Goodwill and Other Intangible Assets

12 Months Ended

May 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL. The carrying amount of goodwill attributable to each reportable operating segment and changes therein are as follows (in millions):


	FedEx Express Segment			FedEx Ground Segment			FedEx Freight Segment			Corporate, Other, and Eliminations			Total
Goodwill at May 31, 2020	$	4,869		$	840		$	767		$	1,938		$	8,414
Accumulated impairment charges		—			—			(133	)		(1,909	)		(2,042	)
Balance as of May 31, 2020		4,869			840			634			29			6,372
Goodwill acquired(1)		18			103			—			40			161
Other(2)		471			—			—			(12	)		459
Balance as of May 31, 2021		5,358			943			634			57			6,992
Other(2)		(433	)		(11	)		—			(4	)		(448	)
Balance as of May 31, 2022	$	4,925		$	932		$	634		$	53		$	6,544
Accumulated goodwill impairment charges as of May 31, 2022	$	—		$	—		$	(133	)	$	(1,909	)	$	(2,042	)

(1)

Goodwill acquired relates to the acquisition of ShopRunner. See Note 4 for more information.

(2)

Primarily currency translation adjustments and purchase price allocation-related adjustments.

Our reporting units with significant recorded goodwill include FedEx Express, FedEx Ground, and FedEx Freight. We evaluated these reporting units during the fourth quarter and the estimated fair value of each of these reporting units exceeded their carrying values as of the end of 2022 and 2021; therefore, we do not believe that any of these reporting units were impaired as of the balance sheet dates.

In 2020, we recorded impairment charges of $358 million predominantly attributable to our FedEx Office and Print Services, Inc. (“FedEx Office”) reporting unit. The coronavirus (“COVID-19”) pandemic resulted in store closures and declining print revenue at FedEx Office during the fourth quarter of 2020. Based on these factors, our outlook for the FedEx Office business and retail industry changed in the fourth quarter of 2020, which contributed $348 million to the goodwill impairment charge.

OTHER INTANGIBLE ASSETS. The summary of our intangible assets and related accumulated amortization at May 31, 2022 and 2021 is as follows (in millions):


	2022							2021
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Customer relationships	$	617	$	(340	)	$	277	$	591	$	(299	)	$	292
Technology		64		(40	)		24		65		(35	)		30
Trademarks and other		1		(1	)		—		1		(1	)		—
Total	$	682	$	(381	)	$	301	$	657	$	(335	)	$	322

Amortization expense for intangible assets was $52 million in 2022, $49 million in 2021, and $66 million in 2020.

Expected amortization expense for the next five years is as follows (in millions):


2023	$	52
2024		51
2025		50
2026		50
2027		48