FEDERAL EXPRESS CORP

CIK:0000230211|SEC Filings

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Consolidated Statements of Income
REVENUES	$ 6,318	$ 6,388	$ 18,923	$ 19,687
OPERATING EXPENSES:
Salaries and employee benefits	2,509	2,444	7,364	7,198
Purchase transportation	398	432	1,237	1,354
Rentals and landing fees	445	428	1,239	1,263
Depreciation and amortization	340	362	1,030	1,098
Fuel	455	697	1,579	2,573
Maintenance and repairs	304	322	976	1,055
Intercompany charges, net	494	483	1,458	1,434
Other	818	816	2,405	2,445
OPERATING EXPENSES	5,763	5,984	17,288	18,420
OPERATING INCOME	555	404	1,635	1,267
OTHER INCOME (EXPENSE):
Interest, net	3	5	16	13
Other, net	(50)	(34)	(134)	(91)
OTHER INCOME (EXPENSE)	(47)	(29)	(118)	(78)
INCOME BEFORE INCOME TAXES	508	375	1,517	1,189
PROVISION FOR INCOME TAXES	175	131	502	416
NET INCOME	$ 333	$ 244	$ 1,015	$ 773

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Operating Activities:
Net income	$ 1,015	$ 773
Noncash charges:
Depreciation and amortization	1,030	1,098
Other, net	426	176
Changes in assets and liabilities. net	(461)	(329)
Cash provided by operating activities	2,010	1,718
Investing Activities:
Capital expenditures	(1,857)	(1,644)
Other	15	1
Cash used in investing activities	(1,842)	(1,643)
Financing Activities:
Principal payments on debt	(7)
Cash used in financing activities	(7)
Effect of exchange rate changes on cash	(64)	(90)
Net increase (decrease) in cash and cash equivalents	97	(15)
Cash and cash equivalents at beginning of period	884	858
Cash and cash equivalents at end of period	$ 981	$ 843

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 981	$ 884
Receivables, less allowances of $79 and $92	1,457	1,549
Spare parts, supplies and fuel, less allowances of $209 and $204	369	394
Deferred income taxes	380	378
Due from parent company and other FedEx subsidiaries	584	501
Prepaid expenses and other	124	108
Total current assets	3,895	3,814
PROPERTY AND EQUIPMENT, AT COST	28,007	26,286
Less accumulated depreciation and amortization	13,193	12,392
Net property and equipment	14,814	13,894
OTHER LONG-TERM ASSETS
Goodwill	1,341	1,448
Other assets	973	1,104
Total other long-term assets	2,314	2,552
ASSETS	21,023	20,260
CURRENT LIABILITIES
Current portion of long-term debt	3	7
Accrued salaries and employee benefits	971	1,014
Accounts payable	1,093	1,257
Accrued expenses	949	1,056
Due to other FedEx subsidiaries	1,777	1,932
Total current liabilities	4,793	5,266
LONG-TERM DEBT, LESS CURRENT PORTION	239	239
OTHER LONG-TERM LIABILITIES
Deferred income taxes	2,078	1,712
Pension, postretirement healthcare and other benefit obligations	1,291	1,251
Self insurance accruals	804	711
Deferred lease obligations	549	572
Deferred gains, principally related to aircraft transactions	158	178
Other liabilities	145	117
Total other long-term liabilities	$ 5,025	$ 4,541
COMMITMENTS AND CONTINGENCIES
OWNER'S EQUTIY
Common stock, $0.10 par value; 1,000 shares authorized, issued and outstanding	$ 0	$ 0
Additional paid-in capital	608	608
Retained earnings	10,854	9,839
Accumulated other comprehensive loss	(496)	(233)
Total owner's equity	10,966	10,214
LIABILITIES AND OWNER'S EQUITY	$ 21,023	$ 20,260