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 17, 2015
FEDEX CORPORATION
(Exact name of registrant as specified in its charter)
Commission
File Number 1-15829
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Delaware |
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62-1721435 |
(State or other jurisdiction
of incorporation) |
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(IRS Employer
Identification No.) |
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942 South Shady Grove Road, Memphis, Tennessee |
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38120 |
(Address of principal executive offices) |
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(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 |
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38125 |
(Address of principal executive offices) |
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(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 17, 2015, announcing its and its wholly owned subsidiary Federal Express Corporations financial results for the fiscal quarter and year ended
May 31, 2015.
SECTION 9. |
FINANCIAL STATEMENTS AND EXHIBITS. |
Item 9.01. Financial Statements and Exhibits.
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(d) |
Exhibits. The following exhibit is being furnished as part of this Report. |
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Exhibit Number |
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Description |
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99.1 |
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Press Release of FedEx Corporation dated June 17, 2015. |
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 17, 2015 |
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By: |
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/s/ JOHN L. MERINO |
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John L. Merino |
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Corporate Vice President and Principal Accounting Officer |
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Federal Express Corporation |
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Date: June 17, 2015 |
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By: |
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/s/ ELISE L. JORDAN |
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Elise L. Jordan |
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Senior Vice President and Chief Financial Officer |
3
EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1 |
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Press Release of FedEx Corporation dated June 17, 2015. |
E-1
Exhibit 99.1
FOR IMMEDIATE RELEASE
FedEx
Corp. Reports Fourth Quarter Earnings
Strong Earnings Growth Expected in Fiscal 2016
MEMPHIS, Tenn., June 17, 2015
FedEx Corp. (NYSE: FDX) today reported adjusted earnings of $2.66 per diluted share for the fourth quarter ended
May 31, compared to adjusted earnings of $2.54 per diluted share a year ago. For fiscal 2015, adjusted earnings were $8.95 per diluted share, compared to $7.05 per diluted share a year ago. Without adjustments, FedEx reported a loss of $3.16
per diluted share for the fourth quarter compared to a profit of $2.62 per diluted share a year ago, and earnings of $3.65 per diluted share for the full fiscal year, compared to $7.48 per diluted share last year.
Quarterly consolidated earnings have been adjusted for previously announced changes in pension accounting ($4.88 per diluted share), aircraft impairments
($0.62 per diluted share), a legal reserve increase ($0.47 per diluted share) and changes in segment reporting (favorable $0.15 per diluted share).
Fiscal 2015 was a transformative year for FedEx with outstanding financial results driving expanded long-term value for shareowners, said
Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. Significant acquisitions announced in the year promise to strengthen our portfolio of services and change whats possible for customers. I am very proud of
the FedEx team for its accomplishments and look forward to a successful fiscal 2016.
FedEx also announced today that independent members of its
Board of Directors have approved a change to FedExs Corporate Governance Guidelines to increase the mandatory retirement age for directors from age 72 to age 75, effective immediately. This change is consistent with the market trend of
increasing the mandatory retirement age for board members, said David P. Steiner, FedEx Corporations Lead Independent Director.
- more -
1
As previously disclosed, prior year amounts have been recast to conform to the current year presentation
reflecting the pension accounting changes and allocation of corporate headquarters costs.
Fourth Quarter Results
FedEx Corp. reported the following consolidated results for the fourth quarter:
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Fiscal 2015 |
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Fiscal 2014 |
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Adjusted (non-GAAP) |
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As Reported (GAAP) |
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Adjusted (non-GAAP) |
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As Reported (GAAP) |
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Revenue |
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$ |
12.1 billion |
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$ |
12.1 billion |
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$ |
11.8 billion |
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$ |
11.8 billion |
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Operating income |
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$ |
1.28 billion |
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($ |
1.32 billion |
) |
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$ |
1.22 billion |
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$ |
1.26 billion |
|
Operating margin |
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|
10.5 |
% |
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(10.9 |
%) |
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10.3 |
% |
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|
10.7 |
% |
Net income (loss) |
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$ |
753 million |
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($ |
895 million |
) |
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$ |
753 million |
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$ |
780 million |
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Diluted EPS (loss) |
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$ |
2.66 |
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($ |
3.16 |
) |
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$ |
2.54 |
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$ |
2.62 |
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YOY share repurchase impact, net of interest |
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$ |
0.12 |
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($ |
0.14 |
) |
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$ |
0.13 |
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$ |
0.13 |
|
Adjusted operating income improved 5% during the quarter, due to base yield growth in all three transportation segments,
higher ground and U.S. domestic express volume, and benefits from profit improvement program initiatives. These improvements offset increased employee variable incentive compensation and unfavorable net impacts from fuel and weather.
Full Year Results
FedEx Corp. reported the
following consolidated results for the full year:
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Fiscal 2015 |
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Fiscal 2014 |
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Adjusted (non-GAAP) |
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As Reported (GAAP) |
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Adjusted (non-GAAP) |
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As Reported (GAAP) |
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Revenue |
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$ |
47.5 billion |
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$ |
47.5 billion |
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$ |
45.6 billion |
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$ |
45.6 billion |
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Operating income |
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$ |
4.26 billion |
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$ |
1.87 billion |
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$ |
3.59 billion |
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$ |
3.82 billion |
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Operating margin |
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|
9.0 |
% |
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|
3.9 |
% |
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|
7.9 |
% |
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|
8.4 |
% |
Net income |
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$ |
2.57 billion |
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$ |
1.05 billion |
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$ |
2.19 billion |
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$ |
2.32 billion |
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Diluted EPS |
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$ |
8.95 |
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$ |
3.65 |
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$ |
7.05 |
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$ |
7.48 |
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YOY share repurchase impact, net of interest |
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$ |
0.53 |
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$ |
0.14 |
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$ |
0.07 |
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$ |
0.08 |
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- more -
2
Adjusted operating results increased sharply during the year due to higher volumes and base yields in all three
transportation segments, benefits from profit improvement program initiatives and a favorable net fuel impact. This was partially offset by increased incentive compensation and higher aircraft maintenance expense.
