8-K
FEDEX CORP (FDX)
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): June 21, 2021
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<br><br><br>Symbol | Name of each exchange<br><br><br>on which registered |
|---|---|---|
| Common Stock, par value $0.10 per share | FDX | New York Stock Exchange |
| 0.700% 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. ☐
SECTION 1. REGISTRANT’S BUSINESS AND OPERATIONS
Item 1.01. Entry into a Material Definitive Agreement
On June 22, 2021, FedEx Corporation’s (“FedEx”) wholly owned subsidiary Federal Express Corporation (“FedEx Express”) and The Boeing Company (“Boeing”) entered into Supplemental Agreement No. 16 (and related side letters) ( “Supplemental Agreement No. 16”) to Purchase Agreement No. 3712 dated as of December 14, 2011, between Boeing and FedEx Express related to Boeing 767-300 Freighter (“B767F”) aircraft.
In Supplemental Agreement No. 16, FedEx Express agreed to purchase 20 B767F aircraft by exercising 20 options. Two (2) of the additional B767F aircraft purchases are conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended (“RLA”). Ten of the additional B767F aircraft will be delivered in fiscal 2024 and ten will be delivered in fiscal 2025. These aircraft will enable FedEx Express to continue to improve the efficiency and reliability of its aircraft fleet.
FedEx Express now has a total of 48 firm orders from Boeing for B767F aircraft scheduled for delivery during fiscal 2022 through fiscal 2025. Two (2) of the B767F orders are conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the RLA. FedEx Express also has options to purchase an additional 50 B767F aircraft.
Supplemental Agreement No. 16 will be filed as an exhibit to FedEx’s quarterly report on Form 10-Q for the fiscal quarter ending August 31, 2021.
Certain statements in this Item 1.01 are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to future events and financial performance. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated (expressed or implied) by such forward-looking statements, because of, among other things, the risks and uncertainties described in our press releases and filings with the Securities and Exchange Commission.
SECTION 2. FINANCIAL INFORMATION.
Item 2.02. Results of Operations and Financial Condition.
Attached as Exhibit 99.1 and incorporated herein by reference is a copy of FedEx’s press release, dated June 24, 2021, announcing its financial results for the fiscal quarter and year ended May 31, 2021.
The information in this Item 2.02 and Exhibit 99.1 are 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 5. CORPORATE GOVERNANCE AND MANAGEMENT.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 21, 2021, following his confirmation by the U.S. Senate to serve as the United States National Cyber Director on June 17, 2021, John C. “Chris” Inglis notified FedEx that he was resigning, effective June 21, 2021, from the FedEx Board of Directors.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
|---|---|
| Exhibit<br><br><br>Number | Description |
| --- | --- |
| 99.1 | Press Release of FedEx Corporation dated June 24, 2021. |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
SIGNATURES
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: June 24, 2021 | By: | /s/ John L. Merino |
| John L. Merino | ||
| Corporate Vice President and | ||
| Principal Accounting Officer |
EXHIBIT INDEX
| Exhibit<br><br><br>Number | Description |
|---|---|
| 99.1 | Press Release of FedEx Corporation dated June 24, 2021. |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
E-1
fdx-ex991_6.htm
Exhibit 99.1
FedEx Corp. Reports Record Fourth Quarter and Full-Year Results
Momentum Drives Expected Revenue and Earnings Growth for Fiscal 2022
MEMPHIS, Tenn., June 24, 2021 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended May 31 (adjusted measures exclude the items listed below for the applicable fiscal year):
| Fiscal 2021 | Fiscal 2020 | |||
|---|---|---|---|---|
| As Reported<br><br><br>(GAAP) | Adjusted<br><br><br>(non-GAAP) | As Reported<br><br><br>(GAAP) | Adjusted<br><br><br>(non-GAAP) | |
| Revenue | $22.6 billion | $22.6 billion | $17.4 billion | $17.4 billion |
| Operating income | $1.80 billion | $1.97 billion | $475 million | $907 million |
| Operating margin | 8.0% | 8.7% | 2.7% | 5.2% |
| Net income (loss) | $1.87 billion | $1.36 billion | ($334 million) | $663 million |
| Diluted EPS (loss) | $6.88 | $5.01 | ($1.28) | $2.53 |
For the full fiscal year, FedEx Corp. reported the following consolidated results (adjusted measures exclude the items listed below for the applicable fiscal year):
| Fiscal 2021 | Fiscal 2020 | |||
|---|---|---|---|---|
| As Reported<br><br><br>(GAAP) | Adjusted<br><br><br>(non-GAAP) | As Reported<br><br><br>(GAAP) | Adjusted<br><br><br>(non-GAAP) | |
| Revenue | $84.0 billion | $84.0 billion | $69.2 billion | $69.2 billion |
| Operating income | $5.86 billion | $6.18 billion | $2.42 billion | $3.12 billion |
| Operating margin | 7.0% | 7.4% | 3.5% | 4.5% |
| Net income | $5.23 billion | $4.89 billion | $1.29 billion | $2.49 billion |
| Diluted EPS | $19.45 | $18.17 | $4.90 | $9.50 |
This year’s and last year’s quarterly and full-year consolidated results have been adjusted for:
| Fiscal 2021 | Fiscal 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| Impact per diluted share | Fourth Quarter | Full Year | Fourth Quarter | Full Year | ||||
| Mark-to-market (MTM) retirement plan<br><br><br>accounting adjustments | $ | (3.44) | $ | (3.33) | $ | 2.22 | $ | 2.22 |
| Loss on debt extinguishment | 1.09 | 1.11 | — | — | ||||
| TNT Express integration expenses | 0.18 | 0.60 | 0.18 | 0.80 | ||||
| Business realignment costs | 0.30 | 0.33 | — | — | ||||
| Goodwill and other asset<br><br><br>impairment charges | — | — | 1.40 | 1.58 |
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“I thank our team members around the world for their outstanding efforts during this extraordinary year,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We continue to play an important role in global economic recovery and the delivery of COVID-19 vaccines and relief supplies throughout the U.S., Canada and more than 35 other countries. I am optimistic about the future of FedEx as we continue to innovate for our customers and meet strong demand for our global transportation network and capabilities.”
