Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Record Fourth Quarter

and Full-Year Earnings

MEMPHIS, Tenn., June 20, 2017 ... FedEx Corp. (NYSE: FDX) today reported earnings of $3.75 per diluted share ($4.25 per diluted share on an adjusted basis) for the fourth quarter ended May 31, compared to a loss of $0.26 per diluted share (earnings of $3.30 per diluted share on an adjusted basis) a year ago.

This year’s and last year’s quarterly consolidated earnings have been adjusted for:

Impact per diluted share	Fourth Quarter
	Fiscal 2017			Fiscal 2016
Mark-to-market (“MTM”) pension accounting adjustments	($	0.02	)	$	3.47
TNT Express integration expenses		0.32			—
FedEx Trade Networks legal matters		0.09			—
TNT Express intangible asset amortization		0.06			—
FedEx Ground legal matters		0.05			0.02
TNT Express expenses and operating results from the date of acquisition		—			0.34
Tax impact – legal entity restructuring for TNT integration		—			(0.28	)

“Strong fourth quarter results completed a record fiscal 2017,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We enter fiscal 2018 confident FedEx Corp. will continue to deliver outstanding value and opportunities for shareowners, customers, and team members for years to come.”

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Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter (adjusted measures exclude the items listed above for the applicable fiscal year):

	Fiscal 2017		Fiscal 2016
	As Reported (GAAP)	Adjusted (non-GAAP)	As Reported (GAAP)	Adjusted (non-GAAP)
Revenue	$15.7 billion	$15.7 billion	$13.0 billion	$13.0 billion
Operating income (loss)	$1.58 billion	$1.76 billion	($68 million)	$1.51 billion
Operating margin	10.1%	11.2%	(0.5%)	11.7%
Net income (loss)	$1.02 billion	$1.15 billion	($70 million)	$897 million
Diluted EPS	$3.75	$4.25	($0.26)	$3.30

Operating results benefited from higher base rates, increased package volume and the inclusion of TNT Express results. Net income and earnings per share reflect tax benefits of $104 million, or $0.37 per diluted share, related to the implementation of new foreign currency tax regulations, the adoption of a new accounting standard for share-based payments, and certain transactions related to the TNT Express integration.

Full-Year Results

FedEx Corp. reported the following consolidated results for the full year (adjusted measures exclude the items listed above for the applicable fiscal year):

	Fiscal 2017		Fiscal 2016
	As Reported (GAAP)	Adjusted (non-GAAP)	As Reported (GAAP)	Adjusted (non-GAAP)
Revenue	$60.3 billion	$60.3 billion	$50.4 billion	$50.4 billion
Operating income	$5.04 billion	$5.48 billion	$3.08 billion	$5.01 billion
Operating margin	8.4%	9.1%	6.1%	10.0%
Net income	$3.00 billion	$3.33 billion	$1.82 billion	$3.02 billion
Diluted EPS	$11.07	$12.30	$6.51	$10.80

Operating results benefited from higher base rates, increased volume, continued cost management at FedEx Express and the inclusion of TNT Express results. Tax benefits from the implementation of new foreign currency tax regulations and the adoption of a new accounting standard for share-based payments also benefited results. These factors were partially offset by TNT Express integration and restructuring expenses and network expansion costs at FedEx Ground.

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Capital spending for fiscal 2017 was $5.1 billion, as certain FedEx Ground expansion projects were deferred to fiscal 2018.

For the year, the company acquired 2.96 million shares of FedEx common stock at an average price of $172.13.

Outlook

FedEx is unable to forecast the fiscal 2018 year-end MTM pension accounting adjustments. As a result, the company is unable to provide fiscal 2018 earnings guidance on a GAAP basis.

Before year-end MTM pension accounting adjustments, earnings are projected to be $12.45 to $13.25 per diluted share for fiscal 2018. This forecast assumes moderate economic growth. The earnings forecast before year-end MTM pension accounting adjustments and excluding TNT Express integration expenses, including restructuring charges, is $13.20 to $14.00 per diluted share for fiscal 2018. These forecasts include an estimated $65 million of TNT Express intangible asset amortization expense.

Capital spending for fiscal 2018 is expected to be approximately $5.9 billion, which includes an increase in planned aircraft deliveries to support the FedEx Express fleet modernization program and continued investments in FedEx Ground automation and capacity expansion, including certain projects deferred from fiscal 2017.

