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Business Segments and Disaggregated Revenue | 12 Months Ended
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May 31, 2022
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Business Segments and Disaggregated Revenue | NOTE 15: 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, 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 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. Effective June 1, 2020, the results of FedEx Cross Border Holdings, Inc. (“FedEx Cross Border”) 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 Cross Border was subsequently merged into FedEx Express in the third quarter of 2022. References to our transportation segments include, collectively, the FedEx Express segment, the FedEx Ground segment, and the FedEx Freight segment. FedEx Services Segment The FedEx Services segment operates combined sales, marketing, administrative, and information-technology functions in shared services operations for U.S. customers of our major business units and certain back-office support to our operating segments which allows 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 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 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 effect 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, including certain other costs and credits not attributed to our core business, including certain costs associated with developing our innovate digitally strategic pillar through our FedEx Dataworks, Inc. (including ShopRunner) (“FedEx Dataworks”) operating segment. FedEx Dataworks is focused on creating solutions to transform the digital and physical experiences of our customers and team members. Also included in Corporate and other are 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. The results of Corporate, other, and eliminations are not allocated to the other business segments. Certain FedEx operating companies provide transportation and related services for other FedEx companies outside their reportable segment in order to optimize our resources. 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | $ | 45,814 |  |  | $ | 33,232 |  |  | $ | 9,532 |  |  | $ | 253 |  |  | $ | 4,681 |  |  | $ | 93,512 |
2021 |  |  | 42,078 |  |  |  | 30,496 |  |  |  | 7,833 |  |  |  | 32 |  |  |  | 3,520 |  |  |  | 83,959 |
2020 |  |  | 35,513 |  |  |  | 22,733 |  |  |  | 7,102 |  |  |  | 22 |  |  |  | 3,847 |  |  |  | 69,217 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | $ | 2,007 |  |  | $ | 919 |  |  | $ | 406 |  |  | $ | 513 |  |  | $ | 125 |  |  | $ | 3,970 |
2021 |  |  | 1,946 |  |  |  | 843 |  |  |  | 417 |  |  |  | 462 |  |  |  | 125 |  |  |  | 3,793 |
2020 |  |  | 1,894 |  |  |  | 789 |  |  |  | 381 |  |  |  | 413 |  |  |  | 138 |  |  |  | 3,615 |
Operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022(1) |  | $ | 2,922 |  |  | $ | 2,642 |  |  | $ | 1,663 |  |  | $ | — |  |  | $ | (982 | ) |  | $ | 6,245 |
2021(2) |  |  | 2,810 |  |  |  | 3,193 |  |  |  | 1,005 |  |  |  | — |  |  |  | (1,151 | ) |  |  | 5,857 |
2020(3) |  |  | 996 |  |  |  | 2,014 |  |  |  | 580 |  |  |  | — |  |  |  | (1,173 | ) |  |  | 2,417 |
Segment assets(4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | $ | 47,604 |  |  | $ | 32,645 |  |  | $ | 8,904 |  |  | $ | 8,389 |  |  | $ | (11,548 | ) |  | $ | 85,994 |
2021 |  |  | 46,356 |  |  |  | 29,134 |  |  |  | 7,371 |  |  |  | 8,639 |  |  |  | (8,723 | ) |  |  | 82,777 |
2020 |  |  | 41,252 |  |  |  | 24,700 |  |  |  | 6,434 |  |  |  | 7,285 |  |  |  | (6,134 | ) |  |  | 73,537 |