Fourth Quarter Results
Fourth quarter operating results increased primarily due to volume growth and disciplined revenue and portfolio management. These factors were partially offset by costs to support strong demand, increased variable compensation expense, and higher labor rates.
Net results include a loss on debt extinguishment of $393 million ($297 million net of tax).
FedEx Express fourth quarter operating income more than doubled year over year, driven by exceptional growth in international export and U.S. domestic package services. Operating margin increased 260 basis points (an adjusted 340 basis points; adjusted measures exclude the items listed below for the applicable fiscal year), as improved network optimization and asset utilization enabled profit growth from record fourth quarter volume.
FedEx Ground reported record earnings for the quarter and revenue growth of 27%. The revenue increase was primarily driven by strong growth in business-to-business shipments and a 14% rise in revenue per package. Operating margin improved 310 basis points to 13.6% due to strong revenue growth and slower growth in purchased transportation expenses, aided by a higher mix of business-to-business shipments and benefits from dynamic route optimization technology. This improvement was partially offset by higher expenses driven by constrained labor availability.
FedEx Freight reported record earnings and operating margin of 16.1% for the quarter, as average daily shipments grew 30% and revenue per shipment increased 6%. Operating results improved primarily due to the continued focus on revenue quality and profitable growth.
Outlook
FedEx is unable to forecast the fiscal 2022 mark-to-market (MTM) retirement plan accounting adjustments. As a result, FedEx is unable to provide a fiscal 2022 earnings per share or effective tax rate (ETR) outlook on a GAAP basis.
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For fiscal 2022, FedEx is forecasting:
| • | Earnings per diluted share of $18.90 to $19.90 before the MTM retirement plan accounting adjustments; |
|---|---|
| • | Earnings per diluted share of $20.50 to $21.50 before the MTM retirement plan accounting adjustments and excluding estimated TNT Express integration expenses and costs associated with business realignment activities; |
| --- | --- |
| • | ETR of approximately 24% prior to the MTM retirement plan accounting adjustments; and |
| --- | --- |
| • | Capital spending of $7.2 billion, with continued investment in the key strategic priorities of e-commerce, operational excellence and efficiency. Strategic initiatives include accelerated capacity expansion, fleet and facility modernization, and increased automation. |
| --- | --- |
These forecasts assume continued recovery in U.S. industrial production and global trade, no additional COVID-19-related business restrictions, and current fuel price expectations. FedEx’s ETR and earnings per share forecasts are based on current law and related regulations and guidance.
“The ongoing execution of our strategic initiatives has driven significant improvement in our fourth quarter results and highlights the continued strength of our business,” said Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer. “For fiscal 2021, we delivered record financial results while also recognizing the valuable contributions by our team members. We expect continued strong momentum in fiscal 2022, and our investments are focused on the areas of greatest growth and highest returns, like e-commerce, to position us for sustained long-term growth in earnings, cash flows, and returns.”
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $84 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its 570,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit about.fedex.com.
Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:00 p.m.
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EDT on June 24, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.
The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our Securities and Exchange Commission (SEC) filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance and underlying assumptions. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the negative impacts of the COVID-19 pandemic; economic conditions in the global markets in which we operate; anti-trade measures and additional changes in international trade policies and relations; a significant data breach or other disruption to our technology infrastructure; our ability to meet our labor and purchased transportation needs while controlling related costs; our ability to successfully integrate the businesses and operations of FedEx Express and TNT Express in the expected time frame and at the expected cost and to achieve the expected benefits from the combined businesses; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; the future rate of e-commerce growth and our ability to successfully expand our e-commerce services portfolio; damage to our reputation or loss of brand equity; the impact of the United Kingdom’s withdrawal from the European Union and the terms of their future trading relationship; the timeline for recovery of passenger airline cargo capacity; changes in fuel prices or currency exchange rates; our ability to match capacity to shifting volume levels; the impact of intense competition; evolving or new U.S. domestic or international laws, government regulation or regulatory actions; future guidance, regulations, interpretations, challenges or judicial decisions related to our tax positions; our ability to effectively operate, integrate, leverage and grow acquired businesses, including ShopRunner, Inc.; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers providing services on their behalf; an increase in self-insurance accruals and expenses; changes in the
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business or financial soundness of the U.S. Postal Service; the impact of any international conflicts or terrorist activities; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; our ability to achieve our goal of carbon-neutral operations by 2040; constraints, volatility or disruption in the capital markets and our ability to obtain financing; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Contact: Jenny Robertson 901-434-4829
Investor Contact: Mickey Foster 901-818-7468
Home Page: fedex.com
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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
Fourth Quarter and Full-Year Fiscal 2021 and Fiscal 2020 Results
The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted fourth quarter and adjusted full-year fiscal 2021 and 2020 consolidated operating income and margin, net income (loss) and diluted earnings (loss) per share, and adjusted fourth quarter and adjusted full-year fiscal 2021 and 2020 FedEx Express segment operating income and margin. These financial measures have been adjusted to exclude the impact of the following items (as applicable):
| • | MTM retirement plan accounting adjustments in fiscal 2021 and 2020; |
|---|---|
| • | Loss on debt extinguishment in fiscal 2021; |
| --- | --- |
| • | TNT Express integration expenses incurred in fiscal 2021 and 2020; |
| --- | --- |
| • | Fiscal 2021 business realignment costs; and |
| --- | --- |
| • | Fiscal 2020 goodwill and other asset impairment charges. |
| --- | --- |
The MTM retirement plan accounting adjustments, loss on debt extinguishment, costs related to business realignment activities in connection with the FedEx Express workforce reduction plan in Europe, and goodwill and other asset impairment charges are excluded from our fourth quarter and full-year fiscal 2021 and 2020 consolidated and FedEx Express segment non-GAAP financial measures, as applicable, because they are unrelated to our core operating performance and/or to assist investors with assessing trends in our underlying businesses.
