FEDEX CORP, 10-Q filed on 12/19/2023
Quarterly Report
v3.23.4
Document and Entity Information - shares
 6 Months Ended
Nov. 30, 2023
Dec. 18, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Period End Date Nov. 30, 2023  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Registrant Name FedEx Corporation  
Entity Current Reporting Status Yes  
Entity File Number 1-15829  
Entity Tax Identification Number 62-1721435  
Entity Address, Address Line One 942 South Shady Grove Road  
Entity Address, City or Town Memphis  
Entity Address, State or Province TN  
Entity Address, Postal Zip Code 38120  
City Area Code 901  
Local Phone Number 818-7500  
Entity Central Index Key 0001048911  
Current Fiscal Year End Date --05-31  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   249,892,548
Entity Incorporation, State or Country Code DE  
Entity Interactive Data Current Yes  
Document Quarterly Report true  
Document Transition Report false  
Common Stock, Par Value $0.10 Per Share [Member]    
Document Information [Line Items]    
Trading Symbol FDX  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Security Exchange Name NYSE  
0.450% Notes Due 2025 [Member]    
Document Information [Line Items]    
Trading Symbol FDX 25A  
Title of 12(b) Security 0.450% Notes due 2025  
Security Exchange Name NYSE  
1.625% Notes Due 2027 [Member]    
Document Information [Line Items]    
Trading Symbol FDX 27  
Title of 12(b) Security 1.625% Notes due 2027  
Security Exchange Name NYSE  
0.450% Notes Due 2029 [Member]    
Document Information [Line Items]    
Trading Symbol FDX 29A  
Title of 12(b) Security 0.450% Notes due 2029  
Security Exchange Name NYSE  
1.300% Notes Due 2031 [Member]    
Document Information [Line Items]    
Trading Symbol FDX 31  
Title of 12(b) Security 1.300% Notes due 2031  
Security Exchange Name NYSE  
0.950% Notes Due 2033 [Member]    
Document Information [Line Items]    
Trading Symbol FDX 33  
Title of 12(b) Security 0.950% Notes due 2033  
Security Exchange Name NYSE  
v3.23.4
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Nov. 30, 2023
May 31, 2023
CURRENT ASSETS    
Cash and cash equivalents $ 6,729 $ 6,856
Receivables, less allowances of $767 and $800 10,665 10,188
Spare parts, supplies, and fuel, less allowances of $286 and $276 632 604
Prepaid expenses and other 1,091 962
Total current assets 19,117 18,610
PROPERTY AND EQUIPMENT, AT COST 83,281 80,624
Less accumulated depreciation and amortization 41,749 39,926
Net property and equipment 41,532 40,698
OTHER LONG-TERM ASSETS    
Operating lease right-of-use assets, net 17,243 17,347
Goodwill 6,468 6,435
Other assets 3,691 4,053
Total other long-term assets 27,402 27,835
ASSETS 88,051 87,143
CURRENT LIABILITIES    
Current portion of long-term debt 334 126
Accrued salaries and employee benefits 2,732 2,475
Accounts payable 4,002 3,848
Operating lease liabilities 2,433 2,390
Accrued expenses 4,747 4,747
Total current liabilities 14,248 13,586
LONG-TERM DEBT, LESS CURRENT PORTION 20,193 20,453
OTHER LONG-TERM LIABILITIES    
Deferred income taxes 4,386 4,489
Pension, postretirement healthcare, and other benefit obligations 2,854 3,130
Self-insurance accruals 3,688 3,339
Operating lease liabilities 15,222 15,363
Other liabilities 694 695
Total other long-term liabilities 26,844 27,016
COMMITMENTS AND CONTINGENCIES
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, $0.10 par value; 800 million shares authorized; 318 million shares issued as of November 30, 2023 and May 31, 2023 32 32
Additional paid-in capital 3,849 3,769
Retained earnings 36,605 35,259
Accumulated other comprehensive loss (1,294) (1,327)
Treasury stock, at cost (12,426) (11,645)
Total common stockholders’ investment 26,766 26,088
LIABILITIES AND COMMON STOCKHOLDERS' INVESTMENT $ 88,051 $ 87,143
v3.23.4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Nov. 30, 2023
May 31, 2023
CURRENT ASSETS    
Allowances for receivables $ 767 $ 800
Allowances for spare parts, supplies and fuel $ 286 $ 276
COMMON STOCKHOLDERS' INVESTMENT    
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 800,000,000 800,000,000
Common stock, shares issued 318,000,000 318,000,000
v3.23.4
Condensed Consolidated Statements of Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Income Statement [Abstract]        
REVENUE $ 22,165 $ 22,814 $ 43,846 $ 46,056
OPERATING EXPENSES:        
Salaries and employee benefits 7,833 7,792 15,618 15,651
Purchased transportation 5,395 5,665 10,431 11,432
Rentals and landing fees 1,138 1,195 2,289 2,354
Depreciation and amortization 1,040 1,046 2,111 2,070
Fuel 1,328 1,593 2,429 3,415
Maintenance and repairs 854 882 1,678 1,786
Business optimization and realignment costs 145 36 250 74
Other 3,156 3,429 6,279 6,907
OPERATING EXPENSES 20,889 21,638 41,085 43,689
OPERATING INCOME 1,276 1,176 2,761 2,367
OTHER (EXPENSE) INCOME:        
Interest, net (97) (127) (188) (269)
Other retirement plans, net 41 101 80 202
Other, net (18) (91) (28) (87)
OTHER (EXPENSE) INCOME (74) (117) (136) (154)
INCOME BEFORE INCOME TAXES 1,202 1,059 2,625 2,213
PROVISION FOR INCOME TAXES 302 271 647 550
NET INCOME $ 900 $ 788 $ 1,978 $ 1,663
EARNINGS PER COMMON SHARE:        
Basic $ 3.59 $ 3.08 $ 7.88 $ 6.46
Diluted 3.55 3.07 7.79 6.41
DIVIDENDS DECLARED PER COMMON SHARE $ 1.26 $ 1.15 $ 2.52 $ 3.45
v3.23.4
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 900 $ 788 $ 1,978 $ 1,663
OTHER COMPREHENSIVE INCOME (LOSS):        
Foreign currency translation adjustments, net of tax (expense) benefit of ($3) and $1 in 2023 and $9 and $27 in 2022 28 (70)   (279)
Prior service credit arising during period, net of tax (expense) of ($11) and ($11) in 2023 and $0 and $0 in 2022 36   36  
Amortization of prior service credit, net of benefit of $0 and $0 in 2023 and $1 and $1 in 2022 (2) (1) (3) (3)
Other comprehensive income (loss) 62 (71) 33 (282)
COMPREHENSIVE INCOME $ 962 $ 717 $ 2,011 $ 1,381
v3.23.4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Other Comprehensive Income, Tax Amounts        
Foreign currency translation adjustments, tax (expense) benefit $ (3) $ 9 $ 1 $ 27
Prior service credit arising during period, net of tax (expense) (11) 0 (11) 0
Amortization of prior service credit, tax benefit $ 0 $ 1 $ 0 $ 1
v3.23.4
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Operating Activities:    
Net income $ 1,978 $ 1,663
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization 2,111 2,070
Provision for uncollectible accounts 216 425
Stock-based compensation 96 108
Other noncash items including leases and deferred income taxes 1,427 1,589
Business optimization and realignment costs, net of payments (28) (40)
Changes in assets and liabilities:    
Receivables (687) (512)
Other assets (110) (214)
Accounts payable and other liabilities (975) (1,994)
Other, net (24) 30
Cash provided by operating activities 4,004 3,125
Investing Activities:    
Capital expenditures (2,595) (3,142)
Purchase of investments (75) (78)
Proceeds from asset dispositions and other 62 20
Cash used in investing activities (2,608) (3,200)
Financing Activities:    
Principal payments on debt (94) (32)
Proceeds from stock issuances 211 89
Dividends paid (635) (598)
Purchase of treasury stock (1,000) (1,500)
Other, net   1
Cash used in financing activities (1,518) (2,040)
Effect of exchange rate changes on cash (5) (136)
Net decrease in cash and cash equivalents (127) (2,251)
Cash and cash equivalents at beginning of period 6,856 6,897
Cash and cash equivalents at end of period $ 6,729 $ 4,646
v3.23.4
Condensed Consolidated Statements of Changes in Common Stockholders' Investment - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Beginning Balance     $ 26,088  
Net income $ 900 $ 788 1,978 $ 1,663
Other comprehensive income (loss), net of tax (expense) benefit of ($14), $10, ($10), and $28 62 (71) 33 (282)
Ending Balance 26,766 24,115 26,766 24,115
Common Stock        
Beginning Balance 32 32 32 32
Ending Balance 32 32 32 32
Additional Paid-In Capital        
Beginning Balance 3,800 3,751 3,769 3,712
Purchase of treasury stock 2 (300) (34) (300)
Employee incentive plans and other 47 36 114 75
Ending Balance 3,849 3,487 3,849 3,487
Retained Earnings        
Beginning Balance 36,021 33,060 35,259 32,782
Net income 900 788 1,978 1,663
Cash dividends declared ($1.26, $1.15, $2.52, and $3.45 per share) (316) (291) (632) (888)
Ending Balance 36,605 33,557 36,605 33,557
Accumulated Other Comprehensive Loss        
Beginning Balance (1,356) (1,314) (1,327) (1,103)
Other comprehensive income (loss), net of tax (expense) benefit of ($14), $10, ($10), and $28 62 (71) 33 (282)
Ending Balance (1,294) (1,385) (1,294) (1,385)
Treasury Stock        
Beginning Balance (11,963) (10,389) (11,645) (10,484)
Purchase of treasury stock (509) (1,200) (974) (1,200)
Employee incentive plans and other 46 13 193 108
Ending Balance $ (12,426) $ (11,576) $ (12,426) $ (11,576)
v3.23.4
Condensed Consolidated Statements of Changes in Common Stockholders' Investment (Parenthetical) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Statement of Stockholders' Equity [Abstract]        
Cash dividends declared, per share $ 1.26 $ 1.15 $ 2.52 $ 3.45
Other comprehensive loss, tax benefit $ (14) $ 10 $ (10) $ 28
Purchase of treasury stock 2.0 7.9 3.9 7.9
Employee incentive plans and other, shares issued 0.4 0.1 1.5 0.8
v3.23.4
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Pay vs Performance Disclosure        
Net Income (Loss) $ 900 $ 788 $ 1,978 $ 1,663
v3.23.4
Insider Trading Arrangements
 6 Months Ended
Nov. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.4
General
 6 Months Ended
Nov. 30, 2023
General [Abstract]  
General

(1) General

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the year ended May 31, 2023 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2023, and the results of our operations for the three- and six-month periods ended November 30, 2023 and 2022, cash flows for the six-month periods ended November 30, 2023 and 2022, and changes in common stockholders’ investment for the three- and six-month periods ended November 30, 2023 and 2022. Operating results for the three- and six-month period ended November 30, 2023 are not necessarily indicative of the results that may be expected for the year ending May 31, 2024.

Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2024 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year.

REVENUE RECOGNITION.

Contract Assets and Liabilities

Contract assets include billed and unbilled amounts resulting from in-transit shipments, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current, and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions.

Gross contract assets related to in-transit shipments totaled $828 million and $686 million at November 30, 2023 and May 31, 2023, respectively. Contract assets net of deferred unearned revenue were $591 million and $484 million at November 30, 2023 and May 31, 2023, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customers were $21 million and $19 million at November 30, 2023 and May 31, 2023, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets.

Disaggregation of Revenue

The following table provides revenue by service type (in millions) for the periods ended November 30. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

2,158

 

 

$

2,237

 

 

$

4,346

 

 

$

4,553

 

U.S. overnight envelope

 

 

447

 

 

 

474

 

 

 

932

 

 

 

999

 

U.S. deferred

 

 

1,208

 

 

 

1,253

 

 

 

2,395

 

 

 

2,540

 

Total U.S. domestic package revenue

 

 

3,813

 

 

 

3,964

 

 

 

7,673

 

 

 

8,092

 

International priority

 

 

2,390

 

 

 

2,823

 

 

 

4,717

 

 

 

5,720

 

International economy

 

 

1,088

 

 

 

711

 

 

 

2,109

 

 

 

1,418

 

Total international export package revenue

 

 

3,478

 

 

 

3,534

 

 

 

6,826

 

 

 

7,138

 

International domestic(1)

 

 

1,086

 

 

 

1,036

 

 

 

2,110

 

 

 

2,010

 

Total package revenue

 

 

8,377

 

 

 

8,534

 

 

 

16,609

 

 

 

17,240

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

584

 

 

 

784

 

 

 

1,166

 

 

 

1,580

 

International priority

 

 

569

 

 

 

811

 

 

 

1,122

 

 

 

1,699

 

International economy

 

 

422

 

 

 

388

 

 

 

847

 

 

 

765

 

International airfreight

 

 

29

 

 

 

39

 

 

 

61

 

 

 

80

 

Total freight revenue

 

 

1,604

 

 

 

2,022

 

 

 

3,196

 

 

 

4,124

 

Other

 

 

273

 

 

 

308

 

 

 

534

 

 

 

627

 

Total FedEx Express segment

 

 

10,254

 

 

 

10,864

 

 

 

20,339

 

 

 

21,991

 

FedEx Ground segment

 

 

8,639

 

 

 

8,393

 

 

 

17,059

 

 

 

16,553

 

FedEx Freight segment

 

 

2,360

 

 

 

2,454

 

 

 

4,651

 

 

 

5,177

 

FedEx Services segment

 

 

65

 

 

 

68

 

 

 

137

 

 

 

138

 

Other and eliminations(2)

 

 

847

 

 

 

1,035

 

 

 

1,660

 

 

 

2,197

 

 

 

$

22,165

 

 

$

22,814

 

 

$

43,846

 

 

$

46,056

 
(1)
International domestic revenue relates to our international intra-country operations.
(2)
Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments.

EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“FedEx Express”), who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board, which is the U.S. governmental agency that oversees labor agreements for entities covered by the Railway Labor Act of 1926, as amended, began actively mediating the negotiations. In July 2023, FedEx Express’s pilots failed to ratify the tentative successor agreement that was approved by ALPA’s FedEx Express Master Executive Council the prior month. Bargaining for a successor agreement continues. The conduct of mediated negotiations has no effect on our operations. A small number of our other employees are members of unions.

STOCK-BASED COMPENSATION. We have three types of equity-based compensation: stock options, restricted stock, and, for outside directors, restricted stock units. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and financial disclosures about these programs are set forth in our Annual Report. The key terms of the restricted stock units granted to our outside directors are set forth in our Current Report on Form 8-K dated September 21, 2023 and filed with the SEC on September 22, 2023.

Our stock-based compensation expense was $40 million for the three-month period ended November 30, 2023 and $96 million for the six-month period ended November 30, 2023. Our stock-based compensation expense was $40 million for the three-month period ended November 30, 2022 and $108 million for the six-month period ended November 30, 2022. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report.

 

BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We plan to consolidate our sortation facilities and equipment, reduce pickup-and-delivery routes, and optimize our enterprise linehaul network by moving beyond discrete collaboration to an end-to-end optimized network through Network 2.0.

 

In the fourth quarter of 2023, we announced one FedEx, a consolidation plan to ultimately bring FedEx Express, FedEx Ground Package System, Inc. (“FedEx Ground”), FedEx Corporate Services, Inc. (“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, Inc. will continue to provide less-than-truckload (“LTL”) freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with the new legal structure complete by June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0, 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 employee couriers and contracted service providers.

 

We incurred costs associated with our business optimization activities of $145 million ($110 million, net of tax, or $0.44 per diluted share) in the second quarter and $250 million ($191 million, net of tax, or $0.75 per diluted share) in the first half of 2024. These costs were primarily related to professional services and severance. We recognized $36 million ($27 million, net of tax, or $0.11 per diluted share) of costs under this program, including idling our operations in Russia, in the second quarter and $60 million ($46 million, net of tax, or $0.18 per diluted share) in the first half of 2023. These costs were primarily related to consulting services. Business optimization costs are included in Corporate, other, and eliminations, FedEx Express, and FedEx Ground.

 

In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed in 2023. No business realignment costs were incurred in the second quarter of 2023. We incurred costs associated with our business realignment activities of $14 million ($11 million, net of tax, or $0.04 per diluted share) in the first half of 2023. These costs were related to certain employee severance arrangements. The pre-tax cost of our business realignment activities through 2023 was approximately $430 million.

DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them.

When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge.

If a derivative is designated as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow hedge for any period presented. As of November 30, 2023, we had €165 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of November 30, 2023, the hedge remains effective.

SUPPLIER FINANCE PROGRAM. We offer a voluntary Supply Chain Finance (“SCF”) program through one of our financial institutions to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities, and payment terms, and they issue invoices to us based on the agreed-upon contractual terms. If our suppliers choose to participate in the SCF program, they determine which invoices, if any, to sell to the financial institution to receive an early discounted payment, while we settle the net payment amount with our financial institution on the payment due dates. We guarantee these payments with the financial institution.

Amounts due to our suppliers that participate in the SCF program are included in accounts payable in our consolidated balance sheets. We have been informed by the participating financial institutions that as of November 30, 2023 and May 31, 2023, suppliers have been approved to sell to them $76 million and $76 million, respectively, of our outstanding payment obligations.

RECENT ACCOUNTING GUIDANCE. New accounting rules and disclosure requirements can significantly affect our reported results and the comparability of our financial statements. We believe the following new accounting guidance is relevant to the readers of our financial statements.

Recently Adopted Accounting Standards

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program (e.g., reverse factoring) to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. We adopted this standard effective June 1, 2023. The adoption of this standard did not have a material effect on our consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standards provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to existing contracts, hedging relationships, and other transactions affected by reference rate reform. The standards apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate to be discontinued because of reference rate reform. The standards were effective upon issuance and can generally be applied through December 31, 2024. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of November 30, 2023, we continue to monitor our contracts and transactions for potential application of these ASUs.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures.

EQUITY AND OTHER INVESTMENTS. Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other (expense) income, net” on our consolidated statements of income. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of available recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value.

Equity investments that have readily determinable fair values, including investments for which we have elected the fair value option, are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other (expense) income, net” on our consolidated statements of income.

During the second quarter of 2024, we purchased $100 million of debt securities with effective maturities ranging from less than one year to approximately three years. These investments have been recognized in “Cash and cash equivalents” and “Other assets” on our consolidated balance sheets.

As of November 30, 2023, these investments are not material to our financial position or results of operations.

TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $5 billion of FedEx common stock. As part of the repurchase program, we completed an accelerated share repurchase (“ASR”) agreement with a bank during the second quarter of 2024 to repurchase an aggregate of $500 million of our common stock.

During the second quarter of 2024, 2.0 million shares were repurchased under the ASR agreement at an average price of $256.24 per share for a total of $500 million. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheet and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share.

During the six months ended November 30, 2023, we repurchased 3.9 million shares of FedEx common stock under ASR agreements at an average price of $256.33 per share for a total of $1.0 billion. During the six months ended November 30, 2022, we repurchased 7.9 million shares of FedEx common stock under an ASR agreement at an average price of $151.46 per share for a total of $1.2 billion. As of November 30, 2023, approximately $1.6 billion remained available to use for repurchases under the program.