“Investments to modernize our aircraft fleet and expand our FedEx Ground capacity are supporting our strong earnings growth,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “We are very optimistic about fiscal 2018 as evidenced by our earnings outlook.”

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported (adjusted measures exclude TNT Express integration expenses):

	Fiscal 2017		Fiscal 2016
	As Reported (GAAP)	Adjusted (non-GAAP)	As Reported (GAAP)
Revenue	$7.18 billion	$7.18 billion	$6.72 billion
Operating income	$863 million	$909 million	$757 million
Operating income YOY change %	14%	20%
Operating margin	12.0%	12.7%	11.3%

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Revenue increased 7% primarily due to increased package volume, driven by international export growth of 5%, and higher base rates.

Operating results increased primarily due to higher base rates, increased package volume, a positive net benefit from fuel and the continued benefit of cost management initiatives. As-reported results include $46 million of expenses related to the integration of TNT Express.

TNT Express Segment

For the fourth quarter, the TNT Express segment reported (adjusted measures exclude integration expenses, including restructuring charges, and intangible asset amortization expense):

	Fiscal 2017
	As Reported (GAAP)	Adjusted (non-GAAP)
Revenue	$1.91 billion	$1.91 billion
Operating income	$26 million	$83 million
Operating margin	1.4%	4.4%

The TNT Express as-reported results include $37 million of integration expenses, including restructuring charges, and $20 million of intangible asset amortization expense.

FedEx Ground Segment

For the fourth quarter, the FedEx Ground segment reported:

	Fiscal 2017	Fiscal 2016	Change
Revenue	$4.68 billion	$4.29 billion	9%
Operating income	$702 million	$656 million	7%
Operating margin	15.0%	15.3%	(0.3 pts)

Revenue increased due primarily to higher base rates and average daily package volume growth of 3%.

Operating income increased due to higher yields and volume, partially offset by network expansion and staffing costs as well as increased self-insurance reserves.

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FedEx Freight Segment

For the fourth quarter, the FedEx Freight segment reported:

	Fiscal 2017	Fiscal 2016	Change
Revenue	$1.70 billion	$1.61 billion	6%
Operating income	$133 million	$137 million	(3%)
Operating margin	7.8%	8.5%	(0.7 pts)

Revenue increased due to higher base rates and fuel surcharges. Average daily shipments were flat as the company focuses on improving revenue quality.

Operating results decreased slightly as higher salaries and wages and increased information technology expenses offset the benefit from higher base rates.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $60 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 400,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. To learn more about how FedEx connects people and possibilities around the world, please visit about.fedex.com.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks, Statistical Books and fourth quarter fiscal 2017 Earnings Presentation. These materials, as well as a webcast of the earnings release conference call to be held at 5:00 p.m. EDT on June 20, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.

The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our Securities and Exchange Commission (“SEC”) filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

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Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, our ability to successfully integrate the businesses and operations of FedEx Express and TNT Express in the expected time frame, our ability to match capacity to shifting volume levels, changes in fuel prices or currency exchange rates, a significant data breach or other disruption to our technology infrastructure, legal challenges or changes related to FedEx Ground’s owner-operators and the drivers providing services on their behalf, new U.S. domestic or international government regulation, our ability to effectively operate, integrate and leverage acquired businesses, disruptions or modifications in service by, or changes in the business of, the U.S. Postal Service, the impact from any terrorist activities or international conflicts and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Contact: Jess Bunn 901-818-7463

Investor Contact: Mickey Foster 901-818-7468

Home Page: fedex.com

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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

Fourth Quarter and Full-Year Fiscal 2017 and Fiscal 2016 Results

The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted fourth quarter and adjusted full-year fiscal 2017 and 2016 consolidated operating income and margin, net income and diluted earnings per share, and adjusted fourth quarter and adjusted full-year fiscal 2017 FedEx Express segment and TNT Express segment operating income and margin. These financial measures have been adjusted to exclude the impact of the following items (as applicable):

• Year-end MTM pension accounting adjustments (non-cash) for our defined benefit pension and other postretirement plans;

• TNT Express integration expenses incurred in fiscal 2017;

• Expenses incurred in fiscal 2016 in connection with the settlement of a U.S. Customs and Border Protection matter involving FedEx Trade Networks, net of recognized insurance recovery;

• Fiscal 2017 charges related to certain pending U.S. Customs and Border Protection matters involving FedEx Trade Networks;

• TNT Express intangible asset amortization;

• Expenses incurred in fiscal 2016 and 2017 in connection with the settlement of (and certain expected losses relating to) independent contractor litigation matters involving FedEx Ground (net of recognized insurance recovery for fiscal 2016); and

• Expenses incurred in fiscal 2016 associated with the acquisition, financing and integration of TNT Express and its operating results from the date of acquisition, net of any tax impact, including the income tax impact of an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express that is presented as a separate item herein.

