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BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
 12 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE 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 (time-critical transportation)
In connection with our one FedEx consolidation plan, on June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. FedEx Freight continues to provide LTL freight transportation services as a separate subsidiary. Beginning in the first quarter of 2025, Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. Additionally, the results of FedEx Custom Critical are included in the FedEx Freight segment instead of the Federal Express segment in 2025. Prior-year amounts were revised to reflect this presentation.

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 regularly reviews significant segment level expense details to assess segment performance and allocate resources.

References to our transportation segments include, collectively, the Federal Express segment and the FedEx Freight segment.
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 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 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 year ended May 31, 2025 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Revenue$75,304 $8,892 

$3,730 

$87,926 
Operating expenses:



Salaries and employee benefits25,091 3,865 

2,276 

31,232 
Purchased transportation19,974 807 

987 

21,768 
Rentals and landing fees3,939 287 

421 

4,647 
Depreciation and amortization3,722 416 

126 

4,264 
Fuel3,316 457 

2 

3,775 
Maintenance and repairs2,799 332 

114 

3,245 
Asset impairment charges21 — — 21 
Business optimization costs384 — 

372 

756 
Intercompany allocations (charges)(791)573 

218 

— 
Other(1)
11,964 666 371 13,001 
Total operating expenses70,419 7,403 4,887 82,709 
Operating income$4,885 $1,489 

$(1,157)

5,217 
Other income (expense):
Interest, net(426)
Other retirement plans, net(2)
713 
Other, net(3)
(63)
Total other income (expense)224 
Income before income taxes5,441 
Provision for income taxes1,349 
Net income$4,092 
(1)Includes $88 million of net expenses included in Federal Express for international regulatory and legacy FedEx Ground legal matters. Also includes costs related to the planned spin-off of FedEx Freight of $38 million included in "Corporate, other, and eliminations."
(2)Includes a pre-tax, noncash gain of $515 million associated with our MTM retirement plans accounting adjustments.
(3)Includes $18 million related to the debt exchange offer and consent solicitation transactions in connection with the planned spin-off of FedEx Freight.
The following table presents segment information for the year ended May 31, 2024 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Revenue$74,663 $9,429 $3,601 $87,693 
Operating expenses:
Salaries and employee benefits24,606 3,923 2,432 30,961 
Purchased transportation19,330 877 714 20,921 
Rentals and landing fees3,863 280 428 4,571 
Depreciation and amortization3,754 404 129 4,287 
Fuel4,137 571 2 4,710 
Maintenance and repairs2,848 330 113 3,291 
Goodwill and other asset impairment charges157 — — 157 
Business optimization costs251 — 331 582 
Intercompany allocations (charges)(684)543 141 — 
Other(1)
11,582 680 392 12,654 
Total operating expenses69,844 7,608 4,682 82,134 
Operating income$4,819 $1,821 $(1,081)5,559 
Other income (expense):
Interest, net(375)
Other retirement plans, net(2)
722 
Other, net(70)
Total other income (expense)277 
Income before income taxes5,836 
Provision for income taxes(3)
1,505 
Net income$4,331 
(1)Includes a $57 million benefit included in “Corporate, other, and eliminations" for an insurance reimbursement related to pre- and post-judgment interest in connection with a legacy FedEx Ground legal matter.
(2)Includes a pre-tax, noncash gain of $561 million associated with our MTM retirement plans accounting adjustments.
(3)Includes a $54 million tax expense related to the remeasurement of state deferred income taxes under the new one FedEx structure.
The following table presents segment information for the year ended May 31, 2023 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		Corporate,
other, and eliminations		Consolidated
Total
Revenue$75,884 $10,084 $4,187 $90,155 
Operating expenses:
Salaries and employee benefits24,523 4,057 2,439 31,019 
Purchased transportation19,677 1,078 1,035 21,790 
Rentals and landing fees4,035 269 434 4,738 
Depreciation and amortization3,655 387 134 4,176 
Fuel5,157 748 4 5,909 
Maintenance and repairs2,910 320 127 3,357 
Goodwill and other asset impairment charges70 — 47 117 
Business optimization costs47 — 262 309 
Intercompany allocations (charges)(689)542 147 — 
Other(1)
12,306 747 775 13,828 
Total operating expenses71,691 8,148 5,404 85,243 
Operating income$4,193 $1,936 $(1,217)4,912 
Other income (expense):
Interest, net(496)
Other retirement plans, net(2)
1,054 
Other, net(107)
Total other income (expense)451 
Income before income taxes5,363 
Provision for income taxes1,391 
Net income$3,972 
(1)Includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
(2)Includes a pre-tax, noncash gain of $650 million associated with our MTM retirement plans accounting adjustments.
The following table provides a reconciliation of segment assets to consolidated financial statement totals (in millions) for the years as of May 31:
Federal
Express
Segment		FedEx
Freight
Segment		Corporate, other, and eliminationsConsolidated
Total
Segment assets(1)
2025$74,154 $12,899 $574 $87,627 
202473,259 11,615 2,133 87,007 
202385,128 10,416 (8,401)87,143 
(1)Segment assets include intercompany receivables. In the fourth quarter of 2024, legacy FedEx Ground settled an intercompany balance of $19.5 billion with FedEx in preparation for the one FedEx consolidation.
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):
Federal
Express
Segment		FedEx
Freight
Segment		OtherConsolidated
Total
2025$3,505 $437 $113 $4,055 
20244,591 461 124 5,176 
20235,480 557 137 6,174 
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
202520242023
REVENUE BY SERVICE TYPE
Federal Express segment:
Package:
U.S. priority revenue$10,520 $10,543 $10,896 
U.S. deferred revenue5,007 4,926 5,126 
U.S. ground revenue33,887 32,981 32,352 
Total U.S. domestic package revenue49,414 48,450 48,374 
International priority8,737 9,454 10,938 
International economy5,861 4,653 3,307 
Total international export package revenue14,598 14,107 14,245 
International domestic(1)
4,495 4,659 4,552 
Total package revenue68,507 67,216 67,171 
Freight:
U.S.1,536 2,391 2,883 
International priority2,320 2,205 3,059 
International economy1,975 1,874 1,719 
Total freight revenue5,831 6,470 7,661 
Other966 977 1,052 
Total Federal Express segment75,304 74,663 75,884 
FedEx Freight segment8,892 9,429 10,084 
Other and eliminations(2)
3,730 3,601 4,187 
$87,926 $87,693 $90,155 
GEOGRAPHICAL INFORMATION(3)
Revenue:
U.S.$62,916 $63,531 $64,890 
International:
Federal Express segment23,720 23,136 23,951 
FedEx Freight segment247 266 264 
Other1,043 760 1,050 
Total international revenue25,010 24,162 25,265 
$87,926 $87,693 $90,155 
Noncurrent assets:
U.S.$57,040 $56,822 $56,449 
International12,201 11,978 12,084 
$69,241 $68,800 $68,533 
(1)International domestic revenue relates to our intra-country operations.
(2)Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
(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, 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.