Shares under the repurchase 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 November 17, 2023, our Board of Directors declared a quarterly dividend of $1.26 per share of common stock. The dividend will be paid on January 2, 2024 to stockholders of record as of the close of business on December 11, 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.
v3.23.4
Credit Losses
 6 Months Ended
Nov. 30, 2023
Credit Loss [Abstract]  
Credit Losses

(2) Credit Losses

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

Credit losses were $113 million for the three-month period ended November 30, 2023 and $216 million for the six-month period ended November 30, 2023. Credit losses were $180 million for the three-month period ended November 30, 2022 and $425 million for the six-month period ended November 30, 2022. Our allowance for credit losses was $426 million at November 30, 2023 and $472 million at May 31, 2023.
v3.23.4
Accumulated Other Comprehensive Loss
 6 Months Ended
Nov. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss

(3) Accumulated Other Comprehensive Loss

The following table provides changes in accumulated other comprehensive income (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the three-month periods ended November 30 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,390

)

 

$

(1,357

)

 

$

(1,362

)

 

$

(1,148

)

Translation adjustments

 

 

28

 

 

 

(70

)

 

 

—

 

 

 

(279

)

Balance at end of period

 

 

(1,362

)

 

 

(1,427

)

 

 

(1,362

)

 

 

(1,427

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

34

 

 

 

43

 

 

 

35

 

 

 

45

 

Prior service credit arising during period

 

 

36

 

 

 

—

 

 

 

36

 

 

 

—

 

Reclassifications from AOCI

 

 

(2

)

 

 

(1

)

 

 

(3

)

 

 

(3

)

Balance at end of period

 

 

68

 

 

 

42

 

 

 

68

 

 

 

42

 

Accumulated other comprehensive (loss) at end of period

 

$

(1,294

)

 

$

(1,385

)

 

$

(1,294

)

 

$

(1,385

)

The following table presents details of the reclassifications from AOCI for the periods ended November 30 (in millions; amounts in parentheses indicate debits to earnings):

 

 

 

Amount Reclassified from
AOCI

 

 

Affected Line Item in the
Income Statement

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

Amortization of retirement plans
   prior service credits, before tax

 

$

2

 

 

$

2

 

 

$

3

 

 

$

4

 

 

Other retirement plans, net

Income tax expense (benefit)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

2

 

 

$

1

 

 

$

3

 

 

$

3

 

 

Net income
v3.23.4
Financing Arrangements
 6 Months Ended
Nov. 30, 2023
Debt and Lease Obligation [Abstract]  
Financing Arrangements

(4) Financing Arrangements

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

FedEx Express has issued $970 million of Pass-Through Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due in February 2034 utilizing pass-through trusts. The Certificates are secured by 19 Boeing aircraft with a net book value of $1.7 billion at November 30, 2023. The payment obligations of FedEx Express in respect of the Certificates are fully and unconditionally guaranteed by FedEx.

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 November 30, 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 mark-to-market adjustments, noncash pension service costs, and noncash asset impairment charges) before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) of not more than 3.5 to 1.0, calculated as of the last day of each fiscal quarter on a rolling four-quarters basis. The ratio of our debt to adjusted EBITDA was 2.0 to 1.0 at November 30, 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.

Long-term debt, including current maturities and exclusive of finance leases, had carrying values of $19.8 billion at November 30, 2023 and $19.8 billion at May 31, 2023, compared with estimated fair values of $17.6 billion at November 30, 2023 and $17.5 billion at May 31, 2023. The annualized weighted-average interest rate on long-term debt was 3.5% at November 30, 2023. 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.
v3.23.4
Computation of Earnings Per Share
 6 Months Ended
Nov. 30, 2023
Earnings Per Share [Abstract]  
Computation of Earnings Per Share

(5) Computation of Earnings Per Share

The calculation of basic and diluted earnings per common share for the periods ended November 30 was as follows (in millions, except per share amounts):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

898

 

 

$

786

 

 

$

1,975

 

 

$

1,660

 

Weighted-average common shares

 

 

250

 

 

 

255

 

 

 

251

 

 

 

257

 

Basic earnings per common share

 

$

3.59

 

 

$

3.08

 

 

$

7.88

 

 

$

6.46

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

898

 

 

$

786

 

 

$

1,975

 

 

$

1,660

 

Weighted-average common shares

 

 

250

 

 

 

255

 

 

 

251

 

 

 

257

 

Dilutive effect of share-based awards

 

 

3

 

 

 

1

 

 

 

3

 

 

 

2

 

Weighted-average diluted shares

 

 

253

 

 

 

256

 

 

 

254

 

 

 

259

 

Diluted earnings per common share

 

$

3.55

 

 

$

3.07

 

 

$

7.79

 

 

$

6.41

 

Anti-dilutive options excluded from diluted earnings per
   common share

 

 

6.3

 

 

 

9.5

 

 

 

6.3

 

 

 

7.6

 

(1) Net earnings available to participating securities were immaterial in all periods presented.
v3.23.4
Retirement Plans
 6 Months Ended
Nov. 30, 2023
Retirement Benefits [Abstract]  
Retirement Plans

(6) Retirement Plans

We sponsor programs that provide retirement benefits to most of our employees. These programs include defined benefit pension plans, defined contribution plans, and postretirement healthcare plans. Key terms of our retirement plans are provided in our Annual Report.

Our retirement plans costs for the periods ended November 30 were as follows (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Defined benefit pension plans, net

 

$

91

 

 

$

58

 

 

$

182

 

 

$

117

 

Defined contribution plans

 

 

242

 

 

 

228

 

 

 

482

 

 

 

472

 

Postretirement healthcare plans

 

 

21

 

 

 

23

 

 

 

44

 

 

 

46

 

 

 

$

354

 

 

$

309

 

 

$

708

 

 

$

635

 

Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended November 30 included the following components (in millions):

 

 

 

Three Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service cost

 

$

136

 

 

$

163

 

 

$

10

 

 

$

10

 

 

$

7

 

 

$

9

 

Other retirement plans expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

340

 

 

 

305

 

 

 

12

 

 

 

8

 

 

 

14

 

 

 

14

 

Expected return on plan assets

 

 

(399

)

 

 

(422

)

 

 

(7

)

 

 

(4

)

 

 

—

 

 

 

—

 

Amortization of prior service credit and other

 

 

(1

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

(60

)

 

 

(119

)

 

 

5

 

 

 

4

 

 

 

14

 

 

 

14

 

 

 

$

76

 

 

$

44

 

 

$

15

 

 

$

14

 

 

$

21

 

 

$

23

 

 

 

 

Six Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service cost

 

$

272

 

 

$

326

 

 

$

20

 

 

$

21

 

 

$

14

 

 

$

18

 

Other retirement plans expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

681

 

 

 

609

 

 

 

22

 

 

 

17

 

 

 

30

 

 

 

28

 

Expected return on plan assets

 

 

(799

)

 

 

(844

)

 

 

(11

)

 

 

(8

)

 

 

—

 

 

 

—

 

Amortization of prior service credit and other

 

 

(3

)

 

 

(4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

(121

)

 

 

(239

)

 

 

11

 

 

 

9

 

 

 

30

 

 

 

28

 

 

 

$

151

 

 

$

87

 

 

$

31

 

 

$

30

 

 

$

44

 

 

$

46

 

For 2024, no pension contributions are required for our tax-qualified U.S. domestic pension plan (“U.S. Pension Plan”) as it is fully funded under the Employee Retirement Income Security Act. We made voluntary contributions of $400 million to our U.S. Pension Plan during the first half of 2024 and anticipate making $400 million of additional voluntary contributions during the remainder of 2024.
v3.23.4
Business Segment Information
 6 Months Ended
Nov. 30, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segment Information

(7) Business Segment Information

We provide a broad portfolio of transportation, e-commerce, and business services through companies competing collectively, operating collaboratively, and innovating digitally as one FedEx. Our primary operating companies are FedEx Express, the world’s largest express transportation company; FedEx Ground, a leading North American provider of small-package ground delivery services; and FedEx Freight Corporation (“FedEx Freight”), a leading North American provider of LTL freight transportation services. These companies represent our major service lines and, along with FedEx Services, constitute our reportable segments.

Our reportable segments include the following businesses:

 

FedEx Express Segment

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

 

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

 

FedEx Ground Segment

FedEx Ground (small-package ground delivery)

 

 

FedEx Freight Segment

FedEx Freight (LTL freight transportation)

 

 

FedEx Services Segment

FedEx Services (sales, marketing, information technology, communications, customer

     service, technical support, billing and collection services, and back-office functions)

In the fourth quarter of 2023, FedEx announced one FedEx, a consolidation plan to 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 the new legal structure complete by June 2024. During the implementation process in 2024, each of our current reportable segments will continue to have discrete financial information that will be regularly reviewed when evaluating performance and making resource allocation decisions, and aligns with our management reporting structure and our internal financial reporting. In the first quarter of 2025 when the consolidation plan has been completed, we expect to begin reporting a new segment structure that will align with an updated management reporting structure and how management will evaluate performance and make resource allocation decisions under one FedEx.

References to our transportation segments include, collectively, the FedEx Express segment, the FedEx Ground segment, and the FedEx Freight segment.

FedEx Services Segment

The FedEx Services segment operates combined sales, marketing, administrative, and information-technology functions in shared services operations for U.S. customers of our major business units and certain back-office support to our operating segments which allows us to obtain synergies from the combination of these functions. For the international regions of FedEx Express, some of these functions are performed on a regional basis and reported by FedEx Express in their natural expense line items.

The FedEx Services segment provides direct and indirect support to our operating segments, and we allocate all of the net operating costs of the FedEx Services segment to reflect the full cost of operating our businesses in the results of those segments. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the effect of its total allocated net operating costs on our operating segments.

Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenue or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses.

Corporate, Other, and Eliminations

Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, including certain other costs and credits not attributed to our core business, as well as certain costs associated with developing our “innovate digitally” strategic pillar through our FedEx Dataworks operating segment. FedEx Dataworks is focused on creating solutions to transform the digital and physical experiences of our customers and team members.

Also included in Corporate and other is the FedEx Office operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding.

The results of Corporate, other, and eliminations are not allocated to the other business segments.

Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue and expenses are eliminated in our consolidated results and are not separately identified in the following segment information because the amounts are not material.

