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 18, 2014
FEDEX CORPORATION
(Exact
name of registrant as specified in its charter)
Commission
File Number 1-15829
|
|
|
Delaware |
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62-1721435 |
(State or other jurisdiction
of incorporation) |
|
(IRS Employer
Identification No.) |
|
|
942 South Shady Grove Road, Memphis, Tennessee |
|
38120 |
(Address of principal executive offices) |
|
(ZIP Code) |
Registrants telephone number, including area code: (901) 818-7500
FEDERAL EXPRESS CORPORATION
(Exact name of registrant as specified in its charter)
Commission
File Number 1-7806
|
|
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Delaware |
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71-0427007 |
(State or other jurisdiction
of incorporation) |
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(IRS Employer
Identification No.) |
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3610 Hacks Cross Road, Memphis, Tennessee |
|
38125 |
(Address of principal executive offices) |
|
(ZIP Code) |
Registrants telephone number, including area code: (901) 369-3600
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)) |
EXPLANATORY NOTE
The information in this Report, including the exhibit, 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. |
Attached as Exhibit 99.1 and
incorporated herein by reference is a copy of FedEx Corporations press release, dated June 18, 2014, announcing its and its wholly owned subsidiary Federal Express Corporations financial results for the fiscal quarter and year ended
May 31, 2014.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. |
Financial Statements and Exhibits. |
|
(d) |
Exhibits. The following exhibit is being furnished as part of this Report. |
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Exhibit
Number |
|
Description |
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|
99.1 |
|
Press Release of FedEx Corporation dated June 18, 2014. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf
by the undersigned hereunto duly authorized.
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FedEx Corporation |
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Date: June 18, 2014 |
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By: |
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/s/ HERBERT C. NAPPIER |
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Herbert C. Nappier |
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Staff Vice President and Corporate
Controller |
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Federal Express Corporation |
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Date: June 18, 2014 |
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By: |
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/s/ CATHY D. ROSS |
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Cathy D. Ross |
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Executive Vice President, Chief Financial Officer
and Director |
3
EXHIBIT INDEX
|
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Exhibit
Number |
|
Description |
|
|
99.1 |
|
Press Release of FedEx Corporation dated June 18, 2014. |
E-1
Exhibit 99.1
FOR IMMEDIATE RELEASE
FedEx
Corp. Reports Higher Fourth Quarter Earnings
Strong Earnings Growth Expected in Fiscal 2015
MEMPHIS, Tenn., June 18, 2014
FedEx Corp. (NYSE: FDX) today reported earnings of $2.46 per diluted share for the fourth quarter ended May 31.
Last years fourth quarter earnings were $2.13 per diluted share, excluding a $0.98 per diluted share business realignment program charge and a $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including last
years charges, earnings were $0.95 per diluted share.
An outstanding fourth quarter helped FedEx post solid results for fiscal 2014, and we
believe we are well positioned for a strong fiscal 2015, said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. I would like to extend my sincere appreciation to the entire FedEx team for their contribution
to our results and their continued commitment to providing outstanding service to our customers and connecting people and possibilities around the world.
Fourth Quarter Results
FedEx Corp. reported the
following consolidated results for the fourth quarter:
|
|
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|
|
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|
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Fiscal 2014 |
|
Fiscal 2013 |
|
|
|
Adjusted
(non-GAAP) |
|
As Reported
(GAAP) |
Revenue |
|
$11.8 billion |
|
$11.4 billion |
|
$11.4 billion |
Operating Income |
|
$1.18 billion |
|
$1.10 billion |
|
$502 million |
Operating Margin |
|
10.0% |
|
9.6% |
|
4.4% |
Net Income |
|
$730 million |
|
$679 million |
|
$303 million |
Diluted EPS |
|
$2.46 |
|
$2.13 |
|
$0.95 |
- more -
1
Excluding business realignment program costs and aircraft impairment charges last year, operating results
improved on higher volumes and operational efficiencies at FedEx Freight, increased volumes and yields at FedEx Ground, and better revenue and cost performance at FedEx Express.
During the fourth quarter, the company acquired 9.9 million shares of FedEx common stock, increasing the fiscal 2014 purchase total to 36.8 million
shares. As of May 31, 2014, 5.3 million shares remained under the existing share repurchase authorizations. Share repurchases benefited fourth quarter earnings by $0.12 per diluted share.
Full Year Results
FedEx Corp. reported the
following consolidated results for the full year:
|
|
|
|
|
|
|
|
|
Fiscal 2014 |
|
Fiscal 2013 |
|
|
|
Adjusted
(non-GAAP) |
|
As Reported
(GAAP) |
Revenue |
|
$45.6 billion |
|
$44.3 billion |
|
$44.3 billion |
Operating Income |
|
$3.45 billion |
|
$3.21 billion |
|
$2.55 billion |
Operating Margin |
|
7.6% |
|
7.3% |
|
5.8% |
Net Income |
|
$2.10 billion |
|
$1.98 billion |
|
$1.56 billion |
Diluted EPS |
|
$6.75 |
|
$6.23 |
|
$4.91 |
Capital spending for fiscal 2014 was $3.5 billion.
Outlook
For fiscal 2015, FedEx projects earnings
to be $8.50 to $9.00 per diluted share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. Capital spending for fiscal 2015 is expected to increase to approximately $4.2 billion, which includes planned
aircraft deliveries to support the companys fleet modernization program and continued expansion of the FedEx Ground network.