Capital spending for fiscal 2015 was $4.3 billion.
Outlook
For fiscal 2016, FedEx projects adjusted
earnings to be $10.60 to $11.10 per diluted share before year-end mark-to-market pension accounting adjustments, driven by continued improvement in base pricing and benefits from our profit improvement program. The outlook assumes continued moderate
economic growth and does not include any operating results or costs related to TNT Express.
Capital spending for fiscal 2016 is expected to be
approximately $4.6 billion, which includes expansion of the FedEx Ground network and planned aircraft deliveries to support the FedEx Express fleet modernization program.
Our operating performance significantly improved in fiscal 2015 as we focused on revenue quality and executed on our profit improvement program
initiatives, said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. We expect strong earnings growth in fiscal 2016 as we continue to focus on improving performance and successfully executing our profit
improvement initiatives.
FedEx Express Segment
For the fourth quarter, the FedEx Express segment reported:
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Fiscal 2015 |
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Fiscal 20141 |
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Change |
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Revenue |
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$ |
6.70 billion |
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$ |
7.00 billion |
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(4 |
%) |
Adjusted operating income |
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$ |
598 million |
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$ |
534 million |
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12 |
% |
Adjusted operating margin |
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|
8.9 |
% |
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7.6 |
% |
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|
1.3 |
pts |
Operating income |
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$ |
322 million |
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$ |
534 million |
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|
(40 |
%) |
Operating margin |
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|
4.8 |
% |
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|
7.6 |
% |
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|
(2.8 |
pts) |
1 There were no adjustments to fourth quarter fiscal 2014 results.
During the fourth quarter, FedEx Express permanently retired 15 aircraft and 21 related engines, and adjusted the retirement schedule of an additional 23
- more -
3
aircraft and 57 engines. These actions resulted in $276 million of impairment and related charges, of which $246 million was noncash. These charges are excluded from this years adjusted
operating income and margin.
Revenue decreased 4% as lower fuel surcharges and unfavorable currency exchange rates more than offset base yield and volume
growth. U.S. domestic package volume grew 2%, driven by a 3% increase in overnight box. U.S. domestic revenue per package declined 4%, with lower fuel surcharges offsetting improved base rates. International export volume was down 1%, as FedEx
International Economy grew 3% while FedEx International Priority® declined 2%. International export revenue per package decreased 8%, as lower fuel surcharges and unfavorable currency exchange
rates more than offset higher base rates.
Adjusted segment operating results improved due to higher base yield and U.S. domestic volume growth, the
benefit from profit improvement program initiatives and lower international expenses due to currency exchange rates. These benefits were partially offset by an unfavorable net fuel impact, higher incentive compensation and a negative impact from
weather.
FedEx Ground Segment
For the fourth
quarter, the FedEx Ground segment reported:
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Fiscal 2015 |
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Fiscal 2014 |
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Change |
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Revenue |
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$ |
3.57 billion |
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$ |
3.01 billion |
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|
19 |
% |
Operating income |
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$ |
603 million |
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|
$ |
601 million |
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Operating margin |
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|
16.9 |
% |
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|
20.0 |
% |
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|
(3.1 |
pts) |
Revenue increased due to the inclusion of GENCO results and higher ground volume and revenue per package. Ground yield
increased 2% due to higher dimensional weight charges and increased rates, partially offset by lower fuel surcharges. Ground average daily volume grew 5% in the quarter, primarily driven by growth in residential deliveries. FedEx SmartPost average
daily volume decreased 1% due to the reduction in volume from a major customer. FedEx SmartPost revenue per package increased 7% due to rate increases and improved customer mix, partially offset by higher postage costs.
Segment operating margin declined due predominantly to the inclusion of GENCO results and increased self-insurance reserves.
- more -
4
FedEx Freight Segment
For the fourth quarter, the FedEx Freight segment reported:
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Fiscal 2015 |
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Fiscal 2014 |
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|
Change |
|
Revenue |
|
$ |
1.57 billion |
|
|
$ |
1.55 billion |
|
|
|
1 |
% |
Operating income |
|
$ |
137 million |
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$ |
130 million |
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|
5 |
% |
Operating margin |
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|
8.7 |
% |
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|
8.4 |
% |
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|
0.3 |
pts |
LTL revenue per shipment improved 2% due to higher rates from ongoing yield initiatives, significantly offset by lower fuel
surcharges. Less-than-truckload (LTL) average daily shipments were flat.
Segment operating results improved primarily due to the positive impact of
higher LTL revenue per shipment.
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 $47 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 325,000 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, Form 8-Ks and fourth quarter fiscal 2015 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 17, are available on the companys website at
investors.fedex.com. A replay of the conference call webcast will be posted on our website 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
- more -
5
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 programs, 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: Jess Bunn 901-818-7463
Investor
Contact: Mickey Foster 901-818-7468
Home Page: fedex.com
- more -
6
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, including an understanding of items that are non-operational or non-recurring in nature. Excluding the credit
associated with the segment reporting change, amounts associated with changes in pension accounting, aircraft impairment and related charges at FedEx Express and a legal reserve increase from results will assist investors in understanding and allow
for more accurate comparisons of the companys and its segments core 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. The inability to predict the amount of any future year-end mark-to-market pension accounting adjustments and the amount and timing of any operating
results and integration planning and acquisition-related costs with respect to TNT Express makes a reconciliation of the forecasts for adjusted earnings per diluted share and the adjusted effective tax rate impracticable.
