8-K
FEDEX CORP (FDX)
8-K
2024-09-03
For: 2024-09-03
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 3, 2024
FedEx Corporation
(Exact name of registrant as specified in its charter)
Commission File Number 1-15829
| Delaware | 62-1721435 |
|---|---|
| (State or other jurisdiction of | (IRS Employer |
| incorporation) | Identification No.) |
| 942 South Shady Grove Road, Memphis, Tennessee | 38120 |
| (Address of principal executive offices) | (ZIP Code) |
Registrant’s telephone number, including area code: (901) 818-7500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.10 per share | FDX | New York Stock Exchange |
| 0.450% Notes due 2025 | FDX 25A | New York Stock Exchange |
| 1.625% Notes due 2027 | FDX 27 | New York Stock Exchange |
| 0.450% Notes due 2029 | FDX 29A | New York Stock Exchange |
| 1.300% Notes due 2031 | FDX 31 | New York Stock Exchange |
| 0.950% Notes due 2033 | FDX 33 | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY NOTE
The information in this Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SECTION 2. FINANCIAL INFORMATION.
Item 2.02. Results of Operations and Financial Condition.
In the fourth quarter of fiscal 2023, FedEx Corporation (“FedEx”) announced one FedEx, a consolidation plan to bring FedEx Ground Package System, Inc. (“FedEx Ground”) and FedEx Corporate Services, Inc. (“FedEx Services”) into Federal Express Corporation (“Federal Express”), becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. On June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express. FedEx Freight, Inc. (“FedEx Freight”) continues to provide less-than-truckload freight transportation services as a separate subsidiary. Beginning in the first quarter of fiscal 2025, Federal Express and FedEx Freight will represent our major service lines and constitute our reportable segments. FedEx Custom Critical, Inc. (“FedEx Custom Critical”) will be included in the FedEx Freight segment instead of the Federal Express segment beginning in fiscal 2025.
Attached as Exhibit 99.1 and incorporated herein by reference are annual and quarterly financial and operating results for fiscal 2024 and fiscal 2023 recast to reflect this presentation.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Unaudited historical financial and operating results recast for one FedEx segment presentation. |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FedEx Corporation | ||
|---|---|---|
| Date: September 3, 2024 | By: | /s/ Guy M. Erwin II |
| Guy M. Erwin II | ||
| Corporate Vice President – | ||
| Chief Accounting Officer |
EX-99.1
Exhibit 99.1
| FedEx Corporation | |||||
|---|---|---|---|---|---|
| Annual Consolidated Statements of Income | |||||
| FY 2023 – FY 2024 | |||||
| Years ended May 31 | |||||
| In millions, except EPS | |||||
| FY 2024 | |||||
| Revenue: | |||||
| Federal Express segment | 75,884 | $ | 74,663 | ||
| FedEx Freight segment | 10,084 | 9,429 | |||
| Other and eliminations | 4,187 | 3,601 | |||
| Total Revenue | 90,155 | 87,693 | |||
| Operating Expenses: | |||||
| Salaries and employee benefits | 31,019 | 30,961 | |||
| Purchased transportation | 21,790 | 20,921 | |||
| Rentals and landing fees | 4,738 | 4,571 | |||
| Depreciation and amortization | 4,176 | 4,287 | |||
| Fuel | 5,909 | 4,710 | |||
| Maintenance and repairs | 3,357 | 3,291 | |||
| Business optimization and realignment costs1 | 309 | 582 | |||
| Goodwill and other asset impairment charges2 | 117 | 157 | |||
| Other3 | 13,828 | 12,654 | |||
| Total Operating Expenses | 85,243 | 82,134 | |||
| Operating Income: | |||||
| Federal Express segment | 4,193 | 4,819 | |||
| FedEx Freight segment | 1,936 | 1,821 | |||
| Corporate, other, and eliminations | (1,217 | ) | (1,081 | ) | |
| Total Operating Income | 4,912 | 5,559 | |||
| Other Income: | |||||
| Interest, net | (496 | ) | (375 | ) | |
| Other retirement plans income4 | 1,054 | 722 | |||
| Other, net | (107 | ) | (70 | ) | |
| Total Other Income | 451 | 277 | |||
| Income Before Income Taxes | 5,363 | 5,836 | |||
| Provision for Income Taxes5 | 1,391 | 1,505 | |||
| Net Income | 3,972 | $ | 4,331 | ||
| Basic Earnings Per Share | 15.60 | $ | 17.41 | ||
| Weighted Avg. Common Shares | 254 | 248 | |||
| Diluted Earnings Per Share | 15.48 | $ | 17.21 | ||
| Weighted Avg. Diluted Shares | 256 | 251 | |||
| SELECTED STATISTICS | |||||
| Operating Margin | 5.4 | % | 6.3 | % | |
| Pre-tax Margin | 5.9 | % | 6.7 | % | |
| Return on Assets | 4.6 | % | 5.0 | % | |
| Return on Equity | 15.5 | % | 16.1 | % | |
| Dividends Paid Per Common Share | 4.60 | $ | 5.04 | ||
| 1 - FY24 includes 582 million (444 million, net of tax, or 1.77 per diluted share) associated with our business optimization strategy announced in 2023. | |||||
| 2 - FY24 includes asset impairment charges of 157 million (120 million, net of tax, or 0.48 per diluted share) at the Federal Express segment associated with the decision to permanently retire certain aircraft and related engines. | |||||
| 3 - FY24 includes 57 million (44 million, net of tax, or 0.17 per diluted share) in connection with insurance recoveries related to a legal matter. These amounts are included in "Corporate, other, and eliminations." | |||||
| 4 - FY24 includes a noncash net gain of 561 million (426 million, net of tax, or 1.69 per diluted share) associated with our year-end mark-to-market retirement plans accounting adjustment. | |||||
| 5 - FY24 includes 54 million (0.21 per diluted share) associated with the remeasurement of state deferred income taxes under the one FedEx structure. | |||||
| Unaudited. Differences may result due to rounding. |
All values are in US Dollars.