The MTM accounting-related adjustments are excluded from our fourth quarter and full-year fiscal 2017 and 2016 non-GAAP financial measures because these non-cash items are unrelated to our core operating performance.

We expect to incur significant expenses over the next few years in connection with our integration of TNT Express. We have adjusted our fourth quarter and

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full-year fiscal 2017 financial measures and the FedEx Express segment and TNT Express segment fourth quarter and full-year fiscal 2017 financial measures to exclude these items because we generally would not incur such expenses as part of our continuing operations. The integration expenses are predominantly incremental costs directly associated with the integration of TNT Express, including professional and legal fees, salaries and wages, advertising expenses and travel. Internal salaries and wages are included only to the extent the individuals are assigned full-time to integration activities. The integration expenses also include restructuring charges at TNT Express.

The litigation- and legal-related matters are excluded from our fourth quarter and full-year fiscal 2017 and 2016 non-GAAP financial measures, as applicable, because they are unrelated to our core operating performance and to assist investors with assessing trends in our underlying businesses.

We also have recurring intangible asset amortization expenses at TNT Express. The company and TNT Express incurred, and will continue incurring, these expenses solely as a result of the company’s acquisition of TNT Express and the related purchase accounting treatment. We excluded intangible asset amortization from our fourth quarter and full-year fiscal 2017 non-GAAP financial results and the TNT Express segment’s fourth quarter and full-year fiscal 2017 non-GAAP financial results to help investors understand the impact of these expenses on TNT Express’s base business and to facilitate the overall comparability of the company’s consolidated financial results. We will not adjust our financial results for intangible asset amortization beginning in fiscal 2018 because the company’s financial results will be comparable year-over-year at that time. Beginning in fiscal 2018, we will recast our fiscal 2017 non-GAAP financial results to include TNT Express intangible asset amortization.

The TNT Express expense items, as well as the income tax impact of an internal corporate legal entity restructuring to facilitate the integration of FedEx Express and TNT Express, are excluded from our fourth quarter and full-year fiscal 2016 non-GAAP financial measures because these items impacted the year-over-year comparability of our financial statements and are not related to our core operating performance. We excluded TNT Express operating results from the date of acquisition from our fourth quarter and full-year fiscal 2016 non-GAAP financial measures because it was acquired on May 25, 2016 (six days before the end of our fiscal year), and its financial results were immaterial from the date of acquisition and not presented as a separate segment.

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We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company’s and our business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating the company’s and each business segment’s ongoing performance.

Our non-GAAP measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.

Fiscal 2018 Earnings Guidance

Our fiscal 2018 earnings guidance is a non-GAAP financial measure because it excludes the fiscal 2018 year-end MTM pension accounting adjustments and projected fiscal 2018 TNT Express integration expenses, including restructuring charges at TNT Express. We have provided this non-GAAP earnings guidance measure for the same reasons that were outlined above for historical non-GAAP measures.

We are unable to predict the amount of the year-end MTM pension accounting adjustments, as they are significantly impacted by changes in interest rates and the financial markets, so such adjustments are not included in our earnings guidance. For this reason, a full reconciliation of our fiscal 2018 earnings guidance to the most directly comparable GAAP measure is impracticable. It is reasonably possible, however, that our fourth quarter fiscal 2018 MTM pension accounting adjustments could have a material impact on our fiscal 2018 consolidated financial results. The last table included below outlines the impact of the items that are excluded from our earnings guidance, other than the year-end MTM pension accounting adjustments.