Fourth Quarter Fiscal 2015
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FedEx Corporation |
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Operating |
|
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Net Income/ (Loss) |
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|
Diluted Earnings/ (Loss) Per Share |
|
Dollars in millions, except EPS |
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Income/ (Loss) |
|
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Margin3 |
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|
Non-GAAP measure |
|
$ |
1,275 |
|
|
|
10.5 |
% |
|
$ |
753 |
|
|
$ |
2.66 |
|
Segment reporting change1 |
|
|
67 |
|
|
|
0.5 |
% |
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|
42 |
|
|
|
0.15 |
|
Mark-to-market pension accounting adjustments2 |
|
|
(2,190 |
) |
|
|
(18.1 |
%) |
|
|
(1,382 |
) |
|
|
(4.88 |
) |
Aircraft impairment and related charges |
|
|
(276 |
) |
|
|
(2.3 |
%) |
|
|
(175 |
) |
|
|
(0.62 |
) |
Legal reserve |
|
|
(197 |
) |
|
|
(1.6 |
%) |
|
|
(133 |
) |
|
|
(0.47 |
) |
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|
|
|
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|
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|
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|
|
|
|
|
|
GAAP measure |
|
($ |
1,321 |
) |
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|
(10.9 |
%) |
|
($ |
895 |
) |
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($ |
3.16 |
) |
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FedEx Express Operating |
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Dollars in millions |
|
Income |
|
|
Margin |
|
Non-GAAP measure |
|
$ |
598 |
|
|
|
8.9 |
% |
Aircraft impairment and related charges |
|
|
(276 |
) |
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|
(4.1 |
%) |
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|
|
|
|
|
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|
GAAP measure4 |
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$ |
322 |
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|
|
4.8 |
% |
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|
|
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- more -
7
Full Year Fiscal 2015
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FedEx Corporation |
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|
Operating |
|
|
Net Income |
|
|
Diluted Earnings Per Share |
|
Dollars in millions, except EPS |
|
Income |
|
|
Margin3 |
|
|
|
Non-GAAP measure |
|
$ |
4,264 |
|
|
|
9.0 |
% |
|
$ |
2,572 |
|
|
$ |
8.95 |
|
Segment reporting change1 |
|
|
266 |
|
|
|
0.6 |
% |
|
|
168 |
|
|
|
0.58 |
|
Mark-to-market pension accounting adjustments2 |
|
|
(2,190 |
) |
|
|
(4.6 |
%) |
|
|
(1,382 |
) |
|
|
(4.81 |
) |
Aircraft impairment and related charges |
|
|
(276 |
) |
|
|
(0.6 |
%) |
|
|
(175 |
) |
|
|
(0.61 |
) |
Legal reserve |
|
|
(197 |
) |
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|
(0.4 |
%) |
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|
(133 |
) |
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|
(0.46 |
) |
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|
|
|
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|
|
GAAP measure |
|
$ |
1,867 |
|
|
|
3.9 |
% |
|
$ |
1,050 |
|
|
$ |
3.65 |
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|
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|
FedEx Express Operating |
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Dollars in millions |
|
Income |
|
|
Margin |
|
Non-GAAP measure |
|
$ |
1,860 |
|
|
|
6.8 |
% |
Aircraft impairment and related charges |
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|
(276 |
) |
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|
(1.0 |
%) |
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|
|
|
|
|
|
|
|
GAAP measure4 |
|
$ |
1,584 |
|
|
|
5.8 |
% |
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|
|
|
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- more -
8
Fourth Quarter Fiscal 2014
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|
FedEx Corporation |
|
|
|
Operating |
|
|
Net Income |
|
|
Diluted Earnings Per Share3 |
|
Dollars in millions, except EPS |
|
Income |
|
|
Margin |
|
|
|
Non-GAAP measure |
|
$ |
1,220 |
|
|
|
10.3 |
% |
|
$ |
753 |
|
|
$ |
2.54 |
|
Segment reporting change1 |
|
|
59 |
|
|
|
0.5 |
% |
|
|
36 |
|
|
|
0.12 |
|
Mark-to-market pension accounting adjustments2 |
|
|
(15 |
) |
|
|
(0.1 |
%) |
|
|
(9 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP measure |
|
$ |
1,264 |
|
|
|
10.7 |
% |
|
$ |
780 |
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year Fiscal 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Corporation |
|
|
|
Operating |
|
|
Net Income |
|
|
Diluted Earnings Per Share |
|
Dollars in millions, except EPS |
|
Income |
|
|
Margin |
|
|
|
Non-GAAP measure |
|
$ |
3,593 |
|
|
|
7.9 |
% |
|
$ |
2,190 |
|
|
$ |
7.05 |
|
Segment reporting change1 |
|
|
237 |
|
|
|
0.5 |
% |
|
|
143 |
|
|
|
0.46 |
|
Mark-to-market pension accounting adjustments2 |
|
|
(15 |
) |
|
|
0.0 |
% |
|
|
(9 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP measure |
|
$ |
3,815 |
|
|
|
8.4 |
% |
|
$ |
2,324 |
|
|
$ |
7.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
1 At the
segment level, the expected return on assets (EROA) has been set at 6.5%, which will equal the companys consolidated EROA assumption in fiscal 2016. In fiscal years where the consolidated EROA is greater than 6.5% the difference is reflected
as a credit at Corporate. The segment reporting change reflects this credit.
2 Mark-to-market pension accounting adjustments reflect the year-end
noncash adjustment to the valuation of the companys defined benefit retirement plans.