Only footnotes pertaining to FY24 are displayed at the bottom of pages in this exhibit. For supplemental information related to FY23, please see informational notes appendix.
| FedEx Corporation | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarterly Consolidated Statements of Income | |||||||||||||||||||||||
| FY 2023 – FY 2024 | |||||||||||||||||||||||
| Year ended May 31 | |||||||||||||||||||||||
| In millions, except EPS | |||||||||||||||||||||||
| FY 2024 | |||||||||||||||||||||||
| SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | |||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Federal Express segment | 19,184 | $ | 19,157 | $ | 18,919 | $ | 18,624 | $ | 18,426 | $ | 18,773 | $ | 18,672 | $ | 18,792 | ||||||||
| FedEx Freight segment | 2,849 | 2,573 | 2,293 | 2,369 | 2,385 | 2,452 | 2,205 | 2,387 | |||||||||||||||
| Other and eliminations | 1,209 | 1,084 | 957 | 937 | 870 | 940 | 861 | 930 | |||||||||||||||
| Total revenue | 23,242 | 22,814 | 22,169 | 21,930 | 21,681 | 22,165 | 21,738 | 22,109 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and employee benefits | 7,859 | 7,792 | 7,817 | 7,551 | 7,785 | 7,833 | 7,693 | 7,650 | |||||||||||||||
| Purchased transportation | 5,767 | 5,665 | 5,402 | 4,956 | 5,036 | 5,395 | 5,345 | 5,145 | |||||||||||||||
| Rentals and landing fees | 1,159 | 1,195 | 1,205 | 1,179 | 1,151 | 1,138 | 1,145 | 1,137 | |||||||||||||||
| Depreciation and amortization | 1,024 | 1,046 | 1,031 | 1,075 | 1,071 | 1,040 | 1,072 | 1,104 | |||||||||||||||
| Fuel | 1,822 | 1,593 | 1,350 | 1,144 | 1,101 | 1,328 | 1,140 | 1,141 | |||||||||||||||
| Maintenance and repairs | 904 | 882 | 789 | 782 | 824 | 854 | 804 | 809 | |||||||||||||||
| Business optimization and realignment costs1 | 38 | 36 | 123 | 112 | 105 | 145 | 114 | 218 | |||||||||||||||
| Goodwill and other asset impairment charges2 | — | — | — | 117 | — | — | — | 157 | |||||||||||||||
| Other3 | 3,478 | 3,429 | 3,410 | 3,511 | 3,123 | 3,156 | 3,182 | 3,193 | |||||||||||||||
| Total operating expenses | 22,051 | 21,638 | 21,127 | 20,427 | 20,196 | 20,889 | 20,495 | 20,554 | |||||||||||||||
| Operating income: | |||||||||||||||||||||||
| Federal Express segment | 862 | 937 | 962 | 1,432 | 1,306 | 1,035 | 1,173 | 1,305 | |||||||||||||||
| FedEx Freight segment | 657 | 442 | 387 | 450 | 482 | 491 | 341 | 507 | |||||||||||||||
| Corporate, other, and eliminations | (328 | ) | (203 | ) | (307 | ) | (379 | ) | (303 | ) | (250 | ) | (271 | ) | (257 | ) | |||||||
| Total operating income | 1,191 | 1,176 | 1,042 | 1,503 | 1,485 | 1,276 | 1,243 | 1,555 | |||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest, net | (142 | ) | (127 | ) | (122 | ) | (105 | ) | (91 | ) | (97 | ) | (91 | ) | (96 | ) | |||||||
| Other retirement plans income4 | 101 | 101 | 102 | 750 | 39 | 41 | 40 | 602 | |||||||||||||||
| Other, net | 4 | (91 | ) | — | (20 | ) | (10 | ) | (18 | ) | (9 | ) | (33 | ) | |||||||||
| Total other (expense) Income | (37 | ) | (117 | ) | (20 | ) | 625 | (62 | ) | (74 | ) | (60 | ) | 473 | |||||||||
| Income before income taxes | 1,154 | 1,059 | 1,022 | 2,128 | 1,423 | 1,202 | 1,183 | 2,028 | |||||||||||||||
| Provision for income taxes5 | 279 | 271 | 251 | 590 | 345 | 302 | 304 | 554 | |||||||||||||||
| Net income | 875 | $ | 788 | $ | 771 | $ | 1,538 | $ | 1,078 | $ | 900 | $ | 879 | $ | 1,474 | ||||||||
| Basic earnings per share | 3.37 | $ | 3.08 | $ | 3.07 | $ | 6.10 | $ | 4.28 | $ | 3.59 | $ | 3.55 | $ | 6.00 | ||||||||
| Weighted avg. common shares | 259 | 255 | 251 | 252 | 251 | 250 | 247 | 245 | |||||||||||||||
| Diluted earnings per share | 3.33 | $ | 3.07 | $ | 3.05 | $ | 6.05 | $ | 4.23 | $ | 3.55 | $ | 3.51 | $ | 5.94 | ||||||||
| Weighted avg. diluted shares | 262 | 256 | 253 | 254 | 254 | 253 | 250 | 248 | |||||||||||||||
| Selected statistics | |||||||||||||||||||||||
| Operating margin | 5.1 | % | 5.2 | % | 4.7 | % | 6.9 | % | 6.8 | % | 5.8 | % | 5.7 | % | 7.0 | % | |||||||
| Pre-tax margin | 5.0 | % | 4.6 | % | 4.6 | % | 9.7 | % | 6.6 | % | 5.4 | % | 5.4 | % | 9.2 | % | |||||||
| Dividends paid per common share | 1.15 | $ | 1.15 | $ | 1.15 | $ | 1.15 | $ | 1.26 | $ | 1.26 | $ | 1.26 | $ | 1.26 | ||||||||
| 1 - Fourth quarter 2024 includes business optimization costs of 218 million (166 million, net of tax, or 0.67 per diluted share) associated with our business optimization strategy announced in 2023. Third quarter 2024 includes business optimization costs of 114 million (87 million, net of tax, or 0.35 per diluted share). Second quarter 2024 includes business optimization costs of 145 million (110 million, net of tax, or 0.44 per diluted share). First quarter 2024 includes business optimization costs of 105 million (81 million, net of tax, or 0.32 per diluted share). | |||||||||||||||||||||||
| 2- Fourth quarter 2024 includes asset impairment charges of 157 million (120 million, net of tax, or 0.48 per diluted share) at the Federal Express segment associated with the decision to permanently retire certain aircraft and related engines. | |||||||||||||||||||||||
| 3 - Fourth quarter 2024 includes 57 million (44 million, net of tax, or 0.18 per diluted share) in connection with insurance recoveries related to a legal matter. These amounts are included in "Corporate, other, and eliminations." | |||||||||||||||||||||||
| 4 - Fourth quarter 2024 includes a noncash net gain of 561 million (426 million, net of tax, or 1.72 per diluted share) associated with our year-end mark-to-market retirement plans accounting adjustment. | |||||||||||||||||||||||
| 5 - Fourth quarter 2024 includes 54 million (0.22 per diluted share) associated with the remeasurement of state deferred income taxes under the one FedEx structure. | |||||||||||||||||||||||
| Unaudited. Differences may result due to rounding. |
All values are in US Dollars.