(1) Includes business realignment costs of $278 million included in the FedEx Express s egment, as well as a charge of $210 million related to the pre- and post-judgment interest in conne ction with a FedEx Ground legal matter included in “Corporate, other, and eliminations.” Also includes TNT Express integration expenses of $132 million included in “Corporate, other, and eliminations” and the FedEx Express segment. (2) Includes TNT Express integration expenses of $210 million included in “Corporate, other, and eliminations” and the FedEx Express segment. Also includes business realignment costs of $116 million included in the FedEx Express segment. (3) 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. Also includes TNT Express integration expenses of $270 million included in “Corporate, other, and eliminations” and the FedEx Express segment. (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 |
2022 |  | $ | 3,637 |  |  |  | $ | 2,139 |  |  | $ | 319 |  |  | $ | 565 |  |  | $ | 103 |  |  | $ | 6,763 |
2021 |  |  | 3,503 |  |  |  |  | 1,446 |  |  |  | 320 |  |  |  | 512 |  |  |  | 103 |  |  |  | 5,884 |
2020 |  |  | 3,560 |  |  |  |  | 1,083 |  |  |  | 539 |  |  |  | 527 |  |  |  | 159 |  |  |  | 5,868 |
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
|  | 2022 |  |  | 2021 |  |  | 2020 |
REVENUE BY SERVICE TYPE |  |  |  |  |  |  |  |  |
FedEx Express segment: |  |  |  |  |  |  |  |  |
Package: |  |  |  |  |  |  |  |  |
U.S. overnight box |  | $ | 9,084 |  |  | $ | 8,116 |  |  | $ | 7,234 |
U.S. overnight envelope |  |  | 1,971 |  |  |  | 1,791 |  |  |  | 1,776 |
U.S. deferred |  |  | 5,330 |  |  |  | 4,984 |  |  |  | 4,038 |
Total U.S. domestic package revenue |  |  | 16,385 |  |  |  | 14,891 |  |  |  | 13,048 |
International priority |  |  | 12,130 |  |  |  | 10,317 |  |  |  | 7,354 |
International economy |  |  | 2,838 |  |  |  | 2,632 |  |  |  | 3,082 |
Total international export package revenue |  |  | 14,968 |  |  |  | 12,949 |  |  |  | 10,436 |
International domestic(1) |  |  | 4,340 |  |  |  | 4,640 |  |  |  | 4,179 |
Total package revenue |  |  | 35,693 |  |  |  | 32,480 |  |  |  | 27,663 |
Freight: |  |  |  |  |  |  |  |  |
U.S. |  |  | 3,041 |  |  |  | 3,325 |  |  |  | 2,998 |
International priority |  |  | 3,840 |  |  |  | 3,030 |  |  |  | 1,915 |
International economy |  |  | 1,653 |  |  |  | 1,582 |  |  |  | 1,930 |
International airfreight |  |  | 177 |  |  |  | 245 |  |  |  | 270 |
Total freight revenue |  |  | 8,711 |  |  |  | 8,182 |  |  |  | 7,113 |
Other(2) |  |  | 1,410 |  |  |  | 1,416 |  |  |  | 737 |
Total FedEx Express segment |  |  | 45,814 |  |  |  | 42,078 |  |  |  | 35,513 |
FedEx Ground segment |  |  | 33,232 |  |  |  | 30,496 |  |  |  | 22,733 |
FedEx Freight segment |  |  | 9,532 |  |  |  | 7,833 |  |  |  | 7,102 |
FedEx Services segment |  |  | 253 |  |  |  | 32 |  |  |  | 22 |
Other and eliminations(3) |  |  | 4,681 |  |  |  | 3,520 |  |  |  | 3,847 |
|  | $ | 93,512 |  |  | $ | 83,959 |  |  | $ | 69,217 |
GEOGRAPHICAL INFORMATION(4) |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |
U.S. |  | $ | 64,941 |  |  | $ | 58,792 |  |  | $ | 48,404 |
International: |  |  |  |  |  |  |  |  |
FedEx Express segment |  |  | 25,564 |  |  |  | 23,085 |  |  |  | 19,177 |
FedEx Ground segment |  |  | 857 |  |  |  | 735 |  |  |  | 479 |
FedEx Freight segment |  |  | 235 |  |  |  | 190 |  |  |  | 192 |
FedEx Services segment |  |  | 1 |  |  |  | 1 |  |  |  | 1 |
Other |  |  | 1,914 |  |  |  | 1,156 |  |  |  | 964 |
Total international revenue |  |  | 28,571 |  |  |  | 25,167 |  |  |  | 20,813 |
|  | $ | 93,512 |  |  | $ | 83,959 |  |  | $ | 69,217 |
Noncurrent assets: |  |  |  |  |  |  |  |  |
U.S. |  | $ | 53,311 |  |  | $ | 49,407 |  |  | $ | 45,691 |
International |  |  | 12,318 |  |  |  | 12,790 |  |  |  | 11,463 |
|  | $ | 65,629 |  |  | $ | 62,197 |  |  | $ | 57,154 |
(1) International domestic revenue relates to our intra-country operations. (2) Includes the operations of FedEx Custom Critical beginning March 1, 2020 and FedEx Cross Border beginning June 1, 2020. (3) Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments. The financial results of FedEx Dataworks are included in the periods ended May 31, 2022 and 2021. (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, operating lease right-of-use assets, 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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