3 Does not sum to total due to rounding.
4 The most directly comparable GAAP measure is segment operating income.
* * *
9
FEDEX CORP. FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2015
(In millions, except earnings per share)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2015 |
|
|
2014 |
|
|
% |
|
|
2015 |
|
|
2014 |
|
|
% |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Express segment |
|
$ |
6,697 |
|
|
$ |
6,998 |
|
|
|
(4 |
%) |
|
$ |
27,239 |
|
|
$ |
27,121 |
|
|
|
|
|
FedEx Ground segment |
|
|
3,568 |
|
|
|
3,007 |
|
|
|
19 |
% |
|
|
12,984 |
|
|
|
11,617 |
|
|
|
12 |
% |
FedEx Freight segment |
|
|
1,569 |
|
|
|
1,552 |
|
|
|
1 |
% |
|
|
6,191 |
|
|
|
5,757 |
|
|
|
8 |
% |
FedEx Services segment |
|
|
407 |
|
|
|
402 |
|
|
|
1 |
% |
|
|
1,545 |
|
|
|
1,536 |
|
|
|
1 |
% |
Eliminations and other |
|
|
(127 |
) |
|
|
(120 |
) |
|
|
(6 |
%) |
|
|
(506 |
) |
|
|
(464 |
) |
|
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
12,114 |
|
|
|
11,839 |
|
|
|
2 |
% |
|
|
47,453 |
|
|
|
45,567 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits1 |
|
|
4,432 |
|
|
|
4,067 |
|
|
|
9 |
% |
|
|
17,110 |
|
|
|
16,171 |
|
|
|
6 |
% |
Purchased transportation |
|
|
2,079 |
|
|
|
2,029 |
|
|
|
2 |
% |
|
|
8,483 |
|
|
|
8,011 |
|
|
|
6 |
% |
Rentals and landing fees |
|
|
673 |
|
|
|
672 |
|
|
|
|
|
|
|
2,682 |
|
|
|
2,622 |
|
|
|
2 |
% |
Depreciation and amortization |
|
|
657 |
|
|
|
649 |
|
|
|
1 |
% |
|
|
2,611 |
|
|
|
2,587 |
|
|
|
1 |
% |
Fuel |
|
|
738 |
|
|
|
1,154 |
|
|
|
(36 |
%) |
|
|
3,720 |
|
|
|
4,557 |
|
|
|
(18 |
%) |
Maintenance and repairs |
|
|
495 |
|
|
|
465 |
|
|
|
6 |
% |
|
|
2,099 |
|
|
|
1,862 |
|
|
|
13 |
% |
Impairment charges2 |
|
|
276 |
|
|
|
|
|
|
|
NM |
|
|
|
276 |
|
|
|
|
|
|
|
NM |
|
Retirement plans mark-to-market adjustment |
|
|
2,190 |
|
|
|
15 |
|
|
|
NM |
|
|
|
2,190 |
|
|
|
15 |
|
|
|
NM |
|
Other3 |
|
|
1,895 |
|
|
|
1,524 |
|
|
|
24 |
% |
|
|
6,415 |
|
|
|
5,927 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses1 |
|
|
13,435 |
|
|
|
10,575 |
|
|
|
27 |
% |
|
|
45,586 |
|
|
|
41,752 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Express segment1,2 |
|
|
322 |
|
|
|
534 |
|
|
|
(40 |
%) |
|
|
1,584 |
|
|
|
1,428 |
|
|
|
11 |
% |
FedEx Ground segment1 |
|
|
603 |
|
|
|
601 |
|
|
|
|
|
|
|
2,172 |
|
|
|
2,021 |
|
|
|
7 |
% |
FedEx Freight segment1 |
|
|
137 |
|
|
|
130 |
|
|
|
5 |
% |
|
|
484 |
|
|
|
351 |
|
|
|
38 |
% |
Corporate, eliminations and
other1,3 |
|
|
(2,383 |
) |
|
|
(1 |
) |
|
|
NM |
|
|
|
(2,373 |
) |
|
|
15 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Income1 |
|
|
(1,321 |
) |
|
|
1,264 |
|
|
|
NM |
|
|
|
1,867 |
|
|
|
3,815 |
|
|
|
(51 |
%) |
|
|
|
|
|
|
|
Other (Expense) Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net |
|
|
(68 |
) |
|
|
(47 |
) |
|
|
NM |
|
|
|
(221 |
) |
|
|
(142 |
) |
|
|
NM |
|
Other, net |
|
|
(27 |
) |
|
|
1 |
|
|
|
NM |
|
|
|
(19 |
) |
|
|
(15 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other (Expense) Income |
|
|
(95 |
) |
|
|
(46 |
) |
|
|
NM |
|
|
|
(240 |
) |
|
|
(157 |
) |
|
|
NM |
|
|
|
|
|
|
|
|
Pretax Income1 |
|
|
(1,416 |
) |
|
|
1,218 |
|
|
|
NM |
|
|
|
1,627 |
|
|
|
3,658 |
|
|
|
(56 |
%) |
|
|
|
|
|
|
|
Provision for Income Taxes1 |
|
|
(521 |
) |
|
|
438 |
|
|
|
NM |
|
|
|
577 |
|
|
|
1,334 |
|
|
|
(57 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income1 |
|
($ |
895 |
) |
|
$ |
780 |
|
|
|
NM |
|
|
$ |
1,050 |
|
|
$ |
2,324 |
|
|
|
(55 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share1 |
|
($ |
3.16 |
) |
|
$ |
2.62 |
|
|
|
NM |
|
|
$ |
3.65 |
|
|
$ |
7.48 |
|
|
|
(51 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Diluted Common and Common Equivalent Shares |
|
|
283 |
|
|
|
296 |
|
|
|
(4 |
%) |
|
|
287 |
|
|
|
310 |
|
|
|
(7 |
%) |
|
|
|
|
|
|
|
Capital Expenditures |
|
$ |
1,378 |
|
|
$ |
979 |
|
|
|
41 |
% |
|
$ |
4,347 |
|
|
$ |
3,533 |
|
|
|
23 |
% |
1 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes
and allocation of corporate headquarters costs.
2 - Impairment and related charges (including $246 million noncash) to permanently retire and adjust the
retirement schedule of certain aircraft and related engines. Such charges are included in FedEx Express segment results.
3 - Includes a legal reserve
increase of $197 million. Such amount is included in the Corporate, eliminations and other results.