| FedEx Corporation | |||||
|---|---|---|---|---|---|
| Capital Expenditures | |||||
| FY 2023 – FY 2024 | |||||
| Years ended May 31 | |||||
| In millions | |||||
| FY 2023 | FY 2024 | ||||
| By Asset Type | |||||
| Aircraft and related equipment | $ | 1,684 | $ | 1,627 | |
| Package handling and ground support equipment | 1,851 | 974 | |||
| Vehicles and trailers | 719 | 709 | |||
| Information technology | 802 | 656 | |||
| Facilities and other | 1,118 | 1,210 | |||
| Total | $ | 6,174 | $ | 5,176 | |
| By Segment | |||||
| Federal Express segment | $ | 5,480 | $ | 4,591 | |
| FedEx Freight segment | 557 | 461 | |||
| Other | 137 | 124 | |||
| Total | $ | 6,174 | $ | 5,176 | |
| Unaudited. Differences may result due to rounding. | |||||
| Federal Express Segment | |||||
| --- | --- | --- | --- | --- | --- |
| Annual Consolidated Statements of Income | |||||
| FY 2023 – FY 2024 | |||||
| Years ended May 31 | |||||
| In millions | |||||
| FY 2024 | |||||
| Revenue: | |||||
| Package: | |||||
| U.S. priority | 10,896 | $ | 10,543 | ||
| U.S. deferred | 5,126 | 4,926 | |||
| U.S. ground | 32,352 | 32,981 | |||
| Total U.S. domestic package revenue | 48,374 | 48,450 | |||
| International priority | 10,938 | 9,454 | |||
| International economy | 3,307 | 4,653 | |||
| Total international export package revenue | 14,245 | 14,107 | |||
| International domestic1 | 4,552 | 4,659 | |||
| Total package revenue | 67,171 | 67,216 | |||
| Freight: | |||||
| U.S. | 2,883 | 2,391 | |||
| International priority | 3,059 | 2,205 | |||
| International economy | 1,719 | 1,874 | |||
| Total freight revenue | 7,661 | 6,470 | |||
| Other | 1,052 | 977 | |||
| Total revenue | 75,884 | 74,663 | |||
| Operating expenses: | |||||
| Salaries and employee benefits | 24,523 | 24,606 | |||
| Purchased transportation | 19,677 | 19,330 | |||
| Rentals and landing fees | 4,035 | 3,863 | |||
| Depreciation and amortization | 3,655 | 3,754 | |||
| Fuel | 5,157 | 4,137 | |||
| Maintenance and repairs | 2,910 | 2,848 | |||
| Asset impairment charges2 | 70 | 157 | |||
| Business optimization and realignment costs3 | 47 | 251 | |||
| Intercompany allocations | (689 | ) | (684 | ) | |
| Other | 12,306 | 11,582 | |||
| Total operating expenses | 71,691 | 69,844 | |||
| Operating income | 4,193 | $ | 4,819 | ||
| Operating margin | 5.5 | % | 6.5 | % | |
| 1 - International domestic revenue relates to our international intra-country operations. | |||||
| 2 - FY24 includes asset impairment charges of 157 million associated with the decision to permanently retire certain aircraft and related engines. | |||||
| 3 - FY24 includes business optimization costs of 251 million associated with our business optimization strategy announced in 2023. | |||||
| Unaudited. Differences may result due to rounding. |
All values are in US Dollars.
| Federal Express Segment | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarterly Consolidated Statements of Income | |||||||||||||||||||||||
| FY 2023 – FY 2024 | |||||||||||||||||||||||
| Year ended May 31 | |||||||||||||||||||||||
| In millions | |||||||||||||||||||||||
| FY 2024 | |||||||||||||||||||||||
| SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | |||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Package: | |||||||||||||||||||||||
| U.S. priority | 2,841 | $ | 2,711 | $ | 2,642 | $ | 2,702 | $ | 2,673 | $ | 2,605 | $ | 2,595 | $ | 2,670 | ||||||||
| U.S. deferred | 1,287 | 1,253 | 1,346 | 1,240 | 1,187 | 1,207 | 1,316 | 1,216 | |||||||||||||||
| U.S. ground | 7,870 | 8,103 | 8,367 | 8,012 | 8,133 | 8,309 | 8,363 | 8,176 | |||||||||||||||
| Total U.S. domestic package revenue | 11,998 | 12,067 | 12,355 | 11,954 | 11,993 | 12,121 | 12,274 | 12,062 | |||||||||||||||
| International priority | 2,897 | 2,822 | 2,566 | 2,653 | 2,327 | 2,390 | 2,317 | 2,420 | |||||||||||||||
| International economy | 808 | 812 | 791 | 896 | 1,117 | 1,183 | 1,107 | 1,246 | |||||||||||||||
| Total international export package revenue | 3,705 | 3,634 | 3,357 | 3,549 | 3,444 | 3,573 | 3,424 | 3,666 | |||||||||||||||
| International domestic1 | 1,106 | 1,166 | 1,128 | 1,152 | 1,140 | 1,213 | 1,139 | 1,167 | |||||||||||||||
| Total package revenue | 16,809 | 16,867 | 16,840 | 16,655 | 16,577 | 16,907 | 16,837 | 16,895 | |||||||||||||||
| Freight: | |||||||||||||||||||||||
| U.S. | 790 | 777 | 715 | 601 | 577 | 577 | 641 | 596 | |||||||||||||||
| International priority | 887 | 811 | 688 | 673 | 553 | 568 | 520 | 564 | |||||||||||||||
| International economy | 429 | 440 | 414 | 436 | 472 | 470 | 438 | 494 | |||||||||||||||
| Total freight revenue | 2,106 | 2,028 | 1,817 | 1,710 | 1,602 | 1,615 | 1,599 | 1,654 | |||||||||||||||
| Other | 269 | 262 | 262 | 259 | 247 | 251 | 236 | 243 | |||||||||||||||
| Total revenue | 19,184 | 19,157 | 18,919 | 18,624 | 18,426 | 18,773 | 18,672 | 18,792 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and employee benefits | 6,159 | 6,129 | 6,247 | 5,988 | 6,171 | 6,208 | 6,141 | 6,086 | |||||||||||||||
| Purchased transportation | 5,049 | 5,120 | 4,952 | 4,556 | 4,677 | 4,980 | 4,954 | 4,719 | |||||||||||||||
| Rentals and landing fees | 984 | 1,019 | 1,031 | 1,001 | 975 | 963 | 968 | 957 | |||||||||||||||
| Depreciation and amortization | 885 | 909 | 922 | 939 | 929 | 925 | 933 | 967 | |||||||||||||||
| Fuel | 1,593 | 1,381 | 1,187 | 996 | 961 | 1,164 | 1,005 | 1,007 | |||||||||||||||
| Maintenance and repairs | 788 | 764 | 681 | 677 | 722 | 732 | 697 | 697 | |||||||||||||||
| Asset impairment charges2 | – | – | – | 70 | — | — | — | 157 | |||||||||||||||
| Business optimization and realignment costs3 | 14 | 11 | 3 | 19 | 27 | 77 | 45 | 102 | |||||||||||||||
| Intercompany allocations | (173 | ) | (172 | ) | (173 | ) | (171 | ) | (175 | ) | (168 | ) | (167 | ) | (174 | ) | |||||||
| Other | 3,023 | 3,059 | 3,107 | 3,117 | 2,833 | 2,857 | 2,923 | 2,969 | |||||||||||||||
| Total operating expenses | 18,322 | 18,220 | 17,957 | 17,192 | 17,120 | 17,738 | 17,499 | 17,487 | |||||||||||||||
| Operating income | 862 | $ | 937 | $ | 962 | $ | 1,432 | $ | 1,306 | $ | 1,035 | $ | 1,173 | $ | 1,305 | ||||||||
| Operating margin | 4.5 | % | 4.9 | % | 5.1 | % | 7.7 | % | 7.1 | % | 5.5 | % | 6.3 | % | 6.9 | % | |||||||
| 1 - International domestic revenue relates to our international intra-country operations. | |||||||||||||||||||||||
| 2 - Fourth quarter 2024 includes asset impairment charges of 157 million associated with the decision to permanently retire certain aircraft and related engines. | |||||||||||||||||||||||
| 3 - Fourth quarter 2024 includes business optimization costs of 102 million associated with our business optimization strategy announced in 2023. Third quarter 2024 includes business optimization costs of 45 million. Second quarter 2024 includes business optimization costs of 77 million. First quarter 2024 includes business optimization costs of 27 million. | |||||||||||||||||||||||
| Unaudited. Differences may result due to rounding. |
All values are in US Dollars.
| Federal Express Segment | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annual Operating Statistics | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| Year ended May 31 | ||||||||||||||||||||||||
| In thousands, except yield amounts | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| Package Statistics | ||||||||||||||||||||||||
| Average daily package volume (ADV)1: | ||||||||||||||||||||||||
| U.S. priority | 1,724 | 1,649 | ||||||||||||||||||||||
| U.S. deferred | 1,064 | 1,015 | ||||||||||||||||||||||
| U.S. ground commercial | 4,194 | 4,276 | ||||||||||||||||||||||
| U.S. ground home delivery/economy | 6,756 | 6,678 | ||||||||||||||||||||||
| Total U.S. domestic ADV | 13,738 | 13,618 | ||||||||||||||||||||||
| International priority | 708 | 667 | ||||||||||||||||||||||
| International economy | 311 | 394 | ||||||||||||||||||||||