Fiscal 2014 was
a good year for FedEx and we expect fiscal 2015 to be even better, said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. With continued modest economic improvement, our results in fiscal 2015 should
benefit from base performance improvement and ongoing execution of our profit improvement initiatives at FedEx Express, continued profitable growth at FedEx Ground and FedEx Freight, and our share repurchase program. We remain committed to improving
earnings, cash flows, returns on invested capital and returns to shareowners, with the most recent example of the latter being our announced 33% increase in the quarterly dividend.
- more -
2
FedEx Express Segment
For the fourth quarter, the FedEx Express segment reported:
|
|
|
Revenue of $7.00 billion, up slightly from last years $6.98 billion |
|
|
|
Operating income of $475 million, up 3% from an adjusted $460 million a year ago. Including charges, last years operating income was $0. |
|
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|
Operating margin of 6.8%, up from an adjusted 6.6% the previous year. Including charges, last years operating margin was 0.0%. |
Revenue increased due to 2% higher package volume and higher base package yields, partially offset by the effects of one fewer operating day, lower fuel
surcharges and lower express freight revenues. U.S. domestic average daily volume increased 3%, while U.S. domestic revenue per package was flat as lower fuel surcharges offset higher weight per package and favorable service mix. International
export revenue per package grew 2%, as improved rates, higher weight per package and favorable service mix more than offset lower fuel surcharges. International export volume grew 2%, as FedEx International Economy grew 5% while FedEx International
Priority® was flat despite reduced lower-yielding distribution services volume.
Operating
results increased as higher base package yields and volume, along with lower pension expense, more than offset the significant negative net impact of fuel, lower freight revenue and one fewer operating day.
On May 1, 2014, Express completed the acquisition of Supaswift businesses in South Africa and six other countries: Botswana, Malawi, Mozambique, Namibia,
Swaziland and Zambia. The acquisition of Supaswift will increase FedExs capabilities in one of the worlds most rapidly developing regions and offer tremendous opportunities for both local and international customers to access new
markets.
- more -
3
FedEx Ground Segment
For the fourth quarter, the FedEx Ground segment reported:
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Revenue of $3.01 billion, up 8% from last years $2.78 billion |
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Operating income of $586 million, up 5% from an adjusted $557 million a year ago. Including charges, last years operating income was $464 million. |
|
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Operating margin of 19.5%, down from an adjusted 20.1% the previous year. Including charges, last years operating margin was 16.7%. |
FedEx Ground average daily volume grew 8% in the fourth quarter, primarily driven by growth in e-commerce. Revenue per package increased 2% due to rate
increases and higher residential surcharges, partially offset by lower fuel surcharges. FedEx SmartPost average daily volume decreased 8% while net revenue per package was up 8% due to rate increases and improved customer mix, partially offset by
higher postage costs.
Operating results benefited from higher Ground volume and revenue per package, partially offset by higher network expansion costs
and one fewer operating day.
FedEx Freight Segment
For the fourth quarter, the FedEx Freight segment reported:
|
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Revenue of $1.55 billion, up 12% from last years $1.39 billion |
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|
Operating income of $122 million, up 51% from an adjusted $81 million a year ago. Including charges, last years operating income was $38 million. |
|
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Operating margin of 7.9%, up from an adjusted 5.8% the previous year. Including charges, last years operating margin was 2.7%. |
Less-than-truckload (LTL) average daily shipments grew 12%, including a 14% increase in demand for Priority service. Weight per shipment grew 2%, driving a 1%
increase in revenue per shipment.
Operating results improved due to the positive impacts of higher average daily shipments, higher weight per shipment
and improved operational efficiencies, partially offset by one fewer operating day.
Effective June 2, 2014, FedEx Freight increased its published
fuel surcharge indices by three percentage points.
- more -
4
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual
revenues of $46 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the worlds most admired and
trusted employers, FedEx inspires its more than 300,000 team members to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more
information, visit news.fedex.com.
Additional information and operating data are contained in the companys annual report, Form 10-K, Form
10-Qs and fourth quarter fiscal 2014 Statistical Book. These materials, as well as a webcast of the earnings release conference call to be held at 8:30 a.m. EDT on June 18 are available on the companys website at
investors.fedex.com. A replay of the conference call webcast will be posted on our Web site following the call.
Certain statements in this press
release may be considered forward-looking statements, such as statements relating to managements views with respect to future events and financial performance. 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, economic
conditions in the global markets in which we operate, our ability to execute on our profit improvement program at FedEx Express, legal challenges or changes related to FedEx Grounds owner-operators, new U.S. domestic or international
government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match
capacity to shifting volume levels and other factors which can be found in FedEx Corp.s and its subsidiaries press releases and filings with the SEC.
Media Contact: Patrick Fitzgerald 901-818-7300
Investor
Contact: Mickey Foster 901-818-7468
Home Page: fedex.com
- more -
5
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
The company
believes that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Excluding charges associated with the
business realignment program and a noncash aircraft impairment charge at FedEx Express from prior period results will allow for more accurate comparisons of the companys operating performance. Where applicable, the impacts of these events are
shown net of incentive compensation impacts. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP measures to the most directly comparable GAAP measures.