10
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Fourth Quarter Fiscal 2015
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
May 31, 2015 |
|
|
May 31, 20141 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,763 |
|
|
$ |
2,908 |
|
Receivables, less allowances |
|
|
5,719 |
|
|
|
5,460 |
|
Spare parts, supplies and fuel, less allowances |
|
|
498 |
|
|
|
463 |
|
Deferred income taxes |
|
|
606 |
|
|
|
522 |
|
Prepaid expenses and other |
|
|
355 |
|
|
|
330 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
10,941 |
|
|
|
9,683 |
|
|
|
|
Property and Equipment, at Cost |
|
|
42,864 |
|
|
|
40,691 |
|
Less accumulated depreciation and amortization |
|
|
21,989 |
|
|
|
21,141 |
|
|
|
|
|
|
|
|
|
|
Net property and equipment |
|
|
20,875 |
|
|
|
19,550 |
|
|
|
|
Other Long-Term Assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
3,810 |
|
|
|
2,790 |
|
Other assets |
|
|
1,443 |
|
|
|
1,047 |
|
|
|
|
|
|
|
|
|
|
Total other long-term assets |
|
|
5,253 |
|
|
|
3,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
37,069 |
|
|
$ |
33,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
19 |
|
|
$ |
1 |
|
Accrued salaries and employee benefits |
|
|
1,436 |
|
|
|
1,277 |
|
Accounts payable |
|
|
2,066 |
|
|
|
1,971 |
|
Accrued expenses |
|
|
2,436 |
|
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
5,957 |
|
|
|
5,312 |
|
|
|
|
Long-Term Debt, Less Current Portion |
|
|
7,249 |
|
|
|
4,736 |
|
|
|
|
Other Long-Term Liabilities |
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
1,747 |
|
|
|
2,114 |
|
Pension, postretirement healthcare and other benefit obligations |
|
|
4,893 |
|
|
|
3,484 |
|
Self-insurance accruals |
|
|
1,120 |
|
|
|
1,038 |
|
Deferred lease obligations |
|
|
711 |
|
|
|
758 |
|
Deferred gains, principally related to aircraft transactions |
|
|
181 |
|
|
|
206 |
|
Other liabilities |
|
|
218 |
|
|
|
145 |
|
|
|
|
|
|
|
|
|
|
Total other long-term liabilities |
|
|
8,870 |
|
|
|
7,745 |
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
Common Stockholders Investment |
|
|
|
|
|
|
|
|
Common stock, $0.10 par value, 800 million shares authorized |
|
|
32 |
|
|
|
32 |
|
Additional paid-in capital |
|
|
2,786 |
|
|
|
2,643 |
|
Retained earnings |
|
|
16,900 |
|
|
|
16,229 |
|
Accumulated other comprehensive income |
|
|
172 |
|
|
|
506 |
|
Treasury stock, at cost |
|
|
(4,897 |
) |
|
|
(4,133 |
) |
|
|
|
|
|
|
|
|
|
Total common stockholders investment |
|
|
14,993 |
|
|
|
15,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
37,069 |
|
|
$ |
33,070 |
|
|
|
|
|
|
|
|
|
|
1 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes.
11
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Fourth Quarter Fiscal 2015
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year Ended May 31 |
|
|
|
2015 |
|
|
20141 |
|
|
|
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,050 |
|
|
$ |
2,324 |
|
Noncash charges: |
|
|
|
|
|
|
|
|
Retirement plans mark-to-market adjustment |
|
|
2,190 |
|
|
|
15 |
|
Impairment charges |
|
|
246 |
|
|
|
|
|
Depreciation and amortization |
|
|
2,611 |
|
|
|
2,587 |
|
Other, net |
|
|
(294 |
) |
|
|
586 |
|
Changes in operating assets and liabilities, net |
|
|
(437 |
) |
|
|
(1,248 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities |
|
|
5,366 |
|
|
|
4,264 |
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(4,347 |
) |
|
|
(3,533 |
) |
Business acquisitions, net of cash acquired |
|
|
(1,429 |
) |
|
|
(36 |
) |
Proceeds from asset dispositions and other |
|
|
24 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing activities |
|
|
(5,752 |
) |
|
|
(3,551 |
) |
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Principal payments on debt |
|
|
(5 |
) |
|
|
(254 |
) |
Proceeds from debt issuances |
|
|
2,491 |
|
|
|
1,997 |
|
Dividends paid |
|
|
(227 |
) |
|
|
(187 |
) |
Purchase of treasury stock |
|
|
(1,254 |
) |
|
|
(4,857 |
) |
Other, net |
|
|
344 |
|
|
|
582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used in) financing activities |
|
|
1,349 |
|
|
|
(2,719 |
) |
|
|
|
Effect of exchange rate changes on cash |
|
|
(108 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
855 |
|
|
|
(2,009 |
) |
|
|
|
Cash and cash equivalents at beginning of period |
|
|
2,908 |
|
|
|
4,917 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
3,763 |
|
|
$ |
2,908 |
|
|
|
|
|
|
|
|
|
|
1 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes.
12
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2015 |
|
|
2014 |
|
|
% |
|
|
2015 |
|
|
2014 |
|
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Package Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
$ |
1,664 |
|
|
$ |
1,703 |
|
|
|
(2 |
%) |
|
$ |
6,704 |
|
|
$ |
6,555 |
|
|
|
2 |
% |
U.S. Overnight Envelope |
|
|
422 |
|
|
|
426 |
|
|
|
(1 |
%) |
|
|
1,629 |
|
|
|
1,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Overnight |
|
|
2,086 |
|
|
|
2,129 |
|
|
|
(2 |
%) |
|
|
8,333 |
|
|
|
8,191 |
|
|
|
2 |
% |
U.S. Deferred |
|
|
818 |
|
|
|
