XML 94 R23.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Business Segment Information | 12 Months Ended
--- | ---
May. 31, 2015
Business Segment Information [Abstract] |
Business Segment Information | NOTE 14: BUSINESS SEGMENT INFORMATION FedEx Express, FedEx Ground and FedEx Freight represent our major service lines and, along with FedEx Services, form the core of our reportable segments. Our reportable segments include the following businesses:
FedEx Express Segment | FedEx Express (express transportation)
| FedEx Trade Networks (air and ocean freight forwarding and customs
|  | brokerage)
| FedEx SupplyChain Systems (logistics services)
| Bongo (cross-border enablement technology and solutions)
FedEx Ground Segment | FedEx Ground (small-package ground delivery)
| FedEx SmartPost (small-parcel consolidator)
| GENCO (third-party logistics)
FedEx Freight Segment | FedEx Freight (LTL freight transportation)
| FedEx Custom Critical (time-critical transportation)
FedEx Services Segment | FedEx Services (sales, marketing, information technology,
|  | communications and back-office functions)
| FedEx TechConnect (customer service, technical support, billings
|  | and collections)
| FedEx Office (document and business services and package
|  | acceptance)
FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative and information technology functions in shared services operations that support our transportation businesses and allow us to obtain synergies from the combination of these functions. For the international regions of FedEx Express, some of these functions are performed on a regional basis by FedEx Express and reported in the FedEx Express segment in their natural expense line items. The FedEx Services segment includes: FedEx Services, which provides sales, marketing, information technology, communications and certain back-office support to our other companies; FedEx TechConnect, which is responsible for customer service, technical support, billings and collections for U.S. customers of our major business units; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses. The FedEx Services segment provides direct and indirect support to our transportation businesses, and we allocate all of the net operating costs of the FedEx Services segment (including the net operating results of FedEx Office) to reflect the full cost of operating our transportation businesses in the results of those segments. Within the FedEx Services segment allocation, the net operating results of FedEx Office, which are an immaterial component of our allocations, are allocated to FedEx Express and FedEx Ground. We review and evaluate the performance of our transportation segments based on operating income (inclusive of FedEx Services segment allocations). For the FedEx Services segment, performance is evaluated based on the impact of its total allocated net operating costs on our transportation segments. Operating expenses for each of our transportation segments include the allocations from the FedEx Services segment to the respective transportation segments. These allocations also include charges and credits for administrative services provided between operating companies. The allocations of net operating costs are based on metrics such as relative revenues or estimated services provided. We believe these allocations approximate the net cost of providing these functions and our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. During the fourth quarter of 2015, we changed our method of accounting for our defined benefit pension and postretirement healthcare plans to immediately recognize actuarial gains and losses resulting from the remeasurement of these plans in earnings in the fourth quarter of each fiscal year. In addition, for purposes of calculating the EROA, we will no longer use an averaging technique for the market-related value of plan assets but instead will use actual fair value of plan assets. This method of accounting is referred to as MTM accounting as described in Note 1. Our segment operating results follow internal management reporting, which is used for making operating decisions and assessing performance. Historically, net total benefit cost was allocated to each segment. We continue to record service cost, interest cost and EROA at the business