| Total international export ADV | 1,019 | 1,061 | ||||||||||||||||||||||
| International domestic2 | 1,967 | 1,936 | ||||||||||||||||||||||
| Total ADV | 16,724 | 16,615 | ||||||||||||||||||||||
| Revenue per package (yield): | ||||||||||||||||||||||||
| U.S. priority | $ | 24.78 | $ | 24.98 | ||||||||||||||||||||
| U.S. deferred | 18.91 | 18.97 | ||||||||||||||||||||||
| U.S. ground | 11.59 | 11.76 | ||||||||||||||||||||||
| Total U.S. domestic composite | 13.81 | 13.90 | ||||||||||||||||||||||
| International priority | 60.61 | 55.36 | ||||||||||||||||||||||
| International economy | 41.73 | 46.14 | ||||||||||||||||||||||
| International export composite | 54.85 | 51.94 | ||||||||||||||||||||||
| International domestic2 | 9.07 | 9.40 | ||||||||||||||||||||||
| Composite package yield | $ | 15.75 | $ | 15.80 | ||||||||||||||||||||
| Freight Statistics | ||||||||||||||||||||||||
| Average daily freight pounds: | ||||||||||||||||||||||||
| U.S. | 6,711 | 5,636 | ||||||||||||||||||||||
| International priority | 5,435 | 4,444 | ||||||||||||||||||||||
| International economy | 12,099 | 11,364 | ||||||||||||||||||||||
| Total average daily freight pounds | 24,245 | 21,444 | ||||||||||||||||||||||
| Revenue per pound (yield): | ||||||||||||||||||||||||
| U.S. | $ | 1.68 | $ | 1.66 | ||||||||||||||||||||
| International priority | 2.21 | 1.94 | ||||||||||||||||||||||
| International economy | 0.56 | 0.64 | ||||||||||||||||||||||
| Composite freight yield | $ | 1.24 | $ | 1.18 | ||||||||||||||||||||
| Package YOY growth rates | ||||||||||||||||||||||||
| Average daily volume growth: | ||||||||||||||||||||||||
| U.S. priority | (4.4 | %) | ||||||||||||||||||||||
| U.S. deferred | (4.6 | %) | ||||||||||||||||||||||
| U.S. ground commercial | 2.0 | % | ||||||||||||||||||||||
| U.S. ground home delivery/economy | (1.2 | %) | ||||||||||||||||||||||
| Total U.S. domestic | (0.9 | %) | ||||||||||||||||||||||
| International priority | (5.8 | %) | ||||||||||||||||||||||
| International economy | 26.7 | % | ||||||||||||||||||||||
| Total international export | 4.1 | % | ||||||||||||||||||||||
| International domestic2 | (1.6 | %) | ||||||||||||||||||||||
| Total package volume growth | (0.7 | %) | ||||||||||||||||||||||
| Revenue growth: | ||||||||||||||||||||||||
| U.S. priority | (3.2 | %) | ||||||||||||||||||||||
| U.S. deferred | (3.9 | %) | ||||||||||||||||||||||
| U.S. ground | 1.9 | % | ||||||||||||||||||||||
| Total U.S. domestic | 0.2 | % | ||||||||||||||||||||||
| International priority | (13.6 | %) | ||||||||||||||||||||||
| International economy | 40.7 | % | ||||||||||||||||||||||
| Total international export | (1.0 | %) | ||||||||||||||||||||||
| International domestic2 | 2.4 | % | ||||||||||||||||||||||
| Total package revenue growth | 0.1 | % | ||||||||||||||||||||||
| Avg pounds per package | 14.1 | 14.6 | ||||||||||||||||||||||
| Avg revenue per package lb. | $ | 0.89 | $ | 0.92 | ||||||||||||||||||||
| Operating days | 255 | 256 | ||||||||||||||||||||||
| 1 - Average daily package volume is calculated on a 5-day-per-week basis. U.S. ground home delivery/economy has been revised from the 7-day-per-week calculation <br> to align with the revised financial presentation related to our one FedEx consolidation. | ||||||||||||||||||||||||
| 2 - International domestic statistics relate to our international intra-country operations. | ||||||||||||||||||||||||
| Unaudited. Differences may result due to rounding. | ||||||||||||||||||||||||
| Federal Express Segment | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Quarterly Operating Statistics | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| Year ended May 31 | ||||||||||||||||||||||||
| In thousands, except yield amounts | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | |||||||||||||||||
| Package Statistics | ||||||||||||||||||||||||
| Average daily package volume (ADV)1: | ||||||||||||||||||||||||
| U.S. priority | 1,770 | 1,740 | 1,709 | 1,676 | 1,680 | 1,676 | 1,634 | 1,606 | ||||||||||||||||
| U.S. deferred | 1,070 | 1,043 | 1,141 | 1,002 | 970 | 1,009 | 1,104 | 978 | ||||||||||||||||
| U.S. ground commercial | 4,177 | 4,314 | 4,156 | 4,132 | 4,287 | 4,392 | 4,189 | 4,237 | ||||||||||||||||
| U.S. ground home delivery/economy | 6,495 | 6,934 | 7,377 | 6,253 | 6,411 | 6,991 | 7,090 | 6,243 | ||||||||||||||||
| Total U.S. domestic ADV | 13,512 | 14,031 | 14,383 | 13,063 | 13,348 | 14,068 | 14,017 | 13,064 | ||||||||||||||||
| International priority | 700 | 736 | 701 | 695 | 658 | 673 | 663 | 674 | ||||||||||||||||
| International economy | 293 | 320 | 312 | 318 | 365 | 406 | 393 | 412 | ||||||||||||||||
| Total international export ADV | 993 | 1,056 | 1,013 | 1,013 | 1,023 | 1,079 | 1,056 | 1,086 | ||||||||||||||||
| International domestic2 | 1,860 | 2,119 | 1,974 | 1,922 | 1,896 | 2,085 | 1,883 | 1,884 | ||||||||||||||||
| Total ADV | 16,365 | 17,206 | 17,370 | 15,998 | 16,267 | 17,232 | 16,956 | 16,034 | ||||||||||||||||