We have incurred and expect to incur significant expenses through fiscal 2022 in connection with our integration of TNT Express. We have adjusted our fourth quarter and full-year fiscal 2021 and 2020 consolidated and FedEx Express segment financial measures to exclude TNT Express integration expenses because we generally would not incur such expenses as part of our continuing operations. The integration expenses are predominantly incremental costs directly associated with the integration of TNT Express, including professional and legal fees, salaries and employee benefits, advertising and travel expenses. Internal salaries and employee benefits are included only to the extent the individuals are assigned full-time to integration activities. The integration expenses do not include costs associated with our business realignment activities.
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We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company’s and our business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating the company’s and each business segment’s ongoing performance.
Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.
Fiscal 2022 Earnings Per Share and Effective Tax Rate Forecasts
Our fiscal 2022 earnings per share (EPS) forecast is a non-GAAP financial measure because it excludes (i) fiscal 2022 MTM retirement plan accounting adjustments, (ii) estimated fiscal 2022 TNT Express integration expenses, and (iii) estimated fiscal 2022 business realignment costs. Our fiscal 2022 effective tax rate (ETR) forecast is a non-GAAP financial measure because it excludes the impact of fiscal 2022 MTM retirement plan accounting adjustments.
We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. These items are excluded from our fiscal 2022 EPS and ETR forecasts, as applicable, for the same reasons described above for historical non-GAAP measures.
We are unable to predict the amount of the MTM retirement plan accounting adjustments, as they are significantly impacted by changes in interest rates and the financial markets, so such adjustments are not included in our fiscal 2022 EPS and ETR forecasts. For this reason, a full reconciliation of our fiscal 2022 EPS and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our fiscal 2022 MTM retirement plan accounting adjustments could have a material impact on our fiscal 2022 consolidated financial results and ETR.
The table included below titled “Fiscal 2022 Earnings Per Share Forecast” outlines the impacts of the items that are excluded from our fiscal 2022 EPS forecast, other than the MTM retirement plan accounting adjustments.
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Fourth Quarter Fiscal 2021
FedEx Corporation
| Operating | Income | Net | Diluted<br><br><br>Earnings | ||
|---|---|---|---|---|---|
| Dollars in millions, except EPS | Income | Margin^1^ | Taxes^2^ | Income^3^ | Per Share |
| GAAP measure | $1,797 | 8.0% | $745 | $1,868 | $6.88 |
| MTM retirement plan<br><br><br>accounting adjustment^4^ | — | — | (292) | (936) | (3.44) |
| Loss on debt extinguishment | — | — | 96 | 297 | 1.09 |
| Business realignment costs^5^ | 106 | 0.5% | 24 | 82 | 0.30 |
| TNT Express integration<br><br><br>expenses^6^ | 64 | 0.3% | 15 | 49 | 0.18 |
| Non-GAAP measure | $1,967 | 8.7% | $588 | $1,360 | $5.01 |
FedEx Express Segment
| Operating | ||
|---|---|---|
| Dollars in millions | Income | Margin^1^ |
| GAAP measure | $737 | 6.5% |
| Business realignment costs | 106 | 0.9% |
| TNT Express integration expenses | 55 | 0.5% |
| Non-GAAP measure | $898 | 8.0% |
Full-Year Fiscal 2021
FedEx Corporation
| Operating | Income | Net | Diluted<br><br><br>Earnings | ||
|---|---|---|---|---|---|
| Dollars in millions, except EPS | Income | Margin | Taxes^2^ | Income^3^ | Per Share^1^ |
| GAAP measure | $5,857 | 7.0% | $1,443 | $5,231 | $19.45 |
| MTM retirement plan<br><br><br>accounting adjustments^4^ | — | — | (281) | (895) | (3.33) |
| Loss on debt extinguishment | — | — | 96 | 297 | 1.11 |
| TNT Express integration<br><br><br>expenses^6^ | 210 | 0.3% | 48 | 162 | 0.60 |
| Business realignment costs^5^ | 116 | 0.1% | 26 | 90 | 0.33 |
| Non-GAAP measure | $6,183 | 7.4% | $1,332 | $4,885 | $18.17 |
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Full-Year Fiscal 2021 (continued)
FedEx Express Segment
| Operating | ||
|---|---|---|
| Dollars in millions | Income | Margin |
| GAAP measure | $2,810 | 6.7% |
| TNT Express integration expenses | 176 | 0.4% |
| Business realignment costs | 116 | 0.3% |
| Non-GAAP measure | $3,102 | 7.4% |
Fourth Quarter Fiscal 2020
FedEx Corporation
| Operating | Income | Net<br><br><br>(Loss) | Diluted<br><br><br>(Loss)<br><br><br>Earnings | ||
|---|---|---|---|---|---|
| Dollars in millions, except EPS | Income | Margin | Taxes^2^ | Income^3^ | Per Share^7^ |
| GAAP measure | $475 | 2.7% | $15 | $(334) | $(1.28) |
| MTM retirement plan<br><br><br>accounting adjustment^4^ | — | — | 211 | 583 | 2.22 |
| Goodwill and other asset<br><br><br>impairment charges^8^ | 369 | 2.1% | 3 | 366 | 1.40 |
