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Business Segments and Disaggregated Revenue | 12 Months Ended
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May 31, 2020
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] |
Business Segments and Disaggregated Revenue | NOTE 14: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE FedEx Express, FedEx Ground and FedEx Freight represent our major service lines and, along with FedEx Services, constitute our reportable segments. Our reportable segments include the following businesses:
FedEx Express Segment | FedEx Express (express transportation)
| TNT Express (international express transportation, small-package ground delivery and freight transportation) FedEx Custom Critical Inc. (“FedEx Custom Critical”) (time-critical transportation)
FedEx Ground Segment | FedEx Ground (small-package ground delivery)
FedEx Freight Segment | FedEx Freight (LTL freight transportation)
FedEx Services Segment | FedEx Services (sales, marketing, information technology, communications, customer service, technical support, billing and collection services and back-office functions)
Effective June 1, 2019, the results of the FedEx Office operating segment are included in “Corporate, other and eliminations.” This change was made to reflect our internal management reporting structure. Prior year amounts have been revised to reflect current year presentation. Effective March 1, 2020, the results of FedEx Custom Critical are included in the FedEx Express segment prospectively as the impact to prior periods was not material. This change was made to reflect our internal management reporting structure. 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 and reported by FedEx Express 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. The FedEx Services segment provides direct and indirect support to our operating segments, and we allocate all of the net operating costs of the FedEx Services segment to reflect the full cost of operating our transportation businesses in the results of those segments. 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 operating 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 revenue or estimated services provided. We believe these allocations approximate the net cost of providing these functions. Our allocation methodologies are refined periodically, as necessary, to reflect changes in our businesses. Other Intersegment Transactions Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to our core business. These costs are not allocated to the other business segments. Also included in corporate and other is the FedEx Office operating segment, which provides an array of document and business services and retail access to our customers for our package transportation businesses, and the FedEx Logistics operating segment, which provides integrated supply chain management solutions, specialty transportation, customs brokerage and global ocean and air freight forwarding. 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 revenue of the billing segment. These rates are adjusted from time to time based on market conditions. Such intersegment revenue 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 revenue, depreciation and amortization, operating income (loss) and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:
|  | FedEx Express Segment |  |  | FedEx Ground Segment |  |  | FedEx Freight Segment |  |  | FedEx Services Segment |  |  | Corporate, other and eliminations |  |  | Consolidated Total |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020 |  | $ | 35,513 |  |  | $ | 22,733 |  |  | $ | 7,102 |  |  | $ | 22 |  |  | $ | 3,847 |  |  | $ | 69,217 |
2019 |  |  | 37,331 |  |  |  | 20,522 |  |  |  | 7,582 |  |  |  | 22 |  |  |  | 4,236 |  |  |  | 69,693 |
2018 |  |  | 36,172 |  |  |  | 18,395 |  |  |  | 6,812 |  |  |  | 28 |  |  |  | 4,043 |  |  |  | 65,450 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020 |  | $ | 1,894 |  |  | $ | 789 |  |  | $ | 381 |  |  | $ | 413 |  |  | $ | 138 |  |  | $ | 3,615 |
2019 |  |  | 1,801 |  |  |  | 728 |  |  |  | 332 |  |  |  | 355 |  |  |  | 137 |  |  |  | 3,353 |
2018 |  |  | 1,679 |  |  |  | 681 |  |  |  | 296 |  |  |  | 308 |  |  |  | 131 |  |  |  | 3,095 |
Operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020(1) |  | $ | 996 |  |  | $ | 2,014 |  |  | $ | 580 |  |  | $ | — |  |  | $ | (1,173 | ) |  | $ | 2,417 |
2019(2) |  |  | 2,176 |  |  |  | 2,663 |  |  |  | 615 |  |  |  | — |  |  |  | (988 | ) |  |  | 4,466 |
2018(3) |  |  | 2,172 |  |  |  | 2,556 |  |  |  | 490 |  |  |  | — |  |  |  | (946 | ) |  |  | 4,272 |
Segment assets(4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020 |  | $ | 41,252 |  |  | $ | 24,700 |  |  | $ | 6,434 |  |  | $ | 7,285 |  |  | $ | (6,134 | ) |  | $ | 73,537 |
2019 |  |  | 33,247 |  |  |  | 17,561 |  |  |  | 4,736 |  |  |  | 6,061 |  |  |  | (7,202 | ) |  |  | 54,403 |
2018 |  |  | 31,753 |  |  |  | 15,458 |  |  |  | 4,251 |  |  |  | 5,501 |  |  |  | (4,633 | ) |  |  | 52,330 |
(1) | Includes TNT Express integration expenses of $270 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes noncash goodwill and other asset impairment charges of $435 million primarily related to goodwill impairment at FedEx Office and from the decision to permanently retire certain aircraft and related engines at FedEx Express.
(2) | Includes TNT Express integration expenses (including restructuring charges) of $388 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes business realignment costs of $320 million included in “Corporate, other and eliminations” and costs incurred in connection with the settlement of a legal matter involving FedEx Ground of $46 million.