Fourth Quarter Fiscal 2013
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FedEx Corporation |
|
Dollars in millions, except EPS |
|
Operating |
|
|
Net |
|
|
Diluted Earnings |
|
|
|
Income |
|
|
Margin |
|
|
Income |
|
|
Per Share |
|
Non-GAAP Measure |
|
$ |
1,098 |
|
|
|
9.6% |
|
|
$ |
679 |
|
|
$ |
2.13 |
|
Business Realignment Program |
|
|
(496 |
) |
|
|
(4.3% |
) |
|
|
(313 |
) |
|
|
(0.98 |
) |
Aircraft Impairment |
|
|
(100 |
) |
|
|
(0.9% |
) |
|
|
(63 |
) |
|
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Measure |
|
$ |
502 |
|
|
|
4.4% |
|
|
$ |
303 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Dollars in millions, except EPS |
|
FedEx Express Operating |
|
|
FedEx Ground Operating |
|
|
FedEx Freight Operating |
|
|
|
Income |
|
|
Margin |
|
|
Income |
|
|
Margin |
|
|
Income |
|
|
Margin |
|
Non-GAAP Measure |
|
$ |
460 |
|
|
|
6.6% |
|
|
$ |
557 |
|
|
|
20.1% |
|
|
$ |
81 |
|
|
|
5.8% |
|
Business Realignment Program |
|
|
(360 |
) |
|
|
(5.2% |
) |
|
|
(93 |
) |
|
|
(3.4% |
) |
|
|
(43 |
) |
|
|
(3.1% |
) |
Aircraft Impairment |
|
|
(100 |
) |
|
|
(1.4% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
GAAP Measure |
|
$ |
0 |
|
|
|
0.0% |
|
|
$ |
464 |
|
|
|
16.7% |
|
|
$ |
38 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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- more -
6
Full Year Fiscal 2013
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FedEx Corporation |
|
Dollars in millions, except EPS |
|
Operating |
|
|
Net |
|
|
Diluted Earnings |
|
|
|
|
|
Income |
|
|
Margin |
|
|
Income |
|
|
Per Share1 |
|
Non-GAAP Measure |
|
$ |
3,211 |
|
|
|
7.3% |
|
|
$ |
1,977 |
|
|
$ |
6.23 |
|
Business Realignment Program |
|
|
(560 |
) |
|
|
(1.3% |
) |
|
|
(353 |
) |
|
|
(1.11 |
) |
Aircraft Impairment |
|
|
(100 |
) |
|
|
(0.2% |
) |
|
|
(63 |
) |
|
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Measure |
|
$ |
2,551 |
|
|
|
5.8% |
|
|
$ |
1,561 |
|
|
$ |
4.91 |
|
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1 |
Does not sum to total due to rounding. |
# # #
7
FEDEX CORP. FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2014
(In millions, except earnings per share)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
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|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
|
% |
|
|
2014 |
|
|
2013 |
|
|
% |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Express segment |
|
$ |
6,998 |
|
|
$ |
6,977 |
|
|
|
|
|
|
$ |
27,121 |
|
|
$ |
27,171 |
|
|
|
|
|
FedEx Ground segment |
|
|
3,007 |
|
|
|
2,776 |
|
|
|
8% |
|
|
|
11,617 |
|
|
|
10,578 |
|
|
|
10% |
|
FedEx Freight segment |
|
|
1,552 |
|
|
|
1,388 |
|
|
|
12% |
|
|
|
5,757 |
|
|
|
5,401 |
|
|
|
7% |
|
FedEx Services segment |
|
|
402 |
|
|
|
406 |
|
|
|
(1% |
) |
|
|
1,536 |
|
|
|
1,580 |
|
|
|
(3% |
) |
Other & eliminations |
|
|
(120 |
) |
|
|
(112 |
) |
|
|
(7% |
) |
|
|
(464 |
) |
|
|
(443 |
) |
|
|
(5% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
11,839 |
|
|
|
11,435 |
|
|
|
4% |
|
|
|
45,567 |
|
|
|
44,287 |
|
|
|
3% |
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,163 |
|
|
|
4,192 |
|
|
|
(1% |
) |
|
|
16,555 |
|
|
|
16,570 |
|
|
|
|
|
Purchased transportation |
|
|
2,029 |
|
|
|
1,861 |
|
|
|
9% |
|
|
|
8,011 |
|
|
|
7,272 |
|
|
|
10% |
|
Rentals and landing fees |
|
|
672 |
|
|
|
633 |
|
|
|
6% |
|
|
|
2,622 |
|
|
|
2,521 |
|
|
|
4% |
|
Depreciation and amortization |
|
|
649 |
|
|
|
622 |
|
|
|
4% |
|
|
|
2,587 |
|
|
|
2,386 |
|
|
|
8% |
|
Fuel |
|
|
1,154 |
|
|
|
1,158 |
|
|
|
|
|
|
|
4,557 |
|
|
|
4,746 |
|
|
|
(4% |
) |
Maintenance and repairs |
|
|
465 |
|
|
|
432 |
|
|
|
8% |
|
|
|
1,862 |
|
|
|
1,909 |
|
|
|
(2% |
) |
Business realignment, impairment and other charges |
|
|
|
|
|
|
596 |
|
|
|
NM |
|
|
|
|
|
|
|
660 |
|
|
|
NM |
|
Other |
|
|
1,524 |
|
|
|
1,439 |
|
|
|
6% |
|
|
|
5,927 |
|
|
|
5,672 |
|
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
10,656 |
|
|
|
10,933 |
|
|
|
(3% |
) |
|
|
42,121 |
|
|
|
41,736 |
|
|
|
1% |
|
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Express segment |
|
|
475 |
|
|
|
|
|
