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BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
 3 Months Ended
Aug. 31, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
NOTE 7: BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. Our reportable segments include the following businesses:
Federal Express Segment
Federal Express (express transportation, small-package ground delivery, and freight transportation)
FedEx Freight Segment
FedEx Freight (LTL freight transportation)
FedEx Custom Critical, Inc. (time-critical transportation)
References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM is responsible for the company’s operating strategy, growth, and profitability and reviews financial information for our two reportable segments. The CODM uses operating income as the primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. Operating income is defined as income before other income (expense), interest expense and income tax expense. Our CODM also utilizes operating income in the annual budget and monthly forecasting processes and considers forecast-to-actual variances on a monthly basis, when making resource allocation decisions. Our CODM regularly reviews significant expense details, which include salaries and employee benefits, purchased transportation, rentals and landing fees, depreciation and amortization, fuel, maintenance and repairs, separation and other costs, business optimization costs, and other operating expenses. These expense categories are included within operating expenses in the accompanying unaudited condensed consolidated statements of income and are used by the CODM in assessing performance and allocating resources.
The Federal Express segment operates combined sales, marketing, administrative, and information-technology functions in shared service operations for U.S. customers of our major business units and certain back-office support to FedEx Freight and our other operating segments which allows us to obtain synergies from the combination of these functions. We allocate the net operating costs of these services to reflect the full cost of operating our businesses in the results of those segments. We review and evaluate the performance of FedEx Freight and our other operating segments based on operating income inclusive of these allocations.
Operating expenses for our FedEx Freight segment include allocations of these services from the Federal Express segment. 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.
Corporate, Other, and Eliminations
Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, certain other costs and credits not attributed to our core business, and certain costs associated with developing integrated business solutions through our FedEx Dataworks, Inc. (“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 is the FedEx Office and Print Services, Inc. (“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, Inc. (“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 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 presents segment information for the three-month period end August 31, 2025 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Revenue$19,116 $2,257 $871 $22,244 
Operating expenses:
Salaries and employee benefits6,516 975 571 8,062 
Purchased transportation5,073 201 214 5,488 
Rentals and landing fees1,013 74 105 1,192 
Depreciation and amortization954 110 28 1,092 
Fuel760 113 — 873 
Maintenance and repairs737 81 25 843 
Separation and other costs5 9 31 45 
Business optimization costs21 — 46 67 
Intercompany allocations (charges)(233)162 71 — 
Other3,132 172 92 3,396 
Total operating expenses17,978 1,897 1,183 21,058 
Operating income$1,138 $360 $(312)1,186 
Other (expense) income:
Interest, net(119)
Other retirement plans, net60 
Other, net(1)
7 
Total other (expense) income(52)
Income before income taxes1,134 
Provision for income taxes310 
Net income$824 
(1)Includes costs related to the planned spin-off of FedEx Freight of $2 million included in “Corporate, other, and eliminations.”
The following table presents segment information for the three-month period ended August 31, 2024 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Revenue$18,305 $2,329 $945 $21,579 
Operating expenses:
Salaries and employee benefits6,201 984 600 7,785 
Purchased transportation4,801 203 271 5,275 
Rentals and landing fees986 71 104 1,161 
Depreciation and amortization935 110 33 1,078 
Fuel954 121 — 1,075 
Maintenance and repairs719 82 28 829 
Business optimization costs43 — 85 128 
Intercompany allocations (charges)(187)148 39 — 
Other2,900 171 97 3,168 
Total operating expenses17,352 1,890 1,257 20,499 
Operating income$953 $439 $(312)1,080 
Other (expense) income:
Interest, net(84)
Other retirement plans, net49 
Other, net11 
Total other (expense) income (24)
Income before income taxes1,056 
Provision for income taxes262 
Net income$794 
The following table provides a reconciliation of segment assets to our unaudited condensed consolidated financial statement totals as of the periods presented (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and
eliminations		Consolidated
Total
Segment assets
August 31, 2025 (Unaudited)$75,045 $13,274 $97 $88,416 
May 31, 202574,154 12,899 574 87,627 
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the three-month periods ended August 31, 2025 and 2024 (in millions).
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
August 31, 2025 $568 $32 $23 $623 
August 31, 2024703 35 29 767 
The following table presents revenue by service type for the three months ended August 31, 2025 and 2024 (in millions):
Three Months Ended
August 31, 2025August 31, 2024
REVENUE BY SERVICE TYPE
Federal Express segment:
Package:
U.S. priority
$2,767 $2,591 
U.S. deferred
1,273 1,151 
U.S. ground
8,654 8,056 
Total U.S. domestic package revenue
12,694 11,798 
International priority
2,258 2,206 
International economy
1,354 1,360 
Total international export package revenue
3,612 3,566 
International domestic(1)
1,135 1,112 
Total package revenue
17,441 16,476 
Freight:
U.S.
303 569 
International priority
595 526 
International economy
528 463 
Total freight revenue
1,426 1,558 
Other
249 271 
Total Federal Express Segment
19,116 18,305 
FedEx Freight Segment2,257 2,329 
Other and eliminations(2)
871 945 
$22,244 $21,579 
(1)International domestic revenue relates to our intra-country operations.
(2)Includes the FedEx Logistics, FedEx Office, and FedEx Dataworks operating segments.
The following table presents geographic revenue information for the three months ended August 31, 2025 and 2024 (in millions):
August 31, 2025August 31, 2024
GEOGRAPHICAL INFORMATION(1)
Revenue:
U.S.$15,975 $15,496 
International:
Federal Express segment5,967 5,737 
FedEx Freight segment62 65 
Other240 281 
Total international revenue6,269 6,083 
$22,244 $21,579 
(1)International revenue includes shipments that either originate in or are destined to locations outside the United States, which could include U.S. payors.
The following table presents geographic noncurrent asset information as of August 31, 2025 and May 31, 2025 (in millions):
GEOGRAPHICAL INFORMATION(1)
August 31, 2025 (unaudited)May 31, 2025
Noncurrent assets:
U.S.$56,703 $57,040 
International12,369 12,201 
$69,072 $69,241 
(1)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.