)

 

 

3,554

 

 

 

14

 

 

0 - 15

 

 

 

 

 

 

 

$

811

 

Other

 

 

(22

)

 

 

—

 

 

 

 

 

(24

)

 

 

2

 

 

 

 

Total U.S. plan assets

 

$

25,970

 

 

 

100

%

 

 

 

$

4,595

 

 

$

11,027

 

 

$

811

 

Asset Class (International Plans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4

 

 

 

1

%

 

 

 

$

4

 

 

 

 

 

 

 

Equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global equities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate(2)

 

 

62

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

Government(2)

 

 

261

 

 

60

 

 

 

 

 

199

 

 

 

 

 

 

 

Mortgage-backed and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other(2)

 

 

107

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

Total international plan assets

 

$

434

 

 

 

100

%

 

 

 

$

203

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Target ranges have not been provided for international plan assets as they are managed at an individual country level.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
Schedule of Change in Fair Value of Level 3 Assets

The change in fair value of Level 3 assets that use significant unobservable inputs is shown in the table below (in millions):

 

 

U.S. Pension Plans

 

 

 

2023

 

 

2022

 

Balance at beginning of year

 

$

811

 

 

$

537

 

Actual return on plan assets:

 

 

 

 

 

 

Assets held during current year

 

 

66

 

 

 

192

 

Assets sold during the year

 

 

28

 

 

 

29

 

Purchases, sales, and settlements

 

 

32

 

 

 

53

 

Balance at end of year

 

$

937

 

 

$

811

 
Schedule of Changes in the Pension and Postretirement Healthcare Plans' Benefit Obligation and Fair Value of Assets and Funded Status The following tables provide a reconciliation of the changes in the pension and postretirement healthcare plans’ benefit obligations and fair value of assets over the two-year period ended May 31, 2023 and a statement of the funded status as of May 31, 2023 and 2022

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Accumulated Benefit Obligation (“ABO”)

 

$

25,825

 

 

$

27,916

 

 

$

848

 

 

$

946

 

 

 

 

 

 

 

Changes in PBO and Accumulated Postretirement
   Benefit Obligation (“APBO”)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PBO/APBO at the beginning of year

 

$

28,702

 

 

$

31,423

 

 

$

1,096

 

 

$

2,611

 

 

$

1,286

 

 

$

1,456

 

Service cost

 

 

651

 

 

 

835

 

 

 

44

 

 

 

56

 

 

 

37

 

 

 

48

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

34

 

 

 

32

 

 

 

55

 

 

 

41

 

Actuarial (gain) loss

 

 

(2,882

)

 

 

(3,356

)

 

 

(121

)

 

 

(19

)

 

 

(138

)

 

 

(192

)

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,315

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

(40

)

 

 

(8

)

 

 

(233

)

 

 

36

 

 

 

46

 

PBO/APBO at the end of year

 

$

26,426

 

 

$

28,702

 

 

$

990

 

 

$

1,096

 

 

$

1,169

 

 

$

1,286

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at the beginning of year

 

$

25,970

 

 

$

29,785

 

 

$

663

 

 

$

2,133

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

(707

)

 

 

(3,168

)

 

 

(83

)

 

 

(4

)

 

 

—

 

 

 

—

 

Company contributions

 

 

826

 

 

 

533

 

 

 

55

 

 

 

135

 

 

 

71

 

 

 

68

 

Benefits paid

 

 

(1,263

)

 

 

(1,180

)

 

 

(35

)

 

 

(36

)

 

 

(107

)

 

 

(113

)

Settlements

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(1,395

)

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(170

)

 

 

36

 

 

 

45

 

Fair value of plan assets at the end of year

 

$

24,826

 

 

$

25,970

 

 

$

579

 

 

$

663

 

 

$

—

 

 

$

—

 

Funded Status of the Plans

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

Amount Recognized in the Balance Sheet at May 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

—

 

 

$

—

 

 

$

88

 

 

$

126

 

 

$

—

 

 

$

—

 

Current pension, postretirement healthcare, and
   other benefit obligations

 

 

(39

)

 

 

(20

)

 

 

(23

)

 

 

(19

)

 

 

(84

)

 

 

(95

)

Noncurrent pension, postretirement healthcare,
   and other benefit obligations

 

 

(1,561

)

 

 

(2,712

)

 

 

(476

)

 

 

(540

)

 

 

(1,085

)

 

 

(1,191

)

Net amount recognized

 

$

(1,600

)

 

$

(2,732

)

 

$

(411

)

 

$

(433

)

 

$

(1,169

)

 

$

(1,286

)

Amounts Recognized in AOCI and not yet reflected
   in Net Periodic Benefit Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit and other

 

$

(47

)

 

$

(54

)

 

$

4

 

 

$

(3

)

 

$

—

 

 

$

—

 
Schedule of Components of Pension Plans

Our pension plans included the following components at May 31 (in millions):

 

 

PBO

 

 

Fair Value of
Plan Assets

 

 

Funded Status

 

2023

 

 

 

 

 

 

 

 

 

Qualified

 

$

26,269

 

 

$

24,826

 

 

$

(1,443

)

Nonqualified

 

 

157

 

 

 

—

 

 

 

(157

)

International Plans

 

 

990

 

 

 

579

 

 

 

(411

)

Total

 

$

27,416

 

 

$

25,405

 

 

$

(2,011

)

2022

 

 

 

 

 

 

 

 

 

Qualified

 

$

28,524

 

 

$

25,970

 

 

$

(2,554

)

Nonqualified

 

 

178

 

 

 

—

 

 

 

(178

)

International Plans

 

 

1,096

 

 

 

663

 

 

 

(433

)

Total

 

$

29,798

 

 

$

26,633

 

 

$

(3,165

)
Schedule of Fair Value of Plan Assets for Pension Plans with an Obligation in Excess of Plan Assets

The table above provides the PBO, fair value of plan assets, and funded status of our pension plans on an aggregated basis. The following tables present our plans on a disaggregated basis to show those plans (as a group) whose assets did not exceed their liabilities. The fair value of plan assets for pension plans with a PBO or ABO in excess of plan assets at May 31 were as follows (in millions):

 

 

 

PBO Exceeds the Fair Value
of Plan Assets

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

24,826

 

 

$

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

Fair value of plan assets

 

$

223

 

 

$

199

 

PBO

 

 

(722

)

 

 

(758

)

Net funded status

 

$

(499

)

 

$

(559

)

 

 

 

ABO Exceeds the Fair Value
of Plan Assets

 

 

 

2023

 

 

2022

 

U.S. Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(25,825

)

 

$

(27,916

)

Fair value of plan assets

 

 

24,826

 

 

 

25,970

 

PBO

 

 

(26,426

)

 

 

(28,702

)

Net funded status

 

$

(1,600

)

 

$

(2,732

)

International Pension Benefits

 

 

 

 

 

 

ABO(1)

 

$

(562

)

 

$

(604

)

Fair value of plan assets

 

 

201

 

 

 

196

 

PBO

 

 

(700

)

 

 

(754

)

Net funded status

 

$

(499

)

 

$

(558

)
(1)
ABO not used in determination of funded status.
Schedule of Contributions to Qualified Pension Plans

Contributions to our qualified U.S. Pension Plans for the years ended May 31 were as follows (in millions):

 

 

2023

 

 

2022

 

Required

 

$

—

 

 

$

—

 

Voluntary

 

 

800

 

 

 

500

 

 

 

$

800

 

 

$

500

 
Schedule of Net Periodic Benefit (Income) Cost

Net periodic benefit (income) cost for the years ended May 31 were as follows (in millions):

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

651

 

 

$

835

 

 

$

851

 

 

$

44

 

 

$

56

 

 

$

83

 

 

$

37

 

 

$

48

 

 

$

44

 

Interest cost

 

 

1,218

 

 

 

1,020

 

 

 

959

 

 

 

34

 

 

 

32

 

 

 

43

 

 

 

55

 

 

 

41

 

 

 

39

 

Expected return on plan
   assets

 

 

(1,688

)

 

 

(1,910

)

 

 

(1,786

)

 

 

(14

)

 

 

(26

)

 

 

(52

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior
   service credit

 

 

(7

)

 

 

(7

)

 

 

(8

)

 

 

(2

)

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial losses (gains)
   and other

 

 

(487

)

 

 

1,683

 

 

 

(1,288

)

 

 

(25

)

 

 

87

 

 

 

(13

)

 

 

(138

)

 

 

(192

)

 

 

125

 

Net periodic benefit (income) cost

 

$

(313

)

 

$

1,621

 

 

$

(1,272

)

 

$

37

 

 

$

147

 

 

$

59

 

 

$

(46

)

 

$

(103

)

 

$

208

 
Schedule of Expected Future Benefit Payments

Benefit payments, which reflect expected future service, are expected to be paid as follows for the years ending May 31 (in millions):

 

 

U.S. Pension Plans

 

 

International
Pension Plans

 

 

Postretirement
Healthcare Plans

 

2024

 

$

1,392

 

 

$

54

 

 

$

84

 

2025

 

 

1,457

 

 

 

47

 

 

 

92

 

2026

 

 

1,544

 

 

 

50

 

 

 

101

 

2027

 

 

1,621

 

 

 

55

 

 

 

110

 

2028

 

 

1,697

 

 

 

60

 

 

 

117

 

2029-2033

 

 

9,471

 

 

 

395

 

 

 