The following table provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the periods ended November 30 (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

$

10,254

 

 

$

10,864

 

 

$

20,339

 

 

$

21,991

 

FedEx Ground segment

 

 

8,639

 

 

 

8,393

 

 

 

17,059

 

 

 

16,553

 

FedEx Freight segment

 

 

2,360

 

 

 

2,454

 

 

 

4,651

 

 

 

5,177

 

FedEx Services segment

 

 

65

 

 

 

68

 

 

 

137

 

 

 

138

 

Other and eliminations

 

 

847

 

 

 

1,035

 

 

 

1,660

 

 

 

2,197

 

 

 

$

22,165

 

 

$

22,814

 

 

$

43,846

 

 

$

46,056

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

$

137

 

 

$

341

 

 

$

342

 

 

$

515

 

FedEx Ground segment

 

 

900

 

 

 

598

 

 

 

2,003

 

 

 

1,292

 

FedEx Freight segment

 

 

487

 

 

 

440

 

 

 

968

 

 

 

1,091

 

Corporate, other, and eliminations

 

 

(248

)

 

 

(203

)

 

 

(552

)

 

 

(531

)

 

 

$

1,276

 

 

$

1,176

 

 

$

2,761

 

 

$

2,367

 

 
v3.23.4
Commitments
 6 Months Ended
Nov. 30, 2023
Commitments [Abstract]  
Commitments

(8) Commitments

As of November 30, 2023, our purchase commitments under various contracts for the remainder of 2024 and annually thereafter were as follows (in millions):

 

 

 

Aircraft and Aircraft Related

 

 

Other(1)

 

 

Total

 

2024 (remainder)

 

$

485

 

 

$

333

 

 

$

818

 

2025

 

 

1,626

 

 

 

659

 

 

 

2,285

 

2026

 

 

591

 

 

 

498

 

 

 

1,089

 

2027

 

 

290

 

 

 

226

 

 

 

516

 

2028

 

 

264

 

 

 

138

 

 

 

402

 

Thereafter

 

 

1,646

 

 

 

85

 

 

 

1,731

 

Total

 

$

4,902

 

 

$

1,939

 

 

$

6,841

 

 

(1)
Primarily information technology and advertising.

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

As of November 30, 2023, we had $576 million in deposits and progress payments on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our accompanying unaudited condensed consolidated balance sheets. Aircraft and related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of November 30, 2023 with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2024 (remainder)

 

 

9

 

 

 

5

 

 

 

5

 

 

 

—

 

 

 

19

 

2025

 

 

12

 

 

 

8

 

 

 

10

 

 

 

2

 

 

 

32

 

2026

 

 

14

 

 

 

1

 

 

 

2

 

 

 

—

 

 

 

17

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

35

 

 

 

14

 

 

 

17

 

 

 

2

 

 

 

68

 

 

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year as of November 30, 2023 is as follows (in millions):

 

 

 

Aircraft
and Related
Equipment

 

 

Facilities
and Other

 

 

Total
Operating
Leases

 

 

Finance Leases

 

 

Total Leases

 

2024 (remainder)

 

$

64

 

 

$

1,364

 

 

$

1,428

 

 

$

278

 

 

$

1,706

 

2025

 

 

118

 

 

 

2,912

 

 

 

3,030

 

 

 

38

 

 

 

3,068

 

2026

 

 

115

 

 

 

2,607

 

 

 

2,722

 

 

 

30

 

 

 

2,752

 

2027

 

 

114

 

 

 

2,306

 

 

 

2,420

 

 

 

22

 

 

 

2,442

 

2028

 

 

114

 

 

 

1,983

 

 

 

2,097

 

 

 

21

 

 

 

2,118

 

Thereafter

 

 

243

 

 

 

8,867

 

 

 

9,110

 

 

 

649

 

 

 

9,759

 

Total lease payments

 

 

768

 

 

 

20,039

 

 

 

20,807

 

 

 

1,038

 

 

 

21,845

 

Less imputed interest

 

 

(96

)

 

 

(3,056

)

 

 

(3,152

)

 

 

(332

)

 

 

(3,484

)

Present value of lease liability

 

$

672

 

 

$

16,983

 

 

$

17,655

 

 

$

706

 

 

$

18,361

 

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 November 30, 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 $1.7 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2024 to 2027.
v3.23.4
Contingencies
 6 Months Ended
Nov. 30, 2023
Loss Contingency [Abstract]  
Contingencies

(9) Contingencies

 

Service Provider Lawsuits. FedEx Ground is defending lawsuits in which it is alleged that FedEx Ground should be treated as a joint employer of drivers employed by service providers engaged by FedEx Ground. These cases are in varying stages of litigation, and we are not currently able to estimate an amount or range of potential loss in all of these matters. However, we do not expect to incur, individually or in the aggregate, a material loss in these matters. Nevertheless, adverse determinations in these matters could, among other things, entitle service providers’ drivers to certain payments, including wages and penalties, from the service providers and FedEx Ground and result in employment and withholding tax and benefit liability for FedEx Ground. We continue to believe that FedEx Ground is not an employer or joint employer of the drivers of these independent businesses.

 

FedEx Services Employment Lawsuit. In May 2021, FedEx Services was named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Texas related to the termination of a former FedEx Services employee. The complaint alleged race discrimination and retaliation for complaints of discrimination under Section 1981 of the Civil Rights Act of 1866 and Title VII of the Civil Rights Act of 1964. After trial, in October 2022, the jury found in favor of FedEx Services on the race discrimination claims but awarded the plaintiff compensatory damages of approximately $1.0 million for emotional distress and punitive damages of $365 million for the retaliation claims. The court entered final judgment in the amount of approximately $366 million. FedEx Services has appealed the verdict to the U.S. Court of Appeals for the Fifth Circuit. FedEx Services argued on appeal that FedEx Services is entitled to judgment as a matter of law on the retaliation claims, plaintiff’s claims were not timely filed, punitive damages are not available as a matter of law and, if allowed, must be reduced to no greater than a single-digit multiple of the award for compensatory damages based on the United States Supreme Court’s ruling in State Farm v. Campbell, and the compensatory damages award must be reduced to conform with the evidence and the Fifth Circuit’s maximum recovery rule. FedEx Services argued in the alternative that a new trial should be granted.

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.
v3.23.4
Supplemental Cash Flow Information
 6 Months Ended
Nov. 30, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

(10) Supplemental Cash Flow Information

Cash paid for interest expense and income taxes for the six-month periods ended November 30 was as follows (in millions):

 

 

 

2023

 

 

2022

 

Cash payments for:

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

357

 

 

$

333

 

Income taxes

 

$

843

 

 

$

638

 

Income tax refunds received

 

 

(82

)

 

 

(48

)

Cash tax (refunds)/payments, net

 

$

761

 

 

$

590

 
v3.23.4
General (Policies)
 6 Months Ended
Nov. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. These interim financial statements of FedEx Corporation (“FedEx”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report on Form 10-K for the year ended May 31, 2023 (“Annual Report”). Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in our Annual Report.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (including normal recurring adjustments) necessary to present fairly our financial position as of November 30, 2023, and the results of our operations for the three- and six-month periods ended November 30, 2023 and 2022, cash flows for the six-month periods ended November 30, 2023 and 2022, and changes in common stockholders’ investment for the three- and six-month periods ended November 30, 2023 and 2022. Operating results for the three- and six-month period ended November 30, 2023 are not necessarily indicative of the results that may be expected for the year ending May 31, 2024.

Except as otherwise specified, references to years indicate our fiscal year ending May 31, 2024 or ended May 31 of the year referenced and comparisons are to the corresponding period of the prior year.

Revenue Recognition

REVENUE RECOGNITION.

Contract Assets and Liabilities

Contract assets include billed and unbilled amounts resulting from in-transit shipments, as we have an unconditional right to payment only once all performance obligations have been completed (e.g., packages have been delivered). Contract assets are generally classified as current, and the full balance is converted each quarter based on the short-term nature of the transactions. Our contract liabilities consist of advance payments and billings in excess of revenue. The full balance of deferred revenue is converted each quarter based on the short-term nature of the transactions.

Gross contract assets related to in-transit shipments totaled $828 million and $686 million at November 30, 2023 and May 31, 2023, respectively. Contract assets net of deferred unearned revenue were $591 million and $484 million at November 30, 2023 and May 31, 2023, respectively. Contract assets are included within current assets in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities related to advance payments from customers were $21 million and $19 million at November 30, 2023 and May 31, 2023, respectively. Contract liabilities are included within current liabilities in the accompanying unaudited condensed consolidated balance sheets.

Disaggregation of Revenue

The following table provides revenue by service type (in millions) for the periods ended November 30. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

2,158

 

 

$

2,237

 

 

$

4,346

 

 

$

4,553

 

U.S. overnight envelope

 

 

447

 

 

 

474

 

 

 

932

 

 

 

999

 

U.S. deferred

 

 

1,208

 

 

 

1,253

 

 

 

2,395

 

 

 

2,540

 

Total U.S. domestic package revenue

 

 

3,813

 

 

 

3,964

 

 

 

7,673

 

 

 

8,092

 

International priority

 

 

2,390

 

 

 

2,823

 

 

 

4,717

 

 

 

5,720

 

International economy

 

 

1,088

 

 

 

711

 

 

 

2,109

 

 

 

1,418

 

Total international export package revenue

 

 

3,478

 

 

 

3,534

 

 

 

6,826

 

 

 

7,138

 

International domestic(1)

 

 

1,086

 

 

 

1,036

 

 

 

2,110

 

 

 

2,010

 

Total package revenue

 

 

8,377

 

 

 

8,534

 

 

 

16,609

 

 

 

17,240

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

584

 

 

 

784

 

 

 

1,166

 

 

 

1,580

 

International priority

 

 

569

 

 

 

811

 

 

 

1,122

 

 

 

1,699

 

International economy

 

 

422

 

 

 

388

 

 

 

847

 

 

 

765

 

International airfreight

 

 

29

 

 

 

39

 

 

 

61

 

 

 

80

 

Total freight revenue

 

 

1,604

 

 

 

2,022

 

 

 

3,196

 

 

 

4,124

 

Other

 

 

273

 

 

 

308

 

 

 

534

 

 

 

627

 

Total FedEx Express segment

 

 

10,254

 

 

 

10,864

 

 

 

20,339

 

 

 

21,991

 

FedEx Ground segment

 

 

8,639

 

 

 

8,393

 

 

 

17,059

 

 

 

16,553

 

FedEx Freight segment

 

 

2,360

 

 

 

2,454

 

 

 

4,651

 

 

 

5,177

 

FedEx Services segment

 

 

65

 

 

 

68

 

 

 

137

 

 

 

138

 

Other and eliminations(2)

 

 

847

 

 

 

1,035

 

 

 

1,660

 

 

 

2,197

 

 

 

$

22,165

 

 

$

22,814

 

 

$

43,846

 

 

$

46,056

 
(1)
International domestic revenue relates to our international intra-country operations.
(2)
Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments.
Employees Under Collective Bargaining Arrangements

EMPLOYEES UNDER COLLECTIVE BARGAINING ARRANGEMENTS. The pilots of Federal Express Corporation (“FedEx Express”), who are a small number of its total employees, are represented by the Air Line Pilots Association, International (“ALPA”) and are employed under a collective bargaining agreement that took effect on November 2, 2015. The agreement became amendable in November 2021. Bargaining for a successor agreement began in May 2021, and in November 2022 the National Mediation Board, which is the U.S. governmental agency that oversees labor agreements for entities covered by the Railway Labor Act of 1926, as amended, began actively mediating the negotiations. In July 2023, FedEx Express’s pilots failed to ratify the tentative successor agreement that was approved by ALPA’s FedEx Express Master Executive Council the prior month. Bargaining for a successor agreement continues. The conduct of mediated negotiations has no effect on our operations. A small number of our other employees are members of unions.
Stock-Based Compensation

STOCK-BASED COMPENSATION. We have three types of equity-based compensation: stock options, restricted stock, and, for outside directors, restricted stock units. The key terms of the stock option and restricted stock awards granted under our outstanding incentive stock plans and financial disclosures about these programs are set forth in our Annual Report. The key terms of the restricted stock units granted to our outside directors are set forth in our Current Report on Form 8-K dated September 21, 2023 and filed with the SEC on September 22, 2023.

Our stock-based compensation expense was $40 million for the three-month period ended November 30, 2023 and $96 million for the six-month period ended November 30, 2023. Our stock-based compensation expense was $40 million for the three-month period ended November 30, 2022 and $108 million for the six-month period ended November 30, 2022. Due to its immateriality, additional disclosures related to stock-based compensation have been excluded from this quarterly report.
Business Optimization and Realignment Costs

BUSINESS OPTIMIZATION AND REALIGNMENT COSTS. In the second quarter of 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We plan to consolidate our sortation facilities and equipment, reduce pickup-and-delivery routes, and optimize our enterprise linehaul network by moving beyond discrete collaboration to an end-to-end optimized network through Network 2.0.

 

In the fourth quarter of 2023, we announced one FedEx, a consolidation plan to ultimately bring FedEx Express, FedEx Ground Package System, Inc. (“FedEx Ground”), FedEx Corporate Services, Inc. (“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, Inc. will continue to provide less-than-truckload (“LTL”) freight transportation services as a stand-alone and separate company under Federal Express Corporation. The organizational redesign will be implemented in phases with the new legal structure complete by June 2024. One FedEx will help facilitate our DRIVE transformation program to improve long-term profitability, including Network 2.0, 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 employee couriers and contracted service providers.

 

We incurred costs associated with our business optimization activities of $145 million ($110 million, net of tax, or $0.44 per diluted share) in the second quarter and $250 million ($191 million, net of tax, or $0.75 per diluted share) in the first half of 2024. These costs were primarily related to professional services and severance. We recognized $36 million ($27 million, net of tax, or $0.11 per diluted share) of costs under this program, including idling our operations in Russia, in the second quarter and $60 million ($46 million, net of tax, or $0.18 per diluted share) in the first half of 2023. These costs were primarily related to consulting services. Business optimization costs are included in Corporate, other, and eliminations, FedEx Express, and FedEx Ground.

 

In 2021, FedEx Express announced a workforce reduction plan in Europe related to the network integration of TNT Express. The plan affected approximately 5,000 employees in Europe across operational teams and back-office functions and was completed in 2023. No business realignment costs were incurred in the second quarter of 2023. We incurred costs associated with our business realignment activities of $14 million ($11 million, net of tax, or $0.04 per diluted share) in the first half of 2023. These costs were related to certain employee severance arrangements. The pre-tax cost of our business realignment activities through 2023 was approximately $430 million.
Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS. Our risk management strategy includes the select use of derivative instruments to reduce the effects of volatility in foreign currency exchange exposure on operating results and cash flows. In accordance with our risk management policies, we do not hold or issue derivative instruments for trading or speculative purposes. All derivative instruments are recognized in the financial statements at fair value, regardless of the purpose or intent for holding them.

When we become a party to a derivative instrument and intend to apply hedge accounting, we formally document the hedge relationship and the risk management objective for undertaking the hedge, which includes designating the instrument for financial reporting purposes as a fair value hedge, a cash flow hedge, or a net investment hedge.

If a derivative is designated as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. For net investment hedges, the entire change in the fair value is recorded in other comprehensive income. Any portion of a change in the fair value of a derivative that is considered to be ineffective, along with the change in fair value of any derivatives not designated in a hedging relationship, is immediately recognized in the income statement. We do not have any derivatives designated as a cash flow hedge for any period presented. As of November 30, 2023, we had €165 million of debt designated as a net investment hedge to reduce the volatility of the U.S. dollar value of a portion of our net investment in a euro-denominated consolidated subsidiary. As of November 30, 2023, the hedge remains effective.

Supplier Finance Program

SUPPLIER FINANCE PROGRAM. We offer a voluntary Supply Chain Finance (“SCF”) program through one of our financial institutions to certain of our suppliers. We agree to commercial terms with our suppliers, including prices, quantities, and payment terms, and they issue invoices to us based on the agreed-upon contractual terms. If our suppliers choose to participate in the SCF program, they determine which invoices, if any, to sell to the financial institution to receive an early discounted payment, while we settle the net payment amount with our financial institution on the payment due dates. We guarantee these payments with the financial institution.

Amounts due to our suppliers that participate in the SCF program are included in accounts payable in our consolidated balance sheets. We have been informed by the participating financial institutions that as of November 30, 2023 and May 31, 2023, suppliers have been approved to sell to them $76 million and $76 million, respectively, of our outstanding payment obligations.
Recent Accounting Guidance

RECENT ACCOUNTING GUIDANCE. New accounting rules and disclosure requirements can significantly affect our reported results and the comparability of our financial statements. We believe the following new accounting guidance is relevant to the readers of our financial statements.

Recently Adopted Accounting Standards

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50): Disclosure of Supplier Finance Program Obligations, which requires a buyer in a supplier finance program (e.g., reverse factoring) to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendments do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. We adopted this standard effective June 1, 2023. The adoption of this standard did not have a material effect on our consolidated financial statements and related disclosures.

Accounting Standards Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), and in December 2022 subsequently issued ASU 2022-06, to temporarily ease the potential burden in accounting for reference rate reform. The standards provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to existing contracts, hedging relationships, and other transactions affected by reference rate reform. The standards apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate to be discontinued because of reference rate reform. The standards were effective upon issuance and can generally be applied through December 31, 2024. While there has been no material effect to our financial condition, results of operations, or cash flows from reference rate reform as of November 30, 2023, we continue to monitor our contracts and transactions for potential application of these ASUs.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures.
Equity and Other Investments

EQUITY AND OTHER INVESTMENTS. Equity investments in private companies for which we do not have the ability to exercise significant influence are accounted for at cost, with adjustments for observable changes in prices or impairments, and are classified as “Other assets” on our consolidated balance sheets with adjustments recognized in “Other (expense) income, net” on our consolidated statements of income. Each reporting period, we perform a qualitative assessment to evaluate whether the investment is impaired. Our assessment includes a review of available recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, we write it down to its estimated fair value.

Equity investments that have readily determinable fair values, including investments for which we have elected the fair value option, are included in “Other assets” on our consolidated balance sheets and measured at fair value with changes recognized in “Other (expense) income, net” on our consolidated statements of income.

During the second quarter of 2024, we purchased $100 million of debt securities with effective maturities ranging from less than one year to approximately three years. These investments have been recognized in “Cash and cash equivalents” and “Other assets” on our consolidated balance sheets.

As of November 30, 2023, these investments are not material to our financial position or results of operations.
Treasury Shares

TREASURY SHARES. In December 2021, our Board of Directors authorized a stock repurchase program of up to $5 billion of FedEx common stock. As part of the repurchase program, we completed an accelerated share repurchase (“ASR”) agreement with a bank during the second quarter of 2024 to repurchase an aggregate of $500 million of our common stock.

During the second quarter of 2024, 2.0 million shares were repurchased under the ASR agreement at an average price of $256.24 per share for a total of $500 million. The final number of shares delivered upon settlement of the ASR agreement was determined based on a discount to the volume-weighted average price of our stock during the term of the transaction. The repurchased shares were accounted for as a reduction to common stockholders’ investment in the accompanying consolidated balance sheet and resulted in a reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share.

During the six months ended November 30, 2023, we repurchased 3.9 million shares of FedEx common stock under ASR agreements at an average price of $256.33 per share for a total of $1.0 billion. During the six months ended November 30, 2022, we repurchased 7.9 million shares of FedEx common stock under an ASR agreement at an average price of $151.46 per share for a total of $1.2 billion. As of November 30, 2023, approximately $1.6 billion remained available to use for repurchases under the program.

Shares under the repurchase 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 November 17, 2023, our Board of Directors declared a quarterly dividend of $1.26 per share of common stock. The dividend will be paid on January 2, 2024 to stockholders of record as of the close of business on December 11, 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.
v3.23.4
General (Tables)
 6 Months Ended
Nov. 30, 2023
Accounting Policies [Abstract]  
Schedule of Revenue by Service Type

The following table provides revenue by service type (in millions) for the periods ended November 30. This presentation is consistent with how we organize our segments internally for making operating decisions and measuring performance.

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

2,158

 

 

$

2,237

 

 

$

4,346

 

 

$

4,553

 

U.S. overnight envelope

 

 

447

 

 

 

474

 

 

 

932

 

 

 

999

 

U.S. deferred

 

 

1,208

 

 

 

1,253

 

 

 

2,395

 

 

 

2,540

 

Total U.S. domestic package revenue

 

 

3,813

 

 

 

3,964

 

 

 

7,673

 

 

 

8,092

 

International priority

 

 

2,390

 

 

 

2,823

 

 

 

4,717

 

 

 

5,720

 

International economy

 

 

1,088

 

 

 

711

 

 

 

2,109

 

 

 

1,418

 

Total international export package revenue

 

 

3,478

 

 

 

3,534

 

 

 

6,826

 

 

 

7,138

 

International domestic(1)

 

 

1,086

 

 

 

1,036

 

 

 

2,110

 

 

 

2,010

 

Total package revenue

 

 

8,377

 

 

 

8,534

 

 

 

16,609

 

 

 

17,240

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

584

 

 

 

784

 

 

 

1,166

 

 

 

1,580

 

International priority

 

 

569

 

 

 

811

 

 

 

1,122

 

 

 

1,699

 

International economy

 

 

422

 

 

 

388

 

 

 

847

 

 

 

765

 

International airfreight

 

 

29

 

 

 

39

 

 

 

61

 

 

 

80

 

Total freight revenue

 

 

1,604

 

 

 

2,022

 

 

 

3,196

 

 

 

4,124

 

Other

 

 

273

 

 

 

308

 

 

 

534

 

 

 

627

 

Total FedEx Express segment

 

 

10,254

 

 

 

10,864

 

 

 

20,339

 

 

 

21,991

 

FedEx Ground segment

 

 

8,639

 

 

 

8,393

 

 

 

17,059

 

 

 

16,553

 

FedEx Freight segment

 

 

2,360

 

 

 

2,454

 

 

 

4,651

 

 

 

5,177

 

FedEx Services segment

 

 

65

 

 

 

68

 

 

 

137

 

 

 

138

 

Other and eliminations(2)

 

 

847

 

 

 

1,035

 

 

 

1,660

 

 

 

2,197

 

 

 

$

22,165

 

 

$

22,814

 

 

$

43,846

 

 

$

46,056

 
(1)
International domestic revenue relates to our international intra-country operations.
(2)
Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments.
v3.23.4
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Nov. 30, 2023
Accumulated Other Comprehensive Income Loss Tables [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI")

The following table provides changes in accumulated other comprehensive income (“AOCI”), net of tax, reported in our unaudited condensed consolidated financial statements for the three-month periods ended November 30 (in millions; amounts in parentheses indicate debits to AOCI):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Foreign currency translation loss:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(1,390

)

 

$

(1,357

)

 

$

(1,362

)

 

$

(1,148

)

Translation adjustments

 

 

28

 

 

 

(70

)

 

 

—

 

 

 

(279

)

Balance at end of period

 

 

(1,362

)

 

 

(1,427

)

 

 

(1,362

)

 

 

(1,427

)

Retirement plans adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

34

 

 

 

43

 

 

 

35

 

 

 

45

 

Prior service credit arising during period

 

 

36

 

 

 

—

 

 

 

36

 

 

 

—

 

Reclassifications from AOCI

 

 

(2

)

 

 

(1

)

 

 

(3

)

 

 

(3

)

Balance at end of period

 

 

68

 

 

 

42

 

 

 

68

 

 

 

42

 

Accumulated other comprehensive (loss) at end of period

 

$

(1,294

)

 

$

(1,385

)

 

$

(1,294

)

 

$

(1,385

)
Reclassification Out of Accumulated Other Comprehensive Income (Loss)

The following table presents details of the reclassifications from AOCI for the periods ended November 30 (in millions; amounts in parentheses indicate debits to earnings):

 

 

 

Amount Reclassified from
AOCI

 

 

Affected Line Item in the
Income Statement

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

Amortization of retirement plans
   prior service credits, before tax

 

$

2

 

 

$

2

 

 

$

3

 

 

$

4

 

 

Other retirement plans, net

Income tax expense (benefit)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

Provision for income taxes

AOCI reclassifications, net of tax

 

$

2

 

 

$

1

 

 

$

3

 

 

$

3

 

 

Net income
v3.23.4
Computation of Earnings Per Share (Tables)
 6 Months Ended
Nov. 30, 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 periods ended November 30 was as follows (in millions, except per share amounts):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

898

 

 

$

786

 

 

$

1,975

 

 

$

1,660

 

Weighted-average common shares

 

 

250

 

 

 

255

 

 

 

251

 

 

 

257

 

Basic earnings per common share

 

$

3.59

 

 

$

3.08

 

 

$

7.88

 

 

$

6.46

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocable to common shares(1)

 

$

898

 

 

$

786

 

 

$

1,975

 

 

$

1,660

 

Weighted-average common shares

 

 

250

 

 

 

255

 

 

 

251

 

 

 

257

 

Dilutive effect of share-based awards

 

 

3

 

 

 

1

 

 

 

3

 

 

 

2

 

Weighted-average diluted shares

 

 

253

 

 

 

256

 

 

 

254

 

 

 

259

 

Diluted earnings per common share

 

$

3.55

 

 

$

3.07

 

 

$

7.79

 

 

$

6.41

 

Anti-dilutive options excluded from diluted earnings per
   common share

 

 

6.3

 

 

 

9.5

 

 

 

6.3

 

 

 

7.6

 

(1) Net earnings available to participating securities were immaterial in all periods presented.
v3.23.4
Retirement Plans (Tables)
 6 Months Ended
Nov. 30, 2023
Retirement Plan Tables [Abstract]  
Schedule of Retirement Plan Costs

Our retirement plans costs for the periods ended November 30 were as follows (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Defined benefit pension plans, net

 

$

91

 

 

$

58

 

 

$

182

 

 

$

117

 

Defined contribution plans

 

 

242

 

 

 

228

 

 

 

482

 

 

 

472

 

Postretirement healthcare plans

 

 

21

 

 

 

23

 

 

 

44

 

 

 

46

 

 

 

$

354

 

 

$

309

 

 

$

708

 

 

$

635

 
Schedule of Net Periodic Benefit Cost

Net periodic benefit cost of the pension and postretirement healthcare plans for the periods ended November 30 included the following components (in millions):

 

 

 

Three Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service cost

 

$

136

 

 

$

163

 

 

$

10

 

 

$

10

 

 

$

7

 

 

$

9

 

Other retirement plans expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

340

 

 

 

305

 

 

 

12

 

 

 

8

 

 

 

14

 

 

 

14

 

Expected return on plan assets

 

 

(399

)

 

 

(422

)

 

 

(7

)

 

 

(4

)

 

 

—

 

 

 

—

 

Amortization of prior service credit and other

 

 

(1

)

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

(60

)

 

 

(119

)

 

 

5

 

 

 

4

 

 

 

14

 

 

 

14

 

 

 

$

76

 

 

$

44

 

 

$

15

 

 

$

14

 

 

$

21

 

 

$

23

 

 

 

 

Six Months Ended

 

 

 

U.S. Pension Plans

 

 

International Pension Plans

 

 

Postretirement Healthcare Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service cost

 

$

272

 

 

$

326

 

 

$

20

 

 

$

21

 

 

$

14

 

 

$

18

 

Other retirement plans expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

681

 

 

 

609

 

 

 

22

 

 

 

17

 

 

 

30

 

 

 

28

 

Expected return on plan assets

 

 

(799

)

 

 

(844

)

 

 

(11

)

 

 

(8

)

 

 

—

 

 

 

—

 

Amortization of prior service credit and other

 

 

(3

)

 

 

(4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

(121

)

 

 

(239

)

 

 

11

 

 

 

9

 

 

 

30

 

 

 

28

 

 

 

$

151

 

 

$

87

 

 

$

31

 

 

$

30

 

 

$

44

 

 

$

46

 
v3.23.4
Business Segment Information (Tables)
 6 Months Ended
Nov. 30, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Schedule of Segment Information

The following table provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the periods ended November 30 (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

$

10,254

 

 

$

10,864

 

 

$

20,339

 

 

$

21,991

 

FedEx Ground segment

 

 

8,639

 

 

 

8,393

 

 

 

17,059

 

 

 

16,553

 

FedEx Freight segment

 

 

2,360

 

 

 

2,454

 

 

 

4,651

 

 

 

5,177

 

FedEx Services segment

 

 

65

 

 

 

68

 

 

 

137

 

 

 

138

 

Other and eliminations

 

 

847

 

 

 

1,035

 

 

 

1,660

 

 

 

2,197

 

 

 

$

22,165

 

 

$

22,814

 

 

$

43,846

 

 

$

46,056

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

$

137

 

 

$

341

 

 

$

342

 

 

$

515

 

FedEx Ground segment

 

 

900

 

 

 

598

 

 

 

2,003

 

 

 

1,292

 

FedEx Freight segment

 

 

487

 

 

 

440

 

 

 

968

 

 

 

1,091

 

Corporate, other, and eliminations

 

 

(248

)

 

 

(203

)

 

 

(552

)

 

 

(531

)

 

 

$

1,276

 

 

$

1,176

 

 

$

2,761

 

 

$

2,367

 

 
v3.23.4
Commitments (Tables)
 6 Months Ended
Nov. 30, 2023
Commitments Tables [Abstract]  
Schedule of Purchase Commitments

As of November 30, 2023, our purchase commitments under various contracts for the remainder of 2024 and annually thereafter were as follows (in millions):

 

 

 

