XML 33 R18.htm IDEA: XBRL DOCUMENT v3.24.4
Business Segment Information
6 Months Ended
Nov. 30, 2024
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segment Information

NOTE 7: Business Segment Information

We provide a broad portfolio of transportation, e-commerce, and business services, offering integrated business solutions utilizing our flexible, efficient, and intelligent global network. Our primary operating companies are Federal Express, the world’s largest express transportation company and a leading North American provider of small-package ground delivery services, and FedEx Freight, a leading North American provider of LTL freight transportation services. These companies 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)

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 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 provides a reconciliation of reportable segment revenue and operating income (loss) to our unaudited condensed consolidated financial statement totals for the periods ended November 30 (in millions):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Federal Express segment

 

$

18,841

 

 

$

18,773

 

 

$

37,146

 

 

$

37,199

 

FedEx Freight segment

 

 

2,177

 

 

 

2,452

 

 

 

4,506

 

 

 

4,837

 

Other and eliminations

 

 

949

 

 

 

940

 

 

 

1,894

 

 

 

1,810

 

 

 

$

21,967

 

 

$

22,165

 

 

$

43,546

 

 

$

43,846

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Federal Express segment

 

$

1,052

 

 

$

1,035

 

 

$

2,005

 

 

$

2,341

 

FedEx Freight segment

 

 

312

 

 

 

491

 

 

 

751

 

 

 

973

 

Corporate, other, and eliminations

 

 

(312

)

 

 

(250

)

 

 

(624

)

 

 

(553

)

 

 

$

1,052

 

 

$

1,276

 

 

$

2,132

 

 

$

2,761

 

The following table provides a reconciliation of reportable segment assets to our unaudited condensed consolidated financial statement totals as of the periods presented (in millions):

 

 

November 30, 2024
(Unaudited)

 

 

May 31,
2024

 

Total assets:

 

 

 

 

 

 

Federal Express segment

 

$

72,881

 

 

$

73,259

 

FedEx Freight segment

 

 

12,284

 

 

 

11,615

 

Corporate, other, and eliminations

 

 

316

 

 

 

2,133

 

 

 

$

85,481

 

 

$

87,007