610

 
v3.23.2
Business Segments and Disaggregated Revenue (Tables)
 12 Months Ended
May 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Schedule of Segment Information

The following table provides a reconciliation of reportable segment revenue, depreciation and amortization, operating income (loss), and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:

 

 

FedEx
Express
  Segment

 

 

FedEx
Ground
  Segment

 

 

FedEx
Freight
  Segment

 

 

FedEx
Services
  Segment

 

 

Corporate, other, and eliminations

 

 

Consolidated
Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

42,743

 

 

$

33,507

 

 

$

9,632

 

 

$

301

 

 

$

3,972

 

 

$

90,155

 

2022

 

 

45,814

 

 

 

33,232

 

 

 

9,532

 

 

 

253

 

 

 

4,681

 

 

 

93,512

 

2021

 

 

42,078

 

 

 

30,496

 

 

 

7,833

 

 

 

32

 

 

 

3,520

 

 

 

83,959

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

2,105

 

 

$

1,020

 

 

$

387

 

 

$

529

 

 

$

135

 

 

$

4,176

 

2022

 

 

2,007

 

 

 

919

 

 

 

406

 

 

 

513

 

 

 

125

 

 

 

3,970

 

2021

 

 

1,946

 

 

 

843

 

 

 

417

 

 

 

462

 

 

 

125

 

 

 

3,793

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023(1)

 

$

1,064

 

 

$

3,140

 

 

$

1,925

 

 

$

—

 

 

$

(1,217

)

 

$

4,912

 

2022(2)

 

 

2,922

 

 

 

2,642

 

 

 

1,663

 

 

 

—

 

 

 

(982

)

 

 

6,245

 

2021(3)

 

 

2,810

 

 

 

3,193

 

 

 

1,005

 

 

 

—

 

 

 

(1,151

)

 

 

5,857

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

47,754

 

 

$

36,815

 

 

$

10,197

 

 

$

7,415

 

 

$

(15,038

)

 

$

87,143

 

2022

 

 

47,604

 

 

 

32,645

 

 

 

8,904

 

 

 

8,389

 

 

 

(11,548

)

 

 

85,994

 

2021

 

 

46,356

 

 

 

29,134

 

 

 

7,371

 

 

 

8,639

 

 

 

(8,723

)

 

 

82,777

 

 

(1)
Includes business optimization costs of $262 million included in “Corporate, other, and eliminations” and business optimization and realignment costs of $11 million and $36 million, respectively, included in the FedEx Express segment. Includes noncash other asset impairment charges of $70 million primarily related to the decision to permanently retire certain aircraft and related engines at FedEx Express and goodwill and other asset impairment charges of $47 million at FedEx Dataworks related to the ShopRunner acquisition. Also includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
(2)
Includes business realignment costs of $278 million included in the FedEx Express segment, as well as a charge of $210 million related to the pre- and post-judgment interest in connection with a separate FedEx Ground legal matter included in “Corporate, other, and eliminations.” Also includes TNT Express integration expenses of $132 million included in “Corporate, other, and eliminations” and the FedEx Express segment.
(3)
Includes TNT Express integration expenses of $210 million included in “Corporate, other, and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
(4)
Segment assets include intercompany receivables.
Schedule of Segment Capital Expenditures

The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):

 

 

 

FedEx
Express
  Segment

 

 

 

FedEx
Ground
  Segment

 

 

FedEx
Freight
  Segment

 

 

FedEx
Services
  Segment

 

 

Other

 

 

Consolidated
Total

 

2023

 

$

3,055

 

 

 

$

1,995

 

 

$

556

 

 

$

431

 

 

$

137

 

 

$

6,174

 

2022

 

 

3,637

 

 

 

 

2,139

 

 

 

319

 

 

 

565

 

 

 

103

 

 

 

6,763

 

2021

 

 

3,503

 

 

 

 

1,446

 

 

 

320

 

 

 

512

 

 

 

103

 

 

 

5,884

 
Schedule of Revenue by Service Type and Geographical Information

The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):

 

 

 

2023

 

 

2022

 

 

2021

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

8,916

 

 

$

9,084

 

 

$

8,116

 

U.S. overnight envelope

 

 

1,980

 

 

 

1,971

 

 

 

1,791

 

U.S. deferred

 

 

5,128

 

 

 

5,330

 

 

 

4,984

 

Total U.S. domestic package revenue

 

 

16,024

 

 

 

16,385

 

 

 

14,891

 

International priority

 

 

10,939

 

 

 

12,130

 

 

 

10,317

 

International economy

 

 

2,911

 

 

 

2,838

 

 

 

2,632

 

Total international export package revenue

 

 

13,850

 

 

 

14,968

 

 

 

12,949

 

International domestic(1)

 

 

4,043

 

 

 

4,340

 

 

 

4,640

 

Total package revenue

 

 

33,917

 

 

 

35,693

 

 

 

32,480

 

Freight:

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,906

 

 

 

3,041

 

 

 

3,325

 

International priority

 

 

3,060

 

 

 

3,840

 

 

 

3,030

 

International economy

 

 

1,510

 

 

 

1,653

 

 

 

1,582

 

International airfreight

 

 

166

 

 

 

177

 

 

 

245

 

Total freight revenue

 

 

7,642

 

 

 

8,711

 

 

 

8,182

 

Other(2)

 

 

1,184

 

 

 

1,410

 

 

 

1,416

 

Total FedEx Express segment

 

 

42,743

 

 

 

45,814

 

 

 

42,078

 

FedEx Ground segment

 

 

33,507

 

 

 

33,232

 

 

 

30,496

 

FedEx Freight segment

 

 

9,632

 

 

 

9,532

 

 

 

7,833

 

FedEx Services segment

 

 

301

 

 

 

253

 

 

 

32

 

Other and eliminations(3)

 

 

3,972

 

 

 

4,681

 

 

 

3,520

 

 

 

$

90,155

 

 

$

93,512

 

 

$

83,959

 

GEOGRAPHICAL INFORMATION(4)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

U.S.

 

$

64,890

 

 

$

64,941

 

 

$

58,792

 

International:

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

23,090

 

 

 

25,564

 

 

 

23,085

 

FedEx Ground segment

 

 

860

 

 

 

857

 

 

 

735

 

FedEx Freight segment

 

 

264

 

 

 

235

 

 

 

190

 

FedEx Services segment

 

 

1

 

 

 

1

 

 

 

1

 

Other

 

 

1,050

 

 

 

1,914

 

 

 

1,156

 

Total international revenue

 

 

25,265

 

 

 

28,571

 

 

 

25,167

 

 

 

$

90,155

 

 

$

93,512

 

 

$

83,959

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

U.S.

 

$

56,449

 

 

$

53,311

 

 

$

49,407

 

International

 

 

12,084

 

 

 

12,318

 

 

 

12,790

 

 

 

$

68,533

 

 

$

65,629

 

 

$

62,197

 

 

(1)
International domestic revenue relates to our intra-country operations.
(2)
Includes the operations of FedEx Cross Border beginning June 1, 2020.
(3)
Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
(4)
International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
v3.23.2
Supplemental Cash Flow Information (Tables)
 12 Months Ended
May 31, 2023
Supplemental Cash Flow Tables [Abstract]  
Supplemental Cash Flow

Cash paid for interest expense and income taxes for the years ended May 31 was as follows (in millions):

 

 

2023

 

 

2022

 

 

2021

 

Cash payments for:

 

 

 

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

694

 

 

$

695

 

 

$

819

 

Income taxes

 

$

1,096

 

 

$

751

 

 

$

1,374

 

Income tax refunds received

 

 

(53

)

 

 

(574

)

 

 

(55

)

Cash tax payments, net

 

$

1,043

 

 

$

177

 

 

$

1,319

 
v3.23.2
Commitments (Tables)
 12 Months Ended
May 31, 2023
Commitments Tables [Abstract]  
Schedule of Purchase Commitments

Annual purchase commitments under various contracts as of May 31, 2023 were as follows (in millions):

 

 

Aircraft and
Aircraft Related

 

 

Other(1)

 

 

Total

 

2024

 

$

1,710

 

 

$

741

 

 

$

2,451

 

2025

 

 

1,560

 

 

 

555

 

 

 

2,115

 

2026

 

 

580

 

 

 

428

 

 

 

1,008

 

2027

 

 

290

 

 

 

178

 

 

 

468

 

2028

 

 

256

 

 

 

93

 

 

 

349

 

Thereafter

 

 

1,656

 

 

 

50

 

 

 

1,706

 

Total

 

$

6,052

 

 

$

2,045

 

 

$

8,097

 
(1)
Primarily information technology and advertising contracts.
Schedule of Aircraft Purchase Commitments The following table is a summary of the aircraft we were committed to purchase as of May 31, 2023, with the year of expected delivery:

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2024

 

 

15

 

 

 

10

 

 

 

14

 

 

 

4

 

 

 

43

 

2025

 

 

12

 

 

 

6

 

 

 

10

 

 

 

2

 

 

 

30

 

2026

 

 

14

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

15

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

41

 

 

 

17

 

 

 

24

 

 

 

6

 

 

 

88

 
v3.23.2
Valuation and Qualifying Accounts (Tables)
 12 Months Ended
May 31, 2023
Valuation And Qualifying Accounts Tables Abstract  
Schedule of Valuation and Qualifying Accounts

FEDEX CORPORATION

VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED MAY 31, 2023, 2022, AND 2021

(IN MILLIONS)

 

 

 

 

 

