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Business Segment Information | 12 Months Ended
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May 31, 2016
Business Segment Information [Abstract] |
Business Segment Information | NOTE 1 4: BUSINESS SEGMENT INFORMATION FedEx Express, TNT 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 Group: FedEx Express Segment FedEx Express (express transportation) FedEx Trade Networks (air and ocean freight forwarding, customs brokerage and cross-border enablement technology and solutions) FedEx SupplyChain Systems (logistics services) TNT Express Segment TNT Express (international express transportation, small- package g r o und delivery and freight transportation) FedEx Ground Segment FedEx Ground (small-package ground delivery) 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, customer service, technical support, billing and collection services and back-office functions) 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, customer service, technical support, billing and collection services for U.S. customers of our major business units and certain back-office support to our other companies; 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 segmen ts. 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. O ur allocation methodologies are ref ined periodically, as necessary, to reflect changes in our businesses. 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 f ollowing segment information, because the amounts are not material. Corporate and other includes corporate headquarters costs for executive officers and certain legal and financial functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the business segments. In 2016, t he se costs include our annual mark-to-market benefit plans adjustment, transaction and integration planning expenses related to our TNT Express acquisition, provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground and the settlement of a U.S. Customs and Border Protection (“CBP”) notice of action (both legal matters are net of recogniz ed immaterial insurance recovery). 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 |  | FedEx Freight Segment |  | FedEx Services Segment |  | Eliminations, corporate and other(2) (3) |  | Consolidated Total
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 26,451 |  | $ | 16,574 |  | $ | 6,200 |  | $ | 1,593 |  | $ | (453) |  | $ | 50,365
2015 |  | 27,239 |  |  | 12,984 |  |  | 6,191 |  |  | 1,545 |  |  | (506) |  |  | 47,453
2014 |  | 27,121 |  |  | 11,617 |  |  | 5,757 |  |  | 1,536 |  |  | (464) |  |  | 45,567
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 1,385 |  | $ | 608 |  | $ | 248 |  | $ | 384 |  | $ | 6 |  | $ | 2,631
2015 |  | 1,460 |  |  | 530 |  |  | 230 |  |  | 390 |  |  | 1 |  |  | 2,611
2014 |  | 1,488 |  |  | 468 |  |  | 231 |  |  | 399 |  |  | 1 |  |  | 2,587
Operating income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 2,519 |  | $ | 2,276 |  | $ | 426 |  | $ | - |  | $ | (2,144) |  | $ | 3,077
2015 |  | 1,584 |  |  | 2,172 |  |  | 484 |  |  | - |  |  | (2,373) |  |  | 1,867
2014 |  | 1,428 |  |  | 2,021 |  |  | 351 |  |  | - |  |  | 15 |  |  | 3,815
Segment assets(4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 | $ | 21,207 |  | $ | 13,098 |  | $ | 3,749 |  | $ | 5,390 |  | $ | 2,620 |  | $ | 46,064
2015 |  | 20,382 |  |  | 11,691 |  |  | 3,471 |  |  | 5,356 |  |  | (4,369) |  |  | 36,531
2014 |  | 19,901 |  |  | 8,466 |  |  | 3,216 |  |  | 5,186 |  |  | (3,699) |  |  | 33,070
(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.
(2) | Operating income includes a loss of $1.5 billion in 2016, $2.2 billion in 2015 and $15 million in 2014 associated with our mark-to-market pension accounting. Operating income in 2016 includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery. 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.
(3) | Includes TNT Express’s assets and immaterial financial results from the time of acquisition (May 25, 2016).
(4) | Segment assets include intercompany receivables.
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 |
2016 | $ | 2,356 |  | $ | 1,597 |  | $ | 433 |  | $ | 432 |  | $ | - |  | $ | 4,818 |
2015 |  | 2,380 |  |  | 1,248 |  |  | 337 |  |  | 381 |  |  | 1 |  |  | 4,347 |
2014 |  | 1,994 |  |  | 850 |  |  | 325 |  |  | 363 |  |  | 1 |  |  | 3,533 |
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 |  |  |  |  |  |  |
|  |  |  |  |  | 2016 | 2015 |  | 2014
FedEx Express segment: |  |  |  |  |  |  |
| Package: |  |  |  |  |  |  |
|  | U.S. overnight box | $ | 6,763 | $ | 6,704 |  | $ | 6,555
|  | U.S. overnight envelope |  | 1,662 |  | 1,629 |  |  | 1,636
|  | U.S. deferred |  | 3,379 |  | 3,342 |  |  | 3,188
|  |  | Total U.S. domestic package revenue |  | 11,804 |  | 11,675 |  |  | 11,379
|  | International priority |  | 5,697 |  | 6,251 |  |  | 6,451
|  | International economy |  | 2,282 |  | 2,301 |  |  | 2,229
|  |  | Total international export package revenue |  | 7,979 |  | 8,552 |  |  | 8,680
|  | International domestic(1) |  | 1,285 |  | 1,406 |  |  | 1,446
|  |  | Total package revenue |  | 21,068 |  | 21,633 |  |  | 21,505
| Freight: |  |  |  |  |  |  |
|  | U.S. |  | 2,481 |  | 2,300 |  |  | 2,355
|  | International priority |  | 1,384 |  | 1,588 |  |  | 1,594
|  | International airfreight |  | 126 |  | 180 |  |  | 205
|  |  | Total freight revenue |  | 3,991 |  | 4,068 |  |  | 4,154
| Other(2) |  | 1,392 |  | 1,538 |  |  | 1,462
|  |  | Total FedEx Express segment |  | 26,451 |  | 27,239 |  |  | 27,121
FedEx Ground segment: |  |  |  |  |  |  |
| FedEx Ground |  | 15,050 |  | 12,568 |  |  | 11,617
| GENCO |  | 1,524 |  | 416 |  |  | -
|  | Total FedEx Ground segment |  | 16,574 |  | 12,984 |  |  | 11,617
FedEx Freight segment |  | 6,200 |  | 6,191 |  |  | 5,757
FedEx Services segment |  | 1,593 |  | 1,545 |  |  | 1,536
Other and eliminations(3) |  | (453) |  | (506) |  |  | (464)
|  |  |  |  |  | $ | 50,365 | $ | 47,453 |  | $ | 45,567
GEOGRAPHICAL INFORMATION(4) |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |
| U.S. | $ | 38,070 | $ | 34,216 |  | $ | 32,259
| International: |  |  |  |  |  |  |
|  | FedEx Express segment |  | 11,672 |  | 12,772 |  |  | 12,916
|  | FedEx Ground segment |  | 383 |  | 311 |  |  | 248
|  | FedEx Freight segment |  | 137 |  | 142 |  |  | 130
|  | FedEx Services segment |  | 10 |  | 12 |  |  | 14
|  | Other(3) |  | 93 |  | - |  |  | -
|  |  | Total international revenue |  | 12,295 |  | 13,237 |  |  | 13,308
|  |  |  |  |  | $ | 50,365 | $ | 47,453 |  | $ | 45,567
Noncurrent assets: |  |  |  |  |  |  |
| U.S. | $ | 26,047 | $ | 23,582 |  | $ | 20,658
| International |  | 8,028 |  | 2,614 |  |  | 2,729
|  |  |  |  |  | $ | 34,075 | $ | 26,196 |  | $ | 23,387
(1) | International domestic revenues represent our intra-country operations.
(2) | Includes FedEx Trade Networks and FedEx SupplyChain Systems.
(3) | Includes TNT Express’s revenue from the time of acquisition (May 25, 2016).
(4) | 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.

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- 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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&loc=d3e8906-108599 + Details
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