Aircraft and Aircraft Related

 

 

Other(1)

 

 

Total

 

2024 (remainder)

 

$

485

 

 

$

333

 

 

$

818

 

2025

 

 

1,626

 

 

 

659

 

 

 

2,285

 

2026

 

 

591

 

 

 

498

 

 

 

1,089

 

2027

 

 

290

 

 

 

226

 

 

 

516

 

2028

 

 

264

 

 

 

138

 

 

 

402

 

Thereafter

 

 

1,646

 

 

 

85

 

 

 

1,731

 

Total

 

$

4,902

 

 

$

1,939

 

 

$

6,841

 

 

(1)
Primarily information technology and advertising.
Schedule of Aircraft Purchase Commitments The following table is a summary of the key aircraft we are committed to purchase as of November 30, 2023 with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2024 (remainder)

 

 

9

 

 

 

5

 

 

 

5

 

 

 

—

 

 

 

19

 

2025

 

 

12

 

 

 

8

 

 

 

10

 

 

 

2

 

 

 

32

 

2026

 

 

14

 

 

 

1

 

 

 

2

 

 

 

—

 

 

 

17

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

35

 

 

 

14

 

 

 

17

 

 

 

2

 

 

 

68

 
Summary of Future Minimum Lease Payments, Operating and Finance Leases

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year as of November 30, 2023 is as follows (in millions):

 

 

 

Aircraft
and Related
Equipment

 

 

Facilities
and Other

 

 

Total
Operating
Leases

 

 

Finance Leases

 

 

Total Leases

 

2024 (remainder)

 

$

64

 

 

$

1,364

 

 

$

1,428

 

 

$

278

 

 

$

1,706

 

2025

 

 

118

 

 

 

2,912

 

 

 

3,030

 

 

 

38

 

 

 

3,068

 

2026

 

 

115

 

 

 

2,607

 

 

 

2,722

 

 

 

30

 

 

 

2,752

 

2027

 

 

114

 

 

 

2,306

 

 

 

2,420

 

 

 

22

 

 

 

2,442

 

2028

 

 

114

 

 

 

1,983

 

 

 

2,097

 

 

 

21

 

 

 

2,118

 

Thereafter

 

 

243

 

 

 

8,867

 

 

 

9,110

 

 

 

649

 

 

 

9,759

 

Total lease payments

 

 

768

 

 

 

20,039

 

 

 

20,807

 

 

 

1,038

 

 

 

21,845

 

Less imputed interest

 

 

(96

)

 

 

(3,056

)

 

 

(3,152

)

 

 

(332

)

 

 

(3,484

)

Present value of lease liability

 

$

672

 

 

$

16,983

 

 

$

17,655

 

 

$

706

 

 

$

18,361

 
v3.23.4
Supplemental Cash Flow Information (Tables)
 6 Months Ended
Nov. 30, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow

Cash paid for interest expense and income taxes for the six-month periods ended November 30 was as follows (in millions):

 

 

 

2023

 

 

2022

 

Cash payments for:

 

 

 

 

 

 

Interest (net of capitalized interest)

 

$

357

 

 

$

333

 

Income taxes

 

$

843

 

 

$

638

 

Income tax refunds received

 

 

(82

)

 

 

(48

)

Cash tax (refunds)/payments, net

 

$

761

 

 