| TNT Express integration<br><br><br>expenses^6^ | 63 | 0.4% | 15 | 48 | 0.18 |
| Non-GAAP measure | $907 | 5.2% | $244 | $663 | $2.53 |
FedEx Express Segment
| Operating | ||
|---|---|---|
| Dollars in millions | Income | Margin^1^ |
| GAAP measure | $338 | 3.9% |
| TNT Express integration expenses | 54 | 0.6% |
| Non-GAAP measure | $392 | 4.6% |
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Full-Year Fiscal 2020
FedEx Corporation
| Operating | Income | Net | Diluted<br><br><br>Earnings | ||
|---|---|---|---|---|---|
| Dollars in millions, except EPS | Income | Margin | Taxes^2^ | Income^3^ | Per Share |
| GAAP measure | $2,417 | 3.5% | $383 | $1,286 | $4.90 |
| MTM retirement plan<br><br><br>accounting adjustment^4^ | — | — | 211 | 583 | 2.22 |
| Goodwill and other asset<br><br><br>impairment charges^8^ | 435 | 0.6% | 19 | 416 | 1.58 |
| TNT Express integration<br><br><br>expenses^6^ | 270 | 0.4% | 61 | 209 | 0.80 |
| Non-GAAP measure | $3,122 | 4.5% | $674 | $2,494 | $9.50 |
FedEx Express Segment
| Operating | ||
|---|---|---|
| Dollars in millions | Income | Margin |
| GAAP measure | $996 | 2.8% |
| TNT Express integration expenses | 222 | 0.6% |
| Asset impairment charges | 66 | 0.2% |
| Non-GAAP measure | $1,284 | 3.6% |
Fiscal 2022 Earnings Per Share Forecast
| Dollars in millions, except EPS | Adjustments |
|---|---|
| Earnings per diluted share before<br><br><br>MTM retirement plan accounting<br><br><br>adjustments (non-GAAP)^9^ | |
| TNT Express integration expenses | 150 |
| Income tax effect^2^ | (28) |
| Net of tax effect | 122 |
| Business realignment costs | 400 |
| Income tax effect^2^ | (88) |
| Net of tax effect | 312 |
| Earnings per diluted share with adjustments^9^ |
All values are in US Dollars.
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Notes:
| 1 – | Does not sum to total due to rounding. |
|---|---|
| 2 – | Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction. |
| --- | --- |
| 3 – | Effect of “total other (expense) income” on net income amount not shown. |
| --- | --- |
| 4 – | The MTM retirement plan accounting adjustment reflects the year-end adjustment to the valuation of the company’s defined benefit pension and other postretirement plans. For the full-year fiscal 2021 period, the MTM retirement plan accounting adjustment also includes the second quarter TNT Express MTM retirement plan accounting adjustment related to a noncash loss associated with amending a TNT Express European pension plan to harmonize retirement benefits. |
| --- | --- |
| 5 – | Business realignment costs were recognized at FedEx Express. |
| --- | --- |
| 6 – | These expenses were recognized at FedEx Corporate and FedEx Express. |
| --- | --- |
| 7 – | Does not sum to total due to difference in weighted-average number of shares outstanding used to calculate EPS in accordance with GAAP. |
| --- | --- |
| 8 – | Goodwill impairment charges are not deductible for income tax purposes. |
| --- | --- |
| 9 – | The MTM retirement plan accounting adjustments, which are impracticable to calculate at this time, are excluded. |
| --- | --- |
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FEDEX CORP. FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2021
(In millions, except earnings per share)
(Unaudited)
| Three Months Ended<br><br><br>May 31, | Twelve Months Ended<br><br><br>May 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||
| Revenue: | ||||||||||||||||||
| FedEx Express segment | $ | 11,275 | $ | 8,560 | 32 | % | $ | 42,078 | $ | 35,513 | 18 | % | ||||||
| FedEx Ground segment | 8,132 | 6,394 | 27 | % | 30,496 | 22,733 | 34 | % | ||||||||||
| FedEx Freight segment | 2,235 | 1,615 | 38 | % | 7,833 | 7,102 | 10 | % | ||||||||||
| FedEx Services segment | 8 | 7 | 14 | % | 32 | 22 | 45 | % | ||||||||||
| Other and eliminations^1^ | 915 | 782 | 17 | % | 3,520 | 3,847 | (9 | %) | ||||||||||
| Total Revenue | 22,565 | 17,358 | 30 | % | 83,959 | 69,217 | 21 | % | ||||||||||
| Operating Expenses^2^: | ||||||||||||||||||
| Salaries and employee benefits | 7,868 | 6,327 | 24 | % | 30,173 | 25,031 | 21 | % | ||||||||||
| Purchased transportation | 5,630 | 4,552 | 24 | % | 21,674 | 17,466 | 24 | % | ||||||||||
| Rentals | 1,082 | 904 | 20 | % | 4,155 | 3,712 | 12 | % | ||||||||||
| Depreciation and amortization | 975 | 927 | 5 | % | 3,793 | 3,615 | 5 | % | ||||||||||
| Fuel | 936 | 517 | 81 | % | 2,882 | 3,156 | (9 | %) | ||||||||||
| Maintenance and repairs | 885 | 667 | 33 | % | 3,328 | 2,893 | 15 | % | ||||||||||
| Business realignment costs^3^ | 106 | — | NM | 116 | — | NM | ||||||||||||
| Goodwill and other asset impairment charges^4^ | — | 369 | NM | — | 435 | NM | ||||||||||||
| Other | 3,286 | 2,620 | 25 | % | 11,981 | 10,492 | 14 | % | ||||||||||
| Total Operating Expenses | 20,768 | 16,883 | 23 | % | 78,102 | 66,800 | 17 | % | ||||||||||
| Operating Income (Loss): | ||||||||||||||||||
| FedEx Express segment | 737 | 338 | 118 | % | 2,810 | 996 | 182 | % | ||||||||||
| FedEx Ground segment | 1,105 | 673 | 64 | % | 3,193 | 2,014 | 59 | % | ||||||||||