|
|
NM |
|
|
|
1,172 |
|
|
|
555 |
|
|
|
111% |
|
FedEx Ground segment |
|
|
586 |
|
|
|
464 |
|
|
|
26% |
|
|
|
1,955 |
|
|
|
1,788 |
|
|
|
9% |
|
FedEx Freight segment |
|
|
122 |
|
|
|
38 |
|
|
|
221% |
|
|
|
319 |
|
|
|
208 |
|
|
|
53% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Income |
|
|
1,183 |
|
|
|
502 |
|
|
|
136% |
|
|
|
3,446 |
|
|
|
2,551 |
|
|
|
35% |
|
|
|
|
|
|
|
|
Other (Expense) Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net |
|
|
(47 |
) |
|
|
(24 |
) |
|
|
NM |
|
|
|
(142 |
) |
|
|
(61 |
) |
|
|
NM |
|
Other, net |
|
|
1 |
|
|
|
(6 |
) |
|
|
NM |
|
|
|
(15 |
) |
|
|
(35 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other (Expense) Income |
|
|
(46 |
) |
|
|
(30 |
) |
|
|
NM |
|
|
|
(157 |
) |
|
|
(96 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
Pretax Income |
|
|
1,137 |
|
|
|
472 |
|
|
|
141% |
|
|
|
3,289 |
|
|
|
2,455 |
|
|
|
34% |
|
|
|
|
|
|
|
|
Provision for Income Taxes |
|
|
407 |
|
|
|
169 |
|
|
|
141% |
|
|
|
1,192 |
|
|
|
894 |
|
|
|
33% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
730 |
|
|
$ |
303 |
|
|
|
141% |
|
|
$ |
2,097 |
|
|
$ |
1,561 |
|
|
|
34% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
|
$ |
2.46 |
|
|
$ |
0.95 |
|
|
|
159% |
|
|
$ |
6.75 |
|
|
$ |
4.91 |
|
|
|
37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Diluted Common and Common Equivalent Shares |
|
|
296 |
|
|
|
319 |
|
|
|
(7% |
) |
|
|
310 |
|
|
|
317 |
|
|
|
(2% |
) |
|
|
|
|
|
|
|
Capital Expenditures |
|
$ |
979 |
|
|
$ |
945 |
|
|
|
4% |
|
|
$ |
3,533 |
|
|
$ |
3,375 |
|
|
|
5% |
|
8
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Fourth Quarter Fiscal 2014
(In millions)
(Current period is
unaudited)
|
|
|
|
|
|
|
|
|
|
|
May 31, 2014 |
|
|
May 31, 2013 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,908 |
|
|
$ |
4,917 |
|
Receivables, less allowances |
|
|
5,460 |
|
|
|
5,044 |
|
Spare parts, supplies and fuel, less allowances |
|
|
463 |
|
|
|
457 |
|
Deferred income taxes |
|
|
522 |
|
|
|
533 |
|
Prepaid expenses and other |
|
|
330 |
|
|
|
323 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
9,683 |
|
|
|
11,274 |
|
|
|
|
Property and Equipment, at Cost |
|
|
40,691 |
|
|
|
38,109 |
|
Less accumulated depreciation and amortization |
|
|
21,141 |
|
|
|
19,625 |
|
|
|
|
|
|
|
|
|
|
Net property and equipment |
|
|
19,550 |
|
|
|
18,484 |
|
|
|
|
Other Long-Term Assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
2,790 |
|
|
|
2,755 |
|
Other assets |
|
|
1,047 |
|
|
|
1,054 |
|
|
|
|
|
|
|
|
|
|
Total other long-term assets |
|
|
3,837 |
|
|
|
3,809 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33,070 |
|
|
$ |
33,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
1 |
|
|
$ |
251 |
|
Accrued salaries and employee benefits |
|
|
1,277 |
|
|
|
1,688 |
|
Accounts payable |
|
|
1,971 |
|
|
|
1,879 |
|
Accrued expenses |
|
|
2,063 |
|
|
|
1,932 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
5,312 |
|
|
|
5,750 |
|
|
|
|
Long-Term Debt, Less Current Portion |
|
|
4,736 |
|
|
|
2,739 |
|
|
|
|
Other Long-Term Liabilities |
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
2,114 |
|
|
|
1,652 |
|
Pension, postretirement healthcare and other benefit obligations |
|
|
3,484 |
|
|
|
3,916 |
|
Self-insurance accruals |
|
|
1,038 |
|
|
|
987 |
|
Deferred lease obligations |
|
|
758 |
|
|
|
778 |
|
Deferred gains, principally related to aircraft transactions |
|
|
206 |
|
|
|
227 |
|
Other liabilities |
|
|
145 |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
|
Total other long-term liabilities |
|
|
7,745 |
|
|
|
7,680 |
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
Common Stockholders Investment |
|
|
|
|
|
|
|
|
Common stock, $0.10 par value, 800 million shares authorized |
|
|
32 |
|
|
|
32 |
|
Additional paid-in capital |
|
|
2,643 |
|
|
|
2,668 |
|
Retained earnings |
|
|
20,429 |
|
|
|
18,519 |
|
Accumulated other comprehensive loss |
|
|
(3,694 |
) |
|
|
(3,820 |
) |
Treasury stock, at cost |
|
|
(4,133 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
Total common stockholders investment |
|
|
15,277 |
|
|
|
