FEDEX CORPFDX
FEDEX CORP Segments Disclosure
BUSINESS SEGMENTS AND DISAGGREGATED REVENUE
Federal Express and FedEx Freight 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) | |||||
In connection with our one FedEx consolidation plan, on June 1, 2024, FedEx Ground and FedEx Services were merged into Federal Express, becoming a single company operating a unified, fully integrated air-ground express network under the respected FedEx brand. FedEx Freight continues to provide LTL freight transportation services as a separate subsidiary. Beginning in the first quarter of 2025, Federal Express and FedEx Freight represent our major service lines and constitute our reportable segments. Additionally, the results of FedEx Custom Critical are included in the FedEx Freight segment instead of the Federal Express segment in 2025. Prior-year amounts were revised to reflect this presentation.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM is responsible for the company’s operating strategy, growth, and profitability and reviews financial information for our two reportable segments. The CODM uses operating income as the primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. Operating income is defined as income before other income (expense), interest expense and income tax expense. Our CODM regularly reviews significant segment level expense details to assess segment performance and allocate resources.
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 and Print Services, Inc. (“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 presents segment information for the year ended May 31, 2025 (in millions):
| Federal Express Segment | FedEx Freight Segment | Corporate, other, and eliminations | Consolidated Total | ||||||||||||||||||||
| Revenue | $ | 75,304 | $ | 8,892 | $ | 3,730 | $ | 87,926 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and employee benefits | 25,091 | 3,865 | 2,276 | 31,232 | |||||||||||||||||||
| Purchased transportation | 19,974 | 807 | 987 | 21,768 | |||||||||||||||||||
| Rentals and landing fees | 3,939 | 287 | 421 | 4,647 | |||||||||||||||||||
| Depreciation and amortization | 3,722 | 416 | 126 | 4,264 | |||||||||||||||||||
| Fuel | 3,316 | 457 | 2 | 3,775 | |||||||||||||||||||
| Maintenance and repairs | 2,799 | 332 | 114 | 3,245 | |||||||||||||||||||
| Asset impairment charges | 21 | — | — | 21 | |||||||||||||||||||
| Business optimization costs | 384 | — | 372 | 756 | |||||||||||||||||||
| Intercompany allocations (charges) | (791) | 573 | 218 | — | |||||||||||||||||||
Other(1) | 11,964 | 666 | 371 | 13,001 | |||||||||||||||||||
| Total operating expenses | 70,419 | 7,403 | 4,887 | 82,709 | |||||||||||||||||||
| Operating income | $ | 4,885 | $ | 1,489 | $ | (1,157) | 5,217 | ||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest, net | (426) | ||||||||||||||||||||||
Other retirement plans, net(2) | 713 | ||||||||||||||||||||||
Other, net(3) | (63) | ||||||||||||||||||||||
| Total other income (expense) | 224 | ||||||||||||||||||||||
| Income before income taxes | 5,441 | ||||||||||||||||||||||
| Provision for income taxes | 1,349 | ||||||||||||||||||||||
| Net income | $ | 4,092 | |||||||||||||||||||||
(1)Includes $88 million of net expenses included in Federal Express for international regulatory and legacy FedEx Ground legal matters. Also includes costs related to the planned spin-off of FedEx Freight of $38 million included in "Corporate, other, and eliminations."
(2)Includes a pre-tax, noncash gain of $515 million associated with our MTM retirement plans accounting adjustments.
(3)Includes $18 million related to the debt exchange offer and consent solicitation transactions in connection with the planned spin-off of FedEx Freight.