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Fourth Quarter Fiscal 2017

FedEx Corporation

	Operating						Income			Net			Diluted Earnings
Dollars in millions, except EPS	Income			Margin			Taxes1			Income2			Per Share
GAAP measure	$	1,581			10.1	%	$	440		$	1,020		$	3.75
MTM pension accounting adjustments3		(24	)		(0.1	%)		(18	)		(6	)		(0.02	)
TNT Express integration expenses4		124			0.8	%		37			87			0.32
FedEx Trade Networks legal matters		39			0.2	%		15			24			0.09
TNT Express intangible asset amortization		20			0.1	%		4			16			0.06
FedEx Ground legal matters		22			0.1	%		9			13			0.05
Non-GAAP measure	$	1,762			11.2	%	$	487		$	1,154		$	4.25

FedEx Express Segment

	Operating
Dollars in millions	Income		Margin
GAAP measure	$	863		12.0	%
TNT Express integration expenses		46		0.7	%
Non-GAAP measure	$	909		12.7	%

TNT Express Segment

	Operating
Dollars in millions	Income		Margin
GAAP measure	$	26		1.4	%
TNT Express integration expenses		37		1.9	%
TNT Express intangible asset amortization		20		1.1	%
Non-GAAP measure	$	83		4.4	%

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Full-Year Fiscal 2017

FedEx Corporation

	Operating						Income			Net			Diluted Earnings
Dollars in millions, except EPS	Income			Margin			Taxes1			Income2			Per Share5
GAAP measure	$	5,037			8.4	%	$	1,582		$	2,997		$	11.07
MTM pension accounting adjustments3		(24	)		—			(18	)		(6	)		(0.02	)
TNT Express integration expenses4		327			0.5	%		82			245			0.91
TNT Express intangible asset amortization		74			0.1	%		17			57			0.21
FedEx Trade Networks legal matters		39			0.1	%		15			24			0.09
FedEx Ground legal matters		22			—			9			13			0.05
Non-GAAP measure	$	5,475			9.1	%	$	1,687		$	3,330		$	12.30

FedEx Express Segment

	Operating
Dollars in millions	Income		Margin
GAAP measure	$	2,678		9.8	%
TNT Express integration expenses		117		0.4	%
Non-GAAP measure	$	2,795		10.2	%

TNT Express Segment

	Operating
Dollars in millions	Income		Margin
GAAP measure	$	84		1.1	%
TNT Express integration expenses		89		1.2	%
TNT Express intangible asset amortization		74		1.0	%
Non-GAAP measure	$	247		3.3	%

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Fourth Quarter Fiscal 2016

FedEx Corporation

Dollars in millions, except EPS	Operating						Income Taxes1			Net Income2			Diluted Earnings Per Share5
	Income5			Margin
GAAP measure	($	68	)		(0.5	%)	($	111	)	($	70	)	($	0.26	)
Tax impact – legal entity restructuring for TNT integration		—			—			76			(76	)		(0.28	)
MTM pension accounting adjustments3		1,498			11.6	%		552			946			3.47
TNT expenses and operating results6		66			0.5	%		(13	)		91			0.34
FedEx Ground legal matter		11			0.1	%		4			6			0.02
Non-GAAP measure	$	1,506			11.7	%	$	508		$	897		$	3.30

Full-Year Fiscal 2016

FedEx Corporation

	Operating					Income Taxes1,5		Net Income2			Diluted Earnings Per Share
Dollars in millions, except EPS	Income5		Margin5
GAAP measure	$	3,077		6.1	%	$	920	$	1,820		$	6.51
Tax impact – legal entity restructuring for TNT integration		—		—			76		(76	)		(0.27	)
MTM pension accounting adjustments3		1,498		3.0	%		552		946			3.39
FedEx Ground legal matters7		256		0.5	%		97		158			0.57
TNT expenses and operating results6		115		0.2	%		6		125			0.45
FedEx Trade Networks legal matter7		69		0.1	%		26		43			0.15
Non-GAAP measure	$	5,014		10.0	%	$	1,678	$	3,016		$	10.80

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Fiscal 2018 Earnings Guidance

Dollars in millions, except EPS	Adjustments			Diluted Earnings Per Share
Earnings per diluted share before MTM pension accounting adjustments (non-GAAP)8				$12.45 to $13.25
TNT Express integration expenses	$	275
Income tax effect1		(71	)
Net of tax effect	$	204		0.75
Earnings per diluted share with adjustments8				$13.20 to $14.00

Notes:

1	–	Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
2	–	Effect of “Total other (expense) income” on net income amount not shown.
3	–	MTM pension accounting adjustments reflect the year-end noncash adjustment to the valuation of the company’s defined benefit pension and other postretirement plans.
4	–	These expenses, including restructuring charges at TNT Express, were recognized at FedEx Corporate, FedEx Express and TNT Express.
5	–	Does not sum to total due to rounding.
6	–	TNT Express’s operating results are immaterial from the time of acquisition (May 25, 2016).
7	–	Net of recognized insurance recovery.
8	–	The year-end MTM pension accounting adjustments, which are impracticable to calculate at this time, are excluded.