17,398 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33,070 |
|
|
$ |
33,567 |
|
|
|
|
|
|
|
|
|
|
9
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Fourth Quarter Fiscal 2014
(In millions)
(Current period is
unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,097 |
|
|
$ |
1,561 |
|
Noncash charges: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,587 |
|
|
|
2,386 |
|
Other, net |
|
|
828 |
|
|
|
1,276 |
|
Changes in operating assets and liabilities, net |
|
|
(1,248 |
) |
|
|
(535 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
|
|
4,264 |
|
|
|
4,688 |
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(3,533 |
) |
|
|
(3,375 |
) |
Business acquisitions, net of cash acquired |
|
|
(36 |
) |
|
|
(483 |
) |
Proceeds from asset dispositions and other |
|
|
18 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing activities |
|
|
(3,551 |
) |
|
|
(3,803 |
) |
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Principal payments on debt |
|
|
(254 |
) |
|
|
(417 |
) |
Proceeds from debt issuances |
|
|
1,997 |
|
|
|
1,739 |
|
Dividends paid |
|
|
(187 |
) |
|
|
(177 |
) |
Purchase of treasury stock |
|
|
(4,857 |
) |
|
|
(246 |
) |
Other, net |
|
|
582 |
|
|
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (used in) provided by financing activities |
|
|
(2,719 |
) |
|
|
1,184 |
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(3 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
(2,009 |
) |
|
|
2,074 |
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
4,917 |
|
|
|
2,843 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
2,908 |
|
|
$ |
4,917 |
|
|
|
|
|
|
|
|
|
|
10
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
|
% |
|
|
2014 |
|
|
2013 |
|
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Package Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
$ |
1,703 |
|
|
$ |
1,691 |
|
|
|
1% |
|
|
$ |
6,555 |
|
|
$ |
6,513 |
|
|
|
1% |
|
U.S. Overnight Envelope |
|
|
426 |
|
|
|
453 |
|
|
|
(6% |
) |
|
|
1,636 |
|
|
|
1,705 |
|
|
|
(4% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Overnight |
|
|
2,129 |
|
|
|
2,144 |
|
|
|
(1% |
) |
|
|
8,191 |
|
|
|
8,218 |
|
|
|
|
|
U.S. Deferred |
|
|
819 |
|
|
|
774 |
|
|
|
6% |
|
|
|
3,188 |
|
|
|
3,020 |
|
|
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Package Revenue |
|
|
2,948 |
|
|
|
2,918 |
|
|
|
1% |
|
|
|
11,379 |
|
|
|
11,238 |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
1,691 |
|
|
|
1,680 |
|
|
|
1% |
|
|
|
6,451 |
|
|
|
6,586 |
|
|
|
(2% |
) |
International Economy |
|
|
590 |
|
|
|
554 |
|
|
|
6% |
|
|
|
2,229 |
|
|
|
2,046 |
|
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Package |
|
|
2,281 |
|
|
|
2,234 |
|
|
|
2% |
|
|
|
8,680 |
|
|
|
8,632 |
|
|
|
1% |
|
International Domestic1 |
|
|
369 |
|
|
|
363 |
|
|
|
2% |
|
|
|
1,446 |
|
|
|
1,398 |
|
|
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Package Revenue |
|
|
5,598 |
|
|
|
5,515 |
|
|
|
2% |
|
|
|
21,505 |
|
|
|
21,268 |
|
|
|
1% |
|
|
|
|
|
|
|
|
Freight Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
569 |
|
|
|
639 |
|
|
|
(11% |
) |
|
|
2,355 |
|
|
|
2,562 |
|
|
|
(8% |
) |
International Priority |
|
|
410 |
|
|
|
409 |
|
|
|
|
|
|
|
1,594 |
|
|
|
1,678 |
|
|
|
(5% |
) |
International Airfreight |
|
|
48 |
|
|
|
61 |
|
|
|
(21% |
) |
|
|
205 |
|
|
|
276 |
|
|
|
(26% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Freight Revenue |
|
|
1,027 |
|
|
|
1,109 |
|
|
|
(7% |
) |
|
|
4,154 |
|
|
|
4,516 |
|
|
|
(8% |
) |
|
|
|
|
|
|
|
Other Revenue2 |
|
|
373 |
|
|
|
353 |
|
|
|
6% |
|
|
|
1,462 |
|
|
|
1,387 |
|
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Express Revenue |
|
$ |
6,998 |
|
|
$ |
6,977 |
|
|
|
|
|
|
$ |
27,121 |
|
|
$ |
27,171 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
2,496 |
|
|
|
2,545 |
|
|
|
(2% |
) |
|
|
9,914 |
|
|
|
10,045 |
|
|
|
(1% |
) |
Purchased transportation |
|
|
635 |
|
|
|
603 |
|
|
|
5% |
|
|
|
2,511 |
|
|
|
2,331 |
|
|
|
8% |
|
Rentals and landing fees |
|
|
432 |
|
|
|
422 |
|
|
|
2% |
|
|
|
1,705 |
|
|
|
1,684 |
|
|
|
1% |
|
Depreciation and amortization |
|
|
372 |
|
|
|
357 |
|
|
|
4% |