ADDITIONS

 

 

 

 

 

 

 

DESCRIPTION

 

BALANCE
AT
BEGINNING
OF YEAR

 

 

CHARGED
TO
EXPENSES

 

 

CHARGED
TO
OTHER
ACCOUNTS

 

 

DEDUCTIONS

 

 

BALANCE
AT
END OF
YEAR

 

Accounts Receivable Reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

340

 

 

$

696

 

 

$

—

 

 

$

564

 

(a)

$

472

 

2022

 

 

358

 

 

 

403

 

 

 

—

 

 

 

421

 

(a)

 

340

 

2021

 

 

175

 

 

 

577

 

 

 

—

 

 

 

394

 

(a)

 

358

 

Allowance for Revenue Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

352

 

 

$

—

 

 

$

1,662

 

(b)

$

1,686

 

(c)

$

328

 

2022

 

 

384

 

 

 

—

 

 

 

1,795

 

(b)

 

1,827

 

(c)

 

352

 

2021

 

 

215

 

 

 

—

 

 

 

1,892

 

(b)

 

1,723

 

(c)

 

384

 

Inventory Valuation Allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

$

360

 

 

$

33

 

 

$

—

 

 

$

117

 

 

$

276

 

2022

 

 

349

 

 

 

35

 

 

 

—

 

 

 

24

 

 

 

360

 

2021

 

 

335

 

 

 

38

 

 

 

—

 

 

 

24

 

 

 