| Revenue per package (yield): | ||||||||||||||||||||||||
| U.S. priority | $ | 24.70 | $ | 24.73 | $ | 24.93 | $ | 24.79 | $ | 24.49 | $ | 24.67 | $ | 25.20 | $ | 25.58 | ||||||||
| U.S. deferred | 18.49 | 19.07 | 19.02 | 19.06 | 18.81 | 19.00 | 18.93 | 19.14 | ||||||||||||||||
| U.S. ground | 11.35 | 11.43 | 11.70 | 11.87 | 11.70 | 11.59 | 11.77 | 12.00 | ||||||||||||||||
| Total U.S. domestic composite | 13.66 | 13.65 | 13.85 | 14.08 | 13.82 | 13.68 | 13.90 | 14.20 | ||||||||||||||||
| International priority | 63.66 | 60.90 | 59.05 | 58.75 | 54.37 | 56.37 | 55.48 | 55.23 | ||||||||||||||||
| International economy | 42.48 | 40.23 | 40.90 | 43.29 | 47.15 | 46.19 | 44.71 | 46.54 | ||||||||||||||||
| International export composite | 57.42 | 54.63 | 53.46 | 53.89 | 51.80 | 52.54 | 51.47 | 51.93 | ||||||||||||||||
| International domestic2 | 9.15 | 8.74 | 9.22 | 9.22 | 9.25 | 9.24 | 9.59 | 9.53 | ||||||||||||||||
| Composite package yield | $ | 15.80 | $ | 15.56 | $ | 15.64 | $ | 16.02 | $ | 15.68 | $ | 15.57 | $ | 15.76 | $ | 16.21 | ||||||||
| Freight Statistics | ||||||||||||||||||||||||
| Average daily freight pounds: | ||||||||||||||||||||||||
| U.S. | 7,280 | 7,471 | 6,662 | 5,451 | 5,305 | 5,663 | 6,067 | 5,525 | ||||||||||||||||
| International priority | 6,042 | 5,757 | 5,290 | 4,657 | 4,390 | 4,472 | 4,353 | 4,557 | ||||||||||||||||
| International economy | 11,614 | 13,234 | 11,979 | 11,598 | 11,001 | 11,857 | 11,072 | 11,531 | ||||||||||||||||
| Total average daily freight pounds | 24,936 | 26,462 | 23,931 | 21,706 | 20,696 | 21,992 | 21,492 | 21,613 | ||||||||||||||||
| Revenue per pound (yield): | ||||||||||||||||||||||||
| U.S. | $ | 1.67 | $ | 1.65 | $ | 1.73 | $ | 1.70 | $ | 1.67 | $ | 1.62 | $ | 1.68 | $ | 1.66 | ||||||||
| International priority | 2.26 | 2.24 | 2.10 | 2.23 | 1.94 | 2.02 | 1.90 | 1.90 | ||||||||||||||||
| International economy | 0.57 | 0.53 | 0.56 | 0.58 | 0.66 | 0.63 | 0.63 | 0.66 | ||||||||||||||||
| Composite freight yield | $ | 1.30 | $ | 1.22 | $ | 1.22 | $ | 1.21 | $ | 1.19 | $ | 1.17 | $ | 1.18 | $ | 1.18 | ||||||||
| Package YOY growth rates | ||||||||||||||||||||||||
| Average daily volume growth: | ||||||||||||||||||||||||
| U.S. priority | (5.1 | %) | (3.7 | %) | (4.4 | %) | (4.2 | %) | ||||||||||||||||
| U.S. deferred | (9.3 | %) | (3.3 | %) | (3.2 | %) | (2.4 | %) | ||||||||||||||||
| U.S. ground commercial | 2.6 | % | 1.8 | % | 0.8 | % | 2.5 | % | ||||||||||||||||
| U.S. ground home delivery/economy | (1.3 | %) | 0.8 | % | (3.9 | %) | (0.2 | %) | ||||||||||||||||
| Total U.S. domestic | (1.2 | %) | 0.3 | % | (2.5 | %) | 0.0 | % | ||||||||||||||||
| International priority | (6.0 | %) | (8.6 | %) | (5.4 | %) | (3.0 | %) | ||||||||||||||||
| International economy | 24.6 | % | 26.9 | % | 25.9 | % | 29.6 | % | ||||||||||||||||
| Total international export | 3.0 | % | 2.2 | % | 4.3 | % | 7.2 | % | ||||||||||||||||
| International domestic2 | 1.9 | % | (1.6 | %) | (4.6 | %) | (2.0 | %) | ||||||||||||||||
| Total package volume growth | (0.6 | %) | 0.2 | % | (2.4 | %) | 0.2 | % | ||||||||||||||||
| Revenue growth: | ||||||||||||||||||||||||
| U.S. priority | (5.9 | %) | (3.9 | %) | (1.8 | %) | (1.2 | %) | ||||||||||||||||
| U.S. deferred | (7.8 | %) | (3.7 | %) | (2.2 | %) | (1.9 | %) | ||||||||||||||||
| U.S. ground | 3.3 | % | 2.5 | % | (0.0 | %) | 2.0 | % | ||||||||||||||||
| Total U.S. domestic | (0.0 | %) | 0.4 | % | (0.7 | %) | 0.9 | % | ||||||||||||||||
| International priority | (19.7 | %) | (15.3 | %) | (9.7 | %) | (8.8 | %) | ||||||||||||||||
| International economy | 38.2 | % | 45.7 | % | 39.9 | % | 39.1 | % | ||||||||||||||||
| Total international export | (7.0 | %) | (1.7 | %) | 2.0 | % | 3.3 | % | ||||||||||||||||
| International domestic2 | 3.1 | % | 4.0 | % | 1.0 | % | 1.3 | % | ||||||||||||||||
| Total package revenue growth | (1.4 | %) | 0.2 | % | (0.0 | %) | 1.4 | % | ||||||||||||||||
| Avg pounds per package | 14.2 | 13.8 | 13.7 | 14.5 | 14.7 | 14.4 | 14.2 | 15.1 | ||||||||||||||||
| Avg revenue per package lb. | $ | 0.90 | $ | 0.89 | $ | 0.88 | $ | 0.91 | $ | 0.94 | $ | 0.92 | $ | 0.90 | $ | 0.93 | ||||||||
| Operating days | 65 | 63 | 62 | 65 | 65 | 63 | 63 | 65 | ||||||||||||||||
| 1 - Average daily package volume is calculated on a 5-day-per-week basis. U.S. ground home delivery/economy has been revised from the 7-day-per-week calculation to align with the revised financial presentation<br> related to our one FedEx consolidation. | ||||||||||||||||||||||||
| 2 - International domestic statistics relate to our international intra-country operations. | ||||||||||||||||||||||||
| Unaudited. Differences may result due to rounding. | ||||||||||||||||||||||||
| FedEx Freight Segment | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| Annual Consolidated Statements of Income | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| Years ended May 31 | ||||||||||||||||||||||||
| In millions | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| Revenue | $ | 10,084 | $ | 9,429 | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Salaries and employee benefits | 4,057 | 3,923 | ||||||||||||||||||||||
| Purchased transportation | 1,078 | 877 | ||||||||||||||||||||||
| Rentals | 269 | 280 | ||||||||||||||||||||||
| Depreciation and amortization | 387 | 404 | ||||||||||||||||||||||
| Fuel | 748 | 571 | ||||||||||||||||||||||
| Maintenance and repairs | 320 | 330 | ||||||||||||||||||||||
| Intercompany charges | 542 | 543 | ||||||||||||||||||||||
| Other | 747 | 680 | ||||||||||||||||||||||
| Total operating expenses | 8,148 | 7,608 | ||||||||||||||||||||||
| Operating income | $ | 1,936 | $ | 1,821 | ||||||||||||||||||||
| Operating margin | 19.2 | % | 19.3 | % | ||||||||||||||||||||
| Unaudited. Differences may result due to rounding. | ||||||||||||||||||||||||
| FedEx Freight Segment | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Quarterly Consolidated Statements of Income | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| Years ended May 31 | ||||||||||||||||||||||||
| In millions | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | |||||||||||||||||
| Revenue | $ | 2,849 | $ | 2,573 | $ | 2,293 | $ | 2,369 | $ | 2,385 | $ | 2,452 | $ | 2,205 | $ | 2,387 | ||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Salaries and employee benefits | 1,073 | 1,053 | 960 | 971 | 985 | 1,018 | 959 | 961 | ||||||||||||||||
| Purchased transportation | 318 | 281 | 253 | 226 | 219 | 231 | 218 | 209 | ||||||||||||||||
| Rentals | 65 | 67 | 68 | 69 | 69 | 70 | 70 | 71 | ||||||||||||||||
| Depreciation and amortization | 106 | 103 | 74 | 104 | 108 | 81 | 108 | 107 | ||||||||||||||||
| Fuel | 228 | 211 | 162 | 147 | 139 | 164 | 134 | 134 | ||||||||||||||||
| Maintenance and repairs | 81 | 88 | 77 | 74 | 75 | 94 | 78 | 83 | ||||||||||||||||
| Intercompany charges | 136 | 134 | 135 | 137 | 139 | 134 | 132 | 138 | ||||||||||||||||
| Other | 185 | 194 | 177 | 191 | 169 | 169 | 165 | 177 | ||||||||||||||||
| Total operating expenses | 2,192 | 2,131 | 1,906 | 1,919 | 1,903 | 1,961 | 1,864 | 1,880 | ||||||||||||||||
| Operating income | $ | 657 | $ | 442 | $ | 387 | $ | 450 | $ | 482 | $ | 491 | $ | 341 | $ | 507 | ||||||||
| Operating margin | 23.1 | % | 17.2 | % | 16.9 | % | 19.0 | % | 20.2 | % | 20.0 | % | 15.5 | % | 21.2 | % | ||||||||
| Unaudited. Differences may result due to rounding. | ||||||||||||||||||||||||
| FedEx Freight Segment | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||||||||||||||
| Annual Operating Statistics | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| Shipments per day | ||||||||||||||||||||||||
| Priority | 70,158 | 64,915 | ||||||||||||||||||||||
| Economy | 29,562 | 29,072 | ||||||||||||||||||||||
| Total shipments per day | 99,720 | 93,987 | ||||||||||||||||||||||
| Weight per shipment (lbs) | ||||||||||||||||||||||||
| Priority | 1,027 | 977 | ||||||||||||||||||||||
| Economy | 912 | 878 | ||||||||||||||||||||||
| Composite weight per shipment | 993 | 946 | ||||||||||||||||||||||
| Revenue/shipment | ||||||||||||||||||||||||
| Priority | $ | 363.85 | $ | 361.38 | ||||||||||||||||||||
| Economy | 417.50 | 411.25 | ||||||||||||||||||||||
| Composite revenue/shipment | $ | 379.76 | $ | 376.81 | ||||||||||||||||||||
| Revenue/CWT | ||||||||||||||||||||||||
| Priority | $ | 35.44 | $ | 36.98 | ||||||||||||||||||||
| Economy | 45.78 | 46.86 | ||||||||||||||||||||||
| Composite revenue/CWT | $ | 38.26 | $ | 39.82 | ||||||||||||||||||||
| Avg. daily shipment growth rate | ||||||||||||||||||||||||
| Priority | (7.5 | %) | ||||||||||||||||||||||
| Economy | (1.7 | %) | ||||||||||||||||||||||
| Total shipments per day | (5.7 | %) | ||||||||||||||||||||||
| Revenue/shipment growth rate | ||||||||||||||||||||||||
| Priority | (0.7 | %) | ||||||||||||||||||||||
| Economy | (1.5 | %) | ||||||||||||||||||||||
| Total composite revenue/shipment | (0.8 | %) | ||||||||||||||||||||||
| Operating weekdays | 253 | 254 | ||||||||||||||||||||||
| Unaudited. Differences may result due to rounding. | ||||||||||||||||||||||||
| FedEx Freight | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| Quarterly Operating Statistics | ||||||||||||||||||||||||
| FY 2023 – FY 2024 | ||||||||||||||||||||||||
| FY 2023 | FY 2024 | |||||||||||||||||||||||
| FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | FIRST<br>QUARTER | SECOND<br>QUARTER | THIRD<br>QUARTER | FOURTH<br>QUARTER | |||||||||||||||||
| Shipments per day | ||||||||||||||||||||||||
| Priority | 76,174 | 73,372 | 65,402 | 65,540 | 66,144 | 68,486 | 61,483 | 63,556 | ||||||||||||||||
| Economy | 32,104 | 30,964 | 27,685 | 27,446 | 28,491 | 30,515 | 27,765 | 29,524 | ||||||||||||||||
| Total shipments per day | 108,278 | 104,336 | 93,087 | 92,986 | 94,635 | 99,001 | 89,248 | 93,080 | ||||||||||||||||
| Weight per shipment (lbs) | ||||||||||||||||||||||||
| Priority | 1,054 | 1,029 | 1,014 | 1,004 | 989 | 975 | 974 | 970 | ||||||||||||||||
| Economy | 938 | 940 | 890 | 873 | 876 | 880 | 885 | 871 | ||||||||||||||||