| FedEx Freight segment | 360 | 132 | 173 | % | 1,005 | 580 | 73 | % | ||||||||||
| Corporate, eliminations and other^1^ | (405 | ) | (668 | ) | (39 | %) | (1,151 | ) | (1,173 | ) | (2 | %) | ||||||
| Total Operating Income | 1,797 | 475 | 278 | % | 5,857 | 2,417 | 142 | % | ||||||||||
| Other (Expense) Income: | ||||||||||||||||||
| Interest, net | (186 | ) | (174 | ) | 7 | % | (741 | ) | (617 | ) | 20 | % | ||||||
| Other retirement plans income (expense)^5^ | 1,430 | (626 | ) | (328 | %) | 1,983 | (122 | ) | (1,725 | %) | ||||||||
| Loss on debt extinguishment^6^ | (393 | ) | — | NM | (393 | ) | — | NM | ||||||||||
| Other, net | (35 | ) | 6 | (683 | %) | (32 | ) | (9 | ) | 256 | % | |||||||
| Total Other (Expense) Income | 816 | (794 | ) | (203 | %) | 817 | (748 | ) | (209 | %) | ||||||||
| Income (Loss) Before Income Taxes | 2,613 | (319 | ) | (919 | %) | 6,674 | 1,669 | 300 | % | |||||||||
| Provision for Income Taxes | 745 | 15 | 4,867 | % | 1,443 | 383 | 277 | % | ||||||||||
| Net Income (Loss) | $ | 1,868 | $ | (334 | ) | (659 | %) | $ | 5,231 | $ | 1,286 | 307 | % | |||||
| Diluted Earnings (Loss) Per Share | $ | 6.88 | $ | (1.28 | ) | (638 | %) | $ | 19.45 | $ | 4.90 | 297 | % | |||||
| Weighted Average Common and | ||||||||||||||||||
| Common Equivalent Shares | 271 | 261 | 4 | % | 268 | 262 | 2 | % | ||||||||||
| Capital Expenditures | $ | 1,682 | $ | 1,163 | 45 | % | $ | 5,884 | $ | 5,868 | — |
1 – Includes the FedEx Logistics and FedEx Office operating segments, as well as the financial results of ShopRunner, Inc. beginning December 23, 2020.
2 – Includes integration expenses of $64 million for the fourth quarter and $210 million for the full year of fiscal 2021 and $63 million for the fourth quarter and $270 million for the full year of fiscal 2020.
3 – Includes $106 million of business realignment costs associated with the workforce reduction plan in Europe for the fourth quarter and $116 million for the full year of fiscal 2021.
4 – Includes goodwill and other asset impairment charges of $369 million associated with the FedEx Office and FedEx Logistics operating segments for the fourth quarter and full year and $66 million at the FedEx Express segment associated with the decision to permanently retire certain aircraft and related engines for the full year of fiscal 2020.
5 – Includes a $1.2 billion MTM adjustment for the fourth quarter and full year of fiscal 2021 and a ($794 million) MTM adjustment for the fourth quarter and full year of fiscal 2020. Also includes a ($52 million) MTM adjustment for the full year of fiscal 2021 associated with amending a TNT Express European pension plan to harmonize retirement benefits.
6 – Includes a loss of debt extinguishment of $393 million for the fourth quarter and full year of fiscal 2021 associated with the capital allocation strategy, which includes reducing outstanding debt.
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Fourth Quarter Fiscal 2021
(In millions)
| 2021 | 2020 | ||||
| ASSETS | |||||
| Current Assets | |||||
| Cash and cash equivalents | 7,087 | $ | 4,881 | ||
| Receivables, less allowances | 11,977 | 10,102 | |||
| Spare parts, supplies and fuel, less allowances | 587 | 572 | |||
| Prepaid expenses and other | 929 | 828 | |||
| Total current assets | 20,580 | 16,383 | |||
| Property and Equipment, at Cost | 70,077 | 65,024 | |||
| Less accumulated depreciation and amortization | 34,325 | 31,416 | |||
| Net property and equipment | 35,752 | 33,608 | |||
| Other Long-Term Assets | |||||
| Operating lease right-of-use assets, net | 15,383 | 13,917 | |||
| Goodwill | 6,992 | 6,372 | |||
| Other assets | 4,070 | 3,257 | |||
| Total other long-term assets | 26,445 | 23,546 | |||
| 82,777 | $ | 73,537 | |||
| LIABILITIES AND COMMON STOCKHOLDERS'<br> INVESTMENT | |||||
| Current Liabilities | |||||
| Current portion of long-term debt | 146 | $ | 51 | ||
| Accrued salaries and employee benefits | 2,903 | 1,569 | |||
| Accounts payable | 3,841 | 3,269 | |||
| Operating lease liabilities | 2,208 | 1,923 | |||
| Accrued expenses | 4,562 | 3,532 | |||
| Total current liabilities | 13,660 | 10,344 | |||
| Long-Term Debt, Less Current Portion | 20,733 | 21,952 | |||
| Other Long-Term Liabilities | |||||
| Deferred income taxes | 3,927 | 3,162 | |||
| Pension, postretirement healthcare and other benefit obligations | 3,501 | 5,019 | |||
| Self-insurance accruals | 2,430 | 2,104 | |||
| Operating lease liabilities | 13,375 | 12,195 | |||
| Other liabilities | 983 | 466 | |||
| Total other long-term liabilities | 24,216 | 22,946 | |||
| Commitments and Contingencies | |||||
| Common Stockholders' Investment | |||||
| Common stock, 0.10 par value, 800 million shares authorized | 32 | 32 | |||
| Additional paid-in capital | 3,481 | 3,356 | |||
| Retained earnings | 29,817 | 25,216 | |||
| Accumulated other comprehensive loss | (732 | ) | (1,147 | ) | |
| Treasury stock, at cost | (8,430 | ) | (9,162 | ) | |
| Total common stockholders' investment | 24,168 | 18,295 | |||
| 82,777 | $ | 73,537 |
All values are in US Dollars.