349

 
(a)
Uncollectible accounts written off, net of recoveries, and other adjustments.
(b)
Principally charged against revenue.
(c)
Service failures, rebills, and other.
v3.23.2
Description of Business Segments and Summary of Significant Accounting Policies - Additional Information (Details)
$ / shares in Units, € in Millions, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended 29 Months Ended
Apr. 05, 2023
$ / shares
Jan. 31, 2021
Employee
May 31, 2023
USD ($)
AirCraft
$ / shares
May 31, 2023
USD ($)
AirCraft
$ / shares
shares
May 31, 2022
USD ($)
$ / shares
shares
May 31, 2021
USD ($)
May 31, 2023
USD ($)
AirCraft
May 31, 2023
EUR (€)
AirCraft
Oct. 16, 2022
USD ($)
Dec. 16, 2021
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Gross contract assets related to in-transit shipments     $ 686 $ 686 $ 861   $ 686      
Contract assets net of deferred unearned revenue     484 484 623   484      
Contract liabilities related to advance payments from customers     19 $ 19 8   $ 19      
Payment terms of customer contracts       Under the typical payment terms of our customer contracts, the customer pays at periodic intervals (e.g., every 15 days, 30 days, 45 days, etc.) for shipments included on invoices received. It is not customary business practice to extend payment terms past 90 days, and as such, we do not have a practice of including a significant financing component within our revenue contracts with customers.            
Advertising and promotion expenses       $ 435 470 $ 428        
Depreciable life range for majority of aircraft costs       15 to 30 years            
Depreciation expense, excluding gains and losses on sales of property and equipment       $ 4,176 3,970 3,793        
Interest costs capitalized       $ 77 $ 62 $ 68        
Noncash impairment charges     70              
Noncash impairment charges net of tax     $ 54              
Noncash impairment charges net of tax per diluted share | $ / shares     $ 0.21              
Number of Idle Aircraft | AirCraft     11 11     11 11    
Number of months aircraft remained idle       an average of five months            
Denominated debt as a net investment hedge | €               € 151    
Business optimization costs, net of tax       $ 209            
Business optimization costs per diluted share | $ / shares       $ 0.81            
Business optimization costs       $ 273            
Number of shares repurchased | shares       9,200,000 8,900,000          
Treasury stock acquired, average cost per share | $ / shares       $ 163.39 $ 253.85          
Payments for repurchase of common stock       $ 1,500 $ 2,248          
Cash dividend payable amount per share | $ / shares $ 1.26                  
Cash dividend payable, date declared Apr. 05, 2023                  
Cash dividend payable, date of record Jun. 12, 2023                  
Cash dividend payable, date to be paid Jul. 03, 2023                  
Business realignment costs       36 278   $ 430      
Number of employees left or voluntarily leaving | Employee   5,000                
Business realignment costs, net of tax       $ 27 $ 214          
Business realignment costs per diluted share | $ / shares       $ 0.11 $ 0.80          
Business employee severance costs paid       $ 118 $ 225          
2022 Repurchase Program                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Stock repurchase program amount authorized to be repurchased, remaining available amount     $ 2,600 $ 2,600     $ 2,600      
Stock repurchase program amount authorized to be repurchased                   $ 5,000
Accelerated Share Repurchase Agreement                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Repurchase on aggregate common stock                 $ 1,500  
Number of shares repurchased | shares       9,200,000            
Boeing MD-11F aircraft [Member]                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Number of aircraft to be permanently retired from service | AirCraft       12            
Number of aircraft engines to be permanently retired from service | AirCraft       25            
Boeing 757-200 aircraft [Member]                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Number of aircraft to be permanently retired from service | AirCraft       4            
Number of aircraft engines to be permanently retired from service | AirCraft       1            
Airbus A300-600 aircraft [Member]                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Number of aircraft to be permanently retired from service | AirCraft       2            
Number of aircraft engines to be permanently retired from service | AirCraft       8            
Minimum [Member]                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Intangible assets amortization periods       1 year            
Maximum [Member]                    
Organization Consolidation And Presentation Of Financial Statements [Line Items]                    
Intangible assets amortization periods       15 years            
v3.23.2
Description of Business Segments and Summary of Significant Accounting Policies - Schedule of Depreciable Lives and Net Book Value of Our Property and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Property Plant And Equipment [Line Items]    
Net Book Value at May 31, $ 40,698 $ 38,091
Wide-body Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 15 to 30 years  
Net Book Value at May 31, $ 16,973 15,949
Narrow-body and Feeder Aircraft and Related Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 5 to 30 years  
Net Book Value at May 31, $ 2,038 2,163
Package Handling and Ground Support Equipment [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 15 years  
Net Book Value at May 31, $ 7,562 6,447
Information Technology [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 7 years  
Net Book Value at May 31, $ 1,859 1,907
Vehicles And Trailers [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 3 to 15 years  
Net Book Value at May 31, $ 3,996 4,004
Facilities and Other [Member]    
Property Plant And Equipment [Line Items]    
Depreciable lives range 1 to 33 years  
Net Book Value at May 31, $ 8,270 $ 7,621
v3.23.2
Credit Losses - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Credit Loss [Abstract]      
Credit losses $ 696 $ 403 $ 577
Allowance for credit losses $ 472 $ 340  
v3.23.2
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     $ 9,034
Accumulated impairment charges $ (2,078)   (2,042)
Goodwill 6,435 $ 6,544 6,992
Goodwill Roll Forward      
Beginning Goodwill at May 31 6,544 6,992  
Impairment charges (36)    
Other [1] (73) (448)  
Ending Goodwill at May 31 6,435 6,544  
Accumulated impairment charges (2,078)   (2,042)
Corporate, Other and Eliminations [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     1,966
Accumulated impairment charges (1,945)   (1,909)
Goodwill 16 53 57
Goodwill Roll Forward      
Beginning Goodwill at May 31 53 57  
Impairment charges (36)    
Other [1] (1) (4)  
Ending Goodwill at May 31 16 53  
Accumulated impairment charges (1,945)   (1,909)
FedEx Express Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     5,358
Goodwill 4,853 4,925 5,358
Goodwill Roll Forward      
Beginning Goodwill at May 31 4,925 5,358  
Other [1] (72) (433)  
Ending Goodwill at May 31 4,853 4,925  
FedEx Ground Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     943
Goodwill 932 932 943
Goodwill Roll Forward      
Beginning Goodwill at May 31 932 943  
Other [1]   (11)  
Ending Goodwill at May 31 932 932  
FedEx Freight Segment [Member] | Operating Segments [Member]      
Net Goodwill Detail [Abstract]      
Gross Goodwill at May 31     767
Accumulated impairment charges (133)   (133)
Goodwill 634 634 634
Goodwill Roll Forward      
Beginning Goodwill at May 31 634 634  
Ending Goodwill at May 31 634 $ 634  
Accumulated impairment charges $ (133)   $ (133)
[1] Primarily currency translation adjustments and purchase price allocation-related adjustments.
v3.23.2
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
May 31, 2023
May 31, 2023
May 31, 2022
May 31, 2021
Good Will and Intangible Assets [Line Items]        
Goodwill impairment charges   $ 36    
Asset impairment charges   117    
Intangible assets amortization expense   52 $ 52 $ 49
FedEx Dataworks, Inc. [Member]        
Good Will and Intangible Assets [Line Items]        
Goodwill impairment charges $ 36      
Asset impairment charges   $ 47    
Shoprunner Acquisition [Member]        
Good Will and Intangible Assets [Line Items]        
Asset impairment charges $ 11      
v3.23.2
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 646 $ 682
Accumulated Amortization (412) (381)
Net Book Value 234 301
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 583 617
Accumulated Amortization (369) (340)
Net Book Value 214 277
Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 62 64
Accumulated Amortization (42) (40)
Net Book Value 20 24
Trademarks and Other [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1 1
Accumulated Amortization $ (1) $ (1)
v3.23.2
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details)
$ in Millions
May 31, 2023
USD ($)
Finite Lived Intangible Assets Future Amortization Expense Abstract  
2024 $ 47
2025 46
2026 46
2027 44
2028 $ 42
v3.23.2
Selected Current Liabilities - Components of Selected Current Liability Captions (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Accrued Liabilities, Current [Abstract]    
Salaries $ 828 $ 751
Employee benefits, including variable compensation 689 834
Compensated absences 958 946
Accrued salaries and employee benefits 2,475 2,531
Self-insurance accruals 1,730 1,646
Taxes other than income taxes 305 532
Other 2,712 3,010
Accrued expenses $ 4,747 $ 5,188
v3.23.2
Long-term Debt and Other Financing Arrangements - Components of Long-term Debt (Net of Discounts and Debt Issuance Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Debt Instrument [Line Items]    
Total debt $ 19,779  
Finance lease obligations 800 $ 468
Total Debt and Finance Lease Obligations 20,579 20,264
Less current portion 126 82
LONG-TERM DEBT, LESS CURRENT PORTION $ 20,453 $ 20,182
Senior Secured Debt Due 2034 1.875% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 1.875% 1.875%
Maturity 2034 2034
Total debt $ 831 $ 881
Senior Unsecured Debt Due 2026 3.25% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.25% 3.25%
Maturity 2026 2026
Total debt $ 748 $ 747
Senior Unsecured Debt Due 2028 3.40% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.40% 3.40%
Maturity 2028 2028
Total debt $ 497 $ 497
Senior Unsecured Debt Due 2029 4.20% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.20% 4.20%
Maturity 2029 2029
Total debt $ 398 $ 397
Senior Unsecured Debt Due 2030 3.10-4.25% [Member]    
Debt Instrument [Line Items]    
Maturity 2030 2030
Total debt $ 1,737 $ 1,735
Senior Unsecured Debt Due 2030 3.10-4.25% [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.25% 4.25%
Senior Unsecured Debt Due 2030 3.10-4.25% [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.10% 3.10%
Senior Unsecured Debt Due 2031 2.40% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 2.40% 2.40%
Maturity 2031 2031
Total debt $ 991 $ 990
Senior Unsecured Debt Due 2034 4.90% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.90% 4.90%
Maturity 2034 2034
Total debt $ 496 $ 496
Senior Unsecured Debt Due 2035 3.90% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.90% 3.90%
Maturity 2035 2035
Total debt $ 495 $ 495
Senior Unsecured Debt Due 2041 3.25% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.25% 3.25%
Maturity 2041 2041
Total debt $ 740 $ 740
Senior Unsecured Debt Due 2043 3.875-4.10% [Member]    
Debt Instrument [Line Items]    
Maturity 2043 2043
Total debt $ 985 $ 985
Senior Unsecured Debt Due 2043 3.875-4.10% [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.10% 4.10%
Senior Unsecured Debt Due 2043 3.875-4.10% [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 3.875% 3.875%
