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Business Segment Information (Tables)
 12 Months Ended
May 31, 2017
Business Segment Information Tables [Abstract]  
Schedule of Segment Information

The following table provides a reconciliation of reportable segment revenues, depreciation and amortization, operating income and segment assets to consolidated financial statement totals (in millions) for the years ended or as of May 31:

 

 

 

FedEx

Express

Segment

 

 

TNT Express

Segment

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Eliminations,

corporate

and other(5)

 

 

Consolidated

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

27,358

 

 

$

7,401

 

 

$

18,075

 

 

$

6,443

 

 

$

1,621

 

 

$

(579

)

 

$

60,319

 

2016

 

 

26,451

 

 

N/A

 

 

 

16,574

 

 

 

6,200

 

 

 

1,593

 

 

 

(453

)

 

 

50,365

 

2015

 

 

27,239

 

 

N/A

 

 

 

12,984

 

 

 

6,191

 

 

 

1,545

 

 

 

(506

)

 

 

47,453

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

1,431

 

 

$

239

 

 

$

684

 

 

$

269

 

 

$

371

 

 

$

1

 

 

$

2,995

 

2016

 

 

1,385

 

 

N/A

 

 

 

608

 

 

 

248

 

 

 

384

 

 

 

6

 

 

 

2,631

 

2015

 

 

1,460

 

 

N/A

 

 

 

530

 

 

 

230

 

 

 

390

 

 

 

1

 

 

 

2,611

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017(1)

 

$

2,678

 

 

$

84

 

 

$

2,292

 

 

$

397

 

 

$

—

 

 

$

(414

)

 

$

5,037

 

2016(2)

 

 

2,519

 

 

N/A

 

 

 

2,276

 

 

 

426

 

 

 

—

 

 

 

(2,144

)

 

 

3,077

 

2015(3)

 

 

1,584

 

 

N/A

 

 

 

2,172

 

 

 

484

 

 

 

—

 

 

 

(2,373

)

 

 

1,867

 

Segment assets(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

24,882

 

 

$

6,939

 

 

$

14,628

 

 

$

3,925

 

 

$

5,682

 

 

$

(7,504

)

 

$

48,552

 

2016

 

 

21,205

 

 

N/A

 

 

 

13,098

 

 

 

3,749

 

 

 

5,390

 

 

 

2,517

 

 

 

45,959

 

2015

 

 

20,382

 

 

N/A

 

 

 

11,691

 

 

 

3,471

 

 

 

5,356

 

 

 

(4,431

)

 

 

36,469

 

 

(1)

Includes TNT Express integration expenses and restructuring charges of $327 million, increased intangible asset amortization of $74 million as a result of the TNT Express acquisition, and a gain of $24 million associated with our mark-to-market pension accounting. These expenses are included in “Eliminations, corporate and other,” the FedEx Express segment and the TNT Express segment. Also includes $39 million of charges for legal reserves related to certain pending U.S. Customs and Border Protection (“CBP”) matters involving FedEx Trade Networks and $22 million of charges in connection with the settlement of and certain expected losses relating to independent contractor litigation matters at FedEx Ground. See Note 18 below for additional information.

(2)

Includes a $1.5 billion loss associated with our mark-to-market pension accounting. Also includes provisions for the settlement of and expected losses related to independent contractor litigation matters at FedEx Ground for $256 million and expenses related to the settlement of a CBP notice of action in the amount of $69 million, in each case net of recognized immaterial insurance recovery, and transaction and integration-planning expenses related to our TNT Express acquisition of $113 million.  

(3)

Includes a $2.2 billion loss associated with our mark-to-market pension accounting, $276 million of impairment and related charges resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines, and a $197 million charge to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement.

(4)

Segment assets include intercompany receivables.

(5)

Includes TNT Express’s assets and immaterial financial results for 2016 from the time of acquisition (May 25, 2016).  