|
|
|
1,488 |
|
|
|
1,350 |
|
|
|
10% |
|
Fuel |
|
|
991 |
|
|
|
1,004 |
|
|
|
(1% |
) |
|
|
3,943 |
|
|
|
4,130 |
|
|
|
(5% |
) |
Maintenance and repairs |
|
|
294 |
|
|
|
261 |
|
|
|
13% |
|
|
|
1,182 |
|
|
|
1,244 |
|
|
|
(5% |
) |
Business realignment, impairment and other charges3 |
|
|
|
|
|
|
229 |
|
|
|
NM |
|
|
|
|
|
|
|
243 |
|
|
|
NM |
|
Intercompany charges4 |
|
|
513 |
|
|
|
759 |
|
|
|
(32% |
) |
|
|
2,027 |
|
|
|
2,379 |
|
|
|
(15% |
) |
Other5 |
|
|
790 |
|
|
|
797 |
|
|
|
(1% |
) |
|
|
3,179 |
|
|
|
3,210 |
|
|
|
(1% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
6,523 |
|
|
|
6,977 |
|
|
|
(7% |
) |
|
|
25,949 |
|
|
|
26,616 |
|
|
|
(3% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
475 |
|
|
|
|
|
|
|
NM |
|
|
$ |
1,172 |
|
|
$ |
555 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
|
6.8% |
|
|
|
0.0% |
|
|
|
6.8 pts |
|
|
|
4.3% |
|
|
|
2.0% |
|
|
|
2.3 pts |
|
1 |
International Domestic revenues represent international intra-country express operations, including countries such as Mexico, Brazil and our recent acquisition in Southern Africa (May 2014). |
2 |
Includes FedEx Trade Networks and FedEx SupplyChain Systems. |
3 |
2013 includes $129 million for the fourth quarter and $143 million for the full year of predominantly severance costs associated with the companys voluntary buyout program and $100 million for both the fourth quarter and full year
resulting from the decision to retire 10 aircraft and related engines. |
4 |
Includes allocations of $231 million in the fourth quarter of 2013 and $262 million for the full year for business realignment costs. |
5 |
Includes predominately costs associated with outside service contracts (such as security, facility services and cargo handling), professional fees, uniforms, insurance and advertising. |
11
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
|
% |
|
|
2014 |
|
|
2013 |
|
|
% |
|
PACKAGE STATISTICS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
|
1,195 |
|
|
|
1,131 |
|
|
|
6% |
|
|
|
1,164 |
|
|
|
1,134 |
|
|
|
3% |
|
U.S. Overnight Envelope |
|
|
539 |
|
|
|
586 |
|
|
|
(8% |
) |
|
|
538 |
|
|
|
574 |
|
|
|
(6% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Overnight Package |
|
|
1,734 |
|
|
|
1,717 |
|
|
|
1% |
|
|
|
1,702 |
|
|
|
1,708 |
|
|
|
|
|
U.S. Deferred |
|
|
864 |
|
|
|
811 |
|
|
|
7% |
|
|
|
869 |
|
|
|
835 |
|
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Domestic Package |
|
|
2,598 |
|
|
|
2,528 |
|
|
|
3% |
|
|
|
2,571 |
|
|
|
2,543 |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
416 |
|
|
|
415 |
|
|
|
|
|
|
|
410 |
|
|
|
421 |
|
|
|
(3% |
) |
International Economy |
|
|
173 |
|
|
|
164 |
|
|
|
5% |
|
|
|
170 |
|
|
|
155 |
|
|
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Package |
|
|
589 |
|
|
|
579 |
|
|
|
2% |
|
|
|
580 |
|
|
|
576 |
|
|
|
1% |
|
International Domestic2 |
|
|
813 |
|
|
|
796 |
|
|
|
2% |
|
|
|
819 |
|
|
|
785 |
|
|
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Average Daily Packages |
|
|
4,000 |
|
|
|
3,903 |
|
|
|
2% |
|
|
|
3,970 |
|
|
|
3,904 |
|
|
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield (Revenue Per Package): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
$ |
22.26 |
|
|
$ |
22.99 |
|
|
|
(3% |
) |
|
$ |
22.18 |
|
|
$ |
22.52 |
|
|
|
(2% |
) |
U.S. Overnight Envelope |
|
|
12.36 |
|
|
|
11.91 |
|
|
|
4% |
|
|
|
11.97 |
|
|
|
11.66 |
|
|
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Composite |
|
|
19.18 |
|
|
|
19.21 |
|
|
|
|
|
|
|
18.95 |
|
|
|
18.87 |
|
|
|
|
|
U.S. Deferred |
|
|
14.81 |
|
|
|
14.67 |
|
|
|
1% |
|
|
|
14.44 |
|
|
|
14.18 |
|
|
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Composite |
|
|
17.73 |
|
|
|
17.76 |
|
|
|
|
|
|
|
17.42 |
|
|
|
17.33 |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
63.57 |
|
|
|
62.32 |
|
|
|
2% |
|
|
|
61.88 |
|
|
|
61.28 |
|
|
|
1% |
|
International Economy |
|
|
53.21 |
|
|
|
51.90 |
|
|
|
3% |
|
|
|
51.75 |
|
|
|
51.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Composite |
|
|
60.52 |
|
|
|
59.37 |
|
|
|
2% |
|
|
|
58.92 |
|
|
|
58.72 |
|
|
|
|
|