Senior Unsecured Debt Due 2044 5.10% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 5.10% 5.10%
Maturity 2044 2044
Total debt $ 743 $ 742
Senior Unsecured Debt Due 2045 4.10% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.10% 4.10%
Maturity 2045 2045
Total debt $ 641 $ 641
Senior Unsecured Debt Due 2046 4.55-4.75% [Member]    
Debt Instrument [Line Items]    
Maturity 2046 2046
Total debt $ 2,463 $ 2,462
Senior Unsecured Debt Due 2046 4.55-4.75% [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.75% 4.75%
Senior Unsecured Debt Due 2046 4.55-4.75% [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.55% 4.55%
Senior Unsecured Debt Due 2047 4.40% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.40% 4.40%
Maturity 2047 2047
Total debt $ 736 $ 736
Senior Unsecured Debt Due 2048 4.05% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.05% 4.05%
Maturity 2048 2048
Total debt $ 987 $ 987
Senior Unsecured Debt Due 2049 4.95% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.95% 4.95%
Maturity 2049 2049
Total debt $ 836 $ 836
Senior Unsecured Debt Due 2050 5.25% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 5.25% 5.25%
Maturity 2050 2050
Total debt $ 1,226 $ 1,226
Senior Unsecured Debt Due 2065 4.50% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 4.50% 4.50%
Maturity 2065 2065
Total debt $ 246 $ 246
Senior Unsecured Debt Due 2098 7.60% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 7.60% 7.60%
Maturity 2098 2098
Total debt $ 237 $ 237
Euro Senior Unsecured Debt Due 2026 0.45% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 0.45% 0.45%
Maturity 2026 2026
Total debt $ 537 $ 533
Euro Senior Unsecured Debt Due 2027 1.625% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 1.625% 1.625%
Maturity 2027 2027
Total debt $ 1,341 $ 1,332
Euro Senior Unsecured Debt Due 2029 0.45% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 0.45% 0.45%
Maturity 2029 2029
Total debt $ 641 $ 637
Euro Senior Unsecured Debt Due 2032 1.30% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 1.30% 1.30%
Maturity 2032 2032
Total debt $ 534 $ 530
Euro Senior Unsecured Debt Due 2033 0.95% [Member]    
Debt Instrument [Line Items]    
Interest Rate% 0.95% 0.95%
Maturity 2033 2033
Total debt $ 693 $ 688
Senior Unsecured Debt [Member]    
Debt Instrument [Line Items]    
Total debt $ 18,948 $ 18,915
v3.23.2
Long-term Debt and Other Financing Arrangements - Additional Information (Details)
 12 Months Ended
May 31, 2023
USD ($)
AirCraft
May 31, 2022
USD ($)
Line Of Credit Facility [Line Items]    
Long-term debt weighted-average interest rate 3.50%  
Long term debt, including current maturities and exclusive of finance leases fair value $ 17,500,000,000 $ 18,800,000,000
Debt instrument, face amount $ 20,000,000,000  
Number of Boeing aircraft | AirCraft 19  
Net book value of Boeing aircraft $ 1,700,000,000  
Financial covenant terms ratio 350.00%  
Financial covenant compliance ratio 208.00%  
Five-Year Credit Agreement [Member]    
Line Of Credit Facility [Line Items]    
Line of credit facility maximum borrowing capacity $ 2,000,000,000.0  
Line of credit facility, term 5 years  
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  
Credit Agreements [Member]    
Line Of Credit Facility [Line Items]    
Line of credit outstanding 0  
Commercial paper outstanding 0  
Three Year Credit Agreement [Member]    
Line Of Credit Facility [Line Items]    
Line of credit facility maximum borrowing capacity $ 1,500,000,000  
Line of credit facility, term 3 years  
Line of credit facility, expiration date 2025-03  
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  
v3.23.2
Long-term Debt and Other Financing Arrangements - Scheduled Principal Payments on Long-Term Debt Maturities (Details)
$ in Millions
May 31, 2023
USD ($)
Debt Instruments [Abstract]  
2024 $ 52
2025 52
2026 1,340
2027 1,398
2028 552
Thereafter 16,606
Subtotal 20,000
Discount and debt issuance costs (221)
Total debt $ 19,779
v3.23.2
Leases - Summary of Components of Net Lease Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Leases [Abstract]    
Operating lease cost $ 3,300 $ 3,100
Finance lease cost:    
Amortization of right-of-use assets 36 26
Interest on lease liabilities 18 16
Total finance lease cost 54 42
Short-term lease cost 531 556
Variable lease cost 1,435 1,368
Net lease cost $ 5,320 $ 5,066
v3.23.2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Leases [Abstract]    
Operating cash flows paid for operating leases $ 3,207 $ 2,981
Operating cash flows paid for interest portion of finance leases 15 15
Financing cash flows paid for principal portion of finance leases 94 99
Right-of-use assets obtained in exchange for new operating lease liabilities 3,317 3,489
Right-of-use assets obtained in exchange for new finance lease liabilities $ 414 $ 56
v3.23.2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Operating leases:    
Operating lease right-of-use assets, net $ 17,347 $ 16,613
Current portion of operating lease liabilities 2,390 2,443
Operating lease liabilities 15,363 14,487
Total operating lease liabilities 17,753 16,930
Finance leases:    
Net property and equipment $ 821 $ 455
Finance Lease, Right of Use Asset, Statement of Financial Position [Extensible List] Net Book Value at May 31, Net Book Value at May 31,
Current portion of long-term debt $ 75 $ 32
Finance Lease, Liability, Current Statement of Financial Position [Extensible List] LONG-TERM DEBT, LESS CURRENT PORTION LONG-TERM DEBT, LESS CURRENT PORTION
Long-term debt, less current portion $ 725 $ 436
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] LONG-TERM DEBT, LESS CURRENT PORTION LONG-TERM DEBT, LESS CURRENT PORTION
Total finance lease liabilities $ 800 $ 468
Weighted-average remaining lease term    
Operating leases 9 years 6 months 9 years 9 months 18 days
Finance leases 27 years 6 months 30 years 9 months 18 days
Weighted-average discount rate    
Operating leases 3.42% 2.85%
Finance leases 4.22% 3.45%
v3.23.2
Leases - Additional Information (Details) - USD ($)
$ in Billions
 12 Months Ended
May 31, 2023
May 31, 2022
Lessee Lease Description [Line Items]    
Finance and operating leases expiration term various dates through 2060  
Percentage total aircraft fleet leased 1.00% 2.00%
Additional leases not yet commenced, undiscounted future payments $ 1.8  
Minimum [Member]    
Lessee Lease Description [Line Items]    
Operating lease commencement date 2024  
Maximum [Member]    
Lessee Lease Description [Line Items]    
Operating lease commencement date 2026  
v3.23.2
Leases - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items]    
2024 $ 2,997  
2025 2,844  
2026 2,547  
2027 2,255  
2028 1,954  
Thereafter 9,708  
Total lease payments 22,305  
Less imputed interest (3,752)  
Present value of lease liability 18,553  
Operating Leases    
2024 2,893  
2025 2,792  
2026 2,501  
2027 2,218  
2028 1,917  
Thereafter 8,501  
Total lease payments 20,822  
Less imputed interest (3,069)  
Present value of lease liability 17,753 $ 16,930
Finance Leases    
2024 104  
2025 52  
2026 46  
2027 37  
2028 37  
Thereafter 1,207  
Total lease payments 1,483  
Less imputed interest (683)  
Present value of lease liability 800 $ 468
Aircraft and Related Equipment [Member]    
Operating Leases    
2024 103  
2025 84  
2026 82  
2027 81  
2028 81  
Thereafter 90  
Total lease payments 521  
Less imputed interest (35)  
Present value of lease liability 486  
Facilities and Other [Member]    
Operating Leases    
2024 2,790  
2025 2,708  
2026 2,419  
2027 2,137  
2028 1,836  
Thereafter 8,411  
Total lease payments 20,301  
Less imputed interest (3,034)  
Present value of lease liability $ 17,267  
v3.23.2
Preferred Stock - Additional Information (Details)
May 31, 2023
$ / shares
shares
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract]  
Preferred Stock Shares Authorized 4,000,000
Preferred Stock No Par Value | $ / shares
Preferred Stock Shares Issued 0
v3.23.2
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance $ 24,939 $ 24,168 $ 18,295
Translation adjustments (214) (363) 422
Ending Balance 26,088 24,939 24,168
Foreign Currency Translation Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (1,148) (785) (1,207)
Translation adjustments (214) (363) 422
Ending Balance (1,362) (1,148) (785)
Retirement Plans Adjustments [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance 45 53 60
Reclassifications from AOCI (10) (8) (7)
Ending Balance 35 45 53
Accumulated Other Comprehensive Loss [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Beginning Balance (1,103) (732) (1,147)
Ending Balance $ (1,327) $ (1,103) $ (732)
v3.23.2
Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other retirement plans income (expense) $ 12 $ 10 $ 10
Provision for income taxes (2) (2) (3)
Net income $ 10 $ 8 $ 7
v3.23.2
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]      
Stock-based compensation expense $ 182 $ 190 $ 200
v3.23.2
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share Based Compensation Arrangement Stock Options [Abstract]      
Stock option vesting period range one to four years    
Restricted stock expiration period ratably over four years    
Stock-based compensation, key assumptions of valuation method Black-Scholes    
Maximum term of stock options 10 years    
Restricted stock granted 160,286 115,172 335,004
Restricted stock, weighted-average fair value $ 208.57 $ 276.26 $ 155.19
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Abstract      
Total unrecognized compensation cost, net of estimated forfeitures $ 230    
Stock option remaining weighted average vesting period 2 years    
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant [Abstract]      
Ratio Of Outstanding And Available To Grant Shares To Total Outstanding Common And Equity Compensation Shares And Equity Compensation Shares Available For Grant 11.00%    
v3.23.2
Stock-Based Compensation - Schedule of Stock Based Compensation Key Assumptions for Valuation (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]      
Weighted-average Black-Scholes value per share $ 63.44 $ 80.21 $ 44.11
Intrinsic value of options exercised $ 160 $ 150 $ 593
Expected lives 6 years 4 months 24 days 6 years 4 months 24 days 6 years 4 months 24 days
Expected volatility 34.00% 32.00% 30.00%
Risk-free interest rate 1.68% 0.65% 1.32%
Dividend yield 1.694% 0.983% 1.71%
v3.23.2
Stock-Based Compensation - Schedule of Stock Option Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
May 31, 2023
USD ($)
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward  
Stock Options, Outstanding at June 1, 2022 15,328,425
Stock Options, Granted 2,404,617
Stock Options, Exercised (1,752,518)
Stock Options, Forfeited (789,335)
Stock Options, Outstanding at May 31, 2023 15,191,189
Stock Options, Exercisable 9,585,480
Stock Options, Expected to vest 5,131,059
Stock Options, Available for future grants 14,062,311
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Exercise Price [Abstract]  
Weighted-Average Exercise Price, Outstanding at June 1, 2022 | $ / shares $ 190.01
Weighted-Average Exercise Price, Granted | $ / shares 215.75
Weighted-Average Exercise Price, Exercised | $ / shares 130.05
Weighted-Average Exercise Price, Forfeited | $ / shares 210.79
Weighted-Average Exercise Price, Outstanding at May 31, 2023 | $ / shares 199.89
Weighted-Average Exercise Price, Exercisable | $ / shares 195.96
Weighted-Average Exercise Price, Expected to vest | $ / shares $ 206.64
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Remaining Contractual Term (in years) [Abstract]  
Weighted-Average Remaining Contractual Term, Outstanding at May 31, 2023 6 years 1 month 6 days
Weighted-Average Remaining Contractual Term, Exercisable 4 years 10 months 24 days
Weighted-Average Remaining Contractual Term, Expected to vest 8 years 1 month 6 days
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract  
Aggregate Intrinsic Value, Outstanding at May 31, 2023 | $ $ 520 [1]
Aggregate Intrinsic Value, Exercisable | $ 350 [1]
Aggregate Intrinsic Value, Expected to vest | $ $ 156 [1]