819 |
|
|
|
|
|
|
|
3,342 |
|
|
|
3,188 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Package Revenue |
|
|
2,904 |
|
|
|
2,948 |
|
|
|
(1 |
%) |
|
|
11,675 |
|
|
|
11,379 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
1,509 |
|
|
|
1,691 |
|
|
|
(11 |
%) |
|
|
6,251 |
|
|
|
6,451 |
|
|
|
(3 |
%) |
International Economy |
|
|
572 |
|
|
|
590 |
|
|
|
(3 |
%) |
|
|
2,301 |
|
|
|
2,229 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Package |
|
|
2,081 |
|
|
|
2,281 |
|
|
|
(9 |
%) |
|
|
8,552 |
|
|
|
8,680 |
|
|
|
(1 |
%) |
International Domestic1 |
|
|
324 |
|
|
|
369 |
|
|
|
(12 |
%) |
|
|
1,406 |
|
|
|
1,446 |
|
|
|
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Package Revenue |
|
|
5,309 |
|
|
|
5,598 |
|
|
|
(5 |
%) |
|
|
21,633 |
|
|
|
21,505 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
Freight Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
555 |
|
|
|
569 |
|
|
|
(2 |
%) |
|
|
2,300 |
|
|
|
2,355 |
|
|
|
(2 |
%) |
International Priority |
|
|
406 |
|
|
|
410 |
|
|
|
(1 |
%) |
|
|
1,588 |
|
|
|
1,594 |
|
|
|
|
|
International Airfreight |
|
|
47 |
|
|
|
48 |
|
|
|
(2 |
%) |
|
|
180 |
|
|
|
205 |
|
|
|
(12 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Freight Revenue |
|
|
1,008 |
|
|
|
1,027 |
|
|
|
(2 |
%) |
|
|
4,068 |
|
|
|
4,154 |
|
|
|
(2 |
%) |
|
|
|
|
|
|
|
Other Revenue2 |
|
|
380 |
|
|
|
373 |
|
|
|
2 |
% |
|
|
1,538 |
|
|
|
1,462 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Express Revenue |
|
$ |
6,697 |
|
|
$ |
6,998 |
|
|
|
(4 |
%) |
|
$ |
27,239 |
|
|
$ |
27,121 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits4 |
|
|
2,530 |
|
|
|
2,467 |
|
|
|
3 |
% |
|
|
10,104 |
|
|
|
9,797 |
|
|
|
3 |
% |
Purchased transportation |
|
|
602 |
|
|
|
635 |
|
|
|
(5 |
%) |
|
|
2,544 |
|
|
|
2,511 |
|
|
|
1 |
% |
Rentals and landing fees |
|
|
409 |
|
|
|
432 |
|
|
|
(5 |
%) |
|
|
1,693 |
|
|
|
1,705 |
|
|
|
(1 |
%) |
Depreciation and amortization |
|
|
354 |
|
|
|
372 |
|
|
|
(5 |
%) |
|
|
1,460 |
|
|
|
1,488 |
|
|
|
(2 |
%) |
Fuel |
|
|
626 |
|
|
|
991 |
|
|
|
(37 |
%) |
|
|
3,199 |
|
|
|
3,943 |
|
|
|
(19 |
%) |
Maintenance and repairs |
|
|
297 |
|
|
|
294 |
|
|
|
1 |
% |
|
|
1,357 |
|
|
|
1,182 |
|
|
|
15 |
% |
Impairment charges3 |
|
|
276 |
|
|
|
|
|
|
|
NM |
|
|
|
276 |
|
|
|
|
|
|
|
NM |
|
Intercompany charges4 |
|
|
482 |
|
|
|
483 |
|
|
|
|
|
|
|
1,842 |
|
|
|
1,888 |
|
|
|
(2 |
%) |
Other |
|
|
799 |
|
|
|
790 |
|
|
|
1 |
% |
|
|
3,180 |
|
|
|
3,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses4 |
|
|
6,375 |
|
|
|
6,464 |
|
|
|
(1 |
%) |
|
|
25,655 |
|
|
|
25,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income4 |
|
$ |
322 |
|
|
$ |
534 |
|
|
|
(40 |
%) |
|
$ |
1,584 |
|
|
$ |
1,428 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin4 |
|
|
4.8 |
% |
|
|
7.6 |
% |
|
|
(2.8 |
pts) |
|
|
5.8 |
% |
|
|
5.3 |
% |
|
|
0.5 |
pts |
1 - International Domestic revenues represent international intra-country express operations.
2 - Includes FedEx Trade Networks, FedEx SupplyChain Systems and Bongo International.
3 - Impairment and related charges (including $246 million noncash) to permanently retire and adjust the retirement schedule of certain aircraft and related
engines.
4 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes and allocation of
corporate headquarters costs.
13
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2015 |
|
|
2014 |
|
|
% |
|
|
2015 |
|
|
2014 |
|
|
% |
|
PACKAGE STATISTICS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
|
1,231 |
|
|
|
1,195 |
|
|
|
3 |
% |
|
|
1,240 |
|
|
|
1,164 |
|
|
|
7 |
% |
U.S. Overnight Envelope |
|
|
547 |
|
|
|
539 |
|
|
|
1 |
% |
|
|
527 |
|
|
|
538 |
|
|
|
(2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Overnight Package |
|
|
1,778 |
|
|
|
1,734 |
|
|
|
3 |
% |
|
|
1,767 |
|
|
|
1,702 |
|
|
|
4 |
% |
U.S. Deferred |
|
|
881 |
|
|
|
864 |
|
|
|
2 |
% |
|
|
916 |
|
|
|
869 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Domestic Package |
|
|
2,659 |
|
|
|
2,598 |
|
|
|
2 |
% |
|
|
2,683 |
|
|
|
2,571 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
408 |
|
|
|
416 |
|
|
|
(2 |
%) |
|
|
410 |
|
|
|
410 |
|
|
|
|
|
International Economy |
|
|
178 |
|
|
|
173 |
|
|
|
3 |
% |
|
|
176 |
|
|
|
170 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Package |
|
|
586 |
|
|
|
589 |
|
|
|
(1 |
%) |
|
|
586 |
|
|
|
580 |
|
|
|
1 |
% |
International Domestic2 |
|
|
850 |
|
|
|
813 |
|
|
|
5 |
% |
|
|
853 |
|
|
|
819 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Average Daily Packages |
|
|
4,095 |
|
|
|
4,000 |
|
|
|
2 |
% |
|
|
4,122 |
|
|
|
3,970 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield (Revenue Per Package): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Box |
|
$ |
21.12 |
|
|
$ |
22.26 |
|
|
|
(5 |
%) |
|
$ |
21.29 |
|
|
$ |
22.18 |
|
|
|
(4 |
%) |
U.S. Overnight Envelope |
|
|
12.07 |
|
|
|
12.36 |
|
|
|
(2 |
%) |
|
|
12.15 |
|
|
|
11.97 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Overnight Composite |