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Fourth Quarter Fiscal 2021
(In millions)
(Unaudited)
| Year Ended<br><br><br>May 31, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| Operating Activities: | ||||||
| Net income | $ | 5,231 | $ | 1,286 | ||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||
| Depreciation and amortization | 3,793 | 3,615 | ||||
| Retirement plans mark-to-market adjustments | (1,176 | ) | 794 | |||
| Loss on extinguishment of debt | 393 | — | ||||
| Business realignment costs | 102 | — | ||||
| Goodwill and other asset impairment charges | — | 435 | ||||
| Other, net | 3,664 | 3,059 | ||||
| Changes in operating assets and liabilities, net | (1,872 | ) | (4,092 | ) | ||
| Net cash provided by operating activities | 10,135 | 5,097 | ||||
| Investing Activities: | ||||||
| Capital expenditures | (5,884 | ) | (5,868 | ) | ||
| Business acquisitions, net of cash acquired | (228 | ) | — | |||
| Proceeds from asset dispositions and other | 102 | 22 | ||||
| Net cash used in investing activities | (6,010 | ) | (5,846 | ) | ||
| Financing Activities: | ||||||
| Payments on debt | (6,318 | ) | (2,548 | ) | ||
| Proceeds from debt issuances | 4,212 | 6,556 | ||||
| Proceeds from stock issuances | 740 | 64 | ||||
| Dividends paid | (686 | ) | (679 | ) | ||
| Purchase of treasury stock | — | (3 | ) | |||
| Other, net | (38 | ) | (9 | ) | ||
| Cash (used in) provided by financing activities | (2,090 | ) | 3,381 | |||
| Effect of exchange rate changes on cash | 171 | (70 | ) | |||
| Net increase in cash and cash equivalents | 2,206 | 2,562 | ||||
| Cash and cash equivalents at beginning of period | 4,881 | 2,319 | ||||
| Cash and cash equivalents at end of period | $ | 7,087 | $ | 4,881 |
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2021
(Dollars in millions)
(Unaudited)
| Three Months Ended<br><br><br>May 31, | Twelve Months Ended<br><br><br>May 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||
| Revenue: | ||||||||||||||||||
| Package Revenue: | ||||||||||||||||||
| U.S. Overnight Box | $ | 2,165 | $ | 1,639 | 32 | % | $ | 8,116 | $ | 7,234 | 12 | % | ||||||
| U.S. Overnight Envelope | 486 | 381 | 28 | % | 1,791 | 1,776 | 1 | % | ||||||||||
| Total U.S. Overnight | 2,651 | 2,020 | 31 | % | 9,907 | 9,010 | 10 | % | ||||||||||
| U.S. Deferred | 1,266 | 975 | 30 | % | 4,984 | 4,038 | 23 | % | ||||||||||
| Total U.S. Package Revenue | 3,917 | 2,995 | 31 | % | 14,891 | 13,048 | 14 | % | ||||||||||
| International Priority | 2,894 | 2,010 | 44 | % | 10,317 | 7,354 | 40 | % | ||||||||||
| International Economy | 705 | 544 | 30 | % | 2,632 | 3,082 | (15 | %) | ||||||||||
| Total International Export Package | 3,599 | 2,554 | 41 | % | 12,949 | 10,436 | 24 | % | ||||||||||
| International Domestic^1^ | 1,184 | 863 | 37 | % | 4,640 | 4,179 | 11 | % | ||||||||||
| Total Package Revenue | 8,700 | 6,412 | 36 | % | 32,480 | 27,663 | 17 | % | ||||||||||
| Freight Revenue: | ||||||||||||||||||
| U.S. | 833 | 866 | (4 | %) | 3,325 | 2,998 | 11 | % | ||||||||||
| International Priority | 865 | 539 | 60 | % | 3,030 | 1,915 | 58 | % | ||||||||||
| International Economy | 420 | 374 | 12 | % | 1,582 | 1,930 | (18 | %) | ||||||||||
| International Airfreight | 49 | 73 | (33 | %) | 245 | 270 | (9 | %) | ||||||||||
| Total Freight Revenue | 2,167 | 1,852 | 17 | % | 8,182 | 7,113 | 15 | % | ||||||||||
| Other Revenue^2^ | 408 | 296 | 38 | % | 1,416 | 737 | 92 | % | ||||||||||
| Total Express Revenue | $ | 11,275 | $ | 8,560 | 32 | % | $ | 42,078 | $ | 35,513 | 18 | % | ||||||
| Operating Expenses: | ||||||||||||||||||
| Salaries and employee benefits | 4,201 | 3,467 | 21 | % | 16,217 | 13,764 | 18 | % | ||||||||||
| Purchased transportation | 1,531 | 1,121 | 37 | % | 5,744 | 4,832 | 19 | % | ||||||||||
| Rentals and landing fees | 600 | 489 | 23 | % | 2,296 | 2,045 | 12 | % | ||||||||||
| Depreciation and amortization | 497 | 485 | 2 | % | 1,946 | 1,894 | 3 | % | ||||||||||
| Fuel | 789 | 423 | 87 | % | 2,461 | 2,664 | (8 | %) | ||||||||||
| Maintenance and repairs | 586 | 414 | 42 | % | 2,228 | 1,874 | 19 | % | ||||||||||
| Business realignment costs | 106 | — | NM | 116 | — | NM | ||||||||||||
| Goodwill and other asset impairment charges | — | — | — | — | 66 | NM | ||||||||||||
| Intercompany charges | 540 | 487 | 11 | % | 1,996 | 1,956 | 2 | % | ||||||||||
| Other | 1,688 | 1,336 | 26 | % | 6,264 | 5,422 | 16 | % | ||||||||||
| Total Operating Expenses | 10,538 | 8,222 | 28 | % | 39,268 | 34,517 | 14 | % | ||||||||||
| Operating Income | $ | 737 | $ | 338 | 118 | % | $ | 2,810 | $ | 996 | 182 | % | ||||||
| Operating Margin | 6.5 | % | 3.9 | % | 2.6 pts | 6.7 | % | 2.8 | % | 3.9 pts |
1 – International Domestic revenue relates to international intra-country operations.