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FEDEX CORP. FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2017

(In millions, except earnings per share)

(Unaudited)

	Three Months Ended May 31									Twelve Months Ended May 31
	2017 1			2016 2			%			2017 1			2016 2			%
Revenue:
FedEx Express segment	$	7,180		$	6,715			7	%	$	27,358		$	26,451			3	%
TNT Express segment		1,908			—			NM			7,401			—			NM
FedEx Ground segment		4,678			4,286			9	%		18,075			16,574			9	%
FedEx Freight segment		1,696			1,605			6	%		6,443			6,200			4	%
FedEx Services segment		423			416			2	%		1,621			1,593			2	%
Eliminations and other		(157	)		(43	)		NM			(579	)		(453	)		(28	%)
Total Revenue		15,728			12,979			21	%		60,319			50,365			20	%
Operating Expenses:
Salaries and employee benefits		5,483			4,774			15	%		21,542			18,581			16	%
Purchased transportation		3,442			2,461			40	%		13,611			9,966			37	%
Rentals and landing fees		814			733			11	%		3,240			2,854			14	%
Depreciation and amortization		754			667			13	%		2,995			2,631			14	%
Fuel		730			535			36	%		2,773			2,399			16	%
Maintenance and repairs		609			527			16	%		2,374			2,108			13	%
Retirement plans mark-to-market adjustment		(24	)		1,498			NM			(24	)		1,498			NM
Other		2,339			1,852			26	%		8,771			7,251			21	%
Total Operating Expenses		14,147			13,047			8	%		55,282			47,288			17	%
Operating Income:
FedEx Express segment		863			757			14	%		2,678			2,519			6	%
TNT Express segment		26			—			NM			84			—			NM
FedEx Ground segment		702			656			7	%		2,292			2,276			1	%
FedEx Freight segment		133			137			(3	%)		397			426			(7	%)
Corporate, eliminations and other		(143	)		(1,618	)		NM			(414	)		(2,144	)		NM
Total Operating Income (Loss)		1,581			(68	)		NM			5,037			3,077			64	%
Other (Expense) Income:
Interest, net		(125	)		(97	)		29	%		(479	)		(315	)		52	%
Other, net		4			(16	)		NM			21			(22	)		NM
Total Other Expense		(121	)		(113	)		7	%		(458	)		(337	)		36	%
Pretax Income (Loss)		1,460			(181	)		NM			4,579			2,740			67	%
Provision for Income Taxes		440			(111	)		NM			1,582			920			72	%
Net Income (Loss)	$	1,020		($	70	)		NM		$	2,997		$	1,820			65	%
Diluted Earnings Per Share	$	3.75		($	0.26	)		NM		$	11.07		$	6.51			70	%
Weighted Average Diluted Common and Common Equivalent Shares		271			269			1	%		270			279			(3	%)
Capital Expenditures	$	1,326		$	1,257			5	%	$	5,116		$	4,818			6	%

1	-	Includes $124 million of integration expenses, including restructuring charges, for the fourth quarter and $327 million for the full year of fiscal 2017, as well as $20 million of intangible asset amortization expense for the fourth quarter and $74 million for the full year of fiscal 2017. Also includes $39 million and $22 million in connection with the legal matters involving FedEx Trade Networks and FedEx Ground, respectively, for the fourth quarter and full year of fiscal 2017 included in “Corporate, eliminations, and other”.
2	-	Includes legal reserve increases of $325 million included in the “Corporate, eliminations, and other” results for the full year of fiscal 2016, and transaction, financing and integration planning expenses related to the TNT Express acquisition as well as TNT Express’s immaterial operating results from the time of acquisition of $79 million for the fourth quarter of fiscal 2016 and $132 million for fiscal 2016, which are predominantly included in the “Corporate, eliminations, and other” results.