The following table presents segment information for the year ended May 31, 2024 (in millions):
| Federal Express Segment | FedEx Freight Segment | Corporate, other, and eliminations | Consolidated Total | ||||||||||||||||||||
| Revenue | $ | 74,663 | $ | 9,429 | $ | 3,601 | $ | 87,693 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and employee benefits | 24,606 | 3,923 | 2,432 | 30,961 | |||||||||||||||||||
| Purchased transportation | 19,330 | 877 | 714 | 20,921 | |||||||||||||||||||
| Rentals and landing fees | 3,863 | 280 | 428 | 4,571 | |||||||||||||||||||
| Depreciation and amortization | 3,754 | 404 | 129 | 4,287 | |||||||||||||||||||
| Fuel | 4,137 | 571 | 2 | 4,710 | |||||||||||||||||||
| Maintenance and repairs | 2,848 | 330 | 113 | 3,291 | |||||||||||||||||||
| Goodwill and other asset impairment charges | 157 | — | — | 157 | |||||||||||||||||||
| Business optimization costs | 251 | — | 331 | 582 | |||||||||||||||||||
| Intercompany allocations (charges) | (684) | 543 | 141 | — | |||||||||||||||||||
Other(1) | 11,582 | 680 | 392 | 12,654 | |||||||||||||||||||
| Total operating expenses | 69,844 | 7,608 | 4,682 | 82,134 | |||||||||||||||||||
| Operating income | $ | 4,819 | $ | 1,821 | $ | (1,081) | 5,559 | ||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest, net | (375) | ||||||||||||||||||||||
Other retirement plans, net(2) | 722 | ||||||||||||||||||||||
| Other, net | (70) | ||||||||||||||||||||||
| Total other income (expense) | 277 | ||||||||||||||||||||||
| Income before income taxes | 5,836 | ||||||||||||||||||||||
Provision for income taxes(3) | 1,505 | ||||||||||||||||||||||
| Net income | $ | 4,331 | |||||||||||||||||||||
(1)Includes a $57 million benefit included in “Corporate, other, and eliminations" for an insurance reimbursement related to pre- and post-judgment interest in connection with a legacy FedEx Ground legal matter.
(2)Includes a pre-tax, noncash gain of $561 million associated with our MTM retirement plans accounting adjustments.
(3)Includes a $54 million tax expense related to the remeasurement of state deferred income taxes under the new one FedEx structure.
The following table presents segment information for the year ended May 31, 2023 (in millions):
| Federal Express Segment | FedEx Freight Segment | Corporate, other, and eliminations | Consolidated Total | ||||||||||||||||||||
| Revenue | $ | 75,884 | $ | 10,084 | $ | 4,187 | $ | 90,155 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and employee benefits | 24,523 | 4,057 | 2,439 | 31,019 | |||||||||||||||||||
| Purchased transportation | 19,677 | 1,078 | 1,035 | 21,790 | |||||||||||||||||||
| Rentals and landing fees | 4,035 | 269 | 434 | 4,738 | |||||||||||||||||||
| Depreciation and amortization | 3,655 | 387 | 134 | 4,176 | |||||||||||||||||||
| Fuel | 5,157 | 748 | 4 | 5,909 | |||||||||||||||||||
| Maintenance and repairs | 2,910 | 320 | 127 | 3,357 | |||||||||||||||||||
| Goodwill and other asset impairment charges | 70 | — | 47 | 117 | |||||||||||||||||||
| Business optimization costs | 47 | — | 262 | 309 | |||||||||||||||||||
| Intercompany allocations (charges) | (689) | 542 | 147 | — | |||||||||||||||||||
Other(1) | 12,306 | 747 | 775 | 13,828 | |||||||||||||||||||
| Total operating expenses | 71,691 | 8,148 | 5,404 | 85,243 | |||||||||||||||||||
| Operating income | $ | 4,193 | $ | 1,936 | $ | (1,217) | 4,912 | ||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest, net | (496) | ||||||||||||||||||||||
Other retirement plans, net(2) | 1,054 | ||||||||||||||||||||||
| Other, net | (107) | ||||||||||||||||||||||
| Total other income (expense) | 451 | ||||||||||||||||||||||
| Income before income taxes | 5,363 | ||||||||||||||||||||||
| Provision for income taxes | 1,391 | ||||||||||||||||||||||
| Net income | $ | 3,972 | |||||||||||||||||||||
(1)Includes $35 million in connection with a FedEx Ground legal matter included in “Corporate, other, and eliminations.”
(2)Includes a pre-tax, noncash gain of $650 million associated with our MTM retirement plans accounting adjustments.
The following table provides a reconciliation of segment assets to consolidated financial statement totals (in millions) for the years as of May 31:
| Federal Express Segment | FedEx Freight Segment | Corporate, other, and eliminations | Consolidated Total | ||||||||||||||||||||
Segment assets(1) | |||||||||||||||||||||||
| 2025 | $ | 74,154 | $ | 12,899 | $ | 574 | $ | 87,627 | |||||||||||||||
| 2024 | 73,259 | 11,615 | 2,133 | 87,007 | |||||||||||||||||||
| 2023 | 85,128 | 10,416 | (8,401) | 87,143 | |||||||||||||||||||
(1)Segment assets include intercompany receivables. In the fourth quarter of 2024, legacy FedEx Ground settled an intercompany balance of $19.5 billion with FedEx in preparation for the one FedEx consolidation.