2 – Includes the operations of FedEx Custom Critical beginning March 1, 2020 and FedEx Cross Border beginning June 1, 2020.
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2021
(Unaudited)
| Three Months Ended<br><br><br>May 31, | Twelve Months Ended<br><br><br>May 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||
| PACKAGE STATISTICS | ||||||||||||||
| Average Daily Package Volume (000s): | ||||||||||||||
| U.S. Overnight Box | 1,442 | 1,126 | 28 | % | 1,427 | 1,211 | 18 | % | ||||||
| U.S. Overnight Envelope | 519 | 438 | 18 | % | 505 | 521 | (3 | %) | ||||||
| Total U.S. Overnight Package | 1,961 | 1,564 | 25 | % | 1,932 | 1,732 | 12 | % | ||||||
| U.S. Deferred | 1,307 | 1,102 | 19 | % | 1,351 | 1,076 | 26 | % | ||||||
| Total U.S. Domestic Package | 3,268 | 2,666 | 23 | % | 3,283 | 2,808 | 17 | % | ||||||
| International Priority | 796 | 600 | 33 | % | 752 | 559 | 35 | % | ||||||
| International Economy | 288 | 227 | 27 | % | 284 | 282 | 1 | % | ||||||
| Total International Export Package | 1,084 | 827 | 31 | % | 1,036 | 841 | 23 | % | ||||||
| International Domestic^1^ | 2,171 | 1,928 | 13 | % | 2,362 | 2,337 | 1 | % | ||||||
| Total Average Daily Packages | 6,523 | 5,421 | 20 | % | 6,681 | 5,986 | 12 | % | ||||||
| Yield (Revenue Per Package): | ||||||||||||||
| U.S. Overnight Box | $ | 23.09 | $ | 22.73 | 2 | % | $ | 22.31 | $ | 23.51 | (5 | %) | ||
| U.S. Overnight Envelope | 14.41 | 13.59 | 6 | % | 13.90 | 13.43 | 3 | % | ||||||
| U.S. Overnight Composite | 20.79 | 20.17 | 3 | % | 20.11 | 20.48 | (2 | %) | ||||||
| U.S. Deferred | 14.90 | 13.83 | 8 | % | 14.46 | 14.78 | (2 | %) | ||||||
| U.S. Domestic Composite | 18.44 | 17.55 | 5 | % | 17.79 | 18.30 | (3 | %) | ||||||
| International Priority | 55.89 | 52.34 | 7 | % | 53.84 | 51.75 | 4 | % | ||||||
| International Economy | 37.67 | 37.47 | 1 | % | 36.32 | 43.03 | (16 | %) | ||||||
| Total International Export Composite | 51.05 | 48.26 | 6 | % | 49.03 | 48.83 | — | |||||||
| International Domestic^1^ | 8.39 | 7.00 | 20 | % | 7.70 | 7.04 | 9 | % | ||||||
| Composite Package Yield | $ | 20.51 | $ | 18.48 | 11 | % | $ | 19.06 | $ | 18.19 | 5 | % | ||
| FREIGHT STATISTICS | ||||||||||||||
| Average Daily Freight Pounds (000s): | ||||||||||||||
| U.S. | 8,662 | 9,372 | (8 | %) | 9,231 | 8,528 | 8 | % | ||||||
| International Priority | 6,608 | 4,807 | 37 | % | 6,155 | 4,895 | 26 | % | ||||||
| International Economy | 11,691 | 11,071 | 6 | % | 12,245 | 13,450 | (9 | %) | ||||||
| International Airfreight | 1,280 | 1,440 | (11 | %) | 1,469 | 1,535 | (4 | %) | ||||||
| Total Avg Daily Freight Pounds | 28,241 | 26,690 | 6 | % | 29,100 | 28,408 | 2 | % | ||||||
| Revenue Per Freight Pound: | ||||||||||||||
| U.S. | $ | 1.48 | $ | 1.44 | 3 | % | $ | 1.41 | $ | 1.38 | 2 | % | ||
| International Priority | 2.02 | 1.75 | 15 | % | 1.93 | 1.54 | 25 | % | ||||||
| International Economy | 0.55 | 0.53 | 4 | % | 0.51 | 0.56 | (9 | %) | ||||||
| International Airfreight | 0.59 | 0.79 | (25 | %) | 0.65 | 0.69 | (6 | %) | ||||||
| Composite Freight Yield | $ | 1.18 | $ | 1.08 | 9 | % | $ | 1.10 | $ | 0.99 | 11 | % | ||
| Operating Weekdays | 65 | 64 | 2 | % | 255 | 254 | — |
1 – International Domestic revenue relates to international intra-country operations.