(3) | Includes TNT Express integration expenses (including restructuring charges) of $477 million. These expenses are included in “Corporate, other and eliminations” and the FedEx Express segment. Also includes goodwill and other asset impairment charges of $380 million included in “Corporate, other and eliminations.”
(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 |
2020 |  | $ | 3,560 |  |  |  | $ | 1,083 |  |  | $ | 539 |  |  | $ | 527 |  |  | $ | 159 |  |  | $ | 5,868 |
2019 |  |  | 3,550 |  |  |  |  | 808 |  |  |  | 544 |  |  |  | 440 |  |  |  | 148 |  |  |  | 5,490 |
2018 |  |  | 3,461 |  |  |  |  | 1,178 |  |  |  | 490 |  |  |  | 411 |  |  |  | 123 |  |  |  | 5,663 |
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
|  | 2020 |  |  | 2019(1) |  |  | 2018(1) |
REVENUE BY SERVICE TYPE |  |  |  |  |  |  |  |  |  |  |  |
FedEx Express segment: |  |  |  |  |  |  |  |  |  |  |  |
Package: |  |  |  |  |  |  |  |  |  |  |  |
U.S. overnight box |  | $ | 7,234 |  |  | $ | 7,663 |  |  | $ | 7,273 |
U.S. overnight envelope |  |  | 1,776 |  |  |  | 1,829 |  |  |  | 1,788 |
U.S. deferred |  |  | 4,038 |  |  |  | 4,225 |  |  |  | 3,738 |
Total U.S. domestic package revenue |  |  | 13,048 |  |  |  | 13,717 |  |  |  | 12,799 |
International priority |  |  | 7,354 |  |  |  | 7,405 |  |  |  | 7,461 |
International economy |  |  | 3,082 |  |  |  | 3,446 |  |  |  | 3,255 |
Total international export package revenue |  |  | 10,436 |  |  |  | 10,851 |  |  |  | 10,716 |
International domestic(2) |  |  | 4,179 |  |  |  | 4,540 |  |  |  | 4,637 |
Total package revenue |  |  | 27,663 |  |  |  | 29,108 |  |  |  | 28,152 |
Freight: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  |  | 2,998 |  |  |  | 3,025 |  |  |  | 2,797 |
International priority |  |  | 1,915 |  |  |  | 2,070 |  |  |  | 2,105 |
International economy |  |  | 1,930 |  |  |  | 2,123 |  |  |  | 1,916 |
International airfreight |  |  | 270 |  |  |  | 314 |  |  |  | 368 |
Total freight revenue |  |  | 7,113 |  |  |  | 7,532 |  |  |  | 7,186 |
Other(3) |  |  | 737 |  |  |  | 691 |  |  |  | 834 |
Total FedEx Express segment |  |  | 35,513 |  |  |  | 37,331 |  |  |  | 36,172 |
FedEx Ground segment |  |  | 22,733 |  |  |  | 20,522 |  |  |  | 18,395 |
FedEx Freight segment |  |  | 7,102 |  |  |  | 7,582 |  |  |  | 6,812 |
FedEx Services segment |  |  | 22 |  |  |  | 22 |  |  |  | 28 |
Other and eliminations(4) |  |  | 3,847 |  |  |  | 4,236 |  |  |  | 4,043 |
|  | $ | 69,217 |  |  | $ | 69,693 |  |  | $ | 65,450 |
GEOGRAPHICAL INFORMATION(5) |  |  |  |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 48,404 |  |  | $ | 47,584 |  |  | $ | 43,581 |
International: |  |  |  |  |  |  |  |  |  |  |  |
FedEx Express segment |  |  | 19,177 |  |  |  | 20,424 |  |  |  | 20,417 |
FedEx Ground segment |  |  | 479 |  |  |  | 467 |  |  |  | 407 |
FedEx Freight segment |  |  | 192 |  |  |  | 207 |  |  |  | 181 |
FedEx Services segment |  |  | 1 |  |  |  | 1 |  |  |  | 1 |
Other |  |  | 964 |  |  |  | 1,010 |  |  |  | 863 |
Total international revenue |  |  | 20,813 |  |  |  | 22,109 |  |  |  | 21,869 |
|  | $ | 69,217 |  |  | $ | 69,693 |  |  | $ | 65,450 |
Noncurrent assets: |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 45,691 |  |  | $ | 33,189 |  |  | $ | 30,362 |
International |  |  | 11,463 |  |  |  | 8,128 |  |  |  | 8,627 |
|  | $ | 57,154 |  |  | $ | 41,317 |  |  | $ | 38,989 |
(1) | Prior year amounts have been revised to conform to the current year presentation.
(2) | International domestic revenue relates to our intra-country operations.
(3) | Includes the operations of FedEx Custom Critical.
(4) | Includes the FedEx Office and FedEx Logistics operating segments.
(5) | 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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