| Composite weight per shipment | 1,020 | 1,002 | 977 | 966 | 955 | 946 | 946 | 939 | ||||||||||||||||
| Revenue/shipment | ||||||||||||||||||||||||
| Priority | $ | 369.60 | $ | 361.57 | $ | 366.17 | $ | 357.44 | $ | 353.01 | $ | 365.55 | $ | 363.21 | $ | 364.11 | ||||||||
| Economy | 423.59 | 415.35 | 418.65 | 411.62 | 407.99 | 415.82 | 414.79 | 406.73 | ||||||||||||||||
| Composite revenue/shipment | $ | 385.61 | $ | 377.53 | $ | 381.77 | $ | 373.43 | $ | 369.56 | $ | 381.05 | $ | 379.26 | $ | 377.63 | ||||||||
| Revenue/CWT | ||||||||||||||||||||||||
| Priority | $ | 35.06 | $ | 35.14 | $ | 36.12 | $ | 35.60 | $ | 35.71 | $ | 37.48 | $ | 37.31 | $ | 37.52 | ||||||||
| Economy | 45.16 | 44.21 | 47.06 | 47.13 | 46.59 | 47.26 | 46.89 | 46.70 | ||||||||||||||||
| Composite revenue/CWT | $ | 37.82 | $ | 37.66 | $ | 39.08 | $ | 38.68 | $ | 38.71 | $ | 40.29 | $ | 40.10 | $ | 40.22 | ||||||||
| Avg. daily shipment growth rate | ||||||||||||||||||||||||
| Priority | (13.2 | %) | (6.7 | %) | (6.0 | %) | (3.0 | %) | ||||||||||||||||
| Economy | (11.3 | %) | (1.5 | %) | 0.3 | % | 7.6 | % | ||||||||||||||||
| Total shipments per day | (12.6 | %) | (5.1 | %) | (4.1 | %) | 0.1 | % | ||||||||||||||||
| Revenue/shipment YOY growth rate | ||||||||||||||||||||||||
| Priority | (4.5 | %) | 1.1 | % | (0.8 | %) | 1.9 | % | ||||||||||||||||
| Economy | (3.7 | %) | 0.1 | % | (0.9 | %) | (1.2 | %) | ||||||||||||||||
| Total composite revenue/shipment | (4.2 | %) | 0.9 | % | (0.7 | %) | 1.1 | % | ||||||||||||||||
| Operating weekdays | 65 | 62 | 61 | 65 | 65 | 62 | 62 | 65 | ||||||||||||||||
| Unaudited. Differences may result due to rounding. |
Appendix
General comments
Other operating expense includes costs associated with outside service contracts (such as facility services and cargo handling, temporary labor, and security), insurance, professional fees, and uniforms for all years presented.
Return on Assets and Return on Equity are calculated on a rolling four-quarter basis for all years presented.
Segmentations/Restatements
In the fourth quarter of FY23, we announced one FedEx, a consolidation plan to bring FedEx Ground and FedEx Services into Federal Express, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. On June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express. FedEx Freight continues to provide LTL freight transportation services as a separate subsidiary. Beginning in the first quarter of FY25, Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. FedEx Custom Critical is included in the FedEx Freight segment instead of the Federal Express segment beginning in FY25.
Federal Express average daily package volume calculations for all services are calculated on a 5-day-per-week basis. Interim and annual amounts for FY23 and FY24 were revised to reflect these changes in presentation.
Business optimization and realignment costs
- FY23 includes $273 million ($209 million, net of tax, or $0.81 per diluted share) of business optimization costs, as well as business realignment costs of $36 million ($27 million, net of tax, or $0.11 per diluted share) associated with our workforce reduction plan in Europe previously announced in 2021. Q1 FY23 includes business optimization costs of $24 million ($19 million, net of tax, or $0.07 per diluted share) and business realignment costs of $14 million ($11 million, net of tax, or $0.04 per diluted share). Q2 FY23 includes business optimization costs of $36 million ($27 million, net of tax, or $0.11 per diluted share). Q3 FY23 includes business optimization costs of $120 million ($92 million, net of tax, or $0.36 per diluted share) and business realignment costs of $3 million ($2 million, net of tax, or $0.01 per diluted share). Q4 FY23 includes business optimization costs of $93 million ($71 million, net of tax, or $0.28 per diluted share) and business realignment costs of $19 million ($14 million, net of tax, or $0.06 per diluted share).
Goodwill and other asset impairment charges
- FY23 includes goodwill and other asset impairment charges of $70 million ($54 million, net of tax, or $0.21 per diluted share) at the Federal Express segment associated with the decision to permanently retire certain aircraft and related engines and $47 million ($44 million, net of tax, or $0.17 per diluted share) at the FedEx Dataworks operating segment related to the ShopRunner, Inc. acquisition. These amounts were incurred during the fourth quarter.
Legal matters
- FY23 annual consolidated Other operating expense amounts include $35 million ($26 million, net of tax, or $0.10 per diluted share) in connection with a legal matter. This amount was incurred during the fourth quarter and is included at "Corporate, other, and eliminations."
Mark-to-market retirement plans accounting adjustments
- FY23 annual consolidated Other retirement plan income amounts include a mark-to-market retirement plans pre-tax, noncash gain of approximately $650 million ($493 million, net of tax, or $1.92 per diluted share). This amount was incurred during the fourth quarter.