International Domestic2 |
|
|
7.10 |
|
|
|
7.02 |
|
|
|
1% |
|
|
|
6.95 |
|
|
|
6.99 |
|
|
|
(1% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Package Yield |
|
$ |
21.87 |
|
|
$ |
21.74 |
|
|
|
1% |
|
|
$ |
21.32 |
|
|
$ |
21.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREIGHT STATISTICS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Freight Pounds (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
7,865 |
|
|
|
7,363 |
|
|
|
7% |
|
|
|
7,854 |
|
|
|
7,612 |
|
|
|
3% |
|
International Priority |
|
|
2,936 |
|
|
|
2,899 |
|
|
|
1% |
|
|
|
2,922 |
|
|
|
3,048 |
|
|
|
(4% |
) |
International Airfreight |
|
|
677 |
|
|
|
961 |
|
|
|
(30% |
) |
|
|
798 |
|
|
|
1,066 |
|
|
|
(25% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Avg Daily Freight Pounds |
|
|
11,478 |
|
|
|
11,223 |
|
|
|
2% |
|
|
|
11,574 |
|
|
|
11,726 |
|
|
|
(1% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Freight Pound: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1.13 |
|
|
$ |
1.33 |
|
|
|
(15% |
) |
|
$ |
1.18 |
|
|
$ |
1.32 |
|
|
|
(11% |
) |
International Priority |
|
|
2.18 |
|
|
|
2.18 |
|
|
|
|
|
|
|
2.15 |
|
|
|
2.16 |
|
|
|
|
|
International Airfreight |
|
|
1.12 |
|
|
|
0.97 |
|
|
|
15% |
|
|
|
1.01 |
|
|
|
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Freight Yield |
|
$ |
1.40 |
|
|
$ |
1.52 |
|
|
|
(8% |
) |
|
$ |
1.41 |
|
|
$ |
1.51 |
|
|
|
(7% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Weekdays |
|
|
64 |
|
|
|
65 |
|
|
|
(2% |
) |
|
|
254 |
|
|
|
255 |
|
|
|
|
|
1 |
Package and freight statistics include only the operations of FedEx Express. |
2 |
International Domestic revenues represent international intra-country express operations, including countries such as Mexico, Brazil and our recent acquisition in Southern Africa (May 2014). |
12
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
|
% |
|
|
2014 |
|
|
2013 |
|
|
% |
|
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
$ |
2,776 |
|
|
$ |
2,540 |
|
|
|
9% |
|
|
$ |
10,634 |
|
|
$ |
9,652 |
|
|
|
10% |
|
FedEx SmartPost |
|
|
231 |
|
|
|
236 |
|
|
|
(2% |
) |
|
|
983 |
|
|
|
926 |
|
|
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
|
3,007 |
|
|
|
2,776 |
|
|
|
8% |
|
|
|
11,617 |
|
|
|
10,578 |
|
|
|
10% |
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
437 |
|
|
|
408 |
|
|
|
7% |
|
|
|
1,756 |
|
|
|
1,586 |
|
|
|
11% |
|
Purchased transportation |
|
|
1,159 |
|
|
|
1,067 |
|
|
|
9% |
|
|
|
4,635 |
|
|
|
4,191 |
|
|
|
11% |
|
Rentals |
|
|
103 |
|
|
|
86 |
|
|
|
20% |
|
|
|
402 |
|
|
|
331 |
|
|
|
21% |
|
Depreciation and amortization |
|
|
118 |
|
|
|
110 |
|
|
|
7% |
|
|
|
468 |
|
|
|
434 |
|
|
|
8% |
|
Fuel |
|
|
3 |
|
|
|
4 |
|
|
|
(25% |
) |
|
|
17 |
|
|
|
17 |
|
|
|
|
|
Maintenance and repairs |
|
|
56 |
|
|
|
50 |
|
|
|
12% |
|
|
|
222 |
|
|
|
190 |
|
|
|
17% |
|
Intercompany charges1 |
|
|
290 |
|
|
|
354 |
|
|
|
(18% |
) |
|
|
1,154 |
|
|
|
1,148 |
|
|
|
1% |
|
Other2 |
|
|
255 |
|
|
|
233 |
|
|
|
9% |
|
|
|
1,008 |
|
|
|
893 |
|
|
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
2,421 |
|
|
|
2,312 |
|
|
|
5% |
|
|
|
9,662 |
|
|
|
8,790 |
|
|
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
586 |
|
|
$ |
464 |
|
|
|
26% |
|
|
$ |
1,955 |
|
|
$ |
1,788 |
|
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
|
19.5% |
|
|
|
16.7% |
|
|
|
2.8 pts |
|
|
|
16.8% |
|
|
|
16.9% |
|
|
|
(0.1 pts |
) |
|
|
|
|
|
|
|
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Weekdays |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
|
64 |
|
|
|
65 |
|
|
|
(2% |
) |
|
|
254 |
|
|
|
255 |
|
|
|
|
|
FedEx SmartPost |
|
|
64 |
|
|
|
65 |
|
|
|
(2% |
) |
|
|
252 |
|
|
|
254 |
|
|
|
(1% |
) |
|
|
|
|
|
|
|
Average Daily Package Volume (000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
|
4,597 |
|
|
|
4,246 |
|
|
|
8% |
|
|
|
4,588 |
|
|
|
4,222 |
|
|
|
9% |
|
FedEx SmartPost |
|
|
1,920 |
|
|
|
2,078 |
|
|
|
(8% |
) |
|
|
2,186 |
|
|
|
2,058 |
|
|
|
6% |
|
|
|
|
|
|
|
|
Yield (Revenue Per Package) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
$ |
9.41 |
|
|
$ |
9.19 |
|
|
|
2% |
|
|
$ |
9.10 |
|
|
$ |
8.94 |
|
|
|
2% |
|
FedEx SmartPost |
|
$ |
1.88 |
|
|
$ |
1.74 |
|
|
|
8% |
|
|
$ |
1.78 |
|
|
$ |
1.77 |
|
|
|
1% |
|
1 |
Includes allocations of $93 million in the fourth quarter of 2013 and $105 million for the full year for business realignment costs. |
2 |
Includes predominately costs associated with outside service contracts (such as security and facility services), insurance and professional fees. |
13
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2014 |
|
|
2013 |
|
|
% |
|
|
2014 |
|
|
2013 |
|
|
% |
|
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,552 |
|
|
$ |
1,388 |
|
|
|
12% |
|
|
$ |
5,757 |
|
|
$ |
5,401 |
|
|
|
7% |
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
637 |
|
|
|
592 |
|
|
|
8% |
|
|
|
2,444 |
|
|
|
2,342 |
|
|
|
4% |
|
Purchased transportation |
|
|
266 |
|
|
|
218 |
|
|
|
22% |
|
|
|
981 |
|
|
|
865 |
|
|
|
13% |
|
Rentals |
|
|
37 |
|
|
|
30 |
|
|
|
23% |
|
|
|
131 |
|
|
|
118 |
|
|
|
11% |
|
Depreciation and amortization |
|
|
59 |
|
|
|
57 |
|
|
|
4% |
|
|
|
231 |
|
|
|
217 |
|
|
|
6% |
|
Fuel |
|
|
159 |
|
|
|
151 |
|
|
|
5% |
|
|
|
595 |
|
|
|
598 |
|
|
|
(1% |
) |
Maintenance and repairs |
|
|
45 |
|
|
|
49 |
|
|
|
(8% |
) |
|
|
179 |
|
|
|
191 |
|
|
|
(6% |
) |
Business realignment, impairment and other charges1 |
|
|
|
|
|
|
2 |
|
|
|
NM |
|
|
|
|
|
|
|
3 |
|
|
|
NM |
|
Intercompany charges2 |
|
|
112 |
|
|
|
154 |
|
|
|
(27% |
) |
|
|
461 |
|
|
|
484 |
|
|
|
(5% |
) |
Other3 |
|
|
115 |
|
|
|
97 |
|
|
|
19% |
|
|
|
416 |
|
|
|
375 |
|
|
|
11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,430 |
|
|
|
1,350 |
|
|
|
6% |
|
|
|
5,438 |
|
|
|
5,193 |
|
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
122 |
|
|
$ |
38 |
|
|
|
NM |
|
|
$ |
319 |
|
|
$ |
208 |
|
|
|
53% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
|
7.9% |
|
|
|
2.7% |
|
|
|
5.2 pts |
|
|
|
5.5% |
|
|
|
3.9% |
|
|
|
1.6 pts |
|
|
|
|
|
|
|
|
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL Operating Weekdays |
|
|
64 |
|
|
|
65 |
|
|
|
(2% |
) |
|
|
252 |
|
|
|
253 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily LTL Shipments (000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
|
67.0 |
|
|
|
58.8 |
|
|
|
14% |
|
|
|
62.9 |
|
|
|
59.3 |
|
|
|
6% |
|
Economy |
|
|
28.7 |
|
|
|
26.8 |
|
|
|
7% |
|
|
|
27.7 |
|
|
|
26.4 |
|
|
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Average Daily LTL Shipments |
|
|
95.7 |
|
|
|
85.6 |
|
|
|
12% |
|
|
|
90.6 |
|
|
|
85.7 |
|
|
|
6% |
|
|
|
|
|
|
|
|
Weight Per LTL Shipment (lbs) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
|
1,280 |
|
|
|
1,272 |
|
|
|
1% |
|
|
|
1,262 |
|
|
|
1,237 |
|
|
|
2% |
|
Economy |
|
|
1,013 |
|
|
|
981 |
|
|
|
3% |
|
|
|
1,000 |
|
|
|
990 |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Weight Per LTL Shipment |
|
|
1,200 |
|
|
|
1,181 |
|
|
|
2% |
|
|
|
1,182 |
|
|
|
1,161 |
|
|
|
2% |
|
|
|
|
|
|
|
|
LTL Revenue/Shipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
$ |
225.29 |
|
|
$ |
222.69 |
|
|
|
1% |
|
|
$ |
223.61 |
|
|
$ |
220.32 |
|
|
|
1% |
|
Economy |
|
|
260.71 |
|
|
|
253.87 |
|
|
|
3% |
|
|
|
258.05 |
|
|
|
256.38 |
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite LTL Revenue/Shipment |
|
$ |
235.91 |
|
|
$ |
232.45 |
|
|
|
1% |
|
|
$ |
234.23 |
|
|
$ |
231.52 |
|
|
|
1% |
|
|
|
|
|
|
|
|
LTL Revenue/CWT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
$ |
17.60 |
|
|
$ |
17.50 |
|
|
|
1% |
|
|
$ |
17.73 |
|
|
$ |
17.80 |
|
|
|
|
|
Economy |
|
|
25.73 |
|
|
|
25.87 |
|
|
|
(1% |
) |
|
|
25.80 |
|
|
|
25.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite LTL Revenue/CWT |
|
$ |
19.66 |
|
|
$ |
19.68 |
|
|
|
|
|
|
$ |
19.82 |
|
|
$ |
19.94 |
|
|
|
(1% |
) |
1 |
2013 includes severance costs associated with the companys voluntary buyout program. |
2 |
Includes allocations of $41 million in the fourth quarter of 2013 and $47 million for the full year for business realignment costs. |
3 |
Includes predominately costs associated with insurance, professional fees and outside service contracts (such as security and facility services). |
14
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