|
|
18.34 |
|
|
|
19.18 |
|
|
|
(4 |
%) |
|
|
18.56 |
|
|
|
18.95 |
|
|
|
(2 |
%) |
U.S. Deferred |
|
|
14.50 |
|
|
|
14.81 |
|
|
|
(2 |
%) |
|
|
14.36 |
|
|
|
14.44 |
|
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Composite |
|
|
17.07 |
|
|
|
17.73 |
|
|
|
(4 |
%) |
|
|
17.13 |
|
|
|
17.42 |
|
|
|
(2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Priority |
|
|
57.85 |
|
|
|
63.57 |
|
|
|
(9 |
%) |
|
|
60.05 |
|
|
|
61.88 |
|
|
|
(3 |
%) |
International Economy |
|
|
50.10 |
|
|
|
53.21 |
|
|
|
(6 |
%) |
|
|
51.54 |
|
|
|
51.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total International Export Composite |
|
|
55.49 |
|
|
|
60.52 |
|
|
|
(8 |
%) |
|
|
57.50 |
|
|
|
58.92 |
|
|
|
(2 |
%) |
International Domestic2 |
|
|
5.96 |
|
|
|
7.10 |
|
|
|
(16 |
%) |
|
|
6.49 |
|
|
|
6.95 |
|
|
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Package Yield |
|
$ |
20.26 |
|
|
$ |
21.87 |
|
|
|
(7 |
%) |
|
$ |
20.66 |
|
|
$ |
21.32 |
|
|
|
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FREIGHT STATISTICS1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Freight Pounds (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
7,836 |
|
|
|
7,865 |
|
|
|
|
|
|
|
7,833 |
|
|
|
7,854 |
|
|
|
|
|
International Priority |
|
|
2,953 |
|
|
|
2,936 |
|
|
|
1 |
% |
|
|
2,887 |
|
|
|
2,922 |
|
|
|
(1 |
%) |
International Airfreight |
|
|
716 |
|
|
|
677 |
|
|
|
6 |
% |
|
|
684 |
|
|
|
798 |
|
|
|
(14 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Avg Daily Freight Pounds |
|
|
11,505 |
|
|
|
11,478 |
|
|
|
|
|
|
|
11,404 |
|
|
|
11,574 |
|
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Freight Pound: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1.11 |
|
|
$ |
1.13 |
|
|
|
(2 |
%) |
|
$ |
1.16 |
|
|
$ |
1.18 |
|
|
|
(2 |
%) |
International Priority |
|
|
2.15 |
|
|
|
2.18 |
|
|
|
(1 |
%) |
|
|
2.17 |
|
|
|
2.15 |
|
|
|
1 |
% |
International Airfreight |
|
|
1.01 |
|
|
|
1.12 |
|
|
|
(10 |
%) |
|
|
1.04 |
|
|
|
1.01 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Freight Yield |
|
$ |
1.37 |
|
|
$ |
1.40 |
|
|
|
(2 |
%) |
|
$ |
1.40 |
|
|
$ |
1.41 |
|
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Weekdays |
|
|
64 |
|
|
|
64 |
|
|
|
|
|
|
|
254 |
|
|
|
254 |
|
|
|
|
|
1 - Package and freight statistics include only the operations of FedEx Express.
2 - International Domestic revenues represent international intra-country express operations.
14
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2015 |
|
|
2014 |
|
|
% |
|
|
2015 |
|
|
2014 |
|
|
% |
|
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
$ |
2,994 |
|
|
$ |
2,776 |
|
|
|
8 |
% |
|
$ |
11,563 |
|
|
$ |
10,634 |
|
|
|
9 |
% |
FedEx SmartPost |
|
|
245 |
|
|
|
231 |
|
|
|
6 |
% |
|
|
1,005 |
|
|
|
983 |
|
|
|
2 |
% |
GENCO1 |
|
|
329 |
|
|
|
|
|
|
|
NM |
|
|
|
416 |
|
|
|
|
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
|
3,568 |
|
|
|
3,007 |
|
|
|
19 |
% |
|
|
12,984 |
|
|
|
11,617 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits2 |
|
|
649 |
|
|
|
435 |
|
|
|
49 |
% |
|
|
2,146 |
|
|
|
1,749 |
|
|
|
23 |
% |
Purchased transportation |
|
|
1,256 |
|
|
|
1,159 |
|
|
|
8 |
% |
|
|
5,021 |
|
|
|
4,635 |
|
|
|
8 |
% |
Rentals |
|
|
136 |
|
|
|
103 |
|
|
|
32 |
% |
|
|
485 |
|
|
|
402 |
|
|
|
21 |
% |
Depreciation and amortization |
|
|
149 |
|
|
|
118 |
|
|
|
26 |
% |
|
|
530 |
|
|
|
468 |
|
|
|
13 |
% |
Fuel |
|
|
3 |
|
|
|
3 |
|
|
|
|
|
|
|
12 |
|
|
|
17 |
|
|
|
(29 |
%) |
Maintenance and repairs |
|
|
70 |
|
|
|
56 |
|
|
|
25 |
% |
|
|
244 |
|
|
|
222 |
|
|
|
10 |
% |
Intercompany charges2 |
|
|
289 |
|
|
|
277 |
|
|
|
4 |
% |
|
|
1,123 |
|
|
|
1,095 |
|
|
|
3 |
% |
Other |
|
|
413 |
|
|
|
255 |
|
|
|
62 |
% |
|
|
1,251 |
|
|
|
1,008 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses2 |
|
|
2,965 |
|
|
|
2,406 |
|
|
|
23 |
% |
|
|
10,812 |
|
|
|
9,596 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income2 |
|
$ |
603 |
|
|
$ |
601 |
|
|
|
|
|
|
$ |
2,172 |
|
|
$ |
2,021 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin2 |
|
|
16.9 |
% |
|
|
20.0 |
% |
|
|
(3.1 |
pts) |
|
|
16.7 |
% |
|
|
17.4 |
% |
|
|
(0.7 |
pts) |
|
|
|
|
|
|
|
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Weekdays |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
|
64 |
|
|
|
64 |
|
|
|
|
|
|
|
254 |
|
|
|
254 |
|
|
|
|
|
FedEx SmartPost |
|
|
64 |
|
|
|
64 |
|
|
|
|
|
|
|
252 |
|
|
|
252 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
|
4,847 |
|
|
|
4,597 |
|
|
|
5 |
% |
|
|
4,850 |
|
|
|
4,588 |
|
|
|
6 |
% |
FedEx SmartPost |
|
|
1,899 |
|
|
|
1,920 |
|
|
|
(1 |
%) |
|
|
2,061 |
|
|
|
2,186 |
|
|
|
(6 |
%) |
|
|
|
|
|
|
|
Yield (Revenue Per Package) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FedEx Ground |
|
$ |
9.63 |
|
|
$ |
9.41 |
|
|
|
2 |
% |
|
$ |
9.37 |
|
|
$ |
9.10 |
|
|
|
3 |
% |
FedEx SmartPost |
|
$ |
2.02 |
|
|
$ |
1.88 |
|
|
|
7 |
% |
|
$ |
1.93 |
|
|
$ |
1.78 |
|
|
|
8 |
% |
1 - Revenues for GENCO are included from the January 30, 2015 date of closing.