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Fourth Quarter Fiscal 2017

(In millions)

	May 31, 2017 (Unaudited)			May 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	3,969		$	3,534
Receivables, less allowances		7,599			7,252
Spare parts, supplies and fuel, less allowances		514			496
Prepaid expenses and other		546			707
Total current assets		12,628			11,989
Property and Equipment, at Cost		50,626			47,018
Less accumulated depreciation and amortization		24,645			22,734
Net property and equipment		25,981			24,284
Other Long-Term Assets
Goodwill		7,154			6,747
Other assets		2,789			2,939
Total other long-term assets		9,943			9,686
	$	48,552		$	45,959
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt	$	22		$	29
Accrued salaries and employee benefits		1,914			1,972
Accounts payable		2,752			2,944
Accrued expenses		3,232			3,063
Total current liabilities		7,920			8,008
Long-Term Debt, Less Current Portion		14,909			13,733
Other Long-Term Liabilities
Deferred income taxes		2,527			1,567
Pension, postretirement healthcare and other benefit obligations		4,487			6,227
Self-insurance accruals		1,494			1,314
Deferred lease obligations		531			400
Deferred gains, principally related to aircraft transactions		137			155
Other liabilities		474			771
Total other long-term liabilities		9,650			10,434
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized		32			32
Additional paid-in capital		3,005			2,892
Retained earnings		20,833			18,371
Accumulated other comprehensive loss		(415	)		(169	)
Treasury stock, at cost		(7,382	)		(7,342	)
Total common stockholders’ investment		16,073			13,784
	$	48,552		$	45,959

15

FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

Fiscal 2017

(In millions)

(Unaudited)

	Year Ended May 31
	2017			2016
Operating Activities:
Net income	$	2,997		$	1,820
Noncash charges:
Retirement plans mark-to-market adjustment		(24	)		1,498
Depreciation and amortization		2,995			2,631
Other, net		1,199			296
Gain from sale of an investment		(35	)		—
Changes in operating assets and liabilities, net		(2,202	)		(537	)
Cash provided by operating activities		4,930			5,708
Investing Activities:
Capital expenditures		(5,116	)		(4,818	)
Business acquisitions, net of cash acquired		—			(4,618	)
Proceeds from asset dispositions and other		135			(10	)
Cash used in investing activities		(4,981	)		(9,446	)
Financing Activities:
Principal payments on debt		(82	)		(41	)
Proceeds from debt issuances		1,190			6,519
Proceeds from stock issuances		337			183
Dividends paid		(426	)		(277	)
Purchase of treasury stock		(509	)		(2,722	)
Other, net		18			(51	)
Cash provided by financing activities		528			3,611
Effect of exchange rate changes on cash		(42	)		(102	)
Net increase (decrease) in cash and cash equivalents		435			(229	)
Cash and cash equivalents at beginning of period		3,534			3,763
Cash and cash equivalents at end of period	$	3,969		$	3,534

16

FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2017

(Dollars in millions)

(Unaudited)

	Three Months Ended May 31									Twelve Months Ended May 31
	2017			2016			%			2017			2016			%
Revenues:
Package Revenue:
U.S. Overnight Box	$	1,785		$	1,719			4	%	$	6,958		$	6,763			3	%
U.S. Overnight Envelope		463			435			6	%		1,750			1,662			5	%
Total U.S. Overnight		2,248			2,154			4	%		8,708			8,425			3	%
U.S. Deferred		930			811			15	%		3,528			3,379			4	%
Total U.S. Package Revenue		3,178			2,965			7	%		12,236			11,804			4	%
International Priority		1,552			1,454			7	%		5,827			5,697			2	%
International Economy		653			594			10	%		2,412			2,282			6	%
Total International Export Package		2,205			2,048			8	%		8,239			7,979			3	%
International Domestic1		335			319			5	%		1,299			1,285			1	%
Total Package Revenue		5,718			5,332			7	%		21,774			21,068			3	%
Freight Revenue:
U.S.		633			683			(7	%)		2,528			2,481			2	%
International Priority		409			355			15	%		1,502			1,384			9	%
International Airfreight		36			28			29	%		118			126			(6	%)
Total Freight Revenue		1,078			1,066			1	%		4,148			3,991			4	%
Other Revenue2		384			317			21	%		1,436			1,392			3	%
Total Express Revenue	$	7,180		$	6,715			7	%	$	27,358		$	26,451			3	%
Operating Expenses:
Salaries and employee benefits		2,682			2,602			3	%		10,536			10,240			3	%
Purchased transportation		615			539			14	%		2,337			2,301			2	%
Rentals and landing fees		388			427			(9	%)		1,618			1,688			(4	%)
Depreciation and amortization		363			347			5	%		1,431			1,385			3	%
Fuel		571			444			29	%		2,153			2,023			6	%
Maintenance and repairs		370			313			18	%		1,414			1,294			9	%
Intercompany charges		489			475			3	%		1,881			1,846			2	%
Other		839			811			3	%		3,310			3,155			5	%
Total Operating Expenses		6,317			5,958			6	%		24,680			23,932			3	%
Operating Income	$	863		$	757			14	%	$	2,678		$	2,519			6	%
Operating Margin		12.0	%		11.3	%		0.7 pts			9.8	%		9.5	%		0.3 pts

1 - International Domestic revenues represent international intra-country operations.

2 - Includes FedEx Trade Networks and FedEx SupplyChain Systems.

17

FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2017

(Unaudited)

	Three Months Ended							Twelve Months Ended
	May 31							May 31
	2017		2016		%			2017		2016		%
PACKAGE STATISTICS1
Average Daily Package Volume (000s):
U.S. Overnight Box		1,204		1,269		(5	%)		1,265		1,271		—
U.S. Overnight Envelope		565		558		1	%		561		541		4	%
Total U.S. Overnight Package		1,769		1,827		(3	%)		1,826		1,812		1	%
U.S. Deferred		890		825		8	%		900		901		—
Total U.S. Domestic Package		2,659		2,652		—			2,726		2,713		—
International Priority		419		399		5	%		405		394		3	%
International Economy		195		184		6	%		186		181		3	%
Total International Export Package		614		583		5	%		591		575		3	%
International Domestic2		939		869		8	%		934		888		5	%
Total Average Daily Packages		4,212		4,104		3	%		4,251		4,176		2	%
Yield (Revenue Per Package):
U.S. Overnight Box	$	22.81	$	20.83		10	%	$	21.57	$	20.79		4	%
U.S. Overnight Envelope		12.60		11.99		5	%		12.24		11.99		2	%
U.S. Overnight Composite		19.55		18.13		8	%		18.70		18.16		3	%
U.S. Deferred		16.07		15.12		6	%		15.37		14.66		5	%
U.S. Domestic Composite		18.39		17.20		7	%		17.60		17.00		4	%
International Priority		56.97		56.12		2	%		56.44		56.47		—
International Economy		51.46		49.49		4	%		50.83		49.15		3	%
Total International Export Composite		55.23		54.02		2	%		54.68		54.16		1	%
International Domestic2		5.51		5.66		(3	%)		5.45		5.65		(4	%)
Composite Package Yield	$	20.89	$	19.99		5	%	$	20.09	$	19.71		2	%
FREIGHT STATISTICS1
Average Daily Freight Pounds (000s):
U.S.		8,071		8,885		(9	%)		8,190		8,178		—
International Priority		2,810		2,530		11	%		2,670		2,510		6	%
International Airfreight		732		586		25	%		641		623		3	%
Total Avg Daily Freight Pounds		11,613		12,001		(3	%)		11,501		11,311		2	%
Revenue Per Freight Pound:
U.S.	$	1.21	$	1.18		3	%	$	1.21	$	1.19		2	%
International Priority		2.24		2.16		4	%		2.21		2.15		3	%
International Airfreight		0.74		0.73		1	%		0.72		0.79		(9	%)
Composite Freight Yield	$	1.43	$	1.37		4	%	$	1.41	$	1.38		2	%
Operating Weekdays		65		65		—			255		256		—

1 - Package and freight statistics include only the operations of FedEx Express.    

2 - International Domestic revenues represent international intra-country operations.    

18

TNT EXPRESS SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2017

(Dollars in millions)

(Unaudited)

	Three Months Ended			Twelve Months Ended
	May 31, 2017			May 31, 2017
FINANCIAL HIGHLIGHTS
Revenue	$	1,908		$	7,401
Operating Expenses:
Salaries and employee benefits		538			2,077
Purchased transportation		789			3,030
Rentals and landing fees		100			353
Depreciation and amortization		55			239
Fuel		54			225
Maintenance and repairs		29			143
Intercompany charges		6			17
Other		311			1,233
Total Operating Expenses		1,882			7,317
Operating Income	$	26		$	84
Operating Margin		1.4	%		1.1	%
OPERATING STATISTICS
Operating Weekdays		63			253
Package:
Average Daily Package Volume (000s)		1,046			1,022
Yield (Revenue Per Package)	$	24.77		$	24.77
Freight:
Average Daily Freight Pounds (000s)		3,494			3,608
Revenue Per Freight Pound	$	0.54		$	0.56