segments. Annual recognition of actuarial gains and losses will be reflected in our segment results only at the corporate level. Additionally, although the actual asset returns are recognized in each fiscal year through a MTM adjustment, we continue to recognize an EROA in the determination of net pension cost. At the segment level, we have set our EROA at 6.5% for all periods presented, which will equal our consolidated EROA assumption for 2016. In fiscal years where the consolidated EROA is greater than 6.5%, that difference is reflected as a credit in “Corporate, eliminations and other.” We have adjusted prior-period segment information to conform to the current period's presentation to ensure comparability of the segment results across all periods, including comparisons going forward in 2016. In addition, in 2015, we ceased allocating to our transportation segments the costs associated with our corporate headquarters division. These costs included services related to general oversight functions, including executive officers and certain legal and finance functions. This change allows for additional transparency and improved management of our corporate oversight costs. These costs are included in “Corporate, eliminations and other” in our segment reporting and reconciliations. Prior year amounts have been revised to conform to the current year segment presentation. This change did not impact our condensed consolidated financial statements included in Note 21. Other Intersegment Transactions Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment. Billings for such services are based on negotiated rates, which we believe approximate fair value, and are reflected as revenues of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenues and expenses are eliminated in our consolidated results and are not separately identified in the following segment information, because the amounts are not material. The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:
|  | FedEx Express Segment(1) |  | FedEx Ground Segment(2) |  | FedEx Freight Segment(3) |  | FedEx Services Segment |  | Corporate, eliminations and other(5) | Consolidated Total
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 | $ | 27,239 |  | $ | 12,984 |  | $ | 6,191 |  | $ | 1,545 |  | $ | (506) | $ | 47,453
2014 |  | 27,121 |  |  | 11,617 |  |  | 5,757 |  |  | 1,536 |  |  | (464) |  | 45,567
2013 |  | 27,171 |  |  | 10,578 |  |  | 5,401 |  |  | 1,580 |  |  | (443) |  | 44,287
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 | $ | 1,460 |  | $ | 530 |  | $ | 230 |  | $ | 390 |  | $ | 1 | $ | 2,611
2014 |  | 1,488 |  |  | 468 |  |  | 231 |  |  | 399 |  |  | 1 |  | 2,587
2013 |  | 1,350 |  |  | 434 |  |  | 217 |  |  | 384 |  |  | 1 |  | 2,386
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 | $ | 1,584 |  | $ | 2,172 |  | $ | 484 |  | $ | - |  | $ | (2,373) | $ | 1,867
2014 |  | 1,428 |  |  | 2,021 |  |  | 351 |  |  | - |  |  | 15 |  | 3,815
2013 |  | 929 |  |  | 1,859 |  |  | 246 |  |  | - |  |  | 1,400 |  | 4,434
Segment assets(4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 | $ | 20,759 |  | $ | 11,764 |  | $ | 3,530 |  | $ | 5,357 |  | $ | (4,341) | $ | 37,069
2014 |  | 19,901 |  |  | 8,466 |  |  | 3,216 |  |  | 5,186 |  |  | (3,699) |  | 33,070
2013 |  | 18,935 |  |  | 7,353 |  |  | 2,953 |  |  | 4,879 |  |  | (553) |  | 33,567
(1) | FedEx Express segment 2015 operating income includes $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines. FedEx Express segment 2013 operating income includes $405 million of direct and allocated business realignment costs and an impairment charge of $100 million resulting from the decision to retire 10 aircraft and related engines.
(2) | FedEx Ground segment 2013 operating income includes $105 million of allocated business realignment costs.
(3) | FedEx Freight segment 2013 operating income includes $50 million in direct and allocated business realignment costs.
(4) | Segment assets include intercompany receivables.
(5) | Operating income includes a loss of $2.2 billion in 2015, a loss of $15 million in 2014 and a gain of $1.4 billion in 2013 associated with our mark-to-market pension accounting. Operating income in 2015 also includes a $197 million charge in the fourth quarter to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement.