[1] Only presented for options with market value at May 31, 2023 in excess of the exercise price of the option.
v3.23.2
Stock-Based Compensation - Schedule of Vested and Unvested Restricted Stock (Details) - $ / shares
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward      
Restricted Stock, Unvested at June 1, 2022 432,481    
Restricted Stock, Granted 160,286 115,172 335,004
Restricted Stock, Vested (204,356)    
Restricted Stock, Forfeited (8,477)    
Restricted Stock, Unvested at May 31, 2023 379,934 432,481  
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value Roll Forward      
Weighted-Average Grant Date Fair Value, Unvested at June 1, 2022 $ 192.30    
Weighted-Average Grant Date Fair Value, Granted 208.57 $ 276.26 $ 155.19
Weighted-Average Grant Date Fair Value, Vested 190.33    
Weighted-Average Grant Date Fair Value, Forfeited 205.10    
Weighted-Average Grant Date Fair Value, Unvested at May 31, 2023 $ 199.91 $ 192.30  
v3.23.2
Stock-Based Compensation - Schedule of Stock Option Vesting (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures Abstract      
Vested during the year 2,711,215 3,005,727 2,492,039
Fair value $ 137 $ 138 $ 115
v3.23.2
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Basic earnings per common share:      
Net earnings allocable to common shares [1] $ 3,966 $ 3,819 $ 5,220
Weighted-average common shares 254.0 263.0 264.0
Basic earnings per common share $ 15.60 $ 14.54 $ 19.79
Diluted earnings per common share:      
Net earnings allocable to common shares [1] $ 3,966 $ 3,819 $ 5,221
Weighted-average common shares 254.0 263.0 264.0
Dilutive effect of share-based awards 2.0 3.0 4.0
Weighted-average diluted shares 256.0 266.0 268.0
Diluted earnings per common share $ 15.48 $ 14.33 $ 19.45
Anti-dilutive options excluded from diluted earnings per common share 7.4 4.0 3.5
[1] Net earnings available to participating securities were immaterial in all periods presented.
v3.23.2
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Current provision      
Federal $ 579 $ 311 $ 199
State and local 157 120 158
Foreign 209 317 284
Current Provision, Total 945 748 641
Deferred provision      
Federal 369 267 667
State and local 37 21 70
Foreign 40 34 65
Deferred Provision, Total 446 322 802
Provision for Income Taxes, Total $ 1,391 $ 1,070 $ 1,443
v3.23.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income Taxes [Line Items]      
Earnings From Foreign Operations $ 600 $ 1,400 $ 1,800
Income tax benefit (1,391) (1,070) (1,443)
Tax provision of a write down and valuation allowance on certain foreign tax credit carryforwards 46    
Revisions of prior year tax benefit from U.S and foreign tax returns 44 142  
Recognition of cumulative benefit from TCJA 223    
Unrecognized Tax Benefits That Would Impact Effective Tax Rate 211 167  
Unrecognized Tax Benefits Accrued Income Tax Penalties And Interest 54 $ 55  
Interest expense associated with uncertain tax positions     20
Foreign Country [Member]      
Income Taxes [Line Items]      
valuation allowance related to foreign net operating losses 37    
valuation allowance for foreign tax credit carryforwards 22    
Operating Loss Carryforwards 3,400    
State And Local Jurisdiction [Member]      
Income Taxes [Line Items]      
Operating Loss Carryforwards 1,500    
Domestic Tax Authority [Member]      
Income Taxes [Line Items]      
Operating Loss Carryforwards $ 153    
Netherlands [Member]      
Income Taxes [Line Items]      
Expense (benefit) from the impact on deferred tax assets attributable to a lower enacted tax rate     (66)
CARES Act [Member]      
Income Taxes [Line Items]      
Income tax benefit     $ 279
Statutory Federal Income Tax Rate     35.00%
v3.23.2
Income Taxes - Schedule of Reconciliation of Total Income Tax Expense and Amount Computed by Statutory Federal Income Tax Rate to Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Taxes computed at federal statutory rate $ 1,126 $ 1,028 $ 1,401
U.S. and foreign return-to-provision adjustments (44) (142)  
State and local income taxes, net of federal benefit 152 116 179
Foreign operations 96 115 138
Non-deductible expenses 40 48 53
Uncertain tax positions 60 (18) 65
Benefits from share-based payments (18) (13) (69)
Valuation allowance 59 33 14
Foreign tax rate enactments 3 (30) (61)
Benefit from U.S. tax loss carryback to prior years 0 0 (279)
Goodwill impairment charges 8    
Other, net (91) (67) 2
Provision for Income Taxes, Total $ 1,391 $ 1,070 $ 1,443
Effective Tax Rate 25.90% 21.90% 21.60%
v3.23.2
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Components of Deferred Tax Assets and Liabilities [Abstract]    
Property, equipment, leases and intangibles $ 4,608 $ 4,464
Employee benefits 876 1,203
Self-insurance accruals 1,085 931
Other 454 524
Net operating loss/credit carryforwards 1,149 1,079
Valuation allowances (471) (413)
Deferred Tax Assets, Net 7,701 7,788
Property, equipment, leases and intangibles 10,965 10,608
Other 62 66
Deferred Tax Liabilities $ 11,027 $ 10,674
v3.23.2
Income Taxes - Schedule of Net Deferred Tax Liabilities (Details) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Deferred Tax Liabilities, Net [Abstract]    
Noncurrent deferred tax assets [1] $ 1,163 $ 1,207
Noncurrent deferred tax liabilities (4,489) (4,093)
Net deferred tax liabilities $ (3,326) $ (2,886)
[1] Noncurrent deferred tax assets are included in the line item “Other Assets” in our accompanying consolidated balance sheets.
v3.23.2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of year $ 169 $ 192 $ 129
Increases for tax positions taken in the current year 3 14 3
Increases for tax positions taken in prior years 68 8 69
Decreases for tax positions taken in prior years (7) (15) (6)
Settlements (15) (32) (6)
Changes due to currency translation (6) 2 3
Balance at end of year $ 212 $ 169 $ 192
v3.23.2
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]      
Defined benefit pension plans $ 236 $ (2) $ 88
Defined contribution plans 955 824 685
Postretirement healthcare plans 92 89 83
Retirement plans MTM (gain) loss (650) 1,578 (1,176)
Retirement plans costs $ 633 $ 2,489 $ (320)
v3.23.2
Retirement Plans - Schedule of MTM Adjustments (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Actuarial Gain Loss By Component Pre Tax [Abstract]      
Actual versus expected return on assets $ 2,492 $ 5,109 $ (1,712)
Discount rate change (3,395) (4,486) (397)
Demographic experience:      
Current year actuarial loss 142 504 302
Change in future assumptions 110 314 685
Termination of TNT Express Netherlands pension plan   224  
Pension plan amendments, including curtailment gains 1 (87) (54)
Total MTM (gain) loss $ (650) $ 1,578 $ (1,176)
v3.23.2
Retirement Plans - Additional Information (Details) - USD ($)
 12 Months Ended
May 31, 2024
May 31, 2023
May 31, 2022
May 31, 2021
May 31, 2020
Defined Benefit Plan Disclosure [Line Items]          
Weighted average discount rate percent all pension postretirement plans   5.17% 4.21% 3.11% 3.05%
U.S. pension plan actual rate of return on assets   (2.70%) (10.80%) 12.90%  
401(k)-plan description   In 2020, we announced the closing of our U.S.-based defined benefit pension plans to new non-union employees hired on or after January 1, 2020. We introduced an all-401(k) plan retirement benefit structure for eligible employees with a higher company match of up to 8% across all U.S.-based operating companies in 2022. During calendar 2021, current eligible employees under the PPA pension formula were given a one-time option to continue to be eligible for pension compensation credits under the existing PPA formula and remain in the existing 401(k) plan with its company match of up to 3.5%, or to cease receiving compensation credits under the PPA and move to the new 401(k) plan with the higher match of up to 8%. Changes to the new 401(k) plan structure became effective January 1, 2022. See Note 1 for additional information on expected amendments to our pension plan offered to FedEx Express pilots.      
Actual rate of return on plan assets for the 15-year period   5.70%      
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax   $ 10,000,000 $ 8,000,000 $ 7,000,000  
Defined benefit plan health care cost trend rate assumed for next fiscal year   6.40%      
Defined benefit plan ultimate health care cost trend rate   4.00%      
Defined benefit plan year that rate reaches ultimate trend rate   2045      
Pension Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Expected long-term rate of return on assets   6.50% 6.50% 6.75%  
Pension Plans [Member] | U.S. Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Expected long-term rate of return on assets   6.50% 6.50% 6.75%  
Defined benefit plan contributions by employer   $ 826,000,000 $ 533,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost   7,000,000 7,000,000    
Amounts recognized in other comprehensive income primarily related to amortization of prior service cost, net of tax   $ 6,000,000 $ 6,000,000    
Pension Plans [Member] | U.S. Plans [Member] | Forecast [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer $ 0        
Future Plan Structure [Member] | Maximum [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Company matching contributions to eligible employees   8.00%      
Current Plan Structure [Member] | Maximum [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Company matching contributions to eligible employees   3.50%      
Voluntary Contribution [Member] | U.S. Plans [Member] | Forecast [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined benefit plan contributions by employer $ 800,000,000        
v3.23.2
Retirement Plans - Schedule of Weighted Average Actuarial Assumptions Used to Determine the Benefit Obligations and Net Periodic Benefit Cost of our Plans (Details)
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Pension Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Expected long-term rate of return on assets 6.50% 6.50% 6.75%
Pension Plans [Member] | U.S. Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 5.20% 4.25% 3.23%
Discount rate used to determine net periodic benefit cost 4.25% 3.23% 3.14%
Rate of increase in future compensation levels used to determine benefit obligation 5.13% 5.11% 5.06%
Rate of increase in future compensation levels used to determine net periodic benefit cost 5.11% 5.06% 5.17%
Expected long-term rate of return on assets 6.50% 6.50% 6.75%
Interest crediting rate used to determine benefit obligation 4.23% 4.00% 4.00%
Interest crediting rate used to determine net periodic benefit cost 4.00% 4.00% 4.00%
Pension Plans [Member] | International Pension Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 4.21% 3.09% 1.83%
Discount rate used to determine net periodic benefit cost 3.09% 1.83% 1.79%
Rate of increase in future compensation levels used to determine benefit obligation 3.04% 2.89% 2.83%
Rate of increase in future compensation levels used to determine net periodic benefit cost 2.89% 2.83% 2.19%
Expected long-term rate of return on assets 2.26% 2.39% 2.71%
Interest crediting rate used to determine benefit obligation 2.40% 3.70% 2.50%
Interest crediting rate used to determine net periodic benefit cost 3.70% 2.50% 2.00%
Postretirement Healthcare Plans [Member]      
Defined Benefit Plan Assumptions Used In Calculations [Abstract]      
Discount rate used to determine benefit obligation 5.37% 4.35% 2.81%
Discount rate used to determine net periodic benefit cost 4.35% 2.81% 2.95%
v3.23.2
Retirement Plans - Schedule of Weighted-Average Asset Allocations for U.S Pension Plans and International Pension Plans (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
May 31, 2021
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 25,405 $ 26,633  
U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 24,826 $ 25,970 $ 29,785
Actual % 100.00% 100.00%  
U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 815 $ 1,164  
Actual % 3.00% 4.00%  
U.S. Plans [Member] | Cash And Cash Equivalents [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 0.00% [1] 0.00% [2]  
U.S. Plans [Member] | Cash And Cash Equivalents [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 5.00% [1] 5.00% [2]  
International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 579 $ 663 2,133
Portion of Fair Value of Plan Assets $ 337 $ 434  
Actual % 100.00% 100.00%  
International Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets $ 7 $ 4  
Actual % 2.00% 1.00%  
U.S. Large Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 2,928 [3] $ 3,368 [4]  
Actual % 12.00% [3] 13.00% [4]  
International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 2,821 [3] $ 3,445 [4]  
Actual % 11.00% [3] 13.00% [4]  
Global Equity Funds [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 1,192 [3] $ 1,245 [4]  
Actual % 5.00% [3] 5.00% [4]  
U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 768 $ 809  
Actual % 3.00% 3.00%  
Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 6,403 $ 6,755  
Actual % 26.00% 26.00%  
Corporate Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets $ 57 [3] $ 62 [4]  
Actual % 17.00% [3] 14.00% [4]  
Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 4,334 [3] $ 4,401 [4]  
Actual % 17.00% [3] 17.00% [4]  
Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets $ 178 [3] $ 261 [4]  
Actual % 53.00% [3] 60.00% [4]  
Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 1,386 [3] $ 1,251 [4]  
Actual % 6.00% [3] 5.00% [4]  
Alternative investments [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 4,196 [3] $ 3,554 [4]  
Actual % 17.00% [3] 14.00% [4]  
Alternative investments [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 0.00% [1],[3] 0.00% [2],[4]  
Alternative investments [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 15.00% [1],[3] 15.00% [2],[4]  
Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ (17) $ (22)  
Other [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets $ 95 [3] $ 107 [4]  
Actual % 28.00% [3] 25.00% [4]  
Total Equities [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 30.00% [1] 30.00% [2]  
Total Equities [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 50.00% [1] 50.00% [2]  
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 40.00% [1] 40.00% [2]  
Total Fixed Income Securities [Member] | U.S. Plans [Member] | Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target % 60.00% [1] 60.00% [2]  
Fair Value Inputs Level 1 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 3,933 $ 4,595  
Fair Value Inputs Level 1 [Member] | U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 22 29  
Fair Value Inputs Level 1 [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 166 203  
Fair Value Inputs Level 1 [Member] | International Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 7 4  
Fair Value Inputs Level 1 [Member] | U.S. Large Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 1,268 [3] 1,235 [4]  
Fair Value Inputs Level 1 [Member] | International Equity Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 1,912 [3] 2,551 [4]  
Fair Value Inputs Level 1 [Member] | U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 764 804  
Fair Value Inputs Level 1 [Member] | Government Fixed Income Securities [Member] | International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Portion of Fair Value of Plan Assets 159 [3] 199 [4]  
Fair Value Inputs Level 1 [Member] | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets (33) (24)  
Fair Value Inputs Level 2 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 10,240 11,027  
Fair Value Inputs Level 2 [Member] | U.S. Plans [Member] | Cash And Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 793 1,135  
Fair Value Inputs Level 2 [Member] | U.S. SMID Cap Equity [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 4 5  
Fair Value Inputs Level 2 [Member] | Corporate Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 6,403 6,755  
Fair Value Inputs Level 2 [Member] | Government Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 2,497 [3] 2,749 [4]  
Fair Value Inputs Level 2 [Member] | Mortgage Backed And Other Fixed Income Securities [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 527 [3] 381 [4]  
Fair Value Inputs Level 2 [Member] | Other [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 16 2  
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets 937 811 $ 537
Fair Value Inputs Level 3 [Member] | Alternative investments [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair Value of Plan Assets $ 937 [3] $ 811 [4]  
[1] Target ranges have not been provided for international plan assets as they are managed at an individual country level.
[2] Target ranges have not been provided for international plan assets as they are managed at an individual country level.
[3] Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
[4] Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy but are included in the total.
v3.23.2
Retirement Plans - Schedule of Change in Fair Value of Level 3 Assets (Details) - Pension Plans [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year $ 26,633  
Actual return on plan assets:    
Balance at end of year 25,405 $ 26,633
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 25,970 29,785
Actual return on plan assets:    
Balance at end of year 24,826 25,970
Fair Value Inputs Level 3 [Member] | U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Balance at beginning of year 811 537
Actual return on plan assets:    
Assets held during current year 66 192
Assets sold during the year 28 29
Purchases, sales and settlements 32 53
Balance at end of year $ 937 $ 811
v3.23.2
Retirement Plans - Reconciliation of Changes In Pension And Postretirement Healthcare Plans Benefit Obligations And Fair Value Of Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Pension Plans [Member]      
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year $ 29,798    
PBO/APBO at the end of year 27,416 $ 29,798  
Change in Plan Assets      
Balance at beginning of year 26,633    
Balance at end of year 25,405 26,633  
Funded Status of the Plans (2,011) (3,165)  
Pension Plans [Member] | U.S. Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated Benefit Obligation (“ABO”) 25,825 27,916  
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 28,702 31,423  
Service cost 651 835 $ 851
Interest cost 1,218 1,020 959
Actuarial (gain) loss (2,882) (3,356)  
Benefits paid (1,263) (1,180)  
Other   (40)  
PBO/APBO at the end of year 26,426 28,702 31,423
Change in Plan Assets      
Balance at beginning of year 25,970 29,785  
Actual return on plan assets (707) (3,168)  
Company contributions 826 533  
Benefits paid (1,263) (1,180)  
Balance at end of year 24,826 25,970 29,785
Funded Status of the Plans (1,600) (2,732)  
Amount Recognized in the Balance Sheet at May 31:      
Current pension, postretirement healthcare and other benefit obligations (39) (20)  
Noncurrent pension, postretirement healthcare and other benefit obligations (1,561) (2,712)  
Net amount recognized (1,600) (2,732)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:      
Prior service (credit) cost and other (47) (54)  
Pension Plans [Member] | International Pension Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated Benefit Obligation (“ABO”) 848 946  
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 1,096 2,611  
Service cost 44 56 83
Interest cost 34 32 43
Actuarial (gain) loss (121) (19)  
Benefits paid (35) (36)  
Settlements (20) (1,315)  
Other (8) (233)  
PBO/APBO at the end of year 990 1,096 2,611
Change in Plan Assets      
Balance at beginning of year 663 2,133  
Actual return on plan assets (83) (4)  
Company contributions 55 135  
Benefits paid (35) (36)  
Settlements (20) (1,395)  
Other (1) (170)  
Balance at end of year 579 663 2,133
Funded Status of the Plans (411) (433)  
Amount Recognized in the Balance Sheet at May 31:      
Noncurrent asset 88 126  
Current pension, postretirement healthcare and other benefit obligations (23) (19)  
Noncurrent pension, postretirement healthcare and other benefit obligations (476) (540)  
Net amount recognized (411) (433)  
Amounts Recognized in AOCI and not yet reflected in Net Periodic Benefit Cost:      
Prior service (credit) cost and other 4 (3)  
Postretirement Healthcare Plans [Member]      
Changes in PBO and Accumulated Postretirement Benefit Obligation (“APBO”)      
PBO/APBO at the beginning of year 1,286 1,456  
Service cost 37 48 44
Interest cost 55 41 39
Actuarial (gain) loss (138) (192)  
Benefits paid (107) (113)  
Other 36 46  
PBO/APBO at the end of year 1,169 1,286 $ 1,456
Change in Plan Assets      
Company contributions 71 68  
Benefits paid (107) (113)  
Other 36 45  
Funded Status of the Plans (1,169) (1,286)  
Amount Recognized in the Balance Sheet at May 31:      
Current pension, postretirement healthcare and other benefit obligations (84) (95)  
Noncurrent pension, postretirement healthcare and other benefit obligations (1,085) (1,191)  
Net amount recognized $ (1,169) $ (1,286)  
v3.23.2
Retirement Plans - Schedule of Components of Pension Plans (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
May 31, 2021
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") $ 27,416 $ 29,798  
Fair Value of Plan Assets 25,405 26,633  
Funded Status (2,011) (3,165)  
Qualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 26,269 28,524  
Fair Value of Plan Assets 24,826 25,970  
Funded Status (1,443) (2,554)  
Nonqualified [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 157 178  
Funded Status (157) (178)  
International Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected Benefit Obligation ("PBO") 990 1,096 $ 2,611
Fair Value of Plan Assets 579 663 $ 2,133
Funded Status $ (411) $ (433)  
v3.23.2
Retirement Plans - Schedule of Fair Value of Plan Assets for Pension Plans with a PBO or ABO in Excess of Plan Assets (Details) - Pension Plans [Member] - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
U.S. Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets $ 24,826 $ 25,970
PBO (26,426) (28,702)
Net funded status (1,600) (2,732)
ABO [1] (25,825) (27,916)
Fair value of plan assets 24,826 25,970
PBO (26,426) (28,702)
Net funded status (1,600) (2,732)
International Pension Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 223 199
PBO (722) (758)
Net funded status (499) (559)
ABO [1] (562) (604)
Fair value of plan assets 201 196
PBO (700) (754)
Net funded status $ (499) $ (558)
[1] ABO not used in determination of funded status.
v3.23.2
Retirement Plans - Schedule of Pension Plans Contributions (Details) - Qualified [Member] - U.S. Plans [Member] - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan contributions by employer $ 800 $ 500
Voluntary Contribution [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan contributions by employer $ 800 $ 500
v3.23.2
Retirement Plans - Schedule of Net Periodic Benefit (Income) Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Pension Plans [Member] | U.S. Plans [Member]      
Net Periodic Benefit Cost      
Service cost $ 651 $ 835 $ 851
Interest cost 1,218 1,020 959
Expected return on plan assets (1,688) (1,910) (1,786)
Amortization of prior service credit (7) (7) (8)
Actuarial (gains) losses and other (487) 1,683 (1,288)
Net periodic benefit (income) cost (313) 1,621 (1,272)
Pension Plans [Member] | International Pension Plans [Member]      
Net Periodic Benefit Cost      
Service cost 44 56 83
Interest cost 34 32 43
Expected return on plan assets (14) (26) (52)
Amortization of prior service credit (2) (2) (2)
Actuarial (gains) losses and other (25) 87 (13)
Net periodic benefit (income) cost 37 147 59
Postretirement Healthcare Plans [Member]      
Net Periodic Benefit Cost      
Service cost 37 48 44
Interest cost 55 41 39
Actuarial (gains) losses and other (138) (192) 125
Net periodic benefit (income) cost $ (46) $ (103) $ 208
v3.23.2
Retirement Plans - Schedule of Expected Future Benefit Payments (Details)
$ in Millions
May 31, 2023