19

FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2017

(Dollars in millions)

(Unaudited)

	Three Months Ended May 31									Twelve Months Ended May 31
	2017			2016			%			2017			2016			%
FINANCIAL HIGHLIGHTS
Revenues:
FedEx Ground	$	4,295		$	3,889			10	%	$	16,497		$	15,050			10	%
FedEx Supply Chain		383			397			(4	%)		1,578			1,524			4	%
Total Revenues		4,678			4,286			9	%		18,075			16,574			9	%
Operating Expenses:
Salaries and employee benefits		808			729			11	%		3,228			2,834			14	%
Purchased transportation		1,838			1,687			9	%		7,406			6,817			9	%
Rentals		197			173			14	%		764			639			20	%
Depreciation and amortization		176			157			12	%		684			608			13	%
Fuel		2			2			—			10			10			—
Maintenance and repairs		85			79			8	%		322			288			12	%
Intercompany charges		334			320			4	%		1,317			1,230			7	%
Other		536			483			11	%		2,052			1,872			10	%
Total Operating Expenses		3,976			3,630			10	%		15,783			14,298			10	%
Operating Income	$	702		$	656			7	%	$	2,292		$	2,276			1	%
Operating Margin		15.0	%		15.3	%		(0.3 pts	)		12.7	%		13.7	%		(1.0 pts	)
OPERATING STATISTICS1
Operating Weekdays		65			65			—			255			256			—
Average Daily Package Volume (000s)		7,700			7,453			3	%		7,896			7,526			5	%
Yield (Revenue Per Package)	$	8.57		$	8.01			7	%	$	8.18		$	7.80			5	%

1 - Operating statistics include only the operations of FedEx Ground (including FedEx SmartPost).

20

FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2017

(Dollars in millions)

(Unaudited)

	Three Months Ended									Twelve Months Ended
	May 31									May 31
	2017			2016			%			2017			2016			%
FINANCIAL HIGHLIGHTS
Revenue	$	1,696		$	1,605			6	%	$	6,443		$	6,200			4	%
Operating Expenses:
Salaries and employee benefits		792			757			5	%		3,058			2,925			5	%
Purchased transportation		249			242			3	%		988			962			3	%
Rentals		35			33			6	%		136			142			(4	%)
Depreciation and amortization		70			63			11	%		269			248			8	%
Fuel		102			86			19	%		384			363			6	%
Maintenance and repairs		56			52			8	%		215			206			4	%
Intercompany charges		127			119			7	%		497			456			9	%
Other		132			116			14	%		499			472			6	%
Total Operating Expenses		1,563			1,468			6	%		6,046			5,774			5	%
Operating Income	$	133		$	137			(3	%)	$	397		$	426			(7	%)
Operating Margin		7.8	%		8.5	%		(0.7 pts	)		6.2	%		6.9	%		(0.7 pts	)
OPERATING STATISTICS
LTL Operating Weekdays		65			65			—			254			254			—
Average Daily LTL Shipments (000s)
Priority		71.7			70.8			1	%		70.6			67.7			4	%
Economy		31.0			32.0			(3	%)		31.0			31.1			—
Total Average Daily LTL Shipments		102.7			102.8			—			101.6			98.8			3	%
Weight Per LTL Shipment (lbs)
Priority		1,183			1,197			(1	%)		1,176			1,191			(1	%)
Economy		1,152			1,121			3	%		1,129			1,145			(1	%)
Composite Weight Per LTL Shipment		1,174			1,173			—			1,161			1,177			(1	%)
LTL Revenue/Shipment
Priority	$	224.60		$	214.32			5	%	$	221.67		$	218.50			1	%
Economy		274.65			254.11			8	%		265.77			261.27			2	%
Composite LTL Revenue/Shipment	$	239.68		$	226.71			6	%	$	235.20		$	232.11			1	%
LTL Revenue/CWT
Priority	$	18.98		$	17.91			6	%	$	18.85		$	18.35			3	%
Economy		23.83			22.66			5	%		23.55			22.81			3	%
Composite LTL Revenue/CWT	$	20.41		$	19.33			6	%	$	20.25		$	19.73			3	%

21