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2021
(Dollars in millions)
(Unaudited)
| Three Months Ended<br><br><br>May 31, | Twelve Months Ended<br><br><br>May 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| Revenue | $ | 8,132 | $ | 6,394 | 27 | % | $ | 30,496 | $ | 22,733 | 34 | % | ||||||
| Operating Expenses: | ||||||||||||||||||
| Salaries and employee benefits | 1,577 | 1,172 | 35 | % | 6,060 | 4,060 | 49 | % | ||||||||||
| Purchased transportation | 3,602 | 3,027 | 19 | % | 14,126 | 10,799 | 31 | % | ||||||||||
| Rentals | 307 | 245 | 25 | % | 1,166 | 989 | 18 | % | ||||||||||
| Depreciation and amortization | 220 | 204 | 8 | % | 843 | 789 | 7 | % | ||||||||||
| Fuel | 6 | 4 | 50 | % | 21 | 15 | 40 | % | ||||||||||
| Maintenance and repairs | 140 | 106 | 32 | % | 496 | 392 | 27 | % | ||||||||||
| Intercompany charges | 504 | 407 | 24 | % | 1,862 | 1,581 | 18 | % | ||||||||||
| Other | 671 | 556 | 21 | % | 2,729 | 2,094 | 30 | % | ||||||||||
| Total Operating Expenses | 7,027 | 5,721 | 23 | % | 27,303 | 20,719 | 32 | % | ||||||||||
| Operating Income | $ | 1,105 | $ | 673 | 64 | % | $ | 3,193 | $ | 2,014 | 59 | % | ||||||
| Operating Margin | 13.6 | % | 10.5 | % | 3.1 pts | 10.5 | % | 8.9 | % | 1.6 pts | ||||||||
| OPERATING STATISTICS | ||||||||||||||||||
| Operating Weekdays | 65 | 64 | 2 | % | 255 | 254 | — | |||||||||||
| Average Daily Package Volume (000s) | 12,050 | 11,063 | 9 | % | 12,272 | 9,997 | 23 | % | ||||||||||
| Yield (Revenue Per Package) | $ | 10.31 | $ | 9.01 | 14 | % | $ | 9.70 | $ | 8.93 | 9 | % |
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2021
(Dollars in millions)
(Unaudited)
| Three Months Ended<br><br><br>May 31, | Twelve Months Ended<br><br><br>May 31, | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| Revenue | $ | 2,235 | $ | 1,615 | 38 | % | $ | 7,833 | $ | 7,102 | 10 | % | ||||||
| Operating Expenses: | ||||||||||||||||||
| Salaries and employee benefits | 982 | 784 | 25 | % | 3,666 | 3,449 | 6 | % | ||||||||||
| Purchased transportation | 245 | 145 | 69 | % | 827 | 695 | 19 | % | ||||||||||
| Rentals | 57 | 50 | 14 | % | 229 | 208 | 10 | % | ||||||||||
| Depreciation and amortization | 102 | 98 | 4 | % | 417 | 381 | 9 | % | ||||||||||
| Fuel | 140 | 91 | 54 | % | 398 | 476 | (16 | %) | ||||||||||
| Maintenance and repairs | 63 | 55 | 15 | % | 227 | 247 | (8 | %) | ||||||||||
| Intercompany charges | 136 | 127 | 7 | % | 505 | 516 | (2 | %) | ||||||||||
| Other | 150 | 133 | 13 | % | 559 | 550 | 2 | % | ||||||||||
| Total Operating Expenses | 1,875 | 1,483 | 26 | % | 6,828 | 6,522 | 5 | % | ||||||||||
| Operating Income | $ | 360 | $ | 132 | 173 | % | $ | 1,005 | $ | 580 | 73 | % | ||||||
| Operating Margin | 16.1 | % | 8.2 | % | 7.9 pts | 12.8 | % | 8.2 | % | 4.6 pts | ||||||||
| OPERATING STATISTICS | ||||||||||||||||||
| Operating Weekdays | 65 | 64 | 2 | % | 253 | 252 | — | |||||||||||
| Average Daily Shipments (000s): | ||||||||||||||||||
| Priority | 82.7 | 63.7 | 30 | % | 76.2 | 72.5 | 5 | % | ||||||||||
| Economy | 34.6 | 26.6 | 30 | % | 32.2 | 30.5 | 6 | % | ||||||||||
| Total Average Daily Shipments | 117.3 | 90.3 | 30 | % | 108.4 | 103.0 | 5 | % | ||||||||||
| Weight Per Shipment (lbs): | ||||||||||||||||||
| Priority | 1,105 | 1,151 | (4 | %) | 1,104 | 1,146 | (4 | %) | ||||||||||
| Economy | 982 | 1,006 | (2 | %) | 987 | 986 | — | |||||||||||
| Composite Weight Per Shipment | 1,069 | 1,108 | (4 | %) | 1,069 | 1,098 | (3 | %) | ||||||||||
| Revenue/Shipment: | ||||||||||||||||||
| Priority | $ | 279.51 | $ | 263.12 | 6 | % | $ | 269.98 | $ | 260.39 | 4 | % | ||||||
| Economy | 322.26 | 308.42 | 4 | % | 313.67 | 301.55 | 4 | % | ||||||||||
| Composite Revenue/Shipment | $ | 292.12 | $ | 276.45 | 6 | % | $ | 282.95 | $ | 272.56 | 4 | % | ||||||
| Revenue/CWT: | ||||||||||||||||||
| Priority | $ | 25.29 | $ | 22.86 | 11 | % | $ | 24.45 | $ | 22.73 | 8 | % | ||||||
| Economy | 32.83 | 30.67 | 7 | % | 31.80 | 30.59 | 4 | % | ||||||||||
| Composite Revenue/CWT | $ | 27.33 | $ | 24.95 | 10 | % | $ | 26.46 | $ | 24.82 | 7 | % |
18