USD ($)
Pension Plans [Member] | U.S. Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2024 $ 1,392
2025 1,457
2026 1,544
2027 1,621
2028 1,697
2029-2033 9,471
Pension Plans [Member] | International Pension Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2024 54
2025 47
2026 50
2027 55
2028 60
2029-2033 395
Postretirement Healthcare Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2024 84
2025 92
2026 101
2027 110
2028 117
2029-2033 $ 610
v3.23.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Segment Reporting Information [Line Items]      
Revenues [1] $ 90,155 $ 93,512 $ 83,959
Depreciation and amortization 4,176 3,970 3,793
Operating income (loss) 4,912 [2] 6,245 [3] 5,857 [4]
Segment assets [5] 87,143 85,994 82,777
Capital expenditures 6,174 6,763 5,884
Operating Segments [Member] | FedEx Express Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 42,743 45,814 42,078
Depreciation and amortization 2,105 2,007 1,946
Operating income (loss) 1,064 [2] 2,922 [3] 2,810 [4]
Segment assets [5] 47,754 47,604 46,356
Capital expenditures 3,055 3,637 3,503
Operating Segments [Member] | FedEx Ground Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 33,507 33,232 30,496
Depreciation and amortization 1,020 919 843
Operating income (loss) 3,140 [2] 2,642 [3] 3,193 [4]
Segment assets [5] 36,815 32,645 29,134
Capital expenditures 1,995 2,139 1,446
Operating Segments [Member] | FedEx Freight Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 9,632 9,532 7,833
Depreciation and amortization 387 406 417
Operating income (loss) 1,925 [2] 1,663 [3] 1,005 [4]
Segment assets [5] 10,197 8,904 7,371
Capital expenditures 556 319 320
Operating Segments [Member] | FedEx Services Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues 301 253 32
Depreciation and amortization 529 513 462
Segment assets [5] 7,415 8,389 8,639
Capital expenditures 431 565 512
Corporate, Other and Eliminations [Member]      
Segment Reporting Information [Line Items]      
Revenues 3,972 4,681 3,520
Depreciation and amortization 135 125 125
Operating income (loss) (1,217) [2] (982) [3] (1,151) [4]
Segment assets [5] (15,038) (11,548) (8,723)
Capital expenditures $ 137 $ 103 $ 103
[1] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[2] Includes business optimization costs of $262 million included in “Corporate, other, and eliminations” and business optimization and realignment costs of $11 million and $36 million, respectively, included in the FedEx Express segment. Includes noncash other asset impairment charges of $70 million primarily related to the decision to permanently retire certain aircraft and related engines at FedEx Express and goodwill and other asset impairment charges of $47 million at FedEx Dataworks related to the ShopRunner acquisition. Also includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
[3] Includes business realignment costs of $278 million included in the FedEx Express segment, as well as a charge of $210 million related to the pre- and post-judgment interest in connection with a separate FedEx Ground legal matter included in “Corporate, other, and eliminations.” Also includes TNT Express integration expenses of $132 million included in “Corporate, other, and eliminations” and the FedEx Express segment.
[4] Includes TNT Express integration expenses of $210 million included in “Corporate, other, and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment.
[5] Segment assets include intercompany receivables.
v3.23.2
Business Segments and Disaggregated Revenue - Schedule of Segment Information (Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended 29 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
May 31, 2023
Segment Reporting Information [Line Items]        
Business optimization costs $ 273      
Business realignment costs 36 $ 278   $ 430
Goodwill and other asset impairment charges 117      
Corporate, Other and Eliminations [Member]        
Segment Reporting Information [Line Items]        
Business optimization costs 262      
FedEx Ground Legal Matter 35 210    
FedEx Express Segment [Member]        
Segment Reporting Information [Line Items]        
Business optimization costs 11      
Business realignment costs 36 278 $ 116  
Other asset impairment charges 70      
FedEx Express Segment [Member] | Corporate, Other and Eliminations [Member]        
Segment Reporting Information [Line Items]        
Integration expenses   $ 132 $ 210  
FedEx Dataworks [Member]        
Segment Reporting Information [Line Items]        
Goodwill and other asset impairment charges $ 47      
v3.23.2
Business Segments and Disaggregated Revenue - Schedule of Revenue by Service Type (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [1] $ 90,155 $ 93,512 $ 83,959
Operating Segments [Member] | FedEx Express Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 42,743 45,814 42,078
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight box [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 8,916 9,084 8,116
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. overnight envelope [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 1,980 1,971 1,791
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. deferred [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 5,128 5,330 4,984
Operating Segments [Member] | FedEx Express Segment [Member] | Total U.S. domestic package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 16,024 16,385 14,891
Operating Segments [Member] | FedEx Express Segment [Member] | International priority [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 10,939 12,130 10,317
Operating Segments [Member] | FedEx Express Segment [Member] | International economy [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 2,911 2,838 2,632
Operating Segments [Member] | FedEx Express Segment [Member] | Total international export package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 13,850 14,968 12,949
Operating Segments [Member] | FedEx Express Segment [Member] | International domestic [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [2] 4,043 4,340 4,640
Operating Segments [Member] | FedEx Express Segment [Member] | Total package revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 33,917 35,693 32,480
Operating Segments [Member] | FedEx Express Segment [Member] | U.S. freight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 2,906 3,041 3,325
Operating Segments [Member] | FedEx Express Segment [Member] | International priority freight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 3,060 3,840 3,030
Operating Segments [Member] | FedEx Express Segment [Member] | International Economy Freight      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 1,510 1,653 1,582
Operating Segments [Member] | FedEx Express Segment [Member] | International Airfreight [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 166 177 245
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 7,642 8,711 8,182
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [3] 1,184 1,410 1,416
Operating Segments [Member] | FedEx Ground Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 33,507 33,232 30,496
Operating Segments [Member] | FedEx Freight Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 9,632 9,532 7,833
Operating Segments [Member] | FedEx Services Segment [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues 301 253 32
Corporate, Other and Eliminations [Member]      
Entity Wide Information Revenue From External Customer [Line Items]      
Revenues [4] $ 3,972 $ 4,681 $ 3,520
[1] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
[2] International domestic revenue relates to our intra-country operations.
[3] Includes the operations of FedEx Cross Border beginning June 1, 2020.
[4] Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
v3.23.2
Business Segments and Disaggregated Revenue - Schedule of Geographical Information (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] $ 90,155 $ 93,512 $ 83,959
Assets Noncurrent [1] 68,533 65,629 62,197
U.S. [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 64,890 64,941 58,792
Assets Noncurrent [1] 56,449 53,311 49,407
International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 25,265 28,571 25,167
Assets Noncurrent [1] 12,084 12,318 12,790
FedEx Express Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 23,090 25,564 23,085
FedEx Ground Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 860 857 735
FedEx Freight Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 264 235 190
FedEx Services Segment [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] 1 1 1
Other international revenue [Member] | International [Member]      
Revenues From External Customers And Long Lived Assets [Line Items]      
Revenues [1] $ 1,050 $ 1,914 $ 1,156
[1] International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors. Noncurrent assets include property and equipment, operating lease right-of-use assets, goodwill, and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.
v3.23.2
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Supplemental Cash Flow Information [Abstract]      
Interest (net of capitalized interest) $ 694 $ 695 $ 819
Income taxes 1,096 751 1,374
Income tax refunds received (53) (574) (55)
Cash tax payments, net $ 1,043 $ 177 $ 1,319
v3.23.2
Commitments - Schedule of Purchase Commitments (Details)
$ in Millions
May 31, 2023
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 $ 2,451
2025 2,115
2026 1,008
2027 468
2028 349
Thereafter 1,706
Total 8,097
Aircraft And Related Equipment Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 1,710
2025 1,560
2026 580
2027 290
2028 256
Thereafter 1,656
Total 6,052
Other Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 741 [1]
2025 555 [1]
2026 428 [1]
2027 178 [1]
2028 93 [1]
Thereafter 50 [1]
Total $ 2,045 [1]
[1] Primarily information technology and advertising contracts.
v3.23.2
Commitments - Additional Information (Details)
$ in Billions
May 31, 2023
USD ($)
Other Aircraft Commitments Disclosure [Abstract]  
Deposit and Progress Payments $ 1.0
v3.23.2
Commitments - Schedule of Aircraft Purchase Commitments (Details)
 12 Months Ended
May 31, 2023
AirCraft
Schedule of Aircraft Commitments [Line Items]  
2024 43
2025 30
2026 15
Total 88
Cessna SkyCourier 408 [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 15
2025 12
2026 14
Total 41
ATR 72-600F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 10
2025 6
2026 1
Total 17
B767F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 14
2025 10
Total 24
B777F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 4
2025 2
Total 6
v3.23.2
Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 31, 2022
May 31, 2023
Loss Contingencies [Line Items]    
Loss contingency, damages awarded value $ 1,160  
Loss contingency, punitive damages value $ 365,000  
Loss contingency self-insured retention and insurance deductible   $ 5,000
Maximum [Member]    
Loss Contingencies [Line Items]    
Loss Contingency insurance coverages for reimbursement   $ 75,000
v3.23.2
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Allowance For Doubtful Accounts [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance $ 340 $ 358 $ 175
Charged To Expenses 696 403 577
Deductions [1] 564 421 394
Valuation Allowances And Reserves Ending Balance 472 340 358
Allowance For Revenue Adjustments [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 352 384 215
Charged To Other Accounts [2] 1,662 1,795 1,892
Deductions [3] 1,686 1,827 1,723
Valuation Allowances And Reserves Ending Balance 328 352 384
Inventory Valuation Allowance [Member]      
Movement In Valuation Allowances And Reserves Roll Forward      
Valuation Allowances And Reserves Beginning Balance 360 349 335
Charged To Expenses 33 35 38
Deductions 117 24 24
Valuation Allowances And Reserves Ending Balance $ 276 $ 360 $ 349
[1] Uncollectible accounts written off, net of recoveries, and other adjustments.
[2] Principally charged against revenue.
[3] Service failures, rebills, and other.