2 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes and allocation of corporate
headquarters costs.
15
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended May 31 |
|
|
Twelve Months Ended May 31 |
|
|
|
2015 |
|
|
2014 |
|
|
% |
|
|
2015 |
|
|
2014 |
|
|
% |
|
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,569 |
|
|
$ |
1,552 |
|
|
|
1 |
% |
|
$ |
6,191 |
|
|
$ |
5,757 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits1 |
|
|
692 |
|
|
|
636 |
|
|
|
9 |
% |
|
|
2,698 |
|
|
|
2,442 |
|
|
|
10 |
% |
Purchased transportation |
|
|
253 |
|
|
|
266 |
|
|
|
(5 |
%) |
|
|
1,045 |
|
|
|
981 |
|
|
|
7 |
% |
Rentals |
|
|
33 |
|
|
|
37 |
|
|
|
(11 |
%) |
|
|
129 |
|
|
|
131 |
|
|
|
(2 |
%) |
Depreciation and amortization |
|
|
60 |
|
|
|
59 |
|
|
|
2 |
% |
|
|
230 |
|
|
|
231 |
|
|
|
|
|
Fuel |
|
|
109 |
|
|
|
159 |
|
|
|
(31 |
%) |
|
|
508 |
|
|
|
595 |
|
|
|
(15 |
%) |
Maintenance and repairs |
|
|
53 |
|
|
|
45 |
|
|
|
18 |
% |
|
|
201 |
|
|
|
179 |
|
|
|
12 |
% |
Intercompany charges1 |
|
|
115 |
|
|
|
105 |
|
|
|
10 |
% |
|
|
444 |
|
|
|
431 |
|
|
|
3 |
% |
Other |
|
|
117 |
|
|
|
115 |
|
|
|
2 |
% |
|
|
452 |
|
|
|
416 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses1 |
|
|
1,432 |
|
|
|
1,422 |
|
|
|
1 |
% |
|
|
5,707 |
|
|
|
5,406 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income1 |
|
$ |
137 |
|
|
$ |
130 |
|
|
|
5 |
% |
|
$ |
484 |
|
|
$ |
351 |
|
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin1 |
|
|
8.7 |
% |
|
|
8.4 |
% |
|
|
0.3 |
pts |
|
|
7.8 |
% |
|
|
6.1 |
% |
|
|
1.7 |
pts |
|
|
|
|
|
|
|
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL Operating Weekdays |
|
|
64 |
|
|
|
64 |
|
|
|
|
|
|
|
252 |
|
|
|
252 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily LTL Shipments (000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
|
66.4 |
|
|
|
67.0 |
|
|
|
(1 |
%) |
|
|
66.9 |
|
|
|
62.9 |
|
|
|
6 |
% |
Economy |
|
|
29.2 |
|
|
|
28.7 |
|
|
|
2 |
% |
|
|
28.6 |
|
|
|
27.7 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Average Daily LTL Shipments |
|
|
95.6 |
|
|
|
95.7 |
|
|
|
|
|
|
|
95.5 |
|
|
|
90.6 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
Weight Per LTL Shipment (lbs) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
|
1,301 |
|
|
|
1,280 |
|
|
|
2 |
% |
|
|
1,272 |
|
|
|
1,262 |
|
|
|
1 |
% |
Economy |
|
|
984 |
|
|
|
1,013 |
|
|
|
(3 |
%) |
|
|
1,003 |
|
|
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Weight Per LTL Shipment |
|
|
1,204 |
|
|
|
1,200 |
|
|
|
|
|
|
|
1,191 |
|
|
|
1,182 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
LTL Revenue/Shipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
$ |
229.97 |
|
|
$ |
225.29 |
|
|
|
2 |
% |
|
$ |
229.57 |
|
|
$ |
223.61 |
|
|
|
3 |
% |
Economy |
|
|
261.02 |
|
|
|
260.71 |
|
|
|
|
|
|
|
264.34 |
|
|
|
258.05 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite LTL Revenue/Shipment |
|
$ |
239.46 |
|
|
$ |
235.91 |
|
|
|
2 |
% |
|
$ |
240.09 |
|
|
$ |
234.23 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
LTL Revenue/CWT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Priority |
|
$ |
17.68 |
|
|
$ |
17.60 |
|
|
|
|
|
|
$ |
18.05 |
|
|
$ |
17.73 |
|
|
|
2 |
% |
Economy |
|
|
26.52 |
|
|
|
25.73 |
|
|
|
3 |
% |
|
|
26.34 |
|
|
|
25.80 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite LTL Revenue/CWT |
|
$ |
19.89 |
|
|
$ |
19.66 |
|
|
|
1 |
% |
|
$ |
20.15 |
|
|
$ |
19.82 |
|
|
|
2 |
% |
1 - Prior year amounts have been recast to conform to the current year presentation reflecting the pension accounting changes
and allocation of corporate headquarters costs.
16
FedEx (NYSE:FDX)
Historical Stock Chart
From Aug 2024 to Sep 2024
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Historical Stock Chart
From Sep 2023 to Sep 2024