BUSINESS SEGMENTS AND DISAGGREGATED REVENUE (Tables)

12 Months Ended

May 31, 2025

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 benefits	25,091		3,865		2,276		31,232
Purchased transportation	19,974		807		987		21,768
Rentals and landing fees	3,939		287		421		4,647
Depreciation and amortization	3,722		416		126		4,264
Fuel	3,316		457		2		3,775
Maintenance and repairs	2,799		332		114		3,245
Asset impairment charges	21		—		—		21
Business optimization costs	384		—		372		756
Intercompany allocations (charges)	(791)		573		218		—
Other(1)	11,964		666		371		13,001
Total operating expenses	70,419		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 taxes							5,441
Provision for income taxes							1,349
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 benefits	24,606		3,923		2,432		30,961
Purchased transportation	19,330		877		714		20,921
Rentals and landing fees	3,863		280		428		4,571
Depreciation and amortization	3,754		404		129		4,287
Fuel	4,137		571		2		4,710
Maintenance and repairs	2,848		330		113		3,291
Goodwill and other asset impairment charges	157		—		—		157
Business optimization costs	251		—		331		582
Intercompany allocations (charges)	(684)		543		141		—
Other(1)	11,582		680		392		12,654
Total operating expenses	69,844		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 taxes							5,836
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 benefits	24,523		4,057		2,439		31,019
Purchased transportation	19,677		1,078		1,035		21,790
Rentals and landing fees	4,035		269		434		4,738
Depreciation and amortization	3,655		387		134		4,176
Fuel	5,157		748		4		5,909
Maintenance and repairs	2,910		320		127		3,357
Goodwill and other asset impairment charges	70		—		47		117
Business optimization costs	47		—		262		309
Intercompany allocations (charges)	(689)		542		147		—
Other(1)	12,306		747		775		13,828
Total operating expenses	71,691		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 taxes							5,363
Provision for income taxes							1,391
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 eliminations		Consolidated Total
Segment assets(1)
2025	$	74,154	$	12,899	$	574	$	87,627
2024	73,259		11,615		2,133		87,007
2023	85,128		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.

Schedule of Segment Capital Expenditures

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		Other		Consolidated Total
2025	$	3,505	$	437	$	113	$	4,055
2024	4,591		461		124		5,176
2023	5,480		557		137		6,174

Schedule of Revenue by Service Type and Geographical Information

The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):


	2025		2024		2023
REVENUE BY SERVICE TYPE
Federal Express segment:
Package:
U.S. priority revenue	$	10,520	$	10,543	$	10,896
U.S. deferred revenue	5,007		4,926		5,126
U.S. ground revenue	33,887		32,981		32,352
Total U.S. domestic package revenue	49,414		48,450		48,374
International priority	8,737		9,454		10,938
International economy	5,861		4,653		3,307
Total international export package revenue	14,598		14,107		14,245
International domestic(1)	4,495		4,659		4,552
Total package revenue	68,507		67,216		67,171
Freight:
U.S.	1,536		2,391		2,883
International priority	2,320		2,205		3,059
International economy	1,975		1,874		1,719
Total freight revenue	5,831		6,470		7,661
Other	966		977		1,052
Total Federal Express segment	75,304		74,663		75,884
FedEx Freight segment	8,892		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 segment	23,720		23,136		23,951
FedEx Freight segment	247		266		264
Other	1,043		760		1,050
Total international revenue	25,010		24,162		25,265
	$	87,926	$	87,693	$	90,155
Noncurrent assets:
U.S.	$	57,040	$	56,822	$	56,449
International	12,201		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.