$

590

 
v3.23.4
General - Additional Information (Details)
$ / shares in Units, € in Millions, shares in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 29 Months Ended
Nov. 17, 2023
$ / shares
Jan. 31, 2021
Employee
Nov. 30, 2023
USD ($)
$ / shares
shares
Nov. 30, 2022
USD ($)
$ / shares
shares
Nov. 30, 2023
USD ($)
$ / shares
shares
Nov. 30, 2022
USD ($)
$ / shares
shares
May 31, 2023
USD ($)
Nov. 30, 2023
EUR (€)
Dec. 16, 2021
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]                  
Gross contract assets related to in-transit shipments     $ 828.0   $ 828.0   $ 686.0    
Contract assets net of deferred unearned revenue     591.0   591.0   484.0    
Contract liabilities related to advance payments from customers     21.0   21.0   19.0    
Stock-based compensation     40.0 $ 40.0 96.0 $ 108.0      
Business realignment costs       0.0   14.0 430.0    
Number of employees left or voluntarily leaving | Employee   5,000              
Business realignment costs, net of tax           $ 11.0      
Business realignment costs per diluted share | $ / shares           $ 0.04      
Business optimization costs     145.0 36.0 250.0 $ 60.0      
Business optimization costs, net of tax     $ 110.0 $ 27.0 $ 191.0 $ 46.0      
Business optimization costs per diluted share | $ / shares     $ 0.44 $ 0.11 $ 0.75 $ 0.18      
Denominated debt as a net investment hedge | €               € 165  
Suppliers approved to sell outstanding payment obligations     $ 76.0   $ 76.0   $ 76.0    
Debt securities     $ 100.0   $ 100.0        
Debt instrument effective maturity start range maximum value         less than one year        
Number of shares repurchased | shares     2.0 7.9 3.9 7.9      
Payments for repurchase of common stock         $ 1,000.0 $ 1,500.0      
Dividends payable, date declared Nov. 17, 2023                
Dividends payable amount per share | $ / shares $ 1.26                
Dividends payable, date to be paid Jan. 02, 2024                
Dividends payable, date of record Dec. 11, 2023                
ASU 2022-04                  
Organization Consolidation And Presentation Of Financial Statements [Line Items]                  
Change in accounting principle, accounting standards update, adopted     true   true     true  
Change in accounting principle, accounting standards update, adoption date     Jun. 01, 2023   Jun. 01, 2023     Jun. 01, 2023  
Change in accounting principle, accounting standards update, immaterial effect     true   true     true  
2022 Repurchase Program                  
Organization Consolidation And Presentation Of Financial Statements [Line Items]                  
Stock repurchase program number of shares authorized to be repurchased, amount                 $ 5,000.0
Stock repurchase program number of shares authorized to be repurchased, remaining available amount     $ 1.6   $ 1.6        
Accelerated Share Repurchase Agreement                  
Organization Consolidation And Presentation Of Financial Statements [Line Items]                  
Number of shares repurchased | shares     2.0   3.9 7.9      
Treasury stock acquired, average cost price per share | $ / shares     $ 256.24   $ 256.33 $ 151.46      
Payments for repurchase of common stock     $ 500.0   $ 1,000.0 $ 1,200.0      
Maximum [Member]                  
Organization Consolidation And Presentation Of Financial Statements [Line Items]                  
Debt securities maturities period         3 years        
v3.23.4
General - Schedule of Revenue by Service Type (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues $ 22,165 $ 22,814 $ 43,846 $ 46,056
Operating Segments [Member] | FedEx Express Segment [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 10,254 10,864 20,339 21,991
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 8,377 8,534 16,609 17,240
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. overnight box [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 2,158 2,237 4,346 4,553
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. overnight envelope [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 447 474 932 999
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | U.S. deferred [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 1,208 1,253 2,395 2,540
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | Total U.S [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 3,813 3,964 7,673 8,092
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International priority [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 2,390 2,823 4,717 5,720
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International economy [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 1,088 711 2,109 1,418
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | Total international export package revenue [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 3,478 3,534 6,826 7,138
Operating Segments [Member] | FedEx Express Segment [Member] | Package Revenue [Member] | International domestic [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues [1] 1,086 1,036 2,110 2,010
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 1,604 2,022 3,196 4,124
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | Total U.S [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 584 784 1,166 1,580
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International priority [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 569 811 1,122 1,699
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International economy [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 422 388 847 765
Operating Segments [Member] | FedEx Express Segment [Member] | Total freight revenue [Member] | International Airfreight [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 29 39 61 80
Operating Segments [Member] | FedEx Express Segment [Member] | Other [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 273 308 534 627
Operating Segments [Member] | FedEx Ground Segment [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 8,639 8,393 17,059 16,553
Operating Segments [Member] | FedEx Freight Segment [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 2,360 2,454 4,651 5,177
Operating Segments [Member] | FedEx Services Segment [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues 65 68 137 138
Other and eliminations [Member]        
Entity Wide Information Revenue From External Customer [Line Items]        
Revenues [2] $ 847 $ 1,035 $ 1,660 $ 2,197
[1] International domestic revenue relates to our international intra-country operations.
[2] Includes the FedEx Office and Print Services, Inc. (“FedEx Office”), FedEx Logistics, Inc. (“FedEx Logistics”), and FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segments.
v3.23.4
Credit Losses - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
May 31, 2023
Credit Loss [Abstract]          
Credit losses $ 113 $ 180 $ 216 $ 425  
Allowance for credit losses $ 426   $ 426   $ 472
v3.23.4
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Accumulated Other Comprehensive Income Loss [Line Items]        
Beginning Balance     $ 26,088  
Translation adjustments $ 28 $ (70)   $ (279)
Ending Balance 26,766 24,115 26,766 24,115
Foreign Currency Translation Loss [Member]        
Accumulated Other Comprehensive Income Loss [Line Items]        
Beginning Balance (1,390) (1,357) (1,362) (1,148)
Translation adjustments 28 (70)   (279)
Ending Balance (1,362) (1,427) (1,362) (1,427)
Retirement Plans Adjustments [Member]        
Accumulated Other Comprehensive Income Loss [Line Items]        
Beginning Balance 34 43 35 45
Prior service credit arising during period 36   36  
Reclassifications from AOCI (2) (1) (3) (3)
Ending Balance 68 42 68 42
Accumulated Other Comprehensive (Loss) [Member]        
Accumulated Other Comprehensive Income Loss [Line Items]        
Beginning Balance (1,356) (1,314) (1,327) (1,103)
Ending Balance $ (1,294) $ (1,385) $ (1,294) $ (1,385)
v3.23.4
Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]        
Other retirement plans income (expense) $ 2 $ 2 $ 3 $ 4
Provision for income taxes   (1)   (1)
Net income $ 2 $ 1 $ 3 $ 3
v3.23.4
Financing Arrangements - Additional Information (Details)
 6 Months Ended
Nov. 30, 2023
USD ($)
AirCraft
May 31, 2023
USD ($)
Line Of Credit Facility [Line Items]    
Number of Boeing aircraft | AirCraft 19  
Net book value of Boeing aircraft $ 1,700,000,000  
Financial covenant terms ratio 3.50%  
Financial covenant compliance ratio 2.00%  
Long term debt, including current maturities and exclusive of finance leases carrying value $ 19,800,000,000 $ 19,800,000,000
Long term debt, including current maturities and exclusive of finance leases fair value $ 17,600,000,000 $ 17,500,000,000
Long-term debt weighted-average interest rate 3.50%  
Five-Year Credit Agreement [Member]    
Line Of Credit Facility [Line Items]    
Line of credit facility, term 5 years  
Line of credit facility maximum borrowing capacity $ 2,000,000,000  
Line of credit facility, expiration date 2026-03  
Letter of credit maximum sublimit amount $ 250,000,000  
Letter of credit outstanding sublimit unused amount $ 250,000,000  
Three Year Credit Agreement [Member]    
Line Of Credit Facility [Line Items]    
Line of credit facility, term 3 years  
Line of credit facility maximum borrowing capacity $ 1,500,000,000  
Line of credit facility, expiration date 2025-03  
Credit Agreement [Member]    
Line Of Credit Facility [Line Items]    
Line of credit outstanding $ 0  
Commercial paper outstanding 0  
1.875% due in February 2034 [Member]    
Line Of Credit Facility [Line Items]    
Debt instrument, face amount $ 970,000,000  
Fixed interest rate 1.875%  
Debt instrument, maturity date 2034-02  
v3.23.4
Computation of Earnings Per Share - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Basic earnings per common share:        
Net earnings allocable to common shares [1] $ 898 $ 786 $ 1,975 $ 1,660
Weighted-average common shares 250.0 255.0 251.0 257.0
Basic earnings per common share $ 3.59 $ 3.08 $ 7.88 $ 6.46
Diluted earnings per common share:        
Net earnings allocable to common shares [1] $ 898 $ 786 $ 1,975 $ 1,660
Weighted-average common shares 250.0 255.0 251.0 257.0
Dilutive effect of share-based awards 3.0 1.0 3.0 2.0
Weighted-average diluted shares 253.0 256.0 254.0 259.0
Diluted earnings per common share $ 3.55 $ 3.07 $ 7.79 $ 6.41
Anti-dilutive options excluded from diluted earnings per common share 6.3 9.5 6.3 7.6
[1] Net earnings available to participating securities were immaterial in all periods presented.
v3.23.4
Retirement Plans - Schedule of Retirement Plan Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]        
Defined benefit pension plans, net $ 91 $ 58 $ 182 $ 117
Defined contribution plans 242 228 482 472
Postretirement healthcare plans 21 23 44 46
Retirement plans costs $ 354 $ 309 $ 708 $ 635
v3.23.4
Retirement Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Pension Plans [Member] | U.S. Plans [Member]        
Net Periodic Benefit Cost        
Service cost $ 136 $ 163 $ 272 $ 326
Other retirement plans expense (income):        
Interest cost 340 305 681 609
Expected return on plan assets (399) (422) (799) (844)
Amortization of prior service credit and other (1) (2) (3) (4)
Other retirement plans (income) expense (60) (119) (121) (239)
Net periodic benefit cost 76 44 151 87
Pension Plans [Member] | International Pension Plans [Member]        
Net Periodic Benefit Cost        
Service cost 10 10 20 21
Other retirement plans expense (income):        
Interest cost 12 8 22 17
Expected return on plan assets (7) (4) (11) (8)
Other retirement plans (income) expense 5 4 11 9
Net periodic benefit cost 15 14 31 30
Postretirement Healthcare Plans [Member]        
Net Periodic Benefit Cost        
Service cost 7 9 14 18
Other retirement plans expense (income):        
Interest cost 14 14 30 28
Other retirement plans (income) expense 14 14 30 28
Net periodic benefit cost $ 21 $ 23 $ 44 $ 46
v3.23.4
Retirement Plans - Additional Information (Details) - USD ($)
 6 Months Ended
Nov. 30, 2023
May 31, 2024
Voluntary Contribution [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan additional contributions by employer for remainder of current fiscal $ 400,000,000  
Voluntary Contribution [Member] | U.S. Pension Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan contributions by employer $ 400,000,000  
Pension Plans [Member] | U.S. Pension Plans [Member] | Forecast [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined benefit plan required future employer contributions   $ 0
v3.23.4
Business Segment Information - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Nov. 30, 2023
Nov. 30, 2022
Segment Reporting Information [Line Items]        
Revenue $ 22,165 $ 22,814 $ 43,846 $ 46,056
Operating income (loss) 1,276 1,176 2,761 2,367
Operating Segments [Member] | FedEx Express Segment [Member]        
Segment Reporting Information [Line Items]        
Revenue 10,254 10,864 20,339 21,991
Operating income (loss) 137 341 342 515
Operating Segments [Member] | FedEx Ground Segment [Member]        
Segment Reporting Information [Line Items]        
Revenue 8,639 8,393 17,059 16,553
Operating income (loss) 900 598 2,003 1,292
Operating Segments [Member] | FedEx Freight Segment [Member]        
Segment Reporting Information [Line Items]        
Revenue 2,360 2,454 4,651 5,177
Operating income (loss) 487 440 968 1,091
Operating Segments [Member] | FedEx Services Segment [Member]        
Segment Reporting Information [Line Items]        
Revenue 65 68 137 138
Corporate, Other and Eliminations [Member]        
Segment Reporting Information [Line Items]        
Revenue 847 1,035 1,660 2,197
Operating income (loss) $ (248) $ (203) $ (552) $ (531)
v3.23.4
Commitments - Schedule of Purchase Commitments (Details)
$ in Millions
Nov. 30, 2023
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 (remainder) $ 818
2025 2,285
2026 1,089
2027 516
2028 402
Thereafter 1,731
Total 6,841
Aircraft and Related Equipment Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 (remainder) 485
2025 1,626
2026 591
2027 290
2028 264
Thereafter 1,646
Total 4,902
Other Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
2024 (remainder) 333 [1]
2025 659 [1]
2026 498 [1]
2027 226 [1]
2028 138 [1]
Thereafter 85 [1]
Total $ 1,939 [1]
[1] Primarily information technology and advertising.
v3.23.4
Commitments - Additional Information (Details)
$ in Millions
 6 Months Ended
Nov. 30, 2023
USD ($)
Other Aircraft Commitments Disclosure [Abstract]  
Deposit and progress payments $ 576
Lessee Disclosure [Abstract]  
Additional leases not yet commenced, undiscounted future payments $ 1,700
Minimum [Member]  
Lessee Disclosure [Abstract]  
Operating lease commencement date 2024
Maximum [Member]  
Lessee Disclosure [Abstract]  
Operating lease commencement date 2027
v3.23.4
Commitments - Schedule of Aircraft Purchase Commitments (Details)
 6 Months Ended
Nov. 30, 2023
AirCraft
Schedule of Aircraft Commitments [Line Items]  
2024 (remainder) 19
2025 32
2026 17
Total 68
Cessna SkyCourier 408 [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 (remainder) 9
2025 12
2026 14
Total 35
ATR 72-600F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 (remainder) 5
2025 8
2026 1
Total 14
B767F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2024 (remainder) 5
2025 10
2026 2
Total 17
B777F [Member]  
Schedule of Aircraft Commitments [Line Items]  
2025 2
Total 2
v3.23.4
Commitments - Summary of Future Minimum Lease Payments, Operating and Finance Leases (Details)
$ in Millions
Nov. 30, 2023
USD ($)
Schedule Of Future Minimum Lease Payments For Operating Leases And Finance Leases [Line Items]  
2024 (remainder) $ 1,706
2025 3,068
2026 2,752
2027 2,442
2028 2,118
Thereafter 9,759
Total lease payments 21,845
Less imputed interest (3,484)
Present value of lease liability 18,361
Operating Leases  
2024 (remainder) 1,428
2025 3,030
2026 2,722
2027 2,420
2028 2,097
Thereafter 9,110
Total lease payments 20,807
Less imputed interest (3,152)
Present value of lease liability 17,655
Finance Leases  
2024 (remainder) 278
2025 38
2026 30
2027 22
2028 21
Thereafter 649
Total lease payments 1,038
Less imputed interest (332)
Present value of lease liability 706
Aircraft and Related Equipment [Member]  
Operating Leases  
2024 (remainder) 64
2025 118
2026 115
2027 114
2028 114
Thereafter 243
Total lease payments 768
Less imputed interest (96)
Present value of lease liability 672
Facilities and Other [Member]  
Operating Leases  
2024 (remainder) 1,364
2025 2,912
2026 2,607
2027 2,306
2028 1,983
Thereafter 8,867
Total lease payments 20,039
Less imputed interest (3,056)
Present value of lease liability $ 16,983
v3.23.4
Contingencies - Additional Information (Details) - USD ($)
$ in Millions
 6 Months Ended
Oct. 25, 2022
Nov. 30, 2023
Loss Contingencies [Line Items]    
Loss contingency, approximate damages awarded value $ 1.0  
Loss contingency, punitive damages value 365.0  
Loss Contingency, approxiate final judgement amount $ 366.0  
Loss contingency self-insured retention and insurance deductible   $ 5.0
Environmental matters threshold   1.0
Maximum [Member]    
Loss Contingencies [Line Items]    
Loss Contingency insurance coverages for reimbursement   $ 75.0
v3.23.4
Supplemental Cash Flow Information - Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 6 Months Ended
Nov. 30, 2023
Nov. 30, 2022
Supplemental Cash Flow Information [Abstract]    
Interest (net of capitalized interest) $ 357 $ 333
Income taxes 843 638
Income tax refunds received (82) (48)
Cash tax (refunds)/payments, net $ 761 $ 590