The following table provides a reconciliation of reportable segment capital expenditures to consolidated totals for the years ended May 31 (in millions):
| Federal Express Segment | FedEx Freight Segment | Other | Consolidated Total | ||||||||||||||||||||
| 2025 | $ | 3,505 | $ | 437 | $ | 113 | $ | 4,055 | |||||||||||||||
| 2024 | 4,591 | 461 | 124 | 5,176 | |||||||||||||||||||
| 2023 | 5,480 | 557 | 137 | 6,174 | |||||||||||||||||||
The following table presents revenue by service type and geographic information for the years ended or as of May 31 (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| REVENUE BY SERVICE TYPE | |||||||||||||||||
| Federal Express segment: | |||||||||||||||||
| Package: | |||||||||||||||||
| U.S. priority revenue | $ | 10,520 | $ | 10,543 | $ | 10,896 | |||||||||||
| U.S. deferred revenue | 5,007 | 4,926 | 5,126 | ||||||||||||||
| U.S. ground revenue | 33,887 | 32,981 | 32,352 | ||||||||||||||
| Total U.S. domestic package revenue | 49,414 | 48,450 | 48,374 | ||||||||||||||
| International priority | 8,737 | 9,454 | 10,938 | ||||||||||||||
| International economy | 5,861 | 4,653 | 3,307 | ||||||||||||||
| Total international export package revenue | 14,598 | 14,107 | 14,245 | ||||||||||||||
International domestic(1) | 4,495 | 4,659 | 4,552 | ||||||||||||||
| Total package revenue | 68,507 | 67,216 | 67,171 | ||||||||||||||
| Freight: | |||||||||||||||||
| U.S. | 1,536 | 2,391 | 2,883 | ||||||||||||||
| International priority | 2,320 | 2,205 | 3,059 | ||||||||||||||
| International economy | 1,975 | 1,874 | 1,719 | ||||||||||||||
| Total freight revenue | 5,831 | 6,470 | 7,661 | ||||||||||||||
| Other | 966 | 977 | 1,052 | ||||||||||||||
| Total Federal Express segment | 75,304 | 74,663 | 75,884 | ||||||||||||||
| FedEx Freight segment | 8,892 | 9,429 | 10,084 | ||||||||||||||
Other and eliminations(2) | 3,730 | 3,601 | 4,187 | ||||||||||||||
| $ | 87,926 | $ | 87,693 | $ | 90,155 | ||||||||||||
GEOGRAPHICAL INFORMATION(3) | |||||||||||||||||
| Revenue: | |||||||||||||||||
| U.S. | $ | 62,916 | $ | 63,531 | $ | 64,890 | |||||||||||
| International: | |||||||||||||||||
| Federal Express segment | 23,720 | 23,136 | 23,951 | ||||||||||||||
| FedEx Freight segment | 247 | 266 | 264 | ||||||||||||||
| Other | 1,043 | 760 | 1,050 | ||||||||||||||
| Total international revenue | 25,010 | 24,162 | 25,265 | ||||||||||||||
| $ | 87,926 | $ | 87,693 | $ | 90,155 | ||||||||||||
| Noncurrent assets: | |||||||||||||||||
| U.S. | $ | 57,040 | $ | 56,822 | $ | 56,449 | |||||||||||
| International | 12,201 | 11,978 | 12,084 | ||||||||||||||
| $ | 69,241 | $ | 68,800 | $ | 68,533 | ||||||||||||
(1)International domestic revenue relates to our intra-country operations.
(2)Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
(3)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, operating lease right-of-use assets, 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.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 21, 2025 | Showing above |
| 2024 | Jul 15, 2024 | |
| 2023 | Jul 17, 2023 | |
| 2022 | Jul 18, 2022 | |
| 2021 | Jul 19, 2021 | |
| 2020 | Jul 20, 2020 | |
| 2019 | Jul 16, 2019 | |
| 2018 | Jul 16, 2018 | |
| 2017 | Jul 17, 2017 | |
| 2016 | Jul 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.