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):
|  | FedEx Express Segment |  | FedEx Ground Segment |  | FedEx Freight Segment |  | FedEx Services Segment |  | Other |  | Consolidated Total |
2015 | $ | 2,380 |  | $ | 1,248 |  | $ | 337 |  | $ | 381 |  | $ | 1 |  | $ | 4,347 |
2014 |  | 1,994 |  |  | 850 |  |  | 325 |  |  | 363 |  |  | 1 |  |  | 3,533 |
2013 |  | 2,067 |  |  | 555 |  |  | 326 |  |  | 424 |  |  | 3 |  |  | 3,375 |
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
REVENUE BY SERVICE TYPE |  |  |  |  |  |  |  |
|  |  |  |  |  | 2015 |  | 2014 |  | 2013
FedEx Express segment: |  |  |  |  |  |  |  |
| Package: |  |  |  |  |  |  |  |
|  | U.S. overnight box | $ | 6,704 |  | $ | 6,555 |  | $ | 6,513
|  | U.S. overnight envelope |  | 1,629 |  |  | 1,636 |  |  | 1,705
|  | U.S. deferred |  | 3,342 |  |  | 3,188 |  |  | 3,020
|  |  | Total U.S. domestic package revenue |  | 11,675 |  |  | 11,379 |  |  | 11,238
|  | International priority |  | 6,251 |  |  | 6,451 |  |  | 6,586
|  | International economy |  | 2,301 |  |  | 2,229 |  |  | 2,046
|  |  | Total international export package revenue |  | 8,552 |  |  | 8,680 |  |  | 8,632
|  | International domestic(1) |  | 1,406 |  |  | 1,446 |  |  | 1,398
|  |  | Total package revenue |  | 21,633 |  |  | 21,505 |  |  | 21,268
| Freight: |  |  |  |  |  |  |  |
|  | U.S. |  | 2,300 |  |  | 2,355 |  |  | 2,562
|  | International priority |  | 1,588 |  |  | 1,594 |  |  | 1,678
|  | International airfreight |  | 180 |  |  | 205 |  |  | 276
|  |  | Total freight revenue |  | 4,068 |  |  | 4,154 |  |  | 4,516
| Other(2) |  | 1,538 |  |  | 1,462 |  |  | 1,387
|  |  | Total FedEx Express segment |  | 27,239 |  |  | 27,121 |  |  | 27,171
FedEx Ground segment: |  |  |  |  |  |  |  |
| FedEx Ground |  | 11,563 |  |  | 10,634 |  |  | 9,652
| FedEx SmartPost |  | 1,005 |  |  | 983 |  |  | 926
| GENCO |  | 416 |  |  | - |  |  | -
|  | Total FedEx Ground segment |  | 12,984 |  |  | 11,617 |  |  | 10,578
FedEx Freight segment |  | 6,191 |  |  | 5,757 |  |  | 5,401
FedEx Services segment |  | 1,545 |  |  | 1,536 |  |  | 1,580
Other and eliminations |  | (506) |  |  | (464) |  |  | (443)
|  |  |  |  |  | $ | 47,453 |  | $ | 45,567 |  | $ | 44,287
GEOGRAPHICAL INFORMATION(3) |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |
| U.S. | $ | 34,216 |  | $ | 32,259 |  | $ | 30,948
| International: |  |  |  |  |  |  |  |
|  | FedEx Express segment |  | 12,772 |  |  | 12,916 |  |  | 12,959
|  | FedEx Ground segment |  | 311 |  |  | 248 |  |  | 234
|  | FedEx Freight segment |  | 142 |  |  | 130 |  |  | 112
|  | FedEx Services segment |  | 12 |  |  | 14 |  |  | 34
|  |  | Total international revenue |  | 13,237 |  |  | 13,308 |  |  | 13,339
|  |  |  |  |  | $ | 47,453 |  | $ | 45,567 |  | $ | 44,287
Noncurrent assets: |  |  |  |  |  |  |  |
| U.S. | $ | 23,514 |  | $ | 20,658 |  | $ | 19,637
| International |  | 2,614 |  |  | 2,729 |  |  | 2,656
|  |  |  |  |  | $ | 26,128 |  | $ | 23,387 |  | $ | 22,293
(1) | International domestic revenues represent our international intra-country express operations.
(2) | Includes FedEx Trade Networks, FedEx SupplyChain Systems and Bongo.
(3) | International revenue includes shipments that either originate in or are destined to locations outside the United States which could include U.S. payors. Noncurrent assets include property and equipment, goodwill and other long-term assets. Our flight equipment is registered in the U.S. and is included as U.S. assets; however, many of our aircraft operate internationally.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingDisclosureOfEntitysReportableSegmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration