8-K

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 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 2023			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.

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 2023												FY 2024
	FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH QUARTER			FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH 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.


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 2023			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.


Federal Express Segment
Quarterly Consolidated Statements of Income
FY 2023 – FY 2024
Year ended May 31
In millions
	FY 2023												FY 2024
	FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH QUARTER			FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH 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.


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 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 QUARTER		SECOND QUARTER		THIRD QUARTER		FOURTH QUARTER		FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH 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 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 QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH QUARTER			FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH 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 QUARTER		SECOND QUARTER		THIRD QUARTER		FOURTH QUARTER		FIRST QUARTER			SECOND QUARTER			THIRD QUARTER			FOURTH 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.