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):

 

 

 

FedEx

Express

Segment

 

 

TNT Express

Segment

 

 

FedEx

Ground

Segment

 

 

FedEx

Freight

Segment

 

 

FedEx

Services

Segment

 

 

Other

 

 

Consolidated

Total

 

2017

 

$

2,525

 

 

$

205

 

 

$

1,539

 

 

$

431

 

 

$

416

 

 

$

—

 

 

$

5,116

 

2016

 

 

2,356

 

 

N/A

 

 

 

1,597

 

 

 

433

 

 

 

432

 

 

 

—

 

 

 

4,818

 

2015

 

 

2,380

 

 

N/A

 

 

 

1,248

 

 

 

337

 

 

 

381

 

 

 

1

 

 

 

4,347

 

 
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):

 

 

 

2017

 

 

2016

 

 

2015

 

REVENUE BY SERVICE TYPE

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment:

 

 

 

 

 

 

 

 

 

 

 

 

Package:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. overnight box

 

$

6,958

 

 

$

6,763

 

 

$

6,704

 

U.S. overnight envelope

 

 

1,750

 

 

 

1,662

 

 

 

1,629

 

U.S. deferred

 

 

3,528

 

 

 

3,379

 

 

 

3,342

 

Total U.S. domestic package revenue

 

 

12,236

 

 

 

11,804

 

 

 

11,675

 

International priority

 

 

5,827

 

 

 

5,697

 

 

 

6,251

 

International economy

 

 

2,412

 

 

 

2,282

 

 

 

2,301

 

Total international export package revenue

 

 

8,239

 

 

 

7,979

 

 

 

8,552

 

International domestic(1)

 

 

1,299

 

 

 

1,285

 

 

 

1,406

 

Total package revenue

 

 

21,774

 

 

 

21,068

 

 

 

21,633

 

Freight:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

2,528

 

 

 

2,481

 

 

 

2,300

 

International priority

 

 

1,502

 

 

 

1,384

 

 

 

1,588

 

International airfreight

 

 

118

 

 

 

126

 

 

 

180

 

Total freight revenue

 

 

4,148

 

 

 

3,991

 

 

 

4,068

 

Other(2)

 

 

1,436

 

 

 

1,392

 

 

 

1,538

 

Total FedEx Express segment

 

 

27,358

 

 

 

26,451

 

 

 

27,239

 

TNT Express segment

 

 

7,401

 

 

N/A

 

 

N/A

 

FedEx Ground segment:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Ground

 

 

16,497

 

 

 

15,050

 

 

 

12,568

 

FedEx Supply Chain

 

 

1,578

 

 

 

1,524

 

 

 

416

 

Total FedEx Ground segment

 

 

18,075

 

 

 

16,574

 

 

 

12,984

 

FedEx Freight segment

 

 

6,443

 

 

 

6,200

 

 

 

6,191

 

FedEx Services segment

 

 

1,621

 

 

 

1,593

 

 

 

1,545

 

Other and eliminations(3)

 

 

(579

)

 

 

(453

)

 

 

(506

)

 

 

$

60,319

 

 

$

50,365

 

 

$

47,453

 

GEOGRAPHICAL INFORMATION(4)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

40,269

 

 

$

38,070

 

 

$

34,216

 

International:

 

 

 

 

 

 

 

 

 

 

 

 

FedEx Express segment

 

 

12,094

 

 

 

11,672

 

 

 

12,772

 

TNT Express segment

 

 

7,346

 

 

N/A

 

 

N/A

 

FedEx Ground segment

 

 

451

 

 

 

383

 

 

 

311

 

FedEx Freight segment

 

 

149

 

 

 

137

 

 

 

142

 

FedEx Services segment

 

 

10

 

 

 

10

 

 

 

12

 

Other(3)

 

 

—

 

 

 

93

 

 

 

—

 

Total international revenue

 

 

20,050

 

 

 

12,295

 

 

 

13,237

 

 

 

$

60,319

 

 

$

50,365

 

 

$

47,453

 

Noncurrent assets:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

28,141

 

 

$

25,942

 

 

$

23,520

 

International

 

 

7,783

 

 

 

8,028

 

 

 

2,614

 

 

 

$

35,924

 

 

$

33,970

 

 

$

26,134

 

 

(1)

International domestic revenues represent our intra-country operations.

(2)

Includes FedEx Trade Networks and FedEx SupplyChain Systems.

(3)

Includes TNT Express’s revenue for 2016 from the time of acquisition (May 25, 2016).

(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, 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.